ANALYSIS OF HARMONY HONDA, CHANDIGARH

UFV CHANDIGARH BUS 221 Professional Selling

ANALYSIS OF HARMONY HONDA, CHANDIGARH

Akershit Sharma Amandeep Singh Bharat Nayyar Rajkaran Kamboj Group No 4 Submitted to: Prof. Shyam Vyas Date Submitted: March 29, 2013 Date Due: March 29, 2013 akershit@yahoo.co.in amandeep_singh28@yahoo.in nayyarbharat@rocketmail.com rajkaran_rk18@yahoo.in +919646021890 +919878667513 +919501777030 +919988802385

ANALYSIS OF HARMONY HONDA, CHANDIGARH

TABLE OF CONTENTS
S No. 1. 2. 3. 4. 5. Acknowledgement Executive Summary Non-Paying Sponsor (NPS) Research Methodology Introduction Honda Siel India Ltd Awards and Achievements 6. 7. 8. Harmony Honda Segmenting and Targeting Recruitment and Selection Procedure Recruitment Procedure Selection Process Performance Evaluation and Placement 9. 10. 11. 12. 13. 14. 15. Consumer Behavior Hondas Sales Process Pursuing a Scientific Approach To Sales Competition Analysis Differentiation Strategy Brand Positioning Strategies Market Research Personal Interviews & Surveys Field Work 16. 17. 18. 19. 20. 21 22. Honda Advertisements and Marketing The Road Ahead Conclusion Peer Evaluation Appendix 1 Questionnaire Appendix 2 References Appendix 3 Bibliography Topic

ANALYSIS OF HARMONY HONDA, CHANDIGARH

ACKNOWLEDGEMENT
It gives us pleasure to express our most profound regard and sense of great indebtedness and sincere gratitude to Mr. Laxman Singh (Non-Paying Sponsor) and Mr. Vikas Rohilla for their superb and painstaking guidance, untiring help, keen interest and constant encouragement throughout the period of project.

We would also like to express our thanks to the faculty Members who helped us, especially library members, Computer lab staffs, without whose help the project could not be completed.

We would also like to thank Mr. Tanveer Dhillon, BBA Graduate, Punjab University for his assistance. We would like to thank our colleagues who helped us throughout the period of project.

ANALYSIS OF HARMONY HONDA, CHANDIGARH

EXECUTIVE SUMMARY
In this project we are trying to find the segmentation of cars done by Harmony Honda and its effect on customer. We are also trying to study the sales trend followed by Harmony Honda. In our study, we had followed different methods to find and analyze the data, namely primary and secondary. We have used the questionnaire method to study the Honda sales trend.

In Chandigarh Tricity, Harmony Honda has 2 showrooms, we visited them and tried to know that what are the cars, which they are selling more, what is the sales trend of Honda, which kind of cars the customers are demanding and why? What modification should Honda make in its cars to take an edge over its competitors? We have also used secondary data to analyze the sales trend of Honda; in which, we have studied the Honda Automobiles shares and condition in the market; profit & loss and many more things. We have analyzed where Honda has an edge over its competitors and where its lacking behind, how it would improve its sales trend, what are the future prospects of Honda in Indian automobile market?

ANALYSIS OF HARMONY HONDA, CHANDIGARH

NON-PAYING SPONSOR (NPS)

We chose Harmony Honda (Joshi Automotives Pvt Ltd, Authorized Honda car Dealer), Plot No. 67, Industrial Area, Phase II, Chandigarh. There in Harmony Honda, Mr. Laxman Singh, Senior Sales Manager and Mr. Vikas Rohilla, Deputy Sales Manager, helped us to pursue our project efficiently. In our meetings with Mr. Singh and Mr. Rohilla, we discussed their strategies about selling the Product-in-Hand. How they took decisions; what was their inventory turnover; what was their labor turnover; what were their segmentation strategies and many more questions like that. With their immense help we were able to complete our Project report and PowerPoint presentation timely and efficiently. So, we are very thankful to them.

Harmony Honda, Plot No. 67, Industrial Area, Phase II, Chandigarh

ANALYSIS OF HARMONY HONDA, CHANDIGARH

RESEARCH METHODOLOGY
RESEARCH DESIGN Descriptive Study - Since an already predetermined model of the customer buying behaviour exists then this study attempts to elaborate on the established norms. SOURCES OF DATA Primary Sources of Data Official Survey Use of questionnaire that is based on information needed from Harmony Honda. Non- Disguised Structured The interviewed was informed, in advance, of the objective of the research. This was to ensure a more positive and less suspicious approach to answering questions on the part of the interviewed. Advantages Systematic and orderly method of information collection. Simple and straight forward elaborate experience of the research not required. Easier to edit, tabulate and interpret the data. Weakness Cannot handle opinions of personal nature and motivational viewpoints. Secondary Sources of Data Journals and Newspaper. Magazines. Internet.

ANALYSIS OF HARMONY HONDA, CHANDIGARH

INTRODUCTION
Honda Siel Cars India Ltd Honda Siel Cars India Ltd., (HSCI) was incorporated in December 1995 as a joint venture between Honda Motor Co. Ltd., Japan and Siel Limited, with a commitment to providing Hondas latest passenger car models and technologies to the Indian customers. The Honda City, its first offering introduced in 1997, revolutionized the Indian passenger car market and has ever since been recognized as an engineering marvel in the Indian automobile industry. The company has a capacity of manufacturing 100,000 cars annually. HSCIs state-of-the-art manufacturing unit was set up in 1997 at Greater Noida, U.P with an investment of Rs. 450 crore. The green field project is spread across150 acres of land (over 600000 sq. m). The initially installed capacity of the plant was 30,000 cars per annum. The capacity was being enhanced to 120,000 units as of February 2012. HSCI currently sells the newly launched Honda CRV, Accord, City, Civic, Jazz and Brio models in India, which are produced at the Greater Noida facility. Upcoming Model The upcoming model of Honda is the Honda Amaze (Sedan) which will be launched in India in April this year. The car has already being launched in Thailand. It is likely to be ranged between Rs. 5.5-6.5 lakhs (Petrol Variant). The main competitors of the car are considered to be the Maruti Swift Dzire, Toyota Etios, and the Tata Indigo. Hondas models are strongly associated with advanced design and technology, apart from the established qualities of durability, reliability and fuel-efficiency. The goal of HSCI is to provide joy through its business:

