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
ANALYSIS OF HARMONY HONDA, CHANDIGARH
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
ANALYSIS OF HARMONY HONDA, CHANDIGARH
ACKNOWLEDGEMENT
It gives us pleasure to express our most profound regard and sense of great indebtedness and
sincere gratitude to Mr. Laxman Singh (Non-Paying Sponsor) and Mr. Vikas Rohilla for their
superb and painstaking guidance, untiring help, keen interest and constant encouragement
throughout the period of project.
We would also like to express our thanks to the faculty Members who helped us, especially
library members, Computer lab staffs, without whose help the project could not be
completed.
We would also like to thank Mr. Tanveer Dhillon, BBA Graduate, Punjab University for his
assistance. We would like to thank our colleagues who helped us throughout the period of
project.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
EXECUTIVE SUMMARY
In this project we are trying to find the segmentation of cars done by Harmony Honda and its
effect on customer. We are also trying to study the sales trend followed by Harmony Honda.
In our study, we had followed different methods to find and analyze the data, namely primary
and secondary. We have used the questionnaire method to study the Honda sales trend.
In Chandigarh Tricity, Harmony Honda has 2 showrooms, we visited them and tried to know
that what are the cars, which they are selling more, what is the sales trend of Honda, which
kind of cars the customers are demanding and why? What modification should Honda make
in its cars to take an edge over its competitors? We have also used secondary data to analyze
the sales trend of Honda; in which, we have studied the Honda Automobiles shares and
condition in the market; profit & loss and many more things. We have analyzed where Honda
has an edge over its competitors and where it’s lacking behind, how it would improve its
sales trend, what are the future prospects of Honda in Indian automobile market?
ANALYSIS OF HARMONY HONDA, CHANDIGARH
NON-PAYING SPONSOR (NPS)
We chose Harmony Honda (Joshi Automotives Pvt Ltd, Authorized Honda car Dealer), Plot
No. 67, Industrial Area, Phase II, Chandigarh. There in Harmony Honda, Mr. Laxman Singh,
Senior Sales Manager and Mr. Vikas Rohilla, Deputy Sales Manager, helped us to pursue our
project efficiently. In our meetings with Mr. Singh and Mr. Rohilla, we discussed their
strategies about selling the Product-in-Hand. How they took decisions; what was their
inventory turnover; what was their labor turnover; what were their segmentation strategies
and many more questions like that. With their immense help we were able to complete our
Project report and PowerPoint presentation timely and efficiently. So, we are very thankful to
them.
Harmony Honda,
Plot No. 67,
Industrial Area,
Phase II,
Chandigarh
ANALYSIS OF HARMONY HONDA, CHANDIGARH
RESEARCH METHODOLOGY
RESEARCH DESIGN
Descriptive Study - Since an already predetermined model of the customer buying behaviour
exists then this study attempts to elaborate on the established norms.
SOURCES OF DATA
Primary Sources of Data
Official Survey – Use of questionnaire that is based on information needed from Harmony
Honda.
Non- Disguised Structured – The interviewed was informed, in advance, of the objective of
the research. This was to ensure a more positive and less suspicious approach to answering
questions on the part of the interviewed.
Advantages
Systematic and orderly method of information collection.
Simple and straight forward elaborate experience of the research not required.
Easier to edit, tabulate and interpret the data.
Weakness
Cannot handle opinions of personal nature and motivational viewpoints.
Secondary Sources of Data
Journals and Newspaper.
Magazines.
Internet.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
INTRODUCTION
Honda Siel Cars India Ltd
Honda Siel Cars India Ltd., (HSCI) was incorporated in December 1995 as a joint venture
between Honda Motor Co. Ltd., Japan and Siel Limited, with a commitment to providing
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:
ANALYSIS OF HARMONY HONDA, CHANDIGARH
The Joy of Buying: For those who buy their products.
The Joy of Selling: For those engaged in selling their products and services.
The Joy of Creating: For those involved in creating their products.
Honda Siel Cars India has a strong sales and distribution network spread across the country.
The network includes 143 authorised dealership facilities in 89 cities. HCIL dealerships are
based on the “3S facility” format, offering complete range of Sales, Service and Spares
services to its customers.
Honda Assure
Honda Assure is an insurance initiative introduced by HCIL to enhance ownership experience
for Honda car customers. Under the Honda Assure program, all Honda car customers get the
benefit of a more transparent, hassle free transaction and a quick turnaround time on their
insurance claims. The entire transaction is routed through an online central server which
enables HCIL to monitor the overall operations more effectively. Some of the direct benefits
to the customers include Cashless Insurance across India and improved turnaround time.
