TT180908 Jimmy Koshy Marketing

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MARKETING PLAN FOR NEW

COMPACT FUEL EFFICIENT CAR

BY HONDA MOTORS TO BE

MARKETED IN INDIA



Honda - Challenging the Limits.

EXECUTIVE SUMMARY

Globalization is the buzz word and has manifested itself by touching the lives

of all living across the globe. Of the innumerable advantages of globalization

one of prime importance is the increase in the purchasing power of the people.

The increased income has given purchasing power in the hands of the people

especially the citizens of the developing nations and hence the increase in

their standard of living . Standard of living is essentially associated with a

willingness to spend on the goods which are generally not considered

necessities. Our product that is “a car” is one of the desired purchases by

anyone who wants to move up the ladder and satisfy his emotive need.

It is also pertinent to mention at this point that in the current economic

scenario of rising fuel prices and mounting concern towards environment

degradation, no car manufacturer can undermine its importance. To develop

products which suit the customers need and as a part of Corporate Social

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Responsibility it is the need of the hour to design and sell cars which are fuel

efficient.

From light trucks to minivans to sports cars, Honda continues to transform

original ideas into unique vehicles. Carrying the tradition further, this marketing

plan is designed to discuss the marketing of new fuel efficient car in of the

fastest growing passenger car market in the world i.e. India.

The following sections would take through the marketing plan for this car in

India, giving options to the customers under the Honda umbrella. The car

promises to be a “Value for money” proposition to the customers.

Honda’s fuel efficient car will be hatchback and will be sold in various color

variants to suit the tastes of customers across India. The car will be a compact

car and hence help in line filling since the company doesn’t have any car in

the mid sized segment of the product mix. The car would be exclusively made

& exported from India.

As elaborated in the report Indian consumers are value oriented and prefer

products which are environment friendly .The market segmentation would be

behavioral segmentation and the target market would be the value conscious

customers, primarily the middle class consumers and the car rental

companies.

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The car would be 1200 cc, light in weight & compliant with the emission norms

set by then regulatory agencies. The company already has a strong

distribution network and would be using the same for the selling this car. The

reliance would be on television advertising and for promotion the company

would participate in auto exhibitions & give sponsorship. The company also

plans to use the automobile television shows to opine expert views. The

company plans to encourage test drives arranged by dealers and sub dealers

for word of mouth publicity.

4




SITUATION ANALYSIS FOR HONDA

MOTORS LIMITED

5




The Company

The history of the Honda Motor Company began with the vision of one man -

Soichiro Honda. His dream was personal mobility for everyone.

Soichiro Honda founded the Honda Motor Company in 1948.

SoichiroHonda

Founder, Honda Motor Co.

In the same year, he designed and engineered the first product of this

company - a 50 cc motorized bike on a bicycle frame - in his small shed at

Hamamatsu. Today, as the company celebrates its 50th Anniversary, Honda

is a global company with a global viewpoint and a five-region global strategy

that is reflected in a solid commitment to local markets and economies.

Honda's Global Vision

Soichiro's vision was international in character. His desire was to lead the

world in technology, and make a significant contribution to the creation of a

better society. As a result, most of the products that Honda developed started

out by making a difference. Whether it was the CVCC engine in the sixties or

the solar powered car of the nineties, they all sought to challenge and

overcome conventional wisdom.

6




Financial Highlights

Financial Data

Honda Motor Co., Ltd., and Subsidiaries, Year ended or at March 31

7




Operating Data

Years ended 31st

March

Source:http://www.hondacarindia.com

Honda in India:

Honda had entered in India as Honda Seil Cars India Ltd., (HSCI) which was

set up in December 1995 as a joint venture between Honda Motor Co. Ltd.,

Japan and Seil Limited to manufacture passenger cars in India with a

commitment to providing Honda’s latest passenger car models and

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technologies to the Indian customers. The company has brought about three

models in India - Honda City, Honda Accord, and Honda CR-V. Its first model

was launched in 1997. Honda Seil Cars India Ltd. is ISO 9002 & ISO 14001

certified.

