ORDINARY IS OUT…

ORDINARY IS OUT… AMAZING IS IN!

HONDA: A BRIEF OVERVIEW Manufacturer of automobiles, motorcycles and power equipment, headquartered at Tokyo, Japan. World’s largest motorcycle manufacturer World’s largest IC engines manufacturer World’s 8th largest automobile manufacturer Brand Honda: Innovation and quality assurance

PRODUCTS PRODUCT MIX PRODUCT Core benefit- Why one purchases a car?- medium of transportation Basic product- BRAND-honda, spacious, many colours,

KEY FEATURES KEY FEATURES

PRICE PRICE

PLACE PLACE SALES SERVICES 3 S SPARES 179 Outlets

PROMOTION PROMOTION Youtube Advertisement: https://www.youtube.com/watch?v=3z9rYGKXIGY

PESTLE ANALYSIS Political Economic Social Technological Legal PROMOTION PESTLE ANALYSIS Political Economic Social Technological Legal Environmental

POLITICAL FACTOR Political Factor Green Tax: Government may or may not consider any additional cess on diesel cars, control their sales and make up for the subsidy that is given to the fuel. Currently, petrol and diesel cars are taxed at the same rate. The Supreme Court had sought the centre’s response to a radical plea for collection of 25% of the cost of a diesel car or SUV sold in the national capital region as green tax at the time of its purchase to deter people from buying them as they are considered more polluting than petrol cars.

ECONOMIC FACTOR Economic Factor Slowdown pressures clearly weigh heavy on car sales as the festive cheer failed to add much fervor to demand in last November, dampened by high interest rates and uncertain economic climate. Till there is a decrease in interest rates for corporate or retail credits, financing rates will remain high for auto customers which is a cause of concern. The adverse market conditions due to high interest rates and inflation continued to pose challenges to growth.

Socio Environmental Factor Amaze will join the Brio hatchback in the eco car program where the government has offered a host of incentives to automakers as part of the drive towards cleaner emissions.

TECHNOLOGICAL FACTOR Technological Factor Owing to the considerable difference between the prices of Petrol and Diesel, Indian customers are heavily inclined towards Diesel vehicles. This fact has made many auto manufacturers come up with Diesel vehicles. By launching its first Diesel vehicle in India, Honda is all set to leave a long lasting impression in this category as well. This technological factor would pave the road for future Diesel range of Honda motors throughout the world.

LEGAL FACTOR Legal Factor Honda Amaze belongs to the compact sedan category, meaning it is less in length when compared with a regular sedan. Reduction in length as well as eco-friendly nature of Amaze has entitled it to reduced taxation per unit. From 25%-27% to 12%, the reduction in taxes is tremendous.

ENVIRONMENTAL FACTOR Environmental Factor Honeywell Turbo Technologies, a global leader in automotive turbocharger development, has designed and built the turbocharger for Honda Amaze. This device offers excellent fuel economy and reduced emissions without sacrificing performance. Noise reduction mechanism in the vehicle makes sure minimum noise pollution. Despite being a Diesel car, the noise levels of Honda Amaze are comparable with those of a typical Petrol vehicle.

SEGMENTATION Geographic segmentation : Demographic segmentation : Regions : Metro cities Tier II and III cities – Currently totalling 102 cities Demographic segmentation : Age and Life cycle stage : Family decision makers Corporate executives in age group 25-35 Income : Mid-income and upper-mid income groups

SEGMENTATION Psychographic segmentation: Life style : Convey status Stylish design and looks at affordable price Preference for Sedan compared to Hatchback Behavioural segmentation : Benefit : Quality Fuel efficiency

TARGETING Mid-income and upper-mid income families Young corporate executives Two wheeler upgraders

Status symbol Fuel efficient High quality Spacious Value for money POSITIONING Status symbol Fuel efficient High quality Spacious Value for money

CONSUMER BEHAVIOUR Consumer Behaviour Disposable Income Increase in employed youth Family Size Family Needs Better safety at roads Lifestyle Mileage

CONSUMER BEHAVIOUR Consumer Behaviour Trunk space and lights One of the most important parameters is Family needs. The important features required by families are : Trunk space and lights Increased Leg space Cup and Bottle Holders Music System with Front and Rear speakers Highly comfortable seats High end colours available

