A - PROJECT - REPORT - ON Honda Company

CONSUMER BEHAVIOUR TOWARDS HONDA COMPANY
VSKUB.UNIVERSITY
A
PROJECT REPORT
ON
HONDA COMPANY LTD.
“CONSUMER BEHAVIORTOWORDS HONDA COMPANY”
Submitted to
VIJAYANAGARA SRI KRISHNADEVARAYA UNIVERSITY
FOR THE PARTIAL FULFILLMENT OF THE DEGREE OF
BACHELOR OF BUSINESS MANAGEMENT
SESSION 2014-2015
DEPTT. OF COMMERCE AND MANAGEMENT STUDIES
COLLEGE: SMT. S.S.A GOVT. FIRST. GRADE COLLEGE, BALLARI
Submitted by:
CHELUVADI MARESHA
(Reg. no. : M1410003)
Under the guidance of:
Smt. S.S.A. govt. first grade college, BALLARI

MIS. S. VEERAMANGALA MADAM (Asst .Professor) .
Mr. CHELUVADI MARESHA
II Semester, BBM
Reg No: M1410003
S.S.A. GOVT. FIRST GRADE College,
BALLARI-583101
VSKUB.UNIVERSITY
DECLARATION
I here by declare that this Project Report entitle “CONSUMER BEHAVIOUR

TOWARDS HONDA COMPANY” is an original work carried out by me during the
academic year 2015 under the guidance of MS. S. VERAMANGALA MBA (M.PHI.),
lecturer Commerce and Management, S.S.A Govt. first grade College, BALLARI, in
partial fulfillment of the requirements for the award of Bachelor degree in
Business Management of VIJAYANAGARA SRI KRISHNADEVARAYA University.
I also declare that this Project has not been submitted to any other
university or institution for the aware of any degree.
Place:
Date: Signature of the Student
(CHELUVADI MARESHA)

CERTIFICATE
This is to certify that the project report entitled “CONSUMER

BEHAVIOUR TOWARDS HONDA COMPANY” submitted by
CHELUVADI MARESHA to the VIJAYANAGARA SRI
KRISHMADEVARAYA University, BALLARI in partial fulfillment for the
award of Degree of Bachelor of business management is a original
record of the project work carried out by him under my supervision
during the year 2014-2015. Prof. Mr. GOPAL Professor and HEAD OF
DEPARTMENT of COMMERCE AND MANAGEMENT STUDIES.
COLLEGE: SMT. S.S.A GOVT. FIRST. GRADE COLLEGE, BALLARI.
Signature of HOD .
Prof. MR.GOPAL M.COM.

HEAD OF DEPARTMENT of
COMMERCE AND MANAGEMENT STUDIES,
SMT. S.S.A GOVT. FIRST. GRADE COLLEGE, BALLARI.

CERTIFICATE
This is to certify that the project report entitled CONSUMER

BEHAVIOUR TOWARDSHONDA COMPANY “” submitted by CHELUVADI
MARESHA to the VIJAYANAGARA SRI KRISHMADEVARAYA University,
BALLARI in partial fulfillment for the award of Degree of
Bachelor of business management is a original record of

the project work carried out by him under my
supervision during the year 2014-2015. Prof. MS. S.
VERAMANGALA MBA (M.PHI.),
DEPARTMENT of COMMERCE AND MANAGEMENT STUDIES.
COLLEGE: SMT. S.S.A GOVT. FIRST. GRADE COLLEGE, BALLARI.
Signature of GUIDANCE
Prof.. MS. S. VERAMANGALA MBA (M.PHI.),
DEPARTMENT of
SMT. S.S.A GOVT. FIRST. GRADE COLLEGE, BALLARI

CO- ORDINATE CERTIFICATE
This is to certify that the project report on A overall study of HONDA MOTOR products is a
bona fide work carried out independently by Mr. CHELUVADI MARESHA during 2015, in
partial fulfillment of the requirements for the award of the degree in BACHELOR OF
BUSINESS MANAGEMENT and this report has not formed the basis for the award of any other
degree, diploma or any other similar course.
PROJECT CO-ORDINATER
Mr. GURUBASAPPA.S
( M.COM. M.phi.)
DEPARTMENT of
SMT. S.S.A GOVT. FIRST. GRADE COLLEGE, BALLARI.
PLACE:
DATE :

