Professional Documents
Culture Documents
Honda Activa
Honda Activa
Contents
Chapter-I
Introduction
Statement of the problem
Objectives of the study
Need for the study
Scope of the study
Methodology
Limitations of Study
Chapter-II
Theoretical background
Customer satisfaction
Customer buying decision process
Marketing
Consumer behavior
Sampling procedure
Chapter-III
Industrial back ground of the study
Growth of the industry
Industry profile
Motor cycle sweep stakes
Origin of the organization
Product profile
Chapter-IV
Chapter—V
Findings
Suggestions
Conclusion
ANNEXURE
Questionnaires
Bibliography
CHAPTER-I
Introduction
Statement of the problem
Objectives of the study
Need for the study
Scope of the study
Methodology
Limitations of Study
INTRODUCTION
The two wheeler segment in the automobile industry plays a vital role in
India. The present day market is such that a two wheeler is affordable by
middle class people in urban areas. It is also more convenient for
travelling short distance within the city and for individual, over, the years
the sales figured of the two wheelers has increased to a very large extent.
The sales of the two wheeler in 1950 were merely 900 units, whereas now
the sales have gone up to millions.
The two wheeler market mainly consists of scooterette and motorcycles.
The motorcycles segment forms 65% of whole of two wheeler segment.
Whereas earlier the motorcycles had a very small share in the two
wheeler segment but with the collaboration of Indian and Japanese
companies (Honda, Suzuki, and of Kawasaki) the share has increased
tremendously with reason being that two wheelers had a superior engine,
better pick-up, good mileage, improved designs and large options to
choose from.
The two wheeler segment is divided into two stroke and four stroke
categories. The two strokes consists of kinetic Honda, Nova, Yamaha
Rx135, kb-125, etc. the four strokes category consists of Honda Activa,
TVS Scooty, Kinetic Style, etc.
Most of the officials or some persons generally prefer these two wheelers,
such as Honda Activa, Kinetic Honda, Scooty, etc, as they are more
concerned with mileage. They are also concerned with these two
wheelers, as they prefer unguarded vehicles, so that it would be easy to
ride the two wheelers in the cities where there is much traffic.
The scooterette segment will continue to lead the demand for two wheeler
in the coming years.
The Indian two wheeler industries produced and sold about 3.4 million
units in the year 2009-10. Like any other Indian industry, the policy
environment guided and controlled this segment of the industry as well.
Licensing horns ruled day till the mid 80’s access to foreign technology
inputs and foreign investment were strictly government controlled.
Since mid 80’s, the Indian automobile industry was administered select
doses of liberalization, foreign collaboration coupled with Indian market
OBJECTIVES OF STUDY
The main objectives of the study are:
1. To find out the customer satisfaction level.
2. The study also helps the company to improve their standard of service
& handle the competition in the near future.
3. It also helps in putting in possible improvements, additions, and new
strategies and offers the customers.
4. It also puts a detailed insight into the different aspects of the company,
such as manufacturing, marketing sales, production and finance etc.
METHODOLOGY
Formulation of Hypothesis
The hypothesis was formulated assuming that it would ensure a proper
method for the study based on which relevant material can be collected.
Research Design
It has been assumed that source of data are the foundation, based upon
which the actual required information can be extracted.
Sample Procedure
Empirical field studies require collection of first hand information
on data pertaining to the unit of study from the field.
This sampling plan is effective in getting the first hand
information, i.e. primary data, which has been required for the study by
the research.
Some respondents did not answer correctly as they were short of time.
CHAPTER-II
Theoretical background
Customer satisfaction
Customer buying decision process
Marketing
Consumer behavior
Sampling procedure
THEROTICAL BACKGROUND
CUSTOMER SATISFACTION
Customer satisfaction suffices the customer. Customer visualizes,
perceives and will have some expectations before making any purchase.
If the product meets customer’s 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 consumer’s estimation of
products over all capacity to satisfy his needs.
Customer satisfaction is a function of perceived performances and
expectations.
SOCIAL
PERSONAL
Culture
Age PSYCHOLGICAL
Sub cultural
Life style Motivation
Cross-cultural
Occupation Perception
Social class
Economic Learning
Reference groups
Position Personality
Family BUYER
Attitude
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.
