PRODUCT MANAGEMENT PRO
PRODUCT IMPROVEMENTS IN HONDA ACTIVA
JBFBDV
ACKNOWLEDGEMENT
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Contents
ACKNOWLEDGEMENT............................................................................................................................. 1 EXECUTIVE SUMMARY ............................................................................................................................ 3 INTRODUCTION....................................................................................................................................... 4
About the Company – Honda Motorcycle & Scooter India Private Limited (HMSI) ............... 4 Corporate Philosophy: ................................................................................................................. 4 Mission: .......................................................................................................................................... 4 Vision: ............................................................................................................................................. 4 Brand Philosophy: ........................................................................................................................ 4 PRODUCT PORTFOLIO ......................................................................................................................... 5 ABOUT THE PRODUCT – ACTIVA ......................................................................................................... 7 Medium Involvement Product ........................................................................................................ 8 PRODUCT LEVELS FOR HONDA ACTIVA................................................................................................... 9 PRODUCT IMPROVEMENTS & ANALYSIS .............................................................................................. 10 Year – 2009 “ New Honda Activa” .................................................................................................... 10 Year – 2013 “ACTIVA HET” ................................................................................................................ 12 Year – 2015 “ACTIVA 3G” .................................................................................................................. 13 REFERENCES ..........................................................................................................................................16
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EXECUTIVE SUMMARY
Honda Activa, the two-wheeler manufactured by Honda Motorcycle & Scooter India Private Limited (HMSI) was product chosen to analyse the changes and product improvements as part of the project. The first step was understanding the company and the range of products offered by the company, and then going focussing on the product Honda Activa. All the features of the product were studied initially. Following that, changes and improvements made in the product from 2009 till 2015 were tracked. Both primary and secondary sources of data were used to compile the list of changes introduced in the product. Primary data as to the details of changes and improvements made in Honda Activa was collected from Mr. Pramod Akula, the Area Sales Manager of HMSI Ahmedabad. Along with primary data, secondary data from the company’s website and articles from various sources on the internet was also used. It was found that three major improvements were made in the product, in 2009, 2013 and 2015. The major improvements/changes made were introduction of new engine, CBS (CombiBrake System) and HET (Honda Eco Technology). After compiling the details of changes and improvements, an analysis was done to find out the reasons behind introducing those changes. Further analysis was done to understand whether these changes have actually provided competitive advantage to the company, to identify whether the changes were necessary or not. Customer and expert reviews from secondary sources were then used to understand which of those changes benefitted customers and what the customers felt about those changes. Customer reviews and information regarding customer perception of Honda Activa 3G were collected from Envision Honda, t he Honda retail outlet in Lucknow. Also, information regarding products and improvements introduced by major competitors was analysed and compared with the changes made by Honda Activa. This was done to understand whether Honda Activa leads the market or follows the market.
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INTRODUCTION
About the Company – Honda Motorcycle & Scooter India Private Limited (HMSI) (Honda, 2015)
Honda is the largest manufacturer of two wheelers in the world, recognized the world over as the symbol of Honda two wheelers, the ‘Wings’. Corporate Philosophy: HMSI operates on a principle, which is followed worldwide by all Honda companies. Mission: Maintaining a global viewpoint, Honda is dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction. Vision:
Respect for the individual: Honda recognizes and respects individual differences. The respect for individual stems from the f ollowing three points:
o
Initiative
o
Equality
o
Trust
The Three Joys (buying, selling and creating): In line with Honda's Philosophy, HMSI conducts all its daily activities in pursuit of the following joys: o
The joy of buying high quality products.
o
The joy of selling high quality products
o
The joy of manufacturing high quality products
Brand Philosophy: "The Power of Dreams" as a way of thinking guides and inspires Honda to move forward. The strength of the company comes from this philosophy—based on the visionary principles of the founder, Soichiro Honda. In 1999 Honda entered India arrived as Honda Motorcycle and Scooter India Pvt. Ltd. (HMSI), a 100% subsidiary of Honda Motor Company Ltd., Japan. Since its establishment in 1999 at Manesar, District Gurgaon, Haryana, Honda has lived up to its reputation of offering the highest quality at the most reasonable price. Despite being one of the youngest players in the Indian two-wheelers market, Honda has become the largest two wheeler manufacturer as well as the second largest two-wheelers company in India. Expanding to full operations , Honda production capacity has jumped 30% year on year to 2.8 million per annum in FY 12- 13.
