CHAPTER I

INTRODUCTION TO MARKET POTENTIAL

INTRODUCTION
Market Potential is demand for synthetic paper is increasing day by day in view of making
envelopes for despatch of magazines, books etc. Because of its strength, good printability,
weather resistance, synthetic papers/envelopes are preferred. They are also used for making
posters, banners, sign boards etc.
Market potential analysis is a system used by businesses to analyze a potential market with
the aim of finding out how viable such a market is with regard to the product that the
company has to offer. As such, it can be used by those companies with a product or service
they want to introduce into the market. This type of analysis will help businesses identify the
strongest markets and also enable them to allocate their resources more effectively.
One of the reasons for conducting a market potential analysis could be for the purpose of
identifying potential customers in a new or already existing geographical location. For
instance, if a company based in Canada has a new product it wants to introduce into the
market, it will first carry out a market potential analysis within its environment to identify the
potential customers. The analysis might span several cities or several states. The result will
inform the company of the areas of concentration based on where the most potential
customers are located.
The same company could also carry out a market potential analysis of other geographical
locations when it is thinking of expanding sales. Such a move is necessary due to the increase
in globalization and the advantages offered by international trade. As such, the company
might conduct a market potential analysis of several countries. The result of the analysis will
reveal to the company where the greatest cluster of potential customers are located. This
information will allow the company focus on the markets with the greatest potential in terms
of customer base.
Another reason for conducting a market analysis could be to find out where there might be a
wealth of untapped resources or potential. Transition to such a market might require a
combination of market analysis, strategic design management, and effective marketing
targeted to that specific market in order to benefit from it. For instance, a company producing
a certain type of product that does very well in one market might also benefit from packaging
or designing the product in a manner that it will be accepted by other markets.
2

NEED FOR THE STUDY

Market potential: The market forecast shows expected market demand, not maximum
demand. For the latter, we have to visualize the level of market demand resulting from a very
high level of industry marketing expenditure, where further increases in marketing effort
would have little effect in stimulating further demand, market potential is the limit
approached by market demand as industry marketing expenditures approach infinity for a
given marketing environment.
Although there have been studies on market potential, its application and effects on
two wheelers industry seen to be unimpressive. Hence this study will be valuable contribution
in analyzing market potential. And its effects as the organization due to fast changing
developments in economic and industrial scenario, improving the performance of
organization is essential as a result undertaking an academic study on market potential will be
a welcome step. This study will definitely helpful in achieving the organization effectiveness
and its market share.
Success of the business hinged on sound decisions are the outcomes of relevant clear,
complete, accurate, timely, objective and authentic. Information about the customers
perception, source of awareness, impact of advertisements their level of satisfaction, the
factors inflecting the customers performance, customers opinion regarding the technological
advancement and about the competitors.

OBJECTIVES:1. To find out the market potential about the Honda two wheelers
2. To identify the market share of two wheelers.
3. To know market share of other competitors brands.
4. To find out the customer satisfaction.
5. To find out the factors that customer consider while purchasing bike.
6. To know the effectiveness of advertisement.
7. To know overall performance of Honda when compare to others.
3

Scope of the study:Market potential is one of the important tools in the marketing field. It
is very important to know the potential of the market to promote services effectively. It
conveys the message to marketers about the buying pattern then towards purchasing. Almost
all the business organizations rely on this to sale their products and services they conduct
studies on market potential.
This study offers helps to put the theoretical aspect and to develop
over all view of the two wheeler sector in the company. The study of this nature aims to give
information about competitors, demand for two wheelers. It understands the selling
mechanism and various techniques involved in the marketing two wheelers. The study also
gives the information about market potential FORTUNE MOTORS PRIVATE LIMITED .

The study offers and extended scope for further research with
relevance of other product categories and also to reach wider area coverage. Overall
scope of the studies is to understand market potential towards HONDA TWO
WHEELERS .

RESEARCH METHODOLOGY:The survey technique is intended to secure one or more items of information from a
sample of respondents who are representatives of a larger group. The information is recorded
on a form know as questionnaire.
As data are gathered by asking questions from persons who are believed to have
desired information, the method is also known as questionnaire technique.
RESONS FOR WIDE USE OF THIS METHOD:
1. It can secure both quantitative and qualitative information directly from the respondents.
2. It is the method of directly measuring attitudes and motivations.
3. It is quite flexible in terms of the types of data to be assembled, the method of collection or
the timing of research.
A questionnaire is simply a formalized set of questions for electing information. As such, its
function is measurement and it represents the most common form of measurement in
marketing research. Although the questionnaire is generally associated with surveys, it is also
frequently the measurement instrument in experimental designs as well. When a
questionnaire is administered means of telephone or by personal interview, it often is termed
interview schedule or simply schedule.

DATA COLLECTION
For the purpose of study the necessary data has been collected from the primary and
secondary sources.
The study was conducted by a random survey and was administered through
questionnaire. The data collected was/is primary data. This was conducted to know the
behavior of the consumers in Hyderabad city and the response was very much satisfactory.
The questionnaire was mixed one which constitutes open ended and close ended questions.
Multiple choices, dichotomous.
It was not possible to approach all the consumers in the city and so the sample size
was limited to 100 people. Segmented in to students, employees and profession wise.

