Post on 02-Dec-2015
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Contents
ACKNOWLEDGEMENT ............................................................................................................................. 1
EXECUTIVE SUMMARY ............................................................................................................................ 3
INTRODUCTION ....................................................................................................................................... 4
About the Company – Honda Motorcycle & Scooter India Private Limited (HMSI) ............... 4
Corporate Philosophy: ................................................................................................................. 4
Mission: .......................................................................................................................................... 4
Vision:............................................................................................................................................. 4
Brand Philosophy: ........................................................................................................................ 4
PRODUCT PORTFOLIO ......................................................................................................................... 5
ABOUT THE PRODUCT – ACTIVA ......................................................................................................... 7
Medium Involvement Product ........................................................................................................ 8
PRODUCT LEVELS FOR HONDA ACTIVA................................................................................................... 9
PRODUCT IMPROVEMENTS & ANALYSIS .............................................................................................. 10
Year – 2009 “ New Honda Activa” .................................................................................................... 10
Year – 2013 “ACTIVA HET” ................................................................................................................ 12
Year – 2015 “ACTIVA 3G” .................................................................................................................. 13
REFERENCES .......................................................................................................................................... 16
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EXECUTIVE SUMMARY
Honda Activa, the two-wheeler manufactured by Honda Motorcycle & Scooter India Private
Limited (HMSI) was product chosen to analyse the changes and product improvements as
part of the project. The first step was understanding the company and the range of products
offered by the company, and then going focussing on the product Honda Activa. All the
features of the product were studied initially. Following that, changes and improvements made
in the product from 2009 till 2015 were tracked. Both primary and secondary sources of data
were used to compile the list of changes introduced in the product. Primary data as to the
details of changes and improvements made in Honda Activa was collected from Mr. Pramod
Akula, the Area Sales Manager of HMSI Ahmedabad. Along with primary data, secondary data
from the company’s website and articles from various sources on the internet was also used.
It was found that three major improvements were made in the product, in 2009, 2013 and
2015. The major improvements/changes made were introduction of new engine, CBS (Combi-
Brake System) and HET (Honda Eco Technology).
After compiling the details of changes and improvements, an analysis was done to find out the
reasons behind introducing those changes. Further analysis was done to understand whether
these changes have actually provided competitive advantage to the company, to identify
whether the changes were necessary or not. Customer and expert reviews from secondary
sources were then used to understand which of those changes benefitted customers and what
the customers felt about those changes. Customer reviews and information regarding
customer perception of Honda Activa 3G were collected from Envision Honda, the Honda retail
outlet in Lucknow. Also, information regarding products and improvements introduced by
major competitors was analysed and compared with the changes made by Honda Activa. This
was done to understand whether Honda Activa leads the market or follows the market.
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INTRODUCTION
About the Company – Honda Motorcycle & Scooter India Private Limited (HMSI)
(Honda, 2015)
Honda is the largest manufacturer of two wheelers in the world, recognized the world over as
the symbol of Honda two wheelers, the ‘Wings’.
Corporate Philosophy:
HMSI operates on a principle, which is followed worldwide by all Honda companies.
Mission:
Maintaining a global viewpoint, Honda is dedicated to supplying products of the highest quality,
yet at a reasonable price for worldwide customer satisfaction.
Vision:
Respect for the individual: Honda recognizes and respects individual differences. The
respect for individual stems from the following three points:
o Initiative
o Equality
o Trust
The Three Joys (buying, selling and creating): In line with Honda's Philosophy, HMSI
conducts all its daily activities in pursuit of the following joys:
o The joy of buying high quality products.
o The joy of selling high quality products
o The joy of manufacturing high quality products
Brand Philosophy:
"The Power of Dreams" as a way of thinking guides and inspires Honda to move forward. The
strength of the company comes from this philosophy—based on the visionary principles of the
founder, Soichiro Honda.
