PRESENTED BY : AMIT KUMAR

MBA 2nd SEM

DEPT. OF BUSINESS ADMINSTRATION
UNIVERSITY OF LUCKNOW
(LUMBA)

Product : Honda CIVIC

Company : HSCI

8/9/09
 HOW IT STARTED……..?

•SoichiroHonda (1906-1992) was Japanese engineer and industrialist,

and founder of Honda Co.,Ltd.

•In 1937, Honda began producing piston rings-used in motorcycles.

•In 1948, Honda started producing complete motorcycles.

•In 1949, Takeo Fujisawa joined the Honda ( one of the most person
lead to Honda’s success )

•In 1968, Launching the Honda 1300-Honda’s first small car.

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 Contd…..
v 4 Main segment following….
• Motorcycle Business
• Automobile Business
• Financial Services Business
• Power Product and other Business
v Stand the largest motorcycle manufacturer
And the 7th Automobile manufacturer in
The world.
v On the March 2008 Honda was ranked as the
best Car in US by consumer reports
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 HONDA SIEL CARS INDIA LTD.
• Honda Siel Cars India Ltd., (HSCI) was incorporated in December 1995 as a
joint venture between Honda Motor Co. Ltd., Japan and Siel Limited, a
Siddharth Shriram Group company

• The Honda City, its first offering introduced in 1997

• HSCI’s state-of-the-art manufacturing unit was set up in 1997 at Greater

Noida, U.P with an investment of Rs 450 crore. The green-field project is
spread across 150 acres of land (over 6,00,000 sq. m.).

• Company standard presently are ISO 9001 for quality management and
ISO 14001 for environment management.
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 KEY PRODUCTS
• Honda City

• Honda Civic

• Honda Civic Hybrid

• Honda Accord
8/9/09
 ABOUT PRODUCT : HONDA CIVIC
• The Honda Civic is a line of subcompact/compact cars
manufactured by Honda. It was introduced in July 1972
as a two-door coupe, followed by a three-door hatchback
that September. The Civic is Honda’s largest selling model
globally and is now sold in approximately 160 nations
and regions worldwide. Having gone through several
generational changes, the Civic has become larger and
more upmarket, and it currently slots between the Fit
and Accord.
• In India HSCI launched 1.8 V Civic in July 2006

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• First Generation (1973-1979)
• Second Generation (1980-1983)
• Third Generation (1984-1986)
• Fourth Generation (1987-1993)
• Fifth Generation (1992-1995)
• Sixth Generation (1996-2000)
• Seventh Generation (2001-2005)
• Eight Generation
(2006-present)

8/9/09
 HONDA CIVIC IN INDIA
• HSCI launched the 1.8V Civic in India in July 2006 which
became a runaway success. The company has also
launched the 1.8V version of the Civic in June 2007. 2007
‘Indian Car of the Year’.

• The launch of the Civic Hybrid in June 2008 is the

fulfillment of yet another commitment HSCI made to its
customers - of bringing in latest technologies and models
from Honda's global line-up.

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8/9/09
 TARGET MARKET
On the basis of Demography
• AGE : Young , Middle , Elderly
• GENDER: Male and Female
• PROFESSION: Businessmen, Industrialists, Bureaucrats, Politicians,
• Doctors, any successful professional
• INCOME: Upper-middle income group, Upper income group

On the basis of Psychographic

• LIFESTYLE: Exciting, Trendy
• SOCIAL CLASS: Upper-middle , Upper class
• ATTITUDES & BELIEFS: Environmentalists, Security conscious,

Class-sensitive

And ultimately whosoever has got the money, passion, and eyes which appreciate
the real beauty......
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 MARKET SHARE
• Honda Civic comes in Lower D Segment or A 4 Executive
cars. Along with Civic other cars of same segment are
Toyota Corolla Altis, Skoda Octavia, Skoda Laura and
Volkswagen Jetta.

• According to 2007-08 sales figure Civic leads the

segment by 46% market share, then comes the Skoda
Octavia having 33% market share. Toyota Corolla Altis
have a Market share of 19% and rest 2% is held by
others.
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Civic outweigh its class on Power (132 PS @6300 rpm) ,
Best Mileage (10.6 km/lit) and best Weight-Power
Ratio.
MARKET SHARE

HONDA CIVIC 46%

SKODA OCTAVIA 33%

TOYOTA COROLLA 19%

OTHERS 2%

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 4 Ps
PRODUCT : PRODUCT VARIANT
• There are 4 variants to Honda Civic
• 1.8 E MT
• 1.8 V AT
• 1.8V MT
• CIVIC SPORT
Thus Product Depth comes to be = 4
For HSCI
Product Width = 6
Product Length = 22

8/9/09
 COLOURS AVAILABLE
COLOURS :

Honda Civic 1.8 V AT (Automatic Transmission) and 1.8 V MT is available in 7 colours