The secondary data is obtained from different published documents and reports of
HONDA Company profile.
QUESTIONNARIE INVOLVES SEVEN BASIC STEPS

Primary consideration

Question content

Question wording

Response forma

Question sequence

Physical characteristics of questionnaire

Perfect

For quantitative research the primary data collection instrument is the

questionnaire. Which can be sent through the mail to selected respondents for selfadministration or can be administered by trained interview in person.
Consumers are often reluctant to take to respond to surveys. For this reason
researchers have found that questionnaires must be interesting objective unambiguous, easy
to complete and generally burdensome to motivate respondent to answer truthfully and
completely. To ensure Validity, questionnaires are pretested and bugged before wide spread
distribution.
The format of questionnaire and the wording and sequence of the Question, affects the
validity of the response.
The questionnaire itself can be disguised and undisguised as it to its true purpose. A disguised
questionnaire yield more truthful answer when compare to the undisguised questionnaire.
Questions can be open ended questions or close ended questions. Open ended question yields
more insight information than the closed ended questions. Close ended questions are
relatively simple to tabulate and analyze, but the answers are limited to the alternative
responses provided.

ADVANTAGES:
1. Versatility
2. Speed
3. Cost

DIS ADEVANTAGES:
1.

Unwillingness of respondent to provide information.

2. Inability of respondent to provide information.

3. Influence of questioning process.

USE OF SURVEY METHODS:

1. We can have a factual survey together with facts.
2. We can have an opinion survey to secure personal opinions or thinking
and a particular matter
3. Interpretative survey can be conducted to probe into personal feeling, motives,
and attitudes of the respondents.

TYPES OF SURVEY:
1. Through mail
2. Telephone
3. Personal interview

RESEARCH PROCEDURE:
1. Briefings from the company
2. Research design and planning
3. Data collection
4. Analyzing the information
5. Qualitative and quantitative studies.

RESEARCH DESIGN AND PLANNING

RESEARCH DESIGN:
For analyzing the collected data, an in-depth research analysis was framed and
various statically tools and techniques were also used for the same purpose.

RESEARCH PLAN:
In the study systematic procedure of collecting the data in order to analyze and
interpret in a methodical way has been adopted. Data collection the collection of information
is ascertained through two principal sources.

PRIMARY DATA:
These are the data which needs the personal efforts of collect it and which are not readily
available .Primary source of data are the other type of sources through which the data are
collected .Data was collected through questionnaires, and direct interviews.

SECONDARY DATA:
It was another important source through which the data were collected. These are the
readily available sources of the data where one had need not put much effort to collect
because it is already been collected and put in elderly manner by some researchers, experts
and specialists . It may be books from library, internet, newspapers, business magazines, and
some journal was also referred.

SAMPLE SIZE:
The size of the sample is 50 respondents.

PERIOD OF STUDY:
The study was undertaken in the month March to April.

RESEARCH APPROACH:Survey method was adopted for collecting the primary data. Survey research is systematic
gathering of data from respondent through questionnaires.

RESEARCH INSTRUMENT:
8

The data for this research study was collected by survey technique using interview method
guided by questionnaire.

METHOD OF CONTROL:
Questionnaire and personal interview are the method that I have used for contacting
customers.

LIMITATIONS:
1. The study is conducted in short period, due to which the study may not be detailed in all
aspects.
2. The study is limited only to be the analysis of different schemes and its suitability to
different investors according to their risk-taking ability.
3. The study is based on secondary data available from monthly fact sheets, web sites; offer
documents, magazines and newspapers etc. as primary data was not accessible.
4. The study is limited by the detailed study of Market Potentiality.

CHAPTER - II

10

Review of literature
"Indian Automobile Sector - A Booming Market" market
research report focuses on the growing Indian auto market
PR Log (Press Release) Jan 18, 2009 This report "Indian
Automobile Sector - A Booming Market" helps clients to analyze the
leading-edge opportunities and the driving factors that are critical for the
success of auto industry in India. Detailed market analysis helps the
potential investors to plot a route through the evolving Indian auto
industry.

Indian Automobile Industry:

Allowance of 100% FDI in Indian auto industry in 2002 made the
industry easily accessible and attractive for the global players. Japanese,
Korean, European, and American OEMs entered the Indian market and
added more than 1 Million four-wheelers during 2006-06.
Indian 2-wheeler industry is the second largest in Asia after China.
The production of 2-wheelers grew at a CAGR of 14.6% from FY2001 to FY
2007. In passenger car segment, most of the Indians still prefer fueleconomic compact cars, but rise in disposable incomes has opened the
roads for luxury cars too in India.
Despite impressive growth, automobile penetration rate is still low in
India. As India is an economically growing country, there exists a huge
untapped growth potential for the automobile manufacturers.

11

Key Findings:
It is expected that per head disposal income in India will grow at CAGR of
12.11% from fiscal year (FY) 2008 to FY 2011. It is likely to boost
purchasing powers of population, and consequently, the sale of
motorcycles and compact cars will increase.
Car stock per 1000 population is expected to increase at a CAGR of
9.14% during the forecasted period from FY2008 to FY2011.
New passenger car registration is expected to grow at a CAGR of 11.41%
during the forecasted period.
In commercial vehicles segment, light commercial vehicles are expected
to register a higher growth rate than the heavy and medium commercial
vehicles from FY2008 to FY 2011.
India had the lowest penetration rate of motorcycles in comparison to
Indonesia, Thailand and Malaysia in 2006, indicating good growth
prospects for the motorcycle manufacturers.

