FIELD STUDY REPORT

On

“A Study on Marketing Strategy of Honda in

Lucknow City”

Towards partial fulfillment of

Bachelor of Business Administration (Professional)
School of Management, Babu Banarasi Das University, Lucknow

Submitted by
Laxmi Paswan
BBA 3rd Sem
Roll No- 1170671177

Session 2018-2019

School of Management

Babu Banarasi Das University

Lucknow
 DECLARATION

I hereby declare that the project work entitled of “A Study on Marketing strategy of

Honda in Lucknow City” submitted to the BABU BANARASI DAS UNIVERSITY, is a

record of an original work done by me under the guidance of Ms. Richa Mishra (College

Guide) and this field work is submitted in the partial fulfillment of BBA.

Laxmi Paswan

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 ACKNOWLEDGEMENT

No field work ever reflects the efforts of a single individual. The report owes its existence

to the constant support and guidance of a number of people. I am grateful to all of them.

I would like to thank all the respondents for giving their valuable time and providing

useful insight into finer aspects of retailing and the latest trends.

I am also grateful to all those who have either directly or indirectly contributed towards

the completion of the project, for their support and encouragement.

Laxmi Paswan

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 PREFACE

I have put my sincere efforts to accomplish my objectives within the stipulated time.

Despite all limitations, obstructs, hurdles and hindrances, I have toiled and worked to my

optimum potential to achieve desired goals. I am presenting this hand carved effort. I

tried my level best to conduct a research to gain a thorough knowledge about the project

on topic, “A Study on Marketing strategy of Honda in Lucknow City”. I put the best of

my efforts and have also tried to be justice with available. If anywhere something is

found unacceptable or unnecessary to the theme; you are welcomed with your valuable

suggestions.

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 TABLE OF CONTENT

Sr. No. Particular Page no.

1. Introduction

2. Company profile

3. Objectives of the study

4. Research methodology

5. Data Analysis and interpretations

6. Findings

7. Suggestions

8. Conclusions

9. Bibliography

10. Appendix

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 INTRODUCTION

Marketing Strategy

 Trade Shows: Wheelie Deals will be visible at the two major industry trade shows.

75% of the retail bicycle shops attend at least one trade show a year. The shows

provide retailers an opportunity to view upcoming products and chat

with representatives from the companies as well place pre-season orders.

 Advertisements: Wheelie Deals will be advertising in Bicycle Retailer, THE

industry magazine. Ninety-eight percent of the bicycle shops in America receive a

copy of Bicycle Retailer making the advertising opportunities especially valuable.

 Website: Wheelie Deals will develop a website that includes a current catalog of

their offerings. This will be the most up-to-date source of product information and

availability. All advertising activities and trade show presence will highlight the

website as an indispensable source of information.

Mission

Wheelie Deals' mission is to create the largest selection of closeout bicycle parts.

We exist to attract and maintain customers. When we adhere to this maxim,

everything else will fall into place. Our services will exceed the expectations of our

customers.

Marketing Objectives

 Increase repeat customers by 6% per quarter.

 Decrease the cost of customer acquisition by 5% per year.

 Create general awareness of Wheelie Deals within the retail bicycle industry.

 Increase the catalog of products by 15% a year by skillfully communicating to the

manufacturers the success of this business model.

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 Financial Objectives

 A double digit growth rate for the first five years.

 An increase of the profit margin by 3% a year.

 Profitability within one year.

Target Markets

The two segments that Wheelie Deals will be targeting are:

 Independent Bicycle Shops: The large majority of bicycle retailers are

independently owned sole proprietorships. They are usually owned by one person

and range from three to ten employees, depending on the season.

 Chain Bicycle Shops: Although chains are not the predominant business form,

most large cities (over 200,000 people) have at least one chain serving the

community. Sometimes the chains are franchises with different owners, other times

they are same owners with multiple stores.

