A TRAINING REPORT

ON
TITLE OF TRAINING

Submitted in partial fulfillment of the requirement of Bachelor of Business Administration

JAI NARIAN VYAS UNIVERSITY, JODHPUR

Training Report Submitted to Submitted by

Mr. S.S.Ramdeo Name: KOUSIK TAK
Training Co-ordinator Enrollment No:

Training Supervised By
Companys Supervisors Name
Designation
Organization

Session 2016-17

AISHWARYA COLLEGE OF EDUCATION (A.C.E.)

A-9, K. N. Nagar, Opp. National Handloom (Pratap Nagar)
Jodhpur-342003 (Raj.)
Phone - (0291) 2670175
E-Mail info@aishwaryacollege.edu.in
 CERTIFICATE

This is to certify that Mr./Ms.___KOUSHIK TAK___________, Enrollment No.___________

has proceeded under my supervision his/her Training Report on ____________

The work embodied in this report is original and is of the standard expected of an BBA student

and has not been submitted in part or full to this or any other university for the award of any

degree / diploma. He/She has completed all requirements of guidelines for project report and the

work is fit for evaluation

(Mr.S.S.Ramdeo)
Training Co-ordinator
Aishwarya College of Education
 UNDERTAKING

I herby declare that total work of this Training Report entitled ________ in <companys

Name> is an original work of mine is done during the month _________as part of Summer

Training under the guidance of ____________ (Name of Project Guide in Company) to the

best of my knowledge and beliefs the facts mentioned in the report are true.

Name of Student
Enrollment no.:
BBA Part IV
 ACKNOWLEDGMENT

I would like to thank my Training Supervisor XYZ, <Designation>, <HONDA>,

Jodhpur for guiding me through my Industrial training. His encouragement, time
and effort are greatly appreciated.

I feel immense pleasure to express a deep sense of gratitude to Dr. Rishi Nepalia,
Principal, Aishwarya College of Education, Jodhpur who has given me an
opportunity to do training. I would also thankful to my Training Guide
Mr.S.S.Ramdeo and Faculties for their constant support and guidance. Their
valuable suggestions and helping hands has helped me to complete my training
successfully

Lastly I would like to thank all the employees of organization who offered their
opinions and suggestions throughout my Training period.

NAME OF CANDIDATE
KOUSIK TAK
 CONTENTS

1. Introduction

2. Company Profile

3. Importance & Scope

4. Swot Analysis

5. Research Objectives

6. HypothesisResearch Methodology

7. Conclusion

8. Suggestion

9. Bibliography
 INTRODUCTION

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 surpassedNissan in 2001 to become the

second-largest Japanese automobile manufacturer. As of August 2008, Honda

surpassed Chrysler as the fourth largest automobile manufacturer in the United States. Honda is

the sixth largest automobile manufacturer in the world.

Honda was the first Japanese automobile manufacturer to release a dedicated luxury

brand, Acura, in 1986. Aside from their core automobile and motorcycle businesses, Honda also

manufactures garden equipment, marine engines, personal watercraft and power generators,

amongst others. Since 1986, Honda has been involved with artificial intelligence/robotics

research and released their ASIM Orobot in 2000. They have also ventured into aerospace with

the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420 HondaJet,

scheduled to be released in 2011. Honda spends about 5% of its revenues into R&D.
History of Honda

From a young age, Honda's founder, Soichiro Honda ( , Honda Sichir) had a great

interest in automobiles. He worked as a mechanic at a Japanese tuning shop, Art Shokai, where

he tuned cars and entered them in races. A self-taught engineer, he later worked on a piston

design which he hoped to sell to Toyota. The first drafts of his design were rejected, and Soichiro

worked painstakingly to perfect the design, even going back to school and pawning his wife's

jewelry for collateral. Eventually, he won a contract with Toyota and built a factory to construct

pistons for them, which was destroyed in an earthquake. Due to a gasoline shortage

during World War II, Honda was unable to use his car, and his novel idea of attaching a small

engine to his bicycle attracted much curiosity. He then established the Honda Technical Research

Institute in Hamamatsu, Japan, to develop and produce small 2-cycle motorbike engines. Calling

upon 18,000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart by

war, Soichiro received enough capital to engineer his first motorcycle, the Honda Cub. This

marked the beginning of Honda Motor Company, which would grow a short time later to be the

world's largest manufacturer of motorcycles by 1964.

The first production automobile from Honda was the T360 mini pick-up truck, which went on

sale in August 1963.[10] Powered by a small 356 cc straight-4 gasoline engine, it was classified

under the cheaper Kei car tax bracket.[citation needed] The first production car from Honda was

the S500 sports car, which followed the T360 into production in October 1963. Its chain driven

rear wheels point to Honda's motorcycle origins.

Company Name

Honda Motor Co., Ltd.

Head Office

1-1, 2-chome, Minami-Aoyama, Minato-ku, Tokyo 107-8556, Japan

Tel: +81-(0)3-3423-1111

Established

September 24, 1948

President & CEO

Takanobu Ito

Capital

86 billion (as of March 31, 2010)

Sales (Results of fiscal 2010)

Consolidated: 8,579,174 million

Unconsolidated: 2,717,736 million

Total number of employees

Consolidated: 176,815 (as of March 31, 2010)

Unconsolidated: 26,121 (as of March 31, 2010)

Consolidated subsidiaries

390 subsidiaries (as of March 31, 2010)

Chief Products

Motorcycles, automobiles, power products

Aoyama Building

Wako Building
CORPORATE PROFILE

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 and

The 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. Based on this, "The Three Joys" expresses our belief

and desire that each person working in, or coming into contact with our company, directly

or through or products, should share a sense of joy through that experience. In line with

these basic principles, since its establishment in 1948, Honda has remained on the leading

edge by creating new value and providing products of the highest quality at a reasonable

price, for worldwide customer satisfaction. In addition, the Company has conducted its

activities with a commitment to protecting the environment and enhancing safety in a

mobile society.

The Company has grown to become the world's largest motorcycle manufacturer and one of

the leading automakers. With a global network of 492* subsidiaries and affiliates accounted

for under the equity method, Honda develops, manufactures and markets a wide variety of

products, ranging from small general-purpose engines and scooters to specialty sports cars,

to earn the Company an outstanding reputation from customers worldwide.

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

in Greater Noida plant and Rs 784 crores in Tapukara plant.

HSCIs first state-of-the-art manufacturing unit was set up at Greater Noida, U.P in 1997. The

green-field project is spread across 150 acres of land (over 6,00,000 sq. m.).

The annual capacity of this facility is 100,000 units. The companys second manufacturing

facility is in Tapukara, Rajasthan. This facility is spread over 600 acres and will have an initial
production capacity of 60,000 units per annum, with an investment of about Rs 1,000 crore. The

first phase of this facility was inaugurated in September 2008.

The companys product range includes Honda Jazz, Honda City, Honda Civic and Honda Accord

which are produced at the Greater Noida facility with an indigenization level of 77%, 76%, 74%

and 28% respectively. The CR-V is imported from Japan as Completely Built Units. Hondas

models are strongly associated with advanced design and technology, apart from its established

qualities of durability, reliability and fuel-efficiency.