The Honda City, its first offering introduced in 1997, revolutionized the Indian

passenger car market and has ever since been recognized as an engineering

marvel in the Indian automobile industry. The success of City as well as all its

other models has led HSCI to become the leading premium car manufacturer

in India.

The total investment made by the company in India till date is Rs. 1620 crores,

further investment of Rs. 1000 crore is planned and being currently invested

for the coming second plant in Rajasthan. The company has a capacity of

manufacturing 100,000 cars.

HSCI’s state-of-the-art manufacturing unit was set up in 1997 at Greater

Noida, U.P with an investment of Rs. 450 crore. The green-field project is

spread across 150 acres of land (over 6,00,000 sq. m.).

9




Honda Seil Plant at Greater Noida , U.P.

The initial installed capacity of the plant was 30,000 cars per annum, which

was thereafter increased to 50,000 cars on a two-shift basis. The capacity has

further been enhanced to 1, 00,000 units annually in February 2008. Several

modifications were done by the company with the objective of offering higher

quality products to its customers, faster and quicker. The expansion process

also included expansion of the covered area in the plant, from 1,07,000 sq. m.

to 1,31,794 sq. m.

The company operates under the stringent standards of ISO 9001 for quality

management and ISO 14001 for environment management.

Market Share of Honda Seil Cars Limited:

The passenger car segment is dominated by one of the oldest players of

liberalized Indian car market viz. Maruti followed by the South Korean

manufacturer Hyundai Motors. Needless to say, that both the companies enjoy

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first mover advantage and the associated benefits like economies of scale,

brand equity to name a few.

The following figures show a division of the market share as on 2007-08 (April

March) of the major car manufacturers in the Indian passenger car market:

Car Manufacturer Market Share (in %)

Maruti 47.3

Hyundai 25.5

Tata Motors 12.7Honda Seil 4.2

GM 3.2

Ford 2.4

Mahindra Renault 1.8

Others 2.9

Source: Automotive Component Manufacturers Association of India

The above can illustrated by the following pie diagram:

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market share(passenger cars) 2007-08

47%

26%

13%

4%3%

2%2%3%

Maruti

Hyundai

Tata Motors

HondaSeil

GM

Ford

MahindraRenault

Others

Marketing Objectives:

The marketing plan has been designed with the following market objectives:

First year Objectives: We are aiming for 6% market share of the Indian

market.

Second year Objectives: We are aiming for 10% market share of the

Indian market.

An important objective will be to establish a well-regarded brand name linked

to a meaningful positioning. The company will invest heavily in marketing to

create a memorable and distinctive brand image projecting innovation,

quality and value.

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SWOT ANALYSIS

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Strengths:

The Brand Image

Honda enjoys a reputed brand image everywhere in the global market. The

company is also rated high in the customer satisfaction index and has also

been the winner for customer satisfaction in India.

Technology

Honda has always believed in innovation. A late entrant in the car market, but

the company is known to deliver auto lineup for a world of diverse needs and

lifestyles, bringing the joy of driving and outdoor enjoyment to millions of

satisfied customers.

Environment friendly vehicles

The company has been manufacturing cars which run on alternate fuels like

diesel, natural gas, ethanol and also hybrid cars. The recent launch is also an

effort in this direction.

Strong R&D

Honda's outstanding R&D has introduced a long line of unique technological

achievements to the planet. These include the low-emission CVCC engine,

first to comply with the 1970 U.S. Clean Air Act; the VTEC power plant, which

uses variable valve control for high fuel efficiency and high performance; an

anti-lock braking system (ABS), which helps maintain vehicle stability in

emergency braking and many more.

