PRODUCT Honda Siel Cars India Limited (HSCI) is a joint venture between the Honda Motor Company of Japan

and Siel Limited, a Siddharth Shriram Groupcompany. It currently is the 7th largest car maker in India after Maruti Suzuki, Hyundai, Tata, Mahindra, Chevrolet and Ford. It was begun in December 1995. The venture was begun with the aim of delivering Honda's passenger car models and technologies to the Indian market. The total investment made by the company in India till date is over Rs. 800 crores.[1] The capacity was enhanced to 1,00,000 units annually in February 2008 . The capacity expansion was necessitated by the excellent performance of all the Honda models, particularly the growing demand for City in India. Several modifications were done by the company with the objective of offering higher quality products to its customers, faster and quicker. The expansion process also included expansion of the covered area in the plant, from 1,07,000 m. to 1,31,794 m. HSCI currently produces the newly launched Honda Jazz, City, Civic and Accord models in India and the premium SUV, CR-V is sold as a fully imported unit from Japan.The company operates under the stringent standards of ISO 9001 for quality management and ISO 14001 for environment management. Hondas Operational practices show a great example of the innovations the Japanese automobile manufacturers perform.

Add from presentation USP Honda Cars are a premium brand. it provides versatility, style and sporty drive etc in its vehicles. Honda highlights new-age body line, quiet-smoother handling, cutting edge i-VTEC engine technology, plush interiors and high-end security system. Thus Honda brand name also adds as a usp to its products, cz brand name adds the factor of trust its customers have in Honda cars.

SEGMENTATION In business-to-business markets the aim of segmentation is similarly to arrive at clusters of like-minded companies. There is a very strong pressure to use segmentation in business-to-business markets to win a competitive advantage as there is often little to

differentiate one product from another. Segmentation therefore links strongly with a strategy to achieve a sustainable differentiated position.

n Type of industry : n Organizational characteristics: autonomic n Type of product & volume Their marketing strategies are therefore directed n Quality and Continuous Improvement n Employee Driven Kaizen n Quality Circles n Domestic Trouble Reports (DTRs) n MRP II and Web-based Ordering for Supplier Base as a whole n Extent of Efficiency in Supply Chain n Honda Trading Soybean Example n New Honda Ridgeline Composite Bed/Box n Financial Size:

towards developing

these high model volumes, hence the careful attention that we have observed them giving to growth and market share

Geographic location : HSCI's manufacturing unit was set up in 1997 at Greater Noida, Uttar Pradesh with an investment of Rs. 450 crore. The green-field project is spread across 150 acres (0.61 km2) of land (over 6,00,000 sq. m.). n
n

Purchase behavior/usage: Suppliers are involved with development and design of new products Relationship is much like a partnership Requires an in-depth supplier selection process

Classification Segment Honda

Small

Premium Small

Mid Size Premium Mid Size Executive Luxury SUV JAZZ CITY ACCORD CRV

Models
[edit]Manufactured

Locally

1. Honda City (Launched 1996) 2. Honda Accord (Launched 2001) 3. Honda Civic (Launched 2006) 4. Honda Jazz (Launched 2009) [edit]Imported

3rd Generation Honda CR-V

1. Honda CR-V (Launched 2003) [edit]Discontinued None [edit]Sales

and Service Network

[3]

Honda Siel Cars India has 120 dealerships across 71 cities in 19 states and 3 Union Territories of India. HSCI dealerships are based on the 3S Facility (Sales, Service, Spares) format . It plans to increase the number of dealerships to 160 by 2014 .
[4]

[edit]Sales

performance

Honda Siel Cars India (HSCI) Ltd., leading manufacturer of premium cars in India, sold 55,884 units during the period April '09 - February '10 as against 45,052 units during the same period last year recording an increase of 24%.

SUPPLY CHAIN PROCESS Honda uses their economies of scale by working with their parts suppliers to order raw materials in large quantities.