• Night Hawk Black

• Carbon Bronze Pearl

• Bluish Silver

• Misty Voilet

• Habanero Red

• Alabaster Silver

• Taffeta White

Honda Civic E MT ( Base model) is available only in 4 colours:

• Carbon Bronze Pearl

• Crystal Black

• Albaster Silver

• Taffeta White

Honda Civic Sport is available only in Taffeta White and Civic Hybrid in Premium Pearl White.
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 PRICE : PRICELIST
On-Road price-list for Lucknow is
MODEL EX-SHOW RTO INSURANCE ON ROAD PRICE
ROOM PRICE

1.8 E MT 10,03,900 33,098 38,703 10,75,701

1.8 V AT 12,61,000 39,525 47,868 13,48,393

1.8 V MT 11,93,000 37,825 45,444 12,76,269

Sport 12,12,862 38,322 46,152 12,97,336

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 CREDIT TERMS
• EMI FACILITY:
One can avail the Honda’s credit facility , which gives credit at 13% interest
rate for a period ranging from 12 to 60 months.

• CORPORATE SALES:
Honda also gives certain benefits to select organiation and customers. Their
corporate sales cover the following areas:
1. Sales to Corporate Houses
2. Canteen Store Department for Indian Defence Forces
3. Government Departments
4. Special Excise Duty Exemption Sales
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• AUTO-TERRACE:

• Under Auto-Terrace Honda provides its

customer with exchange facility. Its like an Up-
gradation facility , a customer can exchange
his old Honda for new one and get
compensated as per the situation of the car.

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 PLACE
• SALES AND DISTRIBUTION NETWORK
• Honda Siel Cars India has a strong sales and
distribution network spread across the
country. The network includes 100 facilities in
59 cities. HSCI dealerships are based on the
“3S Facility” (Sales, Service, Spares) format,
offering complete range of services to its
customers.

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 PROMOTION
DIRECT TOOLS
• ADVERTISING:
• Through TV Commercials, Print Media (Mainline Newspaper, Magazines-
auto and lifestyle, general), Placing Hoardings and On-line Advertisement.
• By giving Sponsored Links on popular social networking websites and
through banners etc
INDIRECT TOOLS
• SPONSORSHIPS:
• Through sponsorship of various environmental and Sport events(like
recently held cricket series against England , Man of the Series : Ishant
Sharma got it)
• WORDS OF MOUTH:
• Honda’s cars particularly CIVIC are very much appreciated for their superb
performance and stylish aerodynamic looks among general public. Among
8/9/09
 APPLYING HOLISTIC CONCEPT TO
HONDA CIVIC
CUSTOMER FOCUS CORE COLLABORATIVE
COMPETENCY NETWORK

VALUE Gap between C and Technical expertise Joint venture with Hero
Luxury segment through racing group provided with
EXPLORATION
experience consumer behaviour
knowledge

VALUE CREATION A balance of style , Through Indigenising Collaboration with Siel

aerodynamics, power more of the processes to Ltd. A Siddhartha Shriram
and mileage cut cost Group Company

VALUE DELIEVERY HONDA CIVIC Expansion of plant Expansion plans of plant

capacity by doubling the and dealership network.
shift (55,000 to 90,000)
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 PRODUCT HIERARCHY
• NEED FAMILY : Transport
• PRODUCT FAMILY : Automobile
• PRODUCT CLASS : Passenger Vehicle
• PRODUCT LINE : Cars
• PRODUCT TYPE : Sedan
• PRODUCT : Honda Civic

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 BOSTON CONSULTING GROUPS
GROWTH SHARE MATRIX
MODELS YEAR-2006 YEAR-2007 MARKET SHARE MARKET
(06) GROWTH (07)

ACCORD 3000 3000 5.45% 5%

CITY 41,000 38,000 74.54% 63.33%

CIVIC 10,000 17,000 18.18% 28.33%

CR-V 1000 2000 1.82% 3.33%

TOTAL 55,000 60,000 100% 100%

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 70% Y-Values

-7.30%, 63%
60%

50%

40%

30%
70%, 28%

20%

10%
0%, 5%
50%, 3%
0%
-20%
8/9/09-10% 0% 10% 20% 30% 40% 50% 60% 70% 80%
 SWOT ANALYSIS
INTERNAL
• STRENGTHS
1. Technical Know-how through racing experience and varied market
exposure
2. Reliable
3. Performance oriented
4. Has a history of its own
•. WEAKNESS
1. Weaker Brand image , less aggressive marketing
2. No Brand endorsements
3. Declining operating margins
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 EXTERNAL
• OPPORTUNITIES
1. Can capitalize on existing brand
2. Interest in environment friendly vehicles
3. Cost reduction through R & D
4. Increasing purchasing power of Indian middle class.
5.

•. THREATS
1. Rising oil and raw material prices World over
2. Maruti , Hyundai and other players are planning to enter D-segment so
competition is going to be tough.
3. Existing all new Honda City

8/9/09