In 1999 Honda entered India arrived as Honda Motorcycle and Scooter India Pvt. Ltd. (HMSI),
a 100% subsidiary of Honda Motor Company Ltd., Japan. Since its establishment in 1999 at
Manesar, District Gurgaon, Haryana, Honda has lived up to its reputation of offering the
highest quality at the most reasonable price. Despite being one of the youngest players in the
Indian two-wheelers market, Honda has become the largest two wheeler manufacturer as well
as the second largest two-wheelers company in India. Expanding to full operations , Honda
production capacity has jumped 30% year on year to 2.8 million per annum in FY 12- 13.
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PRODUCT PORTFOLIO
Product Family – Two wheelers
Product class – Motorcycle, scooter, superbikes
Product Lines – 110cc, 125cc, 150-160cc, 250cc etc.
Products – Activa 3G, Activa 125 Aviator, Dream Yuga etc.
SKUs(based on colours) – Black, red, majestic grey etc.
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TWO WHEELERS
MOTORCYCLES
110CC
LIVO
Athletic Blue Metallic
Black
Sunset Brown Metallic
Pearl Amazing WhiteCD110 DREAM
Black with Red Graphics
Black with Grey Graphics
Black with Blue Graphics
DREAM YUGA
Sports Black
Vibrant Blue
Majestic Grey
All Black
Sports RedDREAM NEO
Black With Red Stripes
Black With Violet Stripes
CB TWISTERHeavy Grey Metallic
Black
Electric Yellow Metallic
Sports Red
125CC
CB SHINE
BlackGeny Gray Metallic
Maple Brown MetallicImperial Red Metallic
CBF STUNNER
Sports Red
Pearl Sports Yellow
Candy Palm Green
Black
150-160CC
CB TRIGGER
Black
Meteor Green Metallic
Pearl Sunbeam White
Pearl Sienna Red
CB UNICORN 160
Imperial Red Metallic
Geny Gray Metallic
Pearl Igneous Black
CBR150R
Vibrant OrangeBlack & Candy Palm
GreenBlack & Pearl Sunbea White
Sports Red
250CC CBR250R
Pearl Sunbeam White
Sports Red
CBR Repsol
SCOOTERS
125CC ACTIVA 125
Rebel Red Metallic
Midnight Blue Metallic
Pearl Amazing White
Black
110CC
ACTIVA 3G
Black
Lusty Red Metallic
Trance Blue Metallic
Geny Gray Metallic
Pearl Amazing White
DIO
Sports Red
Black
Candy Palm Green
Candy Jazz Blue
AVIATOR
Pearl Igneous Black
Standard Silver Metallic
Rebel Red Metallic
Pearl Sunbeam White
ACTIVA I
Alpha Red Metallic
Pearl Amazing White
Autumn Beige Metallic
Black
Orchid Purple Metallic
SUPERBIKES
650CC CBR650F Pearl Metalloid White
1000CC
CB 1000R
Pearl Sunbeam White
Black
Sports Red
CBR 1000RRWhite
White & Red
1200CC VFR 1200F Red
1300CC VT 1300CX Black
1800CC GOLDWING
Dual Tone Candy Prominence Red
Pearl Glare White
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ABOUT THE PRODUCT – ACTIVA
The name Honda Activa and Scooter are synonymous to each other. Since its launch in
2001 as the first two wheeler by Honda in India, Activa has revived the fading scooter market
in India and reinvented convenient mobility for the entire family.Activa has a conservative
styling and neutral design to please the masses.
Fostered by the trust and confidence of Indian customers in Activa, Honda escalated from
55,000 units in first year (2001) to becoming the market leader in just 3 years. Since then,
Activa has matured to sell over 2.1 million units in FY’2014-15, displacing motorcycles to
become India’s No. 1 Selling 2Wheeler for 2 consecutive months (June-July’15) as well as
undisputed market leader with 59% market share in the scooter segment.
With features like superior four stroke engine, Honda Eco Technology, V-matic (gearless)
transmission, durable all metal body, Convenient Lift-up Independent Cover(CLIC)
mechanism, tubeless tyres and combi-brake system, Activa has delivered commendable
performance and has bagged various awards and achievements over the years. (Honda,
2015)
Year Awards and Achievements
2001 Scooter of the Year(BS Motoring)
2002 Scooter of the Year by Overdrive Magazine
2007 Best automobile brand of India (Planman Media)
2008 Scooter Customers Satisfaction No.1-CNBC TV-18-Auto Car Auto
Awards
2009 Scooter of the Year- ET ZigWheels Awards
2014 Best-selling 2wheeler of the country by Economic Times
Source: http://www.honda2wheelersindia.com/media-center/awards/
Recently in August 2015, has set a new record with Activa becoming the first scooter in India
to achieve a phenomenal 1 crore unit sales landmark.
