1. HONDA WORLDWIDE

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COMPANY BACKGROUND

Company founder Soichiro Honda, after working at Art Shokai, developed his own design for piston rings in 1938. He attempted to sell them to Toyota and after two years of work he won a contract with Toyota. He constructed a new facility to supply Toyota, but soon after, during World War II, the Honda piston manufacturing facilities were almost completely destroyed.

Soichiro Honda created a new company with what he had left. The Japanese market was decimated by World War II; his country was starved of money and fuel, but was still in need of basic transportation. Honda, utilizing his manufacturing facilities, attached an engine to a bicycle which created a cheap and efficient method of transport. He gave his company the name Honda Giken Kōgyō Kabushiki Kaisha which translates to Honda Research Institute Company Ltd. Despite its grandiose name, the first facility bearing that name was a simple wooden shack where Mr. Honda and his associates would fit the engines to bicycles. The official Japanese name for Honda Motor Company Ltd. remains the same in honor of Soichiro Honda's efforts. On 24 September 1948 the Honda Motor Co. was officially founded in Japan.

Honda began to produce a range of scooters and motorcycles and Soichiro Honda quickly recovered from the losses incurred during the war. Honda's first motorcycle to be put on sale was the 1947 A-Type (one year before the company was officially founded). However, Honda's first full-fledged motorcycle on the market was the 1949 Dream D-Type. It was equipped with a 98cc engine producing around 3 horsepower. This was followed by other highly popular scooters throughout the 1950s.

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Honda Super Cub C50

In 1958, the American Honda Company was founded and one year later, Honda introduced its first model in the United States, the 1959 Honda C100 Super Cub. The Honda Cub holds the title of being the best-selling vehicle in history, with around 50 million units sold around the world. Honda began developing prototypes for road cars in the early 1960s, mostly intended for the Japanese market. The first production vehicle by Honda was the 1963 T360, a tiny pickup truck featuring 4 different body styles (including a traditional truck bed and a panel van) and a 360cc, 30hp engine. This was followed two months later by Honda's first production automobile, the S500. The S500 was a 2 door roadster featuring a 492cc engine capable of 44 hp with a high 9,500 RPM redline. It was fitted to a 4-speed transmission with the rear wheels being chain driven. Mr. Honda took his extensive knowledge of motorcycles and applied it to making his car, of which the chain drive and high redline are evidence.At the time, nearly all of the Japanese automakers were associated with the former zaibatsu, or keiretsu — Japanese business conglomerates. These large companies had close ties with the government who urged them to absorb smaller carmakers into large brands that could be marketed internationally. Since the government had extensive control over the industry, it was unheard of for a small, independent company to mass produce vehicles, thus making Honda's success historic in the Japanese economy.Though participating in international motorsport (see Racing), Honda was having difficulty selling its automobiles in the United States. Built for Japanese buyers, Honda's small cars had failed to gain the interest of American buyers. Honda's first automobile imported to the United States was the N600, sold in Hawaii in 1969. In 1970, the car was imported to California and beyond, but its tiny 600 cc engine and minuscule dimensions made it very unpopular with the American public.

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Honda CivicHonda finally established a foothold in the American market in 1972 with the introduction of the Civic — larger than their previous models, but still small compared to the typical American car—just as the 1973 energy crisis was impacting worldwide economies. New emissions laws in the US requiring American car makers to add expensive smog pumps and catalytic converters to engines increased car prices. However, Honda introduced an innovative variation on the stratified charge engine, the CVCC (Compound Vortex-Controlled Combustion) in the 1975 Civic, this allowed the Civic to meet emission standards without a smog pump or a catalytic converter. Due to its more complete combustion it also obtained the lowest fuel consumption rating of any vehicle available on the American market for four years during its production.[4] American companies were slow to begin producing small, fuel efficient cars, which gave the Honda Civic a chance to sell well, as well as prove Honda's reputation for reliability and further expand its customer loyalty.

Honda Accord

In 1976, the new, larger-than-the-Civic Accord was immediately popular because of its value, economy, and fun-to-drive nature. The Accord has since consistently been one of the best selling cars in the United States, and evolved into a large mid-size for the North American market with V6 and hybrid versions.

Honda began building motorcycles in Marysville, Ohio in 1978 and then made history in 1982, when Honda was the first foreign auto manufacturer to build car plants in the US. The first car made in the US was the Accord. They now have five plants located in Ohio: two in Marysville (the Marysville Auto Plant and the Marysville Motorcycle Plant), one in East Liberty, Ohio, a Honda Transmission plant Russells

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Point, Ohio and an engine plant in Anna, Ohio. They also have plants in Lincoln, Alabama (Honda Manufacturing of Alabama) and Timmonsville, South Carolina and have recently (2006) opened a new plant in Tallapoosa, Georgia. Honda also has an extensive aftermarket parts operation located in Marysville, Ohio, and a research and development facility in Raymond, Ohio. Honda's North American and U.S. headquarters are located in Torrance, California. Honda's Canadian and many US-market Civics have been manufactured in their plant in Alliston, Ontario since 1986. On 27 June, 2006, Honda announced that another vehicle assembly facility will be opening in North America, this time in Greensburg, Indiana. Its completion is expected in 2008.

Honda was the first Japanese automaker to introduce a separate luxury line of vehicles. Created in 1986 and known as Acura, the line is made up of modified versions of Honda vehicles usually with more power and sportiness than their Honda counterparts. The very first model was the Acura Legend, with a 2.5 liter engine producing 151 horsepower. European luxury-car manufacturers initially scoffed at the thought of a luxury company from Japan, with criticism coming mostly from Mercedes-Benz.

1987 was an important year for new safety and technology at Honda. The 1987 Honda Prelude was the first passenger vehicle in the world equipped with four-wheel steering (4WS) technology. This also marked the year for the first Japanese car equipped with an SRS airbag, the Honda (Acura) Legend.

In 1989 Honda launched their VTEC variable valve timing system in its production car engines, which gave improved efficiency and performance across a broader range of engine speeds. One of the first of its kind in passenger vehicles. It operates on the premise of using different camshaft profiles (including duration, enganging a third rocker arm) depending on a number of sensors: throttle position, water/oil temperature, RPM. Low-load driving would result in VTEC not being engaged, the camshaft using an efficient-for-low-speed profile. When all sensors permit, the ECU engages the third lobe is engaged, using a different rocker arm, effectively changing the camshaft profile for an efficient-for-high-rpm profile.

In 1999 Honda began selling the Insight which was the first hybrid vehicle on the market. Power is derived from a combination of a 1.0L 3-cylinder gasoline engine, and a large NiMH battery pack providing power-assist during acceleration. This computer-controlled combination provided acceptable performance with exceptionally low fuel consumption and emissions. Honda's hybrid power train is now an available option for the Civic and Accord.

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For the 2007 model year, Honda plans to improve the safety of its vehicles by providing front-seat mounted side airbags, side-curtain airbags, and anti-lock brakes as standard equipment in all automobiles available in North America (except the Insight and S2000, which will not have side-curtain airbags). By 2008, Honda plans to have standard traction with vehicle stability control with rollover sensors in all light trucks, which include the CR-V, Odyssey, Pilot, and Acura MDX. Honda also plans to make its vehicles safer for pedestrians, with more safely-designed hoods, hinges, frame constructs, and breakaway wiper pivots.

In 2007, Honda stated it is going to launch low-priced hybrids and advanced diesel technology in the near future.

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COMPANY PROFILEHonda Motor Company, Japan with its headquarters in Tokyo, has manufacturing operations in 32 countries with 109 production bases. It has 3 business divisions namely 2-wheelers, 4-wheelers and Power Products. Apart from HMSI that manufactures 2-wheelers, the other business divisions in India include Honda Siel Cars India Limited (HSCI) and Honda Siel Power Limited(HSPL).

The company principal of Honda Worldwide is dedication to supplying products of the highest quality yet at a reasonable price for worldwide customer satisfaction.

Honda Siel Cars India Limited (HSCI)

Honda Siel Cars India Ltd., (HSCI) was incorporated in December, 1995 as a joint venture between Honda Motor Co. Ltd., Japan and Siel Limited to manufacture HONDA Passenger Cars in India. The company is ISO 9002 & ISO 14001 certified.

Company’s products include the 7th Generation Honda ’ACCORD’, launched in August, 2003 and new Honda ’CITY’, launched in October, 2003. The company is also engaged in selling its CR-V model through the CBU importation programme from Japan.

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Honda Siel Power Limited (HSPL)

Honda Siel Power Ltd (HSPL) is a Joint venture between Honda Motor Co., Japan and Siel Ltd.India. Currently Honda Motor Company, Japan has a 67% Equity Stake in this company. It was incorporated in September 1985 and produces a range of Power Products in India, like Portable Gensets, Portable Engines, Portable Water Pumping set and Lawnmowers.

Honda R&D (India) Pvt. Ltd.

