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UNIVERSITY OF MYSORE
PROJECT REPORT
A STUDY ON CUSTOMER SATISFACTION OF HONDA ACTIVA

SUBMITTED BY
DILIP H S
Reg. No: 13MB0220
UNDER THE GUIDENCE OF:
Mr. AJAY M. JADHAV
Assistant Professor - DoS in Business Administration,
Pooja Bhagavat Memorial Mahajana Post Graduate Centre
Mysore 570016
Project Report submitted to the University of Mysore in partial
Fulfilment of the requirements of IV Semester MBA Degree
Examinations May/ June 2014 - 15

DEPARTMENT OF STUDIES IN BUSINESS ADMINISTRATION


POOJA BHAGAVAT MEMORIAL MAHAJANA POST GRADUATE CENTRE
K. R. S. ROAD, METAGALLI, MYSORE

CERTIFICATE

DEPARTMENT OF STUDIES IN BUSINESS ADMINISTRATION

2014- 2015

This is to certify that Mr. DILIP H S, Reg. No. 13MB0220, our student of 4TH semester
MBA has carried out the Project on A STUDY ON CUSTOMER SATISFACTION OF
HONDA ACTIVA as part of his curriculum activity as per the norms for obtaining a
Post-Graduation Degree in Master of Business Administration from UNIVERSITY OF
MYSORE during the year 2014- 2015

Mr. AJAY M. JADHAV


Assistant Professor - DoS in Business Administration
Pooja Bhagavat Memorial Mahajana Post Graduate Centre
Mysore

CERTIFICATE
POOJA BHAGAVAT MEMORIAL MAHAJANA POST GRADUATE
CENTRE, K R S ROAD, METAGALLI, MYSORE.

DEPARTMENT OF STUDIES IN BUSINESS ADMINISTRATION


2014- 2015
This is to certify that Mr. DILIP H S. student of IV semester MBA, bearing the register number
13MB0220 has successfully completed the Project Work titled A STUDY ON CUSTOMER
SATISFACTION OF HONDA ACTIVA in partial fulfilment of the requirements for the
award of Post-Graduation Degree in Master of Business Administration of the University of
Mysore, during the academic year 2014- 2015

Dr. C K Renukarya

Prof. S R S Khadri

Director
PBMM P. G. Centre
Mysore

Director, Dept. of Studies


in Business Administration
PBMMPGC, Mysore

DECLARATION
I, hereby declare that the report title A STUDY ON CUSTOMER SATISFACTION
OF HONDA ACTIVA is a record of independent research carried out by me
under the guidance of Mr AJAY M JADHAV- Assistant Professor, DoS in
Business Administration Pooja Bhagavat Memorial Mahajana Post Graduate
Centre, Mysore, and I further declare that the findings in the Project Report are
independent study done by me.

Place: Mysore
Date:

DILIP H S

ACKNOWLEDGEMENT

I place my Sincere thanks to Director Dr. C K Renukarya, honourable Director


P.B.M.M.P.G. Centre, Prof. S R S Khadri. Director of Department of Studies in
Business Administration and Mr AJAY M JADHAV- Assistant Professor, DoS
in Business Administration, Pooja Bhagavat Memorial Mahajana Post Graduate

Centre for having provided necessary facilities to undergo my project work.

Date:

DILIP H S

Place: Mysore

Reg. No. 13MB0220

CONTENT
CHAPTE
R
1

CONTENTS
INTRODUCTION

2
3

4
5
6
7

PAGE
NUMBER
7-11

Introduction
Statement of the problem
Objectives of the study
Need for the study
Scope of the study
Methodology
Limitations of study

REVIEW OF LITERATURE &


THEORITICAL BACKGROUND
INDUSTRIAL PROFILE
COMPANY PROFILE
PRODUCT PROFILE
ANALYSIS & INTERPRETATION
OF DATA
FINDINGS, SUGGESTIONS &
CONCLUSIONS
BIBLOGRPHY
ANNEXURE

12-28
29-43

44-60
61-65
66-67
68-73

INTRODUCTION

INTRODUCTION
The two wheeler segment in the automobile industry plays a vital role in India. The
present day market is such that a two wheeler is affordable by middle class people
in urban areas. It is also more convenient for travelling short distance within the
city and for individual, over, the years the sales figured of the two wheelers has
increased to a very large extent. The sales of the two wheeler in 1950 were merely
900 units, whereas now the sales have gone up to millions.
The two wheeler market mainly consists of scooterette and
motorcycles. The motorcycles segment forms 65% of whole of two
wheeler segment. Whereas earlier the motorcycles had a very
small share in the two wheeler segment but with the collaboration
of Indian and Japanese companies (Honda, Suzuki, and of
Kawasaki) the share has increased tremendously with reason
being that two wheelers had a superior engine, better pick-up,
good mileage, improved designs and large options to choose
from.
The two wheeler segment is divided into two stroke and four
stroke categories. The two strokes consists of kinetic Honda,
Nova, Yamaha Rx135, kb-125, etc. the four strokes category
consists of Honda Activa, TVS Scooty, Kinetic Style, etc.
Most of the officials or some persons generally prefer these two
wheelers, such as Honda Activa, Kinetic Honda, Scooty, etc, as
they are more concerned with mileage. They are also concerned
with these two wheelers, as they prefer unguarded vehicles, so
that it would be easy to ride the two wheelers in the cities where
there is much traffic.

