project on honda two wheelers
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TRANSCRIPT
CONTENTS
Chapter 1 1-4
Introduction
Objectives
Limitations of the study
Methodology
Chapter II
Customer Satisfaction 5-14
Chapter III
Profile of Honda 15-27
Chapter IV 28-39
Analysis of Study
Chapter V
Summary amp Suggestions 40-41
Questionnaire 42-45
BIBLIOGRAPHY 46
1
CHAPTER - I
INTRODUCTION
The two wheeler industry has been expanding rapidly Gone are the days when processing a two
wheeler was seen as a luxury Now a day it is viewed as a mere necessity Prior sale of two
wheelers was mainly confined to urban areas but lately in rural areas the bicycles are being
replaced by power driven two wheelers such as scooters and motorcycles Not only this the
industry has also customers ranging from all demographic segments It has been common that
even school going children are driving two wheelers The women customers are also increasing
due to increase in women literacy and employment
If getting a new customer is difficult then retaining a current customer is more difficult one and
not only that it is estimated that the cost of attracting a new customer is five times retaining the
current customer It requires a great deal of effort to induce satisfied customer to switch away
from their current preference Thus customer attitude is been given top priority in todayrsquos
competitive world
NEED FOR THE STUDY
After globalizations number of two wheeler markets have entered Indian Market New
companies have been set up with foreign specially Japanese Collaboration by already
established companies Honda motors Japan has set up subsidiary company at Gurgaon India to
offer state of the art Honda two wheelers to Indian makes Honda motors with its wide product
range has achieved a respectful market shone with strong dealer network and excellent after
sales services
Even though there is waiting period for some products some are available across the shelf
dealerships are upon not only at metros but also at urban and semi urban areas This is to
2
provide prompt after sales services it has opened class of art show rooms and work shops at all
the places
There is a need to study to efforts put in by the Company Dealers and Service network to study
the extent to which customers are satisfied with the product service and allied services etc
Hence it is proposed to study the Customer Satisfaction levels of Honda Customers with respect
to the product performance after sales service and other allied services like finance facility
availability of spares and accessories etc
OBJECTIVES OF THE STUDY
To study the profile of Two wheeler Industry in India
To study the marketing activities of Honda Motors
To study the Dealership profile of Vishnu Honda
To study the customer handling practices prior to sale during sale and after sale and
assesses the satisfaction levels of customers
To offer suggestion for improving the customer satisfaction
LIMITATIONS OF THE STUDY
- The study is limited to Honda Motors Customers who have purchased or come for service
to Ms Sri Vishnu Honda at Visakhapatnam
- Since a convenient sampling method is adopted the sample may not be representing all
types of customers
- As the study is conducted for a limited period and hence it may not be exhaustive
3
METHODOLOGY
The study is conducted basing on Primary and Secondary Data
Primary data is collected by administering a structured questionnaire to customers who visit the
dealer for purchase and service Data is also collected through personal discussions with the
dealer sales and service staff and personal observation made during sale and service
Secondary data is obtained from company records web site published articles etc
SAMPLING
Convenient Sampling method is adopted for selecting the respondents Care is taken to cover
customers of all types of products and age groups etc
4
CHAPTER II
CUSTOMER SATISFACTION
INTRODUCTION
Satisfaction is a personrsquos feelings of pleasure (or) is appointment resulting from comparing a
products perceived performance in relation to his (or) her expectation
Satisfaction is a function of perceived performance and expectations If the performance falls
short of expectation 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
Customer satisfaction is both a goal and a marketing tool Companies that achieve high
customer satisfaction ratings make sure that their target market knows it
Actual performance by the firm
Customer Satisfaction = ---------------------------------
Customer Expectations
5
1 CUSTOMER amp HIS IMPORTANCE -
The essence of the marketing concept is that organizations must adopt customer oriented features
and focus their attention of building programs offering and strategies that satisfy customer needs
and wants Many organizations maintain their focus on operations or product or sales efforts
and thereby get dislocated by mistaking the means for the end Successful marketing involves
companywide transformations in attitude beliefs and perceptions of the people in how they
view the customer Deep commitment to the customer is what distinguishes successful
marketers from Laggards
The excellent companies really close to their customers other companies top about it excellent
companies really close to their customers other companies to about it excellent companies do
itrsquo The companies which show extra ordinary concern for the customer include American
express Mc donalds Citibank IBM who go to the smallest dealers also ldquoNever forget the
customerrsquos attitude is the hull mark of their service strategy
Hence Customers are -
1 The most important people in any business
2 They are not dependent of a business But business is dependent on them
3 They are not an interruption to own work they are the purpose of it
4 They are doing us favor when they come in we are not doing them favor by serving
them
5 They are part of our business they are not outsiders
6 They are not just statistic The customers are human beings with flesh and blood having
feelings and emotions
7 People come to us with their needs and wants It is our job to fulfill them
8 They are the lifeblood of every business without whom the door of the business would
have been closed
9 Non customer functions in particular must be made customer oriented Customer needs
and requirements should be tracked on regular basis
6
II CUSTOMER SATISFACTION
Whether the buyer is satisfied after purchase depends upon the offer performance in relation to
the buyerrsquos expectations Customer satisfaction can be defined as -
Satisfaction is the level of a personrsquos felt state resulting from comparing a productrsquos perceived
performance in relation to the personrsquos expectationrsquos satisfaction level is a function of the
different between perceived performance and expectations some of the successful business firms
are aiming for total Customer Satisfaction which increase customer loyalty towards the product
or service offered by the firm
III IMPORTANCE OF CUSTOMER SATISFACTION
MISSION AND PURPOSE OF BUSINESS
The need to satisfy customer for achieving success in any commercial enterprise is so obvious
one wonder if there is any need to establish the importance of customer satisfaction However
one often finds that what should be obvious everyone also needs to be explained and establish
The income of commercial enterprise is derived from the payment received for the products and
services supplied to its external customers If there are no customers there is no income there
is no business In other words customers are the sole reason for the existence of commercial
establishments as the function is extremely important for the success of the organization the
senior management as well as the leaders of other departments or Divisions should also realize
the importance of customers to the organization and for its growth It is therefore no surprise
that Peter Drucket the renowned management guru said ldquo to satisfy the customer is the mission
and purpose of every business
7
IV CUSTOMER SATISFACTION PROCESS
Companies seeking to win in todayrsquos market must track their customerrsquos expectations perceived
company performance and customer satisfaction not only for them but for their competitions as
well
Brand loyalty and Customers satisfaction on the other hand are almost synonymous and their
impact on market share is statistically varifiable The relationship between market share
profitability as well as profitability and share holder value creation have been the subject of
considerable research over the years and the linkages have been proven many times
Customer satisfaction and Business Results
Licensing to Brands
Voice of the customer
Service Quality
Service Quality Customer Customer
Satisfaction Retention
Product Quality
Competitive
Innovation Growth Rate Market Share
Shareholder Profitability
Value Creation
8
It has been found that some customers are by native tendency more likely to move while others
are not Therefore even for some level of satisfaction or dissatisfaction some customer will
remain with the brand they are loyal to while others will switch Simply because they are more
prone to taking risks and more easily susceptible to the blandishments of competitors and
inherently more fickle This can be represented in four way matrix as given below
High 1 Safe Customer Habitual Switches
Satisfaction with 3 The Patient ones Highrise
Production
Low
Customer Classification by Satisfaction and Mobility
1 The Safe Customers are those who are satisfied and not likely to move
2 The habitual switches are happy and still likely to switch
3 The patient ones will stay on regardless but should not be taken for granted Their
satisfaction can be improved profitably as they are inherently less likely to switch
Todayrsquos customers are global and have high degree of need for congrition recognition approval
and respect So many companies believe that customer satisfaction can make the company more
profitable to some extent as
It as a more process aimed at enhancing customer share
It builds goodwill in the market which in turn generates additional traffic to the outlet
It is a real experience and a rich insight is to customerrsquos min to hit the bullrsquos eye with
carefully designed marketing strategies
A highly effective technique is to keep of buying habits intentions self image spending
patterns customer develops a sense of belonging in then and a soft corner for the
company itself
9
Higher customer retention index customer lifetime value loyalty and satisfaction level
increase transactions with the same customers again and again
A highly effective system of communication helps in developing positive attitude in
customer mind about the company its offerings
WHAT MARKETING SHOULD DO
Companies should establish a separate relationship market to prepare implement and
monitor their relationship marketing program
Company should not rely totally on technical people but employ relationship managers
who well equipped with marketing Communication and interpersonal skills
An integrated marketing system is a pre-requisite for building relationship with
customers
Companies should continuously search for value building approaches through a system of
quality management review process etc because only by exceeding customer
expectations marketers can build a value laden relationship with customers
As said before to satisfy a customer and to retain customer relationship marketing is
important
Methods of Tracking and Measuring Customer Satisfaction
The various methods generally adopted to track customer satisfaction are
a) Complaint amp Suggestion system
b) Customer satisfaction survey
c) Ghost Shopping
d) Lost Customer analysis
a) Complaint amp Suggestion system
A Customerrsquo centered organization would make it easy for its Customers to deliver suggestion
and complaints Some customer centered companies ndash P amp G General Electric Whirlpool
established ldquoCustomer hot linesrdquo with toll free 800 telephone numbers to maximize the ease with
10
which customers can enquire make suggestion or complaints Their information flows provides
these companies with many good ideas and enable them to act more rapidly to resolve problems
b) Customer satisfaction surveys
A company must not conclude that it can get a full picture of customer satisfaction and
dissatisfaction by simply relaying on a complaint and suggestion system Studies show that
customer are dissatisfied with one out of every four purchases and less than 5 of dissatisfied
customers will complaint customer may feel that their complaints are minor and they will be
made to feel stupid or that no remedy will be offered Most customers will by less or switch the
supplier than complaint The result is that the company has needlessly lost customers
Therefore companies canrsquot use complaint level as a measure of customer satisfaction
Responsive companies obtain a direct measure of customer satisfaction by conducting periodic
surveys They send questionnaire or make telephone calls to random sample of their recent
customers to find out how they feel about various aspects of the companyrsquos performance
Customer satisfaction can be measure in a number of ways It can be measured directly by
asking ldquoindicate how satisfied you are with servicerdquo on the following scale highly dissatisfied
indifferent satisfied highly satisfied (Directly reported satisfaction) Respondents can be asked
as well as to rate how much they expected of a certain attribute and also much They
experienced (desired dissatisfaction) still another method to ask respondents to list any problems
they had with the offer and to list any improvements they could suggest (Problem analysis)
finally companies could ask respondents to rate various elements of the offer in items of the
importance of the each of and how were the organization performed each element (important
performance ratings) Its last method helps the company to know if it is under performing on
important elements and over performing on relatively unimportant elements
C) Ghost shopping
Another useful way to gather a picture of customers satisfaction is to hire persons to pose as
potential buyers to report their finds on strong and weak points they experienced in buying the
companyrsquos and competitors products
11
d) Lost Customer Analysis
Companies should contact who stopped buying or who have switch to another supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customers
Some cautions in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out every element in detail customers would face huge questionnaire
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customer form being included in the survey
Some customers may want to express high dissatisfaction in order to receive more concession
E Lost Customer Analysis
Companies should contact who stopped buying or who have switch to other supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customer
Some caution in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out very element in detail customers would face huge questionnaire
12
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customers from being included in the survey Some customers may
want to express high dissatisfaction in order to receive more concession
Observation on customer satisfaction
1 Customer satisfaction will be lower in industries where the industry offers a
homogenous product to a heterogenous market On the other hand Industries that
supply a high quality homogenous product to homogenous market will register high
satisfaction
2 Customer satisfaction is lower an industries where repeal buyer faces high switching
costs They have to but from the supplier even through their satisfaction is low
3 Industries which depend upon repeat business generally create a higher level of
customer satisfaction
4 As the company increase its market share customer satisfaction call fall This is
because more customers with heterogeneous demands are drawn into buying a fairly
homogenous product
Post Product Behavior
After purchasing the product the customer will experience some level of satisfaction or
dissatisfaction The customer will engage in post purchase actions and product uses of interest to
the marketers The marketers job does not end when the product is bought but continue into the
post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos
product expectations the customer buts the product again and talks favorably or unfavorably
about the product to others
Customers from their expectations on the basis of received Messages from sellers friends and
other information sources If the seller exaggerates the benefits consumers will experience
disconfirmed expectations which lead to dissatisfaction The larger the gap between
expectations and performance the greater the consumerrsquos dissatisfaction
13
Post Purchase Action
The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent
behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing
the product main The satisfied customer will also tend to say good things about the brand to
others Marketers lay lsquoor best advertisements is the satisfied customer
A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the
dissolvance because a human being strives to establish internal harmony ldquo consistency or
congruity among his opinions knowledge and values
Marketers should be aware of the full range of ways consumers handle dissatisfaction
Consumers have a choice between taking and not taking any action If the former they can take
public action or private action If the former they can take public action or private action If
the former they can take public action or private action Public action includes complaining to
the company going to lawyer or complaining to other groups that might help the buyer gets
satisfaction Such as a business private or government agencies or the buyer might simply stop
buying the product or warn friends In all these cases the seller losses in having done a poor job
of satisfaction to the customer
System for complaints handling amp service recovery
Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases
about 25 of the time But surprising finding is that only about 5 complain The other 95
either feels that it is not worth the effort to complain or that they donrsquot know how to whom to
complain
Of the 5 of customers who complain only about 50 report a satisfactory problem resolution
Yet they need to resolve a customer problem in a satisfactory manner is critical where as on
average a satisfied customers tells three people about a good product experience dissatisfied
customer groups to people If each of them tells still other people the number of exposed to bad
work of mouth may grow exponentially
14
CHAPTER III Profile of Honda
HONDA MOTOR COMPANY LTD
Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds
largest manufacturer of internal combustion engines measured by volume producing more than
14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become
the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed
Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth
largest automobile manufacturer in the world
Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand
Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also
manufactures garden equipment marine engines personal watercraft and power generators
amongst others Since 1986 Honda has been involved with artificial intelligencerobotics
research and released their ASIMO robot in 2000 They have also ventured into Aero space with
the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet
scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD
History
From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had
a great interest in automobiles He then established the Honda Technical Research Institute in
Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon
18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar
15
Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked
the beginning of Honda Motor Company which would grow a short time later to be the worlds
largest manufacturer of motorcycles by 1964
Philosophy
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 Hondas philosophy is based on the
companys guiding principle and advocates 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
Trusts
It is the contribution from each individual in the company that has made our company what it is
today and that which will take us into the future
The Three Joys
The joy of manufacturing high quality products
The joy of selling high quality products
The joy of buying high quality products
Motorcycles
16
Honda is the largest motorcycle manufacturer in Japan and has been since it started production in
1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006
this figure had reduced to around 550000 but was still higher than its three domestic competitors
During the 1960s when it was a small manufacturer Honda broke out of the Japanese
motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the
smaller manufacturer entering a new market already occupied by highly dominant competitors
the story of their market entry and their subsequent huge success in the US and around the
world has been the subject of some academic controversy Competing explanations have been
advanced to explain Hondarsquos strategy and the reasons for their success
The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)
was commissioned by the UK government to write a report explaining why and how the British
motorcycle industry had been out-competed by its Japanese competitors The report concluded
that the Japanese firms including Honda had sought a very high scale of production (they had
made a large number of motorbikes) in order to benefit from economies of scale and learning
curve effects It blamed the decline of the British motorcycle industry on the failure of British
managers to invest enough in their businesses to profit from economies of scale and scope
The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda
executives responsible for the firmrsquos entry into the US market As opposed to the tightly
focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that
their entry into the US market was a story of ldquomiscalculation serendipity and organizational
learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff
rather than any long term strategy For example Honda1048758s initial plan on entering the US was
to compete in large motorcycles around 300 cc It was only when the team found that the
scooters they were using to get themselves around their US base of San Francisco attracted
positive interest from consumers that they came up with the idea of selling the Super cub
Awards
17
2011
Indian Motorcycle of the Year 2011 (IMOTY)
JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India
Bike of the Year ndash CNBC TV18 Overdrive Awards 2011
Bike of the Year - BloombergUTV Autocar Award 2011
Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011
CB Twister
The Most Awarded Motorcycle of the Year - 2011
Bike of the Year - BS Motoring Award 2011
Bike of the Year upto 110CC ndash Bike India
Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011
Premium 100CC Motorcycle - Zigwheels Awards
Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards
CB Unicorn Dazzler
Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011
Sporty Motorcycle upto 180CC ndash Zigwheels Awards
Premium Motorcycle of the Year - Auto Bild Golden Steering Awards
VFR 1200F
Superbike of the Year ndash TopGear
Automotive Technology of the Year - Zigwheels Awards
Brand Honda
Most Reliable Brand - Advanced Technology Brand
by Auto India Best Brand Survey Awards 2011
Motorsport
18
Honoured for Promoting 2Wheeler racing in India
2010
Brand
Most Reliable Brand
- Advance Technology
- Quality
By Apollo Auto India Best Brand Awards 2010
Trusted Brand Award (Gold) for Two-wheeler Readers Digest
CB1000R
Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010
CB1000R
Import Bike of the Year - AutoCar Awards 2010
CBR1000RR
Fireblade
Performance Bike of the Year - CNBC TV 18 Overdrive Award
2009
CBF Stunner Bike of the Year - NDTV Profit Award 2009
Aviator Scooter of the Year - NDTV Profit Award 2009
Activa Scooter of the Year - ET ZigWheels Awards 2009
2008
Aviator Scooter of the Year - Zigwheelscom
CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom
Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto
Awards 2008
19
Brand
-Well Made Bike 2008
-Advanced Technology 2008
-Overall 2008
Honda
-Eco-Friendliness 2008
-Resale Value 2008
By Apollo Tyres - Auto India Best Brand Survey Awards 2008
2007
Enter no Best automobile brand of India 2007 (Planman Media)
Activa Best automobile brand of India 2007 (Planman Media)
2006
Shine TNS Voice of The customer Award 2006 (TNS)
2005
Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)
Unicorn TNS Voice of the Customer Award (TNS)
Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)
2004
Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive
Magazine)
2003
Dio Scooter
of the Year 2003 (BBC)
20
2002
Activa Scooter of the Year by Overdrive Magazine
2001
Activa Scooter of the Year 2001 (BS Motoring)
Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial
results for the fiscal fourth quarter and the fiscal year ended March 31 2010
Fourth Quarter Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth
quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of
JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda
Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an
increase of JPY 13895 from the corresponding period last year One Honda American
Depository Share represents one common share
Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the
quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the
same period in 2009 due primarily to increased revenue in all of the business segments and
currency translation effects Honda estimates that had the exchange rates remained the same
from the corresponding period in 2009 revenue for the quarter would have increased by
approximately 254
Consolidated operating income for the quarter amounted to JPY 960 billion (USD
1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to
increased profit attributable to increased revenue reduction in vehicle costs as a result of
increased production and decreased SGampA expenses
21
Consolidated income before income taxes and equity in income of affiliates for the quarter
amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the
same period in 2009
Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an
increase of JPY 211 billion from the corresponding period last year
Fiscal Year Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended
March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the
previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share
for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous
fiscal year
Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a
decrease of 143 from the previous fiscal year primarily due to unfavorable currency
translation effects and decreased revenue in the automobile business Honda estimates that had
the exchange rate remained the same as the previous fiscal year revenue for the period would
have decreased by approximately 75
Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an
increase of 918 due primarily to decreased SGampA expenses and RampD expenses and
continuing cost reduction efforts despite decreased profit attributable to decreased revenue the
unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of
reduced production
Consolidated income before income taxes and equity in income of affiliates for the period totaled
JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year
Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a
decrease of 58 from the previous fiscal year
22
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
CHAPTER - I
INTRODUCTION
The two wheeler industry has been expanding rapidly Gone are the days when processing a two
wheeler was seen as a luxury Now a day it is viewed as a mere necessity Prior sale of two
wheelers was mainly confined to urban areas but lately in rural areas the bicycles are being
replaced by power driven two wheelers such as scooters and motorcycles Not only this the
industry has also customers ranging from all demographic segments It has been common that
even school going children are driving two wheelers The women customers are also increasing
due to increase in women literacy and employment
If getting a new customer is difficult then retaining a current customer is more difficult one and
not only that it is estimated that the cost of attracting a new customer is five times retaining the
current customer It requires a great deal of effort to induce satisfied customer to switch away
from their current preference Thus customer attitude is been given top priority in todayrsquos
competitive world
NEED FOR THE STUDY
After globalizations number of two wheeler markets have entered Indian Market New
companies have been set up with foreign specially Japanese Collaboration by already
established companies Honda motors Japan has set up subsidiary company at Gurgaon India to
offer state of the art Honda two wheelers to Indian makes Honda motors with its wide product
range has achieved a respectful market shone with strong dealer network and excellent after
sales services
Even though there is waiting period for some products some are available across the shelf
dealerships are upon not only at metros but also at urban and semi urban areas This is to
2
provide prompt after sales services it has opened class of art show rooms and work shops at all
the places
There is a need to study to efforts put in by the Company Dealers and Service network to study
the extent to which customers are satisfied with the product service and allied services etc
Hence it is proposed to study the Customer Satisfaction levels of Honda Customers with respect
to the product performance after sales service and other allied services like finance facility
availability of spares and accessories etc
OBJECTIVES OF THE STUDY
To study the profile of Two wheeler Industry in India
To study the marketing activities of Honda Motors
To study the Dealership profile of Vishnu Honda
To study the customer handling practices prior to sale during sale and after sale and
assesses the satisfaction levels of customers
To offer suggestion for improving the customer satisfaction
LIMITATIONS OF THE STUDY
- The study is limited to Honda Motors Customers who have purchased or come for service
to Ms Sri Vishnu Honda at Visakhapatnam
- Since a convenient sampling method is adopted the sample may not be representing all
types of customers
- As the study is conducted for a limited period and hence it may not be exhaustive
3
METHODOLOGY
The study is conducted basing on Primary and Secondary Data
Primary data is collected by administering a structured questionnaire to customers who visit the
dealer for purchase and service Data is also collected through personal discussions with the
dealer sales and service staff and personal observation made during sale and service
Secondary data is obtained from company records web site published articles etc
SAMPLING
Convenient Sampling method is adopted for selecting the respondents Care is taken to cover
customers of all types of products and age groups etc
4
CHAPTER II
CUSTOMER SATISFACTION
INTRODUCTION
Satisfaction is a personrsquos feelings of pleasure (or) is appointment resulting from comparing a
products perceived performance in relation to his (or) her expectation
Satisfaction is a function of perceived performance and expectations If the performance falls
short of expectation 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
Customer satisfaction is both a goal and a marketing tool Companies that achieve high
customer satisfaction ratings make sure that their target market knows it
Actual performance by the firm
Customer Satisfaction = ---------------------------------
Customer Expectations
5
1 CUSTOMER amp HIS IMPORTANCE -
The essence of the marketing concept is that organizations must adopt customer oriented features
and focus their attention of building programs offering and strategies that satisfy customer needs
and wants Many organizations maintain their focus on operations or product or sales efforts
and thereby get dislocated by mistaking the means for the end Successful marketing involves
companywide transformations in attitude beliefs and perceptions of the people in how they
view the customer Deep commitment to the customer is what distinguishes successful
marketers from Laggards
The excellent companies really close to their customers other companies top about it excellent
companies really close to their customers other companies to about it excellent companies do
itrsquo The companies which show extra ordinary concern for the customer include American
express Mc donalds Citibank IBM who go to the smallest dealers also ldquoNever forget the
customerrsquos attitude is the hull mark of their service strategy
Hence Customers are -
1 The most important people in any business
2 They are not dependent of a business But business is dependent on them
3 They are not an interruption to own work they are the purpose of it
4 They are doing us favor when they come in we are not doing them favor by serving
them
5 They are part of our business they are not outsiders
6 They are not just statistic The customers are human beings with flesh and blood having
feelings and emotions
7 People come to us with their needs and wants It is our job to fulfill them
8 They are the lifeblood of every business without whom the door of the business would
have been closed
9 Non customer functions in particular must be made customer oriented Customer needs
and requirements should be tracked on regular basis
6
II CUSTOMER SATISFACTION
Whether the buyer is satisfied after purchase depends upon the offer performance in relation to
the buyerrsquos expectations Customer satisfaction can be defined as -
Satisfaction is the level of a personrsquos felt state resulting from comparing a productrsquos perceived
performance in relation to the personrsquos expectationrsquos satisfaction level is a function of the
different between perceived performance and expectations some of the successful business firms
are aiming for total Customer Satisfaction which increase customer loyalty towards the product
or service offered by the firm
III IMPORTANCE OF CUSTOMER SATISFACTION
MISSION AND PURPOSE OF BUSINESS
The need to satisfy customer for achieving success in any commercial enterprise is so obvious
one wonder if there is any need to establish the importance of customer satisfaction However
one often finds that what should be obvious everyone also needs to be explained and establish
The income of commercial enterprise is derived from the payment received for the products and
services supplied to its external customers If there are no customers there is no income there
is no business In other words customers are the sole reason for the existence of commercial
establishments as the function is extremely important for the success of the organization the
senior management as well as the leaders of other departments or Divisions should also realize
the importance of customers to the organization and for its growth It is therefore no surprise
that Peter Drucket the renowned management guru said ldquo to satisfy the customer is the mission
and purpose of every business
7
IV CUSTOMER SATISFACTION PROCESS
Companies seeking to win in todayrsquos market must track their customerrsquos expectations perceived
company performance and customer satisfaction not only for them but for their competitions as
well
Brand loyalty and Customers satisfaction on the other hand are almost synonymous and their
impact on market share is statistically varifiable The relationship between market share
profitability as well as profitability and share holder value creation have been the subject of
considerable research over the years and the linkages have been proven many times
Customer satisfaction and Business Results
Licensing to Brands
Voice of the customer
Service Quality
Service Quality Customer Customer
Satisfaction Retention
Product Quality
Competitive
Innovation Growth Rate Market Share
Shareholder Profitability
Value Creation
8
It has been found that some customers are by native tendency more likely to move while others
are not Therefore even for some level of satisfaction or dissatisfaction some customer will
remain with the brand they are loyal to while others will switch Simply because they are more
prone to taking risks and more easily susceptible to the blandishments of competitors and
inherently more fickle This can be represented in four way matrix as given below
High 1 Safe Customer Habitual Switches
Satisfaction with 3 The Patient ones Highrise
Production
Low
Customer Classification by Satisfaction and Mobility
1 The Safe Customers are those who are satisfied and not likely to move
2 The habitual switches are happy and still likely to switch
3 The patient ones will stay on regardless but should not be taken for granted Their
satisfaction can be improved profitably as they are inherently less likely to switch
Todayrsquos customers are global and have high degree of need for congrition recognition approval
and respect So many companies believe that customer satisfaction can make the company more
profitable to some extent as
It as a more process aimed at enhancing customer share
It builds goodwill in the market which in turn generates additional traffic to the outlet
It is a real experience and a rich insight is to customerrsquos min to hit the bullrsquos eye with
carefully designed marketing strategies
A highly effective technique is to keep of buying habits intentions self image spending
patterns customer develops a sense of belonging in then and a soft corner for the
company itself
9
Higher customer retention index customer lifetime value loyalty and satisfaction level
increase transactions with the same customers again and again
A highly effective system of communication helps in developing positive attitude in
customer mind about the company its offerings
WHAT MARKETING SHOULD DO
Companies should establish a separate relationship market to prepare implement and
monitor their relationship marketing program
Company should not rely totally on technical people but employ relationship managers
who well equipped with marketing Communication and interpersonal skills
An integrated marketing system is a pre-requisite for building relationship with
customers
Companies should continuously search for value building approaches through a system of
quality management review process etc because only by exceeding customer
expectations marketers can build a value laden relationship with customers
As said before to satisfy a customer and to retain customer relationship marketing is
important
Methods of Tracking and Measuring Customer Satisfaction
The various methods generally adopted to track customer satisfaction are
a) Complaint amp Suggestion system
b) Customer satisfaction survey
c) Ghost Shopping
d) Lost Customer analysis
a) Complaint amp Suggestion system
A Customerrsquo centered organization would make it easy for its Customers to deliver suggestion
and complaints Some customer centered companies ndash P amp G General Electric Whirlpool
established ldquoCustomer hot linesrdquo with toll free 800 telephone numbers to maximize the ease with
10
which customers can enquire make suggestion or complaints Their information flows provides
these companies with many good ideas and enable them to act more rapidly to resolve problems
b) Customer satisfaction surveys
A company must not conclude that it can get a full picture of customer satisfaction and
dissatisfaction by simply relaying on a complaint and suggestion system Studies show that
customer are dissatisfied with one out of every four purchases and less than 5 of dissatisfied
customers will complaint customer may feel that their complaints are minor and they will be
made to feel stupid or that no remedy will be offered Most customers will by less or switch the
supplier than complaint The result is that the company has needlessly lost customers
Therefore companies canrsquot use complaint level as a measure of customer satisfaction
Responsive companies obtain a direct measure of customer satisfaction by conducting periodic
surveys They send questionnaire or make telephone calls to random sample of their recent
customers to find out how they feel about various aspects of the companyrsquos performance
Customer satisfaction can be measure in a number of ways It can be measured directly by
asking ldquoindicate how satisfied you are with servicerdquo on the following scale highly dissatisfied
indifferent satisfied highly satisfied (Directly reported satisfaction) Respondents can be asked
as well as to rate how much they expected of a certain attribute and also much They
experienced (desired dissatisfaction) still another method to ask respondents to list any problems
they had with the offer and to list any improvements they could suggest (Problem analysis)
finally companies could ask respondents to rate various elements of the offer in items of the
importance of the each of and how were the organization performed each element (important
performance ratings) Its last method helps the company to know if it is under performing on
important elements and over performing on relatively unimportant elements
C) Ghost shopping
Another useful way to gather a picture of customers satisfaction is to hire persons to pose as
potential buyers to report their finds on strong and weak points they experienced in buying the
companyrsquos and competitors products
11
d) Lost Customer Analysis
Companies should contact who stopped buying or who have switch to another supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customers
Some cautions in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out every element in detail customers would face huge questionnaire
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customer form being included in the survey
Some customers may want to express high dissatisfaction in order to receive more concession
E Lost Customer Analysis
Companies should contact who stopped buying or who have switch to other supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customer
Some caution in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out very element in detail customers would face huge questionnaire
12
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customers from being included in the survey Some customers may
