“A REPORT ON THE STUDY OF ORGANISATION

WITH FOCUS ON

MARKETING IN K. V. HONDA”

INTERNSHIP REPORT

Submitted to

GURU NANAK COLLEGE (AUTONOMOUS)

VELACHERY, CHENNAI 600042

In partial fulfilment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

A. Haribalaji

(Reg. no. 1913143036011)

Under the Guidance of

Dr. D. Shoba

DECEMBER 2020

1
 Internship completion letter

FORMAT FOR THE LETTER

TO whomsoever it may concern

This is to certify that "Name of the Student (Register Number)" has successfully
completed his/her internship on the "topic' for one-month period ( DD/MM/YY to
DD/MM/YY) with our company.

Authorised Signature

(Note: Should be in the Company Letter head with sign and seal)

2
 DECLARATION

I, A. Haribalaji(1913143036011), Second year MBA Student of Guru Nanak College

(Autonomous), have done an Internship report for a period of one month from 1st December
2020 TO 31st December 2020 on the title “A REPORT ON THE STUDY OF
ORGANISATION WITH FOCUS ON MARKETING IN K. V. HONDA”. I declare that
this is my original work and has not been submitted to any other university or institute for
award of any other diploma or degree.

PLACE:CHENNAI A. Haribalaji

DATE: (1913143036011)

3
 BONAFIDE CERTIFICATE

This is to certify that Internship Report entitled “A REPORT ON THE STUDY OF

ORGANISATION WITH FOCUS ON MARKETING IN K. V. HONDA” is the bonafide
work carried out by A. Haribalaji(1913143036011), Second year MBA, Under my guidance
and supervision, in partial fulfilment of the requirements for the award of the degree of
Master of Business Administration, of the Guru Nanak College (Autonomous),
Velachery, Chennai 600042.

Dr. M. K. Shakila Dr. D. Shoba

Dean-School of Management Project Guide

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 ACKNOWLEDGEMENT

I take this opportunity to thank our Principal Dr. M.G. RAGUNATHAN, M.Sc., M.Phil.,
Ph.D., FIAAB, FZSI, FSLSc, FSAB, FIAES, FICCB, FMSET, FIASN, PGDESD who
encouraged me throughout to do this Project Report.

I sincerely thank the Dean-School of Management, Dr. M. K. SHAKILA, M.B.A,

M.Sc.(Psy), M.Com, M.Phil., Ph.D., who encouraged me to proceed ahead with the work
and offered many invaluable suggestions for the betterment of this project and thereby acting
as a constant source of encouragement.

I extend my hearty thanks to Dr. V. UMA MAHESWARI MBA, Ph.D., the Head of the
Department, MBA for her continuous motivation.

I would also like to thank my guide Dr. D. SHOBA, MBA, M.Phil., NET, Ph.D., who
motivated and guided me for the successful completion of the Project Report. Words are not
enough to thank her for sacrificing her precious time in helping me.

I extend my sincere thanks to the company for giving me the opportunity to do my project
and my heartfelt thanks to Mr. DIWAKAR for the support and guidance.

Finally, I thank all my family members and friends who stood by me throughout the course of
the project.

A. Haribalaji

(1913143036011)

5
 TABLE OF CONTENTS

CHAPTER
TITLE PAGE NO.
NO.

1 INTRODUCTION 9-15

NEED FOR THE STUDY 14

SCOPE OF THE STUDY 14

OBJECTIVES OF THE STUDY 14-15

LIMITATIONS TO THE STUDY 15

2 BACKGROUND OF THE STUDY 16-35

INDUSTRY PROFILE 17-19

COMPANY PROFILE 20-22

PRODUCT PROFILE 23-24

ORGANISATION STRUCTURE 24-28

THEORIES RELATED TO THE TOPIC 29-35

6
3 ORGANISATION STUDY 36-42

FINDINGS ,SUGGESTIONS&
4 43-46
CONCLUSION

7
 CHAPTER – I

INTRODUCTION

8
What is Organisation?
Organisation is the process of identifying and grouping work to be performed, defining ad
delegating responsibility and authority and establishing relationships for the purpose of
enabling people to work most effectively together in accomplishing objectives.

Definition of Organisation:

According to Oliver Sheldon, “Organization is the process so combining the work which
individuals or groups have to perform with the facilities necessary for its execution, that the
duties so performed provide the best channels for the efficient, systematic, positive and
coordinated application of the available effort”.

MARKETING:

The term "marketing" covers a lot of different activities – all associated with selling your
company's products and services. Advertising is the most obvious marketing activity, but so
is consumer research, which better matches your product to consumer wants and needs.
Product design, also, is a form of marketing, as it helps match your company's products and
services to known customer needs.

FEATURES OF MARKETING IN AUTOMOBILE INDUSTRY:

1. Customer focus:

The marketing function of a business is customer-centred. It makes an attempt to study the

customer needs, and goods are produced accordingly. The business existence depends on
human needs. In a competitive market, the goods that are best suited to the customer are the
ones that are well-accepted. Hence, every activity of a business is customer oriented.

2. Customer satisfaction:

A customer expects some services or benefits from the product for which payment is made. If
this benefit is more than the amount paid, then the customer is satisfied. In the long run,

9
customer satisfaction helps to retain market demand. It helps achieve organizational
objectives. Customer satisfaction can be enhanced by providing value-added services, which
includes providing additional facilities at little or no extra cost.

3. Objective-oriented:

All marketing activities are objective oriented. Different objectives are fixed at different
levels, but the main objective is to earn profit from business along with the satisfac-tion of
human wants. Marketing activities undertaken by sellers make an attempt to find out the
weaknesses in the existing system, and measures are taken to improve the shortfalls so that
the objectives are achieved.

