analysis of new honda city customer profile & satisfaction level report

7/27/2019 Analysis of New Honda City Customer Profile & Satisfaction Level Report

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Analysis of New Honda City Customer Profile &

Satisfaction Level

A PROJECT REPORT

Submitted by:

JITESH NAGAR

Roll No. 0917270039

In Partial Fulfilment for the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

IN

MARKETING

LLOYD INSTITUTE OF MANAGEMENT & TECHNOLOGY

PLOT NO.11, KNOWLEDGE PARK- II, Greater Noida- U.P.-

201306

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ACKNOWLEDGEMENTACKNOWLEDGEMENT

I express my sincere gratitude to my industry guide Mr. Rajive Saharia, Head-

Sales and Marketing, Honda Siel Cars India Ltd. (HSCI), for his able guidance,

continuous support and cooperation throughout my project, without which the

present work would not have been possible.

I would also like to thank the entire team Marketing of Honda Siel Cars

India Ltd (HSCI), for the constant support and help in the successful completion

of my project.

Also, I am thankful to my faculty guide Mr. A.K. Tyagi of LIMT,

Greater Noida for her continued guidance and invaluable encouragement.

JITESH NAGAR

Roll No. 0917270039

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TABLE OF CONTENTS

Chapter

No.

Topic Page No.

1. Introduction1.1 Customer

1.1.1 Definition of customer1.2 Customer Profiling1.3 Customer satisfaction

1.3.1 The purpose of business1.3.2 Definition of customer satisfaction1.3.3 Measuring customer satisfaction1.3.4 Importance of customer satisfaction1.3.5 Customer satisfaction model by N. Kano

2. Review Of Literature

3. Problem Statement3.1 Justification of the problem3.2 Scope of the project3.3 Objective of the project3.4 An Industry overview

3.4.1 The four wheeler industry in India3.4.1a Background

3.4.1b Current scenario3.4.1c Market share scenario

3.5 Company profile3.5.1 An overview

3.5.1.a Honda world wide3.5.1.b Principles of Honda3.5.1.c Honda in India

3.6 About the car3.6.1 The all new Honda City3.6.2 Importance of the all new Honda city for the

company

4. Research Methodology4.1 Research method4.2 Data source

4.3 Target population & Sampling plan

4.4 Target areas

4.5 Data processing

5. Results & Discussions

5.1 Building of customer profile

5.1.1 Gender

5.1.2 Age

5.1.3 Family status

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5.1.4 Educational qualification

5.1.5 Occupation

5.1.6 Monthly household income

5.1.7 Budget decision

5.1.8 Driving scenario5.2 Analysis of customer profile

5.3 Other important information regarding the City

customers

5.3.1 Purchase criteria

5.3.2 Source of information

5.4 Competitive analysis

5.5 Analysis of customer satisfaction

5.5.1 Audio system

5.5.2 Overall styling of the car

5.5.3 Additional features

5.5.4 Exterior styling of the car

5.5.5 Interior styling of the car

5.5.6 Luggage space

5.5.7 Performance of the car

5.5.8 Overall performance of the car

5.5.9 Safety features

5.5.10 Pricing of the car

5.5.11 Accessory package

5.5.12 Strengths & shortcomings of the car5.6 Findings

5.7 Limitations

6. Recommendations & conclusions

6.1 Recommendations

6.2 Conclusions

7. Appendix

Annexure I Questionnaire

Annexure II Reference

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CHAPTER I:

Introduction

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1.1 CUSTOMER:

Customers are the most important people for any organization. They are the resource on

which not only the success, but the entire existence of any business depends.

A customer, also client, buyer or purchaser is usually used to refer to a current or potential

buyer or user of theproducts of an individual ororganization, mostly called the supplieror

seller. However the term customer also includes by extension anyone who uses or

experiences the services of another.

The word derives from "custom," meaning "habit"; a customer was someone who frequented

a particular shop, who made it a habit to purchase goods of the sort the shop sold there rather

than elsewhere, and with whom the shopkeeper had to maintain a relationship to keep his or

her "custom," meaning expected purchases in the future.

The clichs "customer is king" or "customer is god" or "the customer is always right" are

most frequently used in the marketing world and also indicate the importance of customers to

businesses.

The importance of the customers for any business can be understood by looking at the huge

expenditures that are being incurred by various companies for satisfying and retaining their

customers.

Before discussing further about customer and customer satisfaction we should first try and

understand the meaning of the word Customer.

1.1.1 DEFINITION OF CUSTOMER:

DEFINITION 1:

According to Shri.Mohandas Karamchand Gandhi, the father of nation,

A customer is not an outsider to our business. He is a definite part of it. A customer is not

an interruption of our work. He is the purpose of it. A customer is doing us a favour by

letting us serve him. We are not doing him any favour. A customer is not a cold statistic; he

is a flesh and blood human being with feelings and emotions like our own. A customer is not

someone to argue or match wits with. He deserves courteous and attentive treatment. A

customer is not dependent on us. We are dependent on him. A customer brings us his wants.

It is our job to handle them properly and profitably both to him and us. A customer makes

it possible to pay our salary, whether we are a driver, plant or an office employee.

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DEFINITION 2:

Peter Drucker, a well known management expert, defined customers as:

A person who purchases the product from the marketer or from the retailer or from the

wholesaler.

DEFINITION 3:

John marsh, Director General, British Institute of management, defines customer as:

A person or organization that a marketer believes will benefit from the goods and services

offered by the marketers organization.

As these above definitions suggest, a customer is not necessarily someone who is currently

purchasing from the marketer. In fact, customers may fall into one of three customer groups:

Existing Customers Consists of customers who have purchased or otherwise used

an organizations goods or services, typically within a designated period of time.

Existing Customers are by far the most important of the three customer groups since they

have a current relationship with a company and, consequently, they give a company a

reason to remain in contact with them. Getting these Existing Customers to purchase

more is significantly less expensive and time consuming than finding new customers

mainly because they know and hopefully trust the marketer and, if managed correctly,

are easy to reach with promotional appeals.

Former Customers This group consists of those who have formerly had relations

with the marketing organization typically through a previous purchase. However, the

marketer no longer feels the customer is an Existing Customer either because they have

not purchased from the marketer within a certain timeframe or through other

indications. The value of this group to a marketer will depend on whether the

customers previous relationship was considered satisfactory to the customer or the

marketer.

Potential Customers The third category of customers includes those who have yet

to purchase but possess what the marketer believes are the requirements to eventually

become Existing Customers. These requirements to become a customer include such

issues as having a need for a product, possessing the financial means to buy, and having

the authority to make a buying decision. Locating Potential Customers is an ongoing

process for two reasons. First, Existing Customers may become Former Customers and,

thus, must be replaced by new customers. Second, while we noted above that Existing

Customers are the best source for future sales, it is new customers that are needed in

order for a business to significantly expand.

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Once we have understood who a customer is, it is necessary to understand what

customer satisfaction is and why it is important.

1.2 Customer Profiling:

Customer profile may be defined as customer description that includes demographic,

geographic and psychographic characteristics, buying pattern, creditworthiness, purchase

history etc. This description may include information pertaining to the income level,

Occupation, level of education, age, gender, hobbies, and/or area of residence. For

example, magazine advertising salespeople provide advertisers with customer profiles

describing the type of person who will be exposed to the advertisements in that

magazine. The description may include income, occupation, level of income, occupation,

level of education, age, gender, hobbies, area of residence etc.

These customer profiles which are built by the companies help them to understand their

customers better. Using this customer profile the companies are able to identify and

segment their potential customers.

1.3 CUSTOMER SATISFACTION:

The word "satisfaction" comes from the Latin words satis (enough) and facere (to do

or make). These words suggest the true meaning of satisfaction, which is fulfillment.

Managerially, fulfillment usually translates to solving problem& satisfying the

customer is not enough. To produce high level of customer loyalty, businesses need to

move beyond more satisfaction, to customer delight.