World Wide Message By Honda

Striving to become a company that society wants to exist by strengthening the core

principles of Honda

Looking back over the past fiscal year

Last year brought positive signs of economic recovery, including increased consumer spending

in Japan and the U.S. and expected economic expansion in Asia and developing nations. At the

same time, concerns about the economic downturn, credit crunch, and unemployment persisted

in the U.S. and Europe. Moreover, regardless of regional differences, there was new movement

to drastically reduce greenhouse gas emissions, primarily CO2. In these ways, 2009 showed that

further management effort and environmental action were required in the near future. Under such

circumstances, Honda responded swiftly and specifically to the needs of society and customers in

each region. Through research and development, we worked vigorously to produce advanced

technologies for safety and environmental requirements. Through production, we addressed

changes in regional needs in a flexible manner, establishing a mutually complementary system

of manufacturing parts and finished vehicles in each region. Through sales, we released products

with new value by enhancing eco-responsible vehicles and widened the range of our product

lineup. As a result, over the last year alone, we delivered motorcycles, automobiles, and general-

purpose products to a total of more than 23 million customers around the world.
Striving to become a company that society wants to exist

Due to global political and economic changes, the business environment surround- ing Honda

remains uncertain amid growing social concern about environmental challenges. However, no

matter how considerable these changes may be, Honda will win the trust of our customers and

appeal to customers as before by creating technologies and products with new value that

anticipate customer needs and social requirements. We believe this is the way for Honda to

proceed, based on our founding principles. To achieve these goals, Honda will work to improve

product quality, safety, and environmental performance as well as promoting research and

development of next-generation mobility technologies such as fuel-cell electric vehicles and

battery-powered EVs. Additionally, we will focus on future product development to expand the

market for hybrid vehicles, which are currently the most effective in reducing CO2 emissions.

And, we will continue our efforts to become a company that society wants to exist through

global activities to minimize environ- mental impact in all of our business activities including

production, distribution, and sales, while promoting safe driving and engagement in other social

activities.
Manufacturing & Distribution

Strengthening our manufacturing system from the perspective of our customers and the

environment

Customer needs vary depending on the region. To deliver products that satisfy customers in all

regions, Honda established a manufacturing system that rapidly and flexibly responds to

customer requests at all production bases around the world. With this manufacturing system, we

are striving to further improve the quality of our products and minimize our environmental

footprint during manufacturing.

Thin-membrane solar cell panels at Dongfeng Honda (Wuhan, China)

Strengthening manufacturing capabilities and environmental measures on a global basis

Based on its commitment to build products close to the customer, Honda has pursued local

production from its early days. We first began overseas motorcycle production in Belgium in

1963 and became the first Japanese automaker to produce automobiles in the U.S. in 1982. By

focusing on localization early on, even in the areas of development and sales, we have been able

to respond to changes in product demand and supply more promptly and increase our quality and

cost competitiveness in each market. Moreover, we have been working on establishing a

mutually complementary parts and vehicle manufacturing network among countries within a

region so that we can respond to changing demand in each region more effectively and flexibly.

We have also centered on activities that improve quality at production bases around the world

and that reduce environmental impacts during manufacturing and distribution. In 2009, we began

operations at the Ogawa plant in Japan with extremely high resource and energy efficiency.

Meanwhile, we are promoting the installation of solar panels at our offices and plants. Through

improved production systems that take into consideration regional characteristics and enhanced

environmental measures, we will flexibly and effectively provide high-quality products in an

environmentally responsible way.

Motorcycle plant (Thailand)

Power products assembly (France)

 Corporate profile and divisions

Honda headquarters building in Japan

Honda is headquartered in Minato, Tokyo, Japan. Their shares trade on the Tokyo Stock

Exchange and the New York Stock Exchange, as well as exchanges in Osaka, Nagoya, Sapporo,

Kyoto, Fukuoka, London, Paris and Switzerland.

The company has assembly plants around the globe. These plants are located in China, the

United States, Pakistan, Canada, England, Japan, Belgium, Brazil, New Zealand, Indonesia,

India, Thailand, Turkey and Per. As of July 2010, 89 percent of Honda and Acura vehicles sold

in the United States were built in North American plants, up from 82.2 percent a year earlier.

This shields profits from the yens advance to a 15-year high against the dollar.

Honda's Net Sales and Other Operating Revenue by Geographical Regions in 2007
 Geographic Region Total revenue (in millions of )

Japan 1,681,190

North America 5,980,876

Europe 1,236,757

Asia 1,283,154

Others 905,163

American Honda Motor Company is based in Torrance, California. Honda Canada Inc. is

headquartered in the Scarborough district of Toronto, Ontario, and is building new corporate

headquarters in Markham, Ontario, scheduled to relocate in 2008; their manufacturing

division, Honda of Canada Manufacturing, is based in Alliston, Ontario. Honda has also created

joint ventures around the world, such as Honda Siel Cars and Hero Honda Motorcycles in

India, Guangzhou Honda and Dongfeng Honda in China, and Honda Atlas in Pakistan.
Current market position

With high fuel prices and a weak U.S. economy in June 2008, Honda reported a 1% sales

increase while its rivals, including the Detroit Big Three and Toyota, have reported double-digit

losses. Honda's sales were up almost 20 percent from the same month last year. The Civic and

the Accord were in the top five list of sales. Analysts have attributed this to two main factors.

First, Honda's product lineup consists of mostly small to mid-size, highly fuel-efficient vehicles.

Secondly, over the last ten years, Honda has designed its factories to be flexible, in that they can

be easily retooled to produce any Honda model that may be in-demand at the moment.

Nonetheless, Honda, Nissan, and Toyota, were still not immune to the global financial crisis of

2008, as these companies reduced their profitability forecasts. The economic crisis has been

spreading to other important players in the vehicle related industries as well. In November 2009

the Nihon Keizai Shinbun reported that Honda Motor exports have fallen 64.1%.

At the 2008 Beijing Auto Show, Honda presented the Li Nian ("concept" or "idea") 5-door

hatchback and announced that they were looking to develop an entry-level brand exclusively for

the Chinese market similar to Toyota's Scion brand in the USA. The brand would be developed

by a 50-50 joint-venture established in 2007 with Guangzhou Automobile Industry Group.

Following the Japanese earthquake and tsunami in March 2011 Honda announced plans to halve

production at its UK plants. The decision was made to put staff at the Swindon plant on a 2 day

week until the end of May as the manufacturer struggled to source supplies from Japan. It's

thought around 22,500 cars were produced during this period.

 PROMOTIONAL STRATEGIES OF HONDA

Dream The Impossible!!!

POWER OF DREAMS , HONDA

Super Cub (2008)

the Super Cub made Honda what it is today. In 2008, 50 years and 60 million units later, the

Super Cub still continues to evolve.

Engines (2008)

Honda has announced "Engines," a new global advertisement aimed at increasing awareness of

how Honda's advanced engines can help in preserving the environment.

FCX (2007)

The global ad "FCX Concept" emphasizes Hondas leadership in environmental performance

through advanced technology.

sky (2006)

"sky" signifies Honda's realization of a dream to bring mobility for everyone to the third

dimension, the sky, with the introduction of the HondaJet.

cap/ (2006)

The symbolic use of the Honda green cap, worn by Honda Associates, expresses two messages -

the fun that Honda employees enjoy through working at Honda and how that fun is embedded in

every Honda automobile, motorcycle and power product.

In the animated movie "cap/," a boy picks up a green cap - not just any cap, but a Honda green

cap - and once he wears it, is taken to the world of Honda where he experiences the creativity

that every Honda employee brings to the company - turning dreams such as ASIMO and

HondaJet into reality, and making Honda one of the most innovative companies in the world.

jet/ (2005)
The motif of Hondas new Global Ad is the experimental HondaJet, which made its debut in

July, 2005 at Airventure, a prominent aircraft event in the USA. HondaJet realizes a Honda

founders dream.

The movie jet/ is set in a quiet airstrip. Two men in blue overalls ride a tattered Super Cub

down a deserted hangar. Who could tell that these two, Richard Gritter and Dave West, were

indeed the test pilots for the experimental HondaJet, as they flew off into the evening sky...

run/ (2005)

Since development of the first ASIMO in 2000, ASIMO has grown in popularity around the

world, and has developed a global image of adorability and friendliness. The key aim in Hondas

new global branding advertisement is to maintain ASIMOs global image, whilst communicating

the new ASIMO prototypes feature (ASIMO runs!) with a touch of humor. In 60 movie run/,

the new ASIMO prototype and an elderly gentleman engage in a little race down an airports

moving walkway.
HondaJet (2005)

The motif for this years worldwide corporate advertising is the HondaJet. In 2003, a hundred

years after the Wright Brothers made their pioneering flight; the HondaJet soared over North

Carolina on its maiden flight. Honda has again realized the power of dreams, by adding a new

dimension to the pursuit of mobility. We want to share this significant achievement with the

world, and with this in mind, came the motivation for this advertisement.

