Honda Auto Care drive every drop………

Business Plan for Honda Jazz

prepared by- Saurabh Pareek Poornima Collage of engineering ECE sem-1

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Table of Contents

• Introduction of company and executive summary

•Situational analysis•Marketing strategy•Financial projection• Implementation and controls

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Introduction

• 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

• The Honda City, its first offering introduced in 1997

• 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 across 150 acres of land (over 6,00,000 sq. m.).

• Company standard presently are ISO 9001 for quality management

and ISO 14001 for environment management.

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Executive Summary

• Soichiro Honda- Founder of Honda motor company

• Masahiro Takedagawa - President & CEO, Honda Siel Cars India Ltd. and Head - South West Asia, Honda Motor Co., Ltd.

• Mr. Jnaneswar Sen - Vice President Marketing & Sales in Honda Siel Car India Ltd.

Dream it and Do it.

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Situational Analysis

• In present Indian market, Honda stands as a faithful name

• Honda’s technology is always good compared to other automobiles of same range and globally accepted

• Now, Indian common man needs an automobile having luxury facilities in economic price

• There are many small cars launched and going to be launched in future like tata nano, hundai i20, maruti A star, fiat bravo, maruti splash, ford ikon 2009 and another name as HONDA JAZZ.

• This car Honda jazz use unique technologies and has comparatively lower price and more features as compared to others

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Contd…

• Today in market, maruti 800, Zen, wagon R, hundai Santo Xing are having good sales

• As next few months are full of festivals in India there will be a huge demand of automobiles

• Many other automobiles will be launched together

• Also there will be discounts and additional offers given on existing automobiles so to launch a new automobile followed successful sale is a difficult task

(ex showroom price of car is likely to be around 4,99,000 INR)

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Marketing Strategy

• Company’s policy is not just to create an automobile but to make it reach to common man

• To follow it Honda always keeps its automobiles updated with latest technologies

• For its marketing, company is investing $250000 for advertising

• 80% of advertising fund will be used in mass communication like TV

• 13% will be invested in hiring hoardings

• Rest of 7% fund will be used for lucky draw winners of buyers

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Contd.Customer Requirements

• These are basic requirements for full customer satisfaction

• Unless quality, value and service by company is not up to mark any automobile cannot settle in market

• Our company works on to fulfill these parameters as our aim is not only business but development of every common man

Customer Customer SatisfactionSatisfactionCustomer Customer

SatisfactionSatisfaction

QualityQualityQualityQuality ValueValueValueValue

ServiceServiceServiceService

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Contd.

• In first slot, Honda will manufacture 20000 Honda Jazz car which will be used in festive season

• Honda will separately design test drive vehicles to attract customers about 290 test drive vehicles will be manufactured

• Number of dealers will be increased and they will be given extra concession for booking more than 40 vehicles in one order

• For better marketing, company will provide finance available on demand with 5% emi

• Free accessories will be given by lucky draw to 10% of customers

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Contd.

• 6-10% discount will be given on selected accessories of only Honda jazz

• A free original Honda carry bag will be given to 20% of customers availing test drive

• Special features of Honda jazz – -60/40 split-fold rear seats with a clever 'one-touch' fold down action

and a flat load floor

- measuring 3.9 meters long and 1.69 meters wide,

- boasts a large boot with 337 litres of space which expands to 848 litres with the rear seats folded down

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Contd.

-10 cup holders. With seating for five, that's two drinks each! -The Jazz GLi's 1.3-litre motor generates 73kW of power and 127Nm of torque

-both increases on the previous model's power and torque

-this tiny 4-cylinder engine is also very efficient, using an average of just 5.8 litres of petrol per 100km

-an AUX jack for iPods and MP3 players

- and dust/pollen cabin filters (useful in spring) - tilt and reach adjustable steering wheels,

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Contd,.

-It's CO2 emissions are also very low, at 138g/km -this model comes standard with a 5-speed manual but can be

optioned with a 5-speed automatic

-All the Honda Jazz engines can be fuelled with regular unleaded petrol (91 RON) and are Euro IV compliant

-larger 16-inch alloy wheel that set off the stylish ground -effects body work

- side skirts and a chrome tail pipe

-a leather steering wheel and cruise control.

-

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Engine Specifications • Honda 1.5-litre 4-cylinder SOHC i-VTEC Engine

Power: 88kW @ 6600rpm Torque: 145Nm @ 4800rpm Fuel Economy: 6.4L/100km (man) 6.7L/100km (auto) CO2 Output: 151g/km (man) 159g/km (auto) Gearbox: 5-speed manual (optional: 5-speed auto)

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Financial Projections• Honda is investing $ 50,00,000 on production of Honda jazz in India

so to reduce its cost of production thereby decreasing its market value

• 92 Honda engineers of Japan are supervising the production of this automobile in NOIDA, India

• Honda will keep this car updated with technology as after each 8 months a new edition of this automobile will be launched with more facilities

• But first updated car will come after14 months of launch to give jazz time to settle in market and it will be named as Honda Jazz hybrid

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Contd.

• for next model Honda will invest about double of its previous investment i.e. $ 95,00,000

• Honda expects to get the invested money in first 8 months and the next 6 months will be in profit money

• If invested money is not recovered in those 8 months Honda will reduce the price slightly to attract more customers

• To constantly increase the number of customers prices of hybrid models will not be increased drastically

• Honda will reinvest the 65% profit money back in market

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Contd.

• If after 2 years jazz car keep a hold In market then Volkswagen is ready to invest in Honda

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Implementations & Controls

• Honda is expecting to get profit of $13.56 over every $100 but if this goal is not reached Honda will invite foreign investors to achieve these goals

• For price control, Honda is providing many financial and loan against security schemes

• Honda has now made a separate department to deal with market matters as market analyst dept.

• For full customer satisfaction a web support is available on www.hondajazz.com to sort every query

• Consumers can call toll free on 1800-1800-000 for queries and registration of test drive

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Contd.• Our major strength to compete with our competitors are our

technology, low price and lesser maintenance

• To control price rise we are working on its body and graphics to reduce there production cost

• After completion 1 year we will launch 1000 limited edition vehicles with new graphics sold on basis of lucky draw of applicants

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•Honda a name…………. you can trust upon……..

Thank You