The majority of sales will be to the independent bicycle shops. The reason for this

is most of the chains have a very uniformed product offering that does not deviate

for specials and closeouts. The chains tend to value consistency of product

offerings at the expense of increased profit margins on special items.

Positioning

Wheelie Deals will position themselves as the premier bicycle wholesaler of

closeouts, specials and other deals, providing retailers with increased margins.

Wheelie Deals will leverage their competitive edge to ensure the proper

positioning.

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 COMPANY PROFILE

Honda Motorcycle & Scooter India, Private Limited

Industry Automotive

Founded 1999

Headquarters Gurgaon,Haryana, India

Key people Minoru Kato, President and CEO

Products Motorcycles, scooters , Sports Bikes

Parent Honda Motor Company, Limited

Website HMSI

Honda is the world’s largest manufacturer of two Wheelers , Recognized the world

over as the symbol of Honda two wheelers , the ‘Wings’ arrived in India as Honda

Motorcycle and Scooter India Pvt. Ltd. (HMSI ), a 100% subsidiary of Honda

Motor Company Ltd., Japan ,in 1999. Since its establishment in 1999 at Manesar,

District Gurgaon, Haryana, Honda has lived up to its reputation of offering the

highest quality at the most reasonable price. Despite being one of the youngest

players in the Indian two-wheelers market, Honda has become the largest two

wheeler manufacturer as well as the second largest two-wheelers company in India.

Honda is also the fastest growing company in country today. With a host of

facilities under its wings, the first factory of HMSI is spread over 52 acres

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including a covered area of about 100,000 sq. meters in Manesar, District Gurgaon,

Haryana with an annual capacity of 1.65 million units. To meet the ever increasing

demands of the products, Honda has started operations of its second plant in

Tapukara, District Alwar, Rajasthan. Expanding to full operations , Honda

production capacity has jumped 30% year on year to 2.8 million per annum in FY

12- 13.

Honda’s third plant at Narsapura Industrial Area near Bengaluru, Karnataka is

equipped to manufacture 1.2 million units. Utilizing production technologies

refined at Manesar & Tapukara plants as starting point, the 3rd plant is employed

with state-of-the-art manufacturing, automation and environment friendly

technologies to deliver quality products.

On February 17 2016, Honda enograted the “World’s largest only scooter plant" at

Vithalapur Gujarat with annual capacity of 1.2 million units. The new plant will

employ approximately 3000 people within first 2 years of commercial production.

The joint venture between India's Honda Group and Honda Motor

Company, Japan has not only created the world's single largest two wheeler

company but also one of the most successful joint ventures worldwide.

During the 80s, Honda became the first company in India to prove that it

was possible to drive a vehicle without polluting the roads. The company

introduced new generation motorcycles that set industry benchmarks for fuel thrift

and low emission. A legendary 'Fill it - Shut it - Forget it' campaign captured the

imagination of commuters across India, and Honda sold millions of bikes purely on

the commitment of increased mileage

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 OBJECTIVES OF THIS STUDY

1. To study the sales and promotional strategy of Honda Two wheelers in Rural and

Urban Areas of Lucknow City.

2. To know the important reason the respondents give to each factor for purchasing

Bikes in Rural and Urban Areas of Lucknow City.

3. To study the satisfaction level of customers towards Honda Bikes in Rural and

Urban Areas of Lucknow City

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 RESEARCH METHODOLOGY

Research methodology is a way to systematically represent research on any

problem. It tends taken by the researcher in studying the research problem along

with the logic behind them.

Research Design– Descriptive

Descriptive research is used to describe characteristics of a population or

phenomenon being studied. The research undertaken was a descriptive research as

it was concerned with specific predictions, with narration of facts.

Data source – Primary Data

Research Approach – Survey Method

Research Instrument – Questionnaire

Questionnaire type – close ended

Types of questions – Close-ended

Sampling Unit – Individual (Customer of Honda )

Sampling Frame – Lucknow

Sampling Procedure – Simple Random sampling to select 5 stores and

Convenience for select customer/shoppers.