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Indigenization

The company believes in using the local raw material and having OEMs for

the cars. The indigenization helps the company to reduce the risk of exchange

rate fluctuations and also in maintaining a lean production facility. The Honda

City in India is manufactured with 79% indigenization level.

Weaknesses

Late entrant

The company has entered late in the Indian car market and lost on the first

movers advantage. The position of the company has however built up due to

excellent customer service and positive feedback of the customers.

No car in the mid segment

The Indian car market is largely dominated by the demand of mid segment

cars. The company’s product line does not have a car in this segment. This

means loss of potential consumers.

The new car in question would be a step in this direction & enable the

company to fill in this vacuum.

Commodity price risk

The car manufacturers are exposed to commodity price risks to higher costs

due to changes in prices of inputs such as steel, aluminum, plastics and

rubber, which go into the production of automobiles. In order to mitigate these

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risks, the company continues to attempts to enter into long term contracts

based on its projections of prices.

Opportunity

Favorable government policy

The Indian government in the recent budget has given tax sops to the

manufacturers of small and mid sized cars as these are fuel efficient. This will

reduce the cost of production and the same benefit can be passed on to the

buyers in terms of lower price of car.

Economic growth

The Indian economy has been growing at an average of 8-8.5% per year for

the last few years. The growth percolates into the rising income of the people

and hence an increase in the demand for cars.

Young population

The majority of Indian population is in the young age group which would then

translate to be the future customers of the company.

Threats

Recessionary trend in the world economy

India is not insulated from the recent slowdown in the world economy. The

deceleration of growth will reduce the momentum of growth. It may also lead

to some effect on the aggregate demand.

Rising interest rates

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Consumer loans are a preferred mode of financing and an increase in the rate

of interest may dampen the demand for loans and hence the demand for cars.

Rising fuel prices

An increase in the prices of fuel may reduce the demand for cars but since the

product being introduced is a fuel efficient the rising fuel price may not affect

the demand for this car.

Threat from competitors

The car industry has established players like Maruti, Hyundai and Tata Motors

who are operating in the mid sized segment and enjoy equally good brand

image with larger market share. The launch of Rs. 1 Lakh small car by Tata

Motors is also a threat to the company.

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INDIAN CAR MARKET

Facts of the market

Profile of Indian Consumer

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The automotive industry is one of the largest industries worldwide and in India

as well. The automotive sector drives upstream industries like steel, iron,

aluminum, rubber, plastics, glass and electronics, and downstream industries

like advertising & marketing, transport and insurance.

The automotive industry can be divided into five sectors:

• Passenger Cars

• Multi-Utility Vehicles (MUVs)

• Two-Wheelers

• Three-Wheelers

• Commercial Vehicles-Light Commercial Vehicles (LCVs) / Medium &

Heavy Commercial Vehicles (M &HCVs) Tractors 1

The Indian automotive industry has the potential to emerge as one of the

largest in the world. The country already ranks number two globally in the two-

wheeler segment, and is next only to China. It ranks 11th in car production and

13th in commercial vehicle production globally. With growing industrial

production and increasing spending power of the Indian middle class

households, the country is expected to make it to the top five markets in cars

and commercial vehicles by 2020. Of the total sales, roughly 10 per cent is

contributed by exports to various countries.

1 http://www.gailonline.com/gailnewsite/mediacenter/reportsautoindustry.html

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Source: SIAM

The cumulative growth of the Passenger Vehicles segment during April -

March 2007 was 20.70 percent. Passenger Cars grew by 22.01 percent, Utility

Vehicles by 13.21 percent and Multi Purpose Vehicles by 25.20 percent in FY

2006-07.

The following data gives the sales of automobiles in the last six financial

years. As indicated by the given data the sales of passenger vehicle i.e. the

cars has grown manifold. The growth in the passenger vehicle segment is the

maximum when compared with the growth of other categories of vehicles.

