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HONDA WORLDWIDE

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COMPANY BACKGROUND

Company founder Soichiro Honda, after working at Art Shokai, developed his
own design for piston rings in 1938. He attempted to sell them to Toyota and
after two years of work he won a contract with Toyota. He constructed a
new facility to supply Toyota, but soon after, during World War II, the
Honda piston manufacturing facilities were almost completely destroyed.

Soichiro Honda created a new company with what he had left. The Japanese
market was decimated by World War II; his country was starved of money
and fuel, but was still in need of basic transportation. Honda, utilizing his
manufacturing facilities, attached an engine to a bicycle which created a
cheap and efficient method of transport. He gave his company the name
Honda Giken Kōgyō Kabushiki Kaisha which translates to Honda Research
Institute Company Ltd. Despite its grandiose name, the first facility bearing
that name was a simple wooden shack where Mr. Honda and his associates
would fit the engines to bicycles. The official Japanese name for Honda
Motor Company Ltd. remains the same in honor of Soichiro Honda's efforts.
On 24 September 1948 the Honda Motor Co. was officially founded in Japan.

Honda began to produce a range of scooters and motorcycles and Soichiro


Honda quickly recovered from the losses incurred during the war. Honda's
first motorcycle to be put on sale was the 1947 A-Type (one year before
the company was officially founded). However, Honda's first full-fledged
motorcycle on the market was the 1949 Dream D-Type. It was equipped with
a 98cc engine producing around 3 horsepower. This was followed by other
highly popular scooters throughout the 1950s.

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Honda Super Cub C50

In 1958, the American Honda Company was founded and one year later,
Honda introduced its first model in the United States, the 1959 Honda C100
Super Cub. The Honda Cub holds the title of being the best-selling vehicle in
history, with around 50 million units sold around the world.
Honda began developing prototypes for road cars in the early 1960s, mostly
intended for the Japanese market. The first production vehicle by Honda
was the 1963 T360, a tiny pickup truck featuring 4 different body styles
(including a traditional truck bed and a panel van) and a 360cc, 30hp engine.
This was followed two months later by Honda's first production automobile,
the S500. The S500 was a 2 door roadster featuring a 492cc engine capable
of 44 hp with a high 9,500 RPM redline. It was fitted to a 4-speed
transmission with the rear wheels being chain driven. Mr. Honda took his
extensive knowledge of motorcycles and applied it to making his car, of
which the chain drive and high redline are evidence.
At the time, nearly all of the Japanese automakers were associated with the
former zaibatsu, or keiretsu — Japanese business conglomerates. These
large companies had close ties with the government who urged them to
absorb smaller carmakers into large brands that could be marketed
internationally. Since the government had extensive control over the
industry, it was unheard of for a small, independent company to mass
produce vehicles, thus making Honda's success historic in the Japanese
economy.
Though participating in international motorsport (see Racing), Honda was
having difficulty selling its automobiles in the United States. Built for
Japanese buyers, Honda's small cars had failed to gain the interest of
American buyers. Honda's first automobile imported to the United States
was the N600, sold in Hawaii in 1969. In 1970, the car was imported to
California and beyond, but its tiny 600 cc engine and minuscule dimensions
made it very unpopular with the American public.

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Honda Civic
Honda finally established a foothold in the American market in 1972 with
the introduction of the Civic — larger than their previous models, but still
small compared to the typical American car—just as the 1973 energy crisis
was impacting worldwide economies. New emissions laws in the US requiring
American car makers to add expensive smog pumps and catalytic converters
to engines increased car prices. However, Honda introduced an innovative
variation on the stratified charge engine, the CVCC (Compound Vortex-
Controlled Combustion) in the 1975 Civic, this allowed the Civic to meet
emission standards without a smog pump or a catalytic converter. Due to its
more complete combustion it also obtained the lowest fuel consumption
rating of any vehicle available on the American market for four years during
its production.[4] American companies were slow to begin producing small, fuel
efficient cars, which gave the Honda Civic a chance to sell well, as well as
prove Honda's reputation for reliability and further expand its customer
loyalty.

Honda Accord

In 1976, the new, larger-than-the-Civic Accord was immediately popular


because of its value, economy, and fun-to-drive nature. The Accord has since
consistently been one of the best selling cars in the United States, and
evolved into a large mid-size for the North American market with V6 and
hybrid versions.

Honda began building motorcycles in Marysville, Ohio in 1978 and then made
history in 1982, when Honda was the first foreign auto manufacturer to

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build car plants in the US. The first car made in the US was the Accord.
They now have five plants located in Ohio: two in Marysville (the Marysville
Auto Plant and the Marysville Motorcycle Plant), one in East Liberty, Ohio, a
Honda Transmission plant Russells Point, Ohio and an engine plant in Anna,
Ohio. They also have plants in Lincoln, Alabama (Honda Manufacturing of
Alabama) and Timmonsville, South Carolina and have recently (2006) opened
a new plant in Tallapoosa, Georgia. Honda also has an extensive aftermarket
parts operation located in Marysville, Ohio, and a research and development
facility in Raymond, Ohio. Honda's North American and U.S. headquarters
are located in Torrance, California. Honda's Canadian and many US-market
Civics have been manufactured in their plant in Alliston, Ontario since 1986.
On 27 June, 2006, Honda announced that another vehicle assembly facility
will be opening in North America, this time in Greensburg, Indiana. Its
completion is expected in 2008.

Honda was the first Japanese automaker to introduce a separate luxury line
of vehicles. Created in 1986 and known as Acura, the line is made up of
modified versions of Honda vehicles usually with more power and sportiness
than their Honda counterparts. The very first model was the Acura Legend,
with a 2.5 liter engine producing 151 horsepower. European luxury-car
manufacturers initially scoffed at the thought of a luxury company from
Japan, with criticism coming mostly from Mercedes-Benz.

1987 was an important year for new safety and technology at Honda. The
1987 Honda Prelude was the first passenger vehicle in the world equipped
with four-wheel steering (4WS) technology. This also marked the year for
the first Japanese car equipped with an SRS airbag, the Honda (Acura)
Legend.

In 1989 Honda launched their VTEC variable valve timing system in its
production car engines, which gave improved efficiency and performance
across a broader range of engine speeds. One of the first of its kind in
passenger vehicles. It operates on the premise of using different camshaft
profiles (including duration, enganging a third rocker arm) depending on a
number of sensors: throttle position, water/oil temperature, RPM. Low-load
driving would result in VTEC not being engaged, the camshaft using an
efficient-for-low-speed profile. When all sensors permit, the ECU engages
the third lobe is engaged, using a different rocker arm, effectively changing
the camshaft profile for an efficient-for-high-rpm profile.

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In 1999 Honda began selling the Insight which was the first hybrid vehicle
on the market. Power is derived from a combination of a 1.0L 3-cylinder
gasoline engine, and a large NiMH battery pack providing power-assist during
acceleration. This computer-controlled combination provided acceptable
performance with exceptionally low fuel consumption and emissions. Honda's
hybrid power train is now an available option for the Civic and Accord.

For the 2007 model year, Honda plans to improve the safety of its vehicles
by providing front-seat mounted side airbags, side-curtain airbags, and anti-
lock brakes as standard equipment in all automobiles available in North
America (except the Insight and S2000, which will not have side-curtain
airbags). By 2008, Honda plans to have standard traction with vehicle
stability control with rollover sensors in all light trucks, which include the
CR-V, Odyssey, Pilot, and Acura MDX. Honda also plans to make its vehicles
safer for pedestrians, with more safely-designed hoods, hinges, frame
constructs, and breakaway wiper pivots.

In 2007, Honda stated it is going to launch low-priced hybrids and advanced


diesel technology in the near future.

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COMPANY PROFILE
Honda Motor Company, Japan with its headquarters in Tokyo, has
manufacturing operations in 32 countries with 109 production bases. It has 3
business divisions namely 2-wheelers, 4-wheelers and Power Products. Apart
from HMSI that manufactures 2-wheelers, the other business divisions in
India include Honda Siel Cars India Limited (HSCI) and Honda Siel Power
Limited(HSPL).

The company principal of Honda Worldwide is dedication to supplying


products of the highest quality yet at a reasonable price for worldwide
customer satisfaction.

Honda Siel Cars India Limited (HSCI)

Honda Siel Cars India Ltd., (HSCI) was incorporated in December, 1995 as a
joint venture between Honda Motor Co. Ltd., Japan and Siel Limited to
manufacture HONDA Passenger Cars in India. The company is ISO 9002 &
ISO 14001 certified.

Company’s products include the 7th Generation Honda ’ACCORD’, launched in


August, 2003 and new Honda ’CITY’, launched in October, 2003. The
company is also engaged in selling its CR-V model through the CBU
importation programme from Japan.

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Honda Siel Power Limited (HSPL)

Honda Siel Power Ltd (HSPL) is a Joint venture between Honda Motor Co.,
Japan and Siel Ltd.India. Currently Honda Motor Company, Japan has a 67%
Equity Stake in this company. It was incorporated in September 1985 and
produces a range of Power Products in India, like Portable Gensets, Portable
Engines, Portable Water Pumping set and Lawnmowers.

Honda R&D (India) Pvt. Ltd.