Key Issuesand Facts:

Where does the Indian automobile production stands relative to world
level and Asian level (2007)?
What are the sales of passenger cars in different Asian countries?
What is the country-wise automobile production and sales in Asia?
How attractive is Indian automobile industry?
What is the automobile consumption pattern in India?
What are the driving factors for the Indian automobile industry?
What opportunities and challenges are there for the automobile
manufacturers in India?

Key Players
12

This section provides an overview of the key players in the Indian auto
industry such as Maruti Udyog Limited, Tata Motors Limited, Hyundai
Motor India Limited, Mahindra & Mahindra Limited, Hero Honda Motor
Limited, Bajaj Auto Limited and TVS Motor Company Limited.

Research Methodology Used Information Sources:

The information has been compiled from various authentic and reliable
sources like Books, Newspapers, Trade Journals and White papers, Industry
portals, Government Agencies, Trade associations, Monitoring Industry
News and developments, and Access to more than 3000 paid databases.

Analysis Method
Methods like Historical Trend Analysis, Linear Regression Analysis using
software tools, Judgmental Forecasting and Cause and Effect Analysis
have been used in the report for a prudent analysis.

13

Indian Automobile Sector - A Booming Market:

De-licensing in 1991 has put the Indian automobile industry on a
new growth track, attracting foreign auto giants to set up their
production facilities in the country to take advantage of various
benefits it offers. This took the Indian automobile production from
5.3 Million Units in 2001-02 to 10.8 Million Units in 2008-08. The
other reasons attracting global auto manufacturers to India are the
countrys large middle class population, growing earning power,
strong technological capability and availability of trained manpower
at competitive prices. These are the major findings of our new
report,
In

"Indian

2007-07,

employment

the
to

Automobile
Indian
more

Sector

automotive

than

300,000

industry
people,

BoomingMarket
provided

direct

exported

auto

component worth around US$ 2.87 Billion, and contributed 5% to

the GDP. Due to this large contribution of the industry in the national
economy, the Indian government lifted the requirement of forging
joint ventures for foreign companies, which attracted global to the
Indian market to establish their plants, resulting in heightened
automobile production.

The Indian automobile market is currently dominated by twowheeler segment but in future, the demand for passenger cars and
commercial vehicles will increase with industrial development. Also,
as India has low vehicle presence (with passenger car stock of only
around 11 per 1,000 population in 2009), it possesses substantial
potential

for

14

growth.

Research Methodology Used in the Report Information

Sources:
The information has been sourced from various authentic and reliable
sources like books, newspapers, trade journals and white papers, industry
portals, government agencies, trade associations, monitoring industry
news and developments, and through access to more than 3000 paid
databases.

AnalysisMethod:
RNCOS industry forecast and analysis is based on various macro- and
microeconomic factors, sector and industry specific databases, and our inhouse statistical and analytical model. This model takes into account the
past and current trends in an economy, and more specifically in an
industry,

to

bring

out

an

objective

marketanalysis.

Our industry experts study the relationship between various industry and
economic variables to ensure the required accuracy and desired check on
the quality of data and information given in the report.

15

INDUSTRY PROFILE

INDUSTRY PROFILE
16

Motorcycles have made their debut around the 1950s; this section
looks at the two wheelers which have over the years caught the
imagination of country. It was in the year 1954 that the Indian government
ordered for total number of 800 motorcycles to man the Pakistani borders.
In came the Bullets which were initially launched in England as a 350cc
bike and it was upgraded to 500cc a year or so later. These bikes have
remained

unaltered,

barring

some

cosmetic

changes

which

have

undergone over the years.

Thus one can say without much of a doubt that the 1955 Bullet was
one of the initial hits of the Indian two-wheeler industry and till today it
continues to be a darling of the motorcycle enthusiasts.
Enfield Bullet had a close competition with another sturdy bike named
Rajdoot; as the bike was strong enough to handle the rough Indian
roads. The company had roped in Indian He-man Dharmendra for the
promotion of the bike. With more than 1.6 million vehicles on the road
the Rajdoot motorcycle was one of the initial hits of the earlier years of
two-wheeler

history

in

the

country.

When heavy motorcycles were the order of the day, a relatively lighter
bike had caught on the imagination of the Indian two wheeler user. IndSuzukia bike launched by the then TVS Suzukigroup was an instant hit;
however the bike could not sustain it's initial success due to the high
import content in the vehicle and less of localization.
In scooters Bajaj Chetak has been hugely responsible for adding
momentum to the transport system of the country, till today it remains
one of the most successful brands to have come out of the Bajaj stable.

The scooter is named after the horse of legendary Rana Pratap Singh.
These sets of two wheels have become a part of the Indian milieu and
17

are often considered a representative of the Indian middle class

aspiration. Very few two-wheelers have been able to emulate the
success, which Bajaj Chetak has achieved over the years.
Similarly LML Motors enjoyed a reasonable success with the launch of
LML Select which came with new age technology and improved
performance.
Today newer models of two-wheeler are entering the market everyday,
slowly pushing these names down the memory lane.

MOTORCYCLES IN INDIA
In 1955, the Indian government needed sturdy and reliable motorcycles
for its Army and police to patrol the rugged border highways. The first
batch of 350cc Bullet from the Royal Enfield Company of UK were received
and

assembled

at

Chennai.

The four stroke engine of the motorcycles is fuel efficient and is the main
reason for the growth of motorcycle segment In India. The motorcycle
market share is about 81.5% of the total two wheeler market in India.
Three-fourths of the total exports in the two wheeler automobile industry
are made in the motorcycle segment. Exports are made mainly to South
East Asian and SAARC nations.

