INTRODUCTION

TABLE OF CONTENTS

Executive Summary

Chapter-1: Profile of the Firm/Company

Chapter-2: SWOT Analysis of the Company

Chapter-3: Functional Analysis of the Company

Chapter-4: Lessons Learnt

References/Bibliography

AppendicesCHAPTER 1: Company profile

Honda is the world's largest manufacturer of 2-wheelers. Its symbol, the Wings, represents the company's unwavering dedication in achieving goals that are unique and above all, conforming to international norms. These wings are now in India as Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI), a wholly owned subsidiary of Honda Motor Company Ltd., Japan. These wings are here to initiate a change and make a difference in the Indian 2-wheeler industry. Honda's dream for India is to not only manufacture 2-wheelers of global quality, but also meet and exceed the expectations of Indian customers with outstanding after sales support.

ORIGIN OF THE ORGANIZATIONHonda Activa is the first scooter model of HMSI for the Indian market.

It has revitalized the Indian scooter market after its launch in the year 2009. Within the 1st year of its launch it has been awarded the 'Scooter of the Year' by Overdrive magazine and also the 'Readers Choice Award' for the best scooter by Auto India Magazine.

The Honda Activa has set a new standard for new era of scooters in India. It has been developed exclusively for the Indian market after closely examining the changing lifestyles, wants and needs of the consumers.

The Honda Activa has been designed to cater people who believe:

PRIVATEThe conventional Indian scooter is too big and difficult to handle

The scooterette is too small and similar to mopeds

The Honda Activa is equipped with a number of new functions and mechanisms, introduced for the first time in India. It is designed to offer greater functionality, performance, economy, and ease of handling and maintenance to a wide cross-section of the Indian society.

As responsible members of society and industry, we Honda Motorcycle and Scooters India Pvt. Ltd. (HMSI), Manesar manufacturer of two wheelers, recognize that well being of humans and conservation of earth's environment is important. By adopting environmental management system, HMSI is moving towards realization of Honda's green factory concept.

We shall endeavor to continually monitor, improve and conserve the environment in which we operate. HMSI is committed to achieve, environmental excellence in all its industrial activities, in the following ways:PRIVATEConserving environment through preventing pollution at its source of generation and strengthening our existing pollution control system.

Promoting conservation of resources such as energy, water, oil and grease and other raw materials, by reusing, recycling and minimizing the waste generation.

Complying with all applicable legal/regulatory requirements and strive to go beyond wherever possible.

Regular monitoring and reviewing of environmental objectives and targets.

Increasing environment awareness and competence amongst our employees and encourage vendors & dealers to adopt EMS.

HMSI will establish its environmental management system following PDCA cycle and continuously work to make it more effective. The policy will be well disseminated to our employees as well as to

public at large.The Three JoysIn line with Honda's Philosophy, HMSI conducts all its daily activities in pursuit of the following joys:The Joy of Buying

The joy of using world class productsThe Joy of Selling

The joy of selling world class productsThe Joy of Manufacturing

The joy of producing high quality products

Honda is the world's largest manufacturer of 2-wheelers. Its symbol, the Wings, represents the company's unwavering dedication in achieving goals that are unique and above all, conforming to international norms. These wings are now in India as Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI), a wholly owned subsidiary of Honda Motor Company Ltd., Japan. These wings are here to initiate a change and make a difference in the Indian 2-wheeler industry. Honda's dream for India is to not only manufacture 2-wheelers of global quality, but also meet and exceed the expectations of Indian customers with outstanding after sales support.

Racing Honda has always played an important role in motor sports, believing it to be the springboard for technological advancement. Honda has made its mark in the 500cc class Motorcycle Racing World Championship and more. PRIVATE "TYPE=PICT;ALT=Honda and Racing"Technology Our fundamental design philosophy seeks to maximize space and comfort for people, while minimizing the space required for mechanical components. With this aim in mind, Honda's R&D activities include product-specific development and research.

