A PROJECT REPORT ON

“Marketing Strategy of Honda Active I”

In the subject Strategic Management

SUBMITTED TO

UNIVERSITY OF MUMBAI

FOR SEMESTER I M.COM (ADVANCED ACCOUNTING PART I)

BY

NAME OF STUDENT

URMILA MISHRA

ROLL NO (14-7291)

YEAR 2014

DECLARATION

I URMILA POORANSANKAR MISHRA Roll No.14-7291, the student

of M.Com. (Accountancy) Semester I (2014), K.V.Pendharkar College,

Dombivli, Affiliated to University of Mumbai, hereby declare that the

project for the subject Strategic Management titled “ To Study Marketing

Strategy Of ACTIVA I “ submitted by Me to University of Mumbai, for

Semester I examination is based on actual work carried by me.

I further state that this work is original and not submitted anywhere else

for any examination.

Place : DOMBIVLI Signature of the Student

Date: NAME: URMILA P.

MISHRA

ROLL NO: 14-7291

ACKNOWLEDGEMENT

It is a pleasure to thank all those who made this project work possible.

I Thank the Almighty God for his blessings in completing this task. The

successful completion of this project is possible only due to support and

cooperation of my teachers, relatives, friends and well-wishers. I would like to

extend my sincere gratitude to all of them. I am highly indebted to my subject

teacher Mrs. Rajeshri Deshpande for her encouragement, guidance and Support.

I also take this opportunity to express sense of gratitude to my parents for their

support and co-operation in completing this project.

Name of the Student

URMILA MISHRA

INDEX

SR.NO TOPIC PG.NO

1 Introduction 5

2 Objective 7

3 Research Methodology 8

4 Data Analysis 9

5 Scope And Limitation 19

6 Concept 20

7 Organization 24

8 Finding & suggestions 33

9 Conclusion 34

INTRODUCTION

MARKETING STRATEGY

Marketing strategy is the goal of increasing sales and achieving a sustainable

competitive advantage. Marketing strategy includes all basic and long-term

activities in the field of marketing that deal with the analysis of the strategic initial

situation of a company and the formulation, evaluation and selection of market-

oriented strategies and therefore contributes to the goals of the company and its

marketing objectives.

The term "Marketing" is widely misunderstood. Many people when asked;

"What is Marketing?", will respond with answers such as; "Producing TV

advertisements", "writing catch phrases", "producing brochures", "a conspiracy to

make people buy more than they need", "improving brand awareness", "fancy

packaging", or "sponsoring the Olympics". In fact these are all part of Marketing,

but only a small part.

Marketers describe the above activities as promotions, which are designed to create

awareness, interest, desire, and action among potential customers.

Strategic Marketing, in addition to the promotions described above, also

addresses issues such as; what products or services should we be involved with?

How much should we charge for them? How do we make it easy for people to

purchase our products?

The simple question "What products or services should we be involved with?" is a

massive issue. It encompasses; what do potential consumers want? What is the

competition like? Will we make any money doing this? Do we have the capability

to deliver what is required? Would we be better doing something else? Is the

market long term or short term? How do we address the market we have

identified? Does the market break down into market segments? Etc.

The point of this is to emphasize that there is more to strategic marketing than is

commonly understood. Strategic Marketing is defined in the "Marketing Concept",

of which there are several different definitions, but all of them incorporate the

broad definition of marketing alluded to above.

By this project we came to know about the customer’s response towards this

product. By analyzing this product we come to know about the specification and

reputation of it.

. 

OBJECTIVE

This project aims on the market position, performance

and reputation of the product Honda Activa I . For that we have taken the feedback

of 30 respondents on Honda Activa I.

Recently in market there has been boom of advance technology and

advance scooters and in that this product is more convenient and has good

reputation. In this project we had done analysis of marketing strategy of Honda

Activa I.

RESEARCH MEDHODOLOGY

. (A) PRIMARY DATA

Primary data is the first hand information collected from respondance with the help

of questionnaire, interviews, and schedules. In this project a structured

questionnaire is prepared & data of 30 respondance is collected, tabulated &

analyzed on percentage basis.

