51 sip report landmark honda

S. K. Patel Institute of Management and Computer Studies

Landmark Honda


INTRODUCTION

Automobile Industry in the World:

The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the world's most important economic sectors by revenue. The term automotive industry usually does not include industries dedicated to automobiles after delivery to the customer, such as repair shops and motor fuel filling stations.

Around the world, there were about millions of cars and light trucks on the road, consuming over 260 billion gallons of gasoline and diesel fuel yearly. The first practical automobile with a petrol engine was built by Karl Benz in 1885 in Mannheim, Germany and began the first production of automobiles in 1888.

In 2010,China is the country which produced 1,82,64,667 cars & it made China no. 1 car producing company in world. India has got 7th position in producing car last year. Toyota had got 1st position in motor vehicle manufacturing companies by volume in 2009. Honda had got 7th position in this survey.

Automobile Industry in India:

The Automotive industry in India is one of the largest in the world and one of the fastest growing globally. India manufactures over 17.5 million vehicles (including 2 wheeled and 4 wheeled) and exports about 2.33 million every year. India's passenger car and commercial vehicle manufacturing industry is the 7th largest in the world, with an annual production of more than 3.7 million units in 2010.

According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12.In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand.

Tata Motors is leading the commercial vehicle segment with a market share of about 64%. Maruti Suzuki is leading the passenger vehicle segment with a market share of 46%.Hyundai Motor India and Mahindra and Mahindra are focusing expanding their footprint in the overseas market.

The key to success in the industry is to improve labour productivity, labour flexibility, and capital efficiency. Having quality manpower, infrastructure improvements, and raw material availability also play a major role. Access to latest and most efficient technology and techniques will bring competitive advantage to the major players.

The four wheeler segment comprises of the passenger vehicles, utility vehicles and multi-purpose vehicles. India is the 11th largest passenger car market in the world and prominently features on the major automobile players’ road map. The passenger cars segment is has the largest share in the domestic passenger vehicles industry.

Landmark Honda


It contributes to a total volume of 78% and the rest of the share is enjoyed by utility and sports vehicles. Some of the key players in the market are Maruti Udyog Ltd. Tata Motors Ltd., Hyundai, Toyota, Honda, Ford and GM. The newer entrants are the marquee brands like Mercedes-Benz, BMW and Volkswagen.

As a part of my summer training undertaken at Landmark Honda (Ahmedabad), I have got an opportunity to learn and understand the process how Landmark Honda deals with its Clients.

First of all the core objective of my summer training was to understand the practical working of an organization, which so far I had only read about in the books. This training was my first experience of working in any organization which gave me an opportunity to look at the various aspects such as the hierarchy of employees in the organization, functioning of various departments, flow of information etc.

How to apply the theoretical knowledge was gained during my course of MBA Programme. This involves a wide area of topics like organization behaviour, structure and design of organization, research methodologies.

Another main objective was to get a first-hand experience of working in an organization, which would be helpful for my future endeavour. For any MBA student it is crucial to get a good experience during the summer training. This gives the student a closer view of the actual working, thus maturing the view of the student as regards to the same.

To understand the system better, it is very necessary to understand the mechanism that facilitates it. Considering the competition in the Indian automobile market I felt that it would be meaningful to understand the experience of customer to establish long lasting relationship with customer.

Moreover, I am asked to get 10 customers during 1st of June to 15th of July, do go in the corporate and society events and do visit the customers with sales persons etc. By doing so I am able to find out that what are the customers’ perceptions about Honda cars, are they going to purchase the car or not, what might can extra be added to convince the customers, how to convince them to buy the Honda cars and how much discount we need to give them etc.

Landmark Group has been operating in the automobile business with over 4 premium brands through 16 states - of – art facilities spread across the state of Gujarat & Madhya Pradesh.

The group has employee strength of over 1200 people with the lowest attrition rate in the industry.

Landmark Honda


The group is the pioneer of auto insurance marketing in India. It has established state - of - art call centre & BPO facility at Ahmedabad & Mumbai.

Landmark Group’s success primarily attributed to the large set of satisfied employees and its customer centric approach. Customer service is at the centre of all the activities across at all levels in the Group.

Honda is a Well known company in automobile sector all over the world and Landmark is representing Honda through its dealership in Gujarat in four cities namely Ahmedabad, Rajkot, Surat, Mahesana. Landmark was the only dealer in Ahmedabad of Honda till 2008. Emerland Honda started before three years and is a main competitor of Landmark in Ahmedabad.

Landmark Honda covers the entire spectrum of the Automobile related activities like:

Car Exchange facility through Honda Auto terrace. Unmatched car finance solutions. Comprehensive Motor Insurance services, Annual Maintenance services.

Landmark Honda is the largest Honda car dealer in Gujarat today and is also ranked No.1 Honda car dealer in India for customer satisfaction under J.D.Power survey. It has around 27000 happy and satisfied car owners within Gujarat.

