a study on designing distribution channel with respect to honda dealer of local area
TRANSCRIPT
BYTCO INSTITUTE OF BUSINESS MANAGEMENT AND
ADMINISTRATION, NASIK – 422101
A
Project Report
On
“A STUDY OF MARKETING MIX OF HONDA WITH RESPECT TO RUSHABH HONDA pvt Ltd, NASHIK”
Submitted by
FOR THE ACADEMIC YEAR 2008 – 2009
Submitted to
UNIVERSITY OF PUNE
CERTIFICATE
This is to certify that the project report entitled
A STUDY ON DESIGNING DISTRIBUTION CHANNEL WITH
RESPECT TO HONDA DEALER OF LOCAL AREA
Submitted by
PRASHANT TUPLONDHE
In partial fulfillment of requirement for the award of
BACHELOR OF BUSINESS ADMINISTRATION
To
University of Pune
The project report is submitted through the Director of Institute of
Business Management and Administration, Nasik during the academic
year (2008-2009)
Date:
Place:
Director,
ACKNOWLEDGEMENT
I take this opportunity to express my deep indebtedness and gratitude to Mr. RAJESH DANI Sales Manager and all the STAFF of RUSHABH HONDA PVT. LTD.
for their support and co-operation in preparation of this report.
I am thankful to PROF DILIP PHADKE (H.O.D B.B.A Department) and PROF Dr. RAM KULKARNI (Principal BYTCO. College) for there constructive support.
I am deeply thankful to my project guide Mr. NITIN JOSHI
for his valuable guidance, kind advice and encouragement throughout the duration of developing this project.
Lastly I herby thank all the people who have provided inputs to this project work directly or indirectly.
PRASHANT.K.TUPLONDHE
DECLARATION
I, the undersigned, hereby state that this report entitled
“marketing mix of Honda with respect to local dealer.” is a genuine and
bonafide work prepared by me under the guidance of Prof Nitin Joshi
empirical findings are based on the data collected by myself.
The matter presented in the report is not copied from any other
report.
The work has not been submitted for the award of any other
degree/ diploma either to Pune University or any other universities.
This project report is submitted to Pune University in partial
fulfillment of the degree of Bachelors of Business Administration
SIGNATURE:-
Date: - NAME: - Prashant. k. Tuplondhe
COLLEGE: - Bytco College
Place: - Nashik COURSE: - B.B.A (Semester VI)
CONTENTS
Chapter Topic
Chapter -1 INTRODUCTION
1.1 Selection of the Topic 1.2 Objectives of Study1.3 Scope1.4 Assumptions1.5 Limitations of the study
Chapter -2 ORGANIZATION PROFILE
2.1 Profile of Honda for two wheeler2.2 Profile of Honda for 4-wheeler2.3 Profile of Rushabh Honda
Chapter -3 CONCEPTUAL BACKGROUND3.1 Marketing
3.2 Marketing mix
Chapter 4 MARKETING MIX OF HONDA
1.1 Product
1.2 Price
1.3 Promotion
1.4 Physical distribution
Chapter 5 DATA ANALYSIS & INTERPRETATION
Chapter -6 CONCLUTION
Chapter - 7 RECOMMENDATION
Chapter -8 BIBLIOGRAPHIES
CHAPTER
INTRODUCTION
1.2 NEED AND IMPORTANCE OF PROJECT WORK
This project work forms a part of requirement for T.Y B.B.A
program under Pune University for the academic study under the subject
Research methodology. The significance of the project report is to give
students understanding of the basic principles, conventions and the
practical application of research methodology.
Merely acquiring theoretical knowledge does not satisfy the
requirement of the business world. It has to be supported with the
practical experience, so that it can provide a concrete foundation. By
doing the project report one can enter the dynamic business world and
get an opportunity to know the actual application of the theoretical
knowledge.
Therefore an attempt is made by me to acquire the practical
knowledge in the form of this project report.
1.3 OBJECTIVES OF STUDY
To study the profile of the organization
To understand the concept of marketing analysis
To analyze the marketing strategies of the organization and evaluate
the
financial health of the company.
To know the brand image of the company.
To know their distribution channel of the organization.
To study the marketing mix of the organization.