Auto Terrace
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.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
ACHIEVEMENTS AND AWARDS
Over the years, Honda has earned a reputation for producing quality automobiles that are at
the forefront of innovation, from loyalty accolades to value awards, 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.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
Honda City
- The highest ranked “Midsize Car” in J.D. Power Asia Pacific 2012 India Initial
Quality Study (IQS).
- “Consumer Favourite Owner Driven Car” by Auto-build Golden Steering Awards
2011.
- 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.”
ANALYSIS OF HARMONY HONDA, CHANDIGARH
- 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.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
HARMONY HONDA
Harmony Honda is itself a distributor of HCIL (Honda Car India Ltd.). In the tricity, Joshi
Automobiles has taken the dealership of Harmony Honda, located in Chandigarh and
Panchkula. Honda is launching new CRV Honda, this year in April 2013. Harmony Honda
expects to sell 10 CRV cars per quarter. Honda has following sales figures:
Car Models (in Tricity) 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:
ANALYSIS OF HARMONY HONDA, CHANDIGARH
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)
ANALYSIS OF HARMONY HONDA, CHANDIGARH
SEGMENTING AND TARGETING
Based on the economic strata, the company had divided the Indian automobile consumer
segment in 3 categories:
Mid –range (priced less than 7 lakhs)
Premium (priced between 7- 15 lakhs)
Luxury (Priced above 15 lakhs)
The mid segment caters to the need the semi urban population and urban population. The
premium and luxury segment takes care of the interest of the urban population.
Honda is segmented also on the basis of income groups present in the country i.e. the people
having an income of less than 7 lakhs per annum consider cars of mid-range which are
Honda Brio and Honda Jazz. People having falling in the income range of 7-15 lakhs per
annum consider the premium-range segment of the Honda cars which include Honda City
and Honda Civic. The people with an income more than 15 lakhs per annum mainly
considers car in the luxury segment of Honda cars such as Honda CR-V and Honda Accord
Honda has divided its Product line into 3 segments as per the following table.
Product Line Products
Compact/Hatch-back Brio, Jazz
Sedan City, Civic, Accord
SUV segment CR-V
ANALYSIS OF HARMONY HONDA, CHANDIGARH
With rising prices of petrol, there is a sharp demand for Diesel-run vehicles. Honda soon will
launch the diesel variants of its segments so as to capture large market share
ANALYSIS OF HARMONY HONDA, CHANDIGARH
RECRUITMENT AND SELECTION PROCEDURE
Harmony Honda translates its business strategy into a manpower plan and develops a
recruitment program accordingly, which will enable it to attract and select people with the
appropriate combination of experience, skills and knowledge.
Objectives:
The main objectives of the Recruitment Policy are outlined as follows:
Build the Honda Cars brand in the job market.
Ensure availability of the “right” talent at the “right” time.
Evaluate through a scientific process that ensures the right fit between the
organization and the candidate.
RECRUITMENT PROCEDURE
A. Manpower process
Manpower Forecasting
1. The overall annual business plan for the company breaks down into plans and
targets for each individual department. Each department calculates their grade
wise manpower requirements based on the staffing norms, and provide quarterly
and monthly manpower requirements to corporate HR.
2. Based on the attrition trends and manpower requirements, all the respective Head
of Departments arrive on the manpower numbers along with Head-HR and obtain
on MD’S approval.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
3. The projected requirements for the year must reach Head-HR, latest by the first
week of January every year.
Manpower Inventory – HR prepares the current manpower status of each
department, including an analysis of the current manpower at each location, grade and
skill summary.
Identifying Manpower Gaps – The existing number of employees and their skill
levels compared with the forecasted requirements to identify qualitative and
quantitative gaps. Options for the redeployment through retaining, transfers,
promotions are considered. Where these options do not exist, options for recruiting
from external sources are taken into account.
Manpower Plan – On the basis of identified gaps, HR prepares on overall
manpower plan which provides adequate lead time for transfers, retaining, promotions
and external hiring. The plan contains details on:
Department wise numbers for transfers, retaining and promotions.
Department wise numbers for external recruitment.
The final manpower plan prepares. Once completed, it will be put up for approval
by all the department heads and Managing Director.
