Abstract

This project aims on the market position, performance and reputation of the
product Honda Activa I . For that we have taken the feedback of 30 respondents on
Honda Activa I.

Recently in market there has been boom of advance technology and advance
scooters and in that this product is more convenient and has good reputation. In this
project we had done analysis of marketing strategy of Honda Activa I.

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CHAPTER -1

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 Introduction
The aim of marketing is to know and understand the customer so well that the product or service
fits him and sells itself. Most precise and befitting definition of marketing is, “Marketing is
human activity directed at satisfying needs and wants through exchange processes.” To
understand this definition clearly, we must know the terms: needs, wants, demands, products,
exchange, transactions and markets.

(i)Human Needs:
Human need is a state of felt deprivation in a person, and includes physiological and social needs.
People in industrial society look for an object that will satisfy the needs.

(ii) Human Wants:
The human needs with the effect of culture and individual personality takes the shape of human
wants. For example: need for food may be converted into wants for chapati, rice, bread,
vegetarian or Non-vegetarian items.

(iii) Demands:
Since the people may have unlimited wants, but due to limited resources, they opt for products
which gives maximum satisfaction. Thus wants backed by purchasing power become demands.

(iv) Product:
This is a thing that can be offered to a market for attention, acquisition, use or consumption that
might satisfy a want or need.

(v) Exchange:
It is the act of obtaining a desired object from someone by offering something in return.

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(vi) Transaction:
It consists of a trade of values between two parties.

(vii) Market:
It is the set of actual and potential buyers of a product.

Strategies for Marketing
Marketing Managers should develop a marketing strategy to move goods or products from where
they are manufactured to the final consumer.

A Marketing Strategy consists of two parts:

(a) Market Segment and

(b) Marketing Mix.

(a) Market Segment:

“Market Segmentation” consists of identifying a sufficient number of common buyer

characteristics to permit subdivision of the total demand for a product into economically viable
segments. To be economically viable, a market segment must be sufficiently large for the
manufacturer to be able to earn sufficient profit.

Marketing Managers should identify the “Market segment” that is the target group of persons to
whom the firm wishes to appeal. For example, the consumer market may be segmented on the
basis of sex, age, race, usage, income level, level of education, occupation, life styles,
geographical boundaries etc.

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(b) Marketing Mix

It consists of marketing plan that will be followed to satisfy the wants and desires of the
consumers identified in the market segment.

It involves decision making in the following four areas (also known as elements or
variables of marketing mix or 4 P’s of marketing):

(i) Product

(ii) Price

(iii) Distribution (place) and

(iv) Promotion..

(i)Product:

Marketing Managers plan and develop the right products or services in terms of quality, packing,
branding and design for the market segment. This planning includes determining the product line
and the product mix of the firm. The product line is a broad group of products that are reasonably
similar. Product mix is the total list of products sold by the concern.

(ii) Price:
Marketing Managers determine a competitive fair price for products, which should earn a fair
profit.

(iii) Distribution:
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Marketing Managers make products or services available to customers by distributing goods
through channels of distribution. It provides place and time utility to the products.

(iv) Promotion:
Marketing Managers inform customers about their products or services by means of such
marketing functions as personal selling and advertising.

While planning marketing strategy, equal weightage should be given to each activity, since each
of the factor is equally important.

Designing Marketing Strategies:

Marketing strategies are designed considering the different stages of the product life cycle.
Companies must try to anticipate new attributes that the market wants. Profits go to those who
introduce new and valued benefits early.
The search for new attributes can be based on customer survey work, intuition, dialectical
reasoning, or needs hierarchy reasoning. Successful marketing is developed through creatively
visualising the market’s evolutionary potential.

Marketing strategies are also designed considering the competitors.

Marketing strategies are highly dependent on whether the company is a market leader, challenger,
follower, or nicher.

A market leader has the largest market share in the relevant product market. To remain the
dominant firm, it must

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(i) Look for ways to expand total market demand by seeking new users, and new uses of its
products,
(ii) Attempt to protect the current market share, and
(iii) Try to increase its market share.

A market challenger attacks the market leader and other competitors in an aggressive bid for more
market share. In terms of specific attack strategies, challengers can discount prices, produce
cheaper goods, produce prestige goods, produce wide variety of goods, innovates widely in
products or distribution, improve services, reduce manufacturing costs, or engage in intensive
advertising.

A market follower must have strategies aimed at running and increasing market share and
expanding the market.

A market nicher firm serves the small market segments not being served by larger firms. These
can select one or more of the following areas of specialization: end user, customer size, specific
customer, geographic, product or product line, job shop, quality/price, service, channel or product
features.

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 Need of study

It provides a blueprint for attaining these marketing objectives. It is the building block of a

marketing plan. It is designed after detailed marketing research. A marketing strategy helps an
organization to concentrate it’s scarce resouces on the best possible opportunities so as to increase
the sales.

 Marketing strategy provides an organization an edge over it’s competitors.

 Strategy helps in developing goods and services with best profit making potential.
 Marketing strategy helps in discovering the areas affected by organizational growth and
thereby helps in creating an organizational plan to cater to the customer needs.
 It helps in fixing the right price for organization’s goods and services based on information
collected by market research.
 Strategy ensures effective departmental co-ordination.
 It helps an organization to make optimum utilization of its resources so as to provide a
sales message to it’s target market.
 A marketing strategy helps to fix the advertising budget in advance, and it also develops a
method which determines the scope of the plan, i.e., it determines the revenue generated by
the advertising plan.

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 Scope of Study

The scope of marketing is determined by the marketing offering of an organization. Market

offering is a combination of goods, services, ideas, persons, places, information, etc. offered to a
market to satisfy specific needs and wants of people.
Market offerings are not limited to physical goods. They also include services like banking, air
travel, hotel stay, tourism, etc. which are not tangible in nature and can’t be owned by the buyers.

