CHAPTER – I

1

INTRODUCTION TO MARKET POTENTIAL

INTRODUCTION

Market Potential is demand for synthetic paper is increasing day by day in view of making

envelopes for despatch of magazines, books etc. Because of its strength, good printability,

weather resistance, synthetic papers/envelopes are preferred. They are also used for making

posters, banners, sign boards etc.

Market potential analysis is a system used by businesses to analyze a potential market with

the aim of finding out how viable such a market is with regard to the product that the

company has to offer. As such, it can be used by those companies with a product or service

they want to introduce into the market. This type of analysis will help businesses identify the

strongest markets and also enable them to allocate their resources more effectively.

One of the reasons for conducting a market potential analysis could be for the purpose of

identifying potential customers in a new or already existing geographical location. For

instance, if a company based in Canada has a new product it wants to introduce into the

market, it will first carry out a market potential analysis within its environment to identify the

potential customers. The analysis might span several cities or several states. The result will

inform the company of the areas of concentration based on where the most potential

customers are located.

The same company could also carry out a market potential analysis of other geographical

locations when it is thinking of expanding sales. Such a move is necessary due to the increase

in globalization and the advantages offered by international trade. As such, the company

might conduct a market potential analysis of several countries. The result of the analysis will

reveal to the company where the greatest cluster of potential customers are located. This

information will allow the company focus on the markets with the greatest potential in terms

of customer base.

Another reason for conducting a market analysis could be to find out where there might be a

wealth of untapped resources or potential. Transition to such a market might require a

combination of market analysis, strategic design management, and effective marketing

targeted to that specific market in order to benefit from it. For instance, a company producing

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a certain type of product that does very well in one market might also benefit from packaging

or designing the product in a manner that it will be accepted by other markets.

NEED FOR THE STUDY

Market potential: The market forecast shows expected market demand, not maximum

demand. For the latter, we have to visualize the level of market demand resulting from a very

high level of industry marketing expenditure, where further increases in marketing effort

would have little effect in stimulating further demand, market potential is the limit

approached by market demand as industry marketing expenditures approach infinity for a

given marketing environment.

Although there have been studies on market potential, its application and effects on

two wheelers industry seen to be unimpressive. Hence this study will be valuable contribution

in analyzing market potential. And its effects as the organization due to fast changing

developments in economic and industrial scenario, improving the performance of

organization is essential as a result undertaking an academic study on market potential will be

a welcome step. This study will definitely helpful in achieving the organization effectiveness

and its market share.

Success of the business hinged on sound decisions are the outcomes of relevant clear,

complete, accurate, timely, objective and authentic. Information about the customers

perception, source of awareness, impact of advertisements their level of satisfaction, the

factors inflecting the customers performance, customers opinion regarding the technological

advancement and about the competitors.

OBJECTIVES:-

1. To find out the market potential about the “ Honda two wheelers “

2. To identify the market share of two wheelers.

3. To know market share of other competitors brands.

4. To find out the customer satisfaction.

5. To find out the factors that customer consider while purchasing bike.

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6. To know the effectiveness of advertisement.

7. To know overall performance of Honda when compare to others.

Scope of the study:-

Market potential is one of the important tools in the marketing field. It

is very important to know the potential of the market to promote services effectively. It

conveys the message to marketers about the buying pattern then towards purchasing. Almost

all the business organizations rely on this to sale their products and services they conduct

studies on market potential.

This study offers helps to put the theoretical aspect and to develop

over all view of the two wheeler sector in the company. The study of this nature aims to give

information about competitors, demand for two wheelers. It understands the selling

mechanism and various techniques involved in the marketing two wheelers. The study also

gives the information about market potential “FORTUNE MOTORS PRIVATE LIMITED “.

The study offers and extended scope for further research with

relevance of other product categories and also to reach wider area coverage. Overall

scope of the studies is to understand market potential towards “HONDA TWO

WHEELERS” .

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RESEARCH METHODOLOGY:-

The survey technique is intended to secure one or more items of information from a

sample of respondents who are representatives of a larger group. The information is recorded

on a form know as questionnaire.

As data are gathered by asking questions from persons who are believed to have

desired information, the method is also known as questionnaire technique.

RESONS FOR WIDE USE OF THIS METHOD:

1. It can secure both quantitative and qualitative information directly from the respondents.

2. It is the method of directly measuring attitudes and motivations.

3. It is quite flexible in terms of the types of data to be assembled, the method of collection or

the timing of research.

A questionnaire is simply a formalized set of questions for electing information. As such, its

function is measurement and it represents the most common form of measurement in

marketing research. Although the questionnaire is generally associated with surveys, it is also

frequently the measurement instrument in experimental designs as well. When a

questionnaire is administered means of telephone or by personal interview, it often is termed

interview schedule or simply schedule.

DATA COLLECTION

For the purpose of study the necessary data has been collected from the primary and

secondary sources.

The study was conducted by a random survey and was administered through

questionnaire. The data collected was/is primary data. This was conducted to know the

behavior of the consumers in Hyderabad city and the response was very much satisfactory.

The questionnaire was mixed one which constitutes open ended and close ended questions.

Multiple choices, dichotomous.

It was not possible to approach all the consumers in the city and so the sample size

was limited to 100 people. Segmented in to students, employees and profession wise.

5

The secondary data is obtained from different published documents and reports of

HONDA Company profile.

QUESTIONNARIE INVOLVES SEVEN BASIC STEPS

Primary consideration

Question content

Question wording

Response forma

Question sequence

Physical characteristics of questionnaire

Perfect

For quantitative research the primary data collection instrument is the

questionnaire. Which can be sent through the mail to selected respondents for self-

administration or can be administered by trained interview in person.

