A PROJECT REPORT ON

Marketing Strategy of Honda Active I

In the subject Strategic Management

SUBMITTED TO
UNIVERSITY OF MUMBAI
FOR SEMESTER I M.COM (ADVANCED ACCOUNTING PART I)

BY
NAME OF STUDENT

URMILA MISHRA
ROLL NO (14-7291)
YEAR 2014

DECLARATION

I URMILA POORANSANKAR MISHRA Roll No.14-7291, the student

of M.Com. (Accountancy)

Semester

Dombivli, Affiliated to University of

(2014),

K.V.Pendharkar

College,

Mumbai, hereby declare that the

project for the subject Strategic Management titled To Study Marketing

Strategy Of ACTIVA I submitted by Me to University of Mumbai, for
Semester I examination is based on actual work carried by me.

I further state that this work is original and not submitted anywhere else
for any examination.

Place : DOMBIVLI
Date:

Signature of the Student

NAME: URMILA P. MISHRA
ROLL NO: 14-7291

ACKNOWLEDGEMENT
It is a pleasure to thank all those who made this project work possible.
I Thank the Almighty God for his blessings in completing this task. The
successful completion of this project is possible only due to support and
cooperation of my teachers, relatives, friends and well-wishers. I would like to
extend my sincere gratitude to all of them. I am highly indebted to my subject
teacher Mrs. Rajeshri Deshpande for her encouragement, guidance and Support.
I also take this opportunity to express sense of gratitude to my parents for their
support and co-operation in completing this project.

Name of the Student

URMILA MISHRA
INDEX

SR.N

TOPIC

PG.NO

O
1
2
3
4
5
6
7
8
9

Introduction
Objective
Research Methodology
Data Analysis
Scope And Limitation
Concept
Organization
Finding & suggestions
Conclusion

INTRODUCTION
MARKETING STRATEGY

5
7
8
9
19
20
24
33
34

Marketing strategy is the goal of increasing sales and achieving a sustainable

competitive advantage. Marketing strategy includes all basic and long-term
activities in the field of marketing that deal with the analysis of the strategic initial
situation of a company and the formulation, evaluation and selection of marketoriented strategies and therefore contributes to the goals of the company and its
marketing objectives.

The term "Marketing" is widely misunderstood. Many people when asked;

"What is Marketing?", will respond with answers such as; "Producing TV
advertisements", "writing catch phrases", "producing brochures", "a conspiracy to
make people buy more than they need", "improving brand awareness", "fancy
packaging", or "sponsoring the Olympics". In fact these are all part of Marketing,
but only a small part.
Marketers describe the above activities as promotions, which are designed to create
awareness, interest, desire, and action among potential customers.
Strategic Marketing, in addition to the promotions described above, also
addresses issues such as; what products or services should we be involved with?
How much should we charge for them? How do we make it easy for people to
purchase our products?
The simple question "What products or services should we be involved with?" is a
massive issue. It encompasses; what do potential consumers want? What is the
competition like? Will we make any money doing this? Do we have the capability
to deliver what is required? Would we be better doing something else? Is the

market long term or short term? How do we address the market we have
identified? Does the market break down into market segments? Etc.

The point of this is to emphasize that there is more to strategic marketing than is
commonly understood. Strategic Marketing is defined in the "Marketing Concept",
of which there are several different definitions, but all of them incorporate the
broad definition of marketing alluded to above.
By this project we came to know about the customers response towards this
product. By analyzing this product we come to know about the specification and
reputation of it.

OBJECTIVE
This project aims on the market position, performance
and reputation of the product Honda Activa I . For that we have taken the feedback
of 30 respondents on Honda Activa I.
Recently in market there has been boom of advance technology and
advance scooters and in that this product is more convenient and has good
reputation. In this project we had done analysis of marketing strategy of Honda
Activa I.

RESEARCH MEDHODOLOGY
.

(A) PRIMARY DATA

Primary data is the first hand information collected from respondance with the help
of questionnaire, interviews, and schedules. In this project a structured
questionnaire is prepared & data of 30 respondance is collected, tabulated &
analyzed on percentage basis.

(B) SECONDARY DATA

Secondary data is information collected through publish data, various reference
book, journals, magazines, bulletins, weekly & papers published & articles are
referred.