The scooterette segment will continue to lead the demand for two wheeler in the
coming years.
The Indian two wheeler industries produced and sold about 3.4
million units in the year 2009-10. Like any other Indian industry,
the policy environment guided and controlled this segment of the
industry as well. Licensing horns ruled day till the mid 80s access
to foreign technology inputs and foreign investment were strictly
government controlled.
Since mid 80s, the Indian automobile industry was administered select doses of
liberalization, foreign collaboration coupled with Indian market potential, attracted
world major companies like, Honda, Yamaha, Suzuki, etc.
STATEMENT OF THE PROBLEM
With the recent influx of different brands in todays four wheel
auto segment each striving to satisfy customer with the end
results of maintaining loyalty, at present cars as such have
become necessity but not a nicety.
With this outlook of todays market it is even a laymans
perceptive that Honda has stood against all odds this indicates
that Honda, by itself reflects a satisfied customer.
Keeping in mind curriculum requirement and organizational
requirement the study has been conducted to find out customer

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satisfaction

towards

Honda

Activa.

However,

due

to

time

constraint an in depth study could not be undertaken.

OBJECTIVES OF STUDY
The main objectives of the study are:
1. To find out the customer satisfaction level.
2. To find out from which dealer the customer has purchased their
product and the source of awareness about the dealership and
the product.
3. To find the availability of finances schemes and mode of
purchase through the various financial schemes.
4. To find customer satisfaction level towards sales process.
NEED FOR THE STUDY
The need for the study arises in order to create awareness amongst the customers
and to determine the customer satisfaction.
The need for the study arises due to the following reasons: 1. To measure the level of customers satisfaction towards silicon Honda.
2. To know the customer preferences towards Activa.
3. In order to retain the existing customers.
4. To market brand loyally towards the product.
5. To know the customers opinion towards existing after sales service provided
by the company.

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SCOPE OF THE STUDY


1. It helps to know that which publicity media gives maximum retention to the
customers.
2. The study also helps the company to improve their standard of service & handle
the competition in the near future.
3. It also helps in putting in possible improvements, additions, and new strategies
and offers the customers.
4. It also puts a detailed insight into the different aspects of the company, such as
manufacturing, marketing sales, production and finance etc.
METHODOLOGY
Research Design
It has been assumed that source of data are the foundation,
based upon which the actual required information can be
extracted.

Sample Procedure
Empirical field studies require collection of first hand
information on data pertaining to the unit of study from the field.

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This sampling plan is effective in getting the first hand


information, i.e. primary data, which has been required for the
study by the research.

LIMITATIONS OF THE STUDY


A good project report sells the result of the study, but every
project has its own limitations.
1. The study could not be conducted on a large sample size and
area because of time constraints. This covers all the academic
requirements strictly maintaining organization standards; a
sincere attempt has been made to collect information.
2. The number of sample size is 100 respondents.
3. The study is targeted to the population of students, officials,
servicemen, businessmen and professionals.
4. The study is confined only to the Mysore city confined limits.
5. The study is limited to the time constraint. And was to be done
only in Mysore city.
Some respondents did not answer correctly as they were short of
time.

13

14

REVIEW OF LITERATURE

15

Bardia Alimohamadi; Nasrin Khorshidi(1980)


In beginning of 1980s, a majority of business sectors were suffering from high
operating costs and inefficiencies which were a big loss to these sectors. These
inefficiencies and lack of effectiveness were consequently producing high levels of
customer dissatisfactions as well.
Elinor Johnson(1984)
This study is based upon the premise that creating value is the basis for all
businesses. The research problem and ultimate purpose of the study is to determine
how customer perceived value can be improved at the Liberty Program, Naples
Italy
Ina Landua(1986)
Research Question/Purpose: Due to environmental legislation, economic
influences and increasing concern about the environment among the general
public, todays businesses are becoming more committed to environmental issues.
Some enterprises yet have implemented a green strategy.
Laleh Nosrati(1993)
The daily growth of the internet and e-commerce has changed the way of
marketing and selling products and services. As a result of development in
electronic information resources and the evolution of the "digital age" product
sellers and information service providers face many new challenges.
Saadullah Khan(1994)
In the world of banking, the development in information technology has an
enormous effect on development of more flexible payment methods and more-user
friendly banking services. Electronic banking services are new, and the
development and diffusion of these technologies by financial institutions is
expected to result in a more efficient banking system.

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Mojdeh Ghezelayagh (1995)


Banking, one of the most information intensive sectors, is an ideal domain for the
successful development of e-commerce. The present study focuses on e-commerce
opportunities for improving customer services in the Iran banking sector.

