Honda motors project report

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Chapter1: Introduction
1.1 Part A
About the industry
Introduction
The automotive industry is a wide range of companies and organizations involved in the
design, development, manufacturing, marketing, and selling of motor vehicles, some of
them are called automakers. It is one of the world's most important economic sectors by
revenue. The automotive industry does not include industries dedicated to the maintenance
of automobiles following delivery to the end-user, such as automobile repair shops and
motor fuel filling stations.
A motorcycle (also called a motorbike, bike, or cycle) is a two or three-wheeled motor
vehicle. Motorcycle design varies greatly to suit a range of different purposes: long
distance travel, commuting, cruising, sport including racing, and off-road riding.
Motorcycling is riding a motorcycle and related social activity such as joining a
motorcycle club and attending motorcycle rallies.
In 1894, Hildebrand & Wolfmüller became the first series production motorcycle, and the
first to be called a motorcycle. In 2014, the three top motorcycle producers globally by
volume were Honda, Yamaha (both from Japan), and Hero MotoCorp (India).
History

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The automotive industry began in the 1890s with hundreds of manufacturers that pioneered
the horseless carriage. For many decades, the United States led the world in total
automobile production. In 1929 before the Great Depression, the world had 32,028,500
automobiles in use, and the U.S. automobile industry produced over 90% of them. At that
time the U.S. had one car per 4.87 persons. After World War II, the U.S. produced about
75 percent of world's auto production. In 1980, the U.S. was overtaken by Japan and
became world's leader again in 1994. In 2006, Japan narrowly passed the U.S. in
production and held this rank until 2009, when China took the top spot with 13.8 million
units. With 19.3 million units manufactured in 2012, China almost doubled the U.S.
production, with 10.3 million units, while Japan was in third place with 9.9 million units.
From 1970 (140 models) over 1998 (260 models) to 2012 (684 models), the number of
automobile models in the U.S. has grown exponentially.
The first internal combustion, petroleum fueled motorcycle was the Daimler Reitwagen. It
was designed and built by the German inventors Gottlieb Daimler and Wilhelm Maybach

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in Bad Cannstatt, Germany in 1885. This vehicle was unlike either the safety bicycles or
the boneshaker bicycles of the era in that it had zero degrees of steering axis angle and no
forkoffset, and thus did not use the principles of bicycle and motorcycle dynamics
developed nearly 70 years earlier. Instead, it relied on two outrigger wheels toremain
upright whileturning.
The inventors called their invention the Reitwagen ("riding car"). It was designed as an
expedient testbed for their new engine, rather than a true prototype vehicle.
In 1894, Hildebrand & Wolfmüller became the first series production motorcycle, and the
first to be called a motorcycle (German: Motorrad). Excelsior Motor Company, originally a
bicycle manufacturing company based in Coventry, England, began production of their
first motorcycle model in 1896. The first production motorcycle in the US was the Orient-
Aster, built by Charles Metz in 1898 at his factory in Waltham, Massachusetts.
In the early period of motorcycle history, many producers of bicycles adapted their designs
to accommodate the new internal combustion engine. As the engines became more
powerful and designs outgrew the bicycle origins, the number of motorcycle producers
increased. Many of the nineteenth century inventors who worked on early motorcycles
often moved on to other inventions. Daimler and Roper, for example, both went on to
develop automobiles.
At the turn of the century the first major mass-production firms were set up. In 1898,
Triumph Motorcycles in England began producing motorbikes, and by 1903 it was
producing over 500 bikes. Other British firms were Royal Enfield, Norton and
Birmingham Small Arms Company who began motorbike production in 1899, 1902 and
1910, respectively. Indian began production in 1901 and Harley-Davidson was established
two years later. By the outbreak of the First World War, the largest motorcycle
manufacturer in the world was Indian, producing over 20,000 bikes per year.
First World War

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Triumph Motorcycles Model H, mass-produced for the war effort and notable for its
reliability
During the First World War, motorbike production was greatly ramped up for the war
effort to supply effective communications with front line troops. Messengers on horses
were replaced with despatch riders on motorcycles carrying messages, performing
reconnaissance and acting as a military police. American company Harley-Davidson was
devoting over 50% of its factory output toward military contract by the end of the war. The
British company Triumph Motorcycles sold more than 30,000 of its Triumph Type H
model to allied forces during the war.
With the rear wheel driven by a belt, the Model H was fitted with a 499 cc (30.5 cu in) air-
cooled four-stroke single-cylinder engine. It was also the first Triumph without pedals.
The Model H is regarded by many as having been the first "modern motorcycle".
Introduced in 1915 it had a 550 cc side-valve four-stroke engine with a three-speed
gearbox&belt transmission. It was so popular with its users that it was nicknamed the
"Trusty Triumph."
Postwar

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By 1920, Harley-Davidson was the largest manufacturer, with their motorcycles being sold
by dealers in 67 countries. By the late 1920s or early 1930s, DKW in Germany took over
as the largest manufacturer.
In the 1950s, streamlining began to play an increasing part in the development of racing
motorcycles and the "dustbin fairing" held out the possibility of radical changes to
motorcycle design. NSU and Moto Guzzi were in the vanguard of this development, both
producing very radical designs well ahead of their time. NSU produced the most advanced
design, but after the deaths of four NSU riders in the 1954–1956 seasons, they abandoned
further development and quit Grand Prix motorcycle racing.
Moto Guzzi produced competitive race machines, and by 1957 nearly all the Grand Prix
races were being won by streamlined machines. The following year, 1958, full enclosure
fairings were banned from racing by the FIM in the light of the safety concerns.
From the 1960s through the 1990s, small two-stroke motorcycles were popular worldwide,
partly as a result of East German Walter Kaaden's engine work in the 1950s.
Today

