A

PROJECT
ON
“Consumer Behavior And Satisfaction Towards Honda Cars"
OF

"HONDA CARS"

[WITH SPECIAL REFERENCE TO SHUBH HONDA]

RAIPUR (C.G)

IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION

[2018-19]

Guided by Submitted By
Miss. CHETNA NAYAK Ajay Prakash Nishad
 ACKNOWLEDGEMENT

It is a great experience to work with such a company and to make a project on

“Consumer Behavior And Satisfaction Towards Honda Cars" and I am
extremely thankful to them for providing me such an exceptional
opportunity. Without the support and guidance from specific individuals it
would not have been possible to successfully complete my project.

I would also like to thank other employees of HONDA CARS who extended
their active support during the course of the project. I extend my profound
gratitude towards Mr. VIJAY SHUKLA Assistant Manager.

Thanking you

Ajay Prakash Nishad

ID NO-AB/40709
 DECLARATION

I AJAY PRAKASH NISHAD here by declare that the project report

entitled “Consumer Behavior And Satisfaction Towards Honda Cars" is the
record of authentic work carried by me during the academic year 2018-2019.
This project is the result of original research work carried by me and the
same has not been previously for any examination of this university or any
university.

Place-Raipur
Date :- Signature

Ajay Prakash Nishad

ID NO-AB/40709
 CERTIFICATE FROM THE GUIDE

This is to certify that this project entitled “Consumer Behavior And

Satisfaction Towards Honda Cars" submitted in partial fulfillment of the
degree of Bachelor of Business Administration to the PT. RAVISHANKAR
SHUKLA UNIVERSITY, Raipur, done by AJAY PRAKASH NISHAD, ID
NO-AB/40709 and is an authentic work carried out by him at Karan
Automobiles Pvt. Ltd. The matter embodied in this project work has not been
submitted earlier for award of any degree or diploma to the best of my knowledge
and belief.

Signature of the student Signature of the Guide

 EXAMINER’S CERTIFICATE

This is to certify that the project report entitled “Consumer Behavior

And Satisfaction Towards Honda Cars" is done by Me and is an
authentic work carried out for the partial fulfillment of the requirement for
the award of the degree of BBA VIth semester and has completed this
project in scheduled time.

We approve the sincere work done on this project and the project report.

INTERNAL EXAMINER EXTERNAL EXAMINER

 INDEX

S.NO PARTICULARS PAGE NO.

1 INTRODUCTION

2 SCOPE OF STUDY

3 LIMITATION OF STUDY

4 OBJECTIVE OF STUDY

5 COMPANY OVERVIEW

6 RESEARCH METHODOLOGY

7 DATA ANALYSIS

8 CONCLUSION

9 DATA ANALYSIS

10 RECOMOMMENDATIONS

11 CONCLUSION

12 QUESTIONNAIRE
CHAPTER-1
INTRODUNCTION
 INTRODUCTION TO THE TOPIC

DEFINITION

The term strategy is drawn from the "armed forces". It is a strategic plan that

interlocks all aspects of the corporate mission designed to overpower the

competitor. An appropriate strategy is considered to he essential to face adverse

situations such as cut-throat competition. Strategies give direction for the

achievement of objectives through the deployment of resources. The American

Marketing Association defines marketing as ';the process of planning and

executing the conception, pricing, promotion and distribution of ideas, goods and

services to create exchanges that satisfy individual and organizational

objectives".

A category scheme consisting of three general types of strategies that are

commonly used by businesses to achieve and maintain competitive advantage.

These three generic strategies are defined along two dimensions: strategic scope

and strategic strength. Strategic scope is a demand-side dimension and looks at

the size and composition of market intended to target, that the definitions make

several points:
  A main objective of marketing is to create customer value.

 Marketing usually involves an exchange between buyers and

 sellers or between other parties.

 Marketing has an impact on the firm, its suppliers, its customers, and

others' affected by the firm's choices.

 Marketing frequently involves enduring relationships between buyers,

sellers, and other parties.

 Processes involved include —creating, communicating, delivering ,and

exchanging offerings.

 Cost Leadership Strategy

This strategy involves the firm winning market share by appealing to cost-

conscious or price-sensitive customers. This is achieved by having the lowest

prices in the target market segment, or at least the lowest price to value ratio

(price compared to what customers receive). To succeed at offering the lowest

price while still■ achieving profitability and a high return on investment, the firm

must be able to operate at a lower cost than its rivals. There are three main ways

to achieve this.
The first approach is achieving a high asset turnover. In service industries, this

may mean for example a restaurant that turns tables around very quickly, or an

airline that turns around flights very fast. In manufacturing, it will involve

production of high volumes of output. These approaches mean fixed costs are

spread over a larger nurrfber of units of the product or service, resulting in a

lower unit cost.