B. Preparing Job Description and Person Specification
Each position in the organization has detailed job description including the following:
i. Description of profile to be handled.
ii. Department/Location/Region.
iii. Reporting relationship-Designation.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
iv. Whether the position is budgeted – in case of a new vacancy or replacement- mention
details of last incumbent.
v. 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.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
External Recruitment:
The vacancies can be filled through the following channels:
Candidates walking in/ sending their CVs directly.
Job Portals.
Consultants.
Campus Recruitment.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
SELECTION PROCESS
A. Eligibility Criteria – The following eligibility criterion is used to short list applicants
from various Institutes:
i. 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.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
LETTER OF INTENT
Selected candidates are issued a letter of intent on the spot. Appointment letters are issued
upon joining.
1. Trainee Scheme – Once selected, all the trainees are provided with an HR brochure
that lists the details of the trainee scheme are outlined below:
i. Travel – Management Trainees are provided with AC class Train Fare from
home to the company. Conveyance expenses such as travel (taxi) from the
Railway station to the place of posting etc. are provided.
ii. Accommodation – Trainees are provided with shared accommodation. Guest
House is provided for one month for outstation candidates.
2. Training Program – The training period is for six months. The details are given
below:
i. A three day induction period held for all trainees by the top Management on
the vision, mission and company policies.
ii. All trainees spend one week in each function for a period of …………..
Weeks.
iii. Trainees undertake 2 projects in 2 other functions than their specialization.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
PERFORMANCE EVALUATION AND PLACEMENT
Upon completion of the training period, all trainees undergo performance evaluation.
PROCESS
1. Trainees are required to present a report of the projects they have undertaken to the
Department Head at the end of the training period.
2. HR schedules a performance interview for every management trainee. The panel for
interview consists of one cross- functional head, Departmental head and HR Manager.
3. The trainee is assessed on the projects completed and a number of parameters listed in
the “Trainee Evaluation Form”.
4. The Performance Evaluation Panel recommends a confirmation separation as per the
trainee’s performance. Upon receiving the evaluation and recommendation, HR issues
a confirmation letter to the trainee confirming him/her at level.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
CONSUMER BEHAVIOUR
Consumer behaviour is important to businesses as it includes acquisition of information to
stimulate purchase by consumers. Business organizations keep in mind that by understanding
the thoughts, feelings, actions of consumers, they can positively attract new customers and
retain current ones.
Honda produces automobiles, motorcycles, and power products. The company also develop
innovating technologies to meet the demands of the future. Honda emphasizes on establishing
customer relationships through its products and services by confronting key issues and
providing solutions.
Hence, Honda's demand to research closely on consumer behaviour before their product is
launched into the market. Honda wants their customers to always enjoy the crucial
satisfaction of mobility. They are determined to remain ahead of their competitors, while
being valued for their activities by society and customers worldwide. Honda researches
closely on the market and the society in order to create quality performance position within
the market.
Before launching a product, Honda's team of researchers launch into an array of studies on
consumer behaviour to meet the particular needs of customers in different regions around the
world. Honda has been known as a quality brand offering the style and performance for their
enthusiasm in improving their automobiles.
In today's world of evolving technology, consumer tastes are categorized by fast changes. To
survive in the market, Honda has to be constantly innovating and understand the latest
consumer trends and tastes.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
Consumer behaviour provides important clues and strategy to marketers on how to explore
and conquer the market. By understanding the four applications to effectively understanding
consumer behaviour, Honda will effectively satisfy consumer wants and demands.
Honda must research closely on consumer behaviour in order to effectively ascertain
regulatory policy through marketing activities such as safety and privacy protection.
Regulatory policies are made in order to protect and aid consumers, which is why Honda
maintains a commitment to preserving consumers' privacy. By letting consumers know their
information is safe, consumers will definitely keep Honda's image as a reputable and
trustworthy automobile company. (http://www.ohio.honda.com/CompanyInfo/privacy.cfm)
SOCIAL MARKETING
The application of marketing strategies and tactics in which Honda can use to alter and create
behaviours to have a positive effect on their target market and the society as a whole. Honda
can use social marketing as an advantage to their campaign when targeting on different
segments through personalized promotions, advertisements and societies.
In an online article titled "Honda Civic Tour Delves Into Social Media", the band Fall Out
Boy fans of the Honda Civic Hybrid, agreed to a sponsorship of their tour and appear in
promotional videos on their tour site, actively recommending the car for its environment
friendly aspects. (Aun, 2007)
Honda's goal is to get enough relevant market information to develop accurate profiles of
buyers that is basically to find the general ground and symbols for communication. The
primary mission of advertising is to reach prospective customers and influence their
awareness, attitudes and buying behaviour.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
HONDA SALES PROCESS
Almost all established sales organization will have their salespeople follow certain steps to
increase the likelihood of a sale. Many companies have these steps in place to provide an
outline for their sales staff. However, Harmony Honda employs the following seven step sale
process:
MEET AND GREET - Establish Rapport and Control.