4. Marketing is both art and science:

Art refers to a specific skill that is required in marketing activities of any type of business.
Science refers to a systematic body of knowledge, based on facts and principles. The concept
of marketing includes a bunch of social sciences such as economics, sociology, psychology,
and law. It indicates market operations based on some principles. Hence, marketing is an art
as well as a science.

5. Continuous and regular activity:

Marketing is an activity designed to plan, price, promote and distribute products. At the same
time, it also addresses both the current and future consumers. Thus, it is a continuous process.
A marketer has to consistently monitor environment. This helps in coming up with new
products.

6. Exchange process:

Marketing involves exchange of goods, services, and ideas with the medium of money.
Exchange takes place between sellers and buyers. Most of marketing activities are concerned
with the exchange of goods. Functions such as distribution, after-sale services, and packaging

10
help in the exchange process. Channels of distribution and physical distribution play an
important role in the exchange process by creating place utility.

7. Marketing environment:

Economic policies, market conditions, and environmental factors, such as political,

technological, demographic, and international, influence marketing activities. Marketing
activities are inseparable from such environmental factors. A successful marketer needs to
adapt to these changing factors and adjust marketing strategies to suit new market
developments.

8. Marketing mix:

A combination of four inputs constitutes the core of a company’s marketing system—

product, price, place, and promotion. Marketing mix is a flexible combination of vari-ables.
They are influenced by consumer behaviour, trade factors, competition, and government
regulatory measures.

9. Integrated approach:

The marketing activities must be co-ordinated with other functional areas of an organization.
Functions such as production, finance, research, purchasing, storekeeping, and public
relations (PR) are to be integrated with marketing. This will help in achieving organiza-tional
objectives. Otherwise, it will result in organizational conflicts.

10. Commercial and non-commercial organizations:

With the societal marketing concept gaining importance, social marketers are finding useful
new ways of applying marketing principles. Com-mercial organizations are also adopting
cause-related marketing to strike long-term relations with consumers.

Business organizations such as educational institutions, hospitals, religious institu-tions and

charitable trusts have also found meaningful applications of marketing. Thus, marketing is
applicable to both business and non-business organizations.
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11. Precedes and follows production:

Identifying consumer needs and wants is the primary task of a marketing manager.
Production activities are adapted to these consumer needs. Thus, marketing precedes
production. Marketing helps in the distribution of the goods which follows production.
Hence, production and marketing activities are closely related to each other.

Advantages of Marketing in Business:

1. Marketing Widens the Market:

Marketing draws out the hidden wants of consumers, creates new demand, locates the
untapped areas, and finds out the possibilities of selling new products. It thus enlarges the
market and enables the producers to increase production and earn more profits.

2. Marketing Facilitates Exchanges in the Ownership and Possession of Goods and

Services:

It creates time, place and possession utilities for the goods and services. It is helpful to both
producers and consumers. Producers come to know about the specific needs and preferences
of the people and the customers about the products that manufacturers can offer.

3. Marketing Helps in Optimal Utilization of Resources:

As the marketing efforts widen the area of market, the producers can utilize their resources,
otherwise remaining partly utilized, to the maximum. This optimum use of resources reduces
the total cost per unit.

4. Marketing Accelerates Other Activities:

Because of marketing so many other activities such as banking, transport, insurance,

warehousing, etc. get a boost as they are needed more to help in the marketing process.

5. Marketing Increases the National Income:

National income is the sum total of goods and services that a nation possesses. The net effect
of all marketing efforts is a rise in production of existing industries, investment in new
industrial units and provision of more services. The nation becomes richer with the increase

12
in its national income and there is a rise in per capita income. The economy rises from
underdeveloped stage to developing stage and then marches towards a developed economy.

6. Marketing Raises the Standard of Living:

With the provision of more items of necessities, comforts, and luxuries, cheaper as well as
costly and with more services and amenities as its disposal, the community enjoys a higher
standard of living. Even the poorer sections of society find many more things within their
reach because of lowering of costs of commodities and services. Paul Mazur says, “marketing
is the delivery of a standard of living to society”. Prof. Malcom Me Nair added further that
“marketing is the creation and delivery of standard of living to society.”

7. Marketing Provides Gainful Employment Opportunities:

Marketing creates a climate for more production and services. It also results in more social
overhead as more roads, more warehousing facilities, more transport and communication,
more banks, more training and technical institutions, more manpower is needed for the same
and the avenues of employment increase. Moreover, marketing is a complex mechanism
involving a number of functions and sub-functions which call for different specialized
personnel for employment. It is estimated that 30 to 40 per cent of total population is engaged
in direct or indirect marketing activities.

8. Marketing Stabilizes the Economic Conditions:

Marketing not only sets the economy revolving but also provides steady and stable economic
conditions where all are happy. It bridges the gap between producer and consumers. It is a
connecting belt between the two wheels of the economy of a nation, i.e., the production and
the consumption. Marketing by balancing production with consumption, provides stable
prices, full employment, and a strong economy.

9. Marketing Acts as a Basis for Making Decisions:

An entrepreneur is confronted with many problems as to what, how, when, how much and for
whom to produce? In the past, there were lesser problems on account of local markets and
direct link between the producers and the consumers. But in modern times, marketing has
become very complex and tedious. It has emerged as a new specialized activity along with
production. As a result, producers are largely dependent upon marketing mechanism to
decide which, how when and how much to produce.

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10. Marketing Provides Maximum Satisfaction of Human Wants:

It serves as an effective link between the business and the society, removes hindrances of
knowledge, educates people, cultivates their minds, lures them to buy the best and thus
enables ultimately to get maximum satisfaction.

NEED FOR THE STUDY:

The need of the study is confined to K. V. Honda and their operations which are into the
same industry. The study is done only on company dealing with. The need of the study is to
understand the concepts of marketing in working environment and service is provided to gain
increased service satisfaction.

