Analysis of Honda Chandigarh

ANALYSIS OF HARMONY HONDA, CHANDIGARH

UFV CHANDIGARH

BUS – 221 Professional Selling

ANALYSIS OF

HARMONY HONDA,

CHANDIGARH

Akershit Sharma [email protected] +919646021890

Amandeep Singh [email protected] +919878667513

Bharat Nayyar [email protected] +919501777030

Rajkaran Kamboj [email protected] +919988802385

Group No – 4

Submitted to: Prof. Shyam Vyas

Date Submitted: March 29, 2013

Date Due: March 29, 2013


TABLE OF CONTENTS

S No. Topic

1. Acknowledgement

2. Executive Summary

3. Non-Paying Sponsor (NPS)

4. Research Methodology

5. Introduction

Honda Siel India Ltd

Awards and Achievements

6. Harmony Honda

7. Segmenting and Targeting

8. Recruitment and Selection Procedure

Recruitment Procedure

Selection Process

Performance Evaluation and Placement

9. Consumer Behavior

10. Honda’s Sales Process

11. Pursuing a Scientific Approach To Sales

12. Competition Analysis

13. Differentiation Strategy

14. Brand Positioning Strategies

15. Market Research

Personal Interviews & Surveys

Field Work

16. Honda Advertisements and Marketing

17. The Road Ahead

18. Conclusion

19. Peer Evaluation

20. Appendix 1 – Questionnaire

21 Appendix 2 – References

22. Appendix 3 – Bibliography


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.


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 it’s lacking behind, how it would improve its

sales trend, what are the future prospects of Honda in Indian automobile market?


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


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.


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

Honda’s 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.

HSCI’s 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.

Honda’s 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:


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

Honda’s 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.


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, Honda’s 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.


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.

- India’s 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

- “India’s Favourite Car for Enthusiasts” 2009.

Honda Accord

- Honda Accord named to Car and Driver’s (Magazine) esteemed “10 best Cars” list for

a record 27th

time.

- “India’s 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.”


- The 2013 CRV was named to KBB’s “Best Resale Value: Top 10” list. Depreciation

is usually a car buyer’s 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.


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) Figures

Brio 135

Honda City 155

Honda Accord 10

Honda Jazz 25

CRV Honda 5

Honda Civic 20

Total No. of Cars (Quarterly) 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:


HONDA CAR DEALERS IN CHANDIGARH

Showrooms Address

Prestige Honda 6, Ind. Area Phase – 1, Chandigarh,

Harmony Honda 67, Ind. Area, Phase – 2, Chandigarh

MAJOR COMPETITORS IN CHANDIGARH:

Showrooms Address

Charisma Hyundai 7, Ind. Area, Phase – 1, Chandigarh

KLG Hyundai 181/3B, Ind. Area, Phase – 1., Chandigarh

Ultimate Hyundai 154-155, Ind. Area, Phase – 1, Chandigarh

Globe Toyota B-51, Ind. Area, Phase – 6, Chandigarh

Pioneer Toyota 177, Ind. Area, Phase – 1, Chandigarh,

Saluja Ford 140, Ind. Area, Chandigarh,

Volkswagen Chandigarh 32, Ind. Area, Phase – 1, Chandigarh

Padam motors Pvt Ltd 182/2, Ind. Area, Phase – 1, Chandigarh,

Laxman Singh (Senior 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

Vikas Rohilla (Deputy Sales Manager)


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 Products

Compact/Hatch-back Brio, Jazz

Sedan City, Civic, Accord

SUV segment CR-V


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


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 MD’S approval.


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. Description of profile to be handled.

ii. Department/Location/Region.

iii. Reporting relationship-Designation.


iv. Whether the position is budgeted – in case of a new vacancy or replacement- mention

details of last incumbent.

v. Qualifications- Essential/Desired.

vi. 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. Job Profile.

ii. Education qualifications, Skills, Experience.

iii. Last date of receiving Applications.

iv. 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.


External Recruitment:

The vacancies can be filled through the following channels:

Candidates walking in/ sending their CVs directly.

Job Portals.

Consultants.

Campus Recruitment.


SELECTION PROCESS

A. Eligibility Criteria – The following eligibility criterion is used to short list applicants

from various Institutes:

i. A CGPA of at least 6 out of 10 or its equivalent in the MBA/PGDBM program

ii. 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.


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.


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

trainee’s performance. Upon receiving the evaluation and recommendation, HR issues

a confirmation letter to the trainee confirming him/her at level.


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.


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.


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.


QUALIFY – To "land" the customer on vehicle.

The second step in the salesman’s 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 doesn’t

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

dealer’s 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.


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 “don’t go to any trouble”, this is

because they don’t 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 driver’s seat. They first demonstrate the trunk space,

engine compartment and exterior features. Salespeople realize that the customer’s 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 driver’s 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.


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

dealership’s 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 don’t 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 customer’s “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 customer’s

“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”.


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 customer’s 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.


DELIVERY – CSI and Referrals

The Delivery is last step of the salesman’s 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 “buyer’s remorse” i.e. they provide information so that

buyer doesn’t 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.


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.


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.


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)


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 India’s 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


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.


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.


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.

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.

19%

19%

18%

15%

29%

Percentage

Honda

Hyundai

Maruti

Toyota

Others


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:

Petrol 54%

Diesel 46%

00.5

11.5

22.5

3

Fuel Preference


CAR MANUFACTURER’S 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).


HONDA ADVERTISMENTS AND MARKETING




FIELD WORK

Following pictures were taken by the group during visits to Harmony Honda Showroom, and

while interacting with our Non Paying Sponsor (NPS).



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, Honda’s 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”.


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.

Honda’s main target markets are the customers of income groups of 5 to 10 lakh

which mainly buy brio and Honda city model.


PEER EVALUATION

Members

Name

Attendance at

Meetings

(30%)

Participation

(Enthusiasm)

(30%)

Contribution

(15%)

Degree of

Cooperation

(25%)

Overall

(100%)

Akershit

Sharma

30 25 12 23 90

Amandeep

Singh

30 26 13 21 90

Bharat

Nayyar

30 26 12 22 90

Rajkaran

Kamboj

30 25 13 22 90

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%


APPENDIX 1 – QUESTIONNAIRE

We are students enrolled in Professional Selling course in a BBA degree program at

University Of The Fraser Valley, Canada’s 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


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


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


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


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



8. Sales Professionals in a Honda showroom are never too busy to respond to

customer’s request

a) Strongly Agree b) Agree c) Uncertain d) Disagree e) Strongly Disagree

9. Sales Professionals and other employees give customers individual attention


10. The sales professionals at a Honda retail showroom treat customers courteously

on the phone


11. When a customer has a problem, the Honda showroom employees show a sincere

interest in solving it


12. Honda offers efficient Post sale services to the customers


13. The Honda showroom has operating hours convenient for all their customers


14. Harmony Honda has a good image in your eyes


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 b) 26-35 c) 36-45 d) 46-55 e) 56 and greater

SEX: Male □ Female □

OCCUPATION: a) Professional b) College/Graduate Student c) K-12 Student d)

Homemaker e) other

CONTACT: ___________________________________

EMAIL: ______________________________________


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-significance-

consumer-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-car-

sales-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


6. Kotler, P.; Marketing Management; Pearson Publishers Ltd; Pg 159-166; New Delhi;

2007; 12th


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 43-

53; 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

http://www.marketing91.com/author/admin/


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

http://www.google.com/

http://www.wikipedia.com/

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Analysis of Honda Chandigarh

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