PRODUCT MANAGEMENT

PRO

PRODUCT IMPROVEMENTS IN
HONDA ACTIVA

JBFBDV

ACKNOWLEDGEMENT

Contents
ACKNOWLEDGEMENT ............................................................................................................................. 1
EXECUTIVE SUMMARY ............................................................................................................................ 3
INTRODUCTION ....................................................................................................................................... 4
About the Company Honda Motorcycle & Scooter India Private Limited (HMSI) ............... 4
Corporate Philosophy: ................................................................................................................. 4
Mission: .......................................................................................................................................... 4
Vision:............................................................................................................................................. 4
Brand Philosophy: ........................................................................................................................ 4
PRODUCT PORTFOLIO ......................................................................................................................... 5
ABOUT THE PRODUCT ACTIVA ......................................................................................................... 7
Medium Involvement Product ........................................................................................................ 8
PRODUCT LEVELS FOR HONDA ACTIVA................................................................................................... 9
PRODUCT IMPROVEMENTS & ANALYSIS .............................................................................................. 10
Year 2009 New Honda Activa .................................................................................................... 10
Year 2013 ACTIVA HET ................................................................................................................ 12
Year 2015 ACTIVA 3G .................................................................................................................. 13
REFERENCES .......................................................................................................................................... 16

EXECUTIVE SUMMARY
Honda Activa, the two-wheeler manufactured by Honda Motorcycle & Scooter India Private
Limited (HMSI) was product chosen to analyse the changes and product improvements as
part of the project. The first step was understanding the company and the range of products
offered by the company, and then going focussing on the product Honda Activa. All the
features of the product were studied initially. Following that, changes and improvements made
in the product from 2009 till 2015 were tracked. Both primary and secondary sources of data
were used to compile the list of changes introduced in the product. Primary data as to the
details of changes and improvements made in Honda Activa was collected from Mr. Pramod
Akula, the Area Sales Manager of HMSI Ahmedabad. Along with primary data, secondary data
from the companys website and articles from various sources on the internet was also used.
It was found that three major improvements were made in the product, in 2009, 2013 and
2015. The major improvements/changes made were introduction of new engine, CBS (CombiBrake System) and HET (Honda Eco Technology).
After compiling the details of changes and improvements, an analysis was done to find out the
reasons behind introducing those changes. Further analysis was done to understand whether
these changes have actually provided competitive advantage to the company, to identify
whether the changes were necessary or not. Customer and expert reviews from secondary
sources were then used to understand which of those changes benefitted customers and what
the customers felt about those changes. Customer reviews and information regarding
customer perception of Honda Activa 3G were collected from Envision Honda, the Honda retail
outlet in Lucknow. Also, information regarding products and improvements introduced by
major competitors was analysed and compared with the changes made by Honda Activa. This
was done to understand whether Honda Activa leads the market or follows the market.

INTRODUCTION
About the Company Honda Motorcycle & Scooter India Private Limited (HMSI)
(Honda, 2015)
Honda is the largest manufacturer of two wheelers in the world, recognized the world over as
the symbol of Honda two wheelers, the Wings.
Corporate Philosophy:
HMSI operates on a principle, which is followed worldwide by all Honda companies.
Mission:
Maintaining a global viewpoint, Honda is dedicated to supplying products of the highest quality,
yet at a reasonable price for worldwide customer satisfaction.
Vision:

Respect for the individual: Honda recognizes and respects individual differences. The
respect for individual stems from the following three points:
o Initiative
o Equality
o Trust

The Three Joys (buying, selling and creating): In line with Honda's Philosophy, HMSI
conducts all its daily activities in pursuit of the following joys:
o The joy of buying high quality products.
o The joy of selling high quality products
o The joy of manufacturing high quality products

Brand Philosophy:
"The Power of Dreams" as a way of thinking guides and inspires Honda to move forward. The
strength of the company comes from this philosophybased on the visionary principles of the
founder, Soichiro Honda.
In 1999 Honda entered India arrived as Honda Motorcycle and Scooter India Pvt. Ltd. (HMSI),
a 100% subsidiary of Honda Motor Company Ltd., Japan. Since its establishment in 1999 at
Manesar, District Gurgaon, Haryana, Honda has lived up to its reputation of offering the
highest quality at the most reasonable price. Despite being one of the youngest players in the
Indian two-wheelers market, Honda has become the largest two wheeler manufacturer as well
as the second largest two-wheelers company in India. Expanding to full operations , Honda
production capacity has jumped 30% year on year to 2.8 million per annum in FY 12- 13.