SCOPE OF THE STUDY:

To understand the concepts of logistics industry in terms of practical working and to glimpse
into how a real logistics working environment works and how the company gains customer
satisfaction, reduce cost, and increase efficiency in the transit of goods, ATC Global
Logistics Pvt Ltd., provides one stop solution for all logistics problems. The main scope of
the study is done to understand the efficiency of logistics. The study overall focuses on the
workings of each department and the efficiency of the services provided to the customers.

OBJECTIVES OF THE STUDY:

Primary Objective:

 To study the Organisation with special focus on Marketing in K. V. Honda

Secondary Objectives:

 To know customer preference while buying of Non-gear two-wheeler of Honda.

 To understand the marketing strategies followed by the
 To find out the factors that influence on customers when they are purchasing non gear
two-wheeler of Honda.
 To gain valuable insight into the two-wheeler sector.

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  To study the current trends in two-wheeler sector.

LIMITATIONS TO THE STUDY:

 The study has time limitation of One Month.

 The study is limited to K. V. Honda Aranthangi Branch.
 The study is conducted only on Marketing aspect.

15
 CHAPTER – II

BACKGROUND OF THE STUDY

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 INDUSTRY PROFILE

AUTOMOBILE INDUSTRY

Automobile industry, the business of producing and selling self-powered vehicles, including
passenger cars, trucks, farm equipment, and other commercial vehicles. By allowing
consumers to commute long distances for work, shopping, and entertainment, the auto
industry has encouraged the development of an extensive road system, made possible the
growth of suburbs and shopping centers around major cities, and played a key role in the
growth of ancillary industries, such as the oil and travel businesses. The auto industry has
become one of the largest purchasers of many key industrial products, such as steel. The large
number of people the industry employs has made it a key determinant of economic growth.

The Indian Automobile Industry is among the largest manufacturing industries in the world.
India emerged as the fourth largest exporter of passenger car after Japan, South Korea, and
Thailand.

The structure of the auto market has been changing at a faster pace along with the global
changes in the Industry. There are several global automobile companies who were averse to
come and invest in India ten years ago, now have kept India as a priority destination for their
investment. Along with the entry of multinational auto companies, the profile of domestic
auto companies too witnessed a structural change.

The stiff competition to access market prompted companies to go for different models with
differing qualities and efficiency. The market too expanded at a rapid pace with the entry of
soft financial assistance from several financial institutions to middle income households’
need to carefully plan their entry into emerging markets. Early commitment to a market often
results in first mover advantages that are difficult to replicate. On the other hand, later
entrants have the opportunity to learn from the mistakes of the first entrant.

The Indian automobile market offers useful lessons in this context. In the 1990s, the Indian
Government removed several restrictions in a bid to attract foreign investors into the
automobile industry. Among the first to enter was Daewoo of South Korea, with its model
Cielo, targeted at the upper end of the market. Other MNCs such as Ford and General Motors
also entered the Indian market, followed by Hyundai, Honda, Toyota, Volkswagen etc.

17
Most MNCs began their operations in India as joint ventures with local partners. Examples
include Suzuki, G.M, Ford, and Daewoo. With the exception of Suzuki, these joint ventures
have become fully owned subsidiaries of the foreign partners. In all these cases, the local
partners have just not had enough resources to chip in whenever the equity base has been
expanded. Consequently, the foreign partners have pumped in the additional capital and
raised their equity stakes. With the liberalization of the India economy, the Rs 18,500 crore
Indian car market is being opened up to foreign investors. Several companies are setting up or
have already set up operations in India to cater to the Indian market. There are several
strategies by which a foreign enterprise can set - up Indian operations. This module aims to
give the various entry options available to a foreign investor, especially for foreign direct
investment. This module does not deal with portfolio investments.

Broadly, entry strategies may be classified into two major types :-

1. A foreign investor may directly set up its operations in India through a branch office or a
representative office or liaison office or project office of the foreign Company ; or

2. It may do so through an Indian arm i.e., through a subsidiary company set - up in India
under Indian laws.

Generally, setting up operations through an Indian arm is advisable, especially if the quantum
of investment is huge.

The impact of India’s initiatives in economic liberalization and globalization (post 1991) is
most apparent in the automotive sector. Automotive industry is a key driver of economic
growth contributing around four to five percent to the Indian GDP. Introduction of reforms
and entry of international companies has intensified competition in the Indian automotive
sector.

This has resulted in the transformation of a seller’s market (created mainly due to the Indian
government’s protectionist policies) into a buyers-market. The changing structure of this
industry has posed many challenges and opportunities to the market participants.

Previously, Indian automotive market was characterized by weak air pollution regulations. In
addition, low labour cost of maintenance and the psyche of Indian consumer to delay the
discarding of the old vehicle reduced the scrap rate. All these factors resulted in prolonged
operational existence of vehicle on Indian roads.

18
The benefit of this practice is the comparatively higher revenues for automotive component
suppliers, due to increased demand in the aftermarket. But recent pronouncement of
Government of India to prohibit polluting vehicles in the National Capital Region (NCR) is
likely to force the old polluting vehicles off road. This will reduce the average life span of
vehicles on road and the overall impact would be reduced per vehicle parts consumption.

Two wheelers generate the highest volumes and are more popular in rural and semi urban
markets primarily due to lower income levels and poor road conditions. Therefore, these
could be classified as entry-level vehicles. Within two-wheeler segments, progressively
mopeds are likely to be replaced by motorcycles. With the growth in the family income of
these rural and semi-urban buyers and the option of numerous used cars, it is expected that a
significant shift would take place from two wheelers (mainly scooters) to four wheelers.

Lucrative finance schemes have made the purchase of mid-sized cars really affordable. The
present owners of the small car are likely to graduate to mid-size cars mainly due to declining
importance of small car as status symbol and the marginal increment in repayment instalment
in the finance options.