About the Promoters:

Mr. Sanjay Thakker is the promoter & chairman of the Landmark Group, which is a well established chain of retail automobile business for the internationally acclaimed brands namely HONDA, Mercedes-Benz & VOLKSWAGEN.

He was born in the year 1965 and has done his graduation in commerce from Sydenham’s college, Mumbai. He comes from a respectable business family and his family business comprised of international trading of grains, shipping, textile mills and real estate development since the year 1930.

Automobile Business:

Honda:

Mr. Sanjay Thakkar started the retail automobile business in the year 1998 from Ahmedabad with the authorized dealership of Honda cars under the dealership name of Landmark Honda. Over a period of last 13 years Landmark Honda has grown as one of the largest Honda dealers in India. Landmark Honda currently operates from Ahmedabad, Rajkot, Surat & Mehsana. The dealership has a large customer base of over 28,000 Honda car owners in

Landmark Honda


Gujarat who are served from 7 different locations. Landmark Honda- Ahmedabad has best state-of-art used car facility in the country today.

Landmark Honda contributes nearly 8% to all India Honda new car sales.

Landmark deals in all the models of Honda, which are:-

Honda Brio. Honda Jazz Honda City. Honda Civic. Honda Accord. Honda CR-V.

Mercedes-Benz:

Benchmark cars are the authorized dealership for Mercedes-Benz passenger car for the state of Gujarat & Madhya Pradesh. Benchmark Cars is one of the largest Mercedes-Benz passenger car dealerships in India. It is the fastest growing dealership in the business of luxury car segment. Benchmark Cars topped the Best Dealership award, Best Sales & after sales award in Inda for 2010.

Benchmark deals in the following models of Mercedes-Benz in India:

Mercedes S class. Mercedes C class Mercedes R class Mercedes E class

Volkswagen:

Landmark Group is one of the promoters of the dealerships for Volkswagen cars in Ahmedabad, Vadodra, Rajkot, Gandhidham & Vapi. The group is one of the largest Volkswagen dealers in India.

The Auto mark Volkswagen deals in the following models of Volkswagen.

Volkswagen Polo. Volkswagen Vento. Volkswagen Jetta. Volkswagen Beetle.

Landmark Honda


Volkswagen Passat.

Insurance Business:

Landmark group is also involved in the insurance business on a very large scale. It initiated the general insurance business in the year 2001. Today, it is India’s one of the largest insurance broking house having its network spread all across India with a large base of over 1, 00, 000 customers.

Landmark Honda


Landmark House Ahmedabad:

Landmark House,

Nr. Gurudwara,

Thaltej, S.G. Highway,

Ahmedabad.

Call: 9327097000/07966064503

Landmark Honda


Landmark House Mehsana:

Nagalpur Highway,

Survey No.3350,

Mehsana-384002.

Phone: 02762-664545/9825232213

Landmark Honda


Landmark House Rajkot:

Gondal Rod,

Gondal Ahmedabad bypass circle,

N.H. 8 – B, Vavdi,

Rajkot – 4

Phone: 9377114000

Landmark Honda


Landmark House Surat:

Nr. Rudnath Mahadev,

Dumas Road,

Surat – 395007.

Phone: 9376113000

Landmark Honda


Research Methodology

Objectives of the Study:

The sales and distribution of Landmark Honda cars.

Scope of the study: It talks about the area or region covered in the project report or may talk about the period of study etc.

To know how Landmark do the sales of Honda cars, I went to the different locations of Ahmedabad and Gujarat with the employees of Landmark Honda from 1 st

of June to 15th of July.

Data Collection:

Primary data

Secondary data

If Primary data is not used, do not mention about primary data

Brochures of Landmark Honda Communication with employees of Landmark Honda

Sample Design: (If primary survey is done)

Type of Research, Type of sampling, Sample Size (With Justification), Sample Frame or unit ( Population covered with specifications like salaried, businessmen etc. if required)

Data Analysis Tools:

Statistical models like chi-square test, regression analysis, correlation etc.,

Concepts like SWOT analysis, Porter’s Five Force Model, BCG Matrix etc. (Use these statistical models and concepts according to necessity)

Limitations of the project:

Landmark Honda


Industry Profile

The Indian automobile industry is the tenth largest in the world with an annual production of approximately 2 million units. Indian auto industry, promises to become the major automotive industry in the upcoming years and the industry experts are hopeful that it will touch 10 million units mark.

Indian automobile industry is involved in design, development, manufacture, marketing, and sale of motor vehicles. There are a number of global automotive giants that are upbeat about the expansion plans and collaboration with domestic companies to produce automobiles in India.

The major car manufacturers in India are Maruti Udyog, Hyundai Motors India Ltd., General Motors India Pvt. Ltd., Honda Siel Cars India Ltd., Toyota Kirloskar Motor Ltd., Hindustan Motors etc.

The two-wheeler manufacturers in India are Honda Motorcycle & Scooter India (Pvt.) Ltd., TVS, Hero Honda, Yamaha, Bajaj, etc. The heavy motors including buses, trucks, auto rickshaws and multi-utility vehicles are manufactured by Tata-Telco, Eicher Motors, Bajaj, Mahindra and Mahindra, etc.

