INTERNSHIP REPORT ON MARKETING

AT
JSP AUTOMOTIVE PRIVATE LIMITED COMPANY
REPORT SUBMITTED BY,
JAI KUMAR .S

DEPARTMENT OF MANAGEMENT STUDIES

ST.PETER’S COLLEGE OF ENGINEERING &
TECHNOLOGY
AVADI,
CHENNAI - 600054

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 ABSTRACT

My project work is to study about MARKETING activities and to get trained

in the same. The internship was done at JSP AUTOMOTIVE PVT.LTD.

This report has all heads like business formation, business model,
operations of the organization in which I got trained. It also has the skills
and knowledge acquired by me during the course of internship.

It also includes the functions of marketing department of JSP Honda

involved in the organization.

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 ACKNOWLEDGEMENT

The internship opportunity I had with JSP Honda was a great chance for
learning and professional development. Therefore, I consider myself as a
very lucky individual as I was provided with an opportunity to be a part of it.
I am also grateful for having a chance to meet so many wonderful people
and professionals who led me though this internship period.

I express my deepest thanks to Mr. Sukumar, sales manager for taking

part in useful decision & giving necessary advices and guidance and
arranged all facilities to make internship easier. I choose this moment to
acknowledge his/her contribution gratefully.

I express my profound gratitude to my project guide Mrs. C. Evangeline and head

of the department of Management Studies Dr. S. Sankaran for their constant
guidance and encouragement and support in completing this project report.

At this moment I also thank almighty, my parents and God for the blessings
showed upon me and also my friends for their valuable suggestions.

(S JAI KUMAR)

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 DECLARATION

I hereby declare that the Internship Report Work done by me Dealership

and submitted by me for the partial fulfillment of the degree of MBA in the
MARKETING stream and this is my original work and has not been
submitted earlier to any other University / Institution for the fulfillment of the
requirement for any course of study.

I also declare that no chapter of this manuscript in whole or in part has

been incorporated in this report from any earlier work done by others or by
me. However, extracts of any literature which has been used for this report
has been duly acknowledged providing details of such literature in the
references.

Signature

Place:

Date:

VIVA VOCE EXAMINATION HELD ON: ___________________

Internal Examiners Name & Signature

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 TABLE OF CONTENT

Chapter No TITLE Page no

1 Introduction and 6-21
Formation of the company
2 Business Profile 22-30
And Organization Profile
3 Industry 31-40
analysis
4 Functions of marketing department 41-56
of jsp honda
5 Learning Experience 57-60
And Skills Acquired

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 CHAPTER 1
INTRODUCTION
AND
FORMATION OF THE COMPANY

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 Introduction

A dealership management system (DMS) or auto dealership management

system is a bundled management information system created specifically
for automotive industry car dealerships or large equipment manufacturers,
such as Caterpillar Inc dealerships, and also adapted for cars, boats, bikes,
RV, and power sports dealers. These systems often contain software that
caters to the needs of the finance, sales, parts and inventory and
administration components of running the dealership. One of their functions
can be automating tax returns. Other more sophisticated features can
include online marketing tools and analytics on deals. Newer DMS systems
have seen utilization of mobile platforms as well.

A bike dealership or vehicle local distribution is a business

that sells new or used bikes at the retail level, based on a dealership
contract with an automaker or its sales subsidiary. It employs automobile
salespeople to sell their automotive vehicles. It may also provide
maintenance services for bikes, and employ automotive technicians to
stock and sell spare automobile parts and process warranty claims.

Distributorship and Dealership

Distributors and dealers are participants in a supply channel, the distributor

usually a wholesaler who sells to dealers and dealers usually retailers who
sell directly to the public. The dealer-distributor terminology is most
common in the distribution of machinery and mechanical goods—thus in
automobiles, trucks, farm and construction equipment, yard and garden
Goods (green goods), appliances (white goods), electronics, and also in
the sale of industrial equipment. This basic structure has many variants.

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Both distributors and dealers actually purchase the goods they sell—the
distributor from the manufacturer, the dealer from the distributor.
Distributors maintain parts inventories and the dealers provide service
functions to the ultimate consumers ("servicing dealers"). Relationships
among manufacturers, distributors, and dealers are typically contractual in
nature.

Distributors and in turn dealers participate in incentive programs offered by

the manufacturers—such as subsidized advertising programs, bonuses,
and special discounts. Distributors and dealers have rights to use the
manufacturer's trademarks and logos—but not as their own.

Distributor and dealer relationships to manufacturers have many features in

common with franchises. Indeed, state laws governing franchises may
have clauses that directly relate to distributors and dealers. But the
franchise concept is fundamentally different from the distributor-dealer
model.

Traditional distributors and dealers never pay an up-front fee to the

manufacturer for the privilege of selling the producer's goods—but may be
contractually required to buy some minimum amount of goods.

Distributors and dealers may be relatively strong or relatively weak over

against the producer, but in all cases they bring something to the table,
namely an established market already developed. It is not unusual for
strong distributors and dealers to carry the goods of competing
manufacturers, although, in most cases, one of the brands will be
dominant, the other serving a smaller customer base.

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Often, the words "dealers" and "distributors" are used interchangeably, but
there is a difference: A distributor may sell to several dealers, while a
dealer usually sells directly to retailers or consumers.

JSP AUTOMOTIVE PRIVATE LIMITED

JSP Automotive is Authorized Exclusive Dealers for HMSI

(Honda Motorcycles and Scooter Indian Pvt Ltd) headquartered at
Gurgaon, Haryana. They are dealers for HMSI in two of the major cities
Chennai and Hyderabad.

They started their foray in to the automobile sector by acquiring

the dealership of Escorts Yamaha motors in 1989 and subsequently in
1991 they were appointed as authorized Clearing & Forwarding agents
(C&F). They were distributing EYML products all over Tamilnadu state
close to 40 dealers then.

