A REPORT ON

Submitted By THE TRIPLETS MBA, Batch 2011-13

S.No. 1. 2. 3. MEMBERS NAME CHIRAG JAIN AKSHAT MAKHIJA AAYUSHI AGARWAL ENROLLMENT No. 11609078 11609068 11609064 YEAR Ist YEAR Ist YEAR Ist YEAR BATCH MBA R2 MBA R2 MBA R2

TEAM LEADER : CHIRAG JAIN(chirag.jain13@jaypeebusinessschool.com; cjain198919@yahoo.com ) 09811273420; 09873976243

INTRODUCTION
Honda Motor Company, Ltd. ( Honda Giken Kgy ) is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles. 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 aerospace with the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420 HondaJet, scheduled to be released in 2011. Honda spends about 5% of its revenues into R&D.

CORPORATE PROFILE: Honda is headquartered in Minato, Tokyo, Japan. Their shares trade on the Tokyo Stock Exchange and the New York Stock Exchange, as well as exchanges in Osaka, Nagoya, Sapporo, Kyoto, Fukuoka, London, Paris and Switzerland. The company has assembly plants around the globe. These plants are located in China, the United States, Pakistan, Canada, England, Japan, Belgium, Brazil, New Zealand, Indonesia, India, Thailand, Turkey and Per. As of July 2010, 89 percent of Honda and Acura vehicles sold in the United States were built in North American plants, up from 82.2 percent a year earlier. This shields profits from the yens advance to a 15-year high against the dollar. Honda's Net Sales and Other Operating Revenue by Geographical Regions in 2007

CURRENT MARKET POSITION American Honda Motor Company is based in Torrance, California. Honda Canada Inc. is headquartered in the Scarborough district of Toronto, Ontario, and is building new corporate headquarters in Markham, Ontario, scheduled to relocate in 2008; their manufacturing division, Honda of Canada Manufacturing, is based in Alliston, Ontario. Honda has also created joint ventures around the world, such as Honda Siel

Cars and Hero Honda Motorcycles in India, Guangzhou Honda and Dongfeng Honda in China, Boon Siew Honda in Malaysia and Honda Atlas in Pakistan. With high fuel prices and a weak U.S. economy in June 2008, Honda reported a 1% sales increase while its rivals, including the Detroit Big Three and Toyota, have reported double-digit losses. Honda's sales were up almost 20 percent from the same month last year. The Civic and the Accord were in the top five list of sales. Analysts have attributed this to two main factors. First, Honda's product lineup consists of mostly small to mid-size, highly fuel-efficient vehicles. Secondly, over the last ten years, Honda has designed its factories to be flexible, in that they can be easily retooled to produce any Honda model that may be in-demand at the moment. Nonetheless, Honda, Nissan, and Toyota, were still not immune to the global financial crisis of 2008, as these companies reduced their profitability forecasts. The economic crisis has been spreading to other important players in the vehicle related industries as well. In November 2009 the Nihon Keizai Shinbun reported that Honda Motor exports have fallen 64.1%.At the 2008 Beijing Auto Show, Honda presented the Li Nian ("concept" or "idea") 5-door hatchback and announced that they were looking to develop an entry-level brand exclusively for the Chinese market similar to Toyota's Scion brand in the USA. The brand would be developed by a 5050 jointventure established in 2007 with Guangzhou Automobile Industry Group.[20][21] Following the Japanese earthquake and tsunami in March 2011 Honda announced plans to halve production at its UK plants. The decision was made to put staff at the Swindon plant on a 2 day week until the end of May as the manufacturer struggled to source supplies from Japan. It's thought around 22,500 cars were produced during this period.

SWOT ANALYSIS
STRENGTHS Quality and Customer Satisfaction. High R&D like Hybrid Technology. Innovation. Market Share Leadership. Strong Brand Equity. Unique products. Popularity. Revolutionary Engine Technology.

WEAKNESSES High Prices (Latest technology being used in Honda products, it is difficult to keep prices low) Reputation for being underpowered.

OPPORTUNITIES Mid segment economical small cars. Progressing low emission vehicles and alternative power sources. Fuel efficiency

THREATS Too many competitors in industry. Lower cost competitors. Economic slowdown. Expanding market size of compact cars (around 76% currently). External changes (government, politics , tax, steel prices etc).