By establishing R&D facilities in three key regions beyond Japan (designated


as the Americas, Asia and Europe), Honda R&D develops technologies and
products that reflect the needs of people in individual regions, yet bound
together by common values including environmental preservation and regional
economic development.
The company's objective is to make an R&D that works jointly with the
people of India to produce motorcycles for the enrichment of society and
lifestyle of users of India

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MANAGEMENT
DETAILS OF DIRECTORS

Chairman and
Satoshi Aoki
Representative Director
President and
Takeo Fukui
Representative Director
Executive Vice President
Chief Operating Officer for Regional Sales Operations (Japan)
and Koichi Kondo
Chairman and Director of American Honda Motor Co., Inc.
Representative Director
Senior Managing and Chief Operating Officer for Motorcycle Operations
Minoru Harada
Representative Director Purchasing Operations Support
Senior Managing and Chief Operating Officer for Regional Operations (China)
Atsuyoshi Hyogo
Representative Director President of Honda Motor (China) Investment Corporation, Ltd.

Senior Managing and


Satoshi Toshida Chief Operating Officer for Power Product Operations
Representative Director

Chief Operating Officer for Production Operations


Senior Managing and
Koki Hirashima Risk Management Officer
Representative Director
General Supervisor, Information Systems
Chief Operating Officer for Business Support Operations
Senior Managing and Chief Officer of Driving Safety Promotion Center
Mikio Yoshimi
Representative Director Compliance Officer
Government & Industrial Affairs

Senior Managing and


Takanobu Ito Chief Operating Officer for Automobile Operations
Representative Director

Senior Managing and General Supervisor, Quality


Masaaki Kato
Representative Director President and Director of Honda R&D Co., Ltd.

Managing Director Toru Onda Chief Operating Officer for Purchasing Operations

Managing Director Akira Takano Chief Operating Officer for Customer Service Operations
Chief Operating Officer for Regional Operations (Europe, the
Managing Director Shigeru Takagi Middle & Near East and Africa)
President and Director of Honda Motor Europe Ltd.
Chief Operating Officer for Regional Operations (North
America)
Managing Director Tetsuo Iwamura
President and Director of Honda North America, Inc.
President and Director of American Honda Motor Co., Inc.
Chief Operating Officer for Regional Operations (Asia &
Managing Director Tatsuhiro Oyama Oceania)
President and Director of Asian Honda Motor Co., Ltd.
Managing Director Fumihiko Ike Chief Operating Officer for Business Management Operations
Advisor of the Board of The Bank of Tokyo-Mitsubishi UFJ,
Director Satoru Kishi
Ltd.
Director Kensaku Hogen

Director and Advisor Hiroyuki Yoshino


Chief Operating Officer for Regional Operations (Latin
America)
Director Sho Minekawa President and Director of Honda South America Ltda.
President and Director of Moto Honda da Amazonia Ltda.
President and Director of Honda Automoveis do Brasil Ltda.

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Honda Motorcycle & Scooter India Pvt. Ltd.
(HMSI)

Honda is the world's largest manufacturer of 2-wheelers. Its symbol, the


Wings, represents the company's unwavering dedication in achieving goals
that are unique and above all, conforming to international norms. These wings
are now in India as Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI), a
wholly owned subsidiary of Honda Motor Company Ltd., Japan. These wings
are here to initiate a change and make a difference in the Indian 2-wheeler
industry. Honda's dream for India is to not only manufacture 2-wheelers of
global quality, but also meet and exceed the expectations of Indian
customers with outstanding after sales support.

Official Name- Honda Motorcycle & Scooter India Pvt. Ltd.

Established- 20th Aug, 1999

Place- Manesar, District Gurgaon, Haryana, India

Investment- Rs. 300 Crore

Representative- Mr. Shinji Aoyama, President & CEO

Factory Location- Manesar, District Gurgaon, Haryana, India

Production Capacity- 10,000,00 Units per Year

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HONDA RACING

“Racing improves the breed” - Sochiro Honda

Honda has always played an important role in motor sports, believing it to be


the springboard for technological advancement.

It has also been an aggressive force in the endurance, motocross and trial
races held around the world. We, at Honda, are not allowing this momentum
to let up, as we pursue even greater achievements.

Honda has always loved racing, ever since Sochiro Honda took his company
into motorcycle competition, sometime in the 1950s. Honda’s engineers have
tested themselves on the international stage, proving their technology to be
the best in the world. These technologies are tested in the extreme
conditions of motorcycle racing, to adapt them for use in vehicles that ply on
roads today.

In the past, Honda has powered some of the all time great racers, including
Redman, Hailwood, Spencer, Gardner, Capirossi and Doohan, to 39 riders’
titles. Even today, some of the greatest motorcycle racers, like Alex Baros,
Max Biaggi, Nicky Hayden ride on Honda bikes, at the races.

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Honda enters the Isle of Man TT Races in 1959

Michael Doohan riding Repsol Honda's NSR 500

Honda is an active particsipant in many off-road races

Technologies like these are not just for the race tracks, but are also
incorporated in our everyday vehicles. They are first tested, refined and
proven under the trying conditions in the races, and then finally adapted in
the vehicles, so that two wheelers like Activa and Dio can utilise and benefit
from such technologies.

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HONDA AND SAFETY

Enhancing safety on the roads is one of Honda's top priorities. They firmly
believe that the realization of a comfortable and an enjoyable mobile society
depends on the mutual trust that automobile manufacturers like them, share
with the consumers and society.

Honda, use a three prong approach, based on preventing accidents from


happening in the first place, minimizing injury in the unlikely event of an
accident and our Driving Safety Promotion operations.

Honda's safety philosophy emphasizes the development of appropriate


technologies for its products, so as to ultimately achieve maximum riding
comfort for its customers. Honda was the first manufacturer in Japan to
develop and apply the anti-lock brake system. Educating the world, Honda is
actively involved with driving education across the world for promoting
traffic safety.

HONDA AND ENVIRONMENT

Honda and Environment

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Honda has always wanted to pass on the beautiful natural environment to the
next generation, and will continue its environmental conservation activities,
meeting the high goals that it has set independently.

Developing Green Vehicles

Giorno Crea

Honda, are striving towards developing zero-emission in all our vehicles. They
are the first company in Japan to meet the most recent exhaust emission
regulations. To reduce the environmental burden of four-stroke engines,
they have developed a unique exhaust air injection system and a programmed
fuel injection (PGM- F1) (PGM-F1) system, which is currently in use in the
HONDA VFR motorcycle. On the other hand, the Giorno Crea, is a new
generation, environment friendly 50cc scooter that is highly fuel-efficient.

Eco-Friendly Factory

Before Planting
Aerial view of the Sayama plant

After Planting

Aerial view of the Sayama plant (15 years later)

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Honda's production facilities across the world also actively pursue energy-
efficient methods and prevent water pollution by reducing industrial waste.
Honda has taken aggressive initiatives to reduce the environmental impact of
its manufacturing operations, by implementing its concept of the "Green
Factory". HMSI too is actively working towards establishing an environment
management system.

HMSI Environmental Policy

ISO 14001 certification

As responsible members of society and industry, Honda Motorcycle and


Scooters India Pvt. Ltd. (HMSI), recognize that well being of humans and
conservation of earth's environment is important.

HMSI got ISO 14001 certification in Dec. 2002, which is committed to


achieve, environmental excellence in all its industrial activities.

HMSI will establish its environmental management system following PDCA


cycle and continuously work to make it more effective. The policy will be well
disseminated to our employees as well as to the public at large.

ISO 14001 Policy

Conserving environment through preventing pollution at its source of


generation and strengthening our existing pollution control system.

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Promoting conservation of resources such as energy, water, oil and grease
and other raw materials, by reusing, recycling and minimizing the waste
generation.

Complying with all applicable legal/regulatory requirements and strive to go


beyond wherever possible.

Regular monitoring and reviewing of environmental objectives and targets.

Increasing environment awareness and competence amongst our employees


and encourage vendors & dealers to adopt EMS.

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Green Dealer Concept

The "Green Dealer Concept" started by Honda is a step further in the


direction of conservation of the environment.

The "Green Dealer Concept" would not only help in proper and efficient use
of resources such as water, electricity, paper etc. by constantly monitoring
and improving the existing systems thus doing lots of cost cutting but also
reducing the polluting activities to minimum. Increasing environment
awareness amongst the employees and the general public is also feature of
this unique concept.

Green Dealer Concept

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THE PHILOSOPLY

The Philosophy

HMSI operates on a principle, which is followed worldwide by all Honda


companies. Maintaining a global viewpoint, we are dedicated to supplying
products of the highest quality, yet at a reasonable price for worldwide
customer satisfaction.

Honda's philosophy is based on the company's guiding principle and


advocates 2 fundamental beliefs:

Respect for the Individual

Honda recognizes and respects individual differences. The respect for


individual stems from the following three points:

• Initiative
• Equality
• Trust

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It is the contribution from each individual in the company that has
made our company what it is today and that, which will take us into the
future.

The Three Joys

In line with Honda's Philosophy, HMSI conducts all its daily activities in
pursuit of the following joys:

The Joy of Buying

The joy of using world class products

The Joy of Selling


The joy of selling world class products

The Joy of Manufacturing


The joy of producing high quality products

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HMSI NETWORK

Every Honda dealership is known as a H.E.A.D. - Honda Exclusive Authorised


Dealer. Each H.E.A.D. exclusively handles Honda 2-wheelers and promotes
business activities based on policies that focus on customer satisfaction.
They are the representatives of HMSI in their respective markets and
provide 4S facilities under one roof as per Honda's worldwide standards.