Consumers are often reluctant to take to respond to surveys. For this reason

researchers have found that questionnaires must be interesting objective unambiguous, easy

to complete and generally burdensome to motivate respondent to answer truthfully and

completely. To ensure Validity, questionnaires are pretested and bugged before wide spread

distribution.

The format of questionnaire and the wording and sequence of the Question, affects the

validity of the response.

The questionnaire itself can be disguised and undisguised as it to its true purpose. A disguised

questionnaire yield more truthful answer when compare to the undisguised questionnaire.

Questions can be open ended questions or close ended questions. Open ended question yields

more insight information than the closed ended questions. Close ended questions are

relatively simple to tabulate and analyze, but the answers are limited to the alternative

responses provided.

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ADVANTAGES:

1. Versatility

2. Speed

3. Cost

DIS ADEVANTAGES:

1. Unwillingness of respondent to provide information.

2. Inability of respondent to provide information.

3. Influence of questioning process.

USE OF SURVEY METHODS:

1. We can have a factual survey together with facts.

2. We can have an opinion survey to secure personal opinions or thinking

and a particular matter

3. Interpretative survey can be conducted to probe into personal feeling, motives, and attitudes of the respondents.

TYPES OF SURVEY:

1. Through mail

2. Telephone

3. Personal interview

RESEARCH PROCEDURE:

1. Briefings from the company

2. Research design and planning

3. Data collection

4. Analyzing the information

5. Qualitative and quantitative studies.

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RESEARCH DESIGN AND PLANNING

RESEARCH DESIGN:

For analyzing the collected data, an in-depth research analysis was framed and

various statically tools and techniques were also used for the same purpose.

RESEARCH PLAN:

In the study systematic procedure of collecting the data in order to analyze and

interpret in a methodical way has been adopted. Data collection the collection of information

is ascertained through two principal sources.

PRIMARY DATA:

These are the data which needs the personal efforts of collect it and which are not readily

available .Primary source of data are the other type of sources through which the data are

collected .Data was collected through questionnaires, and direct interviews.

SECONDARY DATA:

It was another important source through which the data were collected. These are the

readily available sources of the data where one had need not put much effort to collect

because it is already been collected and put in elderly manner by some researchers, experts

and specialists . It may be books from library, internet, newspapers, business magazines, and

some journal was also referred.

SAMPLE SIZE:

The size of the sample is 50 respondents.

PERIOD OF STUDY:

The study was undertaken in the month March to April.

RESEARCH APPROACH:-

Survey method was adopted for collecting the primary data. Survey research is systematic

gathering of data from respondent through questionnaires.

RESEARCH INSTRUMENT:

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The data for this research study was collected by survey technique using interview method

guided by questionnaire.

METHOD OF CONTROL:

Questionnaire and personal interview are the method that I have used for contacting

customers.

LIMITATIONS:

1. The study is conducted in short period, due to which the study may not be detailed in all

aspects.

2. The study is limited only to be the analysis of different schemes and its suitability to

different investors according to their risk-taking ability.

3. The study is based on secondary data available from monthly fact sheets, web sites; offer

documents, magazines and newspapers etc. as primary data was not accessible.

4. The study is limited by the detailed study of Market Potentiality.

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CHAPTER - II

Review of literature10

"Indian Automobile Sector - A Booming Market" market

research report focuses on the growing Indian auto market

  PR Log (Press Release) – Jan 18, 2009 – This report "Indian

Automobile Sector - A Booming Market" helps clients to analyze the

leading-edge opportunities and the driving factors that are critical for the

success of auto industry in India. Detailed market analysis helps the

potential investors to plot a route through the evolving Indian auto

industry.

Indian Automobile Industry:

Allowance of 100% FDI in Indian auto industry in 2002 made the

industry easily accessible and attractive for the global players. Japanese,

Korean, European, and American OEMs entered the Indian market and

added more than 1 Million four-wheelers during 2006-06.

Indian 2-wheeler industry is the second largest in Asia after China.

The production of 2-wheelers grew at a CAGR of 14.6% from FY2001 to FY

2007. In passenger car segment, most of the Indians still prefer fuel-

economic compact cars, but rise in disposable incomes has opened the

roads for luxury cars too in India.

Despite impressive growth, automobile penetration rate is still low

in India. As India is an economically growing country, there exists a huge

untapped growth potential for the automobile manufacturers.

Key Findings:

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· It is expected that per head disposal income in India will grow at CAGR of 12.11% from fiscal year (FY) 2008 to FY 2011. It is likely to boost purchasing powers of population, and consequently, the sale of motorcycles and compact cars will increase.

· Car stock per 1000 population is expected to increase at a CAGR of

9.14% during the forecasted period from FY2008 to FY2011.

· New passenger car registration is expected to grow at a CAGR of 11.41%

during the forecasted period.

· In commercial vehicles segment, light commercial vehicles are expected

to register a higher growth rate than the heavy and medium commercial

vehicles from FY2008 to FY 2011.

· India had the lowest penetration rate of motorcycles in comparison to

Indonesia, Thailand and Malaysia in 2006, indicating good growth

prospects for the motorcycle manufacturers.

Key Issuesand Facts:

· Where does the Indian automobile production stands relative to world level and Asian level (2007)?

· What are the sales of passenger cars in different Asian countries?

· What is the country-wise automobile production and sales in Asia?

·How attractive is Indian automobile industry?

· What is the automobile consumption pattern in India?

· What are the driving factors for the Indian automobile industry?