Two Wheelers in India

The feeling of freedom and being one with the Nature comes only from
riding a two wheeler. Indians prefer the two wheelers because of their
small

manageable

size,

low

maintenance,

pricing

and

easy

loan

repayments. Indian streets are full of people of all age groups riding a two
wheeler. Motorized two wheelers are seen as a symbol of status by the
populace. Thus, in India, we would see swanky four wheels jostling with
our ever reliable and sturdy steed: the two wheeler.

18

BAJAJ AUTO

HERO HONDA

Kawasaki Ninja*

Bajaj

XCD

Bajaj

Honda

Achiever

Dawn
Discover Hero Honda CD

DTSi

Deluxe

Bajaj Platina

Bajaj

Hero

Kinetic Aquila

Kinetic Comet

Kinetic Stryker

Honda

Glamour

Bajaj Pulsar DTSi

Hero

135 Hero Honda CD

DTS-Si*

KINETIC MOTOR

Bajaj Avenger

Honda

Karizma

Pulsar

200CC*

Hero

Hero

Honda

Passion Plus

Hero

Honda

Splendor

Hero

Honda

Splendor NXG
Hero Honda CBZ XTreme
Hero Honda Hunk
19

LML INDIA

ROYAL ENFIELD

TVS MOTOR

LML Adreno FX

Bullet 350

TVS Apache RTR FI

LML Beamer

Thunderbird

Twinspark

LML Energy FX

Bullet Electra

LML Freedom

Bullet Machismo

LML Graptor

Bullet Machismo

500

20

TVS Flame
TVS Star City
TVS Taurus Fiero
F3*

Two Wheeler Manufacturers

The two-wheeler manufacturers are especially encouraged by the
enthusiasm of the young riders who look for trendy products all the time.
Some of the motorbike manufacturers are also targeting young ladies and
making

bikes

available

that

are

comfortable.

The launch of the Mopeds has revolutionized the entire concept of

transportation for the womens. Mopeds are light weight, easy to drive
and cost effective. In a way- Mopeds are tailor made keeping the needs of
young girls and office going womens in mind.
Such is the craze for bikes, that it comprises the major percentage of the
two-wheeler industry, followed by mopeds and scooters. Now, college
going crowd and youths find bikes smarter and better for transportation.
The best part about a bike is that it provides quick and easy
transportation, and can be parked anywhere around.
Various factors such as the availability of bikes on reasonable rates, auto
loans and higher disposable incomes have contributed to an evident
upsurge in the demand of bikes. There's a marked change in the
preferences of the buyers, as most of them prefer bikes to scooters and
mopeds.

Scooters have been the darlings of Indian masses for long because of the
convenience it provides to the riders. Cheap scooters have been launched
by the manufacturers to reach the wider net of customers. Two-wheeler
manufacturers have also introduced scooters for that are a handy mode of
commuting for the physically challenged.
In India, two wheelers have captured the imagination of young generation
everywhere. They are as much popular in the rural areas as they are in
cities and towns. The easy maintenance, affordable price and ability to
adjust in any kinds of road have made them dear to one and all.

21

Moreover, now-a-days getting finance or a loan has become a trouble free

affair and the numbers of bike riders are only growing with each passing
day. Your two-wheeler also needs your care and attention all the time.
With automobile India, you need not worry about the maintenance tips,
statistics, insurance, finance and latest trends in the two wheeler industry.
It is all there at the click of your mouse.

22

COMPANY
PROFILE

23

Honda Motorcycle & Scooter India Pvt. Ltd

Honda Motorcycle & Scooter India Pvt. Ltd (HMSI) is a wholly owned subsidiary of Honda Motor Company
Ltd.,

Japan.

Honda

is

the

world's

largest

manufacturer

of

2-wheelers.

Honda Motorcycle & Scooter India Pvt. Ltd was established on August 20, 1999 in Manesar near Gurgaon in
Haryana. The foundation stone for the factory was laid on December 14, 1999 and the factory was completed in
January 2001.
Honda Motorcycle & Scooter India Pvt. Ltd initially ventured into scooters as its joint venture agreement with
the Hero Group precluded its entry into the motorcycle segment for five years. The company set new standards
in the Indian scooter industry with the launch of its gearless scooter Honda Activa. Thereafter company
launched its other products: Honda Dio, Honda Eterno, Honda Unicorn and Honda Shine. All the products
launched by HMSI were a big hit in the market.
Research And Development :
Each and every Honda associate takes the customers point of view as we strive tohelp everyone everywhere
share the joy of mobility. Thats why Honda always welcomes new challenges as we work to benefit society and
the environment, today and tomorrow.
Honda is constantly involved in technological research and development to help people now and in the future.
These technologies range from new materials and new sources of energy, to new powertrains for maximum
performance and minimum eco-impact, to new work in decoding the rice genome for various applications.
Currently, Honda is engaged in a project to develop a next-generation clean diesel engine. Another project, in
cooperation with the Research Institute for Innovative Technology for the Earth (RITE), aims to produce ethanol
from cellulosic biomass, a promising, secure supply of environmentally responsible alternative fuel.
Honda also studies human anatomy and physiology so we can make innovative products that enhance safety.
The company conducts original research into new forms of mobility that coexist in harmony with people and
serve society. The latest, most advanced version of ASIMO, Hondas bipedal humanoid robot, now moves
freely, shares tasks with humans, and even recharges itself -- a significant achievement in independent action.
Since its establishment, Honda has always dreamed skyward. This perspective recently led to development of
the advanced light jet HondaJet. With delivery scheduled to start in 2011, Honda has begun construction of its
production facility in the U.S. Thus, Honda always aims higher -- creating value that meets each countrys
needs, bringing products speedily to market, and constantly enhancing our safety and environmental
performance.