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domestic sales of cars

0

500,000

1,000,000

1,500,000

2,000,000

2002-

03

2003-

04

2004-

05

2005-

06

2006-

07

2007-

08

year

n o . o f u n i

Data Source: SIAM.

A graphical representation of the total sale trend of passenger cars (including

domestic sale and exports) is given below:

Data Source: SIAM

The cumulative growth of the Passenger Vehicles segment during April

Data Source: SIAM.

21

trend of total passenger car sales

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2 0 0 2 - 0

2 0 0 3 - 0

2 0 0 4 - 0

2 0 0 5 - 0

2 0 0 6 - 0

2 0 0 7 - 0

years

n o . o f

u




Future Outlook of Indian Car Market:

The projected annual growth rate for demand of cars is expected to be above

9%. A survey conducted by NCAER shows that:

Source: http://www.fadaweb.com

The various factors contributing to the increase in demand of cars are:

• Rising income of the middle class in India.

• Booming market economy

• Favorable government policy

• Low penetration rate of cars

• Large population

• Impressive road development

• Growth in urbanization

22




PROFILE OF INDIAN CONSUMER

India is a vast country with a population of more than One Billion spread on a

land area of 3.29 million sq.km. Besides diversities in economic activities,

literacy level the striking diversity of Indian population and its behavior as a

consumer is due to religion, culture, social and demographic reasons.

Another important consideration is the age profile of the Indian population.

About 34% of the population is below the age of 15 years & roughly 40%

population is below the 24 years of age.93% of the population is below 60

years compared to 83% in USA.

Population Mix ( in 2000)

0-15 years 15-59 years 60+ years

India 34 59 7

USA 21 62 16

China 25 65 10

Source: UN,CLSA & International data of the US Census Bureau

Therefore companies in all areas of business find the Indian market highly

potential for years.

Another striking feature on the Indian market is the burgeoning middle class. It

is roughly estimated that Indian middle class population is 250-280 million.

The Indian middle class is educated & have sufficient disposable income to

purchase branded consumer goods and expensive products and services.

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According to a National Sample Survey Organization study, Indians today

believe in living life in style. The demand for cars and motor bikes has also

seen substantial increases over 11 years. About 4.6% of urban households

owned motor cars in 2004- ’05 as compared to 1.2% in 1993- ’94 while the

figure for rural households went up from 0.2% to 0.8%.

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CONSUMER BUYING BEHAVIOUR

25




For any marketing person, understanding consumer buying behavior is an

essential criterion for marketing efforts and programs. Honda is launching a

mid sized fuel efficient car in India so it is imperative to understand how do

consumers take the purchase decision of a car and who are the participants in

this buying decision.

As elaborated above, Indian car market is in its growth stage and the income

of the Indian consumer, particularly the middle class, is rising. A closer look at

the Indian consumers shows the following characteristics:

Value Orientation2 : Indian customers are highly judicious, educated and well

informed. They are price sensitive and put a lot of emphasis on value for

money. The Indian consumers are noted for the high degree of value

orientation. Such orientation to value has labeled Indians as one of the most

discerning consumers in the world.

Family Influence2 : Indian consumers have a high degree of family orientation.

This orientation in fact, extends to the extended family and friends as well.

Brands with identities that support family values tend to be popular and

accepted easily in the Indian market. Indian consumers are also associated

with values of nurturing, care and affection. These values are far more

dominant that values of ambition and achievement. Product which

communicate feelings and emotions gel with the Indian consumers.

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Economic circumstances2 : The middle class segment is the reflection of the

true Indian culture. They are traditional in their outlook, cautious in their

approach towards purchases; spend more time with family than in partying

and focus more on savings than spending. Slow in decision making, they seek

a lot of information before making any purchase. They look for durability and

functionality but at the same time are also image conscious.

Beliefs & Attitude2 : Indian consumer buying behavior is influenced by

freebies. Freebies are consumer products given free of charge as gifts to

purchases of selected products above a certain value.

