A Study On Consumer Prefrence Towards Honda Activa
A Study On Consumer Prefrence Towards Honda Activa
A Study On Consumer Prefrence Towards Honda Activa
A Project Report
On
Submitted for partial fulfillment of the requirement for the award of the degree
Of
BY
Summer training Project Report is the one of the important part of BBA
program, which has helped me to gain a lot of experience about practical
application of my theoretical concepts, which will be beneficial in my
succeeding career.
RAHUL GUPTA
1510101155
TABLE OF CONTENTS
8.
APPENDICES
9.
LIST OF TABLES
Table No. 1
Table No. 2
Table No. 3
Table No. 4
Table No. 5
Table No. 6
Table No. 7
Table No. 8
Table No. 9
Table No. 10
Table No. 11
Table No. 12
Table No. 13
Table No. 14
Table No. 15
Table No. 16
Table No. 17
Table No. 18
Table No. 19
Table No. 20
LIST OF FIGURES
The Honda Activa is a motor scooter made by Honda Motorcycle and Scooter India It
was launched in India in 2000. Production in Mexico began in 2004. It is a 109/125 cc,
7 bhp (5.2 kW) scooter. The vehicle has the option of kick- and self-start includes the
puncture-resistant "tuff-up" tyre and tube combination.
Honda launched a new version of the Activa in the Indian market launched on 2009-05-
08 and is available to purchase. With new 109 cc engine. Power output was bumped up
to 8 bhp (6.0 kW) and new features like combi-brake and key shutter were introduced.
Fuel economy was claimed to be improved by 15%.
In June 2013, Honda introduced Activa-i, a sleek and stylish variant of Activa. The new
model shared most of the features with Activa, the primary difference being only in the
body style.
In April 2014, Honda launched an upgraded model of Activa with a 125cc engine and
rebranded the model as Activa 125. Currently, both Activa-i and Activa 125 are sold in
India.
In April, 2014, The Economic Times reported the Honda Activa became the best selling
two wheeler in India (if not the world) out running the Hero Splendor. During the month
of September 2013, 141,996 Honda Activa scooters were sold;] nearly equal to Honda's
entire annual sales in North America.
In India, Honda launched Activa i, a cheaper, lighter and stylish version of Activa. It was
launched in December, 2013. It is powered by 110 CC engine and weighs 103 kg. On
September 22, 2015, Honda announced that they have sold over 1 million Activas in five
months in the Indian market, from April to August.
ABOUT THE COMPANY
Honda has been the world's largest motorcycle manufacturer since 1959, as well as the
world's largest manufacturer of internal combustion engines measured by volume,
producing more than 14 million internal combustion engines each year. Honda surpassed
Nissan in 2001 to become
the second-largest Japanese automobile manufacturer. As of August 2008, Honda
surpassed Chrysler as the fourth largest automobile manufacturer in the United States.
Honda is the sixth largest automobile manufacturer in the world.
Honda was the first Japanese automobile manufacturer to release adedicated luxury
brand, Acura, in 1986. Aside from their core automobile and motorcycle businesses,
Honda also manufactures garden equipment, marine engines, personal watercraft and
power generators, amongst others. Since 1986, Honda has been involved with artificial
intelligence/robotics research and released their ASIM Orobot in 2000. They have also
ventured into aerospace with the establishment of GE Honda Aero Engines in 2004 and
the Honda HA-420 HondaJet, scheduled to be released in 2011. Honda spends about 5%
of its revenues into R&D.
OVERVIEW OF WORLD MARKET
Honda is the largest motorcycle manufacturer in Japan and has been since it started
production in 1955. At its peak in 1982, Honda manufactured almost three million
motorcycles annually. By 2006 this figure had reduced to around 550,000 but was still
higher than its three do mestic competitors.
During the 1960s, when it was a small manufacturer, Honda broke out of the Japanese
motorcycle market and began exporting to the U.S. Working with the advertising agency
Grey Advertising, Honda created an innovative marketing campaign, using the slogan
"You meet the nicest people on a Honda." In contrast to the prevailing negative
stereotypes of motorcyclists in America as tough, antisocial rebels, this campaign
suggested that Honda motorcycles were made for the everyman. The campaign was
hugely successful; the ads ran for three years, and by the end of 1963 alone, Honda had
sold 90,000 motorcycles.
