Divyansh Sharma HONDA Project File.docx

EXECUTIVE

SUMMARY

MARKETTING STRATEGIES OF HONDA

Executive Summary

Business Summary Honda Motor Co., Ltd., together with its subsidiaries, engages in th e development, manufacture, and distribution of motorcycles, automobiles, and power products primarily in North America, Europe, and Asia. Its motorcycle line consists of business and commuter models, as well as sports models, including trial and motor-cross racing; all terrain vehicles; personal watercrafts; and multi utility vehicles. The company also produces various automobile products, including passenger cars, minivans, multi-wagons, sport utility vehicles, and mini cars; and power products comprising tillers, portable generators, general-purpose engines, grass cutters, outboard marine engines, water pumps, snow throwers, power carriers, power sprayers, lawn mowers and lawn tractors, home-use cogeneration units, thin film solar cells home use, and public and industrial uses. In addition, it sells spare parts and provides after sales services are th rough retail dealers, as well as involves in retail lending, leasing to customers, and other financial services, such as wholesale financing to dealers. The company was founded in 1946 and is based in Tokyo, Japan


CONTENTS 1. Introduction 2. Company Profile 3. Importance & Scope 4. Research Objectives 5. Hypothesis 6. Research Methodology 7. Data Analysis 8. Findings 9. Suggestions 10. Limitations 11. Bibliography 12. Annexure


INTRODUCTION


INTRODUCTION

Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than 14 million internal combustion engines each year. Honda surpassed Nissan in 2001 to become the second-largest Japanese automobile manufacturer. As of August 2008, Honda surpassed Chrysler as the fourth largest automobile manufacturer in the United States. Honda is the sixth largest automobile manufacturer in the world. Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand, Acura, in 1986. Aside from their core automobile and motorcycle businesses, Honda also manufactures garden equipment, marine engines, personal watercraft and power generators, amongst others. Since 1986, Honda has been involved with artificial intelligence/robotics research and released their ASIM Or obot in 2000. They have also ventured into aerospace with the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420 HondaJet, scheduled to be released in 2011. Honda spends about 5% of its revenues into R&D.


COMPANY PROFILE


History of Honda From a young age, Honda's founder, Soichiro Honda (本田宗一郎, Honda Sōichirō) had a great interest in automobiles. He worked as a mechanic at a Japanese tuning shop, Art Shokai, where he tuned cars and entered them in races. A self-taught engineer, he later worked on a piston design which he hoped to sell to Toyota. The first drafts of his design were rejected, and Soichiro worked painstakingly to perfect the design, even going back to school and pawning his wife's jewelry for collateral. Eventually, he won a contract with Toyota and built a factory to construct pistons for them, which was destroyed in an earthquake. Due to a gasoline shortage during World War II, Honda was unable to use his car, and his novel idea of attaching a small engine to his bicycle attracted much curiosity. He then established the Honda Technical Research Institute in Hamamatsu, Japan, to develop and produce small 2-cycle motorbike engines. Calling upon 18,000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart by war, Soichiro received enough capital to engineer his first motorcycle, the Honda Cub. This marked the beginning of Honda Motor Company, which would grow a short time later to be the world's largest manufacturer of motorcycles by 1964. The first production automobile from Honda was the T360 mini pick-up truck, which went on sale in August 1963.[10] Powered by a small 356 cc straight-4 gasoline engine, it was classified


under the cheaper Kei car tax bracket.The first production car from Honda was the S500 s ports car, which followed the T360 into production in October 1963. Its chain driven rear wheels point to Honda's motorcycle origins.

Company Name

Honda Motor Co., Ltd.

Head Office

1-1, 2-chome, Minami-Aoyama, Minato-ku, Tokyo 107-8556, Japan Tel: +81-(0)3-3423-1111

Established

September 24, 1948

President & CEO

Takanobu Ito

Capital

¥86 billion (as of March 31, 2010)

Sales (Results of fiscal 2010)

Consolidated: ¥8,579,174 million Unconsolidated: ¥2,717,736 million


Total number of employees

Consolidated: 320500 (as of March 31, 2018) Unconsolidated: 35251 (as of March 31, 2018)

Consolidated subsidiaries

450 subsidiaries (as of March 31, 2018)

Chief Products

Motorcycles, automobiles, power products

Aoyama Building


Wako Building

CORPORATE PROFILE Honda Motor Co., Ltd. operates under the basic principles of "Respect for the Individual" and "The Three Joys" — commonly expressed as The Joy of Buying, The Joy of Sel ling and The Joy of Creating. "Respect for the Individual" reflects our desire to respect the unique character and ability of each individual person, trusting each other as equal partners in order to do our best in every situation. Based on this, "The Three Joys" expresses our belief and desire that each person working in, or coming i nto contact with our company, directly or through or products, should share a sense of joy through that experience. In line with these basic principles, since its establishment in 1948, Honda has remained on the leading edge by creating new value and providing products of the highest quality at a reasonable price, for worldwide customer satisfaction. In addition, the Company has conducted its activities with a commitment to protecting the environment and enhancing safety in a mobile society.


The Company has grown to become the world's largest motorcycle manufacturer and one of the leading automakers. With a global network of 492* subsidiaries and affiliates accounted for under the equity method, Honda develops, manufactures and markets a wide variety of products, ranging from small general-purpose engines and scooters to specialty sports cars, to earn the Company an outstanding reputation from customers worldwide.

Honda In India

Honda Siel Cars India Ltd., (HSCI) was incorporated in December 1995 as a joint venture between Honda Motor Co. Ltd., Japan and Siel Limited, a Siddharth Shriram Group company, with a commitment to providing Honda’s latest passenger car mod els and technologies, to the

Indian customers. The total investment made by the company in India till date is Rs 1620 crores in Greater Noida plant and Rs 784 crores in Tapukara plant.


HSCI’s first state -of-the-art manufacturing unit was set up at Greater Noida, U.P in 1997. The

green-field project is spread across 150 acres of land (over 6,00,000 sq. m.). The annual capacity of this facility is 100,000 units. The co mpany’s second manufacturing facility is in Tapukara, Rajasthan. This facility is spread over 600 acres and will have an initial production capacity of 60,000 units per annum, with an investment of about Rs 1,000 crore. The first phase of this facility was inaugurated in September 2008. The company’s product range includes Honda Jazz, Honda City, Honda Civic and Honda Accord

which are produced at the Greater Noida facility with an indigenization level of 77%, 76%, 74% and 28% respectively. The CR-V is imported from Japan as Completely Built Units. Honda’s models are strongly associated with advanced design and technology, apart from its established qualities of durability, reliability and fuel-efficiency.


World Wide Message By Honda

Striving to become a company that society wants to exist by strengthening the core principles of Honda

Looking back over the past financial year

Last year brought positive signs of economic recovery, including increased consumer spending in Japan and the U.S. and expected economic expansion in Asia and developing nations. At the same time, concerns about the economic downturn, credit crunch, and unemployment persisted in the U.S. and Europe. Moreover, regardless of regional differences, there was new movement to drastically reduce greenhouse gas emissions, primarily CO2. In these ways, 2009 showed that further management effort and environmental action were required in the near future. Under such circumstances, Honda responded swiftly and specifically to the needs of society and customers in


each region. Through research and development, we worked vigorously to produce advanced technologies for safety and environmental requirements. Through p roduction, we addressed changes in regional needs in a flexible manner, establishing a “mutually complementary” system

of manufacturing parts and finished vehicles in each region. Through sales, we released products with new value by enhancing eco-responsible vehicles and widened the range of our product lineup. As a result, over the last year alone, we delivered motorcycles, automobiles, and general purpose products to a total of more than 23 million customers around the world.

Striving to become a company that society wants to exist

Due to global political and economic changes, the business environment surround- ing Honda remains uncertain amid growing social concern about environmental challenges. However, no matter how considerable these changes may be, Honda will win the trust of our customers and appeal to customers as before by creating technologies and products with new value that anticipate customer needs and social requirements. We believe this is the way for Honda to proceed, based on our founding principles. To achieve these goals, Honda will work to improve product quality, safety, and environmental performance as well as promoting research and development of next-generation mobility technologies such as fuel-cell electric vehicles and battery-powered EVs. Additionally, we will focus on future product development to expand the market for hybrid vehicles, which are currently the most effective in reducing CO2 emissions. And, we will continue our efforts to become a company that society wants to exist through global activities to minimize environmental impact in all of our business activities including


production, distribution, and sales, while promoting safe driving and engagement in other social activities.

