Project Report

On

"STUDY OF SALES PROMOTION & ADVERTISING OF HONDA TWO

WHEELER"

For partial fulfillment of the Requirement for the Degree of

BACHELOR OF BUSINESS ADMINISTRATION

Submitted by: Submitted to:

VANDANA KUMHAR Dr. ASHOK SONI
Roll No. 16159515 Head, Faculty of Commerce
BBA (VI Sem) Marketing HAWABAGH COLLEGE

HAWABAGH COLLEGE, JABALPUR (M.P.)

88, Narmada Road, Jabalpur, Madhya Pradesh 482001

AFFILIATED TO: RANI DURGAVATI VISHWAVIDYABYA, JABALPUR (M.P.)

2018-19

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 CERTIFICATE OF GUIDE

This is to certify that Mr. Vandana Kumhar,

student of Hawabagh College, Jabalpur of BBA program
has prepared a project report on topic "STUDY OF
SALES PROMOTION & ADVERTISING OF HONDA TWO
WHEELER" under my guidance.

Dr. Ashok Soni

Head, Faculty of Commerce & BBA

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 CERTIFICATE OF PRINCIPAL

This is to certify that Mr. Vandana Kumhar,

student of Hawabagh College, Jabalpur of BBA program
has prepared a project report on topic "STUDY OF
SALES PROMOTION & ADVERTISING OF HONDA TWO
WHEELER" under the guidance of Dr. Ashok Soni.

Dr. HARSHLATA

Principal, Hawabagh College

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 STUDENT DECLARATION

Vandana Kumhar, student of Hawabagh College,

Jabalpur of BBA program have prepared this project
report on topic "STUDY OF SALES PROMOTION &
ADVERTISING OF HONDA TWO WHEELER".

Vandana Kumhar

Signature

BBA (VI Sem.)

2018-19

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 ACKNOWLEDGEMENT

This project report was undertaken for the partial fulfillment of

BBA program pursuing at Hawabagh College.

Firstly, I would like to thank our Madam Principal Dr. Harshlata

for her encouragement and support.

I would also like to thank the institute and my guide Dr. Ashok
Soni for his invaluable help and guidance throughout my work. He
kindly expressed keen interest in my work and gave some useful
comments, which enriched the work substantially.

I would equally like to thank Mr. Tarun Mishra for providing

the needed support for the successful completion of this project.

I would also like to express sincere gratitude towards my sister

for sharing her wisdom and my parents for their encouragement and
financial support which helped me in bringing this project into
existence.

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 TABLE OF CONTENT

1. Introduction
2. Objectives Of The Company
3. Topic Description
a) Warranty Policy scope Of Warranty
b) Limitations Of Warranty
c) Warranty Details & Policy
d) About Honda Awards
e) Latest Models Of Honda
4. Company Profile
5. Research Methodology
6. Data Analysis
7. Findings
8. Limitations
9. Suggestions
10. Conclusion
11. Bibliography
12. Questionnaire

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 Chapter – 1

INTRODUCTION

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 INTRODUCTION

I talks about Indian two-wheeler industry, reference to Honda Motors

Limited is by default. It is not only the market leader in the two wheeler
segment in India but also is the number one two wheeler company in the world
by volumes. The company’s name is synonymous with fuel-efficient bikes and
longevity. The company has a presence in all bike segments viz. economy (CD
Deluxe, CD Dawn) executive (Super Splendor, Splendor+) and premium
(Karizma, CBZ). Splendor is the most successful product of the company and
accounts for almost 50% of the company’s turnover.

This project is done on the basis of questionnaire and data collected to

know the Study of sales promotion & Advertising of Honda. During my project
work I gathered some interesting knowledge which I have used in my final
project work.

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 Chapter – 2

OBJECTIVE OF THE COMPANY

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 OBJECTIVES OF THE COMPANY

The purpose of my project is to examine the market strategy of one of the

leading two-three wheeler company of India.
It is to be noted that the “Honda Company” is still continuing and
maintaining it’s goodwill of one of the finest two- wheeler manufactures in the
world.