want to express high dissatisfaction in order to receive more concession
Observation on customer satisfaction
1 Customer satisfaction will be lower in industries where the industry offers a
homogenous product to a heterogenous market On the other hand Industries that
supply a high quality homogenous product to homogenous market will register high
satisfaction
2 Customer satisfaction is lower an industries where repeal buyer faces high switching
costs They have to but from the supplier even through their satisfaction is low
3 Industries which depend upon repeat business generally create a higher level of
customer satisfaction
4 As the company increase its market share customer satisfaction call fall This is
because more customers with heterogeneous demands are drawn into buying a fairly
homogenous product
Post Product Behavior
After purchasing the product the customer will experience some level of satisfaction or
dissatisfaction The customer will engage in post purchase actions and product uses of interest to
the marketers The marketers job does not end when the product is bought but continue into the
post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos
product expectations the customer buts the product again and talks favorably or unfavorably
about the product to others
Customers from their expectations on the basis of received Messages from sellers friends and
other information sources If the seller exaggerates the benefits consumers will experience
disconfirmed expectations which lead to dissatisfaction The larger the gap between
expectations and performance the greater the consumerrsquos dissatisfaction
13
Post Purchase Action
The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent
behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing
the product main The satisfied customer will also tend to say good things about the brand to
others Marketers lay lsquoor best advertisements is the satisfied customer
A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the
dissolvance because a human being strives to establish internal harmony ldquo consistency or
congruity among his opinions knowledge and values
Marketers should be aware of the full range of ways consumers handle dissatisfaction
Consumers have a choice between taking and not taking any action If the former they can take
public action or private action If the former they can take public action or private action If
the former they can take public action or private action Public action includes complaining to
the company going to lawyer or complaining to other groups that might help the buyer gets
satisfaction Such as a business private or government agencies or the buyer might simply stop
buying the product or warn friends In all these cases the seller losses in having done a poor job
of satisfaction to the customer
System for complaints handling amp service recovery
Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases
about 25 of the time But surprising finding is that only about 5 complain The other 95
either feels that it is not worth the effort to complain or that they donrsquot know how to whom to
complain
Of the 5 of customers who complain only about 50 report a satisfactory problem resolution
Yet they need to resolve a customer problem in a satisfactory manner is critical where as on
average a satisfied customers tells three people about a good product experience dissatisfied
customer groups to people If each of them tells still other people the number of exposed to bad
work of mouth may grow exponentially
14
CHAPTER III Profile of Honda
HONDA MOTOR COMPANY LTD
Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds
largest manufacturer of internal combustion engines measured by volume producing more than
14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become
the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed
Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth
largest automobile manufacturer in the world
Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand
Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also
manufactures garden equipment marine engines personal watercraft and power generators
amongst others Since 1986 Honda has been involved with artificial intelligencerobotics
research and released their ASIMO robot in 2000 They have also ventured into Aero space with
the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet
scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD
History
From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had
a great interest in automobiles He then established the Honda Technical Research Institute in
Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon
18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar
15
Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked
the beginning of Honda Motor Company which would grow a short time later to be the worlds
largest manufacturer of motorcycles by 1964
Philosophy
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 Hondas philosophy is based on the
companys guiding principle and advocates 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
Trusts
It is the contribution from each individual in the company that has made our company what it is
today and that which will take us into the future
The Three Joys
The joy of manufacturing high quality products
The joy of selling high quality products
The joy of buying high quality products
Motorcycles
16
Honda is the largest motorcycle manufacturer in Japan and has been since it started production in
1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006
this figure had reduced to around 550000 but was still higher than its three domestic competitors
During the 1960s when it was a small manufacturer Honda broke out of the Japanese
motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the
smaller manufacturer entering a new market already occupied by highly dominant competitors
the story of their market entry and their subsequent huge success in the US and around the
world has been the subject of some academic controversy Competing explanations have been
advanced to explain Hondarsquos strategy and the reasons for their success
The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)
was commissioned by the UK government to write a report explaining why and how the British
motorcycle industry had been out-competed by its Japanese competitors The report concluded
that the Japanese firms including Honda had sought a very high scale of production (they had
made a large number of motorbikes) in order to benefit from economies of scale and learning
curve effects It blamed the decline of the British motorcycle industry on the failure of British
managers to invest enough in their businesses to profit from economies of scale and scope
The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda
executives responsible for the firmrsquos entry into the US market As opposed to the tightly
focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that
their entry into the US market was a story of ldquomiscalculation serendipity and organizational
learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff
rather than any long term strategy For example Honda1048758s initial plan on entering the US was
to compete in large motorcycles around 300 cc It was only when the team found that the
scooters they were using to get themselves around their US base of San Francisco attracted
positive interest from consumers that they came up with the idea of selling the Super cub
Awards
17
2011
Indian Motorcycle of the Year 2011 (IMOTY)
JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India
Bike of the Year ndash CNBC TV18 Overdrive Awards 2011
Bike of the Year - BloombergUTV Autocar Award 2011
Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011
CB Twister
The Most Awarded Motorcycle of the Year - 2011
Bike of the Year - BS Motoring Award 2011
Bike of the Year upto 110CC ndash Bike India
Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011
Premium 100CC Motorcycle - Zigwheels Awards
Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards
CB Unicorn Dazzler
Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011
Sporty Motorcycle upto 180CC ndash Zigwheels Awards
Premium Motorcycle of the Year - Auto Bild Golden Steering Awards
VFR 1200F
Superbike of the Year ndash TopGear
Automotive Technology of the Year - Zigwheels Awards
Brand Honda
Most Reliable Brand - Advanced Technology Brand
by Auto India Best Brand Survey Awards 2011
Motorsport
18
Honoured for Promoting 2Wheeler racing in India
2010
Brand
Most Reliable Brand
- Advance Technology
- Quality
By Apollo Auto India Best Brand Awards 2010
Trusted Brand Award (Gold) for Two-wheeler Readers Digest
CB1000R
Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010
CB1000R
Import Bike of the Year - AutoCar Awards 2010
CBR1000RR
Fireblade
Performance Bike of the Year - CNBC TV 18 Overdrive Award
2009
CBF Stunner Bike of the Year - NDTV Profit Award 2009
Aviator Scooter of the Year - NDTV Profit Award 2009
Activa Scooter of the Year - ET ZigWheels Awards 2009
2008
Aviator Scooter of the Year - Zigwheelscom
CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom
Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto
Awards 2008
19
Brand
-Well Made Bike 2008
-Advanced Technology 2008
-Overall 2008
Honda
-Eco-Friendliness 2008
-Resale Value 2008
By Apollo Tyres - Auto India Best Brand Survey Awards 2008
2007
Enter no Best automobile brand of India 2007 (Planman Media)
Activa Best automobile brand of India 2007 (Planman Media)
2006
Shine TNS Voice of The customer Award 2006 (TNS)
2005
Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)
Unicorn TNS Voice of the Customer Award (TNS)
Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)
2004
Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive
Magazine)
2003
Dio Scooter
of the Year 2003 (BBC)
20
2002
Activa Scooter of the Year by Overdrive Magazine
2001
Activa Scooter of the Year 2001 (BS Motoring)
Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial
results for the fiscal fourth quarter and the fiscal year ended March 31 2010
Fourth Quarter Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth
quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of
JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda
Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an
increase of JPY 13895 from the corresponding period last year One Honda American
Depository Share represents one common share
Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the
quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the
same period in 2009 due primarily to increased revenue in all of the business segments and
currency translation effects Honda estimates that had the exchange rates remained the same
from the corresponding period in 2009 revenue for the quarter would have increased by
approximately 254
Consolidated operating income for the quarter amounted to JPY 960 billion (USD
1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to
increased profit attributable to increased revenue reduction in vehicle costs as a result of
increased production and decreased SGampA expenses
21
Consolidated income before income taxes and equity in income of affiliates for the quarter
amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the
same period in 2009
Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an
increase of JPY 211 billion from the corresponding period last year
Fiscal Year Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended
March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the
previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share
for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous
fiscal year
Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a
decrease of 143 from the previous fiscal year primarily due to unfavorable currency
translation effects and decreased revenue in the automobile business Honda estimates that had
the exchange rate remained the same as the previous fiscal year revenue for the period would
have decreased by approximately 75
Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an
increase of 918 due primarily to decreased SGampA expenses and RampD expenses and
continuing cost reduction efforts despite decreased profit attributable to decreased revenue the
unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of
reduced production
Consolidated income before income taxes and equity in income of affiliates for the period totaled
JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year
Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a
decrease of 58 from the previous fiscal year
22
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
provide prompt after sales services it has opened class of art show rooms and work shops at all
the places
There is a need to study to efforts put in by the Company Dealers and Service network to study
the extent to which customers are satisfied with the product service and allied services etc
Hence it is proposed to study the Customer Satisfaction levels of Honda Customers with respect
to the product performance after sales service and other allied services like finance facility
availability of spares and accessories etc
OBJECTIVES OF THE STUDY
To study the profile of Two wheeler Industry in India
To study the marketing activities of Honda Motors
To study the Dealership profile of Vishnu Honda
To study the customer handling practices prior to sale during sale and after sale and
assesses the satisfaction levels of customers
To offer suggestion for improving the customer satisfaction
LIMITATIONS OF THE STUDY
- The study is limited to Honda Motors Customers who have purchased or come for service
to Ms Sri Vishnu Honda at Visakhapatnam
- Since a convenient sampling method is adopted the sample may not be representing all
types of customers
- As the study is conducted for a limited period and hence it may not be exhaustive
3
METHODOLOGY
The study is conducted basing on Primary and Secondary Data
Primary data is collected by administering a structured questionnaire to customers who visit the
dealer for purchase and service Data is also collected through personal discussions with the
dealer sales and service staff and personal observation made during sale and service
Secondary data is obtained from company records web site published articles etc
SAMPLING
Convenient Sampling method is adopted for selecting the respondents Care is taken to cover
customers of all types of products and age groups etc
4
CHAPTER II
CUSTOMER SATISFACTION
INTRODUCTION
Satisfaction is a personrsquos feelings of pleasure (or) is appointment resulting from comparing a
products perceived performance in relation to his (or) her expectation
Satisfaction is a function of perceived performance and expectations If the performance falls
short of expectation 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
Customer satisfaction is both a goal and a marketing tool Companies that achieve high
customer satisfaction ratings make sure that their target market knows it
Actual performance by the firm
Customer Satisfaction = ---------------------------------
Customer Expectations
5
1 CUSTOMER amp HIS IMPORTANCE -
The essence of the marketing concept is that organizations must adopt customer oriented features
and focus their attention of building programs offering and strategies that satisfy customer needs
and wants Many organizations maintain their focus on operations or product or sales efforts
and thereby get dislocated by mistaking the means for the end Successful marketing involves
companywide transformations in attitude beliefs and perceptions of the people in how they
view the customer Deep commitment to the customer is what distinguishes successful
marketers from Laggards
The excellent companies really close to their customers other companies top about it excellent
companies really close to their customers other companies to about it excellent companies do
itrsquo The companies which show extra ordinary concern for the customer include American
express Mc donalds Citibank IBM who go to the smallest dealers also ldquoNever forget the
customerrsquos attitude is the hull mark of their service strategy
Hence Customers are -
1 The most important people in any business
2 They are not dependent of a business But business is dependent on them
3 They are not an interruption to own work they are the purpose of it
4 They are doing us favor when they come in we are not doing them favor by serving
them
5 They are part of our business they are not outsiders
6 They are not just statistic The customers are human beings with flesh and blood having
feelings and emotions
7 People come to us with their needs and wants It is our job to fulfill them
8 They are the lifeblood of every business without whom the door of the business would
have been closed
9 Non customer functions in particular must be made customer oriented Customer needs
and requirements should be tracked on regular basis
6
II CUSTOMER SATISFACTION
Whether the buyer is satisfied after purchase depends upon the offer performance in relation to
the buyerrsquos expectations Customer satisfaction can be defined as -
Satisfaction is the level of a personrsquos felt state resulting from comparing a productrsquos perceived
performance in relation to the personrsquos expectationrsquos satisfaction level is a function of the
different between perceived performance and expectations some of the successful business firms
are aiming for total Customer Satisfaction which increase customer loyalty towards the product
or service offered by the firm
III IMPORTANCE OF CUSTOMER SATISFACTION
MISSION AND PURPOSE OF BUSINESS
The need to satisfy customer for achieving success in any commercial enterprise is so obvious
one wonder if there is any need to establish the importance of customer satisfaction However
one often finds that what should be obvious everyone also needs to be explained and establish
The income of commercial enterprise is derived from the payment received for the products and
services supplied to its external customers If there are no customers there is no income there
is no business In other words customers are the sole reason for the existence of commercial
establishments as the function is extremely important for the success of the organization the
senior management as well as the leaders of other departments or Divisions should also realize
the importance of customers to the organization and for its growth It is therefore no surprise
that Peter Drucket the renowned management guru said ldquo to satisfy the customer is the mission
and purpose of every business
7
IV CUSTOMER SATISFACTION PROCESS
Companies seeking to win in todayrsquos market must track their customerrsquos expectations perceived
company performance and customer satisfaction not only for them but for their competitions as
well
Brand loyalty and Customers satisfaction on the other hand are almost synonymous and their
impact on market share is statistically varifiable The relationship between market share
profitability as well as profitability and share holder value creation have been the subject of
considerable research over the years and the linkages have been proven many times
Customer satisfaction and Business Results
Licensing to Brands
Voice of the customer
Service Quality
Service Quality Customer Customer
Satisfaction Retention
Product Quality
Competitive
Innovation Growth Rate Market Share
Shareholder Profitability
Value Creation
8
It has been found that some customers are by native tendency more likely to move while others
are not Therefore even for some level of satisfaction or dissatisfaction some customer will
remain with the brand they are loyal to while others will switch Simply because they are more
prone to taking risks and more easily susceptible to the blandishments of competitors and
inherently more fickle This can be represented in four way matrix as given below
High 1 Safe Customer Habitual Switches
Satisfaction with 3 The Patient ones Highrise
Production
Low
Customer Classification by Satisfaction and Mobility
1 The Safe Customers are those who are satisfied and not likely to move
2 The habitual switches are happy and still likely to switch
3 The patient ones will stay on regardless but should not be taken for granted Their
satisfaction can be improved profitably as they are inherently less likely to switch
Todayrsquos customers are global and have high degree of need for congrition recognition approval
and respect So many companies believe that customer satisfaction can make the company more
profitable to some extent as
It as a more process aimed at enhancing customer share
It builds goodwill in the market which in turn generates additional traffic to the outlet
It is a real experience and a rich insight is to customerrsquos min to hit the bullrsquos eye with
carefully designed marketing strategies
A highly effective technique is to keep of buying habits intentions self image spending
patterns customer develops a sense of belonging in then and a soft corner for the
company itself
9
Higher customer retention index customer lifetime value loyalty and satisfaction level
increase transactions with the same customers again and again
A highly effective system of communication helps in developing positive attitude in
customer mind about the company its offerings
WHAT MARKETING SHOULD DO
Companies should establish a separate relationship market to prepare implement and
monitor their relationship marketing program
Company should not rely totally on technical people but employ relationship managers
who well equipped with marketing Communication and interpersonal skills
An integrated marketing system is a pre-requisite for building relationship with
customers
Companies should continuously search for value building approaches through a system of
quality management review process etc because only by exceeding customer
expectations marketers can build a value laden relationship with customers
As said before to satisfy a customer and to retain customer relationship marketing is
important
Methods of Tracking and Measuring Customer Satisfaction
The various methods generally adopted to track customer satisfaction are
a) Complaint amp Suggestion system
b) Customer satisfaction survey
c) Ghost Shopping
d) Lost Customer analysis
a) Complaint amp Suggestion system
A Customerrsquo centered organization would make it easy for its Customers to deliver suggestion
and complaints Some customer centered companies ndash P amp G General Electric Whirlpool
established ldquoCustomer hot linesrdquo with toll free 800 telephone numbers to maximize the ease with
10
which customers can enquire make suggestion or complaints Their information flows provides
these companies with many good ideas and enable them to act more rapidly to resolve problems
b) Customer satisfaction surveys
A company must not conclude that it can get a full picture of customer satisfaction and
dissatisfaction by simply relaying on a complaint and suggestion system Studies show that
customer are dissatisfied with one out of every four purchases and less than 5 of dissatisfied
customers will complaint customer may feel that their complaints are minor and they will be
made to feel stupid or that no remedy will be offered Most customers will by less or switch the
supplier than complaint The result is that the company has needlessly lost customers
Therefore companies canrsquot use complaint level as a measure of customer satisfaction
Responsive companies obtain a direct measure of customer satisfaction by conducting periodic
surveys They send questionnaire or make telephone calls to random sample of their recent
customers to find out how they feel about various aspects of the companyrsquos performance
Customer satisfaction can be measure in a number of ways It can be measured directly by
asking ldquoindicate how satisfied you are with servicerdquo on the following scale highly dissatisfied
indifferent satisfied highly satisfied (Directly reported satisfaction) Respondents can be asked
as well as to rate how much they expected of a certain attribute and also much They
experienced (desired dissatisfaction) still another method to ask respondents to list any problems
they had with the offer and to list any improvements they could suggest (Problem analysis)
finally companies could ask respondents to rate various elements of the offer in items of the
importance of the each of and how were the organization performed each element (important
performance ratings) Its last method helps the company to know if it is under performing on
important elements and over performing on relatively unimportant elements
C) Ghost shopping
Another useful way to gather a picture of customers satisfaction is to hire persons to pose as
potential buyers to report their finds on strong and weak points they experienced in buying the
companyrsquos and competitors products
11
d) Lost Customer Analysis
Companies should contact who stopped buying or who have switch to another supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customers
Some cautions in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out every element in detail customers would face huge questionnaire
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customer form being included in the survey
Some customers may want to express high dissatisfaction in order to receive more concession
E Lost Customer Analysis
Companies should contact who stopped buying or who have switch to other supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customer
Some caution in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out very element in detail customers would face huge questionnaire
12
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customers from being included in the survey Some customers may
want to express high dissatisfaction in order to receive more concession
Observation on customer satisfaction
1 Customer satisfaction will be lower in industries where the industry offers a
homogenous product to a heterogenous market On the other hand Industries that
supply a high quality homogenous product to homogenous market will register high
satisfaction
2 Customer satisfaction is lower an industries where repeal buyer faces high switching
costs They have to but from the supplier even through their satisfaction is low
3 Industries which depend upon repeat business generally create a higher level of
customer satisfaction
4 As the company increase its market share customer satisfaction call fall This is
because more customers with heterogeneous demands are drawn into buying a fairly
homogenous product
Post Product Behavior
After purchasing the product the customer will experience some level of satisfaction or
dissatisfaction The customer will engage in post purchase actions and product uses of interest to
the marketers The marketers job does not end when the product is bought but continue into the
post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos
product expectations the customer buts the product again and talks favorably or unfavorably
about the product to others
Customers from their expectations on the basis of received Messages from sellers friends and
other information sources If the seller exaggerates the benefits consumers will experience
disconfirmed expectations which lead to dissatisfaction The larger the gap between
expectations and performance the greater the consumerrsquos dissatisfaction
13
Post Purchase Action
The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent
behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing
the product main The satisfied customer will also tend to say good things about the brand to
others Marketers lay lsquoor best advertisements is the satisfied customer
A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the
dissolvance because a human being strives to establish internal harmony ldquo consistency or
congruity among his opinions knowledge and values
Marketers should be aware of the full range of ways consumers handle dissatisfaction
Consumers have a choice between taking and not taking any action If the former they can take
public action or private action If the former they can take public action or private action If
the former they can take public action or private action Public action includes complaining to
the company going to lawyer or complaining to other groups that might help the buyer gets
satisfaction Such as a business private or government agencies or the buyer might simply stop
buying the product or warn friends In all these cases the seller losses in having done a poor job
of satisfaction to the customer
System for complaints handling amp service recovery
Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases
about 25 of the time But surprising finding is that only about 5 complain The other 95
either feels that it is not worth the effort to complain or that they donrsquot know how to whom to
complain
Of the 5 of customers who complain only about 50 report a satisfactory problem resolution
Yet they need to resolve a customer problem in a satisfactory manner is critical where as on
average a satisfied customers tells three people about a good product experience dissatisfied
customer groups to people If each of them tells still other people the number of exposed to bad
work of mouth may grow exponentially
14
CHAPTER III Profile of Honda
HONDA MOTOR COMPANY LTD
Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds
largest manufacturer of internal combustion engines measured by volume producing more than
14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become
the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed
Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth
largest automobile manufacturer in the world
Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand
Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also
manufactures garden equipment marine engines personal watercraft and power generators
amongst others Since 1986 Honda has been involved with artificial intelligencerobotics
research and released their ASIMO robot in 2000 They have also ventured into Aero space with
the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet
scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD
History
From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had
a great interest in automobiles He then established the Honda Technical Research Institute in
Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon
18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar
15
Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked
the beginning of Honda Motor Company which would grow a short time later to be the worlds
largest manufacturer of motorcycles by 1964
Philosophy
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 Hondas philosophy is based on the
companys guiding principle and advocates 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
Trusts
It is the contribution from each individual in the company that has made our company what it is
today and that which will take us into the future
The Three Joys
The joy of manufacturing high quality products
The joy of selling high quality products
The joy of buying high quality products
Motorcycles
16
Honda is the largest motorcycle manufacturer in Japan and has been since it started production in
1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006
this figure had reduced to around 550000 but was still higher than its three domestic competitors
During the 1960s when it was a small manufacturer Honda broke out of the Japanese
motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the
smaller manufacturer entering a new market already occupied by highly dominant competitors
the story of their market entry and their subsequent huge success in the US and around the
world has been the subject of some academic controversy Competing explanations have been
advanced to explain Hondarsquos strategy and the reasons for their success
The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)
was commissioned by the UK government to write a report explaining why and how the British
motorcycle industry had been out-competed by its Japanese competitors The report concluded
that the Japanese firms including Honda had sought a very high scale of production (they had
made a large number of motorbikes) in order to benefit from economies of scale and learning
curve effects It blamed the decline of the British motorcycle industry on the failure of British
managers to invest enough in their businesses to profit from economies of scale and scope
The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda
executives responsible for the firmrsquos entry into the US market As opposed to the tightly
focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that
their entry into the US market was a story of ldquomiscalculation serendipity and organizational
learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff
rather than any long term strategy For example Honda1048758s initial plan on entering the US was
to compete in large motorcycles around 300 cc It was only when the team found that the
scooters they were using to get themselves around their US base of San Francisco attracted
positive interest from consumers that they came up with the idea of selling the Super cub
Awards
17
2011
Indian Motorcycle of the Year 2011 (IMOTY)
JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India
Bike of the Year ndash CNBC TV18 Overdrive Awards 2011
Bike of the Year - BloombergUTV Autocar Award 2011
Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011
CB Twister
The Most Awarded Motorcycle of the Year - 2011
Bike of the Year - BS Motoring Award 2011
Bike of the Year upto 110CC ndash Bike India
Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011
Premium 100CC Motorcycle - Zigwheels Awards
Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards
CB Unicorn Dazzler
Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011
Sporty Motorcycle upto 180CC ndash Zigwheels Awards
Premium Motorcycle of the Year - Auto Bild Golden Steering Awards
VFR 1200F
Superbike of the Year ndash TopGear
Automotive Technology of the Year - Zigwheels Awards
Brand Honda
Most Reliable Brand - Advanced Technology Brand
by Auto India Best Brand Survey Awards 2011
Motorsport
18
Honoured for Promoting 2Wheeler racing in India
2010
Brand
Most Reliable Brand
- Advance Technology
- Quality
By Apollo Auto India Best Brand Awards 2010
Trusted Brand Award (Gold) for Two-wheeler Readers Digest
CB1000R
Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010
CB1000R
Import Bike of the Year - AutoCar Awards 2010
CBR1000RR
Fireblade
Performance Bike of the Year - CNBC TV 18 Overdrive Award
2009
CBF Stunner Bike of the Year - NDTV Profit Award 2009
Aviator Scooter of the Year - NDTV Profit Award 2009
Activa Scooter of the Year - ET ZigWheels Awards 2009
2008
Aviator Scooter of the Year - Zigwheelscom
CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom
Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto
Awards 2008
19
Brand
-Well Made Bike 2008
-Advanced Technology 2008
-Overall 2008
Honda
-Eco-Friendliness 2008
-Resale Value 2008
By Apollo Tyres - Auto India Best Brand Survey Awards 2008
2007
Enter no Best automobile brand of India 2007 (Planman Media)
Activa Best automobile brand of India 2007 (Planman Media)
2006
Shine TNS Voice of The customer Award 2006 (TNS)
2005
Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)
Unicorn TNS Voice of the Customer Award (TNS)
Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)
2004
Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive
Magazine)
2003
Dio Scooter
of the Year 2003 (BBC)
20
2002
Activa Scooter of the Year by Overdrive Magazine
2001
Activa Scooter of the Year 2001 (BS Motoring)
Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial
results for the fiscal fourth quarter and the fiscal year ended March 31 2010
Fourth Quarter Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth
quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of
JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda
Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an
increase of JPY 13895 from the corresponding period last year One Honda American
Depository Share represents one common share
Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the
quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the
same period in 2009 due primarily to increased revenue in all of the business segments and
currency translation effects Honda estimates that had the exchange rates remained the same
from the corresponding period in 2009 revenue for the quarter would have increased by
approximately 254
Consolidated operating income for the quarter amounted to JPY 960 billion (USD
1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to
increased profit attributable to increased revenue reduction in vehicle costs as a result of
increased production and decreased SGampA expenses
21
Consolidated income before income taxes and equity in income of affiliates for the quarter
amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the
same period in 2009
Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an
increase of JPY 211 billion from the corresponding period last year
Fiscal Year Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended
March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the
previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share
for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous
fiscal year
Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a
decrease of 143 from the previous fiscal year primarily due to unfavorable currency
translation effects and decreased revenue in the automobile business Honda estimates that had
the exchange rate remained the same as the previous fiscal year revenue for the period would
have decreased by approximately 75
Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an
increase of 918 due primarily to decreased SGampA expenses and RampD expenses and
continuing cost reduction efforts despite decreased profit attributable to decreased revenue the
unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of
reduced production
Consolidated income before income taxes and equity in income of affiliates for the period totaled
JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year
Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a
decrease of 58 from the previous fiscal year
22
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
METHODOLOGY
The study is conducted basing on Primary and Secondary Data
Primary data is collected by administering a structured questionnaire to customers who visit the
dealer for purchase and service Data is also collected through personal discussions with the
dealer sales and service staff and personal observation made during sale and service
Secondary data is obtained from company records web site published articles etc
SAMPLING
Convenient Sampling method is adopted for selecting the respondents Care is taken to cover
customers of all types of products and age groups etc
4
CHAPTER II
CUSTOMER SATISFACTION
INTRODUCTION
Satisfaction is a personrsquos feelings of pleasure (or) is appointment resulting from comparing a
products perceived performance in relation to his (or) her expectation
Satisfaction is a function of perceived performance and expectations If the performance falls
short of expectation 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
Customer satisfaction is both a goal and a marketing tool Companies that achieve high
customer satisfaction ratings make sure that their target market knows it
Actual performance by the firm
Customer Satisfaction = ---------------------------------
Customer Expectations
5
1 CUSTOMER amp HIS IMPORTANCE -
The essence of the marketing concept is that organizations must adopt customer oriented features
and focus their attention of building programs offering and strategies that satisfy customer needs
and wants Many organizations maintain their focus on operations or product or sales efforts
and thereby get dislocated by mistaking the means for the end Successful marketing involves
companywide transformations in attitude beliefs and perceptions of the people in how they
view the customer Deep commitment to the customer is what distinguishes successful
marketers from Laggards
The excellent companies really close to their customers other companies top about it excellent
companies really close to their customers other companies to about it excellent companies do
itrsquo The companies which show extra ordinary concern for the customer include American
express Mc donalds Citibank IBM who go to the smallest dealers also ldquoNever forget the
customerrsquos attitude is the hull mark of their service strategy
Hence Customers are -
1 The most important people in any business
2 They are not dependent of a business But business is dependent on them
3 They are not an interruption to own work they are the purpose of it
4 They are doing us favor when they come in we are not doing them favor by serving
them
5 They are part of our business they are not outsiders
6 They are not just statistic The customers are human beings with flesh and blood having
feelings and emotions
7 People come to us with their needs and wants It is our job to fulfill them
8 They are the lifeblood of every business without whom the door of the business would
have been closed
9 Non customer functions in particular must be made customer oriented Customer needs
and requirements should be tracked on regular basis
6
II CUSTOMER SATISFACTION
Whether the buyer is satisfied after purchase depends upon the offer performance in relation to
the buyerrsquos expectations Customer satisfaction can be defined as -
Satisfaction is the level of a personrsquos felt state resulting from comparing a productrsquos perceived
performance in relation to the personrsquos expectationrsquos satisfaction level is a function of the
different between perceived performance and expectations some of the successful business firms
are aiming for total Customer Satisfaction which increase customer loyalty towards the product
or service offered by the firm
III IMPORTANCE OF CUSTOMER SATISFACTION
MISSION AND PURPOSE OF BUSINESS
The need to satisfy customer for achieving success in any commercial enterprise is so obvious
one wonder if there is any need to establish the importance of customer satisfaction However
one often finds that what should be obvious everyone also needs to be explained and establish
The income of commercial enterprise is derived from the payment received for the products and
services supplied to its external customers If there are no customers there is no income there