By establishing R&D facilities in three key regions beyond Japan (designated as the Americas, Asia and Europe), Honda R&D develops technologies and products that reflect the needs of people in individual regions, yet bound together by common values including environmental preservation and regional economic development.The company's objective is to make an R&D that works jointly with the people of India to produce motorcycles for the enrichment of society and lifestyle of users of India

MANAGEMENTDETAILS OF DIRECTORS

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Chairman and Representative Director Satoshi Aoki

President and Representative Director Takeo Fukui

Executive Vice President andRepresentative Director

Koichi Kondo Chief Operating Officer for Regional Sales Operations (Japan)Chairman and Director of American Honda Motor Co., Inc.

Senior Managing andRepresentative Director Minoru Harada Chief Operating Officer for Motorcycle Operations

Purchasing Operations Support

Senior Managing andRepresentative Director

Atsuyoshi Hyogo

Chief Operating Officer for Regional Operations (China)President of Honda Motor (China) Investment Corporation, Ltd.

Senior Managing andRepresentative Director Satoshi Toshida Chief Operating Officer for Power Product Operations

Senior Managing andRepresentative Director Koki Hirashima

Chief Operating Officer for Production OperationsRisk Management OfficerGeneral Supervisor, Information Systems

Senior Managing andRepresentative Director Mikio Yoshimi

Chief Operating Officer for Business Support OperationsChief Officer of Driving Safety Promotion CenterCompliance OfficerGovernment & Industrial Affairs

Senior Managing andRepresentative Director Takanobu Ito Chief Operating Officer for Automobile Operations

Senior Managing andRepresentative Director Masaaki Kato General Supervisor, Quality

President and Director of Honda R&D Co., Ltd.

Managing Director Toru Onda Chief Operating Officer for Purchasing Operations

Managing Director Akira Takano Chief Operating Officer for Customer Service Operations

Managing Director Shigeru TakagiChief Operating Officer for Regional Operations (Europe, the Middle & Near East and Africa)President and Director of Honda Motor Europe Ltd.

Managing Director Tetsuo Iwamura

Chief Operating Officer for Regional Operations (North America)President and Director of Honda North America, Inc.President and Director of American Honda Motor Co., Inc.

Managing Director Tatsuhiro Oyama

Chief Operating Officer for Regional Operations (Asia & Oceania)President and Director of Asian Honda Motor Co., Ltd.

Managing Director Fumihiko Ike Chief Operating Officer for Business Management Operations

Director Satoru Kishi Advisor of the Board of The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Director Kensaku Hogen

Director and Advisor Hiroyuki Yoshino

Director Sho Minekawa Chief Operating Officer for Regional Operations (Latin America)

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President and Director of Honda South America Ltda.President and Director of Moto Honda da Amazonia Ltda.President and Director of Honda Automoveis do Brasil Ltda.

Honda Motorcycle & Scooter India Pvt. Ltd.(HMSI)

Honda is the world's largest manufacturer of 2-wheelers. Its symbol, the Wings, represents the company's unwavering dedication in achieving goals that are unique and above all, conforming to international norms. These wings are now in India as Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI), a wholly owned subsidiary of Honda Motor Company Ltd., Japan. These wings are here to initiate a change and make a difference in the Indian 2-wheeler industry. Honda's dream for India is to not only manufacture 2-wheelers of global quality, but also meet and exceed the expectations of Indian customers with outstanding after sales support.

Official Name- Honda Motorcycle & Scooter India Pvt. Ltd.Established- 20th Aug, 1999Place- Manesar, District Gurgaon, Haryana, IndiaInvestment- Rs. 300 CroreRepresentative- Mr. Shinji Aoyama, President & CEOFactory Location- Manesar, District Gurgaon, Haryana, IndiaProduction Capacity- 10,000,00 Units per Year

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HONDA RACING

“Racing improves the breed” - Sochiro Honda

Honda has always played an important role in motor sports, believing it to be the springboard for technological advancement.

It has also been an aggressive force in the endurance, motocross and trial races held around the world. We, at Honda, are not allowing this momentum to let up, as we pursue even greater achievements.

Honda has always loved racing, ever since Sochiro Honda took his company into motorcycle competition, sometime in the 1950s. Honda’s engineers have tested themselves on the international stage, proving their technology to be the best in the world. These technologies are tested in the extreme conditions of motorcycle racing, to adapt them for use in vehicles that ply on roads today.

In the past, Honda has powered some of the all time great racers, including Redman, Hailwood, Spencer, Gardner, Capirossi and Doohan, to 39 riders’ titles. Even today, some of the greatest motorcycle racers, like Alex Baros, Max Biaggi, Nicky Hayden ride on Honda bikes, at the races.

Honda enters the Isle of Man TT Races in 1959

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Michael Doohan riding Repsol Honda's NSR 500

Honda is an active particsipant in many off-road races

Technologies like these are not just for the race tracks, but are also incorporated in our everyday vehicles. They are first tested, refined and proven under the trying conditions in the races, and then finally adapted in the vehicles, so that two wheelers like Activa and Dio can utilise and benefit from such technologies.

HONDA AND SAFETYEnhancing safety on the roads is one of Honda's top priorities. They firmly believe that the realization of a comfortable and an enjoyable mobile society depends on the mutual trust that automobile manufacturers like them, share with the consumers and society.

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Honda, use a three prong approach, based on preventing accidents from happening in the first place, minimizing injury in the unlikely event of an accident and our Driving Safety Promotion operations.

Honda's safety philosophy emphasizes the development of appropriate technologies for its products, so as to ultimately achieve maximum riding comfort for its customers. Honda was the first manufacturer in Japan to develop and apply the anti-lock brake system. Educating the world, Honda is actively involved with driving education across the world for promoting traffic safety.

HONDA AND ENVIRONMENT

Honda and Environment

Honda has always wanted to pass on the beautiful natural environment to the next generation, and will continue its environmental conservation activities, meeting the high goals that it has set independently.

Developing Green Vehicles

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Giorno Crea

Honda, are striving towards developing zero-emission in all our vehicles. They are the first company in Japan to meet the most recent exhaust emission regulations. To reduce the environmental burden of four-stroke engines, they have developed a unique exhaust air injection system and a programmed fuel injection (PGM- F1) (PGM-F1) system, which is currently in use in the HONDA VFR motorcycle. On the other hand, the Giorno Crea, is a new generation, environment friendly 50cc scooter that is highly fuel-efficient.

Eco-Friendly Factory

Before Planting Aerial view of the Sayama plant

After Planting

Aerial view of the Sayama plant (15 years later)

Honda's production facilities across the world also actively pursue energy-efficient methods and prevent water pollution by reducing industrial waste. Honda has taken aggressive initiatives to reduce the environmental impact of its manufacturing operations, by implementing its concept of the "Green Factory". HMSI too is actively working towards establishing an environment management system.

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HMSI Environmental Policy

ISO 14001 certification

As responsible members of society and industry, Honda Motorcycle and Scooters India Pvt. Ltd. (HMSI), recognize that well being of humans and conservation of earth's environment is important.

HMSI got ISO 14001 certification in Dec. 2002, which is committed to achieve, environmental excellence in all its industrial activities.

HMSI will establish its environmental management system following PDCA cycle and continuously work to make it more effective. The policy will be well disseminated to our employees as well as to the public at large.

ISO 14001 Policy

Conserving environment through preventing pollution at its source of generation and strengthening our existing pollution control system.

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Promoting conservation of resources such as energy, water, oil and grease and other raw materials, by reusing, recycling and minimizing the waste generation.

Complying with all applicable legal/regulatory requirements and strive to go beyond wherever possible.

Regular monitoring and reviewing of environmental objectives and targets.

Increasing environment awareness and competence amongst our employees and encourage vendors & dealers to adopt EMS.

Green Dealer Concept

The "Green Dealer Concept" started by Honda is a step further in the direction of conservation of the environment.

The "Green Dealer Concept" would not only help in proper and efficient use of resources such as water, electricity, paper etc. by constantly monitoring and improving the existing systems thus doing lots of cost

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cutting but also reducing the polluting activities to minimum. Increasing environment awareness amongst the employees and the general public is also feature of this unique concept.

Green Dealer Concept

THE PHILOSOPLY

The Philosophy

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HMSI operates on a principle, which is followed worldwide by all Honda companies. Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction.

Honda's philosophy is based on the company's guiding principle andadvocates 2 fundamental beliefs:

Respect for the Individual

Honda recognizes and respects individual differences. The respect for individual stems from the following three points:

• Initiative• Equality• Trust

It is the contribution from each individual in the company that hasmade our company what it is today and that, which will take us into the future.

The Three JoysIn line with Honda's Philosophy, HMSI conducts all its daily activities in pursuit of the following joys:

The Joy of Buying

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The joy of using world class products

The Joy of SellingThe joy of selling world class products

The Joy of Manufacturing The joy of producing high quality products

HMSI NETWORK

Every Honda dealership is known as a H.E.A.D. - Honda Exclusive Authorised Dealer. Each H.E.A.D. exclusively handles Honda 2-wheelers and promotes business activities based on policies that focus on customer satisfaction. They are the representatives of HMSI in their respective markets and provide 4S facilities under one roof as per Honda's worldwide standards.