With its golden history behind it become interesting and purposeful to

examine the strategic of this company, it will give a somewhat clear idea that
how this company has maintains itself successfully in these years.

Limitations

There were some limitations during marketing the project on

marketing strategy of Honda. There are some basic limitations
following below: -

 Time limitations
 Incorrect information due to personal biases.
 Based to specific region only, not overall India.
 A lack of enough data

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 Chapter – 3

TOPIC DESCRIPTION

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 SALES PROMOTION

Sales promotion is the process of persuading a potential customer to

buy the product.  Sales promotion is designed to be used as a short-term
tactic to boost sales – it is not really designed to build long-term customer
loyalty.

Some sales promotions are aimed at consumers.  Others are targeted at

intermediaries (such as agents and wholesalers) or at the firm’s sales force.

When undertaking a sales promotion, there are several factors that a business
must take into account:

 What does the promotion cost – will the resulting sales boost justify the
investment?

 Is the sales promotion consistent with the brand image?  A promotion

that heavily discounts a product with a premium price might do some
long-term damage to a brand

 Will the sales promotion attract customers who will continue to buy
the product once the promotion ends, or will it simply attract those
customers who are always on the look-out for a bargain?

There are many methods of sales promotion, including:

 Money off coupons – customers receive coupons, or cut coupons out of

newspapers or a products packaging that enables them to buy the
product next time at a reduced price

 Competitions – buying the product will allow the customer to take part
in a chance to win a prize

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  Discount vouchers – a voucher (like a money off coupon)

 Free gifts – a free product when buy another product

 Point of sale materials – e.g. posters, display stands – ways of presenting

the product in its best way or show the customer that the product is
there.

 Loyalty cards – e.g. Nectar and Air Miles; where customers earn points
for buying certain goods or shopping at certain retailers – that can later
be exchanged for money, goods or other offers

Loyalty cards have recently become an important form of sales promotion. 

They encourage the customer to return to the retailer by giving them discounts
based on the spending from a previous visit. Loyalty cards can offset the
discounts they offer by making more sales and persuading the customer to
come back.  They also provide information about the shopping habits of
customers – where do they shop,

when and what do they buy?  This is very valuable marketing research and can
be used in the planning process for new and existing products. The main
advantages and disadvantages of sales promotion are:

Advantages Disadvantages

Effective at achieving a quick boost to Sales effect may only be short-term

sales
Customers may come to expect or
Encourages customers to trial a product anticipate further promotions 
or switch brands
May damage brand image

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 ADVERTISING OF HONDA BIKE
Honda is the largest motorcycle manufacturer in Japan and has been
since it started production in 1955. At its peak in 1982, Honda manufactured
almost three million motorcycles annually. By 2006 this figure had reduced to
around 550,000 but was still higher than its three domestic competitors.

During the 1960s, when it was a small manufacturer, Honda broke out of
the Japanese motorcycle market and began exporting to the U.S. Working with
the advertising agency Grey Advertising, Honda created an innovative
marketing campaign, using the slogan "You meet the nicest people on a
Honda." In contrast to the prevailing negative stereotypes of motorcyclists in
America as tough, antisocial rebels, this campaign suggested that Honda
motorcycles were made for the everyman. The campaign was hugely
successful; the ads ran for three years, and by the end of 1963 alone, Honda
had sold 90,000 motorcycles.

Taking Honda's story as an archetype of the smaller manufacturer

entering a new market already occupied by highly dominant competitors, the
story of their market entry, and their subsequent huge success in the U.S. and
around the world, has been the subject of some academic controversy.
Competing explanations have been advanced to explain Honda's strategy and
the reasons for their success.

The first of these explanations was put forward when, in 1975, Boston

Consulting Group (BCG) was commissioned by the UK government to write a
report explaining why and how the British motorcycle industry had been out-
competed by its Japanese competitors. The report concluded that the
Japanese firms, including Honda, had sought a very high scale of production

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(they had made a large number of motorbikes) in order to benefit
from economies of scale and learning curve effects. It blamed the decline of
the British motorcycle industry on the failure of British managers to invest
enough in their businesses to profit from economies of scale and scope.