Scope of marketing research means the possible applications of marketing research in corporate
environment. Bulk of research is done to measure consumer needs and wants. Besides, marketing
research is carried out to assess the impact of past marketing actions. Some research is done to
understand the competitive, technological, social, economic, cultural, political or legal
environments of the market.

Content marketing has been one of the important marketing strategies in today’s society
especially when information for consumers are often overloaded. Brands are competing
aggressively for today’s mass consumers attention when most of the time, massive advertising are
often being ignored by the customers. Therefore, content marketing strategy plays a vital role in
making today’s customers want to buy your products and services.

Here are five objectives of content marketing.

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 Thought Leadership – 

Content marketing leads to obtaining of thought leadership from an archive of articles that
are consistently shown to the consumers. According to a study, consumers today are more
convinced when the brand educates them with a relevant article or content that is of
interest to them. This may mean that consumers today trust content marketing more than
any other avenue of marketing. By becoming the thought leader in the industry with
content marketing, your brand can eventually wins the consumer market share as well.

 Subtle Marketing –

Content marketing has a subtle marketing impact on consumer decisions. Unlike push
marketing tactics like sales, promotions and offering of discounts, content marketing work
in a very subtle way. Such that the consumer may not feel that the branded content is
trying to sell them something. Consumers mindset will become less defensive when it
comes to content marketing, thereby, making buying easier (or selling for your brand
easier).

 Soft Influential Marketing – 

Content marketing makes the brand itself seen as an influencer to a point that even
competitors may take reference from. If a brand is consistent in developing its content
marketing on a regular basis, it gives it a soft influential marketing power. Therefore if any
new product category or term invented by the brand will be more readily accepted by the
consumers than the competitors which are not active in content marketing. In other words,
content marketing may help brand to lead the market.

 Improve Brand Loyalty – 

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 Our long term goal is to ensure brand loyalty by educating the consumers about product
and services relevant to their business needs. Customers are grateful if your brand can
deliver what they want from not only your products and services but also educate them
through your branded content. This will enhance brand loyalty among a small but strong
group of customers which will later become your brand advocate on social media or digital
media.

 Support Selling –

The best word to describe the impact of content marketing is support selling. It’ll make
selling easier for the clients’ sales and business division as consumers are better educated
of the products and services even before they see the sales or business development staff.
Today, smart retailers also integrate content marketing in their retail stores in the form of
place cards that explain the benefits of their products and services. In this manner, it’ll
make selling easier with more cost efficient such that less retail staff is required for the
store.

 In summary, content marketing gives businesses today a comfortable avenue to share their
products and services as well as building brand loyalty with the consumers

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 Objectives

 Identify, evaluate, and develop marketing strategies

 Evaluate a firm’s opportunities
 Anticipate competitive dynamics
 Evaluate the sustainability of competitive advantages
 Increase sales
 Build brand awareness
 Grow market share
 Launch new products or services
 Target new customers
 Enter new markets internationally or locally
 Improve stakeholder relations
 Enhance customer relationships
 Improve internal communications
 Increase profit

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 Research Methodology

. (A) PRIMARY DATA

Primary data is the first hand information collected from respondance with the help of
questionnaire, interviews, and schedules. In this project a structured questionnaire is prepared &
data of 30 respondance is collected, tabulated & analyzed on percentage basis.

(B) SECONDARY DATA

Secondary data is information collected through publish data, various reference book, journals,
magazines, bulletins, weekly & papers published & articles are referred.

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 Limitations Of Study

 Costs of Marketing

Although the digital revolution has somewhat evened the playing field, the truth is that small
business is still at a disadvantage, when it comes to grabbing their share of eyeballs through
their marketing efforts. Big data has great value, but accessing that data is expensive, and you
have to keep analyzing that data to stay abreast of buyer trends. Launching a marketing
campaign on your website can also be expensive, especially if you’re using a pay-per-click
strategy to attract more prospects. Television and radio advertising spots are also costly, and
even local advertising space is at a premium, because there is so much competition for the local
audience.

 Time and Effort May Not Yield a Return

Big brands can afford to spend time and effort working on a marketing campaign that fails,
because they have the resources to regroup and move on. As a small business owner, however,
the return on investment on a marketing campaign may be low, and that means you have spent
months crafting a strategy that did nothing to help your bottom line. Even the most well-
planned marketing campaigns fail, and at the small business level, that can set you back for
months.

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15
CHAPTER-2

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 Industry Profile

Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI), the only Honda in Indian 2Wheeler
industry is the 100% subsidiary of Honda Motor Company Ltd., Japan, started its Indian
operations at Manesar (District Gurgaon, Haryana) in May 2001. Despite being one of the
youngest players in the Indian two-wheelers market, Honda’s consistency of providing high
quality products and services has won the hearts of over 46 million happy Indian customers and
catapulted HMSI to become India’s 2nd largest two-wheeler company today.

The journey started with its first model ‘Activa’ in 2001 which gave a new life to scooter segment
and stays strong India’s favourite scooter even 20 years on. And today, Honda provides pure Joy

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of Riding to customers through its diverse portfolio of two-wheelers going up to 1800cc. From
the trusted 110cc motorcycle for daily commuting, to an array of scooters that merge the best of
technology with convenience; from fun-to-ride dynamic sports models to iconic global legends
for discerning enthusiasts… Honda is led by its challenging spirit to enrich the lives of its
customers with innovative, technology enriched two-wheelers.