PRIVATE "TYPE=PICT;ALT=Honda and Technology"Safety At Honda, we use a three-prong approach, based on preventing accidents, minimizing injury in the unlikely event of an accident and our Driving Safety Promotion operations. Honda's safety philosophy emphasizes the development of appropriate technologies for its products, so as to ultimately achieve maximum riding comfort for its customers. Honda was the first manufacturer in Japan and India to develop and apply the anti-lock brake system for the two wheelers.

PRIVATE "TYPE=PICT;ALT=Honda and Safety"Environment Honda is unrivalled in making a conscious effort to lower the emissions of every one of its vehicles, 2 and 4-wheelers. It is actively pursuing the development of a 4-stroke engine in all 2-wheelers.THEORETICAL BACKGROUNDCUSTOMER SATISFACTION

Customer satisfaction suffices the customer. Customer visualizes, perceives and will have some expectations before making any purchase. If the product meets customers expectations then he is satisfied. Customer will be satisfied when the product meets the basic needs set and therefore utility of a product is nothing but consumers estimation of products over all capacity to satisfy his needs.

Customer satisfaction is a function of perceived performances and expectations.

Dissonance reducing buying behavior

The customer might experience post purchase dissonance by noticing disquieting features of product or by hearing favorable things about other product. If performance of product does not satisfy perceived expectations, the customer is dissatisfied, where he develops dissonance.Post purchase satisfaction

When the customer is satisfied or delighted he will be dazzled. If the product matches the expectations of customer he is satisfied. The customers satisfaction is a function of closeness between the buyers product expectation (E) and products perceived performance (P)

Post purchase actions

There is high probability of purchasing the product if the customer care satisfied. Marketers should take keen interest in handling customers dissatisfaction. Marketers job is to understand buyers behavior and aim at satisfying customers. The satisfied customers will have brand loyalty and strong affinity towards the product, so there is less scope of switching to other brands. Satisfaction can be used as gauge for measuring effectiveness of customer care of the organization. This increases the customer loyalty.

Customers buying decision process

Social factors, personal factors, and psychological factors influence Customers buying decision process. The company should ignore competitions and concentrate on customers one-on-one that will drive competition crazy. This can be most potent competitive weapon. Customer satisfaction should be main objective, goal and marketing tool for a company.Tools for tracking & measuring the attitude of the satisfied customers

The alert companies set up systems to monitor the attitude of customers by monitoring changing levels of customer satisfaction before they affect sales it takes action. The main attitude tracking systems are:1. Complaint & suggestions system

2. Customer panel

3. Customer surveys

4. Ghost shopping

5. Lost customer analysis

COMPLAINT AND SUGGESTIONS

A customer-oriented company records, analysis and responds to complaints and tries to correct problems by new ideas and should welcome complaints and try to correct problems by new ideas and should help customers. Many hotels, restaurants and banks use this feedback method to track and measure customer satisfaction.

Complaint handling strengthens buyer-seller relationship by building trust.

Follow the LIST method to handle complaints:

CUSTOMER PANELS

Companies should run panels of customers who have to communicate periodically. Panels are more representatives of the range of customer attitudes. Panels would reveal kinds of people who responded to promotion.

CUSTOMER SURVEYS

It is conducted to learn how product has affected brand choice behavior, what they thought of it and it is direct measure of satisfied customers.

Companies periodically send questionnaires or make telephonic calls to a random sample to prospective customers to evaluate satisfaction level on 5 point scale (very dissatisfied, dissatisfied, neutral, satisfied, very satisfied) and ask about quality of service and various other aspects. Management compare these ratings and can arrive at customer satisfaction level, measurement of customers repurchase intention or willing ness to recommend the product to others are also judged.

GHOST SHOPPING

Customer oriented companies hire persons to pose as potential buyers to report their findings on strong and weak points they experienced in buying company and competitors product. The ghost shoppers even pose certain problems to test whether the companys sales personal handle the situation well.

