Honda Final Project Presentation
Content
Group Nine Sec- A Dr. Daman Walia ( 13/09) Koustubha Bhutra ( 25/09) Ashank Mathur ( 29/09) Abhinaw Shrivastava ( 67/09) Harsh Khemka (117/09) Sunanda Mitra (149/09)
To analyze the reasons for the success of Honda City
To analyze the strengths and weaknesses of Honda City To make commercials for Honda City based on its strengths
1. 2. 3. 4. 5. 6. 7. 8. 9.
Industry Overview Changing Trends in the Industry Macro Influences on the Industry Drivers of Growth Market Analysis Company Analysis- HONDA Market Research Methodology Macro and Micro Influences SWOT Analysis and Commercials
`
Sales:
2008: 10.82 million units 2008: 100 billion dollars as Revenue
% age Growth
25 20 15 10 5 0
% age Growth
Source: SIAM
Sales
3 %
% North South East West
11%
3 %
Geographical Distribution of Sales of Automobiles in India
Source: AUTOCAR INDIA
1.
2.
3.
4.
5.
The Government i. Role-reversal: From Controller to Enabler. ii. Implementation of growth oriented economic policies. Competition i. Entry of International Players ii. Huge Investment on R & D iii. More JVs and collaborations Customer i. Higher buying power ii. Increasing expectations from products & services iii. Fierce competition makes customer the KING Pollution Norms i. Companies going Green ii. Awareness on the rise Safety Norms
Total
10 9 8 7 6 5 Total 4 3 2 1 0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Source: SIAM 2008
Total
300
250
200
150 Total
100
50
0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Source: SIAM 2008
Total
0.35
0.3
0.25
0.2 Total 0.15
0.1
0.05
0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Source: SIAM 2008
ro th of mi le l ss from million to . million Export of Automo iles n Auto Components.
Infr stru ture Development: illion oll rs in the next -6 e rs. Lo Penetr tion R te of Vehi les: Approxim tel . 8/1 A ess to C pit l t re son le interest r te.
Lo Cost of Pro u tion.
Long Term Drivers
Short Term Drivers
Sales
8% 47% 13% 16% Maruti Suzuki Hyundai Tata Motors GM, Ford Honda Others
8% 8%
Main Players in Passenger Cars Segment:
`
Main Players/ Competitors:
Maruti Suzuki: 51.4% Hyundai Motors: 17.97% Tata Motors: 13.88%
`
Other Players/ Competitors:
General Motors: 3.76% Ford India: 2.57% Mahindra Renault: 2.15%
Source: SIAM 2008
HONDA
` `
` ` ` `
Honda started in 1930¶s Established as a company on 24th September, 1948 Headquarters: Tokyo, Japan Founder: Soichiro Honda CEO India: Masahiro Takedagawa 1981: First Honda City
` `
` `
Incorporated in India in December, 1995 Joint Venture- Honda Motor Co. Ltd. & Japan and Siel Ltd. Honda City introduced in India in 1997 Other passenger cars include Civic, Accord, Jazz and CRV
`
`
We see ³The Power of Dreams´ as a way of thinking that guides us and pushes us forward. The strength of our company comes from this philosophy- which is based on the visionary principles of our founder, Soichiro Honda. We see the world not as it is, but as it could be. We see the world through the eyes of the dreamers, because we are a company founded by a dreamer. And we are a company built on dreams.
`
Accord and CRV: Elite Class Civic, City and Jazz: Upper Middle Class Honda has always targeted the elite and the upper middle class groups.
`
`
`
` ` ` `
`
Two surveys- Honda Dealers and Customers of Honda City Two Stages- Pre-purchase and Post-purchase Interviews of dealers of Honda Questionnaires filled by customers of Honda City Inferences drawn from surveys- Identify the strengths, weaknesses, opportunities and threats for Honda Commercials for Honda City to highlight it¶s USP
Questionnaire
Parameters Brand Value Popularity Experts Opinion Test Drive Price Comfort Mileage Looks Maintenance Resale
Average Rating 4.13 3.47 3.77 3.57 3.47 4.17 3.43 3.13 3.67 2.9
Maximum rating (Freq) 4 3 4 4 3 5 3 4 4 4
Parameters Brand value Driving Experience: 4.33, 4 Price: 3.67, 3 Comfort:4.2, 4 Mileage: 3.57, 4 Design: 3. , 4 After Sales:3.7, 4 Driving Experience: 4.33, 4 Interiors Legroom alue For Money
Average Rating 4.4 4.33 3.67 4.2 3.57 3. 3.7 4.33 4.1 3.87 4.07
Maximum rating (Freq) 5 4 3 4 4 4 4 4 4 4 4
Communi
tion
losion
Emph sis on Rese rch nd Development Aw reness bout S fety nd Pollution Stre mlining Production Micro Influences
Urb niz tion of Mind Incre se in Consumerism Incre se in Urb niz tion
Macro Influences
Billboards Advertisements and Commercials Sponsoring Sports Events Social Marketing BCG Matrix: Star
Fuel/Cost Efficient Technology Brand Value Unique Style and Design Co fort Driving Experience Price Maintenance
Delivery Time of 4-7 Days
Insufficient Roadside Assistance
Weak Customer Helpline Before Purchase Response Better Than After Purchase Response
I
r
i r
ir tR
t l ul ti
r
Stri t r G I
r i
ti
M rk t
i Lib r liz ti
Reduced availability of finance i Intere t Rate
Ri in Commodity Price Slow Growt in Service Sector Dollar Fluctuation
` ` `
Advertisement 1: Advertisement 2: Advertisement 3:
THANK YOU
To analyze the reasons for the success of Honda City
To analyze the strengths and weaknesses of Honda City To make commercials for Honda City based on its strengths
1. 2. 3. 4. 5. 6. 7. 8. 9.
