FIELD STUDY REPORT

On
“Customer Satisfaction on Honda Motors”

Towards partial fulffilment of

Guided by Submitted By
Mrs. Shachi Kacker Ankit Verma
BBA II Year IIIrd Sem.
Univ. Roll No. 1180671074

Session 2019-20
School of Management

Babu Banarasi Das University

1
 DECLARATION

This is to declare that I Ankit Verma of BBA have personally worked on the project entitled
“CUSTOMER SATISFACTION ON HONDA MOTORS” The data mentioned in this
report were obtained during genuine work done and collected by me. The data obtained from
other sources have been duly acknowledged. The result embodied in this project has not been
submitted to any other University or Institute for the award of any degree.

Date: `
Place: Lucknow

Ankit Verma
BBA II Year IIIrd Sem.
Univ. Roll No. 1180671074

2
 ACKNOWLEDGMENT

First of all I thank God for giving me this wonderful opportunity to undertake this research
which is a part of my BBA program.
I would like to sincerely thank Mrs. Shachi Kacker giving me the wonderful opportunity to
work under her able guidance and support throughout my research.
I also thank persons working at Amul office for giving me their valuable time and vital
information which forms a part of this report.
I would also like to thank my colleagues for rendering their help to me in this research.
Last but not the least, I thank my parents for their prayers, help and advice which helped me a
lot to complete this project report.

3
 CONTENTS

Chapter 1

Introduction

Objectives

Limitations of the study

Methodology

Chapter II

Customer Satisfaction

Chapter III

Profile of Honda

Chapter IV

Analysis of Study

Chapter V

Summary & Suggestions

Questionnaire

BIBLIOGRAPHY

4
 CHAPTER - I

INTRODUCTION:

The two wheeler industry has been expanding rapidly. Gone are the days when processing a

two wheeler was seen as a luxury. Now a day it is viewed as a mere necessity. Prior, sale of

two wheelers was mainly confined to urban areas but lately in rural areas the bicycles are

being replaced by power driven two wheelers such as scooters and motorcycles. Not only

this, the industry has also customers ranging from all demographic segments. It has been

common that even school going children are driving two wheelers. The women customers are

also increasing due to increase in women literacy and employment.

If getting a new customer is difficult, then retaining a current customer is more difficult one

and not only that it is estimated that the cost of attracting a new customer is five times

retaining the current customer. It requires a great deal of effort to induce satisfied customer to

switch away from their current preference. Thus customer attitude is been given top priority

in today’s competitive world.

NEED FOR THE STUDY:

After globalizations, number of two wheeler markets have entered Indian Market. New

companies have been set up with foreign, specially Japanese Collaboration by already

established companies. Honda motors Japan has set up subsidiary company at Gurgaon ,

India to offer state of the art Honda two wheelers to Indian makes Honda motors with its

wide product range has achieved a respectful market shone with strong dealer network and

excellent after sales services.

5
Even though there is waiting period for some products, some are available across the shelf

dealerships are upon not only at metros, but also at urban and semi urban areas. This is to

provide prompt after sales services .it has opened class of art show rooms and work shops at

all the places.

There is a need to study to efforts put in by the Company, Dealers and Service network to

study the extent to which customers are satisfied with the product, service and allied services

etc. Hence it is proposed to study the Customer Satisfaction levels of Honda Customers with

respect to the product performance, after sales service and other allied services like finance

facility, availability of spares and accessories etc.

OBJECTIVES OF THE STUDY

 To study the profile of Two wheeler Industry in India.

 To study the marketing activities of Honda Motors.

 To study the Dealership profile of Vishnu Honda.

 To study the customer handling practices prior to sale, during sale and after sale and

assesses the satisfaction levels of customers.

 To offer suggestion for improving the customer satisfaction.

LIMITATIONS OF THE STUDY:

- The study is limited to Honda Motors Customers who have purchased or come for

service to M/s Sri Vishnu Honda at Visakhapatnam.

6
 - Since a convenient sampling method is adopted, the sample may not be representing

all types of customers.

- As the study is conducted for a limited period and hence it may not be exhaustive.

METHODOLOGY:

The study is conducted basing on Primary and Secondary Data

Primary data is collected by administering a structured questionnaire to customers who visit

the dealer for purchase and service. Data is also collected through personal discussions with

the dealer, sales and service staff and personal observation made during sale and service.

Secondary data is obtained from company records, web site, published articles etc.

SAMPLING:

Convenient Sampling method is adopted for selecting the respondents. Care is taken to cover

customers of all types of products and age groups etc.

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 CHAPTER II

CUSTOMER SATISFACTION

INTRODUCTION

Satisfaction is a person’s feelings of pleasure (or) is appointment resulting from comparing a

products, perceived performance in relation to his (or) her expectation.

Satisfaction is a function of perceived performance and expectations. If the performance falls

short of expectation, the customer is dissatisfied. If the performance matches the

expectations, the customer is satisfied. If the performance exceeds expectations, the

customer is highly satisfied (or) delighted.

Customer satisfaction is both a goal and a marketing tool. Companies that achieve high

customer satisfaction ratings make sure that their target market knows it.