Structural Characteristics Also known as executional drivers that reduce operating costs and increase productivity Economy of Scale All purchasing done by Honda Trading America Corp. Technology Multipurpose machinery Capacity Utilization Honda operates facilities in every major market they enter

Market Characteristics IT advancements

3rdwave distribution software by Blinco Systems Assures parts quality, controls availability, guarantees delivery, provides consistent materials pricing

External factors Increasing oil prices effect transportation costs for all markets

Sc characteristics The key element for Honda is the flow of information with their suppliers 12 steps: Initial contact, preparation/investigation of Honda parts, quotations, initial plant visit, prototype development, testing and evaluation, mass production quotation, preparation for mass production, trial run, Quality Assurance Visit, agreement, purchase order Co specific Strategic sourcing maximizing the value added through your external suppliers Will chose highest supplier in overall service (not just lowest price) In-house guest engineers

Target pricing QCDDM Customer Satisfaction is top priority Accomplished through suppliers competitiveness in quality, cost, delivery, development, and management (Q.C.D.D.M.) Quality Most important factor Must be built into production process Price table for parts If price cannot be met, Honda will work with supplier to get costs down

Cost Suppliers are given target costs

Cost reductions through own ideas, technology, improved productivity, along with joint efforts with Honda in value engineering, and value analysis

Delivery Suppliers must use just-in-time production system

Development Uniqueness in design and specifications Helps create identity for Honda

Management Positive attitude Measured by Q.C.D.D

Feedback Grade cards for suppliers

Conclusion Demand for Suppliers is Derived High Customer Service Levels

 Very Important for Foreign Suppliers A Lot of Statistical Information Overall Unit Movement Supplier Specific Unit Movements

Comparison With Domestic Automakers More of a collaborative relationship High levels of information sharing Better information

Lower inventory levels The financial health of Suppliers is extremely important Sharing of Financial prosperity & follies

Personal selling Buying behavior Supplying behavior Communication methods: Reverse auction CRM PROCESS: CRM at HONDA MOTORS

Faced with increasing competition from abroad, a cyclical business environment, and the challenge of a widely dispersed dealer network, Honda Motors, a comprehensive customer relationship management (CRM) solution designed specifically for companies in the automotive industry. Seamlessly integrated with Honda Motors dealer management system and SAP back-office applications, has delivered significant benefits across the extended organization, including improved customer satisfaction, increased revenue and productivity, and reduced costs. To address its competitive challenges, Honda Motors began standardizing its customer-facing business processes companywide, Laying the foundation for stronger dealer relationships, Improved operational efficiency and effectiveness, A better customer experience. 31

This has posed numerous challenges, as it involves working with 250 dealer organizations and more than 1,600 locations staffed by more than 10,000 salespeople across India. In conjunction with its reengineering effort, Honda has deployed a robust technology platform to improve the flow of information across the enterprise. The platform consists of an innovative Dealer Management System, which helps individual dealerships with everything from inventory management and credit reporting to calculating commissions, and Honda Motors, a comprehensive Customer Relationship Management (CRM) solution designed specifically for companies in the automotive industry. By tightly integrating with its dealer management system, Honda has streamlined transactions and ensured that dealers capture customer data as a part of their normal operations. The solution provides a 360-degree view of customers to the extended organization, with appropriate visibility controls to ensure that one dealer is not privy to information from another. To further enlist dealer support, Honda Motors involved dealers throughout the solution, configuration and deployment process. Integrating with their dealer management system ensured that dealers would immediately see the value in the solution. This has helped the company overcome the usual resistance to change and gain rapid acceptance from dealers.