RETENTION OF CUSTOMERS

Retaining a single customer is most important than attracting many new customers. Company should reconfigure all planning processes towards customers. Direct all marketing efforts towards meeting customer needs. Create corporate strategy aimed at customer value.

Company can make customers happy by providing reliability, responsiveness, assurance, empathy and tangible materials.

The company should create an emotional bondage between themselves and customers. It is always more costly, pay less attention to competing brands, buys other product that company latter adds to its line. Marketer should be aware of profitable and non-profitable customers.

CUTOMERS WILL BE SATISFIED BY CONTINUOUS IMPROVEMENT PROCESS AND MAINTAINING TOTAL QUALITY Customers are judged of quality. Therefore, highest quality of products should be companies objective maintaining zero defects or 100% quality. Thus improves quality, inurn quality increases cost effectiveness.

Proven method and procedures should be adopted and applied consistently.

Quality derivativeness should be compulsory, satisfying customers requirements.

Companies should have quest for quality and should meet standards.

Quality should be in every stage from planning to production.

Quality should be in hallmark of the company. Company should promise highest standard of product quality, safety, comfort and dependability.

Companies should have quest to find innovative ideas and featured or attributes that will create excitement and desire and they should look beyond what the customer says.

WHAT IS MARKET?

Market consists of all the potential customers sharing a particular need or wants who might be willing and able to engage in exchange to satisfy that need or wantsMARKETING

Marketing is so basic that it cannot be considered as a separate function. It is the whole business seen from points the point of view of its final results, that is from customer point of view business success is not determined by the producer but by the customer

Peter.F.DruckerMarketing consists of all activities by which a company adapts itself to its environment

Ray Corey

WHAT IS MARKETING? Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others..

MARKET SEGMENTATION The task of breaking the total market into segments that share common properties is market segmentation. It is the process of identifying a group of consumers with similar needs and producing a product that will meet those needs at a profit.

Market segmentation will facilitate the firm to identify and find out the additional benefit desired by the people to pay benefits and source where they would like to buy it.

CONSUMER BEHAVIOURThe term consumer behaviour refers to the behaviour that consumers display in searching for purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. The study of consumer behavior is the study of how the individuals make decisions to spend their available resources (time, money, effort) on consumption related items. It includes the study of what they buy, why they buy, when they buy it, where they buy it and how they buy it and how often they use it.WHY WE STUDY CONSUMER BEHAVIOUR?

There are various reasons as to why people study consumer behavior. As consumers, we benefit from insights in our own consumption related decisions: what we buy, why we buy, how we buy and the promotional influences that persuade us to buy. The study of consumer behavior enables us to become better and wiser consumers.

As marketers and future marketers, we are able to understand consumer behavior, then we can predict how consumers are likely to react to the various information, which help us to shape the marketing strategies accordingly to gain a competitive advantage in the market.

Marketers have also observed a change in the psychological behavior of the consumers. There is an increasing awareness among the consumers to the changes taking place around them resulting in an urge to purchase various goods and services. In other words, there is a positive buying motive shown by the consumers. Consumer behavior was a relatively new field of study in the mid to late 1960. This new discipline borrowed heavily from the concept enveloping other scientific disciplines like psychology, sociology, etc. Many early theories were based on the economic theory, on the notion that individual act rationally to maximize their benefits in the purchase of goods and services.The initial thrust to consumer research from a perspective here marketing managers wanted to know the specific causes of consumer behavior. They regarded it as an applied marketing science: if they could predict consumer behavior they could influence. This approach has come to known, as positivism and the people concerned with predicting consumer behavior are known as positivists.

DEFINATIONS OF CONSUMER BEHAVIOUR

According to Walters & Paul Consumer behaviour is the process whereby individuals decide what, when, where, how and from whom to purchase goods and services.

Consumer may be defined as all the individuals and households that buy and acquire goods and services for personal consumption.