Good performance of the economy has led to higher all-round growth leading to high GDP
growth of 8%. Excise duty reduction on passenger vehicles helped to reduce the ultimate
price to the customer. Brisk activities on infrastructural development will give a boost to the
automobile industry. Softening of interest rates and improved financing of second-hand
vehicles have made the purchasing of cars financially viable.

Availability of finance in rural and semi-urban areas have led the low-end customers to put
money in the purchase of vehicles. Emergence of India as a manufacturing hub for the
automobile industry is a good sign for the country’s future prospects.

The automotive industry performance is closely linked to industrial growth. It is hoped that
industrial growth would be around 7 per cent during the year 2003-04 as against around 6.5%
last year. Agriculture output during the year 2003-04 increased by over 10% as compared to
(-)3.2% in the previous year.

Today we are fourth largest economy (USD 2.5 trillion) in the world after USA, Japan, and
China in terms of purchasing power parity. The outlook for the year 2004-05 is promising
and it is expected that the current growth rates of GDP and industrial output will be
sustainable, which would ensure robust growth in the automotive sector.

19
 COMPANY PROFILE

K. V. HONDA

Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI), the only Honda in Indian 2Wheeler
industry is the 100% subsidiary of Honda Motor Company Ltd., Japan, started its Indian
operations at Manesar (District Gurgaon, Haryana) in May 2001. Despite being one of the
youngest players in the Indian two-wheelers market, Honda’s consistency of providing high
quality products and services has won the hearts of over 46 million happy Indian customers
and catapulted HMSI to become India’s 2nd largest two-wheeler company today.

The journey started with its first model ‘Activa’ in 2001 which gave a new life to scooter
segment and stays strong India’s favourite scooter even 20 years on. And today, Honda
provides pure Joy of Riding to customers through its diverse portfolio of two-wheelers going
up to 1800cc. From the trusted 110cc motorcycle for daily commuting, to an array of scooters
that merge the best of technology with convenience; from fun-to-ride dynamic sports models
to iconic global legends for discerning enthusiasts… Honda is led by its challenging spirit to
enrich the lives of its customers with innovative, technology enriched two-wheelers.

Committed to Make in India, first production facility at Manesar (Haryana) started operations
in 2001. A decade later in 2011, Honda expanded to its 2nd plant at Tapukara (Dist. Alwar,
Rajasthan) with 1.2 million units’ annual production capacity. In 2013, came the 3rd plant at
Narsapura, in the Southern state of Karnataka; with 1.8-million-unit annual capacity.
Continuing to rapidly expand to meet customer demand, Honda 2Wheelers India started
operations of its new 4th manufacturing facility – Honda’s scooter-only plant in Vithalapur
(Gujarat) in FY’2015-16. This was followed by new capacity infusion at its Karnataka plant
in FY’2017-18, taking Honda 2Wheeler India’s combined capacity to 6.4 million units
annually.

Parallely, matching its pace with The Power of Dreams of billion Indians, Honda has rapidly
expanded its sales and service network. Today, Honda 2wheelers India is reaching closer to
its customers and serving them through its 6,200+ customer touchpoints across India.

20
In its 20 years’ journey, Honda 2Wheelers India has won nearly 200 prestigious recognitions
for its benchmark products, technology, manufacturing excellence, in addition to multiple
laurels like Most Trusted Two-Wheeler Brand etc.

More than business, as a responsible corporate, road Safety is Honda’s top priority globally.
In India too, Honda has educated over 36 lac individuals of all age groups on safety riding
with special focus on women & kids through its 14 Traffic Training parks & 4 Safety Driving
Education Centres across India.

Universal Passion of Honda

・Value proposition:

To provide products and services that expand people’s dreams and potential.

・Corporate attitude:

Our approach to taking on new challenges while being driven by a strong passion to realize
our value proposition.

Strengths of Honda

Existing strengths of Honda:

 Strength in manufacturing a broad range of products including motorcycles,

automobiles, and power products.
 Strength in earning 28 million customers per year in markets around the world.

New strengths:

Our ability to create solutions, which includes both Mono-zukuri, the art of making things,
and Koto-zukuri – which is creating new experiences through brand storytelling about the art
of making things.

Vision Statement:

The universal vision of Honda is to “serve people worldwide with the joy of expanding their
life’s potential.”

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Direction of Initiatives:

 Creating value for "mobility" and " daily lives"

We will focus on three areas, namely mobility, robotics, with a focus on AI, and energy
solutions in order to provide people with the joy and freedom of mobility and the joy of
making their lives better.

 Accommodate the different characteristics of people and society.

We will strive to further expand the joy of people by offering products and services that are
optimized based on Honda’s desire to “utilize technology to help people, while putting people
at the core.”

 Toward a clean and safe / secure society

Striving to become No. 1 in the areas of the environment and safety, we will invest more
resources in these areas. And we will strive to become a company that leads the effort to
realize a carbon-free and collision-free society.

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 PRODUCT PROFILE

K. V. HONDA

K. V. Honda deals with Motorbikes, Scooters, Mopeds and Sports bikes.

MOTORBIKES:

A motorbike, on the other hand is used to describe a small, lightweight motorcycle. ... A bike
can be anything which moves on two wheels like a moped, a bicycle, an electric bike, a
scooter, or a motorcycle.

 CB Unicorn 160
 SP 125
 CB Shine SP
 CB Shine
 Honda Livo
 Honda X Blade
 Honda Hornet
 Honda CD110 Dream DX

SCOOTERS

A scooter or motor scooter has a step-through frame and a platform for the rider's feet.
Elements of scooter design were present in some of the earliest motorcycles, and scooters
have been made since at least 1914.