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PRODUCT PORTFOLIO
Product Family – Two wheelers Product class – Motorcycle, scooter, superbikes Product Lines – 110cc, 125cc, 150-160cc, 250cc etc. Products – Activa 3G, Activa 125 Aviator, Dream Yuga etc. SKUs(based on colours) – Black, red, majestic grey etc.
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Athletic Blue Metallic Black
LIVO Black with Red Graphics CD110 DREAM
Black with Grey Graphics Black with Blue Graphics
Sunset Brown Metallic Pearl Amazing White Sports Black Vibrant Blue
DREAM YUGA
110CC
DREAM NEO
Majestic Grey Black With Red Stripes
All Black
Black With Violet Stripes
Sports Red Heavy Grey Metallic
CB TWISTER
Black Electric Yellow Metallic
CB SHINE 125CC
Black Geny Gray Metallic Maple Brown Metallic Imperial Red Metallic
CBF STUNNER
Sports Red Sports Red Pearl Sports Yellow Candy Palm Green Black
Black Meteor Green Metallic CB TRIGGER
Pearl Sunbeam White Pearl Sienna Red
MOTORCYCLES
150160CC
CB UNICORN 160 CBR150R
Geny Gray Metallic Pearl Igneous Black Vibrant Orange Black & Candy Palm Black &Green Pearl Sunbea White Sports Red
250CC
Imperial Red Metallic
Pearl Sunbeam White Sports Red
CBR250R
CBR Repsol
Rebel Red Metallic Midnight Blue Metallic 125CC
ACTIVA 125
Pearl Amazing White Black
Black Lusty Red Metallic Trance Blue Metallic
ACTIVA 3G SCOOTERS
Geny Gray Metallic Sports Red
Pearl Amazing White
Black DIO 110CC
Candy Palm Green Candy Jazz Blue
Pearl Igneous Black Standard Silver Metallic
AVIATOR TWO WHEELERS
Rebel Red Metallic Alpha Red Metallic
Pearl Sunbeam White
Pearl Amazing White ACTIVA I
Autumn Beige Metallic Black Orchid Purple Metallic
650CC
CBR650F
Pearl Metalloid White Pearl Sunbeam White
CB 1000R
Black Sports Red
1000CC
White
CBR 1000RR
SUPERBIKES
White & Red
1200CC
VFR 1200F
Red
1300CC
VT 1300CX
Black
1800CC
GOLDWING
Dual Tone Candy Prominence Red Pearl Glare White
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ABOUT THE PRODUCT – ACTIVA
The name Honda Activa and Scooter are synonymous to each other. Since its launch in 2001 as the first two wheeler by Honda in India, Activa has revived the fading scooter market in India and reinvented convenient mobility for the entire f amily.Activa has a conservative styling and neutral design to please the masses. Fostered by the trust and confidence of Indian customers in Activa, Honda escalated from 55,000 units in first year (2001) to becoming the market leader in just 3 years. Since then, Activa has matured to sell over 2.1 million units in FY’2014-15, displacing motorcycles to become India’s No. 1 Selling 2Wheeler for 2 consecutive months (June -July’15) as well as undisputed market leader with 59% market share in the scooter segment. With features like superior four stroke engine, Honda Eco Technology, V-matic (gearless) transmission, durable all metal body, Convenient Lift-up Independent Cover(CLIC) mechanism, tubeless tyres and combi-brake system, Activa has delivered commendable performance and has bagged various awards and achievements over the years. (Honda, 2015) Year
Awards and Achievements
2001
Scooter of the Year(BS Motoring)
2002
Scooter of the Year by Overdrive Magazine
2007
Best automobile brand of India (Planman Media)
2008
Scooter Customers Satisfaction No.1-CNBC TV-18-Auto Car Auto Awards
2009
Scooter of the Year- ET ZigWheels Awards
2014
Best-selling 2wheeler of the country by Economic Times
Source: http://www.honda2wheelersindia.com/media-center/awards/
Recently in August 2015, has set a new record with Activa becoming the f irst scooter in India to achieve a phenomenal 1 crore unit sales landmark. Honda Activa is the flagship model of HMSI. They entered into the India market after their separation with Hero Motorcorp in 2000 with Activa. Apart from the base model, 2 more models ACTIVA 125 & ACTIVA I have also been launched in the Indian market Today, every second scooter customer in India rides an Activa! (Honda, 2015)