The second explanation was offered in 1984 by Richard Pascale, who had
interviewed the Honda executives responsible for the firm's entry into the U.S.
market. As opposed to the tightly focused strategy of low cost and high scale
that BCG accredited to Honda, Pascale found that their entry into the U.S.
market was a story of "miscalculation, serendipity, and organizational learning"
– in other words, Honda's success was due to the adaptability and hard work of
its staff, rather than any long term strategy. For example, Honda's initial plan
on entering the US was to compete in large motorcycles, around 300 cc.
Honda's motorcycles in this class suffered performance and reliability
problems when ridden the relatively long distances of the US highways. When
the team found that the scooters they were using to get themselves around
their U.S. base of San Francisco attracted positive interest from consumers that
they fell back on selling the Super Cub instead.

The most recent school of thought on Honda's strategy was put forward
by Gary Hamel and C. K. Prahalad in 1989. Creating the concept of core
competencies with Honda as an example, they argued that Honda's success was
due to its focus on leadership in the technology of internal combustion
engines. For example, the high power-to-weight ratio engines Honda produced
for its racing bikes provided technology and expertise which was transferable
into mopeds. Honda's entry into the U.S. motorcycle market during the 1960s is
used as a case study for teaching introductory strategy at business
schools worldwide.

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ABOUT HONDA

AWARDS

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SCREEN AWARDS :

Screen Weekly instituted screen Award in 1994. The Screen Awards are
different from other "popularity" awards; a panel of distinguished professionals
does the entire nomination and selection for the Screen Awards from the
industry itself, in a manner similar to that of the Oscars. And the criterion for
winning is professional excellence, not just popular view. A Screen Award is
thus considered the toughest award to win and is therefore most coveted award
in the industry.

The Awards for Hindi/Marathi films and TV and Non-film Music are presented
annually at a glittering function in January each year, at the Andheri Sports
Complex, Mumbai. Seven editions of the awards have thus far been presented.

Nominations for the 12th Star Screen Awards have been announced. The
awards, scheduled for 11 January, will rank the best of Bollywood in 26
categories, telecasted on Star Plus on 15 January.

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VARIEY OF TWO WHEELERS AVAILIABLE FOR NATIONAL &
INTERNATIONAL MARKETS.

Honda Scooter Eterno-150 CC

New Honda Dio Scooter

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PRE RIDE INSPECTION:

You should conduct pre - ride inspection before riding a two wheeler to enhance safety and
riding comfort.

Clean the two-wheeler body surface regularly to maintain the surface finish. Use specifically
designed cleaning products only.

Inspect your motorcycle before you start the engine. The items listed here will only
take few minutes, and in the long run they can save time, expense, and possibly your
life. Click to follow the tips as given below:

1. ENGINE OIL LEVEL

2. FUEL LEVEL

3. FRONT AND REAR BRAKES (DRUM TYPE)

4. TYRES

5. CLUTCH

6. DRIVE CHAIN

7. THROTTLE

8. LIGHTS AND HORN: Check if the headlight, tail /stop light, turn signals, indicators
and horn function properly.

9. REAR VIEW MIRROR: Ensure that the rear view mirror gives a good rear view
when you are sitting on the motorcycle.

10. AIR SUCTION VALVE: Make sure all tube connections are secured properly.
To meet emission standards, certain models of two wheelers are provided with the air
suction valve. Air suction valve supplies fresh air from air filter to the exhaust
manifold to convert carbon monoxide to carbon dioxide. This reduces the CO% in the
vehicle exhaust.

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 11. FITTING & FASTENERS: Check & tighten if necessary.

BATTERY

STEERING: Check for smooth action and maneuverability.

IMPORTANT MAINTENANCE TIPS

HONDA GENUINE ENGINE OIL - 4 T PLUS

Engine oil is a key determinant for efficient motorcycle performance and increased engine
life. Honda 4-T Plus Genuine Engine Oil is a premium quality engine oil, e ngineered to
meet the lubrication requirements of Honda Engines. Honda 4-T Plus conforms to
International specifications of API SJ SAE 20 W 40 / 10 W 30 and meets the JASO
specifications. We strongly recommend that you use Honda 4-T plus to maintain optimum
engine performance during extreme driving conditions.