Honda FCX (2003)

The sound of a grandfather clock keeps pace with the FCX as it drives around. In the TV

commercial, the FCX is shown symbolizing the opening to a new era of mobility. In addition, a

corporate ad was placed on January 3, 2003 to all major newspapers in Japan showcasing the
theme of Hondas new technology. The TV commercial uses a visual background that reflects

Hondas challenging history and expresses Hondas spirit, an ultimate clean air vehicle for all

human beings. The development of the fuel cell vehicle FCX, - has reinforced our belief in the

power of dreams.

WGP 500th Victory (2001)

At the FIM Road Racing World Championship Grand Prix opening event held at the Suzuka

circuit on April 8, 2001, Honda achieved it's record setting 500th win. It has been 40 years since

it's first win there in 1961. With unwavering passion and the result of win upon win there has

been no greater point of progress. In April 2000 all major Japanese newspapers published

corporate advertisements with the Honda motorcycle challenge spirit as its theme.
 F1 200 Challenge (2000)

In the FIA Formula1 World Championship 14th race event held on September 10, 2000, Honda

set records in the F1 200 series. Since its first appearance in the German Grand Prix in 1964,

Honda has continued to compete in the top international racing events around the world. For the

Japan Grand Prix held at the Suzuka circuit over October 2000, all major Japanese newspapers

published corporate advertisements with Hondas F1 challenge history as its theme.

 Products

Automobiles

2008 Honda Accord (USA spec)

Eighth Generation Honda Civic (Asian Version)

Honda's global lineup consists of the Fit, Civic, Accord, Insight, CR-V, and Odyssey. An early

proponent of developing vehicles to cater to different needs and markets worldwide, Honda's

lineup varies by country and may feature vehicles exclusive to that region. A few examples are
the latest Acura TL luxury sedan and the Ridgeline, Honda's first light-duty uni-body pickup

truck. Both were engineered primarily in North America and are exclusively produced and sold

there.

The Civic is a line of compact cars developed and manufactured by Honda. In North America,

the Civic is the second-longest continuously running nameplate from a Japanese manufacturer;

only its perennial rival, the Toyota Corolla, introduced in 1968, has been in production

longer. The Civic, along with the Accord and Prelude, comprised Honda's vehicles sold in North

America until the 1990s, when the model lineup was expanded. Having gone through several

generational changes, the Civic has become larger and more upmarket, and it currently slots

between the Fit and Accord.

Honda increased global production in September 2008 to meet demand for small cars in the U.S.

and emerging markets. The company is shuffling U.S. production to keep factories busy and

boost car output, while building fewer minivans and sport utility vehicles as light trucksales fall.

Honda produces Civic hybrid, a hybrid electric vehicle that competes with the Toyota Prius, and

also produces the Insight and CR-Z.

Its first entrance into the pickup segment, the light duty Ridgeline, won Truck of the Year

from Motor Trend magazine in 2006. Also in 2006, the redesigned Civic won Car of the

Year from the magazine, giving Honda a rare double win of Motor Trend honors.

It is reported that Honda plans to increase hybrid sales in Japan to more than 20% of its total

sales in fiscal year 2011, from 14.8% in previous year.

Five of United States Environmental Protection Agency's top ten most fuel-efficient cars from

1984 to 2010 comes from Honda, more than any other automakers. The five models are: 2000-
2006 Honda Insight (53 mpg-US/4.4 L/100 km; 64 mpg-imp combined), 1986-1987 Honda Civic

Coupe HF (46 mpg-US/5.1 L/100 km; 55 mpg-imp combined), 1994-1995 Honda Civic hatchback

VX (43 mpg-US/5.5 L/100 km; 52 mpg-imp mpg combined), 2006- Honda Civic Hybrid (42 mpg-

US/5.6 L/100 km; 50 mpg-imp combined), and 2010- Honda Insight (41 mpg-US/5.7 L/100 km;

49 mpg-imp combined). The ACEEE has also rated the Civic GX as the greenest car in America

for seven consecutive years.

Motorcycles

Honda is the largest motorcycle manufacturer in Japan and has been since it started production in

1955. At its peak in 1982, Honda manufactured almost 3 million motorcycles annually. By 2006

this figure had reduced to around 550,000 but was still higher than its three domestic

competitors.

During the 1960s, when it was a small manufacturer, Honda broke out of the Japanese

motorcycle market and began exporting to the U.S. Taking Hondas story as an archetype of the

smaller manufacturer entering a new market already occupied by highly dominant competitors,

the story of their market entry, and their subsequent huge success in the U.S. and around the

world, has been the subject of some academic controversy. Competing explanations have been

advanced to explain Hondas strategy and the reasons for their success.

The first of these explanations was put forward when, in 1975, Boston Consulting Group (BCG)

was commissioned by the UK government to write a report explaining why and how the British

motorcycle industry had been out-competed by its Japanese competitors. The report concluded
that the Japanese firms, including Honda, had sought a very high scale of production (they had

made a large number of motorbikes) in order to benefit from economies of scale and learning

curve effects. It blamed the decline of the British motorcycle industry on the failure of British

managers to invest enough in their businesses to profit from economies of scale and scope.

2004 Honda Super Cub

The second explanation was offered in 1984 by Richard Pascale, who had interviewed the Honda

executives responsible for the firms entry into the U.S. market. As opposed to the tightly

focused strategy of low cost and high scale that BCG accredited to Honda, Pascale found that

their entry into the U.S. market was a story of miscalculation, serendipity, and organizational

learning in other words, Hondas success was due to the adaptability and hard work of its

staff, rather than any long term strategy. For example, Hondas initial plan on entering the U.S.

was to compete in large motorcycles, around 300 cc. It was only when the team found that the
scooters they were using to get themselves around their U.S. base of San Francisco attracted

positive interest from consumers that they came up with the idea of selling the Super Cub.

The most recent school of thought on Hondas strategy was put forward by Gary Hamel and C.

K. Prahalad in 1989. Creating the concept ofcore competencies with Honda as an example, they

argued that Hondas success was due to its focus on leadership in the technology of internal

combustion engines. For example, the high power-to-weight ratio engines Honda produced for

its racing bikes provided technology and expertise which was transferable into mopeds. Honda's

entry into the U.S. motorcycle market during the 1960s is used as a case study for teaching

introductory strategy at business schools worldwide.

Automobile

Rubens Barrichello driving for Honda

Honda entered Formula One as a constructor for the first time in the 1964 season at the German

Grand Prix with Ronnie Bucknum at the wheel. 1965 saw the addition of Richie Ginther to the

team, who scored Honda's first point at the Belgian Grand Prix, and Honda's first win at

the Mexican Grand Prix. 1967 saw their next win at the Italian Grand Prix with John Surtees as

their driver. In 1968, Jo Schlesser was killed in a Honda RA302 at the French Grand Prix. This

racing tragedy, coupled with their commercial difficulties selling automobiles in the United

States, prompted Honda to withdraw from all international motorsport that year.

After a learning year in 1965, Honda-powered Brabhams dominated the 1966 French Formula

Two championship in the hands of Jack Brabhamand Denny Hulme. As there was no European

Championship that season, this was the top F2 championship that year. In the early 1980s Honda

returned to F2, supplying engines to Ron Tauranac's Ralt team. Tauranac had designed the

Brabham cars for their earlier involvement. They were again extremely successful. In a related

exercise, John Judd's Engine Developments company produced a turbo "Brabham-Honda"

engine for use in IndyCar racing. It won only one race, in 1988 for Bobby Rahal at Pocono.