In the year 2001 they were appointed dealers for HMSI in

Chennai and subsequently in the year 2007 they began their journey with
HMSI at Hyderabad as well.

In Chennai, they have a large operation base for HMSI with 8

branches at: Anna Nagar, Mogappair, Aminijikarai, Padi, Ambathur,
Perambur, Choolai, Agaram.

In Hyderabad, they have a sprawling 50,000 sft JSP HONDA

dealership setup for Honda at Kukatpally and have branches at Kukatpally
(Head), Chinthal, Balkampet, Suraram, Jagathgirigutta, Nizampet, KPHB
Phase 4, Miyapur&Madinaguda.

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HONDA TWO WHEELER IN INDIA

HMSI operates on a principle, which is followed worldwide by all Honda

companies. Maintaining a global viewpoint, we are dedicated to supplying
products of the highest quality, yet at a reasonable price for worldwide
customer satisfaction. Honda’s philosophy is based on the company’s
guiding principle and advocates 2 fundamental beliefs:

RESPECTS FOR THE INDIVIDUALS

Honda recognizes and respect individual differences. The respect for

individual stems from the following three points:

 Initiative
 Equality
 Trust

It is the contribution from each individual in the company that has made the
company what it is today and that which will take the company into the
future.

THE THREE JOYS

In line with Honda’s philosophy, HMSI conducts all the daily activities in
pursuit of the following joys:

 The joy of manufacturing high quality products

 The joy of selling high quality products
 The joy of buying high quality products

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PVT LTD COMPANY
Private Limited Company is which are by share
and by guarantee. Majority amount of the trading companies are private
companies limited by shares. There are over one million such companies
registered at Companies House and each company must have the word
'Limited' or 'Ltd' at the end of its name. Many private companies are very
small and no minimum capital requirement in respect of a private limited
company Approximately 90% of private companies are small or medium
sized companies which mean that they can simplify accounts at Companies
House, rather than full accounts. A private company may not offer shares
or debentures.

Private limited company is the most popular corporate entity

amongst small, medium and large businesses in India due to various
advantages.

 Ideal for Startups & Growing Business.

 Easy to Get Funding, Raise Venture Capital Fund.
 Limited Liability.

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 Formation of the company

Dealership, distributorship or agency or becoming a franchisee is the

license to distribute the product here both the dealership and distributor
work with the manufacture to get the goods to the buyer. A dealership is
similar to the distributorship that the dealer usually sells to the public were
the criteria will be given by the manufacturing company.

First of all the manufacturing company will give the rights and
responsibilities in the relationship, training and support about the product,
area of distribution, and quality control about the product. For the quality
control they will come across the dealership places, manufacturing
company offices visits onsite inspection the facility and regular customer
and the vendor feedback.

Legal procedures

A JSP AUTOMOTIVE Private Limited Company is a Company limited by

shares in which there can be maximum 50 shareholders, no invitation can
be made to the public for subscription of shares or debentures, cannot
make or accept deposits from Public and there are restriction on the
transfer of shares. The liability of each shareholder is limited to the extent
of the unpaid amount of the shares face value and the premium thereon in
respect of the shares held by him. However, the liability of a Director /
Manager of such a Company can at times be unlimited. The minimum
number of shareholders is 2.

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Process to become a dealer

After filing all the above requirements to start a private limited company and
to become dealer of HONDA the dealer should fill the following form and
get approval from Honda Company.

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 Declaration

All the above 11 documents should be filled and get approval from Honda
and government department then finally a dealer can start a Honda
showroom and do their business, marketing, sales and service for their
products.

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 CHAPTER 2
BUSINESS MODULE
AND
ORGANIZATION PROFILE

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 BUSINESS MODEL

JSP AUTOMOTIVE PRIVATE LIMITED is involved in

Armored cars & lorries, manufacturing, Drop frame lorries, manufacturing,
Lorries with automatic discharging devices, manufacturing, Manufacture of
motor vehicles for the transport of goods, Manufacturing of armored cars &
lorries, Manufacturing of drop frame lorries, Manufacturing of lorries with
automatic discharging devices, Manufacturing of mobile medical and dental
clinic (mounted on trucks),Manufacturing of ordinary goods vans,
Manufacturing of ordinary lorries, Manufacturing of ordinary trucks,
Manufacturing of over-the-road tractors for semi trailers, Manufacturing of
refuse collector lorries, Manufacturing of street sweeper lorries,
Manufacturing of tankers, Manufacturing of traveling libraries (mounted on
trucks),Mobile medical and dental clinic (mounted on trucks),
manufacturing, Motor breakdown lorries, manufacturing, Motor vehicles for
transport goods, manufacturing, Ordinary goods vans, manufacturing,
Ordinary lorries, manufacturing, Ordinary trucks, manufacturing, Over-the-
road tractors for semi trailers, manufacturing, Refuse collector lorries,
manufacturing, Street sweeper lorries, manufacturing, Tankers,
manufacturing, Traveling libraries (mounted on trucks), manufacturing etc.

JSP HONDA
JSP Automotive contains a separate dealership unit of Honda. They are the
authorized Exclusive Dealers for HMSI (Honda Motorcycles and
Scooter Indian Pvt Ltd) headquartered at Gurgaon, Haryana. They are
dealers for HMSI in two of the major cities Chennai and Hyderabad.

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Dealerships run on 4s concept & have these 4 functions in
them:

 Sales - least margin

 Service - highest margin
 Spares parts - depends on brand
 Safety &Survey – information, feedback etc

4S CONCEPT

JSP HONDA is a kind of "Four in One" as the JSP automotive franchise

business model, including vehicle sales (Sale), parts (Spare part), service
(Service), information feedback, etc. (Survey)

JSP HONDA has established close relationship between production and

marketing, with a beautiful shopping environment, brand awareness and
strong advantages, once many domestic manufacturers to follow suit.