Honda 4-T plus Genuine Engine Oil provides the following benefits compared to API SF
grade oil:

 Enhanced engine oil life.

 Excellent anti-wear properties to increase your motorcycle’s engine life.
 Minimizes the blow by gases by sealing the clearances within engine and improves the
engine’s power.
 Provides excellent protection against corrosion.
 Has very high stability against oxidation & temperatures.
 Facilitates easy cold starting.

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LATEST MODELS OF HONDA

HONDA ACTIVA

H0NDA CLIQ

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Page 22
Page 23
Page 24
Honda India launches HET equipped

Honda Elite 110 | Motor Scooter Guide

Page 25
 Chapter – 4

COMPANY PROFILE

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 COMPANY PROFILE

INTRODUCTION

When Honda Motor Company of Japan inked their joint venture in India in
April 1984, few could have imagined that the two would go on to create history
and become the subject of a case study at business schools, internationally.

But that's the Honda saga for you. In a little over two decades, the world's
largest manufacturer of bicycles and the global leader in motorcycles have
created not only the world's single largest motorcycle company but also the
most endearing and successful joint venture for Honda Motor Company
worldwide.

The company has sold over 15 million motorcycles and has consistently grown
at double digits since its inception and today, every second motorcycle sold in
the country is a Honda. In two decades, Honda has built two world-class
manufacturing facilities at Dharuhera and Gurgaon in Haryana that now churn
out over 3 million bikes per year.

In this period, Honda has set up over 2400 customer touch points, comprising a
mix of dealers, service centers and stockiest across rural and urban India.
Today, Honda is an amalgam of winning networks and
relationships with internal and external stakeholders, including Investors,
Dealers, Vendors and Employees.

These relationships have helped the company hold on to the mantle of World
No.1 for years in succession.

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What makes Honda well, Honda, is synergy. The two partners, leaders in their
respective domains, have been able to consistently draw on each other's
strengths.

The Honda Group's deep domain knowledge of the Indian market and its
supplier network has meshed with Honda's mastery over four-stroke engine
technology to create modern and fuel-efficient machines at affordable prices for
India 's 250-300 million strong middle class.

Progressively through the 1980s, the 1990s and now in the 2000s, Honda has
relied on 3 R's-- Reach, Research and Reliability as its basic building blocks.
Using feedback from the market, a fully equipped R & D center has consistently
created best practices in designing, testing and harmonization, besides placing
strong emphasis on road safety and ride quality. This emphasis has helped
Honda build products that are ahead of their time.

In the 1980s, for example, Honda became the first company in India to prove
that it was possible to drive a vehicle without polluting the roads. The company
introduced new generation motorcycles that set industry benchmarks for fuel
thrift and low emission.

A legendary 'Fill it - Shut it - Forget it' campaign captured the imagination of

commuters across India, and Honda sold millions of bikes purely on the
commitment of increased mileage.

Honda was also one of India’s first automotive companies to get close to the
customer. Over the years, feedback has flowed back and forth seamlessly
through a unique CRM program - the Honda Passport Program that now has
over 2.5 million members on its roster.

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The program has not only helped Honda understand its customers and deliver
value at different price points, but has also created a loyal community of brand
ambassadors.

The best is yet to come. Honda is powering its way through a market that is still
to unleash its true potential, as barely two per cent of the population has been
penetrated so far!

It isn't surprising that the company is in no mood to take its hand off the
throttle. As Brijmohan Lall Munjal, the Chairman, Honda Motors succinctly puts
it, "We pioneered India's motorcycle industry, and it's our responsibility now
to take the industry to the next level. We'll do all it takes to reach there.