1.3.1 The Purpose of Business:

Peter F. Drucker, considered to be one of the leading management gurus in the world,

believes that the purpose of business to create and then retain a satisfied customer.

Although firms have to make money, Drucker argues that making money is a necessity

and not a purpose. It is, in fact, the end result, a desirable outcome of creating a satisfied

customer. Theodore Levitt, a Harvard Business School Professor, who explains this by

an analogy with human beings, expresses similar sentiment - all humans have to eat to

survive, but eating is not their purpose. Furthermore, making money does not provide a

legitimate reason for society to support the moneymaking enterprise. A society supports

businesses because they serve its member by catering to their needs to leave them

satisfied. If a firm dissatisfies customers, then not only will these specific customers stop

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buying from the firm, but the society at large will condemn the firm and may even

penalize it - to the point of its extinction. In response to such messages, co part of the

corporate mission, and utilizes an understanding of customer behavior as input to all its

marketing plans & decisions.

1.3.2 Definition of Customer satisfaction:

Rather than a single definition, it would be appropriate to have a look at various definitions

given by some of the leading management gurus of the world. As it would help us to

understand the concept of Customer satisfaction in a better manner.

DEFINITION 1:

A famous economist, Karl E. Case defines Customer satisfaction as:

Equivalent to making sure that product and service performance meets customer

expectations.

DEFINITION 2:

According to K. Keller :

Customer satisfaction is the perception of the customer that the outcome of a business

transaction is equal to or greater than his/her expectation.

DEFINITION 3:

According to Sir Peter Parker:

Customer satisfaction occurs when the acquisition of products and or services provides a

minimum negative departure from expectations when compared with other acquisitions.

DEFINITION 4:

As Leon G. Schiffman says:

Customer satisfaction is an individuals perception of the performance of the product or

service in relation to his or her expectations.

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DEFINITION 5:

Whereas according to Dr. Philip Kotler:

Customer satisfaction occurs when the perception of the reward from the purchase of

goods or services by the customer meets or exceeds his/her perceived sacrifice. The

perception is a consequence of matching past purchase and consumption experiencewith the current purchase.

1.3.3 Measuring customer satisfaction:

There are several ways to gather input from customers. The simplest way to find out how

customers feel and what they want, is to ask them. If you have only 20 customers, you can

talk to each one personally. The advantage of this approach is that you'll get a personal "feel"

for each customer. The disadvantage is that you'll gather different information from each

customer depending on how the conversation goes. Some of the ways in which you can

approach the customer are listed below:

I.Customer Survey

Customer surveys with standardized survey questionsinsure that you will collect the same

information from everyone. Remember that few of your customers will be interested in

"filling out a questionnaire". It's work for them without much reward. By launching a

customer survey as an attempt to find out "how we can serve you better" -- yourcustomers will feel less put upon.

Here are a few of the possible dimensions you could measure:

quality of service

speed of service

pricing

complaints or problems

trust in your employees

the closeness of the relationship with contacts in your firm

types of other services needed

your positioning in clients' minds

II.Focus Groups

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Focus groups are good ways to get informal input from a group of customers or prospects.

You bring in 5-10 customers or prospects and ask them questions or have them react to

material. You can pay a professional facilitator and videotape the whole session, or just lead

an informal discussion yourself. In either case, you have a chance to gather ideas about

customer needs, reactions to your company, suggestions for new services, and so forth. Inaddition to individual responses, you get ideas that develop as the group reacts to each other's

responses.

III.Client Advisory Groups

One way to get regular input from customers is to put together an advisory group. This can

act like a focus group, but is set up to provide input over time. You may pay members, or

simply buy them dinner every quarter.

There are many benefits to such groups. They give you a source of input from thecustomer viewpoint. They provide a sounding board for specific questions. They

enhance your relationship with good customers who become more committed to your

success. And they can move relationships with prospects ahead.

1.3.4 Importance of customer satisfaction:

Why Customer Satisfaction:

A customer is satisfied only when he is getting quality product and quality service which he

perceives. If a company is able to provide both, this will lead to customer satisfaction. A

satisfied customer will develop loyalty towards the company and will buy product of same

company again and again. At the same time he will recommend company's product to others.

This will help company in getting new customers. As a result company's sale will increase

and profits will rise.

Dissatisfied customer on an average will tell 12 others not to buy a product of the company.With internet and other information technology tools this number could go up to 10,000.

This will affect the image of the company and will result in loss of sale and profit.

The cost of acquiring new customer is 5 times more than keeping the old one. The old

customer will remain with a company only if they are satisfied with the services provided by

the company.

If a customer has a major complaint, 91 % of such customers will not buy from the company

again. If the problem is resolved quickly, 82% of them will return. So a company should see

that it is able to meet expectations of each and every customer and should not delay in

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solving customer's complaint.

1.3.5 CUSTOMER SATISFACTION MODEL by N.Kano:

The customer satisfaction model from N.Kano is a quality management and marketing

technique that can be used for measuring client happiness.

Kanos model of customer satisfaction distinguishes six categories of quality attributes,

from which the first three actually influence customer satisfaction:

1. Basic factors (Dissatisfiers, Must have): the minimum requirements that will cause

dissatisfaction if not fulfilled, but do not cause any satisfaction if they are fulfilled (or

exceeded). The customers take these as prerequisites and take these for granted.

2. Excitement factors (Satisfiers, Attractive): the factors that increase customer

satisfaction if delivered but do not cause dissatisfaction if they are not delivered. Such

factors surprise the customers and generate delight.

3. Performance Factors: The factors that cause satisfaction if the performance is high,

and cause dissatisfaction if the performance is low. Here the attribute performance-

overall satisfaction is linear and symmetric. Typically these factors are directly

connected to customer explicit needs and desires and a company should try to be

competitive here.

The additional three attributes which Kano mentions are:

4. Indifferent attributes: the customer does not care about these features.

5. Questionable attributes: it is unclear whether these attributes are expected by the

customer.

6. Reverse attributes: the reverse of this product feature was expected by the customer.

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CHAPTER II:

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Review Of

Literature

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In todays competitive world where every company is striving to retain and capture market

the importance of satisfying the existing customers has increased. And almost every company

realizes this, it is only because of this reason that the companies are spending huge amounts

for finding out the level of customer satisfaction and trying to improve this level by providing

better products and services.

Some of the researches that have been done by various companies in different sectors, in the

field ofcustomer satisfaction have beendiscussed below.

Customer Survey I :

A survey was conducted by The University of Michigan to find out the level of customer

satisfaction forLexus car owners and users.

According to the report the customers rated Lexus as 87 on a scale of 100. It was also found

that the major criteria for satisfying the customer were not the incentives but the quality of

the cars.

The report suggested the company to reduce the production runs and concentrate on

improving the quality.

Customer Survey II:

A customer satisfaction survey was conducted by the SKY(Satellite TV), which found out

that approximately 62% of the respondents were very dissatisfied (along with another 25%

who were dissatisfied) with the cost of cable television service.

A majority of the respondents were satisfied with the friendliness and courtesy of customer

service personnel, however, approximately 30% of the respondents rated the cable company's

performance as poor. With regard to open-ended comments, respondents felt that the cost of

the cable service was too high, a need for cable competition existed and the desire for a basic

cable package offering was desired.

Customer Survey III:

According to a survey conducted by J.D. Power Asia Pacific, to find the level of customer

satisfaction among the MarutiSuzuki car owners, the company scored 838 points on a scale of

1000.The study assesses the overall contentment of the owners of the vehicle who visited

their official dealer or service centre for maintenance or repair work in the initial 12 to 18

months of ownership.

The report suggested that the overall satisfaction level of the customers is determined by

utilizing seven measures including service quality; user-friendly service; service advisor;service initiation; service delivery; and in-service experience.

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Customer Survey IV:

A customer satisfaction survey was conducted by the Institute of Air Navigation Services

to find out the level of satisfaction among the students.

The survey accounted 2774 students, it was found that around 90% of the students were

satisfied with the modules and more than 88% students indicated that the modules met the

objectives.