ANALYSIS OF HARMONY HONDA, CHANDIGARH The Joy of Buying: For those who buy their products. The Joy of Selling: For those engaged in selling their products and services. The Joy of Creating: For those involved in creating their products. Honda Siel Cars India has a strong sales and distribution network spread across the country. The network includes 143 authorised dealership facilities in 89 cities. HCIL dealerships are based on the 3S facility format, offering complete range of Sales, Service and Spares services to its customers. Honda Assure Honda Assure is an insurance initiative introduced by HCIL to enhance ownership experience for Honda car customers. Under the Honda Assure program, all Honda car customers get the benefit of a more transparent, hassle free transaction and a quick turnaround time on their insurance claims. The entire transaction is routed through an online central server which enables HCIL to monitor the overall operations more effectively. Some of the direct benefits to the customers include Cashless Insurance across India and improved turnaround time. Auto Terrace Hondas Exchange and Pre-Owned car division Auto Terrace has been in existence ever since the inception of HCIL in India. Present in all major Honda dealers across the country, Auto Terrace presents itself as the one-stop solution for catering to the needs of customers wanting to exchange their existing cars for a new Honda car.

ANALYSIS OF HARMONY HONDA, CHANDIGARH ACHIEVEMENTS AND AWARDS Over the years, Honda has earned a reputation for producing quality automobiles that are at the forefront of innovation, from loyalty accolades to value awards, Hondas vehicles are highly regarded by its customers and the automotive press. Brand Honda New car buyers chose Honda as the auto manufacturer with the best overall value as well as the most trusted brand on the road. Kelley Blue Book honored Honda with the 2013 Brand Image Awards for Best Value Brand and the Most Trusted Brand after surveying more than 12000 new car buyers. The automotive experts at ALG, the industry benchmark for vehicle values and a leading provider of Automatic insights, presented Honda with the 2013 Residual Value Award for the Mainstream Brand Segment. Honda Brio Honda Brio Automatic awarded as the Variant Car of The Year at Car India Awards 2013. The Highest Ranked Premium Compact Car in J.D. Power Asia Pacific 2012 India Initial Quality Study (IQS). Honda Jazz Best Car in Premium Compact Segment in JD Power Asia Pacific 2010 India IQS. Car of the Year and Small Car of the Year by NDTV Profit Car India & Bike India Awards 2010.

ANALYSIS OF HARMONY HONDA, CHANDIGARH Honda City The highest ranked Midsize Car in J.D. Power Asia Pacific 2012 India Initial Quality Study (IQS). Consumer Favourite Owner Driven Car by Auto-build Golden Steering Awards 2011. Indias Favourite Car for Self-Driven Executives by CarWale.com Awards 2010.

Honda Civic 2012 Best Redesigned Vehicle by kbb.com (Kelly Blue Book). Best Car in Premium Midsize Segment in JD Power Asia Pacific 2010 India IQS Indias Favourite Car for Enthusiasts 2009.

Honda Accord Honda Accord named to Car and Drivers (Magazine) esteemed 10 best Cars list for a record 27th time. Indias Favourite Car for Chaffeur-Driven Executives 2011. 2010 Best Luxury Car (UTVi Autocar Awards).

CRV Honda The Insurance Institute for Highway Safety (IIHS) has named the CRV a 2013 Top Safety Pick.

ANALYSIS OF HARMONY HONDA, CHANDIGARH The 2013 CRV was named to KBBs Best Resale Value: Top 10 list. Depreciation is usually a car buyers primary expense during ownership. Taking resale value into account can help drivers save money in the long run. HONDA EYES INDIA AS HUB FOR DIESEL ENGINES FOR COMPACT CARS Honda Motors is applying the final touches to its long term diesel game plan for India, which will culminate in India emerging a global hub for diesel engines for compact cars. With Mr. Pranab Mukherjee steering clear of imposing a cess of diesel-engine powered cars in his budgetary proposal, Honda Siel can pursue its plans of creating a diesel engine portfolio, which is non-existent today. A renewed focus on India-and-diesel is a part of a fresh strategy for Honda. To kick start growth in India, the Japanese auto major has reorganized its top leadership team in the country. As per the information provided by our Non-Paying Sponsors, Mr. Laxman Singh and Mr. Vikas Rohilla, Honda will be launching the diesel variant of the Honda City, Honda CRV and Honda Accord by the starting of next year with a gap of 6 months in diesel variants of each model.