Maria Hansson; Gunilla Hansson(2003)


How effective and satisfactory replenishment planning and information sharing
shall be designed to improve the security of consumer satisfaction? In which areas
is it most essential to do changes in order to come closer to a more desirable
replenishment planning and information sharing situation in the food supply chain?
Purpose: The purpose of this master thesis is to provide propositions for improving
replenishment planning and information sharing in the food supply chain in order
to improve the consumer satisfaction. Method: The background to this master
thesis led us to be nominalists and functionalists with a systems approach
Parmita Saha; Yanni Zhao(2005)
In the last few years we have witnessed a substantial growth of internet-based
services, both from pure Internet businesses and from traditional companies that
are developing online services. One of the key challenges of the Internet as a
service delivery channel is how they manage service quality, which holds a
significant importance to customer satisfaction.
Mohammed Alam; AtiqurRahman Khokhar (2006)
The banking services have been dynamic during the last decade due to the advent
of the Internet in banking sector. One of the most vital challenges of the Internet as
a service delivery channel is providing and maintaining service quality. Service
quality is an input of customer trust which becomes satisfaction and lead to loyalty
as an output.

17

REFERENCE
Bardia Alimohamadi, Nasrin Khorshidi(1980):The inefficiencies and lack of
effectiveness were consequently producing high levels of customer
dissatisfactions.

Elinor Johnson(1984):creating value is the basis for all businesses.

Ina Landua(1986): Todays businesses are becoming more committed to


environmental issues.
Laleh Nosrati(1993):The development in electronic information resources and the
evolution of the "digital age" product sellers and information service providers face
many new challenges.
Saadullah Khan(1994):The development of Electronic banking services by
financial institutions is expected to result in a more efficient banking system.
Mojdeh Ghezelayagh (1995): The successful development of e-commerce gives
opportunities for improving customer services in the Iran banking sector.
Maria Hansson; Gunilla Hansson(2003):The effective and satisfactory
replenishment planning and information sharing shall be designed to improve the
security of consumer satisfaction.
Parmita Saha; Yanni Zhao(2005): Online services is one of the key challenges of
the Internet as a service delivery channel to manage service quality, which holds a
significant importance to customer satisfaction.
Mohammed Alam; AtiqurRahman Khokhar (2006) Service quality provided by
Internet banking sector is an input of customer trust which becomes satisfaction
and lead to loyalty as an output.

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THEORITICAL BACKGROUND

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CUSTOMER SATISFACTION
Customer satisfaction suffices the customer. Customer visualizes, perceives and
will have some expectations before making any purchase. If the product meets
customers expectations then he is satisfied. Customer will be satisfied when the
product meets the basic needs set and therefore utility of a product is nothing but
consumers estimation of products over all capacity to satisfy his needs.
Customer satisfaction is a function of perceived performances and expectations.

Dissonance reducing buying behavior


The customer might experience post purchase dissonance by noticing
disquieting features of product or by hearing favorable things about other product.
If performance of product does not satisfy perceived expectations, the customer is
dissatisfied, where he develops dissonance.

Post purchase satisfaction


When the customer is satisfied or delighted he will be dazzled. If the product
matches the expectations of customer he is satisfied. The customers satisfaction is
a function of closeness between the buyers product expectation (E) and products
perceived performance (P)

20

Post purchase actions


There is high probability of purchasing the product if the customer care satisfied.
Marketers should take keen interest in handling customers dissatisfaction.
Marketers job is to understand buyers behavior and aim

at satisfying customers. The satisfied customers will have brand loyalty and strong
affinity towards the product, so there is less scope of switching to other brands.
Satisfaction can be used as gauge for measuring effectiveness of customer care of
the organization. This increases the customer loyalty.

Customers buying decision process


Social factors, personal factors, and psychological factors influence

21

SOCIAL
Culture

PERSONAL
PSYCHOLGICAL
Age

Sub cultural

Motivation
Life style

Cross-cultural

Perception
Occupation

Social class

BUYER
Learning

Customers buying decision process.


The company should ignore competitions and concentrate on customers one-onone that will drive competition crazy. This can be most potent competitive weapon.
Customer satisfaction should be main objective, goal and marketing tool for a
company.
Tools for tracking & measuring the attitude of the satisfied customers
The alert companies set up systems to monitor the attitude of customers by
monitoring changing levels of customer satisfaction before they affect sales it takes
action. The main attitude tracking systems are:
1. Complaint & suggestions system
2. Customer panel
3. Customer surveys
4. Ghost shopping
5. Lost customer analysis

22

COMPLAINT AND SUGGESTIONS


A customer-oriented company records, analysis and responds to complaints
and tries to correct problems by new ideas and should welcome complaints and try
to correct problems by new ideas and should help customers. Many hotels,
restaurants and banks use this feedback method to track and measure customer
satisfaction.
Complaint handling strengthens buyer-seller relationship by building trust.
Follow the LIST method to handle complaints:

L-ISTEN TO COMPLAINNING CUSTOMERS


I-SOLATE CORE PROBLEM THROUGH QUESTIONS
S-OLVE PROBLEM FROM KEEPING CUSTOMER INFORMED
T-AKE FEEDBACK FROM CUSTOMERS TO MAKE SURE HE IS SATISFIED
CUSTOMER PANELS
Companies should run panels of customers who have to communicate
periodically. Panels are more representatives of the range of customer attitudes.
Panels would reveal kinds of people who responded to promotion.