This step is designed to welcome the customer to the dealership and
to allow the salesman to introduce themselves. However, the
salesman's primary concern is to establish control of the process.
Most of the time, customers will try to avoid talking to a salesman
and will maintain a defensive posture. Keep in mind, the
management requires that every customer be assisted by a
salesman. This philosophy is paramount to dealerships. Every customer must be properly
greeted upon arrival. If a salesman greets a customer that is “just looking” and doesn't
properly engage them, they will run the risk that the customer will buy a car somewhere
else. Even worse, they may buy from another salesperson at their own dealership.
During this step, the salesman is instructed to establish rapport with the customer. Rapport is
extremely important and without it the salesman knows they have a slim chance of selling a
car. This is one of the most vital steps as you have always heard; you don't get a second
chance to make a first impression! The next challenge for the salesperson during the “meet
and greet” is to get the customer to reveal a "need". Once a customer expresses what they
are looking for, the salesman can proceed with satisfying that request.They will then move to
the next step: Qualifying.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
QUALIFY – To "land" the customer on vehicle.
The second step in the 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.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
WALK AROUND – Demonstrate the features and create obligation
This is when the salesman will highlight the features and benefits of
the selected car. It is called a “walk-around” because the salesman
"walks around" the vehicle while demonstrating it features.
The better salespeople will almost always have a method to their
“walk-around”. For instance, if the car is a row of vehicles, the
customer will "spot-light" the car by pulling it out of the line. This
extra effort will almost always provoke the customer to say “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.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
TEST DRIVE – Create "Ether".
The Test Drive is the fourth step in the sale process. The
salesperson will almost always inform the customer that the
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”.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
WRITE UP – Commit the customer to "buying today"
The next step which the company adopts is the write-up which
takes place immediately after the test drive. The company believes
that the best time to sell a car is after the test drive because at that
particular time, the customer is excited and is imagining himself
owning a new car. So, the next step of the salesperson is to present
the customer with the relative cost, payment and down payment in
an effort to get the customer to make an offer.
They attempt to get the customer to submit an amount that they can pay, after telling them the
cost. Once he receives the 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.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
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.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
PURSUING A SCIENTIFIC APPROACH TO SALES
The word technology applies to many activities other than those associated with a company
like Honda R&D. Honda Sales Research (HSR), for example, was established for the pursuit
of sales using a scientific approach, in which the company would study various issues
associated with sales operations and reflect those findings in the corporation's overall sales
strategy. Founded in April 1966, the company also served as a bridge between Honda and its
retail dealers. In contemporary terms, what Honda Sales Research intended to provide was
marketing and sales support.
Honda Sales Research had several important characteristics of operation: Provide a system
whereby at the end of the process the actual state of sales operations is identified from a
scientific point of view, and the information is fed to Honda Motor automatically.
Thoroughly communicate the philosophy, ideas, and current status of Honda Motor to
retail dealers by assisting in the exchange of opinions between the manufacturer and
retail dealers.
Promote the sales activities of the existing dealer network.
Ensure that the products are not sold directly to the end user, and that they are
marketed exclusively through the retail dealers.
Operate only with sales representatives as a matter of principle, since the nature of
business does not require management personnel, office facilities, or even clerical
work.
Employ a unique payroll system in which the sales representatives are compensated with
salaries comparable to those of expert professionals.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
COMPETITION ANALYSIS
Honda is facing too many threats due too many competitors in automotive industry and these
competitors also offer Lower cost cars. The list below shows the performance of all cars in
the past year:
HONDA - Honda has moved up to position 6 overall. It has recorded substantial gains in
its entire sub-10 lakh portfolio. The Jazz, written off even after the price cut, is now
nudging the healthy 2,000 level. The Brio & City have put up a strong show. The Accord,
Civic & CRV sales are comparatively low in comparison to the hatchback and sedan cars
due to their high prices (luxury cars).
MARUTI – Maruti's best performers are cars that have been launched in the last 18
months and are powered by the 1.3L MJD diesel engine. The Swift & Dzire continue to
go from strength to strength, while the Ertiga is gaining grip too. These three cars share
the same platform, a cumulative 45,000 units in December 2012!