Manufacturing & Distribution

Strengthening our manufacturing system from the perspective of our customers and the environment

Customer needs vary depending on the region. To deliver products that satisfy customers in all regions, Honda established a manufacturing system that rapidly and flexibly responds to customer requests at all production bases around the world. With this manufacturing system, we are striving to further improve the quality of our products and minimize our environmental footprint during manufacturing.


Thin-membrane solar cell panels at Dongfeng Honda (Wuhan, China)

Strengthening manufacturing capabilities and environmental measures on a global basis

Based on its commitment to build products close to the customer, Honda has pursued local loc al production from its early days. We first first began overseas motorcycle production in Belgium in 1963 and became the first Japanese automaker to produce automobiles in the U.S. in 1982. By focusing on localization early on, even in the areas of development and sales, we have been able to respond to changes in product demand and supply more promptly and increase our quality and cost competitiveness in each market. Moreover, we have been working on establishing a mutually complementary parts and vehicle manufacturing network n etwork among countries within a region so that we can respond to changing demand in each region more effectively and flexibly. We have also centered on activities that improve quality at production bases around the world and that reduce environmental impacts during manufacturing and distribution. In 2009, we began operations at the Ogawa plant in Japan with extremely high resource and energy efficiency. Meanwhile, we are promoting the installation of solar panels at o ur offices and plants. Through improved production systems that take into consideration regional characteristics and enhanced environmental measures, we will flexibly and effectively provide high -quality products in an environmentally responsible way.


Motorcycle plant (Thailand)

Power products assembly (France)

Corporate profile and divisions


Honda headquarters building in Japan

Honda is headquartered in Minato, Tokyo, Japan. Their shares trade on the Tokyo Stock

Exchange and the New York Stock Exchange, as well as exchanges in Osaka, Nagoya, Sapporo, Kyoto, Fukuoka, London, Paris and Switzerland. The company has assembly plants around the globe. These plants are located in China, the United States, Pakistan, Canada, England, Japan, Belgium, Brazil, New Zealand, Indonesia, India, Thailand, Turkey and Perú. As of July 2010, 89 percent of Honda and Acura vehicles sold in the United States were built in North American plants, up from 82.2 percent a year earlier. This shields profits from the yen’s advance to a 15-year high against the dollar.

Honda's Net Sales and Other Operating Revenue by Geographical Regions in 2007


Geographic Region

Total revenue (in millions of ¥)

Japan

1,681,190

North America

5,980,876

Europe

1,236,757

Asia

1,283,154

Others

905,163

American Honda Motor Company is based in Torrance, California. Honda Canada Inc. is headquartered in the Scarborough district of Toronto, Ontario, and is building new corporate headquarters in Markham, Ontario, scheduled to relocate in 2008; their manufacturing division, Honda of Canada Manufacturing, is based in Alliston, Ontario. Honda has also created joint ventures around the world, such as Honda Siel Cars and Hero Honda Motorcycles in India, Guangzhou Honda and Dongfeng Honda in China, and Honda Atlas in Pakistan.

Current market position

With high fuel prices and a weak U.S. economy in June 2008, Honda reported a 1% sales increase while its rivals, including the Detroit Big Three and Toyota, have reported double-digit losses. Honda's sales were up almost 20 percent from the same month last year. The Civic and the Accord were in the top five list of sales. Analysts have attributed this to two main factors.


First, Honda's product lineup consists of mostly small to mid-size, highly fuel-efficient vehicles. Secondly, over the last ten years, Honda has designed its factories to be flexible, in that they can be easily retooled to produce any Honda model that may be in-demand at the moment. Nonetheless, Honda, Nissan, and Toyota, were still not immune to the global financial crisis of 2008, as these companies reduced their profitability forecasts. The economic crisis has been spreading to other important players in the vehicle related industries as well. In November 2009 the Nihon Keizai Shinbun r eported that Honda Motor exports have fallen 64.1%. At the 2008 Beijing Auto Show, Honda presented the Li Nian ("concept" or "idea") 5-door hatchback and announced that they were looking to develop an entry-level brand exclusively for the Chinese market similar to Toyota's Scion brand in the USA. The brand would be developed by a 50-50 joint-venture established in 2007 with Guangzhou Automobile Industry Group. Following the Japanese earthquake and tsunami in March 2011 Honda announced plans to halve production at its UK plants. The decision was made to put staff at the Swindon plant on a 2 day week until the end of May as the manufacturer struggled to source supplies from Japan. It's thought around 22,500 cars were produced during this period.


PROMOTIONAL STRATEGIES OF HONDA Dream The Impossible!!! POWER OF DREAMS , HONDA

Super Cub (2008)


the Super Cub made Honda what it is today. In 2008, 50 years and 60 million units later, the Super Cub still continues to evolve.

Engines (2008)

Honda has announced "Engines," a new global advertisement aimed at increasing awareness of how Honda's advanced engines can help in preserving the environment.


FCX (2007)

The global ad "FCX Concept" emphasizes Honda’s leadership in environmental performance

through advanced technology.

sky (2006)


"sky" signifies Honda's realization of a dream to bring mobility for ever yone to the third dimension, the sky, with the introduction of the HondaJet.

cap/ (2006)

The symbolic use of the Honda green cap, worn by Honda Associates, expresses two messages the fun that Honda employees enjoy through working at Honda and how that fun is embedded in every Honda automobile, motorcycle and power product.

In the animated movie "cap/," a boy picks up a green cap - not just any cap, but a Honda green cap - and once he wears it, is taken to the world of Honda where he experiences the creativity that every Honda employee brings to the company - turning dreams such as ASIMO and HondaJet into reality, and making Honda one of the most innovative companies in the world.


jet/ (2005)

The motif of Honda’s new Global Ad is the experimental HondaJet, which made its debut in July, 2005 at “Airventure,” a prominent aircraft even t in the USA. HondaJet realizes a Honda founder’s dream.

The movie “jet/” is set in a quiet airstrip. Two men in blue overalls ride a tattered Super Cub

down a deserted hangar. Who could tell that these two, Richard Gritter and Dave West, were indeed the test pilots for the experimental HondaJet, as they flew off into the evening sky...


run/ (2005)

Since development of the first ASIMO in 2000, ASIMO has grown in popularity around the world, and has developed a global image of adorability and friendliness. The key aim in Honda’s

new global branding advertisement is to maintain ASIMO’s global image, whilst communicating the new ASIMO prototype’s feature (ASIMO runs!) with a touch of humor. In 60” movie “run/”,

the new ASIMO prototype and an elderly gentleman engage in a little race down an airport’s moving walkway.


HondaJet (2005)

The motif for this year’s worldwide corporate advertising is the HondaJet. In 2003, a hundred

years after the Wright Brothers made their pioneering flight; the HondaJet soared over North Carolina on its maiden flight. Honda has again realized the power of dreams, by adding a new dimension to the pursuit of mobility. We want to share this significant achievement with the world, and with this in mind, came the motivation for this advertisement.


Honda FCX (2003)

The sound of a grandfather clock keeps pace with the FCX as it drives around. In the TV commercial, the FCX is shown symbolizing the opening to a new era of mobility. In addition, a corporate ad was placed on January 3, 2003 to all major newspapers in Japan showcasing the theme of Honda’s new technology. The TV commercial uses a visual background that reflects Honda’s challenging history and expresses Honda’s spirit, “an ultimate clean air vehicle for all human beings”. The development of the fuel cell vehicle FCX, - has reinforced our belief in the

power of dreams.