24

Where Honda's dreams all began Defining the joy of mobility on two wheels
In 1946, at a time when the mere bicycle was still the chief means of transportation in Japan,
a small, remodeled generator once used to power a radio transmitter was reworked into an
engine and fastened to a bicycle to give it a mechanical boost. This engine was the starting
point of Honda and the beginning of its motorcycle business. In Japan at that time, many
people traveled great distances on bicycles to shop or used a bicycle for commercial
purposes. In response, Honda has maintained the "passion to create products that will bring
joy to many people," without interruption through each successive Honda generation.

The HMSI factory is spread over 52 acres, with a covered area of about 85, 815 square
meters at Manesar, Gurgaon district of Haryana. The foundation stone for the factory was laid
on 14th December 1999 and 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.
The second plant at the Tapukara Industrial Area of Rajasthan, which is approximately 90km
from the center of Delhi, has become operational from July 2011 with annual production
capacity of 0.6 million units. HMSI aims to double the annual production capacity of this
plant to 1.2 million units in March 2012.
25

Cutting-edge technology and the spirit of Honda

Our fundamental design philosophy seeks to maximise space and comfort for people, while
minimising the space required for mechanical components. With this aim in mind, Honda's
R&D activities include product-specific development and fundamental research.
Let's talk about few of the advanced technologies that we have:
Combi Break System
Generally, it is not easy to control a 2-wheeler while braking during emergencies and bad road
conditions. This system not only allows easy & simultaneous operation of the front & rear brake
but also provides optimal braking performance. Once the left side brake lever is pressed, the
system distributes the appropriate braking power between the front and rear wheels, which
assures complete safety for the rider.
HondaMatic Transmission
The compact, efficient & oil pressure controlled Hondamatic Transmission is the world's first
fully automatic transmission system, which delivers a dynamic combination of torque &
excellent accelerator response for a constant and superior driving experience. The transmission
is being used in Honda's all terrain vehicles. Honda is working hard to introduce this
Hondamatic in two-wheelers.
Fuel Injection System
Honda's fuel injection technology is designed to realise ideal combustion, which results in
delivering maximum power output, greatly improved fuel efficiency and yet be environmentfriendly

The history of the Honda brand is nothing more than the history of our challenges and
achievements in creating values, invariably ahead of our time. It is also the history of the
dreams of each of our associates that have come true and have been shared by people around
the world.

26

AWARDS: -

27

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
Viewers Choice Award: Bike of the Year Bloomberg / UTV Autocar Awards 2011.
CB Twister
Bike of the Year - BS Motoring Award 2011.
"The Most Awarded Motorcycle of
the Year - 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
Motorcycle upto 160CC NDTV Car & Bike
Awards 2011.

CB Unicorn Dazzler

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 ( for Dual Clutch Transmission)

2010

Brand Honda

" - Most Reliable Brand

- Advanced Technology Brand
By Auto India Best Brand Survey Awards 2011"

Motorsport

Honoured for 'Promoting 2Wheeler racing in India'

Brand

" - Most Reliable Brand

- Advance Technology
- Quality
By Apollo Auto India Best Brand Awards 2010"
Trusted Brand Award (Gold) for Two-wheeler:
Readers' Digest
Import Two - Wheeler of the Year NDTV Profit Car
& Bike Awards 2010

CB1000R
28

2009

2008

CB1000R

Import Bike of the Year - AutoCar Awards 2010

CBR1000RR Fireblade

Performance Bike of the Year - CNBC TV 18

Overdrive Awards 2010

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

Aviator

Scooter of the Year - Zigwheels.com

CBF Stunner

Motorcycle of the Year (125 CC) - Zigwheels.com

Activa

Scooter Customers Satisfaction No.1 - CNBC TV18

- Auto Car "Auto Awards 2008

Brand

-Well Made Bike 2008

-Advanced Technology 2008
-Overall 2008
-Eco-Friendliness 2008
-Resale Value 2008
By Apollo Tyres - Auto India "Best Brand Survey
Awards 2008"

Eterno

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

2005

Unicorn

Motorcycle of the Year 2005

(B.S.Motoring& Autocar)

Unicorn

TNS Voice of the Customer Award

Eterno

Scooter of the Year 2005

(B.S.Motoring & Overdrive)

2004

Eterno

Best Scooter of the Year

(B S. Motoring &
ICICI Bank, Overdrive Magazine)

2003

Dio

Scooter of the Year 2003

2002

Activa

Scooter of the Year by Overdrive Magazine

2001

Activa

Scooter of the Year 2001 (BS Motoring)

2007

-HMSI & HSCI has been ranked on top in dealer satisfaction survey 2002-03 (TNS)
-Award for Environment Excellence 2002-03 (Greentech Foundation)

29

(TNS)

(TNS)

(BBC)