PRODUCT PORTFOLIO
Product Family Two wheelers
Product class Motorcycle, scooter, superbikes
Product Lines 110cc, 125cc, 150-160cc, 250cc etc.
Products Activa 3G, Activa 125 Aviator, Dream Yuga etc.
SKUs(based on colours) Black, red, majestic grey etc.

Athletic Blue Metallic

Black

LIVO
CD110 DREAM

Black with Red Graphics

Black with Grey Graphics
Black with Blue Graphics

DREAM YUGA
110CC

DREAM NEO

125CC

Black
Geny Gray Metallic
Maple Brown Metallic
Imperial Red Metallic

CBF STUNNER

CB TRIGGER

MOTORCYCLES

150160CC

CB UNICORN
160
CBR150R

250CC

125CC

Black
Meteor Green Metallic
Pearl Sunbeam White
Pearl Sienna Red
Vibrant Orange
Black & Candy Palm
Black &Green
Pearl Sunbea
White
Sports Red

CBR250R

ACTIVA 125

Rebel Red Metallic

Midnight Blue Metallic
Pearl Amazing White
Black

ACTIVA 3G
SCOOTERS
DIO
110CC

Sports Red
Black
Candy Palm Green
Candy Jazz Blue

AVIATOR
TWO
WHEELERS
ACTIVA I

650CC

Alpha Red Metallic

Pearl Amazing White
Autumn Beige Metallic
Black
Orchid Purple Metallic

CBR650F
CB 1000R

1000CC

Sports Black
Vibrant Blue
All Black
Sports Red
Heavy Grey Metallic
Black
Electric Yellow Metallic
Sports Red
Sports Red
Pearl Sports Yellow
Candy Palm Green
Black

Imperial Red Metallic

Geny Gray Metallic
Pearl Igneous Black

Pearl Sunbeam White

Sports Red
CBR Repsol

Black
Lusty Red Metallic
Trance Blue Metallic
Geny Gray Metallic
Pearl Amazing White

Pearl Igneous Black

Standard Silver Metallic
Rebel Red Metallic
Pearl Sunbeam White

Pearl Metalloid White

Pearl Sunbeam White
Black
Sports Red
White
White & Red

CBR 1000RR

SUPERBIKES

Pearl Amazing White

Majestic Grey
Black With Red Stripes
Black With Violet Stripes

CB TWISTER

CB SHINE

Sunset Brown Metallic

1200CC

VFR 1200F

Red

1300CC

VT 1300CX

Black

1800CC

GOLDWING

Dual Tone Candy

Prominence Red
Pearl Glare White

ABOUT THE PRODUCT ACTIVA

The name Honda Activa and Scooter are synonymous to each other. Since its launch in
2001 as the first two wheeler by Honda in India, Activa has revived the fading scooter market
in India and reinvented convenient mobility for the entire family.Activa has a conservative
styling and neutral design to please the masses.
Fostered by the trust and confidence of Indian customers in Activa, Honda escalated from
55,000 units in first year (2001) to becoming the market leader in just 3 years. Since then,
Activa has matured to sell over 2.1 million units in FY2014-15, displacing motorcycles to
become Indias No. 1 Selling 2Wheeler for 2 consecutive months (June-July15) as well as
undisputed market leader with 59% market share in the scooter segment.
With features like superior four stroke engine, Honda Eco Technology, V-matic (gearless)
transmission, durable all metal body, Convenient Lift-up Independent Cover(CLIC)
mechanism, tubeless tyres and combi-brake system, Activa has delivered commendable
performance and has bagged various awards and achievements over the years. (Honda,
2015)
Year

Awards and Achievements

2001

Scooter of the Year(BS Motoring)

2002

Scooter of the Year by Overdrive Magazine

2007

Best automobile brand of India (Planman Media)