· What opportunities and challenges are there for the automobile

manufacturers in India?

Key Players

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This section provides an overview of the key players in the Indian auto

industry such as Maruti Udyog Limited, Tata Motors Limited, Hyundai

Motor India Limited, Mahindra & Mahindra Limited, Hero Honda Motor

Limited, Bajaj Auto Limited and TVS Motor Company Limited.

Research Methodology Used Information Sources:

The information has been compiled from various authentic and reliable

sources like Books, Newspapers, Trade Journals and White papers,

Industry portals, Government Agencies, Trade associations, Monitoring

Industry News and developments, and Access to more than 3000 paid

databases.

Analysis Method

Methods like Historical Trend Analysis, Linear Regression Analysis using

software tools, Judgmental Forecasting and Cause and Effect Analysis

have been used in the report for a prudent analysis.

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Indian Automobile Sector - A Booming Market:

De-licensing in 1991 has put the Indian automobile industry on a

new growth track, attracting foreign auto giants to set up their

production facilities in the country to take advantage of various

benefits it offers. This took the Indian automobile production from

5.3 Million Units in 2001-02 to 10.8 Million Units in 2008-08. The

other reasons attracting global auto manufacturers to India are the

country’s large middle class population, growing earning power,

strong technological capability and availability of trained manpower

at competitive prices. These are the major findings of our new

report, "Indian Automobile Sector - A BoomingMarket”

 

In 2007-07, the Indian automotive industry provided direct

employment to more than 300,000 people, exported auto

component worth around US$ 2.87 Billion, and contributed 5% to

the GDP. Due to this large contribution of the industry in the

national economy, the Indian government lifted the requirement of

forging joint ventures for foreign companies, which attracted global

to the Indian market to establish their plants, resulting in

heightened automobile production.

 

The Indian automobile market is currently dominated by two-

wheeler segment but in future, the demand for passenger cars and

commercial vehicles will increase with industrial development. Also,

as India has low vehicle presence (with passenger car stock of only

around 11 per 1,000 population in 2009), it possesses substantial

potential for growth.

 

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  Research Methodology Used in the Report Information

Sources:

The information has been sourced from various authentic and reliable

sources like books, newspapers, trade journals and white papers, industry

portals, government agencies, trade associations, monitoring industry

news and developments, and through access to more than 3000 paid

databases.

AnalysisMethod:

RNCOS industry forecast and analysis is based on various macro- and

microeconomic factors, sector and industry specific databases, and our in-

house statistical and analytical model. This model takes into account the

past and current trends in an economy, and more specifically in an

industry, to bring out an objective marketanalysis.

Our industry experts study the relationship between various industry and

economic variables to ensure the required accuracy and desired check on

the quality of data and information given in the report.

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INDUSTRY PROFILE

INDUSTRY PROFILE16

Motorcycles have made their debut around the 1950s; this section

looks at the two wheelers which have over the years caught the

imagination of country. It was in the year 1954 that the Indian

government ordered for total number of 800 motorcycles to man the

Pakistani borders. In came the Bullets which were initially launched in

England as a 350cc bike and it was upgraded to 500cc a year or so later.

These bikes have remained unaltered, barring some cosmetic changes

which have undergone over the years.

Thus one can say without much of a doubt that the 1955 Bullet was

one of the initial hits of the Indian two-wheeler industry and till today it

continues to be a darling of the motorcycle enthusiasts.

Enfield Bullet had a close competition with another sturdy bike named

Rajdoot; as the bike was strong enough to handle the rough Indian

roads. The company had roped in Indian He-man Dharmendra for the

promotion of the bike. With more than 1.6 million vehicles on the road

the Rajdoot motorcycle was one of the initial hits of the earlier years of

two-wheeler history in the country.

When heavy motorcycles were the order of the day, a relatively lighter

bike had caught on the imagination of the Indian two wheeler user. Ind-

Suzukia bike launched by the then TVS Suzukigroup was an instant hit;

however the bike could not sustain it's initial success due to the high

import content in the vehicle and less of localization.

In scooters Bajaj Chetak has been hugely responsible for adding

momentum to the transport system of the country, till today it remains

one of the most successful brands to have come out of the Bajaj stable.

The scooter is named after the horse of legendary Rana Pratap Singh.

These sets of two wheels have become a part of the Indian milieu and

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are often considered a representative of the Indian middle class

aspiration. Very few two-wheelers have been able to emulate the

success, which Bajaj Chetak has achieved over the years.

Similarly LML Motors enjoyed a reasonable success with the launch of

LML Select which came with new age technology and improved

performance.

Today newer models of two-wheeler are entering the market everyday,

slowly pushing these names down the memory lane.

MOTORCYCLES IN INDIA

In 1955, the Indian government needed sturdy and reliable motorcycles

for its Army and police to patrol the rugged border highways. The first

batch of 350cc Bullet from the Royal Enfield Company of UK were received

and assembled at Chennai.

The four stroke engine of the motorcycles is fuel efficient and is the main

reason for the growth of motorcycle segment In India. The motorcycle

market share is about 81.5% of the total two wheeler market in India.

Three-fourths of the total exports in the two wheeler automobile industry

are made in the motorcycle segment. Exports are made mainly to South

East Asian and SAARC nations.

Two Wheelers in India

The feeling of freedom and being one with the Nature comes only from

riding a two wheeler. Indians prefer the two wheelers because of their

small manageable size, low maintenance, pricing and easy loan

repayments. Indian streets are full of people of all age groups riding a two

wheeler. Motorized two wheelers are seen as a symbol of status by the

populace. Thus, in India, we would see swanky four wheels jostling with

our ever reliable and sturdy steed: the two wheeler.