is no business In other words customers are the sole reason for the existence of commercial
establishments as the function is extremely important for the success of the organization the
senior management as well as the leaders of other departments or Divisions should also realize
the importance of customers to the organization and for its growth It is therefore no surprise
that Peter Drucket the renowned management guru said ldquo to satisfy the customer is the mission
and purpose of every business
7
IV CUSTOMER SATISFACTION PROCESS
Companies seeking to win in todayrsquos market must track their customerrsquos expectations perceived
company performance and customer satisfaction not only for them but for their competitions as
well
Brand loyalty and Customers satisfaction on the other hand are almost synonymous and their
impact on market share is statistically varifiable The relationship between market share
profitability as well as profitability and share holder value creation have been the subject of
considerable research over the years and the linkages have been proven many times
Customer satisfaction and Business Results
Licensing to Brands
Voice of the customer
Service Quality
Service Quality Customer Customer
Satisfaction Retention
Product Quality
Competitive
Innovation Growth Rate Market Share
Shareholder Profitability
Value Creation
8
It has been found that some customers are by native tendency more likely to move while others
are not Therefore even for some level of satisfaction or dissatisfaction some customer will
remain with the brand they are loyal to while others will switch Simply because they are more
prone to taking risks and more easily susceptible to the blandishments of competitors and
inherently more fickle This can be represented in four way matrix as given below
High 1 Safe Customer Habitual Switches
Satisfaction with 3 The Patient ones Highrise
Production
Low
Customer Classification by Satisfaction and Mobility
1 The Safe Customers are those who are satisfied and not likely to move
2 The habitual switches are happy and still likely to switch
3 The patient ones will stay on regardless but should not be taken for granted Their
satisfaction can be improved profitably as they are inherently less likely to switch
Todayrsquos customers are global and have high degree of need for congrition recognition approval
and respect So many companies believe that customer satisfaction can make the company more
profitable to some extent as
It as a more process aimed at enhancing customer share
It builds goodwill in the market which in turn generates additional traffic to the outlet
It is a real experience and a rich insight is to customerrsquos min to hit the bullrsquos eye with
carefully designed marketing strategies
A highly effective technique is to keep of buying habits intentions self image spending
patterns customer develops a sense of belonging in then and a soft corner for the
company itself
9
Higher customer retention index customer lifetime value loyalty and satisfaction level
increase transactions with the same customers again and again
A highly effective system of communication helps in developing positive attitude in
customer mind about the company its offerings
WHAT MARKETING SHOULD DO
Companies should establish a separate relationship market to prepare implement and
monitor their relationship marketing program
Company should not rely totally on technical people but employ relationship managers
who well equipped with marketing Communication and interpersonal skills
An integrated marketing system is a pre-requisite for building relationship with
customers
Companies should continuously search for value building approaches through a system of
quality management review process etc because only by exceeding customer
expectations marketers can build a value laden relationship with customers
As said before to satisfy a customer and to retain customer relationship marketing is
important
Methods of Tracking and Measuring Customer Satisfaction
The various methods generally adopted to track customer satisfaction are
a) Complaint amp Suggestion system
b) Customer satisfaction survey
c) Ghost Shopping
d) Lost Customer analysis
a) Complaint amp Suggestion system
A Customerrsquo centered organization would make it easy for its Customers to deliver suggestion
and complaints Some customer centered companies ndash P amp G General Electric Whirlpool
established ldquoCustomer hot linesrdquo with toll free 800 telephone numbers to maximize the ease with
10
which customers can enquire make suggestion or complaints Their information flows provides
these companies with many good ideas and enable them to act more rapidly to resolve problems
b) Customer satisfaction surveys
A company must not conclude that it can get a full picture of customer satisfaction and
dissatisfaction by simply relaying on a complaint and suggestion system Studies show that
customer are dissatisfied with one out of every four purchases and less than 5 of dissatisfied
customers will complaint customer may feel that their complaints are minor and they will be
made to feel stupid or that no remedy will be offered Most customers will by less or switch the
supplier than complaint The result is that the company has needlessly lost customers
Therefore companies canrsquot use complaint level as a measure of customer satisfaction
Responsive companies obtain a direct measure of customer satisfaction by conducting periodic
surveys They send questionnaire or make telephone calls to random sample of their recent
customers to find out how they feel about various aspects of the companyrsquos performance
Customer satisfaction can be measure in a number of ways It can be measured directly by
asking ldquoindicate how satisfied you are with servicerdquo on the following scale highly dissatisfied
indifferent satisfied highly satisfied (Directly reported satisfaction) Respondents can be asked
as well as to rate how much they expected of a certain attribute and also much They
experienced (desired dissatisfaction) still another method to ask respondents to list any problems
they had with the offer and to list any improvements they could suggest (Problem analysis)
finally companies could ask respondents to rate various elements of the offer in items of the
importance of the each of and how were the organization performed each element (important
performance ratings) Its last method helps the company to know if it is under performing on
important elements and over performing on relatively unimportant elements
C) Ghost shopping
Another useful way to gather a picture of customers satisfaction is to hire persons to pose as
potential buyers to report their finds on strong and weak points they experienced in buying the
companyrsquos and competitors products
11
d) Lost Customer Analysis
Companies should contact who stopped buying or who have switch to another supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customers
Some cautions in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out every element in detail customers would face huge questionnaire
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customer form being included in the survey
Some customers may want to express high dissatisfaction in order to receive more concession
E Lost Customer Analysis
Companies should contact who stopped buying or who have switch to other supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customer
Some caution in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out very element in detail customers would face huge questionnaire
12
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customers from being included in the survey Some customers may
want to express high dissatisfaction in order to receive more concession
Observation on customer satisfaction
1 Customer satisfaction will be lower in industries where the industry offers a
homogenous product to a heterogenous market On the other hand Industries that
supply a high quality homogenous product to homogenous market will register high
satisfaction
2 Customer satisfaction is lower an industries where repeal buyer faces high switching
costs They have to but from the supplier even through their satisfaction is low
3 Industries which depend upon repeat business generally create a higher level of
customer satisfaction
4 As the company increase its market share customer satisfaction call fall This is
because more customers with heterogeneous demands are drawn into buying a fairly
homogenous product
Post Product Behavior
After purchasing the product the customer will experience some level of satisfaction or
dissatisfaction The customer will engage in post purchase actions and product uses of interest to
the marketers The marketers job does not end when the product is bought but continue into the
post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos
product expectations the customer buts the product again and talks favorably or unfavorably
about the product to others
Customers from their expectations on the basis of received Messages from sellers friends and
other information sources If the seller exaggerates the benefits consumers will experience
disconfirmed expectations which lead to dissatisfaction The larger the gap between
expectations and performance the greater the consumerrsquos dissatisfaction
13
Post Purchase Action
The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent
behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing
the product main The satisfied customer will also tend to say good things about the brand to
others Marketers lay lsquoor best advertisements is the satisfied customer
A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the
dissolvance because a human being strives to establish internal harmony ldquo consistency or
congruity among his opinions knowledge and values
Marketers should be aware of the full range of ways consumers handle dissatisfaction
Consumers have a choice between taking and not taking any action If the former they can take
public action or private action If the former they can take public action or private action If
the former they can take public action or private action Public action includes complaining to
the company going to lawyer or complaining to other groups that might help the buyer gets
satisfaction Such as a business private or government agencies or the buyer might simply stop
buying the product or warn friends In all these cases the seller losses in having done a poor job
of satisfaction to the customer
System for complaints handling amp service recovery
Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases
about 25 of the time But surprising finding is that only about 5 complain The other 95
either feels that it is not worth the effort to complain or that they donrsquot know how to whom to
complain
Of the 5 of customers who complain only about 50 report a satisfactory problem resolution
Yet they need to resolve a customer problem in a satisfactory manner is critical where as on
average a satisfied customers tells three people about a good product experience dissatisfied
customer groups to people If each of them tells still other people the number of exposed to bad
work of mouth may grow exponentially
14
CHAPTER III Profile of Honda
HONDA MOTOR COMPANY LTD
Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds
largest manufacturer of internal combustion engines measured by volume producing more than
14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become
the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed
Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth
largest automobile manufacturer in the world
Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand
Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also
manufactures garden equipment marine engines personal watercraft and power generators
amongst others Since 1986 Honda has been involved with artificial intelligencerobotics
research and released their ASIMO robot in 2000 They have also ventured into Aero space with
the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet
scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD
History
From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had
a great interest in automobiles He then established the Honda Technical Research Institute in
Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon
18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar
15
Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked
the beginning of Honda Motor Company which would grow a short time later to be the worlds
largest manufacturer of motorcycles by 1964
Philosophy
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 Hondas philosophy is based on the
companys guiding principle and advocates 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
Trusts
It is the contribution from each individual in the company that has made our company what it is
today and that which will take us into the future
The Three Joys
The joy of manufacturing high quality products
The joy of selling high quality products
The joy of buying high quality products
Motorcycles
16
Honda is the largest motorcycle manufacturer in Japan and has been since it started production in
1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006
this figure had reduced to around 550000 but was still higher than its three domestic competitors
During the 1960s when it was a small manufacturer Honda broke out of the Japanese
motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the
smaller manufacturer entering a new market already occupied by highly dominant competitors
the story of their market entry and their subsequent huge success in the US and around the
world has been the subject of some academic controversy Competing explanations have been
advanced to explain Hondarsquos strategy and the reasons for their success
The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)
was commissioned by the UK government to write a report explaining why and how the British
motorcycle industry had been out-competed by its Japanese competitors The report concluded
that the Japanese firms including Honda had sought a very high scale of production (they had
made a large number of motorbikes) in order to benefit from economies of scale and learning
curve effects It blamed the decline of the British motorcycle industry on the failure of British
managers to invest enough in their businesses to profit from economies of scale and scope
The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda
executives responsible for the firmrsquos entry into the US market As opposed to the tightly
focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that
their entry into the US market was a story of ldquomiscalculation serendipity and organizational
learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff
rather than any long term strategy For example Honda1048758s initial plan on entering the US was
to compete in large motorcycles around 300 cc It was only when the team found that the
scooters they were using to get themselves around their US base of San Francisco attracted
positive interest from consumers that they came up with the idea of selling the Super cub
Awards
17
2011
Indian Motorcycle of the Year 2011 (IMOTY)
JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India
Bike of the Year ndash CNBC TV18 Overdrive Awards 2011
Bike of the Year - BloombergUTV Autocar Award 2011
Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011
CB Twister
The Most Awarded Motorcycle of the Year - 2011
Bike of the Year - BS Motoring Award 2011
Bike of the Year upto 110CC ndash Bike India
Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011
Premium 100CC Motorcycle - Zigwheels Awards
Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards
CB Unicorn Dazzler
Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011
Sporty Motorcycle upto 180CC ndash Zigwheels Awards
Premium Motorcycle of the Year - Auto Bild Golden Steering Awards
VFR 1200F
Superbike of the Year ndash TopGear
Automotive Technology of the Year - Zigwheels Awards
Brand Honda
Most Reliable Brand - Advanced Technology Brand
by Auto India Best Brand Survey Awards 2011
Motorsport
18
Honoured for Promoting 2Wheeler racing in India
2010
Brand
Most Reliable Brand
- Advance Technology
- Quality
By Apollo Auto India Best Brand Awards 2010
Trusted Brand Award (Gold) for Two-wheeler Readers Digest
CB1000R
Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010
CB1000R
Import Bike of the Year - AutoCar Awards 2010
CBR1000RR
Fireblade
Performance Bike of the Year - CNBC TV 18 Overdrive Award
2009
CBF Stunner Bike of the Year - NDTV Profit Award 2009
Aviator Scooter of the Year - NDTV Profit Award 2009
Activa Scooter of the Year - ET ZigWheels Awards 2009
2008
Aviator Scooter of the Year - Zigwheelscom
CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom
Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto
Awards 2008
19
Brand
-Well Made Bike 2008
-Advanced Technology 2008
-Overall 2008
Honda
-Eco-Friendliness 2008
-Resale Value 2008
By Apollo Tyres - Auto India Best Brand Survey Awards 2008
2007
Enter no Best automobile brand of India 2007 (Planman Media)
Activa Best automobile brand of India 2007 (Planman Media)
2006
Shine TNS Voice of The customer Award 2006 (TNS)
2005
Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)
Unicorn TNS Voice of the Customer Award (TNS)
Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)
2004
Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive
Magazine)
2003
Dio Scooter
of the Year 2003 (BBC)
20
2002
Activa Scooter of the Year by Overdrive Magazine
2001
Activa Scooter of the Year 2001 (BS Motoring)
Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial
results for the fiscal fourth quarter and the fiscal year ended March 31 2010
Fourth Quarter Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth
quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of
JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda
Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an
increase of JPY 13895 from the corresponding period last year One Honda American
Depository Share represents one common share
Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the
quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the
same period in 2009 due primarily to increased revenue in all of the business segments and
currency translation effects Honda estimates that had the exchange rates remained the same
from the corresponding period in 2009 revenue for the quarter would have increased by
approximately 254
Consolidated operating income for the quarter amounted to JPY 960 billion (USD
1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to
increased profit attributable to increased revenue reduction in vehicle costs as a result of
increased production and decreased SGampA expenses
21
Consolidated income before income taxes and equity in income of affiliates for the quarter
amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the
same period in 2009
Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an
increase of JPY 211 billion from the corresponding period last year
Fiscal Year Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended
March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the
previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share
for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous
fiscal year
Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a
decrease of 143 from the previous fiscal year primarily due to unfavorable currency
translation effects and decreased revenue in the automobile business Honda estimates that had
the exchange rate remained the same as the previous fiscal year revenue for the period would
have decreased by approximately 75
Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an
increase of 918 due primarily to decreased SGampA expenses and RampD expenses and
continuing cost reduction efforts despite decreased profit attributable to decreased revenue the
unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of
reduced production
Consolidated income before income taxes and equity in income of affiliates for the period totaled
JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year
Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a
decrease of 58 from the previous fiscal year
22
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
CHAPTER II
CUSTOMER SATISFACTION
INTRODUCTION
Satisfaction is a personrsquos feelings of pleasure (or) is appointment resulting from comparing a
products perceived performance in relation to his (or) her expectation
Satisfaction is a function of perceived performance and expectations If the performance falls
short of expectation 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
Customer satisfaction is both a goal and a marketing tool Companies that achieve high
customer satisfaction ratings make sure that their target market knows it
Actual performance by the firm
Customer Satisfaction = ---------------------------------
Customer Expectations
5
1 CUSTOMER amp HIS IMPORTANCE -
The essence of the marketing concept is that organizations must adopt customer oriented features
and focus their attention of building programs offering and strategies that satisfy customer needs
and wants Many organizations maintain their focus on operations or product or sales efforts
and thereby get dislocated by mistaking the means for the end Successful marketing involves
companywide transformations in attitude beliefs and perceptions of the people in how they
view the customer Deep commitment to the customer is what distinguishes successful
marketers from Laggards
The excellent companies really close to their customers other companies top about it excellent
companies really close to their customers other companies to about it excellent companies do
itrsquo The companies which show extra ordinary concern for the customer include American
express Mc donalds Citibank IBM who go to the smallest dealers also ldquoNever forget the
customerrsquos attitude is the hull mark of their service strategy
Hence Customers are -
1 The most important people in any business
2 They are not dependent of a business But business is dependent on them
3 They are not an interruption to own work they are the purpose of it
4 They are doing us favor when they come in we are not doing them favor by serving
them
5 They are part of our business they are not outsiders
6 They are not just statistic The customers are human beings with flesh and blood having
feelings and emotions
7 People come to us with their needs and wants It is our job to fulfill them
8 They are the lifeblood of every business without whom the door of the business would
have been closed
9 Non customer functions in particular must be made customer oriented Customer needs
and requirements should be tracked on regular basis
6
II CUSTOMER SATISFACTION
Whether the buyer is satisfied after purchase depends upon the offer performance in relation to
the buyerrsquos expectations Customer satisfaction can be defined as -
Satisfaction is the level of a personrsquos felt state resulting from comparing a productrsquos perceived
performance in relation to the personrsquos expectationrsquos satisfaction level is a function of the
different between perceived performance and expectations some of the successful business firms
are aiming for total Customer Satisfaction which increase customer loyalty towards the product
or service offered by the firm
III IMPORTANCE OF CUSTOMER SATISFACTION
MISSION AND PURPOSE OF BUSINESS
The need to satisfy customer for achieving success in any commercial enterprise is so obvious
one wonder if there is any need to establish the importance of customer satisfaction However
one often finds that what should be obvious everyone also needs to be explained and establish
The income of commercial enterprise is derived from the payment received for the products and
services supplied to its external customers If there are no customers there is no income there
is no business In other words customers are the sole reason for the existence of commercial
establishments as the function is extremely important for the success of the organization the
senior management as well as the leaders of other departments or Divisions should also realize
the importance of customers to the organization and for its growth It is therefore no surprise
that Peter Drucket the renowned management guru said ldquo to satisfy the customer is the mission
and purpose of every business
7
IV CUSTOMER SATISFACTION PROCESS
Companies seeking to win in todayrsquos market must track their customerrsquos expectations perceived
company performance and customer satisfaction not only for them but for their competitions as
well
Brand loyalty and Customers satisfaction on the other hand are almost synonymous and their
impact on market share is statistically varifiable The relationship between market share
profitability as well as profitability and share holder value creation have been the subject of
considerable research over the years and the linkages have been proven many times
Customer satisfaction and Business Results
Licensing to Brands
Voice of the customer
Service Quality
Service Quality Customer Customer
Satisfaction Retention
Product Quality
Competitive
Innovation Growth Rate Market Share
Shareholder Profitability
Value Creation
8
It has been found that some customers are by native tendency more likely to move while others
are not Therefore even for some level of satisfaction or dissatisfaction some customer will
remain with the brand they are loyal to while others will switch Simply because they are more
prone to taking risks and more easily susceptible to the blandishments of competitors and
inherently more fickle This can be represented in four way matrix as given below
High 1 Safe Customer Habitual Switches
Satisfaction with 3 The Patient ones Highrise
Production
Low
Customer Classification by Satisfaction and Mobility
1 The Safe Customers are those who are satisfied and not likely to move
2 The habitual switches are happy and still likely to switch
3 The patient ones will stay on regardless but should not be taken for granted Their
satisfaction can be improved profitably as they are inherently less likely to switch
Todayrsquos customers are global and have high degree of need for congrition recognition approval
and respect So many companies believe that customer satisfaction can make the company more
profitable to some extent as
It as a more process aimed at enhancing customer share
It builds goodwill in the market which in turn generates additional traffic to the outlet
It is a real experience and a rich insight is to customerrsquos min to hit the bullrsquos eye with
carefully designed marketing strategies
A highly effective technique is to keep of buying habits intentions self image spending
patterns customer develops a sense of belonging in then and a soft corner for the
company itself
9
Higher customer retention index customer lifetime value loyalty and satisfaction level
increase transactions with the same customers again and again
A highly effective system of communication helps in developing positive attitude in
customer mind about the company its offerings
WHAT MARKETING SHOULD DO
Companies should establish a separate relationship market to prepare implement and
monitor their relationship marketing program
Company should not rely totally on technical people but employ relationship managers
who well equipped with marketing Communication and interpersonal skills
An integrated marketing system is a pre-requisite for building relationship with
customers
Companies should continuously search for value building approaches through a system of
quality management review process etc because only by exceeding customer
expectations marketers can build a value laden relationship with customers
As said before to satisfy a customer and to retain customer relationship marketing is
important
Methods of Tracking and Measuring Customer Satisfaction
The various methods generally adopted to track customer satisfaction are
a) Complaint amp Suggestion system
b) Customer satisfaction survey
c) Ghost Shopping
d) Lost Customer analysis
a) Complaint amp Suggestion system
A Customerrsquo centered organization would make it easy for its Customers to deliver suggestion
and complaints Some customer centered companies ndash P amp G General Electric Whirlpool
established ldquoCustomer hot linesrdquo with toll free 800 telephone numbers to maximize the ease with
10
which customers can enquire make suggestion or complaints Their information flows provides
these companies with many good ideas and enable them to act more rapidly to resolve problems
b) Customer satisfaction surveys
A company must not conclude that it can get a full picture of customer satisfaction and
dissatisfaction by simply relaying on a complaint and suggestion system Studies show that
customer are dissatisfied with one out of every four purchases and less than 5 of dissatisfied
customers will complaint customer may feel that their complaints are minor and they will be
made to feel stupid or that no remedy will be offered Most customers will by less or switch the
supplier than complaint The result is that the company has needlessly lost customers
Therefore companies canrsquot use complaint level as a measure of customer satisfaction
Responsive companies obtain a direct measure of customer satisfaction by conducting periodic
surveys They send questionnaire or make telephone calls to random sample of their recent
customers to find out how they feel about various aspects of the companyrsquos performance
Customer satisfaction can be measure in a number of ways It can be measured directly by
asking ldquoindicate how satisfied you are with servicerdquo on the following scale highly dissatisfied
indifferent satisfied highly satisfied (Directly reported satisfaction) Respondents can be asked
as well as to rate how much they expected of a certain attribute and also much They
experienced (desired dissatisfaction) still another method to ask respondents to list any problems
they had with the offer and to list any improvements they could suggest (Problem analysis)
finally companies could ask respondents to rate various elements of the offer in items of the
importance of the each of and how were the organization performed each element (important
performance ratings) Its last method helps the company to know if it is under performing on
important elements and over performing on relatively unimportant elements
C) Ghost shopping
Another useful way to gather a picture of customers satisfaction is to hire persons to pose as
potential buyers to report their finds on strong and weak points they experienced in buying the
companyrsquos and competitors products
11
d) Lost Customer Analysis
Companies should contact who stopped buying or who have switch to another supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customers
Some cautions in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out every element in detail customers would face huge questionnaire
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customer form being included in the survey
Some customers may want to express high dissatisfaction in order to receive more concession
E Lost Customer Analysis
Companies should contact who stopped buying or who have switch to other supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customer
Some caution in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out very element in detail customers would face huge questionnaire
12
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customers from being included in the survey Some customers may
want to express high dissatisfaction in order to receive more concession
Observation on customer satisfaction
1 Customer satisfaction will be lower in industries where the industry offers a
homogenous product to a heterogenous market On the other hand Industries that
supply a high quality homogenous product to homogenous market will register high
satisfaction
2 Customer satisfaction is lower an industries where repeal buyer faces high switching
costs They have to but from the supplier even through their satisfaction is low
3 Industries which depend upon repeat business generally create a higher level of
customer satisfaction
4 As the company increase its market share customer satisfaction call fall This is
because more customers with heterogeneous demands are drawn into buying a fairly
homogenous product
Post Product Behavior
After purchasing the product the customer will experience some level of satisfaction or
dissatisfaction The customer will engage in post purchase actions and product uses of interest to
the marketers The marketers job does not end when the product is bought but continue into the
post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos
product expectations the customer buts the product again and talks favorably or unfavorably
about the product to others
Customers from their expectations on the basis of received Messages from sellers friends and
other information sources If the seller exaggerates the benefits consumers will experience
disconfirmed expectations which lead to dissatisfaction The larger the gap between
expectations and performance the greater the consumerrsquos dissatisfaction
13
Post Purchase Action
The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent
behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing
the product main The satisfied customer will also tend to say good things about the brand to
others Marketers lay lsquoor best advertisements is the satisfied customer
A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the
dissolvance because a human being strives to establish internal harmony ldquo consistency or
congruity among his opinions knowledge and values
Marketers should be aware of the full range of ways consumers handle dissatisfaction
Consumers have a choice between taking and not taking any action If the former they can take
public action or private action If the former they can take public action or private action If
the former they can take public action or private action Public action includes complaining to
the company going to lawyer or complaining to other groups that might help the buyer gets
satisfaction Such as a business private or government agencies or the buyer might simply stop
buying the product or warn friends In all these cases the seller losses in having done a poor job
of satisfaction to the customer
System for complaints handling amp service recovery
Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases
about 25 of the time But surprising finding is that only about 5 complain The other 95
either feels that it is not worth the effort to complain or that they donrsquot know how to whom to
complain
Of the 5 of customers who complain only about 50 report a satisfactory problem resolution
Yet they need to resolve a customer problem in a satisfactory manner is critical where as on
average a satisfied customers tells three people about a good product experience dissatisfied
customer groups to people If each of them tells still other people the number of exposed to bad
work of mouth may grow exponentially
14
CHAPTER III Profile of Honda
HONDA MOTOR COMPANY LTD
Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds
largest manufacturer of internal combustion engines measured by volume producing more than
14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become
the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed
Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth
largest automobile manufacturer in the world
Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand
Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also
manufactures garden equipment marine engines personal watercraft and power generators
amongst others Since 1986 Honda has been involved with artificial intelligencerobotics
research and released their ASIMO robot in 2000 They have also ventured into Aero space with
the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet
scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD
History
From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had
a great interest in automobiles He then established the Honda Technical Research Institute in
Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon
18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar
15
Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked
the beginning of Honda Motor Company which would grow a short time later to be the worlds
largest manufacturer of motorcycles by 1964
Philosophy
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 Hondas philosophy is based on the
companys guiding principle and advocates 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
Trusts
It is the contribution from each individual in the company that has made our company what it is
today and that which will take us into the future
The Three Joys
The joy of manufacturing high quality products
The joy of selling high quality products
The joy of buying high quality products
Motorcycles
16
Honda is the largest motorcycle manufacturer in Japan and has been since it started production in
1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006
this figure had reduced to around 550000 but was still higher than its three domestic competitors
During the 1960s when it was a small manufacturer Honda broke out of the Japanese
motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the
smaller manufacturer entering a new market already occupied by highly dominant competitors
the story of their market entry and their subsequent huge success in the US and around the
world has been the subject of some academic controversy Competing explanations have been
advanced to explain Hondarsquos strategy and the reasons for their success
The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)
was commissioned by the UK government to write a report explaining why and how the British
motorcycle industry had been out-competed by its Japanese competitors The report concluded
that the Japanese firms including Honda had sought a very high scale of production (they had
made a large number of motorbikes) in order to benefit from economies of scale and learning
curve effects It blamed the decline of the British motorcycle industry on the failure of British
managers to invest enough in their businesses to profit from economies of scale and scope
The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda
executives responsible for the firmrsquos entry into the US market As opposed to the tightly
focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that
their entry into the US market was a story of ldquomiscalculation serendipity and organizational
learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff
rather than any long term strategy For example Honda1048758s initial plan on entering the US was
to compete in large motorcycles around 300 cc It was only when the team found that the
scooters they were using to get themselves around their US base of San Francisco attracted
positive interest from consumers that they came up with the idea of selling the Super cub
Awards
17
2011
Indian Motorcycle of the Year 2011 (IMOTY)
JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India
Bike of the Year ndash CNBC TV18 Overdrive Awards 2011
Bike of the Year - BloombergUTV Autocar Award 2011
Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011
CB Twister
The Most Awarded Motorcycle of the Year - 2011
Bike of the Year - BS Motoring Award 2011
Bike of the Year upto 110CC ndash Bike India
Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011
Premium 100CC Motorcycle - Zigwheels Awards
Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards
CB Unicorn Dazzler
Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011
Sporty Motorcycle upto 180CC ndash Zigwheels Awards
Premium Motorcycle of the Year - Auto Bild Golden Steering Awards
VFR 1200F
Superbike of the Year ndash TopGear
Automotive Technology of the Year - Zigwheels Awards
Brand Honda
Most Reliable Brand - Advanced Technology Brand
by Auto India Best Brand Survey Awards 2011
Motorsport
18
Honoured for Promoting 2Wheeler racing in India
2010
Brand
Most Reliable Brand
- Advance Technology
- Quality
By Apollo Auto India Best Brand Awards 2010
Trusted Brand Award (Gold) for Two-wheeler Readers Digest
CB1000R
Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010
CB1000R
Import Bike of the Year - AutoCar Awards 2010
CBR1000RR
Fireblade
Performance Bike of the Year - CNBC TV 18 Overdrive Award
2009
CBF Stunner Bike of the Year - NDTV Profit Award 2009
Aviator Scooter of the Year - NDTV Profit Award 2009
Activa Scooter of the Year - ET ZigWheels Awards 2009
2008
Aviator Scooter of the Year - Zigwheelscom
CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom
Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto
Awards 2008
19
Brand
-Well Made Bike 2008
-Advanced Technology 2008
-Overall 2008
Honda
-Eco-Friendliness 2008
-Resale Value 2008
By Apollo Tyres - Auto India Best Brand Survey Awards 2008
2007
Enter no Best automobile brand of India 2007 (Planman Media)
Activa Best automobile brand of India 2007 (Planman Media)
2006
Shine TNS Voice of The customer Award 2006 (TNS)
2005
Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)
Unicorn TNS Voice of the Customer Award (TNS)
Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)
2004
Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive
Magazine)
2003
Dio Scooter
of the Year 2003 (BBC)
20
2002
Activa Scooter of the Year by Overdrive Magazine
2001
Activa Scooter of the Year 2001 (BS Motoring)
Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial
results for the fiscal fourth quarter and the fiscal year ended March 31 2010
Fourth Quarter Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth
quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of
JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda
Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an
increase of JPY 13895 from the corresponding period last year One Honda American
Depository Share represents one common share
Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the
quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the
same period in 2009 due primarily to increased revenue in all of the business segments and
currency translation effects Honda estimates that had the exchange rates remained the same
from the corresponding period in 2009 revenue for the quarter would have increased by
approximately 254
Consolidated operating income for the quarter amounted to JPY 960 billion (USD