However about 23% of the students recommended a change in the structure of the modules.

The analysis of the open ended questions showed that around 56% of the students wanted

changes in the e-learning & training programmes.

Customer Survey V:

Another customer satisfaction survey was conducted by LaCHIP (Louisiana Childrens

Health Insurance Program), which showed that although more than 76% of the customers

were satisfied with the services provided but nearly 38% of the customer thought that the

process of applying for the program was very cumbersome and time consuming.

Customer Survey VI:

National Centre For Education Statistics (NCES) conducted a customer satisfaction

survey to find out the level of customer satisfaction related to theNCES publications, NCESdatabases & user tools and other services provided by the NCES.

The survey concluded that about 90% of the customers were either satisfied or very satisfied

with the publications & the services provided by the NCES.

And not more than 5% of the customers reported dissatisfaction with such publication aspects

as overall quality of report, comprehensiveness, ease of understanding, relevance of

information, and accuracy. However, 15% of users reported dissatisfaction with timeliness.

Customer Survey VII:

A customer satisfaction research conducted by Don Dewees and David Duffin the field of

automobile insurance sector in the U.S.A. According to this report although it was thought

that Monetary compensation for the vehicular accidental claims was the path to customer

satisfaction, however the customers thought that a bundle of small things such as promptly

answered telephone calls or mails, recognition that the person applying for the claim is going

through a stressful and emotional period, contribute a great deal in customer satisfaction.

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Customer Survey VIII:

Another customer satisfaction survey was conducted at the Marina Mall. This survey was

conducted using a questionnaire as the research instrument, with a sample size of 300 people

visiting the mall, which included 150 males & 150 female respondents. Questions relating to

different aspects of the mall in the areas of design, service, atmosphere, quality, selection,

variety, products, and sales people, as well as parking and time preferences for visiting the

mall. Findings in this study include gender differences in the types of shops, food

establishments, entertainment, etc. however, the Marina Shopping Mall is rated by the

respondent/consumers participating in this study as having satisfied their expectations in most

areas and totalling a majority percentage as well.

Customer Survey IX:

NBRI(National Business Research Institute) conducted a research for theHYATT

HOTELS, U.S.A. After the terrorist attack of 9/11, as the sales for the hotel were falling

drastically, the leading hotel chain engaged NBRI to a customer satisfaction survey to find

the level of customer satisfaction and ways to improve the same.

The survey revealed that price was no longer the factor effecting the perception or the level of

satisfaction of the customers. However, according to more than 86% of the customers

security arrangements and the friendliness of the staff were the main reasons for customer

satisfaction or dissatisfaction.

Customer Survey X:

Another research in the field of evaluation of customer satisfaction was conducted by

Starbucksindicated that customer satisfaction, not just customer service, had to be improved

quickly and that Starbucks' head office had failed to see a changed customer base. The report

points out that, inspiring customer loyalty requires local store level efforts to remove the

public's perception of a corporation only interested in generating more stores.

Customer Survey XI:

A customer satisfaction survey conducted by Yamaha Motor India Pvt. Ltd. revealed that

more than 78% of the customers were either highly satisfied or satisfied. Out of these 56% of

the highly satisfied or satisfied customers turned out to be the repeat purchasers of the

Yamaha bikes.The main reasons of satisfaction among the customers were the fuel economy

& power of the bikes.

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CHAPTER III:

Problem Statement

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After the review of literature in the previous chapter the importance of customer satisfactionwas quite evident. However the researcher felt that with the dynamic nature of the Indian

market and the shortening life cycle of various products, there was a need for an elaborated

study of the likes and dislikes of the Indian consumer. With launch of various brands and

models waiting at the horizon, the Indian auto industry is expected to become highly

competitive in the coming years. So in order to retain and increase their market shares the

companies need to satisfy their customers in the best possible manner.

After carefully studying the current scenario of the auto industry in India, the researcher

decided to conduct a detailed study for evaluating the level of customer satisfaction and

identifying the reasons for the same. This study was conducted using a customer survey,

targeting the current users of the all new Honda City i-VTEC car launched by HSCI on the

25th Sep. 2008.

3.1 Justification of the Problem:

After de-licensing in 1991, the auto industry in India has grown at an average rate of 17%.

Currently the industry contributes nearly 5% of the GDP, and is expected to grow nearly five

folds and account over 10% of Indias GDP.

Over the last 5 years, the production of the four wheeler industry has increased from 9.3 lakh

units in 2003-04 to 23 lakh units in 2008-09, reporting a CAGR of 20%. Even the exports

have increased immensely from 84,000 units in 2003-04 to 2, 80,000 units in 2008-09.

However, despite the commendable growth of the auto sector, HSCI has not really been able

to make a mark in the Indian market. It had been able to capture only 5.52% of the total

market in FY08, which has fallen further to 4.93% in the FY09 and with the launch of new

cars such Nano, Jaguar, Land Rover etc. The situation is expected to get worse.

The main rational behind this survey report is that HSCI needs to retain the existing

customers and attract new ones. This can be done only by satisfying the customers to the

maximum possible extend. As this would not only prevent the existing Honda customers

from shifting to the other competitive brands but would also help in capturing new ones. This

is because, when a customer perceives good service he typically tell nine to ten people.

According to Griffin (1995), improvement in customer retention by even a few percent can

increase the profits by 25% or more. The University of Michigan found that for every

percentage increase in customer satisfaction there is an increase of 2.37% in return on

investment (Keiningham & Varvra, 2001).

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By this report the researcher aims at developing a customer profile for the all new Honda City

users. The report also aims at evaluating the levels of customer satisfaction, identifying the

reasons for such satisfaction or dissatisfaction and recommending changes that would help

the company in improving this level of satisfaction.

After deciding the industry, company and product for which the survey was to be

conducted, the researcher took the following decisions regarding

i. The scope of the project &

ii. The objective to be attained from the project

3.2 Scope Of The Project:

i. A detailed study of the four wheeler industry in India,

ii. A brief study about functioning of Honda in India(i.e.HSCI),

iii. Understanding the customer profile for the new Honda City,

iv. Understanding and analyzing the level of satisfaction or dissatisfaction among the

customers of the new Honda city & the reasons for the same.

3.3 Objectives Of The Project:

i. To understand the detailed profile of the customers of the All New Honda City

ii. To evaluate the level of satisfaction or dissatisfaction among the customers of the

new Honda city & the reasons for the same.

In order to achieve the above stated objectives the researcher found it necessary to gather

information pertaining to the following:

i. Indian four-wheeler Industry,

ii. Honda and

iii. All new Honda City I-VTEC.

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3.4 AN INDUSTRY OVERVIEW:

3.4.1 The four wheeler industry in India:

3.4.1(a) Background

Source: FADA (Federation Of Automobile Dealers Association) & ICRA(Investment Information And CreditRating Agency Of India Limited)Sectoral Review

The four wheeler industry in India has not quite matched up to the performance of its

counterparts in other parts of the world. The primary reason for this has been the all-

pervasive regulatory atmosphere prevailing till the opening up of the industry in the

mid-1990s. The various layers of legislative Acts sheltered the industry from external

competition for a long time. Moreover, the industry was considered low-priority as

cars were thought of as "unaffordable luxury".

Until the early 1990s, the automotive sector in India was highly protected. This was in

the form of steep import tariffs and measures that restricted the participation of

foreign companies. Hindustan Motors (HM) and Premier Automobile (PAL) that were

set up in 1940's dominated the vehicle market and industry. In the 1950s, the arrival of

Tata Motors, Bajaj Auto, and Mahindra & Mahindra led to steadily increasing vehicle

production in India, while the 1960s witnessed the establishment of the two- and

three-wheeler industry in India. However, the automotive industry witnessedtremendous growth after the entry of Maruti Udyog in the 1980s. In 1983, the

government permitted Suzuki - for some time, the only FDI player - to enter the

market in a joint venture with Maruti - a state operated enterprise at the time. Ten

years later, as part of a broader move to liberalise its economy, India de-licensed

passenger car manufacturing and opened it up further to foreign participation. That

brought a wave of FDI to India's vehicle industry. Import barriers have been

progressively relaxed. Today, almost all of the major global players are present in

India. The automotive industry is today a key sector of the Indian economy and a

major foreign exchange earner for the country.