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 company’s 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.
brands, buys other product that company latter adds to its line. Marketer
should be aware of profitable and non-profitable customers.
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 wants
MARKETING
“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.Drucker
“Marketing 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 BEHAVIOUR
The term consumer behaviour refers to the behaviour that consumer’s
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
SAMPLING PROCEDURE
The sample size of collection of data is 100 respondents.
Sampling is basically targeted to the consumers who own Honda Activa,
who are chosen by simple random technique. Though the size of sample
is small, it has highly reliable findings as it is targeted to right Honda
Activa owners.
DATA COLLECTION METHOD
The type of information required for the study was satisfactory
level of the consumers who own Honda Activa. So data is collected
through ‘personal interview method’. This method has helped in
obtaining data on factors such as attitude, satisfaction level, mode of
purchase etc. by this method one can expect a reliable information, which
is referred to as quantitative research design method.
SOURCES OF DATA
It refers to method used to conduct research for Silicon Honda in this
research all the data have been collected through “primary source of Data
collection” method, for the study of “Honda Activa”.
CHAPTER-III
Industrial back ground of the study
Growth of the industry
Industry profile
Motor cycle sweep stakes
Origin of the organization
Product profile
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.
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.
- Economical cost
INDUSTRY PROFILE
The Indian two wheelers industries can be broadly classified as scooters,
motorcycles and mopeds. These segments as shown below constitute the
domestic two wheeler sales of 3.4 million in financial year 2009-09.
In the last six years, the domestic two wheeler industries have seen
structural changes. This can be seen from the change in composition of
two wheeler sales. Where the motor cycles have consistently gained
market share from scooter and moped segment to corner a share of 41%
of total two wheeler sales. This trend is expected to continue in the next
two years till the four stroke scooters make their presence felt in this
segment. The table below gives an idea about the strides made by motor
cycle segment in the last six years.
Moped sales in southern region lead in three wheeler sales with a
contribution of 42% and 35.8% of total three wheeler sales respectively.
In the terms of three wheeler vehicle population in Maharashtra State
stands first with a population of 0.39 mn and Gujarat in the second place
with 0.22 mn as on March 31st 2009.
MOTOR CYCLE SWEEP STAKES:
MARGINS VOLUME NET PROFIT
2009-10 SALES in ( Rs. Cr) ( Rs. Cr ) (%)
(assessment nos.
year )
Hero-Honda 10,29,591 3369.88 246.87 7.33
Bajaj auto 5,42,531 3628.74 249.95 6.89
TVS 3,54,497 1820.98 62.57 3.44
Yamaha 1,71,307 not listed not listed not listed
LML 36,160 633.74 -41.29 -6.52
INDUSTRIAL BACKGROUND
Indian automobile industry is full of big names such as Maruti,
Kawasaki, Tata, TVS, Suzuki, Yamaha, Hero 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.
HONDA
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.
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:
• The conventional Indian scooter is too big and difficult to handle
• The scooterette is too small and similar to mopeds
The joy of using world The joy of selling world The joy of
class products class products producing high
quality products
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.
ADDRESSES:
• Official Name Honda Motorcycle & Scooter India Pvt. Ltd.
• Established 20th FIB.MARCH 2010
• Place New Delhi, India
• Capital Rs. 300 Crore
•Representative Mr. Haruo Takiguchi, President & CEO
•Factory Location Manesar, District Gurgaon, Haryana, India
•Production Capacity 200,000 units per year
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.
Technology
Our fundamental design philosophy seeks to maximize space and
comfort for people, while minimizing the space required for mechanical
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.
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 by 2009.