1.4 Scope
The study of Rushabh Honda pvt Ltd helped me to gain the
practical knowledge in the field of marketing.
As the subject “Marketing Mix of Honda”, more stress is given on
marketing mix and their products.
It helped me to acquire the information about marketing mix of
Honda.
This project relates with what specifically marketing mix is, what
its elements are and how they coincide to produce a
comprehensive, cohesive and effective sales strategy.
It is important to remember that how Honda product is perceived
by the customers is dependent on the target market.
All the elements of the marketing mix(Product, Price, Promotion,
Physical distribution) should be developed according to who the
target market is?, what their needs are? and how the Honda wants
its product to be perceived?
1.5 METHODOLOGY OF THE STUDY
Research as a process involves defining and redefining problems,
hypothesis formulation organizing and evaluating data, deriving
deductions, inferences and conclusions etc, after careful testing.
Data constitutes the subject matter of analysis. The relevance,
adequacy and reliability of data determine the quality of the study. They
are the basic input for constricting measurement scales. The entire
scientific process of measurement, analysis, testing and inferences
depends upon the availability of relevant and accurate data.
For this Project I have collect Data in Two Ways:-
Primary Data
Personal interaction with company dealers and the customers of the
brand.
Secondary Data
Collection information from the internet.
Collection of information on history of company and its products
through the web site.
DATA COLLECTION
Primary Secondary
Interview Observation Questionnaire Field
Technique Survey
Journals Magazines Radio Films Newspaper Books
Limitation of the study
The project was to be completed in a limited span of time.
Information provided by the company was limited.
The project has covered only a limited area of vast study.
It doesn’t cover the overall study of Honda Motors as a whole.
Chapter 2
Organizational Profile
PROFILE OF HONDA FOR TWO WHEELERS
HMSI (Honda motors and scooters factory is spread over 52
acres, with a covered area of about85,815 square meters at
Manesar, Gurgaon district of Haryana. The foundation stone for
the factory was laid on 14th December 1999 .The factory was
completed in January 2001. The initial installed capacity was
100,000 scooters per year, which has reached 6,00,000 scooters
by the year by 2007 and motorcycle capacity shall be 4,00,000
per annum. The total investment outlay for the initial capacity
was Rs. 215 crores and now the accumulated investment is 800
crores. total investment outlay for the initial capacity was Rs. 215
crores and now the accumulated investment is 800 crores.
PROFILE OF HONDA FOR FOUR WHEELERS
Tokyo-based Honda Motors manufactures automobiles and
motorcycles as well as lawn mowers and snow blowers, outboard
motors and portable generators. The company employs 131,600 people
and reported revenues of $78.2 billion in 2004.Honda makes more
compact, fuel-efficient personal vehicles than most others in the car
industry.
Japanese car companies are leaps and bounds ahead of American
companies in increasing fuel efficiency, and Honda further proved
this by scoring a 62 out of 100 (second only to Toyota) in a 2006
CERES report on corporate response to climate change.
While this is good news for consumers and the planet,
environmental groups argue that the company is not going far enough
to curb carbon emissions.
In 2005, Honda took part in efforts to prevent stricter greenhouse
gas legislation from taking shape in California, and the company is
still a target of the Rainforest Action Network's campaign to achieve
an average fleet fuel efficiency of 50 miles per gallon by 2010.
Honda's fleet currently averages only 25.1 miles per gallon.
Honda needs to think bigger and act more aggressively to really curb
greenhouse gas emissions and counter the global warming trend. .
Profile of Rushabh Honda
1) Authorized dealer of Honda Motorcycle and Scooters Pvt. Ltd.
It was established in Sept 2006 at Bombay Naka circle, Agra
Road, Nashik. Since then the organization is serving the
Nasikites sincerely. It is authorized for Nasik district. They are
dealing with all the 2-wheelers of Honda Motors
Name of the firm: - Rushabh Honda pvt Ltd.
Address: - Plot No 14, Mumbai Naka, Mumbai-
Agra Highway, Nashik.
Tel No: - 0253-2508000,2508901,2,3,4,5
Fax: - 0253-2509090.
Name of owner: - Sanjeev Bafna.
No of staff: - 67
Manager: - Rajesh Dani
Deals in: - ACTIVA, UNICORN, SHINE, DIO,
ETERNO, AVIATOR, STUNNER.
