STUDY OF CONSUMER

BUYING BEHAVIOUR AND PREFERENCES

IN
SMALL CAR SEGMENT

Presented By:-
Company Guide
Mr. Gurusharan Dhillon Himanshu Gupta
AGM-Product Planning

College Guide
Dr. Shekhar Trivedi
Associate Professor, Marketing
Honda Siel Cars India: Company Profile
Name of the Company : Honda Siel Cars India Ltd.
CEO & President : Mr. Takashi Nagai
Established on : 5th December 1995.
Location of Unit : Greater Noida Industrial Development Area
Distt. Gautam Budh Nagar (U.P.) Pin-201306
Capital – Paid Up : Rs. 3600 Million
Equity Share Capital : Honda Motors, Japan : Siel Ltd.
99% : 1% (Current)
Investment : Rs 7800 Million
Installed Capacity : 50,000 Units per Annum
(2 Shift basis)
Item of Manufacture : 1. Honda Jazz
2. Honda City
3. Honda Civic
4. Honda Accord
Commencement of Production : 15th December, 1997
No. of Associates : 2300

Exports: HSCI started exporting cars from Dec. 2000.

Exports were made to SRI LANKA in Dec. 2000 & to BANGLADESH in 2001 Items
Manufactured: Latest world class fuel efficient cars – CIVIC, CITY & ACCORD
Though HONDA CRV is imported from Thailand
 Segment-wise Approach
Separate Segment

Different Approach

Premium Group Super Premium Group

B+ Upper C Lower D Upper D SUV

Down Market Stretch Up Market Stretch

Segment Wise Share of Car Sales in India (F.Y. 2009-10)

Market Segment of cars in India (F.Y. 2009-10) Unit Sales

Segment (F.Y. 2009 -10)
Economy Segment 306,686
22% 13%
Entry B Segment 631,191
1% B+ Segment 262,689
C Segment 278,338
25%
15% Lower D Segment 27,592
0%
1%
1%
11% 11% Upper D Segment 15,483
Luxury Segment 5,288

Economy Segment Entry B Segment B+ Segment C Segment MUV's 352,164

Lower D Segment Upper D Segment Luxury Segment MUV's SUV's 14,198
SUV's Commercial Commercial 531,395
Entry of Honda in New Segment

Small Car Segment (Entry B Segment)

Features of New Honda Small car

• The car is specially designed making room for five people.
• Provides better driving comfort
• Provides better control over the car
• It is a family car.
• Front forward fenders highlight the presence of the vehicle
• Would be priced below 5,00,000
 Objective

To analyze the consumer buying behavior and preferences towards

new small car. As Honda is launching its new car in December
2010.

• To know the customer preferences at the time of the purchase

of new Ford Figo.

• To know the key satisfaction and dissatisfaction areas in their

car.

• Getting to know about the certain new features preferences.

 RATIONALE
The survey was conducted of Ford Figo

• Honda will be launching a car of the same segment in 2011, so they wanted
to know the consumer buying behaviour and preferences before buying a
new small car
• Ford Figo has reported an over three-fold jump in sales during the month of
May to 8,080 units on the back of a good responses for its latest small car,
Figo.
• Figo registered a sale of 22,905 units till the month of may.
• Figo already has over 20,000 bookings since its launch.

Sales figure of New Ford Figo

Sales

10000
8080
7210 7509
8000

6000
Sales
4000

2000
106
0
February, 10 March, 10 April. 10 May, 10
Sales 106 7210 7509 8080
Research Methodology

Research Design
Exploratory research design followed by Descriptive.

Data Collection method

• Primary Data: Survey (One-to-One Interview & telephonic Interview)
• Secondary Data: Product Planning Department and Websites

Research Instrument:- Structured Questionnaire consisted of multiple

Choice questions
Research Methodology

Sampling Plan

Sample Size:- One-to-one Interview:- 53

Telephonic Interview:- 47

Method Of Sampling:- One-to-one Interview:- Probability sampling

Telephonic Interview:- Judgmental sampling

No. of Locations Visited

• Delhi and NCR region

Targeted Customers
Targeted customers were users of Ford Figo by visiting in showrooms
and workshops of Ford, malls, parking places, petrol pumps, etc.