Implementation of CRM Honda Motors has taken a phased approach to the implementation, with the goal of achieving success in each phase before moving forward. Phase 1: Focus on capturing customer and vehicle data and automating routine tasks. Phase 2: Focus on leveraging data to improve customer interactions and streamline product development and planning. Phase 3: Focus on tuning the system and delivering additional value-added services to customers. Siebel Automotive has been closely integrated with a wide array of SAP back office applications. Functionalities of the Solution Inventory management and parts location
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Pricing and tax calculations adjusted for each dealers requirements. Comprehensive sales and reporting functionality built into Siebel Automotive enables Honda to distribute sales targets to its dealers & roll up sales numbers across the country. real-time data flow between the Siebel front end and SAP back end Provides multi organization support Can be deployed easily over the Internet Provides robust partner management capabilities ELEMENTS OF CRM CRM Vision Honda Motors has more than 15,000 Honda Motors dealer personnel in over 1,000 dealer

locations. Its endeavor is to get closer to its customers by obtaining a 360degree view of the customer and design better offerings based on customer demands and feedback. The objectives of the CRM program are: Improve its management effectiveness To meet increasing competition from global players Overcome the difficulties of a widely dispersed dealer network of the way to apologize for the error. Simultaneously they provide technician who visit their home place in order to attend the issues and rectify them to satisfaction level. Follow up calls are made to ensure that how efficiently their problems were resolved. Customer Valued Experience The automotive industry is highly competitive world over. The customer in this industry is pampered by various kinds of vehicular designs and value propositions like mileage, comfort, style, brand name etc. Apart from the mentioned attributes of the product, what customers would value is the after sales service. i.e., how the company listens to them after sale of the vehicle. In short, customers want their vehicle to be taken care of by the company post sale.
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Customer segmentation for Honda Motors The automobile industry is divided into two main segments- the commercial and utility vehicle segment and the passenger car segment. Honda Motors is the only Indian automobile company which has a large presence in both the commercial vehicle and the passenger car segment. Commercial vehicles In the commercial vehicle space Honda Motors is the market leader with a market share of 60%. It ranks amongst the top 2 global automakers in terms of the global sales of commercial vehicles. This shows the importance of this customer segment in the overall scheme for HONDA motors In the commercial vehicles segment the company has done a need based segmentation of the customers. The customers are segmented based on tonnage of vehicles required as well as the specific use of the vehicles. The company serves the customers with medium and heavy vehicles, light vehicles, small vehicles and busses. Honda Motors also supplies specially designed vehicles to the armed forces. On basis of specific use the company segments the customers based on types of vehicles like rigid trucks, tractor trailers and tippers. . Passenger Vehicles Honda motors is also a very important player in the passenger vehicle

segment of the automobile sector. The company entered the passenger vehicle segment in late 1990s and enjoys around 16 % share in this segment. In the passenger vehicle segment the main customer segmentation is based on the price of the cars. Indian customers are highly discerning, educated and well informed. They are price sensitive and put a lot of emphasis on value for money. Vehicles priced between Rs. 12,00,000 18,00,000 form the largest segment in the passenger car market. The data about the sales of the cars in various segments is shown in the adjoining graph. Honda motors also segments the customers based on the type of vehicles they buy. Even in the passenger car segment there are some big customers. Honda is very popular among elite section because of its good fuel efficiency and performance blend. The SUVs from Honda are also very
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popular with call centres to ferry their employees as they are very spacious and comfortable. HONDA MOTORS HR and Organization for CRM Executive Selection Scheme (ESS) Honda Motors has always strived towards excellence both in its efforts towards total integration as well as in recognising its talented employees. The Company is constantly creating prestigious programmes to reward and retain its outstanding employees. The Executive Selection Scheme is one such programme, which is highly sought after by Honda Motors employees. It is a matter of pride and prestige to be a part of the ESS selection process and emerge a winner. ESS is a fast track programme for accelerated growth of high potential professionals. This facilitates their early advancement to challenging and visible assignments through a very systematic procedure. The selection involves a 3 stage process: * Written Test * Power Interview * Assessment Centre Short-listed candidates are required to go through an interview with the executive directors. Candidates selected gain a huge lead in terms of promotion and learning. They are promoted to Manager's level thereby saving almost 10 to 13 years of work time. The successful candidates are relieved from their current jobs and put on various project based training programmes under the guidance of senior managers in the Company. If the candidates do not possess management education, they undergo a 4 months MEP at IIM, Ahmedabad. After successful completion of training the candidates are mandatorily rotated across