Wherever you travel across the globe, Honda H.E.A.D.s (Dealerships) stand
out with their unique identity. The design of the H.E.A.D.s in India has also
been done with the same purpose in mind.

The 4S Policy
Each of the Dealers functions as a one-stop shop that takes care of all your
concerns regarding your Honda product. Thus, with the objective of
maximising customer satisfaction, all H.E.A.D.s provide facilities for Sales,
Service, Spares and Safety Riding.
Sales

All H.E.A.D.s exclusively offer the sales of Honda 2-wheelers. When you
enter the showroom, you will encounter attractive display and distinctive
showroom environment, that will help you know our products better. Trained
staff at each H.E.A.D. will help in your buying process and offer test rides
to give you a feel of the product.

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Services

Quality repair and maintenance services are provided to ensure that


customers continue to ride Honda 2-wheelers under safe and optimal
conditions.

Spare Parts

Adequate stock of genuine Honda spares are readily available for quick
repair and servicing.

Safe Riding

Respect for human life forms a part of Honda's corporate philosophy. To


realize this, safety riding is being actively promoted by HMSI. Safety riding
programmes have been implemented at all H.E.A.D.s. Our wish is to build-up a
safe environment for driving, by giving pre-delivery safety advice to each
Honda customer.

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PRODUCT LINE

HMSI works on a Market–IN concept, which focuses on understanding


customer needs and desire and translating them into product specifications.
It is due to this concept that with in just five years of its launch in India,
HMSI has changed the Indian two wheeler market with its products – Honda
Activa, Dio, Eterno, Unicorn & Shine.

SHINE
A masterful blend of form and function, the new Honda Shine brings
together the best of all that is sought in a motorcycle into one awe inspiring
piece of automotive technology.

Equipped with a host of advanced technologies like Multi Mapping CDI,


Tumble Flow Combustion Chamber, Long Intake Pipe and Connecting Tube, CV
Carburetor, 2 Way Air Jacket and Pulse Exhaust System, the newly
developed 125 cc 'Optimax' engine delivers class leading 10.3 BHP which
enables Honda Shine to deliver the best balance of pickup and mileage.

Designed to ensure superior ride quality and ease of handling through


revolutionary Ergo Tec design, which is based on Human engineering Honda
Shine will set new benchmarks in the Indian 125cc motorcycle segment .

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Honda Shine completes a 0 – 60kmph run in just 5.3 secs and returns a class
leading 65kmpl in the process in the Indian riding mode.

Honda Shine has been endowed with new modern intelligent style appeal,
which possesses a balance of decent looks with tough & macho appeal and an
image of sporty looks with international taste that lends the HONDA
SHINE a Decent and stylish look.

UNICORN
Powered by a newly developed Honda 4-stroke 150cc engine and
incorporating many cutting-edge technologies developed by Honda's global
R&D team, Unicorn sets new benchmarks for premium motorcycles in India
with its swift acceleration, superior mileage, captivating style, riding
comfort and convenience.

Unicorn is engineered and styled for the tastes of the younger generation
having focused vision in lives. With the 4-stroke 150cc engine delivering a
whooping 13.3 bhp, Unicorn is the fastest premium motorcycle in India racing
from 0 to 60 kms per hour in a mere 5 seconds. Unicorn has a distinctive
sporty and macho design with a racy front face, masculine fuel tank with
knee grip and a natty rear.

Unicorn offers superior mileage through a combination of the famed 4-


stroke Honda engine, cutting edge technologies like Multi-Mapping CDI,
Tumble Flow Combustion Chamber and Roller Rocker arm, and a classy
aerodynamic body. It delivers 60km to a litre.

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Unicorn is the first motorcycle in India with the hi-tech mono suspension
that enhances riding comfort and control, and is now available in new Sleek
Graphics.

ETERNO

An entirely new standard in scooters. Tough, sleek and with the best mileage
in its class. Designed especially for the Indian conditions & to suit your
everyday needs.

The Eterno is a tough & stylish 4-stroke scooter incorporating the best of
Honda’s worldwide technology standards. Right from the engine to the body
frame, each part is designed to be more durable & withstands the rough &
tough Indian conditions.

ETERNO is a new Indian standard scooter that defies conventional ideas


about a full size scooter in India. To those who have resigned to the fact
that present full size scooters do not satisfy their basic needs of riding
comfort, loading capacity & better fuel efficiency, ETERNO is a big surprise
as it has got:

• Reliable, newly designed 4-stroke 150cc engine


• Best fuel efficiency in its class (60 kmpl)
• Ample, practical loading capacity
• Riding comfort even during multiple ride

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• Masculine, tough & sleek styling
So shed your worries about the full size scooter as "Geared Surprise from
Honda is here." So, go ahead & enjoy the ride.

DIO

One look at DIO will tell you it’s more an accessory than a mere convenience.
As India’s first motoscooter is named after the son of Venus ‘Dyonisiac’,
also known as Cupid, the God of Love. DIO is set to add passion and
excitement with its stunning looks and performance, by incorporating the
latest world trends that make it a scooter that is much ahead of its time.

One look at DIO will tell you it’s more an accessory than a mere convenience.
As India’s first motoscooter, it blends the looks of a motorcycle with the
comfort of a scooter. DIO heralds the dawn of two–wheeler fashion. And if
looks are anything to fall for, this is a treat. The body–mounted headlamp
and sleek indicators leap right off the front. Ample legroom gives you an
elegant poise. The body tapers into the taillight and yet continues to draw
attention.

The DIO is complete in itself. Cutting edge technology and style have been
brought together in such a way as to make it an engineering marvel. So, you
can ride assured that a bike doesn’t get or look any better.

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Of course, this qualifies us to have the last word on style. If there ever
existed an attention magnet, this is it.

ACTIVA

Honda Activa is the first scooter model of HMSI for the Indian market. It
has revitalised the Indian scooter market after its launch in the year 2001.

By design, the Activa let's anybody in the family get their hands on it. To
make riding fun, we removed the gears and retained only those controls
which can be safely left to your reflexes. Like the accelerator and the
brakes in a lightweight body. So now, mothers can enjoy an easy ride while
fathers will appreciate its sturdy build.

In fact, an Activa has something in it for everyone. We’ve got two new colour
graphic stickers, a flamboyant one for the young rider who adheres to style.
And for the mature rider we have got a more sober looking sticker, a
reflection of their personality. You’ll never see ease, technology and style
come together in such a smooth way. As in the Honda Activa.

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2. REGENCY MOTORS
(An authorized Dealer of Honda Motorcycles and
Scooters India Pvt. Ltd.)

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INTRODUCTION

Regency Motors is a group of authorized dealership of Honda


Motorcycle & Scooter India Pvt. Ltd. Since 9th Oct. 2002. and consist
of units at Jammu, Udhampur, Srinagar, and two dealer workshops at
Jammu & Srinagar). The group deals with the sale of new two wheelers
and their servicing.

All the dealerships are equipped with latest state-of-art


workshops and also deal in HONDA Genuine Spare Parts as well as
HONDA Genuine Accessories.

Regency Motors has been awarded many honors at various


functions and HMSI dealers meet. The group consists of 200 (app.)
employees and boasts of employee's retention over the past 7 years.
It is due to the credit of hard work that the group sells 4015 new
vehicles and services 16500(mechanical) & 1000 (accidental) vehicles
annually. This enables the employees to earn handsome incentives
apart from salary. Company gives many benefits to its employees like
interest free loans, leaves, ESI & EPF. In Regency Motors, employees
are looked after incase of injuries sustained by them and financial
assistance is provided to them to look after dependent parents.

Regency Motors has the following dealerships, which are


functioning, at places mentioned against each:

a. Regency Motors Jammu (J&K)

b. Regency Motors Udhampur (J&K)

c. Regency Motors Srinagar (J&K)

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It is the oldest dealership of Regency family. The Regency Motors,
Jammu was inaugurated by Mr. Y. S Guleria, the Sr. Manager, Sales
and Marketing , HMSI.

The Regency Motors enjoyed a Turn Over of 12 crores in the year


2006-2007.

SPECIAL FEATURES/FACILITIES
Location:

Regency Motors is located at National Highway 1A,71- Rehari, B. C


Road, Jammu(J&K) 180005.

Show Room:

The dealership has a latest state-of-art modern showroom with all


facilities for the customer care with adequate space for all important
modals of HMSI Two wheelers to display and it is one of the most
modern and spacious showroom in Jammu. The showroom has been
furnished and equipped with all modern facilities that are essentially
required for customer care.

Accessories:
Within the showroom it has got a well furnished and equipped
accessories room where all important and attractive items have been
suitably displayed so as to make it easy for the customers to choice
their brand. The accessories room has attached store facilities for
daily replenishment.

Workshop:

Regency Motors has the latest state-of-art modern HMSI


Dealership with fully equipped workshops, plus modern customer care

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facilities and the most modern body shop which makes it the best
Automobile Dealership in Jammu & Kashmir. The workshop has trained
manpower by HMSI who has been in Regency Motors for the last
7years. It has 8 operative bays besides other modern facilities. It's
indeed a one-stop shop for HONDA accessories.