Committed to Make in India, first production facility at Manesar (Haryana) started operations in

2001. A decade later in 2011, Honda expanded to its 2nd plant at Tapukara (Dist. Alwar,
Rajasthan) with 1.2 million units’ annual production capacity. In 2013, came the 3rd plant at
Narsapura, in the Southern state of Karnataka; with 1.8-million-unit annual capacity. Continuing
to rapidly expand to meet customer demand, Honda 2Wheelers India started operations of its new
4th manufacturing facility – Honda’s scooter-only plant in Vithalapur (Gujarat) in FY’2015-16.
This was followed by new capacity infusion at its Karnataka plant in FY’2017-18, taking Honda
2Wheeler India’s combined capacity to 6.4 million units annually. 

Parallely, matching its pace with The Power of Dreams of billion Indians, Honda has rapidly
expanded its sales and service network. Today, Honda 2wheelers India is reaching closer to its
customers and serving them through its 6,200+ customer touchpoints across India.

In its 20 years’ journey, Honda 2Wheelers India has won nearly 200 prestigious recognitions for
its benchmark products, technology, manufacturing excellence, in addition to multiple laurels like
Most Trusted Two-Wheeler Brand etc.

More than business, as a responsible corporate, road Safety is Honda’s top priority globally. In
India too, Honda has educated over 36 lac individuals of all age groups on safety riding with
special focus on women & kids through its 14 Traffic Training parks & 4 Safety Driving
Education Centres across India.

The study investigates the management of Honda brand in Gondia in current scenario and
consumer buying behavior followed by the company.

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scenario and consumer buying behavior followed by the company. prime focus of the project is
on getting effective feedback from the customers about the Honda Brand.

Survey was conducted using questionnaire. The information about various attributes & factors
was collected. All the data collected, primary data was filtered & analyzed, represented in the
form of pie charts. Secondary data was also used in report such as company profile, product
profile etc.

The survey gave knowledge about customer's satisfaction, loyalty & their feel about the brand.
The survey gave an insight into organized market of two wheelers and four wheelers &
competitors of Honda motors. On the basis of findings & conclusions, suggestions were given.

There are many limitations of this project like, biased reply, customers busy, time constraint as
the project has time and area limitation etc.

Research methodology adopted for the collection of primary data was interpersonal interview and
questionnaire. The secondary data were collected from Magazines, News Papers, and Websites.
The facts and figures itself talk about the competitors performance, market structure and potential
market for the company.

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Vehicles

Motorcycles

 CB Unicorn 160
 SP 125
 CB Shine SP
 CB Shine
 Honda Livo
 Honda X Blade
 Honda Hornet

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 Honda CD110 Dream DX

Scooters

 Cliq
 Dio
 Honda Aviator
 Activa
 Activa-i
 Activa-HET
 Activa-3G
 Activa-4G
 Activa 5G
 Activa-6G
 Activa 125
 Grazia

Sports Bikes

 GoldWing
 CB1000R
 CBR650F
 CBR1000RR
 CBR 250R
 Africa Twin
 CB300R
 Honda CB350

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Automobiles

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 Gintherto 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 Brabham and 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 Ralteam 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 racing. 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. Between 1986 and 1991, Honda
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won six consecutive Formula One Constructors' Championships as an engine manufacturer, as
well as five consecutive Drivers' Championships with Nelson Piquet, Ayrton Senna and Alain
Prost. Williams-Honda won the crown in 1986 and 1987. Honda switched allegiance
to McLaren in 1988, and then won the title in 1988, 1989, 1990 and 1991. Honda withdrew from
Formula One at the end of 1992, although the related Mugencompany maintained a presence up
to the end of 2000, winning four races with Ligier and Jordan.

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 company won six consecutive drivers'
championships and four manufacturers' championships between 1996 and 2001. In 2003, Honda
transferred its effort to the IRL IndyCar Series with Ilmor supporting HPD. In 2004, Honda-
powered cars overwhelmingly dominated the IndyCar Series, winning 14 of 16 IndyCar races,
including the Indianapolis500, and claimed the IndyCar Series Manufacturers' Championship,
Drivers' Championship and Rookie of the Year titles. From 2006 to 2011, Honda was the lone
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. Since 2012, HPD  has constructed turbocharged V6 engines for its IndyCar effort,
winning five Indianapolis 500s, two manufacturers' championships and two drivers'
championships.

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 briefly to Jordan Grand
Prix. Together BAR and Honda achieved 15 podium finishes and second place in the 2004
constructors' championship. 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. Honda announced in December
2008, that it would be exiting Formula One with immediate effect due to the 2008 global
economic crisis.

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Honda has competed in the British Touring Car Championship since 1995, though not always as a
works team. They have achieved over 170 race victories, seven drivers' championships, five
manufacturers' championships and seven teams' championships, ranking second with the most
wins in the series.[71] Honda also won the World Touring Car Championship in 2013.

Honda made an official announcement in May 2013 that it planned to re-enter into Formula One
in 2015 as an engine supplier to McLaren  In September 2017, after a winless campaign spanning
three seasons and achieving a best finish of fifth place, McLaren and Honda announced their split,
with the latter going on to sign a multi-year deal to supply Toro Rosso, the junior team of Red
Bull Racing  After a fairly successful season with Toro Rosso, Honda made a deal to also supply
Red Bull Racing. Max Verstappen scored Honda's first win of the V6 turbo-hybrid era at
the Austrian Grand Prix In October 2020, Honda announced that they would be leaving Formula
One at the end of the 2021 season

Motorcycles
Main article: Honda Racing Corporation

Honda RC212V raced 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
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the development of Honda motorcycles. HRC also contributes to the advancement of motorcycle
sports through a range of activities that include sales of production 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 race, 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 monocoquframe, four-stroke

NR500. The FIM rules limited engines to four cylinders, so the NR500 had non-circular, '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
its 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. Honda also head the number of wins at the Isle of Man
TT having notched up 227 victories in the solo classes and Sidecar TT, including Ian Hutchinson's
clean sweep at the 2010 races.