3.4.1(b) Current scenario of the four wheeler industry in India:

Source: FADA & ICRA Sectoral Review

The Indian economy has grown at an annual rate of more than 8% over the last five

years and the industrial production has made an outstanding contribution to this

growth. Auto industry was licensed, controlled and restricted in the early years of

independent India and had a limited contribution to the economy. But post delicensing

in 1991 the industry has grown at an average rate of 17%. The industry currently

contributes about 5% of the GDP and it is targeted to grow fivefold by 2016 andaccount for over 10% of Indias GDP. Automotive mission plan (AMP) expects the

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industry to reach a turnover of $150-200 billion in the next ten years from the current

$45 billion levels. Over the last five years the production of four wheelers in India has

increased from 9.3 lakh units in 2003-04 to 23 lakh units in 2008-09 reporting a

CAGR of 20%. Vehicle manufacturers are increasingly adopting an outward looking

approach and exploring new markets & territories, ranging from Middle East, Europe,South Africa, Algeria, Latin America, Russia, etc. Exports have increased immensely

from 84,000 units in 2003-04 to 280,000 units in 2008-09. CRISIL (Credit Rating

Information Services Of India Ltd.) estimates the passenger vehicle exports to cross 8

lakh units by 2012-13.

3.4.1(c) Market Share scenario in the car industry:

(i) Passenger Cars segment:

FY08 FY09 YOY(%) FY08 FY09

549,317 618,168 13 49.79 50.13

194,870 216,307 11 17.66 17.54

179,007 167,058 -7 16.22 13.55

59,452 59,373 -3 5.39 4.81

39,820 30,962 -5 3.61 2.51

16,986 45,265 166 1.54 3.6726,720 29,567 11 2.42 2.40

37,130 66,398 79 3.37 5.38

1,103,302 1,233,098 12 100 100

ManufacturersDomestic Sales (Nos.)

Honda S iel Cars India Ltd.

Ford India Pvt. Ltd.

General Motors India Ltd.Mahindra Renault Pvt. Ltd.

Others

Total

Source- SIAM

Market Share (%)

Maruti Suzuki India Ltd.

Hyundai Motors India Ltd.

Tata Motors Ltd.

(ii) Utility Vehicles:

FY08 FY09 YOY(%) FY08 FY09

89,784 104,020 16 40.75 42.70

47,917 49,725 4 21.75 20.41

43,563 48,202 11 19.77 19.79

21,871 21,278 -3 9.93 8.74

8,499 8,113 -5 3.86 3.33

3,221 3,927 22 1.46 1.60

1,873 3,428 83 0.85 1.41

1,975 2,918 48 0.90 1.20

1,603 1,978 23 0.73 0.82

220,306 243,589 12 100 100

Source- SIAM

Market Share (%)

Honda S iel Cars India Ltd.

Ford India Pvt. Ltd.

Others

Total

Toyota Kirloskar Motor

General Motors India Ltd.

Force Motors Ltd.

Maruti S uzuki India Ltd.

Domestic Sales (Nos.)Manufacturers

Mahindra Renault Pvt. Ltd.

Tata Motors Ltd.

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3.5.1(b) PRINCIPLES OF HONDA:

Honda Motor Co., Ltd. operates under the basic principles of "Respect for the Individual"

and "The Three Joys" commonly expressed as The Joy of Buying, The Joy of Selling andThe Joy of Creating. "Respect for the Individual" reflects our desire to respect the unique

character and ability of each individual person, trusting each other as equal partners in order

to do our best in every situation.

3.5.1(c) Honda in India:

Honda Siel Cars India Ltd., (HSCI) was incorporated in December 1995 as a joint venture

between Honda Motor Co. Ltd., Japan and Siel Limited, a Siddharth Shriram Group

company, with a commitment to providing Hondas latest passenger car models and

technologies, to the Indian customers. The Honda City, its first offering introduced in 1997,

revolutionized the Indian passenger car market and has ever since been recognized as an

engineering marvel in the Indian automobile industry. The success of City as well as all its

other models has led HSCI to become the leading premium car manufacturer in India. The

total investment made by the company in India till date is Rs. 1620 crores, further investment

of RS. 1000 crore is planned and being currently invested for the coming second plant in

Rajasthan. The company has a capacity of manufacturing 100,000 cars.

7HSCIs state-of-the-art manufacturing unit was set up in 1997 at Greater Noida, U.P with aninvestment of Rs. 450 crore. The green-field project is spread across 150 acres of land (over

6,00,000 sq. m.).

The initial installed capacity of the plant was 30,000 cars per annum, which was thereafter

increased to 50,000 cars on a two-shift basis. The capacity has further been enhanced to

1,00,000 units annually in February 2008 . The capacity expansion was necessitated by the

excellent performance of all the Honda models, particularly the growing demand forCity in

India. Several modifications were done by the company with the objective of offering higher

quality products to its customers, faster and quicker. The expansion process also included

expansion of the covered area in the plant, from 1,07,000 sq. m. to 1,31,794 sq. m.

HSCI currently produces the newly launched Honda Jazz, All New City, Civic and Accord

models in India and the premium SUV, CR-V is sold as a fully imported unit from Japan.

The company operates under the stringent standards of ISO 9001 for quality management and

ISO 14001 for environment management.

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3.6 About the Car:

3.6.1 The all new Honda City:

The third generation of the concept design arrow-shot or arrows, make All New Honda

City looks very different from the generation predecessor. Overall view All New Honda City

more impressive. With exterior design changes so that the overall look sporty luxury at a

time.

All New Honda City is a perfect evolution of a mini-class sedan. The latest generation of

Honda City will continue success in the automotive market. Honda City has this

revolutionary view, and the more luxurious for a mini-class sedan.

Design front bumper and spoiler made refers to the cars racing to the level of Aerodynamics

can be maximum. In addition, also made a whole big enough air on the spoiler to reduce

barriers when its winds, also as Feed of fresh air to the engine room. The larger size of the

headlight to make Honda call it The Eagle Eye.

Behind, All New City is designed according to tail arrows. An effect of arrows is

established by design decks high and the trunk cut off, which also contribute to the smooth

flow of air to the rear body. In addition, the form of bumper diffuser also added to create the

effect HANDICAP style press and the road surface in order to maintain stability when the car

was on high speed.

The shape of the rear lights also changed, now mica lamp made in two colors, red and white

three-dimensional. Interior also participate improvement, Honda wants to apply the concept

of cozy Lounge in the car cabin. This is possible with the dimensions of space that is longer

and more widely each 5mm from the previous generation (4.395mm and 16.95mm) and less

than 15mm (1.470mm).

There are also features reclining seat, which allows rear seat passengers could be laid down

sitting position to get more comfortable. This technology may be applied first in a sedan,

usually because the rear seat passengers with what is required baggage.

3.6.2 Importance of the all new Honda City for the Company:

According to the management of HSCI, Honda City has been the most important car in the

Honda line up. HSCI claims to sell around 60,000 cars every year. Out of these 2/3rd of the

cars sold are City i.e. Honda sells 40,000 City every year.

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The City has been the star performer for HSCI since the time it was launched. However now

it is taking the position of a cash cow for the company. i.e. it is generating the maximum sales

for the company despite its small & stagnant market share.

CHAPTER IV:

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Research

Methodology

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RESEARCH METHODOLOGY:

There were several methodologies of research that the researcher could have utilized to

collect information regarding customer satisfaction. Some of the more commonly used

strategies are: i) written survey, ii) telephone surveys, iii)focus groups, iv) in-depth

interviews etc. However factors such as information need, resources, accessibility to

customers, sample to be used, time etc. had to be considered prior to selection of a

methodology.