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ORGANISATIONAL CHART OF REGENCY
MOTORS

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3. CUSTOMER BEHAVIOUR-
SYNOPSIS

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TOTAL CUSTOMER SATISFACTION

Whether the buyer is satisfied after purchase depends upon the


offer's performance in relation to the buyer's expectations. In
general, satisfaction is a person's feelings of pleasure or
disappointment resulting from comparing a product's perceived
performance (or outcome) in relation to his or her expectations. If the
performance falls short of expectations, the customer is dissatisfied.
If the performance matches the expectations, the customer is
satisfied. If the performance exceeds expectations, the customer is
highly satisfied or delighted.
The link between customer satisfaction and customer loyalty is not
proportional. Suppose customer satisfaction is rated on a scale from
one to five. At a very low level of customer satisfaction (level one),
customers are likely to abandon the company and even bad-mouth it.
At levels two to four, customers are fairly satisfied but still find it
easy to switch when a better offer comes along. At level five, the
customer is very likely to repurchase and even spread good word of
mouth about the company. High satisfaction or delight creates an
emotional bond with the brand or company, not just a rational
preference.

33
CONSUMER BEHAVIOUR
The basic idea behind this project was measuring the level of
customer satisfaction of Regency Motors. A basic knowledge of what
consumer behaviour is, therefore a necessity.

"Consumer Behaviour is the process whereby individuals decide


what, when, where, how and from whom to, purchase goods and
services." —Walters and Paul

34
"Consumer Behaviour is all psychological, social and physical
behaviour of potential customers as they become aware of, evaluate,
purchase, consume and tell other people about products and services."

—Webster

BUYING DECISION PROCESS


Ergo, Consumer Behaviour consist of the acts of individuals in
obtaining, using and disposing of economic goods and services, including
the decision processes that precede and determine these acts. It may
be viewed as an orderly processes whereby the individuals interacts
with his environments for the purpose of marketing decisions on
services and products. Consumers don't make their decisions
haphazardly in a vacuum. Consumers envisage various factors such as
psychological, cultural, social and personal before making any purchase.

Based on the examination of many consumer reports on the buying


process have been conceptualized by consumer behaviour researchers.
Five stages have been identified through which a consumer passes
(buying decision process):

(a) Identifying the Need: i.e. recognizing a need for a product or


service. For instance, a person feels a need to buy a new scooter or
motorcycle.

(b) Information Search: After need arousal, the customer tries


to solve it and gathers the sources of information about the product.
For instance, a person having recognized his need to buy a scooter or
motorcycle will collect information about all available scooters or
motorcycles in the market, dealers of various scooter or motorcycle
brands etc.

(c) Evaluation of Alternatives : From the information gathered, a


consumer has wide variety of alternatives. He evaluates each of these

35
choices according to his requirements. For instance, he will evaluate
which scooter or motorcycle suits his budget, it's personality is liked
by his family, will give him comfort and to his status etc.

(d) Buying Decision : The decision evaluation stage leads the


consumer to form preferences among the brands in the choice set.
The consumer also forms a purchase intention and lean towards trying
the preferred brand. However, attitudes of others and unanticipated
situational factors may influence the purchase decisions. For instance,
the person might decide to buy a ACTIVA but his family might insist
on ETERNO and he finally buys a ETERNO.

(e) Post Purchase Behaviour : Analyzing what happens after a sale


is as important as understanding what causes consumers to buy in the
first place. In fact, because this is an analysis of actual rather than
potential customers and purchase situations, enlightened marketers
consider post purchase behaviour of primary importance in its impact
on future sales. Analyzing both positive and negative post purchase
behaviour is a very effective means through which goods and services
can be improved, promotions better targeted, and strategies reshaped
both to keep current customers and to attract new ones like them.
After purchasing the product, the consumer will experience some level
of satisfaction or dissatisfaction. For instance, after purchasing the
ETERNO, the customer will feel satisfied and dissatisfied of the
various features heard about the scooter earlier.

Post Purchase Satisfaction : "This stage is the base of this


project report. The survey was conducted to check the post purchase
satisfaction or dissatisfaction of customers of REGENCY MOTORS,
causes and remedies of satisfaction or dissatisfaction". The company
should know whether the buyer is satisfied, highly satisfied or
dissatisfied. Determining the different levels of satisfaction is not an
easy task. The buyer's satisfaction (S) is a function of the closeness
between the consumers product expectation (E) and the products
perceived performance (P), that is, S= f (E,P). If the product matches
expectations , the consumer is satisfied, if it exceeds them the

36
consumer is highly satisfied, if it falls short, the customer is
dissatisfied.

If a ETERNO customer finds that the scooter features match


perfectly with his expectations, he will be highly satisfied with the
product, on the other hand, when it comes to service part, he might
not get the best service, as perceived by him and so feels dissatisfied
with servicing.

Post Purchase Actions : The customer's satisfaction or


dissatisfaction with the product will influence subsequent behaviour.
If the consumer is satisfied, then he or she will exhibit a higher
probability of purchasing the product on the next occasion. The
satisfied consumer will also tend to say good things about the products
to others. According to marketers: "our best advertisement is a
satisfied customer".

Dissatisfied consumer may abandon or return the product. They


may seek information that confirms high value. They may take public
action by complaining to the company, going to a lawyer, or complaining
to other groups (such as business, private or government agencies).
Private actions include making a decision to stop buying the product
(exit option) or warning friends (voice option). In all cases, the seller
has done a poor job of satisfying the consumer.

Post purchase communications to buyers have been shown to


resulting fewer product returns and order cancellations. Computer
companies, for example, can send a letter to new owners congratulating
them on having selected a fine computer. They can place ads showing
satisfied brand owners. They can solicit customer suggestions and list
the locations of available services. They can write intelligible
instructions booklets. They can send owners a magazine containing
articles describing new computer applications. In addition, they can
provide good channels for speedy redress of customer grievances.
REGENCY MOTORS is doing the same to get the timely customer
feedback.

37
Post Purchase Use and Disposal : Marketers should also monitor
how buyers use and dispose of the product. If consumer store the
product in a closet, the product is probably not very satisfying, and
word of mouth will not be strong. If they sell or trade the product,
new-product sales will be depressed. Consumers may also find new uses
for the product. It is shown in the figure below:-

How Customers Use or Dispose of Products

38
4. STUDY DESIGN &
RESEARCH METHODOLOGY

39
MARKET RESEARCH- THE PROCESS

Step One: Define Marketing Problems and Opportunities


Step Two: Set Objectives, Budget and Timetables
Step Three: Select Research Types, Methods and Techniques
Step Four: Design Research Instruments
Step Five: Collect the Data
Step Six: Organize and Analyze the Data
Step Seven: Present and Use Market Research Findings

40
Market research, like other components of marketing such as
advertising, can be quite simple or very complex. You might conduct
simple market research such as including a questionnaire in your
customer bills to gather demographic information about your
customers. On the more complex side, you might engage a professional
market research firm to conduct primary research to aid you in
developing a marketing strategy to launch a new product.

Regardless of the simplicity or complexity of your marketing


research project, you'll benefit by reviewing the following seven steps
in the market research process.

Step One: Define Marketing Problems and Opportunities

The market research process begins with identifying and defining


the problems and opportunities that exist for your business, such as:
• Launching a new product or service.
• Low awareness of your company and its products or services.
• Low utilization of your company's products or services. (The
market is familiar with your company, but still is not doing
business with you.)
• A poor company image and reputation.
• Problems with distribution, your goods and services are not
reaching the buying public in a timely manner.

Step Two: Set Objectives, Budget and Timetables

Objective: With a marketing problem or opportunity defined, the


next step is to set objectives for your market research operations.
Your objective might be to explore the nature of a problem so you may
further define it. Or perhaps it is to determine how many people will
buy your product packaged in a certain way and offered at a certain

41
price. Your objective might even be to test possible cause and effect
relationships. For example, if you lower your price by 10 percent, what
increased sales volume should you expect? What impact will this
strategy have on your profit?

Budget: How much money are you willing to invest in your market
research? How much can you afford? Your market research budget is
a portion of your overall marketing budget. A method popular with
small business owners to establish a marketing budget is to allocate a
small percentage of gross sales for the most recent year. This usually
amounts to about two percent for an existing business. However, if you
are planning on launching a new product or business, you may want to
increase your budget figure, to as much as 10 percent of your
expected gross sales. Other methods used by small businesses include
analyzing and estimating the competition's budget, and calculating your
cost of marketing per sale.

Timetables: Prepare a detailed, realistic time frame to complete


all steps of the market research process. If your business operates in
cycles, establish target dates that will allow the best accessibility to
your market. For example, a holiday greeting card business may want
to conduct research before or around the holiday season buying
period, when their customers are most likely to be thinking about their
purchases.

Step Three: Select Research Types, Methods and Techniques

There are two types of research: primary research or original


information gathered for a specific purpose and secondary research or
information that already exists somewhere. Both types of research
have a number of activities and methods of conducting associated with
them.

Secondary research is usually faster and less expensive to obtain


that primary research. Gathering secondary research may be as simple
as making a trip to your local library or business information center or
browsing the Internet.