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BAJAJ AUTO HERO HONDA KINETIC MOTOR

› Kawasaki Ninja*› Hero Honda

Achiever› Kinetic Aquila

› Bajaj XCD 135

DTS-Si*

› Hero Honda CD

Dawn› Kinetic Comet

› Bajaj Discover

DTSi

› Hero Honda CD

Deluxe› Kinetic Stryker

› Bajaj Platina› Hero Honda

Glamour

› Bajaj Pulsar DTSi› Hero Honda

Karizma  

› Bajaj Pulsar

200CC*

› Hero Honda

Passion Plus

› Bajaj Avenger› Hero Honda

Splendor 

› Hero Honda

Splendor NXG-

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 › Hero Honda CBZ

X-Treme-

› Hero Honda Hunk  

LML INDIA ROYAL ENFIELD TVS MOTOR

› LML Adreno FX › Bullet 350› TVS Apache RTR

FI

› LML Beamer› Thunderbird

Twinspark› TVS Flame

› LML Energy FX › Bullet Electra › TVS Star City

› LML Freedom › Bullet Machismo› TVS Taurus Fiero

F3*

› LML Graptor› Bullet Machismo

500 

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Two Wheeler Manufacturers

The two-wheeler manufacturers are especially encouraged by the

enthusiasm of the young riders who look for trendy products all the time.

Some of the motorbike manufacturers are also targeting young ladies and

making bikes available that are comfortable.

The launch of the Mopeds has revolutionized the entire concept of

transportation for the women’s. Mopeds are light weight, easy to drive

and cost effective. In a way- Mopeds are tailor made keeping the needs of

young girls and office going women’s in mind.

Such is the craze for bikes, that it comprises the major percentage of the

two-wheeler industry, followed by mopeds and scooters. Now, college

going crowd and youths find bikes smarter and better for transportation.

The best part about a bike is that it provides quick and easy

transportation, and can be parked anywhere around.

Various factors such as the availability of bikes on reasonable rates, auto

loans and higher disposable incomes have contributed to an evident

upsurge in the demand of bikes. There's a marked change in the

preferences of the buyers, as most of them prefer bikes to scooters and

mopeds.

Scooters have been the darlings of Indian masses for long because of the

convenience it provides to the riders. Cheap scooters have been launched

by the manufacturers to reach the wider net of customers. Two-wheeler

manufacturers have also introduced scooters for that are a handy mode of

commuting for the physically challenged.

In India, two wheelers have captured the imagination of young generation

everywhere. They are as much popular in the rural areas as they are in 21

cities and towns. The easy maintenance, affordable price and ability to

adjust in any kinds of road have made them dear to one and all.

Moreover, now-a-days getting finance or a loan has become a trouble free

affair and the numbers of bike riders are only growing with each passing

day. Your two-wheeler also needs your care and attention all the time.

With automobile India, you need not worry about the maintenance tips,

statistics, insurance, finance and latest trends in the two wheeler industry.

It is all there at the click of your mouse.

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COMPANY PROFILE

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Honda Motorcycle & Scooter India Pvt. Ltd

Honda Motorcycle & Scooter India Pvt. Ltd (HMSI) is a wholly owned subsidiary of Honda Motor Company

Ltd., Japan. Honda is the world's largest manufacturer of 2-wheelers.

Honda Motorcycle & Scooter India Pvt. Ltd was established on August 20, 1999 in Manesar near Gurgaon in

Haryana. The foundation stone for the factory was laid on December 14, 1999 and the factory was completed in

January 2001.

Honda Motorcycle & Scooter India Pvt. Ltd initially ventured into scooters as its joint venture agreement with

the Hero Group precluded its entry into the motorcycle segment for five years. The company set new standards

in the Indian scooter industry with the launch of its gearless scooter Honda Activa. Thereafter company

launched its other products: Honda Dio, Honda Eterno, Honda Unicorn and Honda Shine. All the products

launched by HMSI were a big hit in the market.

Research And Development :

Each and every Honda associate takes the customers point of view as we strive tohelp everyone everywhere

share the joy of mobility. Thats why Honda always welcomes new challenges as we work to benefit society and

the environment, today and tomorrow.

Honda is constantly involved in technological research and development to help people now and in the future.

These technologies range from new materials and new sources of energy, to new powertrains for maximum

performance and minimum eco-impact, to new work in decoding the rice genome for various applications.

Currently, Honda is engaged in a project to develop a next-generation clean diesel engine. Another project, in

cooperation with the Research Institute for Innovative Technology for the Earth (RITE), aims to produce

ethanol from cellulosic biomass, a promising, secure supply of environmentally responsible alternative fuel.

Honda also studies human anatomy and physiology so we can make innovative products that enhance safety.

The company conducts original research into new forms of mobility that coexist in harmony with people and

serve society. The latest, most advanced version of ASIMO, Honda’s bipedal humanoid robot, now moves

freely, shares tasks with humans, and even recharges itself -- a significant achievement in independent action.

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Since its establishment, Honda has always “dreamed skyward.” This perspective recently led to development of

the advanced light jet HondaJet. With delivery scheduled to start in 2011, Honda has begun construction of its

production facility in the U.S. Thus, Honda always aims higher -- creating value that meets each country’s

needs, bringing products speedily to market, and constantly enhancing our safety and environmental

performance.