The outright lap record on the Snaefell Mountain Course was held by Honda, set at the 2015 TT
by John McGuinness at an average speed of 132.701 mph (213.562 km/h) on a Honda
CBR1000RR, bettered the next year by Michael Dunlop on a BMW S1000RR at 133.962 mph
(215.591 km/h).

In the Motocross World Championship, Honda has claimed six world championships. In

the World Enduro Championship, Honda has captured eight titles, most recently with Stefan

25
Merriman in 2003 and with Mika Ahola from 2007 to 2010. In motorcycle trials, Honda has
claimed three world championships with Belgian rider Eddy Lejeune.

Company Profile

Company Profile 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 is headquartered
in Minato, Tokyo, Japan. Honda Motor Company, Ltd is a Japanese multinational corporation
primarily known as a manufacturer of automobile and motorcycles. Honda is world largest
manufacturer of motorcycles and as well as the world largest manufacturer of internal combustion
engines measured by volume. Honda surpassed Nissan in 2001 to become the second largest
Japanese automobile manufacturer. Honda was the first Japanese automobile manufacturer to
release a dedicated luxury brand in North America with the debut of Acura in 1986. Aside from
their core automobile and motorcycle businesses, Honda also manufactures garden equipment,
marine engines and personal watercraft and power generators, amongst other. Since 1986, Honda
has been involved with artificial intelligence/robotics research and released their ASIMO robot in
2000. They have also ventured into aerospace with the establishment of GE Honda Aero Engines
in 2004 and the Honda HA-420 Honda Jet, scheduled to be released in 2012.

History

From a young age, Honda's founder, Soichiro Honda (17 November 1906 – 5 August 1991) had
an interest in automobiles. He worked as a mechanic at the Art Shokai garage, where he tuned
cars and entered them in races. In 1937, with financing from an acquaintance, Kato Shichirō,
Honda founded Tōkai Seiki (Eastern Sea Precision Machine Company) to make piston rings
working out of the Art Shokai garage. After initial failures, Tōkai Seiki won a contract to supply
piston rings to Toyota, but lost the contract 11 due to the poor quality of their products. After
attending engineering school, without graduating, and visiting factories around Japan to better
understand Toyota's quality control processes, Honda was able, by 1941, to mass produce piston

26
rings acceptable to Toyota, using an automated process that could employ even unskilled wartime
laborers. Tōkai Seiki was placed under control of the Ministry of Commerce and Industry (called
the Ministry of Munitions after 1943) at the start of World War II, and Soichiro Honda was
demoted from president to senior managing director after Toyota took a 40% stake in the
company. Honda also aided the war effort by assisting other companies in automating the
production of military aircraft propellers. The relationships Honda cultivated with personnel at
Toyota, Nakajima Aircraft Company and the Imperial Japanese Navy would be instrumental in
the postwar period. A US B-29 bomber attack destroyed Tōkai Seiki's Yamashita t in 1944, and
the Itawa plant collapsed in the 1945 Mikawa earthquake, and Soichiro Honda sold the
salvageable remains of the company to Toyota after the war for ¥450,000, and used the proceeds
to found the Honda Technical Research Institute in October 1946. With a staff of 12 men working
in a 172-square-foot (16.0 m2) shack, they built and sold improvised motorized bicycles, using a
supply of 500 two-stroke 50 cc Tohatsu war surplus radio generator engines. When the engines
ran out, Honda began building their own copy of the Tohatsu engine, and supplying these to
customers to attach their bicycles. This was the Honda Model A, nicknamed the Bata Bata for the
sound the engine made. The first complete motorcycle, both frame and engine, and made by
Honda was the 1949 Model D, the first Honda to go by the name Dream. Honda Motor Company
grew in a short time to become 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. 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 sports car, which
followed the T360 into production in October 1963. Its chain driven rear wheels points to Honda's
motorcycle origins. 12 Over the next few decades, Honda worked to expand its product line and
expanded operations and exports to numerous countries around the world. In 1986, Honda
introduced the successful Acura brand to the American market in an attempt to gain ground in the
luxury vehicle market. Honda in 1991 introduced the Honda NSX supercar, the first all-aluminum
monocoque vehicle that incorporated a mid-engine V6 with variable-valve timing. Later, 1995
gave rise to the Honda Aircraft Company with the goal of producing jet aircraft under Honda's
name. Honda has expanded in main markets following: 1959: American Honda Motor Co., Inc.

27
established (Honda's first overseas subsidiary). 1964: Asian Honda Motor Co., Ltd. (Thailand)
established 1965: Honda (U.K.) Limited established in London (the first market of Honda in
Europe) 1971: Honda Motor does Brazil Ltda. established in Sao Paulo (presently Honda South
America Ltda.) The key point lead to Honda's success is the continuous innovation that was found
by Mr. Honda as a basis. Today Honda stands as the largest motorcycle manufacturer and the 9th
largest automobile manufacturer in the world. The market share of Honda until now is 10.2
percent. Honda Company also becomes a technological force in the motorcycle and automobile
industries in Asia, Europe, and North America.