42
Step Four: Design Research Instruments

The most common research instrument is the questionnaire. Keep


these tips in mind when designing your market research questionnaire.
• Keep it simple.
• Include instructions for answering all questions included on the
survey.
• Begin the survey with general questions and move towards more
specific questions.
• Keep each question brief.
• If the questionnaire is completed by the respondent and not by
an interviewer or survey staff member, remember to design a
questionnaire that is graphically pleasing and easy to read.
• Remember to pre-test the questionnaire. Before taking the
survey to the printer, ask a few people-such as regular customers,
colleagues, friends or employees-to complete the survey. Ask
them for feedback on the survey's style, simplicity and their
perception of its purpose.
• Mix the form of the questions. Use scales, rankings, open-ended
questions and closed-ended questions for different sections of
the questionnaire. The "form" or way a question is asked may
influence the answer given. Basically, there are two question
forms: closed-end questions and open-end questions.
Close-end questions - Respondents choose from possible answers
included on the questionnaire. Types of close-end questions include:
• Multiple choice questions which offer respondents the ability to
answer "yes" or "no" or choose from a list of several answer
choices.
• Scales refer to questions that ask respondents to rank their
answers or measure their answer at a particular point on a scale.
For example, a respondent may have the choice to rank their
feelings towards a particular statement. The scale may range

43
from "Strongly Disagree", "Disagree" and "Indifferent" to
"Agree" and "Strongly Agree."
Open-end questions - Respondents answer questions in their own
words. Completely unstructured questions allow respondents to answer
any way they choose. Types of open-end questions include:
• Word association questions ask respondents to state the first
word that comes to mind when a particular word is mentioned.
• Sentence, story or picture completion questions ask respondents
to complete partial sentences, stories or pictures in their own
words. For example, a question for commuters might read: "My
daily commute between home and office is _____ miles and takes
me an average of ______ minutes. I use the following mode of
transportation: _______."

Step Five: Collect Data

To help you obtain clear, unbiased and reliable results, collect the
data under the direction of experienced researchers. Before beginning
the collection of data, it is important to train, educate and supervise
your research staff. An untrained staff person conducting primary
research will lead to interviewer bias.

Stick to the objectives and rules associated with the methods and
techniques you have set in Step Two and Step Three. Try to be as
scientific as possible in gathering your information.

Step Six: Organize and Analyze Data

Once your data has been collected, it needs to be "cleaned."


Cleaning research data involves editing, coding and the tabulating
results. To make this step easier, start with a simply designed
research instrument or questionnaire.

44
Some helpful tips for organizing and analyzing your data are listed
below.
• Look for relevant data that focuses on your immediate market
needs.
• Rely on subjective information only as support for more general
findings of objective research.
• Analyze for consistency; compare the results of different
methods of your data collection. For example, are the market
demographics provided to you from the local media outlet
consistent with your survey results?
• Quantify your results; look for common opinions that may be
counted together.
• Read between the lines. For example, combine U.S. Census Bureau
statistics on median income levels for a given location and the
number of homeowners vs. renters in the area.

Step Seven: Present and Use Marketing Research Findings

Once marketing information about your target market, competition


and environment is collected and analyzed, present it in an organized
manner to the decision makers of the business. For example, you may
want to report your findings in the market analysis section of your
business plan. Also, you may want to familiarize your sales and
marketing departments with the data or conduct a company-wide
informational training seminar using the information. In summary, the
resulting data was created to help guide your business decisions, so it
needs to be readily accessible to the decision makers.

45
5. RESEARCH ANALYSIS

46
4 P’s OF MARKETING MIX
The customer satisfaction level of REGENCY MOTORS was
studied under the 4P's of the marketing mix, namely:
1. PRODUCT
2. PRICE
3. PLACE
4. PROMOTION

These constitute the heart of marketing decisions form the heart


of the marketer. However, these can be 4C's from the angle of
consumers. Thus, what - "Product" is for marketer is "Consumer Needs
and Wants" for consumers; "Price" is for marketer is "Cost to the
Customer": "Promotion" is for marketer is "Communication" for the
customer and what "Place" is for marketer is "Convenience" for the
customer. Precisely, marketing mix is the master-mix of sub-mixes
namely, Product mix, Price mix, Promotion mix and Place mix as a set of
good many variables. These elements of marketing decisions over which
the firm has control. Hence, marketing mix signifies internal
controllable forces. Following is the detailed analysis of each element
of marketing mix:

Total automobile value and customer satisfaction are the


objectives, policies and approach to quality. The customer satisfaction
of the product was studied under :

THE PRODUCT MIX

(a) QUALITY :

The brand name of HONDA scooters and motorcycles, which has


been tested successfully on Indian roads for almost ten years, speaks
itself for its quality.

47
In nutshell, HONDA’S quality policy states that consumer
satisfaction through quality of their products and services is achieved
by consistent adherence to producers and systems.

The approach to quality at HONDA is in time with the Japanese


practice. "Build it in to the product". At HONDA, workers themselves
inspect the quality of their work. Supervisor educate, train workers to
continuously improve productivity and quality. In weekly management
meetings, the movement of quality indicators is reviewed in detail.
There is another monthly exercise done by REGENCY MOTORS: Two
best workers monthly are found out and are rewarded. It leads to the
lifting of the morale and provides encouragement to the workers which
results in providing the better and satisfactory service to the
customers.

HONDA emphasis on total quality have meant that today it is in a


position where it can guide its vendors and dealers in establishing and
consolidating their individual quality systems.

This has enabled HONDA to not only consistently produce a quality


product, but also to ensure that customers get the "sales and after
sales services". Such system have helped HONDA to offer the widest
segment of people, "products are value for money, backed by an
excellent sales and after sales service network".

(a) FEATURES :

HMSI has a complete range of scooters and motorcycles from the


very economical ETERNO to the super stylish UNICORN.

Other scooters and motorcycles include SHINE, ACTIVA and


DIO. Each two wheeler has different models with unique features and
attributes to suit ever kind of customer. Enhancing safety on the
roads is one of Honda's top priorities. HONDA firmly believe
that the realization of a comfortable and an enjoyable mobile
society depends on the mutual trust that automobile
manufacturers like they, share with the consumers and society.

48
At Honda, they use a three prong approach, based on preventing
accidents from happening in the first place, minimizing injury in
the unlikely event of an accident and our Driving Safety
Promotion operations.

Honda's safety philosophy emphasizes the development of


appropriate technologies for its products, so as to ultimately
achieve maximum riding comfort for its customers. Honda was
the first manufacturer in Japan to develop and apply the anti-
lock brake system. Educating the world, Honda is actively involved
with driving education across the world for promoting traffic
safety. The different features of two wheelers are based on the
concept of a unique product for each segment of people i.e. on the
concept of Market Segmentation.

A market consists of buyers, and buyers differ in one or more


respects. They may differ in their wants, resources, geographical
locations, buying attitudes and buying practices. Any of these variables
can be used to segment a market.

Segment Marketing:

A market segment consists of a group of customers who share a


similar set of wants. Thus, we would distinguish between two wheeler
buyers who are primarily seeking low-cost basic transportation and
those seeking a luxurious driving experience. We must be careful that
not to confuse a segment and sector. A two wheeler company might say
that it will target young, middle-income buyers. The problem is that
young, middle-income car buyers will differ about what they want in a
two wheeler. Some will want a low-cost bike and others will want an
expensive. Young, middle-income buyers is a sector not a segment.

But I am feeling very proud and pleasant that HONDA is


manufacturing cars and two wheelers for all sectors varying from
middle income car buyers to high income car buyers.
49
The marketer does not create the segments; the marketer's task
is to identify the segments and decide which one(s) to target. Segment
marketing offers several benefits over mass marketing. The company
can create a more fine-tuned product or service offering and price it
appropriately for the target segment. The company can more easily
select the best distribution and communications channels, and it will
also have a clearer picture of its competitors, which are the companies
going after the same segment.

However, even a segment is partly a fiction, in that not everyone


wants exactly the same thing. Anderson and Narus have urged
marketers to present flexible market offerings instead of a standard
offering to all members of a segment. A flexible market offering
consist of two parts: a naked solution containing the product and
service elements that all segment members value, and discretionary
options that some segment members value. Each option might carry an
additional charge.

There is no single way to segment market. A marketer has to try


different segmentation, variables, singly and in combination, hoping to
find rightful way to view the market structure. Major bases for
segmentation as used by HONDA are:

(1) Geographic Segmentation :

Geographic Segmentation calls for driving the market into


different geographical units such as nations, states, regions,
countries, cities or neighbourhoods. HMSI has also divided India into 5
regions namely: the north, the central, the east, the west, and the
south. Each regions is looked after by a regional office situated in a
main city of the region.

For the regions with hilly terrain and tough roads, vehicles like
UNICORN have been made and promoted. Honda Eterno, Activa, Dio
and Shine are meant for almost any plain roads.

50
(2) Demographic Segmentation :

Demographic Segmentation consist of driving the market into


groups on the basis of demographic variables such as age, sex, family
size, family life cycle, income, occupation, education, religion, race and
nationality. Demographic Variables are the most popular basis for
distinguishing customer groups. One reason is that consumer wants,
preferences and usage rates are often highly associated with
demographic variables.

HMSI has also produced different two wheelers based on some of


these demographic variables.

(3) Psychographic Segmentation :

In psychographic segmentation, buyers are divided into different


groups on the basis of their social class, life style, and/or personality
characteristics. People within the same demographic group can exhibit
very different Psychographic Profiles.

HONDA research clearly shows that in Delhi, two wheeler buyers


seek Novelty. In Mumbai, it is all about sophistication where as in
Chennai, most two wheeler buyers do not want to flaunt their wealth
but yet they want comfort.

Ergo, when a customer goes out to purchase, his life style and
personality come into play.

QUALITY OF SERVICE

"Services are activities, benefits or satisfactions that are offered


for sale, services are tangible, variable and perishable. As a result,
they normally require more quality control, suppliers creditability and
adaptability".

Being the authorized HMSI dealership cum service station,


REGENCY MOTORS provides the services under the guidelines of
HMSI.