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JSP HONDA usually take a brand in a relatively equidistant from the
geographical distribution of one or several stores, according to the
manufacturer's design requirements within and outside the construction of
a unified store, huge investment, the hundreds of millions or even tens of
millions, luxurious style.

Business Description
JSP HONDA is an automotives sales, maintenance, spare parts and
information services as one of the retail shops, an investment of about 25
million to set up shop. JSP HONDA shop model in recent years developed
very fast in the country.

JSP HONDA in the automotive industry is the automobile manufacturers in

order to meet customer demand in the service launched a business model.

JSP HONDA bike shop model is the product of fierce market competition.
As the market matures, users of consumer psychology is gradually mature,
diverse user needs, product and service requirements are also increasingly
The higher, more stringent, the original sales agent system cannot meet
market and customer needs.

JSP HONDA shop there, just to meet the various needs of users, it can
provide well-equipped maintenance area neat and clean, modern
equipment and service management, highly professional atmosphere, well-
maintained facilities, adequate supply of spare parts, rapid and timely
tracking service system.

Through the JSP HONDA shop service that allows users to generate trust
in the brand to expand sales. "Thus," JSP HONDA "The key words are"
solutions "and" service. " In fact, "service economy and society" in the
background, "JSP HONDA" model and some other fact has entered "to
programs and services as the competitiveness of the times," the industry
sales service model end by special way, but it is called more stylish, newer.

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JSP Honda includes
 Vehicle sales (Sale)
 Parts (Spare parts)
 Service (Service)
 Survey.

JSP HONDA is a unified design by the manufacturer, according to the

mode of operation and management of manufacturers of domestic joint-
venture automobile manufacturers are now all over the country are
equipped with 4s concept.

Business process
Step-1 HONDA manufacturers supply vehicle and spare parts directly to
the JSP HONDA showroom.

Step-2 JSP Honda will do marketing for the Honda bikes for Retail
customers.

Step-3 After the marketing for the bikes the stores will do the sales on
behalf of manufacturers.

Step-4 After the sale of the bike, the stores were responsible for the
service on behalf of manufacturers.

Step-5 They will do customer survey regarding bikes and get feedback
from them.

JSP HONDA has sales tasks, for effective and efficient sale and not to let
sale decline. And they do services for customer satisfaction. JSP Honda
prefers customer satisfaction, so they do survey, customer feedback etc.
And they offer warranty, exchange of bikes etc. And they have telepeople
for marketing purpose, service feedback and enquiry details to the
customers.

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 .ORGANISATION TREE OF JSP HONDA

GENERAL MANAGER

SALES MANAGER SALES TEAM LEADER

RECEPTION

ALLOTMENT
TEAM LEADER

REGISTRATION

RTO In-charge

PDI

DELIVERY

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 ORGANIZATION PROFILE

JSP AUTOMOTIVE is one of the most popular dealers in Tamil Nadu.

During the separation of Honda from Hero, JSP Automotive was the only
firm which had many branches in Tamil Nadu. Though there are several
dealers for Honda, JSP Automotive had a special place to sell Honda
Vehicles. In 2013, JSP automotive was ranked as the number one dealer
for Honda. Hence they will be given the first preference to sell Honda
vehicles.

In a month, approximately around 570 bikes will be sold by JSP automotive

Anna Nagar. All range of Honda vehicles including high end models with
best prices will be sold first by this firm.

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 GENERAL DETAILS

Company Name : JSP AUTOMOTIVE PRIVATE LIMITED

Corporate Identification Number : U34102DL2003PTC120240

Ownership Type : Private

Business Type : Business TO Customer (JSP HONDA)

Year of Establishment : 08/05/2003

Category : Company limited by shares

Sub Category : Indian Non-Government Company

Registered Address : SHED NO. 9, CATEGORY - II ND,

DELHI, Delhi, 110041.

Director Name : Subhash Goyal

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Registration detail

Registration Type : Company Registration

Registration Number : 120240
Registration Year : 2003
Registration authorities : RoC-Delhi

Registered for activities : 34102

Other Detail

JSP AUTOMOTIVE PRIVATE LIMITED is a private limited

Company incorporated on 08/05/2003 and is 13 Years 9 Months 19 Days
old. It is classified as Indian Non-Government Company and is registered
at RoC-Delhi. Its authorized share capital is Rs. 500,000.00 and its paid up
capital is Rs. 100,000.00.

JSP AUTOMOTIVE PRIVATE LIMITED's Annual General

Meeting (AGM) was last held on 2015-09-29 and as per records from
Ministry of Corporate Affairs (MCA), its balance sheet was last filed on
2015-03-31.

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 CHAPTER 3
INDUSTRY ANALYSIS

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 INDUSTRY ANALYSIS

PARTICIPANTS
The Manufacturer
A two-tier distribution system (distributor, dealer) may be the preferred
channel used by the manufacturer of one or a whole line of its goods. Using
distributorships gives the producer the advantage of dealing with just a few
major buyers, the distributors, who then, in turn, take care of selling the
product through to the ultimate consumer using dealers. In any kind of
major equipment business, substantial capital is involved in carrying and
holding merchandise, including parts inventories. Distributorships share the
burden by purchasing goods on their own account and freeing up the
producer's working capital for the next round in the production cycle. The
producer in such a channel participates, nevertheless, down to the retail
level, by marketing programs, incentive programs for distributors and
dealers, discounts for the consumer, and also by providing technical
training programs for distributor and dealer personnel.

