INTRODUCTION
Introduction to Study: The automobile sector has today become one of the hot areas markets. Various upcoming features have enhanced the global competition in today's Automobile sector. Implementing new technologies, new features and considering the customers preference are the important factors for the company's existence in the competitive market. So if the company wants to face the competition, it has to have the update knowledge of the consumer tastes and preference. Our research is undertaken to study the influence of brand name on consumer’s decision while buying a car in Karnal-Dharward city Brand: A brand is a name, term, sign, symbol or design or combination of them, intended to identify the goods and service of one seller or group of sellers and to differentiate them from those of competition”. Brand is a combination of name, symbol and design. Brands represent the customer’s Perceptions and opinion about performance of the product. The powerful brand is which resides in the mind of the consumer. Brands differ in the amount of power and worth they have in the market place. Some brands are usually unknown to the customers in the marketplace while on the other hand some brands show very high degree of awareness. The brands with high awareness have a high level of acceptability and customers do not refuse to buy such brands as they enjoy the brand performance. Some brands commend high level of brand loyalty. The brand history tells us how the people have used the brand as a mark of identification. In the earlier times the brand mark was used to differentiate the goods of one producer to 1
others. The word brand has its origin from the Old Norse word “brand” which means “to burn”. In the initial phase, the brand was used as a mark of identification on the animals. Brands play vital role in the decision making processes of the customer. It is important for companies to find out customer’s decision process and pinpoint the criteria, which customers apply while making decision. How brand names influence the customer purchase decision? Why customers purchase a particular brand also implies how customers decide what to buy. Customers follow the sequence of steps in decision process to purchase a specific product. They start realizing a requirement of product, get information, identify & evaluate alternative products and finally decide to purchase a product from a specific brand. When customers purchase particular brand frequently, he or she uses his or her past experience about that brand product regarding performance, quality and aesthetic appeal. Companies are recognized through their brand and it is most valuable asset for survival. Customers have many brand choices but they have less time to make a choice. The brand Specialty helps the customer in decision making to purchase a right product with less risk and according to set expectations. Brand name is a promise to customer by maintaining and enhancing the strength over time.13 Successful brand should be the representative of various elements together including design, packing, quality, style etc. Customers want to see all the elements in brand product according to his need. “A product is something that is made in a factory; a brand is something that is bought by a customer. A product can be copied by a competitor, a brand is unique. A product can be Quickly outdated, a successful brand is timeless”. In today’s business environment, companies must work harder than ever before to achieve some degree of differentiation in their products. Many companies have sought to achieve 2
this differentiation by branding their products, simply putting the company’s name on a product. The market is flooded with new and old brands and intensity of brand war is increasing day by day. The popularity of a brand is a tool for survival and success of company in the market. In this respect companies offer different packages to customers with the use of different resource weapons in this competition war for raising awareness among the customers about the branded product. Benefits of the Study: This project was an opportunity which will help the company at various information regarding awareness of Honda cars brand name and importance given to different attributes while purchasing a car. Importance given to brand name, features, price, quality, look and mileage while purchasing. 1. Interest level of people to buy Honda cars. 2. Different means through which the consumers gets information about the Honda car. 3. From this information company can come to know how the brand name is affecting the sales of the automobiles
3
Benefit to Me from this Study:. It will help me in understanding
The market for Honda brand cars in Karnal-Dharward in particular.
Customers Decision Making Process while purchasing Honda brand car.
Customer’s choices of brands while purchasing Honda brand cars.
It will help in understanding, reviewing and suggesting improvements in creating a market for Honda brand cars. The experience gained during this study will provide as a tool, which can be
applied in any future undertakings of similar nature.
Management problem: Karnal-Dharward is a one of the important commercial market of Karnataka and there are lots of potential people who can buy Honda cars. The company invests huge sum of money and effort to create the awareness of their brand in the market, there is need to find does this really affect the purchasing decision of the customer and are the promotions actually fetching some results to the sales.
Research problem: To find weather the brand awareness influences the sale of the product. To know the consumers behaviour, their decisions and problems the customers face while buying the car.
4
OBJECTIVE OF THE STUDY Following are the main objective to study about the customer satisfaction on Honda To study Motor car industry. To know the brand image factor in consumer decision. To study various Marketing activities provided by Honda
To study the various services provided by Honda To know the expectation of Honda Customers.
5
SCOPE AND IMPORTANCE This report …… Scope: •
This report covers various aspects of the Indian automobile industry.
•
It gives detailed analysis of the urban automobile market in terms of total sales, marketing mix and satisfaction level.
•
Each section sufficiently explains the current and future market trends, and developments in the Indian automobile market.
Importance: •
There are many benefits related to this study. By analyzing this information, the company would be able to better design schemes & services & target right prospects’ needs & wants.
•
More people will get aware about Honda that will increase profit level of Honda.
•
This study helps to identify the behaviour of consumer when there are no offers & schemes from Honda.
6
LITERATURE REVIEW The motorcar industry is among those which have suffered a deadly blow from the monetary/economic crisis, a crisis which has sent production costs skyrocketting and consumers' purchasing power plummeting. In 1998, the motorCar industry managed to sell only 0.43 million units, down over 76% from 1.8 million units in the previous year. Producers do not have the freedom to penetrate into the export market because they are restricted by theft status as sole agents or brand holders which are authorized by their principals to market their products only in certain areas. Early in 1998, PT Federal Motor (FM) of the Astra Group, which is the largest producer of motorcars in Indonesia, cut down on its output rate tremendously. Employees with expiring contracts were given no extensions. The management adopted a cost-reduction program. In a bid to improve efficiency, all the work plans which did not have direct implications on sales were cancelled. A number of expansion projects were put on hold. PT FM's focused its attention only on achieving its BEP target and on maintaining its cash flow. With other motorCar producers, the financial condition was even worse. The market demand for motorcars continued to shrink well into the first semester of 1999. This situation has discouraged one newcomer in the motorcar industry, namely the producer of Taiwanese brand Kymco, from launching its products. Shortly into the second semester of 1999, the market demand for motorCars started to show a slight improvement. Over the past few months, the monthly market demand for motorCars has ranged from 34,000 to 35,000 units, as compared to only 14,213 units in January this year. This has resulted mainly from the stabilizing value of the rupiah and from the resumption of lending by a number of multifinance companies. Meanwhile, the lowering of bank deposit interest rates have also caused some people to switch their investment from bank deposits to goods, including motorCars. In all the years since the motorCar industry commenced its 7
operations in Indonesia, the monthly sales volume reached its peak level of 188,661 units in August 1997. Late in June 1999, the Government issued an automotive deregulation package in line with the WTO accord. According to this deregulation package, the incentive system is no longer to be used in the development of the motorCar industry and the link between local contents and taxes is to be removed. As a result of the deregulation package, all types of motorCar components are now subjected to import duties under the Harmonized System, which applies to all goods in international trade. This system is relatively simple and transparant. Capacity utilization rates down Up to now, the number of producers in the motorCar industry has remained unchanged, namely five. All of them are affiliated to sole agents/brand holders (or ATPMs by the Indonesian initials). At least until the end of 1996, in view of the rapid growth in market demand, which averaged over 20% per annum, the motorCar producers continued to expand their production capacities. According to data from the Department of Industry and Trade, the total production capacity of the motorCar industry is now 2.5 million units per annum. Following the outbreak in mid-1997 of the monetary crisis, nearly all the production capacity expansion plans were either put on hold or cancelled.