4.1 Research Method:

For this particular study, the method of acquiring information from the customer needed to be

both easy to use and understand. Therefore the researcher decided to use the written survey

method. Under this method, the information was collected from the customers using a

research instrument called a Questionnaire(which was prepared by the researcher himself).

This questionnaire was a structured questionnaire, which had definite, concrete and

predetermined questions. These questions were presented with exactly the same wording and

in the same order to all the respondents. The questionnaire consisted of both closed ended&

open endedquestions.

4.2 Data Source:

The research makes use of bothPrimary & Secondary Data.

a. Primary Data: The customer survey was based on the primary data which was

collected by the researcher through one to one interaction with the customers, using

the questionnaire.

b. Secondary Data: use of secondary data was also made in the research. The purpose

was to gather information as to who is a customer, what is customer satisfaction,

information pertaining to four-wheelers market, company profile & research papers

on customer satisfaction. This secondary data was collected from various websites,

Magazines & broachers, management books and articles.

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4.3 Target population & Sampling plan:

The target population consisted of all the existing customers of the all new Honda City I-

VTECand the research area wasDelhi & NCR. Out of the entire target population the

researcher decided to draw asample of 200 customers,for the purpose of this report. These

samples were chosen on the basisofsimple random sampling.

4.4 Target Areas:

In order to conduct the survey and meet the targeted audience the researcher visited various

places. These places included: i) Company Dealerships & Service Centres (Ace Honda &

Prime Honda),ii) Petrol pumps (Kargil Fill up station Vasundhra encl. & Indian Oil

Mayur vihar PH-I),iii)Shopping malls, (which included the Great Indian Mall & Centre

Stage Mall).

4.5 Data processing:

The data collected from the respondents, through the questionnaire, was recorded in an excel

sheetwhich was then converted intoSPSSdatabase for analysis procedure. This data has

been displayed in the report usinggraphical presentations (pie-charts, bar diagrams,

histograms etc.) and tabulations.

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CHAPTER V:

Results &

Discussions

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RESULTS:

On the basis of the survey conducted under the project, using the questionnaire

(Refer to Annexure), the following data was collected.

This data has been analysed using various software such as Microsoft Excel,

Microsoft Word & SPSS and has been depicted using various Graphs, tables etc.

5.1BUILDING OF CUSTOMER PROFILE:

5.1.1 GENDER:

Table 1.1

Frequency Percentage

Male 175 87.50%

Female 25 12.50%

Total 200 100%

Fig. 1.1

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As shown above out of 200 respondents 175 were Males, where as only 25 respondents were

Females. i.e. 87.50% of the respondents were male. The main reason for this may be the fact

that only 25.6% of the women in India are working.

5.1.2 AGE:

31

Table 1.2

Frequency Percent Valid Percent

Cumulative

Percent

21 to 30 21 10.5 10.5 10.5

31 to 40 59 29.5 29.5 40.0

41 to 50 73 36.5 36.5 76.5

51 to 60 39 19.5 19.5 96.0

More than 60 8 4.0 4.0 100.0

Total 200 100.0 100.0


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Fig. 1.2

On the basis of the responses from the respondents, it was found that more than 36% of the

customers belong to the age group ranging from 41 to 50 years, nearly 30% of the customers

lie in the age group of 31 to 40 years & nearly 20% of the customers belong to the age group

of 51 to 60 years.

HSCI Ltd. had launched this car with an aim of capturing the customers of a younger age

group i.e. 25 to 45 years. However, as the survey revealed that the majority of the customers

belong to the age group of 40 to 50 years. This is mainly due to the fact that the all new

Honda City has ended up costing much more than what was planned at the time of its launch

in India.

5.1.3 FAMILY STATUS:

Table 1.3


Married

(With Kids) 161 80.50%

Married

(Without Kids) 27 13.50%

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Unmarried 12 6%

Total 100 100%

Fig. 1.3

The figure above shows that out of the 200 respondents 161 were married and had kids.

Whereas 27 respondents were married but did not have kids. And the rest of the

respondents (i.e. 12) were yet unmarried.

5.1.4 EDUCATIONAL QUALIFICATION:

Table 1.4

33


Under graduate 6 3%

Graduate 148 74%

Post Graduate 46 23%

Total 200 100%


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Fig. 1.4

The data above shows that 148 out of 200 all new Honda City customers were Graduates,

whereas 46customers were Post Graduates & only 6 customers were Under Graduates.

5.1.5 OCCUPATION:

Table 1.5


Business 139 69.50%

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Service 38 19%

Self-Employed 19 9.50%

Students 4 2%

Total 200 100

Fig. 1.5

As shown above out of 200 respondents, 139 respondents were businessmen, 38 respondentsbelonged to the service class, 19 respondents were self employed (i.e. were professionals

such as Charted Accountants, Doctors, Lawyers etc.).

One of the main reasons behind businessmen being the major buyers of the All New Honda

City could be the higher average income of the businessmen in India i.e. around

Rs.1,00,000 per annum(Source:Invest India Incomes & Savings Survey 2007)

5.1.6 Monthly Household Income:

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Table 1.6

Fig. 1.6

As shown in the above graph, nearly half of the customers lie in the income segment of

Rs.75,001 to 1,00,000 and more than 27% of the customers belong to the income of

Rs.100,001 to 1,25,000.

In India where more than 25% of the people live below the poverty line (Source:CIA

Factbook 2008) and the average income is only around Rs.29500 (Source:Financial

36

Level of income Frequency Percentage

50,000-75,000 37 18.5%

75,001-1,00,000 96 48%

1,00,001-1,25,000 55 27.5%

1,25,001-1,50,000 11 5.5%

1,50,001-1,75,000 0 ----

More than 1,75,000 1 0.50%

Total 100 100%


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Express) this car (costing more than Rs.7.5 lakhs) seems to cater an extremely small segment

of customers.

5.1.7BUDGET DECISION:

Table 1.7(a)


Cumulative

Percent

Pre decided 154 77.0 77.0 77.0

Not decided 46 23.0 23.0 100.0

Total 200 100.0 100.0

Table 1.7(b)

Amount Frequency Percentage

6,00,00 to 8,00,000 12 7.8%

8,00,001 to 10,00,000 76 49.3%

10,00,001 to 12,00,000 66 42.9%

Total 154 100%

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Fig. 1.7(b)

Table 1.7(a&b) and Fig. 1.7 (a&b) show that 77% of the respondents decided their budget

before going to purchase the car and out of these nearly 50% of the people had set their

budgets between Rs.8,00,000 to Rs.10,00,000.

5.1.8DRIVING SCENARIO:

38

Table 1.8

DriverFrequency Percent

Valid

Percent Cumulative Percent

Myself 139 69.5 69.5 69.5

Chauffer 45 22.5 22.5 92.0

Family

members16 8.0 8.0 100.0

Total 200 100.0 100.0


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Fig. 1.8

As shown above nearly 70% of the respondents interviewed drive their car on their own,

whereas for around 22% of the respondents their car was driven by the chauffers (drivers).

5.2ANALYSIS OF CUSTOMER PROFILE:

By analyzing the data collected above, it can be said that usually the profile of an

all new Honda City customer would look as follows:

The Customer would usually be a Male, who belongs to the age group of41 to 50

years, is married and has kids.

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He would usually be a Graduate who runs his own business and earns a monthly

income of around Rs. 75,000 to 1,00,000(or higher).

The analyses also show that while buying the car the customers have a pre-decided

budget of around Rs.8 lakhs to 10 lakhs.

The city customers usually drive their car on their own.