DATA ANALYSIS

Q.1) Is Active I your first two wheeler?

Criteria
Yes
No

Respondents
20
10

Percentage
67
33

Respondents

Yes

No

As per the table & the reply from the respondents is clearly indicates thats 67%of
the respondent have bought the product for the first time that means the market
strategy of the company is adopting, attractive the customer to buy it at the first
time

Q.2) Are you satisfied with Activa I mileage?

Criteria
Yes
No

Respondents
19
11

Percentage
63%
37%

Respondents

Yes

No

The companys Activa I mileage is 60kmph,whereas the survey of 30

respondents clears that only 63% are getting a good mileage whereas 37% are not
satisfied with it. may be a reason behind of unsatisfactory that they may not be
servicing it properly. The product image regarding mileage is very good in the
market.

Q.3) Are you satisfied with after sales services provided by Active I?

Criteria
Yes
No

Respondents
18
12

Percentage
33
67

Respondents

Yes
No

As per the table & reply from the respondents is clearly indicates
thats 60% of the respondent have satisfied with after sales services and 40% is not
satisfied.

Q.4) Will you recommend Activa I to anybody?

Criteria
Yes
No

Respondents
23
07

Percentage
77
23

Respondents

Yes

No

As per chart indicate thats 77% respondent to recommend while the

other 23% respondent do not recommend this.

Q.5) which other scooty do you find more flexible than Activa I?

Criteria
TATA
Wego
Activa I

Respondents
16
13
11

Percentage
40
33
28

Respondents

TATA

Wago

Activa I

As per the chart indicate thats 28% respondent says flexible, and other respondent
can voted other scooty. It means more respondent cannot satisfy the product.

Q.6) Is Activa I an affordable scooty?

Criteria
Yes

Respondents
25

Percentage
83

No

05

17

Respondents

Yes

No

As per the chart indicate thats 83% respondent is says Activa I

as affordable scooty other 17% respondents says not.

Q.7) Which Honda vehicle would u like to purchase?

Criteria
Active
Bike

Respondents
11
12

Percentage
37
40

Car

07

23

Respondents

Activa

Bike

Car

As per the chart indicate thats 40% respondents purchase bike and 37%
purchase Activa . The product service is good in the market.

Q.8) Does the Honda service center helps you out with all your queries
regarding scooty?
Criteria
Yes
No

Respondents
20
10

Percentage
67
33

respondents

Yes

No

For the above chart indicate thats the Honda service center help is
67% respondent satisfied and 33% respondents not satisfied. The Honda service
center is improving their service.

Q.9) Do you think Activa I is ecofriendly?

Criteria
Yes
No

Respondents
26
04

Percentage
87
13

Respondents

Yes

No

Above the chart shows thats 87% respondent think Activa I is

an ecofriendly and 13% think thats not ecofriendly. The most of the respondent
can think thats Activa I is ecofriendly.

Q.10) Are you happy with the sales scheme provided by you?
Criteria
Yes
No

Respondents
24
06

Percentage
87
13

Respondents

Yes

No

As per the chart shows thats 87% respondent is happy with the
sales scheme provided them because most of the customer is attract there product.
Its create a good reputation in the market.

SCOPE AND LIMITATION

1. Data collected is limited to only 30 respondents.
2. This study contains 10 questions in data analysis.
3. Respondents have proved that the information collected is sufficient to
satisfy the study of marketing strategy.

PROFILE OF HONDA ACTIVA I

CONCEPT
Marketing Strategy

 The marketing guru Philip Kotler defines the Marketing Concept as:
"The marketing concept holds that the key to achieving organizational goals
consists in determining the needs and wants of target markets and delivering the
desired satisfactions more effectively and efficiently than competitors"
This Kotler breaks down into four components; Market Focus, Customer
Orientation, Coordinated Marketing and, Profitability.
Some alternative definitions of the Marketing Concept include:
"Your business will perform better, if you know what people want in the first
place." Anon.
"Marketing is not only much broader than selling; it is not a specialized activity at
all. It encompasses the entire business. It is the whole business seen from the point
of view of its final result, that is, from the customer's point of view." Druker.