Honda returned to Formula One in 1983, initially with another Formula Two partner,

the Spirit team, before switching abruptly to Williams in 1984. In the late 1980s and early 1990s,

Honda powered cars won six consecutive Formula One Constructors

Championships. WilliamsF1 won the crown in 1986 and 1987. Honda switched allegiance again

in 1988. New partners Team McLaren won the title in 1988, 1989, 1990 and 1991. Honda

withdrew from Formula One at the end of 1992, although the related Mugen-Honda company

maintained a presence up to the end of 1999, winning four races with Ligier and Jordan Grand

Prix.
Honda debuted in the CART IndyCar World Series as a works supplier in 1994. The engines

were far from competitive at first, but after development, the company powered six consecutive

drivers championships. In 2003, Honda transferred its effort to the rival IRL IndyCar Series. In

2004, Honda-powered cars overwhelmingly dominated the IndyCar Series, winning 14 of 16

IndyCar races, including the Indianapolis 500, and claimed the IndyCar Series Manufacturers'

Championship, Drivers' Championship and Rookie of the Year titles. In 2006, Honda became the

sole engine supplier for the IndyCar Series, including the Indianapolis 500. In the 2006

Indianapolis 500, for the first time in Indianapolis 500 history, the race was run without a single

engine problem.

During 1998, Honda considered returning to Formula One with their own team. The project was

aborted after the death of its technical director, Harvey Postlethwaite. Honda instead came back

as an official engine supplier to British American Racing (BAR) and Jordan Grand Prix. Honda

bought a stake in the BAR team in 2004 before buying the team outright at the end of 2005,

becoming a constructor for the first time since the 1960s. Honda won the 2006 Hungarian Grand

Prix with driver Jenson Button.

It was announced on 5 December 2008, that Honda would be exiting Formula One with

immediate effect due to the 2008 global economic crisis. The team was sold to former team

principal Ross Brawn, renamed Brawn GP and subsequently Mercedes GP.

Honda became an official works team in the British Touring Car Championship in 2010.
Motorcycles

Honda RC212V raced by Dani Pedrosa

Honda Racing Corporation (HRC) was formed in 1982. The company combines participation in

motorcycle races throughout the world with the development of high potential racing machines.

Its racing activities are an important source for the creation of leading edge technologies used in

the development of Honda motorcycles. HRC also contributes to the advancement of motorcycle

sports through a range of activities that include sales of production racing motorcycles, support

for satellite teams, and rider education programs.

Soichiro Honda, being a race driver himself, could not stay out of international motorsport. In

1959, Honda entered five motorcycles into the Isle of Man TT race, the most prestigious
motorcycle race in the world. While always having powerful engines, it took until 1961 for

Honda to tune their chassis well enough to allow Mike Hailwood to claim their first Grand

Prix victories in the 125 and 250 cc classes. Hailwood would later pick up their first Senior TT

wins in 1966 and 1967. Honda's race bikes were known for their "sleek & stylish design" and

exotic engine configurations, such as the 5-cylinder, 22,000 rpm, 125 cc bike and their 6-cylinder

250 cc and 297 cc bikes.

In 1979, Honda returned to Grand Prix motorcycle racing with the monocoque-framed, four-

stroke NR500. The FIM rules limited engines to four cylinders, so the NR500 featured non-

circular, 'race-track', cylinders, each with 8 valves and two connecting rods, in order to provide

sufficient valve area to compete with the dominant two-stroke racers. Unfortunately, it seemed

Honda tried to accomplish too much at one time and the experiment failed. For the 1982 season,

Honda debuted their first two-stroke race bike, the NS500 and in 1983, Honda won their first

500 cc Grand Prix World Championship with Freddie Spencer. Since then, Honda has become a

dominant marque in motorcycle Grand Prix racing, winning a plethora of top level titles with

riders such as Mick Doohan and Valentino Rossi .

In motocross, Honda has claimed six motocross world championships. In the World Enduro

Championship, Honda has captured six titles, most recently with Stefan Merriman in 2003 and

with Mika Ahola in 2007 and 2008.

In observed trials, Honda has claimed three world championships with Belgian rider Eddy

Lejeune.
 Marketing

Honda's official slogan is "The Power of Dreams". They have never used this slogan to sell their

products. Mr. Honda's belief is that well built products will sell themselves.

In 2003, Honda released its Cog advertisement in the UK and on the Internet. To make the ad,

the engineers at Honda constructed a Rube Goldberg Machine made entirely out of car parts

from a Europe Domestic Market Honda Accord (upon which the USDM Acura TSX is based).

To the chagrin of the engineers at Honda, all the parts were taken from two of only six hand-

assembled pre-production models of the Accord. The advertisement depicted a single cog which

sets off a chain of events that ends with the Honda Accord moving and Garrison Keillor speaking

the tagline, "Isn't it nice when things just... work?" It took 606 takes to get it perfect.[71]

In 2004, they produced the Grrr advert, usually immediately followed by a shortened version of

the 2005 Impossible Dream advert.

A post 2005 style Honda dealership in Moncton, Canada

In December 2005, Honda released The Impossible Dream a two-minute panoramic

advertisement filmed in New Zealand, Japan and Argentina which illustrates the founder's dream

to build performance vehicles. While singing the song "Impossible Dream", a man reaches for

his racing helmet, leaves his trailer on a minibike, then rides a succession of vintage Honda

vehicles: a motorcycle, then a car, then a powerboat, then goes over a waterfall only to reappear

piloting a hot air balloon, with Garrison Keillor saying "I couldn't have put it better myself" as

the song ends. The song is from the 1960s musical Man Of La Mancha, sung by Andy Williams.

In 2006, Honda released its Choir advertisement, for the UK and the internet. This featured a 60-

person choir who sang the car noises as film of the Honda Civic are shown.

For the last several years in the United States, during model close-out sales for the current year

before the start of the new model year, Honda's advertising has featured an animated

character known simply as Mr. Opportunity, voiced by Rob Paulsen. The casual looking man

talks about various deals offered by Honda and ends with the phrase "I'm Mr. Opportunity, and

I'm knockin'", followed by him "knocking" on the television screen or "thumping" the speaker at

the end of radio ads. Also, commercials for Honda's international hatchback, the Jazz, are

parodies of well-known pop culture images such as Tetris and Thomas The Tank Engine.

In late 2006, Honda released an ad with ASIMO exploring a museum, looking at the exhibits

with almost child-like wonderment (spreading out its arms in the aerospace exhibit, waving hello

to an astronaut suit that resembles him, etc.), while Garrison Keillor ruminates on progress. It

concludes with the tagline: "More forwards please".

Honda also sponsored ITV's coverage of Formula One in the UK for 2007. However they had

announced that they would not continue in 2008 due to the sponsorship price requested by ITV

being too high.

In May 2007, focuses on their strengths in racing and the use of the Red H badge a symbol of

what is termed as "Hondamentalism". The campaign highlights the lengths that Honda engineers

go to in order to get the most out of an engine, whether it is for bikes, cars, powerboats even

lawnmowers. Honda released its Hondamentalism campaign. In the TV spot, Garrison Keillor

says, "An engineer once said to build something great is like swimming in honey", while Honda

engineers in white suits walk and run towards a great light, battling strong winds and flying

debris, holding on to anything that will keep them from being blown away. Finally one of the

engineers walks towards a red light, his hand outstretched. A web address is shown for the

Hondamentalism website. The digital campaign aims to show how visitors to the site share many

of the Hondamentalist characteristics.

At the beginning of 2008, Honda released - the Problem Playground. The advert outlines

Honda's environmental responsibility, demonstrating a hybrid engine, more efficient solar panels

and the FCX Clarity, a hydrogen powered car. The 90 second advert features large scale puzzles,

involving Rubik's cubes, large shapes and a 3-dimensional puzzle.