23

CUSTOMER SURVEYS
It is conducted to learn how product has affected brand choice behavior,
what they thought of it and it is direct measure of satisfied customers.

Companies periodically send questionnaires or make telephonic calls to a random


sample to prospective customers to evaluate satisfaction level on 5 point scale
(very dissatisfied, dissatisfied, neutral, satisfied, very satisfied) and ask about
quality of service and various other aspects. Management compare these ratings
and can arrive at customer satisfaction level, measurement of customers repurchase
intention or willing ness to recommend the product to others are also judged.

TAKE ACTION

MEASURE CUSTOMER OPINION

ANALYSE AND INTERPRET INFORMATION

PLAN CORRECTIVE MEASURE

MEASURES

GHOST SHOPPING
Customer oriented companies hire persons to pose as potential buyers to
report their findings on strong and weak points they experienced in buying
company and competitors product. The ghost shoppers even pose certain problems
to test whether the companys sales personal handle the situation well.
RETENTION OF CUSTOMERS
Retaining a single customer is most important than attracting many new
customers. Company should reconfigure all planning processes towards customers.

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Direct all marketing efforts towards meeting customer needs. Create corporate
strategy aimed at customer value.
Company can make customers happy by providing reliability,
responsiveness, assurance, empathy and tangible materials.

The company should create an emotional bondage between themselves and


customers. It is always more costly, pay less attention to competing brands, buys
other product that company latter adds to its line. Marketer should be aware of
profitable and non-profitable customers.

CUTOMERS WILL BE SATISFIED BY CONTINUOUS IMPROVEMENT


PROCESS AND MAINTAINING TOTAL QUALITY
Customers are judged of quality. Therefore, highest quality of products should
be companies objective maintaining zero defects or 100% quality. Thus
improves quality, inurn quality increases cost effectiveness.
Proven method and procedures should be adopted and applied consistently.
Quality

derivativeness

should

be

compulsory,

satisfying

customers

requirements.
Companies should have quest for quality and should meet standards.
Quality should be in every stage from planning to production.
Quality should be in hallmark of the company. Company should promise
highest standard of product quality, safety, comfort and dependability.

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Companies should have quest to find innovative ideas and featured or attributes
that will create excitement and desire and they should look beyond what the
customer says.

WHAT IS MARKET?
Market consists of all the potential customers sharing a particular need or wants
who might be willing and able to engage in exchange to satisfy that need or wants
MARKETING
Marketing is so basic that it cannot be considered as a separate function. It
is the whole business seen from points the point of view of its final results, that is
from customer point of view business success is not determined by the producer
but by the customer
Peter.F.Drucker
Marketing consists of all activities by which a company adapts itself to its
environment
Ray Corey

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WHAT IS MARKETING?
Marketing is a social and managerial process by which individuals and groups
obtain what they need and want through creating, offering and exchanging
products of value with others.
.
MARKET SEGMENTATION
The task of breaking the total market into segments that share common
properties is market segmentation. It is the process of identifying a group of
consumers with similar needs and producing a product that will meet those needs
at a profit.
Market segmentation will facilitate the firm to identify and find out the additional
benefit desired by the people to pay benefits and source where they would like to
buy it.

CONSUMER BEHAVIOUR
The term consumer behaviour refers to the behaviour that consumers display in
searching for purchasing, using, evaluating and disposing of products and services
that they expect will satisfy their needs. The study of consumer behavior is the
study of how the individuals make decisions to spend their available resources
(time, money, effort) on consumption related items. It includes the study of what
they buy, why they buy, when they buy it, where they buy it and how they buy it
and how often they use it.
WHY WE STUDY CONSUMER BEHAVIOUR?
There are various reasons as to why people study consumer behavior. As
consumers, we benefit from insights in our own consumption related decisions:
what we buy, why we buy, how we buy and the promotional influences that

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persuade us to buy. The study of consumer behavior enables us to become better


and wiser consumers.
As marketers and future marketers, we are able to understand consumer behavior,
then we can predict how consumers are likely to react to the various information,
which help us to shape the marketing strategies accordingly to gain a competitive
advantage in the market.
Marketers have also observed a change in the psychological behavior of the
consumers. There is an increasing awareness among the consumers to the changes
taking place around them resulting in an urge to purchase various goods and
services. In other words, there is a positive buying motive shown by the
consumers. Consumer behavior was a relatively new field of study in the mid to
late 1960. This new discipline borrowed heavily from the concept enveloping other
scientific disciplines like psychology, sociology, etc. Many early theories were
based on the economic theory, on the notion that individual act rationally to
maximize their benefits in the purchase of goods and services.
The initial thrust to consumer research from a perspective here marketing
managers wanted to know the specific causes of consumer behavior. They regarded
it as an applied marketing science: if they could predict consumer behavior they
could influence. This approach has come to known, as positivism and the people
concerned with predicting consumer behavior are known as positivists.

