Presented to:- Presented by:- Neelutpal (222012)

Prof Kashmira Chaddha Ashwath (222017)

Mohit (222010)
Piyush (222015)
• Defining the Business :- Honda Motor Co., Ltd
is a Japanese public multinational corporation primarily known as a manufacturer
of automobiles(4 Wheeler/ 2 Wheelers)and power equipment.

Basic Principles
• Respect for the individual.
• The Three Joys (buying, selling and creating).

We at Honda believe that each person working in or coming in touch with our
Company, directly or through our products, should share a sense of joy through that
experience. This feeling is expressed in what we call "The Three Joys"

Our Goal is to provide joy through our Business:

• The Joy of Buying: For those who buy our Products
• The Joy of Selling: Engage in selling our products and services
• The Joy of Creating: Involved in business of creating our Products
 → Business Definition

• Defining the Business :- Honda Motor Co., Ltd

is a Japanese public multinational corporation primarily known as a manufacturer
of automobiles(4 Wheeler/ 2 Wheelers)and power equipment.

• Maintaining a global viewpoint, we are dedicated to supplying products of the

highest quality, yet at a reasonable price for worldwide customer satisfaction.

Management Policies
• Proceed always with ambition and youthfulness.
• Respect sound theory, develop fresh ideas, and make the most effective use of
time.
• Strive constantly for a harmonious flow of work.
• Be ever mindful of the value of research and endeavor.
 Internal Origin External Origin
1. Honda is the 3rd largest automobile 1. Developing hybrid cars and fuel efficient cars for
manufacturer in the world selling cars in over a the future
100 countries
2.Tapping emerging markets across the world and
Strength

2. Excellent branding, advertising .

Opportunity
3. Honda has over 180,000 employees globally building a global brand
4. Production System that is refined over the 3.Fast growing automobile market
years along with High and powerful research and
development R&D
5.High brand equity and brand loyalty amongst
customers
6. Strong presence in motorsports like F1

1. Cost structure of Honda is high as compare 1.Too many competitors in automotive

to other automobile manufacturers industry.
2.Caters to only the upper middle segment 2.Lower cost competitors
3.Expanding market size of compact cars
which limits the customer base

Threats
Weakness

3.Honda has to recall a few of their models for

corrective measures which caused a lot of hue
and cry
• Defining the Business :- Maruti Suzuki India Limited
commonly referred to as Maruti and formerly known as Maruti Udyog Limited, is
an automobile manufacturer in India.

“The Leader in the Indian Automobile Industry, creating customer Delight and
Shareholder’s wealth; A pride of India”

• Customer Obsession
• Fast , Flexible and First Mover
• Innovation and Creativity
• Networking and Partnership
 Internal Origin
1. Maruti is the largest passenger car company in
India, accounting for around 45% market share
2. Over 6,000 people are employed with Maruti
Strength
External Origin
1. Developing hybrid cars and fuel efficient
cars for the future
2.Tapping emerging markets across the

3. Good advertising, product portfolio, self-

Opportunity
competing brands world and building a global brand
4. Largest distribution network of dealers and 3.Fast growing automobile market and
after sales service centers increased purchasing power
5. Strong brand value and strong presence in the
second hand car market
6. Having different revenue streams like Maruti
finance, Maruti Insurance and Maruti driving
schools
7. Over 700,000 units sold in India annually
including 50,000 exports
1.Inability to penetrate into the international 1. Government policies for the automobile sector
market across the world
2.Employee management, strikes, worker wage 2. Ever increasing fuel prices

Threats
Weakness

problems 3. Intense competition from global automobile

brands and cheaper brands
4. Substitute modes of public transport like buses,
metro trains etc
Market share
Indian auto market size to triple to 9.3
mn units by 2020: JD Power
• Car sales in India may be on a downside at present but global marketing
information services company JD Power believes that the total automobile
market size will triple to 9.3 million units by 2020

• Driven by enhanced demand as the number of people with disposable

income increases, the sector will grow at a compounded annual growth
rate of 16% during the period, the market research firm said.
 Market Definition
Dzire/Amaze Ertiga/Mobilio

Primary Market- Compact Sedans Primary Market- MUV

Secondary Market- Sedans Secondary Market- SUV

 Brand Equity
Brand Equity:
–The value premium that a company realizes from a product with a recognizable name as
compared to its generic equivalent.

