DEPARTMENT OF MANAGEMENT STUDIES PRESENTATION ON HONDA COMPANY “THE POWER OF DREAMS”
Industry IntroductionAutomobile is one of the largest industries in global market. Being theleader in product and process technologies in the manufacturing sector, ithas been recognized as one of the drivers of economic growth. During thelast decade, well directed efforts have been made to provide a new look tothe automobile policy for realizing the sectors full potential for theeconomy. Aggressive marketing by the auto finance companies have alsoplayed a significant role in boosting automobile demand, especially from thepopulation in the middle income group.Two-wheeler segment is one of the most important components of theautomobile sector that has undergone significant changes due to shift inpolicy environment. The two-wheeler industry has been in existence in thecountry since 1955. It consists of three segments viz. scooters, motorcyclesand mopeds. In India there are some MNC’s and Indian company dealing inautomobile sector. The main key players who are dealing in this sector areHero Honda, Bajaj, Yamaha, Honda, and TVS. Hero Honda is the biggestplayer in this sector in India as well as in the world and playing a veryimportant role in two wheeler automobile sector. Hero Honda, Bajaj andTVS are the Indian companies and Yamaha & Honda are internationalautomobile brand.
Company IntroductionHonda is the worlds largest manufacturer of 2-wheelers. Itssymbol, the Wings, represents the companys unwaveringdedication in achieving goals that are unique and above all,conforming to international norms. These wings are now inIndia as Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI),a wholly owned subsidiary of Honda Motor Company Ltd.,Japan. These wings are here to initiate a change and make adifference in the Indian 2-wheeler industry. Hondas dream forIndia is to not only manufacture 2-wheelers of global quality,but also meet and exceed the expectations of Indian customerswith outstanding after sales support.
About Honda Motorcycle & Scooter India Pvt. Ltd.Official Name Honda Motorcycle & Scooter India Pvt. Ltd.Established 20th Aug, 1999Place Manesar, District Gurgaon, Haryana, IndiaInvestment Rs. 300 CroreRepresentative Mr. Shinji Aoyama, President & CEOFactory Location Manesar, District Gurgaon, Haryana, IndiaProduction Capacity 10,000,00 Units per Year
Hondas dream for India is to not only manufacture 2-wheelersof global quality; but also meet and exceed the expectations ofIndian customers with outstanding after sales support. Theyaim to produce technologically superior, efficient andreasonably priced 2-wheelers, with Honda tested technology,backed up with after sales service of Hondas global standard.
Vision Statement“To Achieve the Most Admired Brand Status by 2010”
ObjectivesRespect for individuals. - Initiative - Equality - TrustThe three joys. - The joy of manufacturing high quality products. - The joy of selling high quality products. - The joy of buying high quality products.
Orientation or Philosophy Company Adopted ORINETATION EXTEND JUSTIFICATION (FULLY,PARTIALY,N OT APPLICABLE)Production Concept Partially This concept believes that consumer will favor product that are available at reasonable prices. But depending on growth of economy. Honda doesn’t do bulk production fully. Already it had experience and relaunched the product again.
ORINETATION EXTEND JUSTIFICATION (FULLY,PARTIALY,N OT APPLICABLE) Product Concept Fully The company has significantly improved quality product through a systematic task force approach. Selling Concept Partially Seasonal offers and discount, festival offers.Marketing Concept Fully Customer->Production->Customer EX: Honda Stunner, Unicorn is gaining popularity with younger Male population. To keep these customers who are conscious about style & performance, frequent refresher and upgrades are required emergence of starter.
ORINETATION EXTEND JUSTIFICATION (FULLY,PARTIALY,NO T APPLICABLE)Societal Marketing Partially Societal welfare, Concept Sponsorship towards Educational Institutions.