8
Customer Satisfaction Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms. 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, with a commitment to providing Honda’s latest passenger car models and technologies, to the Indian customers. The total investment made by the company in India till date is Rs 1620 crores in Greater Noida plant and Rs 784 crores in Tapukara plant. HSCI’s first state-of-the-art manufacturing unit was set up at Greater Noida, U.P in 1997. The green-field project is spread across 150 acres of land (over 6,00,000 sq. m.). The annual capacity of this facility is 100,000 units. The company’s second manufacturing facility is in Tapukara, Rajasthan. This facility is spread over 600 acres and will have an initial production capacity of 60,000 units per annum, with an investment of about Rs 1,000 crore. The first phase of this facility was inaugurated in September 2008. The company’s product range includes Honda Jazz, Honda City, Honda Civic and Honda Accord which are produced at the Greater Noida facility with an indigenization level of 77%, 76%, 74% and 28% respectively. The CR-V is imported from Japan as Completely 9
Built Units. Honda’s models are strongly associated with advanced design and technology, apart from its established qualities of durability, reliability and fuel-efficiency. Honda Jazz Honda Jazz is the company’s first offering in the premium compact car segment. The Jazz is a segment-defining car that has won accolades and adoration all over the world. Widely acclaimed for its dynamic styling, spacious interiors, versatile utility and remarkable performance, the Honda Jazz brings added fun and excitement to the driving experience.
The Jazz’s dynamic performance is achieved by a newly developed four-cylinder 1.2-liter i-VTEC engine, featuring Programmed Fuel Injection that delivers maximum output of 90 PS (66 kW) @ 6,200 rpm and Torque of 110 Nm (11.2 kg-m) @ 4800 rpm while giving impressive fuel economy of 16.1 km/l, as per ARAI test data. Safety of passengers and pedestrians is a top priority for Honda and all safety equipment is standard across all variants. The Jazz practicality has been enhanced with three-mode “Magic Seat” configuration to achieve multiple seating and cargo-carrying configurations for long or tall objects in addition to the standard five-passenger mode. The Honda Jazz is available in three variants - Honda Jazz, Jazz Select and Jazz X. The Honda Jazz X looks sporty with the new blue black interiors and this sporty look is further accentuated with the addition of Alloy wheels. In line with the preferences of the customers, the audio system of the new Jazz now comes equipped with a USB port.
The Honda Jazz X additionally features a Rear Parcel Shelf for added customer convenience & safety of the luggage and Front & Rear mud guards. It also includes Fog lamps for enhanced styling and better visibility and Driver seat height adjuster for a comfortable and smooth drive. 10
Honda City Honda's all-new Third Generation Honda City was launched in September 2008. It comes with a completely new design, new engine, spacious cabin and equipped with various active and passive safety features. The company has also launched the 1.5 V MT & AT version of the City in September 2009. The new Honda City is available as SMT, VMT and VAT. Additionally, all the variants is available in 2 attractive types – Elegance and Inspire.
The all new Honda City achieved milestone sales with 50,000 units sold within one year of its launch. Since its launch in the country in 1998, Honda City has been a best seller in the premium car segment. The all new Honda City has bagged several awards including 3 Car of the Year and the prestigious ICOTY (Indian Car of the Year) 2009. The model made a clean sweep in the viewers’ choice category winning all 3 awards announced by NDTV Car India & Bike India Awards, UTVi Autocar Awards and CNBC TV 18 Overdrive Awards. These awards truly exemplify the experts’ as well as the customers’ admiration and trust in the product. Honda Civic The Civic is Honda’s largest selling model globally and is now sold in approximately 160 nations and regions worldwide. Honda Civic was launched in India in July 2006 which became a runaway success and was also awarded the “Indian Car of the Year” in 2007. The new Civic was launched in September 2009 with more aggressive and sportier look. The new V grade Civic juxtaposes Honda’s advanced technology with striking design. The new Curved 5 Point Metallic Front Grille and restyled Front Sporty Bumper add to a pulsating and aggressive appeal of the car. The introduction of stylized Dark Smokey 11
Headlights & Crystalline Octagonal Tail Lights enhances the contemporary look of the car. New Civic is available in 3 variants – SMT, VMT & VAT. Honda Accord The Honda Accord was first introduced in India in year 2003. HSCI launched the 8th generation Honda Accord in India in May 2008. The Honda Accord is available in 2.4L and 3.5L V6 engine. The 2.4L comes in three types in both Automatic and Manual transmission − Accord 2.4, Accord 2.4 Elegance and Accord 2.4 Inspire. The All-new Accord comes with 5-speed Manual Transmission and 5-speed Automatic transmission with Paddle shift, to give the exhilarating experience of F-1 racing. The AT now has Shift Holding System which avoids unnecessary gear shifting on winding roads and helps in hassle free drive. The Honda Accord V6 3.5-liter comes with Electric Sunroof and additional luxury features for enhanced exterior styling. The 3.5L i-VTEC engine features an advanced Variable Cylinder Management (VCM) system that switches between six-, four-, and three-cylinder combustion depending on the driving conditions and thereby delivering maximum power of 275 PS during six cylinder operation and impressive fuel economy in VCM mode while cruising.
The new 8th generation Honda Accord has also won the UTVi Autocar Best Luxury Car award in 2009. Honda CR-V The Honda CR-V is sold as a Completely Built Unit (CBU) import and is available on confirmed order basis for the customers. The Honda CR-V was first introduced in India in 12
July 2003. It went on to become the segment leader since its launch winning several awards for itself. The all new 3rd generation CR-V was introduced in India in November 2006 which offered its customers a distinctive combination of ‘the comfort of a sedan with the thrills of a SUV’. Honda CR-V was adjudged the ‘SUV of the Year’ by NDTV Profit Car & Bike and Overdrive and also won the ‘Best Driver’s Car’ award by CNBC TV-18 Autocar Auto Awards in 2007. Honda launched a refreshed version of the 3rd generation CR-V in November 2009.The new Honda CR-V offers its customers a distinctive combination of refined styling and high quality. The Honda CR-V is available in 2.0 L - MT 2WD and 2.4L MT /AT Real-time 4WD. Sales Network Honda Siel Cars India has a strong sales and distribution network spread across the country. The network includes 120 facilities in 71 cities. HSCI dealerships are based on the “3S Facility” (Sales, Service, Spares) format, offering complete range of services to its customers
INDUSTRY PROFILE Indian Automobiles Industry History: The Automobile industry emerged in India in 1940s. However the growth was relatively slow in 1950s and 1960s due to the nationalization and the licence raj which hampered the Indian private sector. After the 1970, the automotive sector began to grow, but the growth 13
was mainly driven by the tractors, commercial vehicles and the scooters. A major luxury Japanese manufactures entered the India market ultimately leading to the establishment of Maruti Udyog. It was this time that the Indian government chose Suzuki as joint venture to manufacture small cars.