DEFINATIONS OF CONSUMER BEHAVIOUR

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According to Walters & Paul Consumer behaviour is the process whereby


individuals decide what, when, where, how and from whom to purchase goods and
services.
Consumer may be defined as all the individuals and households that buy and
acquire goods and services for personal consumption.
Consumers differ in the age, income, taste and preference and educational levels
and therefore the marketers should identify the different consumer groups and
develop products and services according to the needs of the consumers.
CONSUMER BEHAVOIUR MAY BE DEFINED AS
The process whereby the individuals decide whether what, when, how and from
whom to purchase goods and services.
IMPORTANCE OF CONSUMER BEHAVIOUR
1) Consumer behaviour is dynamic and changes continuously. According to the
consumer tastes and preference. Therefore a study of to analyze, monitor and
understand the consumer behaviour is very essential.
2) Only by studying consumer behaviour a businessman can solve the problems
faced by the consumers.
3) A study of consumer behaviour helps in effective marketing management.
4) Product decision regarding price, promotion and distribution can be taken after
studying the consumer behaviour and how they react to the product.
5) In an Indian market where changes take place very often, where the
government keeps on changing, it is essential to study the expectations of the
consumer based on the changes.
6) Consumer behaviour study helps a marketer in exploiting new opportunities
and meeting the challenges and requirements of an Indian consumer.
Consumer behaviour can be said to be the melding of all those bodies of
knowledge concerning with human behaviour-behavioural sciences.

29

30

INDUSTRY PROFILE

Since time immemorial man has been trying to make things which would make life
easier. Among these is the transportation for himself and the goods.

31

The

invention

of

wheel

revolutionized

the

concept

of

transportation. Initially human beings and animals were used for


drawing carts but the zest to faster and deliver large quantities in
faster period resulted in constant improvement of wheel driven
carts.
In 1985 Gattlib Palmer and Kalt Benz invented the first petrol
driven

car.

This

was

the

beginning

of

the

trend,

which

revolutionized the concept of personal transport. But with the


passage of time the need for a fuel-efficient light weight vehicle
was felt.
Thus resulted in the invention of Europe, a car on two wheels. The
two wheelers came to recognize as a family vehicle and have
retained this character of date. Not only it is recognized to be
useful mode of transportation for a family it is also safe.

GROWTH OF THE INDUSTRY

In India two wheelers have demonstrated the ever since they come to know
been used in the country. So the manufacturers are all set to woo the customers
with the styles that surprise. Efficiency above expectations. Durability and services
more reliable and pricing.
Since the 1980s the market for personalized transport experienced a strident
growth in the country.

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From January 1994 the market especially for two wheelers has so grown to meet
the demand of the customers of India. The production capacity has been
consistently increased.
Largely speaking three major categories of two wheeler started coming, the
Scooters, the Motorcycles and Mopeds. The recent trend is for the scooterette.
INDIAN AUTOMOBILE MARKET:
In India basically the people are composed of middle and lower income people.
For them economical and reasonable comfortable bike or scooter with less
maintenance was the priority. Honda noticed this and their efforts paid dividends
when Activa and Dio were launched. The two wheeler age revolutionized Indian
automobile market. The customers attitudes too changed with preference for
looks, low cost, maintenance, fuel efficiency. Power engine, availability of spare
parts, comfortable riding and good after sales service.
Consumers long list of preference was carefully kept in mind and a new era of
market segmentation began. The market now segregates high income and middle
income from rich class of customers. Bikes and scooterettes for every one has
become a motto for automobile industry. Rich and high-income group of customers
usually goes for:
- Looks
- Maintenance
- Power
The middle and low-income people goes for:
- Fuel efficient
- Power
- Economical cost

33

INDUSTRY PROFILE
The Indian two wheelers industries can be broadly classified as scooters,
motorcycles and mopeds. These segments as shown below constitute the domestic
two wheeler sales of 3.4 million in financial year 2009-09.
In the last six years, the domestic two wheeler industries have seen structural
changes. This can be seen from the change in composition of two wheeler sales.
Where the motor cycles have consistently gained market share from scooter and
moped segment to corner a share of 41% of total two wheeler sales. This trend is
expected to continue in the next two years till the four stroke scooters make their
presence felt in this segment. The table below gives an idea about the strides made
by motor cycle segment in the last six years.
Moped sales in southern region lead in three wheeler sales with a contribution of
42% and 35.8% of total three wheeler sales respectively.
In the terms of three wheeler vehicle population in Maharashtra State stands first
with a population of 0.39 mn and Gujarat in the second place with 0.22 mn as on
March 31st 2014.

34

MOTOR CYCLE SWEEP STAKES:


MARGINS
2013-14
(assessment

VOLUME
SALES in

( Rs. Cr)

nos.

NET

PROFIT

( Rs.

(%)

Cr )

year )
Hero-Honda

10,29,591

3369.88

246.87

7.33

Bajaj auto

5,42,531

3628.74

249.95

6.89

TVS

3,54,497

1820.98

62.57

3.44

Yamaha

1,71,307

not listed

not listed

not
listed

INDUSTRIAL BACKGROUND

Indian automobile industry is full of big names such as


Maruti, Kawasaki, Tata, TVS, Suzuki, Yamaha, Hero Honda, and
many others have swept away the automobile market with high
quality 2 and 4 wheelers. When we shift our attention to
manufacturers of bikes in India such as Hero Honda, Yamaha, TVSSuzuki, Bullet and many others occupy pre-dominant positions in
our eyes. These have been gained big status to their entity with
liberalization opening gates of conservative Indian economy,
many multinational companies are collaborating with Indian

35

companies to market share for their vehicles at international


level.