Honda is the world’s largest manufacturer of two Wheelers , Recognized

the world over as the symbol of Honda two wheelers , the ‘Wings’ arrived in
India as Honda Motorcycle and Scooter India Pvt. Ltd. (HMSI ), a 100%
subsidiary of Honda Motor Company Ltd., Japan ,in 1999. Since its
establishment in 1999 at Manesar, District Gurgaon, Haryana, Honda has
lived up to its reputation of offering the highest quality at the most
reasonable price. Despite being one of the youngest players in the Indian
two-wheelers market, Honda has become the largest two wheeler
manufacturer as well as the second largest two-wheelers company in India.

Honda is also the fastest growing company in country today. With a host of
facilities under its wings, the first factory of HMSI is spread over 52 acres
including a covered area of about 100,000 sq. meters in Manesar, District

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Gurgaon, Haryana with an annual capacity of 1.65 million units. To meet
the ever increasing demands of the products, Honda has started operations
of its second plant in Tapukara, District Alwar, Rajasthan. Expanding to full
operations , Honda production capacity has jumped 30% year on year to
2.8 million per annum in FY 12- 13.

Honda’s third plant at Narsapura Industrial Area near Bengaluru, Karnataka

is equipped to manufacture 1.2 million units. Utilizing production
technologies refined at Manesar & Tapukara plants as starting point, the
3rd plant is employed with state-of-the-art manufacturing, automation and
environment friendly technologies to deliver quality products.

The Distributor
The distributor is an independent selling agent who has a contract to sell
the products of a manufacturer. The distributor cannot represent him- or
herself as the producer but may display the producer's trade name in
signage and in the sales situation. Depending on the relative power of the
producer, the distributor may be limited to selling only one brand of a
product; in practice the strong distributors will have much more freedom.
The distributor usually has an exclusive territory which may be part of a
metro area or, depending on the product, may be a large territory including
more than one state. Distributors pay wholesale prices for the product and
then distribute to dealers who pay dealer price.

Variants to this general pattern exist. One such is the contract distributor
who purchases a product from a producer, consolidates it with other
products thus adding value, and resells the product. A contract distributor
differs from a wholesaler in that a wholesaler merely purchases a product,
along with other products from different manufacturers, and resells the
product with little if any changes.

Being an independent entity, the distributor's operations are not under the
direct managerial control of a producer. Producers, however, influence the
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distributor by providing common methods for display, for inventory
management, producing national advertising and symbolism, and offering
incentives. Some of these internal matters may be governed by the general
contract under which distributors and producers operate.

The Dealer
A dealership is sometimes called a retail distributor. It is similar to a
distributorship, except that a dealer usually sells only to the public. Unlike
other types of franchisees, including some distributors, a dealer rarely
carries a single product line. Even in the auto industry, a major dealer will
carry competing products, often on the same site, but these will be
differentiated by being each in its own building.

By operating as a dealer for a branded product, the dealership in effect

participates, but at second hand, in the producer's total marketing
scheme—enjoying national advertising support, receiving training, and
taking advantage of incentive programs. By taking part in dealer groups,
dealerships also act as a feedback mechanism for the producer conveying
insights gained by dealing directly with the customer.

SECURING A DEALERSHIP/DISTRIBUTORSHIP
In order to determine which business opportunity or franchise to invest in, it
is important to do careful research. While the advantage of investing in a
business opportunity or franchise is that it can be a "turnkey operation," it is
crucial to plan and investigate the investment even more thoroughly than
with a traditional entrepreneurial effort.

Begin with an assessment of your own skills and goals for the business.
Keep these in mind while reviewing franchise possibilities. Start with a
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thorough reading of the Uniform Franchise Offerings Circular (UFOC) or
the business disclosure statement. If the franchising business does not
have one, ask why and be concerned about the dependability of the
business. Get copies of the company's financial records, as well as details
in writing about what exactly is being offered for the purchase price,
including training and support. Find out what other distributors exist and, if
possible, talk to them about the success of their franchise, the quality of the
product/service, and the support of the franchiser. Test the potential of the
product/service with family and friends. Ask yourself, "Would I purchase
this product/service?"

Another factor in securing a dealer/distributor business is the large initial

investment. There are normally two types of fees associated with
franchises and business opportunities: the original start-up fee or purchase
price, and ongoing fees or product costs. The purchase price may depend
on whether the small businessperson is investing in a "turnkey" operation,
such as a car dealership, or a less complete franchise. Prospective
franchisees should not be afraid to negotiate the purchase price and terms
of the business opportunity.

A franchise territory can be exclusive or non-exclusive. There are pros and

cons to each type of territory, but be sure you are aware of the status of
your prospective business and determine whether you can work in this
environment.

It should be noted that both distribution and dealership agreements tend to

have a shorter term than a traditional franchise agreement. Distribution and
dealership agreements frequently are renewed on an annual basis, by
mutual agreement. A traditional franchise agreement normally covers a
minimum of five years.

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BENEFITS AND COSTS OF DEALERSHIPS AND
DISTRIBUTORSHIPS
There are differences in operating a distributorship and a dealership. A
distributorship normally costs more than a dealership and requires
leadership capability and a better knowledge of basic business skills. It will
most likely have a larger territory than a dealership and may even extend to
more than one location. A dealership tends to be local and requires less
start-up capital. A dealer can focus his/her efforts on the management and
success of one location. The dealer works closely with a distributor so it
pays him or her to nurture that relationship as well. In the final analysis, the
distributorship can be more lucrative; but it will require different skills and
higher investments.

The chief benefit of participation in such a two-tiered channel comes from

the brand equity of the products carried—and the support the brands may
have from the producer. The relationship, however, is mutual. Well-
supported brands will tend to be higher priced. The pressure to stock at
high levels will be greater and conformity with the producer's programs will
be enforced. In turn a well-run distributorship will ensure selection of
excellent dealers who, in turn, by commanding strong locations and
providing good service to consumers, contribute substantially to the brand's
image.