Wherever you travel across the globe, Honda H.E.A.D.s (Dealerships) stand out with their unique identity. The design of the H.E.A.D.s in India has also been done with the same purpose in mind.

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The 4S PolicyEach of the Dealers functions as a one-stop shop that takes care of all your concerns regarding your Honda product. Thus, with the objective of maximising customer satisfaction, all H.E.A.D.s provide facilities for Sales, Service, Spares and Safety Riding.

Sales

All H.E.A.D.s exclusively offer the sales of Honda 2-wheelers. When you enter the showroom, you will encounter attractive display and distinctive showroom environment, that will help you know our products better. Trained staff at each H.E.A.D. will help in your buying process and offer test rides to give you a feel of the product.Services

Quality repair and maintenance services are provided to ensure that customers continue to ride Honda 2-wheelers under safe and optimal conditions.

Spare Parts

Adequate stock of genuine Honda spares are readily available for quick repair and servicing.

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Safe Riding

Respect for human life forms a part of Honda's corporate philosophy. To realize this, safety riding is being actively promoted by HMSI. Safety riding programmes have been implemented at all H.E.A.D.s. Our wish is to build-up a safe environment for driving, by giving pre-delivery safety advice to each Honda customer.

PRODUCT LINEHMSI works on a Market–IN concept, which focuses on understanding customer needs and desire and translating them into product specifications. It is due to this concept that with in just five years of its launch in India, HMSI has changed the Indian two wheeler market with its products – Honda Activa, Dio, Eterno, Unicorn & Shine.

SHINEA masterful blend of form and function, the new Honda Shine brings together the best of all that is sought in a motorcycle into one awe inspiring piece of automotive technology.

Equipped with a host of advanced technologies like Multi Mapping CDI, Tumble Flow Combustion Chamber, Long Intake Pipe and Connecting Tube, CV Carburetor, 2 Way Air Jacket and Pulse Exhaust System, the newly developed 125 cc 'Optimax' engine delivers class leading 10.3 BHP which enables Honda Shine to deliver the best balance of pickup and mileage.

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Designed to ensure superior ride quality and ease of handling through revolutionary Ergo Tec design, which is based on Human engineering Honda Shine will set new benchmarks in the Indian 125cc motorcycle segment.

Honda Shine completes a 0 – 60kmph run in just 5.3 secs and returns a class leading 65kmpl in the process in the Indian riding mode.

Honda Shine has been endowed with new modern intelligent style appeal, which possesses a balance of decent looks with tough & macho appeal and an image of sporty looks with international taste that lends the HONDA SHINE a Decent and stylish look.

UNICORNPowered by a newly developed Honda 4-stroke 150cc engine and incorporating many cutting-edge technologies developed by Honda's global R&D team, Unicorn sets new benchmarks for premium motorcycles in India with its swift acceleration, superior mileage, captivating style, riding comfort and convenience.

Unicorn is engineered and styled for the tastes of the younger generation having focused vision in lives. With the 4-stroke 150cc engine delivering a whooping 13.3 bhp, Unicorn is the fastest premium motorcycle in India racing from 0 to 60 kms per hour in a mere 5 seconds. Unicorn has a distinctive sporty and macho design with a racy front face, masculine fuel tank with knee grip and a natty rear.

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Unicorn offers superior mileage through a combination of the famed 4-stroke Honda engine, cutting edge technologies like Multi-Mapping CDI, Tumble Flow Combustion Chamber and Roller Rocker arm, and a classy aerodynamic body. It delivers 60km to a litre.

Unicorn is the first motorcycle in India with the hi-tech mono suspension that enhances riding comfort and control, and is now available in new Sleek Graphics.

ETERNO

An entirely new standard in scooters. Tough, sleek and with the best mileage in its class. Designed especially for the Indian conditions & to suit your everyday needs.

The Eterno is a tough & stylish 4-stroke scooter incorporating the best of Honda’s worldwide technology standards. Right from the engine to the body frame, each part is designed to be more durable & withstands the rough & tough Indian conditions.

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ETERNO is a new Indian standard scooter that defies conventional ideas about a full size scooter in India. To those who have resigned to the fact that present full size scooters do not satisfy their basic needs of riding comfort, loading capacity & better fuel efficiency, ETERNO is a big surprise as it has got:

• Reliable, newly designed 4-stroke 150cc engine• Best fuel efficiency in its class (60 kmpl)• Ample, practical loading capacity• Riding comfort even during multiple ride• Masculine, tough & sleek stylingSo shed your worries about the full size scooter as "Geared Surprise from Honda is here." So, go ahead & enjoy the ride.

DIO

One look at DIO will tell you it’s more an accessory than a mere convenience. As India’s first motoscooter is named after the son of Venus ‘Dyonisiac’, also known as Cupid, the God of Love. DIO is set to add passion and excitement with its stunning looks and performance, by incorporating the latest world trends that make it a scooter that is much ahead of its time.

One look at DIO will tell you it’s more an accessory than a mere convenience. As India’s first motoscooter, it blends the looks of a motorcycle with the comfort of a scooter. DIO heralds the dawn of two–wheeler fashion. And if looks are anything to fall for, this is a treat. The body–mounted headlamp and sleek indicators leap right off the front. Ample legroom gives you an elegant poise. The body tapers into the taillight and yet continues to draw attention.

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The DIO is complete in itself. Cutting edge technology and style have been brought together in such a way as to make it an engineering marvel. So, you can ride assured that a bike doesn’t get or look any better.

Of course, this qualifies us to have the last word on style. If there everexisted an attention magnet, this is it.

ACTIVA

Honda Activa is the first scooter model of HMSI for the Indian market. It has revitalised the Indian scooter market after its launch in the year 2001.

By design, the Activa let's anybody in the family get their hands on it. To make riding fun, we removed the gears and retained only those controls which can be safely left to your reflexes. Like the accelerator and the brakes in a lightweight body. So now, mothers can enjoy an easy ride while fathers will appreciate its sturdy build.

In fact, an Activa has something in it for everyone. We’ve got two new colour graphic stickers, a flamboyant one for the young rider who adheres to style. And for the mature rider we have got a more sober

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looking sticker, a reflection of their personality. You’ll never see ease, technology and style come together in such a smooth way. As in the Honda Activa.

2. REGENCY MOTORS

(An authorized Dealer of Honda Motorcycles and Scooters India Pvt. Ltd.)

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INTRODUCTION

Regency Motors is a group of authorized dealership of Honda Motorcycle & Scooter India Pvt. Ltd. Since 9th Oct. 2002. and consist of units at Jammu, Udhampur, Srinagar, and two dealer workshops at Jammu & Srinagar). The group deals with the sale of new two wheelers and their servicing.

All the dealerships are equipped with latest state-of-art workshops and also deal in HONDA Genuine Spare Parts as well as HONDA Genuine Accessories.

Regency Motors has been awarded many honors at various functions and HMSI dealers meet. The group consists of 200 (app.) employees and boasts of employee's retention over the past 7 years. It is due to the credit of hard work that the group sells 4015 new vehicles and services 16500(mechanical) & 1000 (accidental) vehicles annually. This enables the employees to earn handsome incentives apart from salary. Company gives many benefits to its employees like interest free loans, leaves, ESI & EPF. In Regency Motors, employees are looked after incase of injuries sustained by them and financial assistance is provided to them to look after dependent parents.

Regency Motors has the following dealerships, which are functioning, at places mentioned against each: a. Regency Motors Jammu (J&K)b. Regency Motors Udhampur (J&K)c. Regency Motors Srinagar (J&K)

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It is the oldest dealership of Regency family. The Regency Motors, Jammu was inaugurated by Mr. Y. S Guleria, the Sr. Manager, Sales and Marketing , HMSI.

The Regency Motors enjoyed a Turn Over of 12 crores in the year 2006-2007.

SPECIAL FEATURES/FACILITIESLocation:

Regency Motors is located at National Highway 1A,71- Rehari, B. C Road, Jammu(J&K) 180005.Show Room:

The dealership has a latest state-of-art modern showroom with all facilities for the customer care with adequate space for all important modals of HMSI Two wheelers to display and it is one of the most modern and spacious showroom in Jammu. The showroom has been furnished and equipped with all modern facilities that are essentially required for customer care.Accessories:Within the showroom it has got a well furnished and equipped accessories room where all important and attractive items have been suitably displayed so as to make it easy for the customers to choice their brand. The accessories room has attached store facilities for daily replenishment.Workshop:

Regency Motors has the latest state-of-art modern HMSI Dealership with fully equipped workshops, plus modern customer care

facilities and the most modern body shop which makes it the best Automobile Dealership in Jammu & Kashmir. The workshop has trained manpower by HMSI who has been in Regency Motors

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for the last 7years. It has 8 operative bays besides other modern facilities. It's indeed a one-stop shop for HONDA accessories.