Actual performance by the firm

Customer Satisfaction = ---------------------------------

Customer Expectations

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 1. CUSTOMER & HIS IMPORTANCE :-

The essence of the marketing concept is that organizations must adopt customer oriented

features and focus their attention of building programs, offering and strategies that satisfy

customer needs and wants. Many organizations maintain their focus on operations or

product or sales efforts and thereby ; get dislocated by mistaking the means for the end.

Successful marketing involves companywide transformations in attitude beliefs and

perceptions of the people in how they view the customer. Deep commitment to the customer

is what distinguishes successful marketers from Laggards.

The excellent companies really close to their customers, other companies top about it,

excellent companies really close to their customers, other companies to about it, excellent

companies do it’. The companies, which show extra ordinary concern for the customer,

include. American express, Mc donalds, Citibank, IBM who go to the smallest dealers also

“Never forget the customer’s attitude is the hull mark of their service strategy.

Hence Customers are :-

1. The most important people in any business.

2. They are not dependent of a business, But business is dependent on them.

3. They are not an interruption to own work, they are the purpose of it.

4. They are doing us favor when they come in, we are not doing them favor by serving

them.

5. They are part of our business, they are not outsiders.

6. They are not just statistic. The customers are human beings with flesh and blood

having feelings and emotions.

7. People come to us with their needs and wants. It is our job to fulfill them.

9
 8. They are the lifeblood of every business without whom the door of the business would

have been closed.

9. Non customer functions in particular must be made customer oriented. Customer

needs and requirements should be tracked on regular basis.

II. CUSTOMER SATISFACTION

Whether the buyer is satisfied after purchase depends upon the offer performance in relation

to the buyer’s expectations. Customer satisfaction can be defined as :-

Satisfaction is the level of a person’s felt state resulting from comparing a product’s

perceived performance in relation to the person’s expectation’s satisfaction level is a

function of the different between perceived performance and expectations some of the

successful business firms are aiming for total Customer Satisfaction which increase customer

loyalty towards the product or service offered by the firm.

III. IMPORTANCE OF CUSTOMER SATISFACTION

MISSION AND PURPOSE OF BUSINESS:

The need to satisfy customer for achieving success in any commercial enterprise is so

obvious, one wonder if there is any need to establish the importance of customer satisfaction.

However one often finds that what should be obvious everyone also needs to be explained

and establish.

10
The income of commercial enterprise is derived from the payment received for the products

and services supplied to its external customers. If there are no customers, there is no income,

there is no business. In other words, customers are the sole reason for the existence of

commercial establishments, as the function is extremely important for the success of the

organization, the senior management as well as the leaders of other departments or Divisions

should also realize the importance of customers to the organization and for its growth. It is

therefore no surprise that Peter Drucket, the renowned management guru said “ to satisfy the

customer is the mission and purpose of every business :.

IV. CUSTOMER SATISFACTION PROCESS

Companies seeking to win in today’s market must track their customer’s expectations

perceived company performance and customer satisfaction not only for them but for their

competitions as well.

Brand loyalty and Customers satisfaction on the other hand are almost synonymous and their

impact on market share is statistically varifiable. The relationship between market share

profitability as well as profitability and share holder value creation have been the subject of

considerable research over the years and the linkages have been proven many times.

11
Customer satisfaction and Business Results

Licensing to Brands

Voice of the customer

Service Quality

Service Quality Customer Customer

Satisfaction Retention

Product Quality

Competitive

Innovation Growth Rate Market Share

Shareholder Profitability

Value Creation

12
It has been found that some customers are, by native tendency, more likely to move while

others are not. Therefore even for some level of satisfaction or dissatisfaction, some

customer will remain with the brand they are loyal to while others will switch. Simply

because they are more prone to taking risks and more easily susceptible to the blandishments

of competitors and inherently more fickle. This can be represented in four way matrix as

given below.

High 1. Safe Customer Habitual Switches

Satisfaction with 3. The Patient ones Highrise

Production

Low

Customer Classification by Satisfaction and Mobility

1. The Safe Customers are those who are satisfied and not likely to move.

2. The habitual switches are happy and still likely to switch.

3. The patient ones will stay on regardless but should not be taken for granted. Their

satisfaction can be improved profitably as they are inherently less likely to

switch..

Today’s customers are global and have high degree of need for congrition, recognition,

approval and respect. So many companies believe that customer satisfaction can make the

company more profitable to some extent as

 It as a more process aimed at enhancing customer share.

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 It builds goodwill in the market, which in turn generates additional traffic to the

outlet.

 It is a real experience and a rich insight is to customer’s min to hit the bull’s eye with

carefully designed marketing strategies

 A highly effective technique is to keep of buying habits, intentions, self image,

spending patterns, customer develops a sense of belonging in then and a soft corner

for the company itself.

 Higher customer retention index, customer lifetime value, loyalty and satisfaction

level increase transactions with the same customers again and again.

 A highly effective system of communication helps in developing positive attitude in

customer mind about the company its offerings.