Honda Activa is the flagship model of HMSI. They entered into the India market after their
separation with Hero Motorcorp in 2000 with Activa. Apart from the base model, 2 more
models ACTIVA 125 & ACTIVA I have also been launched in the Indian market
Today, every second scooter customer in India rides an Activa! (Honda, 2015)
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Medium Involvement Product
Marketing strategy should take into account the level of involvement that a consumer has
with a specific product, as this also dictates the type of information that consumer needs to
process in order to make a purchase decision.
Honda Activa is classified as a moderate/medium involvement product as the associated
price, perceived risk, personal relevance and social visibility is neither too high nor too low.
FCB Matrix
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PRODUCT LEVELS FOR HONDA ACTIVA
(Kotler, 2013)
Core Benefit
• Transportation
Basic Product
• Good Braking system
• Lighting
• Gearless Transmission
• Underseat luggage space
Expected Product
• Comfortable and smooth ride
• High mileage
• Easy to handle
• Good after-sales service
Augmented Product
• Best after-sales service across two-wheelers
• CBS for improved safety: reduces braking distance and increases stability while braking
• HET technology leading to higher mileage
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PRODUCT IMPROVEMENTS & ANALYSIS
We have tracked Honda Activa from year 2009 – present. During this period, Honda made
changes 3 times to their Flagship model. These changes happened in year 2009, 2013 and
2015.
2009 – All New Honda Activa 2013 – Activa HET 2015- Activa 3G
We will be looking into the upgrades in chronological order
Year – 2009 “ New Honda Activa” (HMSI, Joy ON & ON’ – Honda unveils the New refreshing Activa, 2009)
Upgrades Advantages Customer Reviews
Mechanical Makeover
New 110cc Engine from 102cc
Engine
Delivered more power ( 8 bhp from 7
bhp)
Users were delighted
with increased power
15% Increased Mileage Fuel Efficiency Increased Highly appreciated by
users
Combi Brake System (First
time ever in India)
Braking Distance Reduced and
provides increased Stability while
Braking
Highly appreciated by
people riding the vehicle
in congested spaces
Tuff up Tube in Rear Tyre
(Offered by HONDA)
Honda Exclusive - Reduces the
chances of Puncture (Added
Comfort& Safety)
Appreciated
Cosmetic Makeover
Increased Underseat Storage
Capacity to 18L
More space available to keep stuff
(Added Comfort) Indifferent
Key Shutter (Already Used by
Pleasure in the Market)
Safeguards Ignition Slot ( Anti-Theft
Feature) Indifferent
Halogen Lamp Headlights Better Illumination Indifferent
Clear Winkers Make it more stylish and differentiate
itself from competitors
Appreciated for better
style
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Lean Body Cover ( Thickness
reduced from 10mm to
0.8mm)
Reduce Weight and Increased Fuel
Efficiency Not Aware about this
Grab Bar
Increased comfort for pillion rider,
Spare wheel was removed led to
attractive rear
Appreciated for stylish
looks
Bag Hook Increased convenience by securing
luggage on Footboard Indifferent
Wider Foot Board More Space for Foot Appreciated by users
Combi Brake System
Competitors – Hero Pleasure, Scooty Pep+
Analysis
Before the launch of New Activa (2009 edition), Activa was competing in 100cc and less
category. Honda was facing stiff competition from Hero Pleasure. Both the vehicle were 102
cc and had more or less same offerings.
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The only difference between Activa and Pleasure was in their target groups. Honda Activa
positioned itself as a Unisex Scooter whereas Pleasure prime focus was on women
category.
In order to clearly differentiate itself more, Honda launched New Activa with some major
changes like new engine, better fuel efficiency & CBS (first time launch in India).
All the above changes provided Honda Activa with clear advantage over its competitors.