Producer-distributor-dealer relationships have built-in conflicts as well—the

smooth resolution of which is central to profitable long-term operations.
Conflicts often take opposite forms: producers may wish to "push" more
product into the channel than the channel really wants; at other times,
especially when a product really takes off, the channel can't get enough
product to meet demand. Effective participants in this channel pay a good
deal of attention to the parties. Producers will cultivate good will down the
channel. Distributors will both push and protect their dealers. Dealers will

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"stretch" to meet producer needs by stocking a little more—and will benefit
when product is short by being first in line for shipments.

CHALLENGES FOR DEALERSHIPS AND DISTRIBUTORSHIPS

One recent challenge for dealers and distributors are changes in the
relationship with the original manufacturer or franchiser. For example,
General Motors in the early 1990s wanted to establish 10 percent of their
dealerships as factory-owned, according to Robert Ulrich in Modern Tire
Dealer. GM was looking to maintain its brand name at its dealerships,
many of which had begun selling more than one car line under their roofs.
Existing independent dealerships were concerned that factory-owned
dealerships would receive preferential treatment in the areas of advertising,
service agreements, promotions, and even inventory. Dealerships viewed
their ability to sell more than one brand as an opportunity for cross-selling
into the GM brand when the buyer may have been initially interested in
another brand.

The advent of the Internet has also changed the way that dealerships and
distributorships operate. Dealerships and distributorships emerged as
businesses when manufacturing companies were new and focusing on
production, as opposed to distribution. As production costs diminish with
increased pressure for profits, many manufacturing companies are looking
for a bigger piece of the pie. Business-to-business selling has increased
dramatically. Manufacturers have begun selling their products directly to
the public, and the Internet is a relatively inexpensive method of doing so.
While this may take away some sales from the distributor, a manufacturer's
Web site can also benefit its distributors. Many manufacturers use the site
as a storehouse for information on the company and its products, providing
prospective sellers with needed information that its distributors cannot
deliver to unknown markets or sellers.

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While they may engage in direct online sales, it is in the best interest of the
manufacturer to also direct visitors to the distributors themselves, providing
another channel of opportunity for the distributor. In order to improve their
chances at getting that sale, a distributor should establish its own Web
presence. While online purchasing capabilities are most likely beyond the
resources of a distributor, a site gives the manufacturer something to direct
the customer to and provides another marketing opportunity to the
distributor.

Dealerships and distributorships can be great business opportunities for the

prospective entrepreneur. The benefits of established brands, no
manufacturing costs, and marketing and training support from a larger
company come at a price, but may mean the difference between success
and failure.

The dealership runs on Margins, max margin is in service (labor charges), if

your dealership (let’s say JSP kind of setup) gets more customers for body
work etc you are sure to see good margins.

Dealerships get good margins on ICE & similar accessories sold. They also
have tie ups with major distributors/ companies directly for bulk purchase.

Dealerships make a lot of money during some months of the year (say
December) & some other months they will not have much work.

Dealers also sometimes get troubled with some major "Callbacks" - too
many customers coming to the service center for simple part replacement.

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 Competitors

A competitor is no one but the business person or business that primarily

involves in the industry of one business person. For example, if HONDA is
the bike manufacturing company then the competitors of HONDA are such
as KTM, BAJAJ, and TVS so on. Likewise JSP AUTOMOTIVE, where I had
my internship project has competitors. They are as follows:

1) KTM
KTM-Sport motorcycle AG is an Austrian motorcycle manufacturer
owned by CROSS Industries AG and Bajaj Auto Limited. KTM was
formed in 1981 but traces its foundation as early as in 1934. In 1992 the
company was spun off from its parent company KTM when it ran into
financial troubles. KTM was split into four companies, all of which shared
the same "KTM" branding, and at present have many more subsidiaries
with the same branding. However, KTM-Sport motorcycle is most
commonly associated with the KTM brand, because it still continues the
flagship business of its parent company. KTM is known for its two-stroke
and four-stroke off-road motorcycles though in recent years it has
expanded into street motorcycle production and developing sports cars -
One of the rarer types of KTM sports cars is called the X-Bow with a
max top speed of 217 km/h (134.9 mph).

2) Bajaj
Bajaj Auto Limited is an Indian two-wheeler and three-wheeler
manufacturing company. Bajaj Auto manufactures and sells

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 motorcycles, scooters and auto rickshaws. Bajaj Auto is a part of the
Bajaj Group. It was founded by Jamnalal Bajaj in Rajasthan in the
1940s. It is based in Pune, Mumbai, with plants in Chakan(Pune), Waluj
(near Aurangabad) and Pantnagarin Uttarakhand. The oldest plant at
Akurdi (Pune) now houses the R&D centre 'Ahead'.Bajaj Auto is the
world's sixth-largest manufacturer of motorcycles and the second-largest
in India. It is the world's largest three-wheeler manufacturer.

3) TVS
TVS Motor Company is the third largest two-wheeler manufacturer in
India, with revenue of Rs.11, 516 Cr ($1.7 billion) in 2015-16. It is the
flagship company of the Rs. 40,000 Cr ($6 billion, in 2014-15) TVS
Group. The company has an annual sale of 2.5 million units and an
annual capacity of over 3 million vehicles. TVS Motor Company is also
the 2nd largest exporter in India with exports to over 60 Countries.