CHAPTER
CONCEPTUAL
BACKGROUND
MARKETING
Marketing concept concerns with “Identifying and satisfying the needs
and wants of consumers by providing a market offering to fulfill those
needs and wants through exchange processes, profitably”. Some
important points of marketing –
1. Consumers of goods or services may be individuals or
organizations, or other groups, for example voters supporting a
political candidate.
2. The term ‘market offering’ is used deliberately as this can mean a
physical good, or a service, or a combination of the two, or it can
be extended to cover other entities to which the marketing
concept may be applied, for example political figures and ideas,
‘pop’ music and charitable causes.
3. The idea that an organization will seek to fulfill consumer needs
profitably is not restricted to financially profitable goals as not all
organizations aim to make profits as such, for example non –
profit making concerns such as medical and educational
institutions, or groups such as the scouts organizations, may adopt
marketing principals, but their end objective may be counted in
ways other than cash profit.
Marketing Mix theory
Introduction
The term "marketing mix" became popularized after Neil H. Borden
published his 1964 article, The Concept of the Marketing Mix. Borden
began using the term in his teaching in the late 1940's after James
Culliton had described the marketing manager as a "mixer of
ingredients". The ingredients in Borden's marketing mix included
product planning, pricing, branding, distribution channels, personal
selling, advertising, promotions, packaging, display, servicing, physical
handling. Marketing mix is the division of groups to make a particular
product, by pricing, product, branding, place, and quality. Although
some Day1 marketers have added other P's, such as personnel,
packaging and physical evidence, the fundamentals of marketing
typically identifies the four P's of the marketing mix as referring to:
Product
Price
Promotion
Physical distribution
The firm attempts to generate a positive response in the target market
by blending these four marketing mix variables in an optimal manner
The Marketing Mix
Product Place
TargetMarket
Price Promotion
Product
Product is a thing process utility. For many a product is simply the
tangible, physical entity that they may be buying or selling.
The product is the physical product or service offered to the consumer.
In the case of physical products, it also refers to any services or
conveniences that are part of the offering. Product decisions include
aspects such as function, appearance, packaging, service, warranty, etc
The Product Life Cycle (PLC) is based upon the biological life cycle.
For example, a seed is planted (introduction); it begins to sprout
(growth); it shoots out leaves and puts down roots as it becomes an adult
(maturity); after a long period as an adult the plant begins to shrink and
die out (decline).
The Customer Life Cycle (CLC) has obvious similarities with the
Product Life Cycle (PLC). However, CLC focuses upon the creation of
and delivery of lifetime value to the customer i.e. looks at the products
or services that customers NEED throughout their lives.
Price
The price is the amount a customer pays for the product. It is
determined by a number of factors including market share,
competition, material costs, product identity and the customer's
perceived value of the product. The business may increase or decrease
the price of product if other stores have the same product. Pricing
decisions should take into account profit margins and the probable
pricing response of competitors. Pricing includes not only the list
price, but also discounts, financing, and other options such as leasing.
Price is also calculated on the basis of the Demand and Supply for the
Product.
Price is influenced by following factors:-
Sales volume
Profit margin
Return on investment
Trade margin
Product image
Advertisement and sales promotion
New development
Promotion
Promotion Mix (Meaning) – Promotion is the persuasive communication
about the product by the offerer to the prospects. It covers advertising,
personal selling, sales promotion, publicity, public relation, exhibition
and demonstration used in promotion. Largely it deals with non-price
competition
The different elements of promotion mix are as follows:
Sales promotion
Advertising
Direct Marketing
Public relation
Sales force
The various factors affecting promotion mix
Size of the incentive
Condition for participation
Duration of promotion
Distribution vehicle
Timing of promotion
Physical Distribution
Physical Distribution (Meaning) - Physical Distribution is to deliver the
right goods to the right customer at the right time and place. Physical
Distribution means the process of delivering the product to the user or
consumer promptly, safely and in time. Physical Distribution involves
planning, action and control of the Physical flows of raw materials and
finished products from the points of origin to the points of consumption
to meet the customer’s needs. Distribution planning and accounting, in
bound transport, receiving, inventory management, in-plant
warehousing, customers service, communication these are the
components of Physical Distribution. The main components are,
Transportation
Warehousing
inventory management
Importance of Physical Distribution
Scope of Marketing
Sales generating power
Management science
Rising competitive demand
CHAPTER
MARKETING MIX
OF HONDA
Product Mix
1) ACTIVA
Perfectly designed with
technology, Honda Activa is more than
just a scooter. The tyres have double
layered tubes with fluid in between
that seals the air leakage in case of a
puncture to a puncture-free ride. It has comfortable and broad seat with
powerful headlamp that brightens up the dark roads for safe driving
ENGINE
TYPE DISPLACEMENT MAX POWER
4 STROKE,SINGLE CYLINDER102CC7BHP@7000rpm
ELECTRICALS
BATTERY HEAD LAMP
12v,5AH35W
BRAKES
FRONT REAR
DRUM,130 MM DIADRUM,130 MM DIA
FUEL TANK 6 LITRE
1) ETERNO
Eterno has a 4 stroke powerful 150 cc
engine, providing a handsome mileage.