Company SWOT AnalysisStrength Reliable brand name Affordable price Honda having high tech engines HMSI (Honda Motorcycle and Scooter India Pvt.Ldt) is the subsidiary company of Honda Motors Ltd. Which is the largest company in the proposed sectorWeakness Less number of service center Spares parts are not easily available Low product range Maintenance cost is very high
Opportunity Increase in product range Untapped market above 180 cc in motorcycles. More maturity and movement towards higher-end motorcycles Honda can be use brand image of Hero HondaThreats There is high competition in the market Threat of cheap imported motorcycles and components from China
Different Brands and FeaturesDifferent Brands: Honda Activa Honda Dio Honda Eterno Honda Unicorn Honda Shine Honda Aviator Honda CBF Stunner Honda CBR 1000 Honda CBF Twyster
Features of BrandsHonda Activa 102CC:“Designed for Everyone”FEATURES: Flush surface. Multi-reflector light. Low seat with high ground clearance. Movable front fender. Sleek and aerodynamic styling. Low noise 4-cycle engine. Metal Body. CLIC mechanism.
Honda Dio 102CC: “Get Noticed”FEATURES: Attractive body styling withmounted head light that addscharm to the scooter. Light weight body enhances thefuel economy and riding pleasure. Sleek and aerodynamic design tosuit European styling preferences. Effective shock absorption. Stays balanced even duringemergency braking. Comfortable secure seat. A bag hook below the front endof the seat. Wide and spacious foot board.
Honda Eterno 150CC: “Get More”FEATURES: 4-Stroke, 150cc Engine promises togives a mileage of 60 kmpl underactual riding conditions. Aerodynamic Body with masculinelooking body style.. Dual Spring Suspension technologyfor better comfort. One-Direction Gear System. Larger storage space under seat. CLIC - Convenient Lift UpIndependent Cover for easy repair andmaintenance. Waterproof and durable Stainless-Steel inner cables and TUFFUP outercables.
Honda Unicorn 150CC: “Be A Wing Rider”FEATURES: Best pick up in its class. It delivers an incredible 60kms to a liter. It is a perfect fusion ofsporty & macho design. With Mono Suspension &Diamond frame, it takes allkinds of road shocks withabsolute ease. It is the only motorcycleequipped with a punctureresistant Tupp up Tube.
Honda Shine125CC:FEATUES: The Optimax engine, 02 way airjacket and CV carburetor makes theShine an automatic 2 wheeler as itreduces the usage of clutch. New Aero dynamic design forenjoyable riding. Intense tail lamp, aerodynamicfront cowl and fuel tank knee gripgives shine decent and stylishlooks.
Honda Aviator 102CC: “Live Your Style “FEATURE: Unique style of front facialwith large clear lens multi-reflector lamps. High impact resistant body. Lightweight 12 inches alloywheel. Telescopic front suspensionfor better on road control. Aviator comes with Punctureresistant tuff-up tube. Adequate 20 Liter of underseat space 7 bhp, 102 cc powerful enginefor power-packed performance.
Honda CBF Stunner 125CC:FEATURE:•Honda Stunner CBF SelfDrum with a powerful 11 bhpHonda engine, 5 speedtransmission and a maximumpower that ensures an absolutesensational ride.•Featured with a 4stroke, andthat facilitates quick start, thisgives you a proper mileage of48 to 50 Km per hour, so thatyou can cover distances in notime.
