RayatShikshanSanstha’s

K.B.PVashi, Navi Mumbai

RESEARCH REPORTON

MARKETING STRATEGY OF HONDA AND BRAND LOYALTY TO CONSUMERS

Submitted To:Archana Salunkhe

BACHELOR OF MANAGEMENT STUDIES

Session -2014-15

Submitted By:

6556 Prajakt purav Class: TY BMS

DIV:

Introduction of Study .

This report takes a look in the marketeering straightly about the brand . This report includes the preference , expectations , likes and dislikes about the preffered brand . To study the consumers personal views regarding the

branded

Sr.No Topic Pg.NOChap 11.11.21.31.4

Introduction to studyIntroductionObjective of studyScope/imp of studyResearch study1.4.1 type of reschers1.4.2 sampling1.4.3 method

2 Methodology and Research and Development3 1. Company Profile

o Origin

o Growth and Development

o Present Strategy

o Future Strategy

4 2. Promotion Strategy for honda

o Promotion Plan

o Types of Promotion

5 Data Analysis & Data Presentation6 Recommendations7 Result and Observation (Conclusion)8 Questionnaire9 Bibliography

The company operates in auto mobil industry major in manufacturer of Car, bikes for the consumers . The company’s offerings various types of car include luxury car ,family car and SUV’s . The firm also continues to

be a trusted provider of automobile universally .

Objectives of the study :-

A good research design must focus its attention on research objectives . Such objectives need to be clear to the researcher . The whole research process is for achieving the research objectives . The research objectives are based on the type of research .

The objectives of this particular research study are :-

1. To study the straights used to attract consumers .

2. To know the expectations of people about the brand . .

3. To find out the factors influencing people while purchasing branded . Price , use in daily life , Quality , Durability .

Importance / Scope of sutdy :-

The research study is important to find out the consumer preference regarding the particular brand . In this project the research study is important to know the consumer preference , personal views and expectations about the company . Its important to take change in products , price , quality , durability according to the consumers expectations .

Research Methodology :-

1 . Type of research .

It refers to a system of company , procedures and techniques to find the result of a research problem . there is no one universally accepted model or

technique that is used to collect

information and data . As a matter of fact , there are different research techniques which are used to collect data.

2. Exploratory research .

Its undertaking when not much is known about the problem . In this research data is collected through observation and interviews . Exploratory

research is also undertaken when some factors are known but more information is needed to prepare on acceptable theoretical model . This type of research is conducted because a problem has not been clearly

defined .

Sampling

Research designee and Layouts

Sampling methods: simple random sampling

Type of research: exploratory Sample units working people in vashi area

Sample size 30Methods of data collectionsPrimary data: questionnaireSecondary data: internet

. Method of Data :-

Data is of two types which are as following :

1 . Primary Data :

Primary data constitute first hand information which is collected for the first time in order to solve research problem . Such sata are not collected earlier

by anybody for any other purpose .

Personal interviews by the manager Questionnaire Word talk’s to consumer/peoples

2 . Secondary Data :

Secondary data is next to primary data . This data is already collected amd complied for the other purpose by someone other than the researcher

himself

Magazines Press report Newspaper Internet

Questionnaire Method of data collecting :

Questionnaire is the most common research tool used for data collection under field investigation . It’s a well planned list of questions prepared by

researcher for the information and reference of interviewer . He has to ask questions to respondent as per questionnaire and note the answers

supplied by the respondents .This questions can be either open-ended or close. Questionnaire is used when data is collected through personal

interviewer or through telephone survey or mail

Company profile

Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than 14 million internal combustion engines each year.[5] Honda became the second-largest Japanese automobile manufacturer in 2001. Honda was the eighth largest automobile manufacturer in the world behind General Motors, Volkswagen Group, Toyota, Hyundai Motor Group, Ford, Nissan, and PSA in 2011.

Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand, Acura, in 1986. Aside from their core automobile and motorcycle businesses, Honda also manufactures garden equipment, marine engines, personal watercraft and power generators, amongst others. Since 1986, Honda has been involved with artificial intelligence/robotics research and released their ASIMO robot in 2000. They have also ventured into aerospace with the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420 HondaJet, which began production in 2012. Honda has three joint-ventures in China (Honda China, Dongfeng Honda, and Guangqi Honda).

In 2013, Honda invested about 5.7% (US$ 6.8 billion) of its revenues in research and development. Also in 2013, Honda became the first Japanese automaker to be a net exporter from the United States, exporting 108,705 Honda and Acura models while importing only 88,357.

History

Honda Motor Co., Ltd., established in 1948, is Japan’s #3 automaker after Toyota and Nissanand the largest manufacturer of motorcycles in the world.It is the world’s largest producer of internal combustion engines, including its motorcycle and power products businesses. The Company is recognized internationally for its expertise and leadership in developing and manufacturing a wide variety of products, ranging from small general purpose engines to specialty sports cars that incorporate Honda's highly efficient internal combustion engine technology. It has a global network that comprises 434 subsidiaries and affiliates, including 118 production facilities in 33 countries. Approximately 11.5 million Honda engines were sold worldwide during the fiscal year ended March 31, 2000. The company's car models include the Accord, Legend, and Civic, as well as the luxury Acura and the Insight a gasoline electric hybrid. Japan and North America each account for more than 40% of sales.

Growth And Development

Northern American Market before the1990’s, the automobile sales has been cyclical with duration of 5-7 years. In the 1990’s the industry continued to grow for a long time and recorded historical high sales in 1999. However, we assumed the trend would go back to that of“before 90s” and the unit growth would be basically zero although there would be ups and downs yearly basis. In FY Mar. 2001in North America, net sales increased 7.8%, to ¥2,999.4 billion ($24,209 million). Although U.S. industry demand grew 2.6%, to 17.4 million units during calendar 2000, it is expected to drop to the 16.0 million to 16.5 million unit level in

2001 amid concerns over a continuing economic slowdown. North America accounts for 57.3%of total revenue of Honda. Even amid fears of a slowdown in the U.S. economy, Honda sold a record-breaking 1,346,000 units in fiscal Mar. 2001. Brisk sales of the Odyssey and Acura TL, as well as the introduction of the brand-new Acura MDX SUV, helped improve the Company’s model mix and contributed greatly to these results. The Company expects its North American sales in fiscal Mar. 2002 to expand to 1.37 million units, an increase of 1.8%. Anticipating that the light truck market will continue to be a growth area, Honda plans to expand the production capacity at the second production line of the Alliston plant in Canada from 170,000 to 180,000 units to meet the massive demand for the Odyssey and Acura MDX. Further, production of the Odyssey will start in the new plant in Alabama in late 2001.In the next five years, we assume Honda can gain market share in the Northern American market due to the introduction of new products in Minivan/SUV segment. In addition, due to the favorable product mix change, the average unit price would rise in the Honda’s Northern American segment.

Samsung Business StrategyR&D is sharpening the business advantage of Honda, together with the fierce competition between Honda and competitors, and they all define theB u s i n e s s S t r a t e g yof Honda. One of the proudest things about Honda is its R&D system. With the systematic way of approaching, focus on durability, reliability and basic performance to establish a creative and innovative technical foundation. With the wisely approach to the future, the Honda products do care about the economical, environmental, and social issues–This leads to a increase steady in American and Europe recently meanwhile the whole industry is going down by some external factors such as U.S.D. depreciation, Oil price raising, political recession … Honda is keeping involving in the research and development that benefit people in the future through leading-edge technology and commitment to innovation that opens up new possibilities in mobility

Types of strategies

Operating strategies The individual strategies Decision making The six external environment

1. Natural2. Cultural environment3. Economic environment4. Public/Legal environment5. Technological environment6. Business and Industry