Where Honda's dreams all began Defining the joy of mobility on two wheels

In 1946, at a time when the mere bicycle was still the chief means of transportation in Japan,

a small, remodeled generator once used to power a radio transmitter was reworked into an

engine and fastened to a bicycle to give it a mechanical boost. This engine was the starting

point of Honda and the beginning of its motorcycle business. In Japan at that time, many

people traveled great distances on bicycles to shop or used a bicycle for commercial

purposes. In response, Honda has maintained the "passion to create products that will bring

joy to many people," without interruption through each successive Honda generation.

The HMSI factory is spread over 52 acres, with a covered area of about 85, 815 square

meters at Manesar, Gurgaon district of Haryana. The foundation stone for the factory was laid

on 14th December 1999 and the factory was completed in January 2001. The initial installed

capacity was 100,000 scooters per year, which has reached 6,00,000 scooters by the year by

2007 and motorcycle capacity shall be 4,00,000 per annum. The total investment outlay for

the initial capacity was Rs. 215 crores and now the accumulated investment is 800 crores.

25

The second plant at the Tapukara Industrial Area of Rajasthan, which is approximately 90km

from the center of Delhi, has become operational from July 2011 with annual production

capacity of 0.6 million units. HMSI aims to double the annual production capacity of this

plant to 1.2 million units in March 2012.

Cutting-edge technology and the spirit of Honda

Our fundamental design philosophy seeks to maximise space and comfort for people, while minimising the space required for mechanical components. With this aim in mind, Honda's R&D activities include product-specific development and fundamental research.Let's talk about few of the advanced technologies that we have:

Combi Break SystemGenerally, it is not easy to control a 2-wheeler while braking during emergencies and bad road conditions. This system not only allows easy & simultaneous operation of the front & rear brake but also provides optimal braking performance. Once the left side brake lever is pressed, the system distributes the appropriate braking power between the front and rear wheels, which assures complete safety for the rider.

HondaMatic Transmission

The compact, efficient & oil pressure controlled Hondamatic Transmission is the world's first fully automatic transmission system, which delivers a dynamic combination of torque & excellent accelerator response for a constant and superior driving experience. The transmission is being used in Honda's all terrain vehicles. Honda is working hard to introduce this Hondamatic in two-wheelers.

Fuel Injection System

Honda's fuel injection technology is designed to realise ideal combustion, which results in delivering maximum power output, greatly improved fuel efficiency and yet be environment-friendly

The history of the Honda brand is nothing more than the history of our challenges and

achievements in creating values, invariably ahead of our time. It is also the history of the

26

dreams of each of our associates that have come true and have been shared by people around

the world.

AWARDS: -

27

2011   "Indian Motorcycle of the Year 2011 (IMOTY) Jury:BS Motoring , Bike India , BBC Top Gear , Overdrive , AutoBild India ."

    Bike of the Year – CNBC TV18 Overdrive Awards 2011

    Bike of the Year - Bloomberg/UTV Autocar Award 2011

  

Viewer’s Choice Award: Bike of the Year - Bloomberg / UTV Autocar Awards 2011.

  CB Twister "The Most Awarded Motorcycle of the Year - 2011"

Bike of the Year - BS Motoring Award 2011.

    Bike of the Year upto 110CC – Bike India.

  

Motorcycle upto 110CC - NDTV Car & Bike Awards 2011.

    Premium 100CC Motorcycle - Zigwheels Awards.

  

Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards

 CB Unicorn Dazzler

Motorcycle upto 160CC – NDTV Car & Bike Awards 2011.

  

Sporty Motorcycle upto 180CC – Zigwheels Awards .

  

Premium Motorcycle of the Year - Auto Bild Golden Steering Awards

  VFR 1200F Superbike of the Year ? TopGear

  

Automotive Technology of the Year - Zigwheels Awards ( for Dual Clutch Transmission)

 Brand Honda

" - Most Reliable Brand - Advanced Technology BrandBy Auto India Best Brand Survey Awards 2011"

  Motorsport Honoured for 'Promoting 2Wheeler racing in India'

2010 Brand " - Most Reliable Brand - Advance Technology- Quality By Apollo Auto India Best Brand Awards 2010"

   Trusted Brand Award (Gold) for Two-wheeler: Readers' Digest 

  CB1000RImport Two - Wheeler of the Year NDTV Profit Car & Bike Awards 2010

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  CB1000R Import Bike of the Year - AutoCar Awards 2010

  CBR1000RR FirebladePerformance Bike of the Year - CNBC TV 18 Overdrive Awards 2010

2009 CBF Stunner Bike of the Year - NDTV Profit Award 2009

  Aviator Scooter of the Year - NDTV Profit Award 2009

  Activa Scooter of the Year - ET ZigWheels Awards 2009

2008 Aviator Scooter of the Year - Zigwheels.com

  CBF Stunner Motorcycle of the Year (125 CC) - Zigwheels.com

 Activa

Scooter Customers Satisfaction No.1 - CNBC TV18 - Auto Car "Auto Awards 2008

  Brand -Well Made Bike 2008-Advanced Technology 2008-Overall 2008-Eco-Friendliness 2008-Resale Value 2008

By Apollo Tyres - Auto India "Best Brand Survey Awards 2008"

2007 EternoBest automobile brand of India 2007                (Planman Media)

 Activa

Best automobile brand of India 2007                (Planman Media)

2006 Shine TNS Voice of The customer Award 2006        (TNS)

2005 UnicornMotorcycle of the Year 2005 (B.S.Motoring& Autocar)

  Unicorn TNS Voice of the Customer Award                 (TNS)

 Eterno

Scooter of the Year 2005 (B.S.Motoring & Overdrive)