1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to
increased profit attributable to increased revenue reduction in vehicle costs as a result of
increased production and decreased SGampA expenses
21
Consolidated income before income taxes and equity in income of affiliates for the quarter
amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the
same period in 2009
Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an
increase of JPY 211 billion from the corresponding period last year
Fiscal Year Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended
March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the
previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share
for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous
fiscal year
Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a
decrease of 143 from the previous fiscal year primarily due to unfavorable currency
translation effects and decreased revenue in the automobile business Honda estimates that had
the exchange rate remained the same as the previous fiscal year revenue for the period would
have decreased by approximately 75
Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an
increase of 918 due primarily to decreased SGampA expenses and RampD expenses and
continuing cost reduction efforts despite decreased profit attributable to decreased revenue the
unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of
reduced production
Consolidated income before income taxes and equity in income of affiliates for the period totaled
JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year
Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a
decrease of 58 from the previous fiscal year
22
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
1 CUSTOMER amp HIS IMPORTANCE -
The essence of the marketing concept is that organizations must adopt customer oriented features
and focus their attention of building programs offering and strategies that satisfy customer needs
and wants Many organizations maintain their focus on operations or product or sales efforts
and thereby get dislocated by mistaking the means for the end Successful marketing involves
companywide transformations in attitude beliefs and perceptions of the people in how they
view the customer Deep commitment to the customer is what distinguishes successful
marketers from Laggards
The excellent companies really close to their customers other companies top about it excellent
companies really close to their customers other companies to about it excellent companies do
itrsquo The companies which show extra ordinary concern for the customer include American
express Mc donalds Citibank IBM who go to the smallest dealers also ldquoNever forget the
customerrsquos attitude is the hull mark of their service strategy
Hence Customers are -
1 The most important people in any business
2 They are not dependent of a business But business is dependent on them
3 They are not an interruption to own work they are the purpose of it
4 They are doing us favor when they come in we are not doing them favor by serving
them
5 They are part of our business they are not outsiders
6 They are not just statistic The customers are human beings with flesh and blood having
feelings and emotions
7 People come to us with their needs and wants It is our job to fulfill them
8 They are the lifeblood of every business without whom the door of the business would
have been closed
9 Non customer functions in particular must be made customer oriented Customer needs
and requirements should be tracked on regular basis
6
II CUSTOMER SATISFACTION
Whether the buyer is satisfied after purchase depends upon the offer performance in relation to
the buyerrsquos expectations Customer satisfaction can be defined as -
Satisfaction is the level of a personrsquos felt state resulting from comparing a productrsquos perceived
performance in relation to the personrsquos expectationrsquos satisfaction level is a function of the
different between perceived performance and expectations some of the successful business firms
are aiming for total Customer Satisfaction which increase customer loyalty towards the product
or service offered by the firm
III IMPORTANCE OF CUSTOMER SATISFACTION
MISSION AND PURPOSE OF BUSINESS
The need to satisfy customer for achieving success in any commercial enterprise is so obvious
one wonder if there is any need to establish the importance of customer satisfaction However
one often finds that what should be obvious everyone also needs to be explained and establish
The income of commercial enterprise is derived from the payment received for the products and
services supplied to its external customers If there are no customers there is no income there
is no business In other words customers are the sole reason for the existence of commercial
establishments as the function is extremely important for the success of the organization the
senior management as well as the leaders of other departments or Divisions should also realize
the importance of customers to the organization and for its growth It is therefore no surprise
that Peter Drucket the renowned management guru said ldquo to satisfy the customer is the mission
and purpose of every business
7
IV CUSTOMER SATISFACTION PROCESS
Companies seeking to win in todayrsquos market must track their customerrsquos expectations perceived
company performance and customer satisfaction not only for them but for their competitions as
well
Brand loyalty and Customers satisfaction on the other hand are almost synonymous and their
impact on market share is statistically varifiable The relationship between market share
profitability as well as profitability and share holder value creation have been the subject of
considerable research over the years and the linkages have been proven many times
Customer satisfaction and Business Results
Licensing to Brands
Voice of the customer
Service Quality
Service Quality Customer Customer
Satisfaction Retention
Product Quality
Competitive
Innovation Growth Rate Market Share
Shareholder Profitability
Value Creation
8
It has been found that some customers are by native tendency more likely to move while others
are not Therefore even for some level of satisfaction or dissatisfaction some customer will
remain with the brand they are loyal to while others will switch Simply because they are more
prone to taking risks and more easily susceptible to the blandishments of competitors and
inherently more fickle This can be represented in four way matrix as given below
High 1 Safe Customer Habitual Switches
Satisfaction with 3 The Patient ones Highrise
Production
Low
Customer Classification by Satisfaction and Mobility
1 The Safe Customers are those who are satisfied and not likely to move
2 The habitual switches are happy and still likely to switch
3 The patient ones will stay on regardless but should not be taken for granted Their
satisfaction can be improved profitably as they are inherently less likely to switch
Todayrsquos customers are global and have high degree of need for congrition recognition approval
and respect So many companies believe that customer satisfaction can make the company more
profitable to some extent as
It as a more process aimed at enhancing customer share
It builds goodwill in the market which in turn generates additional traffic to the outlet
It is a real experience and a rich insight is to customerrsquos min to hit the bullrsquos eye with
carefully designed marketing strategies
A highly effective technique is to keep of buying habits intentions self image spending
patterns customer develops a sense of belonging in then and a soft corner for the
company itself
9
Higher customer retention index customer lifetime value loyalty and satisfaction level
increase transactions with the same customers again and again
A highly effective system of communication helps in developing positive attitude in
customer mind about the company its offerings
WHAT MARKETING SHOULD DO
Companies should establish a separate relationship market to prepare implement and
monitor their relationship marketing program
Company should not rely totally on technical people but employ relationship managers
who well equipped with marketing Communication and interpersonal skills
An integrated marketing system is a pre-requisite for building relationship with
customers
Companies should continuously search for value building approaches through a system of
quality management review process etc because only by exceeding customer
expectations marketers can build a value laden relationship with customers
As said before to satisfy a customer and to retain customer relationship marketing is
important
Methods of Tracking and Measuring Customer Satisfaction
The various methods generally adopted to track customer satisfaction are
a) Complaint amp Suggestion system
b) Customer satisfaction survey
c) Ghost Shopping
d) Lost Customer analysis
a) Complaint amp Suggestion system
A Customerrsquo centered organization would make it easy for its Customers to deliver suggestion
and complaints Some customer centered companies ndash P amp G General Electric Whirlpool
established ldquoCustomer hot linesrdquo with toll free 800 telephone numbers to maximize the ease with
10
which customers can enquire make suggestion or complaints Their information flows provides
these companies with many good ideas and enable them to act more rapidly to resolve problems
b) Customer satisfaction surveys
A company must not conclude that it can get a full picture of customer satisfaction and
dissatisfaction by simply relaying on a complaint and suggestion system Studies show that
customer are dissatisfied with one out of every four purchases and less than 5 of dissatisfied
customers will complaint customer may feel that their complaints are minor and they will be
made to feel stupid or that no remedy will be offered Most customers will by less or switch the
supplier than complaint The result is that the company has needlessly lost customers
Therefore companies canrsquot use complaint level as a measure of customer satisfaction
Responsive companies obtain a direct measure of customer satisfaction by conducting periodic
surveys They send questionnaire or make telephone calls to random sample of their recent
customers to find out how they feel about various aspects of the companyrsquos performance
Customer satisfaction can be measure in a number of ways It can be measured directly by
asking ldquoindicate how satisfied you are with servicerdquo on the following scale highly dissatisfied
indifferent satisfied highly satisfied (Directly reported satisfaction) Respondents can be asked
as well as to rate how much they expected of a certain attribute and also much They
experienced (desired dissatisfaction) still another method to ask respondents to list any problems
they had with the offer and to list any improvements they could suggest (Problem analysis)
finally companies could ask respondents to rate various elements of the offer in items of the
importance of the each of and how were the organization performed each element (important
performance ratings) Its last method helps the company to know if it is under performing on
important elements and over performing on relatively unimportant elements
C) Ghost shopping
Another useful way to gather a picture of customers satisfaction is to hire persons to pose as
potential buyers to report their finds on strong and weak points they experienced in buying the
companyrsquos and competitors products
11
d) Lost Customer Analysis
Companies should contact who stopped buying or who have switch to another supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customers
Some cautions in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out every element in detail customers would face huge questionnaire
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customer form being included in the survey
Some customers may want to express high dissatisfaction in order to receive more concession
E Lost Customer Analysis
Companies should contact who stopped buying or who have switch to other supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customer
Some caution in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out very element in detail customers would face huge questionnaire
12
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customers from being included in the survey Some customers may
want to express high dissatisfaction in order to receive more concession
Observation on customer satisfaction
1 Customer satisfaction will be lower in industries where the industry offers a
homogenous product to a heterogenous market On the other hand Industries that
supply a high quality homogenous product to homogenous market will register high
satisfaction
2 Customer satisfaction is lower an industries where repeal buyer faces high switching
costs They have to but from the supplier even through their satisfaction is low
3 Industries which depend upon repeat business generally create a higher level of
customer satisfaction
4 As the company increase its market share customer satisfaction call fall This is
because more customers with heterogeneous demands are drawn into buying a fairly
homogenous product
Post Product Behavior
After purchasing the product the customer will experience some level of satisfaction or
dissatisfaction The customer will engage in post purchase actions and product uses of interest to
the marketers The marketers job does not end when the product is bought but continue into the
post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos
product expectations the customer buts the product again and talks favorably or unfavorably
about the product to others
Customers from their expectations on the basis of received Messages from sellers friends and
other information sources If the seller exaggerates the benefits consumers will experience
disconfirmed expectations which lead to dissatisfaction The larger the gap between
expectations and performance the greater the consumerrsquos dissatisfaction
13
Post Purchase Action
The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent
behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing
the product main The satisfied customer will also tend to say good things about the brand to
others Marketers lay lsquoor best advertisements is the satisfied customer
A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the
dissolvance because a human being strives to establish internal harmony ldquo consistency or
congruity among his opinions knowledge and values
Marketers should be aware of the full range of ways consumers handle dissatisfaction
Consumers have a choice between taking and not taking any action If the former they can take
public action or private action If the former they can take public action or private action If
the former they can take public action or private action Public action includes complaining to
the company going to lawyer or complaining to other groups that might help the buyer gets
satisfaction Such as a business private or government agencies or the buyer might simply stop
buying the product or warn friends In all these cases the seller losses in having done a poor job
of satisfaction to the customer
System for complaints handling amp service recovery
Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases
about 25 of the time But surprising finding is that only about 5 complain The other 95
either feels that it is not worth the effort to complain or that they donrsquot know how to whom to
complain
Of the 5 of customers who complain only about 50 report a satisfactory problem resolution
Yet they need to resolve a customer problem in a satisfactory manner is critical where as on
average a satisfied customers tells three people about a good product experience dissatisfied
customer groups to people If each of them tells still other people the number of exposed to bad
work of mouth may grow exponentially
14
CHAPTER III Profile of Honda
HONDA MOTOR COMPANY LTD
Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds
largest manufacturer of internal combustion engines measured by volume producing more than
14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become
the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed
Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth
largest automobile manufacturer in the world
Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand
Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also
manufactures garden equipment marine engines personal watercraft and power generators
amongst others Since 1986 Honda has been involved with artificial intelligencerobotics
research and released their ASIMO robot in 2000 They have also ventured into Aero space with
the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet
scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD
History
From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had
a great interest in automobiles He then established the Honda Technical Research Institute in
Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon
18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar
15
Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked
the beginning of Honda Motor Company which would grow a short time later to be the worlds
largest manufacturer of motorcycles by 1964
Philosophy
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 Hondas philosophy is based on the
companys guiding principle and advocates 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
Trusts
It is the contribution from each individual in the company that has made our company what it is
today and that which will take us into the future
The Three Joys
The joy of manufacturing high quality products
The joy of selling high quality products
The joy of buying high quality products
Motorcycles
16
Honda is the largest motorcycle manufacturer in Japan and has been since it started production in
1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006
this figure had reduced to around 550000 but was still higher than its three domestic competitors
During the 1960s when it was a small manufacturer Honda broke out of the Japanese
motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the
smaller manufacturer entering a new market already occupied by highly dominant competitors
the story of their market entry and their subsequent huge success in the US and around the
world has been the subject of some academic controversy Competing explanations have been
advanced to explain Hondarsquos strategy and the reasons for their success
The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)
was commissioned by the UK government to write a report explaining why and how the British
motorcycle industry had been out-competed by its Japanese competitors The report concluded
that the Japanese firms including Honda had sought a very high scale of production (they had
made a large number of motorbikes) in order to benefit from economies of scale and learning
curve effects It blamed the decline of the British motorcycle industry on the failure of British
managers to invest enough in their businesses to profit from economies of scale and scope
The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda
executives responsible for the firmrsquos entry into the US market As opposed to the tightly
focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that
their entry into the US market was a story of ldquomiscalculation serendipity and organizational
learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff
rather than any long term strategy For example Honda1048758s initial plan on entering the US was
to compete in large motorcycles around 300 cc It was only when the team found that the
scooters they were using to get themselves around their US base of San Francisco attracted
positive interest from consumers that they came up with the idea of selling the Super cub
Awards
17
2011
Indian Motorcycle of the Year 2011 (IMOTY)
JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India
Bike of the Year ndash CNBC TV18 Overdrive Awards 2011
Bike of the Year - BloombergUTV Autocar Award 2011
Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011
CB Twister
The Most Awarded Motorcycle of the Year - 2011
Bike of the Year - BS Motoring Award 2011
Bike of the Year upto 110CC ndash Bike India
Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011
Premium 100CC Motorcycle - Zigwheels Awards
Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards
CB Unicorn Dazzler
Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011
Sporty Motorcycle upto 180CC ndash Zigwheels Awards
Premium Motorcycle of the Year - Auto Bild Golden Steering Awards
VFR 1200F
Superbike of the Year ndash TopGear
Automotive Technology of the Year - Zigwheels Awards
Brand Honda
Most Reliable Brand - Advanced Technology Brand
by Auto India Best Brand Survey Awards 2011
Motorsport
18
Honoured for Promoting 2Wheeler racing in India
2010
Brand
Most Reliable Brand
- Advance Technology
- Quality
By Apollo Auto India Best Brand Awards 2010
Trusted Brand Award (Gold) for Two-wheeler Readers Digest
CB1000R
Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010
CB1000R
Import Bike of the Year - AutoCar Awards 2010
CBR1000RR
Fireblade
Performance Bike of the Year - CNBC TV 18 Overdrive Award
2009
CBF Stunner Bike of the Year - NDTV Profit Award 2009
Aviator Scooter of the Year - NDTV Profit Award 2009
Activa Scooter of the Year - ET ZigWheels Awards 2009
2008
Aviator Scooter of the Year - Zigwheelscom
CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom
Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto
Awards 2008
19
Brand
-Well Made Bike 2008
-Advanced Technology 2008
-Overall 2008
Honda
-Eco-Friendliness 2008
-Resale Value 2008
By Apollo Tyres - Auto India Best Brand Survey Awards 2008
2007
Enter no Best automobile brand of India 2007 (Planman Media)
Activa Best automobile brand of India 2007 (Planman Media)
2006
Shine TNS Voice of The customer Award 2006 (TNS)
2005
Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)
Unicorn TNS Voice of the Customer Award (TNS)
Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)
2004
Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive
Magazine)
2003
Dio Scooter
of the Year 2003 (BBC)
20
2002
Activa Scooter of the Year by Overdrive Magazine
2001
Activa Scooter of the Year 2001 (BS Motoring)
Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial
results for the fiscal fourth quarter and the fiscal year ended March 31 2010
Fourth Quarter Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth
quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of
JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda
Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an
increase of JPY 13895 from the corresponding period last year One Honda American
Depository Share represents one common share
Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the
quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the
same period in 2009 due primarily to increased revenue in all of the business segments and
currency translation effects Honda estimates that had the exchange rates remained the same
from the corresponding period in 2009 revenue for the quarter would have increased by
approximately 254
Consolidated operating income for the quarter amounted to JPY 960 billion (USD
1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to
increased profit attributable to increased revenue reduction in vehicle costs as a result of
increased production and decreased SGampA expenses
21
Consolidated income before income taxes and equity in income of affiliates for the quarter
amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the
same period in 2009
Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an
increase of JPY 211 billion from the corresponding period last year
Fiscal Year Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended
March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the
previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share
for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous
fiscal year
Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a
decrease of 143 from the previous fiscal year primarily due to unfavorable currency
translation effects and decreased revenue in the automobile business Honda estimates that had
the exchange rate remained the same as the previous fiscal year revenue for the period would
have decreased by approximately 75
Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an
increase of 918 due primarily to decreased SGampA expenses and RampD expenses and
continuing cost reduction efforts despite decreased profit attributable to decreased revenue the
unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of
reduced production
Consolidated income before income taxes and equity in income of affiliates for the period totaled
JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year
Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a
decrease of 58 from the previous fiscal year
22
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
II CUSTOMER SATISFACTION
Whether the buyer is satisfied after purchase depends upon the offer performance in relation to
the buyerrsquos expectations Customer satisfaction can be defined as -
Satisfaction is the level of a personrsquos felt state resulting from comparing a productrsquos perceived
performance in relation to the personrsquos expectationrsquos satisfaction level is a function of the
different between perceived performance and expectations some of the successful business firms
are aiming for total Customer Satisfaction which increase customer loyalty towards the product
or service offered by the firm
III IMPORTANCE OF CUSTOMER SATISFACTION
MISSION AND PURPOSE OF BUSINESS
The need to satisfy customer for achieving success in any commercial enterprise is so obvious
one wonder if there is any need to establish the importance of customer satisfaction However
one often finds that what should be obvious everyone also needs to be explained and establish
The income of commercial enterprise is derived from the payment received for the products and
services supplied to its external customers If there are no customers there is no income there
is no business In other words customers are the sole reason for the existence of commercial
establishments as the function is extremely important for the success of the organization the
senior management as well as the leaders of other departments or Divisions should also realize
the importance of customers to the organization and for its growth It is therefore no surprise
that Peter Drucket the renowned management guru said ldquo to satisfy the customer is the mission
and purpose of every business
7
IV CUSTOMER SATISFACTION PROCESS
Companies seeking to win in todayrsquos market must track their customerrsquos expectations perceived
company performance and customer satisfaction not only for them but for their competitions as
well
Brand loyalty and Customers satisfaction on the other hand are almost synonymous and their
impact on market share is statistically varifiable The relationship between market share
profitability as well as profitability and share holder value creation have been the subject of
considerable research over the years and the linkages have been proven many times
Customer satisfaction and Business Results
Licensing to Brands
Voice of the customer
Service Quality
Service Quality Customer Customer
Satisfaction Retention
Product Quality
Competitive
Innovation Growth Rate Market Share
Shareholder Profitability
Value Creation
8
It has been found that some customers are by native tendency more likely to move while others
are not Therefore even for some level of satisfaction or dissatisfaction some customer will
remain with the brand they are loyal to while others will switch Simply because they are more
prone to taking risks and more easily susceptible to the blandishments of competitors and
inherently more fickle This can be represented in four way matrix as given below
High 1 Safe Customer Habitual Switches
Satisfaction with 3 The Patient ones Highrise
Production
Low
Customer Classification by Satisfaction and Mobility
1 The Safe Customers are those who are satisfied and not likely to move
2 The habitual switches are happy and still likely to switch
3 The patient ones will stay on regardless but should not be taken for granted Their
satisfaction can be improved profitably as they are inherently less likely to switch
Todayrsquos customers are global and have high degree of need for congrition recognition approval
and respect So many companies believe that customer satisfaction can make the company more
profitable to some extent as
It as a more process aimed at enhancing customer share
It builds goodwill in the market which in turn generates additional traffic to the outlet
It is a real experience and a rich insight is to customerrsquos min to hit the bullrsquos eye with
carefully designed marketing strategies
A highly effective technique is to keep of buying habits intentions self image spending
patterns customer develops a sense of belonging in then and a soft corner for the
company itself
9
Higher customer retention index customer lifetime value loyalty and satisfaction level
increase transactions with the same customers again and again
A highly effective system of communication helps in developing positive attitude in
customer mind about the company its offerings
WHAT MARKETING SHOULD DO
Companies should establish a separate relationship market to prepare implement and
monitor their relationship marketing program
Company should not rely totally on technical people but employ relationship managers
who well equipped with marketing Communication and interpersonal skills
An integrated marketing system is a pre-requisite for building relationship with
customers
Companies should continuously search for value building approaches through a system of
quality management review process etc because only by exceeding customer
expectations marketers can build a value laden relationship with customers
As said before to satisfy a customer and to retain customer relationship marketing is
important
Methods of Tracking and Measuring Customer Satisfaction
The various methods generally adopted to track customer satisfaction are
a) Complaint amp Suggestion system
b) Customer satisfaction survey
c) Ghost Shopping
d) Lost Customer analysis
a) Complaint amp Suggestion system
A Customerrsquo centered organization would make it easy for its Customers to deliver suggestion
and complaints Some customer centered companies ndash P amp G General Electric Whirlpool
established ldquoCustomer hot linesrdquo with toll free 800 telephone numbers to maximize the ease with
10
which customers can enquire make suggestion or complaints Their information flows provides
these companies with many good ideas and enable them to act more rapidly to resolve problems
b) Customer satisfaction surveys
A company must not conclude that it can get a full picture of customer satisfaction and
dissatisfaction by simply relaying on a complaint and suggestion system Studies show that
customer are dissatisfied with one out of every four purchases and less than 5 of dissatisfied
customers will complaint customer may feel that their complaints are minor and they will be
made to feel stupid or that no remedy will be offered Most customers will by less or switch the
supplier than complaint The result is that the company has needlessly lost customers
Therefore companies canrsquot use complaint level as a measure of customer satisfaction
Responsive companies obtain a direct measure of customer satisfaction by conducting periodic
surveys They send questionnaire or make telephone calls to random sample of their recent
customers to find out how they feel about various aspects of the companyrsquos performance
Customer satisfaction can be measure in a number of ways It can be measured directly by
asking ldquoindicate how satisfied you are with servicerdquo on the following scale highly dissatisfied
indifferent satisfied highly satisfied (Directly reported satisfaction) Respondents can be asked
as well as to rate how much they expected of a certain attribute and also much They
experienced (desired dissatisfaction) still another method to ask respondents to list any problems
they had with the offer and to list any improvements they could suggest (Problem analysis)
finally companies could ask respondents to rate various elements of the offer in items of the
importance of the each of and how were the organization performed each element (important
performance ratings) Its last method helps the company to know if it is under performing on
important elements and over performing on relatively unimportant elements
C) Ghost shopping
Another useful way to gather a picture of customers satisfaction is to hire persons to pose as
potential buyers to report their finds on strong and weak points they experienced in buying the
companyrsquos and competitors products
11
d) Lost Customer Analysis
Companies should contact who stopped buying or who have switch to another supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customers
Some cautions in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out every element in detail customers would face huge questionnaire
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customer form being included in the survey
Some customers may want to express high dissatisfaction in order to receive more concession
E Lost Customer Analysis
Companies should contact who stopped buying or who have switch to other supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customer
Some caution in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out very element in detail customers would face huge questionnaire
12
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customers from being included in the survey Some customers may
want to express high dissatisfaction in order to receive more concession
Observation on customer satisfaction
1 Customer satisfaction will be lower in industries where the industry offers a
homogenous product to a heterogenous market On the other hand Industries that
supply a high quality homogenous product to homogenous market will register high
satisfaction
2 Customer satisfaction is lower an industries where repeal buyer faces high switching
costs They have to but from the supplier even through their satisfaction is low
3 Industries which depend upon repeat business generally create a higher level of
customer satisfaction
4 As the company increase its market share customer satisfaction call fall This is
because more customers with heterogeneous demands are drawn into buying a fairly
homogenous product
Post Product Behavior
After purchasing the product the customer will experience some level of satisfaction or
dissatisfaction The customer will engage in post purchase actions and product uses of interest to
the marketers The marketers job does not end when the product is bought but continue into the
post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos
product expectations the customer buts the product again and talks favorably or unfavorably
about the product to others
Customers from their expectations on the basis of received Messages from sellers friends and
other information sources If the seller exaggerates the benefits consumers will experience
disconfirmed expectations which lead to dissatisfaction The larger the gap between
expectations and performance the greater the consumerrsquos dissatisfaction
13
Post Purchase Action
The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent
behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing
the product main The satisfied customer will also tend to say good things about the brand to
others Marketers lay lsquoor best advertisements is the satisfied customer
A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the
dissolvance because a human being strives to establish internal harmony ldquo consistency or
congruity among his opinions knowledge and values
Marketers should be aware of the full range of ways consumers handle dissatisfaction
Consumers have a choice between taking and not taking any action If the former they can take
public action or private action If the former they can take public action or private action If
the former they can take public action or private action Public action includes complaining to
the company going to lawyer or complaining to other groups that might help the buyer gets
satisfaction Such as a business private or government agencies or the buyer might simply stop
buying the product or warn friends In all these cases the seller losses in having done a poor job
of satisfaction to the customer
System for complaints handling amp service recovery
Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases
about 25 of the time But surprising finding is that only about 5 complain The other 95
either feels that it is not worth the effort to complain or that they donrsquot know how to whom to
complain
Of the 5 of customers who complain only about 50 report a satisfactory problem resolution
Yet they need to resolve a customer problem in a satisfactory manner is critical where as on
average a satisfied customers tells three people about a good product experience dissatisfied
customer groups to people If each of them tells still other people the number of exposed to bad
work of mouth may grow exponentially
14
CHAPTER III Profile of Honda
HONDA MOTOR COMPANY LTD
Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds
largest manufacturer of internal combustion engines measured by volume producing more than
14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become
the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed
Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth
largest automobile manufacturer in the world
Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand
Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also
manufactures garden equipment marine engines personal watercraft and power generators
amongst others Since 1986 Honda has been involved with artificial intelligencerobotics
research and released their ASIMO robot in 2000 They have also ventured into Aero space with
the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet
scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD
History
From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had
a great interest in automobiles He then established the Honda Technical Research Institute in
Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon
18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar
15
Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked
the beginning of Honda Motor Company which would grow a short time later to be the worlds
largest manufacturer of motorcycles by 1964
Philosophy
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 Hondas philosophy is based on the
companys guiding principle and advocates 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
Trusts
It is the contribution from each individual in the company that has made our company what it is
today and that which will take us into the future
The Three Joys
The joy of manufacturing high quality products
The joy of selling high quality products
The joy of buying high quality products
Motorcycles
16
Honda is the largest motorcycle manufacturer in Japan and has been since it started production in
1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006
this figure had reduced to around 550000 but was still higher than its three domestic competitors
During the 1960s when it was a small manufacturer Honda broke out of the Japanese
motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the
smaller manufacturer entering a new market already occupied by highly dominant competitors
the story of their market entry and their subsequent huge success in the US and around the
world has been the subject of some academic controversy Competing explanations have been
advanced to explain Hondarsquos strategy and the reasons for their success
The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)
was commissioned by the UK government to write a report explaining why and how the British
motorcycle industry had been out-competed by its Japanese competitors The report concluded
that the Japanese firms including Honda had sought a very high scale of production (they had
made a large number of motorbikes) in order to benefit from economies of scale and learning
curve effects It blamed the decline of the British motorcycle industry on the failure of British
managers to invest enough in their businesses to profit from economies of scale and scope
The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda
executives responsible for the firmrsquos entry into the US market As opposed to the tightly
focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that
their entry into the US market was a story of ldquomiscalculation serendipity and organizational
learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff
rather than any long term strategy For example Honda1048758s initial plan on entering the US was
to compete in large motorcycles around 300 cc It was only when the team found that the
scooters they were using to get themselves around their US base of San Francisco attracted
positive interest from consumers that they came up with the idea of selling the Super cub
Awards
17
2011
Indian Motorcycle of the Year 2011 (IMOTY)
JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India
Bike of the Year ndash CNBC TV18 Overdrive Awards 2011
Bike of the Year - BloombergUTV Autocar Award 2011
Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011
CB Twister
The Most Awarded Motorcycle of the Year - 2011
Bike of the Year - BS Motoring Award 2011
Bike of the Year upto 110CC ndash Bike India
Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011
Premium 100CC Motorcycle - Zigwheels Awards
Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards
CB Unicorn Dazzler
Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011
Sporty Motorcycle upto 180CC ndash Zigwheels Awards
Premium Motorcycle of the Year - Auto Bild Golden Steering Awards
VFR 1200F
Superbike of the Year ndash TopGear
Automotive Technology of the Year - Zigwheels Awards
Brand Honda
Most Reliable Brand - Advanced Technology Brand
by Auto India Best Brand Survey Awards 2011
Motorsport
18
Honoured for Promoting 2Wheeler racing in India
2010
Brand
Most Reliable Brand
- Advance Technology
- Quality
By Apollo Auto India Best Brand Awards 2010
Trusted Brand Award (Gold) for Two-wheeler Readers Digest
CB1000R
Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010
CB1000R
Import Bike of the Year - AutoCar Awards 2010
CBR1000RR
Fireblade
Performance Bike of the Year - CNBC TV 18 Overdrive Award
2009
CBF Stunner Bike of the Year - NDTV Profit Award 2009
Aviator Scooter of the Year - NDTV Profit Award 2009
Activa Scooter of the Year - ET ZigWheels Awards 2009
2008
Aviator Scooter of the Year - Zigwheelscom
CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom
Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto
Awards 2008
19
Brand
-Well Made Bike 2008
-Advanced Technology 2008
-Overall 2008
Honda
-Eco-Friendliness 2008
-Resale Value 2008
By Apollo Tyres - Auto India Best Brand Survey Awards 2008
2007
Enter no Best automobile brand of India 2007 (Planman Media)
Activa Best automobile brand of India 2007 (Planman Media)
2006
Shine TNS Voice of The customer Award 2006 (TNS)
2005
Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)
Unicorn TNS Voice of the Customer Award (TNS)
Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)
2004
Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive
Magazine)
2003
Dio Scooter
of the Year 2003 (BBC)
20
2002
Activa Scooter of the Year by Overdrive Magazine
2001
Activa Scooter of the Year 2001 (BS Motoring)
Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial
results for the fiscal fourth quarter and the fiscal year ended March 31 2010
Fourth Quarter Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth
quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of
JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda
Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an
increase of JPY 13895 from the corresponding period last year One Honda American
Depository Share represents one common share
Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the
quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the
same period in 2009 due primarily to increased revenue in all of the business segments and
currency translation effects Honda estimates that had the exchange rates remained the same
from the corresponding period in 2009 revenue for the quarter would have increased by
approximately 254
Consolidated operating income for the quarter amounted to JPY 960 billion (USD
1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to
increased profit attributable to increased revenue reduction in vehicle costs as a result of
increased production and decreased SGampA expenses
21
Consolidated income before income taxes and equity in income of affiliates for the quarter
amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the
same period in 2009
Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an
increase of JPY 211 billion from the corresponding period last year
Fiscal Year Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended
March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the
previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share
for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous
fiscal year
Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a
decrease of 143 from the previous fiscal year primarily due to unfavorable currency
translation effects and decreased revenue in the automobile business Honda estimates that had
the exchange rate remained the same as the previous fiscal year revenue for the period would
have decreased by approximately 75
Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an
increase of 918 due primarily to decreased SGampA expenses and RampD expenses and
continuing cost reduction efforts despite decreased profit attributable to decreased revenue the
unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of
reduced production
Consolidated income before income taxes and equity in income of affiliates for the period totaled
JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year
Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a
decrease of 58 from the previous fiscal year
22
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
IV CUSTOMER SATISFACTION PROCESS
Companies seeking to win in todayrsquos market must track their customerrsquos expectations perceived
company performance and customer satisfaction not only for them but for their competitions as
well
Brand loyalty and Customers satisfaction on the other hand are almost synonymous and their
impact on market share is statistically varifiable The relationship between market share
profitability as well as profitability and share holder value creation have been the subject of
considerable research over the years and the linkages have been proven many times
Customer satisfaction and Business Results
Licensing to Brands
Voice of the customer
Service Quality
Service Quality Customer Customer
Satisfaction Retention
Product Quality
Competitive
Innovation Growth Rate Market Share
Shareholder Profitability
Value Creation
8
It has been found that some customers are by native tendency more likely to move while others
are not Therefore even for some level of satisfaction or dissatisfaction some customer will
remain with the brand they are loyal to while others will switch Simply because they are more
prone to taking risks and more easily susceptible to the blandishments of competitors and
inherently more fickle This can be represented in four way matrix as given below
High 1 Safe Customer Habitual Switches
Satisfaction with 3 The Patient ones Highrise
Production
Low
Customer Classification by Satisfaction and Mobility
1 The Safe Customers are those who are satisfied and not likely to move
2 The habitual switches are happy and still likely to switch
3 The patient ones will stay on regardless but should not be taken for granted Their
satisfaction can be improved profitably as they are inherently less likely to switch
Todayrsquos customers are global and have high degree of need for congrition recognition approval
and respect So many companies believe that customer satisfaction can make the company more
profitable to some extent as
It as a more process aimed at enhancing customer share
It builds goodwill in the market which in turn generates additional traffic to the outlet
It is a real experience and a rich insight is to customerrsquos min to hit the bullrsquos eye with
carefully designed marketing strategies
A highly effective technique is to keep of buying habits intentions self image spending
patterns customer develops a sense of belonging in then and a soft corner for the
company itself
9
Higher customer retention index customer lifetime value loyalty and satisfaction level
increase transactions with the same customers again and again
A highly effective system of communication helps in developing positive attitude in
customer mind about the company its offerings
WHAT MARKETING SHOULD DO
Companies should establish a separate relationship market to prepare implement and
monitor their relationship marketing program
Company should not rely totally on technical people but employ relationship managers
who well equipped with marketing Communication and interpersonal skills
An integrated marketing system is a pre-requisite for building relationship with
customers
Companies should continuously search for value building approaches through a system of
quality management review process etc because only by exceeding customer
expectations marketers can build a value laden relationship with customers
As said before to satisfy a customer and to retain customer relationship marketing is
important
Methods of Tracking and Measuring Customer Satisfaction
The various methods generally adopted to track customer satisfaction are
a) Complaint amp Suggestion system
b) Customer satisfaction survey
c) Ghost Shopping
d) Lost Customer analysis
a) Complaint amp Suggestion system
A Customerrsquo centered organization would make it easy for its Customers to deliver suggestion
and complaints Some customer centered companies ndash P amp G General Electric Whirlpool
established ldquoCustomer hot linesrdquo with toll free 800 telephone numbers to maximize the ease with
10
which customers can enquire make suggestion or complaints Their information flows provides
these companies with many good ideas and enable them to act more rapidly to resolve problems
b) Customer satisfaction surveys
A company must not conclude that it can get a full picture of customer satisfaction and
dissatisfaction by simply relaying on a complaint and suggestion system Studies show that
customer are dissatisfied with one out of every four purchases and less than 5 of dissatisfied
customers will complaint customer may feel that their complaints are minor and they will be
made to feel stupid or that no remedy will be offered Most customers will by less or switch the
supplier than complaint The result is that the company has needlessly lost customers
Therefore companies canrsquot use complaint level as a measure of customer satisfaction
Responsive companies obtain a direct measure of customer satisfaction by conducting periodic
surveys They send questionnaire or make telephone calls to random sample of their recent
customers to find out how they feel about various aspects of the companyrsquos performance
Customer satisfaction can be measure in a number of ways It can be measured directly by
asking ldquoindicate how satisfied you are with servicerdquo on the following scale highly dissatisfied
indifferent satisfied highly satisfied (Directly reported satisfaction) Respondents can be asked
as well as to rate how much they expected of a certain attribute and also much They
experienced (desired dissatisfaction) still another method to ask respondents to list any problems
they had with the offer and to list any improvements they could suggest (Problem analysis)
finally companies could ask respondents to rate various elements of the offer in items of the
importance of the each of and how were the organization performed each element (important
performance ratings) Its last method helps the company to know if it is under performing on
important elements and over performing on relatively unimportant elements
C) Ghost shopping
Another useful way to gather a picture of customers satisfaction is to hire persons to pose as
potential buyers to report their finds on strong and weak points they experienced in buying the
companyrsquos and competitors products
11
d) Lost Customer Analysis
Companies should contact who stopped buying or who have switch to another supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customers
Some cautions in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out every element in detail customers would face huge questionnaire
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customer form being included in the survey
Some customers may want to express high dissatisfaction in order to receive more concession
E Lost Customer Analysis
Companies should contact who stopped buying or who have switch to other supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customer
Some caution in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out very element in detail customers would face huge questionnaire
12
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customers from being included in the survey Some customers may
want to express high dissatisfaction in order to receive more concession
Observation on customer satisfaction
1 Customer satisfaction will be lower in industries where the industry offers a
homogenous product to a heterogenous market On the other hand Industries that
supply a high quality homogenous product to homogenous market will register high
satisfaction
2 Customer satisfaction is lower an industries where repeal buyer faces high switching
costs They have to but from the supplier even through their satisfaction is low
3 Industries which depend upon repeat business generally create a higher level of
customer satisfaction
4 As the company increase its market share customer satisfaction call fall This is
because more customers with heterogeneous demands are drawn into buying a fairly
homogenous product
Post Product Behavior
After purchasing the product the customer will experience some level of satisfaction or
dissatisfaction The customer will engage in post purchase actions and product uses of interest to
the marketers The marketers job does not end when the product is bought but continue into the
post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos
product expectations the customer buts the product again and talks favorably or unfavorably
about the product to others
Customers from their expectations on the basis of received Messages from sellers friends and
other information sources If the seller exaggerates the benefits consumers will experience
disconfirmed expectations which lead to dissatisfaction The larger the gap between
expectations and performance the greater the consumerrsquos dissatisfaction
13
Post Purchase Action
The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent
behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing
the product main The satisfied customer will also tend to say good things about the brand to
others Marketers lay lsquoor best advertisements is the satisfied customer
A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the
dissolvance because a human being strives to establish internal harmony ldquo consistency or
congruity among his opinions knowledge and values
Marketers should be aware of the full range of ways consumers handle dissatisfaction
Consumers have a choice between taking and not taking any action If the former they can take
public action or private action If the former they can take public action or private action If
the former they can take public action or private action Public action includes complaining to
the company going to lawyer or complaining to other groups that might help the buyer gets
satisfaction Such as a business private or government agencies or the buyer might simply stop
buying the product or warn friends In all these cases the seller losses in having done a poor job
of satisfaction to the customer
System for complaints handling amp service recovery
Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases
about 25 of the time But surprising finding is that only about 5 complain The other 95
either feels that it is not worth the effort to complain or that they donrsquot know how to whom to
complain
Of the 5 of customers who complain only about 50 report a satisfactory problem resolution
Yet they need to resolve a customer problem in a satisfactory manner is critical where as on
average a satisfied customers tells three people about a good product experience dissatisfied
customer groups to people If each of them tells still other people the number of exposed to bad
work of mouth may grow exponentially
14
CHAPTER III Profile of Honda
HONDA MOTOR COMPANY LTD
Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds
largest manufacturer of internal combustion engines measured by volume producing more than
14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become
the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed
Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth
largest automobile manufacturer in the world
Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand
Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also
manufactures garden equipment marine engines personal watercraft and power generators
amongst others Since 1986 Honda has been involved with artificial intelligencerobotics
research and released their ASIMO robot in 2000 They have also ventured into Aero space with
the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet
scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD
History
From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had
a great interest in automobiles He then established the Honda Technical Research Institute in
Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon
18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar
15
Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked
the beginning of Honda Motor Company which would grow a short time later to be the worlds
largest manufacturer of motorcycles by 1964
Philosophy
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 Hondas philosophy is based on the
companys guiding principle and advocates 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
Trusts
It is the contribution from each individual in the company that has made our company what it is
today and that which will take us into the future
The Three Joys
The joy of manufacturing high quality products
The joy of selling high quality products
The joy of buying high quality products
Motorcycles
16
Honda is the largest motorcycle manufacturer in Japan and has been since it started production in
1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006
this figure had reduced to around 550000 but was still higher than its three domestic competitors
During the 1960s when it was a small manufacturer Honda broke out of the Japanese
motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the
smaller manufacturer entering a new market already occupied by highly dominant competitors
the story of their market entry and their subsequent huge success in the US and around the
world has been the subject of some academic controversy Competing explanations have been
advanced to explain Hondarsquos strategy and the reasons for their success
The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)
was commissioned by the UK government to write a report explaining why and how the British
motorcycle industry had been out-competed by its Japanese competitors The report concluded
that the Japanese firms including Honda had sought a very high scale of production (they had
made a large number of motorbikes) in order to benefit from economies of scale and learning
curve effects It blamed the decline of the British motorcycle industry on the failure of British
managers to invest enough in their businesses to profit from economies of scale and scope
The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda
executives responsible for the firmrsquos entry into the US market As opposed to the tightly
focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that
their entry into the US market was a story of ldquomiscalculation serendipity and organizational
learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff
rather than any long term strategy For example Honda1048758s initial plan on entering the US was
to compete in large motorcycles around 300 cc It was only when the team found that the
scooters they were using to get themselves around their US base of San Francisco attracted
positive interest from consumers that they came up with the idea of selling the Super cub
Awards
17
2011
Indian Motorcycle of the Year 2011 (IMOTY)
JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India
Bike of the Year ndash CNBC TV18 Overdrive Awards 2011
Bike of the Year - BloombergUTV Autocar Award 2011
Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011
CB Twister
The Most Awarded Motorcycle of the Year - 2011
Bike of the Year - BS Motoring Award 2011
Bike of the Year upto 110CC ndash Bike India
Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011
Premium 100CC Motorcycle - Zigwheels Awards
Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards
CB Unicorn Dazzler
Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011
Sporty Motorcycle upto 180CC ndash Zigwheels Awards
Premium Motorcycle of the Year - Auto Bild Golden Steering Awards
VFR 1200F
Superbike of the Year ndash TopGear
Automotive Technology of the Year - Zigwheels Awards
Brand Honda
Most Reliable Brand - Advanced Technology Brand
by Auto India Best Brand Survey Awards 2011
Motorsport
18
Honoured for Promoting 2Wheeler racing in India
2010
Brand
Most Reliable Brand
- Advance Technology
- Quality
By Apollo Auto India Best Brand Awards 2010
Trusted Brand Award (Gold) for Two-wheeler Readers Digest
CB1000R
Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010
CB1000R
Import Bike of the Year - AutoCar Awards 2010
CBR1000RR
Fireblade
Performance Bike of the Year - CNBC TV 18 Overdrive Award
2009
CBF Stunner Bike of the Year - NDTV Profit Award 2009
Aviator Scooter of the Year - NDTV Profit Award 2009
Activa Scooter of the Year - ET ZigWheels Awards 2009
2008
Aviator Scooter of the Year - Zigwheelscom
CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom
Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto
Awards 2008
19
Brand
-Well Made Bike 2008
-Advanced Technology 2008
-Overall 2008
Honda
-Eco-Friendliness 2008
-Resale Value 2008
By Apollo Tyres - Auto India Best Brand Survey Awards 2008
2007
Enter no Best automobile brand of India 2007 (Planman Media)
Activa Best automobile brand of India 2007 (Planman Media)
2006
Shine TNS Voice of The customer Award 2006 (TNS)
2005
Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)
Unicorn TNS Voice of the Customer Award (TNS)
Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)
2004
Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive
Magazine)
2003
Dio Scooter
of the Year 2003 (BBC)
20
2002
Activa Scooter of the Year by Overdrive Magazine
2001
Activa Scooter of the Year 2001 (BS Motoring)
Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial
results for the fiscal fourth quarter and the fiscal year ended March 31 2010
Fourth Quarter Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth
quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of
JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda
Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an
increase of JPY 13895 from the corresponding period last year One Honda American
Depository Share represents one common share
Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the
quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the
same period in 2009 due primarily to increased revenue in all of the business segments and
currency translation effects Honda estimates that had the exchange rates remained the same
from the corresponding period in 2009 revenue for the quarter would have increased by
approximately 254
Consolidated operating income for the quarter amounted to JPY 960 billion (USD
1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to
increased profit attributable to increased revenue reduction in vehicle costs as a result of
increased production and decreased SGampA expenses
21
Consolidated income before income taxes and equity in income of affiliates for the quarter
amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the
same period in 2009
Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an
increase of JPY 211 billion from the corresponding period last year
Fiscal Year Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended
March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the
previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share
for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous
fiscal year
Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a
decrease of 143 from the previous fiscal year primarily due to unfavorable currency
translation effects and decreased revenue in the automobile business Honda estimates that had
the exchange rate remained the same as the previous fiscal year revenue for the period would
have decreased by approximately 75
Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an
increase of 918 due primarily to decreased SGampA expenses and RampD expenses and
continuing cost reduction efforts despite decreased profit attributable to decreased revenue the
unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of
reduced production
Consolidated income before income taxes and equity in income of affiliates for the period totaled
JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year
Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a
decrease of 58 from the previous fiscal year
22
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
It has been found that some customers are by native tendency more likely to move while others
are not Therefore even for some level of satisfaction or dissatisfaction some customer will
remain with the brand they are loyal to while others will switch Simply because they are more
prone to taking risks and more easily susceptible to the blandishments of competitors and
inherently more fickle This can be represented in four way matrix as given below
High 1 Safe Customer Habitual Switches
Satisfaction with 3 The Patient ones Highrise
Production
Low
Customer Classification by Satisfaction and Mobility
1 The Safe Customers are those who are satisfied and not likely to move
2 The habitual switches are happy and still likely to switch
3 The patient ones will stay on regardless but should not be taken for granted Their
satisfaction can be improved profitably as they are inherently less likely to switch
Todayrsquos customers are global and have high degree of need for congrition recognition approval
and respect So many companies believe that customer satisfaction can make the company more
profitable to some extent as
It as a more process aimed at enhancing customer share
It builds goodwill in the market which in turn generates additional traffic to the outlet
It is a real experience and a rich insight is to customerrsquos min to hit the bullrsquos eye with
carefully designed marketing strategies
A highly effective technique is to keep of buying habits intentions self image spending
patterns customer develops a sense of belonging in then and a soft corner for the
company itself
9
Higher customer retention index customer lifetime value loyalty and satisfaction level
increase transactions with the same customers again and again
A highly effective system of communication helps in developing positive attitude in
customer mind about the company its offerings
WHAT MARKETING SHOULD DO
Companies should establish a separate relationship market to prepare implement and
monitor their relationship marketing program
Company should not rely totally on technical people but employ relationship managers
who well equipped with marketing Communication and interpersonal skills
An integrated marketing system is a pre-requisite for building relationship with
customers
Companies should continuously search for value building approaches through a system of
quality management review process etc because only by exceeding customer
expectations marketers can build a value laden relationship with customers
As said before to satisfy a customer and to retain customer relationship marketing is
important
Methods of Tracking and Measuring Customer Satisfaction
The various methods generally adopted to track customer satisfaction are
a) Complaint amp Suggestion system
b) Customer satisfaction survey
c) Ghost Shopping
d) Lost Customer analysis
a) Complaint amp Suggestion system
A Customerrsquo centered organization would make it easy for its Customers to deliver suggestion
and complaints Some customer centered companies ndash P amp G General Electric Whirlpool
established ldquoCustomer hot linesrdquo with toll free 800 telephone numbers to maximize the ease with
10
which customers can enquire make suggestion or complaints Their information flows provides
these companies with many good ideas and enable them to act more rapidly to resolve problems
b) Customer satisfaction surveys
A company must not conclude that it can get a full picture of customer satisfaction and
dissatisfaction by simply relaying on a complaint and suggestion system Studies show that
customer are dissatisfied with one out of every four purchases and less than 5 of dissatisfied
customers will complaint customer may feel that their complaints are minor and they will be
made to feel stupid or that no remedy will be offered Most customers will by less or switch the
supplier than complaint The result is that the company has needlessly lost customers
Therefore companies canrsquot use complaint level as a measure of customer satisfaction
Responsive companies obtain a direct measure of customer satisfaction by conducting periodic
surveys They send questionnaire or make telephone calls to random sample of their recent
customers to find out how they feel about various aspects of the companyrsquos performance
Customer satisfaction can be measure in a number of ways It can be measured directly by
asking ldquoindicate how satisfied you are with servicerdquo on the following scale highly dissatisfied
indifferent satisfied highly satisfied (Directly reported satisfaction) Respondents can be asked
as well as to rate how much they expected of a certain attribute and also much They
experienced (desired dissatisfaction) still another method to ask respondents to list any problems
they had with the offer and to list any improvements they could suggest (Problem analysis)
finally companies could ask respondents to rate various elements of the offer in items of the
importance of the each of and how were the organization performed each element (important
performance ratings) Its last method helps the company to know if it is under performing on
important elements and over performing on relatively unimportant elements
C) Ghost shopping
Another useful way to gather a picture of customers satisfaction is to hire persons to pose as
potential buyers to report their finds on strong and weak points they experienced in buying the
companyrsquos and competitors products
11
d) Lost Customer Analysis
Companies should contact who stopped buying or who have switch to another supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customers
Some cautions in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out every element in detail customers would face huge questionnaire
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customer form being included in the survey
Some customers may want to express high dissatisfaction in order to receive more concession
E Lost Customer Analysis
Companies should contact who stopped buying or who have switch to other supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customer
Some caution in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out very element in detail customers would face huge questionnaire
12
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customers from being included in the survey Some customers may
want to express high dissatisfaction in order to receive more concession
Observation on customer satisfaction
1 Customer satisfaction will be lower in industries where the industry offers a
homogenous product to a heterogenous market On the other hand Industries that
supply a high quality homogenous product to homogenous market will register high
satisfaction
2 Customer satisfaction is lower an industries where repeal buyer faces high switching
costs They have to but from the supplier even through their satisfaction is low
3 Industries which depend upon repeat business generally create a higher level of
customer satisfaction
4 As the company increase its market share customer satisfaction call fall This is
because more customers with heterogeneous demands are drawn into buying a fairly
homogenous product
Post Product Behavior
After purchasing the product the customer will experience some level of satisfaction or
dissatisfaction The customer will engage in post purchase actions and product uses of interest to
the marketers The marketers job does not end when the product is bought but continue into the
post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos
product expectations the customer buts the product again and talks favorably or unfavorably
about the product to others
Customers from their expectations on the basis of received Messages from sellers friends and
other information sources If the seller exaggerates the benefits consumers will experience
disconfirmed expectations which lead to dissatisfaction The larger the gap between
expectations and performance the greater the consumerrsquos dissatisfaction
13
Post Purchase Action
The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent
behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing
the product main The satisfied customer will also tend to say good things about the brand to
others Marketers lay lsquoor best advertisements is the satisfied customer
A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the
dissolvance because a human being strives to establish internal harmony ldquo consistency or
congruity among his opinions knowledge and values
Marketers should be aware of the full range of ways consumers handle dissatisfaction
Consumers have a choice between taking and not taking any action If the former they can take
public action or private action If the former they can take public action or private action If
the former they can take public action or private action Public action includes complaining to
the company going to lawyer or complaining to other groups that might help the buyer gets
satisfaction Such as a business private or government agencies or the buyer might simply stop
buying the product or warn friends In all these cases the seller losses in having done a poor job
of satisfaction to the customer
System for complaints handling amp service recovery
Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases
about 25 of the time But surprising finding is that only about 5 complain The other 95
either feels that it is not worth the effort to complain or that they donrsquot know how to whom to
complain
Of the 5 of customers who complain only about 50 report a satisfactory problem resolution
Yet they need to resolve a customer problem in a satisfactory manner is critical where as on
average a satisfied customers tells three people about a good product experience dissatisfied
customer groups to people If each of them tells still other people the number of exposed to bad
work of mouth may grow exponentially
14
CHAPTER III Profile of Honda
HONDA MOTOR COMPANY LTD
Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds
largest manufacturer of internal combustion engines measured by volume producing more than
14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become
the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed
Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth
largest automobile manufacturer in the world
Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand
Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also
manufactures garden equipment marine engines personal watercraft and power generators
amongst others Since 1986 Honda has been involved with artificial intelligencerobotics
research and released their ASIMO robot in 2000 They have also ventured into Aero space with
the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet
scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD
History
From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had
a great interest in automobiles He then established the Honda Technical Research Institute in
Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon
18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar
15
Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked
the beginning of Honda Motor Company which would grow a short time later to be the worlds
largest manufacturer of motorcycles by 1964
Philosophy
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 Hondas philosophy is based on the
companys guiding principle and advocates 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
Trusts
It is the contribution from each individual in the company that has made our company what it is
today and that which will take us into the future
The Three Joys
The joy of manufacturing high quality products
The joy of selling high quality products
The joy of buying high quality products
Motorcycles
16
Honda is the largest motorcycle manufacturer in Japan and has been since it started production in
1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006
this figure had reduced to around 550000 but was still higher than its three domestic competitors
During the 1960s when it was a small manufacturer Honda broke out of the Japanese
motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the
smaller manufacturer entering a new market already occupied by highly dominant competitors
the story of their market entry and their subsequent huge success in the US and around the
world has been the subject of some academic controversy Competing explanations have been
advanced to explain Hondarsquos strategy and the reasons for their success
The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)
was commissioned by the UK government to write a report explaining why and how the British
motorcycle industry had been out-competed by its Japanese competitors The report concluded
that the Japanese firms including Honda had sought a very high scale of production (they had
made a large number of motorbikes) in order to benefit from economies of scale and learning
curve effects It blamed the decline of the British motorcycle industry on the failure of British
managers to invest enough in their businesses to profit from economies of scale and scope
The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda
executives responsible for the firmrsquos entry into the US market As opposed to the tightly
focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that
their entry into the US market was a story of ldquomiscalculation serendipity and organizational
learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff
rather than any long term strategy For example Honda1048758s initial plan on entering the US was
to compete in large motorcycles around 300 cc It was only when the team found that the
scooters they were using to get themselves around their US base of San Francisco attracted
positive interest from consumers that they came up with the idea of selling the Super cub
Awards
17
2011
Indian Motorcycle of the Year 2011 (IMOTY)
JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India
Bike of the Year ndash CNBC TV18 Overdrive Awards 2011
Bike of the Year - BloombergUTV Autocar Award 2011
Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011
CB Twister
The Most Awarded Motorcycle of the Year - 2011
Bike of the Year - BS Motoring Award 2011
Bike of the Year upto 110CC ndash Bike India
Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011
Premium 100CC Motorcycle - Zigwheels Awards
Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards
CB Unicorn Dazzler
Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011
Sporty Motorcycle upto 180CC ndash Zigwheels Awards
Premium Motorcycle of the Year - Auto Bild Golden Steering Awards
VFR 1200F
Superbike of the Year ndash TopGear
Automotive Technology of the Year - Zigwheels Awards
Brand Honda
Most Reliable Brand - Advanced Technology Brand
by Auto India Best Brand Survey Awards 2011
Motorsport
18
Honoured for Promoting 2Wheeler racing in India
2010
Brand
Most Reliable Brand
- Advance Technology
- Quality
By Apollo Auto India Best Brand Awards 2010
Trusted Brand Award (Gold) for Two-wheeler Readers Digest
CB1000R
Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010
CB1000R
Import Bike of the Year - AutoCar Awards 2010
CBR1000RR
Fireblade
Performance Bike of the Year - CNBC TV 18 Overdrive Award
2009
CBF Stunner Bike of the Year - NDTV Profit Award 2009
Aviator Scooter of the Year - NDTV Profit Award 2009
Activa Scooter of the Year - ET ZigWheels Awards 2009
2008
Aviator Scooter of the Year - Zigwheelscom
CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom
Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto
Awards 2008
19
Brand
-Well Made Bike 2008
-Advanced Technology 2008
-Overall 2008
Honda
-Eco-Friendliness 2008
-Resale Value 2008
By Apollo Tyres - Auto India Best Brand Survey Awards 2008
2007
Enter no Best automobile brand of India 2007 (Planman Media)
Activa Best automobile brand of India 2007 (Planman Media)
2006
Shine TNS Voice of The customer Award 2006 (TNS)
2005
Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)
Unicorn TNS Voice of the Customer Award (TNS)
Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)
2004
Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive
Magazine)
2003
Dio Scooter
of the Year 2003 (BBC)
20
2002
Activa Scooter of the Year by Overdrive Magazine
2001
Activa Scooter of the Year 2001 (BS Motoring)
Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial
results for the fiscal fourth quarter and the fiscal year ended March 31 2010
Fourth Quarter Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth
quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of
JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda
Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an
increase of JPY 13895 from the corresponding period last year One Honda American
Depository Share represents one common share
Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the
quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the
same period in 2009 due primarily to increased revenue in all of the business segments and
currency translation effects Honda estimates that had the exchange rates remained the same
from the corresponding period in 2009 revenue for the quarter would have increased by
approximately 254
Consolidated operating income for the quarter amounted to JPY 960 billion (USD
1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to
increased profit attributable to increased revenue reduction in vehicle costs as a result of
increased production and decreased SGampA expenses
21
Consolidated income before income taxes and equity in income of affiliates for the quarter
amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the
same period in 2009
Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an
increase of JPY 211 billion from the corresponding period last year
Fiscal Year Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended
March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the
previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share
for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous
fiscal year
Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a
decrease of 143 from the previous fiscal year primarily due to unfavorable currency
translation effects and decreased revenue in the automobile business Honda estimates that had
the exchange rate remained the same as the previous fiscal year revenue for the period would
have decreased by approximately 75
Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an
increase of 918 due primarily to decreased SGampA expenses and RampD expenses and
continuing cost reduction efforts despite decreased profit attributable to decreased revenue the
unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of
reduced production
Consolidated income before income taxes and equity in income of affiliates for the period totaled
JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year
Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a
decrease of 58 from the previous fiscal year
22
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
Higher customer retention index customer lifetime value loyalty and satisfaction level
increase transactions with the same customers again and again
A highly effective system of communication helps in developing positive attitude in
customer mind about the company its offerings
WHAT MARKETING SHOULD DO
Companies should establish a separate relationship market to prepare implement and
monitor their relationship marketing program
Company should not rely totally on technical people but employ relationship managers
who well equipped with marketing Communication and interpersonal skills
An integrated marketing system is a pre-requisite for building relationship with
customers
Companies should continuously search for value building approaches through a system of
quality management review process etc because only by exceeding customer
expectations marketers can build a value laden relationship with customers
As said before to satisfy a customer and to retain customer relationship marketing is
important
Methods of Tracking and Measuring Customer Satisfaction
The various methods generally adopted to track customer satisfaction are
a) Complaint amp Suggestion system
b) Customer satisfaction survey
c) Ghost Shopping
d) Lost Customer analysis
a) Complaint amp Suggestion system
A Customerrsquo centered organization would make it easy for its Customers to deliver suggestion
and complaints Some customer centered companies ndash P amp G General Electric Whirlpool
established ldquoCustomer hot linesrdquo with toll free 800 telephone numbers to maximize the ease with
10
which customers can enquire make suggestion or complaints Their information flows provides
these companies with many good ideas and enable them to act more rapidly to resolve problems
b) Customer satisfaction surveys
A company must not conclude that it can get a full picture of customer satisfaction and
dissatisfaction by simply relaying on a complaint and suggestion system Studies show that
customer are dissatisfied with one out of every four purchases and less than 5 of dissatisfied
customers will complaint customer may feel that their complaints are minor and they will be
made to feel stupid or that no remedy will be offered Most customers will by less or switch the
supplier than complaint The result is that the company has needlessly lost customers
Therefore companies canrsquot use complaint level as a measure of customer satisfaction
Responsive companies obtain a direct measure of customer satisfaction by conducting periodic
surveys They send questionnaire or make telephone calls to random sample of their recent
customers to find out how they feel about various aspects of the companyrsquos performance
Customer satisfaction can be measure in a number of ways It can be measured directly by
asking ldquoindicate how satisfied you are with servicerdquo on the following scale highly dissatisfied
indifferent satisfied highly satisfied (Directly reported satisfaction) Respondents can be asked
as well as to rate how much they expected of a certain attribute and also much They
experienced (desired dissatisfaction) still another method to ask respondents to list any problems
they had with the offer and to list any improvements they could suggest (Problem analysis)
finally companies could ask respondents to rate various elements of the offer in items of the
importance of the each of and how were the organization performed each element (important
performance ratings) Its last method helps the company to know if it is under performing on
important elements and over performing on relatively unimportant elements
C) Ghost shopping
Another useful way to gather a picture of customers satisfaction is to hire persons to pose as
potential buyers to report their finds on strong and weak points they experienced in buying the
companyrsquos and competitors products
11
d) Lost Customer Analysis
Companies should contact who stopped buying or who have switch to another supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customers
Some cautions in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out every element in detail customers would face huge questionnaire
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customer form being included in the survey
Some customers may want to express high dissatisfaction in order to receive more concession
E Lost Customer Analysis
Companies should contact who stopped buying or who have switch to other supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customer
Some caution in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out very element in detail customers would face huge questionnaire
12
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customers from being included in the survey Some customers may
want to express high dissatisfaction in order to receive more concession
Observation on customer satisfaction
1 Customer satisfaction will be lower in industries where the industry offers a
homogenous product to a heterogenous market On the other hand Industries that
supply a high quality homogenous product to homogenous market will register high
satisfaction
2 Customer satisfaction is lower an industries where repeal buyer faces high switching
costs They have to but from the supplier even through their satisfaction is low
3 Industries which depend upon repeat business generally create a higher level of
customer satisfaction
4 As the company increase its market share customer satisfaction call fall This is
because more customers with heterogeneous demands are drawn into buying a fairly
homogenous product
Post Product Behavior
After purchasing the product the customer will experience some level of satisfaction or
dissatisfaction The customer will engage in post purchase actions and product uses of interest to
the marketers The marketers job does not end when the product is bought but continue into the
post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos
product expectations the customer buts the product again and talks favorably or unfavorably
about the product to others
Customers from their expectations on the basis of received Messages from sellers friends and
other information sources If the seller exaggerates the benefits consumers will experience
disconfirmed expectations which lead to dissatisfaction The larger the gap between
expectations and performance the greater the consumerrsquos dissatisfaction
13
Post Purchase Action
The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent
behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing
the product main The satisfied customer will also tend to say good things about the brand to
others Marketers lay lsquoor best advertisements is the satisfied customer
A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the
dissolvance because a human being strives to establish internal harmony ldquo consistency or
congruity among his opinions knowledge and values
Marketers should be aware of the full range of ways consumers handle dissatisfaction
Consumers have a choice between taking and not taking any action If the former they can take
public action or private action If the former they can take public action or private action If
the former they can take public action or private action Public action includes complaining to
the company going to lawyer or complaining to other groups that might help the buyer gets
satisfaction Such as a business private or government agencies or the buyer might simply stop
buying the product or warn friends In all these cases the seller losses in having done a poor job
of satisfaction to the customer
System for complaints handling amp service recovery
Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases
about 25 of the time But surprising finding is that only about 5 complain The other 95
either feels that it is not worth the effort to complain or that they donrsquot know how to whom to
complain
Of the 5 of customers who complain only about 50 report a satisfactory problem resolution
Yet they need to resolve a customer problem in a satisfactory manner is critical where as on
average a satisfied customers tells three people about a good product experience dissatisfied
customer groups to people If each of them tells still other people the number of exposed to bad
work of mouth may grow exponentially
14
CHAPTER III Profile of Honda
HONDA MOTOR COMPANY LTD
Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds
largest manufacturer of internal combustion engines measured by volume producing more than
14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become
the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed
Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth
largest automobile manufacturer in the world
Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand
Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also
manufactures garden equipment marine engines personal watercraft and power generators
amongst others Since 1986 Honda has been involved with artificial intelligencerobotics
research and released their ASIMO robot in 2000 They have also ventured into Aero space with
the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet
scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD
History
From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had
a great interest in automobiles He then established the Honda Technical Research Institute in
Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon
18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar
15
Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked
the beginning of Honda Motor Company which would grow a short time later to be the worlds
largest manufacturer of motorcycles by 1964
Philosophy
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 Hondas philosophy is based on the
companys guiding principle and advocates 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
Trusts
It is the contribution from each individual in the company that has made our company what it is
today and that which will take us into the future
The Three Joys
The joy of manufacturing high quality products
The joy of selling high quality products
The joy of buying high quality products
Motorcycles
16
Honda is the largest motorcycle manufacturer in Japan and has been since it started production in
1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006
this figure had reduced to around 550000 but was still higher than its three domestic competitors
During the 1960s when it was a small manufacturer Honda broke out of the Japanese
motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the
smaller manufacturer entering a new market already occupied by highly dominant competitors
the story of their market entry and their subsequent huge success in the US and around the
world has been the subject of some academic controversy Competing explanations have been
advanced to explain Hondarsquos strategy and the reasons for their success
The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)
was commissioned by the UK government to write a report explaining why and how the British
motorcycle industry had been out-competed by its Japanese competitors The report concluded
that the Japanese firms including Honda had sought a very high scale of production (they had
made a large number of motorbikes) in order to benefit from economies of scale and learning
curve effects It blamed the decline of the British motorcycle industry on the failure of British
managers to invest enough in their businesses to profit from economies of scale and scope
The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda
executives responsible for the firmrsquos entry into the US market As opposed to the tightly
focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that
their entry into the US market was a story of ldquomiscalculation serendipity and organizational
learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff
rather than any long term strategy For example Honda1048758s initial plan on entering the US was
to compete in large motorcycles around 300 cc It was only when the team found that the
scooters they were using to get themselves around their US base of San Francisco attracted
positive interest from consumers that they came up with the idea of selling the Super cub
Awards
17
2011
Indian Motorcycle of the Year 2011 (IMOTY)
JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India
Bike of the Year ndash CNBC TV18 Overdrive Awards 2011
Bike of the Year - BloombergUTV Autocar Award 2011
Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011
CB Twister
The Most Awarded Motorcycle of the Year - 2011
Bike of the Year - BS Motoring Award 2011
Bike of the Year upto 110CC ndash Bike India
Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011
Premium 100CC Motorcycle - Zigwheels Awards
Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards
CB Unicorn Dazzler
Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011
Sporty Motorcycle upto 180CC ndash Zigwheels Awards
Premium Motorcycle of the Year - Auto Bild Golden Steering Awards
VFR 1200F
Superbike of the Year ndash TopGear
Automotive Technology of the Year - Zigwheels Awards
Brand Honda
Most Reliable Brand - Advanced Technology Brand
by Auto India Best Brand Survey Awards 2011
Motorsport
18
Honoured for Promoting 2Wheeler racing in India
2010
Brand
Most Reliable Brand
- Advance Technology
- Quality
By Apollo Auto India Best Brand Awards 2010
Trusted Brand Award (Gold) for Two-wheeler Readers Digest
CB1000R
Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010
CB1000R
Import Bike of the Year - AutoCar Awards 2010
CBR1000RR
Fireblade
Performance Bike of the Year - CNBC TV 18 Overdrive Award
2009
CBF Stunner Bike of the Year - NDTV Profit Award 2009
Aviator Scooter of the Year - NDTV Profit Award 2009
Activa Scooter of the Year - ET ZigWheels Awards 2009
2008
Aviator Scooter of the Year - Zigwheelscom
CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom
Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto
Awards 2008
19
Brand
-Well Made Bike 2008
-Advanced Technology 2008
-Overall 2008
Honda
-Eco-Friendliness 2008
-Resale Value 2008
By Apollo Tyres - Auto India Best Brand Survey Awards 2008
2007
Enter no Best automobile brand of India 2007 (Planman Media)
Activa Best automobile brand of India 2007 (Planman Media)
2006
Shine TNS Voice of The customer Award 2006 (TNS)
2005
Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)
Unicorn TNS Voice of the Customer Award (TNS)
Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)
2004
Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive
Magazine)
2003
Dio Scooter
of the Year 2003 (BBC)
20
2002
Activa Scooter of the Year by Overdrive Magazine
2001
Activa Scooter of the Year 2001 (BS Motoring)
Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial
results for the fiscal fourth quarter and the fiscal year ended March 31 2010
Fourth Quarter Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth
quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of
JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda
Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an
increase of JPY 13895 from the corresponding period last year One Honda American
Depository Share represents one common share
Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the
quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the
same period in 2009 due primarily to increased revenue in all of the business segments and
currency translation effects Honda estimates that had the exchange rates remained the same
from the corresponding period in 2009 revenue for the quarter would have increased by
approximately 254
Consolidated operating income for the quarter amounted to JPY 960 billion (USD
1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to
increased profit attributable to increased revenue reduction in vehicle costs as a result of
increased production and decreased SGampA expenses
21
Consolidated income before income taxes and equity in income of affiliates for the quarter
amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the
same period in 2009
Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an
increase of JPY 211 billion from the corresponding period last year
Fiscal Year Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended
March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the
previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share
for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous
fiscal year
Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a
decrease of 143 from the previous fiscal year primarily due to unfavorable currency
translation effects and decreased revenue in the automobile business Honda estimates that had
the exchange rate remained the same as the previous fiscal year revenue for the period would
have decreased by approximately 75
Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an
increase of 918 due primarily to decreased SGampA expenses and RampD expenses and
continuing cost reduction efforts despite decreased profit attributable to decreased revenue the
unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of
reduced production
Consolidated income before income taxes and equity in income of affiliates for the period totaled
JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year
Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a
decrease of 58 from the previous fiscal year
22
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
which customers can enquire make suggestion or complaints Their information flows provides
these companies with many good ideas and enable them to act more rapidly to resolve problems
b) Customer satisfaction surveys
A company must not conclude that it can get a full picture of customer satisfaction and
dissatisfaction by simply relaying on a complaint and suggestion system Studies show that
customer are dissatisfied with one out of every four purchases and less than 5 of dissatisfied
customers will complaint customer may feel that their complaints are minor and they will be
made to feel stupid or that no remedy will be offered Most customers will by less or switch the
supplier than complaint The result is that the company has needlessly lost customers
Therefore companies canrsquot use complaint level as a measure of customer satisfaction
Responsive companies obtain a direct measure of customer satisfaction by conducting periodic
surveys They send questionnaire or make telephone calls to random sample of their recent
customers to find out how they feel about various aspects of the companyrsquos performance
Customer satisfaction can be measure in a number of ways It can be measured directly by
asking ldquoindicate how satisfied you are with servicerdquo on the following scale highly dissatisfied
indifferent satisfied highly satisfied (Directly reported satisfaction) Respondents can be asked
as well as to rate how much they expected of a certain attribute and also much They
experienced (desired dissatisfaction) still another method to ask respondents to list any problems
they had with the offer and to list any improvements they could suggest (Problem analysis)
finally companies could ask respondents to rate various elements of the offer in items of the
importance of the each of and how were the organization performed each element (important
performance ratings) Its last method helps the company to know if it is under performing on
important elements and over performing on relatively unimportant elements
C) Ghost shopping
Another useful way to gather a picture of customers satisfaction is to hire persons to pose as
potential buyers to report their finds on strong and weak points they experienced in buying the
companyrsquos and competitors products
11
d) Lost Customer Analysis
Companies should contact who stopped buying or who have switch to another supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customers
Some cautions in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out every element in detail customers would face huge questionnaire
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customer form being included in the survey
Some customers may want to express high dissatisfaction in order to receive more concession
E Lost Customer Analysis
Companies should contact who stopped buying or who have switch to other supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customer
Some caution in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out very element in detail customers would face huge questionnaire
12
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customers from being included in the survey Some customers may
want to express high dissatisfaction in order to receive more concession
Observation on customer satisfaction
1 Customer satisfaction will be lower in industries where the industry offers a
homogenous product to a heterogenous market On the other hand Industries that
supply a high quality homogenous product to homogenous market will register high
satisfaction
2 Customer satisfaction is lower an industries where repeal buyer faces high switching
costs They have to but from the supplier even through their satisfaction is low
3 Industries which depend upon repeat business generally create a higher level of
customer satisfaction
4 As the company increase its market share customer satisfaction call fall This is
because more customers with heterogeneous demands are drawn into buying a fairly
homogenous product
Post Product Behavior
After purchasing the product the customer will experience some level of satisfaction or
dissatisfaction The customer will engage in post purchase actions and product uses of interest to
the marketers The marketers job does not end when the product is bought but continue into the
post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos
product expectations the customer buts the product again and talks favorably or unfavorably
about the product to others
Customers from their expectations on the basis of received Messages from sellers friends and
other information sources If the seller exaggerates the benefits consumers will experience
disconfirmed expectations which lead to dissatisfaction The larger the gap between
expectations and performance the greater the consumerrsquos dissatisfaction
13
Post Purchase Action
The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent
behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing
the product main The satisfied customer will also tend to say good things about the brand to
others Marketers lay lsquoor best advertisements is the satisfied customer
A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the
dissolvance because a human being strives to establish internal harmony ldquo consistency or
congruity among his opinions knowledge and values
Marketers should be aware of the full range of ways consumers handle dissatisfaction
Consumers have a choice between taking and not taking any action If the former they can take
public action or private action If the former they can take public action or private action If
the former they can take public action or private action Public action includes complaining to
the company going to lawyer or complaining to other groups that might help the buyer gets
satisfaction Such as a business private or government agencies or the buyer might simply stop
buying the product or warn friends In all these cases the seller losses in having done a poor job
of satisfaction to the customer
System for complaints handling amp service recovery
Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases
about 25 of the time But surprising finding is that only about 5 complain The other 95
either feels that it is not worth the effort to complain or that they donrsquot know how to whom to
complain
Of the 5 of customers who complain only about 50 report a satisfactory problem resolution
Yet they need to resolve a customer problem in a satisfactory manner is critical where as on
average a satisfied customers tells three people about a good product experience dissatisfied
customer groups to people If each of them tells still other people the number of exposed to bad
work of mouth may grow exponentially
14
CHAPTER III Profile of Honda
HONDA MOTOR COMPANY LTD
Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds
largest manufacturer of internal combustion engines measured by volume producing more than
14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become
the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed
Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth
largest automobile manufacturer in the world
Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand
Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also
manufactures garden equipment marine engines personal watercraft and power generators
amongst others Since 1986 Honda has been involved with artificial intelligencerobotics
research and released their ASIMO robot in 2000 They have also ventured into Aero space with
the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet
scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD
History
From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had
a great interest in automobiles He then established the Honda Technical Research Institute in
Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon
18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar
15
Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked
the beginning of Honda Motor Company which would grow a short time later to be the worlds
largest manufacturer of motorcycles by 1964
Philosophy
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 Hondas philosophy is based on the
companys guiding principle and advocates 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
Trusts
It is the contribution from each individual in the company that has made our company what it is
today and that which will take us into the future
The Three Joys
The joy of manufacturing high quality products
The joy of selling high quality products
The joy of buying high quality products
Motorcycles
16
Honda is the largest motorcycle manufacturer in Japan and has been since it started production in
1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006
this figure had reduced to around 550000 but was still higher than its three domestic competitors
During the 1960s when it was a small manufacturer Honda broke out of the Japanese
motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the
smaller manufacturer entering a new market already occupied by highly dominant competitors
the story of their market entry and their subsequent huge success in the US and around the
world has been the subject of some academic controversy Competing explanations have been
advanced to explain Hondarsquos strategy and the reasons for their success
The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)
was commissioned by the UK government to write a report explaining why and how the British
motorcycle industry had been out-competed by its Japanese competitors The report concluded
that the Japanese firms including Honda had sought a very high scale of production (they had
made a large number of motorbikes) in order to benefit from economies of scale and learning
curve effects It blamed the decline of the British motorcycle industry on the failure of British
managers to invest enough in their businesses to profit from economies of scale and scope
The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda
executives responsible for the firmrsquos entry into the US market As opposed to the tightly
focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that
their entry into the US market was a story of ldquomiscalculation serendipity and organizational
learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff
rather than any long term strategy For example Honda1048758s initial plan on entering the US was
to compete in large motorcycles around 300 cc It was only when the team found that the
scooters they were using to get themselves around their US base of San Francisco attracted
positive interest from consumers that they came up with the idea of selling the Super cub
Awards
17
2011
Indian Motorcycle of the Year 2011 (IMOTY)
JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India
Bike of the Year ndash CNBC TV18 Overdrive Awards 2011
Bike of the Year - BloombergUTV Autocar Award 2011
Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011
CB Twister
The Most Awarded Motorcycle of the Year - 2011
Bike of the Year - BS Motoring Award 2011
Bike of the Year upto 110CC ndash Bike India
Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011
Premium 100CC Motorcycle - Zigwheels Awards
Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards
CB Unicorn Dazzler
Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011
Sporty Motorcycle upto 180CC ndash Zigwheels Awards
Premium Motorcycle of the Year - Auto Bild Golden Steering Awards
VFR 1200F
Superbike of the Year ndash TopGear
Automotive Technology of the Year - Zigwheels Awards
Brand Honda
Most Reliable Brand - Advanced Technology Brand
by Auto India Best Brand Survey Awards 2011
Motorsport
18
Honoured for Promoting 2Wheeler racing in India
2010
Brand
Most Reliable Brand
- Advance Technology
- Quality
By Apollo Auto India Best Brand Awards 2010
Trusted Brand Award (Gold) for Two-wheeler Readers Digest
CB1000R
Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010
CB1000R
Import Bike of the Year - AutoCar Awards 2010
CBR1000RR
Fireblade
Performance Bike of the Year - CNBC TV 18 Overdrive Award
2009
CBF Stunner Bike of the Year - NDTV Profit Award 2009
Aviator Scooter of the Year - NDTV Profit Award 2009
Activa Scooter of the Year - ET ZigWheels Awards 2009
2008
Aviator Scooter of the Year - Zigwheelscom
CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom
Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto
Awards 2008
19
Brand
-Well Made Bike 2008
-Advanced Technology 2008
-Overall 2008
Honda
-Eco-Friendliness 2008
-Resale Value 2008
By Apollo Tyres - Auto India Best Brand Survey Awards 2008
2007
Enter no Best automobile brand of India 2007 (Planman Media)
Activa Best automobile brand of India 2007 (Planman Media)
2006
Shine TNS Voice of The customer Award 2006 (TNS)
2005
Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)
Unicorn TNS Voice of the Customer Award (TNS)
Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)
2004
Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive
Magazine)
2003
Dio Scooter
of the Year 2003 (BBC)
20
2002
Activa Scooter of the Year by Overdrive Magazine
2001
Activa Scooter of the Year 2001 (BS Motoring)
Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial
results for the fiscal fourth quarter and the fiscal year ended March 31 2010
Fourth Quarter Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth
quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of
JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda
Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an
increase of JPY 13895 from the corresponding period last year One Honda American
Depository Share represents one common share
Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the
quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the
same period in 2009 due primarily to increased revenue in all of the business segments and
currency translation effects Honda estimates that had the exchange rates remained the same
from the corresponding period in 2009 revenue for the quarter would have increased by
approximately 254
Consolidated operating income for the quarter amounted to JPY 960 billion (USD
1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to
increased profit attributable to increased revenue reduction in vehicle costs as a result of
increased production and decreased SGampA expenses
21
Consolidated income before income taxes and equity in income of affiliates for the quarter
amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the
same period in 2009
Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an
increase of JPY 211 billion from the corresponding period last year
Fiscal Year Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended
March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the
previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share
for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous
fiscal year
Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a
decrease of 143 from the previous fiscal year primarily due to unfavorable currency
translation effects and decreased revenue in the automobile business Honda estimates that had
the exchange rate remained the same as the previous fiscal year revenue for the period would
have decreased by approximately 75
Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an
increase of 918 due primarily to decreased SGampA expenses and RampD expenses and
continuing cost reduction efforts despite decreased profit attributable to decreased revenue the
unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of
reduced production
Consolidated income before income taxes and equity in income of affiliates for the period totaled
JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year
Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a
decrease of 58 from the previous fiscal year
22
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
d) Lost Customer Analysis
Companies should contact who stopped buying or who have switch to another supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customers
Some cautions in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out every element in detail customers would face huge questionnaire
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customer form being included in the survey
Some customers may want to express high dissatisfaction in order to receive more concession
E Lost Customer Analysis
Companies should contact who stopped buying or who have switch to other supplier to learn
why this happened When IBM loses a customer they amount through effort or learn where they
failed is their price too high their service deficient their products unreliable and so on Not only
it is important to conduct exit interviews but also to monitor the customer loss rate which if its
increasing clearly indicated that the company is failing to satisfy customer
Some caution in Measuring Customers Satisfaction
When customers rate their satisfaction with an element of the companyrsquos performance say
delivery we need to recognize that customers will vary in how they define food delivery it
could mean early delivery on time delivery order completeness and so on Yet if the company
had to sell out very element in detail customers would face huge questionnaire
12
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customers from being included in the survey Some customers may
want to express high dissatisfaction in order to receive more concession
Observation on customer satisfaction
1 Customer satisfaction will be lower in industries where the industry offers a
homogenous product to a heterogenous market On the other hand Industries that
supply a high quality homogenous product to homogenous market will register high
satisfaction
2 Customer satisfaction is lower an industries where repeal buyer faces high switching
costs They have to but from the supplier even through their satisfaction is low
3 Industries which depend upon repeat business generally create a higher level of
customer satisfaction
4 As the company increase its market share customer satisfaction call fall This is
because more customers with heterogeneous demands are drawn into buying a fairly
homogenous product
Post Product Behavior
After purchasing the product the customer will experience some level of satisfaction or
dissatisfaction The customer will engage in post purchase actions and product uses of interest to
the marketers The marketers job does not end when the product is bought but continue into the
post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos
product expectations the customer buts the product again and talks favorably or unfavorably
about the product to others
Customers from their expectations on the basis of received Messages from sellers friends and
other information sources If the seller exaggerates the benefits consumers will experience
disconfirmed expectations which lead to dissatisfaction The larger the gap between
expectations and performance the greater the consumerrsquos dissatisfaction
13
Post Purchase Action
The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent
behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing
the product main The satisfied customer will also tend to say good things about the brand to
others Marketers lay lsquoor best advertisements is the satisfied customer
A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the
dissolvance because a human being strives to establish internal harmony ldquo consistency or
congruity among his opinions knowledge and values
Marketers should be aware of the full range of ways consumers handle dissatisfaction
Consumers have a choice between taking and not taking any action If the former they can take
public action or private action If the former they can take public action or private action If
the former they can take public action or private action Public action includes complaining to
the company going to lawyer or complaining to other groups that might help the buyer gets
satisfaction Such as a business private or government agencies or the buyer might simply stop
buying the product or warn friends In all these cases the seller losses in having done a poor job
of satisfaction to the customer
System for complaints handling amp service recovery
Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases
about 25 of the time But surprising finding is that only about 5 complain The other 95
either feels that it is not worth the effort to complain or that they donrsquot know how to whom to
complain
Of the 5 of customers who complain only about 50 report a satisfactory problem resolution
Yet they need to resolve a customer problem in a satisfactory manner is critical where as on
average a satisfied customers tells three people about a good product experience dissatisfied
customer groups to people If each of them tells still other people the number of exposed to bad
work of mouth may grow exponentially
14
CHAPTER III Profile of Honda
HONDA MOTOR COMPANY LTD
Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds
largest manufacturer of internal combustion engines measured by volume producing more than
14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become
the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed
Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth
largest automobile manufacturer in the world
Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand
Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also
manufactures garden equipment marine engines personal watercraft and power generators
amongst others Since 1986 Honda has been involved with artificial intelligencerobotics
research and released their ASIMO robot in 2000 They have also ventured into Aero space with
the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet
scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD
History
From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had
a great interest in automobiles He then established the Honda Technical Research Institute in
Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon
18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar
15
Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked
the beginning of Honda Motor Company which would grow a short time later to be the worlds
largest manufacturer of motorcycles by 1964
Philosophy
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 Hondas philosophy is based on the
companys guiding principle and advocates 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
Trusts
It is the contribution from each individual in the company that has made our company what it is
today and that which will take us into the future
The Three Joys
The joy of manufacturing high quality products
The joy of selling high quality products
The joy of buying high quality products
Motorcycles
16
Honda is the largest motorcycle manufacturer in Japan and has been since it started production in
1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006
this figure had reduced to around 550000 but was still higher than its three domestic competitors
During the 1960s when it was a small manufacturer Honda broke out of the Japanese
motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the
smaller manufacturer entering a new market already occupied by highly dominant competitors
the story of their market entry and their subsequent huge success in the US and around the
world has been the subject of some academic controversy Competing explanations have been
advanced to explain Hondarsquos strategy and the reasons for their success
The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)
was commissioned by the UK government to write a report explaining why and how the British
motorcycle industry had been out-competed by its Japanese competitors The report concluded
that the Japanese firms including Honda had sought a very high scale of production (they had
made a large number of motorbikes) in order to benefit from economies of scale and learning
curve effects It blamed the decline of the British motorcycle industry on the failure of British
managers to invest enough in their businesses to profit from economies of scale and scope
The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda
executives responsible for the firmrsquos entry into the US market As opposed to the tightly
focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that
their entry into the US market was a story of ldquomiscalculation serendipity and organizational
learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff
rather than any long term strategy For example Honda1048758s initial plan on entering the US was
to compete in large motorcycles around 300 cc It was only when the team found that the
scooters they were using to get themselves around their US base of San Francisco attracted
positive interest from consumers that they came up with the idea of selling the Super cub
Awards
17
2011
Indian Motorcycle of the Year 2011 (IMOTY)
JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India
Bike of the Year ndash CNBC TV18 Overdrive Awards 2011