2008

Scooter Customers Satisfaction No.1-CNBC TV-18-Auto Car Auto

Awards

2009

Scooter of the Year- ET ZigWheels Awards

2014

Best-selling 2wheeler of the country by Economic Times

Source: http://www.honda2wheelersindia.com/media-center/awards/

Recently in August 2015, has set a new record with Activa becoming the first scooter in India
to achieve a phenomenal 1 crore unit sales landmark.
Honda Activa is the flagship model of HMSI. They entered into the India market after their
separation with Hero Motorcorp in 2000 with Activa. Apart from the base model, 2 more
models ACTIVA 125 & ACTIVA I have also been launched in the Indian market
Today, every second scooter customer in India rides an Activa! (Honda, 2015)

Medium Involvement Product

Marketing strategy should take into account the level of involvement that a consumer has
with a specific product, as this also dictates the type of information that consumer needs to
process in order to make a purchase decision.
Honda Activa is classified as a moderate/medium involvement product as the associated
price, perceived risk, personal relevance and social visibility is neither too high nor too low.
FCB Matrix

PRODUCT LEVELS FOR HONDA ACTIVA

Core Benefit
Transportation

Basic Product
Good Braking
system
Lighting
Gearless
Transmission
Underseat
luggage space

Expected
Product

Augmented
Product

Comfortable
and smooth
ride
High mileage
Easy to handle
Good aftersales service

Best aftersales service

across twowheelers
CBS for
improved
safety: reduces
braking
distance and
increases
stability while
braking
HET
technology
leading to
higher mileage

(Kotler, 2013)

PRODUCT IMPROVEMENTS & ANALYSIS

We have tracked Honda Activa from year 2009 present. During this period, Honda made
changes 3 times to their Flagship model. These changes happened in year 2009, 2013 and
2015.
2009 All New Honda Activa

2013 Activa HET

2015- Activa 3G

We will be looking into the upgrades in chronological order

Year 2009 New Honda Activa

(HMSI, Joy ON & ON Honda unveils the New refreshing Activa, 2009)
Upgrades

Advantages

Customer Reviews

New 110cc Engine from 102cc

Delivered more power ( 8 bhp from 7

Users were delighted

Engine

bhp)

with increased power

15% Increased Mileage

Fuel Efficiency Increased

Mechanical Makeover

Combi Brake System (First

time ever in India)

Tuff up Tube in Rear Tyre

(Offered by HONDA)

Highly appreciated by
users

Braking Distance Reduced and

Highly appreciated by

provides increased Stability while

people riding the vehicle

Braking

in congested spaces

Honda Exclusive - Reduces the

chances of Puncture (Added

Appreciated

Comfort& Safety)

Cosmetic Makeover
Increased Underseat Storage

More space available to keep stuff

Capacity to 18L

(Added Comfort)

Key Shutter (Already Used by

Safeguards Ignition Slot ( Anti-Theft

Pleasure in the Market)

Feature)

Halogen Lamp Headlights

Better Illumination

Indifferent

Make it more stylish and differentiate

Appreciated for better

itself from competitors

style

Clear Winkers

Indifferent

Indifferent

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Lean Body Cover ( Thickness

reduced from 10mm to
0.8mm)

Reduce Weight and Increased Fuel

Efficiency
Increased comfort for pillion rider,

Grab Bar

Spare wheel was removed led to

attractive rear

Bag Hook

Wider Foot Board

Increased convenience by securing

luggage on Footboard
More Space for Foot

Not Aware about this

Appreciated for stylish

looks

Indifferent

Appreciated by users

Combi Brake System

Competitors Hero Pleasure, Scooty Pep+

Analysis
Before the launch of New Activa (2009 edition), Activa was competing in 100cc and less
category. Honda was facing stiff competition from Hero Pleasure. Both the vehicle were 102
cc and had more or less same offerings.

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The only difference between Activa and Pleasure was in their target groups. Honda Activa
positioned itself as a Unisex Scooter whereas Pleasure prime focus was on women
category.
In order to clearly differentiate itself more, Honda launched New Activa with some major
changes like new engine, better fuel efficiency & CBS (first time launch in India).
All the above changes provided Honda Activa with clear advantage over its competitors.
Honda Activa moved itself from 100cc category to 110cc category where it had no rivals and
this led to considerable increase in their market share.