36

COMPANY PROFILE

HONDA

37

Honda is the world's largest manufacturer of 2-wheelers. Its symbol, the Wings,
represents the company's unwavering dedication in achieving goals that are unique
and above all, conforming to international norms. These wings are now in India as
Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI), a wholly owned subsidiary
of Honda Motor Company Ltd., Japan. These wings are here to initiate a change
and make a difference in the Indian 2-wheeler industry. Honda's dream for India is
to not only manufacture 2-wheelers of global quality, but also meet and exceed the
expectations of Indian customers with outstanding after sales support.
ORIGIN OF THE ORGANIZATION
Honda Activa is the first scooter model of HMSI for the Indian market.
It has revitalized the Indian scooter market after its launch in the year 2009. Within
the 1st year of its launch it has been awarded the 'Scooter of the Year' by
Overdrive magazine and also the 'Readers Choice Award' for the best scooter by
Auto India Magazine.

The Honda Activa has set a new standard for new era of scooters in India. It has
been developed exclusively for the Indian market after closely examining the
changing lifestyles, wants and needs of the consumers.

The Honda Activa has been designed to cater people who believe:
The conventional Indian scooter is too big and difficult to handle

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The scooterette is too small and similar to mopeds

The Honda Activa is equipped with a number of new functions and mechanisms,
introduced for the first time in India. It is designed to offer greater functionality,
performance, economy, and ease of handling and maintenance to a wide crosssection of the Indian society.
As responsible members of society and industry, we Honda Motorcycle and
Scooters India Pvt. Ltd. (HMSI), Manesar manufacturer of two wheelers,
recognize that well being of humans and conservation of earth's environment is
important. By adopting environmental management system, HMSI is moving
towards realization of Honda's green factory concept.

We shall endeavor to continually monitor, improve and conserve the environment


in which we operate. HMSI is committed to achieve, environmental excellence in
all its industrial activities, in the following ways:
Conserving environment through preventing pollution at its source of generation
and strengthening our existing pollution control system.
Promoting conservation of resources such as energy, water, oil and grease and
other raw materials, by reusing, recycling and minimizing the waste generation.
Complying with all applicable legal/regulatory requirements and strive to go
beyond wherever possible.
Regular monitoring and reviewing of environmental objectives and targets.

39

Increasing environment awareness and competence amongst our employees and


encourage vendors & dealers to adopt EMS.
Racing
Honda has always played an important role in motor sports, believing it to
be the springboard for technological advancement. Honda has made its mark in the
500cc class Motorcycle Racing World Championship and more.

Technology
Our fundamental design philosophy seeks to maximize space and comfort
for people, while minimizing the space required for mechanical components. With
this aim in mind, Honda's R&D activities include product-specific development
and research.

Safety
At Honda, we use a three-prong approach, based on preventing accidents,
minimizing injury in the unlikely event of an accident and our Driving Safety
Promotion operations. Honda's safety philosophy emphasizes the development of
appropriate technologies for its products, so as to ultimately achieve maximum
riding comfort for its customers. Honda was the first manufacturer in Japan and
India to develop and apply the anti-lock brake system for the two wheelers.

40

Environment
Honda is unrivalled in making a conscious effort to lower the emissions of every
one of its vehicles, 2 and 4-wheelers. It is actively pursuing the development of a
4-stroke engine in all 2-wheelers by 2014.

41

PRODUCT PROFILE

42

HONDA ACTIVA

Technical Specifications
Engine:

Type

4-stroke, single cylinder, air cooled,


OHC

Displacement

102 cc

Maximum Power

7 Bhp at 7000 rpm

Maximum Torque

0.8 Kg-m at 5500 rpm

Transmission

V-matic

Ignition

Self and Kick

Electricals:

Battery

12 V, 5 Ah

Headlamp

35 W

Chassis:

Frame

High rigidity under bone type

Dimensions (l*b*h)

1765*715*1130 mm

Wheel Base

1235 mm

Seat Height

760 mm

Ground Clearance

145 mm

43
Fuel Tank Capacity:

Tank capacity

6 litres

Brakes:

Front

Drum, 130 mm dia

Rear

Drum, 130 mm dia

Tyre size:
Front

3.50-10, 4 PR

Rear

3.50-10, 4 PR

Suspension:
Front

Bottom link with spring loaded


hydraulic damper

Rear

Unit swing with spring loaded


hydraulic damper

Colors:
Strand silver metallic
Black
Laser red

44

Precious gold metallic


Azure blue metallic
Features:
Aerodynamic Design: The Honda Activa has an aerodynamic body that helps cool
the engine through smoother airflow. It also helps to lower fuel consumption by
lowering air resistance.
Tuffup Tube: The Tyres of the Honda Activa have double layered tubes with fluid
in between. This seals the air leakage in case of a puncture to ensure that the rider
enjoys a hassle-free ride.
Under Seat Box: Neatly hidden beneath the seat of the Honda Activa is space that
can comfortably hold a helmet or any other thing you wish to put away.
CLIC: The Convenient Lift-up Independent Cover enables one to easily lift-up
the Honda Activas body cover, like the bonnet of a car. This makes routine
maintenance easier and faster.
Multi-Reflector headlamp: Honda Activa has a powerful and very stylish multireflector headlamp that increases road visibility to make night driving a safe
experience.