ANALYSIS OF HARMONY HONDA, CHANDIGARH

HARMONY HONDA
Harmony Honda is itself a distributor of HCIL (Honda Car India Ltd.). In the tricity, Joshi Automobiles has taken the dealership of Harmony Honda, located in Chandigarh and Panchkula. Honda is launching new CRV Honda, this year in April 2013. Harmony Honda expects to sell 10 CRV cars per quarter. Honda has following sales figures: Car Models (in Tricity) Brio Honda City Honda Accord Honda Jazz CRV Honda Honda Civic Total No. of Cars (Quarterly) Figures 135 155 10 25 5 20 350 cars

The addresses are as follows: Harmony Honda, Panchkula (Joshi Autolinks Pvt Ltd) Plot No. 389, Industrial Area Phase 1, Panchkula Harmony Honda, Chandigarh (Joshi Automotives Pvt Ltd) Plot No. 67, Industrial Area, Phase II, Chandigarh Contact Number: 0172-5022222 The sales team at Harmony Honda, Chandigarh is structured as follows:

ANALYSIS OF HARMONY HONDA, CHANDIGARH

Laxman Singh (Senior Sales Manager)

Vikas Rohilla (Deputy Sales Manager)
Team Leader with 3 Sales Consultants Team Leader with 3 Sales Consultants Team Leader with 3 Sales Consultants
Team Leader with 3 Sales Consultants

HONDA CAR DEALERS IN CHANDIGARH Showrooms Prestige Honda Harmony Honda Address 6, Ind. Area Phase 1, Chandigarh, 67, Ind. Area, Phase 2, Chandigarh

MAJOR COMPETITORS IN CHANDIGARH: Showrooms Charisma Hyundai KLG Hyundai Ultimate Hyundai Globe Toyota Pioneer Toyota Saluja Ford Volkswagen Chandigarh Padam motors Pvt Ltd Address 7, Ind. Area, Phase 1, Chandigarh 181/3B, Ind. Area, Phase 1., Chandigarh 154-155, Ind. Area, Phase 1, Chandigarh B-51, Ind. Area, Phase 6, Chandigarh 177, Ind. Area, Phase 1, Chandigarh, 140, Ind. Area, Chandigarh, 32, Ind. Area, Phase 1, Chandigarh 182/2, Ind. Area, Phase 1, Chandigarh,

ANALYSIS OF HARMONY HONDA, CHANDIGARH

SEGMENTING AND TARGETING

Based on the economic strata, the company had divided the Indian automobile consumer segment in 3 categories: Mid range (priced less than 7 lakhs) Premium (priced between 7- 15 lakhs) Luxury (Priced above 15 lakhs)

The mid segment caters to the need the semi urban population and urban population. The premium and luxury segment takes care of the interest of the urban population. Honda is segmented also on the basis of income groups present in the country i.e. the people having an income of less than 7 lakhs per annum consider cars of mid-range which are Honda Brio and Honda Jazz. People having falling in the income range of 7-15 lakhs per annum consider the premium-range segment of the Honda cars which include Honda City and Honda Civic. The people with an income more than 15 lakhs per annum mainly considers car in the luxury segment of Honda cars such as Honda CR-V and Honda Accord

Honda has divided its Product line into 3 segments as per the following table.
Product Line Compact/Hatch-back Sedan SUV segment Products Brio, Jazz City, Civic, Accord CR-V

ANALYSIS OF HARMONY HONDA, CHANDIGARH With rising prices of petrol, there is a sharp demand for Diesel-run vehicles. Honda soon will launch the diesel variants of its segments so as to capture large market share

ANALYSIS OF HARMONY HONDA, CHANDIGARH

RECRUITMENT AND SELECTION PROCEDURE

Harmony Honda translates its business strategy into a manpower plan and develops a recruitment program accordingly, which will enable it to attract and select people with the appropriate combination of experience, skills and knowledge.

Objectives:
The main objectives of the Recruitment Policy are outlined as follows:

Build the Honda Cars brand in the job market. Ensure availability of the right talent at the right time. Evaluate through a scientific process that ensures the right fit between the organization and the candidate.

RECRUITMENT PROCEDURE A. Manpower process

Manpower Forecasting
1. The overall annual business plan for the company breaks down into plans and targets for each individual department. Each department calculates their grade wise manpower requirements based on the staffing norms, and provide quarterly and monthly manpower requirements to corporate HR. 2. Based on the attrition trends and manpower requirements, all the respective Head of Departments arrive on the manpower numbers along with Head-HR and obtain on MDS approval.

ANALYSIS OF HARMONY HONDA, CHANDIGARH 3. The projected requirements for the year must reach Head-HR, latest by the first week of January every year.

Manpower Inventory HR prepares the current manpower status of each

department, including an analysis of the current manpower at each location, grade and skill summary.

Identifying Manpower Gaps The existing number of employees and their skill
levels compared with the forecasted requirements to identify qualitative and quantitative gaps. Options for the redeployment through retaining, transfers, promotions are considered. Where these options do not exist, options for recruiting from external sources are taken into account.

Manpower Plan On the basis of identified gaps, HR prepares on overall

manpower plan which provides adequate lead time for transfers, retaining, promotions and external hiring. The plan contains details on:

Department wise numbers for transfers, retaining and promotions. Department wise numbers for external recruitment. The final manpower plan prepares. Once completed, it will be put up for approval by all the department heads and Managing Director.

B. Preparing Job Description and Person Specification

Each position in the organization has detailed job description including the following: i. ii. iii. Description of profile to be handled. Department/Location/Region. Reporting relationship-Designation.

ANALYSIS OF HARMONY HONDA, CHANDIGARH iv. Whether the position is budgeted in case of a new vacancy or replacement- mention details of last incumbent. v. vi. Qualifications- Essential/Desired. Position in the hierarchy/Organization Structure.

C. Sources of recruitment
Generally the sources of recruitment are categorized as follows: Internal Recruitment External Recruitment

Internal Recruitment
The company believes in offering opportunities for growth and carrier progression to its employees; thus each time a requirement arises, internal recruitment is a preferred mode. For every vacancy arises below level, an option of filling the post initially is considered. HR places an advertisement on the intranet. The advertisement contains the following details: i. ii. iii. iv. Job Profile. Education qualifications, Skills, Experience. Last date of receiving Applications. Contact person in HR.

All applications are screened for the eligibility against pre-determined criteria for the vacancy. HR prepares a list of eligible applicants and seeks approval from the respective Reporting Manager and Departmental Head. If approval is given, HR sends notification to the eligible candidates via email. Applicants who are not found eligible are also be notified as via email. Eligible candidates undergo a panel interview. If no suitable applicants apply within one week from the date of posting the advertisement, external recruitment is initiated.