Period of Survey:- 17th of May to 26th of May, 2010

 Users of Car

Users of Cars First Car User Additional Car User Replacement Car User Replacement Car
user and Have
additional Car also
No of Responses 22 19 32 27

Users of Cras
Replacement Car
user and Have
additional Car also,
27 First Car User, 22

Additional Car
User, 19
Replacement Car
User, 32

First Car User

Additional Car User
Replacement Car User
Replacement Car user and Have additional Car also

Suggestion:- In this we can see the replacement car users are the most who
are replacing there car with the new car. Honda can target those customers
whose cars need replacement due to some reason, and the most common
reason may be the oldness of the car.
Reasons for the Purchase of New Car

Reasons for purchase of New Ford Figo No of Responses

Wanted to buy before trade-in value of the previous car become too low 25
Financial status has now improved 17
Previous Car had Troubles 12
Became necessary for work 10
Family structure changed 8
Wanted to have your personal car, apart from the family 7
Became necessary for commuting to work/ school 5
Got driver’s license 3
Disappointed with the dealer of the previous car 3
Received as a gift for entering school/ getting new job 1
Maintenance costs for previous car were too high 1
Other 7
 Reasons for the Purchase of New Car

Reasons for Purchase of New Car

Other
Maintenance costs for previous car were too high
Received as a gift for entering school/ getting new job
Disappointed with the dealer of the previous car
Got driver’s license
Reasons

Became necessary for commuting to work/ school

Wanted to have your personal car, apart from the family
Family structure changed
Became necessary for work
Previous Car had Troubles
Financial status has now improved
Wanted to buy before trade-in value of the previous car become too low

0 5 10 15 20 25 30
No of Responses

Suggestion:- Honda should target those consumers whose small car has
become older (Above 4 years) and they need to buy a new car before the trade
value of there previous car become too low and consumers whose financial
status is increasing.
Other Cars considered before purchase

Other Cars Considered No of Responses

Chevrolet Beat 78
Maruti A-Star 52
Hyundai i10 39
Hyundai i20 37
Tata Indica 27
Volkswagen Polo 25
Maruti Swift 23
Hyundai Santro 23
Maruti Wagon-R 22
Honda Jazz 22
Maruti Zen Estilo 14
Chevrolet Spark 6
Hyundai Getz 6
Fiat Punto 1
Other 2
Other Cars considered before purchase

Cars considered before the purchase of Ford Figo

Other
Fiat Punto
Hyundai Getz
Chevrolet Spark
Maruti Zen Estilo
Honda Jazz
C ars

Maruti Wagon-R
Hyundai Santro
Maruti Swift
Volkswagen
Tata Indiaca
Hyundai i20
Hyundai i10
Maruti A-Star
Chevrolet Beat
0 10 20 30 40 50 60 70 80 90
No of Responses

Suggestion:- Keeping in mind the key features of the competitors Honda

should launch its Honda new car specially of Chevrolet Beat and Ford Figo
Reasons for the Consideration of those cars
Reasons for the consideration of those Cars No of Responses
New in the Market 49
Same Price Range 45
Having Good Brand Name 39
Same Segment 33
Current Car from the same Segment 1
Comparison seen in any Television/Magazines 1

Reasons for the consideration of those cars

Comparison seen in any Television/Magazines

Current Car from the same Segment

R easo n s

Same Segment

Having Good Brand Name

Same Price Range

New in the Market

0 10 20 30 40 50 60
No of Responses

Suggestion:- Honda should launch it car by the time his competitors are not
launching as the Honda’s biggest competitor Toyota is also planning to launch
its new car in 2011, because consumers mostly prefer a new launched car.
 Sources of Information
Source of Information No of Responses
Friends and Relatives 41
Television 33
Magazines and Newspapers 33
Internet 27
Pamphlets & Brochures 24

Sources of Information

Pamphlets & Brochures

Internet
S o u rce

Magazines and Newspapers

Television

Friends and Relatives

0 5 10 15 20 25 30 35 40 45
No of Responses

Suggestion:- The most preferred is friends and relatives for which the companies
don’t have any approach, but increasing its advertisements in television,
Magazines and newspapers company can increase its sales.
Satisfaction Reasons in Ford Figo

Satisfaction Reasons No of Responses

Driving Performance 48
Comfortable Drive 39
Mileage 37
Bluetooth Interface 29
Design 26
Seating Comfort 23
Roominess/Spaciousness 14
Air-Conditioning 9
Safety Features 7
Durability 6
Storage Space 6
Size of Your Car 4
Reliability 4
Quality 3
Engine 1
Others 5
 Satisfaction Reasons in Ford Figo