ACKNOWLEDGEMENT
I am thankful to MIS. S. VEERAMANGALA MADAM (Asst .Professor) for being

my project guide.
My profound thanks to NAME, Director, COLLEGE NAME, who was

patient in giving direction to my project in his capacity.
I express my sincere gratitude to HONDA COMPANY SUPERVISOR

and other personnel staff for guiding and encouraging me to the
completion of project on time.
I am grateful to my parents for their continuous support right from the

beginning of my project to the submission of this report.
(CHELUVADI MARESHA)
Reg. no. : M1410003

CONTENTS
Page No.
CHAPTER-1
INTRODUCTION
CHAPTER-2
COMPANY PROFILE
CHAPTER-3
INDUSTRY PROFILE
CHAPTER-4
CONSUMER DATA SURVEY ANALYSIS
CHAPTER-5
SUGGESTIONS AND CONCLUSSIONS
BIBLIOGRAPHY

INTRODUCTION :
Honda Motor Company Limited is perhaps best known as an automaker--it is the third
largest automaker in Japan--but the company has its roots in motorcycles, and is the
world's top motorcycle manufacturer. Its best market is in the United States, where the
majority of its sales are generated. Honda's automobile product line accounts for
approximately 90 percent of its sales, and includes well-known U.S. top-sellers such as
the Accord, Legend, Civic, Prelude, and the luxury Acura. The Accord is the second most
purchased car in the United States, although it actually ranks first on the country's list of
most stolen (and thus, "in demand") vehicles. Honda also produces motorcycles such as
the Super Cub, Foresight, and Shadow 750. Furthermore, the company's power products
division makes other items that bolster annual sales, such as agricultural and industrial-
use machinery, portable generators, outboard motors, and all-terrain vehicles.
Of
"Accord"ing to Honda, you might be in your Element if you do you Civic duty and get Fit. Honda Motor is Japan's #2
car models include the Accord, CR-V, Civic, Element, and Fit; gasoline- electric hybrid versions of the Civic a
includes everything from scooters to superbikes. The company also makes a line of ATVs and personal watercraft. H
mowers, snow blowers, and tillers); portable generators; and outboard motors. Almost 70% of Honda Motor sales co
SWOT ANALYSIS OF HONDA
Strengths

-Benz and BMW, according to Interbrand.
Motorcycle Diversified product portfolio. Honda unlike many other automotive companies does not focus only on
Therefore, the company is not as susceptible as its competitors are to market cycles or technology disruptions.
Huge investments in R&D. Honda’s investments in R&D reach as much as 5% of revenue. The business relies on
as improved vehicle painting process, new hydrogen and hybrid engines or new welding technologies. In 2012, the c
Strong brand image. Honda has a reputation for producing the best quality engines around the world. The compan
only behind Toyota, Mercedesmarket share in Asia. In 2012, Honda sold 80.5% of its motorcycles in Asia, the mar
Honda is well positioned to compete with other companies for the sales and profits.
Weaknesses
Product recalls. Over 2011 and 2012, Honda recalled more than 1,000,000 vehicles to fix various faulty parts and m
sales.
Weak position in Europe automotive market. Honda holds a very weak position in the Europe’s automotive marke
is declining at the moment and many companies experience losses, the market is huge and firms can benefit from th
Decreasing sales. In 2012, Honda’s revenue hit the lowest point in 4 years to ¥7.948 trillion. Honda sales were dow
Revenue from Asia and Europe also declined by 21.3%, 15.5% respectively, signaling poor firm’s performance globa
Opportunities
Increasing fuel prices. Honda’s strong emphasis on engineering fuel-efficient vehicles (Honda Insight and Honda C
prices.
Positive outlook for global motorcycle industry. Motorcycle industry grew by 4.2% from 2011 to 2012 and is exp
the motorcycles having more than 29% of the market share. Growing demand for the motorcycles is a great opportu
Growing global demand for environment friendly vehicles. The declining levels of fossil fuel sources and the ris
Therefore, ecologically friendly cars, powered by hybrid, hydrogen or flexible fuel engines became very popular. The
fueled engines is a great opportunity to capture the market share for this new demand.
Growth through acquisitions. Honda could greatly benefit from strategic partnerships or acquisitions of smaller co
economies of scale and would benefit from synergies between different firms.
Threats
Intense competition. Honda faces more intense competition than ever. New small entrants are disrupting the mark
companies are restructuring themselves to become more efficient. As a result, firms like Honda are suffering from co
Decreasing fuel prices. Some analysts forecast that future fuel prices will drop due to extraction of shale gas. This
hybrid and flexible fuel engine cars, which are not so attractive to consumers when fuel prices are low.
Rising raw material prices. Metals are the main raw materials used in vehicle and motorcycle manufacturing and t
Natural disasters. Honda has manufacturing facilities in Japan, Thailand, China and Malaysia. These countries, inc
facilities and decrease Honda’s production volumes.
Strong yen. Honda earns most of its profits outside Japan and appreciating yen poses a great threat to Honda’s pro
VISION & MISSION OF HONDA
Vision
Market leader in the motorcycle industry, emerging as a global competitive