Present Scenario: The Indian Automobile Industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. Several Indian manufacturers such as Tata motors, Maruti Suzuki, Mahindra and Mahindra expanded their domestic and international operations. India’s robust economic growths lead to further expansion of its domestic automobile market which attracted significant India-specific investment by multinational automobile manufacturers. The automobile industry in India is the 9th largest in the world with annual production of over 2.3 million units in 2008. In 2009 India has emerged as Asia’s 4th largest exporter behind Japan, South Korea and Thailand.
14
Some Achievements of industry as follows •
India has the fourth largest car market in the world.
•
India had largest three wheeler market in the world.
•
India is the second largest producer of two wheelers in the world.
•
India rank fifth in the production of commercial vehicles.
•
Hyundai motors stands second in the car production in the world.
An Overview: Automobile industry of India can be broadly classified under 1. Passenger vehicles 2. Commercials vehicles 3. Three wheelers 4. Two wheelers With two wheeler having maximum market shares of more than 75%. Automobile companies of India, Korea, Europe and Japan have significant hold on the Indian market share. Tata motors produce maximum number maximum number of mid and large size commercial vehicles holding, more than 60% market share. Motorcycles tops the charts of 2 wheelers, with Hero Honda being the key player. Bajaj by far is the no. 1 manufacturer of 3 wheelers in India.
Some achievements of the companies operating in different sectors of Indian automobile industry
Hero Honda is the largest manufacture of the motorcycles Hyundai is the second largest player in the passenger car market.
15
Tata motors are the fifth largest player in medium heavy commercial vehicle manufacturer in the world. Bajaj Auto is ranked as the the world’s fourth largest two-and three- wheeler manufacturer.
Key players in the Indian Automobile Industry: Some of the key players of the industry are as follows Maruti Suzuki Hero Honda Tata Motors Bajaj Auto Ltd Mahindra Group Ashok Leyland Yamaha Motors India TVS Hyundai Motors India Honda Seil India Ltd Toyota Kirlokar Motor Pvt Ltd
16
Key Passengers of Indian Passenger Vehicles Sector Passenger section is majorly ruled my car manufacturers capturing over 82% of total market share. Maruti Since Long has been the biggest car manufacturer and holds more than 50% of entire market. So of the key players of the Industry are Maruti Suzuki
Tata Motors
Hyundai Motors India
Mahindra & Mahindra
Honda Siel
Toyota
Ford
Chevrolet
17
COMPANY PROFILE
Establishment
24 September 1948
Founder
Soichiro Honda Takeo Fujisawa
Headquarters
Minato,Tokyo,Japan
Area served
Worldwide
Key people
Satoshi Aoki (Chairman) Takanobu Ito (CEO)
Industry
Automobile, Truck, Motorcycle Manufacturer
Products
Automobile, Truck, Motorcycle, Scooters, ATVs, Electrical Generators, Robotics, Marine equipments, Jets, Jet Engines, and Lawn and Garden equipments. Honda and Acura Brands
History
18
HSCI was established in December 1995, with Honda Motor Co., (Japan) and Siel Ltd. (India) as the key promoters. Honda’s models are strongly associated with advanced design and technology, apart from its established qualities of durability, reliability and fuel-efficiency. Honda Siel Cars’ state-of-the-art manufacturing unit was set up in 1997 at Greater Noida, U.P. and currently has a capacity of 50,000 cars annually. The company is planning to raise its capacity to 100,000 cars per annum by the end of 2007. HSCI has recently launched the all-new, third generation CR-V and new Accord in its portfolio. The all-new Honda CR-V comes in 2 variants- 6 speed manual transmission system and 5-speed automatic transmission system with Grade Logic Control for smooth and effortless performance. Honda’s most successful global model, the eighth generation Civic was launched in July 2006 and has already become segment leader within a short span of time. The Honda City ZX, the largest selling sedan in India, is today recognized as one of the most successful car brands in India. To ensure consumer’s safety, Honda has recently added new features like Airbags and ABS in the VTEC version of the car. In 2006, three of Honda’s four cars in the Indian market – City, Accord and CR-V, have ranked first in the TNS Total Customers Satisfaction Award. 19
The company operates under the stringent standards of ISO 9001 for quality management and ISO 14001 for environment management.
Honda in India
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, with a commitment to providing Honda’s latest passenger car models and technologies, to the Indian customers. The Honda City, its first offering introduced in 1997, revolutionized the Indian passenger car market and has ever since been recognized as an engineering marvel in the Indian automobile industry. The success of City as well as all its other models has led HSCI to become the leading premium car manufacturer in India. The total investment made by the company in India till date is Rs. 1620 crores. The company has a capacity of manufacturing 100,000 cars. Honda Philosophy 20
The Honda Philosophy expressed in this illustration shows the Company Principle, Management Policies and the ‘Honda Way’ based upon the
fundamental beliefs of
‘Respect for the Individual’ and ‘The Three Joys’
FUNDAMENTAL BELIEFS
21
Ownership Pattern 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. HSCI currently holds 99.9% ownership and rest 0.1% lies with Siddharth Shriram Group company. Manufacturing Capacity HSCI’s state-of-the-art manufacturing unit was set up in 1997 at Greater Noida, U.P with an investment of Rs. 450 crores. The green-field project is spread across 150 acres of land. The initial installed capacity of the plant was 30,000 cars per annum, which was thereafter increased to 50,000 cars on a two-shift basis. The capacity has further been enhanced to 1, 00,000 units annually in February 2008. The capacity expansion was necessitated by the excellent performance of all the Honda models, particularly the growing demand for City ZX in India. Several modifications were done by the company with the objective of offering higher quality products to its customers, faster and quicker. The expansion process also included expansion of the covered area in the plant, from 1,07,000 sq.m. to 1,31,794 sq.m. 22
HSCI currently produces the Honda City ZX, Civic and Accord models in India and the premium SUV, CR-V is sold as a fully imported unit from Japan. The company operates under the stringent standards of ISO 9001 for quality management and ISO 14001 for environment management. Sales and Distribution Network Honda Siel Cars India has a strong sales and distribution network spread across the country. The network includes 80 facilities in 51 cities. Having established itself as a leading brand in the metros, the company is now focusing on increasing its presence in tier-II towns and cities and plans to increase its dealership network to more than 100 by the end of 2008-09 fiscal year. The company is targeting 100 dealer outlets across India by 2009, as per their expansion strategy which is based on the '1 dealer per 1000 cars' formula. Product Range Honda Siel Cars’ product range in India includes the Honda City ZX in the mid-size segment, Civic in the Lower D segment and Accord in the luxury segment and third generation all-new CR-V (both 2.0L 2 WD and 2.4L 4WD) in the SUV segment. While the City ZX, Civic and Accord are manufactured at the company’s plant, the CR-V is imported from Japan as a Completely Built Unit.