TOP MANAGEMENT
Chairman and
Representative
Director
Satoshi Aoki

President and
Representative
Director
Takeo Fukui

Managing Director Akira Takano

Managing Director

Tatsuhiro
Oyama

Executive Vice President

and
Representative Director
Koichi Kondo

Chief Operating Officer for Customer

Service Operations
Chief Operating Officer for Motorcycle
Operations

Chief Operating Officer for Production

Operations
Senior Managing
Akio Hamada Risk Management Officer
Director
General Supervisor, Information
Systems

ORGANIZATION STRUCTURE

30

COMPANY PRODUCTS
31

Honda Shine

Shine (Spoke Wheel) (125 cc)

An inspiring piece in the 125 cc motorcycle segment, the Honda Shine delivers excellent
power, superior technology, and awesome looks. New bikes have showroom prices of around
Rs. 40,400 and on-road prices of around Rs. 45,600 at Ahmedabad. Currently, Delhi has the
lowest, and Mumbai the highest on-road price for Honda Shine (Spoke Wheel). Honda Shine
(Spoke Wheel) bike prices vary upon the two-wheeler dealer's location.
Shine (Alloy Wheel) (125 cc)
This bike sets new benchmarks in the 125 cc segment by its engine efficiency, aesthetics, and
low maintenance cost. New bikes in this series have a showroom price ranging from around
Rs. 47,000 to around Rs. 53,000 inclusive of all charges like insurance, octroi, RTO, etc.
Honda Shine (Alloy Wheel) prices vary with the two-wheeler dealer's location. Currently,
Delhi has the lowest, and Mumbai the highest on-road price for Honda Shine (Alloy Wheel).
Honda Shine (Alloy Wheel) bike prices vary upon the two-wheeler dealer's location.

Honda Unicorn
32

Unicorn (Spoke Wheel) (150 cc)

Honda Unicorn (Spoke Wheel) is the first motorcycle developed by Honda Motorcycle and
Scooters India Pvt. Ltd. At the showroom, this bike costs around Rs. 55,000 with an on-road
price of around Rs. 61,500. This includes standard ancillary charges also. Currently, Delhi has
the lowest, and Bangalore the highest on-road price for Honda Unicorn (Spoke Wheel).
Honda Unicorn (Spoke Wheel) bike prices vary upon the two-wheeler dealer's location.
Unicorn (Alloy Wheel) (150 cc)
This bike is marked for its cutting-edge technology, adequate power, and mono suspension at
the rear. The Unicorn (Alloy Wheel) is now available at a showroom price of around Rs.
60,000 with an on road price of around Rs. 63,700 including supplementary charges.
Currently, Delhi has the lowest, and Bangalore the highest on-road price for Honda Unicorn
(Alloy Wheel). Honda Unicorn (Alloy Wheel) bike prices vary upon the two-wheeler dealer's
location.

Honda Scooters
Honda Eterno
33

Eterno (150 cc)

India's first 150cc scooter, Honda Eterno has revolutionized the concept of scooters in its
segment. New scooter have showroom prices of around Rs. 35,800 and on-road prices of
around Rs. 40,500 at Ahmedabad. Currently, Delhi has the lowest, and Bangalore the highest
on-road price for Honda Eterno. Honda Eterno scooter prices vary upon the two-wheeler
dealer's location.
Honda Dio

Dio (100 cc)

The Honda Dio is named after Dyonisiac' or Cupid, the Greek god of love and son of Venus.
New bikes in this series have a showroom price ranging from around Rs. 37,000 to around
Rs. 42,000 inclusive of all charges like insurance, octroi, RTO, etc. Currently, Delhi has the
lowest, and Mumbai the highest on-road price for Honda Dio. Honda Dio scooter prices vary
upon the two-wheeler dealer's location.

Honda Activa
34

Activa (100 cc)

Honda Activa is a family two-wheeler and features a higher load carrying capacity than
similar scooters. At the showroom, this scooter costs around Rs. 38,000 with an on-road price
of around Rs. 43,000. Currently, Delhi has the lowest, and Mumbai the highest on-road price
for Honda Activa. Honda Activa scooter prices vary upon the two-wheeler dealer's location.
Honda two wheelers, in order to differentiate themselves from Hero Honda products are
going high on innovative technology. Honda motorbikes and Honda scooters today are sure to
provide you with something different from the average two-wheeler on the road. Honda
needs to do that to compete against its own collaboration, Hero Honda, and build its separate
market share. So right now, Honda consumers have everything going for them.

35

CHAPTER IV
Data Analysis & Interpretation

36

TABLE 1:

DO YOU HAVE ANY TWO WHEELER

TWO WHEELER

RESPONDENTS

IN %

YES

44

88

NO

12

TOTAL

50

100

NUMBER OF RESPONDENTS USING TWO WHEELERS

ANALYSIS:
It is clear from above sample size of 50 respondents
88% of respondents are using two wheelers
12% of respondents are not using two wheelers
INTERPRETATION:
Majority of the
transportation.

respondents

are

using

two

wheelers

MARKET IMPLICATION:
Most of the people are using own vehicle for their transportation.