(B) SECONDARY DATA

Secondary data is information collected through publish data, various reference

book, journals, magazines, bulletins, weekly & papers published & articles are

referred.

DATA ANALYSIS

Q.1) Is Active I your first two wheeler?

Criteria Respondents Percentage

Yes 20 67

No 10 33

Respondents

YesNo

As per the table & the reply from the respondents is clearly indicates that’s 67%of

the respondent have bought the product for the first time that means the market

strategy of the company is adopting, attractive the customer to buy it at the first

time

Q.2) Are you satisfied with Activa I mileage?

Criteria Respondents Percentage

Yes 19 63%

No 11 37%

Respondents

YesNo

The company’s Activa I mileage is 60kmph,whereas the survey of 30

respondents clears that only 63% are getting a good mileage whereas 37% are not

satisfied with it…. may be a reason behind of unsatisfactory that they may not be

servicing it properly. The product image regarding mileage is very good in the

market.

Q.3) Are you satisfied with after sales services provided by Active I?

Criteria Respondents Percentage

Yes 18 33

No 12 67

Respondents

YesNo

As per the table & reply from the respondents is clearly indicates

that’s 60% of the respondent have satisfied with after sales services and 40% is not

satisfied.

Q.4) Will you recommend Activa I to anybody?

Criteria Respondents Percentage

Yes 23 77

No 07 23

Respondents

YesNo

As per chart indicate that’s 77% respondent to recommend while the

other 23% respondent do not recommend this.

Q.5) which other scooty do you find more flexible than Activa I?

Criteria Respondents Percentage

TATA 16 40

Wego 13 33

Activa I 11 28

Respondents

TATAWagoActiva I

As per the chart indicate that’s 28% respondent says flexible, and other respondent

can voted other scooty. It means more respondent cannot satisfy the product.

Q.6) Is Activa I an affordable scooty?

Criteria Respondents Percentage

Yes 25 83

No 05 17

Respondents

YesNo

As per the chart indicate that’s 83% respondent is says Activa I

as affordable scooty other 17% respondents says not.

Q.7) Which Honda vehicle would u like to purchase?

Criteria Respondents Percentage

Active 11 37

Bike 12 40

Car 07 23

Respondents

ActivaBikeCar

As per the chart indicate that’s 40% respondents purchase bike and 37%

purchase Activa . The product service is good in the market.

Q.8) Does the Honda service center helps you out with all your queries

regarding scooty?

Criteria Respondents Percentage

Yes 20 67

No 10 33

respondents

YesNo

For the above chart indicate that’s the Honda service center help is

67% respondent satisfied and 33% respondents not satisfied. The Honda service

center is improving their service.

Q.9) Do you think Activa I is ecofriendly?

Criteria Respondents Percentage

Yes 26 87

No 04 13

Respondents

YesNo

Above the chart shows that’s 87% respondent think Activa I is

an ecofriendly and 13% think that’s not ecofriendly. The most of the respondent

can think that’s Activa I is ecofriendly.

Q.10) Are you happy with the sales scheme provided by you?

Criteria Respondents Percentage

Yes 24 87

No 06 13

Respondents

YesNo

As per the chart shows that’s 87% respondent is happy with the

sales scheme provided them because most of the customer is attract there product.

Its create a good reputation in the market.

SCOPE AND LIMITATION

1. Data collected is limited to only 30 respondents.

2. This study contains 10 questions in data analysis.

3. Respondents have proved that the information collected is sufficient to

satisfy the study of marketing strategy.

PROFILE OF HONDA ACTIVA I

CONCEPT

Marketing Strategy

The marketing guru Philip Kotler defines the Marketing Concept as:

"The marketing concept holds that the key to achieving organizational goals

consists in determining the needs and wants of target markets and delivering the

desired satisfactions more effectively and efficiently than competitors"

This Kotler breaks down into four components; Market Focus, Customer

Orientation, Coordinated Marketing and, Profitability.

Some alternative definitions of the Marketing Concept include:

"Your business will perform better, if you know what people want in the first

place." Anon.