There are more competitors in the market for Honda and secondary
competitors are the local dealers inside the city. List of dealership
competitors are:

 JSP Honda
 MPL Honda
 KKG Motors
 SVM Honda
 KSN Honda

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 CHAPTER 4
FUNCTIONS OF
MARKETING DEPARTMENT
OF JSP HONDA

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 MARKETING

Marketing is the most important factor for JSP Honda without marketing
their will be no sales. JSP Honda is concentrating more on marketing as
JSP Honda is dealership firm without marketing there will be no sales.

Type of market

JSP Honda does a business to customer market (B2C). Business-to-

customer marketing refers to the tactics and best practices used to promote
products and services among consumers. B2C marketing differs from B2B
marketing in a number of key ways, one being that it often depends on
campaigns' abilities to invoke emotional responses, rather than solely
demonstrating value

JSP Honda continue to be creative with their B2C campaigns, such as

doing road trips building towers of gasoline cans to show how much fuel
you save with their bikes offered by them.

Since “consumers” refers to all individual buyers of products and services,

and no product is likely to appeal to every single consumer, B2C marketers
break consumers down into target segments. The goal is to match the
marketing message with the target consumer segment, since different
consumer segments will respond differently to various marketing method

B2C marketing is most effective with customers who have already had a
positive experience with the product or company. Happy customers are
more likely to buy more and to refer the product to their friends. Repeat
business is the key to a successful, growing business, and B2C marketing
practices work to build customer loyalty.

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Marketing Mechanism done by JSP HONDA
Promotion
Promotion is the important factor for JSP Honda that concerns the
message the firm sends out to potential consumers. It provides information
and persuades people, it creates awareness about Honda bikes, stimulates
demand and differentiates the product and influences public behavior.
Promotion won’t make a bad product that no one wants a success;
although the absence of promotion might that a good product is not
successful, promotion includes all the activities or tools that JSP Honda
uses to communicate or promote its bikes in the market.

Promotional tools or promotion mix

1. Personal selling
It involves personal confrontation either by phone or face to face, it is an
expensive and time-consuming tool of promoting the product.

2. Advertising
It is defined as a paid non-personal communication with a target (usually
mass) market. It is cost effective and can reach a large number of people. It
can also be used for long term or short term objectives.

There are various forms or mediums through which can

advertise
A. Broadcast Media:
• Television

• Radio

• Cinema

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B. Print media:
• Newspapers

• Magazines

• Leaflets

C. Outdoor media:
• Posters and billboards.

3. PUBLIC RELATIONS AND PUBLICITY:

Public relations are an umbrella term and refer to the totality of the
organization’s behavior with respect to the society in which it operates. The
maybe regarded as good or bad and is reflected in the company’s
reputation and image.

4. DIRECT MARKETING:
It is an interactive system of marketing which uses one or more advertising
media to affect a measurable response at any locations.

DIRECT MARKETING INCLUDES:

 Direct mail.
 Telemarketing.
 Door to door selling.
 Direct response advertising: ‘phone now’ or ‘fill in the coupon
ads’
 Home shopping of various types.

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5. SPONSORSHIPS:
The company has not left any stone untamed in sponsoring the major
events both globally and domestically. The biggest of all is the sponsorship
of the “WORLD CUP” for which Honda has the credit of being the only two-
wheeler company in the world to do so. Besides this, the company has also
sponsored events like “Master Golf”, television academy awards, etc,

6. DISCOUNTS/OFFERS:
The company has started giving discounts and other offers to the
customers on the purchase of a new bike, for instance, with the World Cup
offer, in which the consumer was to get a 1 gm gold coin with every
purchase.

But after all these schemes and benefits may be because of cut-throat
competition in the segment with heavyweight competition such as Bajaj,
kinetic, Yamaha, and TVS the company (HONDA) officially says:

“Our aim is to proactively and consistently deliver value to the customer.

We are giving back to the customer after becoming successful. Most
companies give discounts only when their products are not doing well in the
market. There is loss of competition in the segment, especially from Bajaj.
But the reason for Hero Honda’s success it that we are consumer-focused
while other companies such as Bajaj tends to be more competitor-focused.

PROMOTION POLICY:
 Company gives advertisement in different media vehicles time to
time. Like in TV. Magazines, newspaper, etc.
 Honda also organizes free service camps every year.
 Honda also takes art in trade fair.
 Honda with the help of ICICI Bank provides loan to the customers &
also provide easy monthly installment scheme to customers.
 Honda gives huge commission to their dealers.

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MARKETING MIX PLAN

Demographic Segmentation
• Income: Our customer survey indicates that the segments available for
the Honda bike are the people with monthly income of Rs. 10,000 and
above.

• Age: The main segmented group for the motorcycle are 18 years and
above.

• Occupation: All kinds of people are taken into account Such as Students,
professionals, Government Servants, etc.

Geographic Segmentation
The potential customers are basically from every regions of India.

Psychographic segmentation
People purchasing bikes are very stylish, brand conscious.

Behavioral segmentation
This segmentation is done considering user status, benefit wise.

Targeting
The proposed targeting people in the age group of 18 years and above with
a monthly income of Rs. 10,000 and above, who are adventurous,
enthusiasts and socializing and who are either students or retired
individuals or may be employed as professionals, government servants or
having their own business, but mostly male.

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Positioning

The image that Honda creates in the mind of the customers is the faith.
The ad shown by it says “Desh ka Dhadkan”. That means it’s a member of
the Indian family. It represents the Indian culture and society.

The objectives can be achieved through the implementation of suitable

marketing strategy by the organization. It is the marketing logic that is
formulated keeping in mind the needs of the consumers and also strategies
of the competitors. The 4 factors affect it are :

Product

The JSP Honda offer tangible product to the market, which includes the
product quality, design, features, branding. The product is perfectly
designed and the entire switch are well placed, which provides a good
riding condition.