WGP 500th Victory (2001)

At the FIM Road Racing World Championship Grand Prix opening event held at the Suzuka circuit on April 8, 2001, Honda achieved it's record setting 500th win. It has been 40 years since it's first win there in 1961. With unwavering passion and the result of win upon win there has been no greater point of progress. In April 2000 all major Japanese newspapers published corporate advertisements with the Honda motorcycle challenge spirit as it’s theme.


F1 200 Challenge (2000)

In the FIA Formula1 World Championship 14th race event held on September 10, 2000, Honda set records in the F1 200 series. Since it’s first appearance in the German Grand Prix in 1964,

Honda has continued to compete in the top international racing events around the world. For the Japan Grand Prix held at the Suzuka circuit over October 2000, all major Japanese newspapers published corporate advertisements with Honda’s F1 challenge history as it’s theme.


Products

Automobiles

2008 Honda Accord (USA spec)

Eighth Generation Honda Civic (Asian Version)


Honda's global lineup consists of the Fit, Civic, Accord, Insight, CR-V, and Odyssey. An early proponent of developing vehicles to cater to different needs and markets worldwide, Honda's lineup varies by country and may feature vehicles exclusive to that region. A few examples are the latest Acura TL luxury sedan and the Ridgeline, Honda's first light-duty uni-body pickup truck. Both were engineered primarily in North America and are exclusively produced and sold there. The Civic is a line of compact cars developed and manufactured by Honda. In North America, the Civic is the second-longest continuously running nameplate from a Japanese manufacturer; only its perennial rival, the Toyota Corolla, introduced in 1968, has been in production longer. The Civic, along with the Accord and Prelude, comprised Honda's vehicles sold in North America until the 1990s, when the model lineup was expanded. Having gone through several generational changes, the Civic has become larger and more upmarket, and it currently slots between the Fit and Accord. Honda increased global production in September 2008 to meet demand for small cars in the U.S. and emerging markets. The company is shuffling U.S. production to keep factories busy and boost car output, while building fewer minivans and sport utility vehicles as light trucksales fall. Honda produces Civic hybrid, a hybrid electric vehicle that competes with the Toyota Prius, and also produces the Insight and CR-Z.


Its first entrance into the pickup segment, the light duty Ridgeline, won Truck of the Year from Motor Trend magazine in 2006. Also in 2006, the redesigned Civic won Car of the Year f rom the magazine, giving Honda a rare double win of Motor Trend honors. It is reported that Honda plans to increase hybrid sales in Japan to more than 20% of its total sales in fiscal year 2011, from 14.8% in previous year. Five of United States Environmental Protection Agency's top ten most fuel-efficient cars from 1984 to 2010 comes from Honda, more than any other automakers. The five models are: 20002006 Honda Insight (53 mpg-US/4.4 L/100 km; 64 mpg-imp combined), 1986-1987 Honda Civic Coupe HF (46 mpg-US/5.1 L/100 km; 55 mpg-imp combined), 1994-1995 Honda Civic hatchback VX (43 mpg-US/5.5 L/100 km; 52 mpg-imp mpg combined), 2006- Honda Civic Hybrid (42 mpgUS

/5.6 L/100 km; 50 mpg-imp combined), and 2010- Honda Insight (41 mpg-US/5.7 L/100 km;

49 mpg-imp combined). The ACEEE has also rated the Civic GX as the greenest car in America for seven consecutive years.


Motorcycles

Honda is the largest motorcycle manufacturer in Japan and has been since it started production in 1955. At its peak in 1982, Honda manufactured almost 3 million motorcycles annually. By 2006 this figure had reduced to around 550,000 but was still higher than its three domestic competitors. During the 1960s, when it was a small manufacturer, Honda broke out of the Japanese motorcycle market and began exporting to the U.S. Taking Honda’s story as an archetype of the

smaller manufacturer entering a new market already occupied by highly dominant competitors, the story of their market entry, and their subsequent huge success in the U.S. and around the world, has been the subject of some academic controversy. Competing explanations have been advanced to explain Honda’s strategy and the reasons for their success.

The first of these explanations was put forward when, in 1975, Boston Consulting Group (BCG) was commissioned by the UK government to write a report explaining why and how the British motorcycle industry had been out-competed by its Japanese competitors. The report concluded that the Japanese firms, including Honda, had sought a very high scale of production (they had made a large number of motorbikes) in order to benefit from economies of scale and learning curve effects. It blamed the decline of the British motorcycle industry on the failure of British managers to invest enough in their businesses to profit from economies of scale and scope.


2004 Honda Super Cub

The second explanation was offered in 1984 by Richard Pascale, who had interviewed the Honda executives responsible for the firm’s entry into the U.S. market. As opp osed to the tightly

focused strategy of low cost and high scale that BCG accredited to Honda, Pascale found that their entry into the U.S. market was a story of “miscalculation, serendipity, and organizational learning” – in other words, Honda’s success was due to the adaptability and hard work of its staff, rather than any long term strategy. For example, Honda’s initial plan on entering the U.S.

was to compete in large motorcycles, around 300 cc. It was only when the team found that the scooters they were using to get themselves around their U.S. base of San Francisco attracted positive interest from consumers that they came up with the idea of selling the Super Cub.


The most recent school of thought on Honda’s strategy was put forward by Gary Hamel and C.

K. Prahalad in 1989. Creating the concept ofcore competencies with Honda as an example, they argued that Honda’s success was due to its focus on leadership in the technology of internal

combustion engines. For example, the high power-to-weight ratio engines Honda produced for its racing bikes provided technology and expertise which was transferable into mopeds. Honda's entry into the U.S. motorcycle market during the 1960s is used as a case study f or teaching introductory strategy at business schools worldwide.

Motorsports Honda has been active in motorsports, like Motorcycle Grand Prix, Superbike racing and others.

Automobile


Rubens Barrichello driving for Honda

Honda entered Formula One as a constructor for the first time in the 1964 season at the German Grand Prix with Ronnie Bucknum at the wheel. 1965 saw the addition of Richie Ginther to the team, who scored Honda's first point at the Belgian Grand Prix, and Honda's first win at the Mexican Grand Prix. 1967 saw their next win at the Italian Grand Prix with John Surtees as their driver. In 1968, Jo Schlesser was killed in a Honda RA302 at the French Grand Prix. This racing tragedy, coupled with their commercial difficulties selling automobiles in the United States, prompted Honda to withdraw from all international motorsport that year. After a learning year in 1965, Honda-powered Brabhams dominated the 1966 French Formula Two championship in the hands of Jack Brabhamand Denny Hulme. As there was no European Championship that season, this was the top F2 championship that year. In the early 1980s Honda returned to F2, supplying engines to Ron Tauranac's Ralt team. Tauranac had designed the Brabham cars for their earlier involvement. They were again extremely successful. In a related exercise, John Judd's Engine Developments company produced a turbo "Brabham-Honda" engine for use in IndyCar r acing. It won only one race, in 1988 for Bobby Rahal at Pocono. Honda returned to Formula One in 1983, initially with another Formula Two partner, the Spirit team, before switching abruptly to Williams in 1984. In the late 1980s and early 1990s, Honda powered cars won six consecutive Formula One Constructors Championships. WilliamsF1 won the crown in 1986 and 1987. Honda switched allegiance again in 1988. New partners Team McLaren won the title in 1988, 1989, 1990 and 1991. Honda withdrew from Formula One at the end of 1992, although the related Mugen-Honda company


maintained a presence up to the end of 1999, winning four races with Ligier and Jordan Grand Prix. Honda debuted in the CART IndyCar World Series as a works supplier in 1994. The engines were far from competitive at first, but after development, the compan y powered six consecutive drivers championships. In 2003, Honda transferred its effort to the rival IRL IndyCar Series. In 2004, Honda-powered cars overwhelmingly dominated the IndyCar Series, winning 14 of 16 IndyCar races, including the Indianapolis 500, and claimed the IndyCar Series Manufacturers' Championship, Drivers' Championship and Rookie of the Year titles. In 2006, Honda became the sole engine supplier for the IndyCar Series, including the Indianapolis 500. In the 2006 Indianapolis 500, for the first time in Indianapolis 500 history, the race was run without a single engine problem. During 1998, Honda considered returning to Formula One with their own team. The project was aborted after the death of its technical director, Harvey Postlethwaite. Honda instead came back as an official engine supplier to British American Racing (BAR) and Jordan Grand Prix. Honda bought a stake in the BAR team in 2004 before buying the team outright at the end of 2005, becoming a constructor for the first time since the 1960s. Honda won the 2006 Hungarian Grand Prix with driver Jenson Button. It was announced on 5 December 2008, that Honda would be exiting Formula One with immediate effect due to the 2008 global economic crisis. The team was sold to former team principal Ross Brawn, renamed Brawn GP and subsequently Mercedes GP. Honda became an official works team in the British Touring Car Championship in 2010.