The second dimension is achieving low direct and indirect operating costs. This is

achieved by offering high volumes of standardized products, offering basic no-

frills products and limiting customization and personalization of service.

Production costs are kept low by using fewer components, using standard

components, and limiting the number of models produced to ensure larger

production runs.

The third dimension is control over the supply/procurement chain to ensure low

costs. This could be achieved by bulk buying to enjoy quantity discounts,

squeezing suppliers on price, instituting competitive bidding for contracts,

working with vendors to keep inventories low using methods such as Just-in-

Time purchasing or Vendor-Managed Inventory.

Differentiation Strategy

A differentiation strategy is appropriate where the target customer segment is not

price-sensitive, the market is competitive or saturated, customers have very

specific needs which are possibly under-served, and the firm has unique

resources and capabilities which enable it to satisfy these needs in ways that are

difficult to copy.

Focus or Strategic Scope

This dimension is not a separate strategy per se, but describes the scope over

which the company should compete based on cost leadership or differentiation.

The firm can choose to compete in the mass market (like Wal-Mart) with a broad

scope, or in a defined, focused market segment with a narrow scope. In either

case, the basis of competition will still be either cost leadership or differentiation.

In adopting a narrow focus, the company ideally focuses on a few target markets

(also calle a segmentation strategy or niche strategy). These should be distinct

groups with specialized needs.

The choice of offering low prices or differentiated products/services should

depend on the needs of the selected segment and the resources and capabilities of

the firm. It is hoped that by focusing your marketing efforts on one or two narrow

market segments and tailoring your marketing mix to these specialized markets,

you can better meet the needs of that target market.

Porter suggested combining multiple strategies is successful in only one case.

Combining a market segmentation strategy with a product differentiation strategy

was seen as an effective way of matching a'firm's product strategy (supply side)

to the characteristics of your target market segments (demand side).

But combinations like cost leadership with product differentiation were seen as

hard (but not impossible) to implement due to the potential for conflict between

cost minimization and the additional cost of value-added differentiation.

CHAPTER-2
SCOPE OF STUDY
 SCOPE OF STUDY

• The research can be maintained and improved.

• It illustrates how a that what makes a brand highly significant over other

competitive brand.

• Studies and analyzes motivation factor of customers.

• measures the experiences of the customers.

• The firm can choose to compete in the mass market with a broad s^ope

or in a focused market segment with a narrow scope.

• Defines and analyses the experiences based on key deliverables.

• Gains insight into customer expectations.

• Study of opinions of the owners of cars regarding its features

like mileage, price etc.

It displays how brand awareness amoung potential customers

 CHAPTER-3
LIMITATION OF STUDY
LIMITATIONS
During the course of survey, there were certain difficulties which are worth to be
considered as limitation of study. So that they can be correlated with variation if
any.

1. Unawareness of Respondent:- Most the respondents were not aware of

the technical specification and other details of the new models and benefits

they offer, respondent were unable at the times to assess the cars.

2. More Time Consumption In Study:- Marketing strategy research takes a

lot of time and searching of data is typical task also, It is not possible to

take large sample due to less time and other limits.

3. Biasing of Information:- Certain amount of unwillingness is displayed by

some respondent in answering the questionnaire as they believe, these kind

of surveys has not practical utility.

4. Limited to certain area:- Research work was carried out in Raipur, which

is just one city of Chhattisgarh. The finding may not be applicable to the

other parts of the country because of social and cultural differences

5. Lack of experience:- The project being my first attempt to undertake such

a study, thus inexperience is also an obstacle to accomplish the project in a

proper way.

6. Environmental changes:- In a rapidly changing

7. industry, analysis on one day or in one segment can change very quickly.

The environmental changes are vital to be considered in order to assimilate

the findings.
 CHAPTER-4
OBJECTIVE OF STUDY
 OBJECTIVE OF THE STUDY

 The study has been under taken primarily to analyze the Marketing
Strategies and its implementation.

 To analyze the customer preference.

 This study helps the company to take corrective decision regarding

marketing.

 To analyze the customer satisfaction.

 To know the market structure and to know the market position of

SHUBH HONDA products.\

 The idea behind the project work is to make us well acquainted with the
marketing practices of Shubh Honda.