Real-life marketing
Real-life marketing primarily revolves around the application of a great deal of
common-sense; dealing with a limited number of factors, in an environment of
imperfect information and limited resources complicated by uncertainty and tight
timescales. Use of classical marketing techniques, in these circumstances, is
inevitably partial and uneven.
An organization's strategy combines all of its marketing goals into one
comprehensive plan. A good marketing strategy should be drawn from market
research and focus on the right product mix in order to achieve the maximum profit
potential and sustain the business. The marketing strategy is the foundation of a
marketing plan.

Principles of Strategic Marketing

Know thyself and know thy audience. Most small businesses don't
create a marketing plan, often adopting a fly-by-the-seat-of-yourpants mentality or just copying the marketing efforts of a
competitor. This can lead to the decision to stop spending
marketing dollars when the efforts go flat. There are a few simple
questions that a business owner should ask himself to create the
basis for strategic marketing for the business.

(A)Who Are You

Most small businesses may start because of a great idea yet have
no clue as to who they are in the marketplace. Part of your
strategy involves defining your business: Create a mission
statement, and find your objective, by addressing important,
foundational questions. What is the point of your product or
service? How does it help consumers or other businesses? What is
the goal you are trying to accomplish? Your answers should be
succinct and clear.

(B) Create a Marketing Outline

Your outline -- which should include your mission statement,
objective and your product or service -- serves as a reference for
your marketing efforts. It must define your short- and long-term
goals because it's important to understand what you are trying to
achieve in order to appropriately allocate your resources.

Determine your demographics; understand why consumers would

choose you and how you're benefiting them. Finally, do research
about the competition and the marketplace to know your
positioning. Once you are clear, you can put a marketing budget
together.

(C) Where Are Your Customers?

Where to market and what tools to use depend on where you find
your customers. Get to know your audience. Is this an Internetsavvy group, or are they more likely to respond to a postcard,
brochure or some other item in the mail? Is it a short-term or
long-term sale? Understanding who you are trying to market to is
the key to your marketing strategy. Just throwing mud on a wall to
see if it sticks wastes precious resources.

(D) Focus Creates Success

Many business owners see the big picture and too often want to
serve the whole seven-course meal before their customers have
even tried the first course. Your marketing strategy needs to think
big but focus small. Market the one thing you do exceptionally
well, and focus your budget, your time and where you choose to
spend your marketing dollars wisely. When you have a solid return
on investment, you also should have a solid understanding of
what else your clients need. From there, begin focusing your
marketing efforts on the next product or service, and watch your
bottom line grow.

Strategic models
Marketing participants often employ strategic models and tools to analyze
marketing decisions. When beginning a strategic analysis, the 3Cs can be
employed to get a broad understanding of the strategic environment. An Ansoff
Matrix is also often used to convey an organization's strategic positioning of their
marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue a
defined strategy. Marketing Mix Modeling is often used to simulate different
strategic flexing go the 4Ps. Customer lifetime value models can help simulate
long term effects of changing the 4Ps, e.g.; visualize the multi-year impact on
acquisition, churn rate, and profitability of changes to pricing. However, 4Ps have
been expanded to 7 or 8Ps to address the different nature of services.
There are many companies especially those in the Consumer Package Goods
(CPG) market that adopt the theory of running their business centered on
Consumer, Shopper & Retailer needs. Their Marketing departments spend quality
time looking for "Growth Opportunities" in their categories by identifying relevant
insights (both mindsets and behaviors) on their target Consumers, Shoppers and
retail partners. These Growth Opportunities emerge from changes in market trends,
segment dynamics changing and also internal brand or operational business
challenges. The Marketing team can then prioritize these Growth Opportunities
and begin to develop strategies to exploit the opportunities that could include new
or adapted products, services as well as changes to the 7Ps.