ANALYSIS OF HARMONY HONDA, CHANDIGARH

External Recruitment:
The vacancies can be filled through the following channels:

Candidates walking in/ sending their CVs directly. Job Portals. Consultants. Campus Recruitment.

ANALYSIS OF HARMONY HONDA, CHANDIGARH

SELECTION PROCESS
A. Eligibility Criteria The following eligibility criterion is used to short list applicants from various Institutes: i. ii. A CGPA of at least 6 out of 10 or its equivalent in the MBA/PGDBM program Projects undertaken at the summer trainee/internship level.

B. Screening of Application Blanks The placement Coordinator/Administrative Offices short list candidates on the basis of predetermined eligibility criteria and send the list of short listed students to the company at least one week before the date of campus interviews. HR will then screen the application blanks that are received and short list them a second time according to the eligibility criteria. C. Selection Criteria The candidates qualifying the % CGPA criteria are considered for the selection rounds.

ANALYSIS OF HARMONY HONDA, CHANDIGARH

LETTER OF INTENT
Selected candidates are issued a letter of intent on the spot. Appointment letters are issued upon joining. 1. Trainee Scheme Once selected, all the trainees are provided with an HR brochure that lists the details of the trainee scheme are outlined below: i. Travel Management Trainees are provided with AC class Train Fare from home to the company. Conveyance expenses such as travel (taxi) from the Railway station to the place of posting etc. are provided. ii. Accommodation Trainees are provided with shared accommodation. Guest House is provided for one month for outstation candidates. 2. Training Program The training period is for six months. The details are given below: i. A three day induction period held for all trainees by the top Management on the vision, mission and company policies. ii. All trainees spend one week in each function for a period of .. Weeks. iii. Trainees undertake 2 projects in 2 other functions than their specialization.

ANALYSIS OF HARMONY HONDA, CHANDIGARH

PERFORMANCE EVALUATION AND PLACEMENT

Upon completion of the training period, all trainees undergo performance evaluation. PROCESS 1. Trainees are required to present a report of the projects they have undertaken to the Department Head at the end of the training period. 2. HR schedules a performance interview for every management trainee. The panel for interview consists of one cross- functional head, Departmental head and HR Manager. 3. The trainee is assessed on the projects completed and a number of parameters listed in the Trainee Evaluation Form. 4. The Performance Evaluation Panel recommends a confirmation separation as per the trainees performance. Upon receiving the evaluation and recommendation, HR issues a confirmation letter to the trainee confirming him/her at level.

ANALYSIS OF HARMONY HONDA, CHANDIGARH

CONSUMER BEHAVIOUR
Consumer behaviour is important to businesses as it includes acquisition of information to stimulate purchase by consumers. Business organizations keep in mind that by understanding the thoughts, feelings, actions of consumers, they can positively attract new customers and retain current ones. Honda produces automobiles, motorcycles, and power products. The company also develop innovating technologies to meet the demands of the future. Honda emphasizes on establishing customer relationships through its products and services by confronting key issues and providing solutions. Hence, Honda's demand to research closely on consumer behaviour before their product is launched into the market. Honda wants their customers to always enjoy the crucial satisfaction of mobility. They are determined to remain ahead of their competitors, while being valued for their activities by society and customers worldwide. Honda researches closely on the market and the society in order to create quality performance position within the market. Before launching a product, Honda's team of researchers launch into an array of studies on consumer behaviour to meet the particular needs of customers in different regions around the world. Honda has been known as a quality brand offering the style and performance for their enthusiasm in improving their automobiles. In today's world of evolving technology, consumer tastes are categorized by fast changes. To survive in the market, Honda has to be constantly innovating and understand the latest consumer trends and tastes.

ANALYSIS OF HARMONY HONDA, CHANDIGARH Consumer behaviour provides important clues and strategy to marketers on how to explore and conquer the market. By understanding the four applications to effectively understanding consumer behaviour, Honda will effectively satisfy consumer wants and demands. Honda must research closely on consumer behaviour in order to effectively ascertain regulatory policy through marketing activities such as safety and privacy protection. Regulatory policies are made in order to protect and aid consumers, which is why Honda maintains a commitment to preserving consumers' privacy. By letting consumers know their information is safe, consumers will definitely keep Honda's image as a reputable and trustworthy automobile company. (http://www.ohio.honda.com/CompanyInfo/privacy.cfm) SOCIAL MARKETING The application of marketing strategies and tactics in which Honda can use to alter and create behaviours to have a positive effect on their target market and the society as a whole. Honda can use social marketing as an advantage to their campaign when targeting on different segments through personalized promotions, advertisements and societies. In an online article titled "Honda Civic Tour Delves Into Social Media", the band Fall Out Boy fans of the Honda Civic Hybrid, agreed to a sponsorship of their tour and appear in promotional videos on their tour site, actively recommending the car for its environment friendly aspects. (Aun, 2007) Honda's goal is to get enough relevant market information to develop accurate profiles of buyers that is basically to find the general ground and symbols for communication. The primary mission of advertising is to reach prospective customers and influence their awareness, attitudes and buying behaviour.

ANALYSIS OF HARMONY HONDA, CHANDIGARH

HONDA SALES PROCESS

Almost all established sales organization will have their salespeople follow certain steps to increase the likelihood of a sale. Many companies have these steps in place to provide an outline for their sales staff. However, Harmony Honda employs the following seven step sale process: MEET AND GREET - Establish Rapport and Control.