51
REGENCY MOTORS SERVICING MODEL :
(a) The vehicle which is brought for servicing, is first taken for a
test drive by the works manager.
(b) A manual job card is made regarding the service needed by the
vehicle.
(c) The vehicle is then parked for washing.

(d) The vehicle is then taken in the workshop.


(e) The supervisor takes charge of the vehicle and assigns work to
his subordinate mechanics.
(f) After the work is done by the mechanic, the final supervisor
checks the engine of the vehicle(pistons, pressure etc)
(g) After the vehicle is repaired and serviced, the mechanic takes a
test ride of the vehicle.
(h) And finally, the customer is given a test ride to find out whether
there is any more to be repaired, serviced and other flaws.

In the workshop, there is a HONDA Genuine Spare Parts shop. A


complete inventory of HONDA Genuine spare parts is in store at
Regency Motors.

There is a customer waiting room in the workshop which has a


capacity of at least 15 customers and is equipped with cable T.V., daily
newspapers and latest issues of magazines.

Outside the customer waiting room, there is a desk of customer


relation officer where the customers can come for any types of
queries and complaints.

The workshop also consist of a canteen which is equipped with


NESTLE STALL, where Hot Tea is served to customers for free of
cost.

52
The Servicing Includes :

(1) Washing,

(2) General check up (as told by the customers),

(3) Filter change,


(4) Engine oil change,
(5) Fuel injectors cleaning,
(6) Engine and Clutch over haul,
(7) Engine De-Carbonizing,
(8) Light check,
(9) Self over haul,
(10) Alternator check,
(11) Brake over haul,
(12) Carburetor over haul,
(13) Denting and Painting, etc.

THE PRICE MIX

The price is the value in terms of money which is exchanged for a


product or service. Price is a major marketing tool and helps in
directing the product to a specific consumer segment. Price is the
value of the product expressed in terms of money. Price is a powerful
in which both the buyers and sellers are keenly interested.

The price of a product i.e. HONDA two wheelers at Regency


Motors is according to the price list issued by the HMSI Pvt. Ltd.
Form time to time. So, generally all the respondents were satisfied
with the price.

The reactions of different classes of society varies considerably


regarding price. For instance, the business class and the higher income
groups want the delivery immediately and even pay a little more than

53
that. So, they generally prefer dealers with standing stock of two
wheelers and there is no other better option than Regency Motors

THE PROMOTION MIX

Promotion Mix is the communication mix which deals with the


personal and interpersonal persuasive communication about the
product or service of the manufacturer. Personal communication
relates to face meeting between the sales-force of the company and
the clients. On the other hand, impersonal communication include
advertising, sales promotion and public relations.

Promotional Tools used by Regency Motors:


(1) Advertising :
(a) Banners
(b) Showroom Displays
(c) Stickers on two wheelers
(d) Newspapers
(e) Billboards
(f) Pamphlets
(g) Cable TV

(2) Sales Promotion :


(a) Tie pins
(b) Honda on road Services
(c) Prizes
(d) Rebates
(e) Free gifts
(f) Free service camps
(g) Celebrations

54
(3) Public Relations :
(a) Word of mouth
(b) Children painting competitions
(4) Personal Selling:
(a) Sales presentations

Punch Lines used by HONDA in T.V commercial advertisements


for promotion.

S.No. Name of the car Punch Line


1. ETERNO “Scooter with Geared Surprise”
2. DIO “Get Noticed”
3. ACTIVA “Designed for Everyone”

4. UNICORN “Race Your Spirit”

5. SHINE “Dream Machine”

THE PLACE MIX


REGENCY MOTORS is situated on the busy National Highway , 71-
Rehari, B.C Road, Jammu (J&K). Being a National highway, it is a very
busy road and attracts a lot of rush and mess of vehicles because
every vehicle, going or coming to Jammu has to pass through it.
The level of satisfaction of service from Regency Motors was
ascertained from the interview of 200 respondents (customers) with
the help of Questionnaires.

I personally interacted with the customers of the Regency Motors


which comes in the workshop for the servicing of their vehicles to get
the questionnaires filled by them only.

55
It was found that while considering service at Regency Motors,
the factors which influence the decision of the customers are:
(1) Continuous feedback,
(2) Authentic Spare Parts,
(3) Latest Equipment for servicing,
(4) Time span (Waiting),
(5) Mechanics,
(6) Environment at Regency Motors,
(7) Quality of servicing, etc

FINDINGS
The evaluation of the Customer Satisfaction at Regency Motors
was done on the basis of questions asked to the customers through
questionnaires. An analysis has been by keep in view of 200 customers
of Regency Motors which visit the service station for the servicing of
their vehicles.

The customers were given the questionnaires and were asked to


fill according to the instructions given in the questionnaire.

ANALYSIS:

The graphs and charts are made on the basis of the evaluation of
the responses given by the customers in the questionnaires filled by
them. The ratings given by the customers is shown in the form of
percentages. This is shown below:

56
C onv enience of Location

25
23.7 V alues
22.22
20

In percentage
15 1 4.07
13.33
10 9.63 9.63

5 4.44
2.22
0 0 0.74
1 2 3 4 5 6 7 8 9 10
Rating s

(Source: Questionnaire)

The above graph indicates the percentage number of ratings given


by the customers regarding the convenience of location of Regency
Motors from their respective places. A highest 23.70% of people gave
8 points followed by 22.70% gave 7 points followed by the rest. This
shows that a majority of people are happy with the location of the
Regency Motors and thus shows the PLACE MIX of the company is
satisfied.

Selection of Vehicles

30
25 25.93 V alues
In p ercen tage

21.48
20
15 14.071 4.07
10 11.1110.37

5
2.22
0 0 0 0.74
1 2 3 4 5 6 7 8 9 10
Rating s

(Source: Questionnaire)

The graph drawn above reveals that a majority 25.93% gave 7


points followed by 21.48% gave 8 points and the rest lags far behind.

57
This shows that Regency Motors has a variety in the selection of
vehicles in terms of colours, options, models etc because maximum
number of people are happy which is proved from the graph.

Delivery W aiting T ime

25
23.7
21.48 V alues
20
In percentage 15 14.81
12.59 1 3.33
10
8.15
5
3.7
1.4 8 0.74
0 0
1 2 3 4 5 6 7 8 9 10
Ratings

(Source: Questionnaire)

The above line graph clearly shows that a maximum number


(23.7%) of rated 7, at the second place 21.48% as 8, 14.81% as 6 and
so on. It is evident that there is a mixed response of people about the
Delivery Waiting Time of Regency Motors. This is one of the area on
which the company has to give some attention.

After Sales Services

25 V alues
20 20
In percentage

17.78
15 14.81 15.55
11.85 12.59
10

5 5.18
2.22
0 0 0
1 2 3 4 5 6 7 8 9 10
Ratings

(Source: Questionnaire)

The above graph is another case of mixed responses by the


customers. Here we can see that the maximum 20% people rated 8,
17.78 rated 7, 15.55 rated 9 and so on. The percentages responses are
58
very close to each other which shows that some people are happy with
the after sales services of the company whereas some are not. Here
company can improve upon by creating awareness among the masses.

S chem es/D iscounts/G ifts

25
2 2 .9 6
20 V a lue s
In percentage

15 1 5.5 5
1 2 .5191 .8 5
10 1 0 .3 7 9 .6 3
5 4 .4 4 3 .7 3 .7 5 .1 8
0
1 2 3 4 5 6 7 8 9 10
R a tin g s

(Source:Questionnaire)

The graph drawn above shows the dissatisfaction among the


customers of HMSI due to lack of schemes/discount/gifts. In the
above graph a highest 22.96% customers rated 5, followed by 15.55%
customers rated 4 and so on. The customers said that HONDA only
launches various schemes/discounts at the end of the year because
the customers purchase vehicles on the date as told by the
Astrologers, as a majority of people are superstitious in Jammu with
respect to the purchase of vehicle.

59
Dealings

30
25 24.44

In percentage
20 19.26
15 14.07 V alues
13.33
11.85 11.11
10
5 5.16
0 0 0.74 0
1 2 3 4 5 6 7 8 9 10
Ratings

(Source: Questionnaire)

The above graph drawn on the Dealings of Regency Motors shows


that a highest 24.44% people rated 7, followed by 19.26% as 8. It
reveals the fact that the customers are happy about the dealings of
the company because 11.85% customers rated 5 and 5.16% people
rated 5.16% as 4. This factor is increasing the goodwill of Regency
Motors which is very hard to earn. It is also creating a sense of loyalty
among the customers.

Sales Person know ledge About


Vehicles

25 Values
22.96
In percentage

20
18 .52 18.52
15
12.59
10 11.11 11.11

5 3.7
0 0 0.740.74
1 2 3 4 5 6 7 8 9 10
Ra tings

(Source:Questionnaire)

60
The graph drawn above regarding the sales person knowledge
about vehicles shows that a highest of 22.96% of customers rated 8,
followed by 18.52% customers rated 7 & 9. This reveals the fact that
the customers are pretty much satisfied with the knowledge of the
sales person of the Regency Motors. This shows that a new recruit is
being trained (regarding prices, different models, features, insurance
policies etc) properly before being put into showroom to interact with
the customers.