2004 EternoBest Scooter of the Year             (B S. Motoring & ICICI Bank, Overdrive Magazine)

2003 Dio Scooter of the Year 2003                                (BBC)

2002 Activa Scooter of the Year by Overdrive Magazine

2001 Activa Scooter of the Year 2001 (BS Motoring)

-HMSI & HSCI has been ranked on top in dealer satisfaction survey 2002-03 (TNS)

-Award for Environment Excellence 2002-03 (Greentech Foundation)

29

TOP MANAGEMENT

Chairman and Representative

DirectorSatoshi Aoki

President and Representative

DirectorTakeo Fukui

Executive Vice President and

Representative DirectorKoichi Kondo

Managing DirectorAkira TakanoChief Operating Officer for Customer Service Operations

Managing DirectorTatsuhiro Oyama

Chief Operating Officer for Motorcycle Operations

Senior Managing Director

Akio Hamada

Chief Operating Officer for Production OperationsRisk Management OfficerGeneral Supervisor, Information Systems

ORGANIZATION STRUCTURE

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COMPANY PRODUCTS

31

Honda Shine

Shine (Spoke Wheel) (125 cc)

An inspiring piece in the 125 cc motorcycle segment, the Honda Shine delivers excellent

power, superior technology, and awesome looks. New bikes have showroom prices of around

Rs. 40,400 and on-road prices of around Rs. 45,600 at Ahmedabad. Currently, Delhi has the

lowest, and Mumbai the highest on-road price for Honda Shine (Spoke Wheel). Honda Shine

(Spoke Wheel) bike prices vary upon the two-wheeler dealer's location.

Shine (Alloy Wheel) (125 cc)

This bike sets new benchmarks in the 125 cc segment by its engine efficiency, aesthetics, and

low maintenance cost. New bikes in this series have a showroom price ranging from around

Rs. 47,000 to around Rs. 53,000 inclusive of all charges like insurance, octroi, RTO, etc.

Honda Shine (Alloy Wheel) prices vary with the two-wheeler dealer's location. Currently,

Delhi has the lowest, and Mumbai the highest on-road price for Honda Shine (Alloy Wheel).

Honda Shine (Alloy Wheel) bike prices vary upon the two-wheeler dealer's location.

Honda Unicorn

32

Unicorn (Spoke Wheel) (150 cc)

Honda Unicorn (Spoke Wheel) is the first motorcycle developed by Honda Motorcycle and

Scooters India Pvt. Ltd. At the showroom, this bike costs around Rs. 55,000 with an on-road

price of around Rs. 61,500. This includes standard ancillary charges also. Currently, Delhi

has the lowest, and Bangalore the highest on-road price for Honda Unicorn (Spoke Wheel).

Honda Unicorn (Spoke Wheel) bike prices vary upon the two-wheeler dealer's location.

Unicorn (Alloy Wheel) (150 cc)

This bike is marked for its cutting-edge technology, adequate power, and mono suspension at

the rear. The Unicorn (Alloy Wheel) is now available at a showroom price of around Rs.

60,000 with an on road price of around Rs. 63,700 including supplementary charges.

Currently, Delhi has the lowest, and Bangalore the highest on-road price for Honda Unicorn

(Alloy Wheel). Honda Unicorn (Alloy Wheel) bike prices vary upon the two-wheeler dealer's

location.

Honda Scooters

Honda Eterno

33

Eterno (150 cc)

India's first 150cc scooter, Honda Eterno has revolutionized the concept of scooters in its

segment. New scooter have showroom prices of around Rs. 35,800 and on-road prices of

around Rs. 40,500 at Ahmedabad. Currently, Delhi has the lowest, and Bangalore the highest

on-road price for Honda Eterno. Honda Eterno scooter prices vary upon the two-wheeler

dealer's location.

Honda Dio

Dio (100 cc)

The Honda Dio is named after Dyonisiac' or Cupid, the Greek god of love and son of Venus.

New bikes in this series have a showroom price ranging from around Rs. 37,000 to around

Rs. 42,000 inclusive of all charges like insurance, octroi, RTO, etc. Currently, Delhi has the

lowest, and Mumbai the highest on-road price for Honda Dio. Honda Dio scooter prices vary

upon the two-wheeler dealer's location.

Honda Activa

34

Activa (100 cc)

Honda Activa is a family two-wheeler and features a higher load carrying capacity than

similar scooters. At the showroom, this scooter costs around Rs. 38,000 with an on-road price

of around Rs. 43,000. Currently, Delhi has the lowest, and Mumbai the highest on-road price

for Honda Activa. Honda Activa scooter prices vary upon the two-wheeler dealer's location.

Honda two wheelers, in order to differentiate themselves from Hero Honda products are

going high on innovative technology. Honda motorbikes and Honda scooters today are sure

to provide you with something different from the average two-wheeler on the road. Honda

needs to do that to compete against its own collaboration, Hero Honda, and build its separate

market share. So right now, Honda consumers have everything going for them.

35

CHAPTER – IV

Data Analysis & Interpretation

36

TABLE 1: DO YOU HAVE ANY TWO WHEELER

TWO WHEELER RESPONDENTS IN %

YES

NO

44

6

88

12

TOTAL 50 100

NUMBER OF RESPONDENTS USING TWO WHEELERS

ANALYSIS:

It is clear from above sample size of 50 respondents

88% of respondents are using two wheelers

12% of respondents are not using two wheelers

INTERPRETATION:

Majority of the respondents are using two wheelers for their transportation.

MARKET IMPLICATION:

Most of the people are using own vehicle for their transportation.