5.3Other important information regarding the City customers:

5.3.1PURCHASE CRITERIA:

Key Factors Considered Before Buying A Car:

1. Brand Name:

Section I.1

2. Price Of The Car:

40

Table 3.1(a)


Cumulative

Percent

Yes 126 63.0 63.0 63.0

No 74 37.0 37.0 100.0

Total 200 100.0 100.0


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Table 3.1(b)


Cumulative

Percent

Yes 60 30.0 30.0 30.0

No 140 70.0 70.0 100.0

Total 200 100.0 100.0

3. Exterior Styling:

Table 3.1(c)


Cumulative

PercentYes 52 26.0 26.0 26.0

No 148 74.0 74.0 100.0

Total 200 100.0 100.0

4. Interior Styling:

41

Table 3.1(d)


Cumulative

Percent

Yes 39 19.5 19.5 19.5

No 161 80.5 80.5 100.0

Total 200 100.0 100.0


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5. Performance:

42

Table 3.1(e)


Cumulative

Percent

Yes 27 13.5 13.5 13.5

No 173 86.5 86.5 100.0

Total 200 100.0 100.0


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When the customers were asked that, what were the key factors that they considered while

buying the car?

i. 126 out of 200 respondents agreed that Brand Name was a key factor that was

considered while buying the car.

ii. 60 out of 200 respondents said that price of the car was an important while

buying the car.

iii. 52 out of all the respondents agreed that Exterior styling was an important

criteria while buying the car.

iv. 39 out of 200 respondents considered interior styling to be a key factor.

v. 27 respondents believed that the performance of the car was an important

consideration for buying the car.

The possible reason behind the importance of Brand name while purchasing a car is the fact

that Brand name is considered an indicator of the performance and quality of the product.

It can also be seen that price of the car is also among the top priorities for the price sensitive

Indian customer. However the fact that the Brand name comes before the price, shows that

the Indian customers are willing to pay lavish amounts if such prices are justified by the

quality provided.

Similar results were depicted by a research conducted by The National Council of AppliedEconomic Research in automobile industry, which broke the myth that Maruti 800 (A.C.

variant) & Hyundai Santro (A.C. variant with power steering) would not sell due to their high

prices. However both the cars were welcomed by the Indian customers with open arms.

5.3.2Source of Information:

43

Internet


Cumulative

Percent

Yes 103 51.5 51.5 51.5

No 97 48.5 48.5 100.0

Total

200 100.0 100.0


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44

Word of mouth


Cumulative

Percent

Yes 111 55.5 55.5 55.5

No 89 44.5 44.5 100.0

Total 200 100.0 100.0

T.V.


Cumulative

Percent

Yes 29 14.5 14.5 14.5

No 171 85.5 85.5 100.0

Total 200 100.0 100.0


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As shown above, according to more than 55% of the respondents who were interviewed,

while buying a car they consult their friends and family for the information about the car.

This shows that Word Of Mouth is the most important source of information for a buyer

while buying the car.

Word of mouth is considered to be one of the most economical yet immensely important

sources of advertisement for any company but in order to spread a positive word of mouth the

company needs to provide maximum possible satisfaction & value to the customers.

The survey also shows that internet & T.V. were among the other important sources for

information. However these forms of media still remain under used in India, by Honda.

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5.4 Competitive Analysis:

Other cars considered

The survey reveals that 68% of the customers considered Hyundai Verna as one of the

options while purchasing their cars. According to most of them the main reasons for

considering Verna were the Brand Name Hyundai & the after sales services provided by

the company.

The Sx4 was the other most mentioned car and nearly 48% of the people considered it as a

purchase option. They found the sporty & masculine look of the car very attractive.

46

Name of the car Frequency PercentageHyundai Verna 136 68%

Sx4 95 47.5%Fiat Linea 63 31.5%

Chevrolet Optra 58 29%Accent 31 15.5%


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The new Fiat Linea & Chevrolet Optra were also among the other options considered by the

customers.

Another reason which was given unanimously, in the favour of these cars, was that all of

these cars came with a diesel variant. However, Honda still does not have a diesel car in their

line up.

5.5 Analysis Customer Satisfaction:

5.5.1Audio System:

47

Level of satisfaction from the audio system


Cumulative

Percent

N/A 15 7.5 7.5 7.5

Highly satisfied 28 14.0 14.0 21.5

Satisfied 113 56.5 56.5 78.0

Neither satisfied nor

dissatisfied22 11.0 11.0 89.0

Dissatisfied 16 8.0 8.0 97.0Highly dissatisfied 6 3.0 3.0 100.0

Total 200 100.0 100.0


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Fig. 5.1

The customer survey revealed that out of all the respondents, more than 56% of the

respondents were satisfied with the performance of their cars audio system and 14% of

them were highly satisfied. Whereas around 11% of the respondents were indifferent

towards the same. Another 8% of the respondents were dissatisfied with the performance and

3% of them seemed to be highly dissatisfied. The leftover 7.5% of the respondents did not

comment as they owned the 1.5E variant of the all new Honda City which does not have an

audio system.

Despite the high rate of satisfaction among the respondents, regarding the performance &

sound quality of the audio system, more than 78% of the respondents complained about the

absence of a CD/Cassette player in 1.5 S(MT & AT). And almost all the 1.5E variant

owners suggested that an audio system should be added to the car as a basic feature.

5.5.2Overall Styling & Features:

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Fig 5.3

49

Frequency of Scores allotted (in percentage)

Features 1 2 3 4 5

Exterior Styling --- --- 46% 53.50% 0.50%

Interior Styling --- --- 51% 49% ---

Spaciousness --- --- 43% 57% ---

Riding Comfort --- --- 43.50% 56% 0.50%

Safety --- --- 46% 54% ---

Image --- 1.50% 43.50% 54.50% 0.50%

Handling --- --- 39.50% 60.50% ---

Fuel Efficiency --- --- 57% 43% ---


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When the customers were asked to score the main features of their all new Honda City on a

scale of 1 to 5. The above responses were observed by the researcher.

On the basis of the data collected above it can be seen that almost everybody is happy with

the main features of the car.

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5.5.3Additional features:

Table

S. NO. RequestedFeature

Frequency Percentage Pricewilling topay(in Rs.)

1.CD/Cassette

player 197 98.5%Nil

(Free ofcost)

2. Alloy Wheels 191 95.5%12,000 to

15,000

3. Side AirBags

132 66% 5,000 to7,000

4.

Rear

ParkingSensors 96 48% 1,800 to3,000

5. Navigation 82 41%10,000 to

15,000

When the respondents were asked whether they would like some new features to be

introduced as standard to their all new Honda City & the price they were willing to pay for

the same, the researcher found the above stated results.

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Although both the CD/Cassette player & the Alloy wheels are available in the accessory

packages provided by Honda, the customers feel that both the things are being sold at a very

high price. The cost of alloy wheels in the accessory package is Rs.42,000 while they are

available in the aftermarket for Rs.15,000 to 20,000.

5.5.4Exterior Styling of the Car:

52

Front styling

Score Frequency Percent Valid Percent

Cumulative

Percent

3 84 42.0 42.0 42.0

4 115 57.5 57.5 99.5

5 1 .5 .5 100.0

Total 200 100.0 100.0Side styling


Cumulative

Percent

3 103 51.5 51.5 51.5

4 95 47.5 47.5 99.0

5 2 1.0 1.0 100.0

Total 200 100.0 100.0


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53

Rear styling


Cumulative

Percent

3 83 41.5 41.5 41.5

3.5 1 .5 .5 42.0

4 116 58.0 58.0 100.0

Total 200 100.0 100.0


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The results show that almost all the respondents were happy with the styling and exterior

looks of the car. As none of the respondents rated the car below 3 on a scale of 5.

Due this fact the All New Honda City has also won the UTV Autocar award 2009 for the

best design.