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Medium Involvement Product
Marketing strategy should take into account the level of involvement that a consumer has with a specific product, as this also dictates the type of information that consumer needs to process in order to make a purchase decision. Honda Activa is classified as a moderate/medium involvement product as the associated price, perceived risk, personal relevance and social visibility is neither too high nor t oo low. FCB Matrix
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PRODUCT LEVELS FOR HONDA ACTIVA
Core Benefit
• Transportation
Basic Product
• Good Braking system • Lighting • Gearless Transmission • Underseat luggage space
Expected Product
Augmented Product
• Comfortable and smooth ride • High mileage • Easy to handle • Good aftersales service
• Best aftersales service across twowheelers • CBS for improved safety: reduces braking distance and increases stability while braking • HET technology leading to higher mileage
(Kotler, 2013)
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PRODUCT IMPROVEMENTS & ANALYSIS
We have tracked Honda Activa from year 2009 – present. During this period, Honda made changes 3 times to their Flagship model. These changes happened in year 2009, 2013 and 2015. 2009 – All New Honda Activa
2013 – Activa HET
2015- Activa 3G
We will be looking into the upgrades in chronological order
Year – 2009 “ New Honda Activa”
(HMSI, Joy ON & ON’ – Honda unveils the New refreshing Activa, 20 09) Upgrades
Adv antages
Custom er Reviews
New 110cc Engine from 102cc
Delivered more power ( 8 bhp from 7
Users were delighted
Engine
bhp)
with increased power
15% Increased Mileage
Fuel Efficiency Increased
Mechanical Makeover
Combi Brake System (First time ever in India)
Tuff up Tube in Rear Tyre (Offered by HONDA)
Highly appreciated by users
Braking Distance Reduced and
Highly appreciated by
provides increased Stability while
people riding the vehicle
Braking
in congested spaces
Honda Exclusive - Reduces the chances of Puncture (Added
Appreciated
Comfort& Safety)
Cosmetic Makeover
Increased Underseat Storage
More space available to keep stuff
Capacity to 18L
(Added Comfort)
Key Shutter (Already Used by
Safeguards Ignition Slot ( Anti-Theft
Pleasure in the Market)
Feature)
Halogen Lamp Headlights
Better Illumination
Indifferent
Make it more stylish and differentiate
Appreciated for better
itself from competitors
style
Clear Winkers
Indifferent
Indifferent
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Lean Body Cover ( Thickness reduced from 10mm to 0.8mm)
Reduce Weight and Increased Fuel Efficiency Increased comfort for pillion rider,
Grab Bar
Spare wheel was removed led to attractive rear
Bag Hook
Wider Foot Board
Increased convenience by securing luggage on Footboard More Space for Foot
Not Aware about this
Appreciated for stylish looks
Indifferent
Appreciated by users
Comb i Brake System
Competitors – Hero Pleasure, Scooty Pep+ Analysis Before the launch of New Activa (2009 edition), Activa was competing in 100cc and less category. Honda was facing stiff competition from Hero Pleasure. Both t he vehicle were 102 cc and had more or less same offerings.
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The only difference between Activa and Pleasure was in their target groups. Honda Activa positioned itself as a Unisex Scooter whereas Pleasure prime focus was on women category. In order to clearly differentiate itself more, Honda launched New Activa with some major changes like new engine, better fuel efficiency & CBS (first time launch in India). All the above changes provided Honda Activa with clear advantage over its competitors. Honda Activa moved itself from 100cc category to 110cc category where it had no rivals and this led to considerable increase in their market share.