departments to acquire general management skills. The ESS is a jewel in Honda Motors overall profile as it provides a platform for every employee of the Company to perform and achieve maximum potential.
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Implementation of IT and Technological Solutions at HONDA MOTORS The highly respected Honda Motors Ltd. has a strong tradition of entrepreneurship. The companys business strategy calls for reaching beyond the borders of India to enter new markets for its Accord, the innovative luxury sedan for the upper class. One of the major drivers of success at Honda Motors Ltd. is its ability to fully exploit information technology to drive business goals. The company was an early adopter of CAD and CAM systems to speed the design of the sedans. The company also uses Siebel Systems to manage its vast customer relationship network and SAP for all critical business services, such as logistics, supplier relations management, customer relationship management, human resources (HR), and finance. IT is an integral part of every business process from design to delivery and the power of IT has been extensively leveraged for the sedan project. The design processes used more digital content than ever before. State-of-the-art CAD and CAM services integrated design across multiple disciplines, making it possible for our designers to harness and benefit from their inherent ability to innovate. IT helped the company shrink the design cycle time. BSM tools from BMC Software played a key role in tracking and controlling all components of IT services and automating the management of the IT infrastructure which is vital to the design and planning for manufacture of the Civic as well as running daytoday business processes. EXCELLENCE IN OUTSOURCING Following its strategy of outsourcing noncore activities, TML has outsourced its IT applications to HONDA Technologies Ltd. and its IT infrastructure to IBM. The outsourcing decision has proven to be a wise one. Honda Motors reaped significant benefits through the outsourcing initiatives. TML was recognized in 2007 and conferred the SAP Ace award for its SRM & Warehouse Management implementations. It also received the Uptime Championship Award at the CIO 100 event in the same year.
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Initially, the outsourcing approach posed several challenges. Technology silos were performing adequately. However, a flexible service-oriented management framework was required to link the silos and provide a comprehensive a view of the IT landscape underlying a given business process. To make this framework a reality, HMSI decided to adopt IT service management concepts outlined in the ISO 20000:05 international standards, as well as best practices outlined in the IT Infrastructure Library (ITIL) Version 3. In addition, the company

decided to establish a service-oriented management architecture that treated IT services as assets and managed them on a lifecycle basis. PUTTING BMC SOLUTIONS TO WORK BMC has provided visibility into the entirety of services components across business process chains. It has also integrated the various IT service management disciplines into a single, unified solution. HSCI started with the out-of-the-box capabilities of the BMC Remedy IT Service Management Suite to establish a baseline of the IT application and infrastructure landscape across all technology pillars. The company used the applications embedded ITIL-compatible controls without modification to define roles, responsibilities, and authorities required in the support groups. HSCI realized immediate benefits from the transition to the BMC applications, which served as the software framework for managing the interactions and process relationships among all the support groups managing the IT infrastructure underlying business services. A service-oriented organizational structure was designed and configured in the BMC Remedy applications. A major innovation in the configuration is the use of logical architectural definitions for the support group infrastructure. Logical role names for technical support staff login allowed uniformity of definitions across the entire support community regardless of whether the employee is internal to HSCI or outsourced. The naming convention encompasses competency levels that enable the incident coordinator to assign tickets based on complexity. This feature has real value in a multisite support group where names by themselves mean very little. Service managers can now plan staffing on the basis of competencies and have a transparent view of support staff effort and load across locations.
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A SINGLE POINT OF CONTACT FOR IT SERVICES HSCI used BMC Remedy Service Desk and the end-user console to establish an outsourced IT service desk that is the single point of contact between the IT user community and the IT service providers. This new service desk consolidated more than 25 different help desks across the country, making it simple and straightforward for users to get assistance and report problems. This also helps to project a single unified face of IT to the customers although multiple IT service providers are involved in the complete services to the customer. An innovative, segregation-of-duties approach ensures that the vendor providing a particular service is not also responsible for tracking and reporting on that service. This was done by creating a special group within the IT service desk for ensuring satisfactory closure of tickets An innovative, segregation-of-duties approach ensures that the vendor providing a particular service is not also responsible for tracking and reporting on that