Bike of the Year - BloombergUTV Autocar Award 2011
Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011
CB Twister
The Most Awarded Motorcycle of the Year - 2011
Bike of the Year - BS Motoring Award 2011
Bike of the Year upto 110CC ndash Bike India
Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011
Premium 100CC Motorcycle - Zigwheels Awards
Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards
CB Unicorn Dazzler
Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011
Sporty Motorcycle upto 180CC ndash Zigwheels Awards
Premium Motorcycle of the Year - Auto Bild Golden Steering Awards
VFR 1200F
Superbike of the Year ndash TopGear
Automotive Technology of the Year - Zigwheels Awards
Brand Honda
Most Reliable Brand - Advanced Technology Brand
by Auto India Best Brand Survey Awards 2011
Motorsport
18
Honoured for Promoting 2Wheeler racing in India
2010
Brand
Most Reliable Brand
- Advance Technology
- Quality
By Apollo Auto India Best Brand Awards 2010
Trusted Brand Award (Gold) for Two-wheeler Readers Digest
CB1000R
Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010
CB1000R
Import Bike of the Year - AutoCar Awards 2010
CBR1000RR
Fireblade
Performance Bike of the Year - CNBC TV 18 Overdrive Award
2009
CBF Stunner Bike of the Year - NDTV Profit Award 2009
Aviator Scooter of the Year - NDTV Profit Award 2009
Activa Scooter of the Year - ET ZigWheels Awards 2009
2008
Aviator Scooter of the Year - Zigwheelscom
CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom
Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto
Awards 2008
19
Brand
-Well Made Bike 2008
-Advanced Technology 2008
-Overall 2008
Honda
-Eco-Friendliness 2008
-Resale Value 2008
By Apollo Tyres - Auto India Best Brand Survey Awards 2008
2007
Enter no Best automobile brand of India 2007 (Planman Media)
Activa Best automobile brand of India 2007 (Planman Media)
2006
Shine TNS Voice of The customer Award 2006 (TNS)
2005
Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)
Unicorn TNS Voice of the Customer Award (TNS)
Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)
2004
Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive
Magazine)
2003
Dio Scooter
of the Year 2003 (BBC)
20
2002
Activa Scooter of the Year by Overdrive Magazine
2001
Activa Scooter of the Year 2001 (BS Motoring)
Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial
results for the fiscal fourth quarter and the fiscal year ended March 31 2010
Fourth Quarter Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth
quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of
JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda
Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an
increase of JPY 13895 from the corresponding period last year One Honda American
Depository Share represents one common share
Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the
quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the
same period in 2009 due primarily to increased revenue in all of the business segments and
currency translation effects Honda estimates that had the exchange rates remained the same
from the corresponding period in 2009 revenue for the quarter would have increased by
approximately 254
Consolidated operating income for the quarter amounted to JPY 960 billion (USD
1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to
increased profit attributable to increased revenue reduction in vehicle costs as a result of
increased production and decreased SGampA expenses
21
Consolidated income before income taxes and equity in income of affiliates for the quarter
amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the
same period in 2009
Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an
increase of JPY 211 billion from the corresponding period last year
Fiscal Year Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended
March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the
previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share
for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous
fiscal year
Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a
decrease of 143 from the previous fiscal year primarily due to unfavorable currency
translation effects and decreased revenue in the automobile business Honda estimates that had
the exchange rate remained the same as the previous fiscal year revenue for the period would
have decreased by approximately 75
Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an
increase of 918 due primarily to decreased SGampA expenses and RampD expenses and
continuing cost reduction efforts despite decreased profit attributable to decreased revenue the
unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of
reduced production
Consolidated income before income taxes and equity in income of affiliates for the period totaled
JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year
Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a
decrease of 58 from the previous fiscal year
22
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
Companies should also note that managers and sales persons could manipulate their ratings on
customer satisfaction They can be especially nice to customers just before the survey They can
also try excluding unhappy customers from being included in the survey Some customers may
want to express high dissatisfaction in order to receive more concession
Observation on customer satisfaction
1 Customer satisfaction will be lower in industries where the industry offers a
homogenous product to a heterogenous market On the other hand Industries that
supply a high quality homogenous product to homogenous market will register high
satisfaction
2 Customer satisfaction is lower an industries where repeal buyer faces high switching
costs They have to but from the supplier even through their satisfaction is low
3 Industries which depend upon repeat business generally create a higher level of
customer satisfaction
4 As the company increase its market share customer satisfaction call fall This is
because more customers with heterogeneous demands are drawn into buying a fairly
homogenous product
Post Product Behavior
After purchasing the product the customer will experience some level of satisfaction or
dissatisfaction The customer will engage in post purchase actions and product uses of interest to
the marketers The marketers job does not end when the product is bought but continue into the
post purchase period The buyerrsquos satisfaction is function of the closeness between the buyerrsquos
product expectations the customer buts the product again and talks favorably or unfavorably
about the product to others
Customers from their expectations on the basis of received Messages from sellers friends and
other information sources If the seller exaggerates the benefits consumers will experience
disconfirmed expectations which lead to dissatisfaction The larger the gap between
expectations and performance the greater the consumerrsquos dissatisfaction
13
Post Purchase Action
The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent
behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing
the product main The satisfied customer will also tend to say good things about the brand to
others Marketers lay lsquoor best advertisements is the satisfied customer
A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the
dissolvance because a human being strives to establish internal harmony ldquo consistency or
congruity among his opinions knowledge and values
Marketers should be aware of the full range of ways consumers handle dissatisfaction
Consumers have a choice between taking and not taking any action If the former they can take
public action or private action If the former they can take public action or private action If
the former they can take public action or private action Public action includes complaining to
the company going to lawyer or complaining to other groups that might help the buyer gets
satisfaction Such as a business private or government agencies or the buyer might simply stop
buying the product or warn friends In all these cases the seller losses in having done a poor job
of satisfaction to the customer
System for complaints handling amp service recovery
Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases
about 25 of the time But surprising finding is that only about 5 complain The other 95
either feels that it is not worth the effort to complain or that they donrsquot know how to whom to
complain
Of the 5 of customers who complain only about 50 report a satisfactory problem resolution
Yet they need to resolve a customer problem in a satisfactory manner is critical where as on
average a satisfied customers tells three people about a good product experience dissatisfied
customer groups to people If each of them tells still other people the number of exposed to bad
work of mouth may grow exponentially
14
CHAPTER III Profile of Honda
HONDA MOTOR COMPANY LTD
Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds
largest manufacturer of internal combustion engines measured by volume producing more than
14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become
the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed
Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth
largest automobile manufacturer in the world
Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand
Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also
manufactures garden equipment marine engines personal watercraft and power generators
amongst others Since 1986 Honda has been involved with artificial intelligencerobotics
research and released their ASIMO robot in 2000 They have also ventured into Aero space with
the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet
scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD
History
From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had
a great interest in automobiles He then established the Honda Technical Research Institute in
Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon
18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar
15
Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked
the beginning of Honda Motor Company which would grow a short time later to be the worlds
largest manufacturer of motorcycles by 1964
Philosophy
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 Hondas philosophy is based on the
companys guiding principle and advocates 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
Trusts
It is the contribution from each individual in the company that has made our company what it is
today and that which will take us into the future
The Three Joys
The joy of manufacturing high quality products
The joy of selling high quality products
The joy of buying high quality products
Motorcycles
16
Honda is the largest motorcycle manufacturer in Japan and has been since it started production in
1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006
this figure had reduced to around 550000 but was still higher than its three domestic competitors
During the 1960s when it was a small manufacturer Honda broke out of the Japanese
motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the
smaller manufacturer entering a new market already occupied by highly dominant competitors
the story of their market entry and their subsequent huge success in the US and around the
world has been the subject of some academic controversy Competing explanations have been
advanced to explain Hondarsquos strategy and the reasons for their success
The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)
was commissioned by the UK government to write a report explaining why and how the British
motorcycle industry had been out-competed by its Japanese competitors The report concluded
that the Japanese firms including Honda had sought a very high scale of production (they had
made a large number of motorbikes) in order to benefit from economies of scale and learning
curve effects It blamed the decline of the British motorcycle industry on the failure of British
managers to invest enough in their businesses to profit from economies of scale and scope
The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda
executives responsible for the firmrsquos entry into the US market As opposed to the tightly
focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that
their entry into the US market was a story of ldquomiscalculation serendipity and organizational
learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff
rather than any long term strategy For example Honda1048758s initial plan on entering the US was
to compete in large motorcycles around 300 cc It was only when the team found that the
scooters they were using to get themselves around their US base of San Francisco attracted
positive interest from consumers that they came up with the idea of selling the Super cub
Awards
17
2011
Indian Motorcycle of the Year 2011 (IMOTY)
JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India
Bike of the Year ndash CNBC TV18 Overdrive Awards 2011
Bike of the Year - BloombergUTV Autocar Award 2011
Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011
CB Twister
The Most Awarded Motorcycle of the Year - 2011
Bike of the Year - BS Motoring Award 2011
Bike of the Year upto 110CC ndash Bike India
Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011
Premium 100CC Motorcycle - Zigwheels Awards
Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards
CB Unicorn Dazzler
Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011
Sporty Motorcycle upto 180CC ndash Zigwheels Awards
Premium Motorcycle of the Year - Auto Bild Golden Steering Awards
VFR 1200F
Superbike of the Year ndash TopGear
Automotive Technology of the Year - Zigwheels Awards
Brand Honda
Most Reliable Brand - Advanced Technology Brand
by Auto India Best Brand Survey Awards 2011
Motorsport
18
Honoured for Promoting 2Wheeler racing in India
2010
Brand
Most Reliable Brand
- Advance Technology
- Quality
By Apollo Auto India Best Brand Awards 2010
Trusted Brand Award (Gold) for Two-wheeler Readers Digest
CB1000R
Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010
CB1000R
Import Bike of the Year - AutoCar Awards 2010
CBR1000RR
Fireblade
Performance Bike of the Year - CNBC TV 18 Overdrive Award
2009
CBF Stunner Bike of the Year - NDTV Profit Award 2009
Aviator Scooter of the Year - NDTV Profit Award 2009
Activa Scooter of the Year - ET ZigWheels Awards 2009
2008
Aviator Scooter of the Year - Zigwheelscom
CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom
Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto
Awards 2008
19
Brand
-Well Made Bike 2008
-Advanced Technology 2008
-Overall 2008
Honda
-Eco-Friendliness 2008
-Resale Value 2008
By Apollo Tyres - Auto India Best Brand Survey Awards 2008
2007
Enter no Best automobile brand of India 2007 (Planman Media)
Activa Best automobile brand of India 2007 (Planman Media)
2006
Shine TNS Voice of The customer Award 2006 (TNS)
2005
Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)
Unicorn TNS Voice of the Customer Award (TNS)
Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)
2004
Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive
Magazine)
2003
Dio Scooter
of the Year 2003 (BBC)
20
2002
Activa Scooter of the Year by Overdrive Magazine
2001
Activa Scooter of the Year 2001 (BS Motoring)
Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial
results for the fiscal fourth quarter and the fiscal year ended March 31 2010
Fourth Quarter Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth
quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of
JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda
Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an
increase of JPY 13895 from the corresponding period last year One Honda American
Depository Share represents one common share
Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the
quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the
same period in 2009 due primarily to increased revenue in all of the business segments and
currency translation effects Honda estimates that had the exchange rates remained the same
from the corresponding period in 2009 revenue for the quarter would have increased by
approximately 254
Consolidated operating income for the quarter amounted to JPY 960 billion (USD
1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to
increased profit attributable to increased revenue reduction in vehicle costs as a result of
increased production and decreased SGampA expenses
21
Consolidated income before income taxes and equity in income of affiliates for the quarter
amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the
same period in 2009
Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an
increase of JPY 211 billion from the corresponding period last year
Fiscal Year Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended
March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the
previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share
for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous
fiscal year
Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a
decrease of 143 from the previous fiscal year primarily due to unfavorable currency
translation effects and decreased revenue in the automobile business Honda estimates that had
the exchange rate remained the same as the previous fiscal year revenue for the period would
have decreased by approximately 75
Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an
increase of 918 due primarily to decreased SGampA expenses and RampD expenses and
continuing cost reduction efforts despite decreased profit attributable to decreased revenue the
unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of
reduced production
Consolidated income before income taxes and equity in income of affiliates for the period totaled
JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year
Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a
decrease of 58 from the previous fiscal year
22
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
Post Purchase Action
The Customerrsquos satisfaction or dissatisfaction with the product will influence subsequent
behavior If the customer is satisfied he or she will exhibit a higher probability of purchasing
the product main The satisfied customer will also tend to say good things about the brand to
others Marketers lay lsquoor best advertisements is the satisfied customer
A dissatisfied consumer responds differently The dissatisfied consumer will try to reduce the
dissolvance because a human being strives to establish internal harmony ldquo consistency or
congruity among his opinions knowledge and values
Marketers should be aware of the full range of ways consumers handle dissatisfaction
Consumers have a choice between taking and not taking any action If the former they can take
public action or private action If the former they can take public action or private action If
the former they can take public action or private action Public action includes complaining to
the company going to lawyer or complaining to other groups that might help the buyer gets
satisfaction Such as a business private or government agencies or the buyer might simply stop
buying the product or warn friends In all these cases the seller losses in having done a poor job
of satisfaction to the customer
System for complaints handling amp service recovery
Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases
about 25 of the time But surprising finding is that only about 5 complain The other 95
either feels that it is not worth the effort to complain or that they donrsquot know how to whom to
complain
Of the 5 of customers who complain only about 50 report a satisfactory problem resolution
Yet they need to resolve a customer problem in a satisfactory manner is critical where as on
average a satisfied customers tells three people about a good product experience dissatisfied
customer groups to people If each of them tells still other people the number of exposed to bad
work of mouth may grow exponentially
14
CHAPTER III Profile of Honda
HONDA MOTOR COMPANY LTD
Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds
largest manufacturer of internal combustion engines measured by volume producing more than
14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become
the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed
Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth
largest automobile manufacturer in the world
Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand
Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also
manufactures garden equipment marine engines personal watercraft and power generators
amongst others Since 1986 Honda has been involved with artificial intelligencerobotics
research and released their ASIMO robot in 2000 They have also ventured into Aero space with
the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet
scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD
History
From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had
a great interest in automobiles He then established the Honda Technical Research Institute in
Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon
18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar
15
Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked
the beginning of Honda Motor Company which would grow a short time later to be the worlds
largest manufacturer of motorcycles by 1964
Philosophy
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 Hondas philosophy is based on the
companys guiding principle and advocates 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
Trusts
It is the contribution from each individual in the company that has made our company what it is
today and that which will take us into the future
The Three Joys
The joy of manufacturing high quality products
The joy of selling high quality products
The joy of buying high quality products
Motorcycles
16
Honda is the largest motorcycle manufacturer in Japan and has been since it started production in
1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006
this figure had reduced to around 550000 but was still higher than its three domestic competitors
During the 1960s when it was a small manufacturer Honda broke out of the Japanese
motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the
smaller manufacturer entering a new market already occupied by highly dominant competitors
the story of their market entry and their subsequent huge success in the US and around the
world has been the subject of some academic controversy Competing explanations have been
advanced to explain Hondarsquos strategy and the reasons for their success
The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)
was commissioned by the UK government to write a report explaining why and how the British
motorcycle industry had been out-competed by its Japanese competitors The report concluded
that the Japanese firms including Honda had sought a very high scale of production (they had
made a large number of motorbikes) in order to benefit from economies of scale and learning
curve effects It blamed the decline of the British motorcycle industry on the failure of British
managers to invest enough in their businesses to profit from economies of scale and scope
The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda
executives responsible for the firmrsquos entry into the US market As opposed to the tightly
focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that
their entry into the US market was a story of ldquomiscalculation serendipity and organizational
learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff
rather than any long term strategy For example Honda1048758s initial plan on entering the US was
to compete in large motorcycles around 300 cc It was only when the team found that the
scooters they were using to get themselves around their US base of San Francisco attracted
positive interest from consumers that they came up with the idea of selling the Super cub
Awards
17
2011
Indian Motorcycle of the Year 2011 (IMOTY)
JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India
Bike of the Year ndash CNBC TV18 Overdrive Awards 2011
Bike of the Year - BloombergUTV Autocar Award 2011
Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011
CB Twister
The Most Awarded Motorcycle of the Year - 2011
Bike of the Year - BS Motoring Award 2011
Bike of the Year upto 110CC ndash Bike India
Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011
Premium 100CC Motorcycle - Zigwheels Awards
Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards
CB Unicorn Dazzler
Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011
Sporty Motorcycle upto 180CC ndash Zigwheels Awards
Premium Motorcycle of the Year - Auto Bild Golden Steering Awards
VFR 1200F
Superbike of the Year ndash TopGear
Automotive Technology of the Year - Zigwheels Awards
Brand Honda
Most Reliable Brand - Advanced Technology Brand
by Auto India Best Brand Survey Awards 2011
Motorsport
18
Honoured for Promoting 2Wheeler racing in India
2010
Brand
Most Reliable Brand
- Advance Technology
- Quality
By Apollo Auto India Best Brand Awards 2010
Trusted Brand Award (Gold) for Two-wheeler Readers Digest
CB1000R
Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010
CB1000R
Import Bike of the Year - AutoCar Awards 2010
CBR1000RR
Fireblade
Performance Bike of the Year - CNBC TV 18 Overdrive Award
2009
CBF Stunner Bike of the Year - NDTV Profit Award 2009
Aviator Scooter of the Year - NDTV Profit Award 2009
Activa Scooter of the Year - ET ZigWheels Awards 2009
2008
Aviator Scooter of the Year - Zigwheelscom
CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom
Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto
Awards 2008
19
Brand
-Well Made Bike 2008
-Advanced Technology 2008
-Overall 2008
Honda
-Eco-Friendliness 2008
-Resale Value 2008
By Apollo Tyres - Auto India Best Brand Survey Awards 2008
2007
Enter no Best automobile brand of India 2007 (Planman Media)
Activa Best automobile brand of India 2007 (Planman Media)
2006
Shine TNS Voice of The customer Award 2006 (TNS)
2005
Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)
Unicorn TNS Voice of the Customer Award (TNS)
Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)
2004
Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive
Magazine)
2003
Dio Scooter
of the Year 2003 (BBC)
20
2002
Activa Scooter of the Year by Overdrive Magazine
2001
Activa Scooter of the Year 2001 (BS Motoring)
Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial
results for the fiscal fourth quarter and the fiscal year ended March 31 2010
Fourth Quarter Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth
quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of
JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda
Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an
increase of JPY 13895 from the corresponding period last year One Honda American
Depository Share represents one common share
Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the
quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the
same period in 2009 due primarily to increased revenue in all of the business segments and
currency translation effects Honda estimates that had the exchange rates remained the same
from the corresponding period in 2009 revenue for the quarter would have increased by
approximately 254
Consolidated operating income for the quarter amounted to JPY 960 billion (USD
1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to
increased profit attributable to increased revenue reduction in vehicle costs as a result of
increased production and decreased SGampA expenses
21
Consolidated income before income taxes and equity in income of affiliates for the quarter
amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the
same period in 2009
Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an
increase of JPY 211 billion from the corresponding period last year
Fiscal Year Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended
March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the
previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share
for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous
fiscal year
Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a
decrease of 143 from the previous fiscal year primarily due to unfavorable currency
translation effects and decreased revenue in the automobile business Honda estimates that had
the exchange rate remained the same as the previous fiscal year revenue for the period would
have decreased by approximately 75
Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an
increase of 918 due primarily to decreased SGampA expenses and RampD expenses and
continuing cost reduction efforts despite decreased profit attributable to decreased revenue the
unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of
reduced production
Consolidated income before income taxes and equity in income of affiliates for the period totaled
JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year
Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a
decrease of 58 from the previous fiscal year
22
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
CHAPTER III Profile of Honda
HONDA MOTOR COMPANY LTD
Honda has been the worlds largest motorcycle manufacturer since 1959 as well as the worlds
largest manufacturer of internal combustion engines measured by volume producing more than
14 million internal combustion engines each year Honda surpassed Nissan in 2001 to become
the second-largest Japanese automobile manufacturer As of August 2008 Honda surpassed
Chrysler as the fourth largest automobile manufacturer in the United States Honda is the sixth
largest automobile manufacturer in the world
Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand
Acura in 1986 Aside from their core automobile and motorcycle businesses Honda also
manufactures garden equipment marine engines personal watercraft and power generators
amongst others Since 1986 Honda has been involved with artificial intelligencerobotics
research and released their ASIMO robot in 2000 They have also ventured into Aero space with
the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet
scheduled to be released in 2011 Honda spends about 5 of its revenues into RampD
History
From a young age Hondas founder Soichiro Honda (November 17 1906 -August 5 1991) had
a great interest in automobiles He then established the Honda Technical Research Institute in
Hamamatsu Japan to develop and produce small 2-cycle motorbike engines Calling upon
18000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar
15
Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked
the beginning of Honda Motor Company which would grow a short time later to be the worlds
largest manufacturer of motorcycles by 1964
Philosophy
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 Hondas philosophy is based on the
companys guiding principle and advocates 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
Trusts
It is the contribution from each individual in the company that has made our company what it is
today and that which will take us into the future
The Three Joys
The joy of manufacturing high quality products
The joy of selling high quality products
The joy of buying high quality products
Motorcycles
16
Honda is the largest motorcycle manufacturer in Japan and has been since it started production in
1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006
this figure had reduced to around 550000 but was still higher than its three domestic competitors
During the 1960s when it was a small manufacturer Honda broke out of the Japanese
motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the
smaller manufacturer entering a new market already occupied by highly dominant competitors
the story of their market entry and their subsequent huge success in the US and around the
world has been the subject of some academic controversy Competing explanations have been
advanced to explain Hondarsquos strategy and the reasons for their success
The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)
was commissioned by the UK government to write a report explaining why and how the British
motorcycle industry had been out-competed by its Japanese competitors The report concluded
that the Japanese firms including Honda had sought a very high scale of production (they had
made a large number of motorbikes) in order to benefit from economies of scale and learning
curve effects It blamed the decline of the British motorcycle industry on the failure of British
managers to invest enough in their businesses to profit from economies of scale and scope
The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda
executives responsible for the firmrsquos entry into the US market As opposed to the tightly
focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that
their entry into the US market was a story of ldquomiscalculation serendipity and organizational
learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff
rather than any long term strategy For example Honda1048758s initial plan on entering the US was
to compete in large motorcycles around 300 cc It was only when the team found that the
scooters they were using to get themselves around their US base of San Francisco attracted
positive interest from consumers that they came up with the idea of selling the Super cub
Awards
17
2011
Indian Motorcycle of the Year 2011 (IMOTY)
JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India
Bike of the Year ndash CNBC TV18 Overdrive Awards 2011
Bike of the Year - BloombergUTV Autocar Award 2011
Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011
CB Twister
The Most Awarded Motorcycle of the Year - 2011
Bike of the Year - BS Motoring Award 2011
Bike of the Year upto 110CC ndash Bike India
Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011
Premium 100CC Motorcycle - Zigwheels Awards
Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards
CB Unicorn Dazzler
Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011
Sporty Motorcycle upto 180CC ndash Zigwheels Awards
Premium Motorcycle of the Year - Auto Bild Golden Steering Awards
VFR 1200F
Superbike of the Year ndash TopGear
Automotive Technology of the Year - Zigwheels Awards
Brand Honda
Most Reliable Brand - Advanced Technology Brand
by Auto India Best Brand Survey Awards 2011
Motorsport
18
Honoured for Promoting 2Wheeler racing in India
2010
Brand
Most Reliable Brand
- Advance Technology
- Quality
By Apollo Auto India Best Brand Awards 2010
Trusted Brand Award (Gold) for Two-wheeler Readers Digest
CB1000R
Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010
CB1000R
Import Bike of the Year - AutoCar Awards 2010
CBR1000RR
Fireblade
Performance Bike of the Year - CNBC TV 18 Overdrive Award
2009
CBF Stunner Bike of the Year - NDTV Profit Award 2009
Aviator Scooter of the Year - NDTV Profit Award 2009
Activa Scooter of the Year - ET ZigWheels Awards 2009
2008
Aviator Scooter of the Year - Zigwheelscom
CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom
Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto
Awards 2008
19
Brand
-Well Made Bike 2008
-Advanced Technology 2008
-Overall 2008
Honda
-Eco-Friendliness 2008
-Resale Value 2008
By Apollo Tyres - Auto India Best Brand Survey Awards 2008
2007
Enter no Best automobile brand of India 2007 (Planman Media)
Activa Best automobile brand of India 2007 (Planman Media)
2006
Shine TNS Voice of The customer Award 2006 (TNS)
2005
Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)
Unicorn TNS Voice of the Customer Award (TNS)
Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)
2004
Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive
Magazine)
2003
Dio Scooter
of the Year 2003 (BBC)
20
2002
Activa Scooter of the Year by Overdrive Magazine
2001
Activa Scooter of the Year 2001 (BS Motoring)
Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial
results for the fiscal fourth quarter and the fiscal year ended March 31 2010
Fourth Quarter Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth
quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of
JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda
Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an
increase of JPY 13895 from the corresponding period last year One Honda American
Depository Share represents one common share
Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the
quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the
same period in 2009 due primarily to increased revenue in all of the business segments and
currency translation effects Honda estimates that had the exchange rates remained the same
from the corresponding period in 2009 revenue for the quarter would have increased by
approximately 254
Consolidated operating income for the quarter amounted to JPY 960 billion (USD
1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to
increased profit attributable to increased revenue reduction in vehicle costs as a result of
increased production and decreased SGampA expenses
21
Consolidated income before income taxes and equity in income of affiliates for the quarter
amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the
same period in 2009
Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an
increase of JPY 211 billion from the corresponding period last year
Fiscal Year Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended
March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the
previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share
for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous
fiscal year
Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a
decrease of 143 from the previous fiscal year primarily due to unfavorable currency
translation effects and decreased revenue in the automobile business Honda estimates that had
the exchange rate remained the same as the previous fiscal year revenue for the period would
have decreased by approximately 75
Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an
increase of 918 due primarily to decreased SGampA expenses and RampD expenses and
continuing cost reduction efforts despite decreased profit attributable to decreased revenue the
unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of
reduced production
Consolidated income before income taxes and equity in income of affiliates for the period totaled
JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year
Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a
decrease of 58 from the previous fiscal year
22
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
Soichiro received enough capital to engineer his first motorcycle the Honda Cub This marked
the beginning of Honda Motor Company which would grow a short time later to be the worlds
largest manufacturer of motorcycles by 1964
Philosophy
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 Hondas philosophy is based on the
companys guiding principle and advocates 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
Trusts
It is the contribution from each individual in the company that has made our company what it is
today and that which will take us into the future
The Three Joys
The joy of manufacturing high quality products
The joy of selling high quality products
The joy of buying high quality products
Motorcycles
16
Honda is the largest motorcycle manufacturer in Japan and has been since it started production in
1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006
this figure had reduced to around 550000 but was still higher than its three domestic competitors
During the 1960s when it was a small manufacturer Honda broke out of the Japanese
motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the
smaller manufacturer entering a new market already occupied by highly dominant competitors
the story of their market entry and their subsequent huge success in the US and around the
world has been the subject of some academic controversy Competing explanations have been
advanced to explain Hondarsquos strategy and the reasons for their success
The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)
was commissioned by the UK government to write a report explaining why and how the British
motorcycle industry had been out-competed by its Japanese competitors The report concluded
that the Japanese firms including Honda had sought a very high scale of production (they had
made a large number of motorbikes) in order to benefit from economies of scale and learning
curve effects It blamed the decline of the British motorcycle industry on the failure of British
managers to invest enough in their businesses to profit from economies of scale and scope
The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda
executives responsible for the firmrsquos entry into the US market As opposed to the tightly
focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that
their entry into the US market was a story of ldquomiscalculation serendipity and organizational
learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff
rather than any long term strategy For example Honda1048758s initial plan on entering the US was
to compete in large motorcycles around 300 cc It was only when the team found that the
scooters they were using to get themselves around their US base of San Francisco attracted
positive interest from consumers that they came up with the idea of selling the Super cub
Awards
17
2011
Indian Motorcycle of the Year 2011 (IMOTY)
JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India
Bike of the Year ndash CNBC TV18 Overdrive Awards 2011
Bike of the Year - BloombergUTV Autocar Award 2011
Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011
CB Twister
The Most Awarded Motorcycle of the Year - 2011
Bike of the Year - BS Motoring Award 2011
Bike of the Year upto 110CC ndash Bike India
Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011
Premium 100CC Motorcycle - Zigwheels Awards
Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards
CB Unicorn Dazzler
Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011
Sporty Motorcycle upto 180CC ndash Zigwheels Awards
Premium Motorcycle of the Year - Auto Bild Golden Steering Awards
VFR 1200F
Superbike of the Year ndash TopGear
Automotive Technology of the Year - Zigwheels Awards
Brand Honda
Most Reliable Brand - Advanced Technology Brand
by Auto India Best Brand Survey Awards 2011
Motorsport
18
Honoured for Promoting 2Wheeler racing in India
2010
Brand
Most Reliable Brand
- Advance Technology
- Quality
By Apollo Auto India Best Brand Awards 2010
Trusted Brand Award (Gold) for Two-wheeler Readers Digest
CB1000R
Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010
CB1000R
Import Bike of the Year - AutoCar Awards 2010