centre of production and exports.
Mission
A dynamic growth oriented company through market leadership, excellence

in quality and service and maximizing export, ensuring attractive returns to
equity holders, rewarding associates according to their ability and
performance, fostering a network of engineers and researchers ensuing
unique contribution to the development of the industry, customer
satisfaction and protection of the environment by producing emission
friendly green products as a good corporate citizen fulfilling its social
responsibilities in all respects.

Quality Policy
 Commitment to provide high quality motorcycles & parts

 Right work in first attempt and on time
 Maintain and continuously improve quality
 Training of manpower and acquisition of latest technology
 Safe, clean and healthy environment
 Market leadership and prosperity for all
PROFILE OF BOARD OF DIRECTORS
Yusuf H. Shirazi
Chairman
Mr. Shirazi is a Law graduate (LLB) with BA (Hons) and JD (Diploma in

Journalism) from Punjab University and AMP Harvard. He served in the
financial services of the Central Superior Services of Pakistan for eight years.
He is the author of five books including “Aid or Trade” adjudged by the
Writers Guild as the best book of the year and continues to be a columnist,
particularly on matters – socio – politico – economic.
Mr. Shirazi is the Chairman of Atlas Group, which, among others, has joint
ventures with Honda, GS Yuasa and MAN. He has been the President of
Karachi Chamber of Commerce and Industry for two terms. He has been the
founder member of Karachi Stock Exchange, Lahore Stock Exchange and
International Chamber of Commerce and Industry. He has been on the
Board of Harvard Business School Alumni Association and is the Founder
President of Harvard Club of Pakistan and Harvard Business School Club of
Pakistan. He has been a visiting faculty member at National Defense
University, Navy War College and National School of Public Policy. He has
been on the Board of Governors of LUMS, GIK and FC College (Chartered
University) and Pakistan Institute of Management. Previously, he also
served, among others, on the Board of Fauji Foundation Institute of
Management and Computer Sciences (FFIMCS) and Institute of Space
Technology – Space & Upper Atmosphere Research Commission (SUPARCO).

Sanaullah Qureshi
Director (Non-Executive)
Mr. Sanaullah Qureshi qualified as a Chartered Accountant from Scotland

and joined ICI Pakistan Limited in 1962. He worked in different capacities as
General Manager and Director in-charge of Finance, Human Resources and
various other businesses of ICI. He retired as the Deputy Chairman of ICI in
1993. Mr. Qureshi joined as CEO of Forbes Forbes Campbell & Co. Limited,
an old established Group dealing in shipping, trading and manufacturing. He
retired from Forbes in 1995 and is now acting in advisory capacity with
Captain-PQ Chemicals Industries Limited. He is the former President of
Management Association of Pakistan. He holds directorship in Linde Pakistan
Limited (formerly known as BOC Pakistan Limited) and MYK Associates
(Private) Limited. He has been on the Board of Atlas Honda Limited since
February 2001.
Jawaid Iqbal Ahmed