service. This was done by creating a special group within the IT service desk for ensuring satisfactory closure of tickets and monitoring status of paused tickets. HSCI is required to be SOX compliant. Statutory requirements for ensuring segregation of responsibilities were met by allocating responsibilities for recording, classification, and routing by one vendor, and closing verification, customer satisfaction assurance, and performance reporting by another. CLIMBING THE IT SERVICE MANAGEMENT MATURITY LADDER BMC solutions have helped HSCI make significant progress toward reaching the top of the IT service management maturity ladder. The applications, which paid for themselves within the first year, are delivering quantifiable benefits to HSCI. The applications have brought greater efficiency to the IT environment, enabling the staff to dramatically reduce the number of trouble calls. For example, calls related to desktops are down 40 percent, calls from supplier relationship management are down 80 percent, and server support calls are down eight percent. Most importantly, by keeping critical systems available and operating at peak performance, the company reduced the development cycle for the sedan compared with
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earlier platforms enabling the company to get this exciting new offering to market faster and at a lower cost LOYALTY PROGRAMS CITY Circle Honda Motors Privileges Program CITY Circle At Honda Motors, it is Endeavour to spoil you with superior quality of vehicles and value-added services. With this in mind, Honda Motors have made an effort to enhance your experience with your Indigo beyond the road. The benefits of becoming a member of the CITY Circle range from getting special offers and discount coupons, interacting with the Indigo community on a regular basis and being part of a group where you can share your views, experiences and more. Honda Motors offers you more than just a car. HONDA Motors offer you an experience that will spoil you for more. Accessories for your car, world-class workshops with stateofthe-art equipment and high-priority service by extremely qualified engineers are just steps towards giving you a complete ownership experience. HONDA Motors provide you with a lot of value-added services and timely information on what needs to be done to keep your car in the best condition and looking new. We also reward our customers with points made on purchases with the Empower Card a card that gives you several exclusive benefits from Honda Group companies and select partners. Other privileges available to our customers include receiving information about the latest happenings, service alerts, and special events. Our customers also have a chance to get exclusive benefits such as loyalty, exchange and referral bonuses. At Honda Motors, services and products are delivered courteously, quickly, efficiently

and to your satisfaction. Honda Motors hope you have a great experience with us. Honda Motors promise to do our best to satisfy your needs to the best of our abilities. Honda Club Honda Motors offers you more than just a car. Honda Motors offer you an experience that will change the way you look at your car. Accessories for your car, world-class workshops with state of- the-art equipment, and high-priority service by extremely qualified engineers are just steps towards giving you a complete ownership experience.
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Honda Motors provide you with a lot of value-added services and timely information of what needs to be done to keep your car in the best condition and looking new. We also reward our customers with points made on purchases with the Empower card a card that gives you several exclusive benefits from Honda Group companies and select partners. Other privileges available to our customers include receiving information about the latest happenings, service alerts, and special events. Our customers also have a chance to get special benefits such as loyalty, exchange and referral bonuses. At Honda Motors, the best of services and products are delivered courteously, quickly, efficiently, and to your satisfaction. Honda Motors hope you have a great experience with us. Honda Motors promises to do our best to satisfy your needs to the best of our abilities. Accessories and Service Coupons Apart from the various accessories and service packages you will also receive several offers and discounts on accessories and services. An offer coupon booklet is enclosed along with this booklet. Privileged Offers We also run attractive retail offers for our car owners from time to time, in addition to retail schemes applicable to others. These may include loyalty or exchange bonus on additional purchase of Honda cars, or referral bonus if you convince a friend to purchase your favorite car. We look forward to a relationship that gets stronger with time. Honda Motors constantly endeavor to change the ownership experience of every Honda owner and your suggestions and feedback would not just encourage us, but also help us improve our service standards in times to come. Were sure youll enjoy the experience of owning and driving one of the finest cars on the road, the CITY. Happy driving!