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In the 21st century, the motorcycle industry is mainly dominated by the Chinese
motorcycle industry and by Japanese motorcycle companies. In addition to the large
capacity motorcycles, there is a large market in smaller capacity (less than 300 cc)
motorcycles, mostly concentrated in Asian and African countries and produced in China
and India. A Japanese example is the 1958 Honda Super Cub, which went on to become
the biggest selling vehicle of all time, with its 60 millionth unit produced in April 2008.
Today, this area is dominated by mostly Indian companies with Hero MotoCorp emerging
as the world's largest manufacturer of two wheelers. Its Splendor model has sold more than
8.5 million to date. Other major producers are Bajaj and TVS Motors.
Many of the two-wheelers manufacturers were granted licenses in early 60's well after the
tariff commission was enabled.
Royal Enfield (India), Madras - technical collaboration with Royal Enfield, UK to
manufacture the Enfield Bullet range of motorcycles.
Bajaj Auto, Poona - technical collaboration with Piaggio, Italy to manufacture their best
selling Vespa range of scooters and three wheelers with commercial option as well.
Mopeds India Limited, Tirupathi - technical collaboration with Motobécane, France to
manufacture their best selling Mobylette mopeds.
Escorts Group, New Delhi - technical collaboration with CEKOP of Poland to manufacture
the Rajdoot 175 motorcycle whose origin was DKW RT 125
Indian Perspective

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The automotive industry in India is one of the largest in the world with an annual
production of 23.96 million vehicles in FY 2015-16, following a growth of 2.57 per cent
over the last year. The automobile industry accounts for 7.1 per cent of the country's gross
domestic product (GDP). The Two Wheelers segment, with 81 per cent market share, is the
leader of the Indian Automobile market, owing to a growing middle class and a young
population. Moreover, the growing interest of companies in exploring the rural markets
further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has 13
per cent market share.
India is also a prominent auto exporter and has strong export growth expectations for the
near future. In FY 2014-15, automobile exports grew by 15 per cent over the last year. In
addition, several initiatives by the Government of India and the major automobile players
in the Indian market are expected to make India a leader in the Two-Wheeler (2W) and
Four-Wheeler (4W) market in the world by 2020.
TWO WHEELERS IN INDIA
The feeling of freedom and being one with the Nature comes only from riding a two-
wheeler. Indians prefer the two wheelers because of their small manageable size, low
maintenance, pricing and easy loan repayments. Indian streets are full of people of all age
groups riding a two wheeler. Motorized two wheelers are seen as a symbol of status by the
populace. Thus, in India, we would see swanky four wheels jostling with our ever reliable
and sturdy steed: the two wheeler
India is the second largest producer and manufacturer of two-wheelers in the world. It
stands next only to Japan and China in terms of the number of two-wheelers produced and
domestic sales respectively. Indian two-wheeler industry has got spectacular growth in the
last few years. Indian two-wheeler industry had a small beginning in the early 50's. The
Automobile Products of India (API) started manufacturing scooters in the country.

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Bikes are a major segment of Indian two wheeler industry, the other two being scooters
and mopeds. Indian companies are among the largest two-wheeler manufacturers in the
world.
In the initial stages, the scooter segment was dominated by API; it was later overtaken by
Bajaj Auto. Although various government and private enterprises entered the fray for
scooters, the only new player that has lasted till today is LML.
The motorcycle segment was initially dominated by Enfield 350cc bikes and Escorts 175cc
bike.
The two-wheeler market was opened to foreign competition in the mid-80s. And the then
market leaders - Escorts and Enfield - were caught unaware by the onslaught of the 100cc
bikes of the four Indo-Japanese joint ventures. With the availability of fuel efficient low
power bikes, demand swelled, resulting in Hero Honda - then the only producer of four
stroke bikes (100cc category), gaining a top slot.
The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and Hero
Honda brought in the first two-stroke and four-stroke engine motorcycles respectively.
These two players initially started with assembly of CKD kits, and later on progressed to
indigenous manufacturing. In the 90s the major growth for motorcycle segment was
brought in by Japanese motorcycles, which grew at a rate of nearly 25% CAGR in the last
five years.
The industry had a smooth ride in the 50s, 60s and 70s when the Government prohibited
new entries and strictly controlled capacity expansion. The industry saw a sudden growth
in the 80s. The industry witnessed a steady growth of 14% leading to a peak volume of
1.9mn vehicles in 1990.
The reasons for recession in the sector were the incessant rise in fuel prices, high input
costs and reduced purchasing power due to significant rise in general price level and credit
crunch in consumer financing. Factors like increased production in 1992, due to new
entrants coupled with the recession in the industry resulted in company either reporting
losses or a fall in profits.
Key players in the Two-wheeler Industry:
There are many two-wheeler manufacturers in India. Major players in the 2-wheeler
industry are Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS
Motor Company Ltd (TVS).
The other key players in the two-wheeler industry are Kinetic Motor Company Ltd
(KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd

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(Yamaha), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda
Motorcycle & Scooter India (P) Ltd (HMSI).
Market Size
The industry produced a total 14.25 million vehicles including PVs, commercial vehicles
(CVs), three wheelers (3W) and 2W in April–October 2015, as against 13.83 in April–
October 2014, registering a marginal growth of 3.07 per cent, year-to-year.
The sales of PVs grew by 8.51 per cent in April–October 2015 over the same period in the
previous year. The overall CVs segment registered a growth of 8.02 per cent in April–
October 2015 as compared to same period last year. Medium & Heavy Commercial
Vehicles (M&HCVs) registered very strong growth of 32.3 per cent while sales of Light
Commercial Vehicles (LCVs) declined by 5.24 per cent during April–October 2015, year-
to-year.
In April–October 2015, overall automobile exports grew by 5.78 per cent. PVs, CVs, 3Ws
and 2Ws registered growth of 6.34 per cent, 17.95 per cent, 18.59 per cent and 3.22 per
cent, respectively, in April–October 2015 over April–October 2014.
Investments
In order to keep up with the growing demand, several auto makers have started investing
heavily in various segments of the industry during the last few months. The industry has
attracted foreign direct investment (FDI) worth US$13.48 billion during the period April
2000 to June 2015, according to data released by Department of Industrial Policy and
Promotion (DIPP).
 Some of the major investments and developments in the automobile sector in India are as
follows:
 Global auto maker Ford plans to manufacture in India two families of engines by 2017, a
2.2-liter diesel engine code-named Panther, and a 1.2-liter petrol engine code-named
Dragon, which are expected to power 270,000 Ford vehicles globally.
 The world’s largest air bag suppliers Autoliv Inc, Takata Corp, TRW Automotive Inc and
Toyoda Gosei Co are setting up plants and increasing capacity in India.
 General Motors plans to invest US$1 billion in India by 2020, mainly to increase the
capacity at the Talegaon plant in Maharashtra from 130,000 units a year to 220,000 by
2025.
 US-based car maker Chrysler has planned to invest Rs 3,500 crore (US$525 million) in
Maharashtra, to manufacture Jeep Grand Cherokee model.
 Mercedes Benz has decided to manufacture the GLA entry SUV in India. The company
has doubled its India assembly capacity to 20,000 units per annum.