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ORGANISATIONAL CHART OF REGENCY MOTORS

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3. CUSTOMER BEHAVIOUR-SYNOPSIS

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TOTAL CUSTOMER SATISFACTION

Whether the buyer is satisfied after purchase depends upon the offer's performance in relation to the buyer's expectations. In general, satisfaction is a person's feelings of pleasure or disappointment resulting from comparing a product's perceived performance (or outcome) in relation to his or her expectations. If the performance falls short of expectations, the customer is dissatisfied. If the performance matches the expectations, the customer is satisfied. If the performance exceeds expectations, the customer is highly satisfied or delighted.

The link between customer satisfaction and customer loyalty is not proportional. Suppose customer satisfaction is rated on a scale from one to five. At a very low level of customer satisfaction (level one), customers are likely to abandon the company and even bad-mouth it. At levels two to four, customers are fairly satisfied but still find it easy to switch when a better offer comes along. At level five, the customer is very likely to repurchase and even spread good word of mouth about the company. High satisfaction or delight creates an emotional bond with the brand or company, not just a rational preference.

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CONSUMER BEHAVIOURThe basic idea behind this project was measuring the level of

customer satisfaction of Regency Motors. A basic knowledge of what consumer behaviour is, therefore a necessity.

"Consumer Behaviour is the process whereby individuals decide what, when, where, how and from whom to, purchase goods and services." —Walters and Paul

"Consumer Behaviour is all psychological, social and physical behaviour of potential customers as they become aware of, evaluate, purchase, consume and tell other people about products and services."

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—Webster

BUYING DECISION PROCESSErgo, Consumer Behaviour consist of the acts of individuals in

obtaining, using and disposing of economic goods and services, including the decision processes that precede and determine these acts. It may be viewed as an orderly processes whereby the individuals interacts with his environments for the purpose of marketing decisions on services and products. Consumers don't make their decisions haphazardly in a vacuum. Consumers envisage various factors such as psychological, cultural, social and personal before making any purchase.

Based on the examination of many consumer reports on the buying process have been conceptualized by consumer behaviour researchers. Five stages have been identified through which a consumer passes (buying decision process):

(a) Identifying the Need: i.e. recognizing a need for a product or service. For instance, a person feels a need to buy a new scooter or motorcycle.

(b) Information Search: After need arousal, the customer tries to solve it and gathers the sources of information about the product. For instance, a person having recognized his need to buy a scooter or motorcycle will collect information about all available scooters or motorcycles in the market, dealers of various scooter or motorcycle brands etc.

(c) Evaluation of Alternatives : From the information gathered, a consumer has wide variety of alternatives. He evaluates each of these choices according to his requirements. For instance, he will evaluate which scooter or motorcycle suits his budget, it's personality is liked by his family, will give him comfort and to his status etc.

(d) Buying Decision : The decision evaluation stage leads the consumer to form preferences among the brands in the choice set. The consumer also forms a purchase intention and lean towards trying the preferred brand. However, attitudes of

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others and unanticipated situational factors may influence the purchase decisions. For instance, the person might decide to buy a ACTIVA but his family might insist on ETERNO and he finally buys a ETERNO.

(e) Post Purchase Behaviour : Analyzing what happens after a sale is as important as understanding what causes consumers to buy in the first place. In fact, because this is an analysis of actual rather than potential customers and purchase situations, enlightened marketers consider post purchase behaviour of primary importance in its impact on future sales. Analyzing both positive and negative post purchase behaviour is a very effective means through which goods and services can be improved, promotions better targeted, and strategies reshaped both to keep current customers and to attract new ones like them. After purchasing the product, the consumer will experience some level of satisfaction or dissatisfaction. For instance, after purchasing the ETERNO, the customer will feel satisfied and dissatisfied of the various features heard about the scooter earlier.

Post Purchase Satisfaction : "This stage is the base of this project report. The survey was conducted to check the post purchase satisfaction or dissatisfaction of customers of REGENCY MOTORS, causes and remedies of satisfaction or dissatisfaction". The company should know whether the buyer is satisfied, highly satisfied or dissatisfied. Determining the different levels of satisfaction is not an easy task. The buyer's satisfaction (S) is a function of the closeness between the consumers product expectation (E) and the products perceived performance (P), that is, S= f (E,P). If the product matches expectations , the consumer is satisfied, if it exceeds them the consumer is highly satisfied, if it falls short, the customer is dissatisfied.

If a ETERNO customer finds that the scooter features match perfectly with his expectations, he will be highly satisfied with the product, on the other hand, when it comes to service part, he might not get the best service, as perceived by him and so feels dissatisfied with servicing.

Post Purchase Actions : The customer's satisfaction or dissatisfaction with the product will influence subsequent behaviour. If the consumer is satisfied, then he or she will exhibit

35

a higher probability of purchasing the product on the next occasion. The satisfied consumer will also tend to say good things about the products to others. According to marketers: "our best advertisement is a satisfied customer".

Dissatisfied consumer may abandon or return the product. They may seek information that confirms high value. They may take public action by complaining to the company, going to a lawyer, or complaining to other groups (such as business, private or government agencies). Private actions include making a decision to stop buying the product (exit option) or warning friends (voice option). In all cases, the seller has done a poor job of satisfying the consumer.

Post purchase communications to buyers have been shown to resulting fewer product returns and order cancellations. Computer companies, for example, can send a letter to new owners congratulating them on having selected a fine computer. They can place ads showing satisfied brand owners. They can solicit customer suggestions and list the locations of available services. They can write intelligible instructions booklets. They can send owners a magazine containing articles describing new computer applications. In addition, they can provide good channels for speedy redress of customer grievances. REGENCY MOTORS is doing the same to get the timely customer feedback.

Post Purchase Use and Disposal : Marketers should also monitor how buyers use and dispose of the product. If consumer store the product in a closet, the product is probably not very satisfying, and word of mouth will not be strong. If they sell or trade the product, new-product sales will be depressed. Consumers may also find new uses for the product. It is shown in the figure below:-

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How Customers Use or Dispose of Products

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4. STUDY DESIGN & RESEARCH METHODOLOGY

38

MARKET RESEARCH- THE PROCESS

Step One: Define Marketing Problems and OpportunitiesStep Two: Set Objectives, Budget and TimetablesStep Three: Select Research Types, Methods and TechniquesStep Four: Design Research InstrumentsStep Five: Collect the DataStep Six: Organize and Analyze the DataStep Seven: Present and Use Market Research FindingsMarket research, like other components of marketing such as

advertising, can be quite simple or very complex. You might

39

conduct simple market research such as including a questionnaire in your customer bills to gather demographic information about your customers. On the more complex side, you might engage a professional market research firm to conduct primary research to aid you in developing a marketing strategy to launch a new product.

Regardless of the simplicity or complexity of your marketing research project, you'll benefit by reviewing the following seven steps in the market research process.Step One: Define Marketing Problems and Opportunities

The market research process begins with identifying and defining the problems and opportunities that exist for your business, such as:

• Launching a new product or service. • Low awareness of your company and its products or

services. • Low utilization of your company's products or services. (The

market is familiar with your company, but still is not doing business with you.)

• A poor company image and reputation. • Problems with distribution, your goods and services are not

reaching the buying public in a timely manner.

Step Two: Set Objectives, Budget and Timetables

Objective: With a marketing problem or opportunity defined, the next step is to set objectives for your market research operations. Your objective might be to explore the nature of a problem so you may further define it. Or perhaps it is to determine how many people will buy your product packaged in a certain way and offered at a certain price. Your objective might even be to test possible cause and effect relationships. For example, if you lower your price by 10 percent, what increased sales volume should you expect? What impact will this strategy have on your profit?

40

Budget: How much money are you willing to invest in your market research? How much can you afford? Your market research budget is a portion of your overall marketing budget. A method popular with small business owners to establish a marketing budget is to allocate a small percentage of gross sales for the most recent year. This usually amounts to about two percent for an existing business. However, if you are planning on launching a new product or business, you may want to increase your budget figure, to as much as 10 percent of your expected gross sales. Other methods used by small businesses include analyzing and estimating the competition's budget, and calculating your cost of marketing per sale.

Timetables: Prepare a detailed, realistic time frame to complete all steps of the market research process. If your business operates in cycles, establish target dates that will allow the best accessibility to your market. For example, a holiday greeting card business may want to conduct research before or around the holiday season buying period, when their customers are most likely to be thinking about their purchases. Step Three: Select Research Types, Methods and Techniques

There are two types of research: primary research or original information gathered for a specific purpose and secondary research or information that already exists somewhere. Both types of research have a number of activities and methods of conducting associated with them.

Secondary research is usually faster and less expensive to obtain that primary research. Gathering secondary research may be as simple as making a trip to your local library or business information center or browsing the Internet.Step Four: Design Research Instruments

The most common research instrument is the questionnaire. Keep these tips in mind when designing your market research questionnaire.

• Keep it simple. • Include instructions for answering all questions included on

the survey. 41

• Begin the survey with general questions and move towards more specific questions.

• Keep each question brief. • If the questionnaire is completed by the respondent and not

by an interviewer or survey staff member, remember to design a questionnaire that is graphically pleasing and easy to read.