WHAT MARKETING SHOULD DO

 Companies should establish a separate relationship market to prepare, implement and

monitor their relationship marketing program.

 Company should not rely totally on technical people but employ relationship

managers who well equipped with marketing Communication and interpersonal

skills.

 An integrated marketing system is a pre-requisite for building relationship with

customers.

 Companies should continuously search for value building approaches through a

system of quality management review process, etc., because only by exceeding

customer expectations, marketers can build a value laden relationship with customers.

 As said before to satisfy a customer and to retain customer relationship marketing is

important.

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Methods of Tracking and Measuring Customer Satisfaction

The various methods generally adopted to track customer satisfaction are :

a) Complaint & Suggestion system

b) Customer satisfaction survey

c) Ghost Shopping

d) Lost Customer analysis

a) Complaint & Suggestion system

A Customer’ centered organization would make it easy for its Customers to deliver

suggestion and complaints. Some customer centered companies – P & G, General Electric,

Whirlpool established “Customer hot lines” with toll free 800 telephone numbers to

maximize the ease with which customers can enquire make suggestion, or complaints. Their

information flows provides these companies with many good ideas and enable them to act

more rapidly to resolve problems.

b) Customer satisfaction surveys

A company must not conclude that it can get a full picture of customer satisfaction and

dissatisfaction by simply relaying on a complaint and suggestion system. Studies show that

customer are dissatisfied with one out of every four purchases and less than 5% of

dissatisfied customers will complaint customer may feel that their complaints are minor, and

they will be made to feel stupid or that no remedy will be offered. Most customers will by

less or switch the supplier than complaint. The result is that the company has needlessly lost

customers.

15
 Therefore, companies can’t use complaint level as a measure of customer satisfaction.

Responsive companies obtain a direct measure of customer satisfaction by conducting

periodic surveys. They send questionnaire or make telephone calls to random sample of

their recent customers to find out how they feel about various aspects of the company’s

performance.

Customer satisfaction can be measure in a number of ways. It can be measured directly by

asking “indicate how satisfied you are with service” on the following scale, highly

dissatisfied, indifferent satisfied, highly satisfied (Directly reported satisfaction).

Respondents can be asked as well as to rate how much they expected of a certain attribute

and also much. They experienced (desired dissatisfaction) still another method to ask

respondents to list any problems they had with the offer and to list any improvements they

could suggest (Problem analysis) finally, companies could ask respondents to rate various

elements of the offer in items of the importance of the each of and how were the organization

performed each element (important performance ratings). Its last method helps the company

to know if it is under performing on important elements and over performing on relatively

unimportant elements.

C) Ghost shopping

Another useful way to gather a picture of customers satisfaction is to hire persons to pose as

potential buyers to report their finds on strong and weak points they experienced in buying

the company’s and competitors products.

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 d). Lost Customer Analysis

Companies should contact who stopped buying or who have switch to another supplier to

learn why this happened. When IBM loses a customer, they amount through effort or learn

where they failed is their price too high, their service deficient their products unreliable and

so on. Not only it is important to conduct exit interviews but also to monitor the customer

loss rate, which if its increasing clearly indicated that the company is failing to satisfy

customers.

Some cautions in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the company’s performance say

delivery, we need to recognize that customers will vary in how they define food delivery ; it

could mean early delivery on time ; delivery order completeness, and so on. Yet if the

company had to sell out every element in detail customers would face huge questionnaire.

Companies should also note that managers and sales persons could manipulate their ratings

on customer satisfaction. They can be especially nice to customers just before the survey.

They can also try excluding unhappy customer form being included in the survey.

Some customers may want to express high dissatisfaction in order to receive more

concession.

E. Lost Customer Analysis.

Companies should contact who stopped buying or who have switch to other supplier to learn

why this happened. When IBM loses a customer, they amount through effort or learn where

they failed is their price too high, their service deficient their products unreliable and so on.

Not only it is important to conduct exit interviews but also to monitor the customer loss rate,

which if its increasing clearly indicated that the company is failing to satisfy customer.

17
Some caution in Measuring Customers Satisfaction

When customers rate their satisfaction with an element of the company’s performance say

delivery, we need to recognize that customers will vary in how they define food delivery; it

could mean early delivery on time; delivery order completeness and so on. Yet if the

company had to sell out very element in detail customers would face huge questionnaire.

Companies should also note that managers and sales persons could manipulate their ratings

on customer satisfaction. They can be especially nice to customers just before the survey.

They can also try excluding unhappy customers from being included in the survey. Some

customers may want to express high dissatisfaction in order to receive more concession.

Observation on customer satisfaction

1. Customer satisfaction will be lower in industries where the industry offers a

homogenous product to a heterogenous market. On the other hand. Industries

that supply a high quality homogenous product to homogenous market will

register high satisfaction.

2. Customer satisfaction is lower an industries where repeal buyer faces high

switching costs. They have to but from the supplier even through their

satisfaction is low.

3. Industries which depend upon repeat business generally, create a higher level of

customer satisfaction.

4. As the company increase its market share customer satisfaction call fall. This is

because more customers with heterogeneous demands are drawn into buying a

fairly homogenous product.