This step is designed to welcome the customer to the dealership and to allow the salesman to introduce themselves. However, the salesman's primary concern is to establish control of the process. Most of the time, customers will try to avoid talking to a salesman and will maintain a defensive posture. Keep in mind, the management requires that every customer be assisted by a salesman. This philosophy is paramount to dealerships. Every customer must be properly greeted upon arrival. If a salesman greets a customer that is just looking and doesn't properly engage them, they will run the risk that the customer will buy a car somewhere else. Even worse, they may buy from another salesperson at their own dealership. During this step, the salesman is instructed to establish rapport with the customer. Rapport is extremely important and without it the salesman knows they have a slim chance of selling a car. This is one of the most vital steps as you have always heard; you don't get a second chance to make a first impression! The next challenge for the salesperson during the meet and greet is to get the customer to reveal a "need". Once a customer expresses what they are looking for, the salesman can proceed with satisfying that request.They will then move to the next step: Qualifying.

ANALYSIS OF HARMONY HONDA, CHANDIGARH QUALIFY To "land" the customer on vehicle.

The second step in the salesmans process is to determine what the customer would like to buy and then find a suitable vehicle in their current inventory. In this process, Honda salespersons adopt a problem-solving type of sales presentation. If the salesman doesnt qualify the customer properly, their efforts will begin down the wrong track. Salesmen are instructed to walk and talk. Good salespeople will always have their customers following them through the dealership, whereas, the "weaker" salesmen will be following the customer. Many times this is where the salesman will establish or lose control. The salesman will try to land the customer on a car simply by showing the customer the dealers inventory. In the event a salesman does not find a car for the customer, the management will instruct the salesperson to Turn the customer to a new salesperson. A turn is often mandatory because the dealer wants to be certain that they have had every opportunity to sell a car. They believe that a change of personality will enhance the possibility to move to the next step. Once the customer displays interest in a car, the salesman can start the Walk-Around.

ANALYSIS OF HARMONY HONDA, CHANDIGARH WALK AROUND Demonstrate the features and create obligation This is when the salesman will highlight the features and benefits of the selected car. It is called a walk-around because the salesman "walks around" the vehicle while demonstrating it features. The better salespeople will almost always have a method to their walk-around. For instance, if the car is a row of vehicles, the customer will "spot-light" the car by pulling it out of the line. This extra effort will almost always provoke the customer to say dont go to any trouble, this is because they dont want to feel obligated to the salesperson. Of course, that is exactly what effective salespeople are trying to achieve. Often, the salesman will begin the walk-around on the outside of the vehicle and initially prevent the customer from sitting in the drivers seat. They first demonstrate the trunk space, engine compartment and exterior features. Salespeople realize that the customers first impulse will be to sit behind the wheel. Therefore, they will not let the customer sit in the car until they have created some desire. When they reach a Point to demonstrate the interior features, they will have finished their exterior "walk-around" right next to the front passenger door. They then ask the customer sit in the passenger seat and they will sit in the drivers seat. This is by design and used to maintain control. By performing the walk- around in this manner they are now in the perfect position to begin a test drive. Strong salespeople will never ask the customer to take a test drive. They simply drive away with the customer seated in the passenger seat. When the customer finally gets to sit behind the wheel, they will be at the next step: Test-drive.

ANALYSIS OF HARMONY HONDA, CHANDIGARH TEST DRIVE Create "Ether".

The Test Drive is the fourth step in the sale process. The salesperson will almost always inform the customer that the dealerships insurance policy will require a dealership's employee to drive the vehicle off the Lot. In reality, salesmen say this so they can maintain control and then drive to a location that will enable the customer to have longer more effective test drive. If the customer begins the test drive from the dealership they will usually only drive a short distance because they dont want to feel obligated to the salesperson. Salesmen know they can increase their odds of a sale if the customer takes a long test drive. Also, salesmen are instructed to be aware of the customers hot button. This is something that the customer has expressed interest during the Walk-Around, like performance, safety, and comfort. Salespeople will generally insure that the test drive will highlight the customers hot-button. For instance, if the customer has concerns about safety, the salesman will make sure to have the customer perform a brake-test. Or if the customer is interested in performance, the test drive would include curvy roads and a freeway. The vehicle should create the ether. However, without a properly crafted test-drive route the customer may not really experience the car and then have a desire to buy. Once the customer arrives back to dealership the salesman must now attempt to get the customer to commit to buying today. To do this they perform the next step: the Write-Up.

ANALYSIS OF HARMONY HONDA, CHANDIGARH WRITE UP Commit the customer to "buying today" The next step which the company adopts is the write-up which takes place immediately after the test drive. The company believes that the best time to sell a car is after the test drive because at that particular time, the customer is excited and is imagining himself owning a new car. So, the next step of the salesperson is to present the customer with the relative cost, payment and down payment in an effort to get the customer to make an offer. They attempt to get the customer to submit an amount that they can pay, after telling them the cost. Once he receives the customers offer, they ask if they would buy the car today if the dealership would agree to their terms. However, at this point they are not committing to sell at that amount, but they will phrase it to the customer as a possibility. CLOSE Finalize the deal The next step adopted by the company is the Close. It takes place when the customer has accepted to purchase the car. The close is usually performed by the Sales manager or the Deputy Sales Manager. Their main goal during the Close process is to make the customer feel like they are getting a great deal. The main closing technique adopted by the company is to make some sort of compromise so, that there is a Win-Win situation for both the sides. Once the deal is made, the customer is sent to the finance office to sign all the papers. So, the next step for the salesperson is the Delivery.

ANALYSIS OF HARMONY HONDA, CHANDIGARH DELIVERY CSI and Referrals The Delivery is last step of the salesmans process. This step is often overlooked by the salesman because they have already closed the deal. However this step is done to conscientiously by all salespeople of the company. During the delivery, the salesman will again explain all the operations of the vehicle. The salesperson would describe the maintenance required and familiarize the customer with the service department. The reason for performing this step is that Salespeople that perform this step usually have fewer customers that suffer from buyers remorse i.e. they provide information so that buyer doesnt have any problem in operating the technology/gadgets of the car. Also, the salespeople they can improve their CSI (Consumer Satisfaction Index) scores by spending time to familiarize the customer with every aspect of the vehicle.