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 Germany-based luxury car maker Bayerische Motoren Werke AG’s (BMW) local unit has
announced to procure components from seven India-based auto parts makers.
 Mahindra Two Wheelers Limited (MTWL) acquired 51 per cent shares in France-based
Peugeot Motorcycles (PMTC).
Government Initiatives
The Government of India encourages foreign investment in the automobile sector and
allows 100 per cent FDI under the automatic route.
 Some of the major initiatives taken by the Government of India are:
 The Government of India aims to make automobile manufacturing the main driver of
"Make in India" initiative, as it expects the passenger vehicles market to triple to 9.4
million units by 2026, as highlighted in the Auto Mission Plan (AMP) 2016-26.
 In the Union budget of 2015-16, the Government has announced plans to provide credit of
Rs 850,000 crore to farmers, which is expected to boost sales in the tractors segment.
 The government plans to promote eco-friendly cars in the country—i.e. CNG-based
vehicles, hybrid vehicles, and electric vehicles—and also to make mandatory 5 per cent
ethanol blending in petrol.
 The government has formulated a Scheme for Faster Adoption and Manufacturing of
Electric and Hybrid Vehicles in India, under the National Electric Mobility Mission 2020,
to encourage the progressive introduction of reliable, affordable, and efficient electric and
hybrid vehicles into the country.
 The Automobile Mission Plan (AMP) for the period 2006–2016, designed by the
government is aimed at accelerating and sustaining growth in this sector. Also, the well-
established Regulatory Framework under the Ministry of Shipping, Road Transport and
Highways, plays a part in providing a boost to this sector.Indian Two-Wheeler Market is
noticing a continuous upsurge in demand and thus resulting in growing production and
sales volume. This owes a lot to the launching of new attractive models at affordable
prices, design innovations made from youths’ perspective and latest technology utilized in
manufacturing of vehicles.
 The sale of two-wheeler products has increased substantially. The sales volumes in the
two-wheeler sector shot up from 15 percent to 24 percent between 2008-09 and 2013-14.
 A considerable expansion was seen in the sales volume of the scooter segment during
2014-15 as far as the two-wheelers were concerned. The domestic motorcycle sales
volume moved up to 10 percent, whereas the scooter segment recorded a growth of 30.7
percent in sales volume. In the past 2-3 years, around a dozen new scooter brands have
been introduced in India. But the motorcycle segment lags in this regard. This is since the

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recently launched gearless scooters cater to the needs of both men and women, while
motorbikes are a segment preferred by men only.
 Two-Wheeler Manufacturers
 Honda motorcycle and scooter India (pvt) ltd
 LML (India) ltd
 Hero Honda Motors India ltd
 Royal Enfield Motors India ltd
 Yamaha Motors India Pvt. Ltd
 Motorcycles in India
 Scooters in India
 Bajaj Auto ltd
 Kinetic Motor Co. ltd
 Monto motors
 Suzuki Motor Corporation
 Hero MotoCorp Motors ltd

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1.2 Part B
 About the subject
MARKETING
Introduction:
Marketing is the study and management of exchange relationships. The American
Marketing Association has defined marketing as "the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging offerings that have
value for customers, clients, partners, and society at large."
The techniques used in marketing include choosing target markets through market analysis
and market segmentation, as well as understanding methods of influence on the consumer
behavior.
From a societal point of view, marketing provides the link between a society's material
requirements and its economic patterns of response. This way marketing satisfies these
needs and wants through the development of exchange processes and the building of long-
term relationships.
In the case of nonprofit organization marketing, the aim is to deliver a message about the
organization's services to the applicable audience. Governments often employ marketing to
communicate messages with a social purpose, such as a public health or safety message, to
citizens.
Meaning
The action or business of promoting and selling products or services, including market
research and advertising.

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Definitions
Dr. Philip Kotler defines marketing as “the science and art of exploring, creating, and
delivering value to satisfy the needs of a target market at a profit. Marketing identifies
unfulfilled needs and desires. It defines, measures and quantifies the size of the identified
market and the profit potential. It pinpoints which segments the company is capable of
serving best and it designs and promotes the appropriate products and services.”
According to the American Marketing Association (AMA) Board of Directors, Marketing
is the activity, set of institutions, and processes for creating, communicating, delivering,
and exchanging offerings that have value for customers, clients, partners, and society at
large.
Marketing is the process by which a firm profitably translates customer needs into revenue.
Mark Burgess – Managing Partner.
Marketing is products that don’t come back and consumers that do. Steve Dawson –
President, Walkers Shortbread Inc.
Marketing is making connections between customers with your products, brand(s) and
business, such that they are likely to buy from you. Or as Regis McKenna said, “Marketing
is everything.” Sam Decker – Co-founder and Chief Executive Officer, Mass Relevance
Scope
The scope of marketing deals with the question, ‘what is marketed?’ According to Kotler,
marketing people are involved with ten types of entities.
1. Goods:
Physical goods constitute the major part of a country’s production and marketing effort.
Companies market billions of food products, and millions of cars, refrigerators, television
and machines.