45

ANALYSIS & INTERPRETATION OF


DATA

Table 1:
Age Group of the Respondents
Age

No of respondents

46

18-25

39

25-32

18

32-39

11

39 & above

32

Observation

Age is the very important factor in the purchase decisions of the customers. People
of different age group prefer different types of two wheelers. Out of the surveyed
100 respondents, 39 % respondents belong to the age group 18-25 years; 18 %
respondents belong to the age group of 25-32 years; and 11 % respondents belong
to the age group of 32-39; 32 % of them belong to 39 & Above.
Graph 1: Age Group of the Respondents

39
40
32

35
30
25

18

20

39 & above

11

15
10
5
0
a

47

Table 2:
Sex of the respondents

Gender

No of respondents

Male

76

Female

24

Observation

Sex is also an important consideration for the marketers so as to know which of the
sex prefer to buy their products. The above study shows that out of the surveyed
100 respondents of Honda Activa 76% of the users were male and the rest 24% of
them were female. This reveals that male users are more in number but there are
also females who too use Activa.
Graph 2:
Sex of the respondents

76
80
70
60
50

female

40

24

30
20
10
0
a

48

Table 3:
Occupation of the Respondents

Occupation

No of respondents

Student

34

Service

21

Business

Professional

39

Observation

Occupation is very important factor or consideration in purchasing a two wheeler.


People prefer to buy a two wheeler for the sake of their status and the kind of work
they do. Out of the surveyed 100 respondents, 6 % or 6 respondents were doing
business; 39 % or 39 respondents were doing professional; 21 % or 21 respondents
were doing service; and 34 % or 34 respondents were student.
Graph 3:

49

Occupation of the Respondents


39
40

34

35
30

21

25

professional

20
15

10
5
0
a

Table 4:
Monthly Income of the Respondents

Monthly Income

No of respondents

5000-10,000

10,000-15,000

47

15,000-20,000

19

20,000 & Above

27

Observation

Income is the important consideration in the purchase of a two wheeler. Depending


on his income the person will go for the type of two wheeler, which he can afford
for. Out the surveyed 100 respondents; 7 % or 7 respondents belong to 500010,000; 47 % or 47 respondents belong to 10,000-15,000; 19 % or 19 respondents
belong to 15,000-20,000; and rest 7 % or 7 respondents belong to 20,000 and
Above.

50

Graph 4:
Monthly Income of the Respondents

47

50
45
40
35

27

30
20,000& above19

25
20
15

10
5
0
a

Table 5:
Ownership status of the Activa

Ownership status
Self owned

No of respondents
99

51

Company owned

Company leased

Observation

The study shows that out of the 100 surveyed respondents 99% of them owning
Activa were self-owned, 1% was company owned and none of them were using
company leased.
Graph 5:
Ownership status of the Activa

99
100
90
80
70
60
company leased

50
40
30
20

10
0
a

52

Table 6:
Recommendation of Activa to others
Recommendation

No of respondents

Yes

87

No

13

Observation

The above study reveals that the 87% of the respondents would like to recommend
Honda Activa to others, such as their friends and relatives. And 13% of the
respondents told that they would not recommend Activa, as they would get a bike
for the same cost.

53

Graph 6:
Recommendation of Activa to others

87
90
80
70
60
50

no

40
30

13

20
10
0
a

54

Table 7:
Ratings for Ride, Handling
Ratings

No of respondents

Excellent

48

Good

26

Average

16

Poor

10

Observation

The study shows that the respondents ratings for Ride & Handling. 48% of them
told that it was excellent, 26% told that it was good, 16% told that it was average
and 10% of them told that it was poor.
Graph 7:

55

Ratings

50

for

Ride,

Handling

48

45
40
35
26

30
25

poor

16

20
15

10

10
5
0
a

Table 8:
Ratings for Comfort
Ratings

No of respondents

Excellent

52

Good

24

Average

23

Poor

56

Observation

The study shows that the respondents ratings for Comfort. 52% of them told that it
was excellent, 24% told that it was good, 23% told that it was average and 1% of
them told that it was poor.

Ratings for Comfort

57

60

52

50
40
30

24

poor

23

20
10

0
a

Table 9:
Ratings for Road Grip
Ratings

No of respondents

58

Excellent

17

Good

21

Average

37

Poor

25

Observation

The study shows that the respondents ratings for Road Grip. 17% of them told that
it was excellent, 21% told that it was good, 37% told that it was average and 25%
of them told that it was poor.