Satisfaction Reasons in Ford Figo

Others
Engine
Quality
Reliability
Size of Your Car
Storage Space
Durability
Reasons

Safety Features
Air-Conditioning
Rominess/Spaciousness
Seating Comfort
Design
Bluetooth Interface
Mileage
Comfortable Drive
Driving Performance

0 10 20 30 40 50 60
No of Responses

Suggestion:- Honda should manufacture its car by considering that its

should provide best driving performance comfortable drive and mileage
in its new car.
 Dissatisfaction Reasons in Ford Figo

Dissatisfaction Reasons No of Responses

Air-Conditioning 17
Mileage 13
Reliability 9
Durability 8
Seating Comfort 5

Dissatisatisfaction reasons in Ford Figo

Seating Comfort
R easo ns

Durability

Reliability

Mileage

Air-Conditioning

0 2 4 6 8 10 12 14 16 18
No of Responses

Suggestion:- Honda should consider all the 5 things above so that they can
deliver their best to the consumer along with the safety, good engine, etc.
 Use of New Feature ‘Bluetooth Interface’

Use of Mobile Phone while Driving

User of Mobile Phone while Driving No of Responses

36%
Yes 64
Yes
No 36 No

64%

Use of Bluetooth Interface while Driving

Use of Bluetooth Interface while Driving No of Responses 7, 11%

Daily 7 28, 44% 13, 20%

Weekly 13
Once a Month 16 16, 25%

Never 28 Daily Weekly Once a Month Never

Suggestion:- The assembling of new feature in the Ford Figo is not seemed to
be the very good, because the people are not so familiar with this feature but I
will suggest that this feature should be there in the car because most of the
people use mobile phone while driving and it is one of the safety feature and
Honda should also make familiar to consumer with this new feature.
Additional accessories installed in new Ford Figo

Additional accessories installed No of responses

Yes 79
No 21

Additional Accessories Installed

21, 21%

79, 79%

Yes No
Places from where additional accessories
have been purchased

Place from where additional accessories have been Purchased No of responses

Company 43

Outside (After market) 36

Place from where additional accessories have been Purchased

36, 46%

43, 54%

Company Outside (After market)

Additional Accessories Installed
Additional Accessories Installed No of Responses
Car Floor Mat 71
Car Seat Cushion 56
Car Sun Shade 34
Cigarette Lighter and Charger 27
Steering Wheel Cover 21
Graphics 2
Other 5

Additional Accessories Installed

Other
A c ce s s o rie s

Graphics
Steering Wheel Cover

Cigratte Lighter and Charger

Car Sun Shade
Car Seat Cushion

Car Floor Mat

0 10 20 30 40 50 60 70 80
No of Responses

Suggestion:- As findings shows that people use to install additional

accessories in their car. Mostly they purchase it from the company. So I will
suggest that company should provide basic and low cost accessories like
floor mat, seat cushion, sun shade, cigarette lighter, charger and steering
wheel cover as a free gift along with the car to attract the consumers.
Image of Honda as a Brand
Image o Honda as a Brand No of Responses
Youthful 13
Technologically Advanced 53
Reliable 22
Royal Brand 27
Luxurious 38
Other 12

Image of Honda as a Brand

12, 7% 13, 8%

38, 23%
53, 33%

27, 16%
22, 13%

Youthful Technologically Advanced Reliable Royal Brand Luxurious Other

Suggestion:- As the findings shows that Honda is technically advanced. So I

will suggest Honda that they should advertise their product by focusing more
towards technology. As Jazz is not performing well in the market so it may be
possible that giving a good message to the consumer may help.
 Demographic Information

Gender:

Male : 70
Female : 30

Suggestion:- As female car users are increasing so will suggest that the
Honda should Target females also by its technology of Auto-Transmission by
showing in advertisements that driving an AT car is much easier as compared
to Manual-transmission
 Demographic Information

Age Group:

Below 21 : 12
21 – 30 : 25
31 – 40 : 31
41 – 50 : 23
Above 50 :9

Suggestion:- Honda should target the age group of 31-40 years because
these are the persons who are newly married or have 1 child and there are
not of so much high class to afford a premium class car so they can go for
new Honda
 Demographic Information

Education:

Intermediate :9
Graduate : 31
Post-Graduate : 60

Suggestion:- Honda Should target post-graduate consumers because it has

be obvious that they can have good salary package
 Demographic Information

Family Income:

