Presented by:- Neelutpal (222012)

Ashwath (222017)

Mohit (222010)

Piyush (222015)

Presented to:-

Prof Kashmira Chaddha

• Defining the Business :- Honda Motor Co., Ltd

is a Japanese public multinational corporation primarily known as a manufacturer of automobiles(4 Wheeler/ 2 Wheelers)and power equipment.

Basic Principles

• Respect for the individual.

• The Three Joys (buying, selling and creating).

We at Honda believe that each person working in or coming in touch with our

Company, directly or through our products, should share a sense of joy through that

experience. This feeling is expressed in what we call "The Three Joys"

Our Goal is to provide joy through our Business:

• The Joy of Buying: For those who buy our Products

• The Joy of Selling: Engage in selling our products and services

• The Joy of Creating: Involved in business of creating our Products

• Defining the Business :- Honda Motor Co., Ltd

is a Japanese public multinational corporation primarily known as a manufacturer of automobiles(4 Wheeler/ 2 Wheelers)and power equipment.

• Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction.

→ Business Definition

Management Policies

• Proceed always with ambition and youthfulness.

• Respect sound theory, develop fresh ideas, and make the most effective use of time.

• Strive constantly for a harmonious flow of work.

• Be ever mindful of the value of research and endeavor.

1. Honda is the 3rd largest automobile manufacturer in the world selling cars in over a 100 countries 2. Excellent branding, advertising . 3. Honda has over 180,000 employees globally 4. Production System that is refined over the years along with High and powerful research and development R&D 5.High brand equity and brand loyalty amongst customers 6. Strong presence in motorsports like F1

1. Developing hybrid cars and fuel efficient cars for

the future

2.Tapping emerging markets across the world and

building a global brand

3.Fast growing automobile market

1. Cost structure of Honda is high as compare

to other automobile manufacturers

2.Caters to only the upper middle segment

which limits the customer base

3.Honda has to recall a few of their models for

corrective measures which caused a lot of hue

and cry

1.Too many competitors in automotive industry. 2.Lower cost competitors 3.Expanding market size of compact cars

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Internal Origin External Origin

• Defining the Business :- Maruti Suzuki India Limited

commonly referred to as Maruti and formerly known as Maruti Udyog Limited, is an automobile manufacturer in India.

“The Leader in the Indian Automobile Industry, creating customer Delight and

Shareholder’s wealth; A pride of India”

• Customer Obsession

• Fast , Flexible and First Mover

• Innovation and Creativity

• Networking and Partnership

1. Maruti is the largest passenger car company in India, accounting for around 45% market share 2. Over 6,000 people are employed with Maruti 3. Good advertising, product portfolio, self-competing brands 4. Largest distribution network of dealers and after sales service centers 5. Strong brand value and strong presence in the second hand car market 6. Having different revenue streams like Maruti finance, Maruti Insurance and Maruti driving schools 7. Over 700,000 units sold in India annually including 50,000 exports

1. Developing hybrid cars and fuel efficient

cars for the future

2.Tapping emerging markets across the

world and building a global brand

3.Fast growing automobile market and

increased purchasing power

1.Inability to penetrate into the international market 2.Employee management, strikes, worker wage problems

1. Government policies for the automobile sector across the world 2. Ever increasing fuel prices 3. Intense competition from global automobile brands and cheaper brands 4. Substitute modes of public transport like buses, metro trains etc

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Internal Origin External Origin

Market share

Indian auto market size to triple to 9.3 mn units by 2020: JD Power

• Car sales in India may be on a downside at present but global marketing information services company JD Power believes that the total automobile market size will triple to 9.3 million units by 2020

• Driven by enhanced demand as the number of people with disposable income increases, the sector will grow at a compounded annual growth rate of 16% during the period, the market research firm said.

Market Definition

Dzire/Amaze Ertiga/Mobilio

Primary Market- Compact Sedans Primary Market- MUV

Secondary Market- Sedans Secondary Market- SUV

Brand Equity Brand Equity: –The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent.