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2. Services:
As economies advance, a large proportion of their activities is focused on the pro-duction
of services. Services include the work of airlines, hotels, car rental firms, beauticians,
software programmers, management consultants, and so on. Many market offerings consist
of a mix of goods and services. For example, a restaurant offers both goods and services.
3. Events:
Marketers promote events. Events can be trade shows, company anniversaries,
entertainment award shows, local festivals, health camps, and so on. For example, global
sporting events such as the Olympics or Common Wealth Games are promoted
aggressively to both companies and fans.
4. Experiences:
Marketers create experiences by offering a mix of both goods and services. A product is
promoted not only by communicating features but also by giving unique and interesting
experiences to customers. For example, Maruti Sx4 comes with Bluetooth technology to
ensure connectivity while driving, similarly residential townships offer landscaped gardens
and gaming zones.
5. Persons:
Due to a rise in testimonial advertising, celebrity marketing has become a business. All
popular personalities such as film stars, TV artists, and sportspersons have agents and
personal managers. They also tie up with PR agencies for better marketing of oneself
6. Places:
Cities, states, regions, and countries compete to attract tourists. Today, states and
coun-tries are also marketing places to factories, companies, new residents, real estate
agents, banks and business associations. Place marketers are largely real estate agents and
builders. They are using mega events and exhibitions to market places. The tourism
ministry is also aggressively promoting tourist spots locally and globally.

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7. Properties:
Properties can be categorized as real properties or financial properties. Real property is the
ownership of real estates, whereas financial property relates to stocks and bonds. Properties
are bought and sold through marketing. Marketing enhances the need of ownership and
creates possession utility. With improving income levels in the economy, people are
seeking better ways of saving money. Financial and real property marketing need to build
trust and confidence at higher levels.
8. Organizations:
Organizations actively work to build image in the minds of their target public. The PR
department plays an active role in marketing an organization’s image. Marketers of the
services need to build the corporate image, as exchange of services does not result in the
ownership of anything. The organization’s goodwill promotes trust and reliability. The
organization’s image also helps the companies in the smooth introduction of new products.
9. Information:
Information can be produced and marketed as a product. Educational institutions,
encyclopedias, non-fiction books, specialized magazines and newspapers market
information. The production, packaging, and distribution of information is a major
industry. Media revolution and increased literacy levels have widened the scope of
informa-tion marketing.
10. Idea:
Every market offering includes a basic idea. Products and services are used as platforms
for delivering some idea or benefit. Social marketers widely promote ideas. Maruti Udyog
Limited promoted safe driving habits, need to wear seat belts, need to prohibit children
from sitting near the driver’s seat, and so on.

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 Topic:
Brand loyalty
Meaning
Brand loyalty is a pattern of consumer behavior where consumers become committed to
brands and make repeat purchases from the same brands over time.
Loyal customers consistently purchase products from their preferred brands, regardless of
convenience or price. Companies often use different marketing strategies to cultivate loyal
customer, including loyalty programmes (i.e. rewards programs) or trials and incentives
(such as samples and free gifts).
Defination
A brand is seen as an idea or concept, not a product. This concept of a brand displays
imagery and symbolism for a product or range of products. Brands can have the power to
engage consumers and make them feel emotionally attached. Consumer’s beliefs and
attitudes make up brand images, and these affect how they will view brands they come into
contact with). Brand experience occurs when consumers shop for or search for, and
Consume products. Holistic experiences such as sense, relation, acting and feeling occur
when one comes into contact with brands. . Brand loyalty can be shortly defined as the
‘behavioural willingness to consistently maintain relations with a particular brand’ In a
survey of nearly 200 senior marketing managers, 68 percent responded that they found the
"loyalty" metric very useful.
True brand loyalty occurs when consumers are willing to pay higher prices for a certain
brand, go out of their way for the brand, or think highly of it.

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Purpose
Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or
otherwise continue using the brand and can be demonstrated by repeated buying of a
product or service, or other positive behaviors such as word of mouth advocacy.
Types
No Loyalty
For varying reasons, some customers do not develop loyalty to certain products or services.
For example, I know a manager of a travel agency who goes anywhere in town to get a
haircut, so long as it costs him $10 or less and he doesn’t have to wait. He rarely goes to the
same place two consecutive times. To him, a haircut is a haircut regardless of where he
receives it. (The fact that he is almost bald may have something to do with it!) His low
attachment toward hair services combined with low repeat patronage signifies an absence
of loyalty. Generally speaking, businesses should avoid targeting no-loyalty buyers because
they will never be loyal customers; they add little to the financial strength of the business
Inertia Loyalty
A low level of attachment coupled with high repeat purchase produces inertia loyalty. This
customer buys out of habit. It’s the “because we’ve always used it” or “because it’s
convenient” type of purchase. This buyer feels some degree of satisfaction with the
company, or at least no real dissatisfaction. This loyalty is most typical for frequently
bought products. This buyer is ripe for a competitor’s product that can demonstrate a
visible benefit to switching.

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It is possible to turn inertia loyalty into a higher form of loyalty by actively courting the
customer and increasing the positive differentiation he or she perceives about your product
or service compared to others available. For example, a dry cleaner that offers home
delivery or extended hours could make its customers aware of this fact as a way to
differentiate its service quality from that of competitors.
Latent Loyalty
A high relative attitude combined with low repeat purchase signifies latent loyalty. If a customer
has latent loyalty, situational effects rather than attitudinal influences determine repeat purchase. I
am a big fan of Chinese food and have a favorite Chinese restaurant in my neighborhood. My
husband, however, is less fond of Oriental food, and so despite my loyalty I patronize the Chinese
restaurant only on occasion and we go instead to restaurants that we both enjoy. By understanding
situational factors that contribute to latent loyalty, a business can devise a strategy to combat them.
The Chinese restaurant might consider adding a few all-American dishes to its menu to pacify
reluctant patrons like my husband.
Premium Loyalty
Premium loyalty, the most leverageable of the four types, prevails when a high level of
attachment and repeat patronage coexist. This is the preferred type of loyalty for all
customers of any business. At the highest level of preference, people are proud of
discovering and using the product and take pleasure in sharing their knowledge with peers
and family. Loyal Swiss Army Knife users are constantly telling friends and neighbors how
valuable the knife is; how many handy uses it has; and how often they have used it in a day,
a week or a month. These customers become vocal advocates for the product or service and
constantly refer others to it. When I was starting my business, a friend was newly inspired
by the Quicken software program, which automates one’s checkbook. He insisted on
bringing his program over and demonstrating it to me on my computer. He was displaying
premium loyalty.