37

for

their

TABLE 2: AMOUNT LIKES TO SPEND ON TWO WHEELERS

AMOUNT

RESPONDENTS

IN %

Up to 35000

13

26

Up to 50000

26

52

Up to 80000

18

Above 1 lac

total

50

100

AMOUNT LIKE TO SPEND ON TWO WHEELERS

ANALYSIS:
It is clear from above sample size of 50 respondents
26% of respondents would like to spend up to 35000 on two wheeler
52% of respondents would like to spend up to 50000 on two wheeler
18% of respondents would like to spend up to 80000 on two wheeler
4% of respondents would like to spend above 1 lac on two wheeler

INTERPRETATION:
Most of the people would like to spend up to 50000 on two wheelers

MARKET IMPLICATION:
Annual income plays a major role on purchasing two - wheeler.
38

TABLE 3: FACTORS CONSIDERING WHILE SELECTING THE

TWO WHEELER
FACTORS

RESPONDENTS

IN %

MILEAGE

28

56

STYLE

15

30

COMFORT

14

LOWPRICE

TOTAL

50

100

FACTORS CONSIDERING WHILE SELECTING THE TWO WHEELER

ANALYSIS:
It is clear from above sample size of 50 respondents
1.56% of respondents see the mileage factor while selecting the two
wheeler
2.30% of respondents see the style factor while selecting the two wheeler
3.14% of respondents see the comfort while selecting the two wheeler

INTERPRETATION:
Most of the people see the mileage factor while selecting the two wheeler

MARKET APPLICATTION:
Company has to focus mainly on the mileage factor.

39

TABLE 4: BRAND WILL YOU CHOOSE TO BUY.

BRAND

RESPONDENTS

IN %

BAJAJ

18

HONDA

16

32

HEROHONDA

20

40

TVS

10

TOTAL

50

100

BRAND WILL YOU CHOOSE TO BUY

ANALYSIS:
From the above sample size of 50 respondents
18% of respondents had chosen Bajaj brand to buy
32% of respondents haven chosen Honda to buy
40% of respondents have chosen Hero Honda to buy
10% of respondents have chosen TVS brand to buy

INTERPRETATION:
Most of the people are interested in buying the Hero Honda

MARKET IMPLICATION
Honda has to concentrate more on its branding.
40

TABLE 5: REASONS FOR OPTING FOR THE BRAND

REASONS

RESPONDENTS

IN %

BETTER SERVICE

21

42

BRAND NAME

15

30

LOW PRICE

MILEAGE

13

26

TOTAL

50

100

REASONS FOR OPTING FOR THE BRAND

ANALYSIS:
From the above sample size of 50 respondents
1.42% respondents opted the brand based on better service
2.30% opted the brand based on brand name
3.2% of respondents have opted the brand based on low price
4.26% of respondents have opted the brand based on mileage

INTERPRETATION:
Most of the people are seeing the better service for opting the brand.

MARKET IMPLICATION:
Service plays a major role for opting the brand.
41

Table 6: SATISFIED WITH THE BENEFITS PROVIDED FOR

THE HONDA TWO WHEELERS
SATISFACTION
LEVEL

RESPONDENTS

IN %

FULLY SATISFIED

15

30

SATISFIED

35

66

NOT SATISFIED

TOTAL

50

100

SATISFACTION LEVEL OF THE CUSTOMERS WITH THE

BENEFITS OF THE HONDA TWO WHEELERS

ANALYSIS:
From the above sample size of 50 respondents
1.30% of respondents are fully satisfied with the benefits of Honda two
wheelers
2.66% of respondents are satisfied with the benefits of Honda
3.4% of respondents are not satisfied by the benefits of Honda two
wheelers.

INTERPRETATION:
Most of the people are satisfied with the benefits of the Honda two
wheelers.

MARKET IMPLICATION:
42

Honda has to more concentrate on its benefits to increase the customer

satisfaction level.

TABLE 7: KNOWING ABOUT BENEFITS

SOURCE
ADDS

RESPONDENTS
10

%
20

FRIENDS

23

46

RELATIVES

16

32

OTHERS
1
TOTAL
50
KNOWING ABOUT THE BENEFITS .

2
100

ANALYSIS:
From the above sample size of 50 respondents
20% of respondents know the benefits from ads.
46% of respondents know the benefits from friends.
32% of respondents know the benefits from relatives.
2 % of respondents know the benefits from others.

INTERPRETATION:
Most of the people know the benefits from the friends.

MARKET IMPLICATION:
43

Benefits play major role in increasing the sales of the Honda Two
Wheelers.

TABLE 08: OPINION ABOUT ADVERTISEMENT.

OPINION
EXCELLENT

RESPONDENTS
09

IN %
18

GOOD

26

52

SATISFACTORY

13

26

POOR
02
04
TOTAL
50
100
OPINION ABOUT THE ADVERTISEMENT:

ANALYSIS:
From the above sample size of 50 respondents
18% of respondents feel excellent about the advertisement.
52% of respondents had felt good the advertisement.
26% of respondents
advertisement.

had

felt

satisfactory

about

04% of respondents had felt poor about the advertisement.

INTERPRETATION:
Most of the people had feel good about the advertisement.

MARKET IMPLICATION:
44

the

Honda has to concentrate more on its advertisement to increase

its sales.

TABLE 09: RATING OVERALL PERFORMANCE OF HONDA

WITH OTHERS.
Rating
Excellent

Respondents
16

In %
32

Good

27

54

Average

07

14

Pooor
Total

00
50

00
100

RATING OVERALL PERFORMANCE OF HONDA.

45

ANALYSIS:
From the above sample size of 50 respondents

32% of respondents have rated the overall performance as

excellent.

54% of respondents have rated the overall performance as good.

14% of respondents have rated the overall performance as average.

INTERPRETATION:
Most of the people have rated the overall performance of Honda
as good.

MARKET IMPLICATION:
Performance of the Honda is good when it compares with the
other two wheelers.