Honda's Global Vision

Soichiro's vision was international in character. His desire was to lead the world in technology,
and make a significant contribution to the creation of a better society. As a result, most of the
products that Honda developed started out by making a difference. Whether it was the CVCC
engine in the sixties or the solar powered car of the nineties, they all sought to challenge and
overcome conventional wisdom. 13 Fulfilling the global needs of personal mobility in the new
automotive society - go hand in hand with the corporate philosophy: maintaining a global
viewpoint, they are dedicated to supplying products of the highest efficiency and quality at a
reasonable price for worldwide customer satisfaction. In India, it is through HSCI that customers
can enjoy the benefits of Honda's expertise. Soichiro's vision was international in character .His
desire was to lead the world in technology, and make a significant contribution to the creation of
a better society. As a result, most of the products that Honda developed started out by making a
difference. Honda is a global company with a global viewpoint and a four-region global strategy
that is reflected in a solid commitment to local markets and economies. However, the most
enduring challenge has been to satisfy the ever-changing needs of their customers. This is the
essential spirit of Honda.

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ACTIVA I

Ever since Honda introduced the Active in 2000, it has managed to get a tight noose in the
automatic scooter segment. And although it continues to dominate the market, over time a lot
more avenues have opened up for manufacturers to exploit. This class of two wheelers is no
longer simply categorised by engine and efficiency but by form and function as well. While there
are young and stunning offerings out there like the Honda Dio and the Suzuki Swish, the other
end of the spectrum comprises scooters like the Activa and the Mahindra Duro DZ which appeal
to a more mature audience.

Despite the big H pitching the Activa i as a unisex scooter, it is smaller and sleeker than the
Activa making it a better fit for the fairer sex. The slim front fascia with the clear lens turn
29
indicators and the leaning headlight make the scooter appear fresh. The arc shaped side panels
that blend well into the tail lights host the Activa i badge. Even though the dimensions are similar
to the Activa, the younger offering is much lighter thanks to its fibre body panels. It is also
marginally longer (30mm) than the Activa, but still the floorboard is big enough to rest just the
foot, leave aside the front storage box that’s available as an option on the Activa. The seat,
however, is long enough to seat two comfortably.

Like all scooters, this too has a basic instrument cluster with an analogue speedo and a fuel
gauge. Switch gear is par for the course while the handle bars are well positioned for a good
riding posture. Under the seat, the Activa I has 18 liters of storage space. The new offering also
comes with a tyre hugger for the rear wheel. The overall look and feel is good but it could have
done wonders with better quality plastics.

 Underneath the skin the Activa I host the same engine as on the new Activa – a 109.2cc
four-stroke air-cooled mill with the patented Honda Eco Technology. Needless to say the
power output also remains the same at 8.1PS @ 7,500 rpm and 8.74Nm @ 5,500rpm.
Mated to a V-matic transmission, the Activa I has good low and mid-range boost which
makes it a breeze to ride in the city. In our tests it touched the 60km/h mark from
standstill in a respectable 8.43seconds which is a tad faster than the Activa and also
recorded a top speed of 88.28km/h.

 The 130mm dia drum brakes up front and the Combi brakes of the same size at the back,
work well in bringing the scooter to a halt from 60km/h in just 17.25metres. Of course,
this has also got a lot to do with the 90/100 10-inch MRF Zapper tubeless tyres at the
front as well as the rear, which ensure that the rider feels confident even under heavy
braking. In terms of performance, the Activa I meets all expectations from a scooter from
the Honda stable and, more importantly, the Activa family.
 Honda has made all the right moves with the launch of the Activa I, especially taking into
consideration the fact that it is priced at Rs 44,200 (ex-showroom Delhi) which is almost
Rs 3,000 cheaper than the Activa. No doubt that in a price sensitive market like ours, the
30
 difference in cost definitely has an equivalent effect in the buying decision. The Japanese
two-wheeler manufacturer has also played a very smart and safe strategy by capitalizing
on the already established Activa brand. There was a time when people talked only of
Bajaj scooters. Then, there came Kinetic Honda to give a tough competition to Bajaj.
Kinetic gave Indians the gearless, strong and sturdy scooter. The time changed and it is
now the turn of Honda Motors and Scooters India Limited, to gain popularity in this
segment. Three gearless 110 cc engine scooters of Honda HMSI are already popular in the
market. These models of Honda scooters are popular with the names Dio, Activa and
Aviator. They are priced between Rs. 44,718 and Rs. 53,547 (Ex-showroom Delhi).
Another name can now be added to this trio, since Honda Motors and Scooters India
Limited has launched the new Honda Activa i on June 12, 2013. Priced at Rs. 44,200 (ex-
showroom Delhi), this will be the most affordable and competitive model in this segment
of scooters. The new model will be available for sale throughout the country by June end.
The Honda Motors has strategically categorized this scooter as a personal compact
scooter.
 The President and CEO of Honda Motors and Scooters (HMSI) Limited, Keita
Muramatsu hinted at the company's strategy in the following words commenting on the
launch of the scooter: "As a leader in the automatic scooters segment, Honda's entry into
the personal compact segment with ACTIVA-I is its next strategic step towards
reinforcing its market leadership." According to the CEO of HMSI, the company is now
engaged in the development of a new two wheeler, which will be a hundred percent
indigenous product. However, it was not disclosed whether the new product will be a
motorcycle or a scooter. The new product is likely to be completed within a year. Honda
has already captured 50 per cent of the scooter market in India. The company now aims to
be the largest two-wheelers manufacturer in India by 2015. Let us now discuss the
features and specifications of Honda Activa I

Engine and performance of the new Honda Activa I

31
Honda Motors and Scooters India Limited did not make changes in the engine of the new model.
It has used the same 109.2cc 4-stroke air cooled engine by which its earlier version Honda Activa
has been powered. This engine produces power of 8.15 PS @ 7,500 rpm. The torque is of
8.74The best thing to talk about its performance is the new Combi Brake System (CBS). This has
greatly reduced the braking distance by 24%, as compared to the traditional braking system. The
scooters mainly suffer from their low fuel economy. However, Honda Activa I is a marvelous
scooter in the matter of fuel economy giving the user a mileage of 60 kmpl. This is a great change
brought in the scooters by the use of Honda Eco Technology (HET)