Conclusion: Based on consumer survey the price range meets the consumer expectations for all the brands (taking into consideration price as the most important variable for value in consumer’s mind)

Brand Circles: Maruti

Dzire Ertiga

Inner Core Reliable , Love

Inner Core Family values, Reliable

Outer Core Mileage, Serviceability

Outer Core Mileage, Serviceability, Space

Extension areas Traffic Management Schools Driving School Commercial vehicles

Extension areas Commercial vehicles

No Go Areas Alcohol Industry

No Go Areas Alcohol Industry

Customers Perception

Brand Circles: Honda

Amaze Mobilio

Inner Core Style, Family values

Inner Core Safety, Style

Outer Core Interiors, Engineering

Outer Core Space, Engineering

Extension areas Driving School Small Commercial vehicles Robots

Extension areas Commercial vehicles

No Go Areas Alcohol Industry

No Go Areas Alcohol Industry

Customers Perception

Competitive set

Maruti Swift Dezire Vs Honda Amaze

• The Honda Amaze is a four-door subcompact sedan produced by Honda. The Amaze is the sedan version of the Brio. Honda launched the Amaze in India on April 11, 2013 which has been developed at Honda R&D Asia Pacific Co., Ltd. located in Bangkok, Thailand. The Amaze is available in petrol and diesel engine

• Maruti Suzuki launched the Maruti Dzire in India on 26 March 2008. It is a sedan version of the Swift hatchback. It replaced the long standing Maruti Esteem and shared its engines with the hatchback. Swift DZire is a result of an indigenous project started in 2005 to design a three-box notchback version of the Swift hatchback

Leader/Follower • Dzire is considered market leader in compact sedan segment as

compared to Honda Amaze as per the data till Feb 2014

• The battle between the Maruti Suzuki Swift DZire and Honda Amaze is a very close one. Both cars have their strengths but the Amaze manages to edge ahead of the DZire on several counts. The Amaze is not only faster (diesel), it is more economical too.

• Factor in the easier to drive characteristics, better rear seat experience, larger boot and better appearance and the Honda Amaze emerges on top.

• The icing on the cake is the Honda badge, which holds higher value than Maruti Suzuki’s, making the Amaze the clear winner and the undisputed

champion in the compact sedan space

Competitive set Maruti Ertiga VS Honda Mobilio

• Suzuki Ertiga, basically meaning Swift with three rows in Indonesian, is a seven-seat compact MPV developed by the Japanese manufacturer Suzuki and its Indian subsidiary Maruti Suzuki

• It was launched on 12 April 2012 in India . As a Marketing strategy Maruti Suzuki proclaims it to be the first LUV (Life Utility Vehicle). It competes with Mahindra Xylo Tata Sumo Grande, Toyota Avanza and Nissan Grand Livina and now with Honda Mobilo

• The new Mobilio has been the most anticipated MPV from the Honda.

• The car came on the Brio platform and was released into Indian market July this year. This is a seven seater and has many features bundled in to it.

• But it has to compete with its market rivals from India’s most trusted brand Maruti Suzuki, Ertiga and all famous Toyota Innova which rules the MPV market.

Ertiga Vs Mobilo

Leader/Follower

• Ertiga is considered market leader in mid-sized MUV segment as compared to Honda Mobilo

Verdict - After analysing these two MPVs on paper, one thing is certain; the Honda Mobilio with its splendid packaging, striking exterior design and three rows of seats, it definitely could take the fight to the competition. Though currently Ertiga is leading.

Brand Positioning of

Maruti Dezire/ Honda Amaze

Maruti Dzire

Dzire Ad: http://www.youtube.com/watch?v=8HUVGqmLlIQ

Points of Difference-

• Class leading interiors (Print media too emphasizes the interiors)

• Largest selling sedan

• ‘The Heart Car’ Spreading the message of love

• The Maruti Logo with the message ‘The way of life’

Customer Profiling • 25+ year male/Female

• Tier 1/Tier 2 Cities

• Newly married/ Marriageable age

• Nuclear family

• Middle Income group

• Caring

• Stylish

• Wants to enjoy life and have fun

• Usage: Most Used

• Brand loyal

• Positive sentiments towards the product

Honda Amaze Ad: http://www.youtube.com/watch?v=3z9rYGKXIGY Points of Difference-

• Best mileage: 25.8 km/l

• Showing comfortable 5 seating capacity in the ads

Customer Profiling

• 30+ year male/female

• Tier 1/ Tier 2 Cities

• Nuclear family

• Middle Income group

• Ideal family person

• Respect for elders

• Enjoys long drives and fun in life

• Usage: Most Used

• Brand loyal

• Positive sentiments towards the product

• Both are targeting the married couples • Both Dzire and Honda ads show a blue color. Blue is the color of the sky

and sea. It is often associated with depth and stability. It symbolizes trust, loyalty, wisdom, confidence, intelligence, faith, truth, and heaven. Blue is considered beneficial to the mind and body.