Environmental awareness2 : The environmental awareness in India has

started affecting marketing of products based upon their eco-friendliness. In

general, Indian consumers are likely to buy environmentally responsible

products and packs.

Reliance on finance: Almost 85% of the cars purchased by Indians are

financed by loans from the banks & NBFCs.

Decision making process:

Purchase of a car in India is still considered a major decision because unlike

US, family members generally don’t have separate cars & is infrequently

purchased. The decision to purchase a car is high involvement, expensive and

is a self expressive product hence, is the buying process exhibits a

dissonance reducing buying behavior .

The purchase decision is hugely influenced by others in the family and the

reference group. An Indian consumer would go in the detailed study of the

product and consult his reference group before making a decision to purchase

any brand of car.

2

Product Market Study: Consumer Behavior In India , Matrade Chennai, October 2005.

27




Essentially he would look for the following features in the car to take a

purchase decision:

Price of the car in consideration and other competitors brands

Operating cost i.e. fuel efficiency & cost of spares

Brand image of the company

Performance of the other brand of the similar company

After sales service provided by the dealer network.

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SEGMENTATION, TARGETING &

POSITIONING

29






• Premium Car Segment: Real world-class car and people who are ready

to pay for it. Preferred price range: flexible but around Rs. 10 lakhs is

acceptable price like Hyundai Sonata, Mitsubishi Lancer, Audi 1800.

• Super Luxury Saloon: A tiny segment like Mercedes Benz E 229, E-

250, Rover Montego, Audi 6, BMW.

The market segmentation for the car would be a behavioral segmentation with

basis on behavioral variables like benefits of the product, usage rate and

attitude. The stress would be on the value seeking segment of the market with

more usage of cars for work or pleasure.

The Indian consumer is family oriented and puts a lot of stress on the fuel

efficiency of the cars. The product would be catering to the segment of the

market which is value oriented, makes a purchase decision based not only on

the price of the car but the operating cost of the vehicle. The car has a seating

capacity of 5, hence would be preferred by the family oriented middle class

segment of the Indian market.

Target Market

The car under consideration would fall in the compact car segment and the

targeted buyers would be households who prefer cars with less operating cost.

The economy class segment consists of almost 80% of the passenger car

market in India.

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The competing factors for the car would be the fuel efficiency and the price of

the car along with the manufacturing expertise of Honda . The company would

also promote the ease of availability & economical cost of the spare parts of

the car.

The company intends to target the value conscious middle class segment that

looks for value for money with comfortable ride. The company would also

targets the working women who spend their precious time in commuting by

public transport.

For its corporate sales the company is targeting car rental services who rent

their cars to the middle level employees of organizations for business travel

and the tourists within the city and for short distances. The company would

follow a combined target market approach to gain a good market position in

the chosen market.

Positioning

The brand would be positioned as an environmental friendly vehicle with low

operating cost. The stress would be on the mileage of the car and also on the

size which will allow easy maneuverability on the crowded Indian roads. The

company intends to position the car with the catch phrase:

“More for less- unmatched quality with unmatched price.”

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Honda would also cash on its corporate image of superior after sale service to

further strengthen its position in the mind of the consumers.

33




PRODUCT PLANNNG &

DEVELOPMENT

34




The product in consideration is a fuel efficient car falling in the compact

segment of the Indian car market. The car should deliver its promise of being

a fuel efficient vehicle. The product hence has been developed with

aerodynamics which gives unmatched mileage of the car.

Car would be light weight , which would also increase the fuel efficiency.

However the company would also consider the safety of passengers & would

not sacrificed in this process.

Engine downsizing to around 1.2 liters will be done so that lesser CO2

emissions are made from the car. This would also help to take the tax sops

offered by the Government of India to manufacturers of cars with less horse

power.

The car would be assembled at the Greater Noida plant of the company which

will help to utilize the installed capacity of the plant. The engine would be CKD

imported from Honda Japan. The company also proposes to have solar

chargeable head & tail lights of the car.