Honda CBR 1000:FEATURES:•Sharper rear styling withrevised shape and new tail-light with clear lens•Sharp exhaust mufflerappearance with aluminiummuffler cover•New graphics and colours•Improved crankshaft inertiamass
Punch lines of Brands Honda Activa 102CC: “Designed for Everyone” Honda Dio 102CC: “Get Noticed” Honda Eterno 150CC: “Get More” Honda Unicorn 150CC: “Be A Wing Rider” Honda Aviator 102CC: “Live Your Style “
Competitor AnalysisIndustry Competitors Industry Competitor Hero Honda Motors Limited was established in 1984, as a joint venture between Indias Hero Group (worlds largest bicycle manufacturers) and Hero Honda Japans Honda Motor Company. And created the worlds single largest two wheeler company and also one of the most successful joint ventures worldwide. During the 80s, Hero Honda became the first company in India. Over 19 million Hero Honda two wheelers running on Indian roads today. TVS Motors is the third largest company in the two-wheeler industry with a market share of 16%. Infect, it is the only Indian company without a foreign collaboration in the two-wheeler industry. When the company opted out of TVS the collaboration with Suzuki in 2002, many believed that TVS was headed towards extinction. But the company proved the doomsayers wrong and came out with a very successful `TVS Victor. TVS Motors Ltd. originally incorporated in 1982 to manufacture two-wheelers in collaboration with Suzuki Motors of Japan, TVS was one of the leaders in two-wheeler industry.
Industry Competitor Bajaj is the first Indian two wheeler automobile company in theBAJAJ market since 1945 with the name M/s Bacharj trading corporation private limited. In 1959 M/sBacharj trading corporation private limited change its name as Bajaj Auto Ltd. Bajaj Auto obtains license from the Government of India to manufacture two- and three-wheelers vehicles in 1959. Yamaha Motor Corporation is the auto mobile company of Japan (1953) which works in India since 1955 and providing latestYamaha technology in India from last two decades. Yamaha Motor India was incorporated in august 2001 as a 100% subsidiary of Yamaha motor corporation, Japan
Competitor ObjectiveHero Honda: Being the most fuel efficient Company. To develop appropriate product & excellent Quality. To meet the demands of the sophisticated markets in Europe & America. To reach an unassailable pole position in the Indian Two Wheeler market. To maintain high standard of ethics & social responsibilities. To meet the quality performances & price aspirations of the customer.
TVS: TVS Motor will be responsive to customer requirements consonant with its core competence and profitability. Customer satisfaction by giving the customer the right product, at the right price, at the right time. To achieve a significant share for international business in the total turnover. TVS Motor will support and encourage the process of self- renewal in all its employees and nurture their sense of self worth. TVS Motor strives for long-term relationships of mutual trust and interdependence with its customers, employees, dealers and suppliers. TVS Motor believes that people make an organization and that its well-being is dependent on the commitment and growth of its people.
Bajaj: Bajaj Auto continues to firmly believe in providing the customer Value for money, for years through their products and services. The Bajaj maintain and improve, In decision making, quality, safety and service will be given as much consideration as productivity, cost and delivery. Quality shall be built into every aspect of their work life and business operations. Quality improvements and customer satisfaction shall be the responsibility of every employee.
Yamaha: YAMAHA focusing on serving their customer where they can build long term relationships by raising their lifestyle through performance excellence, proactive design & innovative technology. They are treated as employees are the most valuable assets and they intend to develop them to achieve international level of professionalism with progressive career development. Yamaha conduct their business ethically and socially in a responsible manner with concerns for the environment. Grow through continuously innovating their business processes for creating value and knowledge across their customers thereby earning the loyalty of their partners & increasing their stakeholder value.
Assessing Strength and WeaknessHero HondaStrengths: Hero Honda introduced First stroke bike in the Indian market. Hero Honda gives 80 Km/Liter Avg. Better sale service. It has a good brand image. It gives better service for customers. Best customer preference.Weakness: Suppose to be very sophisticated. They have big gap between cubic capacities of its products.. Spare parts are too costly.
TVSStrengths: Ability to understand customer’s needs and wants Recognized and established brand name Effective advertising capabilityWeakness: They have big gap between cubic capacities of its products.. Bikes are not attractive as compare to there competitors.
