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A detailed case study on Honda analysis.
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HONDAFounders- Soichiro Honda, Takeo Fujisawa
Mr Hironori Kanayama is President & CEO of
Honda Cars India ltd. with effect from 1st April, 2012 .
Honda Cars India Ltd. (HCIL) is a subsidiary of
the Honda of Japan.
In August, 2012, Honda bought out Usha International's
entire 3.16 percent stake . The company officially
changed its name to Honda Cars India Ltd.
HONDA AMAZE
Honda Motors introduced its first diesel car, the
Amaze.
On April 11, 2013 Honda Amaze was introduced
to Indian market.
The Amaze will compete with Maruti Suzuki
India Ltd.’s DZire and Tata Motors’ Indigo.
Honda says it’s the most fuel efficient of the cars
in the diesel car segment at 25.8km per litre.
Variants Ex-Showroom Price (New Delhi)
Honda Amaze 1.2 EMT i-VTEC
1198cc Petrol, Manual, 18 kpl₹ 4.99 lakhs
Honda Amaze 1.2 EXMT i-VTEC
1198cc Petrol, Manual, 18 kpl₹ 5.27 lakhs
Honda Amaze 1.2 SMT i-VTEC
1198cc Petrol, Manual, 18 kpl₹ 5.69 lakhs
Honda Amaze 1.5 EMT i-DTEC
1498cc Diesel, Manual, 25.8 kpl₹ 6.03 lakhs
Honda Amaze 1.5 EXMT i-DTEC
1498cc Diesel, Manual, 25.8 kpl₹ 6.30 lakhs
Honda Amaze 1.2 VXMT i-VTEC
1198cc Petrol, Manual, 18 kpl₹ 6.67 lakhs
Honda Amaze 1.2 SAT i-VTEC
1198cc Petrol, Automatic, 15.5 kpl₹ 6.70 lakhs
Honda Amaze 1.5 SMT i-DTEC
1498cc Diesel, Manual, 25.8 kpl₹ 6.73 lakhs
Honda Amaze 1.2 VXAT i-VTEC
1198cc Petrol, Automatic, 15.5 kpl₹ 7.58 lakhs
Honda Amaze 1.5 VXMT i-DTEC
1498cc Diesel, Manual, 25.8 kpl ₹ 7.66 lakhs
WHY DIESEL VARIANT??
Indians-mileage obsessed people.
Increasing demand for small engined
diesel car.
Increasing price of petrol.
Over the years this fact pushed Tata
Motor’s sales when they launched
TATA Indica.
Assuming , Petrol=Rs.77/ltr Diesel=Rs.55/ltr
Cost per km of diesel variant (Assuming mileage of 19 kmpl ) = Rs 2.8
Cost per km of petrol variant (Assuming mileage of 17kmpl ) =Rs 4.8
SALES & DISTRIBUTION NETWORK154 authorised dealership
facilities in 98 cities.“3S facility” format.
TAPUKARA GREATER NOIDA
SHOWROOMS
SEGMENTATON
Demographic segmentation:
Age and Life cycle stage:
◦ Honda Amaze E MT diesel : Young age group between 21-25 .(Basic model and fuel efficient).
◦ Corporate executives age group between 25-35.
Income:
◦ Medium : upper-middle income group.
Psychographic Segmentation:Life Style:
◦ Honda Amaze is targeting upper middle with stylish design
and looks, at an affordable price .
◦ Targets young corporate executives who prefers to travel in a
sedan than a hatch-back car .
Behavioural Segment:
Benefit:
◦ People who are very particular about quality and fuel
efficiency .
◦ since honda is known for its quality products , people will be
pleased to buy honda amaze which excels in quality adding
with fuel efficiency.
POSITIONING
Honda Amaze positioning:
“Ordinary is out AMAZING is in.”
Honda positioning:
Basic positioning as QUALITY .
“The power of dreams.”
STRENGTHS
Strong Brand image.
R&D capabilities
Fuel efficient and eco-friendly
engine technology.
Reliability.
• Expensive spare parts & labour costs
• Decreased employee productivity.
• No emergency service facility available
(Maruti's MOS)
• Low production capacity-long waiting
period
• Declining operating margins.
WEAKNESS :
THREATS
Economy slowdown
Competition
Tightening emission control
Sales outlets are less in number
comparatively.
COMPETITOR’S ANALYSIS
• Price-4.99-7.6 lakh• Regular three box
design• ENGINE-1.2
litre(petrol),1.5 litre(diesel)
• Mileage-25.8 kmpl• Sales outlets-150
Honda AMAZE
• Price-4.92-7.5 lakh• Rear seat is cramped.• Engine-1.2
litre(petrol),1.3 litre(diesel)
• Mileage-23.4 kmpl• Sales outlet-1200
Maruti Suzuki Dzire
OTHER COMPETITORS :
Mahindra Verito Vibe.
Hyundai plans to launch a sedan
based on i10,HB20 sedan based
already launched in Brazil.
MARKET SHARE
Market share calculated for June:
Amaze holds 14.32% of Market share. It
sold 4965 units.
While its competitors Maruti Suzuki
Dzire had 49.61%, Tata Indigo eCS
32.10% and Mahindra Verito Vibe 3.97%
of the market share of total Mid-Size
Sedan segment.
RECOMMENDATIONSIncrease the production capacity
to meet the demand .Reduce the waiting period.Increase dealership & service
networks.