The car will also have a 3 year warranty with free vehicle service provided for

first year. The company also proposes to introduce a CNG model in near

future.

35




Product features:

Technical SpecificationsMake Honda Fuel efficiency 25 kmpl

Model Fuel efficient model Fuel Type Petrol(CNG version

later)

Body TypeAll aluminumHatchback

Fuel capacity 35 liters

Number of Doors 4 Capacity 1200 cc

Seating Capacity 05 Air conditioners Power saving AC.

Safety Seat Belts ,Anti

Braking system

Child safety Lock,

Day Night inside

rear view mirror( in

all models)

Fog Lamps, Air

Bags, Collapsible

Steering(in higher

versions)

Lights Solar chargeable

lights

Speed Maximum speed of

110 kmph

Colors Red, White &

Silver.(Metallic

Colors available in

higher versions)

Emission NormsEuro-IV, Bharat

Stage-III compliantOverall length 3500 mm

36




PRODUCT MIX

The product mix can be explained as the total range of products that the

company has on offer to the customers in different markets. The product mix

37




of a company can be described to have width and depth. The width of the

product mix refers to how many product lines are present in the company

activity. The depth of the product mix refers to the number of products offered

by the company within each product line.

Product Mix of Honda Globally

Product Width

Cars Motorcycles Power products Technology

CRV Super cub Generators ASIMO

Civic CZ-i 110 Land mowers Aircraft engines

Civic Hybrid Click-I Electric Four wheeler scooters Honda Jet

Accord Dio Z4 Water Pumps Multiview camera

Outboard engines

Product mix of Honda Seil in India:

Product width is only consisting of cars in the Joint Venture of Honda with Seil.

The Motor cycle and the power business are separate companies with

different partners.

Product depth: Total range of products offered in the product line is:

MODELS OF HONDA MOTORS CARS

MODEL TYPE

38

Product

Depth




Accord

• Accord VTi – L M/T

• Accord VTi – L A/T

• Accord V6

Premium

City Zx

• City ZX EXI

• City ZX GXI (CVT)

• City ZX VTEC

Premium

Honda Civic

• Civic 1.8V MT

• Civic 1.8V AT

• Civic 1.8S MT

• Civic 1.8S AT

Premium

Honda CRV

• Honda City CRV - Manual

• Honda City CRV - Automatic

SUV

Source:http://www.hondacarindia.com

The new fuel efficient car would fall in the Car business of the company. The

introduction of fuel efficient car in the compact segment would help the

39

http://auto.indiamart.com/cars/honda-city/

http://auto.indiamart.com/cars/honda-city/




company in product line filling as there is no car offered by Honda in this

segment of the Indian car market.

40




DISTRIBUTION CHANNELS

The organizations produce goods with the objective of selling them.

Distribution channels can be defined as external source utilities for effective

distribution of goods and services using transport facilities, warehouse,

41






and the customers would be based all across the country the delivery time

would be faster

The tasks and responsibilities of Channel members are:

Transport: The stockist would be responsible for transporting

goods and services to the markets

Storage: The stockists, dealers and sub dealers would be

maintaining the inventory of goods in safe place.

Promotion: The activity of advertising for informing & creating

general awareness & influencing purchases by customers would

be primarily of dealers, sub dealers and booking agents.

Relationship: The competitive environment relies heavily on

relationship marketing. The relationship with customers is of

utmost importance and the dealers, sub dealers and booking

agents would also be responsible for customer retention and

development.

Choice of dealers:

The appointment of dealers shall be based on many parameters such as:

• Experience

• Financial Position

• Space( area for proposed showroom)

43




• Past performance

• Location of proposed dealership

• Plans for future

• Working hands.