ANALYSIS OF HARMONY HONDA, CHANDIGARH

PURSUING A SCIENTIFIC APPROACH TO SALES

The word technology applies to many activities other than those associated with a company like Honda R&D. Honda Sales Research (HSR), for example, was established for the pursuit of sales using a scientific approach, in which the company would study various issues associated with sales operations and reflect those findings in the corporation's overall sales strategy. Founded in April 1966, the company also served as a bridge between Honda and its retail dealers. In contemporary terms, what Honda Sales Research intended to provide was marketing and sales support. Honda Sales Research had several important characteristics of operation: Provide a system whereby at the end of the process the actual state of sales operations is identified from a scientific point of view, and the information is fed to Honda Motor automatically. Thoroughly communicate the philosophy, ideas, and current status of Honda Motor to retail dealers by assisting in the exchange of opinions between the manufacturer and retail dealers. Promote the sales activities of the existing dealer network. Ensure that the products are not sold directly to the end user, and that they are marketed exclusively through the retail dealers. Operate only with sales representatives as a matter of principle, since the nature of business does not require management personnel, office facilities, or even clerical work. Employ a unique payroll system in which the sales representatives are compensated with salaries comparable to those of expert professionals.

ANALYSIS OF HARMONY HONDA, CHANDIGARH

COMPETITION ANALYSIS
Honda is facing too many threats due too many competitors in automotive industry and these competitors also offer Lower cost cars. The list below shows the performance of all cars in the past year: HONDA - Honda has moved up to position 6 overall. It has recorded substantial gains in its entire sub-10 lakh portfolio. The Jazz, written off even after the price cut, is now nudging the healthy 2,000 level. The Brio & City have put up a strong show. The Accord, Civic & CRV sales are comparatively low in comparison to the hatchback and sedan cars due to their high prices (luxury cars). MARUTI Maruti's best performers are cars that have been launched in the last 18 months and are powered by the 1.3L MJD diesel engine. The Swift & Dzire continue to go from strength to strength, while the Ertiga is gaining grip too. These three cars share the same platform, a cumulative 45,000 units in December 2012! HYUNDAI Hyundai's best-selling hatchback is the i20. This goes to show that the 6 - 8 lakh customers isn't as affected by external market conditions as a 3 lakh buyer. The Eon, i10 & Santro takes a noticeable hit on volumes. The Verna continues to impress with its success in the C2 segment, but the Sonata is already showing signs of struggle. MAHINDRA - Mahindra is at No.3 in best-selling car industry in the Indian market Bolero, Scorpio & XUV500 continue to laugh all the way to the bank. On the other hand, a facelift isn't doing anything to the Xylo's fortunes. TATA The Nano is the only Tata that has managed to retain its regular sales performance. The Indica, Indigo & Safari are severely affected by the negative market sentiment.

ANALYSIS OF HARMONY HONDA, CHANDIGARH TOYOTA Toyota has reasons to cheer in the grim market; the Innova, Fortuner and Etios bring the volumes home. On the flip side, the Corolla & Liva have a rather mediocre run. The Liva, especially, will find it hard to sustain competitive pressures. CHEVROLET The only shining star in the Chevrolet universe is the Beat. The Cruze suffers an inexplicable fall and we can only credit that to the updated Cruze being launched. FORD - Ford has a sole product - the Figo - to keep the cash registers ringing. The ol' Fiesta is sitting with 50% lesser sales. Ford needs the EcoSport and fast. Hope it's priced well as there is a lot of interest in this compact SUV. VOLKSWAGEN Volkswagen records its lowest sales in a year and is said to be working furiously on solving the problem. The Passat outsells the Superb and the Vento beats the Rapid. The Jetta records its second <200 month. Volkswagen's biggest challenge is Skoda selling nearly identical products with the same core competencies at noticeably lower prices. NISSAN The Sunny has a reasonable run @ 2,500 units, but doesn't seem capable of getting back to the levels it held in the first quarter of 2012. The Micra suffers a massive slip to a insignificant 500 units. SKODA The Rapid is Skoda's knight in shining armour. The company's engines are misfiring otherwise, with the Laura & Superb. The Fabia sells barely 20% of what it did in May 2011. (Dec 2012, Indian Car Sales Figures & Analysis, www.team-bhp.com)

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DIFFERENTIATION STRATEGY

When the competitive advantage of a firm lies in special features incorporated into the product/service, which are demanded by the customers who are willing to pay for those, then the strategy adopted is the Differentiation Business Strategy. The firm outperforms its competitors who are not able or willing to offer the special features that it can. Customers prefer a differentiated product/service when it offers them a utility that they value, and are willing to pay more for getting such a utility. A differentiated product/service stands apart in the market and is distinguishable by the customers for its special features and attributes. As Honda is being known for manufacturing Indias most engine-efficient cars so, its differentiation strategy of one car compared to other matters a lot. Another big difference can be seen that they make the car unique by their unmatched customer service. What distinguishes Joshi's Harmony Honda from others is our customer who thrives on experiences rather than status alone. Harmony Honda will not just provide Honda - technology and performance, but also the unique Joshi's sales and service philosophy - "Total Ownership Experience." Great customer service, as embodied in the "Total Ownership Experience", is not a marketing initiative or a short term commitment, it is a core part of Joshi's DNA. It is the reassurance to customers that they can purchase a new Honda in a hassle-free manner, enjoying respect and the

ANALYSIS OF HARMONY HONDA, CHANDIGARH confidence that will be taken care of throughout the entire period of Honda ownership. We see a huge opportunity to provide a standard of customer care that is unlike anything else offered in the trade today. We engage customer with experiences tailored around their lives and lifestyles, not just their vehicles. That's the reason; Harmony Honda has been always awarded No.1 in Customer Satisfaction in Sales & Service since inception. We are very pleased that we have always been able to achieve the highest grades in terms of satisfaction - for us this is both a confirmation and an incentive.