BAJAJStrengths: Highly experienced management. Product design and development capabilities. Extensive R & D focus. Widespread distribution network. High performance products across. High export to domestic sales ratio.Weakness: Still has no established brand to match Hero Hondas Splendor. Not a globally recognizable brand (unlike the JV partner Kawasaki)
YAMAHAStrengths: Yamaha motors India is the subsidiary company of Yamaha motors ltd, which is the MNC company having a good brand name. It is the one of the oldest company in the Indian market. Bikes are available at very low price.Weakness Some Bikes are not attractive. No presences in scooter segment. No presences in above 150cc bike segment.
Whom to Attack and Whom to Avoid (S-Strong, W-Weak, C-Close, D-Distant, G-Good, B-Bad)Competitor S W C D G B Attack AvoidHero Honda √ √ TVS √ √ BAJAJ √ √ Yamaha √ √
Hero Honda: Considering various brand of Hero Honda i.e. Pleasure,Hunk, Karizma, CBZ Extreme. Which give strong competition toHonda i.e. Aviator, Activa, Unicorn, Stunner.TVS: Comparing to Honda Company, TVS Company has thegood market coverage and sales is more so they are strongcompetitor and Honda should attack them.BAJAJ: Comparing to the Indian market the Bajaj’s has goodcompetition with their high CC brands to the Honda.Yamaha: With the innovative products of Yamaha it gives the neckto neck Competition.
Four P’s of Honda Product Price Place or Promotion Distribution Channel Honda Activa 41,000 Manufacturer TV Advertisement Honda Dio 36,908 News Paper Manufacturer Honda Eterno 36,526 Dealer Magazines Honda Unicorn 57,647 Discount Customer Honda Shine 46,806 Festival Offers Honda Aviator 43,104 Coupons Honda Stunner 62,097 SnoopersPricing Strategy: Competitive based pricing Strategy.
Factors Influencing Buying Behavior Factors High / Medium /Low Justification ImpactCultural Factors High Impact Determination of wants & Behaviors in the consumer market. India is exposed to values,humanitartian,people loyalty, emotions, love & Affection all these influences Buying BehaviorSocial Factors High Impact Social factors like family, neighbors, Co-workers, friends all these are influencing on buyer behavior.
Factors High / Medium /Low Justification Impact Personal Factors High Impact Factors like age, education, family, occupation, life style all these influences buying behavior.Psychological Factors Medium Impact Factors like motivation, perception, learning, attitude and beliefs influences on buying behavior of customer.
Buying Decision Process Need Recognition Information Search Evaluation of Alternatives Purchase Decision Post Purchase Behavior
Brand Honda Shine:Need Recognition: The customer basic need is transportation (Bike).Information Search: After identifying their needs they are going to search information about the bike of different brands of companies through various ways like Advertisements, Internet, Magazines, and visiting to Showrooms.Evaluation of Alternatives: After finding the information they study about various features of brands, price, service and quality of the product. The products which are similar to Honda Shine are Hero Honda Passion plus, TVS Victor, Bajaj Discover DTS-i125CC.Purchase Decision: Evaluating all product feature and price and his taste and preference he decided to purchase.Post Purchase Behavior: After using this bike he feels well and satisfied by this bike.
ConclusionThe study which we conducted on the two wheeler automobilesector is a very important topic of automobile sector. Two wheelerautomobile sector is the backbone of the automobile sector in India.After deep research, analysis and getting information aboutcompany as formulated that The Honda Motorcycle Pvt.LdtCompany achieved success in the market. Through out the study wefound the Honda having very new and modern technology in theirbikes, they have a good name and fame in National and InternationalMarket.MNCs like Yamaha, TVS, Hero Honda, Bajaj are also giving largecompetition. Concluding the performance of the company related totwo wheeler sector in India, getting their growth and what areservices they are providing after sales. But still there is a gapbetween 150cc to 225cc segment which is most preferable segmentby youth today. With newer and better models are coming upcustomer has better and bigger choices to choose from. It is thecompetition on various aspects such as price, design technology,after sales services and even purchases offers, which provides toboth buyer and seller. Even many dealers are in view that todayHero Honda and Bajaj, thrives on competition.