Sample size – 100 customers

Contact Method – Personal

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Mode of Collecting Data – The respondents were chosen randomly and requested

to grant interviews. The questions were then asked in predetermined sequence.

Data Processing –

(i) A number of tables were prepared to bring out the main characteristics of the

collected data.

(ii) Inferences wiredrawn from the collected data.

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 LIMITATIONS OF STUDY
The project has been successfully completed with certain inherent limitations,
which are as follows:

a) In this study it is not possible to collect the opinion of all the customers

owing to personal constraints. So the assumptions are drawn on the basis

of the information given by the respondents.

b) The study needs to be completed within a specified time of one month

and in certain restricted areas. So the findings cannot be generalized for

the company as a whole.

c) This study covers only a limited Honda sector. So this study will not be

applicable for those areas.

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 DATA ANALYSIS & INTERPRETATION
Ques: 1

BRAND AWARENESS

Brand No. of Respondent %

Honda 100 100%

Hero 100 100%

Bajaj 95 95%

TVS 92 92%

Suzuki 85 85%

Other 90 90%

100 100
100
95
95 92
90
90
85
85

80

75
Honda Hero Bajaj TVS Suzuki Other

No. of Respondent

Interpretation:

Brand awareness is an important factor now days. Honda and Hero have a 100%

brand awareness which is become competitive advantage for them. Other Bike

manufacturer has slight less brand awareness which they can increase by

promotional activities and quality service.

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Ques: 2

Objective: To Know Future Purchaser of Honda Motorcycles.

Detail No. of Respondents Percentage

Yes 65 65%

No 45 45%

Total 100 100%

Percentage of Consumers Who want

to purchase Honda Bikes.

45%
65%

Yes No

Interpretation:

65% of respondents want to purchase Honda Bikes in future. It means Honda has a

good future aspects and can sell more bikes than competitors mainly Hero. 45% of

respondents don’t want to Honda Bikes, and they prefer other bikes. Honda can

attract those customers by providing them other benefits.

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Ques: 3

Objective: To know the media by which consumer come to know about bikes.

Media Preferred by Respondents

Media No. of Respondents %

News Paper 19 19%

Hoarding 6 6%

Magazine 3 3%

Television 22 22%

Showroom Banner 7 7%

On Road 18 18%

Friend/Relative 25 25%

Total 100 100%

Percentage of Media By which people come

to know about bikes
Friend/Relati
ve
25% News
Paper
19% Hoarding
6%
On Road Magazine
18% Television 3%
22%
Showroom
Banner
7%

Interpretation:

Most important media by which consumers come to know about Bikes are

television and News Papers with 22% and 19% respectively. They are most

effective source to advertise and promote new and existing models of bikes for

Honda and other Bike Manufacturer.

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Que: 4

Objective: To aware about the time which customer uses to purchase Bike.

Time No. of Respondents %

On Festival 18 18%

Get Promotion 11 11%

Bike Required 41 41%

On Birthday 6 6%

When you start job 16 16%

When you go married 8 8%

Total 100 100%

Time of Purchase
45% 41%
40%
35%
30%
25%
20% 18%
16%
15% 11%
10% 8%
6%
5%
0%
On Festival Get Bike On Birthday When you When you go
Promotion Required start job married
Time

Interpretation:

Most people’s purchase bikes when they have needed to purchase Bike. Many

people purchase bikes when they start job (16%) or get promotion in job (11%). On

festival also many consumer purchase bikes to take advantages of promotional

offers.

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Ques: 5

Objective: To know that who affects the most while taking the purchase decision.

Detail No of Respondents Percentage

Family Member 30 30%

Friends 25 25%

Relatives 15 15%

Show Room/ Dealer 10 10%

Past Users 20 20%

Total 100 100%

Peoples who affect the consumer while

purchasing Bike

Past Users,
20% Family
Show Room/ Member, 30%
Dealer, 10%

Relatives, 15%
Friends, 25%

Interpretation:

In purchasing decisions many people’s take part especially in the cases of costly

and durable product like Bike. Many people affect the consumers’ decision of

purchase. In those family members (30%), friends (25%), Past Users (20%),

Dealers (10%), and relatives (15%) affect the consumers’ decision.