Sales Person Appearance

35 V alues
30 31.11
In p erce ntag e

25
20 18.52
17.04
15
12.59
11.11
10
7.4
5
0 0 0 0.74 1.48
1 2 3 4 5 6 7 8 9 10
R atings

(Source:Questionnaire)

The graph made above reveals that a majority of customers are


happy with the appearance of the salesmen of the company because a
highest of 31.11% of the customers gave 8 points. Salespersons
appearance is being calculated in terms of their clothes, grooming,
communication skills etc. The people working in the showroom are
having a proper uniform whether he is a manager or a sales person,
with badges (which includes name and designation).

61
H o nesty of the S ales P erson

35 V a lue s
30 2 8 .8 9

In percentage
25
2 2 .2 2
20
1 7 .7 8
15
1 2 .5 9
10 1 0 .3 7
8 .1 5
5
0 0 0 0 0
1 2 3 4 5 6 7 8 9 10
R a tin g s

(Source:Questionnaire)

The above graph shows that the company is not making any fake
claims. The claims may be regarding average, pick up, features, color
life, strength, etc of its vehicles. It is evident from the above graph
because a highest of 28.89% of the customers gave 9 points when this
question was asked followed by 22.22% gave 8 points. This makes
HONDA a trusted brand among customers.

Mileage as told by the C om pany

30
28 .15
V a lues
25
In percentage

2 1.4 8
20
15 14 .81
10 10 .37 10 .3 7
7 .4
5 5 .9 3

0 0 0 .74 0 .74
1 2 3 4 5 6 7 8 9 10
R a tin g s

(Source:Questionnaire)
The above clearly depicts that why HONDA is a trusted brand
among the customers. HONDA is a budget friendly two wheeler as
explained in the graph before also. The customers are getting the

62
value after purchasing the vehicle by getting a good mileage. In the
above graph, we can see that a highest of 28.15% gave 7 points
followed by 21.48% gave 8 points.

Following are the words of a pride owner of Honda Eterno :

My shop is 22 km away from my house. I have to travel


every day. Earlier, I had to spend a lot of money on petrol.
But now, if I fill up petrol once, it lasts for many days. The
mileage is above 60 km to a litre. Even more than what the
company promised! I never got such mileage before. I used to
have back problems earlier due to the long rides. But with
Eterno I don't feel the distance at all. Even small potholes
are not a problem. This is because it has marvelous
suspension. My whole family is very happy with Eterno.

The questions on which the Pie-Charts are made were asked on YES-NO
basis from the customers. They are shown below:-

Were you introduced to someone


in the service department ?

50% 50%
yes
no

(Source:Questionnaire)
On the question "Were you introduced to someone in the service
department when you purchase the two wheeler from Regency Honda",
the response was 50-50. This is another area where the company has
look on.

63
W e re yo u p e rs on a lly th an k ed for you r
v eh ic le p u rc ha s e d ?

21%

ye s
no

79%

(Source:Questionnaire)
The above Pie-Chart shows that 79% of the customers were personally
thanked for their vehicle purchase while 21% not, which were
interviewed. Actually this is the policy of the company to thank every
customer for the purchase. The reason behind 21% of the customer
declined was, some of them didn't remember and there were also some
drivers who had came for servicing of the vehicles.

W ere you offered Test Driv e ?

47%
53%
yes
no

(Source:Questionnaire)

The above graph is the analysis of the question "Were you offered
test drive before purchasing the vehicle". As we can see that 53% of
the customers said 'Yes' while 47% said 'No'. The reason behind 47%
of the customers said 'No' is that people are already familiar with the
HONDA two wheelers. So they think that there is no need of test
drive.

64
Con tin u ou s F eed b ack ab ou t you r
Satisfaction

32%

Yes
No
68%

(Source:Questionnaire)

Regency Honda is very good at customer relation. The above Pie-Chart


shows that 68% of the customers said that they are being
continuously asked about their satisfaction. Only a meager 32% said
No. The reason behind this is some people have purchased second hand
two wheeler and visit the company for the servicing, changed phone
numbers; some customers have purchased their vehicles from other
dealerships other than Regency Motors.

How do you about the dealers of


HONDA?
3.33%
17.63% Newspapers

Showroom Displays

TV/Banners/Sales
executives/By Mouth
25.93%
53.11% Billboards/Phamplet
s/Stickers/Camps

(Source:Questionnaire)

The above drawn Pie-Chart reveals that "How people know about the
dealers of HONDA". Newspaper has got a very heavy percentage with
53.11%, followed by 25.93% by showroom displays and so on. Since
Regency Motors is having biggest market share as proved in the
previous graphs and Pie-Charts, it means that it gives frequent
advertisements in the newspapers.
65
How would you rate the services of
Regency Motors ?
0.74%
5.19%
22.96%
Poor
28.89% Average
Satisfactory
Good
Excellent

42.22%

(Source:Questionnaire)

In response to the question that "How would you rate the services of
Regency Motors?". The customers were seen satisfied. It is evident
from the above Pie-Chart which shows that 42.22% of the customers
said 'Good', 28.89% said 'Satisfactory', 22.96% said 'Excellent'.

The above Graphs and Pi-charts are made to easily access the

various services provided by Regency Motors. The customers were

seen pretty much satisfied with the dealership. It also depicts

their goodwill and big market share in Jammu & Kashmir.

I have made the Graphs and Pi-Charts very clear and simple that

a layman can easily understand. The values are also shown on the

designated points in the graphs. The values are calculated in the


percentage units. A brief explanation has been given below every Graph

and Pie-Charts to make them clearer. The reasons behind every major

percentage value have been given to make them more understandable for

the readers.

66
SWOT ANALYSIS

The overall evaluation of a company's strengths, weaknesses,


opportunities and threats is called SWOT analysis.
External Environment Analysis (Opportunities and Threats Analysis)
In general, a business unit has to monitor key macro environment
forces (demographic, economic, technological, political-legal and social-
cultural) and significant micro environment actors (customers,
competitors, distributors, suppliers) that affect its ability to earn
profits. The business unit should set up a marketing intelligence
system to track trends and important developments. For each trend or
development, management needs to identify the associated
opportunities and threats.
A major purpose of environment scanning is to discern new
marketing opportunities. A marketing opportunity is an area of buyer
need or potential interest in which a company can perform profitably.
Opportunities can take many forms and marketers have to be good at
spotting them.
• A company may make a buying process more convenient or
efficient.
• A company can need the need for more information and advice.
• A company can customize a product or service that was formerly

offered only in a standard form.

• A company can introduce a new capability.

• A company may be able to deliver a product or a service faster.

• A company may be able to offer a product at much lower price.

67
The company now applies Market Opportunities Analysis (MOA) to
determine the attractiveness and success probability of any
opportunity. Five questions are asked:
1. Can the benefits involved in the opportunity be articulated to a
defined target market(s)?
2. Can the target market(s) be located and reached with cost
effective media and trade channels?
3. Does the company possess or have access to the critical
capabilities and resources needed to deliver the customer
benefits?
4. Can the company deliver the benefits better than any actual or
potential competitors?
5. Will the financial rate of return meet or exceed the company's
required threshold for investment?
Some developments in the external environment represent
threats. An environmental threat is a challenge posed by an
unfavorable trend or development that would lead, in the absence of
defensive marketing action, to deterioration in sales or profit. Threats
should be classified according to seriousness and profitability of
occurrence.
Once the management has identified the major threats an
opportunities facing a specific business unit; it can characterize the
business's overall attractiveness. Four outcomes are possible:
• An ideal business is high in major opportunities and low in major
threats.
• A speculative business is high in both major opportunities and
threats.
• A mature business is low in major opportunities and low in threats.
• A troubled business is low in opportunities and high in threats.

68
Internal Environment Analysis (Strengths/ Weakness Analysis)

It is one thing to discern attractive opportunities and another to


be able to take advantage of these opportunities. Each business needs
to evaluate its internal strengths and weaknesses.
Sometimes a business does poorly not because its departments
lack the required strengths, but because they do not work together as
a team. It is therefore critical to access interdepartmental working
relationships as part of the internal audit.
Every company must manage some basic processes, such as new-
product-development, sales generation, and other fulfillment. Each
process creates value and requires interdepartmental teamwork.
Although each department may possess specific core competencies,
the challenge is to develop superior competitive capability in managing
the company's key processes. Stalk calls this capabilities based
competition.

69
Checklist for Performing Strengths/Weakness Analysis
Internal environment Analysis of Regency Motors
PERFORMANCE
Features
MAJOR MINOR MINOR MAJOR
NEUTRAL
STRENGTH STRENGTH WEAKNESS WEAKNESS

Company’s Reputation

Service Quality 
Pricing Effectiveness 
Geographical Coverage 
Promotional Effectiveness 
Sales Force Effectiveness 
Financial Stability 
Locational Effectiveness 
Skilled Workforce 
Employee Satisfaction 
Modernized Service Station 
Range of Accessories 
Distribution Effectiveness 
On-Time Delivery 
Delivery at Doorstep 
Customer Care 
Customer Feedback 
Insurance Facility 
Centralize Authority 
Coordination Of Workforce 

70
Innovation 

71
Opportunities :
1. Capturing the market of economically well-off having tendency to
buy more than one vehicle.
2. Expanding the need to untapped market. It has its sister
concerns at Udhampur and Srinagar in J&K state. Regency Motors
also organizes market campaigns in suburban areas of Jammu.
3. Catering to servicing need of distant places by opening nodal
centers.
4. Special provision for government employees.
5. Attracting the dis-satisfied customers of other dealers and
service stations by organizing free servicing camps.
6. Changing a customer of a competitive brand into a HONDA
customer.
7. Conversions of consumer preferences form a second hand two
wheeler to a two wheeler.