Honda Activa i Features

ABS NO
Braking Type Combi Brake System
Charging Point Optional
Speedometer Analogue
Odometer Analogue
Tripmeter Analogue
Fuel Guage Yes

32
33
 Tubeless tyres, viscous air filter and maintenance free battery

Another great feature of Honda Activa I is its tubeless tyres. The viscous air filter and the
maintenance free battery give the rider of this wonderful vehicle a pleasurable riding
experience

 . Storage space, fuel tank, ground clearance and ergonomic grab rail

There is quite a large storage space of 18 liters, which is conveniently located under the
seat. The fuel tank capacity is 5.3 litres. Fill and forget strategy of Honda can be applied
here. You can have a tension free ride for hundreds of kilometer by just filling the tank
once. There is a good clearance of 165 mm from the ground. This, in fact, is 12 mm more
than what is provided in the former versions of Honda Activa. The women riders will feel
the new scooter very convenient to use, when they have to put the scooter on its main
stand. The new Honda takes 15 percent less force to be used when putting it on the main
stand, thanks to its ergonomic grab rail.

 Appearance and style

The new indicators and the new tail lamp gives very good appearance to your new
Honda Activa I. The new scooter has slim and sleek design, which is one of the best among
the scooters available in the industry. The company has lifted the superb design from its
already existence Honda Aviator.

 Price, availability and colours Honda Activa

I am likely to put for sales throughout the country by this month end. The basic
price of the scooter is kept at Rs. 44,200 (ex-showroom Delhi). Like its predecessor Honda
Activa, the new Honda Activa I am surely to be one of the best selling scooters in the
market. The company has already established a new factory near Bangalore for the
assembly of this scooter and there is no likelihood of delay in the delivery of this scooter.
The new scooter will be available in Beige, White, Red and Silver colours.

34
CHAPTER -3

35
 Theoretical Framework

A theoretical framework is a set of relatable ideas that may provide the basis for research and/or
development of business strategy/endeavour. A theoretical framework may be formulated to
understand and hence predict some phenomena.

It may further be used to challenge the existing knowledge about a topic and extend new opinions
about it. A theoretical framework consists of concepts and their explanation, along with the
justification of how to use them to further some research or use the concepts as the basis of
developing a business strategy or undertaking a business endeavour.

The selection a particular framework to be used should be decided by looking at the following
parameters:

1. Appropriateness

2. Ease of Use

3. Explanatory Power

For example, a theoretical framework like STP might be used by the marketing department of an
FMCG product while rolling it out in a new market.

Browse the definition and meaning of more similar terms. The Management Dictionary covers
over 2000 business concepts from 6 categories.

Marketing Mix of Honda analyses the brand/company which covers 4Ps (Product, Price,
Place, Promotion) and explains the Honda marketing strategy. There are several marketing
36
strategies like product/service innovation, marketing investment, customer experience etc. which
have helped the brand grow.

Marketing strategy helps companies achieve business goals & objectives, and marketing mix
(4Ps) is the widely used framework to define the strategies. This article elaborates the product,
pricing, advertising & distribution strategies used by Honda.

Let us start the Honda Marketing Mix & Strategy:

Honda Product Strategy:

The product strategy and mix in Honda marketing strategy can be explained as follows:

Honda has 4 business segments: automobile, motorcycle, financial services and power. The
marketing mix product strategy for Honda covers all aspects of the business as follows.
Automobile: Honda manufactures passenger cars, mini vehicles and light trucks. Honda’s
Passenger car models are Accord, Accord Hybrid, Accord Plug-in Hybrid, Accord Tourer,
Amaze, Brio, Brio Amaze, Brio Satya, City, Civic, Civic Tourer, CRIDER, CR-Z, Fit/Jazz,
Fit/Jazz Hybrid, Fit Shuttle, Fit Shuttle Hybrid, Freed, Honda Mobilio, Insight, Jade, Spirior,
Stream, Acura ILX, Acura RLX, Acura TL, Acura TSX. Light trucks manufactured by the
company include Crosstour, CR-V, Elysion, Odyssey, Pilot, Ridgeline, Step WGN, VEZEL,
VEZEL Hybrid, Acura MDX, Acura RDX. The company also offers mini vehicles, including
Acty, Life, N-Box, N-Box +, N-ONE, N-WGN, Vamos.

Honda automobiles use gasoline, diesel gasoline-electric hybrid and alternate fuel such as ethanol,
natural gas and fuel cell engines. Honda cars cater to different needs and preferences of various
segments of the markets.

Honda manufactures a wide range of motorcycles from Beat (FC50) which has a 48cc engine to
Gold Wing (GL1800) which is 1832cc engine. The motorcycles use use internal combustion
engines which are developed by Honda itself. Honda also offers all-terrain vehicles (ATVs) and
multi utility vehicles (MUVs). Honda’s Financial services offer a variety of services to customers
in Japan, US, UK, Germany, Brazil and Thailand. Services offered are leasing of new and pre
owned cars and financing for honda products.

37
Honda Price/Pricing Strategy:
Below is the pricing strategy in Honda marketing strategy:

Honda has cars which target every segment of the market.

Honda has hatchbacks, sedans, luxury sedans and SUVs. Hence, the pricing strategy in the
marketing mix of Honda is based on various parameters like competition, segment, features etc.
These automobiles target customers from low middle income level to high income level.
Dealerships have limited flexibility over pricing. Prices are determined by Honda and dealers
enter into contracts with them. Base prices around the world are similar and fluctuations may be
due to currency, taxes and other similar factors. Honda Motorcycles also have a wide range and
cater to different segments of the market. Honda uses economies of scale to meet growing
demand at affordable prices especially in emerging economies such as India, Brazil and Thailand.
Honda builds huge manufacturing hubs in developing countries and exports the bikes in
developed countries where cost of production is higher. Honda also provides luxury bikes and
sports bikes which are priced at the higher end.