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Post Product Behavior

After purchasing the product the customer will experience some level of satisfaction or

dissatisfaction. The customer will engage in post purchase actions and product uses of

interest to the marketers. The marketers job does not end when the product is bought but

continue into the post purchase period. The buyer’s satisfaction is function of the closeness

between the buyer’s product expectations the customer buts the product again and talks

favorably or unfavorably about the product to others.

Customers from their expectations on the basis of received. Messages from sellers, friends

and other information sources. If the seller exaggerates the benefits, consumers will

experience disconfirmed expectations, which lead to dissatisfaction. The larger the gap

between expectations and performance, the greater the consumer’s dissatisfaction.

Post Purchase Action

The Customer’s satisfaction or dissatisfaction with the product will influence subsequent

behavior. If the customer is satisfied, he or she will exhibit a higher probability of

purchasing the product main. The satisfied customer will also tend to say good things about

the brand to others. Marketers lay ‘or best advertisements is the satisfied customer :.

A dissatisfied consumer responds differently. The dissatisfied consumer will try to reduce

the dissolvance because a human being strives to establish internal harmony “ consistency or

congruity among his opinions, knowledge and values.

Marketers should be aware of the full range of ways consumers handle dissatisfaction.

Consumers have a choice between taking and not taking any action. If the former, they can

take public action or private action. If the former, they can take public action or private

19
action. If the former, they can take public action or private action. Public action includes

complaining to the company going to lawyer or complaining to other groups that might help

the buyer gets satisfaction. Such as a business private or government agencies or the buyer

might simply stop buying the product or warn friends. In all these cases the seller losses in

having done a poor job of satisfaction to the customer.

System for complaints handling & service recovery

Studies of Customer dissatisfaction show that customer are dissatisfied with their purchases

about 25% of the time. But surprising finding is that only about 5% complain. The other

95% either feels that it is not worth the effort to complain or that they don’t know how to

whom to complain.

Of the 5% of customers who complain, only about 50% report a satisfactory problem

resolution. Yet they need to resolve a customer problem in a satisfactory manner is critical

where as on average a satisfied customers tells three people about a good product experience

dissatisfied customer groups to people. If each of them tells still other people the number of

exposed to bad work of mouth may grow exponentially.

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 CHAPTER III

Profile of Honda

HONDA MOTOR COMPANY LTD.

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 a dedicated 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 ASIMO robot in 2000. They have also ventured into Aero space

with the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420HondaJet,

scheduled to be released in 2011. Honda spends about 5% of its revenues into R&D.

History

From a young age, Honda's founder, Soichiro Honda (November 17, 1906 -August 5, 1991)

had a great interest in automobiles. He then established the Honda Technical Research

Institute in Hamamatsu, Japan, to develop and produce small 2-cycle motorbike engines.

Calling upon 18,000 bicycle shop owners across Japan to take part in revitalizing a nation

torn apart bywar, Soichiro received enough capital to engineer his first motorcycle, the

21
Honda Cub. This marked the beginning of Honda Motor Company, which would grow a

short time later to be the world's largest manufacturer of motorcycles by 1964.

Philosophy

HMSI operates on a principle, which is followed worldwide by all Honda companies.

Maintaining a global viewpoint, we are dedicated to supplying products of the highest

quality, yet at a reasonable price for worldwide customer satisfaction. Honda's philosophy is

based on the company's guiding principle and advocates 2 fundamental beliefs:

Respect for the Individual

Honda recognizes and respects individual differences. The respect for individual stems from

the following three points:

 Initiative

 Equality

 Trusts

It is the contribution from each individual in the company that has made our company what it

is

today and that, which will take us into the future.

The Three Joys

 The joy of manufacturing high quality products.

 The joy of selling high quality products.

 The joy of buying high quality products.

22
Motorcycles

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 3 million motorcycles

annually. By 2006 this figure had reduced to around 550,000 but was still higher than its

three domestic 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. 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 out-competed by its Japanese competitors. The

report concluded that the Japanese 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 and scope.

The second explanation was offered in 1984 by Richard Pascale, who had interviewed the

Honda executives responsible for the firm’s entry into the U.S. market. As opposed to the

tightly focused strategy of low cost and high scale that BCG accredited to Honda, Pascale

23
found that their entry into the U.S. market was a story of “miscalculation, serendipity, and

organizational learning” – in other words, Hondas success was due to the adaptability and

hard work of its staff, rather than any long term strategy. For example, Honda s initial plan

on entering the U.S. was to compete in large motorcycles, around 300 cc. It was only when

the team found that the scooters they were using to get themselves around their U.S. base of

San Francisco attracted positive interest from consumers that they came up with the idea of

selling the Super cub.

Awards

2011

"Indian Motorcycle of the Year 2011 (IMOTY)

Jury:BS Motoring , Bike India , BBC Top Gear , Overdrive , AutoBild India ."

Bike of the Year – CNBC TV18 Overdrive Awards 2011

Bike of the Year - Bloomberg/UTV Autocar Award 2011

Viewer’s Choice Award: Bike of the Year - Bloomberg / UTV Autocar Awards 2011.