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 BOARDS OF DIRECTORS

Minaro kato
PRESIDENT & CEO,
HONDA MOTORCYCLE & SCOOTER LTD

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Page 31
①　Takahiro Hachigo
President and Representative Director, Chief Executive
Office
②　Seiji Kuraishi
Executive Vice President and Representative Director, Chief
Operating Officer
③　Yoshiyuki Matsumoto
Senior Managing Director
④　Toshiaki Mikoshiba
Senior Managing Director
⑤　Yoshi Yamane
Senior Managing Director
⑥　Kohei Takeuchi
Senior Managing Director, Chief Financial Officer
⑦　Hideko Kunii
Director
⑧　Motoki Ozaki
Director
⑨　Takanobu Ito
Director and Advisor
⑩　Masahiro Yoshida
Director (Audit and Supervisory Committee Member) (full-
time)
⑪　Masafumi Suzuki
Director (Audit and Supervisory Committee Member)
(full-time)
⑫　Toshiaki Hiwatari
Director (Audit and Supervisory Committee Member)
⑬　Hideo Takaura
Director (Audit and Supervisory Committee Member)
⑭　Mayumi Tamura
Director (Audit and Supervisory Committee Member)

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 Chapter – 5

RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

There are some steps of methodology following below: -

 Searching company profile via Net.

 Meeting with office in charge for primary and secondary data.

 Collects the information from the officers of the organization.

 Interpretation of the data.

 Orderly arrangement of the necessary facts and figures.

 Draw the graph according to the sales volume.

 Draw the conclusion.

 Recommendation

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 Chapter – 6

DATA ANALYSIS

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Page 36
Chapter – 7

FINDINGS

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 FINDINGS

 It has been observed that among various Honda vehicles, Honda

splendor + is preferred choice of maximum Respondents.

 Many of the respondents got influenced by Advertisement &

Friends Medias.

 It has been observed that Honda vehicle are preferred for all the
income groups i.e. from below 50,000 – 1, 00,000(income per
annum).

 It has been observed that Honda vehicle are preferred for all the
age group i.e. from 16-60.

 To purchase a motor vehicle Respondent prefers Brand.

 It has been observed that Road condition and Road grip are the two
features influenced the Respondents to buy Honda vehicles.

 Respondents feel that Honda splendor +, passion plus, CD –

Deluxe is good for look and Maintenance Respectively.

Respondents want to upgrade vehicle periodically.

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 Chapter – 8

LIMITATIONS

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 LIMITATIONS

The warranty shall not apply:

 If any of the free services or subsequent paid service is not availed as per
the recommended service schedule given in the owner's manual.

 If Honda recommended engine oil is not used.

 To normal wear and tear components like bulbs, electrical wiring, filters,
spark plugs, clutch plates, brake shoes, fasteners, shims, washers, oil seals,
gaskets, rubber parts (other than tyres and tubes), plastic components,
chain and sprockets and in case of wheel rim misalignment or bend.

 If there is any damage due to modification or fitting of accessories other

than the ones recommended by Honda.

 If the two-wheeler has been used in any competitive events like track races
or rallies.

 If there is any damage to the painted surface due to industrial pollution or

other extraneous factors.

 For claims made for any consequential damage due to any previous
malfunction.

 For normal phenomenon like noise, vibration, oil seepage, which do not
affect the performance of the two-wheeler.

 If there is any damaged caused due to usage of improper oil/grease, non-

genuine parts.

 For two-wheelers which have been used for any commercial purposes as

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 taxi etc.

 For maintenance repairs required due to misuse while driving or due to

adulteration of oil, petrol or due to bad road conditions.

 For consumables like oil, grease etc. used during free services or used
during warranty repairs.

 If any part of the vehicle is tampered/repaired by unauthorized

persons/workshops etc.

 For two-wheelers not used in accordance with the owner's manual

supplied with each two-wheeler by Honda.

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 Chapter – 9

SUGGESTIONS

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  SUGGESTIONS
This chapter gives clear position and offers suggestion for forecasting the
future plans and further action. These suggestions are made taking into
consideration various aspect of product price, promotion and distribution to
over come the deficiencies.

 Honda should upgrade vehicles periodically.