Below Rs. 45,000 :8

Rs. 45,001-60,000 : 15
Rs. 60,001-75,000 : 27
Rs. 75,001-90,000 : 21
Above Rs. 90,000 : 29

Suggestion:- The family income plays the most important role in buying behaviour
of the car so Honda should target the consumers whose income is above Rs.
45,000 and specially targeted towards whose income lies in the range of Rs.
60,000 - 75,000.
 Demographic Information

Marital Status:

Single : 24
Married with no children : 20
Married having 1 child : 33
Married having 2 or more child : 23

Suggestion:- Honda should target consumers who are married and have 1 child
 Demographic Information

Occupation:

Service : 29
Official : 11
Businessman/Self-employed : 26
Professional : 11
Others : 23

Suggestion:- Honda should target service and business class families

for their new car
 Recommendations

Target Customers for New Honda Small Car Apart from Demographic

• Newness of model: The consumers will be targeted who are more

conscious to buy a new model of the car.

 Brand Image of Honda: The brand image of Honda is good in the

market, so the consumers who look for the brand should be targeted.

• Honda’s Technology: The Honda is known for its technology. The three
great innovations of Honda are Asimo, Jet, FCX known world wide.
 Recommendations
Marketing – Mix for New Honda Car

Product
Product variety:- Manual transmission and Automatic Transmission

Quality:- They should maintain their quality as they are well known for the
quality product

Design:- The design is already been decided

 Recommendations
Features:-
Exterior Interior Safety and Security Convenience
Body Colored Bumpers Integrated Audio with AM/FM CD MP3 + Dual Front SRS Airbags Air Conditioner with Heater
Aux in
Body Colored Outside Rear Front & Rear Speakers ABS with Brake Assist Driver and Passenger Vanity Mirror
View Mirrors
Body Colored Door Handles Seat fabric Color - Titanium EBD (Electronic Brake-force Tilt Steering Column
Distribution)
Halogen Lights Rear Seat (60:40 split) G-CON (G Force Control Technology) Tilt Steering Column

Rear Micro Antenna Seat Back Pocket (Passenger Side) ECU Immobilizer Drive by Wire

Mud Flaps Front Seatbelt Pretentioner with Load Instant Fuel Consumption Display
Limiter
Day/Night Side Rear View Mirror Power Door Lock

Rear Wiper Headlight Height Adjuster

High Mount Stop Lamp Power Door Mirror

Full Size Spare Tyre Front Seat Belt Height Adjuster

Power Windows
Front & Rear Seat Adjustable
Headrest
Key Alarm
Headlight Alarm
Foot Rest
Front and Rear Console Pockets
Accessory Socket

Front and Rear door Lining Pockets

 Recommendations
Brand Image:- The brand image of Honda is good but from last 2 years they are
loosing so for the success and maintain its brand image they have to give their
best.

Warranties:- Honda should provide warranty of at least 1 year and if possible

expand it upto 3 years as its competitor Chevrolet is doing.

Price

List Price:- As they are in entry of B segment so the list price should not exceed
above 4.5 lakhs.

Discounts:- The company should also offer discounts at the time of year end as
all other companies provide discount at the month of December.

Allowances:- The company should provide at least 6 free services to its

consumers and provide basic accessories like floor mat, seat cushion, sun
shade, cigarette lighter, charger and steering wheel cover to its consumers
 Recommendations
Promotion

Advertising:- As Honda has good brand image in terms of technology thy

should show the message of advanced technology and also target females by
giving the message that automatic-transmission is easier to drive as compared
to manual transmission in advertisements of daily soaps.

Corporate Sales:- As companies provide cars to their employees, so Honda

should also target companies for the corporate sales and providing some extra
benefit to them.

Place

Location:- Honda will be manufacturing it car in Greater Noida Factory and if

the Demand will increase they will also operate in Rajasthan Factory.

Inventory:- Honda should plan for proper inventory because it has been seen
that the demand for new car is always high and that to of specially small cars.
Other Recommendations & Conclusion

• To survive in the Indian market where the ratio of middle class people is the
highest Honda should have a Small Car.

• As ‘Customer is the King’ so Honda should always adopt its strategy

according to the consumers preference.

• ‘Think Global, Act Local’ - Honda should adopt its strategy in the point of
view of Indian Context.

• Honda should also do something to save our earth from Global warming
and act as a promoting activity.
Thank
You