 ORGANISATION

HONDA ACTIVA I

Honda Motor Co. is a Japanese public multinational corporation primarily known

as a manufacturer of automobiles, motorcycles and power equipment.
Honda has been the world's largest motorcycle manufacturer since 1959, as well as
the world's largest manufacturer of internal combustion engines measured by
volume, producing more than 14 million internal combustion engines each
year. Honda became the second-largest Japanese automobile manufacturer in
2001. Honda was the eighth largest automobile manufacturer in the world
behind General Motors, Volkswagen Group, Toyota, Hyundai Motor
Group, Ford, Nissan, and PSA in 2011.
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 intelligence/robotics research and released
their ASIMO robot in 2000. They have also ventured into aerospace with the
establishment of GE Honda Aero Engines in 2004 and the Honda HA-420 Honda
Jet, which began production in 2012. Honda has three joint-ventures in China
(Honda China, Dongfeng Honda, andGuangqi Honda).
In 2013, Honda invested about 5.7% (US$ 6.8 billion) of its revenues in research
and development. Also in 2013, Honda became the first Japanese automaker to be

a net exporter from the United States, exporting 108,705 Honda and Acura models
while importing only 88,357

ACTIVA I
Ever since Honda introduced the Active in 2000, it has managed to get a tight
noose in the automatic scooter segment. And although it continues to dominate the
market, over time a lot more avenues have opened up for manufacturers to exploit.
This class of two wheelers is no longer simply categorised by engine and
efficiency but by form and function as well. While there are young and stunning
offerings out there like the Honda Dio and the Suzuki Swish, the other end of the
spectrum comprises scooters like the Activa and the Mahindra Duro DZ which
appeal to a more mature audience.
Despite the big H pitching the Activa i as a unisex scooter, it is smaller and sleeker
than the Activa making it a better fit for the fairer sex. The slim front fascia with
the clear lens turn indicators and the leaning headlight make the scooter appear
fresh. The arc shaped side panels that blend well into the tail lights host the Activa
i badge. Even though the dimensions are similar to the Activa, the younger offering
is much lighter thanks to its fibre body panels. It is also marginally longer (30mm)
than the Activa, but still the floorboard is big enough to rest just the foot, leave
aside the front storage box thats available as an option on the Activa. The seat,
however, is long enough to seat two comfortably.
Like all scooters, this too has a basic instrument cluster with an analogue speedo
and a fuel gauge. Switch gear is par for the course while the handle bars are well
positioned for a good riding posture. Under the seat, the Activa I has 18 liters of
storage space. The new offering also comes with a tyre hugger for the rear wheel.

The overall look and feel is good but it could have done wonders with better
quality plastics.
Underneath the skin the Activa I host the same engine as on the new Activa a
109.2cc four-stroke air-cooled mill with the patented Honda Eco Technology.
Needless to say the power output also remains the same at 8.1PS @ 7,500 rpm and
8.74Nm @ 5,500rpm. Mated to a V-matic transmission, the Activa I has good low
and mid-range boost which makes it a breeze to ride in the city. In our tests it
touched the 60km/h mark from standstill in a respectable 8.43seconds which is a
tad faster than the Activa and also recorded a top speed of 88.28km/h.
The 130mm dia drum brakes up front and the Combi brakes of the same size at the
back, work well in bringing the scooter to a halt from 60km/h in just 17.25metres.
Of course, this has also got a lot to do with the 90/100 10-inch MRF Zapper
tubeless tyres at the front as well as the rear, which ensure that the rider feels
confident even under heavy braking. In terms of performance, the Activa I meets
all expectations from a scooter from the Honda stable and, more importantly, the
Activa family.
Honda has made all the right moves with the launch of the Activa I, especially
taking into consideration the fact that it is priced at Rs 44,200 (ex-showroom
Delhi) which is almost Rs 3,000 cheaper than the Activa. No doubt that in a price
sensitive market like ours, the difference in cost definitely has an equivalent effect
in the buying decision. The Japanese two-wheeler manufacturer has also played a
very smart and safe strategy by capitalizing on the already established Activa
brand.

There was a time when people talked only of Bajaj scooters. Then, there came
Kinetic Honda to give a tough competition to Bajaj. Kinetic gave Indians the
gearless, strong and sturdy scooter. The time changed and it is now the turn of