 Cliq
 Dio
 Honda Aviator
 Activa
 Activa-i
 Activa-HET
 Activa-3G
 Activa-4G
 Activa 5G
 Activa-6G

23
  Activa 125
 Grazia

MOPED:

A moped (as any light motorcycle) is free to use but still requires a driver’s license. The
moped is legally defined as a two- or three-wheeled vehicle with engine displacement of no
more than 50 cc (3.1 cu in) and maximum speed of no more than 50 km/h (31 mph).

 NAVi 110

SPORTS BIKES

A sport bike, or sports bike, is a motorcycle optimized for speed, acceleration, braking, and
cornering on paved roads, typically at the expense of comfort and fuel economy by
comparison with other motorcycles.

 GoldWing
 CB1000R
 CBR650F
 CBR1000RR
 CBR 250R
 Africa Twin
 CB300R
 Honda CB350

24
 ORGANISATIONAL STRUCTURE

An organizational structure is a system that outlines how certain activities are directed in
order to achieve the goals of an organization. These activities can include rules, roles, and
responsibilities. The organizational structure also determines how information flows between
levels within the company.

Types of Organisational structure:

1. Line Organisation:

Line organisation is the simplest and oldest form of organisation structure. It is called as
military or departmental or scalar type of organization. Under this system, authority flows
directly and vertically from the top of the managerial hierarchy ‘down to different levels of
managers and subordinates and down to the operative level of workers.

Line organisation clearly identifies authority, responsibility, and accountability at each level.
The personnel in Line organization are directly involved in achieving the objectives of the
organization.

2. Line and Staff Organization:

This type of organization structure is in large enterprises. The functional specialists are added
to the line in line and staff organization. Mere, staff is basically advisory in nature and
usually does not possess any command authority over line managers. Allen has defined line
and staff organization as follows.

“Line functions are those which have direct responsibility for accomplishing the objectives of
the enterprises and staff refers to those elements of the organization that help the line to work
most effectively in accomplishing the primary objectives of the enterprises.”

In the line and staff organisation, staffs assist the line managers in their duties in order to
achieve the high performance. So, in an organization which has the production of textiles, the
production manager, marketing manager and the finance manager may be treated as line
executives, and the department headed by them may be called line departments. On the other
hand, the personnel manager who deal with the recruitment, training and placement of

25
workers, the quality control manager who ensure the quality of products and the public
relations manager are the executives who perform staff functions.

3. Functional Organisation:

The functional organisation was evolved by F.W. Taylor while he was working as a foreman.
He suggested eight foremen, four in factory and four in planning division as under.

Factory Division:

(i) The gang boss,

(ii) The speed boss,

(iii) The inspector, and

(iv) The maintenance or repair boss.

Planning Division:

(i) Route Clerk,

(ii) Instruction card clerk,

(iii) Time and cost clerk, and

(iv) The shop disciplinarian.

He evolved his functional organisation system, which consists in “so dividing the work of
management that each man, from the assistant superintendent down, shall have as few
functions as possible to perform.”

According to Terry, “Functional organisation refers to the organisation which is divided into
a number of functions such as finance, production, sales, personnel, office and research and
development and each of functions are performed by an expert”. Line authority, staff
authority and functional authority as a third type of authority are in this type of organisation.

4. Project Organisation:

This organisational structure is temporarily formed for specific projects for a specific period
of time, for the project of achieving the goal of developing new product, the specialists from
different functional departments such as production, engineering, quality control, marketing

26
research etc., will be drawn to work together. These specialists go back to their respective
duties as soon as the project is completed.

Really, the project organisation is set-up with the object of overcoming the major weakness
of the functional organisation, such as absence of unity of command, delay in decision-
making, and lack of coordination.

5. Matrix Organisation:

According to Stanley Davis and Paul Lawrence matrix organisation is “any organisation that
employs a multiple command system that includes not only the multiple command structure,
but also related support mechanism and an associated organisational culture and behaviour
pattern.”

A matrix organisation, also referred to as the “multiple command system” has two chains of
command. One chain of command is functional in which the flow of authority is vertical.

27
 ORGANISATIONAL STRUCTURE OF K. V. HONDA

(ARANTHANGI BRANCH)

Branch
Manager

Finance Human
Sales Head
Head Resources Head

Executive Sales Associate Sales Senior Finance Junior Finance

Representative Representative Executive Executive

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 THEORIES RELATED TO THE STUDY

Marketing and Promotion

Marketing:

Marketing is the process of getting potential clients or customers interested in your products
and services. The keyword in this definition is "process"; marketing involves researching,
promoting, selling, and distributing your products or services.

Marketing Mix:

The term 'marketing mix' is a foundation model for businesses, historically centered around
product, price, place, and promotion. The marketing mix has been defined as the "set of
marketing tools that the firm uses to pursue its marketing objectives in the target market".

4 P’s of Marketing:

The four Ps of marketing are the key factors that are involved in the marketing of a good or
service. They are the product, price, place, and promotion of a good or service. Often referred
to as the marketing mix, the four Ps are constrained by internal and external factors in the
overall business environment, and they interact significantly with one another.

 Product

Product refers to a good or service that a company offers to customers. Ideally, a

product should fulfil an existing consumer demand. Or a product may be so compelling
that consumers believe they need to have it and it creates a new demand. To be
successful, marketers need to understand the life cycle of a product, and business
executives need to have a plan for dealing with products at every stage of their life
cycle. The type of product also partially dictates how much businesses can charge for it,
where they should place it, and how they should promote it in the marketplace.

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 Price

Price is the cost consumers pay for a product. Marketers must link the price to the
product's real and perceived value, but they also must consider supply costs, seasonal
discounts, and competitors' prices. In some cases, business executives may raise the
price to give the product the appearance of being a luxury. Alternatively, they may
lower the price so more consumers can try the product.