On 29 May 2008, Honda, in partnership with Channel 4, broadcast a live advertisement. It

showed skydivers jumping from an aeroplane over Spain and forming the letters H, O, N, D and

A in mid-air. This live advertisement is generally agreed to be the first of its kind on British

television. The advert lasted three minutes. The next flight of one of the two planes involved

resulted in a fatal crash as the plane broke apart in mid-air.[72]

In 2009, American Honda released the Dream the Impossible documentary series, a collection of

5-8 minute web vignettes that focus on the core philosophies of Honda. Current short films

include Failure: The Secret to Success, Kick Out the Ladder and Mobility 2088. They feature
Honda employees as well as Danica Patrick, Christopher Guest, Ben Bova, Chee Pearlman, Joe

Johnston and Orson Scott Card. The film series plays at dreams.honda.com.

Sports

In Australia, Honda advertised heavily during most motor racing telecasts, and was the official

sponsor of the 2006 FIA Formula 1 telecast on broadcaster channel "Ten". In fact, it was the only

manufacturer involved in the 2006 Indy Racing League season. In a series of adverts promoting

the history of Honda's racing heritage, Honda claimed it "built" cars that won 72 Formula 1

Grand Prix. Skeptics have accused Honda of interpreting its racing history rather liberally,

saying that virtually all of the 72 victories were achieved by Honda powered(engined) machines,

whereas the cars themselves were designed and built by Lotus F1, Williams F1, and McLaren F1

teams, respectively. However, former and current staff of the McLaren F1 team have reiterated

that Honda contributed more than just engines and provided various chassis, tooling, and

aerodynamic parts as well as funding. Ayrton Senna, arguably the greatest F1 driver of all time,

repeatedly stated that Honda probably played the most significant role in his three world

championships. He had immense respect for founder, Soichiro Honda, and had a good

relationship with Nobuhiko Kawamoto, the chairman of Honda at that time. Senna once called

Honda "the greatest company in the world".

As part of its marketing campaign, Honda is an official partner and sponsor of the National

Hockey League, the Anaheim Ducks of the NHL,. The "Honda Sports Award" is given to the

best female athlete in each of twelve college sports in the United States. One of the twelve

Honda Sports Award winners is chosen to receive theHonda-Broderick Cup, as "Collegiate

Woman Athlete of the Year."

 Marketing Strategies

It has described a category scheme consisting of three general types of strategies that are

commonly used by businesses to achieve and maintain competitive advantage. These three

generic strategies are defined along two dimensions: strategic scope and strategic

strength. Strategic scope is a demand-side dimension and looks at the size and composition of the

market you intend to target. Strategic strength is a supply-side dimension and looks at the

strength or core competency of the firm. In particular he identified two competencies that he felt

were most important: product differentiation and product cost (efficiency).

He originally ranked each of the three dimensions (level of differentiation, relative product cost,

and scope of target market) as either low, medium, or high, and juxtaposed them in a three

dimensional matrix. That is, the category scheme was displayed as a 3 by 3 by 3 cubes. But most

of the 27 combinations were not viable.

In his 1980 classic Competitive Strategy: Techniques for Analysing Industries and Competitors,

Porter simplifies the scheme by reducing it down to the three best strategies. They are cost

leadership, differentiation, and market segmentation (or focus). Market segmentation is narrow

in scope while both cost leadership and differentiation are relatively broad in market scope.

Empirical research on the profit impact of marketing strategy indicated that firms with a high

market share were often quite profitable, but so were many firms with low market share. The

least profitable firms were those with moderate market share. This was sometimes referred to as

the hole in the middle problem. Porters explanation of this is that firms with high market share

were successful because they pursued a cost leadership strategy and firms with low market share

were successful because they used market segmentation to focus on a small but profitable market

niche. Firms in the middle were less profitable because they did not have a viable generic

strategy.

Since that time, empirical research has indicated companies pursuing both differentiation and

low-cost strategies may be more successful than companies pursuing only one strategy.[1]

Some commentators have made a distinction between cost leadership, that is, low cost strategies,

and best cost strategies. They claim that a low cost strategy is rarely able to provide a sustainable

competitive advantage. In most cases firms end up in price wars. Instead, they claim a best cost

strategy is preferred. This involves providing the best value for a relatively low price.
Cost Leadership Strategy

This strategy involves the firm winning market share by appealing to cost-conscious or price-

sensitive customers. This is achieved by having the lowest prices in the target market segment, or

at least the lowest price to value ratio (price compared to what customers receive). To succeed at

offering the lowest price while still achieving profitability and a high return on investment, the

firm must be able to operate at a lower cost than its rivals. There are three main ways to achieve

this.

The first approach is achieving a high asset turnover. In service industries, this may mean for

example a restaurant that turns tables around very quickly, or an airline that turns around flights

very fast. In manufacturing, it will involve production of high volumes of output. These

approaches mean fixed costs are spread over a larger number of units of the product or service,

resulting in a lower unit cost, i.e. the firm hopes to take advantage of economies of

scale and experience curve effects. For industrial firms, mass production becomes both a strategy

and an end in itself. Higher levels of output both require and result in high market share, and

create an entry barrier to potential competitors, who may be unable to achieve the scale

necessary to match the firms low costs and prices.

The second dimension is achieving low direct and indirect operating costs. This is achieved by

offering high volumes of standardized products, offering basic no-frills products and limiting

customization and personalization of service. Production costs are kept low by using fewer

components, using standard components, and limiting the number of models produced to ensure

larger production runs. Overheads are kept low by paying low wages, locating premises in low
rent areas, establishing a cost-conscious culture, etc. Maintaining this strategy requires a

continuous search for cost reductions in all aspects of the business. This will include outsourcing,

controlling production costs, increasing asset capacity utilization, and minimizing other costs

including distribution, R&D and advertising. The associated distribution strategy is to obtain the

most extensive distribution possible. Promotional strategy often involves trying to make a virtue

out of low cost product features.

The third dimension is control over the supply/procurement chain to ensure low costs. This could

be achieved by bulk buying to enjoy quantity discounts, squeezing suppliers on price, instituting

competitive bidding for contracts, working with vendors to keep inventories low using methods

such as Just-in-Time purchasing or Vendor-Managed Inventory. Wal-Mart is famous for

squeezing its suppliers to ensure low prices for its goods. Dell Computer initially achieved

market share by keeping inventories low and only building computers to order. Other

procurement advantages could come from preferential access to raw materials, or backward

integration.

than the major airlines, were able to achieve market share growth by offering cheap, no-frills

services at prices much cheaper than those of the larger incumbents.

A cost leadership strategy may have the disadvantage of lower customer loyalty, as price-

sensitive customers will switch once a lower-priced substitute is available. A reputation as a cost

leader may also result in a reputation for low quality, which may make it difficult for a firm to

rebrand itself or its products if it chooses to shift to a differentiation strategy in future.

Differentiation Strategy

Differentiate the products in some way in order to compete successfully. Examples of the

successful use of a differentiation strategy are Hero Honda, Asian Paints, HLL, Nike athletic

shoes, Perstorp BioProducts, Apple Computer, and Mercedes-Benz automobiles.

A differentiation strategy is appropriate where the target customer segment is not price-sensitive,

the market is competitive or saturated, customers have very specific needs which are possibly

under-served, and the firm has unique resources and capabilities which enable it to satisfy these

needs in ways that are difficult to copy. These could include patents or other Intellectual Property

(IP), unique technical expertise (e.g. Apple's design skills or Pixar's animation prowess), talented

personnel (e.g. a sports team's star players or a brokerage firm's star traders), or innovative

processes. Successful brand management also results in perceived uniqueness even when the

physical product is the same as competitors. This way, Chiquita was able to brand bananas,

Starbucks could brand coffee, and Nike could brand sneakers. Fashion brands rely heavily on

this form of image differentiation.

Focus or Strategic Scope

This dimension is not a separate strategy per se, but describes the scope over which the company

should compete based on cost leadership or differentiation. The firm can choose to compete in

the mass market (like Wal-Mart) with a broad scope, or in a defined, focused market segment

with a narrow scope. In either case, the basis of competition will still be either cost leadership or

differentiation.
In adopting a narrow focus, the company ideally focuses on a few target markets (also called a

segmentation strategy or niche strategy). These should be distinct groups with specialized needs.