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Measuring Brand Loyalty
Brand loyalty is difficult to measure with real precision, but there are some broad
measurement categories, which we’ll examine: retention, repurchase and referral.
 Retention. Unless a company is able to keep its customers, it cannot achieve any degree of brand
loyalty. According to Reichheld, a 5% increase in customer retention has the potential to increase
profits by 35 to 95% depending on the type of business. Growing customers into a brand loyalist rests
on the foundation of customer retention. For this reason, some measurement of retention is a necessary
part of any set of brand loyalty metrics. A company that seeks to increase its base of loyal brand
followers that is also experiencing a retention problem needs to first figure out how to stop the bleeding.
 Repurchase. It seems pretty intuitive that customers who repeatedly purchase have some sort of
attachment to the brand. However, you must also investigate the reasons for the repurchase
behaviour. Repurchase behaviour is often the product of convenience, of simply having your
solutions within easy reach of a buyer. Other times repurchase activity is motivated by a desire to
minimize risk by buying a solution that has always worked in the past. As these scenarios illustrate,
repurchase activity has several motivators. There is an argument here for ignoring the motivation
as long as the repurchasing activity persists. Any vendor will welcome repurchase activity from
customers regardless of the motivation. We can all agree, however, that the most powerful
motivation is true devotion to a brand, because it is the most impervious to competitive influence.
If you use repurchasing behaviour as a loyalty metric, look past the data to understand the
motivation.
 Referral. This is perhaps the best-understood and appreciated loyalty measurement category.
Loyalty and referral are really two sides of the same coin. Customers refer others to brands in
which they trust, and it takes a high degree of satisfaction with a brand for a customer to
recommend it. Companies that are interested in measuring the referral dimension of loyalty
routinely survey existing customers to ask if they would recommend the company’s solutions to
others, and the answer directly correlates to brand loyalty.

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How to Improve Brand Loyalty
Organisation customers have the freedom to choose the brands to which they’re loyal, but
organisation can influence the process. Here are some steps to take to increase brand clout and loyalty:
1. Establish the culture. Brand loyalty is very much a function of a company’s service culture. This
culture of service quality must come from the top of the organization and permeate throughout. The
place to begin when striving to cultivate brand loyalty is inside your firm to assess the culture and orient
everyone toward serving customers in a way that delights them.
2. Define loyalty. Understand whom you serve, so that organisation can operate using their definitions of
quality and satisfaction. Define loyalty from their point of view, not yours. Fundamentally you must
understand why customers choose products or services from vendors, why they stay with a vendor, and
what causes them to reconsider the relationship.
3. Influence loyalty. Listening to customers is one of the best ways to influence loyalty. Processes should
exist to solicit complaints, ideas and test customer sentiment. When customers feel listened to, it
generates feelings of loyalty, because they value being heard. Social media is an excellent channel for
listening to and dialoging with customers. Can organisation also express appreciation to customers,
making it clear that do organisation not take their business for granted. Simply training customer
facing staff to say “thank you” to customers is effective for strengthening bonds.
4. Measure loyalty. The right set of metrics isn’t the same for every company, but as previously
discussed, it will probably include at least one metric for retention, repurchase and referral. After
defining organisation metrics, establish a mechanism for collecting and tracking the data. Use a
tracking tool to help track and report on organisation metrics. Retention and repurchasing data for
organisation dash board may be available from a data warehouse or other internal systems, but
collecting referral data usually requires a survey. These steps will require commitment and an
investment. The return on both is realized through greater revenue, profit and an increase in the lifetime
value of a customer.

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Benefits of Brand loyalty:-
 Dramatic effects on profitability.
 Longer tenur as a customer.
 Lower sensitivity to price increases.
 Customer will welcomes brand organization marketing.
 Customer will explore brand image of the organization.
 Loyal customer are more profitable to the organization.

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Chapter 2: RESEARCH DESIGN
2.1: Title of the study
“A STUDY ON BRAND LOYALTY OF HONDA TWO-WHEELERS WITH
REFRENCE
TO ACTIVA”
2.2: Statement of the problem
In the competitive business world, it has become necessary to know how much market
power lies with the brand name. The study of brand Loyalty is essential in marketing
plan.Honda company’s most successful brand is Honda activa & this brand is serving the
people from several years & has the time evolved this brand has got several changes in it &
it has launched various subsequent brands under the same brand name & one of the latest
addition to it is Honda activa 3G series and they offers free service for few months, thus
this research is done for knowing whether the people are getting better service and product
features.
2.3: Objective of the study
 To know whether brand awareness in Honda activa 3G series affects the sales or helps the
dealers in making a sale.
 How the brand influence the market.
 Did the potential customers felt that the branded product matches their expectation?
 To know whether the people are aware about the latest addition of Honda activa.
 To know whether the brand is positioned in the minds of customers.
 To provide knowledge to customers about the latest addition of the Honda activa.
2.4: Scope of the study
The research study was undertaken to know whether public is aware of the product. It
helps the marketers to make a strategy to improve their sales of the product. The
methodology used for this research is best suited for the topic to get accurate conclusion.
Which would help us to research the objective of the study.