PRODUCT PROFILE
HONDA ACTIVA
Technical Specifications
Engine:
Type 4-stroke, single cylinder, air cooled,
OHC
Displacement 102 cc
Maximum Power 7 Bhp at 7000 rpm
Maximum Torque 0.8 Kg-m at 5500 rpm
Transmission V-matic
Ignition Self and Kick
Electricals:
Battery 12 V, 5 Ah
Headlamp 35 W
Chassis:
Frame High rigidity under bone type
Dimensions (l*b*h) 1765*715*1130 mm
Wheel Base 1235 mm
Seat Height 760 mm
Ground Clearance 145 mm
Fuel Tank Capacity:
Tank capacity 6 litres
Brakes:
Front Drum, 130 mm dia
Rear Drum, 130 mm dia
Tyre size:
Front 3.50-10, 4 PR
Rear 3.50-10, 4 PR
Suspension:
Front Bottom link with spring loaded
hydraulic damper
Rear Unit swing with spring loaded
hydraulic damper
Colors:
Strand silver metallic
Black
Laser red
Precious gold metallic
Azure blue metallic
Features:
Aerodynamic Design: The Honda Activa has an aerodynamic body that
helps cool the engine through smoother airflow. It also helps to lower fuel
consumption by lowering air resistance.
Tuffup Tube: The Tyres of the Honda Activa have double layered tubes
with fluid in between. This seals the air leakage in case of a puncture to
ensure that the rider enjoys a hassle-free ride.
Under Seat Box: Neatly hidden beneath the seat of the Honda Activa is
space that can comfortably hold a helmet or any other thing you wish to
put away.
CLIC: The ‘Convenient Lift-up Independent Cover’ enables one to
easily lift-up the Honda Activa’s body cover, like the bonnet of a car.
This makes routine maintenance easier and faster.
Multi-Reflector headlamp: Honda Activa has a powerful and very
stylish multi-reflector headlamp that increases road visibility to make
night driving a safe experience.
HONDA DIO
Honda has done it again! After wooing the masses with its brilliant but
conservatively styled Activa, Honda now plays the style card with the
Dio. And squashes the opposition in emphatic style.
A pertinent question which I must ask. Do real men ride scooters? Those
girly, electric-start, UN-geared, twist and go scooters? No? I would have
yelled an emphatic 'no' if this question was posed to me a year ago. Come
on, men ride motorcycles, preferably big brawny Bullets!
Ask me this question today and you will hear me coo a different tune.
Maybe it's just me becoming old and boring but everyone in the office
seems to concur with my view. And for that the Honda Activa has to be
blamed. Spoilt us it has, over a year of leisurely riding. But there still was
that one little reservation I had against the Activa. Being young in years
most of my waking hours are spent trying to impress the ladies and the
conservative, even boring, styling of the Activa ain't going to cut much
ice.
Which is why the Activa has been in Aspi's possession (he being of the
married type) for all these months while I have been breaking my head
over a succession of Bullets. But didn't someone say there always is light
at the end of the tunnel and in this case the light ain't of an oncoming
train. Rather it has 'Dio' splattered across its sides.
The Dio is clad entirely in plastic panels, a departure from the steel-
bodied Activa. Honda wanted to play it safe with the Activa and hence it
is steel-bodied, but with the Dio, the contemporary approach to panels
has been adopted resulting in 12kg weight reduction, more of which later.
Developing plastic moulds is also much cheaper that steel.
Ergonomically the Dio is spot-on and quality of components and controls
is top-notch, as we have come to expect from any Honda offering. The
handlebar-seat-footboard relationship has been optimized perfectly for
riding comfort. The Dio also has the CLIC cover that lifts up the Honda's
body like a car bonnet allowing easy access to the engine for routine
CHAPTER-IV
Data Analysis & Interpretation
Table 1:
Age Group of the Respondents
Age No of respondents
18-25 39
25-32 18
32-39 11
39 & above 32
Observation
39
40
35 32
30
25 18-25
20 18 25-32
32-39
15
11 39 & above
10
5
0
a b c d
Table 2:
80 76
70
60
50
male
40
female
30 24
20
10
0
a b
Table 3:
39
40
34
35
30
student
25 21
service
20
business
15
professional
10 6
5
0
a b c d
Table 4:
50 47
45
40
35
30 27 5000-10,000
25 10,000-15,000
19 15,000-20,000
20
15 20,000& above
10 7
5
0
a b c d
Table 5:
Observation
The study shows that out of the 100 surveyed respondents 99% of them
owning Activa were self-owned, 1% was company owned and none of
them were using company leased.