Threats:
1. Competitive models of other brands are available in the market.
2. Excise duty being increased on steel used in the two wheelers
which led to price hike.
3. Resentment among persons who regularly refer clients to Regency
Motors for want of commission.
4. New two wheelers being launched in the market.
5. Craze of Jammuites for expensive two wheelers and big cars.
6. Attractive discounts and facilities offered by various dealers
outside J&K.
7. Black marketing practices.
8. Some dissatisfied customers of the company.
9. Relatively higher cost of petrol.

72
6. SUGGESTIONS

73
According to experts that next ten years will be a period of
consolidation. Big will get bigger and small will get swallowed up. The
U.S., Japan and Canada accounts for about 53% of the world's total
two wheeler production. So HMSI has to make it a big strength to
fight with the global giant.

According to U.S. automatic automobile industry volumes may


grow up by just 2% globally. But in India, in the last 5 years, the
automobile industry has already seen a growth of 40%. So till today a
lot of gaps in India two wheeler market are still existing and HMSI
should try to fill these gaps as early as possible.

Some suggestions that HMSI should take into


consideration
1. Betterment of Services: HMSI should concentrate on
its strength very intelligently so as to its strength a power.

2. Adjusting according to the changing buyer behaviour:


Now, in market we can also see that women are also playing a big role in
purchase of a two wheeler. So now, HONDA should also concentrate on
women segment and should target them more through effective ad
campaigning as they are doing so in T.V. commercials.

3. Technological changes: As the two wheeler market is


getting global at a rapid race so HMSI should keep the technology up
to the global standards so as to remain secure in future.

74
Suggestions for Regency Motors

1. More Decentralization of authority: Sales persons should be


given authority to give suitable discounts keeping in view the prices
of the competitors. Also more authority should be given to General
Manager to take decisions because it will reduce the time gap of
decision making in the process and also gives encouragement to the
employees.

2. Effective Sales force: Sales force should be made more


effective in the following ways:
(a) Providing the sales persons with the information magazines like
Auto India and other magazines on auto market to keep their
information up to date about the two wheeler market ahead of
others.
(b) Communication skills of sales persons should be enhanced.
(c) Regular training about product features should be given to the
sales persons so as to keep the sales person up to date with new
product features.
(d) Sales should be equipped with modern equipment like cell phones
so as to keep them always in contact.
3. Increase the satisfaction level of employees by:
(a) Regularly motivating them.
(b) Good communication setup should be made between the employees
and top management.
(c) Decentralization of authority should be done.

75
4. New feature like night working should be introduced : i.e the
two wheeler should be repaired and serviced at night and be given
back to the customers in the morning.
5. Sunday opening of service station to be done to cater those
customers who are free only on Sundays like shopkeepers and
employees.
6. Customer delight should be made the main focus of Regency
Motors, the various activities that forms the customer delight
are :

(a) Special finance schemes for middle income groups are to be


provided who otherwise prefer a second hand vehicle due to
financial constraints.

(b) Gifts and prizes(scratch cards etc) on purchase of every vehicle.

(c) Special greeting or gifts to the customers on first anniversaries


of their two wheelers.

IMPEDANCES
It is not possible to conduct a flawless study. Every research is
bound to be suffering from certain limitations which could influence
the results of the study. The limitations from my study are:
1. The responses provided by the respondents might have some
false information in them; this bearing on the part of respondents
could affect the result of the study.
2. The research was conducted in the service station of Regency
Motors, so a lot of respondents were missed who didn't visited
the service station during that period.
3. Some people send their drivers for the servicing of their two
wheeler so it might be possible that they provided the wrong
information.
4. Time constraints forced the sample size to that of only 200.

76
5. Due to unawareness and illiteracy of the people of Jammu
(especially drivers and some business men), there are some flaws
in the study.
6. Some people didn't returned the questionnaires and took the
questionnaires with them.
7. There are also some communication gaps because people which
were interviewed belonged to all types of communities (Kashmiris,
Dogri etc)

INFERENCES
Following inferences are drawn about the various operational
activities linked with Regency Motors and the market in which it
operates:-
1. Regency Motors provides an excellent computerized service for
two wheelers to clients at its well equipped service station, where
various activities like engine de-carbonization, engine scanning,
wheel balancing, and pollution checks are done using sophisticated
instruments.
2. Home delivery includes delivering the car to the owner at his
doorstep by drivers providing customer delight.
3. Waiting period for the vehicles is comparatively low as compared
to other brands in Jammu city.
4. The company has been generally able to deliver what is promised
within the stipulated time frame. Also, the popularity of the
Directors of the company has created a goodwill for the company
and due to that factor Regency Motors family has received
bookings from other territories as well.
5. The workforce of the service station and the other staff though
technically efficient, was found to be possessing a low
motivational level attributed majority due to the absence of
promotional opportunities, overtime allowances, medical facilities
etc. So, when the workforce is not fully satisfied with the

77
company, it provides ample scope for the un-satisfaction to the
customers.
7. Though various provisions have been made to ensure sound
customer care such as fully air-conditioned customer waiting
room, canteen facilities facility, a customer care officer, yet
these efforts suffer from drawbacks such as non-functioning of
AC and television sets.
8. A customer feed back form along with continuous after sales
check by sales executives forms the part of customers feed back
system. But majority of customers complained of no visit sales
executives after sales. Many customers complains of not being
able to understand the contents of the form, thus an effective
feedback system is missing.
9. There is a centralized decision making system where powers are
vested with in the Managing Director of the company. In the
absence of the decision maker, at times delays actions and hung
issues have led to unproductive results, besides causing
resentment among the parties involved.
10. Some customers complained about receiving the partial attention,
over charging and wastage of time in waiting for their turn.
11. However, in spite of these shortcomings, some customers are
very loyal to Regency Motors and prefer the servicing of their
two wheelers from Regency Motors rather from any other
authorized or local service station. They hold services of Regency
Motors as of top quality. So, it is for Regency Motors to maintain
its standards and further up grade them to hold on to the old
customers and win new loyalties.
12. On an average, Regency Motors sells 10 two wheelers daily which
itself speaks for the goodwill and popularity of the company.
13. The customer satisfaction level of Regency Motors was in general
found in between the satisfied and highly satisfied customers.
Satisfaction level was high for the product and price.

78
7. ENCLOSURES

79
BIBLIOGRAPHY
• Market Management by "Philip Kotler" and "Kevin Lane Keller"-
12th edition, Pearson Education.

• Essentials of Marketing Research by "S.A.Chunawalia", Himalaya


Publishing House.

• Marketing Management by "C.N.Sontakki".

• Auto India

• Shopper, Buyer and Consumer Behaviour by "Jay D. Lindquist" and


"M.Joseph Sirgy"-Second edition, biztantra.

• Consumer Behaviour by "Leon G.Schiffman" and "Leslie Lazar


Kanuk"- Eighth edition, Pearson Education.

• www.honda.com

• www.google.com

• www.honda2wheelersindia.com

• www.autoindia.com

80
QUESTIONNAIRE FOR CUSTOMER
Dear Customer,

We are thankful to you for spending little time for us


while filling this feedback form. Your valuable inputs will
enable us for continuous improvements of our service
quality. Thank you.
A. Name of the Customer________________________________

Occupation_________________________________________

Address____________________________________________

Phone No/Mobile No_________________________________

B. Model of the two wheeler that you have______________________

Regn. No.________________________________________

C. Name of the Dealer from whom you purchased the two


wheeler___________________________________________

D. Using a scale of 1 to 10, where 1 is unacceptable, 5 is average


and 10 is outstanding, please rate when you purchased your
vehicle.

Convenience of Location

Selection of Vehicles (Colors, options etc.)

Delivery waiting time

After Sale Services

Schemes/Discounts/Gifts

Sales person knowledge about vehicles

Sales person appearance (Clothes, grooming etc.)

Honesty of Sales persons

Mileage as told by the company

81
E. Upon delivery of your new vehicle, which of the activity listed
below took place :—

Were you introduced to someone in the service department ?


Yes/No

Were you personally thanked for your vehicle purchase ?


Yes/No

Were you offered test drive ?


Yes/No

Availability of Manual, Tool kit, Jack, Spare wheel, First Aid Kit etc.
Yes/No

F How did you know about the dealer ?

Billboards Phamplets Television


Newspapers

Banners Showroom Displays Camps

GWhere do you often go for servicing your vehicles ?

01. Honda Authorized service station

02. Local Service Station

03. Any other (Please Specify)____________________________

H How would you rate the services of Regency Motors?

POOR AVERAGE SATISFACTORY GOOD


EXCELLENT

I Do you purchase Genuine spare parts


Yes/No
J Why you prefer Honda instead of other two wheelers?
_________________________________________________________

K Any problems or dissatisfactions faced after the purchase


Yes/No

82
If “YES”, Please specify_____________________________

L Are you satisfied with the servicing ?


Yes/No

Any suggestions for improvements in the servicing


________________________
______________________________________________________________
_

M Based on the overall experience with your dealer, would you


recommend

this to your relatives or friends ? Yes/No

Dated_______________
Signature

“WE THANK YOU FOR THE TIME THAT YOU HAVE INVESTED IN
OUR SERVICE TRACKER, YOUR VALUABLE OPINION AND
CONTINUES SUPPORT IS OUR INSPIRATION.”

83

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