a case study on honda amaze

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PRESENTED BY : 13126 AJAY S A 13131 ANUSH G 13170 SHRADDHA CHHAPOLIA 13175 SUDIPTA PAN 13180 VENKATESH KULKARNI

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With respect to Honda amaze a detailed marketing analysis was performed.

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Page 1: A case study on Honda Amaze

PRESENTED BY :

13126 AJAY S A

13131 ANUSH G

13170 SHRADDHA CHHAPOLIA

13175 SUDIPTA PAN

13180 VENKATESH KULKARNI

Page 2: A case study on Honda Amaze

HONDAFounders- Soichiro Honda, Takeo Fujisawa

Mr Hironori Kanayama is President & CEO of

Honda Cars India ltd. with effect from 1st April, 2012 .

Honda Cars India Ltd. (HCIL) is a subsidiary of

the Honda of Japan.

In August, 2012, Honda bought out Usha International's

entire 3.16 percent stake . The company officially

changed its name to Honda Cars India Ltd.

Page 3: A case study on Honda Amaze

HONDA AMAZE

Honda Motors introduced its first diesel car, the

Amaze.

On April 11, 2013 Honda Amaze was introduced

to Indian market.

The Amaze will compete with Maruti Suzuki

India Ltd.’s DZire and Tata Motors’ Indigo.

Honda says it’s the most fuel efficient of the cars

in the diesel car segment at 25.8km per litre.

Page 4: A case study on Honda Amaze

Variants Ex-Showroom Price (New Delhi)

 

Honda Amaze 1.2 EMT i-VTEC

1198cc Petrol, Manual, 18 kpl₹ 4.99 lakhs  

Honda Amaze 1.2 EXMT i-VTEC

1198cc Petrol, Manual, 18 kpl₹ 5.27 lakhs  

Honda Amaze 1.2 SMT i-VTEC

1198cc Petrol, Manual, 18 kpl₹ 5.69 lakhs  

Honda Amaze 1.5 EMT i-DTEC

1498cc Diesel, Manual, 25.8 kpl₹ 6.03 lakhs  

Honda Amaze 1.5 EXMT i-DTEC

1498cc Diesel, Manual, 25.8 kpl₹ 6.30 lakhs  

Honda Amaze 1.2 VXMT i-VTEC

1198cc Petrol, Manual, 18 kpl₹ 6.67 lakhs  

Honda Amaze 1.2 SAT i-VTEC

1198cc Petrol, Automatic, 15.5 kpl₹ 6.70 lakhs  

Honda Amaze 1.5 SMT i-DTEC

1498cc Diesel, Manual, 25.8 kpl₹ 6.73 lakhs  

Honda Amaze 1.2 VXAT i-VTEC

1198cc Petrol, Automatic, 15.5 kpl₹ 7.58 lakhs  

Honda Amaze 1.5 VXMT i-DTEC

1498cc Diesel, Manual, 25.8 kpl ₹ 7.66 lakhs  

Page 5: A case study on Honda Amaze

WHY DIESEL VARIANT??

Indians-mileage obsessed people.

Increasing demand for small engined

diesel car.

Increasing price of petrol.

Over the years this fact pushed Tata

Motor’s sales when they launched

TATA Indica.

Page 6: A case study on Honda Amaze

Assuming , Petrol=Rs.77/ltr Diesel=Rs.55/ltr

Cost per km of diesel variant (Assuming mileage of 19 kmpl ) = Rs 2.8

Cost per km of petrol variant (Assuming mileage of 17kmpl ) =Rs 4.8

Page 7: A case study on Honda Amaze

SALES & DISTRIBUTION NETWORK154 authorised dealership

facilities in 98 cities.“3S facility” format.

TAPUKARA GREATER NOIDA

SHOWROOMS

Page 8: A case study on Honda Amaze

SALES BREAKUP OF HONDA

Page 9: A case study on Honda Amaze

STP

Page 10: A case study on Honda Amaze

SEGMENTATON

Demographic segmentation:

Age and Life cycle stage:

◦ Honda Amaze E MT diesel : Young age group between 21-25 .(Basic model and fuel efficient).

◦ Corporate executives age group between 25-35.

Income:

◦ Medium : upper-middle income group.

Page 11: A case study on Honda Amaze

Psychographic Segmentation:Life Style:

◦ Honda Amaze is targeting upper middle with stylish design

and looks, at an affordable price .

◦ Targets young corporate executives who prefers to travel in a

sedan than a hatch-back car .

Behavioural Segment:

Benefit:

◦ People who are very particular about quality and fuel

efficiency .

◦ since honda is known for its quality products , people will be

pleased to buy honda amaze which excels in quality adding

with fuel efficiency.

Page 12: A case study on Honda Amaze

TARGETING

Upper-middle income bracket.

Attracts young corporate

executives.

Page 13: A case study on Honda Amaze

POSITIONING

Honda Amaze positioning:

“Ordinary is out AMAZING is in.”

Honda positioning:

Basic positioning as QUALITY .

“The power of dreams.”

Page 14: A case study on Honda Amaze

SWOT

Page 15: A case study on Honda Amaze

STRENGTHS

Strong Brand image.

R&D capabilities

Fuel efficient and eco-friendly

engine technology.

Reliability.

Page 16: A case study on Honda Amaze

• Expensive spare parts & labour costs

• Decreased employee productivity.

• No emergency service facility available

(Maruti's MOS)

• Low production capacity-long waiting

period

• Declining operating margins.

WEAKNESS :

Page 17: A case study on Honda Amaze

Hybrid technology

Less competition in diesel variant

cars (midsized-sedan).

OPPORTUNITIES :

Page 18: A case study on Honda Amaze

THREATS

Economy slowdown

Competition

Tightening emission control

Sales outlets are less in number

comparatively.

Page 19: A case study on Honda Amaze

COMPETITOR’S ANALYSIS

• Price-4.99-7.6 lakh• Regular three box

design• ENGINE-1.2

litre(petrol),1.5 litre(diesel)

• Mileage-25.8 kmpl• Sales outlets-150

Honda AMAZE

• Price-4.92-7.5 lakh• Rear seat is cramped.• Engine-1.2

litre(petrol),1.3 litre(diesel)

• Mileage-23.4 kmpl• Sales outlet-1200

Maruti Suzuki Dzire

Page 20: A case study on Honda Amaze

OTHER COMPETITORS :

Mahindra Verito Vibe.

Hyundai plans to launch a sedan

based on i10,HB20 sedan based

already launched in Brazil.

Page 21: A case study on Honda Amaze

MARKET SHARE

Market share calculated for June:

Amaze holds 14.32% of Market share. It

sold 4965 units.

While its competitors Maruti Suzuki

Dzire had 49.61%, Tata Indigo eCS

32.10% and Mahindra Verito Vibe 3.97%

of the market share of total Mid-Size

Sedan segment.

Page 22: A case study on Honda Amaze

Percentage Breakup of Share

49.61

3.97

32.1

14.31

Market Share

DzireVerito VibeIndigo eCSAmaze

Page 23: A case study on Honda Amaze

RECOMMENDATIONSIncrease the production capacity to

meet the demand .Reduce the waiting period.Increase dealership & service

networks. Design of the vehicle can be improved .Increase promotions and

Advertisement .Market penetration strategies in rural

areas. Promotional offers can be introduced.

Page 24: A case study on Honda Amaze