Motorcycles

Honda RC212V r aced by Dani Pedrosa

Honda Racing Corporation (HRC) was formed in 1982. The company combines participation in motorcycle races throughout the world with the development of high potential racing machines. Its racing activities are an important source for the creation of leading edge technologies used in the development of Honda motorcycles. HRC also contributes to the advancement of motorcycle sports through a range of activities that include sales of p roduction racing motorcycles, support for satellite teams, and rider education programs.


Soichiro Honda, being a race driver himself, could not stay out of international motorsport. In 1959, Honda entered five motorcycles into the Isle of Man TT r ace, the most prestigious motorcycle race in the world. While always having powerful engines, it took until 1961 for Honda to tune their chassis well enough to allow Mike Hailwood to claim their first Grand Prix victories in the 125 and 250 cc classes. Hailwood would later pick up their first Senior TT wins in 1966 and 1967. Honda's race bikes were known for their "sleek & stylish design" and exotic engine configurations, such as the 5-cylinder, 22,000 rpm, 125 cc bike and their 6-cylinder 250 cc and 297 cc bikes. In 1979, Honda returned to Grand Prix motorcycle racing with the monocoque-framed, fourstroke NR500. The FIM r ules limited engines to four cylinders, so the NR500 featured noncircular, 'race-track', cylinders, each with 8 valves and two connecting rods, in order to provide sufficient valve area to compete with the dominant two-stroke racers. Unfortunately, it seemed Honda tried to accomplish too much at one time and the experiment failed. For the 1982 season, Honda debuted their first two-stroke race bike, the NS500 and in 1983, Honda won their first 500 cc Grand Prix World Championship with Freddie Spencer. Since then, Honda has become a dominant marque in motorcycle Grand Prix racing, winning a plethora of top level titles with riders such as Mick Doohan and Valentino Rossi . In motocross, Honda has claimed six motocross world championships. In the World Enduro Championship, Honda has captured six titles, most recently with Stefan Merriman in 2003 and with Mika Ahola in 2007 and 2008. In observed trials, Honda has claimed three world championships with Belgian rider Eddy Lejeune.


Marketing

Honda's official slogan is "The Power of Dreams". They have never used this slogan to sell their products. Mr. Honda's belief is that well built products will sell themselves. In 2003, Honda released its Cog advertisement in the UK and on the Internet. To make the ad, the engineers at Honda constructed a Rube Goldberg Machine made entirely out of car parts from a Europe Domestic Market Honda Accord (upon which the USDM Acura TSX is based). To the chagrin of the engineers at Honda, all the parts were taken from two of only six handassembled pre-production models of the Accord. The advertisement depicted a single cog which sets off a chain of events that ends with the Honda Accord moving and Garrison Keillor s peaking the tagline, "Isn't it nice when things just... work?" It took 606 takes to get it perfect.[71] In 2004, they produced the Grrr advert, usually immediately followed by a shortened version of the 2005 Impossible Dream advert.

A post 2005 style Honda dealership in Moncton, Canada


In December 2005, Honda released The Impossible Dream a two-minute panoramic advertisement filmed in New Zealand, Japan and Argentina which illustrates the founder's dream to build performance vehicles. While singing the song "Impossible Dream", a man reaches for his racing helmet, leaves his trailer on a minibike, then rides a succession of vintage Honda vehicles: a motorcycle, then a car, then a powerboat, then goes over a waterfall only to reappear piloting a hot air balloon, with Garrison Keillor saying "I couldn't have put it better myself" as the song ends. The song is from the 1960s musical Man Of La Mancha, sung by Andy Williams. In 2006, Honda released its Choir advertisement, for the UK and the internet. This featured a 60 person choir who sang the car noises as film of the Honda Civic are shown. For the last several years in the United States, during model close-out sales for the current year before the start of the new model year, Honda's advertising has featured an animated character k nown simply as Mr. Opportunity, voiced by Rob Paulsen. The casual looking man talks about various deals offered by Honda and ends with the phrase "I'm Mr. Opportunity, and I'm knockin'", followed by him "knocking" on the television screen or "thumping" the speaker at the end of radio ads. Also, commercials for Honda's international hatchback, the Jazz, are parodies of well-known pop culture images such as Tetris and Thomas The Tank Engine. In late 2006, Honda released an ad with ASIMO exploring a museum, looking at the exhibits with almost child-like wonderment (spreading out its arms in the aerospace exhibit, waving hello to an astronaut suit that resembles him, etc.), while Garrison Keillor ruminates on progress. It concludes with the tagline: "More forwards please".


Honda also sponsored ITV's coverage of Formula One in the UK for 2007. However they had announced that they would not continue in 2008 due to the sponsorship price requested by ITV being too high. In May 2007, focuses on their strengths in racing and the use of the Red H badge — a symbol of what is termed as "Hondamentalism". The campaign highlights the lengths that Honda engineers go to in order to get the most out of an engine, whether it is for bikes, cars, powerboats — even lawnmowers. Honda released its Hondamentalism campaign. In the TV spot, Garrison Keillor says, "An engineer once said to build something great is like swimming in honey", while Honda engineers in white suits walk and run towards a great light, battling strong winds and flying debris, holding on to anything that will keep them from being blown away. Finally one of the engineers walks towards a red light, his hand outstretched. A web address is shown for the Hondamentalism website. The digital campaign aims to show how visitors to the site share many of the Hondamentalist characteristics. At the beginning of 2008, Honda released - the Problem Playground . The advert outlines Honda's environmental responsibility, demonstrating a hybrid engine, more efficient solar panels and the FCX Clarity, a hydrogen powered car. The 90 second advert features large scale puzzles, involving Rubik's cubes, large shapes and a 3-dimensional puzzle. On 29 May 2008, Honda, in partnership with Channel 4, broadcast a live advertisement. It showed skydivers jumping from an aeroplane over Spain and forming the letters H, O, N, D and A in mid-air. This live advertisement is generally agreed to b e the first of its kind on British television. The advert lasted three minutes. The next flight of one of the two planes involved resulted in a fatal crash as the plane broke apart in mid-air.


In 2009, American Honda released the Dream the Impossible documentary series, a collection of 5-8 minute web vignettes that focus on the core philosophies of Honda. Current short films include Failure: The Secret to Success, Kick Out the Ladder and Mobility 2088. They feature Honda employees as well as Danica Patrick, Christopher Guest, Ben Bova, Chee Pearlman, Joe Johnston and Orson Scott Card. The film series plays at dreams.honda.com.

Sports

In Australia, Honda advertised heavily during most motor racing telecasts, and was the official sponsor of the 2006 FIA Formula 1 telecast on broadcaster channel "Ten". In fact, it was the only manufacturer involved in the 2006 Indy Racing League season. In a series of adverts promoting the history of Honda's racing heritage, Honda claimed it "built" cars that won 72 Formula 1 Grand Prix. Skeptics have accused Honda of interpreting its racing history rather liberally, saying that virtually all of the 72 victories were achieved by Honda powered (engined) machines, whereas the cars themselves were designed and built by Lotus F1, Williams F1, and McLaren F1 teams, respectively. However, former and current staff of the Mc Laren F1 team have reiterated that Honda contributed more than just engines and provided various chassis, tooling, and aerodynamic parts as well as funding. Ayrton Senna, arguably the greatest F1 driver of all time, repeatedly stated that Honda probably played the most significant role in his three world championships. He had immense respect for founder, Soichiro Honda, and had a good relationship with Nobuhiko Kawamoto, the chairman of Honda at that time. Senna once called Honda "the greatest company in the world".