PRODUCT PROFILE 1. HONDA CITY ZX
23
City ZX is today recognized as one of the most successful car brands in the country. Its success is a replica of the success of its predecessor - the original Honda City, launched way back in 1997. In fact, HSCI took a historic step in 2003, when it introduced the NewCity at a time when the original City was still performing brilliantly – and it was an immediate success. The City ZX was launched two years later in 2005 as an enhanced version of the New-City and is strongly associated with durability, reliability, quality and fuel-efficiency. The City ZX range includes 4 variants - EXi, GXi, CVT (Automatic Transmission) and VTEC. While EXi, GXi and CVT variants come with the advanced combustion system of the 1.5 litre Intelligent Dual & Sequential Ignition (i-DSI) engine, City VTEC embodies a 1.5 litre VTEC (Variable Valve Timing and Lift Electronic Control) engine. The VTEC version was reintroduced in the new City inresponse to customer demand. The City VTEC comes with sporty exteriors and plush interiors, catering to the premium segment customers. On the outside, 14” alloy wheels adorn the car, front and rear fog lamps and 24
rear disc brake. The interiors are more lavish with leather steering, centre console and beige and black upholstery. The City is manufactured with 79% indigenization level and currently enjoys 25% market share in its segment. HONDA CIVIC
HSCI launched the 1.8S Civic in India in July 2006, which became a runaway success. The company has also launched the 1.8v version of the Civic in June2007. The Civic is Honda’s largest selling model globally and is now sold in approximately 160 nations and regions worldwide. The Civic made its debut, with a two-door model in July 1972, followed shortly by a three-door version. The series was a major hit, especially among young people and for three consecutive years, from 1972 to 1974, the Civic won the ‘Car of the Year Japan’ award. Civic’s development process contrasted completely with Honda tradition. Rather than pursue development based primarily on the vision of Company founder Soichiro Honda, the Civic’s development team traveled to various world markets, gained local knowledge and experience first-hand, and then set about creating a car that “is needed right now.” Overseas production of Civic began in Indonesia in 1975, and Civic vehicles are now made in 11 countries, including North America, Europe, Asia and South America. Total cumulative production of Civic models at the end of calendar 2004 was approximately 16 25
million units—making it one of the most popular models in Honda history. The Civic has an indigenization level of 72% and enjoys 45% market share in its segment. 3. HONDA ACCORD
Accord comes with fresh new exterior styling, enhanced interiors and several new valueadded features. The Accord has a new-look; sporty rear with revamped LED Tail lamps and rear bumper garnish that further enhances its stunning exterior styling. Adding greater value to the 2.4 lt model, the new car now has premium wood & leather steering wheel and turn indicators on side-view mirrors, features which were earlier available only in the V6 model. For easy and convenient parking, the new Accord has front and rear Parking Assistance Sensors, which warn the driver of obstacles in his way while parking. The Accord V6 now has enhanced safety in the form of Vehicle Stability Assist (VSA) technology and also new 10-spoke 16” alloy wheels. Accord, which has been a popular premium sedan ever delight the customers with its class-leading performance and luxury features such as leather upholstery, dual-zone climate control and six-CD changer. The Accord is manufactured with 34% indigenization level and currently enjoys 27% market share in its segment. 26
4. HONDA CR-V
The 3rd generation CR-V was introduced in November 2006. The all-new, third generation Honda CR-V offers its customers a distinctive combination of ‘the comfort of a sedan with the thrills of a SUV’. The engine is a 2.4-liter DOHC i-VTEC, which delivers a powerful torque of 162 ps @ 5,800 rpm. Real-time 4WD is a unique feature of the car, which is the first in its class. The Real-time 4WD intelligently detects adverse road conditions and switches to 4-wheel drive instantly. In normal conditions the all-new CR-V operates in front wheel drive mode but in wet, muddy roads or off-road conditions, it automatically switches to 4-wheel drive instantly. An enlarged clutch and stiffened transmission parts help distribute 20% additional torque to the rear wheels which ensures smooth drive in bad road conditions without compromising on safety or fuel consumption. HSCI recently introduced the 2.0L 2WD (2-Wheel Drive) Honda CR-V, which is more agile & has a sporty handling. The new lighter engine gives good fuel efficiency, without compromising on performance. The CR-V currently enjoys 37% market share in its segment.
4. HONDA JAZZ
27
Honda Jazz is the company’s first offering in the premium compact car segment. The Jazz is a segment-defining car that has won accolades and adoration all over the world. Widely acclaimed for its dynamic styling, spacious interiors, versatile utility and remarkable performance, the Honda Jazz brings added fun and excitement to the driving experience. The Jazz’s dynamic performance is achieved by a newly developed four-cylinder 1.2-liter i-VTEC engine, featuring Programmed Fuel Injection that delivers maximum output of 90 PS (66 kW) @ 6,200 rpm and Torque of 110 Nm (11.2 kg-m) @ 4800 rpm while giving impressive fuel economy of 16.1 km/l, as per ARAI test data. Safety of passengers and pedestrians is a top priority for Honda and all safety equipment is standard across all variants. The Jazz practicality has been enhanced with three-mode “Magic Seat” configuration to achieve multiple seating and cargo-carrying configurations for long or tall objects in addition to the standard five-passenger mode. The Honda Jazz is available in two variants - Honda Jazz and Jazz Select edition in Manual Transmission. Additionally, both the variants are available in 2 attractive types - Mode & Active. Sales Performance
28
S A L E S (In c lu d in g E x c is e D u ty)
(R s M illio n s )
P a rtic u la rs
M a rc h 3 1 ,2 0 0 8M a rc h 3 1 ,2 0 0 7
C a r S a le s : A . C ity - D o m e s tic