• Remember to pre-test the questionnaire. Before taking the survey to the printer, ask a few people-such as regular customers, colleagues, friends or employees-to complete the survey. Ask them for feedback on the survey's style, simplicity and their perception of its purpose.

• Mix the form of the questions. Use scales, rankings, open-ended questions and closed-ended questions for different sections of the questionnaire. The "form" or way a question is asked may influence the answer given. Basically, there are two question forms: closed-end questions and open-end questions.

Close-end questions - Respondents choose from possible answers included on the questionnaire. Types of close-end questions include:

• Multiple choice questions which offer respondents the ability to answer "yes" or "no" or choose from a list of several answer choices.

• Scales refer to questions that ask respondents to rank their answers or measure their answer at a particular point on a scale. For example, a respondent may have the choice to rank their feelings towards a particular statement. The scale may range from "Strongly Disagree", "Disagree" and "Indifferent" to "Agree" and "Strongly Agree."

Open-end questions - Respondents answer questions in their own words. Completely unstructured questions allow respondents to answer any way they choose. Types of open-end questions include:

• Word association questions ask respondents to state the first word that comes to mind when a particular word is mentioned.

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• Sentence, story or picture completion questions ask respondents to complete partial sentences, stories or pictures in their own words. For example, a question for commuters might read: "My daily commute between home and office is _____ miles and takes me an average of ______ minutes. I use the following mode of transportation: _______."

Step Five: Collect Data

To help you obtain clear, unbiased and reliable results, collect the data under the direction of experienced researchers. Before beginning the collection of data, it is important to train, educate and supervise your research staff. An untrained staff person conducting primary research will lead to interviewer bias.

Stick to the objectives and rules associated with the methods and techniques you have set in Step Two and Step Three. Try to be as scientific as possible in gathering your information.

Step Six: Organize and Analyze Data

Once your data has been collected, it needs to be "cleaned." Cleaning research data involves editing, coding and the tabulating results. To make this step easier, start with a simply designed research instrument or questionnaire.

Some helpful tips for organizing and analyzing your data are listed below.

• Look for relevant data that focuses on your immediate market needs.

• Rely on subjective information only as support for more general findings of objective research.

• Analyze for consistency; compare the results of different methods of your data collection. For example, are the market demographics provided to you from the local media outlet consistent with your survey results?

• Quantify your results; look for common opinions that may be counted together.

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• Read between the lines. For example, combine U.S. Census Bureau statistics on median income levels for a given location and the number of homeowners vs. renters in the area.

Step Seven: Present and Use Marketing Research Findings

Once marketing information about your target market, competition and environment is collected and analyzed, present it in an organized manner to the decision makers of the business. For example, you may want to report your findings in the market analysis section of your business plan. Also, you may want to familiarize your sales and marketing departments with the data or conduct a company-wide informational training seminar using the information. In summary, the resulting data was created to help guide your business decisions, so it needs to be readily accessible to the decision makers.

5. RESEARCH ANALYSIS44

4 P’s OF MARKETING MIXThe customer satisfaction level of REGENCY MOTORS was

studied under the 4P's of the marketing mix, namely:1. PRODUCT2. PRICE3. PLACE4. PROMOTION

These constitute the heart of marketing decisions form the heart of the marketer. However, these can be 4C's from the angle of consumers. Thus, what - "Product" is for marketer is "Consumer Needs and Wants" for consumers; "Price" is for marketer is "Cost to the Customer": "Promotion" is for marketer is "Communication" for the customer and what "Place" is for marketer is "Convenience" for the customer. Precisely, marketing mix is the master-mix of sub-mixes namely, Product mix, Price mix, Promotion mix and Place mix as a set of good many variables. These elements of marketing decisions over which the firm has control. Hence, marketing mix signifies internal

45

controllable forces. Following is the detailed analysis of each element of marketing mix:

Total automobile value and customer satisfaction are the objectives, policies and approach to quality. The customer satisfaction of the product was studied under :THE PRODUCT MIX

(a) QUALITY :

The brand name of HONDA scooters and motorcycles, which has been tested successfully on Indian roads for almost ten years, speaks itself for its quality.

In nutshell, HONDA’S quality policy states that consumer satisfaction through quality of their products and services is achieved by consistent adherence to producers and systems.

The approach to quality at HONDA is in time with the Japanese practice. "Build it in to the product". At HONDA, workers themselves inspect the quality of their work. Supervisor educate, train workers to continuously improve productivity and quality. In weekly management meetings, the movement of quality indicators is reviewed in detail. There is another monthly exercise done by REGENCY MOTORS: Two best workers monthly are found out and are rewarded. It leads to the lifting of the morale and provides encouragement to the workers which results in providing the better and satisfactory service to the customers.

HONDA emphasis on total quality have meant that today it is in a position where it can guide its vendors and dealers in establishing and consolidating their individual quality systems.

This has enabled HONDA to not only consistently produce a quality product, but also to ensure that customers get the "sales and after sales services". Such system have helped HONDA to offer the widest segment of people, "products are value for money, backed by an excellent sales and after sales service network".(a) FEATURES :

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HMSI has a complete range of scooters and motorcycles from the very economical ETERNO to the super stylish UNICORN.

Other scooters and motorcycles include SHINE, ACTIVA and DIO. Each two wheeler has different models with unique features and attributes to suit ever kind of customer. Enhancing safety on the roads is one of Honda's top priorities. HONDA firmly believe that the realization of a comfortable and an enjoyable mobile society depends on the mutual trust that automobile manufacturers like they, share with the consumers and society.

At Honda, they use a three prong approach, based on preventing accidents from happening in the first place, minimizing injury in the unlikely event of an accident and our Driving Safety Promotion operations.

Honda's safety philosophy emphasizes the development of appropriate technologies for its products, so as to ultimately achieve maximum riding comfort for its customers. Honda was the first manufacturer in Japan to develop and apply the anti-lock brake system. Educating the world, Honda is actively involved with driving education across the world for promoting traffic safety. The different features of two wheelers are based on the concept of a unique product for each segment of people i.e. on the concept of Market Segmentation.

A market consists of buyers, and buyers differ in one or more respects. They may differ in their wants, resources, geographical locations, buying attitudes and buying practices. Any of these variables can be used to segment a market. Segment Marketing:

A market segment consists of a group of customers who share a similar set of wants. Thus, we would distinguish between two wheeler buyers who are primarily seeking low-cost basic transportation and those seeking a luxurious driving experience. We must be careful that not to confuse a segment and sector. A two wheeler company might say that it will target young, middle-income buyers. The problem is that young, middle-income car buyers will differ about what they want in a two wheeler. Some

47

will want a low-cost bike and others will want an expensive. Young, middle-income buyers is a sector not a segment.

But I am feeling very proud and pleasant that HONDA is manufacturing cars and two wheelers for all sectors varying from middle income car buyers to high income car buyers.

The marketer does not create the segments; the marketer's task is to identify the segments and decide which one(s) to target. Segment marketing offers several benefits over mass marketing. The company can create a more fine-tuned product or service offering and price it appropriately for the target segment. The company can more easily select the best distribution and communications channels, and it will also have a clearer picture of its competitors, which are the companies going after the same segment.

However, even a segment is partly a fiction, in that not everyone wants exactly the same thing. Anderson and Narus have urged marketers to present flexible market offerings instead of a standard offering to all members of a segment. A flexible market offering consist of two parts: a naked solution containing the product and service elements that all segment members value, and discretionary options that some segment members value. Each option might carry an additional charge.

There is no single way to segment market. A marketer has to try different segmentation, variables, singly and in combination, hoping to find rightful way to view the market structure. Major bases for segmentation as used by HONDA are: (1) Geographic Segmentation :

Geographic Segmentation calls for driving the market into different geographical units such as nations, states, regions, countries, cities or neighbourhoods. HMSI has also divided India into 5 regions namely: the north, the central, the east, the west, and the south. Each regions is looked after by a regional office situated in a main city of the region.

For the regions with hilly terrain and tough roads, vehicles like UNICORN have been made and promoted. Honda Eterno, Activa, Dio and Shine are meant for almost any plain roads.

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(2) Demographic Segmentation :

Demographic Segmentation consist of driving the market into groups on the basis of demographic variables such as age, sex, family size, family life cycle, income, occupation, education, religion, race and nationality. Demographic Variables are the most popular basis for distinguishing customer groups. One reason is that consumer wants, preferences and usage rates are often highly associated with demographic variables.

HMSI has also produced different two wheelers based on some of these demographic variables. (3) Psychographic Segmentation :

In psychographic segmentation, buyers are divided into different groups on the basis of their social class, life style, and/or personality characteristics. People within the same demographic group can exhibit very different Psychographic Profiles.

HONDA research clearly shows that in Delhi, two wheeler buyers seek Novelty. In Mumbai, it is all about sophistication where as in Chennai, most two wheeler buyers do not want to flaunt their wealth but yet they want comfort.

Ergo, when a customer goes out to purchase, his life style and personality come into play.QUALITY OF SERVICE

"Services are activities, benefits or satisfactions that are offered for sale, services are tangible, variable and perishable. As a result, they normally require more quality control, suppliers creditability and adaptability".