As part of its marketing campaign, Honda is an official partner and sponsor of the National Hockey League, the Anaheim Ducks of the NHL, and the arena named after it: Honda Center. Honda also sponsors The Honda Classic golf tournament and is a sponsor of Major League Soccer. The "Honda Player of the Year" award is presented in United States soccer. The "Honda Sports Award" is given to the best female athlete in each of twelve college sports in the United States. One of the twelve Honda Sports Award winners is chosen to receive theHonda-Broderick Cup, as "Collegiate Woman Athlete of the Year."


Marketing Strategies

It has described a category scheme consisting of three general types of strategies that are commonly used by businesses to achieve and maintain competitive advantage. These three generic strategies are defined along two dimensions: strategic scope and strategic strength. Strategic scope is a demand-side dimension and looks at the size and composition of the market you intend to target. Strategic strength is a supply-side dimension and looks at the strength or core competency of the firm. In particular he identified two competencies that he felt were most important: product differentiation and product cost (efficiency). He originally ranked each of the three dimensions (level of differentiation, relative product cost, and scope of target market) as either low, medium, or high, and juxtaposed them in a three dimensional matrix. That is, the category scheme was displayed as a 3 by 3 by 3 cubes. But most of the 27 combinations were not viable.


In his 1980 classic Competitive Strategy: Techniques for Anal ysing Industries and Competitors, Porter simplifies the scheme by reducing it down to the three best strategies. They are cost leadership, differentiation, and market segmentation (or focus). Market segmentation is narrow in scope while both cost leadership and differentiation are relatively broad in market scope. Empirical research on the profit impact of marketing strategy indicated that firms with a high market share were often quite profitable, but so were many firms with low market share. The least profitable firms were those with moderate market share. This was sometimes referred to as the hole in the middle problem. Porter’s explanation of this is that firms with high market share

were successful because they pursued a cost leadership strategy and firms with low market share were successful because they used market segmentation to focus on a small but profitable market niche. Firms in the middle were less profitable because they did not have a viable generic strategy.


Porter suggested combining multiple strategies is successful in only one case. Combining a market segmentation strategy with a product differentiation strategy was seen as an effective way of matching a firm’s product strategy (supply side) to the characteristics of your target market

segments (demand side). But combinations like cost leadership with product differentiation were seen as hard (but not impossible) to implement due to the potential for conflict between cost minimization and the additional cost of value-added differentiation. Since that time, empirical research has indicated companies pursuing both differentiation and low-cost strategies may be more successful than companies pursuing only one strategy.[1] Some commentators have made a distinction between cost leadership, that is, low cost strategies, and best cost strategies. They claim that a low cost strategy is rarely able to provide a sustainable competitive advantage. In most cases firms end up in price wars. Instead, they claim a best cost strategy is preferred. This involves providing the best value for a relatively low price.


Cost Leadership Strategy

This strategy involves the firm winning market share by appealin g to cost-conscious or pricesensitive customers. This is achieved by having the lowest prices in the target market segment, or at least the lowest price to value ratio (price compared to what customers receive). To succeed at offering the lowest price while still achieving profitability and a high return o n investment, the firm must be able to operate at a lower cost than its rivals. There are three main ways to achieve this. The first approach is achieving a high asset turnover. In service industries, this may mean for example a restaurant that turns tables around very quickly, or an airline that turns around flights very fast. In manufacturing, it will involve production of high volumes of output. These approaches mean fixed costs are spread over a larger number of units of the product or service, resulting in a lower unit cost, i.e. the firm hopes to take advantage of economies of scale and experience curve effects. For industrial firms, mass production becomes both a strategy and an end in itself. Higher levels of output both require and result in high market share, and create an entry barrier to potential competitors, who may be unable to achieve the scale necessary to match the firms low costs and prices.


The second dimension is achieving low direct and indirect operating costs. This is achieved by offering high volumes of standardized products, offering basic no-frills products and limiting customization and personalization of service. Production costs are kept low by using fewer components, using standard components, and limiting the number of models produced to ensure larger production runs. Overheads are kept low by paying low wages, locating premises in low rent areas, establishing a cost-conscious culture, etc. Maintaining this strategy requires a continuous search for cost reductions in all aspects of the business. This will include outsourcing, controlling production costs, increasing asset capacity utilization, and minimizing other costs including distribution, R&D and advertising. The associated distribution strategy is to obtain the most extensive distribution possible. Promotional strategy often involves trying to make a virtue out of low cost product features. The third dimension is control over the supply/procurement chain to ensure low costs. This could be achieved by bulk buying to enjoy quantity discounts, squeezing suppliers on price, instituting competitive bidding for contracts, working with vendors to keep inventories low using methods such as Just-in-Time purchasing or Vendor-Managed Inventory. Wal-Mart is famous for squeezing its suppliers to ensure low prices for its goods. Dell C omputer initially achieved market share by keeping inventories low and only building computers to order. Other procurement advantages could come from preferential access to raw materials, or backward integration. Some writers posit that cost leadership strategies are only viable for large firms with the opportunity to enjoy economies of scale and large production volumes. However, this takes a limited industrial view of strategy. Small businesses can also be cost leaders if they enjoy any


advantages conducive to low costs. For example, a local restaurant in a low rent location can attract price-sensitive customers if it offers a limited menu, rapid table turnover and employs staff on minimum wage. Innovation of products or processes may also enable a startup or small company to offer a cheaper product or service where incumbents' costs and prices have become too high. An example is the success of low-cost budget airlines who despite having fewer planes than the major airlines, were able to achieve market share growth by offering cheap, no-frills services at prices much cheaper than those of the larger incumbents. A cost leadership strategy may have the disadvantage of lower customer loyalty, as pricesensitive customers will switch once a lower-priced substitute is available. A reputation as a cost leader may also result in a reputation for low quality, which may make it difficult for a firm to rebrand itself or its products if it chooses to shift to a differentiation strategy in future.

Differentiation Strategy

Differentiate the products in some way in order to compete successfully. Examples of the successful use of a differentiation strategy are Hero Honda, Asian Paints, HLL, Nike athletic shoes, Perstorp BioProducts, Apple Computer, and Mercedes-Benz automobiles. A differentiation strategy is appropriate where the target customer segment is not price-sensitive, the market is competitive or saturated, customers have very specific needs which are possibly under-served, and the firm has unique resources and capabilities which enable it to satisfy these needs in ways that are difficult to copy. These could include patents or other Intellectual Property (IP), unique technical expertise (e.g. Apple's design skills or Pixar's animation prowess), talented


personnel (e.g. a sports team's star players or a brokerage firm's star traders), or innovative processes. Successful brand management also results in perceived uniqueness even when the physical product is the same as competitors. This way, Chiquita was able to brand bananas, Starbucks could brand coffee, and Nike could brand sneakers. Fashion brands rely heavily on this form of image differentiation.

Variants on the Differentiation Strategy

The shareholder value model holds that the timing of the use of specialized knowledge can create a differentiation advantage as long as the knowledge remains unique.[2] This model suggests that customers buy products or services from an organization to have access to its unique knowledge. The advantage is static, rather than dynamic, because the purchase is a one-time event. The unlimited resources model utilizes a large base of resources that allows an organization to outlast competitors by practicing a differentiation strategy. An organization with greater resources can manage risk and sustain profits more easily than one with fewer resources. This deep-pocket strategy provides a short-term advantage only. If a firm lacks the capacity for continual innovation, it will not sustain its competitive position over time.