- Nos - % o f to ta l - Am ount - P e r C a r('0 0 0 ) B . A c c o rd - D o m e s tic - Nos - % o f to ta l - Am ount - P e r C a r('0 0 0 ) C . C iv ic - D o m e s tic - Nos - % o f to ta l - Am ount - P e r C a r('0 0 0 ) D . C R V - T ra d in g - Nos - % o f to ta l - Am ount - P e r C a r('0 0 0 ) T o ta l D o m e stic (A + B + C + D ) - N o s - Am ount E . E xp o rt (C ity 1 6 ; A c c o rd 7 -) N o s - Am ount G ra n d T o ta l (A + B + C + D + E- )N o s - Am ount S p a re p a rts S a le s : F . S p a re P a rts / C h ild P a rts G . S S T / P O P / O th e rs T o ta l S a le s (A + B + C + D + E + F + G )
4 0 ,5 3 4 65% 2 4 ,5 2 7 6 0 5 .1 0 2 ,1 3 0 3% 2 ,7 5 0 1 ,2 9 1 .1 8 1 6 ,7 2 3 27% 1 5 ,8 3 5 9 4 6 .9 2 3 ,4 2 6 5% 5 ,2 2 5 1 ,5 2 5 .2 0 6 2 ,8 1 3 4 8 ,3 3 8 23 13 6 2 ,8 3 6 4 8 ,3 5 1
4 0 ,4 7 5 66% 2 4 ,9 2 0 6 1 5 .7 0 2 ,7 3 2 4% 3 ,5 7 4 1 ,3 0 8 .2 0 1 6 ,2 5 8 26% 1 5 ,2 5 7 9 3 8 .4 4 1 ,8 7 3 3% 2 ,5 7 1 1 ,3 7 2 .5 6 1 ,3 3 8 4 6 ,3 2 2 34 19 6 1 ,3 7 2 4 6 ,3 4 1
310 10 4 8 ,6 7 1
1 ,4 7 7 21 4 7 ,8 3 9
ENVIRONMENT AND SAFETY The Honda Group is globally recognized for its concern towards environment,
safety
and conservation of the society in which it operates. HSCI follows the same in India for
29
achieving high standards in environmental safety in the various processes of car manufacturing. The company operates under the stringent standards of ISO 9001 for quality management and ISO 14001 for environment management. Awards Honda Jazz NDTV Profit – Car India & Bike India Awards 2010
-Car of the Year - Small Car of the Year Honda City JD Power Asia Pacific 2009 India IQS - Honda City No.1 Indian Car of the Year 2009 (ICOTY 2009) - New Honda City CarWale.com Awards 2009
- India’s Favourite Car for Self-Driven Executives 2009 - The coveted ‘New Car of the Year 2009’ NDTV Profit – Car India & Bike India Awards 2009
- Car of the Year - Mid-Size Car of the Year - Viewers’ Choice Car of the Year CNBC TV – 18 Overdrive Awards 2009
- Viewers’ Choice Car of the Year BS Motoring Awards 2009
- Car of the Year 30
Zigwheels Awards 2008
- Car of the Year - Honda City - Sedan of the year - Honda City UTVi Autocar Awards 2009
- Viewers’ Choice Car of the Year - Best Design Award Honda Civic JD Power Asia Pacific 2009 India IQS - Honda Civic No.1
ICOTY 2007 India’s Favourite Car for Enthusiasts 2009 Car of the Year - CNBC TV 18 Autocar Auto Awards, '07 Viewer's Choice of the year - CNBC TV 18 Autocar Auto Awards, '07 Car of the Year - NDTV Profit Car India and Bike India Awards '07 Executive Car of the year - NDTV Profit Car India and Bike India Awards '07 Automotive Design of the year - NDTV Profit Car India and Bike India Awards '07 CNB Viewers' Choice Best car of the Year - NDTV Profit Car India and Bike India Awards '07
Viewers Choice Award - Overdrive Awards, '07
Design Award - Overdrive Awards, '07 Jury Award 2007 - BS Motoring Awards, '07
Honda Accord
31
India’s Favourite Car for Chaffeur-Driven Executives 2009 2009 Best Luxury Car (UTVi Autocar Awards) - 09 No1 Entry Luxury Car - TNS Total Customer Satisfaction Study, '06
Honda CR-V
Best Driver's Car - CNBC TV 18 Autocar Auto Awards, '07 SUV of the Year - NDTV Profit Car India and Bike India Awards '07 SUV of the Year - Overdrive Awards, '07 No 1 Premium SUV - TNS Total Customer Satisfaction Study, '06
HONDA MOTOR COMPANY SWOT ANALYSIS Honda motor company is not just an average Japanese car manufacturer. Originally know for motorcycles, Honda has managed to elude the dominate keiretsu system in Japan and become one of the dominant automobile manufacturers in the world 32
STRENGTHS •
Honda has a reputation for producing high quality products from cars to motorcycles to lawn mowers.
•
They are the largest manufacturer of motorcycles in the world.
•
Honda has won many awards for initial quality and customer satisfaction.
•
Their research has afforded them competitiveness in innovative products.
•
They were a pioneer in engineering low emissions internal combustion and hybrid technology.
•
Honda is the only other manufacturer outside of Mitsubishi to branch out into many other areas outside of automobiles, like motorcycles, scooters, power equipments (generators), Asimo Robot.
WEAKNESSES •
Their prices are higher for non-luxury vehicles than comparable models by other manufacturers.
•
Their vehicles also have a reputation for being underpowered.
•
Due to the latest technology being used in Honda products it is difficult to keep the prices low.
33
OPPORTUNITIES •
To continue progressing low emission vehicles and alternative power sources.
•
Another area of opportunity would be developing nations like China and India. These are large markets, and cheap dependable transportation would be a hot seller.
THREATS •
Too many competitors in automotive industry.
•
Expanding market size of compact cars ( currently it is around 76% )
•
Regaining the lead of low emissions is a risky proposition as other companies are coming out with new and cost effective ideas of producing low emission vehicles.
•
Increasing steel prices will make it difficult for the companies to continue the current pricing strategy.
Leadership •
1948–1973 — Soichiro Honda
•
1973–1983 — Kiyoshi Kawashima
•
1983–1990 — Tadashi Kume
•
1990–1998 — Nobuhiko Kawamoto
•
1998–2004 — Hiroyuki Yoshino
•
2004–2009 — Takeo Fukui
•
since 2009 — Takanobu Ito
34
ABOUT JAVALI AUTOMOBILES (Dealers profile) Name of the Firm
Javali Automobiles Pvt Ltd
Name of the Company
Lakeview Honda
Establishment
5th may 2008
Founder
Mr. Suhas Javali
Phone no.
0836-2278837
E-mail
[email protected]
Products
City, Civic, Accord, CRV & Jazz.
Address
Javali Automobiles Pvt Ltd. Opp. Unkal Lake Karnal-580 025
District State
Karnataka
Office
Karnal
35
VISION STATEMENT “Our Vision is to be the Best Automobile Dealer in India in terms of Customer Satisfaction and Growth” MISSION STATEMENT Develop and maintain Human capital, which will drive culture customer focus and high performance. Create, learn and implement best in HR practices and processes. Retain and attract talent by improving brand. POLICY STATEMENT “We regard HR as its Greatest asset. We continuously endeavor to make the company a greatest place to work in improving transparency of accountability at different level. We as an organization reward merits on equal opportunities. An employer that does not believe in discrimination on the basis of gender, caste and religion.” We strive to provide all our business partners, stakeholders, shareholders, customers and employees the highest levels of satisfaction through growth, constant innovation, discipline and best business practices. VALUES •
To treat employees as an asset.