Conclusion: Based on consumer survey

the price range meets the consumer
expectations for all the brands (taking into
consideration price as the most important
variable for value in consumer’s mind)
 Brand Circles: Maruti
Dzire Ertiga

Inner Core Inner Core

Reliable , Love Family values, Reliable

Outer Core Outer Core

Mileage, Serviceability Mileage, Serviceability, Space

Extension areas Extension areas

Traffic Management Schools Commercial vehicles
Driving School
Commercial vehicles

No Go Areas No Go Areas
Alcohol Industry Alcohol Industry
Customers Perception
 Brand Circles: Honda

Amaze Mobilio

Inner Core Inner Core

Style, Family values Safety, Style

Outer Core Outer Core

Interiors, Engineering Space, Engineering

Extension areas Extension areas

Driving School Commercial vehicles
Small Commercial vehicles
Robots

No Go Areas No Go Areas
Alcohol Industry Alcohol Industry
Customers Perception
Competitive set
Maruti Swift Dezire Vs Honda Amaze
• The Honda Amaze is a four-door subcompact sedan produced by Honda.
The Amaze is the sedan version of the Brio. Honda launched the Amaze
in India on April 11, 2013 which has been developed at Honda R&D Asia
Pacific Co., Ltd. located in Bangkok, Thailand. The Amaze is available
in petrol and diesel engine

• Maruti Suzuki launched the Maruti Dzire in India on 26 March 2008. It is a

sedan version of the Swift hatchback. It replaced the long standing Maruti
Esteem and shared its engines with the hatchback. Swift DZire is a result
of an indigenous project started in 2005 to design a three-box notchback
version of the Swift hatchback
 Leader/Follower
• Dzire is considered market leader in compact sedan segment as
compared to Honda Amaze as per the data till Feb 2014

• The battle between the Maruti Suzuki Swift DZire and Honda Amaze is a
very close one. Both cars have their strengths but the Amaze manages to
edge ahead of the DZire on several counts. The Amaze is not only faster
(diesel), it is more economical too.

• Factor in the easier to drive characteristics, better rear seat experience,

larger boot and better appearance and the Honda Amaze emerges on top.

• The icing on the cake is the Honda badge, which holds higher value than
Maruti Suzuki’s, making the Amaze the clear winner and the undisputed
champion in the compact sedan space
 Competitive set
Maruti Ertiga VS Honda Mobilio
 Ertiga Vs Mobilo
• Suzuki Ertiga, basically meaning Swift with three rows in Indonesian, is a
seven-seat compact MPV developed by the Japanese
manufacturer Suzuki and its Indian subsidiary Maruti Suzuki
• It was launched on 12 April 2012 in India . As a Marketing strategy Maruti
Suzuki proclaims it to be the first LUV (Life Utility Vehicle). It competes
with Mahindra Xylo Tata Sumo Grande, Toyota Avanza and Nissan Grand
Livina and now with Honda Mobilo

• The new Mobilio has been the most anticipated MPV from the Honda.
• The car came on the Brio platform and was released into Indian market July
this year. This is a seven seater and has many features bundled in to it.
• But it has to compete with its market rivals from India’s most trusted brand
Maruti Suzuki, Ertiga and all famous Toyota Innova which rules the MPV
market.
 Leader/Follower
• Ertiga is considered market leader in mid-sized MUV segment
as compared to Honda Mobilo

Verdict - After analysing these two MPVs on paper, one thing is

certain; the Honda Mobilio with its splendid packaging, striking
exterior design and three rows of seats, it definitely could take
the fight to the competition. Though currently Ertiga is leading.
 Brand Positioning of
Maruti Dezire/ Honda Amaze
 Maruti Dzire
Dzire Ad: http://www.youtube.com/watch?v=8HUVGqmLlIQ

Points of Difference-
• Class leading interiors (Print media too emphasizes the interiors)
• Largest selling sedan
• ‘The Heart Car’ Spreading the message of love
• The Maruti Logo with the message ‘The way of life’
 Customer Profiling
• 25+ year male/Female
• Tier 1/Tier 2 Cities
• Newly married/ Marriageable age
• Nuclear family
• Middle Income group
• Caring
• Stylish
• Wants to enjoy life and have fun
• Usage: Most Used
• Brand loyal
• Positive sentiments towards the product
 Honda Amaze
Ad: http://www.youtube.com/watch?v=3z9rYGKXIGY
Points of Difference-
• Best mileage: 25.8 km/l
• Showing comfortable 5 seating capacity in the ads
 Customer Profiling
• 30+ year male/female
• Tier 1/ Tier 2 Cities
• Nuclear family
• Middle Income group
• Ideal family person
• Respect for elders
• Enjoys long drives and fun in life
• Usage: Most Used
• Brand loyal
• Positive sentiments towards the product
 Points of Parity between Amaze and Dzire
• Both are targeting the married couples

