Project on Consumer Behaviour towards Car Purchase

Presented by :
Malvik Majithia Upama Saha Joshi Das Akshita Bhatia Aniruddha Sarawgi Saahil Sinha

History: Honda Cars India Ltd

Established in 1995 Product Range includes:
Honda Brio Honda Amaze Honda City Honda Accord and Honda CR-V

Globally recognized for its concern towards

environment, safety and conservation of the society

History Continued
Honda Environmental Vision: Realizing the Joy and Freedom of Mobility and a Sustainable Society where People Can Enjoy Life

Global Environmental Slogan:

Blue Skies for Our Children

New Honda Amaze

Milestones
Honda launches its new family sedan Amaze in India

Published: Thursday, April 11, 2013 Honda Cars India Ltd. clocks highest ever India sales in May 2013 Published: Saturday, June 01, 2013 Honda Cars India flags off Drive to Discover rally with Honda Amaze from Peninsular Honda, Thiruvananthapuram Published: Thursday, August 22, 2013 Honda Cars India achieves 30,000 Honda Amaze sales milestone Published: Thursday, August 29, 2013 Honda Cars India Ltd. records 63% sales growth in August13 Published: Monday, September 02, 2013

Why Amaze India?

Significant Market for automobiles Export of engine parts to European markets Proximity to Raw Material Source City, Accord, Civic, CRV Amaze:
First entry in the compact sedan segment First ever use of diesel engine by Honda in India

Complements its strategy to include export of

diesel engine parts to Asia and European markets

Why Amaze India?

Growth in the Segment
Compact sedan segment is the fastest growing Diesel variant is necessary for survival

Reduced excise duty

<4m length and < 1.2 Litre engine = 12% as compared to 24-27% Translates to cost differences of 50K-70K

Market demands make a product to please 1.2 billion

In India, sedans are associated with luxury, but they have

traditionally been too big and cumbersome to navigate on Indian road Meet the needs of a price sensitive market while maintaining Hondas reputation of reliability

Utility Perception of the Consumer

Status Symbol: 3-box car at the price of a hatchback

HOW HONDA WENT ABOUT IN MAKING AMAZE

Cost
cutting costs doesnt mean cutting down on

quality Hisao Takahashi,President, Honda R&D Asia Pacific

search the Indian market for what kind of materials were available what kind of suppliers there were to produce the best quality advantage of Indias tax structure and designed a sub-four-metre sedan

If there was no India, there would be no Amaze People wanted a compact cars exterior footprint with limousine-like interior comfort.

compact car the road presence of a prestigious sedan

Triangular shape
popular color for the interiors in India is beige, since it

signals luxury wheelbase by 60mm to liberate more space in the cabin

observed was that Indian people have longer legs, and so

this car had to have more legroom It had to be comfortable in the front, comfortable in the back, and also have a big boot that you can put a lot of stuff in

The all-new Honda Amaze is equipped with a new-generation 1.5L i-DTEC diesel engine, which has been specially developed for India, and the popular 1.2L i-VTEC petrol engine --Hironori Kanayama, President & CEO, Honda Cars India Ltd

Competitors take on Amaze

Dzire posted its highest monthly sales ever at

20,078 units, outselling its sibling Swift in the process

 Honda can only produce a limited number.

Beyond 5000-6000 units a month, it simply does not have the capacity Increased spending on marketing and advertisements on the Dzire The launch of a special Regal edition of the car in tandem with the Amaze launch

GAP Analysis
Areas of improvement:
Honda needs to reduce the diesel engine noise
Clutch is hard - driving in city traffic jam will be painful.

The Instrument panel needs some add on features .

Needs to improve in Ground clearance.

Price Comparison
Honda Amaze Toyota Etios
The Diesel E variant will be at 5.99 lakhs. Diesel variant starting at 6.71 lakhs. Diesel variant starting at 6.29 lakhs. 4 Diesel options, prices starting at Rs 6.31 lakhs Diesel variant at 6.23 lakhs Diesel at 5.91 lakhs.
* Source: Economic Times

Chevrolet Sail
Mahindra Verito Maruti Dzire Tata Manza

Primary Survey Analysis

Age Groups
3% P e r c e n t a g e 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 1-3.99 lakhs 4-7.99 lakhs 8-11.99 lakhs 12 lakhs

Income Levels

28%

18-25 yrs 26-35 yrs 69%

36-45 yrs

Occupation
80.0 P e r c e n t a g e 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Business Service Student

Relationship with Income level

Income * WhichCar Crosstabulation
WhichCar Income 12 lakhs Count % within WhichCar

Amaze Desire 10 5
25.0% 0 0.0% 15 37.5% 7 17.5% 8 20.0% 40 100.0% 17.9% 2 7.1% 11 39.3% 4 14.3% 6 21.4% 28 100.0%

Total
15 22.1% 2 2.9% 26 38.2% 11 16.2% 14 20.6% 68 100.0%

1-3.99 lakhs Count % within WhichCar 4-7.99 lakhs Count % within WhichCar 8-11.99 lakhs Count % within WhichCar N/A Total Count % within WhichCar Count % within WhichCar

Comparative Analysis
Parameter Brand image
Price Features Engine Power Interiors Look/Style After sales service Fuel Effeciency

Brand Honda
Maruti Honda Maruti Honda Maruti Honda Maruti Honda Maruti Honda Maruti Honda Maruti Honda Maruti

Significance Level 0.123

0.340 0.005 0.001 0.000 0.000 0.000 0.267

Perception Same
Same Different Different Different Different Different Same

Mean Values

3.92 3.55 3.89 3.44 3.89 3.20 3.47 4.20 3.29 4.21

 Features Engine Power Interiors

NEUTRAL Brand Image Price Fuel Efficiency Looks/Style After Sales Service

Purchase Behaviour of customers

Purchase Behaviour of customers

Incentives for buying

Motivation

Cues

Rewards

Reinforcements