Marketers also need to determine when and if discounting is appropriate. A discount

can sometimes draw in more customers, but it can also give the impression that the
product is less exclusive or less of a luxury compared to when it is was priced higher.

 Promotion

Promotion includes advertising, public relations, and promotional strategy. The goal of
promoting a product is to reveal to consumers why they need it and why they should
pay a certain price for it.

Marketers tend to tie promotion and placement elements together so they can reach
their core audiences. For example, In the digital age, the "place" and "promotion"
factors are as much online as they are offline. Specifically, where a product appears on
a company's web page or social media, as well as which types of search functions
trigger corresponding, targeted ads for the product.

 Place

When a company makes decisions regarding place, they are trying to determine where
they should sell a product and how to deliver the product to the market. The goal of
business executives is always to get their products in front of the consumers that are the
most likely to buy them.

This may refer to placing a product in certain stores, but it also refers to the product's
placement on a specific store's display. In some cases, placement may refer to the act of
including a product on television shows, in films, or on web pages in order to garner
attention for the product.

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Different Marketing Strategies:

Marketing is not just one single strategy, but rather a combination of many different
techniques and tactics.

 Marketing Plan
 Digital Marketing
 Direct Marketing
 Email Marketing
 Mobile Marketing
 Viral Marketing
 Performance Marketing
 Inbound Marketing

Types of marketing campaigns

The following are several types of marketing campaigns you can use to achieve various
marketing goals within organization:

 Traditional media campaign

 Seasonal push campaign
 Product launch campaign
 Brand awareness campaign
 Rebranding campaign
 Brand launch campaign
 Contest marketing campaign
 Email marketing campaign

Promotion:

Promotion means spreading information about a product, service, or issue. Promotion as part
of marketing means spreading information about a product, product line, brand, or company.
Promotion includes: Publicity and public relations and Advertising. Promotion is also one of
the elements in the promotional mix or promotional plan. These are personal selling,

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advertising, sales promotion, direct marketing publicity and may also include event
marketing, exhibitions, and trade shows. A promotional plan specifies how much attention to
pay to each of the elements in the promotional mix, and what proportion of the budget should
be allocated to each element.

Types of Promotional Activities:

1. Personal Selling

This is the face-to-face communication process that occurs between a customer and the
store’s sales representative. In addition to promoting products personal selling strives to build
long term relationships with the customer. Generally, it is an expensive option when you
consider the costs associated with employing staff. The store’s image will influence the level
of personal selling and service it offers, and this is usually reflected in the store’s pricing
policy.

2. Advertising

Advertising is any form of paid, non-personal presentation by an identified sponsor. It

incorporates television, radio, print and digital methods. This form of promotion is the most
common communication strategy used by retailers. While it can be expensive, if used
sensibly advertising can be a very effective tool. It is critical that the message and the
medium reflect the store’s image and be appropriate to the target market.

3. Sales Promotion

Sales promotions are designed to supplement and extend other promotional activities (usually
advertising). Sales promotions generally offer short-term incentives to encourage the
customer to purchase a specific product within a designated time. Sales promotion activities
include:

 In store displays (Promoting a single brand or product range)

 Free samples (Giving customer’s sampler packs of a new product)
 Brand promotional products (Cooler bags or T-shirts).

The store’s merchandising efforts are part of its sales promotion activities and frequently
overlap into the store’s advertising efforts.

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In store promotional displays can be an effective merchandising strategy that builds product
sales.

4. Direct Marketing

These are generally non-personal efforts to gain a direct response from the customer. Direct
marketing tends to use interactive communication with the customer i.e., television
advertising supported by a plea to ‘call now’. While, classed as non-personal, they can
incorporate a personalised message or salutation. Direct mail is a commonly used example of
this strategy.

5. Publicity

Publicity is a non-personal form of promotion that is designed to build a positive attitude

towards the company. The retailer does not pay for this form of promotion and frequently has
no control over the end message. This can lead to the message being distorted or even
presented in a less than positive light.

6. Public Relations

Public relations are the planned efforts of a company to influence the attitudes and opinions
of existing and potential customers. The focus of public relations is to ‘build a good public
image’ or to head off negative rumours or events.

Unlike publicity, the promotional messages created by public relations efforts are paid for.
The retailer has total control over the message, who will receive it and where it will be
delivered. The release of information designed to create good publicity is a function of public
relations.

While there are many types of promotional activities available to the retailer, each has a
limited impact if it’s not relevant to the customers that you are trying to communicate with.
The first step in this process is to identify your customers and their needs. This usually
requires some form of research and data collection.

After – Sales Service:

After sales service refers to various processes which make sure customers are satisfied with
the products and services of the organization.

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The needs and demands of the customers must be fulfilled for them to spread a positive word
of mouth. In the current scenario, positive word of mouth plays an important role in
promoting brands and products.

After sales service makes sure products and services meet or surpass the expectations of the
customer.

After sales service includes various activities to find out whether the customer is happy with
the products or not? After sales service is a crucial aspect of sales management and must not
be ignored.

Why after Sales Service?

After sales service plays an important role in customer satisfaction and customer retention. It
generates loyal customers.

Customers start believing in the brand and get associated with the organization for a longer
duration. They speak good about the organization and its products.

A satisfied and happy customer brings more individuals and eventually more revenues for the
organization.

After sales service plays a pivotal role in strengthening the bond between the organization
and customers.

SWOT Analysis

A SWOT analysis is a compilation of your company's strengths, weaknesses, opportunities,

and threats. The primary objective of a SWOT analysis is to help organizations develop a full
awareness of all the factors involved in making a business decision.

Why SWOT Analysis?

SWOT is an important acronym for individuals and organizations alike in the business world
and it stands for Strengths, Weaknesses, Opportunities and Threats. SWOT analysis is a
useful technique to assess these four attributes which play a crucial role in an organization.