The choice of offering low prices or differentiated products/services should depend on the needs

of the selected segment and the resources and capabilities of the firm. It is hoped that by focusing

your marketing efforts on one or two narrow market segments and tailoring your marketing

mix to these specialized markets, you can better meet the needs of that target market. The firm

typically looks to gain a competitive advantage through product innovation and/or brand

marketing rather than efficiency. It is most suitable for relatively small firms but can be used by

any company. A focused strategy should target market segments that are less vulnerable to

substitutes or where a competition is weakest to earn above-average return on investment.

Examples of firm using a focus strategy include Southwest Airlines, which provides short-haul

point-to-point flights in contrast to the hub-and-spoke model of mainstream carriers, and Family

Dollar.

In adopting a broad focus scope, the principle is the same: the firm must ascertain the needs and

wants of the mass market, and compete either on price (low cost) or differentiation (quality,

brand and customization) depending on its resources and capabilities. Wal Mart has a broad

scope and adopts a cost leadership strategy in the mass market. Pixar also targets the mass

market with its movies, but adopts a differentiation strategy, using its unique capabilities in

story-telling and animation to produce signature animated movies that are hard to copy, and for

which customers are willing to pay to see and own. Apple also targets the mass market with its

iPhone and iPod products, but combines this broad scope with a differentiation strategy based on

design, branding and user experience that enables it to charge a price premium due to the

perceived unavailability of close substitutes.

Recent developments

Michael Treacy and Fred Wiersema (1993) in their book The Discipline of Market Leaders have

modified Porter's three strategies to describe three basic "value disciplines" that can create

customer value and provide a competitive advantage. They are operational excellence, product

leadership, and customer intimacy.

Criticisms of generic strategies

Several commentators have questioned the use of generic strategies claiming they lack

specificity, lack flexibility, and are limiting.

In particular, Miller (1992) questions the notion of being "caught in the middle". He claims that

there is a viable middle ground between strategies. Many companies, for example, have entered a

market as a niche player and gradually expanded. According to Baden-Fuller and Stopford

(1992) the most successful companies are the ones that can resolve what they call "the dilemma

of opposites".

A popular post-Porter model was presented by W. Chan Kim and Rene Mauborgne in their

1999 Harvard Business Review article "Creating New Market Space". In this article they

described a "value innovation" model in which companies must look outside their present

paradigms to find new value propositions. Their approach fundamentally goes against Porter's

concept that a firm must focus either on cost leadership or on differentiation. They later went on

to publish their ideas in the book Blue Ocean Strategy.An up-to-date critique of generic

strategies and their limitations, including Porter, appears in Bowman, C. (2008) Generic

strategies: a substitute for thinking? [1]

 Electric and alternative fuel vehicles

2009 Honda Civic GX hooked up to Phill refueling system

Top: Brazilian flexible-fuel Honda Civic. Below: U.S. Honda Civic Hybrid.

2010 Honda Insight hybrid electric vehicle(Second generation).

Compressed Natural Gas

The Honda Civic GX is the only purpose-built natural gas vehicle (NGV) commercially

available in some parts of the U.S. The Honda Civic GX first appeared in 1998 as a factory-

modified Civic LX that had been designed to run exclusively on compressed natural gas. The car

looks and drives just like a contemporary Honda Civic LX, but does not run on gasoline. In

2001, the Civic GX was rated the cleanest-burning internal combustion engine in the world by

the U.S. Environmental Protection Agency (EPA).

First leased to the City of Los Angeles, in 2005, Honda started offering the GX directly to the

public through factory trained dealers certified to service the GX. Before that, only fleets were

eligible to purchase a new Civic GX. In 2006, the Civic GX was released in New York, making

it the second state where the consumer is able to buy the car. Home refueling is available for the

GX with the addition of the Phill Home Refueling Appliance.

Flexible-fuel

Honda's Brazilian subsidiary launched flexible-fuel versions for the Honda Civic and Honda

Fit in late 2006. As others Brazilian flex-fuel vehicles, these models run on any blend

of hydrous ethanol (E100) and E20-E25 gasoline. Initially, and in order to test the market

preferences, the carmaker decided to produce a limited share of the vehicles with flex-fuel

engines, 33 percent of the Civic production and 28 percent of the Fit models. Also, the sale price

for the flex-fuel version was higher than the respective gasoline versions, around US$1,000

premium for the Civic, and US$650 for the Fit, despite the fact that all other flex-fuel vehicles
sold in Brazil had the same tag price as their gasoline versions. In July 2009, Honda launched in

the Brazilian market its third flexible-fuel car, the Honda City.

During the last two months of 2006, both flex-fuel models sold 2,427 cars against 8,546

gasoline-powered automobiles, jumping to 41,990 flex-fuel cars in 2007, and reaching 93,361 in

2008. Due to the success of the flex versions, by early 2009 a hundred percent of Honda's

automobile production for the Brazilian market is now flexible-fuel, and only a small percentage

of gasoline version is produced in Brazil for exports.

In March 2009, Honda launched in the Brazilian market the first flex-fuel motorcycle in the

world. Produced by its Brazilian subsidiary Moto Honda da Amaznia, the CG 150 Titan Mix is

sold for around US$2,700.

Hybrid electric

In late 1999, Honda launched the first commercial hybrid electric car sold in the U.S. market ,

the Honda Insight, just one month before the introduction of the Toyota Prius, and initially sold

for US$20,000. The first-generation Insight was produced from 2000 to 2006 and had afuel

economy of 70 miles per US gallon (3.4 L/100 km; 84 mpg-imp) for the EPA's highway rating, the

most fuel-efficient mass-produced car at the time. Total global sales for the Insight amounted to

only around 18,000 vehicles.

Honda introduced the second-generation Insight in its home nation of Japan in February 2009,

and released it in other markets through 2009 and in the U.S. market in April 2009. At $19,800

as a five-door hatchback it will be the least expensive hybrid available in the U.S. Honda expects

to sell 200,000 of the vehicles each year, with half of those sales in the United States.
Since 2002, Honda has also been selling the Honda Civic Hybrid (2003 model) in the U.S.

market,. It was followed by the Honda Accord Hybrid, offered in model years 2005 through

2007. Sales of the Honda CR-Z began in Japan in February 2010, becoming Honda's third hybrid

electric car in the market.

In an interview in early February 2011, a Honda executive disclosed that Honda produces around

200,000 hybrids a year in Japan.

Hydrogen fuel cell

In Takanezawa, Japan, on 16 June 2008, Honda Motors produced the first assembly-line FCX

Clarity, a hybrid hydrogen fuel cell vehicle. More efficient than a gas-electric hybrid vehicle, the

FCX Clarity combines hydrogen and oxygen from ordinary air to generate electricity for an

electric motor.

The vehicle itself does not emit any pollutants and its only by products are heat and water. The

FCX Clarity also has an advantage over gas-electric hybrids in that it does not use an internal

combustion engine to propel itself. Like a gas-electric hybrid, it uses a lithium ion battery to

assist the fuel cell during acceleration and capture energy through regenerative braking, thus

improving fuel efficiency. The lack of hydrogen filling stations throughout developed countries

will keep production volumes low. Honda will release the vehicle in groups of 150. California is

the only U.S. market with infrastructure for fueling such a vehicle, though the number of stations

is still limited. Building more stations is expensive, as the California Air Resources

Board (CARB) granted $6.8 million for four H2 fueling stations, costing $1.7 million USD each.
SWOT analysis of Honda

Company Background

Key Facts

Name Honda Motor Company, Ltd.