•
Man power storage
•
Focus on customer satisfaction
•
Teamwork among our people
•
Profits for Growth. 36
DEPARTMENT STUDY AND PROFILE FRONT OFFICE FUNCTIONS Mr. Veeranna Sidhnal showroom sale manager of Javali Automobiles Pvt Ltd, Lakeview Honda & Mr. Daniel & Mr.Raghavendra Sales Officer. When a customer walks into the showroom, he should be given a test-drive and after that broachers and quotations are to be given to him for further reference. All these will be explained in the marketing part and all this takes place before the customers buying decision. When he decides to buy a particular car; he is supposed to give certain amount as a down payment and further in equal monthly instalments (EMI). He has to get Release Order from the bank and then only he will get the car. Many facilities are provided by GM division for this and customer is having a kind of relaxation due to this. Before delivery of the car. The front office executive has to note down the engine number and the cheesy number of the car. Pre-delivery inspection is checked for accuracy and after that the car will be washed. Front office has to do many paper works along with demo, test-drive, follow up etc and they play an important role in the customer satisfaction as well as the success of the organization. FUNCTION OF SERVICE DEPARTMENT Javali Automobiles Pvt Ltd, Lakeview Honda. is having a service dept and Mr. Satish k is the service manager, only by selling a good car which is having good facilities in it will not make the customer happy. What makes him happy is even the post sale service provided in the car showroom.
37
SERVICE ADVISORS: There are two service advisors, Mr. Milind. Mr. Prasanna. Following are the duties they carry out: Opening the job card; this shows the number of jobs to done on the car. They give estimates of how much work is to be done and the labour cost. After opening the job card they hand over the car to the floor in charge. They inspect if the servicing is satisfactory before handling over the car to the respective customer. FLOOR INCHARGE Mr. Ravi D P manager In case a customer is involved in an accident and is the damaged, the customer brings back the car to the company. The body shop supervisors survey the extent of damage and make repair estimations. He further interacts with respective insurance company to cover for the damage. Finally he hands over the floor in charge. PERIOD DELIVERY INSPECTER Once new cars are delivered from Javali Automobiles the period delivery inspector thoroughly inspects the physical and mechanical aspects of the car to ensure that they are in order. He explains technical aspects of the car to the customers.
38
CUSTOMER RELATIONS EXECUTIVE Mr. Arun The customer relations executive sends the service remainder through mail’s, calls and messages. WARRANTY ANALYST The warranty analyst sends warranty items to the parent company for exchange. ACCESSORIES & SPARES DEPARTMENT Mr. Arun .S. Kulkarni is the Accessories & Spares Manager He is the in-charge of accessories department of a Javali Automobiles “A car without accessories is like bride without jewelleries”. Here at Javali Automobiles, this sentence will let us know what the importance of accessories for a vehicle is. This doesn’t mean that accessories are compulsory but they are additional and give extra features and comfort. FINANCE DEPARTMENT: All monetary transaction of the company are handled by the finance department. Bankers of Javali Automobiles Pvt Ltd, Lakeview Honda. •
Canara Bank.
•
HDFC Bank.
•
Iffco Tokyo.
Following books are maintained by the accounts department; Petty cash book. 39
Purchase register Credit note register Journal register Sales register MARKETING DEPARTMENT The functions of the marketing department include the whole process of distribution and the process before distribution. Marketing makes the goods useful to the society by getting them where they are wanted, when they are wanted and by transferring them to those whom they are wanted. The type of customers purchase cars from Javali Automobiles range from Doctors, Engineers, Business people, Government employees, all whose earnings are around Rs. 50,000 per month. This company offers the following Products to its customer: Honda Jazz Honda City Honda Civic Honda Accord Honda CR-V Javali Automobiles is using the selling concept to sell its cars this concept assumes that consumers will not buy enough of its products unless they are approached through intensive sales promotions, advertisements, and salesmanship efforts and also effective communication with the market. This concept emphasizes the promotions in the marketing process. 40
MARKETING AND SALES The whole sales procedure involves functions from two sides 1. Front office 2. Sales consultants Both play an important role and they are the main determinants of purchasing process of the consumer. Both of these are internal factors affecting the consumer buying behavior. Buying car is of complex buying behaviour and many strategies are to be followed for this. This is complex buying behaviour because, Here risk involved is high. Here price factor is high. It is an important decision. Here the influencers are more. In one word it is “complex”.
FUNCTIONS: Daily check up of the opening and closing of the spares. Keeping in touch with the purchase department. Report to the purchase department in case the spare parts are defective. Maintaining spare account.
The spare stock is divided into three parts:
41
1) 85% this group contains fast moving items for instance servicing items and suspension items, Example: shock absorbers, cartridge. 2) 10% these items are neither fast moving nor slow moving. 3) 5% these items are not fast moving. They are generally costly items, Example: Body parts. The price list for the spare parts keeps on changing with time. So the company does not maintain its own price list as it along with the spares when purchased.
Key competitors •
Tata Motors
•
Maruti Suzuki
•
Hyundai
•
Ford
•
FIAT
•
General Motors
Research Methodology 42
Research is the search for knowledge through objective and systematic method of finding solution to a problem is research. Research is defined as human activity based on intellectual application in the investigation of matter. The primary purpose for applied research is discovering, interpreting, and the development of methods and systems for the advancement of human knowledge on a wide variety of scientific matters of our world and the universe. Research can use the scientific method, but need not do so.
Research Methodology Research methodology refers to the method the researcher uses in performing research operations.
Research Approach Type of research: 1. Exploratory Research Design: The major emphasis in exploratory research design is on discovery of ideas and insights. 2. Descriptive Research Design: The Descriptive Research Design Study is typically concerned with determining the frequency with which something occurs or the relationship between two variables. 3. Casual Research Design: A Casual Research Design is concerned with determining cause and effect relationship.
43
Data Collection Method Data for the present study is collected from two sources: Primary sources: The data are collected directly from the universe by conducting interviews, etc. these are the original sources from which the researcher directly gathers data which are not previously referred. Secondary sources: The data are collected from the secondary sources such as magazines, journals, etc. These sources consist of already variable data in the form of statements, and reports, which may include sensory reports, financial statements of the company, reports of governments departments, etc.
Data collection approach To carry out this research, primary data and secondary are collected. Primary data (survey data) Systematic collection of information directly from respondents. This data is collected for the descriptive research. The survey data collected during the study includes the data collected through questionnaire and face-to-face interview with customer to know about the consumer behaviour. Secondary data The first step in data collection approach is to look for secondary data. Usually it is the data developed for some purpose other than for helping to solve the problem at hand. Secondary data are collected through various magazines, internal experts, and website.
44
Measurement Technique 1. Questionnaire : Questionnaire is a list of question to be asked from respondents. It
also contains a suitable space where the answers can be recorded. 2. Scales (Likert Scale) : An extremely popular means for measuring attitudes.
