Product : Honda CIVICCompany : HSCI

PRESENTED BY : AMIT KUMAR MBA 2nd SEMDEPT. OF BUSINESS ADMINSTRATION UNIVERSITY OF LUCKNOW(LUMBA)

HOW IT STARTED……..?

• SoichiroHonda (1906-1992) was Japanese engineer and industrialist, and founder of Honda Co.,Ltd.

•In 1937, Honda began producing piston rings-used in motorcycles.

•In 1948, Honda started producing complete motorcycles.

•In 1949, Takeo Fujisawa joined the Honda ( one of the most person lead to Honda’s success )

•In 1968, Launching the Honda 1300-Honda’s first small car.

Contd…..4 Main segment following….• Motorcycle Business • Automobile Business• Financial Services Business• Power Product and other Business Stand the largest motorcycle manufacturerAnd the 7th Automobile manufacturer in The world. On the March 2008 Honda was ranked as the best Car in US by consumer reports

HONDA SIEL CARS INDIA LTD.• Honda Siel Cars India Ltd., (HSCI) was incorporated in December

1995 as a joint venture between Honda Motor Co. Ltd., Japan and Siel Limited, a Siddharth Shriram Group company

• The Honda City, its first offering introduced in 1997

• HSCI’s state-of-the-art manufacturing unit was set up in 1997 at Greater Noida, U.P with an investment of Rs 450 crore. The green-field project is spread across 150 acres of land (over 6,00,000 sq. m.).

• Company standard presently are ISO 9001 for quality management and ISO 14001 for environment management.

KEY PRODUCTS

• Honda City

• Honda Civic

• Honda Civic Hybrid

• Honda Accord

• Honda CR-V

ABOUT PRODUCT : HONDA CIVIC• The Honda Civic is a line of subcompact/compact

cars manufactured by Honda. It was introduced in July 1972 as a two-door coupe, followed by a three-door hatchback that September. The Civic is Honda’s largest selling model globally and is now sold in approximately 160 nations and regions worldwide. Having gone through several generational changes, the Civic has become larger and more upmarket, and it currently slots between the Fit and Accord.

• In India HSCI launched 1.8 V Civic in July 2006

• First Generation (1973-1979)• Second Generation (1980-1983)• Third Generation (1984-1986)• Fourth Generation (1987-1993)• Fifth Generation (1992-1995)• Sixth Generation (1996-2000)• Seventh Generation (2001-2005)• Eight Generation(2006-present)

HONDA CIVIC IN INDIA• HSCI launched the 1.8V Civic in India in July 2006

which became a runaway success. The company has also launched the 1.8V version of the Civic in June 2007. 2007 ‘Indian Car of the Year’.

• The launch of the Civic Hybrid in June 2008 is the fulfillment of yet another commitment HSCI made to its customers - of bringing in latest technologies and models from Honda's global line-up.

TARGET MARKETOn the basis of Demography• AGE : Young , Middle , Elderly • GENDER: Male and Female • PROFESSION: Businessmen, Industrialists, Bureaucrats, Politicians, • Doctors, any successful professional

• INCOME: Upper-middle income group, Upper income group

On the basis of Psychographic• LIFESTYLE: Exciting, Trendy • SOCIAL CLASS: Upper-middle , Upper class

• ATTITUDES & BELIEFS: Environmentalists, Security conscious, Class-sensitive And ultimately whosoever has got the money, passion, and eyes which

appreciate the real beauty......

MARKET SHARE• Honda Civic comes in Lower D Segment or A 4

Executive cars. Along with Civic other cars of same segment are Toyota Corolla Altis, Skoda Octavia, Skoda Laura and Volkswagen Jetta.

• According to 2007-08 sales figure Civic leads the segment by 46% market share, then comes the Skoda Octavia having 33% market share. Toyota Corolla Altis have a Market share of 19% and rest 2% is held by others.

Civic outweigh its class on Power (132 PS @6300 rpm) , Best Mileage (10.6 km/lit) and best Weight-Power Ratio.

MARKET SHARE

HONDA CIVIC 46%

SKODA OCTAVIA 33%

TOYOTA COROLLA 19%

OTHERS 2%

4 PsPRODUCT : PRODUCT VARIANT

• There are 4 variants to Honda Civic• 1.8 E MT• 1.8 V AT• 1.8V MT• CIVIC SPORTThus Product Depth comes to be = 4 For HSCIProduct Width = 6Product Length = 22

COLOURS AVAILABLECOLOURS :Honda Civic 1.8 V AT (Automatic Transmission) and 1.8 V MT is available in 7 colours• Night Hawk Black • Carbon Bronze Pearl • Bluish Silver • Misty Voilet • Habanero Red • Alabaster Silver • Taffeta White Honda Civic E MT ( Base model) is available only in 4 colours:• Carbon Bronze Pearl• Crystal Black • Albaster Silver• Taffeta WhiteHonda Civic Sport is available only in Taffeta White and Civic Hybrid in Premium Pearl

White.