Industry Overview Changing Trends in the Industry Macro Influences on the Industry Drivers of Growth Market Analysis Company Analysis- HONDA Market Research Methodology Macro and Micro Influences SWOT Analysis and Commercials
`
Sales:
2008: 10.82 million units 2008: 100 billion dollars as Revenue
% age Growth
25 20 15 10 5 0
% age Growth
Source: SIAM
Sales
3 %
% North South East West
11%
3 %
Geographical Distribution of Sales of Automobiles in India
Source: AUTOCAR INDIA
1.
2.
3.
4.
5.
The Government i. Role-reversal: From Controller to Enabler. ii. Implementation of growth oriented economic policies. Competition i. Entry of International Players ii. Huge Investment on R & D iii. More JVs and collaborations Customer i. Higher buying power ii. Increasing expectations from products & services iii. Fierce competition makes customer the KING Pollution Norms i. Companies going Green ii. Awareness on the rise Safety Norms
Total
10 9 8 7 6 5 Total 4 3 2 1 0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Source: SIAM 2008
Total
300
250
200
150 Total
100
50
0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Source: SIAM 2008
Total
0.35
0.3
0.25
0.2 Total 0.15
0.1
0.05
0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Source: SIAM 2008
ro th of mi le l ss from million to . million Export of Automo iles n Auto Components.
Infr stru ture Development: illion oll rs in the next -6 e rs. Lo Penetr tion R te of Vehi les: Approxim tel . 8/1 A ess to C pit l t re son le interest r te.
Lo Cost of Pro u tion.
Long Term Drivers
Short Term Drivers
Sales
8% 47% 13% 16% Maruti Suzuki Hyundai Tata Motors GM, Ford Honda Others
8% 8%
Main Players in Passenger Cars Segment:
`
Main Players/ Competitors:
Maruti Suzuki: 51.4% Hyundai Motors: 17.97% Tata Motors: 13.88%
`
Other Players/ Competitors:
General Motors: 3.76% Ford India: 2.57% Mahindra Renault: 2.15%
Source: SIAM 2008
HONDA
` `
` ` ` `
Honda started in 1930¶s Established as a company on 24th September, 1948 Headquarters: Tokyo, Japan Founder: Soichiro Honda CEO India: Masahiro Takedagawa 1981: First Honda City
` `
` `
Incorporated in India in December, 1995 Joint Venture- Honda Motor Co. Ltd. & Japan and Siel Ltd. Honda City introduced in India in 1997 Other passenger cars include Civic, Accord, Jazz and CRV
`
`
We see ³The Power of Dreams´ as a way of thinking that guides us and pushes us forward. The strength of our company comes from this philosophy- which is based on the visionary principles of our founder, Soichiro Honda. We see the world not as it is, but as it could be. We see the world through the eyes of the dreamers, because we are a company founded by a dreamer. And we are a company built on dreams.
`
Accord and CRV: Elite Class Civic, City and Jazz: Upper Middle Class Honda has always targeted the elite and the upper middle class groups.
`
`
`
` ` ` `
`
Two surveys- Honda Dealers and Customers of Honda City Two Stages- Pre-purchase and Post-purchase Interviews of dealers of Honda Questionnaires filled by customers of Honda City Inferences drawn from surveys- Identify the strengths, weaknesses, opportunities and threats for Honda Commercials for Honda City to highlight it¶s USP
Questionnaire
Parameters Brand Value Popularity Experts Opinion Test Drive Price Comfort Mileage Looks Maintenance Resale
Average Rating 4.13 3.47 3.77 3.57 3.47 4.17 3.43 3.13 3.67 2.9
Maximum rating (Freq) 4 3 4 4 3 5 3 4 4 4
Parameters Brand value Driving Experience: 4.33, 4 Price: 3.67, 3 Comfort:4.2, 4 Mileage: 3.57, 4 Design: 3. , 4 After Sales:3.7, 4 Driving Experience: 4.33, 4 Interiors Legroom alue For Money
Average Rating 4.4 4.33 3.67 4.2 3.57 3. 3.7 4.33 4.1 3.87 4.07
Maximum rating (Freq) 5 4 3 4 4 4 4 4 4 4 4
Communi
tion
losion
Emph sis on Rese rch nd Development Aw reness bout S fety nd Pollution Stre mlining Production Micro Influences
Urb niz tion of Mind Incre se in Consumerism Incre se in Urb niz tion
Macro Influences
Billboards Advertisements and Commercials Sponsoring Sports Events Social Marketing BCG Matrix: Star
Fuel/Cost Efficient Technology Brand Value Unique Style and Design Co fort Driving Experience Price Maintenance
Delivery Time of 4-7 Days
Insufficient Roadside Assistance
Weak Customer Helpline Before Purchase Response Better Than After Purchase Response
I
r
i r
ir tR
t l ul ti
r
Stri t r G I
r i
ti
M rk t
i Lib r liz ti
Reduced availability of finance i Intere t Rate
Ri in Commodity Price Slow Growt in Service Sector Dollar Fluctuation
` ` `
Advertisement 1: Advertisement 2: Advertisement 3:
THANK YOU