HYUNDAI – Hyundai's best-selling hatchback is the i20. This goes to show that the 6 - 8
lakh customers isn't as affected by external market conditions as a 3 lakh buyer. The Eon,
i10 & Santro takes a noticeable hit on volumes. The Verna continues to impress with its
success in the C2 segment, but the Sonata is already showing signs of struggle.
MAHINDRA - Mahindra is at No.3 in best-selling car industry in the Indian market
Bolero, Scorpio & XUV500 continue to laugh all the way to the bank. On the other hand,
a facelift isn't doing anything to the Xylo's fortunes.
TATA – The Nano is the only Tata that has managed to retain its regular sales
performance. The Indica, Indigo & Safari are severely affected by the negative market
sentiment.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
TOYOTA – Toyota has reasons to cheer in the grim market; the Innova, Fortuner and
Etios bring the volumes home. On the flip side, the Corolla & Liva have a rather
mediocre run. The Liva, especially, will find it hard to sustain competitive pressures.
CHEVROLET – The only shining star in the Chevrolet universe is the Beat. The Cruze
suffers an inexplicable fall and we can only credit that to the updated Cruze being
launched.
FORD - Ford has a sole product - the Figo - to keep the cash registers ringing. The ol'
Fiesta is sitting with 50% lesser sales. Ford needs the EcoSport and fast. Hope it's priced
well as there is a lot of interest in this compact SUV.
VOLKSWAGEN – Volkswagen records its lowest sales in a year and is said to be
working furiously on solving the problem. The Passat outsells the Superb and the Vento
beats the Rapid. The Jetta records its second <200 month. Volkswagen's biggest
challenge is Skoda selling nearly identical products with the same core competencies at
noticeably lower prices.
NISSAN – The Sunny has a reasonable run @ 2,500 units, but doesn't seem capable of
getting back to the levels it held in the first quarter of 2012. The Micra suffers a massive
slip to a insignificant 500 units.
SKODA – The Rapid is Skoda's knight in shining armour. The company's engines are
misfiring otherwise, with the Laura & Superb. The Fabia sells barely 20% of what it did
in May 2011. (Dec 2012, Indian Car Sales Figures & Analysis, www.team-bhp.com)
ANALYSIS OF HARMONY HONDA, CHANDIGARH
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
ANALYSIS OF HARMONY HONDA, CHANDIGARH
confidence that will be taken care of throughout the entire period of Honda ownership. We
see a huge opportunity to provide a standard of customer care that is unlike anything else
offered in the trade today.
We engage customer with experiences tailored around their lives and lifestyles, not just their
vehicles. That's the reason; Harmony Honda has been always awarded No.1 in Customer
Satisfaction in Sales & Service since inception. We are very pleased that we have always
been able to achieve the highest grades in terms of satisfaction - for us this is both a
confirmation and an incentive.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
BRAND POSITIONING STRATEGY
Firms can design their marketing programs to position and enhance the image of a product
offering in the minds of target customers. To create a positive image for a product, a firm can
choose from among several positioning strategies, including strengthening the current
position, repositioning, or attempting to reposition the competition.
Harmony Honda's aim has always been to strengthen its current position. The key to
strengthening a product's current position is to monitor constantly what target customers want
and the extent to which customers’ perceive the product as satisfying those wants. We as a
group believe that strengthening a current position is all about continually raising the bar of
customer expectations. For example, Honda has always been known for quality and
reliability.
Recently, however Honda has shifted its positioning focus to wrap quality and value in the
context of long-term value. The company's promotional campaigns explain how its cars have
a lower cost of ownership when factors such as insurance, fuel, and maintenance are taken
into consideration. Honda's positioning is different from the strategies pursued by Toyota
(Quality), Suzuki (Fuel Economy), and Volkswagen (Engineering). By tweaking its
positioning strategy, Honda understands that it must constantly raise expectations about value
if it is to hold its position and remain competitive.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
MARKET RESEARCH
PERSONAL INTERVIEWS & SURVEYS
We conducted a small survey in which there were 150 respondents. From this survey, we
found that out of every 100 customers 19 opt for Honda showing close competition between
the different car brands.
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
ANALYSIS OF HARMONY HONDA, CHANDIGARH
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
ANALYSIS OF HARMONY HONDA, CHANDIGARH
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).
ANALYSIS OF HARMONY HONDA, CHANDIGARH
FIELD WORK
Following pictures were taken by the group during visits to Harmony Honda Showroom, and
while interacting with our Non Paying Sponsor (NPS).