Founded September 24, 1948

Logo

Industries
Automotive, Aviation, Robotics, Finance
served
Geographic
Worldwide (more than 100 countries)
areas served

Headquarters Minato-ku, Tokyo, Japan

Current CEO Takahiro Hachigo

Revenue JPY 14,601.1 billion (2016) 9.6% increase over JPY 13,328.1 billion (2015)

Profit JPY 406,358 billion (2016) 27.6% increase over JPY 561,098 billion (2015)

Employees 208,399 (2016)

Bayerische Motoren Werke AG, Chrysler Group LLC, Daimler AG, Ford Motor
Main Company, General Motors Company, Nissan Motor Company, Hyundai Motor
Competitors Company, Tata Motors, Ltd., Toyota Motor Corporation, Volkswagen AG and
many other automotive companies.

Honda Motor Company (further Honda or Company) is a Japanese motorcycle, automobile,

aircraft and engine manufacture. The Company was founded in 1948 by Soichiro Honda, as an
automotive parts manufacturer. Honda later moved to manufacturing motorcycles and has
become the worlds largest motorcycles manufacturer in 1959.[2]
 In 1962, Honda started manufacturing automobiles and was the first company to launch a
dedicated luxury brand, Acura, in 1986. The Company is now the 8th largest auto manufacturer
in the world.

Over the years, the Company has ventured into many industries and is now manufacturing jets
and robots.

Honda always highlighted that its core business is engines and all the products the company has
ventured in is built around them. Company has been growing significantly over the past few
years, mainly due to its automobile business.

You can find more information about the business in its official website or Wikipedias article.

SWOT

Honda SWOT analysis

Strengths Weaknesses

1. Competence in engine manufacturing -1. Dependence on North America to generate

companys core product most of the revenue
2. Diversified product portfolio 2. Low investments in research and
3. Dominance in motorcycle and engine development (R&D) leading to innovative
industries leading to a high brand awareness products
4. Strong position in Asias motorcycle
markets

Opportunities Threats

1. Increasing government regulations 1. Increased competition

2. Improving U.S. economy 2. Rising Japanese Yen exchange rates
3. Timing and frequency of new model3. Natural disasters
releases
4. Low fuel prices are increasing the
demand for pickup trucks and SUVs
Strengths
1. Competence in engine manufacturing - companys core product

All Hondas businesses are built around the engines - its core product. The companys first
engines were built for motorcycles and power equipment, but were later produced for cars and
marine vehicles. Honda is the worlds largest engine manufacturer, which produced over 27
million units of engines for automotive, motorcycle, marine, and power equipment products, in
2015.[3]

The company has lots of experience in manufacturing quality and well-performing engines. Its
engines are praised for their durability, easiness to start, quietness, fuel efficiency and reliability.
According to Reliability Index,[4] Hondas car engines are some the most reliable in the industry.

Engines are the key to motor products and the companys competence in manufacturing engines
is a competitive advantage few rivals can match.

2. Diversified product portfolio

Honda operates 4 different divisions:

Motorcycle business (12.3% revenue)

Automobile business (72.8% revenue)
Power product and other business (2.3% revenue)
Financial Services (12.6% revenue)

Honda offers many products to consumers including engines, cars, motorcycles, jets, robots,
generators, lawnmowers, water pumps, as well as many other power equipment products. While
the cars generate the most revenue for Honda, its overall product portfolio is fairly diversified,
when compared to Volkswagen, Toyota, General Motors, or Briggs and Stratton (in an engine
industry).

Figure 1. Percentage of Sales Revenue by Business

Source: Hondas Financial Report[1]

3. Dominance in motorcycle and engine industries leading to a high brand awareness

Honda is a huge company dominating in most of the markets it operates in, including engines
and motorcycles.

The company is the leading manufacturer of small, general purpose engines for commercial,
rental industry, and consumer applications.[5] Honda is also the leading global manufacturer of
motorcycles having 22.1% of the total market share in the first half of 2016.[1] Companys
dominance in both of these markets have increased its brand recognition and reputation.

According to Interbrand[6] and Forbes,[7] Honda is the 21st and 23rd most valuable brand in the
world, worth US$22.1 billion and US$25.2 billion, respectively. Brand value is closely related to
brand awareness and its reputation and only few other companies, such as Toyota, BMW and
Mercedes-Benz, can compare with Honda in terms of a brand value.

4. Strong position in Asias motorcycle markets

Motorcycle business generates 12.3% of total Hondas sales and is the third largest revenue
group for the company. The company has sold 17,592 units of motorcycles and all-terrain
vehicles in 2016 alone and captured 22.1% of the worlds motorcycle market in the first half of
2016.

Asia is the main geographic segment for Hondas motorcycle business, where the company has
sold 15.1 million units or over 88.7% of its total motorcycles, generating 1,107.6 billion in
revenue.

Asia-Pacific region, which includes such countries as China, India, Vietnam, Thailand, the
Philippines, Malaysia, Indonesia, Australia and Japan, is the largest motorcycle region in the
world and Hondas strong position in it is a powerful competitive advantage.

Weaknesses
1. Dependence on North America to generate most of the revenue

Honda depends on North America region, which mainly includes the U.S. and Canada, to
generate 55.6% of the companys total revenue.

Figure 2. Percentage of Sales Revenue by Region

Source: Hondas Financial Report[1]

Hondas reliance on North America grew from 49.3% of the total sales in 2014 to 55.6% of the
total sales in 2016. At the moment, North America is the main driver behind companys growth
where the motorcycle revenue grew 20% and the automobile revenue grew by 19%. Nonetheless,
the U.S. and Canada are saturated markets and Honda will find it hard to maintain the same level
of growth in these markets.

The company is also becoming more vulnerable to overall negative changes in North Americas
markets.

2. Low investments in research and development (R&D) leading to fewer innovative

products

Honda has spent US$5.4 billion for R&D in 2015. This amounted to 4.5% of the companys total
revenue.

Figure 3. Comparison of R&D expenditure Honda and selected major competitors (in US$
billions)

Company 2015 R&D As a % of revenues 2014 R&D As a % of revenues

Honda 5.4 4.5 5 4.5

Toyota 8.4 3.7 7.6 3.5

Volkswagen 14 6.9 14 7.1

General Motors 7.5 4.9 7.4 4.7

Source: The respective companies financial reports[1][5][6][7]

Low investments in R&D lead to fewer innovative products and significantly undermine the
companys abilities to compete in the future. The company should focus its US$5.4 billion R&D
investments to certain areas (like Hyundai does), which would erase companys low R&D
budget disadvantage and would result in innovative products.

Opportunities
1. Increasing government regulations

Many governments around the world are committed to reducing the greenhouse gas emissions
and are encouraging fuel efficiency initiatives. Such environmental initiatives may increase
production costs for the car manufacturers and these costs will be either passed to price sensitive
consumers or will decrease the companys profits. Honda may take advantage of this by
introducing more car models running only Hydrogen fuel cells and bypassing all the government
regulations associated with the greenhouse gas emissions.

2. Improving U.S. economy

Signs of an improving economy and rising consumer confidence have been reflected in the
strongest increase in new vehicle sales for more than a decade in the U.S. market. 17.5 million
new units were sold in 2015, a 5.7% increase over 2014. Interest rates in the U.S. have been low
for several years and are forecast to remain that way for the foreseeable future. In such economic
conditions, Honda has an opportunity to capture higher market share and increase sales in the
U.S. automotive market.

3. Timing and frequency of new model releases

The market share of the automotive companies is significantly impacted by the timing and
frequency of new model releases. Historically, new models have tended to have major upgrades
every 4 or 5 years with only minor modifications in between. However, due to the rising
consumer expectations in relation to in-car technology and the competitive nature of the industry,
there is an argument to release upgraded models more frequently. Honda is well-positioned to be
able to do this.

4. Low fuel prices are increasing the demand for pickup trucks and SUVs

Currently, fuel prices are the lowest in a decade. Such situation has encouraged consumers to
buy big fuel-inefficient vehicles such as SUVs and pickup trucks. Traditionally, Hondas main
focus was on smaller cars like Honda Civic and sedans such as Honda Accord, but in the current
situation, where fuel prices are low, the company has introduced its next generation pickup truck
Ridgeline and redesigned its CR-V sport utility vehicle to meet the demand for the bigger
vehicles.

