MARKETING PLAN OF

HONDA CITY
By Puneet Mendon

Four Wheeler Segmentation

HONDA CITY
Honda city is a mid sized car for Honda Siel Cars India ltd. Honda city crossed 50k units in 2009. Honda City was market leader from 2000. It used to be a matter of pride to own and drive a Honda City

Honda City Variants

Variants Honda City 1.5 E MT Honda City 1.5 S MT Honda City 1.5 S MT Elegance Honda City 1.5 VMT Honda City 1.5 S MT Inspire Honda City 1.5 V MT Elegance Honda City 1.5 V MT Exclusive Honda City 1.5 V MT Inspire Honda City 1.5 VAT Honda City 1.5 V AT Elegance Honda City 1.5 V AT Exclusive Honda City 1.5 V AT Inspire Price 7,49,000 8,19,600 8,56,241 8,64,800 8,90,738 8,99,404 9,16,900 9,35,938 9,37,000 9,71,604 9,89,100 10,08,138

SWOT Analysis
Strengths Reliability Brand Name Elegant appearance Weakness Not able to sustain in High Competition No Diesel Engine Lack of features

SWOT Analysis
Opportunities Customer loyalty Innovation Threats Available only in petrol engine High Competition Rise in petrol price

DOWN FALL OF HONDA CITY

Demand shifted to fuel efficiency due to rise in petrol price. More competitors entered with diesel variant and more features . Not appropriate steps taken to regain the top position.

DOWN FALL OF HONDA CITY

SALES IN UNITS
4500 4000 3500 3000 2500 2000 1500 1000 500 0 2010 2011 March 4338 2773 April 2787 1542 May 3121 1828 Source- NMIPL

CITY VS VENTO
Sales in units
4500 4000 3500 3000 2500 2000 1500 1000 500 0 Mar/11 Apr/11 May/11 Source- NMIPL 1542 2773 2866 2403 1828 Honda City Volkswagen Vento 3973

Price and Features

Maruti SX4 Price Air Bags Start Push Button 7,78,999 TWO No Hyundai Verna 8,09,651 SIX Yes Yes Yes Honda City 7,49,000 TWO No No No VW Vento 8,19,000 TWO No Yes No

Climate Control Yes Rear Parking Sensor No

Market Share
Sales (March 11)
others 23%

Maruti Swift Dzire 28%

VW Vento 11% Maruti SX4 10% Tata Indigo 20%

Honda City 8%

Source- NMIPL

Mission
Acquire market share of 15% in sedan segment Bring out innovation and differentiation in the new launch

Customer s Need

Emotional Needs  Elegant Looks  Dependable and loyal  Well balanced and fuel efficient

Mind-Set  To have a luxurious feeling while driving  Makes feel more comfortable and pride  Cost conscious  Fuel efficient

Functional Needs  Long lasting/ Safe/ Good performance  Reliable and Trustworthy Performance  Spacious / Roomy  Flexibility / Utility

Positioning of Honda City

People who wants to travel

People who wants four wheelers and are sedan lovers

Geographic- Tier1 and Tier 2 cities Demographics-Income(Upper Middle, High) Lifestyle- Family use, Personal use Cities and Rural areas Upper Middle and Higher Incomer groups Families

Upper middle and higher income families who wants to upgrade from hatchback to sedan car.

PRESTIGIOUS CAR

Marketing MIX
Product  Diesel Engine  Two Variants in Diesel  Available in three colours  Induce more airbags

Marketing MIX
Product Available in 3 variants(Dx, Dxi,Dhi).
DX Diesel Engine Push Start Chrome Climate Control Y N N N DXI Y Y Y N DHI Y Y Y Y

Price
As diesel engine and other feature are implemented the cost of this car has raised.

The revised price will be Rs 8,05,000 little lesser than Vento and Verna. Brand Value

Promotion
Advertisement- TV Commercials and News paper Trade Show Partnership with ICICI Social Media Community

A DRIVE WITH PRESTIGE

Place
Minimize Channel length will prevent price escalation and preserving its competitive advantage. Increase the number of dealers. Improve the efficiency of logistics.

Conclusion
WITH DIESEL VARIANT AND ADDED FEATURES IN THIS CAR , CONSUMER WILL SURELY GET ATTRACTED AND THE MISSION OF ACHIEVING 15% OF MARKET SHARE WILL DEFINITELY BE ACHIEVED. AS THERE IS VARIOUS PROMOTION MADE, THIS CAR WILL SURELY BECOME A HOT CAKE FOR INDIAN CAR CONSUMER.

 THANK YOU