Honda Place & Distribution Strategy:

Following is the distribution strategy of Honda:

Honda has a robust sales network. Prior to 2006 Honda had three sales channels. These were
Honda Verno, Honda Clio and Honda Primo. Honda Verno sold established and products of
sporty nature. Honda Clio sold traditional Honda products and Honda Primo sold Kei car i.e.
small cars. All three were discontinued in 2006 and Honda Cars dealerships were established.
Honda sells genuine company accessories through Honda Access a retail chain. Customers can
also buy used cars directly from Honda through Honda Auto Terrace. To sell kei cars Honda
established Honda Auto Terrace in 2912. Honda Cars has strong sales and distribution networks

38
in the markets in which it operates. In India the network includes 309 authorised dealership
facilities in 197 cities.

Honda sells automobiles through a network of 740 retail dealers in Japan; 1,310 dealers in the
US; 1,580 dealers in Asia (excluding Japan); and 1,150 dealers in Europe as of 2014. As of 2014
Honda motorbikes had 6,900 outlets in Japan. Honda sells motorbikes using independent dealers
in US and Europe and Asia with 1,040 dealers in US, 14,070 dealers in Asia and 1,400 dealers in
Europe.

This shows the strong marketing mix distribution strategy of Honda motors.

Honda’s power products are sold in Japan through approximately 1,110 retail dealers; through
8,000 independent local dealers in the US; ) through 3,500 independent local dealers in Asia
(excluding Japan); and in Europe through a network of approximately 2,850 independent local
dealers.

Honda Promotion & Advertising Strategy:

The promotional and advertising strategy in the Honda marketing strategy is as follows:

Honda used an innovative marketing campaign to change the way customers perceived
motorbikes. The slogan used was "You meet the nicest people on a Honda”, this campaign
showcased that Honda motorcycles were made for the common man. The campaign was
successful and increased Honda’s sales 90,000 motorcycles in 1963 alone. The promotional
strategy in the marketing mix of Honda is to be aggressive. Honda uses TV advertisements to a
large extent. Honda has released ads with different themes to attract customers. The adds focus on
Honda’s innovation and superior engineering such as the cog advertisement released in 2003.
Honda also released an advertisement showcasing the Honda founders dream of producing high
quality cars. Honda has a lot of promotion done through motorsports like Motorcycle Grand Prix,
Superbike racing and others in which the company participates or supplies engines. Honda
portrays that it builds cars which win such tournaments. Honda sponsors such sporting events, it
was the official sponsor of the 2006 FIA Formula 1 telecast on broadcaster channel "Ten". Honda
39
also sponsors other sports such as hockey and golf. Honda advertises in print media and
participates in road shows to showcase its products. Hence, this concludes the marketing mix of
Honda.

Differentiating targeting strategy is what used by Honda for selection of the defined

population to whom the specific product or services can be offered.

Honda has positioned itself as a value-based company whose objective is to enrich the lives of
the people worldwide and give them the power to enjoy their life.

Competitive advantage in the Marketing strategy of Honda Motors –

Product portfolio–

Whether it is motorcycle segment or its automotive segment, Honda have large product portfolio
addressing the needs of the different segments which help the company to build long-lasting
relationships with the customers.

Subsidiaries and affiliates-

 Having a large number of subsidiaries (373) and affiliates (67) are helping the company is

benefiting from the resources and expertise that the other company brings in.

Changing the business strategy–

By dividing the world into 6 regions and each one to work autonomously is the great step that
Honda has taken to remain focused and develop models on the region wise so as to cater to the
changing needs of the various countries aptly.

40
BCG Matrix in the Marketing strategy of Honda Motors –

In the BCG matrix, its 2-wheeler and the automotive segment is the star due to having such a
large product portfolio and strong in the markets it operates into.

Its aviation and telematics business vertical is a question mark in the BCG matrix.

Distribution strategy in the Marketing strategy of Honda Motors –

It uses the different channel of distributions such as authorised showrooms/dealerships,

authorised service centres, resellers, DSA (direct selling agents) and the e-commerce sites to
make their products available to the customers.

Brand equity in the Marketing strategy of Honda Motors –

Extensive branding and visibility campaigns have helped the company in creating high TOMA
(top of mind awareness) and positive word of mouth which resulted in high sales.

Competitive analysis in the Marketing strategy of Honda Motors –

Honda Motors is widely known for its deep product portfolio ranging from the value for
money segment to high-end segment with high CC and improved features. The kind of the
technological advancement and expertise developed by Honda is commendable.

Honda is giving head-on competition to the companies in the markets it presents into in terms of
its products and pricing of the products.

41
CHAPTER-4

42
 4.Data Analysis And Interpretation

Response Regarding After Sales Services for Motor Bikes

Sr.No Name Of The Brand Good Very good

1 Honda 30 50

2 Bajaj 45 35

3 TVS 25 15

Interpretation:

Regarding after sales service of motor bikes, 50 respondents have responded very good for
service, followed by Bajaj with 45 respondents stating good family members are 10
respondents and for Bajaj is 5respondents. Whereas from friends 40 respondents are Bajaj
and also 25 for brand name.

43
 Sales Comparison between Honda, TVS and Hero
Interpretation:

The above bar chart showing that people are fully satisfied with Honda and no one who is
disappointed with Honda.