"Marketing is not only much broader than selling; it is not a specialized activity at

all. It encompasses the entire business. It is the whole business seen from the point

of view of its final result, that is, from the customer's point of view." Druker.

Real-life marketing

Real-life marketing primarily revolves around the application of a great deal of

common-sense; dealing with a limited number of factors, in an environment of

imperfect information and limited resources complicated by uncertainty and tight

timescales. Use of classical marketing techniques, in these circumstances, is

inevitably partial and uneven.

An organization's strategy combines all of its marketing goals into one

comprehensive plan. A good marketing strategy should be drawn from market

research and focus on the right product mix in order to achieve the maximum profit

potential and sustain the business. The marketing strategy is the foundation of a

marketing plan.

Principles of Strategic Marketing

Know thyself and know thy audience. Most small businesses don't create a

marketing plan, often adopting a fly-by-the-seat-of-your-pants mentality or just

copying the marketing efforts of a competitor. This can lead to the decision to stop

spending marketing dollars when the efforts go flat. There are a few simple

questions that a business owner should ask himself to create the basis for strategic

marketing for the business.

(A)Who Are You

Most small businesses may start because of a great idea yet have no clue as to who

they are in the marketplace. Part of your strategy involves defining your business:

Create a mission statement, and find your objective, by addressing important,

foundational questions. What is the point of your product or service? How does it

help consumers or other businesses? What is the goal you are trying to

accomplish? Your answers should be succinct and clear.

(B) Create a Marketing Outline

Your outline -- which should include your mission statement, objective and your

product or service -- serves as a reference for your marketing efforts. It must define

your short- and long-term goals because it's important to understand what you are

trying to achieve in order to appropriately allocate your resources. Determine your

demographics; understand why consumers would choose you and how you're

benefiting them. Finally, do research about the competition and the marketplace to

know your positioning. Once you are clear, you can put a marketing budget

together.

(C) Where Are Your Customers?

Where to market and what tools to use depend on where you find your customers.

Get to know your audience. Is this an Internet-savvy group, or are they more likely

to respond to a postcard, brochure or some other item in the mail? Is it a short-term

or long-term sale? Understanding who you are trying to market to is the key to

your marketing strategy. Just throwing mud on a wall to see if it sticks wastes

precious resources.

(D) Focus Creates Success

Many business owners see the big picture and too often want to serve the whole

seven-course meal before their customers have even tried the first course. Your

marketing strategy needs to think big but focus small. Market the one thing you do

exceptionally well, and focus your budget, your time and where you choose to

spend your marketing dollars wisely. When you have a solid return on investment,

you also should have a solid understanding of what else your clients need. From

there, begin focusing your marketing efforts on the next product or service, and

watch your bottom line grow.

Strategic models

Marketing participants often employ strategic models and tools to analyze

marketing decisions. When beginning a strategic analysis, the 3Cs can be

employed to get a broad understanding of the strategic environment. An Ansoff

Matrix is also often used to convey an organization's strategic positioning of their

marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue a

defined strategy. Marketing Mix Modeling is often used to simulate different

strategic flexing go the 4Ps. Customer lifetime value models can help simulate

long term effects of changing the 4Ps, e.g.; visualize the multi-year impact on

acquisition, churn rate, and profitability of changes to pricing. However, 4Ps have

been expanded to 7 or 8Ps to address the different nature of services.

There are many companies especially those in the Consumer Package Goods

(CPG) market that adopt the theory of running their business centered on

Consumer, Shopper & Retailer needs. Their Marketing departments spend quality

time looking for "Growth Opportunities" in their categories by identifying relevant

insights (both mindsets and behaviors) on their target Consumers, Shoppers and

retail partners. These Growth Opportunities emerge from changes in market trends,

segment dynamics changing and also internal brand or operational business

challenges. The Marketing team can then prioritize these Growth Opportunities

and begin to develop strategies to exploit the opportunities that could include new

or adapted products, services as well as changes to the 7Ps.

ORGANISATION

HONDA ACTIVA I

Honda Motor Co. is a Japanese public multinational corporation primarily known

as a manufacturer of automobiles, motorcycles and power equipment.

