MARKETING PLAN OF

HONDA CITY

Team Members

Four Wheeler Segmentation

Honda Siel Cars India Ltd: An Overview

Present Since

• 1995

Production Plants & Annual Capacity

• Greater Noida Plant: 100,000 units• Tapukara Plant: 60,000 units

Growth

• 343 % growth in May 2012 v/s May 2011• May 2012: 10,334 units sold • May 2011: 2,334 units sold

Sales Analysis

Source: Balance sheet 2011 Press release May 2012

Honda Siel : Most selling cars 2011 - 2012

Source: Rediff.com 2011 - 2012

Case Study Understanding & Evaluation

HONDA CITY

• Honda city is a mid sized car for Honda Siel Cars India ltd.

• Honda city crossed 50k units in 2009.

• Honda City was market leader from 2000.

• It used to be a matter of pride to own and drive a Honda City

Honda City VariantsVariants Price

Honda City 1.5 E MT 7,49,000

Honda City 1.5 S MT 8,19,600

Honda City 1.5 S MT Elegance 8,56,241

Honda City 1.5 VMT 8,64,800

Honda City 1.5 S MT Inspire 8,90,738

Honda City 1.5 V MT Elegance 8,99,404

Honda City 1.5 V MT Exclusive 9,16,900

Honda City 1.5 V MT Inspire 9,35,938

Honda City 1.5 VAT 9,37,000

Honda City 1.5 V AT Elegance 9,71,604

Honda City 1.5 V AT Exclusive 9,89,100

Honda City 1.5 V AT Inspire 10,08,138

SWOT Analysis

• StrengthsReliabilityBrand NameElegant appearance

• WeaknessNot able to sustain in High CompetitionNo Diesel EngineLack of features

SWOT Analysis

• OpportunitiesCustomer loyalty Innovation

• ThreatsAvailable only in petrol engineHigh CompetitionRise in petrol price

DOWN FALL OF HONDA CITY

• Demand shifted to fuel efficiency due to rise in petrol price.

• More competitors entered with diesel variant and more features .

• Not appropriate steps taken to regain the top position.

DOWN FALL OF HONDA CITY

March April May

2010 4338 2787 3121

2011 2773 1542 1828

250750

1250175022502750325037504250

SALES IN UNITS

Source- NMIPL

CITY VS VENTO

Mar/11 Apr/11 May/110

500

1000

1500

2000

2500

3000

3500

4000

4500

2773

15421828

3973

28662403

Sales in units

Honda CityVolkswagen Vento

Source- NMIPL

Price and FeaturesMaruti SX4 Hyundai Verna Honda City VW Vento

Price 7,78,999 8,09,651 7,49,000 8,19,000

Air Bags TWO SIX TWO TWO

Start Push Button

No Yes No No

Climate Control Yes Yes No Yes

Rear Parking Sensor

No Yes No No

Market Share

Maruti Swift Dzire28%

Tata Indigo20%

Honda City8%

Maruti SX410%

VW Vento11%

others24%

Sales (March 11)

Source- NMIPL

Mission

“Acquire market share of 15% in sedan segment”

“Bring out innovation and differentiation in the new launch ”

Customer’s Need

Emotional Needs Elegant Looks Dependable and loyal Well balanced and fuel efficient

Mind-Set To have a luxurious feeling

while driving Makes feel more comfortable

and pride Cost conscious Fuel efficient

Functional Needs Long lasting/ Safe/

Good performance Reliable and

Trustworthy Performance

Spacious / Roomy Flexibility / Utility

Positioning of Honda City

Upper middle and higher income families who wants to upgrade from hatchback to sedan car.

Cities and Rural areasUpper Middle and Higher Incomer groups

Families

Geographic- Tier1 and Tier 2 citiesDemographics-Income(Upper Middle, High)

Lifestyle- Family use, Personal use

People who wants four wheelers and are sedan lovers

People who wants to travel

Market

Target Market

Segment

Target Segment

Customer

Prestigious Car

Marketing MIX

Product

Diesel Engine

Two Variants in Diesel

Available in three colours

Induce more airbags

Marketing MIX

• Product

• Available in 3 variants(Dx, Dxi,Dhi).DX DXI DHI

Diesel Engine Y Y Y

Push Start N Y Y

Chrome N Y Y

Climate Control

N N Y

Price• As diesel engine and other feature are

implemented the cost of this car has raised.

• The revised price will be Rs 8,05,000 little lesser than Vento and Verna.

• Brand Value

Promotion

• Advertisement- TV Commercials and News paper

• Trade Show

• Partnership with ICICI

• Social Media Community

“A DRIVE WITH PRESTIGE”

Place

• Minimize Channel length will prevent price escalation and preserving its competitive advantage.

• Increase the number of dealers.

• Improve the efficiency of logistics.

Conclusion

With Diesel variant and added features in this car , consumer will

surely get attracted and the mission of achieving 15% of market share will definitely be achieved.

As there is various promotion made, this car will surely become a hot cake for Indian car consumer.

• THANK YOU

New Honda City will have a boon of Diesel Variant In 2013

'63 Honda’s automobile business begins with the release of its first sports car (S500) and light truck (T360). '67 Front-wheel-drive minicar, N360, released. '68 N Series of minicars tops Japanese sales. '69 Automobile production in Taiwan begins (first overseas production of Honda automobiles). '70 N360 top seller in Japan for its first three years. Z and Vamos minicars released. '72 Civic released. CVCC low-emission engine first to comply with 1970 U.S. Clean Air Act. '75 Automobile production in Indonesia begins. '76 Accord released.

Automobile production in the U.S. begins (a first for Japanese automobile manufacturers). '86 Acura brand launched in the U.S. (first Japanese luxury automobile brand). '88 Total automobile production reaches 15 million units. '89 Accord becomes best-selling car model in the U.S.

1990's '92 Worldwide automobile production reaches 20 million units. '95 Worldwide Civic production reaches 10 million units. Worldwide automobile production reaches 30 million units. '97 LEVs (low emission vehicles) Civic Ferio and Partner 1.6 released. Leasing of EV Plus electric vehicle begins in the U.S. '99 Insight hybrid released

2000's '01 Automobile production reaches 10 million units in the U.S. Fit and Civic Hybrid released. '02 Leasing of FCX fuel-cell vehicle begins in Japan and the U.S. Fit achieves No.1 annual sales among domestic registered vehicles. '03 Worldwide automobile production reaches 50 million units. '05 Leasing of FCX fuel cell vehicle for home use begins. Worldwide sales of Honda hybrid vehicles reach 100,000 units. '06 Sales of Bioethanol-compatible Flexible Fuel Vehicle (FFV) models for Brazilian market begin. Acura brand launched in China. '08 Leasing of FCX Clarity fuel cell vehicle begins in Japan and the U.S. '09 Insight hybrid vehicle released. '10 CR-Z hybrid vehicle released.