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Ques: 6

Objective: To aware about the effect of promotional scheme on consumer.

Affect by Incentives No. of Respondents Percentage

Yes 85 85%

No 15 15%

Total 100 100%

Percentage of consumer Affect by

Promotinal Schemes

No
15%

Yes
85%

Interpretation:

As per above chart, consumers are purchases bikes when they get promotion

incentives for purchasing Bikes. 85% of consumers affect by the promotional

schemes and incentives and purchase bike when they get more incentives. 15% of

consumers are not wait for incentive scheme and make purchase of Bike without

any incentive expectation.

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Que: 7

Objective: To aware about the purchasing criteria for purchasing Honda Bike.

Criteria No. of Respondents Percentage

Prices 14 14%

Average 23 23%

Pickup 18 18%

Design 9 9%

Company image 17 17%

Maintenance 12 12%

CC of Engine 7 7%

Total 100 100%

Percentage of criteria which is considered

by consumer while purchse of bike
25% 23%
20% 18% 17%
14%
15% 12%
9%
10% 7%
5%
0%

Criterias

Interpretation:

While purchasing bike, consumers considers a number of criteria’s such as price,

average, company image, maintenance cost, etc. Average is most important criteria

for purchase bike with 23%, after that comes company image (17%), Pick up (18%)

and price (14%).

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Que: 8

Objective: To know the reason for purchasing Honda Bike.

Reasons No. of Respondents Percentage

Good looks/ stylish 13 13%

Reasonable price 26 26%

Low maintenance cost 11 11%

Fuel efficiency 19 19%

Auto Start 15 15%

Engine capacity 9 9%

Pick up 7 7%

Total 100 100%

Consumers Reasons for selecting particular Honda Bike

Engine Pick up Good looks/

capacity 7% stylish
9% 13%

Auto Start
Reasonable
15%
price
26%
Low
maintenance
Fuel efficiency cost
19% 11%

Interpretation:

As above mentioned consumer looks for many things before purchasing Bike. 26%

of consumer looks for reasonable price bike, while 19% of consumer looks for fuel

efficient bike. 15% want Auto start bike and !3% want stylish bike. 11% have low

maintenance cost is important whereas 9% shows engine capacity and 7% shows

pick up of Bike.

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 FINDINGS

The old prophecy that once a customer is a customer has become a myth in the

present day competitive world. Brand image is no longer works a magic with the

consumer. So to hold the customer to the brand and attract new consumers the

company must produce products that are efficient and competent along with its

marketing activities that help in sales of the product.

After analyzing the response of the consumer interviewing through questionnaire

and observation the following were found in the study.

1. Honda motor cycles were the market leader in the Two Wheeler segment. But they

are losing their grip in the market. Even the 48% Honda customers said that if they

get a second chance they would prefer Hero.

2. The Brand Name of Honda is still there in the market and in the minds of the

customer.

3. There are only a few women Honda customers and they own Honda Pleasure.

4. Now days the main Honda customers are students between 18-25 years of age and

they like the bike because of its mileage.

5. Advertisements of Honda bikes are very effective.

6. Majority of the customers got the opportunity of test ride and they are satisfied with

the product briefing by the Honda sales executive.

7. The most demanded Honda Brands are Honda Shine and Activa. Major part of the

users of this brand is employees next are students.

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8. Most of the Honda customers have satisfied with the after sale service and servicing

of bike.

9. From analysis and interpretation it is found that Honda is mainly chosen for its

mileage performance and brand image.

10. Majority of the customers have satisfied with the performance of Honda.

11. Majority of the customers were aware of Honda through T.V. & newspapers

advertisement. Other than this their friends & Relatives also place an important role

in influencing the customer

12. And in the case of servicing and repairing the bike most of them prefer Service

Centres Majority of customers get their vehicle service a Authorized service units

and authorized dealers and very few services on to local services centres.