Year 2013 ACTIVA HET

(Overdrive, 2013)
Upgrades
Honda Eco Technology
(Patented Technology)

Advantages
Better Fuel Efficieny

Customer Reviews
Activa feels much
livelier and yet smoother

Mechanical Makeover
Nickel Coated Spark Plugs
(First in Scooter Segment)

Improved Combustion

Crankcase offset

the market, Customer

Reengineered Inlet ports

Low Tension Piston Rings
Overall weight Reduction

Positive feedback from

reported an increase of
Reduced Friction in the Engine

5kmpl in the mileage

Increased Efficiency

Cosmetic Makeover
HET Emblem over Left Hand
Side Engine Cowl

To differentiate it with older model

Indifferent

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COMPETITORS - TVS Wego, TVS Jupiter (was expected in few months), Hero Maestro
ANALYSIS
-

In order to combat higher fuel prices

To compete with current and expected products in the market

In order to differentiate itself and cater to mileage obsessive segment, Honda launched
Activa with their patented technology which claimed to increase the fuel mileage. With
this launch, Company claimed more mileage than existing competitors.
Yes, Honda HET did provide a clear competitive advantage over Competitors. Mileage
obsessive customers truly liked the product & it got positive feedback from the experts as
well.

Year 2015 ACTIVA 3G

(HMSI, HMSI, 2015)

Upgrades

Advantages

Customer Reviews

Cosmetic Makeover
Front fascia has been

Looks more Stylish

tweaked mildly with a

and looks more

restyled and larger faux

attractive

vents
Handlebar mounted

Easy to differentiate

More Attractive Looks

headlamp and turn

indicators have been given
Positive feedback - It

minor updates
Elegant Tail Lamp and clear

Distinguishes it from the rest

winkers
3D HONDA emblem

does add to feel and

look of the vehicle

Adds premium feel to the Vehicle

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ELEGANT TAIL LAMP

HONDA 3D EMBLEM

LARGER FAUX VENT

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COMPETITORS Hero Maestro, TVS Jupiter, TVS Wego, Suzuki Lets, Yamaha
Fascino, Mahindra Gusto
ANALYSIS
With bombardment of Scooters in the market, Honda has changed its flagship models
design. Honda have tried to make it more stylish. Honda Activa has got a cosmetic
makeover in order to entice customers who are looking for style along with performance. It
retains its elegant and simple design but few changes like newly designed taillight, larger
faux vents helps it to distinguish itself from competitors. 3D Honda Emblem which earlier
was a part of premium Honda Motorcyles has also been added to enhance style and
premiumness of the vehicle.
Though the move from Honda seemed logically as they wanted to make their product
superior in terms of style, nothing much can be said about the effect of it on sales numbers.
Honda has got thumbs up from customer and industry expert for new looks.

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REFERENCES
(2009, March 28). Retrieved from Mouthshut: http://www.mouthshut.com/bikes/HondaActiva-reviews-925034646
(2013, Feburary 14). Retrieved from Overdrive: http://overdrive.in/reviews/2013-hondaactiva-het-in-india-road-test/
AutoCar. (2009, September 30). Retrieved from AutoCar India :
http://www.autocarindia.com/auto-reviews/honda-activa-269167.aspx
BikePortal. (2015, October 21). Retrieved from
http://bikeportal.in/newbikes/honda/activa/reviews/
HMSI. (2009, March 27). Joy ON & ON Honda unveils the New refreshing Activa.
Retrieved from HMSI: http://www.honda2wheelersindia.com/joy-on-on-hondaunveils-the-new-refreshing-activa/
HMSI. (2015, October 21). Retrieved from HMSI:
http://www.honda2wheelersindia.com/activa3g/
Honda. (2015). Honda About Us. Retrieved from Honda Power of Dreams:
http://www.honda2wheelersindia.com/about-us/philosophy/
Honda. (2015, August 18). Honda Activa crosses One Crore unit sales landmark. Retrieved
from Honda the power of dreams: http://www.honda2wheelersindia.com/hondaactiva-crosses-one-crore-unit-sales-landmark/
Kotler, P. (2013). Marketing Management. Pearson.

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