CONSUMER BEHAVIOUR Consumer Behaviour Front Dual SRS Airbags The following road safety features exist in Honda Amaze : Front Dual SRS Airbags Front Seat Belt pretensioner with Load Limiter ABS with EBD Driver Seatbelt Reminder High Mount Stop Lamp

7 ‘O’ FRAMEWORK 7O Framework Occupant Working Class Object Compact Sedan Objective Stated Needs : Spacious, beautiful, road safety, mileage Unstated needs : self esteem, moving up in social groups Occasion Festivals, Promotion, Marriage Outlet Showrooms Operations Sales, Services & insurance Organisation Initiator : Relatives, Friends, Ads Influencer : Friends, Spouse, Children, Parents Decider : For a family, generally its Father Purchaser : For a family, both Father and Mother User : Family members

Other Assets(patents/trademarks) Brand Equity BRAND EQUITY Brand Awareness Perceived Quality Brand Equity Other Assets(patents/trademarks) Brand Associations Brand Loyalty

BRAND AWARENESS Regional Newspapers: Target the head TV: Target the heart Social Media: The #HondaDiesel trended nationally on the 3rd position, receiving around 8,467 tweets, 5,169+ retweets and 843 mentions, thus reaching 3.04 million Twitter users.

PERCEIVED QUALITY Perceived Quality Overall Average 4.25 Looks 3.5  3.5 Performance  4 Space/Comfort Fuel Economy 4.75 Value For Money

BRAND ASSOCIATION PATENTS/TRADEMARKS More than 1 lakh cars sold in 16 months Fastest in history of Honda PATENTS/TRADEMARKS Patented in China Will Honda export to China?

COMPETITOR ANALYSIS

MAJOR COMPETITORS MAJOR COMPETITORS : Hyundai Xcent Maruti Dzire OTHER COMPETITORS: Tata Indigo and Tata Manza Mahindra Verito Vibe Toyota Etios Chevrolet Sail

SPECIFICATION BATTLE Hyundai Xcent Honda Amaze Maruti Swift Dzire   Hyundai Xcent Honda Amaze Maruti Swift Dzire Engine 1.1l, 3 cyl, CRDI 1.5l, 4 cyl, i-DTEC 1.3l, 4 cyl, DDiS Max Power 72PS 100PS 75PS Max Torque 180.4Nm 200Nm 190Nm Wheelbase (mm) 2425 2405 2430 Dimensions in mm (LxWxH) 3995x1660x1520 3990x1680x1505 3995x1695x1555 Fuel Efficiency (claimed) 24.4kmpl 25.8kmpl 23.4kmpl Kerb Weight NA 1060kg 1050kg Price (Ex-Delhi) 5.57lakh 5.97lakh 5.78lakh

FEATURE BATTLE Hyundai Xcent Honda Amaze Maruti Swift Dzire Styling 2   Hyundai Xcent Honda Amaze Maruti Swift Dzire Styling 2 1 3 Interiors Performance Driving Dynamics Safety Mileage Equipment Verdict

FEATURE BATTLE Hyundai Xcent Honda Amaze Maruti Swift Dzire Autocar 2   Hyundai Xcent Honda Amaze Maruti Swift Dzire Autocar 2 1 3 Motorbeam Overdrive Cartrade Zigwheels CarDekho

FUTURE COMPETITORS Tata Zest Volkswagen New Vento Toyota Vios Peugeot 301 Fiat Viaggio

Market Research MARKET RESEARCH

SWOT ANALYSIS Threat Economic slow down Opportunities Weaknesses Strengths Strong brand image R & D capabilities Fuel efficient and Eco- friendly engines Weaknesses Expensive spare parts and labour cost No emergency service facility available Low production capacity- long waiting period Declining operating margins Opportunities Hybrid Technology Less competition in diesel variants cars ( mid sized –sedan) Advent of e-commerce Threat Economic slow down Competition Tightening emission control Sales outlets are less in number comparatively

Recommendation PORTER’S FIVE FORCES

RECOMMENDATIONS Recommendation Increase the production capacity to meet the demand which in-turn reduces waiting period Increase dealerships and service networks Increase promotions and advertisements Market penetration strategies in rural areas

4 Group Presented by: Rohith Aravalli Karan Dedhia Rishi Jain Vineet Mishra Priyesh Saurabh Yashowardhan Swami Krati Rathi Group 4