ANALYSIS OF HARMONY HONDA, CHANDIGARH
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”.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
CONCLUSION
In this project we understood the nature and working of the sales department of Harmony
Honda (Joshi Automotive ltd). These conclusions can be drawn from this study:
Customer service aspect is one of the most crucial and important aspect of the
company.
A lot of time and effort is put up in the recruiting and selection process so as to
hire good people.
The company spent much time and money in the training and development of the
employees so as to provide the best service (whether at shop floor level, or after
services) to its customers by appointing a manager, especially for training
programs.
According to data obtained from surveys and questionnaires, (92%) almost all the
“Honda Customers” were very happy with customer service of the company.
Customers arriving at the Harmony Honda were impressed by the attention and
interactions of the sales consultants of the company.
The sales presentation method of the sales consultant is problem solving. The
consultant responds to the queries asked by the customer accordingly.
Honda’s main target markets are the customers of income groups of 5 to 10 lakh
which mainly buy brio and Honda city model.
ANALYSIS OF HARMONY HONDA, CHANDIGARH
PEER EVALUATION
Members
Name
Attendance at
Meetings
(30%)
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%
ANALYSIS OF HARMONY HONDA, CHANDIGARH
APPENDIX 1 – QUESTIONNAIRE
We are students enrolled in Professional Selling course in a BBA degree program at
University Of The Fraser Valley, 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
If any other, please specify ____________________________
3. Which Car brand do you prefer or like the most?
a) Honda b) Hyundai c) Suzuki d) Audi e) BMW f) Mercedes g) Ford
If any other, please specify ____________________________
4. Why do you prefer the above mentioned brand car?
a) Family Relations b) Mileage c) Visual Features d) Cost e) Engine Load g)
Seating Space
If any other, please specify ____________________________
5. According to you, what is the thing you like the most in a Honda Car?
a) Mileage b) Visual Features c) Seating Space d) Boot Space e) Engine Load g)
Price
If any other, please specify ____________________________
6. A Honda car has long life with low maintenance costs
a) Strongly Agree b) Agree c) Uncertain d) Disagree e) Disagree
7. In a Honda retail showroom, what do you like the most about the Sales
Professionals?
a) Interactions b) Dressing Style c) Problem Solving d) Individual Attention
If any other, please specify ____________________________
ANALYSIS OF HARMONY HONDA, CHANDIGARH
8. Sales Professionals in a Honda showroom are never too busy to respond to
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
a) Strongly Agree b) Agree c) Uncertain d) Disagree e) Strongly Disagree
10. The sales professionals at a Honda retail showroom treat customers courteously
on the phone
a) Strongly Agree b) Agree c) Uncertain d) Disagree e) Strongly Disagree
11. When a customer has a problem, the Honda showroom employees show a sincere
interest in solving it
a) Strongly Agree b) Agree c) Uncertain d) Disagree e) Strongly Disagree
12. Honda offers efficient Post sale services to the customers
a) Strongly Agree b) Agree c) Uncertain d) Disagree e) Strongly Disagree
13. The Honda showroom has operating hours convenient for all their customers
a) Strongly Agree b) Agree c) Uncertain d) Disagree e) Strongly Disagree
14. Harmony Honda has a good image in your eyes
a) Strongly Agree b) Agree c) Uncertain d) Disagree e) Strongly Disagree
15. I would “recommend” others to buy a Honda car
a) Certainly Yes b) Yes c) Uncertain d) No e) Certainly Not
Could you name a Car Dealer or two in Chandigarh that in your opinion ensures the best
customer satisfaction?
___________________________________________________________________________
NAME: _______________________________________
AGE: a) 15-25 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: ______________________________________
ANALYSIS OF HARMONY HONDA, CHANDIGARH
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
edition; Retrieved Mar 17, 2013
6. Kotler, P.; Marketing Management; Pearson Publishers Ltd; Pg 159-166; New Delhi;
2007; 12th
edition; Retrieved Mar 20, 2013
7. Kerlinger, Fred N.; Foundations of Behavioural research; Surjeet publications; Delhi;
1983; 2nd
Indian reprint; Retrieved Mar 20, 2013
8. Erdos, Paul L.; Handbook of Marketing Research; Tata McGraw-hill book company;
New York; 1997; Retrieved Mar 20, 2013
9. Gordon, Bruner C.; Journal of Services Marketing; Volume 2; Issue 3; 1998; Pg 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
ANALYSIS OF HARMONY HONDA, CHANDIGARH
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