honda activa marketing project

8/11/2019 Honda Activa marketing project

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Introduction


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Scanning the Environment

PEST Analysis

Technological Honda Eco

Technology Improvements

in the design ofengine parts

Increase inMileage due tooptimisation

Social Growth in the

youthpopulation

Positiveattitude ofboth genders towards Activa

Economic Rate of Inflation

Cost of Rawmaterials

Interest Rates Purchase oftwo-wheelers

Political Effect of change

in government Plan to revamp

labour laws bythe newgovernment


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Scanning the Environment

Customers Expansion of customer base

from primarily adult malecustomers to a broaderdemographic

Buyers include both sexesand spread across agegroups from youngsters of

the age of 16 to oldergeneration Ideal family scooter 70%

attributed to family sales

Competitiors

19%

53%

5%

1%1%8% 13%

Scooter Market Share FY13Hero Motor Corp Ltd

Honda Motorcyles and

Scooter IndiaYamaha Motor

Mahindra Two Wheeler

Piaggio Vehicles

Suzuki Motorcyle

TVS Motors

Model Price MileageHonda-Activa 49756 60 KmplHero motocorp- Mastreo 48200 50 KmplTVS-Jupiter 49210 55 Kmpl

Suzuki-Access 53597 55 kmpl


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SWOT


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Methodology Adopted for Study

Scanning theenvionment

(PESTAnalysis)

SWOTAnalysis

Identificationof balance of

power(Porter's five

forces model)

Assessmentof customer

behaviour(Marketsurvey)


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Porters Five Forces Model

Long run prospectsForeign automobilecompanies might set upsubsidiaries in India

Entry BarriersHigh initial investmentHigh risk nature

Options available to thebuyersSubstitutes are availableSupply- Demand mismatchin the industry

Engine manufactured in-houseFragmented tyre industryLow availability ofautomobile grade steel

Fragmented batteryindustry

From other non-geared twowheelersFrom geared two wheelerslike bikesImproving public transport

like Metro, public buses

Large market share in thissegment encourage newentrantsOld players launch newproducts across segments


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Consumer Behaviour Analysis

To study and analyze the behaviour of theconsumer a survey on the two wheeler marketwas floated to a targeted age group of 20-25years

The factors that are involved in the decisionmaking process of the consumer while buyingthe Honda Activa were meticulously observed


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Main reason to buy a non-geared scootor?Reasons to buy a scooty over a motorbike?

25%

39%

14%

22%

Reasons to buy a non-gearedscooter

Education

Family purpose

Other

Commuting to your job

43%

18%

39%

Reasons to buy non gearedscooter over motorcycle

Fits all in the family Economical

Easy to ride


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Customers required two-wheelers for familypurposes, for commuting to the office,schools, coaching centers, etc. The correlationin the answers to different questions showed

Who needed a two wheeler for family purposeschose Honda Activa as it is useful for the wholefamily

Who use a two-wheeler for commuting purposeswere more insistent on better fuel economy.


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4. Which brand does come to your mind when youthink of a scooty?

While most consumerschose Honda Activa as theirpreferred choice, the oneswho chose other than that

had their most importantfactor while purchasing atwo- wheeler as after saleservice.

This further illustrates that

after sale service of HondaActiva lacks in catering tothe needs of theconsumers.

87%

10%3%

BRAND PREFERENCE

Honda Activa TVS Jupiter Others


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5. Which scooty will you suggest others to buy?

Around 85% of the consumerswho buy Honda Activa suggestothers to buy the same. Thisshows the brand loyalty ofHonda Activa.

15% of consumers who do notsuggest buying it gave areason of poor after saleservice and design.

Interesting to note was that afew respondents whothemselves would buy someother brand would still suggestActiva to others

This shows the strong brandpresence and trust of Activa

61%11%

17%

11%

Non geared vehiclecustomers will suggest toother potential customers

Honda Activa TVS Jupiter

Hero Maestro Others


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Analysis of Consumer Behaviour

It is evident through the whole survey that Honda Activa isstill the most preferred two-wheeler.

Though a slight change in inclination can be witnessedtowards other substitutes, Honda Activa manages to do wellto satisfy the demands of its consumers.

It is interesting to note that among the both gendersfemales respondents look at other competitors of Activa

much more than male respondents.


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Positioning

Good PositioningStrategy

Clarify Brand'sessence

Identify the goalsit helps the

consumer achieve

Show how it doesso in a unique

way


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Positioning Strategy of Honda Activa

targeting all the age groups and is positionedas a brand which fits everyone in a family.

The focus is more on the youth population inIndia in the age group 18-30.


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Limitations of the Research It is difficult to get a sample

which nearly reflects the likesof the entire population for asurvey

Research was limited to the

city of Gurgaon Research was limited to the

two wheeler Activa ingeneral and particular modelsof Activa were not mentioned

Research could have beenwider in scope if consumerbehavior pattern andcustomer satisfaction levelswere also studied

Peer to peer comparativeanalysis was not done in thesurvey and only absoluteresearch was conducted

Validity of the findings is an

issue as all the respondentsmight not fill the correctchoices as per their perceptionand behavior

The research environmentchanges continuously and sodo the choices of theconsumer


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Scope of Future Research The segment analysis can further

be expanded by including othersubstitutes operating in the twowheeler segment such asmotorcycles especially low costmotorcycles and geared scooters.

One of the growing segments isthat of the electric scooters. Thissegment is still very small, but isgrowing at a good rate and somay prove to be goodcompetition in the future. Hondaitself is coming out with anelectric variant of Activa.

During the research it was foundthat many new competitorswould be entering the market innear future especially foreigncompetitors with high luxuryappeal. The effect of theseproducts on Honda Activa can bestudied.

More research can be conductedaddressing the technologicalinnovations that are upcoming inthe industry by Honda as well asthe various competitors.


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honda activa marketing project

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