Taking Honda's story as an archetype of the smaller manufacturer entering a new market
already occupied by highly dominant competitors, the story of their market entry, and
their subsequent huge success in the U.S. and around the world, has been the subject of
some academic controversy. Competing explanations have been advanced to explain
Honda's strategy and
the reasons for their success.
The first of these explanations was put forward when, in 1975, Boston Consulting Group
(BCG) was commissioned by the UK government to write a report explaining why and
how the British motorcycle industry had been outcompeted by its Japanese competitors.
The report concluded that theJapanese firms, including Honda, had sought a very high
scale of production (they had made a large number of motorbikes) in order to benefit
from economies of scale and learning curve effects. It blamed the decline of the British
motorcycle industry on the failure of British managers to invest enough in their
businesses to profit from economies of scale of scope.
BOARD OF DIRECTORS:
Director
Motoki ozaki
Non-executive director
Takano
OVERVIEW OF INDIAN MARKET
for the Indian automobile market. It has introduced the vehicle in three trim levels with
both petrol and diesel engine options.
Honda Motor Corp Ltd. India Limited has recently introduced its first ever MPV model,
Mobile At the same time, it also rolled out the RS variant that is available with a diesel
engine option only. However, it has stated that the deliveries of this sportier version will
begin from the coming month. Now, it has alszo introduced V Option and RS Option
variants in its series with a few additional features.
These aspects include Audio Video Navigation system featuring 15.7cm touch screen
display, rear parking camera and woody interior panels. The petrol variants are powered
by a 1.5- litre, i-VTEC engine, which is capable of producing 118bhp in combination
with peak torque of 145Nm. On the other hand, the diesel version is equipped with a fuel
efficient 1.5-litre, i-DTEC motor that belts out a peak power of 98.6bhp, while generating
200N.
This motor can produce an impressive mileage of 24.2 Kmpl. This vehicle is also blessed
with crucial safety aspects like airbags for front passengers, pedestrian injury mitigation
technology and ACE (Advanced Compatibility Engineering). The Activa maker is
offering the anti -lock braking system with electronic brake force distribution as standard
for all the diesel
Honda Activa
Honda Dio
Next in line was the Honda Dio, which was introduced in 2001. Dio, too, like Activa,
rode the wave of exponential preference for lightweight scooters to its popularity, and is
India's first moto scooter. As its predecessor, it was equipped with an air-cooled, four-
stroke, single cylinder engine. Its USP over Activa included a wedge design which
offered the Dio a slimmer, more aerodynamic look. This innovative sleek design made it
easier to navigate in traffic. The long front suspension of the Dio offered it a long stroke.
Coming fitted with a highly efficient shock absorption system afforded Dio riders a
comfortable and smooth ride.
Honda Eterno
Then came Honda Eterno, India's first 150 cc geared scooter. It had the same air-cooled,
four-stroke, single cylinder engine as its predecessors, but where Activa and Dio had a
capacity of a little more than 100 cc, this beauty came loaded with 150 cc capacity. Built
for performance, Eterno was lightweight, it was sturdy and it was fuel efficient. It could
accelerate fast, as well as offer a smooth ride on any kind of road. The entire design of
this class of scooters meant it was built keeping in mind the needs of an average India.
Not too heavy on style, this scooter made the perfect family vehicle with its wide and flat
foot board. Built with wheel-side design (packing the engine and drive system into a
single unit) making the engine compact and light, Eterno outshone its predecessors in the
category of lightweight scooters.
Honda Activa-i
In 2013, Honda launched its first personal compact scooter, Activa-I, before which
Honda had launched scooters only in the categories of moto scooters and family scooters.
Designed entirely to have a unisex appeal, the Activa-I is lightweight, compact, and easy
to handle. It is fitted with an innovative combi-brake system, that is purported to reduce
breaking distance by 24%. Yet again, this model comes fitted with the air-cooled four-
stroke engine. With a 109 cc engine, Activa-I can be truly said to be back to the personal
compact lightweight category. The wide front panel marries rider protection with good
aesthetics while the specially designed ergonomic grab rail ensures that rider can put the
scooter on stand with less force. Additionally, the style and looks of Activa-I have been
tweaked to give it a fresher, more appealing finish. It is quite visible that every effort has
been put into making this a unisex scooter. Even the colour range offered is rather peppy
and fresh – beige metallic, pearl sunbeam white, alpha red metallic and purple metallic.