Year – 2013 “ACTIVA HET”
(Overdrive, 2013) Upgrades
Honda Eco Technology (Patented Technology)
Adv antages
Better Fuel Efficieny
Custom er Reviews
Activa feels much livelier and yet smoother
Mechanical Makeover
Nickel Coated Spark Plugs (First in Scooter Segment)
Improved Combustion
Crankcase offset Reengineered Inlet ports Low Tension Piston Rings Overall weight Reduction
Positive feedback from the market, Customer
Reduced Friction in the Engine
reported an increase of 5kmpl in the mileage
Increased Efficiency
Cosm etic Makeover
HET Emblem over Left Hand Side Engine Cowl
To differentiate it with older model
Indifferent
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COMPETITORS - TVS Wego, TVS Jupiter (was expected in few months), Hero Maestro ANALYSIS -
In order to combat higher fuel prices
-
To compete with current and expected products in the market
In order to differentiate itself and cater to mileage obsessive segment, Honda launched Activa with their patented technology which claimed to increase the fuel mileage. With this launch, Company claimed more mileage than existing competitors. Yes, Honda HET did provide a clear competitive advantage over Competitors. Mileage obsessive customers truly liked the product & it got positive feedback from the experts as well.
Year – 2015 “ACTIVA 3G”
(HMSI, HMSI, 2015)
Upgrades
Adv antages
Custom er Reviews
Cosm etic Makeover
Front fascia has been
Looks more Stylish
tweaked mildly with a
and looks more
restyled and larger faux
attractive
vents Handlebar mounted
Easy to differentiate
More Attractive Looks
headlamp and turn indicators have been given Positive feedback - It
minor updates Elegant Tail Lamp and clear
Distinguishes it from the rest
winkers 3D HONDA emblem
does add to feel and look of the vehicle
Adds premium feel to the Vehicle
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ELEGANT TAIL LAMP
HONDA 3D EMBLEM
LA RGER FAUX VENT
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COMPETITORS – Hero Maestro, TVS Jupiter, TVS Wego, Suzuki Let’s, Yamaha Fascino, Mahindra Gusto ANALYSIS With bombardment of Scooters in the market, Honda has changed its flagship model’s design. Honda have tried to make it more stylish. Honda Activa has got a cosmetic makeover in order to entice customers who are looking for style along with performance. It retains its elegant and simple design but few changes like newly designed taillight, larger faux vents helps it to distinguish itself from competitors. 3D Honda Emblem which earlier was a part of premium Honda Motorcyles has also been added to enhance style and premiumness of the vehicle. Though the move from Honda seemed logically as they wanted to make their product superior in terms of style, nothing much can be said about the effect of it on sales numbers. Honda has got thumbs up from customer and industry expert for new looks.
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REFERENCES (2009, March 28). Retrieved from Mouthshut: http://www.mouthshut.com/bikes/Honda Activa-reviews-925034646 (2013, Feburary 14). Retrieved from Overdrive: http://overdrive.in/reviews/2013-hondaactiva-het-in-india-road-test/ AutoCar. (2009, September 30). Retrieved from AutoCar India : http://www.autocarindia.com/auto-reviews/honda-activa-269167.aspx BikePortal . (2015, October 21). Retrieved from http://bikeportal.in/newbikes/honda/activa/reviews/ HMSI. (2009, March 27). Joy ON & ON’ – Honda unveils the New refreshing Activa. Retrieved from HMSI: http://www.honda2wheelersindia.com/joy-on-on-hondaunveils-the-new-refreshing-activa/ HMSI. (2015, October 21). Retrieved from HMSI: http://www.honda2wheelersindia.com/activa3g/ Honda. (2015). Honda About Us. Retrieved from Honda Power of Dreams: http://www.honda2wheelersindia.com/about-us/philosophy/ Honda. (2015, August 18). Honda Activa crosses One Crore unit sales landmark . Retrieved from Honda the power of dreams: http://www.honda2wheelersindia.com/hondaactiva-crosses-one-crore-unit-sales-landmark/ Kotler, P. (2013). Marketing Management. Pearson.
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