Being the authorized HMSI dealership cum service station, REGENCY MOTORS provides the services under the guidelines of HMSI.

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REGENCY MOTORS SERVICING MODEL :(a) The vehicle which is brought for servicing, is first taken for a

test drive by the works manager.(b) A manual job card is made regarding the service needed by

the vehicle.(c) The vehicle is then parked for washing.(d) The vehicle is then taken in the workshop.(e) The supervisor takes charge of the vehicle and assigns work

to his subordinate mechanics.(f) After the work is done by the mechanic, the final supervisor

checks the engine of the vehicle(pistons, pressure etc) (g) After the vehicle is repaired and serviced, the mechanic

takes a test ride of the vehicle.(h) And finally, the customer is given a test ride to find out

whether there is any more to be repaired, serviced and other flaws.

In the workshop, there is a HONDA Genuine Spare Parts shop. A complete inventory of HONDA Genuine spare parts is in store at Regency Motors.

There is a customer waiting room in the workshop which has a capacity of at least 15 customers and is equipped with cable T.V., daily newspapers and latest issues of magazines.

Outside the customer waiting room, there is a desk of customer relation officer where the customers can come for any types of queries and complaints.

The workshop also consist of a canteen which is equipped with NESTLE STALL, where Hot Tea is served to customers for free of cost.

The Servicing Includes :

(1) Washing,(2) General check up (as told by the customers),

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(3) Filter change,(4) Engine oil change,(5) Fuel injectors cleaning,(6) Engine and Clutch over haul,(7) Engine De-Carbonizing,(8) Light check,(9) Self over haul,(10) Alternator check,(11) Brake over haul,(12) Carburetor over haul,(13) Denting and Painting, etc. THE PRICE MIX

The price is the value in terms of money which is exchanged for a product or service. Price is a major marketing tool and helps in directing the product to a specific consumer segment. Price is the value of the product expressed in terms of money. Price is a powerful in which both the buyers and sellers are keenly interested.

The price of a product i.e. HONDA two wheelers at Regency Motors is according to the price list issued by the HMSI Pvt. Ltd. Form time to time. So, generally all the respondents were satisfied with the price.

The reactions of different classes of society varies considerably regarding price. For instance, the business class and the higher income groups want the delivery immediately and even pay a little more than that. So, they generally prefer dealers with standing stock of two wheelers and there is no other better option than Regency MotorsTHE PROMOTION MIX

Promotion Mix is the communication mix which deals with the personal and interpersonal persuasive communication about the product or service of the manufacturer. Personal communication relates to face meeting between the sales-force of the company

51

and the clients. On the other hand, impersonal communication include advertising, sales promotion and public relations.Promotional Tools used by Regency Motors:(1) Advertising :(a) Banners(b) Showroom Displays(c) Stickers on two wheelers(d) Newspapers(e) Billboards (f) Pamphlets(g) Cable TV

(2) Sales Promotion :(a) Tie pins(b) Honda on road Services(c) Prizes(d) Rebates(e) Free gifts(f) Free service camps (g) Celebrations

(3) Public Relations :(a) Word of mouth (b) Children painting competitions(4) Personal Selling:(a) Sales presentations

Punch Lines used by HONDA in T.V commercial advertisements for promotion.

S.No. Name of the car Punch Line1. ETERNO “Scooter with Geared Surprise”

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2. DIO “Get Noticed”3. ACTIVA “Designed for Everyone”

4. UNICORN “Race Your Spirit”

5. SHINE “Dream Machine”

THE PLACE MIX REGENCY MOTORS is situated on the busy National Highway ,

71- Rehari, B.C Road, Jammu (J&K). Being a National highway, it is a very busy road and attracts a lot of rush and mess of vehicles because every vehicle, going or coming to Jammu has to pass through it.

The level of satisfaction of service from Regency Motors was ascertained from the interview of 200 respondents (customers) with the help of Questionnaires.

I personally interacted with the customers of the Regency Motors which comes in the workshop for the servicing of their vehicles to get the questionnaires filled by them only.

It was found that while considering service at Regency Motors, the factors which influence the decision of the customers are:(1) Continuous feedback,(2) Authentic Spare Parts,(3) Latest Equipment for servicing,(4) Time span (Waiting),(5) Mechanics,(6) Environment at Regency Motors,(7) Quality of servicing, etc

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FINDINGSThe evaluation of the Customer Satisfaction at Regency

Motors was done on the basis of questions asked to the customers through questionnaires. An analysis has been by keep in view of 200 customers of Regency Motors which visit the service station for the servicing of their vehicles.

The customers were given the questionnaires and were asked to fill according to the instructions given in the questionnaire. ANALYSIS:

The graphs and charts are made on the basis of the evaluation of the responses given by the customers in the questionnaires filled by them. The ratings given by the customers is shown in the form of percentages. This is shown below:

(Source: Questionnaire)The above graph indicates the percentage number of ratings

given by the customers regarding the convenience of location of Regency Motors from their respective places. A highest 23.70% of people gave 8 points followed by 22.70% gave 7 points followed by the rest. This shows that a majority of people are happy with

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Convenience of Location

02.22

0.74

4.44

13.33

9.63

22.2223.7

14.07

9.63

0

5

10

15

20

25

1 2 3 4 5 6 7 8 9 10

Ratings

In p

erce

ntag

e

Values

the location of the Regency Motors and thus shows the PLACE MIX of the company is satisfied.

Selection of Vehicles

0 0 0.74 2.22

11.1110.37

25.93

21.48

14.0714.07

0

5

10

15

20

25

30

1 2 3 4 5 6 7 8 9 10

Ratings

In p

erce

nta

ge

Values

(Source: Questionnaire)The graph drawn above reveals that a majority 25.93% gave

7 points followed by 21.48% gave 8 points and the rest lags far behind. This shows that Regency Motors has a variety in the selection of vehicles in terms of colours, options, models etc because maximum number of people are happy which is proved from the graph.

Delivery Waiting T ime

1.480 0.74

3.7

12.5914.81

23.721.48

13.33

8.15

0

5

10

15

20

25

1 2 3 4 5 6 7 8 9 10

Ratings

In p

erce

ntag

e

Values

(Source: Questionnaire)

The above line graph clearly shows that a maximum number (23.7%) of rated 7, at the second place 21.48% as 8, 14.81% as 6 and so on. It is evident that there is a mixed response of people

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about the Delivery Waiting Time of Regency Motors. This is one of the area on which the company has to give some attention.

After Sales Services

02.22

0

5.18

11.8514.81

17.7820

15.5512.59

0

5

10

15

20

25

1 2 3 4 5 6 7 8 9 10

Ratings

In p

erce

ntag

e

Values

(Source: Questionnaire)The above graph is another case of mixed responses by the

customers. Here we can see that the maximum 20% people rated 8, 17.78 rated 7, 15.55 rated 9 and so on. The percentages responses are very close to each other which shows that some people are happy with the after sales services of the company whereas some are not. Here company can improve upon by creating awareness among the masses.

Schemes/Discounts/Gifts

12.5911.8510.37

15.55

22.96

9.63

4.443.7 3.7 5.18

0

5

10

15

20

25

1 2 3 4 5 6 7 8 9 10

Ratings

In p

erce

ntag

e Values

(Source:Questionnaire)

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The graph drawn above shows the dissatisfaction among the customers of HMSI due to lack of schemes/discount/gifts. In the above graph a highest 22.96% customers rated 5, followed by 15.55% customers rated 4 and so on. The customers said that HONDA only launches various schemes/discounts at the end of the year because the customers purchase vehicles on the date as told by the Astrologers, as a majority of people are superstitious in Jammu with respect to the purchase of vehicle.

Dealings

0 0.74 0

5.16

11.8514.07

24.44

19.26

13.3311.11

0

5

10

15

20

25

30

1 2 3 4 5 6 7 8 9 10

Ratings

In p

erce

nta

ge

Values

(Source: Questionnaire)The above graph drawn on the Dealings of Regency Motors

shows that a highest 24.44% people rated 7, followed by 19.26% as 8. It reveals the fact that the customers are happy about the dealings of the company because 11.85% customers rated 5 and 5.16% people rated 5.16% as 4. This factor is increasing the goodwill of Regency Motors which is very hard to earn. It is also creating a sense of loyalty among the customers.

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Sales Person know ledge About Vehicles

0 0.740.743.7

12.5911.11

18.52

22.96

18.52

11.11

0

5

10

15

20

25

1 2 3 4 5 6 7 8 9 10

Ratings

In p

erce

nta

ge

Values

(Source:Questionnaire)The graph drawn above regarding the sales person

knowledge about vehicles shows that a highest of 22.96% of customers rated 8, followed by 18.52% customers rated 7 & 9. This reveals the fact that the customers are pretty much satisfied with the knowledge of the sales person of the Regency Motors. This shows that a new recruit is being trained (regarding prices, different models, features, insurance policies etc) properly before being put into showroom to interact with the customers.