ANALYSIS OF HARMONY HONDA, CHANDIGARH

BRAND POSITIONING STRATEGY

Firms can design their marketing programs to position and enhance the image of a product offering in the minds of target customers. To create a positive image for a product, a firm can choose from among several positioning strategies, including strengthening the current position, repositioning, or attempting to reposition the competition. Harmony Honda's aim has always been to strengthen its current position. The key to strengthening a product's current position is to monitor constantly what target customers want and the extent to which customers perceive the product as satisfying those wants. We as a group believe that strengthening a current position is all about continually raising the bar of customer expectations. For example, Honda has always been known for quality and reliability. Recently, however Honda has shifted its positioning focus to wrap quality and value in the context of long-term value. The company's promotional campaigns explain how its cars have a lower cost of ownership when factors such as insurance, fuel, and maintenance are taken into consideration. Honda's positioning is different from the strategies pursued by Toyota (Quality), Suzuki (Fuel Economy), and Volkswagen (Engineering). By tweaking its positioning strategy, Honda understands that it must constantly raise expectations about value if it is to hold its position and remain competitive.

ANALYSIS OF HARMONY HONDA, CHANDIGARH

MARKET RESEARCH PERSONAL INTERVIEWS & SURVEYS

We conducted a small survey in which there were 150 respondents. From this survey, we found that out of every 100 customers 19 opt for Honda showing close competition between the different car brands.

Percentage
29% 19% Honda 19% 15% 18% Hyundai Maruti Toyota Others

QUESTIONNAIRES
We surveyed 50 people to find out there preferences about Automobile manufacturers; the data collected from the survey has been attached with this report. Also people are switching to diesel cars because of high petrol prices. However petrol is still the more favoured fuel.

ANALYSIS OF HARMONY HONDA, CHANDIGARH

Fuel Preference

Diesel 46%

Petrol 54%

DEGREE OF IMPORTANCE
We also found out that among the various options, people give most importance to mileage followed by price while buying a car and the least to the ease of purchase as seen in the bar diagram below:

3 2.5 2 1.5 1 0.5 0

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CAR MANUFACTURERS SALES

We have found that the sales of Honda in India have grown by around 350% in 2012 (Dec 2012, Indian Car Sales & Figures, www.team-bhp.com).

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HONDA ADVERTISMENTS AND MARKETING

ANALYSIS OF HARMONY HONDA, CHANDIGARH

ANALYSIS OF HARMONY HONDA, CHANDIGARH

ANALYSIS OF HARMONY HONDA, CHANDIGARH

FIELD WORK
Following pictures were taken by the group during visits to Harmony Honda Showroom, and while interacting with our Non Paying Sponsor (NPS).

ANALYSIS OF HARMONY HONDA, CHANDIGARH

ANALYSIS OF HARMONY HONDA, CHANDIGARH

THE ROAD AHEAD

The global business environment in which Honda Siel Cars India (HSCI) operates still remains uncertain because of global political and economic uncertainties, fluctuation in oil and raw material prices, and movements in currency finance and capital markets. Diesel engines are occupying a large amount of market share as compared to the petrol variants. At present, Hondas diesel exposure is limited. However, Honda has recently unveiled a 1.6 litre diesel engine to power the civic and 2.2 litre diesel engine for the accord in the European markets. The company is also now applying the final touches to its long-term diesel game plan for India. By the starting of next year, the company is planning to launch the diesel variant for the Honda CRV followed by other cars in the product category. According to Hormazd Sorabjee, editor Autocar India, When Honda puts to work its mind, and its best engineers, you can be sure that its diesel engines will be formidable challengers.

ANALYSIS OF HARMONY HONDA, CHANDIGARH

CONCLUSION
In this project we understood the nature and working of the sales department of Harmony Honda (Joshi Automotive ltd). These conclusions can be drawn from this study: Customer service aspect is one of the most crucial and important aspect of the company. A lot of time and effort is put up in the recruiting and selection process so as to hire good people. The company spent much time and money in the training and development of the employees so as to provide the best service (whether at shop floor level, or after services) to its customers by appointing a manager, especially for training programs. According to data obtained from surveys and questionnaires, (92%) almost all the Honda Customers were very happy with customer service of the company. Customers arriving at the Harmony Honda were impressed by the attention and interactions of the sales consultants of the company. The sales presentation method of the sales consultant is problem solving. The consultant responds to the queries asked by the customer accordingly. Hondas main target markets are the customers of income groups of 5 to 10 lakh which mainly buy brio and Honda city model.

ANALYSIS OF HARMONY HONDA, CHANDIGARH

PEER EVALUATION
Members Name Attendance at Meetings (30%) Akershit Sharma Amandeep Singh Bharat Nayyar Rajkaran Kamboj 30 25 13 22 90 30 26 12 22 90 30 26 13 21 90 30 Participation (Enthusiasm) (30%) 25 12 Contribution (15%) Degree of Cooperation (25%) 23 90 Overall (100%)

Group Members Signatures/Names in Capital Letters, and Date _______________________________ _______________________________ _____________________________________ _____________________________________

We met as a group on this marketing project a total of ___ times. We spent approximately ___ total minutes discussing issues and sharing information. We connected (actually met) with ___ real world executives that have all been named and identified in the acknowledgement, made ___ phone calls, made ___ appointments, sent out ___ emails during the course of this project. In our view our effect and accomplishments are of the order of A. above 90% B. 80- 90% C. 70- 80% D. 60- 70% E. less than 60%