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Strengths and weakness refer to internal factors such as (current processes, human resources,
physical and financial resources etc.) while opportunities and threats focus on external factors
such as (market trends, economic trends, political and economic regulations etc.).

Advantages of SWOT Analysis:

The main advantages of conducting a SWOT analysis is that it has little or no cost – anyone
who understands your business can perform a SWOT analysis. You can also use a SWOT
analysis when you don't have much time to address a complex situation. This means that you
can take steps towards improving your business without the expense of an external consultant
or business adviser.

Another advantage of a SWOT analysis is that it concentrates on the most important factors
affecting your business. Using a SWOT, the following can be analysed.

 understand your business better.

 address weaknesses
 deter threats.
 capitalise on opportunities.
 take advantage of your strengths.
 develop business goals and strategies for achieving them.

Importance of SWOT Analysis:

A SWOT analysis helps evaluate where a company stands in a competitive market and what
steps need to be taken for further strategic planning, helping decision makers draw a future
roadmap for the company.

 It analysis helps organizations get visibility on their current status, letting them
understand and measure overall business performance.
 It lets a business analyse their strength, which in turn can help them better penetrate
the market to meet business targets.
 It lets organizations get visibility on their weaknesses and potential areas of
improvement. This information helps them plan for and mitigate future roadblocks,
ensuring long term growth of business.
 By leveraging its SWOT analysis, a business can create a strategic plan to meet
desired objectives and adapt to changing market conditions.

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 CHAPTER – III

ORGANISATION STUDY

36
 MARKETING AND PROMOTION

Marketing Strategies followed by K. V. Honda

 Digital Marketing: digital marketing is the discipline of marketing which focuses on

developing a strategy solely within the digital environment.
 Direct Marketing: direct marketing is a type of campaign based on direct and two-
way communication that seeks to trigger a result by a specific audience.
 Email Marketing: Email Marketing is one of the most profitable and effective
techniques in terms of return. Naturally, it consists of sending emails to your
audience; therefore, make sure to also define your segments well.
 Mobile Marketing: Mobile Marketing is a broad concept which brings together all
marketing campaigns and actions focused exclusively on mobile platforms (i.e.,
smartphones and tablets).
 Viral Marketing: Having something go viral is every company’s dream. Viral
Marketing is like a virus; it wildly spreads from one person to the next and is capable
of going incredibly far.

Types of Marketing Campaign followed by K. V. Honda

1. Traditional media campaign

A traditional media campaign is one that relies on traditional media outlets to increase brand
awareness and/or promote a product or service. Common traditional media outlets used for
this type of campaign include TV, print advertising, radio, and direct-mail advertising.

2. Seasonal push campaign

A seasonal push campaign is a campaign used to promote seasonal sales, products, or

services. This type of campaign is frequently used by companies that experience a seasonal
influx of business such as retail chains and restaurants.

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3. Product launch campaign

Launching a new product often involves marketing campaigns aimed at spreading awareness
of the product and why customers need it. A product launch campaign is executed by the
manufacturer in coordination with any distribution partners.

4. Brand awareness campaign

A brand awareness campaign is one in which marketing efforts focus on building or

strengthening the awareness of a company's brand. Larger brands may implement regular
brand awareness campaigns to maintain their popularity.

5. Rebranding campaign

A rebranding campaign is when a company uses marketing to promote a change such as a

new company name, logo, or merger with another organization. This type of marketing
campaign is also used by companies that have fallen out of favor with their target audiences
or that wish to make a comeback in their industry.

6. Brand launch campaign

Similarly, to a product launch campaign, a brand launch campaign is used when a company
has created a new brand and wants to increase awareness of it.

7. Contest marketing campaign

Contest marketing campaigns are not a new concept but have become increasingly popular
thanks to social media. This type of campaign can encourage new organic website traffic and
spread awareness of a company and its products.

8. Email marketing campaign

Email campaigns are used by companies to keep in contact with current customers and
inform them of sales, coupons, discounts and new products or services.

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4 P’s of Marketing Mix of K. V. Honda

Product

There is huge product portfolio under the brand name of Honda. This includes cars and
motorbikes. All the products are represented through the logo of Honda which is the identity
of the company worldwide. The design of the bikes is also kind of representatives of the
brand as they all possess some element that identifies with the brand identity. Honda's
automobiles are equipped with high quality engine and other parts. Their products and the
features offered through them is the reason Honda has been extremely successful in the
global market and has gained its due share in the market.

Price

The best part about Honda automobiles is that they come in various forms and prices. Not all
products are targeted towards a specific group and thus people belonging to different Income
groups are able to afford the brand. Each brand is specifically focusing on some quality and
then the price is determined accordingly. Some of their luxury cars have premium prices and
are thus targeted towards a specific niche.

Place

Honda bikes are now available worldwide and are thus present in almost every corner of the
world: Mostly they are sold through their official outlets and are widely available in the
markets. In terms of the placement in the minds of the consumers, the consumers view the
brand as providing products that are comfortable. The brand is not viewed as a premium or
luxurious brand but as a reliable and comfortable brand.

Promotions

Honda is mainly known in the market as a brand providing quality and innovation Honda has
a few of its products advertised through TVCS. Through these promotions, Honda has aimed
of building a brand image of being a reliable and Eco-friendly brand. Other than that Honda
Invests in print advertising as well. These promotion efforts vary from one region to another
depending on what works for a certain country Moreover, as the needs of the markets digital
marketing as well.

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 AFTER SALES SERVICE IN K. V. HONDA

Following are a few steps for good after sales service done by the company:

 Updating the customers about the nature of after sales service.

 Updating the customers about the transit of the goods.
 Following up with the delivery team to ensure timely delivery.
 Following up on new customer or installation.
 Fast after sales service post complaint.