Director
Mr. Ahmed is an AMP from Harvard Business School, Boston USA, and IPBM
from IMD Lussanne, Switzerland. He is also MBA from IBA Karachi
University. He has been working in Atlas Group in various capacities. He has
over 48 years of experience in the field of industrial and financial markets of
Pakistan. He spearheaded joint venture partnerships of Atlas Group with
Honda Japan, JSB Japan, Bank of Tokyo, Asian Development Bank and ING.
Abid Naqvi
Mr. Abid Naqvi is the CEO of ACL Capital (Pvt.) Limited, a business
development company affiliated with Associated Constructors Ltd. He is also
on the Board of Associated Constructors Limited, Alfalah GHP Investment
Management Limited and Cherat Packaging Ltd. He has worked in the fields
of Commercial and Development Banking and Stock Brokerage for a period
of Twenty Five years. He has also worked as CEO of Taurus Securities
Limited, a renowned name in stock brokerage industry. He is a graduate
from the University College London, UK in the field of Economics and
Finance.

Kazuhisa Hirota
Mr. Kazuhisa Hirota is General Manager of Finance Division of Honda Motor

Co. Ltd. Japan. He is also responsible for the region as General Manager of
Regional Operation. He joined Honda in 1987. He has also served at
Business Planning Division. He has also served in China at Honda Automobile
(China) Co. Ltd. and was in-charge of regional operations of Honda Motor
(China) Investment Co. Ltd.
Hiromitsu Takasaki
Director (Executive)
Mr. Hiromitsu Takasaki has served at Planning Division of Honda Motor

Company (HM), Japan before being appointed to Pakistan. Earlier he was
stationed in U.S.A. He has started his career from four wheelers in 1989. He
is member of the Board of Atlas Honda Limited since January 2014.
Kobayashi
Director (Hisao Executive)
Japan before being appointed to Pakistan. He was stationed in U.S.A. for

Motorcycle Production Planning & Logistics, then assigned at Taiwan as
Automobile Marketing and Product Planning Manager. Later on, he was
appointed as the Managing Director of Honda ICVS Singapore. He has
diversified knowledge of Honda Products and has Mr. Hisao Kobayashi was
acting as Head of Automobile Product Planning Office, experience of working
in different cultures and with Honda Partners. He is Vice President –
Technical and a member of the Board of Atlas Honda Limited Board since
June 2010.
Saquib H. Shirazi
Chief Executive Officer
Mr. Saquib H. Shirazi has been the Chief Executive Officer of Atlas Honda
Limited for the last thirteen years. He graduated from the Wharton School of
Finance, before completing his Masters from the Harvard Business School.
He has worked with the Bank of Tokyo – Mitsubishi UFJ Limited in Japan and
is the former CEO of Atlas Investment Bank Limited. At present, he is

serving as a member on the Board of Pakistan Petroleum Limited, Pakistan
Cables Limited and Cherat Cement Limited. Previously, he has been on the
Boards of National Refinery Limited, Sui Southern Gas Company Limited,
PERAC and the Privatization Commission of Pakistan. He has also been on
the Board of Harvard Business School’s Global Alumni and served as
President for the year from 2006 to 2008. He has been on the Board of Atlas
Honda Limited since November 2000.
One vital aspect of Honda's motorcycle safety research has been careful
analysis of the key statistics concerning accidents. Data from Japan, the US
and Europe all indicate that frontal collisions account for over half of all
collisions. It also has been confirmed that many injuries result from the
rider's impact with vehicles or the road surface. In view of these facts,
Honda engineers sought to reduce the incidence and severity of injuries by
absorbing the energy of an impact and reducing the rider's forward velocity.
To achieve this objective, Honda decided to develop a motorcycle airbag. In

the event of a frontal collision, the airbag is designed to inflate and absorb
some of the rider's kinetic energy. As a result, the force of impact between
the rider and the vehicle or the road may be reduced, mitigating injuries.
Ceo Of Honda News
Auto Stock Roundup: Honda Picks New CEO, Tesla Tops Consumer Reports
Survey -…
Zacks via Yahoo! Finance,
2/26/2015
Honda (HMC) will have a new President and CEO from June, while Tesla's
(TSLA) Model S has retained its top position in this year's Consumer Reports'
Top 10 Picks. Read More
Honda to replace its CEO amid air bag crisis, sales drop