CB Twister

"The Most Awarded Motorcycle of the Year - 2011"

Bike of the Year - BS Motoring Award 2011 .

Bike of the Year upto 110CC – Bike India .

Motorcycle upto 110CC - NDTV Car & Bike Awards 2011.

Premium 100CC Motorcycle - Zigwheels Awards.

Entry Level Motorcycle of the Year - Auto Bild Golden Steering Awards.

24
CB Unicorn Dazzler

Motorcycle upto 160CC – NDTV Car & Bike Awards 2011.

Sporty Motorcycle upto 180CC – Zigwheels Awards .

Premium Motorcycle of the Year - Auto Bild Golden Steering Awards.

VFR 1200F

Superbike of the Year – TopGear

Automotive Technology of the Year - Zigwheels Awards

Brand Honda

" Most Reliable Brand - Advanced Technology Brand

by Auto India Best Brand Survey Awards 2011"

Motorsport

Honoured for 'Promoting 2Wheeler racing in India'

2010

Brand

" Most Reliable Brand

- Advance Technology

- Quality

By Apollo Auto India Best Brand Awards 2010"

Trusted Brand Award (Gold) for Two-wheeler: Readers' Digest.

25
CB1000R

Import Two - Wheeler of the Year NDTV Profit Car & Bike Awards 2010.

CB1000R

Import Bike of the Year - AutoCar Awards 2010.

CBR1000RR

Fireblade

Performance Bike of the Year - CNBC TV 18 Overdrive Award.

2009

CBF Stunner Bike of the Year - NDTV Profit Award 2009

Aviator Scooter of the Year - NDTV Profit Award 2009

Activa Scooter of the Year - ET ZigWheels Awards 2009

2008

Aviator Scooter of the Year - [Link]

CBF Stunner Motorcycle of the Year (125 C C ) - [Link]

Activa Scooter Customers Satisfaction No.1 - CNBC TV18 - Auto Car "Auto

Awards 2008.

Brand

-Well Made Bike 2008

26
-Advanced Technology 2008

-Overall 2008

Honda

-Eco-Friendliness 2008

-Resale Value 2008

By Apollo Tyres - Auto India "Best Brand Survey Awards 2008.

2007

Enter no Best automobile brand of India 2007 (Planman Media)

Activa Best automobile brand of India 2007 (Planman Media)

2006

Shine TNS Voice of The customer Award 2006 (TNS)

2005

Unicorn Motorcycle of the Year 2005 (B.S. Motoring & auto car)

Unicorn TNS Voice of the Customer Award (TNS)

Enter no Scooters of the Year 2005 (B.S. Motoring & Overdrive)

2004

Enter no Best Scootes of the Year (B S. Motoring & ICICI Bank, Overdrive

Magazine)

2003

Dio Scooter

of the Year 2003 (BBC)

27
2002

Activa Scooter of the Year by Overdrive Magazine

2001

Activa Scooter of the Year 2001 (BS Motoring).

Tokyo, April 28, 2010--- Honda Motor Co., Ltd. today announced its consolidated financial

results for the fiscal fourth quarter and the fiscal year ended March 31, 2010.

Fourth Quarter Results

Honda’s consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal fourth

quarter ended March 31, 2010 amounted to JPY 72.1 billion (USD 776 million), an increase

of JPY 252.1 billion from the same period in 2009. Basic net income attributable to Honda

Motor Co., Ltd. per common share for the quarter amounted to JPY 39.78 (USD 0.43), an

increase of JPY 138.95 from the corresponding period last year. One Honda American

Depository Share represents one common share.

Consolidated net sales and other operating revenue (herein referred to as “revenue”) for the

quarter amounted to JPY 2,279.5 billion (USD 24,501 million), an increase of 27.8% from

the same period in 2009, due primarily to increased revenue in all of the business segments

and currency translation effects. Honda estimates that had the exchange rates remained the

same from the corresponding period in 2009, revenue for the quarter would have increased by

approximately 25.4%.

28
Consolidated operating income for the quarter amounted to JPY 96.0 billion (USD

1,033million), an increase of JPY368.2 billion from the same period in 2009, due primarily to

increased profit attributable to increased revenue, reduction in vehicle costs as a result of

increased production and decreased SG&A expenses.

Consolidated income before income taxes and equity in income of affiliates for the quarter

amounted to JPY 93.5 billion (USD 1,006 million), an increase of JPY 392.2 billion from the

same period in 2009.

Equity in income of affiliates amounted to JPY 23.8 billion (USD 257 million) for the

quarter, an increase of JPY 21.1 billion from the corresponding period last year.

Fiscal Year Results

Honda’s consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal year

ended March 31, 2010 totaled JPY 268.4 billion (USD 2,885 million), an increase of

95.9%from the previous fiscal year. Basic net income attributable to Honda Motor Co., Ltd.

Per common share for the period amounted to JPY 147.91 (USD 1.59), an increase of JPY

72.41from the previous fiscal year.