Honda Activa moved itself from 100cc category to 110cc category where it had no rivals and
this led to considerable increase in their market share.
Year – 2013 “ACTIVA HET” (Overdrive, 2013)
Upgrades Advantages Customer Reviews
Honda Eco Technology
(Patented Technology) Better Fuel Efficieny
Activa feels much
livelier and yet smoother
Mechanical Makeover
Nickel Coated Spark Plugs
(First in Scooter Segment) Improved Combustion Positive feedback from
the market, Customer
reported an increase of
5kmpl in the mileage
Crankcase offset
Reengineered Inlet ports Reduced Friction in the Engine
Low Tension Piston Rings
Overall weight Reduction Increased Efficiency
Cosmetic Makeover
HET Emblem over Left Hand
Side Engine Cowl To differentiate it with older model Indifferent
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COMPETITORS - TVS Wego, TVS Jupiter (was expected in few months), Hero Maestro
ANALYSIS
- In order to combat higher fuel prices
- To compete with current and expected products in the market
In order to differentiate itself and cater to mileage obsessive segment, Honda launched
Activa with their patented technology which claimed to increase the fuel mileage. With
this launch, Company claimed more mileage than existing competitors.
Yes, Honda HET did provide a clear competitive advantage over Competitors. Mileage
obsessive customers truly liked the product & it got positive feedback from the experts as
well.
Year – 2015 “ACTIVA 3G” (HMSI, HMSI, 2015)
Upgrades Advantages Customer Reviews
Cosmetic Makeover
Front fascia has been
tweaked mildly with a
restyled and larger faux
vents
Looks more Stylish Easy to differentiate
and looks more
attractive
Handlebar mounted
headlamp and turn
indicators have been given
minor updates
More Attractive Looks
Positive feedback - It
does add to feel and
look of the vehicle Elegant Tail Lamp and clear
winkers
Distinguishes it from the rest
3D HONDA emblem Adds premium feel to the Vehicle
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COMPETITORS – Hero Maestro, TVS Jupiter, TVS Wego, Suzuki Let’s, Yamaha
Fascino, Mahindra Gusto
ANALYSIS
With bombardment of Scooters in the market, Honda has changed its flagship model’s
design. Honda have tried to make it more stylish. Honda Activa has got a cosmetic
makeover in order to entice customers who are looking for style along with performance. It
retains its elegant and simple design but few changes like newly designed taillight, larger
faux vents helps it to distinguish itself from competitors. 3D Honda Emblem which earlier
was a part of premium Honda Motorcyles has also been added to enhance style and
premiumness of the vehicle.
Though the move from Honda seemed logically as they wanted to make their product
superior in terms of style, nothing much can be said about the effect of it on sales numbers.
Honda has got thumbs up from customer and industry expert for new looks.
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REFERENCES
(2009, March 28). Retrieved from Mouthshut: http://www.mouthshut.com/bikes/Honda-
Activa-reviews-925034646
(2013, Feburary 14). Retrieved from Overdrive: http://overdrive.in/reviews/2013-honda-
activa-het-in-india-road-test/
AutoCar. (2009, September 30). Retrieved from AutoCar India :
http://www.autocarindia.com/auto-reviews/honda-activa-269167.aspx
BikePortal. (2015, October 21). Retrieved from
http://bikeportal.in/newbikes/honda/activa/reviews/
HMSI. (2009, March 27). Joy ON & ON’ – Honda unveils the New refreshing Activa.
Retrieved from HMSI: http://www.honda2wheelersindia.com/joy-on-on-honda-
unveils-the-new-refreshing-activa/
HMSI. (2015, October 21). Retrieved from HMSI:
http://www.honda2wheelersindia.com/activa3g/
Honda. (2015). Honda About Us. Retrieved from Honda Power of Dreams:
http://www.honda2wheelersindia.com/about-us/philosophy/
Honda. (2015, August 18). Honda Activa crosses One Crore unit sales landmark. Retrieved
from Honda the power of dreams: http://www.honda2wheelersindia.com/honda-
activa-crosses-one-crore-unit-sales-landmark/
Kotler, P. (2013). Marketing Management. Pearson.