MARKET POSITIONING THAT WILL ENSURE MAXIMUM GROWTH TO HONDA

The one line mantra that Honda is disrupting, is to enter the present market with its first low-cost car, Brio. India being a price sensitive country, the small segment Brio is the answer from Honda to the competitor where Maruti Swift and Hyundai I10 has dominated the market. The Brio comes in four models, each priced differently. The introductory model, at Rs. 3.95 lakhs, includes power steering and an air conditioner. The second-tier model, at Rs. 4.35 lakhs, includes steering mounted audio controls, front and rear power windows and keyless entry. A third-tier variant goes for Rs. 4.9 lakhs and includes ABS and air bags. The top end model, priced at Rs. 5.10 lakhs, comes with alloy wheels, front fog lamps and silver inside door handles - a lot of value at the given prices. Honda is known for its premium segment cars. For example HONDA CITY. Honda City was a premium offering in the mid car segment costing around 8 lacs. The company can survive with the decided price of Brio, due to perceived notion of their cars. The reasons are:

1) The performance of Honda is overall satisfactory and was equally effective in performing both in city and on highway. 2) The total cost of ownership of Honda is least in respective categories in terms of fuel, maintenance and repairs.

In automobiles, Japanese technologies are famous for their cost efficiencies in world in comparison to Germans, who are more performance driven. The presence of Japanese companies in India like Suzuki, Toyota, Honda, Nissan proves the efficiencies. Comparing to various other same segment vehicle, the price plays a very major factor in decision of buying a car. The price of Honda Brio is in B-segment with various competitors like Maruti Swift, Ritz, Volkswagen Polo, Toyota Etios Liva, Hyundai i10, i20, Chevrolet Beat. The size of cars in B-segment is greater than cars in A+ segment like Maruti WagonR, Zen Estilo, A-star, Chevrolet Spark, Hyundai Santro, in terms of Elbow room, head room and Leg room. The Honda Brio provides all features of B segment so it can said to be perfectly priced in this segment. The customer of A+ segment which is priced maximum to 3.75 lakhs can easily be shifted to B-segment and the customer of premium B-segment(Hyundai i20, Skoda Fabia) might also consider Honda Brio with reason, the features provided in car is equivalent to premium B-segment, The cabin space is remarkable with the Brand name Honda famous for its premium cars. All these things might help Honda in achieving volumes.

POSITIONING STRATEGY FOR HONDA BRIO

Honda introduced its Brio mainly to intrude the mass segment which is hitherto dominated by the likes of Ford Figo, Maruti Suzuki Swift, Chevrolet Beat etc. Takashi Nagai, President & Chief Executive of Honda's Indian unit, indeed stated during the launch, Brio is our answer to the demand of mass car market. It's our most focused product." Ford had introduced the Figo as a value for money car, but Honda insists that competition isn't what drove Honda to introduce its own lower-cost model. For Honda, value is not about price, but rather about styling, durability, quality and experience at dealerships, areas in which Honda execs say the company excels. The market for value cars that make money off volume has been dominated by Maruti Suzuki for over two decades and that company still holds a strong market position. Honda says that with Brio, Honda is getting into the volume game.

The technical specification of Honda Brio is such that it beats all other cars in this segment in terms of power and performance. Honda Brio Engine Specifications

1.2 Litre 4 Cylinder i-VTEC Engine Engine Displacement 1198 CC Max power of 86.8 BHP @ 6000 RPM Max torque of 109 Nm @ 4600 RPM 5 Speed Manual transmission ARAI Certified Mileage of 18.4 KMPL Kerb Weight 920 to 940 Kg Power to weight ratio of 93.3 BHP /1000 Kg

Maruti Swift 2011 Engine Specifications

Improved K12 1.2 Litre MPFI Petrol Engine Dual VVTI Technology 4 Cylinder, Displacement 1197 CC Max power of 85.8 BHP @ 6000 RPM Max torque of 114 Nm @ 4000 RPM 5 Speed Manual transmission ARAI Certified mileage of 18.6 KMPL Kerb Weight 960 to 990 Kg Power to weight ratio of 88 BHP /1000 Kg

Honda Brio Petrol Prices in India The prices of Honda Brio Ex-Showroom Delhi are as follows:

Honda Brio E is priced at Rs.3.95 Lakhs Honda Brio S is priced at Rs. 4.35Lakhs Honda Brio S (Option Pack) is priced at Rs. 4.90 Lakhs Honda Brio V is priced at Rs. 5.10 Lakhs

Maruti Swift 2011 Petrol Price In India The prices of Maruti Swift Petrol Ex-Showroom Delhi are as follows: Maruti Swift Lxi Petrol is priced at Rs. 4.22 Lakhs Maruti Swift Vxi Petrol is priced at Rs. 4.76 Lakhs Maruti Swift Zxi Petrol is priced at Rs. 5.53 Lakhs