37

TABLE 2: AMOUNT LIKES TO SPEND ON TWO WHEELERS

AMOUNT RESPONDENTS IN %Up to 35000

Up to 50000

Up to 80000

Above 1 lac

13

26

9

2

26

52

18

4

total 50 100

AMOUNT LIKE TO SPEND ON TWO WHEELERS

ANALYSIS:

It is clear from above sample size of 50 respondents

26% of respondents would like to spend up to 35000 on two wheeler

52% of respondents would like to spend up to 50000 on two wheeler

18% of respondents would like to spend up to 80000 on two wheeler

4% of respondents would like to spend above 1 lac on two wheeler

INTERPRETATION:

Most of the people would like to spend up to 50000 on two wheelers

MARKET IMPLICATION:

Annual income plays a major role on purchasing two - wheeler.

38

TABLE 3: FACTORS CONSIDERING WHILE SELECTING THE TWO WHEELER

FACTORS RESPONDENTS IN %

MILEAGE

STYLE

COMFORT

LOWPRICE

28

15

7

0

56

30

14

0

TOTAL 50 100

FACTORS CONSIDERING WHILE SELECTING THE TWO WHEELER

ANALYSIS:

It is clear from above sample size of 50 respondents

1.56% of respondents see the mileage factor while selecting the two wheeler

2.30% of respondents see the style factor while selecting the two wheeler

3.14% of respondents see the comfort while selecting the two wheeler

INTERPRETATION:

Most of the people see the mileage factor while selecting the two wheeler

MARKET APPLICATTION:

Company has to focus mainly on the mileage factor.

39

TABLE 4: BRAND WILL YOU CHOOSE TO BUY.

BRAND RESPONDENTS IN %

BAJAJ

HONDA

HEROHONDA

TVS

9

16

20

5

18

32

40

10

TOTAL 50 100

BRAND WILL YOU CHOOSE TO BUY

ANALYSIS:

From the above sample size of 50 respondents

18% of respondents had chosen Bajaj brand to buy

32% of respondents haven chosen Honda to buy

40% of respondents have chosen Hero Honda to buy

10% of respondents have chosen TVS brand to buy

INTERPRETATION:

Most of the people are interested in buying the Hero Honda

MARKET IMPLICATION

Honda has to concentrate more on its branding.

40

TABLE 5: REASONS FOR OPTING FOR THE BRAND

REASONS RESPONDENTS IN %

BETTER SERVICE

BRAND NAME

LOW PRICE

MILEAGE

21

15

1

13

42

30

2

26

TOTAL 50 100

REASONS FOR OPTING FOR THE BRAND

ANALYSIS:

From the above sample size of 50 respondents

1.42% respondents opted the brand based on better service

2.30% opted the brand based on brand name

3.2% of respondents have opted the brand based on low price

4.26% of respondents have opted the brand based on mileage

INTERPRETATION:

Most of the people are seeing the better service for opting the brand.

MARKET IMPLICATION:

Service plays a major role for opting the brand.

41

Table 6: SATISFIED WITH THE BENEFITS PROVIDED FOR THE HONDA TWO WHEELERS

SATISFACTION LEVEL

RESPONDENTS IN %

FULLY SATISFIED

SATISFIED

NOT SATISFIED

15

35

2

30

66

4

TOTAL 50 100

SATISFACTION LEVEL OF THE CUSTOMERS WITH THE BENEFITS OF THE HONDA TWO WHEELERS

ANALYSIS:

From the above sample size of 50 respondents

1.30% of respondents are fully satisfied with the benefits of Honda two wheelers

2.66% of respondents are satisfied with the benefits of Honda

3.4% of respondents are not satisfied by the benefits of Honda two wheelers.

INTERPRETATION:

Most of the people are satisfied with the benefits of the Honda two wheelers.

MARKET IMPLICATION:

42

Honda has to more concentrate on its benefits to increase the customer satisfaction level.

TABLE 7: KNOWING ABOUT BENEFITS

SOURCE RESPONDENTS %ADDS

FRIENDS

RELATIVES

OTHERS

10

23

16

1

20

46

32

2TOTAL 50 100KNOWING ABOUT THE BENEFITS .

ANALYSIS:

From the above sample size of 50 respondents

20% of respondents know the benefits from ads.

46% of respondents know the benefits from friends.

32% of respondents know the benefits from relatives.

2 % of respondents know the benefits from others.

INTERPRETATION:

Most of the people know the benefits from the friends.

MARKET IMPLICATION:

43

Benefits play major role in increasing the sales of the Honda Two Wheelers.

TABLE 08: OPINION ABOUT ADVERTISEMENT.

OPINION RESPONDENTS IN %EXCELLENT

GOOD

SATISFACTORY

POOR

09

26

13

02

18

52

26

04TOTAL 50 100OPINION ABOUT THE ADVERTISEMENT:

ANALYSIS:

From the above sample size of 50 respondents

18% of respondents feel excellent about the advertisement.

52% of respondents had felt good the advertisement.

26% of respondents had felt satisfactory about the advertisement.

04% of respondents had felt poor about the advertisement.

INTERPRETATION:

Most of the people had feel good about the advertisement.

MARKET IMPLICATION:

44

Honda has to concentrate more on its advertisement to increase its sales.

TABLE 09: RATING OVERALL PERFORMANCE OF HONDA WITH OTHERS.

Rating Respondents In %Excellent

Good

Average

Pooor

16

27

07

00

32

54

14

00Total 50 100

RATING OVERALL PERFORMANCE OF HONDA.

45

ANALYSIS:

From the above sample size of 50 respondents

32% of respondents have rated the overall performance as excellent.