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2.5: Limitations
 Time constraint
 Error in data collection
 Hesitation by the people to provide information
 False information provided by respondents
 Bias shown by respondents while providing feedback
 The sample size of respondents is restricted to 100 members, so it is quite difficult to arrive
at proper conclusion.
2.6: Type of research
 Descriptive Research
It is used to obtain information concerning the current status of the phenomena
to describe ‘what exists’ with respect to variables or conditions in a situation.
The methods involved range from the survey which describes the status quote correlation
study which seek to determine change overtime
2.7: Methodology of the study
 Primary data
Primary data is that has not been previously published i.e. the data is derived from a new or
original research study & elects at a source. Primary data was collected through a
questionnaire & administrated to the customer.
2.8: Researchinstrument
 QUESTIONNAIRE
A set of printed or written questions with a choice of answers, devised for the purposes of a
survey or statically study.
A study is conducted by single questionnaire & personal interview by selecting the
customers on random basis.
A sample of 100 questionnaire was given for 100 random respondents.

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CHAPTER 3: Company Profile
3.1: History
Honda Motor Co., Ltd. is a Japanese public multinational conglomerate corporation
primarily known as a manufacturer of automobiles, aircraft motorcycles, and power
equipment.
Honda has been the world's largest motorcycle manufacturer since 1959, as well as the
world's largest manufacturer of internal combustion engines measured by volume,
producing more than 14 million internal combustion engines each year. Honda became the
second-largest Japanese automobile manufacturer in 2001.Honda was the eighth largest
automobile manufacturer in the world behind General Motors, Volkswagen
Group, Hyundai Motor Group, Ford, Nissan, and PSA Peugeot Citroën in 2011.
Honda was the first Japanese automobile manufacturer to release a dedicated luxury
brand, Acura, in 1986. Aside from their core automobile and motorcycle businesses,
Honda also manufactures garden equipment, marine engines, personal watercraft and
power generators, and other products. Since 1986, Honda has been involved with artificial
intelligence/robotics research and released their ASIMO robot in 2000. They have also
ventured into aerospace with the establishment of GE Honda Aero Engines in 2004 and
the Honda HA-420 HondaJet, which began production in 2012. Honda has three joint-
ventures in China (Honda China, Dongfeng Honda, and Guangqi Honda).

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In 2013, Honda invested about 5.7% (US$6.8 billion) of its revenues in research and
development. Also in 2013, Honda became the first Japanese automaker to be a net
exporter from the United States, exporting 108,705 Honda and Acura models, while
importing only 88,357.
Throughout his life, Honda's founder, Soichiro Honda had an interest in automobiles. He
worked as a mechanic at the Art Shokai garage, where he tuned cars and entered them in
races. In 1937, with financing from his acquaintance Kato Shichirō, Honda
founded Tōkai Seiki (Eastern Sea Precision Machine Company) to make piston
rings working out of the Art Shokai garage. A initial failures, Tōkai Seiki won a contract to
supply piston rings to Toyota, but lost the contract due to the poor quality of their
products. After attending engineering school without graduating, and visiting factories
around Japan to better understand Toyota's quality control processes, by 1941 Honda was
able to mass-produce piston rings acceptable to Toyota, using an automated process that
could employ even unskilled wartime laborers.
Tōkai Seikiwas placed under control of the Ministry of Commerce and Industry (called the
Ministry of Munitions after 1943) at the start of World War II, and Soichiro Honda was
demoted from president to senior managing director after Toyota took a 40% stake in the
company. Honda also aided the war effort by assisting other companies in automating the
production of military aircraft propellers.The relationships Honda cultivated with
personnel at Toyota, Nakajima Aircraft Companyand the Imperial Japanese Navywould be
instrumental in the postwar period. A US B-29 bomber attack destroyed Tōkai Seiki's
Yamashita plant in 1944, and the Itawa plant collapsed in the 13 January 1945 Mikawa
earthquake, and Soichiro Honda sold the salvageable remains of the company to Toyota
after the war for ¥450,000, and used the proceeds to found the Honda Technical Research
Institute in October 1946.
With a staff of 12 men working in a 16 m2 (170 sq ft) shack, they built and sold
improvised motorized bicycles, using a supply of 500 two-stroke50 cc Tohatsu war
surplusradio generator engines. When the engines ran out, Honda began building their own
copy of the Tohatsu engine, and supplying these to customers to attach to their
bicycles. This was the Honda A-Type, nicknamed the Bata for the sound the engine
made. In 1949, the Honda Technical Research Institute was liquidated for ¥1,000,000, or
about US$5,000 today; these funds were used to incorporate Honda Motor Co., Ltd.At
about the same time Honda hired engineer Kihachiro Kawashima, and Takeo Fujisawawho
provided indispensable business and marketing expertise to complement Soichiro Honda's
technical bent. The close partnership between Soichiro Honda and Fujisawa lasted until
they stepped down together in October 1973.

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The first complete motorcycle, with both the frame and engine made by Honda, was the
1949 D-Type, the first Honda to go by the name Dream.Honda Motor Company grew in a
short time to become the world's largest manufacturer of motorcycles by 1964. The first
production automobile from Honda was the T360mini pick-up truck, which went on sale in
August 1963.Powered by a small 356-cc straight-4 gasoline engine, it was classified under
the cheaper Kei cartax bracket.The first production car from Honda was the S500sports
car, which followed the T360 into production in October 1963. Its chain-driven rear wheels
pointed to Honda's motorcycle origins.
Over the next few decades, Honda worked to expand its product line and expanded
operations and exports to numerous countries around the world. In 1986, Honda introduced
the successful Acura brand to the American market to gain ground in the luxury
vehiclemarket. The year 1991 saw the introduction of the Honda NSXsupercar, the first
all-aluminum monocoque vehicle that incorporated a mid-engine V6 with variable-valve
timing.
CEO Tadashi Kumewas succeeded by Nobuhiko Kawamoto in 1990. Kawamoto was
selected over ShoichiroIrimajiri, who oversaw the successful establishment of Honda of
America Manufacturing, Inc. in Marysville, Ohio. Both Kawamoto and Irimajiri shared a
friendly rivalry within Honda, and Irimajiri would resign in 1992 due to health issues.
Following the death of Soichiro Honda and the departure of Irimajiri, Honda found itself
quickly being outpaced in product development by other Japanese automakers and was
caught off-guard by the truck and sport utility vehicleboom of the 1990s, all which took a
toll on the profitability of the company. Japanese media reported in 1992 and 1993 that
Honda was at serious risk of an unwanted and hostile takeover by Mitsubishi Motors, who
at the time was a larger automaker by volume and flush with profits from their
successful Pajero and Diamante.
Kawamoto acted quickly to change Honda's corporate culture, rushing through market-
driven product development that resulted in recreational vehicles such as the first
generation Odysseand the CR-V, and a refocusing away from some of the numerous
sedans and coupes that were popular with Honda's engineers but not with the buying
public. The most shocking change to Honda came when Kawamoto ended Honda's
successful participation in Formula One after the 1992 season, citing costs considering the
takeover threat from Mitsubishi as well as the desire to create a more environmentally-
friendly company image.
Later, 1995 gave rise to the Honda Aircraft Company with the goal of producing jet
aircraft under Honda's name.
On 23 February 2015, Honda announced that CEO and President Takanobu Itowould step
down and be replaced by Takahiro Hachigo by June; additional retirements by senior
managers and directors were expected.