 To evaluate the effectiveness of the marketing strategy.

 To identify the factors that influence marketing strategies.

 To provide suggestion in improving the marketing strategy, company sales

& profitability.

 To know how to maintain and improve brand awareness, build brand

loyalty. '

CHAPTER-5
COMPANY OVERVIEW
 COMPANY OVERVIEW

ABOUT SHUBH HONDA

KARAN AUTOMOBILES Pvt Ltd. is a local dealership company for Honda car

models in the capital city of Raipur, Chhattisgarh. It was established in the year

2002 and commenced its operations from 6l march, 2003 for Honda cars. The

company also deals in luxurious BMW car brand as its diversified business. The

shareholding of the company is among the family members of the head of the

organization, Mr. Prashant Mandhan. The company has its branch in Bilaspur,

Bhilai and Durg city too.

It deals in all the models of Honda cars launched by the company. Apart from

this, the company also provides exchange facility for second hand cars to its

customers at reasonable prices, thus, converting the customers of other brands to

the consumers of Honda. It works in collaboration with various financial

institutions like HDF, PNB, SBI, Mahindra and Mahindra. They are the third

highest dealers in India in terms of market share.

Karan Auto promotes the theme "The joy of living " for its Honda cars. The

company has a well defined HR policy for its employees, which is a rarely found

feature for an automobile dealership company. The staff group consists of 140

people in the organization. Every person is recruited for their specialized skills.

Each person has its own well defined authority and responsibility.

The company follows the model of line and staff for supporting the work culture

of the organization. The approach is flexible with an adequate blend of formal

and informal type of work system. The company has a vertical hierarchy which

helps in maintaining a quick reporting system in the concern. Thus, tasks are

completed on time and employees are consequently appraised.

Honda In India

Honda Siel Cars India Ltd., (HSCI) was incorporated in December 1995 as a joint

venture between Honda Motor Co. Ltd., Japan and Siel Limited, a Siddharth

Shriram Group company, with a commitment to providing Honda's latest

passenger car models and technologies, to the Indian customers. The total

investment made by the company in India till date is Rs 1620 crores in Greater

Noida plant and Rs 784 crores in Tapukara plant.

HCIL has 152 dealerships across 98 cities in 20 states and 3 Union Territories of

India. It sold 55,884 units during the period between April 2009 and February

2010 as against 45,052 units during the same period a year ago, recording an

increase of over 24%. Honda Jazz is known as Honda Fit in other countries.
 CHAPTER-6
RESEARCH METHODOLOGY
 RESEARCH METHODOLOGY

Research refers to any gathering or collecting of data, information and facts for

the advancement of knowledge. Research methodology refers to the systematic

method consisting of enunciating the problem, formulating a hypothesis,

collecting the facts or data, analyzing the facts and reaching certain conclusions

either in the form of solutions towards the concerned problem or in certain

generalizations for some theoretical forrrtulation.

DATA COLLECTION

Data can be collected either by primary data or by secondary data.

PRIMARY DATA:

It consists of information collected for the specific purpose, survey research was

used and he all the details of Fiat and their competitors were contacted. Survey

research is the approached gathering description and information.

SECONDARY DATA COLLECTION:

The secondary data consists of information that already existing somewhere

having been collected for another purpose. Any researcher begins the research

work by first going through secondary data. Secondary data includes the

information available with company.

It may be the findings of research previously done in the field. Secondary data can

also be collected from the magazines, news papers, internet other service

conducted by researchers.

Both primary and secondary data have been collected to bring out this report,

primary data has been collected through questionnaires from the respondents. The
survey of the respondents was based on Random Sampling method and

questionnaire was issued to make task easy and prepared in a structural manner.

MARKETING STRATEGIES OF SHUBH HONDA

Shubh Honda is credited with running one ofthe best-known branding

campaigns of the past decade. Under the strap line "The Power of Dreams",

the car maker's marketing has been characterized by themes of technological

progress and the aspirations of those who use its cars. Shubh Honda wants to

get the people of the city talking and thinking about the brand, creating

positive sentiments that can be tapped into at any time.

It is a philosophy that will not only drive Honda's advertising strategy, but is

part of a wider engagement focus for the firm. Shubh Honda believes that it

can reaffirm the bond with the customer if repairs are carried out fast, faults

are fixed first time and the customer's expectations are exceeded.