Consumers differ in the age, income, taste and preference and educational levels and therefore the marketers should identify the different consumer groups and develop products and services according to the needs of the consumers.CONSUMER BEHAVOIUR MAY BE DEFINED ASThe process whereby the individuals decide whether what, when, how and from whom to purchase goods and services.IMPORTANCE OF CONSUMER BEHAVIOUR

1) Consumer behaviour is dynamic and changes continuously. According to the consumer tastes and preference. Therefore a study of to analyze, monitor and understand the consumer behaviour is very essential.

2) Only by studying consumer behaviour a businessman can solve the problems faced by the consumers.

3) A study of consumer behaviour helps in effective marketing management.

4) Product decision regarding price, promotion and distribution can be taken after studying the consumer behaviour and how they react to the product.

5) In an Indian market where changes take place very often, where the government keeps on changing, it is essential to study the expectations of the consumer based on the changes.

6) Consumer behaviour study helps a marketer in exploiting new opportunities and meeting the challenges and requirements of an Indian consumer.

Consumer behaviour can be said to be the melding of all those bodies of knowledge concerning with human behaviour-behavioral sciences.INDUSTRIAL BACK GROUND OF THE STUDY

Since time immemorial man has been trying to make things which would make life easier. Among these is the transportation for himself and the goods.

The invention of wheel revolutionized the concept of transportation. Initially human beings and animals were used for drawing carts but the zest to faster and deliver large quantities in faster period resulted in constant improvement of wheel driven carts.

In 1985 Gattlib Palmer and Kalt Benz invented the first petrol driven car. This was the beginning of the trend, which revolutionized the concept of personal transport. But with the passage of time the need for a fuel-efficient light weight vehicle was felt.Thus resulted in the invention of Europe, a car on two wheels. The two wheelers came to recognize as a family vehicle and have retained this character of date. Not only it is recognized to be useful mode of transportation for a family it is also safe.

GROWTH OF THE INDUSTRY

In India two wheelers have demonstrated the ever since they come to know been used in the country. So the manufacturers are all set to woo the customers with the styles that surprise. Efficiency above expectations. Durability and services more reliable and pricing.

Since the 1980s the market for personalized transport experienced a strident growth in the country.

From January 1994 the market especially for two wheelers has so grown to meet the demand of the customers of India. The production capacity has been consistently increased.

Largely speaking three major categories of two wheeler started coming, the Scooters, the Motorcycles and Mopeds. The recent trend is for the scooterette.

INDUSTRIAL BACKGROUND

Indian automobile industry is full of big names such as Maruti, Kawasaki, Tata, TVS, Suzuki, Yamaha, Honda, and many others have swept away the automobile market with high quality 2 and 4 wheelers. When we shift our attention to manufacturers of bikes in India such as Hero, Honda, Yamaha, TVS-Suzuki, Bullet and many others occupy pre-dominant positions in our eyes. These have been gained big status to their entity with liberalization opening gates of conservative Indian economy, many multinational companies are collaborating with Indian companies to market share for their vehicles at international level.Chapter 2: swot anlaysis

STRENGTHAchievement: Retained the coveted position of World No 1 two-wheeler company for the seventh consecutive year.High Sales Growth: Honda experienced great growth throughout its early days. Today Honda has an assembly line of nine different models of motorcycles available. Honda Activa is best selling product in India.Fuel economy: Over all fuel consumption by its products is less in compare to other brands product. They have so far been able to give better mileage output. Because of this Honda Activa has magical sales record.

Quality policy: Total quality management is the chore philosophy of the company and it is thus always focussed on product innovation and performance.Service schedule: Honda offers free services on all its two-wheelers. Customer should avail all these service within the stipulated time period or km range, whichever condition gets satisfied earlier from the date of purchase. After the completion of free services or its validity period one must continue availing paid services as per the recommended service scheduleWeakness

a) Less promotion: The promotions and ads of Honda are very less as compared to its competitors.