All this USP combined, and with its marvelously great looks, Activa-I is sure to give its
competitors a run for their money.
ABOUT MAJOR COMPANIES IN THE INDUSTRY
The Two Wheelers Manufacturers in India, at present are doing good business. The
growth of the two wheelers sector was noteworthy in the past few years. In the period
2016 - 17 the total number of the two wheelers and three wheelers produced in India,
were around 9 million. The sales pertaining to two wheelers in the period 2016 - 17 was
7,857,548, which was a growth of
11.41 %. In the same period the motorcycle exports from India was 321,321 units.
The two wheeler industry has been going steadily over the years all over the world. India
is not an exception for that. Today India is the second largest manufactures of two
wheelers in the world. It stands next only to Japan and China in terms of number of two
wheelers produced and sold. Until 1990 geared scooters dominated the two wheelers
market so much so that
their sales equalled the combined sales of Motor cycles and Mopeds. Today the customer
preferences have shifted from geared scooters to motorcycles and also to an extent to the
premium end scooters. With rising fuel cost and more recently stringent emission norms
imposed by the government, there is a distinct consumer preference for high efficiency.
The
Honda story is the story of one man, Soichiro Honda, and his unparalleled achievement
of bringing motor cycles to the masses. Soichiro Honda was a racer, a businessman, and a
manufacturer.
But most of all he was a dreamer. He dreamed of a better way of making piston rings,
founded a small company, and began production. He dreamed of giving people
everywhere an economical form of transportation, and began producing small
motorcycles, including one built in 1949 called the D-Type Dream. He also loved racing
too. So his company built bigger and faster
machines, two, four, five and six-cylinder race bikes and won the Isle of Man. Honda
Motor Company is by far the world's biggest motorcycle maker. Honda's first motorcycle
was born out of necessity in immediate post World War II Japan, where public
transportation was desperately overcrowded and gasoline severely restricted. Unique
practices create unique organizations.
LITERATURE REVIEW
REVIEW OF LITERATURE
A customer is a person who makes use of or receives the products or services of an
individual or organization. The word historically derives from “custom” meaning “habit”.
A customer was someone who frequented a particular shop, who made it a habit to
purchase goods of the sort the shop sold their rather than elsewhere, and with whom the
shopkeeper had to maintain a relationship to keep his or her “custom” meaning expected
purchase in the future. The shopkeeper remembered the size and preferences of his or her
customer. 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. Satisfaction is a function of perceived performance and 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 the expectations, the customer is highly satisfied or delighted. Customer’s
expectations are influenced by their past buying experience; friend’s and associate advice
and marketers’ competitors’ information and promises.
Some of today’s most successful companies are raising expectations and delivering
performances to match. These companies are aiming for TCS-Total Customer
Satisfaction Customer satisfaction, a business term, is a measure of how products and
services supplied by a company meet or surpass customer satisfaction. Customer
satisfaction comes after the purchase of product whether the buyer is satisfied after
purchase depends on the offers, performance in relation to the buyer expectations.
Customer satisfaction is an abstract concept and the actual manifestation of the state of
satisfaction will vary from person to person and product/services
to product/services.
Customer satisfaction seems to be an uncomplicated concept. However, its definition is
not a static one and has evolved overtime. Early Endeavour’s to understand customer’s
post purchase response was directed on the conception of cognitive dissonance. Howard
and Sheaths have defined customer satisfaction as, “an outcome the buyer’s cognitive
state of being adequately or inadequately rewarded for the sacrifices he has undergone”
According to Kotler, “satisfaction is a person’s feeling of pleasure or disappointment
resulting from comparing a product. It is a continuous process; which doesn’t begin or
end to purchase.”
For customer centred companies, customer satisfaction is both a goal and a marketing
tool. The success of a business depends upon customer satisfaction. Only through
customer satisfaction business begins to realize the objective of making profit. Many
companies are aiming for high satisfaction because customers who are just satisfied still
find it easy to switch a better offer comes along. Those who are highly satisfied are much
less ready to switch. High satisfaction or delight creates an emotional affinity with the
brand, not just a rational preference. The result is higher customer loyalty. As a country is
vast geographically the customers of India are scattered over a vast territory. A customer
creates business should seek the customers. There should perfect knowledge about the
satisfactory level, behavioral pattern of the customers. Customer is the GOD, satisfying
his wants can be a destiny for his existence for any product introduced in the market.