CBR1000RR
Fireblade
Performance Bike of the Year - CNBC TV 18 Overdrive Award
2009
CBF Stunner Bike of the Year - NDTV Profit Award 2009
Aviator Scooter of the Year - NDTV Profit Award 2009
Activa Scooter of the Year - ET ZigWheels Awards 2009
2008
Aviator Scooter of the Year - Zigwheelscom
CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom
Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto
Awards 2008
19
Brand
-Well Made Bike 2008
-Advanced Technology 2008
-Overall 2008
Honda
-Eco-Friendliness 2008
-Resale Value 2008
By Apollo Tyres - Auto India Best Brand Survey Awards 2008
2007
Enter no Best automobile brand of India 2007 (Planman Media)
Activa Best automobile brand of India 2007 (Planman Media)
2006
Shine TNS Voice of The customer Award 2006 (TNS)
2005
Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)
Unicorn TNS Voice of the Customer Award (TNS)
Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)
2004
Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive
Magazine)
2003
Dio Scooter
of the Year 2003 (BBC)
20
2002
Activa Scooter of the Year by Overdrive Magazine
2001
Activa Scooter of the Year 2001 (BS Motoring)
Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial
results for the fiscal fourth quarter and the fiscal year ended March 31 2010
Fourth Quarter Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth
quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of
JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda
Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an
increase of JPY 13895 from the corresponding period last year One Honda American
Depository Share represents one common share
Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the
quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the
same period in 2009 due primarily to increased revenue in all of the business segments and
currency translation effects Honda estimates that had the exchange rates remained the same
from the corresponding period in 2009 revenue for the quarter would have increased by
approximately 254
Consolidated operating income for the quarter amounted to JPY 960 billion (USD
1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to
increased profit attributable to increased revenue reduction in vehicle costs as a result of
increased production and decreased SGampA expenses
21
Consolidated income before income taxes and equity in income of affiliates for the quarter
amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the
same period in 2009
Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an
increase of JPY 211 billion from the corresponding period last year
Fiscal Year Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended
March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the
previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share
for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous
fiscal year
Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a
decrease of 143 from the previous fiscal year primarily due to unfavorable currency
translation effects and decreased revenue in the automobile business Honda estimates that had
the exchange rate remained the same as the previous fiscal year revenue for the period would
have decreased by approximately 75
Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an
increase of 918 due primarily to decreased SGampA expenses and RampD expenses and
continuing cost reduction efforts despite decreased profit attributable to decreased revenue the
unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of
reduced production
Consolidated income before income taxes and equity in income of affiliates for the period totaled
JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year
Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a
decrease of 58 from the previous fiscal year
22
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
Honda is the largest motorcycle manufacturer in Japan and has been since it started production in
1955 At its peak in 1982 Honda manufactured almost 3 million motorcycles annually By 2006
this figure had reduced to around 550000 but was still higher than its three domestic competitors
During the 1960s when it was a small manufacturer Honda broke out of the Japanese
motorcycle market and began exporting to the US Taking Hondarsquos story as an archetype of the
smaller manufacturer entering a new market already occupied by highly dominant competitors
the story of their market entry and their subsequent huge success in the US and around the
world has been the subject of some academic controversy Competing explanations have been
advanced to explain Hondarsquos strategy and the reasons for their success
The first of these explanations was put forward when in 1975 Boston Consulting Group (BCG)
was commissioned by the UK government to write a report explaining why and how the British
motorcycle industry had been out-competed by its Japanese competitors The report concluded
that the Japanese firms including Honda had sought a very high scale of production (they had
made a large number of motorbikes) in order to benefit from economies of scale and learning
curve effects It blamed the decline of the British motorcycle industry on the failure of British
managers to invest enough in their businesses to profit from economies of scale and scope
The second explanation was offered in 1984 by Richard Pascale who had interviewed the Honda
executives responsible for the firmrsquos entry into the US market As opposed to the tightly
focused strategy of low cost and high scale that BCG accredited to Honda Pascale found that
their entry into the US market was a story of ldquomiscalculation serendipity and organizational
learningrdquo ndash in other words Hondas success was due to the adaptability and hard work of its staff
rather than any long term strategy For example Honda1048758s initial plan on entering the US was
to compete in large motorcycles around 300 cc It was only when the team found that the
scooters they were using to get themselves around their US base of San Francisco attracted
positive interest from consumers that they came up with the idea of selling the Super cub
Awards
17
2011
Indian Motorcycle of the Year 2011 (IMOTY)
JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India
Bike of the Year ndash CNBC TV18 Overdrive Awards 2011
Bike of the Year - BloombergUTV Autocar Award 2011
Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011
CB Twister
The Most Awarded Motorcycle of the Year - 2011
Bike of the Year - BS Motoring Award 2011
Bike of the Year upto 110CC ndash Bike India
Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011
Premium 100CC Motorcycle - Zigwheels Awards
Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards
CB Unicorn Dazzler
Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011
Sporty Motorcycle upto 180CC ndash Zigwheels Awards
Premium Motorcycle of the Year - Auto Bild Golden Steering Awards
VFR 1200F
Superbike of the Year ndash TopGear
Automotive Technology of the Year - Zigwheels Awards
Brand Honda
Most Reliable Brand - Advanced Technology Brand
by Auto India Best Brand Survey Awards 2011
Motorsport
18
Honoured for Promoting 2Wheeler racing in India
2010
Brand
Most Reliable Brand
- Advance Technology
- Quality
By Apollo Auto India Best Brand Awards 2010
Trusted Brand Award (Gold) for Two-wheeler Readers Digest
CB1000R
Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010
CB1000R
Import Bike of the Year - AutoCar Awards 2010
CBR1000RR
Fireblade
Performance Bike of the Year - CNBC TV 18 Overdrive Award
2009
CBF Stunner Bike of the Year - NDTV Profit Award 2009
Aviator Scooter of the Year - NDTV Profit Award 2009
Activa Scooter of the Year - ET ZigWheels Awards 2009
2008
Aviator Scooter of the Year - Zigwheelscom
CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom
Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto
Awards 2008
19
Brand
-Well Made Bike 2008
-Advanced Technology 2008
-Overall 2008
Honda
-Eco-Friendliness 2008
-Resale Value 2008
By Apollo Tyres - Auto India Best Brand Survey Awards 2008
2007
Enter no Best automobile brand of India 2007 (Planman Media)
Activa Best automobile brand of India 2007 (Planman Media)
2006
Shine TNS Voice of The customer Award 2006 (TNS)
2005
Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)
Unicorn TNS Voice of the Customer Award (TNS)
Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)
2004
Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive
Magazine)
2003
Dio Scooter
of the Year 2003 (BBC)
20
2002
Activa Scooter of the Year by Overdrive Magazine
2001
Activa Scooter of the Year 2001 (BS Motoring)
Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial
results for the fiscal fourth quarter and the fiscal year ended March 31 2010
Fourth Quarter Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth
quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of
JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda
Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an
increase of JPY 13895 from the corresponding period last year One Honda American
Depository Share represents one common share
Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the
quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the
same period in 2009 due primarily to increased revenue in all of the business segments and
currency translation effects Honda estimates that had the exchange rates remained the same
from the corresponding period in 2009 revenue for the quarter would have increased by
approximately 254
Consolidated operating income for the quarter amounted to JPY 960 billion (USD
1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to
increased profit attributable to increased revenue reduction in vehicle costs as a result of
increased production and decreased SGampA expenses
21
Consolidated income before income taxes and equity in income of affiliates for the quarter
amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the
same period in 2009
Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an
increase of JPY 211 billion from the corresponding period last year
Fiscal Year Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended
March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the
previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share
for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous
fiscal year
Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a
decrease of 143 from the previous fiscal year primarily due to unfavorable currency
translation effects and decreased revenue in the automobile business Honda estimates that had
the exchange rate remained the same as the previous fiscal year revenue for the period would
have decreased by approximately 75
Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an
increase of 918 due primarily to decreased SGampA expenses and RampD expenses and
continuing cost reduction efforts despite decreased profit attributable to decreased revenue the
unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of
reduced production
Consolidated income before income taxes and equity in income of affiliates for the period totaled
JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year
Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a
decrease of 58 from the previous fiscal year
22
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
2011
Indian Motorcycle of the Year 2011 (IMOTY)
JuryBS Motoring Bike India BBC Top Gear Overdrive AutoBild India
Bike of the Year ndash CNBC TV18 Overdrive Awards 2011
Bike of the Year - BloombergUTV Autocar Award 2011
Viewerrsquos Choice Award Bike of the Year - Bloomberg UTV Autocar Awards 2011
CB Twister
The Most Awarded Motorcycle of the Year - 2011
Bike of the Year - BS Motoring Award 2011
Bike of the Year upto 110CC ndash Bike India
Motorcycle upto 110CC - NDTV Car amp Bike Awards 2011
Premium 100CC Motorcycle - Zigwheels Awards
Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards
CB Unicorn Dazzler
Motorcycle upto 160CC ndash NDTV Car amp Bike Awards 2011
Sporty Motorcycle upto 180CC ndash Zigwheels Awards
Premium Motorcycle of the Year - Auto Bild Golden Steering Awards
VFR 1200F
Superbike of the Year ndash TopGear
Automotive Technology of the Year - Zigwheels Awards
Brand Honda
Most Reliable Brand - Advanced Technology Brand
by Auto India Best Brand Survey Awards 2011
Motorsport
18
Honoured for Promoting 2Wheeler racing in India
2010
Brand
Most Reliable Brand
- Advance Technology
- Quality
By Apollo Auto India Best Brand Awards 2010
Trusted Brand Award (Gold) for Two-wheeler Readers Digest
CB1000R
Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010
CB1000R
Import Bike of the Year - AutoCar Awards 2010
CBR1000RR
Fireblade
Performance Bike of the Year - CNBC TV 18 Overdrive Award
2009
CBF Stunner Bike of the Year - NDTV Profit Award 2009
Aviator Scooter of the Year - NDTV Profit Award 2009
Activa Scooter of the Year - ET ZigWheels Awards 2009
2008
Aviator Scooter of the Year - Zigwheelscom
CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom
Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto
Awards 2008
19
Brand
-Well Made Bike 2008
-Advanced Technology 2008
-Overall 2008
Honda
-Eco-Friendliness 2008
-Resale Value 2008
By Apollo Tyres - Auto India Best Brand Survey Awards 2008
2007
Enter no Best automobile brand of India 2007 (Planman Media)
Activa Best automobile brand of India 2007 (Planman Media)
2006
Shine TNS Voice of The customer Award 2006 (TNS)
2005
Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)
Unicorn TNS Voice of the Customer Award (TNS)
Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)
2004
Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive
Magazine)
2003
Dio Scooter
of the Year 2003 (BBC)
20
2002
Activa Scooter of the Year by Overdrive Magazine
2001
Activa Scooter of the Year 2001 (BS Motoring)
Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial
results for the fiscal fourth quarter and the fiscal year ended March 31 2010
Fourth Quarter Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth
quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of
JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda
Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an
increase of JPY 13895 from the corresponding period last year One Honda American
Depository Share represents one common share
Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the
quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the
same period in 2009 due primarily to increased revenue in all of the business segments and
currency translation effects Honda estimates that had the exchange rates remained the same
from the corresponding period in 2009 revenue for the quarter would have increased by
approximately 254
Consolidated operating income for the quarter amounted to JPY 960 billion (USD
1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to
increased profit attributable to increased revenue reduction in vehicle costs as a result of
increased production and decreased SGampA expenses
21
Consolidated income before income taxes and equity in income of affiliates for the quarter
amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the
same period in 2009
Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an
increase of JPY 211 billion from the corresponding period last year
Fiscal Year Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended
March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the
previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share
for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous
fiscal year
Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a
decrease of 143 from the previous fiscal year primarily due to unfavorable currency
translation effects and decreased revenue in the automobile business Honda estimates that had
the exchange rate remained the same as the previous fiscal year revenue for the period would
have decreased by approximately 75
Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an
increase of 918 due primarily to decreased SGampA expenses and RampD expenses and
continuing cost reduction efforts despite decreased profit attributable to decreased revenue the
unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of
reduced production
Consolidated income before income taxes and equity in income of affiliates for the period totaled
JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year
Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a
decrease of 58 from the previous fiscal year
22
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
Honoured for Promoting 2Wheeler racing in India
2010
Brand
Most Reliable Brand
- Advance Technology
- Quality
By Apollo Auto India Best Brand Awards 2010
Trusted Brand Award (Gold) for Two-wheeler Readers Digest
CB1000R
Import Two - Wheeler of the Year NDTV Profit Car amp Bike Awards 2010
CB1000R
Import Bike of the Year - AutoCar Awards 2010
CBR1000RR
Fireblade
Performance Bike of the Year - CNBC TV 18 Overdrive Award
2009
CBF Stunner Bike of the Year - NDTV Profit Award 2009
Aviator Scooter of the Year - NDTV Profit Award 2009
Activa Scooter of the Year - ET ZigWheels Awards 2009
2008
Aviator Scooter of the Year - Zigwheelscom
CBF Stunner Motorcycle of the Year (125 C C ) - Zigwheelscom
Activa Scooter Customers Satisfaction No1 - CNBC TV18 - Auto Car Auto
Awards 2008
19
Brand
-Well Made Bike 2008
-Advanced Technology 2008
-Overall 2008
Honda
-Eco-Friendliness 2008
-Resale Value 2008
By Apollo Tyres - Auto India Best Brand Survey Awards 2008
2007
Enter no Best automobile brand of India 2007 (Planman Media)
Activa Best automobile brand of India 2007 (Planman Media)
2006
Shine TNS Voice of The customer Award 2006 (TNS)
2005
Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)
Unicorn TNS Voice of the Customer Award (TNS)
Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)
2004
Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive
Magazine)
2003
Dio Scooter
of the Year 2003 (BBC)
20
2002
Activa Scooter of the Year by Overdrive Magazine
2001
Activa Scooter of the Year 2001 (BS Motoring)
Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial
results for the fiscal fourth quarter and the fiscal year ended March 31 2010
Fourth Quarter Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth
quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of
JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda
Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an
increase of JPY 13895 from the corresponding period last year One Honda American
Depository Share represents one common share
Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the
quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the
same period in 2009 due primarily to increased revenue in all of the business segments and
currency translation effects Honda estimates that had the exchange rates remained the same
from the corresponding period in 2009 revenue for the quarter would have increased by
approximately 254
Consolidated operating income for the quarter amounted to JPY 960 billion (USD
1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to
increased profit attributable to increased revenue reduction in vehicle costs as a result of
increased production and decreased SGampA expenses
21
Consolidated income before income taxes and equity in income of affiliates for the quarter
amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the
same period in 2009
Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an
increase of JPY 211 billion from the corresponding period last year
Fiscal Year Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended
March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the
previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share
for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous
fiscal year
Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a
decrease of 143 from the previous fiscal year primarily due to unfavorable currency
translation effects and decreased revenue in the automobile business Honda estimates that had
the exchange rate remained the same as the previous fiscal year revenue for the period would
have decreased by approximately 75
Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an
increase of 918 due primarily to decreased SGampA expenses and RampD expenses and
continuing cost reduction efforts despite decreased profit attributable to decreased revenue the
unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of
reduced production
Consolidated income before income taxes and equity in income of affiliates for the period totaled
JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year
Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a
decrease of 58 from the previous fiscal year
22
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
Brand
-Well Made Bike 2008
-Advanced Technology 2008
-Overall 2008
Honda
-Eco-Friendliness 2008
-Resale Value 2008
By Apollo Tyres - Auto India Best Brand Survey Awards 2008
2007
Enter no Best automobile brand of India 2007 (Planman Media)
Activa Best automobile brand of India 2007 (Planman Media)
2006
Shine TNS Voice of The customer Award 2006 (TNS)
2005
Unicorn Motorcycle of the Year 2005 (BS Motoring amp auto car)
Unicorn TNS Voice of the Customer Award (TNS)
Enter no Scooters of the Year 2005 (BS Motoring amp Overdrive)
2004
Enter no Best Scootes of the Year (B S Motoring amp ICICI Bank Overdrive
Magazine)
2003
Dio Scooter
of the Year 2003 (BBC)
20
2002
Activa Scooter of the Year by Overdrive Magazine
2001
Activa Scooter of the Year 2001 (BS Motoring)
Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial
results for the fiscal fourth quarter and the fiscal year ended March 31 2010
Fourth Quarter Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth
quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of
JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda
Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an
increase of JPY 13895 from the corresponding period last year One Honda American
Depository Share represents one common share
Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the
quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the
same period in 2009 due primarily to increased revenue in all of the business segments and
currency translation effects Honda estimates that had the exchange rates remained the same
from the corresponding period in 2009 revenue for the quarter would have increased by
approximately 254
Consolidated operating income for the quarter amounted to JPY 960 billion (USD
1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to
increased profit attributable to increased revenue reduction in vehicle costs as a result of
increased production and decreased SGampA expenses
21
Consolidated income before income taxes and equity in income of affiliates for the quarter
amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the
same period in 2009
Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an
increase of JPY 211 billion from the corresponding period last year
Fiscal Year Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended
March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the
previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share
for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous
fiscal year
Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a
decrease of 143 from the previous fiscal year primarily due to unfavorable currency
translation effects and decreased revenue in the automobile business Honda estimates that had
the exchange rate remained the same as the previous fiscal year revenue for the period would
have decreased by approximately 75
Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an
increase of 918 due primarily to decreased SGampA expenses and RampD expenses and
continuing cost reduction efforts despite decreased profit attributable to decreased revenue the
unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of
reduced production
Consolidated income before income taxes and equity in income of affiliates for the period totaled
JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year
Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a
decrease of 58 from the previous fiscal year
22
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
2002
Activa Scooter of the Year by Overdrive Magazine
2001
Activa Scooter of the Year 2001 (BS Motoring)
Tokyo April 28 2010--- Honda Motor Co Ltd today announced its consolidated financial
results for the fiscal fourth quarter and the fiscal year ended March 31 2010
Fourth Quarter Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal fourth
quarter ended March 31 2010 amounted to JPY 721 billion (USD 776 million) an increase of
JPY 2521 billion from the same period in 2009 Basic net income attributable to Honda
Motor Co Ltd per common share for the quarter amounted to JPY 3978 (USD 043) an
increase of JPY 13895 from the corresponding period last year One Honda American
Depository Share represents one common share
Consolidated net sales and other operating revenue (herein referred to as ldquorevenuerdquo) for the
quarter amounted to JPY 22795 billion (USD 24501 million) an increase of 278 from the
same period in 2009 due primarily to increased revenue in all of the business segments and
currency translation effects Honda estimates that had the exchange rates remained the same
from the corresponding period in 2009 revenue for the quarter would have increased by
approximately 254
Consolidated operating income for the quarter amounted to JPY 960 billion (USD
1033million) an increase of JPY3682 billion from the same period in 2009 due primarily to
increased profit attributable to increased revenue reduction in vehicle costs as a result of
increased production and decreased SGampA expenses
21
Consolidated income before income taxes and equity in income of affiliates for the quarter
amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the
same period in 2009
Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an
increase of JPY 211 billion from the corresponding period last year
Fiscal Year Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended
March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the
previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share
for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous
fiscal year
Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a
decrease of 143 from the previous fiscal year primarily due to unfavorable currency
translation effects and decreased revenue in the automobile business Honda estimates that had
the exchange rate remained the same as the previous fiscal year revenue for the period would
have decreased by approximately 75
Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an
increase of 918 due primarily to decreased SGampA expenses and RampD expenses and
continuing cost reduction efforts despite decreased profit attributable to decreased revenue the
unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of
reduced production
Consolidated income before income taxes and equity in income of affiliates for the period totaled
JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year
Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a
decrease of 58 from the previous fiscal year
22
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
Consolidated income before income taxes and equity in income of affiliates for the quarter
amounted to JPY 935 billion (USD 1006 million) an increase of JPY 3922 billion from the
same period in 2009
Equity in income of affiliates amounted to JPY 238 billion (USD 257 million) for the quarter an
increase of JPY 211 billion from the corresponding period last year
Fiscal Year Results
Hondarsquos consolidated net income attributable to Honda Motor Co Ltd for the fiscal year ended
March 31 2010 totaled JPY 2684 billion (USD 2885 million) an increase of 959from the
previous fiscal year Basic net income attributable to Honda Motor Co Ltd Per common share
for the period amounted to JPY 14791 (USD 159) an increase of JPY 7241from the previous
fiscal year
Consolidated revenue for the period amounted to JPY 85791 billion (USD 92210 million) a
decrease of 143 from the previous fiscal year primarily due to unfavorable currency
translation effects and decreased revenue in the automobile business Honda estimates that had
the exchange rate remained the same as the previous fiscal year revenue for the period would
have decreased by approximately 75
Consolidated operating income for the period totaled JPY 3637 billion (USD 3910 million)an
increase of 918 due primarily to decreased SGampA expenses and RampD expenses and
continuing cost reduction efforts despite decreased profit attributable to decreased revenue the
unfavorable impact of currency effects and the increase in fixed costs per vehicle as a result of
reduced production
Consolidated income before income taxes and equity in income of affiliates for the period totaled
JPY 3361 billion (USD 3613 million) an increase of 1079 from the previous fiscal year
Equity in income of affiliates amounted to JPY 932 billion (USD 1003 million) for the period a
decrease of 58 from the previous fiscal year
22
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
Racing
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 Hondas 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 Hail wood
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 Honda is an active participant in many off-road
races Michael Doohan riding Repsol Hondas NSR 500
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
23
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
PROFILE OFVISHNU HONDA
HISTORY
SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam Operation
in October 2007 which is now popularly known as Vishnu Honda
From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume
250nos (3000 per annum) This spectacular growth is mainly due to aggressive clear headed
management and with sheer hard work of every staff member and above all out standing
customer support
Vishnu Honda captured 25 of Visakhapatnam two and wheelers market successfully standing
with the challenges from competition As of now Vishnu Honda has a work force of 70
members with an annual turnover of Rs 12 crores They have also opened a separate service
station for better customer care
PROMOTIONAL ACTIVITIES OF VISHNU H0NDA
The promotional activities adopted by Vishnu Honda motors are
1 Test Rides
2 Exchange Melas
3 Mileage Contest
4 Loan Melas
5 Harding amp Wall Paintings
6 Sponsoring youth Events
7 Financing in the spot
24
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
8 Distributing pamphlets
9 Advertising in news paper
SERVICE DEPARTMENT
Head Shiva
1 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc
2 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles
3 Extended warranty also giving to all models except twister
4 Free Checkup Camp For everysunday
5 Engine over hauling for all Post Warranty Vehicle
6 We are giving warranty for fuel adultration for single time
7 Total Workers are 42 members
8 After Free Services 200 rupees Charged
WORKING TIME
MORNING 8AM TO 1PM EVENING 2PM TO730 PM
PRODUCTS AVAILABLE IN Vishnu Honda motors
SNo Scooter Motor Cycle Mopeds 3 wheelers
1 Dio nil
2 Activa
3 Aviator
4 Shine
5 Unicorn
6 Stunner
7 Dazzler
8 Twister
9 CBR 250
25
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
Spare Parts
Spare Parts Incharge ndash SIVA
Input Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)
Out put Sols of Spare parts ndash work shop of Honda Show Room out side Mechanics and
Customers
Total Spare Parts above 11000 Parts
Finance Level
1 The VISHNU HONDA Provides sum finance facility to the customers The
finance facility Banks are
a HDFC
b Family Credit (Pvt)
c Sriram Finance
d fulletron
The finance lever provides interest rate Rs 1per 100 The customer paid minimum 30 of the
Vehicle Amount The finance facility taken by the above 6000 people of them
Sales Team
Sales Manager SKV CHANDARA SEKHAR There are four executives monthly they are
sold 400 vehicle They provide 12 Interest rate Incentive given by company per vehicle 1000
to 1500 Rupees of them
The demand is very more for Honda Bikes there are 50 of Bikes Purchase by spot cash 50
Vehicle side Finance Purchase
They are not giving any offer to vehicle some times company giving insurance offer More
sales for shineunicorn
26
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
ACHIEVEMENTS
They are good in Customer Dealership Enquiries and giving good facilities to Customer
ORGANISATION STRUCTURE
PROPRIETOR
CHIEF EXECUTIV
GENERAL MANAGER
SALES Dept Accts Dept Work Dept Spares Dept
Group Leaders Accts Works Manager spare in Charge
Sales Executive service Manager Asst Spares
Supervisors
27
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
Mechanics
CHAPTER - IV
ANALYSIS OF STUDY
AGE
Age Group
Number of
Respondents
18-25 28 43
26-35 10 15
36-45 09 14
46 above 17 26
TOTAL 64 100
From this table we can infer that 43 of the two wheeler users are between 18 to 25 years of
age and another 14 are between 36 to 45 years of age 15 of the bike users are between 26 to
45 years of age 26users are above 46 years of age
28
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
EDUCATION
Qualification
Number of
Respondents
School Education 07 11
Under Graduate 32 50
Graduates 11 17
Post Graduates 14 22
TOTAL 64 100
17 of the respondents are Graduates and 50 are Under Graduates From this we can infer that
67 of the bike users are under graduates or Graduates 11 have only school education Only
22 are post graduates
29
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
FAMILY ANNUAL INCOME
Income
Number of
Respondents
Below 50 K 0 0
51 K - 1 Lakh 39 61
1 Lake - 2 Lakhs 22 34
2 Lakes - 5 Lakhs 3 5
above 5 Lakhs 0 0
TOTAL 64 100
It is surprising to note that 95 of the bike owners are having annual income less than 2 lakhs
In this 5 are having income between 2 lakhs to 5lakhs Though this looks un reliable
generally respondents do not reveal their real incomes They have quoted their incomes as per
the Ration Cards they possess
30
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
OCCUPATION
OCCUPATION
Number of
Respondents
Students 51 80
Employee 00 00
Business 11 17
Any other 02 03
TOTAL 64 100
80 of the bike owners are students and 17 are buiness people Only 3 are any other
31
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
Duration of Usage of the Vehicle
Duration
Number of
Respondents
Less than 1 year 24 37
1 year to 2 years 00 00
2 years to 5 years 11 17
5 years to 10 years 29 46
above 10 years 00 00
TOTAL 64 100
37 of the vehicle owners are using the vehicle from less than a year 17 are using the vehicle
since 5 years 46 of the users are using a vehicle for a maximum of 5 years
32
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
BRAND PATRONAGE
BRAND
Number of
Respondents
Activa 15 23
Dio 08 13
Aviator 02 03
Shine 15 23
Unicorn 14 22
Dazzler 01 02
Twister 02 03
Stunner 06 09
CBR 01 02
TOTAL 64 100
33
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
Activa and shine are the most popular models of Honda each contributing 23 Next
popular is unicorn with 2267 of the two wheelers sold are either Activa Shine or
Unicorn
REASONS FOR CHOSING HONDA
REASON
Number of
Respondents
Price 52 82
Promotion 00 00
Appearance 12 18
Technology 00 00
Any other 00 00
TOTAL 64 100
While choosing Honda and a particular model the customers are influenced by the price of the
bike Limited importance is given to Appearance of the vehicle
34
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
INFLUENCER
Person
Number of
Respondents
Self 02 04
Family members 02 04
Friends 60 92
Any other 00 00
TOTAL 64 100
92 of the customers have decided to buy Honda Vehicle influenced by their friends 4 are
influenced by their family members and Self
35
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
REASON FOR CHOSING THE DEALER
REASON
Number of
Respondents
Local Dealer 37 58
Service Dealer 27 42
Schemes 00 00
Finance Facility 00 00
Any other 00 00
TOTAL 64 100
58 of the customers have brought the vehicle from the particular dealers because he is alone
dealer 42 have preferred because the dealer is also a service dealer Schemes and finance
facility have no impact on dealer choice
36
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
SERVICE RATING
Rating
Number of
Respondents
Excellent 00 00
Good 19 30
Average 18 29
Not Satisfied 27 41
TOTAL 64 100
41 of the customers are not satisfied services of the dealer Sree Vishnu Honda motors 30 as
Good and 29 are average
37
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
COST OF SPARES amp SERVICE
Rating
Number of
Respondents
High 04 06
Slightly high 51 79
Reasonable 09 14
Cheap 00 0
TOTAL 64 100
79 of the customers perceive the cost of service and spares slightly high Only 6 and 14 are
felt that it is high and reasonable
38
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
LOYALTY TO DEALER
Yes 16 25
No 48 75
TOTAL 64 100
75of the customers not satisfied with service of Vishnu Honda They do not want to get service
from this dealers after free services
39
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
CHAPTER-V
SUMMARY AND SUGGESTIONS
SUMMARY
40
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
Honda is a major player in Two wheeler market In India almost every second motor cycle sold
is from Honda It is has many award to its credit
How strong the brand may be every organization has to strive to improve customer satisfaction
With increasing competition and customer expectations Customer Satisfaction is the key to
success of any organization
Dealers play a very important role in the marketing of any product Their role is vital mainly in
the case of consumer durables in general and automobiles in particular Unlike majority of
consumer durables automobiles need periodic maintenance Two wheelers have a peculiar
feature as they are used by common man who hardly has any
knowledge of the functioning or repairing of the vehicle dealersrsquo role is very important Dealers
can enhance or tarnish the image of the company and the product how ever good it may be
The strength of Honda motors is its channel partners and service availability every where
The findings of the study are summarized below
Majority of the Honda customers are in the age group of 18 to 25 years
Majority of them are under graduates
Honda two wheeler customers are middle class and upper middle class
Normally a customer uses a Honda vehicle to a maximum period of 10 years
Activa Unicorn and Shine brands are bread winners to Honda
Customers buy Honda for its technical features like mileage easy maintenance
superior technology etc
Customers buy Honda influenced by their friends
Customers normally prefer local dealers and service dealers for buying a vehicle
The dealer at Visakhapatnam Vishnu Honda motors is rated high by the
41
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
customers for service and are not loyal to them for after free services are over
Cost of spares and service is slightly high
SUGGESTIONS
Regular availability of all models should be ensured Efforts have to be taken to
ensure no stock outs for Activa Unicorn and Shine Dealer has to put efforts to improve quality
of after sales service as majority opined that they would not prefer the dealer after free services
Dealer and Company should ensure availability of flagship brand Activa Due to non availability
majority of the prospective customers are shifting to other company brands
Customers are suspecting the dealers role in sticking to booking schedule Efforts to be taken to
ensure transparency in booking Customer feedback system after sale and service would improve
the image of the dealer Dealer has to tie up with banks to provide finance at competitive interest
rates Dealer has to be aggressive in marketing the vehicles as they face a very tough
competition from local Honda Dealer ie Jupiter Honda
Dealer as well as the company has to put all efforts to enhance the image of the
brand as well as the dealership
Questionnaire
Name TownVillage
Reg No Model Year of Manufacture
42
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
1 Age ( Years) a 18-25 c 35-45
b 25-35 d45 above
2 Qualification a Under Graduate
b Graduate C Post Graduate
d Any Other
3Family annual Income a below 50000 b 50000 to 100000
c 1-2lakhs d 2-5lakhs
e above five lakhs
4Occupation a Student b Government Employee
C Private Employee d Business
e Any Other (Specify)
5 What type of two wheeler do you own
a Scooter b Motorbike c Any Other(specify)helliphelliphelliphelliphelliphelliphelliphellip
43
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
6 Since how long are you using the particular two wheeler
a Less than 1 year b 1-2 years c 2-5years
d 5-10years e Above 10 years
7 Specify the brand of two wheeler do you own
a Activa b Dio c aviator d shine
eDnicorn fDazzler g twister h Stunner i CBR250
8 You preferred the particular brand because of
a Price b Promotion c Appearance d Technical Factors
e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
9 Who influenced you to purchase the two wheeler
aSelf bFamily c Friends dAdvertisement e Any Other (Specify)
10 Why did you choose lsquoVishnu Honda
a Local dealer b Service dealer c Schemes
44
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
d Finance availability e Any Other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphellip
11 Are you satisfied with the Vehicle a Yes b No
12 If No The reason is
a More petrol consumptionless Mileage b Less Pick Up
c Non availability of spares d Any other (Specify)helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip
13 How would you rate service offered by lsquoVishnu Honda for your two wheeler
a Excellent b Good c Average d Not satisfied
14 How do you rate the cost of spares and service charges charged by lsquoVishnu Honda
a Highb Reasonable cCompetitive
15 Do you prefers to get your Vehicle serviced at Vishnu Honda after free services also
a Yes b No
45
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
BIBLIOGRAPHY
46
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
BIBLIOGRAPHY
Philip kotler- Principels of Marketing Prention-Hall of India Pvt ltd New Delhi(1999)
Jagdish NSheth Atul Parvatiyar ndashRelationship Marketing-A division of stage publication New
Delhi(2000)
Philip Kotler- Marketing Management-ndash (In India Bangladesh Nepal)
Pearl Jack amp Robyn Marketing Channels A Division of Holt Rinehart amp Wiston(1978)
VVRama SwamySNamakumari ndash Marketing Management(Planning amp Implementation amp
Control)- Rajiv Beri for Macmillan Indian ltd New Delhi(2002)
wwwHonda2wheelers Indiacom
47
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