Runs smoothly as it has dual spring
suspension, even on bad and bumpy roads.
This fuel efficient scooter is great on pick
up. Comfort seating, spacious foot board, handle position etc ensure the
complete riding experience
ENGINE
TYPE
DISPLACEMENT
MAX POWER
4STROKE, SINGLE CYLINDER
147.7CC
6.0KW(18.2)BHP@6000RPM
ELECTRICALS
BATTERY
HEAD LAMP
12V
35W
BRAKES
FRONT
REAR
DRUM,130 MM DIA
DRUM,130 MM DIA
FUEL TANK 4.5LITRE
HONDA SHINE
Honda shine has 4 stars
ratings it has 103bhp @
7500rpm. 124.6 cc cubic
capacity. It cost is 49,475 to
59,000. It is available in
three colors Red, Black and
Blue .
ENGINE
TYPE
DISPLACEMENT
MAX POWER
NA
124.6CC
103BHP@7500RPM
ELECTRICALS
BATTERY
HEAD LAMP
12V
35W
BRAKES
FRONT
REAR
240mmDISC
240mmDISC
FUEL TANK 11 LITRE
2) DIO
Its stylish aero-dynamic, sleek, wedge
design body is really compatible with multi
reflector head light. Passenger's comfort is
the assurance of its specially designed seat
with enough leg room and ample space in
under seat luggage box. Appealing structure, fuel efficient with 4 stroke
single cylinder and powerful OHC engine makes it more preferred
vehicle
ENGINE
TYPE
DISPLACEMENT
MAX POWER
4STROKE, SINGLE CYLINDER
102CC
7BHP@7000rpm
ELECTRICALS
BATTERY
HEAD LAMP
12v,5AH
35W
BRAKES
FRONT
REAR
DRUM,130 MM DIA
DRUM,130 MM DIA
FUEL TANK 6 LITRE
STUNNER
Its stylish aero-dynamic, sleek, wedge design body is really compatible
with multi reflector head light. It has rating 4 star the bike is equipped
with 11bhp and Has 125 cc cubic capacity. The cost of bike is 50,976 to
64,000
ENGINE
TYPE
DISPLACEMENT
MAX POWER
4 STROKE
125CC
11BHP
ELECTRICALS
BATTERY
HEAD LAMP
12v,5AH
35W
BRAKES
FRONT
REAR
DISC
DISC
FUEL TANK NA
Aviator
Exuding style from the word go,
the Aviator is for those who
don't have to try hard to
impress. Topped up with classy
features, it adds to your quotient in more ways than one. Yes, the
Aviator is here. And it's time for you to arrive. In style
ENGINE
TYPE
DISPLACEMENT
MAX POWER
4STROKE, SINGLE CYLINDER
102CC
7BHP@7000rpm
ELECTRICALS
BATTERY
HEAD LAMP
12v,5AH
35W
BRAKES
FRONT
REAR
DRUM,130 MM DIA
DRUM,130 MM DIA
FUEL TANK 6 LITRE
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
ENGINE
TYPE
DISPLACEMENT
MAX POWER
4 STROKE
149.1CC
13.3BHP@8000RPM
ELECTRICALS
BATTERY
HEAD LAMP
12V
35W
BRAKES
FRONT
REAR
240mmDISC
240mmDISC
FUEL TANK 13 LITRE
Price
Name Of Bike Price (Rs)
ACTIVA RS 40,304 – 49,000
AVIATOR RS 41,401 – 54,000
STUNNER RS 50,976 – 64,000
DIO RS 37,449 – 45,000
ETERNO RS 41,318 – 46,823
UNICORN RS 59,890 – 69,223
SHINE Rs 49,475-59,000
Promotion
Advertisement of the firms are done through various sources like
Via Internet :-
HONDA MOTORS AND SCOOTERS has given their
advertisement on Internet, through which many of the net surfers come
across the advertisement made and they come to know about their
products and schemes provided by them.