5.5.5Interior Styling:

(a) Accessing from the Drivers seat:

54

Interior colour scheme

score Frequency Percent Valid Percent

Cumulative

Percent

3 126 63.0 63.0 63.0

4 74 37.0 37.0 100.0

Total 200 100.0 100.0


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Instrumental Panel (Design & Visibility)

Score Frequency Percentage

Cumulative

Percentage

3 100 50% 50%

4 99 49.50% 99.50%

5 1 0.50% 100%Total 200 100%

Seating posture


Cumulative

Percent

3 100 50.0 50.0 50.0

4 100 50.0 50.0 100.0

Total 200 100.0 100.0

Leg & Head Room


Cumulative

Percentage3 100 50% 50%

4 99 49.50% 99.50%

5 1 0.50% 100%

Total 200 100%

Audio (Performance & Control)


Cumulative

Percentage3 125 62.50% 62.50%

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4 74 37% 99.50%

5 1 0.50% 100%

Total 200 100%

Air conditioner


Cumulative

percentage

2 5 2.5% 2.5%

3 74 37% 39.5%

4 118 59% 98.5%

5 3 1.5% 100%Total 200 100%

56

Road Visibility


Cumulative

Percent

3 85 42.5 42.5 42.5

4 113 56.5 56.5 99.0

5 2 1.0 1.0 100.0

Total 200 100.0 100.0


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When the customers were asked to mark certain interior features of their all new Honda city

on a scale of 1 to 5, they gave the above stated responses.

The results show that although the customers are happy with these features, some customershave complained about the inefficient performance of the air conditioner. According to such

people the cooling of the air conditioner does not match their expectations.

(b) Accessing from the rear seat:

57

Rear seat comfort

ScoreFrequency Percent Valid Percent

Cumulative

Percent

3 108 54.0 54.0 54.0

4 91 45.5 45.5 99.5

5 1 .5 .5 100.0

Total 200 100.0 100.0


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Shoulder & Leg Room

Score Frequency Percentage Cumulative

Percentage

3 104 52% 52%

4 96 48% 100%200 100%

Cabin space


Cumulative

Percent

3 115 57.5 57.5 57.5

4 84 42.0 42.0 99.5

5 1 .5 .5 100.0

Total 200 100.0 100.0

58

A.C.


Cumulative

Percent

2 1 .5 .5 .5

3 70 35.0 35.0 35.5

4 126 63.0 63.0 98.5

5 3 1.5 1.5 100.0

Total 200 100.0 100.0


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59

Audio System


Cumulative

Percent

3 89 44.5 44.5 44.5

4 110 55.0 55.0 99.5

5 1 .5 .5 100.0

Total 200 100.0 100.0


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While scoring the interior features in context to the rear seat although most of the customers

seemed to be satisfied, some very unhappy with the performance of the air conditioner. A

similar response from respondents was seen while accessing the performance from the rear

seat.

5.5.6Luggage Space:

Frequency of using luggage space


Cumulative

Percent

Very often 11 5.5 5.5 5.5

Often 54 27.0 27.0 32.5

Sometimes 52 26.0 26.0 58.5

Rarely 49 24.5 24.5 83.0

Very rarely 34 17.0 17.0 100.0

Total 200 100.0 100.0

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Frequency of using luggage space & Spaciousness

Spaciousness

Total

Frequency of using

luggage space 3 4 5

Very often 2 8 1 11

Often 11 40 3 54

Sometimes 9 40 3 52

Rarely 16 30 3 49

Very rarely 16 17 1 34

Total 54 135 11 200

61

Frequency of using luggage space & Ease of Loading& Unloading

Frequency of using luggage space Ease of Loading& Unloading

Total3 4 5

Very often 2 5 4 11

Often 14 37 3 54

Sometimes 19 28 5 52

Rarely 23 20 6 49

Very rarely 16 18 0 34

Total 74 108 18 200


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As shown above, 9% to 10% of the respondents who use the luggage space very often,

marked the spaciousness of the luggage cabin as 5 out of 5, whereas 6% of the respondents

who either use the space often, sometimes or rarely also marked the luggage cabin a 5 on 5.

This shows that out of all the respondents the maximum customers who were highly satisfiedwith the space provided were the people who used it very often, which means that the space

is large enough to satisfy the very frequent users.

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According to data collected above, nearly 36% of the very frequent users (of the luggage

cabin) have marked the luggage space a 5 on 5 for the ease of loading & unloading the

luggage in the space provided. As the people who make use of this space very frequently can

be the best source of knowing about the ease or difficulty involved in loading or unloading

the good, we can assume that the luggage cabin has been designed in such a way that it is

very convenient to load or unload luggage in the cabin.

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Nearly 60% of the respondents considered the all new Honda City to be an adequately

powerful car, and another 33% of the respondents consider the car to be really powerful.

The main reason behind could be the use of the Japanese technology & the 1.5L i VTEC

engine which delivers 118 PS.

5.5.8Overall Performance:

65

Engine performance


Cumulative

Percent

3 79 39.5 39.5 39.5

4 121 60.5 60.5 100.0

Total 200 100.0 100.0


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66

Transmission(Gear)


Cumulative

Percent

3 97 48.5 48.5 48.5

4 101 50.5 50.5 99.0

5 2 1.0 1.0 100.0

Total 200 100.0 100.0

Suspension


Cumulative

Percent

2 1 .5 .5 .5

3 117 58.5 58.5 59.0

4 82 41.0 41.0 100.0

Total 200 100.0 100.0


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67

Mileage


Cumulative

Percent

2 1 .5 .5 .5

3 123 61.5 61.5 62.0

4 72 36.0 36.0 98.0

5 4 2.0 2.0 100.0

Total 200 100.0 100.0

Brake

Score

Frequency Percent Valid Percent Cumulative

Percent

3 92 46.0 46.0 46.0

4 105 52.5 52.5 98.5

5 3 1.5 1.5 100.0

Total 200 100.0 100.0


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68

Noise & Vibration


Cumulative

Percent

1 1 .5 .5 .5

3 91 45.5 45.5 46.0

4 106 53.0 53.0 99.0

5 2 1.0 1.0 100.0

Total 200 100.0 100.0


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According to the survey nearly every respondent has ranked the all new Honda City, atleast a

3 out of 5. This shows that almost all the customers are happy with the performance of their

car.

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5.5.9Safety Features:

(a) Importance of Safety Aspect Of a car :

70

Significance of safety


Cumulative

Percent

Very

important70 35.0 35.0 35.0

Important 121 60.5 60.5 95.5

Not important 9 4.5 4.5 100.0

Total 200 100.0 100.0


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When the customers were asked about the significance of the safety aspect of the car, more

than 95% of the customers rated safety as very important or important.

(b) Awareness about the safety features of the City:

Awareness of safety features


Cumulative

Percent

Yes 89 44.5 44.5 44.5

No 111 55.5 55.5 100.0

Total 200 100.0 100.0

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The survey revealed that although 60.5% & 35% of the customers considered the safety

aspect of a car to be important & very important respectively, more than 55% of the

respondents were not even aware about the safety features of the car, and out of the rest, the

most recalled feature were the Air Bags. This is not good from the companys prospective as

the company makes huge investments to make the cars as safe as possible by using the latest

technology. But has not been able to generate the awareness among the customers for thesame.

5.5.10 Pricing Of The Car:

72

Is Honda City "value for money"


Cumulative

Percent

Strongly agree 43 21.5 21.5 21.5

Agree 88 44.0 44.0 65.5

Neither agree nor

disagree37 18.5 18.5 84.0

Disagree 32 16.0 16.0 100.0

Total 200 100.0 100.0


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When the respondents were asked if they thought that all new Honda City was value for

money, nearly 21% of the respondents said that they strongly agreed whereas another 44% of

them said that they agreed. However around 19% of the customers were not sure and the rest

16% disagreed with the statement. This means that nearly 35% of the customers are either not

sure or think that the car is overpriced.

5.5.11 Accessory Package:

(a) Awareness & Response:

Did you purchase it

TotalAwareness No Yes

Yes 31 20 51

No 149 0 149

Total 180 20 200

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This survey shows that out of all the respondents only 51(i.e.25.5%) respondents were aware

about or had knowledge about the accessory package being offered by the company. And out

of those who were aware only 20 (i.e. 10% of the total no. of respondents) actually bought the

accessory package.

Another 15.5% of the respondents who were aware about the accessory packages but did not

buy it. The major reasons given by these people for not buying the packages were:

i) Although they thought that the Elegance packconsisted of utility accessories, but

they believed that the same should be provided by the company as standard

features. They also felt that the same accessories could be bought from the market

at much reasonable price.

ii) According to them, the accessories provided in the Illumination packhave mere

decorative value and provided no utility.