Respondents indicate their own attitudes by checking how strongly they agree or disagree with statements. Response alternatives: “strongly agree”, “agree”, “uncertain”, “disagree”, and “strongly disagree”. Sampling Population The people of the Karnal city. Sampling Frame Customers of Honda car from Karnal. Sampling unit: Business people, Government services, Doctors, Engineers, Lawyers of Karnal city. Sample Size: 100 Sampling Method: Selective Random sampling method. Statistical tools used SPSS Package
45
FINDINGS AND ANALYSIS 1. Which car do you have or you like to have?
Model
Percent
Jazz
15.0
City
46.0
Civic
23.0
Accord
5.0
CRV
11.0
Total
100.0
Interpretation: Out of 100 respondents on whom survey was conducted ,15% of the respondents own Honda Jazz cars,46% own Honda City,23% own Civic cars,5% own Accord and 11% own CR-V cars. This shows that most the people own Honda City brand cars.
2. What influenced you to buy a Branded car? 46
Percent
Valid
Necessity
21.0
Status
34.0
Ads
17.0
Family
11.0
Friends
17.0
Total
100.0
Interpretation: With respect to the question what influenced you to buy a branded car, 21% of the respondents replied that it was necessity, 34% replied that it was Status, 17% replied it was the Ads that influenced them, 11% replied it was family and 17% replied they were influenced by Friends.
47
3. Did you search information for buying the car? Percent Valid Yes
93.0
No
7.0
Total
100.0
Interpretation: With respect to the question whether they searched information before buying car 93% of the respondents replied that they searched the information before buying the car and 7% did not search the information. According to the result of the survey, it can be inferred that most potential buyers usually search the information to an extent.
48
4. Before purchase did you compare with other company brands? Percent Valid Yes
84.0
No
16.0
Total
100.0
Interpretation: For the question whether they compared with other car brands that they were aware of, 84% of the respondents replied that they compared the car brands that they were aware of and 16% of them did not compare the car brands. This shows that maximum number of customer compare the car which they are going to buy with different car brands that they know.
5. When you bought the car was it your own decision or collective decision? 49
Percent Valid Own Decision
33.0
Family Decision 54.0 Friends
13.0
Total
100.0
Interpretation: The objective of this question was to find out whether the purchase decision was the Respondents own individual decision or a collective decision. As we can see in the above diagram that the majority of the respondents i.e. 54% respondents were influenced by the family decision,33% by own decision, 13% friends decision.
6. a) Which attributes did you consider while purchasing a car?
50
Percent Valid yes
73.0
no
27.0
Total
100.0
Interpretation: For the question whether they considered the brand name attribute while purchasing the car, 73% of the respondents considered the brand name attribute, where as 27% of them did not consider the brand name attribute while purchasing a car. This shows that most of the potential customers consider the brand name while purchasing the car.
6. b) Which attributes did you consider while purchasing a car?
51
Percent Valid yes
59.0
no
41.0
Total
100.0
Interpretation: With respect to the features attribute considered while buying a car 59% of the respondents considered the features attribute and 41% of them did not consider it.
6. c) Which attributes did you consider while purchasing a car? Price-attribute considered 52
Percent Valid yes
50.0
no
50.0
Total
100.0
Interpretation: With respect to the price attribute considered while buying the car 50% of the respondents considered the price attribute while purchasing the car and 50% of them did not consider.
6. d) Which attributes did you consider while purchasing a car? Quality-attribute considered 53
Percent Valid yes
51.0
no
49.0
Total
100.0
Interpretation: With respect to the quality attribute considered while buying the car 51% of the respondents considered the quality attribute while 49% of them did not considered it.
6. e) Which attributes did you consider while purchasing a car? Look-attribute considered
54
Percent Valid yes
31.0
no
69.0
Total
100.0
Interpretation: With respect to the look attribute considered while buying the car, 69% of the respondents did not considered the look attribute while 31% of them consider the look attribute.
55
6. f) Which attributes did you consider while purchasing a car? Mileage-attribute considered Percent Valid yes
65.0
no
35.0
Total
100.0
Interpretation: With respect to the mileage attribute considered while purchasing a car 65% of the respondents considered the mileage attribute while 35 % of them did not consider while buying the car. This shows that mileage factor plays an important role in brand choice.
56
6. g) Which attributes did you consider while purchasing a car? Others-attribute considered Percent Valid yes
21.0
no
79.0
Total
100.0
Interpretation: With respect to any other attributes considered while purchasing a car, 21% of the respondents considered other attribute while 79% of them did not consider other attribute.
7. How important is the brand name while purchasing the car? 57
Percent Valid Highly Important
21.0
Important
61.0
Neither Important nor 18.0 unimportant Total
100.0
Interpretation: With respect to the question how important is the brand name while purchasing the car 21% said brand name is highly important while purchasing the car, 61% said it is important and 18% of them said it is neither important nor unimportant and none of them said it unimportant or highly unimportant.
8) No. of Brands Considered while purchasing car?
58
Percent Valid Only 1
15.0
2 Brands 37.0 3 Brands 36.0 4 Brands 9.0 5 Brands 3.0 Total
100.0
Interpretation: For the question the No. of brands considered while purchasing the car 15% of the respondents considered only 1 brand, 37%considered 2 brands,36% considered 3 brands, 9% of them considered 4 brands and 3% of them considered 5 brands.
9) Is well known branded car always better in quality than less known brand?
59
Percent Valid Always
47.0
Sometimes
36.0
Most Frequently
7.0
Not necessarily 10.0 Total
100.0
Interpretation: It is a very important question regarding the quality perception of consumers between well known branded cars and lesser known branded car. In my view this question is very close to Brand name impact on consumer decision making. 47% of the respondents said that well known branded car is always better in quality than a less known brand, 36% said sometimes, 7% said most frequently and 10% of them said not necessarily that well known branded car is always better in quality than less known brand.
10) Do you think a well known branded car is a status symbol?
60
Percent Valid Yes,I agree
51.0
No,I dont agree
6.0
Not necessarily
22.0
I agree,but always
not
Total
21.0 100.0
Interpretation: For the question whether they think that a well known branded car is a status symbol ,51% of the respondents agreed that branded car is status symbol, 6% of them did not agree,22% said not necessarily and 21% said they agreed but not always.
11) Rank the following features for your car?
61
The objective of the question was to find out to what extent the brand Name is more important than the desired attributes of the product.
Price of car brands Percent Valid rank 1 14.0 rank 2 14.0 rank 3 29.0 rank 4 18.0 rank 5 25.0 Total
100.0
Interpretation: While ranking the attributes ,14% of the respondents ranked price as No.1 factor ,14% ranked price as No.2, 29% ranked No.3, 18% of them ranked price as No.4 and 25 % of the respondents ranked price as No.5.
a. Brand name of car
62
Percent Valid rank 1 46.0 rank 2 23.0 rank 3 15.0 rank 4 11.0 rank 5 5.0 Total
100.0
Interpretation: While ranking the attributes for their car, 46% of the respondents ranked brand name as No.1,23% of them ranked brand name as No.2, 15% of them ranked brand name as No.3,11% of them ranked brand name as No.4 and 5% of them ranked brand name as No.5.