Consolidated revenue for the period amounted to JPY 8,579.1 billion (USD 92,210 million),

a decrease of 14.3% from the previous fiscal year, primarily due to unfavorable currency

translation effects and decreased revenue in the automobile business. Honda estimates that

had the exchange rate remained the same as the previous fiscal year, revenue for the period

would have decreased by approximately 7.5%.

29
Consolidated operating income for the period totaled JPY 363.7 billion (USD 3,910

million),an increase of 91.8%, due primarily to decreased SG&A expenses and R&D

expenses and continuing cost reduction efforts, despite decreased profit attributable to

decreased revenue ,the unfavorable impact of currency effects and the increase in fixed costs

per vehicle as a result of reduced production.

Consolidated income before income taxes and equity in income of affiliates for the period

totaled JPY 336.1 billion (USD 3,613 million), an increase of 107.9% from the previous

fiscal year.

Equity in income of affiliates amounted to JPY 93.2 billion (USD 1,003 million) for the

period, a decrease of 5.8% from the previous fiscal year.

Racing

Honda has always played an important role in motor sports, believing it to be the springboard

for technological advancement.

It has also been an aggressive force in the endurance, motocross and trial races held around

the world. We, at Honda, are not allowing this momentum to let up, as we pursue even

greater achievements.

Honda has always loved racing, ever since Sochiro Honda took his company into motorcycle

competition, sometime in the 1950s. Hondas engineers have tested themselves on the

international stage, proving their technology to be the best in the world. These technologies

are tested in the extreme conditions of motorcycle racing, to adapt them for use in vehicles

that ply on roads today.

30
In the past, Honda has powered some of the all time great racers, including Redman, Hail

wood, Spencer, Gardner, Capirossi and Doohan, to 39 riders titles. Even today, some of the

greatest motorcycle racers, like Alex Baros, Max Biaggi, Nicky Hayden ride on Honda bikes,

at the races.

Honda enters the Isle of Man TT Races in 1959 Honda is an active participant in many off-

road races Michael Doohan riding Repsol Honda's NSR 500.

Technologies like these are not just for the race tracks, but are also incorporated in our

everyday vehicles. They are first tested, refined and proven under the trying conditions in the

races, and then finally adapted in the vehicles, so that two wheelers like Activa and Dio can

utilise and benefit from such technologies.

PROFILE OFVISHNU HONDA.

HISTORY :

SRI Vishnu Honda motors Authorised dealer of Honda Company in Visakhapatnam.

Operation in October 2007. which is now popularly known as Vishnu Honda?

From Monthly Sale of 160 Two wheelers initially it has reached a monthly sales volume

250nos. (3000 per annum). This spectacular growth is mainly due to aggressive, clear headed

management and with sheer hard work of every staff member and above all out standing

customer support.

Vishnu Honda captured 25% of Visakhapatnam two and wheelers market successfully

standing with the challenges from competition. As of now Vishnu Honda. has a work force

of 70 members, with an annual turnover of Rs. 12 crores. They have also opened a separate

service station for better customer care.

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PROMOTIONAL ACTIVITIES OF VISHNU H0NDA

The promotional activities adopted by Vishnu Honda motors are:

1. Test Rides

2. Exchange Melas

3. Mileage Contest

4. Loan Melas

5. Harding & Wall Paintings

6. Sponsoring youth Events.

7. Financing in the spot

8. Distributing pamphlets

9. Advertising in news paper

SERVICE DEPARTMENT

Head : Shiva

1.. 6 Free Services and nine Paid Services for active aviator dio shine cbr250etc.

2. 6 Free Services and 14 Paid Services for 125CC and 150CC Vehicles.

3. Extended warranty also giving to all models. except twister

4. Free Checkup Camp. For [Link]

5. Engine over hauling for all Post Warranty Vehicle.

6. We are giving warranty for fuel adultration for single time.

7. Total Workers are 42 members.

8 After Free Services 200 rupees Charged.

32
 WORKING TIME

MORNING 8AM TO 1P.M EVENING 2PM TO7:30 P.M.

PRODUCTS AVAILABLE IN Vishnu Honda motors

[Link]. Scooter Motor Cycle Mopeds 3 wheelers.

1 Dio nil

2 Activa

3 Aviator

4 Shine

5 Unicorn

6 Stunner

7 Dazzler

8 Twister

9 CBR 250

Spare Parts

Spare Parts Incharge – SIVA

Input : Every Month Purchase of of Spare Parts Company of Honda Motor (Delhi)

Out put: Sols of Spare parts – work shop of Honda Show Room out side Mechanics

and Customers .

Total Spare Parts above 11,000 Parts.

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Finance Level

1. The VISHNU HONDA Provides sum finance facility to the customers. The

finance facility Banks are

a. HDFC

b. Family Credit (Pvt)

c. Sriram Finance

d. fulletron

The finance lever provides interest rate Rs. 1per 100. The customer paid minimum 30% of

the Vehicle Amount. The finance facility taken by the above 6000 people of them.

Sales Team

Sales Manager :S.K..V CHANDARA SEKHAR There are four executives monthly they

are sold 400 vehicle. They provide 12% Interest rate. Incentive given by company per

vehicle 1000 to 1500 Rupees of them.