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About Saphire Honda
Consumers Honda was started on July 2006. We are Honda Exclusive Authorized
Dealer of two wheelers manufactured by M/s Honda Motorcycle & Scooter India Pvt. Ltd,
HMSI. Our dealership is the first 4S Sales, Service, Spares & Safety setup all under one
roof in South Bengaluru, situated in the very prominent commercial locality near BM road
channapattna -567831 Town Ramanagara district
At Consumer Honda we strongly believe that Each & Every Customer is important and
Quality Service is the key for growth.
Consumer Honda service centers are equipped with modern facilities and automated tools
to render quick and quality service. Each service set up has a well-stocked accessories &
spares counter with genuine parts from HMSI. All the service centers are headed by
technically qualified and HMSI trained Managers who are in turn assisted by HMSI trained
Service Advisors & Technicians with an aim to provide quality service.
Consumer Honda is not yet another dealership but a world class experience which delivers
to its customers the Joy of Buying, the Joy of Owning & the Joy of Riding world class
Honda two wheelers along with a commitment to build an enduring relationship
transcending time with all its customers.
3.2: Vision
The Vision of Honda company is:
Basic Principles
 Respect for the individual.
 The Three Joys (buying, selling and creating).
We at Honda believe that each person working in or coming in touch with our Company,
directly or through our products, should share a sense of joy through that experience. This
feeling is expressed in what we call "The Three Joys"
Our Goal is to provide joy through our Business:
The Joy of Buying: For those who buy our Products
The Joy of Selling: Engage in selling our products and services
The Joy of Creating: Involved in business of creating our Products

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3.3: Mission
Company Principle (Mission Statement)
Maintaining a global viewpoint, we are dedicated to supplying products of the highest
quality, yet at a reasonable price for worldwide customer satisfaction.
3.4: Board of Directors
Name of Directors Current Board Membership
Takahiro Hachigo 57th President, CEO &
Representative Director
Kazuhiro Odaka Director & Executive Officer
Seiji Kuraishi 58th Representative Director &
Executive Vice President
Masayuki Igarashi 52nd Director & Executive Officer
Yoshiyuki Matsumoto 58th Director & Senior Managing
Executive Officer
Yoshi Yamane 57th Director & Senior Managing
Executive Officer
Shinji Aoyama 53rd Director & Executive Officer
Kohei Takeuchi 55th Director & Managing
Executive Officer
NoriyaKaihara 53rd Director & Executive Officer
Motoki Ozaki 67th Director
Takanobu Ito 63rd Director
Hideko Kunii 69th Independent Director

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3.5: Organization Structure
Board of Directors
President
General Manager
Chief EngineerISOcenter
Manager
Engineering
department
;,ijmg
fegf
Producti
on dept
Quality
dept
HR
dept
CEO
Financ
e dept
ware
house
Hongko
ng
office
Purchasi
ng dept
Biz
dept
Manager
ISODocument
control center
Tooling
workshop
Stamping
workshop
Die-casting
workshop
Winding
motor
Printing
workshop
Fans
Assembling
Fina
Assembly

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3.6 Awards & Recognitions on 2011
 Two-wheeler Manufacturer of the Year award by Bike India magazine. Adjudged the
"Bike Manufacturer of the Year" at the Economic Times ZigWheels Car and Bike Awards.
 CNBC Awaaz - Storyboard special commendation for "Effective rebranding of a new
corporate entity" by CNBC Awaaz Consumer Awards
 "Most Recommended Two-Wheeler Brand of the Year" award by CNBC Awaaz
Consumer Awards
 Colloquy Loyalty Awards "Innovation in Loyalty Marketing International 2011" for Hero
Good Life
 "Best Activity Generating Short or Long-Term Brand Loyalty" by the Promotion
Marketing Award of Asia Order of Merit for Hero Good Life
 Ranked No 1 brand in the Auto (Two-Wheelers) category in the Brand Equity "Most
Trusted Brand" 2011 serve
Profile of target customer
Hero MotoCorp basically targets the every each and segments of the market. So there are
some products like splendor, CD- dawn (rs40000-50000) they made for lower segment of
the market and glamour, passion, CBZ, karizma (rs above 50000) for the upper segment of
the market. And now they are trying to target the young people of the market.
India’s Hero MotoCorp, the world’s largest producer of motorcycles and scooters, has
announced its intention to expand globally, with plans to sell vehicles on three continents
and nearly double its unit sales within five years. The company, whose family shareholders
bought out its former partner Honda Motor this year, said it would invest about $1bn to
expand internationally in south-east Asia, Africa, and Central and Latin America.

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Customer Relationship Activity
For making a better relationship with customer they always use genuine parts in their
product. And after selling they have the services and maintenances. Their constant
endeavor is to support the company's mandate of providing highest level of customer
satisfaction by taking good care of customer’s two-wheeler service and maintenance
through their vast network of more than 2100 committed dealers and service outlets spread
across the country.
Apart from that hero motocorp focused on cleanliness and other aesthetics of the service
stations and add such air conditioned waiting area, internet surfing, coffee shops etc to
enhance the in house experience of the customers at those “customer touch point”. To
ensure that millions of customers in the rural area are not left waiting for adequate service
as it is impossible for the company to introduce service station at every nook and corner of
the country, mobile service stations are regularly arranged with prior intimation to public
about the rout that the mobile workshop would take when passing through that region so
that customers can come and get their two wheelers serviced. All these activities are aimed
to increase the customer loyalty and thus retaining customers.