High maintenance: Some of the products of Honda require high maintenance.

Lack of recycling scrap: It expected that by 2020 scrap generated by end of life vehicles in India would be about 2.5 million tonnes and 40% of it will come from two wheeler. But honda is not capable enough to recycle the scrap generated and may impose environmental threat. TVS Company has this facility and is future threat to this company as it can affect the future sales as well.

Opportunities:

a) High GDP & increasing income level of consumer:

Supported by strong demand impulses, especially in the manufacturing and service sector, Indias gross domestic product grew at 8.9 per cent. This is the fourth successive year in which the countrys growth has exceeded 8 per cent growth, and India is now in a select club of 12 countries with a trillion dollar plus economy.

As a nation, India has prospered. People living in households with incomes ranging from 2 lakh 10 lakh a year has grown from 15 million in 1991 to 100 million in 2005-06. Not surprisingly, therefore, between 1991 and now, the two wheeler market has grown more than four times.

Urban India is growing at a rapid pace. NCAER data for top 24 cities in India shows migration to higher income levels growing at over 40 per cent per annum. Prosperity in rural India is also a significant phenomenon, with 43 per cent of households in middle and the high income groups coming from rural India.

More incomes per person, more persons will lead to a quadrupling of Indias consumer markets in the next two decades, a 2007 study by McKinsey Global institute has projected. And this will provide Company the ballast to sustain and consolidate its leadership position.

Good will of the company: If the company utilizes the good will they have gained so far from their customers, they can increase the sales performance by economizing the cost and few technical renovation of the product. With new launch they can be benefited at present market scenario Honda Activa has huge attraction towards the younger generation because of its style, sporty look, and high accelerating power and is stable at its feet even at high speeds.

Threats:

Finance assistance: Easy availability of finance is the main cause of sales growth and any restriction will hamper its growth prospects.

Inflation: If inflation increases cost of raw material used in production will go high and selling price may go high that may decrease demand of the two wheeler.

Technical renovation aspect: If they dont short out in the new launches and give something extra in its engineering performance it may affect in demand of this company product.11. at are the sources the create awareness?

News papers ( Television ( Magazines ( Show-room display ( Exhibition ( Postal catalogue (

12. Occupation of the respondents Student

Service

Business

Professional

13. Ratings for comfort

Excellent

Good

Average

Poor

14. Ratings for road grip

Excellent

Good

Average

Poor15.ratings for engine performance Excellent

Good

Average

Poor

BIBLIOGRAPHY

Rajan Saxena (2009), Marketing Management, Prentice Hall of India

Anand M., Ramanathan S.K. and Viswanath R., The New Laws of Attraction, Business World, January 2011

Grewal D. and Levy M. (2007), Marketing, Prentice Hall of India

Web Sites:

http://www.articlesbase.com/motorcycles-articles/honda-activa-price-in-india-3911468.htmlhttp://a2zbikesinindia.blogspot.com/2011/08/are-you-looking-for-buy-new-honda-bikes.htmlwww.honda2wheelersindia.comwww.activa.comwww.hondabick.comwww.thehindubusinessline.com

BUYER

SOCIAL

Culture

Sub cultural

Cross-cultural

Social class

Reference groups

Family

PERSONAL

Age

Life style

Occupation

Economic

Position

PSYCHOLGICAL

Motivation

Perception

Learning

Personality

Attitude

T-AKE FEEDBACK FROM CUSTOMERS TO MAKE SURE HE IS SATISFIED

S-OLVE PROBLEM FROM KEEPING CUSTOMER INFORMED

I-SOLATE CORE PROBLEM THROUGH QUESTIONS

L-ISTEN TO COMPLAINNING CUSTOMERS

ANALYSE AND INTERPRET INFORMATION

MEASURE CUSTOMER OPINION

TAKE ACTION

PLAN CORRECTIVE MEASURE MEASURES

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