Graph 5:
Ownership status of the Activa
99
100
90
80
70
60
self owned
50
company owned
40
company leased
30
20
10 1 0
0
a b c
Table 6:
Observation
The above study reveals that the 87% of the respondents would like to
recommend Honda Activa to others, such as their friends and relatives.
And 13% of the respondents told that they would not recommend Activa,
as they would get a bike for the same cost.
Graph 6:
Recommendation of Activa to others
90 87
80
70
60
50 yes
40 no
30
20 13
10
0
a b
Table 7:
Ratings for Ride, Handling
Ratings No of respondents
Excellent 48
Good 26
Average 16
Poor 10
Observation
The study shows that the respondents ratings for Ride & Handling. 48%
of them told that it was excellent, 26% told that it was good, 16% told
that it was average and 10% of them told that it was poor.
Graph 7:
50 48
45
40
35
30 excellent
26
25 good
20 average
16
15 poor
10
10
5
0
a b c d
Table 8:
Ratings for Comfort
Ratings No of respondents
Excellent 52
Good 24
Average 23
Poor 1
Observation
The study shows that the respondents ratings for Comfort. 52% of them
told that it was excellent, 24% told that it was good, 23% told that it was
average and 1% of them told that it was poor.
Ratings for Comfort
60
52
50
40
excellent
30 good
24 23 average
20 poor
10
1
0
a b c d
Table 9:
Ratings for Road Grip
Ratings No of respondents
Excellent 17
Good 21
Average 37
Poor 25
Observation
The study shows that the respondents ratings for Road Grip. 17% of them
told that it was excellent, 21% told that it was good, 37% told that it was
average and 25% of them told that it was poor.
Ratings for Road Grip
40 37
35
30
25
25 excellent
21
20 good
17
average
15
poor
10
0
a b c d
Table 10:
Ratings for Engine Performance
Ratings No of respondents
Excellent 47
Good 15
Average 31
Poor 7
Observation
The study shows that the respondents ratings for Engine Performance.
47% of them told that it was excellent, 15% told that it was good, 31%
told that it was average and 7% of them told that it was poor.
50 47
45
40
35 31
30 excellent
25 good
20 average
15
15 poor
10 7
5
0
a b c d
CHAPTER-V
Findings
Suggestions
Conclusion
FINDINGS
All the customers say that they prefer to service their vehicles at
the authorized service centers only.
33% of the customers told that they would purchase another Honda
Activa in future for their family members or for their relatives.
29% of the customers say that they purchased Activa for its
travelling comfort.
22% told that Activa is easy to ride.
26% told that Activa is a fuel efficient two wheeler.
99% of the customer’s ownership status of Activa is self-owned.
12% purchased Activa as they felt it was a trend for it.
Indian market is full of middle class customers and most of the
customers owning Activa belonged to middle class category.
The customers got aware of Honda Activa largely through
magazines and newspapers.
34% of the customers were students and 39% of them were
professionals.
76% of the customers were male and 24% of them were female.
SUGGESTIONS
This study is aimed at analyzing customer satisfaction with sample of 100
members, which has helped in getting an overall view of customer
satisfaction towards Honda Activa considering different criteria.
Base on the study following suggestions can be considered
Providing more techno-driven, sophisticated exteriors keeping
track of present situation.
To increase the mileage efficiency
CONCLUSION
ANNEXURE
Questionnaires
Bibliography
QUESTIONNAIRE
Name:
Age:
Sex:
Address: ---------------------------------------------------------
---------------------------------------------------------
Phone No:
Email ID:
SPECIFIC INFROMATION
1. What is the owner ship status of Honda Activa?
Self owned
Company owned
Company leased
2.Age group of the respondents
o 18-25
o 25-32
o 32-39
o 39 & above
3. sex of the respondents
o Male
o Female
Mileage
Design
Engine performance
Speed
Braking
Pick-up
Excellent
Good
Average
Poor
BIBLIOGRAPHY
Books:
1. Principles of Marketing Management
By Philip Kotler.
2. Research Methodology
By C.R.Kothari.
Magazines:
1. Auto World.
2. Over drive.
3. Auto India.
News Papers:
1. Times of India.
2. Economic Times.
Web Sites:
www.honda2wheelersindia.com
www.activa.com
www.hondabick.com