analysis of marketing mix hor honda siel cars india ltd

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

Product : Honda CIVIC Company : HSCI

8/9/09

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 Hondas success ) In 1968, Launching the Honda 1300-Hondas first small car.8/9/09

Contd..v

4 Main segment following. Motorcycle Business Automobile Business Financial Services Business Power Product and other Business Stand the largest motorcycle manufacturer

v

And the 7th Automobile manufacturer in The world.v

On the March 2008 Honda was ranked as the

best Car in US by consumer reports8/9/09

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

HSCIs 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.8/9/09

KEY PRODUCTS

Honda City Honda Civic Honda Civic Hybrid Honda Accord

8/9/09

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 Hondas 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 20068/9/09

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)8/9/09

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.

8/9/09

8/9/09

On the basis of Demography

TARGET MARKET

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...... 8/9/09

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.

8/9/09

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%

8/9/09

4 Ps PRODUCT : PRODUCT VARIANT

There are 4 variants to Honda Civic 1.8 E MT 1.8 V AT 1.8V MT CIVIC SPORT

Thus Product Depth comes to be = 4 For HSCI Product Width = 6 Product Length = 228/9/09

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 White

Honda Civic Sport is available only in Taffeta White and Civic Hybrid in Premium Pearl White.

8/9/09

PRICE : PRICELISTOn-Road price-list for Lucknow isMODEL EX-SHOW ROOM PRICE10,03,900 12,61,000 11,93,000 12,12,862

RTO

INSURANCE

ON ROAD PRICE

1.8 E MT 1.8 V AT 1.8 V MT Sport

33,098 39,525 37,825 38,322

38,703 47,868 45,444 46,152

10,75,701 13,48,393 12,76,269 12,97,336

8/9/09

CREDIT TERMS

EMI FACILITY:

One can avail the Hondas 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 Houses Canteen Store Department for Indian Defence Forces Government Departments Special Excise Duty Exemption Sales

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3.

4.

8/9/09

AUTO-TERRACE:

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

8/9/09

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.

8/9/09

PROMOTIONDIRECT TOOLS

ADVERTISING: Through TV Commercials, Print Media (Mainline Newspaper, Magazinesauto 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: Hondas cars particularly CIVIC are very much appreciated for their superb 8/9/09 performance and stylish aerodynamic looks among general public. Among

APPLYING HOLISTIC CONCEPT TO HONDA CIVICCUSTOMER FOCUS CORE COMPETENCYTechnical expertise through racing experience

COLLABORATIVE NETWORKJoint venture with Hero group provided with consumer behaviour knowledge

VALUE EXPLORATION VALUE CREATION

Gap between C and Luxury segment

A balance of style , aerodynamics, power and mileage HONDA CIVIC

Through Indigenising Collaboration with Siel more of the processes to Ltd. A Siddhartha Shriram cut cost Group Company Expansion of plant capacity by doubling the shift (55,000 to 90,000) Expansion plans of plant and dealership network.

VALUE DELIEVERY8/9/09

PRODUCT HIERARCHY

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

8/9/09

BOSTON CONSULTING GROUPS GROWTH SHARE MATRIXMODELS YEAR-2006 YEAR-2007 MARKET SHARE MARKET (06) GROWTH (07)

ACCORD CITY CIVIC CR-V TOTAL

3000 41,000 10,000 1000 55,000

3000 38,000 17,000 2000 60,000

5.45% 74.54% 18.18% 1.82% 100%

5% 63.33% 28.33% 3.33% 100%

8/9/09

70% -7.30%, 63% 60% 50% 40% 30% 20% 10% 0%, 5% 0% -20% -10% 8/9/09 0% 10% 20%

Y-Values

70%, 28%

50%, 3% 30% 40% 50% 60% 70% 80%

SWOT ANALYSISINTERNAL

STRENGTHS Technical Know-how through racing experience and varied market exposure Reliable Performance oriented Has a history of its own WEAKNESS Weaker Brand image , less aggressive marketing No Brand endorsements Declining operating margins

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8/9/09

EXTERNAL

OPPORTUNITIES Can capitalize on existing brand Interest in environment friendly vehicles Cost reduction through R & D Increasing purchasing power of Indian middle class.

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THREATS Rising oil and raw material prices World over Maruti , Hyundai and other players are planning to enter D-segment so competition is going to be tough. Existing all new Honda City

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8/9/09