Focus or Strategic Scope

This dimension is not a separate strategy per se, but describes the scope over which the company should compete based on cost leadership or differentiation. The firm can choose to compete in the mass market (like Wal-Mart) with a broad scope, or in a defined, focused market segment with a narrow scope. In either case, the basis of competition will still be either cost leadership or differentiation. In adopting a narrow focus, the company ideally focuses on a few target markets (also called a segmentation strategy or niche strategy). These should be distinct groups with specialized needs. The choice of offering low prices or differentiated products/services should depend on the needs of the selected segment and the resources and capabilities of the firm. It is hoped that by focusing your marketing efforts on one or two narrow market segments and tailoring your marketing mix to these specialized markets, you can better meet the needs of that target market. The firm typically looks to gain a competitive advantage through product innovation and/or brand


marketing rather than efficiency. It is most suitable for relatively small firms but can be used by any company. A focused strategy should target market segments that are less vulnerable to substitutes or where a competition is weakest to earn above -average return on investment. Examples of firm using a focus strategy include Southwest Airlines, which provides short-haul point-to-point flights in contrast to the hub-and-spoke model of mainstream carriers, and Family Dollar. In adopting a broad focus scope, the principle is the same: the firm must ascertain the n eeds and wants of the mass market, and compete either on price (low cost) or differentiation (quality, brand and customization) depending on its resources and capabilities. Wal Mart has a broad scope and adopts a cost leadership strategy in the mass market. Pixar also targets the mass market with its movies, but adopts a differentiation strategy, using its unique cap abilities in story-telling and animation to produce signature animated movies that are hard to copy, and for which customers are willing to pay to see and own. Apple also targets the mass market with its iPhone and iPod products, but combines this broad scope with a differentiation strategy based on design, branding and user experience that enables it to charge a price premium due to the perceived unavailability of close substitutes.

Recent developments

Michael Treacy and Fred Wiersema (1993) in their book The Discipline of Market Leaders have modified Porter's three strategies to describe three basic "value disciplines" that can create


customer value and provide a competitive advantage. They are operational excellence, product leadership, and customer intimacy.

Criticisms of generic strategies

Several commentators have questioned the use of generic strategies claiming they lack specificity, lack flexibility, and are limiting. In particular, Miller (1992) questions the notion of being "caught in the middle". He claims that there is a viable middle ground between strategies. Many companies, for example, have entered a market as a niche player and gradually expanded. According to Baden-Fuller and Stopford (1992) the most successful companies are the ones that can resolve what they call "the dilemma of opposites". A popular post-Porter model was presented by W. Chan Kim and Renée Mauborgne in their 1999 Harvard Business Review article "Creating New Market Space". In this article they described a "value innovation" model in which companies must look outside their present paradigms to find new value propositions. Their approach fundamentally goes against Porter's concept that a firm must focus either on cost leadership or on differentiation. They later went on to publish their ideas in the book Blue Ocean Strategy. An up-to-date critique of generic strategies and their limitations, including Porter, appears in Bowman, C. (2008) Generic strategies: a substitute for thinking? [1]


Electric and alternative fuel vehicles

2009 Honda Civic GX hooked up to Phill refueling system


Top: Brazilian flexible-fuel Honda Civic. Below: U.S. Honda Civic Hybrid.

2010 Honda Insight hybrid electric vehicle(Second generation).


Honda FCX Clarity hydrogen fuel cellvehicle

Compressed Natural Gas

The Honda Civic GX is the only purpose-built natural gas vehicle ( NGV) commercially available in some parts of the U.S. The Honda Civic GX first appeared in 1998 as a factorymodified Civic LX that had been designed to run exclusively on compressed natural gas. The car looks and drives just like a contemporary Honda Civic LX, but does not run on gasoline. In 2001, the Civic GX was rated the cleanest-burning internal combustion engine in the world by the U.S. Environmental Protection Agency (EPA).


First leased to the City of Los Angeles, in 2005, Honda started offering the GX directly to the public through factory trained dealers certified to service the GX. Before that, only fleets were eligible to purchase a new Civic GX. In 2006, the Civic GX was released in New York, making it the second state where the consumer is able to buy the car. Home refueling is available for the GX with the addition of the Phill Home Refueling Appliance.

Flexible-fuel

Honda's Brazilian subsidiary launched flexible-fuel versions for the Honda Civic and Honda Fit in late 2006. As others Brazilian flex-fuel vehicles, these models run on any blend of hydrous ethanol (E100) and E20-E25 gasoline. Initially, and in order to test the market preferences, the carmaker decided to produce a limited share of the vehicles with flex-fuel engines, 33 percent of the Civic production and 28 percent of the Fit models. Also, the sale price for the flex-fuel version was higher than the respective gasoline v ersions, around US$1,000 premium for the Civic, and US$650 for the Fit, despite the fact that all other flex-fuel vehicles sold in Brazil had the same tag price as their gasoline versions. In July 2009, Honda launched in the Brazilian market its third flexible-fuel car, the Honda City. During the last two months of 2006, both flex-fuel models sold 2,427 cars against 8,546 gasoline-powered automobiles, jumping to 41,990 flex-fuel cars in 2007, and reaching 93,361 in 2008. Due to the success of the flex versions, by early 2009 a hundred percent of Honda's automobile production for the Brazilian market is now flexible-fuel, and only a small percentage of gasoline version is produced in Brazil for exports.


In March 2009, Honda launched in the Brazilian market the first flex-fuel motorcycle in the world. Produced by its Brazilian subsidiary Moto Honda da Amazônia, the CG 150 Titan Mix is sold for around US$2,700. Hybrid electric

In late 1999, Honda launched the first commercial hybrid electric car sold in the U.S. market , the Honda Insight, just one month before the introduction of the Toyota Prius, and initially sold for US$20,000. The first-generation Insight was produced from 2000 to 2006 and had afuel economy of 70 miles per US gallon (3.4 L/100 km; 84 mpg-imp) for the EPA's highway rating, the most fuel-efficient mass-produced car at the time. Total global sales for the Insight amounted to only around 18,000 vehicles. Honda introduced the second-generation Insight in its home nation of Japan in February 2009, and released it in other markets through 2009 and in the U.S. market in April 2009. At $19,800 as a five-door hatchback it will be the least expensive hybrid available in the U.S. Honda expects to sell 200,000 of the vehicles each year, with half of those sales in the United States. Since 2002, Honda has also been selling the Honda Civic Hybrid (2003 model) in the U.S. market,. It was followed by the Honda Accord Hybrid, offered in model years 2005 through 2007. Sales of the Honda CR-Z began in Japan in February 2010, becoming Honda's third hybrid electric car in the market. In an interview in early February 2011, a Honda executive disclosed that Honda produces around 200,000 hybrids a year in Japan.


Hydrogen fuel cell

In Takanezawa, Japan, on 16 June 2008, Honda Motors produced the first assembly-line FCX Clarity, a hybrid hydrogen fuel cell vehicle. More efficient than a gas-electric hybrid vehicle, the FCX Clarity combines hydrogen and oxygen f rom ordinary air to generate electricity f or an electric motor. The vehicle itself does not emit any pollutants and its only by products are heat and water. The FCX Clarity also has an advantage over gas-electric hybrids in that it does not use an internal combustion engine to propel itself. Like a gas-electric hybrid, it uses a lithium ion battery to assist the fuel cell during acceleration and capture energy through regenerative braking, thus improving fuel efficiency. The lack of hydrogen filling stations throughout developed countries will keep production volumes low. Honda will release the vehicle in groups of 150. California is the only U.S. market with infrastructure for fueling such a vehicle, though the number of stations is still limited. Building more stations is expensive, as the California Air Resources Board (CARB) granted $6.8 million for four H2 fueling stations, costing $1.7 million USD each.

Objectives of the Study

· To know about the Honda company. · To know about its Promotional activities.


· Its Market Position. · Honda’s level of customer satisfaction. · Its history and the company profile. · Cost saving initiatives.

Hypothesis

A hypothesis consists either of a suggested explanation for an observable phenomenon or of a reasoned proposal predicting a possible causal correlation among multiple phenomena. The


term derives from the Greek, hyposthenia meaning "to put under" or "to suppose." The scientific method requires that one can test a scientific hypothesis. Scientists generally base such hypotheses on previous observations or on extensions of scientific theories. Even though the words "hypothesis" and "theory" are often used synonymously in common and informal usage, a scientific hypothesis is not the same as a scientific theory. Hypothesis may be defined as a proposition or a set of proposition set forth as an explanation for the occurrence of some specified group of phenomenon either asserted merely as a provisional conjecture to guide some investigation or accepted as highly probable in the light of established facts. Quite often a research hypothesis is a predictive statement, capable of being tested by scientific methods, that relates an independent variable to some dependent variable.