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3.7 PRODUCT PROFILE
3.8 SOWT Analysis
Strength
 Huge brand equity and one of the
biggest players in the two wheelers
Indian market.
 Excellent R&D, and wide variety of
products in every segments.
 Good advertising and excellent
rebranding from hero Honda to Hero
moto corp.
Weakness
 Absence in the premium bike
segment
 High imports for its spare parts i.e.
over 30% imports.
 Most of the products have similar
feature and low on design and
innovation.
Opportunity
 Two-wheeler segments are one of the
most growing industries.
 Exporting of bikes if limited i.e.
untapped international markets.
Threats
 Strong competition from Indian as
well as international brands.
 Dependence on government policies
and rising fuel prices.
 Better public transport will affect
two-wheeler sales.

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Chapter 4
DATA ANALYSIS AND INTERPRETATION
CHART 4.1
GENDER
GENDER
NO OF
RESPONDENTS PERCENTAGE
MALE 85 85%
FEMALE 15 15%
TOTAL 100 100%

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GRAPH 4.1
GENDER
MALE FEMALE

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OCUUPATION RATE
CHART 4.2
OCCUPATION RATE
NO OF
Professional 11 11%
Business 32 32%
Student 21 21%
Employee 13 13%
Other 23 23
TOTAL 100 100%

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GRAPH 4.2
0
5
10
15
20
25
30
35
Professional Business Student Employee
OCCUOPATIONRATE

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INCOME RATE
CHART 4.3
INCOME RATE
NO OF
10,000- Rs.15,000 33 33%
Rs.15,001- Rs.20,000 32 32%
Rs.21,000- Rs.30,000 24 24%
Rs.31,000 & above 11 11%
TOTAL 100 100%

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GRAPH 4.3
0
5
10
15
20
25
30
35
10,000- Rs.15,000 Rs.15,001-
Rs.20,000
Rs.21,000-
Rs.30,000
Rs.31,000 & above
INCOMERATE

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OWNING OF THE TWO WHEELER
TABLE 4.4
OWNING Two wheeler
NO OF
YES 100 100%
NO 0 0%
TOTAL 100 100%

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GRAPH 4.5
OWNING OF TWO WHEELER
YES NO

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VEHICLE BRAND USED BY THE REPONDENTS
TABLE 4.6
VEHICLE BRAND
NO OF
HERO 11 11%
HONDA 32 32%
TVS 21 21%
YAMMAHA 13 13%
Other 23 23
TOTAL 100 100%

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GRAPH 4.6
0
5
10
15
20
25
30
35
HERO HONDA TVS YAMMAHA Other
VEHICLEBRAND

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AWARNESS OF HERO
TABLE 4.7
AWARE OF HERO NO OF RESPONDENTS PERCENTAGE
YES 100 100%
NO 0 0%
TOTAL 100 100%

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GRAPH 4.7
AWARE OF HERO
YES NO

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ADVERTISEMENT CHANNEL
TABLE 4.8
ADVERTISEMENT
CHANNEL
NO OF
ROAD SHOW 17 17%
WORD OF MOUTH 29 29%
FRIENDS 15 15%
INTERNET 20 20%
TELEVISION 19 19%
TOTAL 100 100%

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GRAPH 4.8
0
5
10
15
20
25
30
35
ROAD SHOW WORD OF
MOUTH
FRIENDS INTERNET TELEVISION
ADVERTISEMENTCHANNEL

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TABLE 4.9
FEATURES LIKED
NO OF
MILEAGE 33 33%
PRICE 17 17%
COLOUR 16 16%
AFTER SERVICE 19 19%
PICK UP 15 15%
TOTAL 100 100%

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GRAPH 4.9
0
5
10
15
20
25
30
35
MILEAGE PRICE COLOUR AFTER SERVICE PICK UP
FEATURES LIKED

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TABLE 4.10
PURCHASING MOOD
NO OF
YES 73 73%
NO 27 27%
TOTAL 100 100%

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GRAPH 4.10
PURCHASING MOOD
YES NO

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TABLE 4.11
VEHICLE BRAND
NO OF
HERO 11 11%
HONDA 32 32%
TVS 21 21%
YAMMAHA 13 13%
Other 23 23
TOTAL 100 100%

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GRAPH 4.11
0
5
10
15
20
25
30
35
HERO HONDA TVS YAMMAHA Other
VEHICLE BRAND

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TABLE 4.12
IF HERO THEN WHY ?
NO OF
DESIGN 33 33%
PRICE 17 17%
AFTER SALE SERVICE 16 16%
BRAND IMAGE 19 19%
MILEAGE 15 15%
TOTAL 100 100%

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GRAPH 4.12
0
5
10
15
20
25
30
35
DESIGN PRICE AFTER SALE
SERVICE
BRAND IMAGE MILEAGE
IF HERO THEN WHY?

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TABLE 4.13
BIKE FOR WHAT
PURPOSE
NO OF
BUSINESS 42 42%
DAILY USE 27 27%
LONG DRIVE 31 31%
TOTAL 100 100%

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GRAPH 4.13
0
5
10
15
20
25
30
35
40
45
BUSINESS DAILY USE LONG DRIVE
BIKEFORWHATPURPOSE

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TABLE 4.14
WHO IS THE AMBASDOR
NO OF
JOHN OBRAM 0 0%
AKSHAY KUMAR 11 11%
SALMAN KHAN 89 89%
TOTAL 100 100%

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GRAPH 4.14
0
10
20
30
40
50
60
70
80
90
100
JOHN OBRAM AKSHAY KUMAR SALMAN KHAN
WHO IS THEAMBASDOR

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