Ratings for Road Grip

59

37

40
35
30

25

25
20

21
17

poor

15
10
5
0
a

Table 10:
Ratings for Engine Performance

Ratings

No of respondents

60

Excellent

47

Good

15

Average

31

Poor

Observation

The study shows that the respondents ratings for Engine Performance. 47% of
them told that it was excellent, 15% told that it was good, 31% told that it was
average and 7% of them told that it was poor.

Ratings for Engine Performance

61

50

47

45
40
31

35
30
25

poor

20

15

15

10
5
0
a

62

FINDINGS, SUGGESTIONS & CONCLUSIONS

FINDINGS

63

Silicon Honda Pvt. Ltd. Occupy prime position with 52% of sample size
recommending the dealers for Honda Activa two wheelers.
27% of the sample size told that the service given by the Silicon Honda was
excellent.
Advertisements have popularized other dealers with friends of the customers
with 42% of them indicating for it.
Delivery instruments are given properly by all the dealers.
All the customers say that they prefer to service their vehicles at the
authorized service centers only.
33% of the customers told that they would purchase another Honda Activa in
future for their family members or for their relatives.
29% of the customers say that they purchased Activa for its travelling
comfort.
22% told that Activa is easy to ride.
26% told that Activa is a fuel efficient two wheeler.
99% of the customers ownership status of Activa is self-owned.
12% purchased Activa as they felt it was a trend for it.
Indian market is full of middle class customers and most of the customers
owning Activa belonged to middle class category.
The customers got aware of Honda Activa largely through magazines and
newspapers.
34% of the customers were students and 39% of them were professionals.
76% of the customers were male and 24% of them were female.

SUGGESTIONS

64

This study is aimed at analyzing customer satisfaction with sample of 100


members, which has helped in getting an overall view of customer satisfaction
towards Honda Activa considering different criteria.
Base on the study following suggestions can be considered
Providing more techno-driven, sophisticated exteriors keeping track of
present situation.
To increase the mileage efficiency
To provide mobile servicing a should be able to reach the spot in case of any
breakdown
To bring down the cost of spares and to improve genuinely.
To change shape or body design of Omni so as to increase road safety
especially during swift turns.
To give more ads on to drive slowly and safely.
Sales executives should constantly review the present, the past and the future
objectives and there by evaluate their performance.
Gathering and processing data through electronic data processing system
there by time spent on information evaluation feed back can be reduced.
Building satisfaction: sales person should reassure the customer regarding
decision taken by him while ordering product/service.
They should constantly provide adequate solutions for purchasing a product.
Final buyer relation: sales personnel who are in contact with final buyer
should be courteous, friendly and competent in their jobs.

Customer care is best way to build long-term relation, because they also
have emotional and psychological needs when they purchase a car.

65

CONCLUSION

66

1. Improved product and process quality


2. Incorporates lessee learned and best practices from global automotive industry
3. Provides additional confidence for global souring
4. Provides a global quality system approach in the supply chain for
subcontractor development and consistency.
5. Reduction in variation, waste and increased efficiency
6. Reduction in second party audits and elimination of multiple third party
registration
7. Provides a common language for worldwide quality system requirements

67

BIBLIOGRAPHY

Books:
1. Principles of Marketing Management
By Philip Kotler.

68

2. Research Methodology
By C.R.Kothari.

Magazines:
1. Auto World.
2. Over drive.
3. Auto India.

News Papers:
1. Times of India.
2. Economic Times.

Web Sites:
www.honda2wheelersindia.com
www.activa.com
www.hondabick.com

69

ANNEXURE

Name:
Age:
Gender:

70

Address: ----------------------------------------------------------------------------------------------------------------Phone No:


Email ID:
Occupation:

Student

Service
Monthly Income: 5000-10,000
15,000-20,00

Business

Professional
10,000-15,000

SPECIFIC INFROMATION
1. What is the owner ship status of Honda Activa?

Company owned

Company leased

2.Age group of the respondents


o 18-25
o 25-32

20,000 & Above

Self owned

71

o 32-39
o 39 & above
3. sex of the respondents
o Male
o Female

4. If you were to recommend a scooter would you


recommend anyone Honda Activa?
Yes

No

5. How do rate Honda Activa in terms of


Basis
Ride, Handling

Excellent

Good

Average

Poor

72

Comfort
Road grip
Mileage
Design
Engine
performance
Speed
Braking
Pick-up

6. Where did you buy your scooter?


Dealers Name:
Silicon Honda
Haiku Honda

City Honda

Planet Honda

7. Reason for above dealers?


Service performance facilities
Advertisement

Friends
Others

8. Where do you usually go for service?


Authorized selling dealer

73

Other authorized service center

Private shop

9. Are you planning to buy another Activa in the near


future?
Yes

No

10. What mode of do you prefer?


Cash

Company loan

Finance schemes
Others

11. What are the sources the create awareness?


News papers

Television

Magazines

Show-room display

Exhibition

Postal catalogue

12. Occupation of the respondents


Student
Service
Business
Professional
13.Ratings for comfort
Excellent

74

Good
Average
Poor
14.Ratings for road grip
Excellent
Good
Average
Poor
15.ratings for engine performance

Excellent

Good
Average
Poor

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