NULL HYPOTHESIS

A null hypothesis is a hypothesis (within the context of statistical hypothesis testing) that might be falsified on the basis of observed data. The null hypothesis typically proposes a general or default position, such as that there is no relationship between two quantities, or that there is no difference between a treatment and the control. The term was originally coined by English geneticist and statistician Ronald Fisher.


The null hypothesis (often denoted by H 0) formally describes some aspect of the statistical "behavior" of a set of data. The Null Hypothesis is of this project report is that customers are highly satisfied.

ALTERNATE HYPOTHESIS

Alternative hypothesis is the "hypothesis that the restriction or set of restrictions to be tested does NOT hold." often denoted H1. Synonym for 'maintained hypothesis.' The Alternate Hypothesis of this project report is that customers are not satisfied



Honda Quality & Assurance Cant be replaced by anyone.



Honda Promotional Strategies are distinct and strike Honda directly in Mind



Honda use new Technology to promote their existing products.

Research Methodology

The purpose of methodology is to describe the process involved in research work. This includes the overall research design, data collection method, the field survey and the analysis of data.


Research is a common parlance refresh to a search for knowledge. One can also define research as a scientific & systematic search for pertinent information on a specific top ic. In fact, research is an art of scientific inves tigation. The advance learner’s dictionary of current English lay down the meaning research as a careful investigation & inquiry specially search for new facts in any branch knowledge.

Research Design

Research Design is the arrangement for conditioned for data collection & analysis of data in a manner that aims to combined relevance to research purpose with economy in procedure. A research design is a master plan or model for the conduct of formal investigation. It is blue print that is followed in completing study. The research conducted by me is a descriptive research. This is descriptive in nature because study is focused on fact investigation in a well structured from and is based on primary data.

Research Plan


Type of study: For completing my study I have gone for sample study because looking at the

size of population & the time limitation it was not convenient for me to cover entire population. Hence, I have gone for sample study rather than census study.

Sampling Plan

A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure that researcher would adopt in selecting items to be inched in the sample i.e. the size of sample. Sampling plan is determined before data are collected.

Steps in Sampling:

1.

Understanding the Marketing strategies of Honda.

2.

Study the company profile & related aspects.

3.

To collect the information from self constructed questionnaire.

4.

Meeting with different owners of Honda showroom.

5.

Obtaining the opinion and suggestions of owners at different levels.

6.

Prepare questionnaire on the basis of above information.

7.

Gather information from different source like books Internet magazines etc.

8.

On the basis of the answers and the information gathered from other sources prepare the report.

Sampling Frame:

The list of sampling units from which sample is taken is called sampling frame.


Sampling Size:

Total sample size is 50.

Sampling Procedure:

The selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure, evaluate and co-operative. It was a randomly area sampling method that attempts to obtain the sample of convenient.

DATA ANALYSIS

Q1. How long have you been associated with HONDA Motors


No. of Respondents Percentage 1. From 1 year

10

10%

2. From 1 – 3 years

40

40%


0

0%


30

30%

5. Above 7 years

20

20%

ASSOCIATED PEOPLE

1 2 3 4 5

Q2. (i) Knowledgeable Salesperson


No. of Respondents 1. Strongly Disagree

0

2. Disagree

0

3. Neither Disagree Nor Agree

0

4. Agree

86

5. Strongly Agree

14

SALESPERSON KNOWLEDGE

1 2 3 4 5

86% people agreed that the sales persons are knowledgeable and 14% strongly disagreed that the sales persons are knowledgeable.

Q2 (ii).


Employees spent enough time with you before sales


0%

2. Disagree

0%


0%

4. Agree

64 %

5. Strongly Agree

36%

TIME SPENT

1 2 3 4 5

64% people agreed that the sales persons spent enough time with them before the sales and 36% strongly agreed with this.

Q2 (ii). Employees spent enough time with you during sales No. of Respondents


1. Strongly Disagree

0%

2. Disagree

4%


0%

4. Agree

62 %

5. Strongly Agree

34 %

TIME SPENT DURING SALES

1 2 3 4 5

62% agreed that sales persons spent enough time with them during the sales, while 34% strongly agreed that the sales persons spent enough time with them during sales and only 4% disagreed with this.

Q2 (ii). Employees spent enough time with you after sales No. of Respondents



0%

2. Disagree

22 %


0%

4. Agree

54 %

5. Strongly Agree

26 %

AFTER SALES

1 2 3 4 5

60% agreed that the sales persons spent enough time with them after sales, 26% strongly agreed with this and 14% disagreed that the sales persons spent enough time with them after sales.

Q2 (iii). Display of Merchandize No. of Respondents



0%

2. Disagree

0%


0%

4. Agree

94 %

5. Strongly Agree

6%

MERCHANDISE DISPLAY

1 2 3 4 5

94% agreed that the display of merchandize was attractive and 6% strongly agreed that the display of merchandize was attractive.

Q2 (iv). Availability of the Product No. Of Respondents



0%

2. Disagree

4%


0%

4. Agree

91 %

5. Strongly Agree

5%

PRODUCT AVAILABLITY

1 2 3 4 5

91% agreed that the availability of the product was there, 5% strongly agreed that the availability was there while only 4% said they disagreed with this.

Q2 (v). Variety/Selection of Merchandize No. of Respondents



0%

2. Disagree

6%


0%

4. Agree

87 %

5. Strongly Agree

7%

VARIETY OF MERCHANDISE

1 2 3 4 5

87% agreed that there was variety/selection of merchandize whereas 7% strongly agreed that enough variety was there and 6% disagreed with this.

Q.2 (vi) Vehicle in Good Condition No. of Respondents



0%

2. Disagree

2%


0%

4. Agree

82 %

5. Strongly Agree

16 %

CONDITION OF VEHICLE

1 2 3 4 5

82% agreed that the vehicle was in good condition when delivered, 16% strongly agreed with this whereas only 2% disagreed with this.


Q2 (vii). Prices Are Affordable i. No. of Respondents 1. Strongly Disagree

0%

2. Disagree

12 %


15 %

4. Agree

21 %

5. Strongly Agree

52 %

PRICE AFFORDABLITY

1 2 3 4 5

64% strongly agreed that the prices are affordable, 21% agreed that the prices are affordable whereas only 15% said that they neither disagreed nor agreed with this.

Q2 (viii). Attractive Discounts Offered



0%

2. Disagree

26%


0%

4. Agree

47%

5. Strongly Agree

27%

DISCOUNT OFFERED

1 2 3 4 5

55% agreed that the discounts offered are attractive, 34% strongly agreed with this while 11% disagreed and said that the discounts offered were not attractive.


Q2 (ix). Décor Of The Waiting Area Is Pleasing No. of Respondents 1. Strongly Disagree

0%

2. Disagree

0%


0%

4. Agree

80%

5. Strongly Agree

20%

DECOR OF WAITING AREA

1 2 3 4 5

80%agreed that the décor of the waiting area was pleasing while 20% strongly agreed that the décor of the waiting area was pleasing


Q2 (x).

Offered A Test Drive i. No. of Respondents

.


0%

3. Disagree

20%


0%

5. Agree

74%

6. Strongly Agree

6%

TEST DRIVE OFFERED

1 2 3 4 5

74%agreed that the test drive was offered to them, 6% strongly agreed that the test drive was offered while 20% disagreed with this.


Q2 (xi). Post Sales Follow Up Done Regularly No. of Respondents 1. Strongly Disagree

0%

2. Disagree

15%


0%

4. Agree

59%

5. Strongly Agree

26%

SERVICE FOLLOW UPS

1 2 3 4 5

59%agreed that the post sales follow ups are done regularly, 26% strongly agreed and 15%disagreed with this.


Q2 (xii). Responds To complaints Quickly No. of Respondents Percentage 1. Strongly Disagree

0%

2. Disagree

9%


12%

4. Agree

61%

5. Strongly Agree

18%

RESPONSE TIME

1 2 3 4 5

4% agreed that the response to complaints is quick, 18% strongly agreed, 12% neither agreed nor disagreed and 6% disagreed with this.