The products offered in JSP HONDA are

 Bikes
 Scooters
 Helmets
 Merchandise products of Honda such as Honda t- shirts, key chains,
Honda jerkins, Honda wallet, Honda umbrella, Honda travel bags,
Honda caps etc.

The following are list of products offers to customer.

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PRODUCTS OF JSP HONDA PRODUCT DESCRIPTION

The Honda CBR250R is a single

cylinder sport bike, part of the CBR
series made by Honda since 2011. It
was primarily intended for the Thai
and Indian markets, but is sold
worldwide. On road price in Rs From
1,57,065 to 2,25,168.

The Honda CBR150R is a 150 cc

class sport bike, which is part of the
CBR series manufactured by Honda,
a subsidiary of A.P. Honda in
Thailand and Astra Honda Motor in
Indonesia. On road price in Rs From
1,22,362 to 1,48,087

The Honda CB hornet 160R is the

best bike instead other 150-160 cc
bikes. Very comfortable with good
looks and high performance. This
bike has good power torque and pick
up. On road price in Rs From 80,093
to 1,02,500

The Honda Unicorn is a motorcycle

developed by Honda Motorcycle &
Scooter India and introduced in 2005.
The motorcycle was built and
designed by the Honda R&D team
based in Osaka, Japan. On road price
in Rs. From 71,603 to 84,727.

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The Honda Shine is a motorcycle
developed by Honda Motorcycle &
Scooter India. It was introduced in
India in 2006. It is a 125 cc bike.
Honda claimed the Shine accelerated
from 0 to 60 km/h in 5.30 seconds
and had a top speed of 95–100 km/h.
On road price in Rs From 58,260 to
74,505.

The Honda Dream Yuga is a low-

cost 109 cc single-cylinder
motorcycle manufactured by Honda's
Indian subsidiary HMSI since 2012. It
was announced by Honda in January
2012 at the Delhi Auto Expo. On road
price in Rs From 54,380 to 63,138.

The Honda Livo is the next version

of Honda Twister With Improvement
in Look and Seat Style. The Livo is
equipped with 110cc engine with
HET, for better mileage. On road
price in Rs From 56,645 to 69,319.

The Honda CD 110 Dream Price -

Rs. 49,210 onwards. It is available in
2 versions.CD 110 Dream has a
mileage of 83 kmpl and a top speed
of 74 kmph.Honda CD 110 Dream is
available in 4 different colors : Black
with Grey Graphics, Black with Blue
Graphics ,Black with Green Graphics
and Black with Red Stripes.

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The Honda CBR 650F launched first
super bike with liquid cooled inline
four cylinder DOHC in India.On road
price in Rs From 7,39,084 to 9,00,268
Displacement (cc): 648.72
Fuel tank capacity (litre): 17.3.

The Honda Navi Price - Rs. 43,438

onwards (Ex-showroom). It is
available in 1 version. Navi has a top
speed of 81 kmph. Honda Navi is
available in 5 different colors : Patriot
Red, Shasta White, Black, Sparky
Orange and Hopper Green.

The Honda Activa 125 Price - Rs.

61,134 onwards (Ex-showroom).
Activa 125 has a mileage of 54 kmpl
and a top speed of 85 kmph. colors :
Black, Rebel Red Metallic,Midnight
Blue Metallic,Pearl Amazing White
and Mat Crust Metallic.

The Honda Activa 3G Price - Rs.

54,609 onwards (Ex-showroom). It is
available in 1 version. Activa 3G has
a mileage of 61 kmpl and a top speed
of 82 kmph. colors : Trance Blue
Metallic, Geny Grey Metallic, Pearl
Amazing White ,Black, Majestic
Brown Metallic and Imperial Red
Metallic.

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The Honda Dio Price - Rs. 52,876
onwards (Ex-showroom). It is
available in 1 version. Dio has a
mileage of 66 kmpl and a top speed of
93 kmph. Honda Dio is available in 5
different colors: Sports Red, Black,
Candy Palm Green, Candy Jazzy
Blue and Matte Grey.

The Honda Aviator Price - Rs.

56,033 onwards (Ex-showroom,
Mumbai). It is available in 2 versions.
Aviator has a mileage of 66 kmpl and
a top speed of 83 kmph colors : Pearl
Igneous Black, Strand Silver Metallic,
Rebel Red Metallic and Pearl
Sunbeam White.

The Honda Activa-i Price - Rs.

51,117 onwards (Ex-showroom,
Mumbai). It is available in 2 versions.
Activa-i has a mileage of 66 kmpl and
a top speed of 83 kmp .colors : Pearl
Amazing White, Black, Pearl Trance
Yellow, Candy Jazzy Blue, Imperial
Red Metallic and Orchid Purple
Metallic.

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Price
Pricing is an important component of marketing mix of firm. Determining
the prices of different products of a firm is a very difficult task of the
marketing manager. Price denotes money value of a product. It represents
the amount of money for which a product can be exchanged. In other
words, prices represent the money which the buyer pays to the seller for a
product price represents the exchange value of goods and services in
terms of money. Price is all around.

Price factor has very well been touched by the manufactures. The
manufactures (Honda) are charging very comparatively cheaper prices
then their competitors. The pricing strategy of the company is very set.
They price their product according to the cost of production and also by
keeping an eye on the price of the competitors of that segment & demand
of the product in the market.

The pricing strategies adopted by JSP Honda

The management of a firm will decide to fix the price at the competitive
level. This method is adopted by Honda because the bike market is highly
competitive.

The amount of money that customer pays for the product. The price of the
product should commensurate with its perceived value. If does not, the
buyers will turn to competitors products.

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Prices of Honda bikes varies every month

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Place
Includes the various activities the company undertakes to make the
product accessible and available to a large number of target customers.

 There are about many regional offices located in major cities

throughout the country.
 There are more than 10,000 dealers throughout the country.
 For the product distribution the company distributes its products
through authorized dealers.
 The variety products are easily available in showrooms.