(b) Is the accessory package Value for money:

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"Value for money"

Total

Awareness about

accessory package N/A Strongly agree Agree Disagree

Yes 31 4 7 9 51

No 149 0 0 0 149

Total 180 4 7 9 200

The graph above shows that, out of 31 customers who were aware about the accessory pack,

20% strongly believed that the pack was value for money and 30% of them also agreed to

the same. However, the rest 45% of the respondents believed that the pack was not value for

money.

5.5.12 Strengths & Shortcomings of the car:

Strengths

Strengths Frequency Percentage

Styling & Design 124 62%

Brand Name 112 56%

Comfort 74 37%

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When the respondents were asked to name any three strengths of the all new Honda City,

62% of the customers stated that the styling & design of the car were its biggest strengths.

This shows that the new Arrow Shot Design that was introduced by the company has been

successful to attract the customers.

However, nearly 56% of the customers thought that the Brand Name Honda was thebiggest strength of the car and the main reason for its success.

Whereas 37% of the respondents mentioned overall comfort as one of the strengths of the all

new Honda City.

Weakness

Weakness Frequency Percentage

Low Ground

Clearance 73 36.5%

Light Weight 54 27%

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According to the survey, although most of the people seemed to be happy with theperformance of the car, but when asked to mention a weakness about the car nearly 37% of

the customers showed concern about the low ground clearance of the car.This concern of the

customers is justified if we look at the ground clearance provided by the other competitive

cars:

Name of the Competitive Car Ground Clearance

Hyundai Verna 170(mm)

Sx4 180(mm)

Fiat Linea 165(mm)

Whereas, the ground clearance of Honda City is just 160(mm) which is less than all itscompetitors.

However here it is worth mentioning that, HSCI has taken a step and requested RTOs to

release a regulation specifying the dimensions and designs of the speed breakers for each

state, across the country.

Another 27% of the respondents pointed that the light weight of the car made it look unsafe.

But according to the company the light weight helps in providing more fuel efficiency & the

GCON Design of the car helps in providing maximum possible safety to the passengers,

despite the light weight of the car.

5.6 Findings:

The major findings of the project are as follows:

Customer Profiling:

1. 87.5% of the respondents were male.

2. 36.5% of the respondents belonged to the age group of 41 to 50 years.

3. 80.5% of the respondents were married and had kids.

4. 74% of the respondents were graduates.5. 69.5% of the customers were businessmen.

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6. 48% of the City customers earned a monthly income of around Rs.75,001 to 1,00,000.

7. 77% of the customers had a pre-decided budget in their mind before purchasing the

car, and out of these nearly 50% of the people had decided a budget of around

8,00,000 to 10,00,000.

8. 69.5% of the respondents drive their car on their own.

Other important information regarding the City customers:

9. 63% of the respondents considered the Brand Name of the car, to be the key

consideration while buying a car.

10. According to 55.5% of the respondents word of mouth was the main source of

information about the cars.

Competitive Analysis:

11. 68% of the respondents considered Hyundai Verna as an option while buying their

car.

Satisfaction from the cars, its features & performance:

12. 56.5% of the customers were happy with the performance of the audio system of the

car, whereas 8% of the customers were found to be dissatisfied.

13. 60.5% & 54.5% of the customers scored the all new Honda City a 4 out 5 for its

handling & Image, respectively.14. 98.5% of the customers requested for a CD/cassette player to be provided in the car as

a basic feature and 95.5% of the customers wanted alloy wheels to be added to the

car.

15. 57.5% & 58% of the respondents rated the all new Honda City as 4 out of 5 for the

front & rear styling, respectively. Whereas 51.5% of them gave the side styling a 3

out of 5.

16. Almost all the respondents were happy with the interior styling and design of the car.

However, only some people showed signs of discontentment with the performance of

the A/c of the car.

17.No respondent gave the car less that 3 out of 5 for the luggage space or for the ease of

using it.

18. 59% of the customers thought that the car had adequate power.

19. As far as the overall performance of the car is concerned, only 1 respondent out of

200 gave the car a 2 out of 5 for its millage & suspension and only 1 customer gave

the car 1 out of 5 for the unwanted noise & vibration. Rest all the customers seemed

to be very pleased with the overall performance of the car.

Safety features & the car:

20. 60.5% of the respondents considered the safety aspect of the car to be very important.

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21. 55.5% of the customers were unaware about the advanced safety features of the all

new Honda City.

Pricing of the car:

22. Although 44% of the respondents agreed that the all new Honda City provides value

for money, nearly 16% of them also thought that it was overpriced.

Accessory Package- Awareness & Purchase:

23. Only 25.5% of the respondents were aware about the availability of the accessory

packages.

24. Only 10% of the total number of respondents actually bought the accessory package.

25. Out of those respondents who bought the accessory package 35% think that the

package is not value for money.

Strengths & Weaknesses of the car:

26. 62% of the respondents believe that the styling & design of the car are its biggest

strengths. Whereas 56% of them think that the Brand Name Honda is the cars main

strength and 37% of them thought that the comfort provided by the car was its main

strength.

27. According to 36.5% of the respondents low ground clearance of the car was its main

drawback, whereas 27% of them thought that the light weight of the car was it main flaw.

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5.6 Limitations:

The limitations of the survey as perceived by the researcher are as follows:

1. The sample size of the survey was very small, Due to limited access to RTO

Authorities and Honda Showrooms.

2. The scope of survey was limited to Delhi and NCR.

3. As the questionnaire was lengthy and time consuming, the respondents often

lost interest and became impatient. Hence the answers given by them may

suffer from biasness.

4. Some of the open-ended questions were subject to the knowledge of and

interpretation by the researcher.

5. Most of the respondents had used the car for a period of less than six-months,

therefore their level of satisfaction from the car is expected to fall with the

passage of time.

6. The limited knowledge of the research in the field of research was anotherlimitation related to this survey.

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CHAPTER VI:Recommendations &

Conclusions

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6.1 Recommendations:

On the bases of the findings of the survey conducted, the researcher

made the following suggestions and recommendations to the Honda Siel

Cars India Ltd. :

1. The all new Honda City has not been able to attract younger

audience, as planned by the company at the time of the launch of

the car. This is mainly due to the high price of the car. Therefore the

company must reduce the price of the car, if it wishes to attract

the younger segment of the market.

2. In order to penetrate deeper into the market of a developing

country like India, where the consumers have limited resources, the

company should try and study the possibility of introducing a Low

Priced Variantof the car.

3. Company should adopt new marketing strategies and

programmes in order to strengthen the brand Honda, as the

Brand name seems to be the major criteria for purchasing a car.

4. While all the major competitors of the all new City offer a dieselvariant, HSCI still does not have anything to offer in the same

respect. Thus the company should study the possibility of

introducing a diesel variant in the line up, keeping in mind the

high initial cost of the diesel engine and it should also try and

take steps to reduce the gap between the usage of petrol &

diesel.

5. An audio system should be provided as a basic feature in the 1.5E

variant of the car and a CD/Cassette player should be added to

the audio system of the 1.5S variant, as these were the stronglyrequested in the Most Wanted Features.

6. Although alloy wheels are available as a part of the accessory

package customers have strongly requested that they should be

provided with the car as a standard accessory. Moreover the alloy

wheels in the accessory package cost Rs.42,000, whereas they are

available in the aftermarket for just Rs. 15,000 to 20,000. Thus HSCI

not only needs to reduce the price of the alloy wheels present

in the accessory package but also needs to study the possibility of

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providing them as a standard accessorywithout charging

extra from the customers.

7. Measures should be taken to improve the performance of the

air conditioner provided in the car, as some of the respondents

seemed to be dissatisfied with it.

8. The company needs to undertake strong steps to educate the

customers about the advanced safety features present in

the car, because although a large number of customers consider

the safety aspect of a car to be important or very important more

analysis of new honda city customer profile & satisfaction level report

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