The demand is very more for Honda Bikes there are 50% of Bikes Purchase by spot cash

50% Vehicle side Finance Purchase.

They are not giving any offer to vehicle some times company giving insurance offer. More

sales for [Link]

34
ACHIEVEMENTS

They are good in Customer Dealership Enquiries and giving good facilities to Customer.

ORGANISATION STRUCTURE

PROPRIETOR

CHIEF EXECUTIV

GENERAL MANAGER

SALES Dept. Accts. Dept Work Dept. Spares Dept.

Group Leaders Accts Works Manager spare in Charge

Sales Executive service Manager Asst. Spares

Supervisors

Mechanics

35
 CHAPTER - IV

ANALYSIS OF STUDY

AGE

Number of

Age Group Respondents %

18-25 28 43

26-35 10 15

36-45 09 14

46 above 17 26

TOTAL 64 100

From this table, we can infer that 43% of the two wheeler users are between 18 to 25 years of

age and another 14% are between 36 to 45 years of age. 15% of the bike users are between

26 to 45 years of age. 26%users are above 46 years of age.

36
 EDUCATION

Number of

Qualification Respondents %

School Education. 07 11

Under Graduate 32 50

Graduates 11 17

Post Graduates 14 22

TOTAL 64 100

17% of the respondents are Graduates and 50% are Under Graduates. From this we can infer

that 67% of the bike users are under graduates or Graduates. 11% have only school

education. Only 22% are post graduates.

37
 FAMILY ANNUAL INCOME

Number of

Income Respondents %

Below 50 K 0 0

51 K - 1 Lakh 39 61

1 Lake - 2 Lakhs 22 34

2 Lakes - 5 Lakhs 3 5

above 5 Lakhs 0 0

TOTAL 64 100

It is surprising to note that 95% of the bike owners are having annual income less than 2

lakhs. In this 5% are having income between 2 lakhs to 5lakhs. Though this looks un

reliable, generally respondents do not reveal their real incomes. They have quoted their

incomes as per the Ration Cards they possess.

38
 OCCUPATION

Number of

OCCUPATION Respondents %

Students 51 80

Employee 00 00

Business 11 17

Any other 02 03

TOTAL 64 100

80% of the bike owners are students and 17% are buiness people. Only 3% are any other.

39
 Duration of Usage of the Vehicle

Number of

Duration Respondents %

Less than 1 year 24 37

1 year to 2 years 00 00

2 years to 5 years 11 17

5 years to 10 years 29 46

above 10 years 00 00

TOTAL 64 100

37% of the vehicle owners are using the vehicle from less than a year. 17% are using the

vehicle since 5 years. 46% of the users are using a vehicle for a maximum of 5 years.

40
 BRAND PATRONAGE

Number of

BRAND Respondents %

Activa 15 23

Dio 08 13

Aviator 02 03

Shine 15 23

Unicorn 14 22

Dazzler 01 02

Twister 02 03

Stunner 06 09

CBR 01 02

TOTAL 64 100

Activa and shine are the most popular models of Honda each contributing 23%. Next

popular is unicorn with 22%.67% of the two wheelers sold are either Activa Shine or

Unicorn.

41
 REASONS FOR CHOSING HONDA

Number of

REASON Respondents %

Price 52 82

Promotion 00 00

Appearance 12 18

Technology 00 00

Any other 00 00

TOTAL 64 100

While choosing Honda and a particular model, the customers are influenced by the price of

the bike. Limited importance is given to Appearance of the vehicle.

42
 INFLUENCER

Number of

Person Respondents %

Self 02 04

Family members 02 04

Friends 60 92

Any other 00 00

TOTAL 64 100

92% of the customers have decided to buy Honda Vehicle influenced by their friends. 4% are

influenced by their family members and Self.

43
 REASON FOR CHOSING THE DEALER

Number of

REASON Respondents %

Local Dealer 37 58

Service Dealer 27 42

Schemes 00 00

Finance Facility 00 00

Any other 00 00

TOTAL 64 100

58% of the customers have brought the vehicle from the particular dealers because he is alone

dealer. 42% have preferred because the dealer is also a service dealer. Schemes and finance

facility have no impact on dealer choice.

44
 SERVICE RATING

Number of

Rating Respondents %

Excellent 00 00

Good 19 30

Average 18 29

Not Satisfied 27 41

TOTAL 64 100

41% of the customers are not satisfied services of the dealer Sree Vishnu Honda motors. 30%

as Good and 29% are average.

45
 COST OF SPARES & SERVICE

Number of

Rating Respondents %

High 04 06

Slightly high 51 79

Reasonable 09 14

Cheap 00 0

TOTAL 64 100

79% of the customers perceive the cost of service and spares slightly high. Only 6% and 14%

are felt that it is high and reasonable.

46
 LOYALTY TO DEALER

Yes 16 25

No 48 75

TOTAL 64 100

75%of the customers not satisfied with service of Vishnu Honda. They do not want to get

service from this dealers after free services.