 Frequent market survey should be conduct to be informed about the
customer Choice and Demand.
 The company should be concentrate on the up gradation in knowledge
of its staff and train them in all necessary skills required to serve the
customers better there by retaining them.
 The dealer should be customer oriented rather than being sales
oriented and thus strive to focus on relationship marketing.
 Customer feed back is crucial important and feedback forms can be
regularly taken through which Honda will find valuable suggestion
from its customers as to how they can improve their product and
services.

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Chapter – 10

CONCLUSION

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 CONCLUSION

The Study of Sales Promotion and Advertising of Honda.

CUSTOMER’S are preferred to Hero Honda vehicles because those vehicles

from Honda are suitable for all age group and Income group. From this study

what I come to is almost all the customers are satisfied with services provided

by Honda Auto bikes. The way the dealers respond to the customers is

exemplary. Because of the dealer’s commitment and quality evinces they stand

in number good position in Begusarai.

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 Chapter – 11

BIBLIOGRAPHY

Page 46
 BIBLIOGRAPHY

BOOKS REFERRED

 MARKETING MANAGEMENT: PHILIP KOTLER

 MARKETING RESEARCH: D.D.SHARMA
 MARKETING MANAGEMENT: Dr.S.L. VARSHANEY

WEBSITE

www.google.com

www. honda.com

www.wikipedia.com

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 Chapter – 12

QUESTIONNAIRE

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 QUESTIONNAIRE

I. PERSONAL DATA
1. Name : ………………………………………………………
2. Age : ………………………………………………………
3. Education :
a) Schooling b) Intermediate c) Degree//Diploma d) Other
4. Occupation :
a) Profession b) Business c) Other
5. Annual Income :
a) Below Rs. 50000 c) 75001-100000
b) Rs. 50001-75000 d) Above Rs. 100000
II. BUYING BEHAVIOUR:
1. What kind of vehicle you owe…………………………..
2. How did you hear about Honda Vehicle………………...
a) Advertisement b) Friends c) Mechanics d) Company Salesman
3. How long you are using Honda Vehicle?............................
4. What factor influenced you the most in buying Honda Vehicle?
a) Mileage b)Price c) Road Condition
5. How long you have Relationship with Dealers?...........................

III. SATISFACTION ABOUT THE DEALER

1. Dealer Instructions:
a) Satisfied b) Highly Satisfied c) Not Satisfied d) Not Reply
2. The Replacement of Spare Parts :
a) Satisfied b) Highly Satisfied c) Not Satisfied d) Not Reply
3. Dealer are customer friendly :

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 a) Satisfied b) Highly Satisfied c) Not Satisfied d) Not Reply
4. Promptness of Delivery :
a) Satisfied b) Highly Satisfied c) Not Satisfied d) Not Reply
IV. SATISFACTION ABOUT THE VEHICLE
1. Price of Vehicle:
a) Satisfied b) Highly Satisfied c) Not Satisfied d) Not Reply
2. Mileage Given by the Vehicle :
a) Satisfied b) Highly Satisfied c) Not Satisfied d) Not Reply
3. Road grip of the vehicle :
b) Satisfied b) Highly Satisfied c) Not Satisfied d) Not Reply
4. Durability of the Vehicle:
c) Satisfied b) Highly Satisfied c) Not Satisfied d) Not Reply
POST PURCHASE BEHAVIOR :
1. Do you Recommend Honda Vehicle to other?
a) Yes b) No
2. Will you to continue to by Honda Vehicle in Future?
a) Yes b) No
3. Did you ever have problem with the dealer?
a) Yes b) No
4. If yes, how did the dealer respond to you?
a) Yes b) No
5. Did you have any Compliant with the vehicle?
a) Yes b) No
6. How was the compliant Solved?
a) Replacement b) by Service c) By Refund of Money
V. RANK ORDER
Rank Order For Brand :

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 a. Honda ……………………..
b. Kinetic……………………..
c. Hero Honda………………..
d. TVS………………………..
e. Suzuki……………………..
Rank Order For Preferring Honda Vehicle:
a. Better road grip…………………….
b. Extra mileage………………………
c. Price Consumption…………………
d. Service……………………………...
e. If other please mention below:

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