WFMJ Youngstown,
2/27/2015
(AP Photo/Shizuo Kambayashi). Honda Motor Co. newly appointed President

Takahiro Hachigo, center right, shakes hands with Takanobu Ito during a
press conference at the automaker's… Read More
Honda to replace its CEO
Coeur d'Alene Press,
2/25/2015
TOKYO - Honda Motor Co. - hurt by falling sales and embroiled in a crisis
over defective air bags - is replacing its CEO. Read More
Honda replacing CEO amid sales drop - Tue, 24 Feb 2015 PST
The Spokesman-Review,
2/24/2015
TOKYO – Honda Motor Co. – hurt by falling sales and embroiled in a crisis
over defective air bags – is replacing its CEO. The Japanese automaker said
Monday that ... Read More
Product Of Honda News

Herhold: Mike Honda nods off in Congress
The Milpitas Post,
3/3/2015
To quote Dave Barry, I am not making this up. By nodding off before the
camera, U.S. Rep. Mike Honda, a solid progressive vote and one of the
nicest men in Congress, might just have handed… Read More
Long-lost Padraig Harrington redeemed in Honda thriller
New York Post,
3/2/2015

PALM BEACH GARDENS, Fla. — Padraig Harrington has won three major
championships in his career, but Monday’s survival of a two-hole playoff to
capture the Honda Classic at PGA National... Read More
The Zacks Analyst Blog Highlights: Toyota Motor, Morgan Stanley and Honda
Motor…
Zacks via Yahoo! Finance,
3/2/2015
The Zacks Analyst Blog Highlights: Toyota Motor, Morgan Stanley and Honda
Motor Read More
Seven-Year Itched
Rotoworld via Yahoo! Sports,
3/2/2015
Padraig Harrington won for the first time in seven years with his playoff
victory at The Honda Classic at PGA National on Monday. Read More
Corporate February 21, 2006

Honda to Strengthen Structure of its R&D Operations
TOKYO, Japan, February 21, 2006 – Honda Motor Co., Ltd. announced
plans, effective April 1, 2006, to launch a new organizational
structure for Honda R&D Co., Ltd., a wholly owned subsidiary of
Honda responsible for research & development activities.
Due to recent technological advancements and continued business

expansion, the variety and complexity of technological components
and the number of vehicles under development at Honda R&D have
increased dramatically. The new structure will be launched both in
response to this situation and to prepare for further expansion of
business in the future. The new structure will enable each associate
to demonstrate a high level of initiative, with more clear definition of
roles and responsibilities and bold delegation of authority. Moreover,
the new structure is designed to achieve smoother communication to
help accelerate decision making within the organization. The key
elements of the new structure are as follows:

Outline of the New Structure:

1.Existing R&D centers including Asaka R&D Center, Wako R&D
Center, and Tochigi R&D Center, which are currently organized
based on geographical location, will be reorganized into five centers
based on specific functions. The names of the five centers will be
Motorcycle Development Center, Automobile Development Center,
Power Products Development Center, Aero Engine Development
Center, and Basic Technology Research Center.
2.Each center will have separate offices for planning, product
development, technology development and administration with
clearly defined roles.
3.Primary authority to make operational decisions, currently held by
the head of each center, will be delegated to the head of each office
within each center to achieve an autonomous operational structure
through which each office can make more decisions.
4.A flat and less-layered organizational structure will be employed to
ensure smooth and direct communications between the head of the
office and each associate.
5.The product development function of the Automobile Development
Center will be further separated between the Honda brand and
Acura brand.
This structural change is a part of Honda’s continuous effort to

strengthen the core characteristics that makes Honda unique, and its
purpose is to continue creating advanced and creative technologies
and products that are unique to Honda, which in turn will enable
Honda to continue to be a company that society wants to exist

