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INDIAN AUTOMOBILE SECTOR

Sales
Two Wheeler Passenger Vehicle 5% 15% 3% Commercial Vehicle Three Wheeler

77%

CONTINUED
HONDAs first product in the diesel segment Diesel segment-Swift Dzire Tax benefits within 4 mts. Perception of a 3-box car Stole the market Opportunity in the drawbacks of other designs Extension of BRIO

THE COMPETITORS
FEATURE
INTERIOR CONTROL EFFORTS

SWIFT Dzire

HONDA AMAZE

BOOT SPACE
PICK UP ENGINE AUDIBILITY MANOEUVRABILITY SPACE AND LEGROOM

ENGINE
COST

Consumer Decision Making Model


External Influences

Input

Firms Marketing Efforts Consumer Decision Making Need Recognition


Prepurchase Search Evaluation of Awareness Post Decision Behavior

Sociocultural Environment

Process

Psychological Field

Experience

Output

Purchase

Post-Purchase Evaluation

Pre-Purchase Search
Factors Increasing Pre-Purchase Search Product Factors Long Purchase Time High Price Many Alternative Brands Variation in Product Features Consumer Factors Well Educated High Income White-collar Occupation High Product Involvement

Pre-Purchase Search
Situational Factors Experience First time purchase, or Unsatisfactory past experience Social Acceptability Product is socially visible Value Related Consideration All Alternatives have both desirable and undesirable consequence Family members influence evaluation of alternatives Product involves ecological considerations Many sources of Conflicting Information

MOTIVATION
Motivational Factors A Motif-Satisfaction of purchasing high price sedan Less Taxes as compare to traditional sedan Cost savings of Rs 50,000 to Rs 60,000 Mileage of 25.8 kmpl Value of Status Symbol Design- looks like proper sedan not a hatchback. Stylish and Cohesive appearance Space

MOTIVATION
Features - Heat Absorbing Front Windshield - Steering Mounted Stereo Controls - Rear Armrest with Cup Holders - Electrically Foldable ORVMs - Trunk space of 400 L - Nimble urban driving & peace of mind - High Suspension - Balanced noise and vibration performance

MOTIVATION
Maslows hierarchy- Ego needs (Prestige, status, selfesteem) Slogan- Badle Aap ki Duniya A Trio of Needs- Power

DIFUSSION OF INNOVATIONS
Amaze as Diffusion of innovations A dynamically continuous innovation Characteristics that Influence Diffusion The Channels of Communication Impersonal information sources- Advertising Interpersonal source of information- Internet

HONDA - Understanding Consumer Behavior


Honda Jazz & Brio - not in sync with what customers wanted Amaze - Honda has finally cracked the code for a middle class Indian Relied on heavy market research and consumer feedback understanding the consumer learning Took its time in analysing the competition and understanding the needs (2 years in losses) Came up with first ever indigenous diesel car expectations and economics

Positioning
Amaze is positioned as a common mans car - it meets expectations List of consumers requirements - a sedan, similar price to premium hatch, boot space, comfortable rear seat, legroom, sub 4 meter segment etc. Designed keeping in mind its competitors specifications

Brand Loyalty Honda cars are known for its quality, reliability
and finesse Latent loyalty - could be converted to high loyalty with the help of Amaze Buying an Amaze High involvement decision for almost all Value-expressed - Demonstrating one's self image to outside world

SOCIAL CLASS
Honda Amaze made especially for the Indian market o After food and beverages, Indians spend most on transport and fuel o Need for diesel engines though late entrant in the entry level sedan market o Most fuel efficient car in its class; 25.8 kpl o Smart mass targeting towards upper-middle class and lowermiddle class o By 2050, Indias middle class will be 10 times larger than it is

INFLUENCE OF CULTURE
o Japanese cars known for quality an innovation o Honda identified the dynamic nature of culture -who are the purchasers and users -when they do their shopping -when and how they can be reached by the media -what new product and services needs are emerging o age of aesthetics- not just among upper-middle class but among all customers

INFLUENCE OF CULTURE
o Core values of Indians identified by Honda before launch
Family orientation Achievement orientation Seeking prosperity Savings orientation Shopping as a ritual Forwardlooking

Utilitarianism

Honor and self-esteem

Innovation

PERSONALITY AND CONSUMER BEHAVIOR The print ad of Honda Amaze is aimed at visualizers. Product personality matches the personality of a modern middle class family. Available in a range of colours a person can choose to match his personality. i.e red: passionate, silver: sophisticated, black: corporate

CONSUMER PERCEPTION Honda Amaze effectively addresses the needs of target segment keeping in mind the concept of selective perception. (leg room, rear storage) Design of Amaze is more attractive more persuasive The following ad is based on the principle of contrast Honda conveys its engine is powerful and yet gives good mileage Amaze is the first diesel product from Honda (competition with Swift Dzire)

CONSUMER PERCEPTION
Honda Amaze pricing is done keeping in mind its positioning. Honda Amazes petrol range starts from Rs. 4.99 lakhs to Rs. 7.57 lakhs. The diesel variants range from Rs. 6.03 lakhs to 7.66 lakhs. Good pickup, noise reduction, classy interiors, good mileage etc features maintain the price-quality relationship. Digital Marketing is effectively used for positioning- Facebook, twitter, YouTube for promotion of product and customer testimonials.

Swift Dzire VS Honda AMAZE

RELATIONSHIP MANAGEMENT
To foster loyalty and commitment in customer To create long lasting relationship with core group of customers Five Dimensions that can satisfy customers need:
Cognitive relevancy of product Affective Identification with Brand Conative Perceived value for money Situational Accessibility of Product Social Norms Customers confidence in product

LOYALTY BUILDING STRATEGY


Reduced Marketing Costs Lower Transaction Costs Reduced Customer Turnover expense Increased cross selling success More positive word of mouth Reduced Failure Costs

Why Honda Amaze?


Customers trusted the Honda Brand Adequate safety measures Well Engineered Car Spacious Interiors Easy to park in crowded space Excellent test drive experience

THANK YOU!

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