By Participating in Exhibitions :-
Through participating in exhibition they can advertise
about their products very well as many people are attracted towards
exhibitions and is the easy and quick way of making advertisement.
Through Pamphlets : -
Through pamphlets they can advertise about their products
by distributing and meeting. Each person personally they can advertise
about themselves home to home.
Through Hoardings : -
Through hoardings the advertisement is made on
the highways and urban areas and even in rural areas many of the people
come across to Honda bikes by seeing the Hoardings.
News Papers : -
Honda motors have selected a very good mode of
advertisement i.e. news papers. Any of the people who all read news
papers come across about their products. They give there advertisement
in news paper like TIMES OF INDIA. As many readers now a days read
English newspapers so they even have advertisements in Nasik Times.
.
Physical Distribution
HONDA
|
|
V
Authorized Dealer
|
|
V
Buyer
This channel is used by Honda involving a single intermediary i.e. an
authorized dealer.
HONDA
|
|
V
RUSHABH HONDA PVT.LTD (NASHIK)
|
|
V
CONSUMER
CHAPTER
DATA ANALYSIS
AND
INTERPRETATION
Q1) Do you own a motor bike?
Yes No
50 10
Q2) Do you have only one or more bikes?
1 2 3 >3
32 15 2 1
Q3 Which company bike do you have?
Hero Honda Bajaj Honda T.V.S Yamaha Suzuki
12 15 9 8 4 2
Q4) are you satisfied with your bike?
Q5 Would you like to change your bike?
Yes No
27 23
Yes No
36 14
Q6) if given a chance to change your bike, which company you will
prefer?
Hero Honda Bajaj Honda T.V.S Yamaha Suzuki
12 15 9 8 4 2
Q7) if given a chance to buy a Honda bike which would you prefer?
Activa Aviator Shine Stunner Dio Eterno Unicorn
8 3 7 14 4 2 13
Q8) which moped will you prefer?
Kristal Pleasure Blaze Activa Aviator Scooty pep Dio
4 9 6 12 4 10 5
Q9) Rank the following bikes according to style or look
Pulsar Karizma Stunner CBZ Yamaha
16 14 8 4 8
CHAPTER
CONCLUSION
Conclusions
Thus it can be concluded that Honda has direct dealers as
intermediates to distribute their goods in time to the ultimate
customers.
It can also be concluded as these dealers have Authorized
Sales Points under them for the area allotted to them. Having
a single intermediate for each district involves less cost.
Activa is the most preferred moped.
Stunner is catching the eyes of the youths.
Unicorn and Shine is preferred by working class of the
society.
Style wise Stunner ranks after Karizma of Hero Honda and
Pulsar of Bajaj.
Activa is best preferred by women.
CHAPTER
RECOMMENDATION
Recommendation
Honda Motors should come up with new launches.
They should provide different discount schemes at peak seasons.
They should promote their product at college campuses.
They should display their bikes on the road shows.
To increase the sales of their bikes the company and dealers should
give discounts and take some promotional activities.
CHAPTER
BIBLIOGRAPHY
Marketing management - Philip Kotler
Marketing management – ICICI National College
www.hondamotors.com
ANNEXTURE
Questionnaire
Q1) Do you own a motor bike ?
Q2) Do you own only one bike or more ?
Q3 Which company bike do you have?
Q4) Are you satisfied with your bike?
Q5) Would you like to change your bike?
Q6) If given a chance to change your bike, which company you will
prefer?
Q7) If given a chance to buy a Honda bike which would you prefer?
Q8) Which moped will you prefer?
Q9) Rank the following bikes according to style or look