Sales Person Appearance

0 0 0.741.48

7.412.5911.11

31.11

18.5217.04

05

101520253035

1 2 3 4 5 6 7 8 9 10

Ratings

In p

erce

ntag

e

Values

(Source:Questionnaire)The graph made above reveals that a majority of customers

are happy with the appearance of the salesmen of the company because a highest of 31.11% of the customers gave 8 points.

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Salespersons appearance is being calculated in terms of their clothes, grooming, communication skills etc. The people working in the showroom are having a proper uniform whether he is a manager or a sales person, with badges (which includes name and designation).

Honesty of the Sales Person

0 0 0 0

10.378.15

12.59

22.22

28.89

17.78

05

101520253035

1 2 3 4 5 6 7 8 9 10

Ratings

In p

erce

ntag

eValues

(Source:Questionnaire)

The above graph shows that the company is not making any fake claims. The claims may be regarding average, pick up, features, color life, strength, etc of its vehicles. It is evident from the above graph because a highest of 28.89% of the customers gave 9 points when this question was asked followed by 22.22% gave 8 points. This makes HONDA a trusted brand among customers.

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Mileage as told by the Company

0 0.74 0.74

5.93

10.3714.81

28.15

21.48

10.377.4

0

5

10

15

20

25

30

1 2 3 4 5 6 7 8 9 10

Ratings

In p

erce

ntag

e

Values

(Source:Questionnaire)The above clearly depicts that why HONDA is a trusted brand

among the customers. HONDA is a budget friendly two wheeler as explained in the graph before also. The customers are getting the value after purchasing the vehicle by getting a good mileage. In the above graph, we can see that a highest of 28.15% gave 7 points followed by 21.48% gave 8 points.

Following are the words of a pride owner of Honda Eterno :

My shop is 22 km away from my house. I have to travel every day. Earlier, I had to spend a lot of money on petrol. But now, if I fill up petrol once, it lasts for many days. The mileage is above 60 km to a litre. Even more than what the company promised! I never got such mileage before. I used to have back problems earlier due to the long rides. But with Eterno I don't feel the distance at all. Even small potholes are not a problem. This is because it has marvelous suspension. My whole family is very happy with Eterno.

The questions on which the Pie-Charts are made were asked on YES-NO basis from the customers. They are shown below:-

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Were you introduced to someone

in the service department ?

50% 50% yes

no

(Source:Questionnaire)On the question "Were you introduced to someone in the service department when you purchase the two wheeler from Regency Honda", the response was 50-50. This is another area where the company has look on.

Were you personally thanked for your vehicle purchased ?

79%

21%

yes

no

(Source:Questionnaire)The above Pie-Chart shows that 79% of the customers were personally thanked for their vehicle purchase while 21% not, which were interviewed. Actually this is the policy of the company to thank every customer for the purchase. The reason behind 21% of the customer declined was, some of them didn't remember and there were also some drivers who had came for servicing of the vehicles.

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W ere you offered Test Drive ?

53%

47%yes

no

(Source:Questionnaire)The above graph is the analysis of the question "Were you offered test drive before purchasing the vehicle". As we can see that 53% of the customers said 'Yes' while 47% said 'No'. The reason behind 47% of the customers said 'No' is that people are already familiar with the HONDA two wheelers. So they think that there is no need of test drive.

Continuous Feedback about your Satisfaction

32%

68%

Yes

No

(Source:Questionnaire)

Regency Honda is very good at customer relation. The above Pie-Chart shows that 68% of the customers said that they are being continuously asked about their satisfaction. Only a meager 32% said No. The reason behind this is some people have purchased second hand two wheeler and visit the company for the servicing, changed phone numbers; some customers have purchased their vehicles from other dealerships other than Regency Motors.

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(Source:Questionnaire)The above drawn Pie-Chart reveals that "How people know about the dealers of HONDA". Newspaper has got a very heavy percentage with 53.11%, followed by 25.93% by showroom displays and so on. Since Regency Motors is having biggest market share as proved in the previous graphs and Pie-Charts, it means that it gives frequent advertisements in the newspapers.

(Source:Questionnaire)In response to the question that "How would you rate the services of Regency Motors?". The customers were seen satisfied. It is evident from the above Pie-Chart which shows that 42.22% of the customers said 'Good', 28.89% said 'Satisfactory', 22.96% said 'Excellent'.

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How do you about the dealers of

HONDA?

53.11% 25.93%

17.63% 3.33%

Newspapers

Showroom Displays

TV/Banners/Sales executives/By Mouth

Billboards/Phamplet

s/Stickers/Camps

How would you rate the services of Regency Motors ?

5.19%

28.89%

42.22%

22.96%

0.74%

PoorAverageSatisfactoryGoodExcellent

The above Graphs and Pi-charts are made to easily access the various services provided by Regency Motors. The customers were seen pretty much satisfied with the dealership. It also depicts their goodwill and big market share in Jammu & Kashmir.

I have made the Graphs and Pi-Charts very clear and simple that a layman can easily understand. The values are also shown on the designated points in the graphs. The values are calculated in the percentage units. A brief explanation has been given below every Graph and Pie-Charts to make them clearer. The reasons behind every major percentage value have been given to make them more understandable for the readers.

SWOT ANALYSISThe overall evaluation of a company's strengths, weaknesses,

opportunities and threats is called SWOT analysis.External Environment Analysis (Opportunities and Threats Analysis)

In general, a business unit has to monitor key macro environment forces (demographic, economic, technological, political-legal and social-cultural) and significant micro environment actors (customers, competitors, distributors, suppliers) that affect its ability to earn profits. The business unit should set up a marketing intelligence system to track trends and important developments. For each trend or development, management needs to identify the associated opportunities and threats.

A major purpose of environment scanning is to discern new marketing opportunities. A marketing opportunity is an area of buyer need or potential interest in which a company can perform

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profitably. Opportunities can take many forms and marketers have to be good at spotting them.

• A company may make a buying process more convenient or efficient.

• A company can need the need for more information and advice.

• A company can customize a product or service that was formerly offered only in a standard form.

• A company can introduce a new capability.

• A company may be able to deliver a product or a service faster.

• A company may be able to offer a product at much lower price.

The company now applies Market Opportunities Analysis (MOA) to determine the attractiveness and success probability of any opportunity. Five questions are asked:1. Can the benefits involved in the opportunity be articulated to

a defined target market(s)?2. Can the target market(s) be located and reached with cost

effective media and trade channels?3. Does the company possess or have access to the critical

capabilities and resources needed to deliver the customer benefits?

4. Can the company deliver the benefits better than any actual or potential competitors?

5. Will the financial rate of return meet or exceed the company's required threshold for investment?

Some developments in the external environment represent threats. An environmental threat is a challenge posed by an unfavorable trend or development that would lead, in the absence of defensive marketing action, to deterioration in sales or profit. Threats should be classified according to seriousness and profitability of occurrence.

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Once the management has identified the major threats an opportunities facing a specific business unit; it can characterize the business's overall attractiveness. Four outcomes are possible:

• An ideal business is high in major opportunities and low in major threats.

• A speculative business is high in both major opportunities and threats.

• A mature business is low in major opportunities and low in threats.

• A troubled business is low in opportunities and high in threats.

Internal Environment Analysis (Strengths/ Weakness Analysis)

It is one thing to discern attractive opportunities and another to be able to take advantage of these opportunities. Each business needs to evaluate its internal strengths and weaknesses.

Sometimes a business does poorly not because its departments lack the required strengths, but because they do not work together as a team. It is therefore critical to access interdepartmental working relationships as part of the internal audit.

Every company must manage some basic processes, such as new-product-development, sales generation, and other fulfillment. Each process creates value and requires interdepartmental teamwork. Although each department may possess specific core competencies, the challenge is to develop superior competitive capability in managing the company's key processes. Stalk calls this capabilities based competition.

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Checklist for Performing Strengths/Weakness AnalysisInternal environment Analysis of Regency Motors

FeaturesPERFORMANCE

MAJOR STRENGTH

MINOR STRENGTH NEUTRAL MINOR

WEAKNESSMAJOR

WEAKNESS

Company’s Reputation

Service Quality

Pricing Effectiveness Geographical Coverage Promotional Effectiveness Sales Force Effectiveness Financial Stability Locational Effectiveness Skilled Workforce Employee Satisfaction Modernized Service Station Range of Accessories Distribution Effectiveness On-Time Delivery Delivery at Doorstep Customer Care Customer Feedback Insurance Facility Centralize Authority Coordination Of Workforce Innovation

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Opportunities :1. Capturing the market of economically well-off having

tendency to buy more than one vehicle.2. Expanding the need to untapped market. It has its sister

concerns at Udhampur and Srinagar in J&K state. Regency Motors also organizes market campaigns in suburban areas of Jammu.

3. Catering to servicing need of distant places by opening nodal centers.

4. Special provision for government employees.5. Attracting the dis-satisfied customers of other dealers and

service stations by organizing free servicing camps.6. Changing a customer of a competitive brand into a HONDA

customer.7. Conversions of consumer preferences form a second hand

two wheeler to a two wheeler.