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. 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 Honda

Jet, which began production in 2012. Honda has three joint-ventures in China

(Honda China, Dongfeng Honda, andGuangqi 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

ACTIVA I

Ever since Honda introduced the Active in 2000, it has managed to get a tight

noose in the automatic scooter segment. And although it continues to dominate the

market, over time a lot more avenues have opened up for manufacturers to exploit.

This class of two wheelers is no longer simply categorised by engine and

efficiency but by form and function as well. While there are young and stunning

offerings out there like the Honda Dio and the Suzuki Swish, the other end of the

spectrum comprises scooters like the Activa and the Mahindra Duro DZ which

appeal to a more mature audience.

Despite the big H pitching the Activa i as a unisex scooter, it is smaller and sleeker

than the Activa making it a better fit for the fairer sex. The slim front fascia with

the clear lens turn indicators and the leaning headlight make the scooter appear

fresh. The arc shaped side panels that blend well into the tail lights host the Activa

i badge. Even though the dimensions are similar to the Activa, the younger offering

is much lighter thanks to its fibre body panels. It is also marginally longer (30mm)

than the Activa, but still the floorboard is big enough to rest just the foot, leave

aside the front storage box that’s available as an option on the Activa. The seat,

however, is long enough to seat two comfortably.

Like all scooters, this too has a basic instrument cluster with an analogue speedo

and a fuel gauge. Switch gear is par for the course while the handle bars are well

positioned for a good riding posture. Under the seat, the Activa I has 18 liters of

storage space. The new offering also comes with a tyre hugger for the rear wheel.

The overall look and feel is good but it could have done wonders with better

quality plastics.

Underneath the skin the Activa I host the same engine as on the new Activa – a

109.2cc four-stroke air-cooled mill with the patented Honda Eco Technology.

Needless to say the power output also remains the same at 8.1PS @ 7,500 rpm and

8.74Nm @ 5,500rpm. Mated to a V-matic transmission, the Activa I has good low

and mid-range boost which makes it a breeze to ride in the city. In our tests it

touched the 60km/h mark from standstill in a respectable 8.43seconds which is a

tad faster than the Activa and also recorded a top speed of 88.28km/h.

The 130mm dia drum brakes up front and the Combi brakes of the same size at the

back, work well in bringing the scooter to a halt from 60km/h in just 17.25metres.

Of course, this has also got a lot to do with the 90/100 10-inch MRF Zapper

tubeless tyres at the front as well as the rear, which ensure that the rider feels

confident even under heavy braking. In terms of performance, the Activa I meets

all expectations from a scooter from the Honda stable and, more importantly, the

Activa family.

Honda has made all the right moves with the launch of the Activa I, especially

taking into consideration the fact that it is priced at Rs 44,200 (ex-showroom

Delhi) which is almost Rs 3,000 cheaper than the Activa. No doubt that in a price

sensitive market like ours, the difference in cost definitely has an equivalent effect

in the buying decision. The Japanese two-wheeler manufacturer has also played a

very smart and safe strategy by capitalizing on the already established Activa

brand.

 

There was a time when people talked only of Bajaj scooters. Then, there came

Kinetic Honda to give a tough competition to Bajaj. Kinetic gave Indians the

gearless, strong and sturdy scooter. The time changed and it is now the turn of

Honda Motors and Scooters India Limited, to gain popularity in this segment.

Three gearless 110 cc engine scooters of Honda HMSI are already popular in the

market. These models of Honda scooters are popular with the names Dio, Activa

and Aviator. They are priced between Rs. 44,718 and Rs. 53,547 (Ex-showroom

Delhi). Another name can now be added to this trio, since Honda Motors and

Scooters India Limited has launched the new Honda Activa i on June 12, 2013.

Priced at Rs. 44,200 (ex-showroom Delhi), this will be the most affordable and

competitive model in this segment of scooters. The new model will be available for

sale throughout the country by June end. The Honda Motors has strategically

categorized this scooter as a personal compact scooter. 