Organisation Structure

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CONSUMER BEHAVIOUR TOWARDS HONDA COMPANY

“CONSUMER BEHAVIORTOWORDS HONDA COMPANY”

VIJAYANAGARA SRI KRISHNADEVARAYA UNIVERSITY

FOR THE PARTIAL FULFILLMENT OF THE DEGREE OF

BACHELOR OF BUSINESS MANAGEMENT

DEPTT. OF COMMERCE AND MANAGEMENT STUDIES

COLLEGE: SMT. S.S.A GOVT. FIRST. GRADE COLLEGE, BALLARI

Under the guidance of:

Smt. S.S.A. govt. first grade college, BALLARI

MIS. S. VEERAMANGALA MADAM (Asst .Professor) .

Mr. CHELUVADI MARESHA

Reg No: M1410003

S.S.A. GOVT. FIRST GRADE College,

I here by declare that this Project Report entitle “CONSUMER BEHAVIOUR

Date: Signature of the Student

Smt. S.S.A. govt. first grade college, BALLARI

This is to certify that the project report entitled “CONSUMER

Prof. MR.GOPAL M.COM.

SMT. S.S.A GOVT. FIRST. GRADE COLLEGE, BALLARI.

Smt. S.S.A. govt. first grade college, BALLARI

This is to certify that the project report entitled CONSUMER

MARESHA to the VIJAYANAGARA SRI KRISHMADEVARAYA University,

BALLARI in partial fulfillment for the award of Degree of

Bachelor of business management is a original record of

DEPARTMENT of COMMERCE AND MANAGEMENT STUDIES.

COLLEGE: SMT. S.S.A GOVT. FIRST. GRADE COLLEGE, BALLARI.

Prof.. MS. S. VERAMANGALA MBA (M.PHI.),

SMT. S.S.A GOVT. FIRST. GRADE COLLEGE, BALLARI

Smt. S.S.A. govt. first grade college, BALLARI

CO- ORDINATE CERTIFICATE

COMMERCE AND MANAGEMENT STUDIES,

SMT. S.S.A GOVT. FIRST. GRADE COLLEGE, BALLARI.

Smt. S.S.A. govt. first grade college, BALLARI

I am thankful to MIS. S. VEERAMANGALA MADAM (Asst .Professor) for being

My profound thanks to NAME, Director, COLLEGE NAME, who was

I express my sincere gratitude to HONDA COMPANY SUPERVISOR

I am grateful to my parents for their continuous support right from the

Reg. no. : M1410003

Smt. S.S.A. govt. first grade college, BALLARI

CONSUMER DATA SURVEY ANALYSIS

SUGGESTIONS AND CONCLUSSIONS

Smt. S.S.A. govt. first grade college, BALLARI

use machinery, portable generators, outboard motors, and all-terrain vehicles.

SWOT ANALYSIS OF HONDA

Smt. S.S.A. govt. first grade college, BALLARI

-Benz and BMW, according to Interbrand.

facilities and decrease Honda’s production volumes.

VISION & MISSION OF HONDA

Market leader in the motorcycle industry, emerging as a global competitive

A dynamic growth oriented company through market leadership, excellence

Smt. S.S.A. govt. first grade college, BALLARI

 Commitment to provide high quality motorcycles & parts

PROFILE OF BOARD OF DIRECTORS

Mr. Shirazi is a Law graduate (LLB) with BA (Hons) and JD (Diploma in

Smt. S.S.A. govt. first grade college, BALLARI

Mr. Sanaullah Qureshi qualified as a Chartered Accountant from Scotland

Jawaid Iqbal Ahmed

Smt. S.S.A. govt. first grade college, BALLARI

Mr. Kazuhisa Hirota is General Manager of Finance Division of Honda Motor

Mr. Hiromitsu Takasaki has served at Planning Division of Honda Motor

Japan before being appointed to Pakistan. He was stationed in U.S.A. for

is the former CEO of Atlas Investment Bank Limited. At present, he is

To achieve this objective, Honda decided to develop a motorcycle airbag. In