PRICE : PRICELIST

On-Road price-list for Lucknow is

MODEL EX-SHOW ROOM PRICE

RTO INSURANCE ON ROAD PRICE

1.8 E MT 10,03,900 33,098 38,703 10,75,701

1.8 V AT 12,61,000 39,525 47,868 13,48,393

1.8 V MT 11,93,000 37,825 45,444 12,76,269

Sport 12,12,862 38,322 46,152 12,97,336

CREDIT TERMS• EMI FACILITY:One can avail the Honda’s credit facility , which gives credit

at 13% interest rate for a period ranging from 12 to 60 months.

• CORPORATE SALES: Honda also gives certain benefits to select organiation and

customers. Their corporate sales cover the following areas:1. Sales to Corporate Houses2. Canteen Store Department for Indian Defence Forces3. Government Departments4. Special Excise Duty Exemption Sales

• AUTO-TERRACE:

• Under Auto-Terrace Honda provides its customer with exchange facility. Its like an Up-gradation facility , a customer can exchange his old Honda for new one and get compensated as per the situation of the car.

PLACE• SALES AND DISTRIBUTION NETWORK• Honda Siel Cars India has a strong sales and distribution

network spread across the country. The network includes 100 facilities in 59 cities. HSCI dealerships are based on the “3S Facility” (Sales, Service, Spares) format, offering complete range of services to its customers.

The City is manufactured with 74% indigenisation level. Honda has plans to expand its dealership network in view of its launch of new B-segment car JAZZ/FIT in later part of 2009.

PROMOTION DIRECT TOOLS• ADVERTISING:• Through TV Commercials, Print Media (Mainline Newspaper, Magazines-

auto and lifestyle, general), Placing Hoardings and On-line Advertisement.• By giving Sponsored Links on popular social networking websites and

through banners etc INDIRECT TOOLS • SPONSORSHIPS:• Through sponsorship of various environmental and Sport events(like

recently held cricket series against England , Man of the Series : Ishant Sharma got it)

• WORDS OF MOUTH:• Honda’s cars particularly CIVIC are very much appreciated for their superb

performance and stylish aerodynamic looks among general public. Among motorsport lovers worldwide and amateur racer CIVIC is extremely popular as it has the compatibility with huge no. of add-on racing gadgets as was featured in the Vin Diesel starrer movie ‘THE FAST AND THE FURIOUS’.

APPLYING HOLISTIC CONCEPT TO HONDA CIVIC

CUSTOMER FOCUS CORE COMPETENCY

COLLABORATIVE NETWORK

VALUE EXPLORATION

Gap between C and Luxury segment

Technical expertise through racing experience

Joint venture with Hero group provided with consumer behaviour knowledge

VALUE CREATION A balance of style , aerodynamics, power and mileage

Through Indigenising more of the processes to cut cost

Collaboration with Siel Ltd. A Siddhartha Shriram Group Company

VALUE DELIEVERY HONDA CIVIC Expansion of plant capacity by doubling the shift (55,000 to 90,000)

Expansion plans of plant and dealership network.

PRODUCT HIERARCHY

• NEED FAMILY : Transport• PRODUCT FAMILY : Automobile• PRODUCT CLASS : Passenger Vehicle• PRODUCT LINE : Cars • PRODUCT TYPE : Sedan• PRODUCT : Honda Civic

BOSTON CONSULTING GROUPS GROWTH SHARE MATRIX

MODELS YEAR-2006 YEAR-2007 MARKET SHARE (06)

MARKET GROWTH (07)

ACCORD 3000 3000 5.45% 5%

CITY 41,000 38,000 74.54% 63.33%

CIVIC 10,000 17,000 18.18% 28.33%

CR-V 1000 2000 1.82% 3.33%

TOTAL 55,000 60,000 100% 100%

-20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80%0%

10%

20%

30%

40%

50%

60%

70%

Series1; 5%

63%

28%

3%

Y-Values

SWOT ANALYSIS INTERNAL• STRENGTHS1. Technical Know-how through racing experience

and varied market exposure2. Reliable3. Performance oriented4. Has a history of its own• WEAKNESS1. Weaker Brand image , less aggressive marketing2. No Brand endorsements3. Declining operating margins

EXTERNAL• OPPORTUNITIES1. Can capitalize on existing brand2. Interest in environment friendly vehicles3. Cost reduction through R & D 4. Increasing purchasing power of Indian middle class.

• THREATS1. Rising oil and raw material prices World over2. Maruti , Hyundai and other players are planning to

enter D-segment so competition is going to be tough.3. Existing all new Honda City