Customer satisfaction is extremely important to any business because no business can
survive if it doesn’t retain its customers. It is one of the most important factors in
determining whether customers will continue to do business with the firm. If the
customers leave the firm will no longer be able to make profit and stay in business. So
customer satisfaction is vital to any business. Today companies are giving more
importance to customer satisfaction due to following reasons.
Director and Board member (marketing and sales), Honda Motor India (HMIL) “No
company in automobile sector can fight competition on price. Companies need to have
the right product, distribution, CRM and after sales service network to grow. Biswajit
Mahanty and Virupaxi Bagodi (2006)
Honda Motor wants to be number one in the Indian market and the company wanted 30%
of Honda’s global sales to come from Indian operations by 2020. HMSI have had issues
related to production in the past with most of its models having the longest waiting period
in the country, this reduced in Honda’s penetration in the rural market, which is less than
a third of Hero
Moto Corp.
Biswajit Mahanty and Virupaxi Bagodi (2007)
More than 55 million two-wheelers are moving on Indian roads. Accordingly, two-
wheeler service sector should have generated revenue amounting to INR 100,000 million
per year, but in reality, this has not been realised in the organised service sector, the
Indian two-wheeler service industry has not considered servicing as a line of business and
providing conveniently reliable
services is most important in two-wheeler services in India to capture the market.
Caterpillar has become a leading firm by maximizing the total customer value with the
help of effective CRM , best after sales service in the industry and better trained dealer.
This allows the firm to command a premium price of 10% to 20% higher than
competitors such as Volvo, Komatsu etc.
GM-Marketing, Bajaj Auto, has mentioned that Bajaj Auto Limited is currently trying to
move the industry from a commuter to a biker mindset and at present the focus of the
company is on keeping the sub brands and the mother brand different and the main
motive behind establishing individual brand is to create differentiation which would help
Bajaj auto, as an organization to develop relationship easily with its customers.
Oyama (2012)
Honda Motor wants to be number one in the Indian market and the company wanted 30%
of Honda’s global sales to come from Indian operations by 2020. HMSI have had issues
related to production in the past with most of its models having the longest waiting period
in the country, this reduced in Honda’s penetration in the rural market, which is less than
a third of Hero
Moto Corp.
Harley – Davidson dealers ranging from the CEO to the sales staff, maintain personalized
relationships with customers through face to face and social media contact. Knowing
customers as individuals and conducting ongoing research to keep up with their changing
expectations and experiences which helps Harley – Davidson to define their customers’
needs better.
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
The term research is also used to describe an entire collection of information about a
in the investigation of matter. The primary purpose for applied research is discovering,
interpreting and the development of methods and systems for the advancement of human
knowledge on a wide variety of scientific matters of our world and the universe.
Research can use the scientific method, but need not to do so. Scientific research relies
provides scientific information and theories for the explanation of the nature and the
properties of the world around us. It makes practical applications possible scientific
groups, including many companies scientific research can be sub divided into different
It is the science, which tells the methods for doing research, it mainly consist for
1. Research design.
3. Sampling plan.
hypothesis to cover all possible outcomes . The main emphasis in this research is not
only to gain familiarly with the phenomena , but also the discovery of idea and
needed, its analysis and findings as per research objectives. It essentially follows the
exploratory research.
DATA COLLECTION METHOD
1.-Primary data: Data used in research originally obtained through the direct efforts of
the researcher through surveys, interviews and direct observation. These are the latest
data and are hence reliable. Data which are directly collected by the researcher from the
fiel .
2.- Secondary Data : It is the data which has already been collected by someone else and
has been passed through the statistical process and which is applicable or usable in the
study researcher has presently undertaken .
Considering the importance of objectives of study and also the importance of decision
The main purpose of this survey was to get information about consumer perception
The relevant data and information for the survey was collected through both primaty as
well as secondary source . The primary data was collected directly from sample business
man customer . Secondary source include books , magazines , as well reports available in
ended and open ended questionnaire , mainly of multiple types and scaling techniques for
some questions where its necessary besides there are sufficient number of open ended
Table 1
Figure 1
36%
Male
Female
64%
Data Interpretation
Out of 100%(80),64%(respondent are male),36%(respondent are female)
What is your age
Table 2
Column1 Column2
18-20 6
20-30 30
30-50 40
Senior citizen 4
Figure 2
Column2
Age *
5% 7%
18-20
20-30
38%
50%
30-50
Senior citizen
Data Interpretation
Out of 100%(80)% ), 7%( respondents are age 18-20, 38% respondent are age 20-30,
50% respondents are age 30-50, and 5% respondents are senior citizen.