13. The most important factor which influenced the customer to buy a Honda bike is

price reduction followed by fuel efficiency.

14. Customers are satisfied about Honda bike because of easy availability of spares

parts of their bike.

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 SUGGESTIONS

1. Most of the customers are of the view that the price tag of HONDA

bikes as compared to other similar bikes is a bit higher. Hence the price of the

bikes especially the power range bikes like Shine and Activa could be reduced.

2. The customers should be provided with enough information regarding

effective maintenance of the bike so that the consumers get the best from the bike.

3. HONDA has to identify those dealers who are facing the problem with

sales and take adequate measures to keep up the so far created brand image.

4. Honda has to use more promotional techniques to improve the sales in

future. It has to conduct more road shows/public display by which the consumer is

given with much detailed information about the product and more public

awareness is created.

5. Many existing customer have stated that some Honda vehicle do not

have a good road grip. Hence it is suggested that those vehicle must be re-

engineered for better road grip.

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 CONCLUSION

Honda is one of leading two wheeler producer in the world and a major player in

the Indian Market. They were the producer of largest selling motor cycle of the

world that is Honda it has its own importance still in the market. But from the past

two or three years Honda suffered a slight loss in its market share and Bajaj became

a big competitor to Honda. Honda is one of the leading two wheeler producer in the

globe. It holds an important place in the minds of consumer by providing efficient

service and better products. Product efficiency and innovations are the method they

live up today. Their engineering is comprehensive.

Consumer perception towards Honda motorcycles is very good. It has created a

very good brand image for itself by providing low maintenance, fuel efficient, sleek

looking models along with efficient after sales service. It has attracted every class

of customers.

In today’s competitive business environment, it is only due to the positive

perception of the consumer that the company is being able to compete in the market

with its other competitors.

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 BIBILIOGRAPHY
Books:

 Kothari. C.R (2004): Research Methodology Methods & Techniques‟, New

Age International Publishers, New Delhi, 2nd Edition.

 Richard I. Levin, David S. Rubin (2004): „Statistics for Management‟,

Prentice Hall of India Private Limited, New Delhi, 7th Edition.

 Jayaram, N. and Sandhog, R.S. (1998), Housing in India - Problems, Policy

and perspectives, B.R. Publishing Corporation, Delhi.

Internet

 http://compare.pricesofindia.com/dealers/honda/uttar-pradesh/Lucknow

 http://dealer.tvsmotor.com/find/Lucknow/Uttar%20Pradesh#

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 QUESTIONNAIRE

Name:____________________________________________

Address:

Gender:  Male  Female

Age: Phone no:

Occupation:

 Student  Executive  Industrialist

 House wife  Business men  Service

 Professional  Trade shop own  other

1) Which two wheeler motor cycle company you aware that presently available in
the Market?

Honda

Hero

Bajaj

TVS

Suzuki

2) Will you /Do you want to purchase any Honda Bike?

 Yes

 No

3) Have you planed to purchase any other Bike?

 Yes

Please Mentioned Company name

 No then planning for four wheeler

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4) How did you come to know about this Honda Bike?

 News paper  Hoarding  Magazine

 Advertising  Television  Showroom banner

 On road  Friend/Relative

6) On which specific occasion did you purchase Honda two-wheeler Bike?

On festival  Get promotion  Bike required

 On birthday  When you start job  when you go married

7) Who promotes you to purchase this Honda Bike?

 Family member  Relative

 Friend  For other

9) What important criteria you considered while purchasing the Honda Bike?
(Multi tick mark)

 Price  Average  Pick up

 Design  Company image  Maintenance

 CC of engine

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10) Main reason for you to selecting this particular model?

(Rank any five in ascending order)

 Good looks/ stylish  Reasonable price

 Low maintenance cost  Auto Start

 Fuel efficiency  Engine capacity

 Pick up

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