Q2 (xiii). Service At HONDA Service Station Is Excellent No. of Respondents 1. Strongly Disagree

0%

2. Disagree

4%


0%

4. Agree

82%

5. Strongly Agree

14%

SERVICE STATION RESPONSE

1 2 3 4 5

82% said that the service at HONDA service station is excellent, 14% strongly agreed while only 4% disagreed with this.


Q2 (xiv). Careful With Personal Information No. of Respondents 1. Strongly Disagree

0%

2. Disagree

0%


8%

4. Agree

85%

5. Strongly Agree

7%

CONFIDENTIALITY

1 2 3 4 5

85% agreed that yes they were careful with personal information, strongly agreed with this and


8% neither agreed nor disagreed.

Q2 (xv). All The Commitments Are Fulfilled No. of Respondents 1. Strongly Disagree

0%

2. Disagree

7%


0%

4. Agree

6%

5. Strongly Agree

87%

COMMITTMENT FULFILLMENT

1 2 3 4 5

94% strongly agreed that all the commitments were fulfilled and 6% agreed with this.


Q3 (i). Are you aware of the following facilities provided b y HONDA? Insurance ( Cashless ) with 0 depreciation . No. of Respondents 1. Yes

98%

2. No

2%

1 2

98% said yes that they are aware about HONDA insurance while only 2% said that they were not aware.

Q3 (ii) Extended warranty No. of Respondents 1. Yes

97%

2. No

3%

1 2

97% said they were aware about extended warranty and 3% said that they did not know abou this.


Q3 (iii). Auto Terrace No. of Respondents 1. Yes

98%

2. No

2%

98% said they were aware about true value and 2% said they were not aware.

Q3 (iv) HONDA Motors finance No. of Respondents 1. Yes

75%

2. No

25%

1 2

75% said that they were aware about abo ut HONDA Motors finance and 25% said that they were not aware of it.


Q3 (v) Autocard No. of Respondents 1. Yes

84%

2. No

16%

1 2

84% said that they were aware about autocard and 16% said that they were not aware of it.

Q3 (vi).Genuine Accessories No. of Respondents 1. Yes

85%

2. No

15%

1 2

85% said that they were aware of genuine accessories available and 15% said they were notaware.


Q4.What is your overall opinion about HONDA? Choice No. of Respondents 1. Very bad

0%

2. Bad

0%

3. Neither bad nor good

0%

4. Good

4%

5. Very good

96%

1 2 3 4 5

96% said that there overall opinion about TATA was that it is very good while 4% said that it is good.


Q 5. How likely would you recommend HONDA? Recommend

i. No. of Respondents 2. Very Unlikely

0%

3. Unlikely

0%

4. Neither Unlikely nor likely

0%

5. Likely

10%

6. Very Likely

90%

1 2 3 4 5

90% people said they would very likely recommend HONDA to other people and 10% said they would likely recommend HONDA to others.


Q.6) Do you like the promotions and ad campaigns of HONDA Motors?

No. of Respondents 1.Very Unlikely

0%

2.Likely

70%

3.Very Likely

30%

1 2 3

Promotional Strategies and Ad Campaigns used by Honda are basically to represent whole Brand not the particular product .. In India current effective campaign is POWER OF DREAMS . featuring HONDA CIVIC and CITY on a long Freeway …


CONCLUSION On an average more than 73% people feel that the prices are affordable whereas 12% do not agree, 74% believe that attractive discounts are offered whereas 26% are not satisfied withthe discounts offered. 20% said that the test drives are not offered and 15% said that post sales follow ups are not done regularly whereas 85% said that they were done regularly but people feel that it is the people’s car as it is satisfactory on all

other parameters: knowledgeable sales persons , employees spent enough time before and during sales, display of merchandise is attractive, availability of product, variety of merchandize, vehicle in good condition, prices are affordable, attractive discounts are offered, décor of the waiting area is pleasing, responds to complaints quickly, service at TATA Motors service station is excellent, careful with personal information and is value for money . The overall opinion about TATA Motors is very good. 86% people agreed that the sales persons are knowledgeable and 14% strongly disagreed that the sales persons are knowledgeable. 64% people agreed that the sales persons spent enough time with them before the sales and 36% strongly agreed with this. 62% agreed that sales persons spent enough time with them during the sales, while 34% strongly agreed that the sales persons spent enough time with them during sales and only 4% disagreed with this.


60% agreed that the sales persons spent enough time with them after sales, 26% strongly agreed with this and 14% disagreed that the sales persons spent enough time with them after sales. 94% agreed that the display of merchandize was attractive and 6% strongly agreed that the display of merchandize was attractive. 91% agreed that the availability of the product was there, 5% strongly agreed that the availability was there while only 4% said they disagreed with this.

87% agreed that there was variety/selection of merchandize whereas 7% strongly agreed that enough variety was there and 6% disagreed with this. 82% agreed that the vehicle was in good condition when delivered, 16% strongly agreed with this whereas only 2% disagreed with this. 64% strongly agreed that the prices are affordable, 21% agreed that the prices are affordable whereas only 15% said that they neither disagreed nor agreed with this.

55% agreed that the discounts offered are attractive, 34% strongly agreed with this while 11% disagreed and said that the discounts offered were not attractive. 80%agreed that the décor of the waiting area was pleasing while 20% strongly agreed that the décor of the waiting area was pleasing 74% agreed that the test drive was offered to them, 6% strongly agreed that the test drive was offered while 20% disagreed with this. 59% agreed that the post sales follow ups are done regularly, 26% strongly agreed and 15%disagreed with this. 4% agreed that the response to complaints is quick, 18% strongly agreed, 12% neither agreed nor disagreed and 6% disagreed with this.


82% said that the service at HONDA service station is excellent, 14% strongly agreed while only 4% disagreed with this. 85% agreed that yes they were careful with personal information, strongly agreed with this and 8% neither agreed nor disagreed. 94% strongly agreed that all the ommitments were fulfilled and 6% agreed with this. 98% said yes that they are aware about the Insurance Schemes of HONDA while only 2% said that they were not aware.

WEBLIOGRAPHY


1. dreams.honda.com 2. world.honda.com 3. www.wikipedia.com 4. www.hondacarsindia.com 5. www.scribd.com

QUESTIONNARE


Being an esteem customer of HONDA SIEL CARS INDIA Ltd. you are requested to take out a few minutes and fill the following QUESTIONNAIRE: Name: ……………………………………………………………

Address:

Pin Code

Gender:

Male

Female

Age: Below18 18-25 26-35 36-50 51 and above


Occupation: Service Business Student Housewife

Q.1) How long have you been associated with HONDA?

Q.2.) How would you rate HONDA Motors on the following parameter?

Strongly disagree

Disagree

Neither agree Nor disagree

Agree

Strongly agree

i) Knowledgeable sales person

ii) Employees spent enough time


with you: Before sales During sales After sales

iii) Display of merchandise is attractive

iv) Availability of the product

v) Variety/selection of merchandise

vi) Vehicle in good condition

vii) Prices are affordable

viii) Attractive discounts offered

ix) Décor of the waiting area is pleasing

x) Offered a test drive

xi) Post sales follow ups are done regularly


xii) Responds to complaints quickly

xii) Service at HONDA service station is excellent

xvi) Careful with personal information

xv) All the commitments are fulfilled

xvi) Value for money

Are you aware of the following facilities provided by Tata Motors?

FACILITIES Yes No i) HONDA Motors insurance ii) Extended warranty iii) Auto Terrace iv) Finance Schemes v) Autocard vi) Genuine accessories

What is your overall opinion about HONDA Motors? 1.Very Bad


2.Neither Bad Nor Good 3.Good 4.Very Good

How likely would you recommend HONDA Motors? 1.Very Unlikely 2.Likely 3.Very Likely

Do you like the promotions and ad campaigns of HONDA Motors? 1.Very Unlikely 2.Likely 3.Very Likely

Date : Sign of Customer

Sign of

Employee

CONCLUSION


Divyansh Sharma HONDA Project File.docx

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