It talks about the industry related to the company selected for the project. It includes data like major players and their main products, market shares of company and competitors, recent developments and future prospects.

Quick Facts:

First Indian to own a car in India was Jamshedji Tata. First woman to drive a car in India was Mrs. Suzanne RD Tata. The passenger car and motorcycle segment in the Indian auto industry is growing

by 8-9 percent. Commercial vehicle will grow by 5.2 per cent. The first automobile in India was rolled in 1897 in Bombay. India is a potential emerging auto market. Motorcycles contribute 80% of the two-wheeler industry. Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%). India is the largest two-wheeler manufacturer in the world. India's motorcycle segment will grow by 8-9 percent in the coming years. 11.

India is the fifth largest commercial vehicle manufacturer in the world. 12. India has the number one global motorcycle manufacturer. 13. In Asia, India is the fourth largest car market.

Used car Market:

Landmark Honda


The new chapter in the automobile industry is that of used cars. The massive demand of used cars indicates that cars are becoming increasingly popular. Those who can't afford the luxury cars and their high prices are opting for used cars. In today's time, customers are conscious and diligently investing on car dealership. Car buyers are investing heavily a lot of time for both to sell a car and buy car. There's also a number of car websites that have offering detailed information on new car prices, used cars, car reviews, Chevrolet cars, jaguar cars and luxury cars.

Market Share:

At present major Indian, European, Korean, Japanese automobile companies are holding significant market shares. In commercial vehicle, Tata Motors dominates over 60% of the Indian commercial vehicle market. Tata Motors is the largest medium and heavy commercial vehicle manufacturer.

Automobile industry is currently contributing about 5% of the total GDP of India. India’s current GDP is about $ 1.4 trillion and is expected to grow to $ 3.75 trillion by 2020. The projected size in 2016 of the Indian automotive industry varies between $ 122 billion and $ 159 billion including USD 35 billion in exports. This translates into a contribution of 10% to 11% towards India’s GDP by 2016, which is more than double the current contribution.

Automobile Industry in India:

A BACKGROUND OF FOUR WHEELER IDUSTRY:

A closer look at the four-wheeler segment in India:

The four wheeler segment comprises of the passenger vehicles, utility vehicles and multi-purpose vehicles. India is the 11th largest passenger car market in the world and prominently features on the major automobile players’ road map. The passenger cars segment is has the largest share in the domestic passenger vehicles industry. It contributes to a total volume of 78% and the rest of the share is enjoyed by utility and sports vehicles. Some of the key players in the market are Maruti Udyog Ltd. Tata Motors Ltd., Hyundai, Toyota, Honda, Ford and GM. The newer entrants are the marquee brands like Mercedes-Benz, BMW and Volkswagen.

Car sales in India have risen rapidly since 2006 on the back of strong economic growth and government incentives and this trend will continue in 2010 too. Industrial growth has also lead to an increase in the multi-utility and the utility vehicles.

Key Success Factors:

Landmark Honda


The Key Success factors in the Motor Vehicle Manufacturing industry are:

Efficiency factor - Improve labour productivity, labour flexibility, and capital efficiency Resource Availability - Quality manpower availability, infrastructure improvements, and raw material availability

Effective cost controls - Close relationship with supplies and goods distribution channels.

Establishment of export markets - Growth of export markets Having an extensive distribution/collection network - Goods distribution channels Successful industrial relations policy - Ethical and tactical industrial relations Access to the latest available and most efficient technology and techniques - The degree of investment in technological improvements and product development

Optimum capacity utilisation - The level of plant utilisation Management of high quality assets portfolio - Understanding implications from Government policies

Concerns:

Higher domestic inflation and increase in fuel prices are other major concerns. Without a concomitant increase in freight rates increase in fuel price will have a negative impact on demand for CVs.

Because of tough competition from the HYUNDAI VERNA…

Demand drivers

Increase in affordability - The demand for passenger cars are driven mainly by greater affordability, which in turn increases the aspiration level of the customers. Today with high amount of disposable income in the hand of Indian youth, who forms major portion of the population, market has larger addressable market.

Demographic drivers- Cars being aspiration products, purchase decisions are influenced by the overall economic environment. Increase in per capita income increases the consumption tendency of the customer. Growth in per capita income and rising aspirations and changing lifestyle is leading to increased preference for cars over two-wheelers, which is also having a positive rub off on car demand.

Landmark Honda


Replacement cycle, second car and up gradation- - Factors like the rapid pace of new product introductions, New offerings - car sales increases when a new model hits the market. Due to escalation in competition in Indian car market, frequency of new model launches has increased. In the past one year only the Indian car market has seen many launches namely SX4, Swift Diesel, Zen Estilo, Spark, Logan, etc.

Landmark Honda


Company Profile

It describes company’s activities in terms of historical developments, products, markets served, marketing policies, technology and financial performance (at least of the last financial year).

Landmark Honda

51 sip report landmark honda

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