AMC (Annual Maintenance Service)

AMC stands for Annual Maintenance Contract. It is also known as Annual Maintenance
Charges. It is offered by all manufacturers after sales. It is the term that relates the buyers and
the suppliers. The manufacturer company provides the maintenance service to their buyers
for their valuable products. This service of maintenance may be chargeable or free of charge
according to the contract held.

Free Service:

Free services mean servicing with free of labour cost. Mostly when you purchase a new
vehicle, OEM(original equipment manufacturer like Honda) offer 3–4 free servicing during
warranty period/ 1 year. During these period, customer has to pay for parts’ cost during
scheduled servicing and labour for servicing (approximately Rs.300/-) is non-chargeable.
Dealers do charge extra labour charge for any other work than the scheduled ones.

After Sales Service Techniques

 Sales Professionals need to stay in touch with the customers even after the deal. Never
ignore their calls.
 Call them once in a while to exchange pleasantries.
 Give them the necessary support. Help them install, maintain, or operate a particular
product. Sales professionals selling laptops must ensure windows are configured in

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 the system and customers are able to use net without any difficulty. Similarly,
organizations selling mobile sim cards must ensure the number is activated
immediately once the customer submits his necessary documents.
 Any product found broken or in a damaged condition must be exchanged immediately
by the sales professional. Don’t harass the customers. Listen to their grievances and
make them feel comfortable.
 Create a section in your organization’s website where the customers can register their
complaints. Every organization should have a toll-free number where the customers
can call and discuss their queries. The customer service officers should take a prompt
action on the customer’s queries. The problems must be resolved immediately.
 Take feedback of the products and services from the customers. Feedback helps the
organization to know the customers better and incorporate the necessary changes for
better customer satisfaction.
 Ask the customers to sign Annual Maintenance Contract (AMC) with your
organization. AMC is an agreement signed between the organization and the customer
where the organization promises to provide after sales services to the second party for
a certain duration at nominal costs.
 The exchange policies must be transparent and in favour of the customer. The
customer who comes for an exchange should be given the same treatment as was
given to him when he came for the first time. Speak to him properly and suggest him
the best alternative.

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 SWOT Analysis K. V. HONDA

1. High costs and prices.

1. Competence in Engine Manufacturing.
2. Low investments in Research and
2. Diversified Product Portfolio.
Development.
3. Dominant in motorcycle and engine
3. Less awareness among Aranthangi
leading to high brand awareness.
Branch.
4. Strong Position in motocycle brand.

SWOT Analysis

1. Intense competition can threaten to

1. Huge potential for sales in the
decrease sales and profitibility.
developing markets.
2. Increase in use of public transport
2. Global automotive industry growing at
modes by people.
a steady rate.
3. Environmental and global regulations
by governments.

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 CHAPTER – IV

FINDINGS, SUGGESTIONS & CONCLUSION

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 FINDINGS

From the study, the following findings are listed:

 Most customer, prefer Non-ger vehicle from Honda because of the design and
comfort level.
 They provide best AMC service and After Sales Service to their customers and also
provide services and maintenance at low cost with best quality.
 The company uses technology like mobile application and softwares for their
customer service and for their transaction processes which reduces human error and
also saves time.
 The company follows different marketing strategy like providing seasonal offers
(Christmas offer, New Year Offer) to their customers for increasing sales.
 There are increased sales in K. V. Honda with respective to Aranthangi Branch as
compared to other showrooms in the same area.

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 SUGGESTIONS

From the study the following suggestions are observed:

 Honda should introduce a low-price moped.

 For the promotion, company show make roadshow that will increase the sales. The
company should give more concentrate on the advertisement.
 Honda Company should implement a new strategy to reduce the competition and lead
into the bike market, as people expect more mileage per kilometre, company should
increase the mileage of the Honda Moped.
 Honda should make a sports looks in moped so that male influenced to purchase.
 Honda give instant delivery of Activa BS6 to customers and not charged on price to
customers.
 The Company can also provide job opportunities for women in sales representative
field with respective to Aranthangi branch.

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 CONCLUSION

Marketing is the most exciting of all business sports. It is the heartbeat of every successful
business. It is continually changing in response to the explosion of information, the expansion
of technology, and the aggressiveness of competition, at all levels and everywhere. All
business strategy is marketing strategy. The ability to think clearly and well about the very
best marketing strategies, and to continually change and upgrade activities, is the key to the
future of your business.

Sales and Marketing strategy is your plan for reaching, engaging, and converting target
prospects into profitable customers. It’s the charter that guides Marketing and Sales in their
daily activities, helping them clarify shared objectives and how to achieve them.

The marketing department tends to bear responsibility for raising awareness about a product
and generating high-quality leads for a sales team. A “marketing-qualified lead” is a lead that
meets certain criteria set forth by a marketing department. A “sales-qualified lead” adds to
the initial stipulations set forth by marketing to help find the highest value prospects.

At times, a sales department may complain that marketing leads do not meet the standard set
forth by the sales team. However, the potential for conflict also represents an opportunity for
collaboration. The more effectively the two teams can share ideas, the better aligned their
definitions are likely to be.

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BIBLIOGRAPHY

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Sources include:

 Journals
 Referrals
 Books –
1. Principles and Practice of Marketing – Dr. Amit Kumar
2. Marketing Strategies & Management – Makarand Upadhyaya
3. A framework of marketing management – Philip Kotler
4. Marketing Ethics – George G Brenkert
5. Marketing Management - Rajan Saxena

WEBSITES:

 https://www.managementstudyguide.com/after-sales-service.htm
 https://www.honda2wheelersindia.com/
 https://smallbusiness.chron.com/examples-marketing-communications-organizational-
structures-69884.html
 https://en.wikipedia.org/wiki/Advertising
 https://en.wikipedia.org/wiki/Marketing
 https://en.wikipedia.org/wiki/Sales

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