46

TABLE 10: HONDA TWO WHEELERS MOSTLY SOLD ON ITS

BRAND IMAGE.
Believes

Respondents

In %

yes

42

84

No

08

16

Total

50

100

HONDA TWO WHEELERS MOSTLY SOLD ON ITS BRAND

IMAGE.

47

ANALYSIS:
From the above sample size of 50 respondents

84% of respondents had felt that Honda two wheelers mostly sold
on its brand image.

16% of respondents had felt that Honda two wheelers not sold on its
brand image.

INTERPRETATION:
Most of the people had felt that Honda is sold on its brand image.

MARKET IMPLICATION:
Brand image plays a major role in promoting the Honda Two wheel.

48

TABLE 11: Do u suggest Honda to others.

Opinion

Respondents

In %

yes

48

96

No

02

04

Total

50

100

DO YOU SUGGEST HONDA TO OTHERS.

ANALYSIS:
From the above sample size of 50 respondents

96% of respondents suggest Honda to others.

04% of respondents does not suggest Honda to others.
INTERPRETATION:
Most of the respondents suggest Honda to others.

MARKET IMPLICATION:
Brand image plays a major role to promote the sales of the Honda.
49

12. WHICH TYPE OF SUGGESTIONS ?

1. It has to improve its service to satisfy the

customers.
2 .It has to give more ads then the competitors.
3. It has to change its advertising strategy.
4.I t has to reduce its price level to some extent.
5. It has to meet its customers to know about the
problems frequently.
6. It has to take suggestions from the customers.
7. It has to offer more benefits to attract the
customers.

50

CHAPTER - V
FINDINGS AND
SUGGESTIONS

51

FINDINGS
1.Most of the people using own vehicle for meeting their daily

requirements.
2.Most of the people would like to spend up to rs.50000/- to
purchase bike.
3.Mileage plays a major factor while selecting a bike.
4.People are looking for better service while purchasing bike.
5.Benefits provided for the Honda two wheelers are almost
satisfied.
6.Advertisements given by the company are lesser then the
competitors.
7.Overall performance of Honda is good.
8.Brand image of the Honda is high.
9.Hero Honda has more brand image when compare to Honda.

52

CONCLUSIONS

1.Day to day the users of the two wheelers have increased

drastically.
2.Most of the people using own vehicle for meeting their daily
needs.
3.Most of the students are using unicorn bike.
4.Mileage factor plays a major role in selecting the bike.
5.Customers are preferring better service in choosing a bike.
6.Hero Honda has more brand image then the Honda
7.Overall performance of Honda is good when compare to
others.
8.Hero Honda has more market potential then the Honda.
9.Most of the people are satisfied by the advertisements of the
Honda two wheelers.

53

SUGGESTIONS
1.It has to improve its service to satisfy the customers.
2.It has to give more ads then the competitors.
3.It has to change its advertising strategy.
4.It has to reduce its price level to some extent.
5.It has to meet its customers to know about the problems
frequently.
6.It has to take suggestions from the customers.
7.It has to offer more benefits to attract the customers.

54

QUESTIONNAIRE
Personal Details:
Name:
Age:
Gender:
Occupation:
1.

Do you own a two wheeler? Yes/No

2.

If yes, what is the brand name of your vehicle?

a) Bajaj

[ ]

b) T.V.S. C) Honda d) Yamaha

e) Other specify.
3.

what Made you to Purchase your two-wheeler?

[ ]

a) Multi-utility b) Style c) Need d) Comfort

e) other specify .
4.

If yes which Company two wheeler do you have ..

5.

How do you meet your daily transportation needs ? [ ]

a) own vehicle b) Auto c) Public Transportation d) other

6.

7.

How much amount would you like to spend on two wheeler?[ ]

a) Up to 35,000

b) Up to 50,000

c) 80,000

d) Above 1,00,000

Are you satisfied with the benefits provided for Honda two
wheelers? [ ]
a) Full satisfied

8.

Are you belive advertising will will effect on sales ?

A) Yes

9.

b) Satisfied c) Not satisfied

b) No

Are You Satisfy with Honda Bikes Mileage

55

a)Yes
10.

Which bike do you have ?

a)Honda

11.

b) No

b)Hero Honda c)Tvs

How do you know about the benefits? [ ]

a) Adds

12.

b) By friends

d) poor

b) Honda

c) Hero Honda

d) T.V.S

Would you suggest Honda to others? [ ]

a) Yes

15.

c) satisfactory

Which brand will you choose to buy? [ ]

a) Bajaj

14.

c) Relatives

What is your opinion about advertisement? [ ]

a) Excellent b) Good

13.

d)Others

b) No

What is your suggestion to Honda Motors

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------16. what is your suggestions to Honda Dealers

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

56

BIBLIOGRAPHY

57

Bibliography
(1)

Philip.Kotler:A frame work for marketing mgt,

__ second edtion , page no: 96-98.

(2 )G.c.barri marketing research tata mc-graw

__fourth reprient 2002, page no:367.
(3) M.narasinham report of the committee on financial system.
__reserve bank of Indian publication 1991,page no:34.
(4)Indian journal of marketing;nov 2006,page no:3-7.
Web sites:
1)www.google.com
2)http:/en.mimi.hu/marketing web/market potential/html.
3)http:/en.wikipedia .org/wiki/potential competition.
4)www.honda2wheelers.co.in
5)www.honda.com

58