Threats: 1. Competitive models of other brands are available in the

market.2. Excise duty being increased on steel used in the two

wheelers which led to price hike. 3. Resentment among persons who regularly refer clients to

Regency Motors for want of commission.4. New two wheelers being launched in the market.5. Craze of Jammuites for expensive two wheelers and big cars.6. Attractive discounts and facilities offered by various dealers

outside J&K.7. Black marketing practices.8. Some dissatisfied customers of the company.

9. Relatively higher cost of petrol.

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6. SUGGESTIONS

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According to experts that next ten years will be a period of consolidation. Big will get bigger and small will get swallowed up. The U.S., Japan and Canada accounts for about 53% of the world's total two wheeler production. So HMSI has to make it a big strength to fight with the global giant.

According to U.S. automatic automobile industry volumes may grow up by just 2% globally. But in India, in the last 5 years, the automobile industry has already seen a growth of 40%. So till today a lot of gaps in India two wheeler market are still existing and HMSI should try to fill these gaps as early as possible.

Some suggestions that HMSI should take into consideration

1. Betterment of Services: HMSI should concentrate on its strength very intelligently so as to its strength a power.

2. Adjusting according to the changing buyer behaviour: Now, in market we can also see that women are also playing a big role in purchase of a two wheeler. So now, HONDA should also concentrate on women segment and should target them more through effective ad campaigning as they are doing so in T.V. commercials.

3. Technological changes: As the two wheeler market is getting global at a rapid race so HMSI should keep the technology up to the global standards so as to remain secure in future.

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Suggestions for Regency Motors

1. More Decentralization of authority: Sales persons should be given authority to give suitable discounts keeping in view the prices of the competitors. Also more authority should be given to General Manager to take decisions because it will reduce the time gap of decision making in the process and also gives encouragement to the employees.

2. Effective Sales force: Sales force should be made more effective in the following ways:

(a) Providing the sales persons with the information magazines like Auto India and other magazines on auto market to keep their information up to date about the two wheeler market ahead of others.

(b) Communication skills of sales persons should be enhanced.(c) Regular training about product features should be given to

the sales persons so as to keep the sales person up to date with new product features.

(d) Sales should be equipped with modern equipment like cell phones so as to keep them always in contact.

3. Increase the satisfaction level of employees by: (a) Regularly motivating them.(b) Good communication setup should be made between the

employees and top management.(c) Decentralization of authority should be done.4. New feature like night working should be introduced :

i.e the two wheeler should be repaired and serviced at night and be given back to the customers in the morning.

5. Sunday opening of service station to be done to cater those customers who are free only on Sundays like shopkeepers and employees.

6. Customer delight should be made the main focus of Regency Motors, the various activities that forms the customer delight are :

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(a) Special finance schemes for middle income groups are to be provided who otherwise prefer a second hand vehicle due to financial constraints.

(b) Gifts and prizes(scratch cards etc) on purchase of every vehicle.

(c) Special greeting or gifts to the customers on first anniversaries of their two wheelers.

IMPEDANCES It is not possible to conduct a flawless study. Every research

is bound to be suffering from certain limitations which could influence the results of the study. The limitations from my study are:1. The responses provided by the respondents might have

some false information in them; this bearing on the part of respondents could affect the result of the study.

2. The research was conducted in the service station of Regency Motors, so a lot of respondents were missed who didn't visited the service station during that period.

3. Some people send their drivers for the servicing of their two wheeler so it might be possible that they provided the wrong information.

4. Time constraints forced the sample size to that of only 200.5. Due to unawareness and illiteracy of the people of Jammu

(especially drivers and some business men), there are some flaws in the study.

6. Some people didn't returned the questionnaires and took the questionnaires with them.

7. There are also some communication gaps because people which were interviewed belonged to all types of communities (Kashmiris, Dogri etc)

INFERENCESFollowing inferences are drawn about the various operational

activities linked with Regency Motors and the market in which it operates:-

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1. Regency Motors provides an excellent computerized service for two wheelers to clients at its well equipped service station, where various activities like engine de-carbonization, engine scanning, wheel balancing, and pollution checks are done using sophisticated instruments.

2. Home delivery includes delivering the car to the owner at his doorstep by drivers providing customer delight.

3. Waiting period for the vehicles is comparatively low as compared to other brands in Jammu city.

4. The company has been generally able to deliver what is promised within the stipulated time frame. Also, the popularity of the Directors of the company has created a goodwill for the company and due to that factor Regency Motors family has received bookings from other territories as well.

5. The workforce of the service station and the other staff though technically efficient, was found to be possessing a low motivational level attributed majority due to the absence of promotional opportunities, overtime allowances, medical facilities etc. So, when the workforce is not fully satisfied with the company, it provides ample scope for the un-satisfaction to the customers.

7. Though various provisions have been made to ensure sound customer care such as fully air-conditioned customer waiting room, canteen facilities facility, a customer care officer, yet these efforts suffer from drawbacks such as non-functioning of AC and television sets.

8. A customer feed back form along with continuous after sales check by sales executives forms the part of customers feed back system. But majority of customers complained of no visit sales executives after sales. Many customers complains of not being able to understand the contents of the form, thus an effective feedback system is missing.

9. There is a centralized decision making system where powers are vested with in the Managing Director of the company. In the absence of the decision maker, at times delays actions and hung issues have led to unproductive results, besides causing resentment among the parties involved.

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10. Some customers complained about receiving the partial attention, over charging and wastage of time in waiting for their turn.

11. However, in spite of these shortcomings, some customers are very loyal to Regency Motors and prefer the servicing of their two wheelers from Regency Motors rather from any other authorized or local service station. They hold services of Regency Motors as of top quality. So, it is for Regency Motors to maintain its standards and further up grade them to hold on to the old customers and win new loyalties.

12. On an average, Regency Motors sells 10 two wheelers daily which itself speaks for the goodwill and popularity of the company.

13. The customer satisfaction level of Regency Motors was in general found in between the satisfied and highly satisfied customers. Satisfaction level was high for the product and price.

7. ENCLOSURES

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BIBLIOGRAPHY

• Market Management by "Philip Kotler" and "Kevin Lane Keller"-12th edition, Pearson Education.

• Essentials of Marketing Research by "S.A.Chunawalia", Himalaya Publishing House.

• Marketing Management by "C.N.Sontakki".• Auto India• Shopper, Buyer and Consumer Behaviour by "Jay D.

Lindquist" and "M.Joseph Sirgy"-Second edition, biztantra.• Consumer Behaviour by "Leon G.Schiffman" and "Leslie

Lazar Kanuk"- Eighth edition, Pearson Education.• www.honda.com• www.google.com• www.honda2wheelersindia.com• www.autoindia.com

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QUESTIONNAIRE FOR CUSTOMERDear Customer,

We are thankful to you for spending little time for us while filling this feedback form. Your valuable inputs will enable us for continuous improvements of our service quality. Thank you.

A. Name of the Customer________________________________

Occupation_________________________________________

Address____________________________________________

Phone No/Mobile No_________________________________

B. Model of the two wheeler that you have______________________

Regn. No.________________________________________

C. Name of the Dealer from whom you purchased the two wheeler___________________________________________

D. Using a scale of 1 to 10, where 1 is unacceptable, 5 is average and 10 is outstanding, please rate when you purchased your vehicle.

Convenience of Location

Selection of Vehicles (Colors, options etc.)

Delivery waiting time

After Sale Services

Schemes/Discounts/Gifts

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Sales person knowledge about vehicles

Sales person appearance (Clothes, grooming etc.)

Honesty of Sales persons

Mileage as told by the company

E. Upon delivery of your new vehicle, which of the activity listed below took place :—

Were you introduced to someone in the service department ? Yes/No

Were you personally thanked for your vehicle purchase ? Yes/No

Were you offered test drive ? Yes/No

Availability of Manual, Tool kit, Jack, Spare wheel, First Aid Kit etc. Yes/No

F How did you know about the dealer ?

GWhere do you often go for servicing your vehicles ?

01. Honda Authorized service station

02. Local Service Station

03. Any other (Please Specify)____________________________

H How would you rate the services of Regency Motors?

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Billboards Phamplets Television Newspapers

Banners Showroom Displays Camps

POOR AVERAGE SATISFACTORY GOOD EXCELLENT

I Do you purchase Genuine spare parts Yes/No

J Why you prefer Honda instead of other two wheelers? _________________________________________________________

K Any problems or dissatisfactions faced after the purchase Yes/No

If “YES”, Please specify_____________________________

L Are you satisfied with the servicing ? Yes/No

Any suggestions for improvements in the servicing ________________________ _______________________________________________________________

M Based on the overall experience with your dealer, would you recommend

this to your relatives or friends ? Yes/No

Dated_______________ Signature

“WE THANK YOU FOR THE TIME THAT YOU HAVE INVESTED IN OUR SERVICE TRACKER, YOUR VALUABLE OPINION AND CONTINUES SUPPORT IS OUR INSPIRATION.”

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