Honda Seil Cars India has a strong sales and distribution network spread

across the country. The network includes 87 facilities in 53 cities. HSCI

dealerships are based on the “3S Facility” (Sales, Service, Spares)

format, offering complete range of services to its customers.4

The company gives some commission to the channel partners along the

distribution channel. It also gives incentives to them if they sell more products.

This way, the distribution and marketing of the product takes care of itself to

some extent.

4 www.hondacarindia.com

44




ADVERTISEMENT, SALES &PROMOTION

45




It is said “Advertising is telling & selling.” The company would adopt an

integrated marketing communication strategy. This would allow potential

consumers to develop a relationship at their own pace. All marketing

communications would feature the unique advantage of low operational and

maintenance cost. The punch line of the product would be “More for less-

unmatched quality with unmatched price.”

The media planning would be the following:

• Television: It is shown by research that nearly 70% of the TV

advertisements are of consumer goods. To build awareness of the car

& reaching the target market, exploiting the dynamic nature of TV 60%

of the budget would be spend on TV advertising. For the campaign 60,

40 & 10 second spots will be used.

• Press: 25% of the budget would be dedicated to press. It would help in

substantiating the campaign theme by dramatizing the benefits of

specific innovative features using double pace spreads.

• Outdoor advertising: 10% of the budget would be on outdoor

advertising. It is one of the highly visible mass medium and would be

used for name & image identification and also create broad awareness

of the product. The hoardings would be set up in the major arteries of

the cities, petrol pumps and on the highways.

• Direct mail: To provide dealer’s customers & prospects in advance

information of the car and provide them a chance to test drive the new

46




fuel efficient car, 5% of the budget is planned for this method of

advertising.

The sales promotion would be more by way of publicity. The Indian consumer

seeks extensive information before making a purchase decision for a car. The

company would hence exploit this area and create awareness & interest

through popular auto shows telecasted on TV and through write ups in popular

motoring periodicals such as BS Motoring, Automobiles Today.

The company would also gift the car as the prize for the winners of many

realty shows on Indian television like Indian Idol (Indian version of American

Idol). This would ensure the company to introduce the car in the Indian market

and also would be a kind of public test for the performance.

Brochures & booklets highlighting the product features would be printed and

stocked with the dealers, retail battery outlets and kiosks at malls would also

be erected to explain the customers about the features and handle additional

information sought.

47




CONCLUSION

48




The preceding sections of the report highlight the fact that cars have become

a vital part of a city dweller in India. The demand for cars is growing at an

excellent rate and as compared to the developed nations the penetration rate

of passenger cars in India is very low.

The studies have also found that the Indian consumer looks for those products

which fulfill his control needs. Apart from good resale value and easy

maintenance; they seek durable engine and extra seating capacity which

being offered by the car. These functional benefits are built in the car. The car

is also environment friendly with low CO2 emissions and solar chargeable

lights.

Honda has an advantage as people are already aware of the brand pedigree

and associate it with technology/engineering. The target market seeks

credibility in advertising, and fuel-efficiency is relatively more important to

them. Hence the product would satisfy the needs of the target customers. The

product would help the company to increase its market share as a compact

fuel efficient car.

BIBLIOGRAPHY

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Auto industry in India, (online) available on http://www.gailonline.com viewedon 22nd September, 2008.

Automotive Mission Plan 2006-16, Ministry of Heavy Industry & PublicEnterprises, Government of India.

Bose B, Marketing Management (Text & Cases), (2007), HPH, New Delhi

Car statistics, (online) available on http://www.siamindia.com/scripts/press-august-2001.aspx viewed on 21st September, 2008

Data of passenger car industry, (online) available on http://www.siam.com viewed on 20th September, 2008.

Honda motors (online) available on, http://www.hondacarindia.com viewed on19thSeptember, 2008.

Indian Passenger Car vehicle industry, (online) available onhttp://www.tatamotors.com viewed on 20th September, 2008.

Kotler. P, Marketing Management, (2006), 12th ed., Prentice Hall Inc. , U.S.A.

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