Points of Parity between Amaze and Dzire

Brand Positioning of

Maruti Ertiga/Honda Mobilio

Maruti Ertiga

Ad: http://www.youtube.com/watch?v=VktCjjAzixU

Points of Difference-

• Easy Rear seat adjustment (Child’s Play)

• Rear AC adjustment

• Introduced the segment LUV

• Focus on family

• Available in CNG

Customer Profiling

• 28+ Male/Female

• Tier 1/ Tier 2 Cities

• Married

• Joint Family

• High Income group

• Typical family person

• Loves sports (Cricket)

• Convincing Attitude

• Usage: Most Used

• Brand loyal

• Positive sentiments towards the product

Honda Mobilio Mobilio Ad: http://www.youtube.com/watch?v=dhuDPluUi1o Points of Difference-

• Lots of Space – 7 seater for adults/ bigger leg space

• Extremely safe

• Stylish- No compromise in looks or average

• Comfortable Seats

• Amazing mileage

Customer Profiling • 25+ male/female

• Tier 1/ Tier 2 Cities

• Married/about to get married

• Joint Family

• High Income group

• Confident

• Flirty

• Stylish

• Wants comfort

• Usage: Most Used

• Brand loyal

• Positive sentiments towards the product

Points of Parity between Ertiga and Mobilio

• Both are LUVs, though Honda doesn’t specifically mention the word in the ads

• Both are 7 seated car

• Both targeted towards the family segment

Improvements needed in Positioning and Communication

Common Improvements points for both Amaze and Mobilio

• Very strong social media presence for Maruti which helps in relationship building but not for Honda, so need to look into it

Amaze

• Going by current trends Amaze is already the market leader, they need to pitch this in their future communications

• Amaze can cater to the Young Adults as well, they need to expand their reach to this age group

Mobilio

• Honda Mobilio is ‘still’ in the ad whereas most car ads show them ‘being driven’. The mental imagery is missing in audience’s mind.

• Mobilio needs to connect more with the Indian audience on the family front

• They should also explain about how it is safe as being claimed in their ads

Common Improvements points for both Dzire and Ertiga

• Too much emphasis on one single element in human life ‘love’ may become boring in future for the audience.

• Maruti needs to improve in mileage & space & Engine performance (as per consumer survey)

Dzire

• The design has become old, needs some

freshness

• Sponsor Sporting events and try to position

as a quality buy for the young adults as well

Ertiga

• Needs to be ‘top of the mind’ brand as a family car

• Develop communications for expanding into Tier 3 and semi-rural areas

References • http://www.livemint.com/Industry/7AsDcOlKeFItehuxwFQZmK/Japanese-car-

manufacturers-tweak-strategies-to-suit-India.html

• http://www.maruticarsindia.in/2013/05/maruti-suzuki-works-out-effective-strategies-to-boost-sales.html

• http://www.ijssbt.org/volume1.2/pdf/7%20Marketing%20strategies%20of%20india%20automobile%20companies.pdf

• http://www.thehindu.com/business/Industry/our-counterattack-has-started-president-and-ceo-honda-cars-india/article4889129.ece

• http://www.marketing91.com/marketing-mix-honda-motors/

• http://www.strategicmanagementinsight.com/swot-analyses/honda-swot-analysis.html

• http://articles.economictimes.indiatimes.com/2014-03-05/news/47895333_1_mayank-pareek-maruti-suzuki-jnaneswar-sen

• http://articles.economictimes.indiatimes.com/2013-04-14/news/38529350_1_game-changer-petrol-variant-india

• http://www.juliantrueflynn.com/seo/hondas-marketing-strategy

Thank You