47
 CHAPTER-V

SUMMARY AND SUGGESTIONS

SUMMARY

Honda is a major player in Two wheeler market. In India almost every second motor cycle

sold is from Honda. It is has many award to its credit

How strong the brand may be, every organization has to strive to improve customer

satisfaction. With increasing competition and customer expectations, Customer Satisfaction

is the key to success of any organization.

Dealers play a very important role in the marketing of any product. Their role is vital mainly

in the case of consumer durables in general and automobiles in particular. Unlike majority of

consumer durables, automobiles need periodic maintenance. Two wheelers have a peculiar

feature as they are used by common man who hardly has any

knowledge of the functioning or repairing of the vehicle, dealers’ role is very important.

Dealers can enhance or tarnish the image of the company and the product how ever good it

may be.

The strength of Honda motors is its channel partners, and service availability every where.

The findings of the study are summarized below:

 Majority of the Honda customers are in the age group of 18 to 25 years.

 Majority of them are under graduates.

 Honda two wheeler customers are middle class and upper middle class.

 Normally a customer uses a Honda vehicle to a maximum period of 10 years

 Activa, Unicorn and Shine brands are bread winners to Honda.

 Customers buy Honda for its technical features like mileage, easy maintenance,

48
 superior technology etc.,

 Customers buy Honda influenced by their friends.

 Customers normally prefer local dealers and service dealers for buying a vehicle.

 The dealer at Visakhapatnam Vishnu Honda motors is rated high by the

customers for service and are not loyal to them for after free services are over

 Cost of spares and service is slightly high.

SUGGESTIONS

Regular availability of all models should be ensured. Efforts have to be taken to

ensure no stock outs for Activa, Unicorn and Shine. Dealer has to put efforts to improve

quality of after sales service as majority opined that they would not prefer the dealer after free

services. Dealer and Company should ensure availability of flagship brand Activa. Due to

non availability, majority of the prospective customers are shifting to other company brands.

Customers are suspecting the dealers role in sticking to booking schedule. Efforts to be taken

to ensure transparency in booking. Customer feedback system after sale and service would

improve the image of the dealer. Dealer has to tie up with banks to provide finance at

competitive interest rates. Dealer has to be aggressive in marketing the vehicles as they face a

very tough

competition from local Honda Dealer i.e., Jupiter Honda

Dealer as well as the company has to put all efforts to enhance the image of the

brand as well as the dealership.

49
 BIBLIOGRAPHY

Philip kotler- Principels of Marketing ,Prention-Hall of India. Pvt ltd New Delhi(1999).

Jagdish [Link] Atul Parvatiyar –Relationship Marketing-A division of stage publication

New Delhi.(2000).

Philip Kotler- Marketing Management-– (In India, Bangladesh, Nepal).

Pearl , Jack & Robyn. Marketing Channels A Division of Holt, Rinehart & Wiston(1978).

[Link] Swamy,[Link] – Marketing Management(Planning & Implementation &

Control)- Rajiv Beri for Macmillan Indian ltd .New Delhi(2002).

www.Honda2wheelers India,com.

50
 Questionnaire

Name : Town/Village:

Reg. No. Model Year of Manufacture:

1. Age ( Years) : a. 18-25 c. 35-45

b. 25-35 d.45 above

2. Qualification : a. Under Graduate

b. Graduate C. Post Graduate

d. Any Other

[Link] annual Income : a. below 50,000 b. 50,000 to 1,00,000

c. 1-2lakhs. d. 2-5lakhs.

e. above five lakhs.

[Link] : a. Student b. Government Employee

C. Private Employee. d. Business

e. Any Other (Specify)

5. What type of two wheeler do you own?

a. Scooter b. Motorbike c. Any Other(specify)…………………….

51
6. Since how long are you using the particular two wheeler ?

a. Less than 1 year b. 1-2 years c. 2-5years

d 5-10years e. Above 10 years

7. Specify the brand of two wheeler do you own ?

a. Activa b. Dio c. aviator d. shine

[Link] [Link] g. twister h. Stunner i. CBR250

8. You preferred the particular brand because of

a. Price b. Promotion c. Appearance d. Technical Factors

e. Any Other (Specify)…………………………………..

9. Who influenced you to purchase the two wheeler ?

[Link] [Link] c. Friends [Link] e. Any Other (Specify)

10. Why did you choose ‘Vishnu Honda .

a. Local dealer. b. Service dealer. c. Schemes

52
 d. Finance availability. e. Any Other (Specify)………………………

11. Are you satisfied with the Vehicle ? a. Yes b. No

12. If No. The reason is

a. More petrol consumption/less Mileage. b. Less Pick Up

c. Non availability of spares d. Any other (Specify)………………………………..

13. How would you rate service offered by ‘Vishnu Honda., for your two wheeler ?

a. Excellent b. Good c. Average d. Not satisfied

14. How do you rate the cost of spares and service charges charged by ‘Vishnu Honda ,

a. High b. Reasonable [Link]

15. Do you prefers to get your Vehicle serviced at Vishnu Honda , after free services also.

a. Yes b. No.

53