• The products in Shubh Honda products are generally more expensive

because of that main focus is customer satisfaction." And this is thus achieved

by summing up following strategies :-

 Shubh Honda positions its brand 'Honda' on the features like price, comfort,

mileage etc. To follow the strategy of brand positioning, Shubh Honda before

launching a product tries to research and identify the customers' demography

 and psychology to position a brand and also take suggestions from existing

customers.

 With an intention to face cutthroat competition and lure the customers,

Shubh Honda decreased the on road prices of few models like Honda

Accord and Honda Jazz.

• The firm has also introduced '4500' offer under which by paying Rs. 4500 for

seven years after a down payment of Rs. 80,000, a consumer could buy a

Honda Jazz.

• Few years before, the firm initiated a new scheme 'Teacher Plus scheme' in tie

up with SBI in which it offers reduced rates of interest for teachers who were

interested in buying a car.

• The company has implemented a strategy under which special awards are

offered to the nominated firms operating in the city who contribute a particular

share to CSR activities. Also various talent shows and and functions are

sponsored by Shubh Honda and rallies or road shows are organized to create

brand image in parallel with social causes.

• Targeting a special class of customers, Shubh Honda came up with the idea of

special corporate discounts under which rebates and concessions were

offered to the firms and corporate companies who purchase more than a

specified number of cars yearly.

• For its current customers in the city, various Honda models are available on
 exchange basis with a little additional amount.

• Besides these various other strategies like extended warranty periods, long

term returns on sales before tax, allocation of revenues to R & D for research

work, partnership and profitable tie ups, participation in auto expos etc are

practiced to provide an edge to 'Honda' brand in the city of Raipur.

CHAPTER-7
DATA ANALYSIS
Q1. What type of automobile you prefer buying in future?

Sedan 45%

SUV 35%

Hatchback 20%

As clearly seen, 45% of the respondents preferred Sedan car models,

35%preferred SUV while 20% of them preferred hatchback.

31
Q2.What are the factors affecting the purchase behavior of an individual for a
car?

• Price 30%
• Fuel efficiency 35%
• Brand image 25%
• After sales & service 2%
• Engine 8%

As depicted, 35% respondents are affected by the fuel efficiency of the car, 30%
are affected by the price or cost, 25% affected by brand image of the model, 8% are
affected by the engine of the car and only a 2% are affected by the after sale
services while purchasing a car.

32
 •
Q3. Which rand of car you prefer buying in future?

• Honda 10%
• Maruti Suzuki 10%
• Toyota 25%
• Hyundai 25%
• Others 30%

30% of the respondents prefer buying Toyota, 25% each

is gained by the brands Honda and Maruti, 10% of them
prefer Hyundai, whereas other 10% prefer other brands
such as Nissan, Ford etc
33
Q4.What is the price range you prefer buying for car?

Rs.

• . 4-7 lakhs 30%

• Rs.7-11 lakh 30%

• Rs. 11-15 lakhs 25%

• Rs. 15 lakhs above 15%

30*/o respondents prefer a price range of Rs.4-7 lakhs and Rs.7-11 lakhs, 25%
preferred buying worth Rs. 11-15 lakhs while Rs.15 lakhs and above was the
range preferred by rest 15%.
34
Q5. During your purchase were any schemes offered to you?

• Ye 28%

s 72%

• No

28% respondents purchased during scheme offered by, and 70% respondent
purchased during no schemes offered to them.

35
Q6. Which type of car engine you prefer buying?

PETROL 50%

DIESEL 50%

50% of the respondents agreed on diesel cars while 50% preferred petrol cars.

36
Q7 .How long have you been associated with SHUBH HONDA?

 From 1 year 10%

 From 1 - 3 years 40 %
 From 3-5 years 0%
 From 5-7 years 30%
 Above 7 years 40 %

30% of the respondents are aware about Shubh Honda since 3-5 years,35% from l-
3years, 20% from 7 years and above, 10% from lyear and 5% from 3-5 years.

37
Q8.Do you like the promotions and ad campaigns of SHUBH HONDA?

1 .Very 0%
Unlikely
70%
2.Likely
30%
3.Very Likely 30%

produ
ct
PROMOTIONS
WHI
CH
ARE
70%
likely
by
the
respo
ndent
s.

Promotional Strategies and Ad

82%
Campaigns used by SHUBH
Honda are basically to represent
14%
whole Brand not the particular
38
Q15. How likely would you recommend

SHUBH HONDA?

• Very Unlikely 0%

• Unlikely 0%

• Neither Unlikely nor 0%

likely 10%

• Likely 90

• Very Likely

39
90% people said they would very likely recommend HONDA to otfier people and
10% said they would likely recommend SHUBH HONDA to others.