What is your occupation?
Table 3
No. of
Column1 respondents
Occupation *
Businessman 28
Professional 5
Student 32
Employee 15
Figure 3
Column2
19%
Occupation *
35%
Businessman
Professional
Student
40% 6% Employee
Data Interpretation
Out of 100%(80), 40%( respondents are Student, 7% respondent are Business, 8%
respondents are Employee and 6% respondents are Other.
1. Do you have Honda ACTIVA currently?
Table 4
Figure 4
Column2
13%
Yes
No, please go to
question 12
87%
Data Interpretation
Table 5
Column1 No. of respondents
Price 2
Advertisement 15
Mileage 36
Friends 13
Other 14
Figure 5
Chart Title
2%
18%
19% Price
Advertisement
16% Mileage
Friends
Other
45%
Data Interpretation
Out of 100%(80),3%( respondents are price), 19%( respondent are
advertisement),45%(respondent are mileage),16%(respondent are friends)and
17%(respondent are othe
How will you rate the body style, design and look of active?
Table 6
No. of
Column1 respondents
Excellent 32
Good 36
Average 12
Poor 0
Figure 6
Column2
0%
15%
Excellent
40%
Good
Average
Poor
45%
Data Interpretation
Table 7
Column1 No. of respondents
Yes 66
No 4
Figure 7
Column2
6%
Yes
No
94%
Data Interpretation
Table 8.1
Figure 8.1
6%
Column2
23%
14%
Excellent
Good
57%
Average
Poor
/
Data Interpretation
Column2
6%
14% 23%
Excellent
Good
Average
Poor
57%
Data Interpretation
Table 8.3
Figure 8.3
Column2
6%
14% 23%
Excellent
Good
Average
Poor
57%
Data Interpretation
Out of 100%(70),23%( respondents are excellent), 57%( respondent are
good),14%(respondent are average),6%(respondent are poor)
7. Did the showroom people explain you about features & price
of Activa
Table 9
Figure 9
Column2
0%
Yes
No
100%
Data Interpretation
Table 10
No. of
Column1 respondents
Showroom 51
Retail store 19
Figure 10
Column2
27%
Showroom
Retail store
73%
Data Interpretation
Out of 100%(70),73%( respondents are retail store), 00%( respondent are Showroom),
9. Your experience about after sale services?
Table 11
Chart Title
5%
17%
33% Excellent
Good
Average
Bad
45%
Data Interpretation
Table 11.1
No. of
Column1 respondents
Yes 61
No 9
Figure 11.1
Column2
13%
Yes
No
87%
Table 11.2
No. of
Column1 respondents
Yes 61
No 9
Figure 11.2
Column2
13%
Yes
No
87%
Data Interpretation
Table 12
% of respondents
6%
34%
Good
Satisfied
Not satisfied
60%
Data Interpretation
The main reason behind preferring Honda activa is 45% respondents its product
mileage
45% Respondent use Honda Activa are exallent with its body style; design and
look of activa .
94% respondents with satisfied the pikup and performance of the Honda activa
36% respondents use Honda active are good in after sale service and 14%
respondents in Bad for after sales service
The interior of Scotty should be of different colors not only black and grey
RESEARCH LIMITATIONS
Gender *
o Male
o Female
Occupation *
o Businessman
o Professional
o Student
o Employee
Age *
o 18-20
o 20-30
o 30-50
o Senior citizen
3. How will you rate the body style, design and look of activa?
o Excellent
o Good
o Average
o Poor
4. Are you satisfied with the pickup & performance of the Activa?
o Yes
o No
5. How do you feel about safety features, storage space and breaking
system?
o Excellent
o Good
o Average
o Poor
6. Have you any other problem with the scooty, if yes mention it?
o Your answer
7. Did the showroom people explain you about features & price of Activa
o Yes
o No
8. What do you prefer for repairing purpose and purchasing spare parts of
the Activa?
o Showroom
o Retail store
10. Current price, features and performance of activa are able to compete
with other scotty brand?
o Yes
o No
. If you have not purchased or taken trail of activa , please mention the
reasons?
o Your answer
13. Please share your experience, feedback and any suggestion about
active?
Your answer