ANALYSIS OF HARMONY HONDA, CHANDIGARH

APPENDIX 1 QUESTIONNAIRE
We are students enrolled in Professional Selling course in a BBA degree program at University Of The Fraser Valley, Canadas Chandigarh campus evaluating customer perceptions of Harmony Honda Automobiles. Your response is crucial to the success of this effort. Individual responses would be kept in strict confidence. Thank you. (circle all applicable) 1. What do you prefer the most as a means of transportation? a) Car b) Motorbike with gear/without gear c) Bus d) Rickshaw If any other, please specify ____________________________ 2. If it is a car, which car do you prefer? a) SUVs b) MUVs c) Hatchbacks d) Sedan If any other, please specify ____________________________ 3. Which Car brand do you prefer or like the most? a) Honda b) Hyundai c) Suzuki d) Audi e) BMW f) Mercedes g) Ford If any other, please specify ____________________________ 4. Why do you prefer the above mentioned brand car? a) Family Relations b) Mileage c) Visual Features d) Cost e) Engine Load g) Seating Space If any other, please specify ____________________________ 5. According to you, what is the thing you like the most in a Honda Car? a) Mileage b) Visual Features c) Seating Space d) Boot Space e) Engine Load g) Price If any other, please specify ____________________________ 6. A Honda car has long life with low maintenance costs a) Strongly Agree b) Agree c) Uncertain d) Disagree e) Disagree 7. In a Honda retail showroom, what do you like the most about the Sales Professionals? a) Interactions b) Dressing Style c) Problem Solving d) Individual Attention If any other, please specify ____________________________

ANALYSIS OF HARMONY HONDA, CHANDIGARH 8. Sales Professionals in a Honda showroom are never too busy to respond to customers request a) Strongly Agree b) Agree c) Uncertain d) Disagree e) Strongly Disagree 9. Sales Professionals and other employees give customers individual attention a) Strongly Agree b) Agree c) Uncertain d) Disagree e) Strongly Disagree 10. The sales professionals at a Honda retail showroom treat customers courteously on the phone a) Strongly Agree b) Agree c) Uncertain d) Disagree e) Strongly Disagree 11. When a customer has a problem, the Honda showroom employees show a sincere interest in solving it a) Strongly Agree b) Agree c) Uncertain d) Disagree e) Strongly Disagree 12. Honda offers efficient Post sale services to the customers a) Strongly Agree b) Agree c) Uncertain d) Disagree e) Strongly Disagree 13. The Honda showroom has operating hours convenient for all their customers a) Strongly Agree b) Agree c) Uncertain d) Disagree e) Strongly Disagree 14. Harmony Honda has a good image in your eyes a) Strongly Agree b) Agree c) Uncertain d) Disagree e) Strongly Disagree 15. I would recommend others to buy a Honda car a) Certainly Yes b) Yes c) Uncertain d) No e) Certainly Not Could you name a Car Dealer or two in Chandigarh that in your opinion ensures the best customer satisfaction? ___________________________________________________________________________ NAME: _______________________________________ AGE: a) 15-25 SEX: Male b) 26-35 c) 36-45 d) 46-55 e) 56 and greater

Female

OCCUPATION: a) Professional b) College/Graduate Student c) K-12 Student d) Homemaker e) other CONTACT: ___________________________________ EMAIL: ______________________________________

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APPENDIX 2 REFERENCES
1. Bhasin, Hitesh ; Sept 16, 2010; SWOT Honda Motors; Retrieved Feb 28, 2013 <http://www.marketing91.com/swot-honda-motors/> 2. Rachele, Q.; Apr 30, 2009; Honda: the Significance of Consumer Behaviour Why Must Honda Research Closely on Consumer Behaviour before Its Product is Launched?; Retrieved Feb 28, 2013 <http/voices.yahoo.com/honda-significanceconsumer-behaviour-3178193.html?cat=35> 3. Dec, 2012; Indian Car Sales Figures & Analysis; Retrieved Mar 10, 2013 <http://www.team-bhp.com/forum/indian-car-scene/121436-may-2012-indian-carsales-figures-analysis.html> 4. Etzel, Walker, Stanton & Pandit; Marketing concepts and cases; Tata McGraw- Hill Co, Inc.; New York; 2007; 13th edition; Retrieved Mar 10, 2013 5. Kurtz & Boone; Principles of Marketing; Thomson Learning Inc.; South Western; 2006; 12th edition; Retrieved Mar 17, 2013 6. Kotler, P.; Marketing Management; Pearson Publishers Ltd; Pg 159-166; New Delhi; 2007; 12th edition; Retrieved Mar 20, 2013 7. Kerlinger, Fred N.; Foundations of Behavioural research; Surjeet publications; Delhi; 1983; 2nd Indian reprint; Retrieved Mar 20, 2013 8. Erdos, Paul L.; Handbook of Marketing Research; Tata McGraw-hill book company; New York; 1997; Retrieved Mar 20, 2013 9. Gordon, Bruner C.; Journal of Services Marketing; Volume 2; Issue 3; 1998; Pg 4353; Retrieved Mar 24, 2013 10. Pickering, J.; European journal of marketing; Vol. 12; Issue 2; 1978; Pg 178-193; Retrieved Mar 24, 2013 11. Rhys, D.G.; Management decision; Vol. 15; Issue 2; 1977; Pg 242-258; Retrieved Mar 24, 2013

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APPENDIX 3 BIBILIOGRAPHY
TITLE Professional Selling AUTHORS Walker & Etzel Kurtz & Boone Fred N. Kerlinger MAGAZINES Auto World Over Drive Business Today Auto India WEB SEARCH www.hondacarsindia.com www.google.com www.wikipedia.com www.yahoosearch.com