The President and CEO of Honda Motors and Scooters (HMSI) Limited, Keita

Muramatsu hinted at the company's strategy in the following words commenting

on the launch of the scooter: "As a leader in the automatic scooters segment,

Honda's entry into the personal compact segment with ACTIVA-I is its next

strategic step towards reinforcing its market leadership." According to the CEO of

HMSI, the company is now engaged in the development of a new two wheeler,

which will be a hundred percent indigenous product. However, it was not disclosed

whether the new product will be a motorcycle or a scooter. The new product is

likely to be completed within a year. Honda has already captured 50 per cent of the

scooter market in India. The company now aims to be the largest two-wheelers

manufacturer in India by 2015. Let us now discuss the features and specifications

of Honda Activa I. 

Engine and performance

of the new Honda Activa

I

Honda Motors and Scooters India

Limited did not make changes in

the engine of the new model. It has

used the same 109.2cc 4-stroke air

cooled engine by which its earlier

version Honda Activa has been

powered. This engine produces

power of 8.15 PS @ 7,500 rpm.

The torque is of 8.74 Nm @ 5,500

rpm. The best thing to talk about its

performance is the new Combi

Brake System (CBS). This has

greatly reduced the braking

distance by 24%, as compared to

the traditional braking system. The scooters mainly suffer from their low fuel

economy. However, Honda Activa I is a marvelous scooter in the matter of fuel

economy giving the user a mileage of 60 kmpl. This is a great change brought in

the scooters by the use of Honda Eco Technology (HET). 

Tubeless tyres, viscous air filter and maintenance free

battery

Another great feature of Honda Activa I is its tubeless tyres. The viscous air filter

and the maintenance free battery give the rider of this wonderful vehicle a

pleasurable riding experience. 

Storage space, fuel tank, ground clearance and ergonomic

grab rail

There is quite a large storage space of 18 liters, which is conveniently located

under the seat. The fuel tank capacity is 5.3 litres. Fill and forget strategy of Honda

can be applied here. You can have a tension free ride for hundreds of kilometres by

just filling the tank once. There is a good clearance of 165 mm from the ground.

This, in fact, is 12 mm more than what is provided in the former versions of Honda

Activa. The women riders will feel the new scooter very convenient to use, when

they have to put the scooter on its main stand. The new Honda takes 15 percent

less force to be used when putting it on the main stand, thanks to its ergonomic

grab rail. 

Appearance and style

The new indicators and the new tail lamp gives very good appearance to your new

Honda Activa I. The new scooter has slim and sleek design, which is one of the

best among the scooters available in the industry. The company has lifted the

superb design from its already existence Honda Aviator. 

Signal to a price war among 110 cc scooters

Honda Activa I have given a green signal to ensuing price war among scooters

with 110 cc engine. This will benefit the buyers of scooters in this segment. The

new Honda is priced lower than the earlier 110 cc engine scooters like Honda

Activa and Honda Dio. Honda Activa i have been given a lower price tag than

TVS Wego110. This is certainly going to increase rivalry in the scooters

manufacturers as far as the price of the scooters in this segment is concerned. 

Price, availability and colours

Honda Activa I am likely to put for sales throughout the country by this month

end. The basic price of the scooter is kept at Rs. 44,200 (ex-showroom Delhi). Like

its predecessor Honda Activa, the new Honda Activa I am surely to be one of the

best selling scooters in the market. The company has already established a new

factory near Bangalore for the assembly of this scooter and there is no likelihood

of delay in the delivery of this scooter. The new scooter will be available in Beige,

White, Red and Silver colours. 

FINDINGS AND SUGGESTIONS

Findings

1. Major of the customers of Honda Activa I are belongs to age group

above 40 years (40%)

2. 31% of the customers have opined that product performance is good

3. 33% of the respondents have a poor opinion about the after sales service

Suggestions

1. Only 10% of respondents have an excellent opinion about product

quality. So quality of the scooter should improved

2. 40% of the respondents have a poor opinion about companies after

sales service. So after sales service should be improved.

Conclusions

From this project we can conclude that customers are overall satisfied

with Honda active I. On an average more than 83% people feel that the prices

are affordable whereas 17% do not agree.