40
 BIBLIOGRAPHY

Information taken to make this report are as follows:

• MARKETING MANAGEMENT (2002 EDITION) - PHILIP KOTLER

• STATISTICAL METHODS (30th EDITION) - S.P GUPTA

• MARKETING STRATEGY - WL WILKIE

41
 WEBLIOGRAPHY

• http://www.slideshare.net/mobile/zoog/honda-project-repoit

 http://scdlmbaprojects.blogspot.in/2011/07/project-report-

 marketing-strategies-in.html

 www.wikipedia.com

 www.hondacarsindia.com

 www.scribd.com

42
 CHAPTER-11
RECOMMENDATION

43
RECOMMENDATIONS

Number of cars sold should be increased by improving marketing strategies.

 Sales promotion techniques should be improved.

 Transaction and value based loyalty programmes can be conducted.

 Analyzing the complaints given by the customers regarding the post sales

follow ups and services, should be improved.

 Appointment of qualified sales person must be done to proper market

and create image about the models.

 Sales person should be guided properly to act efficiently in the selling

process wholly.

 The complaints of the respondents must be answered and analyzed

thoroughly in time not to built a negative image.

 Shubh Honda should keep on undertaking promotional Activities and

awareness building programme, so that awareness of the people will be

increased.

44
The firm should also pay attention to customers' feedback. Only through this, the

company can modify its products and grow with customers' love and faith. It

should work on the suggestions Manufacture and export of small cars, MUV, two

and three wheelers, tractors,components to be promoted. Specific measures will

be taken for expansion ofdomestic market. Policy initiatives for competitiveness

and developments oftechnology would be taken.

Closer partnership between industry, research institution and academia for

innovation to be encouraged. R & D, product, process and technology to be

incentivized and exports to be encouraged. Ministry of Petroleum and Natural

Gasto ensure availability of fuel as committed in Auto Fuel Policy and also to

prepare aRoad Map for Fuel Policy beyond 2010.

Incentivizing to promote designing and R & D for new product development

in India. Creation of virtual SEZ for auto component industry and Auto Parks to

promote exports with special emphasis on SMEs. The industry has a very large

number of SMEs. In order to promote the development of SMEs, it is crucial to

effectively integrate them into the supply chain as Tier 2 and 3 suppliers . (The Tier

is the complete system supplier, followed by the lower Tier companie.

45
CHAPTER-8
CONCLUSION

46
 CONCLUSION

The market of Shubh Honda car models is growing at a rapid speed, the firm
being one of the domination and leading players in passenger and luxury car
market. In this automobile segment there has been heightened competition with
other leading brands such as Hyundai, Maruti Suzuki, Ford etc. Most of the
customers are aware of the services provided and are much satisfied with the
services offered by the company while few are not. The marketing strategies
adopted such at Shubh Honda are satisfactory to a level, while to draw an edge in
the market of developing city like Raipur it still has room for improvement to
cover up a static market share.

Through all of the efforts, Shubh Honda's goal is to be a company that society
wants to exist, to pursue the joy of mobility, and to extend this joy to more
customers and to future generations.

47
QUESTIONNAIRE

48
 QUESTIONNAIRE

Q1. What type of automobile you prefer buying in future?

• Sedan

• SUV

• Hatchback

Q2.What are the factors affecting the purchase behavior of an individual for a car?

 Price

 Fuel efficiency

 -Brand image

 After sale services

 Engine

Q3. Which brand of car you prefer buying in future?

49
 Honda

 Maruti suzuki

 Toyota

 Hyundai

 Others

Q4.What is the price range you prefer buying for car?

 Rs. 4-7 lakhs

 Rs.7-11 lakhs

 Rs. 11-15 lakhs

 Rs. 15 lakhs above

Q5. During your purchase were any schemes offered to you?

• Yes

• No

Q6. Which type of car engine you prefer buying?

• PETROL

• DIESEL

50
Q7 .How long have you been associated with SHUBH HONDA?

> From 1 year

> From 1 - 3 years

> From 3-5 years

> From 5-7 years

> Above 7 years

Q12.Do you like the promotions and ad campaigns of SHUBH HONDA?

1 .Very Unlikely

2.Likely

3 .Very Likely

51
Q8. How likely would you recommend SHUBH HONDA? • Very Unlikely

• Unlikely

• Neither Unlikely nor likely

• Likely

• Very likely

52