Global challenges Analyze the firm structure Organization process Locate the firm position on the social responsibility Managing people Evolution and controlling

FUTURE STRATEGIES

Advancing environment technology Strengthening Manufacturing Systems and Capabilities Strengthening Business in Emerging Market Outlook and Implications

PROMOTION STRATEGIES FOLLOWED BY HONDA

PROMOTION:

Promotion is an element in an organization Marketing Mix that serves to Inform,

persuade and/or remind people about an organization's or individual's goods,

service, Image, ideas, community, involvement or impact on society. Promotion is

used in hopes of influencing the recipient's feeling beliefs, or behaviour, through

any form of communication.

Promotion Plans:

Promotion for Dealers:

o The company: Promotion by Honda to whole seller have given the credit

loan facility and .

o Retailer: Commission and after sales service give to the retailer to promote

their product.

o PROMOTION OF CUSTOMERS

Honda has given to the different car to the different customer using different techniques of promotion like product differentiation

TYPES OF PROMOTION FOLLOWED BY HONDA

1. Advertising

2. Personal Selling

3. Sales Promotion

4. Publicity

5. Public Relations

6. Word of Mouth

7. Direct Mail

Data analysis and interpretations of data

RECOMMENDATIONS

1. More attention and concern should be given to the highest selling outlets of Honda

and the chain should reach to the consumer as well.

2. Company should invest money on advertising through media, Internet and personal

selling to promote the products, to increase awareness in the market.

3. Holdings on outlets and publication in the prominent magazines help in increasing its

awareness among the consumer to evoke the demand of their brand.

4. Policy of replacing problem arising sets should be done timely and the retailer should

be accommodated immediately.

5. Allurement and discount schemes should be given to the highest selling outlets of

Honda and the chain should reach to the consumer as well.

6. The sales executive should go to each outlet of their route once in a week and try to

cover outlet that are in a distributor network.

7. The net and free test drive scheme should be the same for every person .

CONCLUSION

As per the research work done by us, we conclude that automobile industry is

growing with a very great pace and has a very remarkable prospect in future.

Honda is leading player in the automobile industry and is very much ahead

from its competitors who are still trying to compete with it. In any markets

there are market leaders and followers, and in most cases market leaders lose

market share to followers, for many reasons such as pricing, availability, "user-

friendliness", relevance to the target audience etc. It's inevitable. Can Honda be

beaten? On one hand, it is up to Honda marketing department, and its agencies.

So far the brand has established itself well in many markets, and consumers

have identified with what the brand has to offer. But that does not mean they

cannot lose the brand battle. To remain at the front of the pack, one must

constantly be innovative, the minute you lose that edge competitors will

definitely overtake. On the other hand it also depends on the competitors. How

far are they willing to stretch? Are they willing to take Honda head-on? How?

What will the outcome be? For the same reason that Honda has managed to

gain market share.

Questionnaire

Name:…………………………………………………………………

Age:……………………………………………………………………

Address:………………………………………………………………

Contact No.…………………………………………………..……….

1. Do you have car?

Yes

No

2. Which brand you prefer?

Honda

Hyundai

Suzuki

Others……………………………………………………………

3. Have you satisfied with the function of preferred car brand?

Yes

No

4. Are you satisfied with price range of preferred product ?

Yes

No

5. What is the reason behind your preference for the above particular car?

Price

Quality

Technology

Design

Style

6. Which is the most popular market capturer according to you?

Honda

Hyundai

Suzuki

Others

7. What is the reason behind your preference for the above market capturer ?

Advertising

Quality Assurance

Price affordability

Resale value

Warranty period

8. Do you want any change in preferred brand ?

Yes

No

9. what you prefer in your car

Space

Luxury

Boot space

BIBLIOGRAPHY

WEBSITES :-

www.google.com

www.honda.com

www.slideshare .com