‘s PRODUCT & BRAND MANAGEMENT SoumyojjwalDatta- 53 TusharAnand- 59 AbhishekChakraborty- 21 Rahul Singh- 60
Evolution of Transportation:The need • First step toward man-made transportation began in either Mesopotamia or Asia, sometime around 4000-3500 BC, with the invention of the wheel. • Invention of the wheel would eventually make man’s ability to transport his crops from one place to another less awkward, and birth the idea of trade and exchange. • The invention of the wheel would lead to the development of mass transportation, as man put his new invention to practical uses. • The invention of the cart and chariot.
CONT… • The two-wheel chariot found its birthplace in Sumeria, and is believed to be the world’s first form of wheeled transportation. Built around 3500 BC, this chariot increased the speed of travel over land, and eventually led to the four-wheeled cart, which took the burden off carrying supplies . • The automobile was the single most important development in the history of transportation since the invention of the wheel. Automobiles increased personal mobility and permitted people to live at greater distances from their work, leading to the formation of suburbs.
Consumer Behaviour: Cars from need to luxury • The first actual surviving record of a powered vehicle is from AD 1670, when a Jesuit missionary in China built a cart driven by a steam turbine. • By 1840, this concept had developed into the “road locomotive,” a contraption not very unlike the modern-day bus. • In 1860, a Frenchman named Jean Joseph Etienne Lenoir devised an internal combustion engine which ran on illuminating gas. The first actual automobile, however, wasn’t patented until the 1890s. • Advancements have continued to be made in the time since.
First car, MARCUS First Box car, 1925 1st sedan, Corolla 1870 1920 1950 1960 1st SUV, Range Rover 1981 EVOLUTION OF CARS 1980 1990 2000 2010
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”
CATEGORY ANALYSIS: 70% of all the cars sold in INDIA fall under the small car category. In FY 2009-10, 8,85,676 small cars were sold against only 2,84,414 big cars.
There is a tremendous Opportunity in this Category. The growth in Premium Hatchbacks is almost 4 times the growth in the overall Category
Thus it is very clear that the launch of JAZZ propelled the market share of premium hatchbacks
All SUV’s , MUV’s,Sedans, Small cars(Hatchbacks). Flats (appx. 1 Bhk), Jewellery, Small Scale business, Super Bikes. Competitive Set: Swift , Ritz(base model), i20(base model),A star, Beat , Figo. Fabia , Fiat Punto , VW Polo, Ford Fusion , i20 sports, Ritz(zxi abs)
MARKETING STRATEGIES: SWOT Analysis
Segmentation Targeting Positioning • Segmentation: • With the all new JAZZ, the company is trying to cater to the premium hatchback segment which is currently the most sought after segment by the upper middle class customers • Targeting: • The target market of JAZZ are the families who already own a Premium sedan and are planning to buy a second car • Also Families who want to upgrade their Cars from Hatchbacks to Premium Hatchbacks • Many Premium Hatchbacks are costlier than entry level sedans but have the same space, style and features when compared to them, this segment can be a smart substitute for those. • Perfect target for youth due to its stylish & technological appeal.
Positioning: • Honda decided to position JAZZ in an entirely new category “J” • This category was created in order to make the Indian Customers aware that Honda Jazz is not an Ordinary Premium Hatchback but has a class of its own. • Honda Positioned JAZZ in the minds of its target customers who give Performance, Style, Design and Technology more importance than Price.
CONT… • Company’s policy is not just to create an automobile but to create a concept which is going to change entire segment definition. • To follow it Honda always keeps its automobiles updated with latest technologies • For its marketing, company is investing $2.5million for advertising • 80% of advertising fund will be used in mass communication like TV
CONT… • Online marketing is being given importance • According to company report ,Honda is spending about 10-15% of its total advertising budget on online marketing • It got around 2500 online test drive request within 2 days of its launch due to its online banner and search engine marketing. • This saves Honda's cost as compared to any other conventional campaigning strategy.
How do they fare? 1248CC; Multijet 1200cc; Kappa 1598cc; MPI 1148cc; MPI 15Kmpl 15Kmpl 14kmpl 14.5Kmpl (3987mm) 2400mm (3940mm)2350mm (3970mm)2380mm (3992mm)2410mm 330 litres 295 litres 250 litres 290 litres 5.2m 5.0m 5.4m 5.1m 85bhp 88bhp 74bhp 70bhp Rs. 6,56,000 6,86,000 7,40,000 7,76,000 ENGINE MILEAGE SPACE BOOT SPACE TURNING RADIUS POWER PRICE
How do I fare? ENGINE MILEAGE SPACE BOOT SPACE TURNING RADIUS POWER PRICE 1198cc iVTEC(Revolutionary Engine borrowed from CITY) 17kmpl (Best in Class) (3900mm) 2520mm (Small Outside but BIG inside) 394Litres (largest Boot space) 4.9m (smallest Turning Radius) 93bhp (Better pickup) Rs. 6,98,000 (A few thousand rupees more is justified isn't it?)
Financial Projections • Honda is investing $ 50,00,000 on production of Honda jazz in India so to reduce its cost of production. • 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
CONT… • For the 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
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
REFERENCES: • www.wikipedia.com • www.essortment.com • www.hondajazz.com • www.merigadi.com • www.scribd.com • Articles –Autocar India, Overdrive, Topgear • Videos from- Youtube and metacafe.