54% of respondents have rated the overall performance as good.

14% of respondents have rated the overall performance as average.

INTERPRETATION:

Most of the people have rated the overall performance of Honda as good.

MARKET IMPLICATION:

Performance of the Honda is good when it compares with the other two wheelers.

46

TABLE 10: HONDA TWO WHEELERS MOSTLY SOLD ON ITS BRAND IMAGE.

Believes Respondents In %

yes

No

42

08

84

16

Total 50 100

HONDA TWO WHEELERS MOSTLY SOLD ON ITS BRAND IMAGE.

47

ANALYSIS:

From the above sample size of 50 respondents

84% of respondents had felt that Honda two wheelers mostly sold on its brand image.

16% of respondents had felt that Honda two wheelers not sold on its brand image.

INTERPRETATION:

Most of the people had felt that Honda is sold on its brand image.

MARKET IMPLICATION:

Brand image plays a major role in promoting the Honda Two wheel.

TABLE 11: Do u suggest Honda to others.

48

Opinion Respondents In %

yes

No

48

02

96

04

Total 50 100

DO YOU SUGGEST HONDA TO OTHERS.

ANALYSIS:

From the above sample size of 50 respondents

96% of respondents suggest Honda to others.

04% of respondents does not suggest Honda to others.

INTERPRETATION:

Most of the respondents suggest Honda to others.

MARKET IMPLICATION:

Brand image plays a major role to promote the sales of the Honda.

49

12. WHICH TYPE OF SUGGESTIONS ?

1. It has to improve its service to satisfy the

customers.

2 .It has to give more ads then the competitors.

3. It has to change its advertising strategy.

4.I t has to reduce its price level to some extent.

5. It has to meet its customers to know about the

problems frequently.

6. It has to take suggestions from the customers.

7. It has to offer more benefits to attract the

customers.

50

CHAPTER - VFINDINGS AND SUGGESTIONS

51

FINDINGS

1.Most of the people using own vehicle for meeting their daily

requirements.

2.Most of the people would like to spend up to rs.50000/- to

purchase bike.

3.Mileage plays a major factor while selecting a bike.

4.People are looking for better service while purchasing bike.

5.Benefits provided for the Honda two wheelers are almost

satisfied.

6.Advertisements given by the company are lesser then the

competitors.

7.Overall performance of Honda is good.

8.Brand image of the Honda is high.

9.Hero Honda has more brand image when compare to Honda.

52

CONCLUSIONS

1.Day to day the users of the two wheelers have increased

drastically.

2.Most of the people using own vehicle for meeting their daily

needs.

3.Most of the students are using unicorn bike.

4.Mileage factor plays a major role in selecting the bike.

5.Customers are preferring better service in choosing a bike.

6.Hero Honda has more brand image then the Honda

7.Overall performance of Honda is good when compare to

others.

8.Hero Honda has more market potential then the Honda.

9.Most of the people are satisfied by the advertisements of the

Honda two wheelers.

53

SUGGESTIONS

1.It has to improve its service to satisfy the customers.

2.It has to give more ads then the competitors.

3.It has to change its advertising strategy.

4.It has to reduce its price level to some extent.

5.It has to meet its customers to know about the problems

frequently.

6.It has to take suggestions from the customers.

7.It has to offer more benefits to attract the customers.

54

QUESTIONNAIRE

Personal Details:

Name:

Age:

Gender:

Occupation:

1. Do you own a two wheeler? Yes/No

2. If yes, what is the brand name of your vehicle? [ ]

a) Bajaj b) T.V.S. C) Honda d) Yamaha

e) Other specify…………………….

3. what Made you to Purchase your two-wheeler? [ ]

a) Multi-utility b) Style c) Need d) Comfort

e) other specify ……….

4. If yes which Company two wheeler do you have …………..

5. How do you meet your daily transportation needs ? [ ]

a) own vehicle b) Auto c) Public Transportation d) other

6. How much amount would you like to spend on two wheeler?[ ]

a) Up to 35,000 b) Up to 50,000

c) 80,000 d) Above 1,00,000

7. Are you satisfied with the benefits provided for Honda two wheelers? [ ]

a) Full satisfied b) Satisfied c) Not satisfied

8. Are you belive advertising will will effect on sales ?

A) Yes b) No

9. Are You Satisfy with Honda Bikes Mileage ?

55

a)Yes b) No

10. Which bike do you have ?

a)Honda b)Hero Honda c)Tvs d)Others

11. How do you know about the benefits? [ ]

a) Adds b) By friends c) Relatives

12. What is your opinion about advertisement? [ ]

a) Excellentb) Good c) satisfactory d) poor

13. Which brand will you choose to buy? [ ]

a) Bajaj b) Honda c) Hero Honda d) T.V.S

14. Would you suggest Honda to others? [ ]

a) Yes b) No

15. What is your suggestion to Honda Motors

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

16. what is your suggestions to Honda Dealers

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56

BIBLIOGRAPHY

57

Bibliography

(1) Philip.Kotler:A frame work for “marketing mgt”,

__ second edtion , page no: 96-98.

(2 )G.c.barri “marketing research”’ tata mc-graw

__fourth reprient 2002, page no:367.

(3) M.narasinham “ report of the committee on financial system”.

__reserve bank of Indian publication 1991,page no:34.

(4)Indian journal of marketing;nov 2006,page no:3-7.

Web sites:

1)www.google.com

2)http:/en.mimi.hu/marketing web/market potential/html.

3)http:/en.wikipedia .org/wiki/potential competition.

4)www.honda2wheelers.co.in

5)www.honda.com

58