The trend of low fuel prices is likely to stay and Honda should introduce more models of pickup
trucks and SUVs to take an advantage of the growing market for these vehicles and to increase
companys profitability.

Threats
1. Increased competition

Honda is faced with an ever increased competition from the traditional automotive companies,
the new players and saturation of its main markets. In Asia, the companys key motorcycle
region, markets are nearly saturated. In 2016, Hondas motorcycle revenue grew by only 5.4% in
Asia, compared to 20.3% growth in North America region. The company faces many new
entrants in India and China, which offer similar quality motorcycles and scooters for lower price
than Honda.
Hondas automotive business is also experiencing the slowing growth of the automotive markets
and the increased competition from the new Chinese manufacturers. The companys international
rivals, such as Toyota, Ford, General Motors, Volkswagen and Hyundai, all have larger budgets
and could use them to aggressively take market share from Honda.

New companies, such as Tesla and even Google, which tries to build self-driving cars are also
threatening the traditional automotive industry. The competition is further fueled by the fact that
the global automotive production capacity far exceeds the demand. In 2015, there was an
estimated global excess production capacity of 31 million units.[11]

2. Rising Japanese Yen exchange rates

More than 88% of Hondas revenue come from international markets, which means that the
company has to convert foreign currencies to Japanese Yen in order to calculate its revenues and
send the profits back to Japan. Currency rates are volatile and the companys profits and revenue
highly depend on the fluctuating exchange rates. The company cannot control the currency
exchange rates, therefore it is at risk, if Japanese Yen exchange rates would start to rise. In such
case, the companys profits would decrease significantly. The company itself identifies this as a
key threat that will negatively affect the company over the next few years.

3. Natural disasters

Honda has manufacturing facilities in Japan, Thailand, China and Indonesia. These countries,
including others, are often subject to natural disasters that disrupt manufacturing processes and
result in lower production volumes and profits.
 Objectives of the Study

To know about the Honda company.

To know about its Promotional activities.

Its Market Position.

Hondas level of customer satisfaction.

Its history and the company profile.

Cost saving initiatives.

 Research Methodology

The purpose of methodology is to describe the process involved in research work. This includes

the overall research design, data collection method, the field survey and the analysis of data.

Research is a common parlance refresh to a search for knowledge. One can also define research

as a scientific & systematic search for pertinent information on a specific topic.

In fact, research is an art of scientific investigation. The advance learners dictionary of current

English lay down the meaning research as a careful investigation & inquiry specially search for

new facts in any branch knowledge.

Research Design

Research Design is the arrangement for conditioned for data collection & analysis of data in a

manner that aims to combined relevance to research purpose with economy in procedure.

A research design is a master plan or model for the conduct of formal investigation. It is blue

print that is followed in completing study.

The research conducted by me is a descriptive research. This is descriptive in nature because

study is focused on fact investigation in a well structured from and is based on primary data.

Research Plan

Type of study: For completing my study I have gone for sample study because looking at the

size of population & the time limitation it was not convenient for me to cover entire population.

Hence, I have gone for sample study rather than census study.
Sampling Plan

A sample design is a definite plan for obtaining a sample from a given population. It refers to the

technique or the procedure that researcher would adopt in selecting items to be inched in the

sample i.e. the size of sample. Sampling plan is determined before data are collected.

Steps in Sampling:

1. Understanding the Marketing strategies of Honda.

2. Study the company profile & related aspects.

3. To collect the information from self constructed questionnaire.

4. Meeting with different owners of Honda showroom.

5. Obtaining the opinion and suggestions of owners at different levels.

6. Prepare questionnaire on the basis of above information.

7. Gather information from different source like books Internet magazines etc.

8. On the basis of the answers and the information gathered from other sources prepare

the report.

Sampling Frame:

The list of sampling units from which sample is taken is called sampling frame.

Sampling Size:

Total sample size is 50.

Sampling Procedure:

The selection of respondents were accordingly to be in a right place at a right time and so the

sampling were quite easy to measure, evaluate and co-operative. It was a randomly area

sampling method that attempts to obtain the sample of convenient.

CONCLUSION

On an average more than 73% people feel that the prices are affordable whereas 12%

do not agree, 74% believe that attractive discounts are offered whereas 26% are not

satisfied withthe discounts offered. 20% said that the test drives are not offered and

15% said that post sales follow ups are not done regularly whereas 85% said that they

were done regularly but people feel that it is the peoples car as it is satisfactory on all

other parameters: knowledgeable sales persons , employees spent enough time before

and during sales, display of merchandise is attractive, availability of product, variety of

merchandize, vehicle in good condition, prices are affordable, attractive discounts are

offered, dcor of the waiting area is pleasing, responds to complaints quickly, service at

TATA Motors service station is excellent, careful with personal information and is value

for money . The overall opinion about TATA Motors is very good. 86% people agreed

that the sales persons are knowledgeable and 14% strongly disagreed that the sales

persons are knowledgeable. 64% people agreed that the sales persons spent enough

time with them before the sales and 36% strongly agreed with this. 62% agreed that

sales persons spent enough time with them during the sales, while 34% strongly agreed

that the sales persons spent enough time with them during sales and only 4% disagreed

60% agreed that the sales persons spent enough time with them after sales, 26%

strongly agreed with this and 14% disagreed that the sales persons spent enough time

with them after sales. 94% agreed that the display of merchandize was attractive and

6% strongly agreed that the display of merchandize was attractive. 91% agreed that the

availability of the product was there, 5% strongly agreed that the availability was there

while only 4% said they disagreed with this.

87% agreed that there was variety/selection of merchandize whereas 7% strongly

agreed that enough variety was there and 6% disagreed with this. 82% agreed that the

vehicle was in good condition when delivered, 16% strongly agreed with this whereas

only 2% disagreed with this. 64% strongly agreed that the prices are affordable, 21%

agreed that the prices are affordable whereas only 15% said that they neither disagreed

nor agreed with this.

55% agreed that the discounts offered are attractive, 34% strongly agreed with this

while 11% disagreed and said that the discounts offered were not attractive. 80%agreed

that the dcor of the waiting area was pleasing while 20% strongly agreed that the

dcor of the waiting area was pleasing 74% agreed that the test drive was offered to

them, 6% strongly agreed that the test drive was offered while 20% disagreed with this.

59% agreed that the post sales follow ups are done regularly, 26% strongly agreed and

15%disagreed with this. 4% agreed that the response to complaints is quick, 18%

strongly agreed, 12% neither agreed nor disagreed and 6% disagreed with this.

82% said that the service at HONDA service station is excellent, 14% strongly agreed

while only 4% disagreed with this. 85% agreed that yes they were careful with personal

information, strongly agreed with this and 8% neither agreed nor disagreed. 94%

strongly agreed that all the ommitments were fulfilled and 6% agreed with this. 98% said

yes that they are aware about the Insurance Schemes of HONDA while only 2% said

that they were not aware.

 SUGGESTION

Honda is committed to further advancing power train technologies in order to offer new products

and technologies that satisfy growing demand from customers around the world for high fuel

efficiency and to achieve more environmentally-friendly mobility that more people can enjoy.

Honda will continue to dedicate company resources to the creation of new technologies. Honda

will also continue making capital investments proactively to strengthen the flexibility and

efficiency of its global production network.

Setting customer satisfaction as our number one priority, Honda strives to provide the joy of

mobility to even more customers through the introduction of new technologies and new products.

n this is achieved, our sales should reach approximately 16 million units for motorcycles,

approximately 4 million units for automobiles, and approximately 6.5 million units for power

products by the end of the 9th Mid-term. In terms of sales revenue, this will exceed 10 trillion

yen.

Through all of these efforts, Hondas goal is to be a company that society wants to exist, to

pursue the joy of mobility, and to extend this joy to more customers and to future generations.
BEBLIOGRAPHY

1. dreams.honda.com

2. world.honda.com

3. www.wikipedia.com

4. www.hondacarsindia.com

5. www.scribd.com