• Both Dzire and Honda ads show a blue color. Blue is the color of the sky
and sea. It is often associated with depth and stability. It symbolizes trust,
loyalty, wisdom, confidence, intelligence, faith, truth, and heaven. Blue is
considered beneficial to the mind and body.
 Brand Positioning of

Maruti Ertiga/Honda Mobilio

 Maruti Ertiga
Ad: http://www.youtube.com/watch?v=VktCjjAzixU

Points of Difference-
• Easy Rear seat adjustment (Child’s Play)
• Rear AC adjustment
• Introduced the segment LUV
• Focus on family
• Available in CNG
 Customer Profiling
• 28+ Male/Female
• Tier 1/ Tier 2 Cities
• Married
• Joint Family
• High Income group
• Typical family person
• Loves sports (Cricket)
• Convincing Attitude
• Usage: Most Used
• Brand loyal
• Positive sentiments towards the product
 Honda Mobilio
Mobilio Ad: http://www.youtube.com/watch?v=dhuDPluUi1o
Points of Difference-
• Lots of Space – 7 seater for adults/ bigger leg space
• Extremely safe
• Stylish- No compromise in looks or average
• Comfortable Seats
• Amazing mileage
 Customer Profiling
• 25+ male/female
• Tier 1/ Tier 2 Cities
• Married/about to get married
• Joint Family
• High Income group
• Confident
• Flirty
• Stylish
• Wants comfort
• Usage: Most Used
• Brand loyal
• Positive sentiments towards the product
Points of Parity between Ertiga and Mobilio
• Both are LUVs, though Honda doesn’t specifically mention the word in the
ads
• Both are 7 seated car
• Both targeted towards the family segment
 Improvements needed in Positioning
and Communication
Common Improvements points for both Amaze and Mobilio
• Very strong social media presence for Maruti which helps in relationship
building but not for Honda, so need to look into it
Amaze
• Going by current trends Amaze is already the market leader, they need to
pitch this in their future communications
• Amaze can cater to the Young Adults as well, they need to expand their
reach to this age group
Mobilio
• Honda Mobilio is ‘still’ in the ad whereas most car ads show them ‘being
driven’. The mental imagery is missing in audience’s mind.
• Mobilio needs to connect more with the Indian audience on the family
front
• They should also explain about how it is safe as being claimed in their ads
Common Improvements points for both Dzire and Ertiga
• Too much emphasis on one single element in human life ‘love’ may become
boring in future for the audience.
• Maruti needs to improve in mileage & space & Engine performance (as per
consumer survey)

Dzire
• The design has become old, needs some
freshness
• Sponsor Sporting events and try to position
as a quality buy for the young adults as well

Ertiga
• Needs to be ‘top of the mind’ brand as a family car
• Develop communications for expanding into Tier 3 and semi-rural areas
 References
• http://www.livemint.com/Industry/7AsDcOlKeFItehuxwFQZmK/Japanese-car-
manufacturers-tweak-strategies-to-suit-India.html
• http://www.maruticarsindia.in/2013/05/maruti-suzuki-works-out-effective-
strategies-to-boost-sales.html
• http://www.ijssbt.org/volume1.2/pdf/7%20Marketing%20strategies%20of%20indi
a%20automobile%20companies.pdf
• http://www.thehindu.com/business/Industry/our-counterattack-has-started-
president-and-ceo-honda-cars-india/article4889129.ece
• http://www.marketing91.com/marketing-mix-honda-motors/
• http://www.strategicmanagementinsight.com/swot-analyses/honda-swot-
analysis.html
• http://articles.economictimes.indiatimes.com/2014-03-
05/news/47895333_1_mayank-pareek-maruti-suzuki-jnaneswar-sen
• http://articles.economictimes.indiatimes.com/2013-04-
14/news/38529350_1_game-changer-petrol-variant-india
• http://www.juliantrueflynn.com/seo/hondas-marketing-strategy
Thank You