44
Data Analysis

45
46
47
48
49
Q.1) Are you satisfied with Activa I mileage

Criteria Respondents Percentage

Yes 19 63%
No 11 37%

Ye N
s o

Respondents

The company’s Activa I mileage is 60kmph,whereas the survey of 30

respondents clears that only 63% are getting a good mileage whereas 37% are not
satisfied with it…. may be a reason behind of unsatisfactory that they may not be
servicing it properly. The product image regarding mileage is very good in the market.

50
Q.2) Are you satisfied with after sales services provided by Active I?

Criteria Respondents Percentage

Yes 18 33
No 12 67

Respondents

Yes
No

As per the table & reply from the respondents is clearly indicates that’s
60% of the respondent have satisfied with after sales services and 40% is not satisfied.

51
Q.3) Will you recommend Activa I to anybody?

Criteria Respondents Percentage

Yes 23 77
No 07 23

Respondents

Ye No
s

As per chart indicate that’s 77% respondent to recommend while the other
23% respondent do not recommend this.

52
Q.4) which other scooty do you find more flexible than Activa I?

Criteria Respondents Percentage

TATA 16 40
Wego 13 33
Activa I 11 28

Respondents

TATA Wag Activa I

o

As per the chart indicate that’s 28% respondent says flexible, and other respondent can
voted other scooty. It means more respondent cannot satisfy the product.

53
Q.5) Is Activa I an affordable scooty?

Criteria Respondents Percentage

Yes 25 83
No 05 17

Respondents

Ye No
s

As per the chart indicate that’s 83% respondent is says Activa I as

affordable scooty other 17% respondents says not.

54
Q.6) Which Honda vehicle would u like to purchase?

Criteria Respondents Percentage

Active 11 37
Bike 12 40
Car 07 23

Respondents

Activa Bike Car

As per the chart indicate that’s 40% respondents purchase bike and 37%
purchase Activa . The product service is good in the market.

55
Q.7) Does the Honda service center helps you out with all your queries
regarding scooty?

Criteria Respondents Percentage

Yes 20 67
No 10 33

respondents

Ye No
s

For the above chart indicate that’s the Honda service center help is 67%
respondent satisfied and 33% respondents not satisfied. The Honda service center is
improving their service.
56
Q.8) Do you think Activa I is ecofriendly?

Criteria Respondents Percentage

Yes 26 87
No 04 13

Respondents

Ye No
s

Above the chart shows that’s 87% respondent think Activa I is an

ecofriendly and 13% think that’s not ecofriendly. The most of the respondent can think
that’s Activa I is ecofriendly.

57
Q.9) Are you happy with the sales scheme provided by you?

Criteria Respondents Percentage

Yes 24 87
No 06 13

Respondents

Ye No
s

As per the chart shows that’s 87% respondent is happy with the
sales scheme provided them because most of the customer is attract there product. Its
create a good reputation in the market.

58
CHAPTER-5

59
 Findings
1. Major of the customers of Honda Activa I are belongs to age group above 40
years (40%)
2. 31% of the customers have opined that product performance is good
3. 33% of the respondents have a poor opinion about the after sales service
4. About 22%, 19%, 25%, Respondents are come to know about the Honda from
Television, News Paper and Friend/Relatives.
5. The Criteria of Select the Honda Motorcycle the Most of the Serviceman Trade
shop Owner and Business man they give the importance of the Average Pick up
and Price and also maintenance consideration.
6. About 28%, 30%, 12%, respondents will purchase Activa, Dio, And Unicorn
respectively produced by the Honda Company.
7. Most of Respondents Purchase a Motorcycle on bike required and festival and
students preferred it to buy when they start Job.

60
 Suggestions

1. Honda co. is suggested to make improvement in their vehicle considering the

C.C. and Maintenance cost occur after sales.
2. Company and dealer are suggested to concentrate on advertising print Media like
Hoarding, Magazines, and adverting Banner. So it can help both them to increases
their sales.
3. No. of Competitors entered in the market so Consumers are shifting towards
others. So, company is suggested to more concentrate on consumer by creating
more dealers in city. Dealers are advice to provide better quality after sales
service to retain consumer and for mouth publicity.
4. The company should come out with its own financial company and provide
attractive finance like Low down payment, low rate of interest to attract
customers.

61
 Conclusion

It is good for Honda that majorities of people are aware about its brand that Hero has
earned enough to keep conditions contact with customer market and to constantly carry
out R & D in production of two wheeler and marketing the same to the different
destination. They try to produces such vehicles that attract the customer.

1. There is a heavy demand for Honda motorcycles in the market, so their supply has to
be drastically improved so as to meet the demand of the customer.

2. A vast majority of the respondents felt the design of Honda bikes should be changed
so as to attract the customers.

62
 Bibilograpgy

WEBSITES

 www.wikipedia.com
 www.researchandmerkets.com
 www.hero honda.com
 www.google.com

BOOKS

 Marketing Management- J.C. Berry

MAGAZINES

 Business Today

63
 Annexure

1. Please mention your age group

 18-20
 21-25
 26-30
 31-35
 36- Above

2. Gender

 Male
 Female

3. Please mention your occupation

 Officials
 Clerical or Salesmen
 Student
 First Jobbers Retired

4. If you were to recommend a scooter would you recommend anyone Honda?

 Yes
 No

5. What are the things that you look while purchasing a bike?

 Fuel efficiency
 Looks
 Low maintenance cost
 Reliability( less chances of breakdown)
 Least physical efforts
64
  Low price

6. How did you get to know about Hero Honda that you having at present?

 Advertisement
 Family information
 Friend’s recommendation
 Dealer’s recommendation

7. What mode of do you prefer?

 Cash
 Finance schemes
 Company loan
 Others

8. How likely would you recommend Honda?

 Very unlikely
 Not likely
 Good
 Likely
 Very likely

9. What is your overall opinion about Honda?

 Very bad good

 Bad
 Neither Bad
 Good

65
66