63
b. Mileage of car Percent Valid rank 1 21.0 rank 2 17.0 rank 3 17.0 rank 4 34.0 rank 5 11.0 Total
100.0
Interpretation: While ranking the attributes for their ,21% of the respondents ranked mileage as No.1 factor,17% ranked mileage as No.2,17% ranked mileage as rank3,34% ranked mileage as No.4 and 11% ranked the mileage as No.5 factor.
C) Looks of car 64
Percent Valid rank 1
11.0
rank 2
17.0
rank 3
10.0
rank 4
18.0
rank 5
44.0
Total
100.0
Interpretation: While ranking the attributes for their car,11% of the respondents ranked looks of the car as No.1 factor, 17% of the them ranked No.2, 10% of them ranked looks of the car as No.3,18% of the ranked looks of the as No.4 and 44% of them ranked looks of the car as No.5 factor.
65
d) Quality of car
Percent Valid rank 1 16.0 rank 2 25.0 rank 3 30.0 rank 4 21.0 rank 5 8.0 Total
100.0
Interpretation: While ranking the attributes for their car, 16% of the respondents ranked quality the car as No.1 factors. 25% of them ranked No.2. 30% of them ranked quality as No.3. 21% of them ranked Quality as No.4 and 8% of them ranked quality of the car as No.5.
CONCLUSION 66
Based on the data analysis, I have concluded that when consumer purchases a car, brand names influence his Choice. Customers choose the well known branded car among other brands which are new or not so known. The study shows that branded cars have a great place in consumer mind, when customers go for purchasing a car, they prefer to purchase a well known branded car. Customers do not want to try new or unknown branded cars because they have no much information about the lesser known brand. Usually, people purchase well known branded cars because they might have heard before about brands or they have some information about them from other sources. When consumer purchases a car, the brand name, features, price, quality, looks, mileage and other factors like colour and space all this attributes influence him to buy a car. This makes customer feel more comfortable about the well branded cars at the time of decision making, as they are not so confident about the knowledge they have gathered about the other brands. This study also explains that customers trust the branded cars quality. While purchasing a car people are not interested in the less known brand car, as people are very attached to some specific brands. Some people are loyal to specific brands, over time they want to purchase the same branded car because the specific brand has satisfied the customer’s needs and in turn has gained the trust in the brand name. Brand name has a power, which attracts the customers towards branded products. The reason is that customer develop interest and special connection with specific brands product and become the loyal with brand.
67
Consumers are aware of Honda Car brands and consider it as luxury. Honda dealers should create more awareness of its economy and medium size segment which are very less in Karnal city. This project titled has been a knowledge gaining experience for me. By interacting with the respondents and making visits to the customers, I have been able to understand that understanding customers is an art and it takes a very strong brand image for a company to retain itself in the market.
68
Suggestions 1. As today’s customer are more aware about the different brands available in the
market so before purchasing they go for a search so it is necessary that sales executives are trained well about the brands so that it is easy for them to convince the customers. 2. Customers believe well branded cars are better in quality and service so the dealers should keep in touch with the customers regularly and update them about the service and offers, so that they become loyal customers and brand loyal. 3. Awareness of Honda cars is good in luxury segment and not in economy and
medium size segment so Honda dealers should create more awareness of its economy and medium size segment which are very less in Karnal city. 4. Javali Automobiles should create brand awareness through mass media because
through mass media company can reach maximum no. of potential customers. Through this company can reach the families because family plays important role in decision making. The following media can be used TV channels, local channels and news papers. 5. Also the dealer should place attractive hoardings of the Honda brands at strategic
locations in Karnal city 6. Honda and its dealers have to consider not only the market performance of its cars but also of its competitor’s cars and at the same time keep the track of the changing attitude of customer in changed situations. A good strategy differentiates company brand to other competitor’s brands.
Limitations: 69
Following are the limitations of the study that I came across: 1. The survey was restricted to only Karnal only. 2. The period for the research was not enough to conduct the study in depth. 3. The sample size was limited to only 100 customers. 4. Because of the busy schedule respondents may not have answered properly which may not hold true in such cases they should have got lot of time to answer.
BIBLIOGRAPHY 70
BOOKS •
Ashwathapa K, -‘ Human Resource and Personal Management, ‘Tata Mc Graw Hill ,5th
•
Rao VSP, “ Human Resource Management” ,Text and cases (Excel Books ,2nd Ed.),
•
Ivansevich, “Human Resource Management” ,Tata Mc Graw Hill, 10th Ed
•
Kothari
C.R, ‘Research
Methodology methods & Technique’ ,New Age
International Publisher ,2nd Edition ,2004 •
Beri G.C Marketting Research Tata Mc Graw Hill ,4th Edition
•
Cooper and Schindler –Business Research methods Tata Mc Graw Hill,9th Edition
•
Beri G.C., Consumer Behaviour, Tata Mc Graw Hill , 5th Edition
NEWS PAPERS: •
Hindustan times
•
Times of India
•
Economic Times
WEBSITES •
www.radicokhaitan.com
•
www.google.com
•
www.msn.com
•
www.hypofessor.com
•
www.mangalorebreweries.com
•
www.vinbros.com 71
•
http://www.hondacarindia.com/
•
http://en.wikipedia.org/wiki/honda
72
Annexure: Questionnaire Dear Sir/ Madam,
I am pleased to introduce myself as a MBA student of. I assure you that the valuable information provided by you will be of great help to me and will be used for academic purpose only. (Tick the appropriate one )
1. Which car do you have/would like to have? Honda:
1) Jazz 2) City 3) Civic 4) Accord 5) CR-V
2. What influenced you to buy a branded car? Necessity Status Ads Family Friends Others 3. Did you search information for buying the car? 1) Yes 2) No 4. Before purchase did you compare with other company brands? 1) Yes 2) No 5. When you bought the car? was it your own decision or collective decision? 1) Own decision 2) Family decision 3) Friends 4) Others
73
6. Which attributes did you consider while purchasing a car? Brand name Features Price Quality
look
mileage
others
7. How important is the brand name while purchasing a car? 1) Highly Important 2) Important 3) Neither Important/nor unimportant 4) Unimportant
5) Highly Unimportant
8. How many car brands did you consider while purchasing a car? 1) Only 1 brand 2) 2 brands 3) 3 brands 4) 4 brands 5) 5brands 9. Do you think that a well known branded car is always better in quality than a less known brand? 1) Always 2) Sometimes 3) Most frequently 4) Not necessarily 10. Do you think a well known branded car is a status symbol? 1) Yes, I agree 2) No, I don’t agree 3) Not necessarily 4) I agree, but not always
74
11. Rank the following features for your car brands (From 1 to 5,with 1 being the highest and 5 being the least) Honda
Price
Brand name
Mileage
look
Quality
a) Jazz b) City c) Civic d) Accord e) CR-V
12. Any suggestions: ______________________________________________________ _________________________________________________________________________ _______________________________________________________________________ Thank you for your valuable Time
75