Honda Motors and Scooters India Limited, to gain popularity in this segment.
Three gearless 110 cc engine scooters of Honda HMSI are already popular in the
market. These models of Honda scooters are popular with the names Dio, Activa
and Aviator. They are priced between Rs. 44,718 and Rs. 53,547 (Ex-showroom
Delhi). Another name can now be added to this trio, since Honda Motors and
Scooters India Limited has launched the new Honda Activa i on June 12, 2013.
Priced at Rs. 44,200 (ex-showroom Delhi), this will be the most affordable and
competitive model in this segment of scooters. The new model will be available for
sale throughout the country by June end. The Honda Motors has strategically
categorized this scooter as a personal compact scooter.
The President and CEO of Honda Motors and Scooters (HMSI) Limited, Keita
Muramatsu hinted at the company's strategy in the following words commenting
on the launch of the scooter: "As a leader in the automatic scooters segment,
Honda's entry into the personal compact segment with ACTIVA-I is its next
strategic step towards reinforcing its market leadership." According to the CEO of
HMSI, the company is now engaged in the development of a new two wheeler,
which will be a hundred percent indigenous product. However, it was not disclosed
whether the new product will be a motorcycle or a scooter. The new product is
likely to be completed within a year. Honda has already captured 50 per cent of the
scooter market in India. The company now aims to be the largest two-wheelers
manufacturer in India by 2015. Let us now discuss the features and specifications
of Honda Activa I.

Engine and performance of the new Honda Activa I

Honda Motors and Scooters India Limited did not make changes in the engine of
the new model. It has used the same 109.2cc 4-stroke air cooled engine by which
its earlier version Honda Activa has been powered. This engine produces power of
8.15 PS @ 7,500 rpm. The torque is of 8.74 Nm @ 5,500 rpm. The best thing to
talk about its performance is the new Combi Brake System (CBS). This has greatly
reduced the braking distance by 24%, as compared to the traditional braking
system. The scooters mainly suffer from their low fuel economy. However, Honda
Activa I is a marvelous scooter in the matter of fuel economy giving the user a
mileage of 60 kmpl. This is a great change brought in the scooters by the use of
Honda Eco Technology (HET).

 Tubeless tyres, viscous

air filter and

maintenance free
battery
Another great feature of Honda
Activa I is its tubeless tyres. The
viscous air filter and the
maintenance free battery give the
rider of this wonderful vehicle a
pleasurable riding experience.

Storage space, fuel

tank, ground clearance
and ergonomic grab
rail
There is quite a large storage space
of 18 liters, which is conveniently
located under the seat. The fuel
tank capacity is 5.3 litres. Fill and
forget strategy of Honda can be
applied here. You can have a tension free ride for hundreds of kilometres by just

filling the tank once. There is a good clearance of 165 mm from the ground. This,
in fact, is 12 mm more than what is provided in the former versions of Honda
Activa. The women riders will feel the new scooter very convenient to use, when
they have to put the scooter on its main stand. The new Honda takes 15 percent
less force to be used when putting it on the main stand, thanks to its ergonomic
grab rail.

Appearance and style

The new indicators and the new tail lamp gives very good appearance to your new
Honda Activa I. The new scooter has slim and sleek design, which is one of the
best among the scooters available in the industry. The company has lifted the
superb design from its already existence Honda Aviator.

Signal to a price war among 110 cc scooters

Honda Activa I have given a green signal to ensuing price war among scooters
with 110 cc engine. This will benefit the buyers of scooters in this segment. The
new Honda is priced lower than the earlier 110 cc engine scooters like Honda
Activa and Honda Dio. Honda Activa i have been given a lower price tag than TVS
Wego110. This is certainly going to increase rivalry in the scooters manufacturers
as far as the price of the scooters in this segment is concerned.

 Price, availability and colours

Honda Activa I am likely to put for sales throughout the country by this month end.
The basic price of the scooter is kept at Rs. 44,200 (ex-showroom Delhi). Like its
predecessor Honda Activa, the new Honda Activa I am surely to be one of the best
selling scooters in the market. The company has already established a new factory
near Bangalore for the assembly of this scooter and there is no likelihood of delay
in the delivery of this scooter. The new scooter will be available in Beige, White,
Red and Silver colours.

FINDINGS AND SUGGESTIONS

Findings
1. Major of the customers of Honda Activa I are belongs to age group
above 40 years (40%)
2. 31% of the customers have opined that product performance is good
3. 33% of the respondents have a poor opinion about the after sales service

Suggestions
1. Only 10% of respondents have an excellent opinion about product
quality. So quality of the scooter should improved
2. 40% of the respondents have a poor opinion about companies after
sales service. So after sales service should be improved.

Conclusions
From this project we can conclude that customers are overall satisfied
with Honda active I. On an average more than 83% people feel that the prices
are affordable whereas 17% do not agree.