Promotion
The fourth marketing mix tool, includes all the activities the company
undertakes to communicate and promote its products to the target market.
It consists of advertising, sales promotion, public relations, and direct and
online marketing. Promotion represents all of the communications that a
marketer may use in the marketplace. Promotion has four distinct elements
- advertising, public relations, Personal selling and sales promotion.

A certain amount of crossover occurs when promotion uses the four

principal elements together, which is common in any promotion. Advertising
covers any communication that is paid for, from television and cinema
commercials, radio and Internet adverts through print media and billboards.
One of the most notable means of promotion today is the Promotional
Product, as in useful items distributed to targeted audiences with no
obligation attached. This category has grown each year for the past decade
while most other forms have suffered. It is the only form of advertising that
targets all five senses and has the recipient thanking the giver.

Public relations are where the communication is not directly paid for and
includes press releases, sponsorship deals, exhibitions, conferences,
seminars or trade fairs and events. Word of mouth is any apparently
informal communication about the product by ordinary individuals, satisfied

54 | P a g e
customers or people specifically engaged to create word of mouth
momentum. Sales staff often plays an important role in word of mouth and
Public Relations.

The various promotional activities adopted by the Honda

Company
The company has 100crore rupees for its promotional activities out of
which 75% is sponsored by the company and 25% from the dealers.

They may sign a celebrity for its promotional activities in recent futures.

• The company provides six free services to its customers in

comparison to its competitors.

• The company provides good services facilities to its customers

through dealer’s service station.

• Dealers encourage its customers by giving discount, providing 0%

interest loan schemes, prices, coupons etc.

The various promotional activities adopted by Honda bikes

are as follows
 Credit & finance schemes
 Free services to the consumers
 Advertisements on Televisions, Newspapers, Magazines
 Road Shows
 Free trials for the new consumers

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Customer base

The customers of Honda, according to the Asst. Manager (Sales) are very
particular about the colors that Hero Honda offers in its wide variety of
scooters. He said that the customers are very much aware of their
purchase. Gone are the days when the sales people could influence the
buyer to buy a particular product. Almost 90-93% of the customer, whoever
comes to the showroom? Usually comes after he/she had made a decision.
So, the work of the sales person is less. The rest 7-10% have some doubts
with regard to the purchase of Honda. It is here, where the sales persons
have to do some work in convincing the customers about the scooter. The
sales person in this regard conveys the customers about the mileage,
strokes and also the parameters that the customers enquire. The results
from customer survey are as follows:

 Customers prefer because of their fuel efficiency.

 Customers prefer because of their performance.
 Customers prefer because they are value added product.
 Customers also prefer because they are stylish.

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 CHAPTER 5
LEARNING EXPERIENCE
AND
SKILLS ACQUIRED

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 LEARNING EXPERIENCE

My one month internship training with JSP automotive has enabled me to

learn quite a lot of things. After undergoing the internship I feel that I should
work as a staff at least for one year in a similar field which I propose to
promote before entering into a entrepreneur field. After gaining full
knowledge of the business and the nature and the mentality of the ground
level staff, I would start my own business.

I have learnt how to motivate the employees through

various meetings which takes places every morning to discuss their ups
and downs. These things show their positive attitude in their business.

I’ve gone through different environments, from visiting

customers and interacting with them to visiting other dealers and
showrooms. By visiting showrooms, I learnt some of the marketing
strategies and really it is an art to convince a person to purchase a product.
I had a good understanding with the employees of the firm who encouraged
me in whatever work I did. They motivated me to put in all my efforts.

I have also come to know about the various difficulties

faced by an employee and an employer in order to acquire this position.
Apart from their investments they shed their hard work towards the firm
which has made them the number one dealer. I will carry these strategies
when I become an entrepreneur.

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 SKILLS ACQUIRED

I got a chance to tame myself in professionalism. I acquired a lot of skills in

the 24 days internship training. I’ve put a list of the skills acquired with the
help of my internship program

 Excellent communication skills – I’ve learnt a lot on how to carry

out my speech and actions when I interact with different groups of
people such as, the customers, the employee, the higher level
people, etc. I also learnt to convey hospitality in speech.
 Initiatives – I’ve learnt to take initiatives on my own. There’s always
a driving force which makes me to do my work.
 Team work – My work guide used me to assume a few roles in a
team. That helped me in enriching my team building and team
working skills.
 Organizational skills – My internship has also taught me to organize
stuffs and do things in a planned manner.
 Self Confidence – During the course of my internship, I had
developed a sense of confidence in myself. I was able to perform my
duties well and good which drove my passion to a higher level.
 Creativity — Whenever my work guide assigns me duties, I find out
the best way to do it. It has taught me to be more creative.
 Technical Knowledge about dealership – I acquired a lot of
technical knowledge about the dealership. I gained a wide knowledge
on how it works, what are its advantages and disadvantages etc.,
 Knowledge about pricing – I got to know how the companies
determine the price of a product, on what basis it is fixed, what
percent of margin they add and more about the pricing of the product.
 Adjustability to the environment – I’ve acquired a sense of
adaptability and adjustability to work in different environments.

59 | P a g e
 Building customer loyalty – Customer satisfaction is the major
factor influencing the sale of products in JSP Automotive, I learnt how
to satisfy customers and build customer loyalty.
 Ability to handle complaints – I also gained knowledge on how to
respond to customers when they complain about our products and
what type of solution to provide.
 Process followed – Right from marketing to sales department, up to
delivery and after delivery, I understand the process followed in the
JSP Automotive.
 Ability to convince customer – My internship has taught me how to
convince customers when they are not satisfied with our products and
services.

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ANNEXURE

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