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Activa Product Improvements
Activa Product Improvements
PRO
PRODUCT IMPROVEMENTS IN
HONDA ACTIVA
JBFBDV
ACKNOWLEDGEMENT
Contents
ACKNOWLEDGEMENT ............................................................................................................................. 1
EXECUTIVE SUMMARY ............................................................................................................................ 3
INTRODUCTION ....................................................................................................................................... 4
About the Company Honda Motorcycle & Scooter India Private Limited (HMSI) ............... 4
Corporate Philosophy: ................................................................................................................. 4
Mission: .......................................................................................................................................... 4
Vision:............................................................................................................................................. 4
Brand Philosophy: ........................................................................................................................ 4
PRODUCT PORTFOLIO ......................................................................................................................... 5
ABOUT THE PRODUCT ACTIVA ......................................................................................................... 7
Medium Involvement Product ........................................................................................................ 8
PRODUCT LEVELS FOR HONDA ACTIVA................................................................................................... 9
PRODUCT IMPROVEMENTS & ANALYSIS .............................................................................................. 10
Year 2009 New Honda Activa .................................................................................................... 10
Year 2013 ACTIVA HET ................................................................................................................ 12
Year 2015 ACTIVA 3G .................................................................................................................. 13
REFERENCES .......................................................................................................................................... 16
EXECUTIVE SUMMARY
Honda Activa, the two-wheeler manufactured by Honda Motorcycle & Scooter India Private
Limited (HMSI) was product chosen to analyse the changes and product improvements as
part of the project. The first step was understanding the company and the range of products
offered by the company, and then going focussing on the product Honda Activa. All the
features of the product were studied initially. Following that, changes and improvements made
in the product from 2009 till 2015 were tracked. Both primary and secondary sources of data
were used to compile the list of changes introduced in the product. Primary data as to the
details of changes and improvements made in Honda Activa was collected from Mr. Pramod
Akula, the Area Sales Manager of HMSI Ahmedabad. Along with primary data, secondary data
from the companys website and articles from various sources on the internet was also used.
It was found that three major improvements were made in the product, in 2009, 2013 and
2015. The major improvements/changes made were introduction of new engine, CBS (CombiBrake System) and HET (Honda Eco Technology).
After compiling the details of changes and improvements, an analysis was done to find out the
reasons behind introducing those changes. Further analysis was done to understand whether
these changes have actually provided competitive advantage to the company, to identify
whether the changes were necessary or not. Customer and expert reviews from secondary
sources were then used to understand which of those changes benefitted customers and what
the customers felt about those changes. Customer reviews and information regarding
customer perception of Honda Activa 3G were collected from Envision Honda, the Honda retail
outlet in Lucknow. Also, information regarding products and improvements introduced by
major competitors was analysed and compared with the changes made by Honda Activa. This
was done to understand whether Honda Activa leads the market or follows the market.
INTRODUCTION
About the Company Honda Motorcycle & Scooter India Private Limited (HMSI)
(Honda, 2015)
Honda is the largest manufacturer of two wheelers in the world, recognized the world over as
the symbol of Honda two wheelers, the Wings.
Corporate Philosophy:
HMSI operates on a principle, which is followed worldwide by all Honda companies.
Mission:
Maintaining a global viewpoint, Honda is dedicated to supplying products of the highest quality,
yet at a reasonable price for worldwide customer satisfaction.
Vision:
Respect for the individual: Honda recognizes and respects individual differences. The
respect for individual stems from the following three points:
o Initiative
o Equality
o Trust
The Three Joys (buying, selling and creating): In line with Honda's Philosophy, HMSI
conducts all its daily activities in pursuit of the following joys:
o The joy of buying high quality products.
o The joy of selling high quality products
o The joy of manufacturing high quality products
Brand Philosophy:
"The Power of Dreams" as a way of thinking guides and inspires Honda to move forward. The
strength of the company comes from this philosophybased on the visionary principles of the
founder, Soichiro Honda.
In 1999 Honda entered India arrived as Honda Motorcycle and Scooter India Pvt. Ltd. (HMSI),
a 100% subsidiary of Honda Motor Company Ltd., Japan. Since its establishment in 1999 at
Manesar, District Gurgaon, Haryana, Honda has lived up to its reputation of offering the
highest quality at the most reasonable price. Despite being one of the youngest players in the
Indian two-wheelers market, Honda has become the largest two wheeler manufacturer as well
as the second largest two-wheelers company in India. Expanding to full operations , Honda
production capacity has jumped 30% year on year to 2.8 million per annum in FY 12- 13.
PRODUCT PORTFOLIO
Product Family Two wheelers
Product class Motorcycle, scooter, superbikes
Product Lines 110cc, 125cc, 150-160cc, 250cc etc.
Products Activa 3G, Activa 125 Aviator, Dream Yuga etc.
SKUs(based on colours) Black, red, majestic grey etc.
LIVO
CD110 DREAM
DREAM YUGA
110CC
DREAM NEO
125CC
Black
Geny Gray Metallic
Maple Brown Metallic
Imperial Red Metallic
CBF STUNNER
CB TRIGGER
MOTORCYCLES
150160CC
CB UNICORN
160
CBR150R
250CC
125CC
Black
Meteor Green Metallic
Pearl Sunbeam White
Pearl Sienna Red
Vibrant Orange
Black & Candy Palm
Black &Green
Pearl Sunbea
White
Sports Red
CBR250R
ACTIVA 125
ACTIVA 3G
SCOOTERS
DIO
110CC
Sports Red
Black
Candy Palm Green
Candy Jazz Blue
AVIATOR
TWO
WHEELERS
ACTIVA I
650CC
CBR650F
CB 1000R
1000CC
Sports Black
Vibrant Blue
All Black
Sports Red
Heavy Grey Metallic
Black
Electric Yellow Metallic
Sports Red
Sports Red
Pearl Sports Yellow
Candy Palm Green
Black
Black
Lusty Red Metallic
Trance Blue Metallic
Geny Gray Metallic
Pearl Amazing White
CBR 1000RR
SUPERBIKES
Majestic Grey
Black With Red Stripes
Black With Violet Stripes
CB TWISTER
CB SHINE
1200CC
VFR 1200F
Red
1300CC
VT 1300CX
Black
1800CC
GOLDWING
2001
2002
2007
2008
2009
2014
Source: http://www.honda2wheelersindia.com/media-center/awards/
Recently in August 2015, has set a new record with Activa becoming the first scooter in India
to achieve a phenomenal 1 crore unit sales landmark.
Honda Activa is the flagship model of HMSI. They entered into the India market after their
separation with Hero Motorcorp in 2000 with Activa. Apart from the base model, 2 more
models ACTIVA 125 & ACTIVA I have also been launched in the Indian market
Today, every second scooter customer in India rides an Activa! (Honda, 2015)
Core Benefit
Transportation
Basic Product
Good Braking
system
Lighting
Gearless
Transmission
Underseat
luggage space
Expected
Product
Augmented
Product
Comfortable
and smooth
ride
High mileage
Easy to handle
Good aftersales service
(Kotler, 2013)
2015- Activa 3G
Advantages
Customer Reviews
Engine
bhp)
Mechanical Makeover
Highly appreciated by
users
Highly appreciated by
Braking
in congested spaces
Appreciated
Comfort& Safety)
Cosmetic Makeover
Increased Underseat Storage
Capacity to 18L
(Added Comfort)
Feature)
Better Illumination
Indifferent
style
Clear Winkers
Indifferent
Indifferent
10
Grab Bar
Bag Hook
Indifferent
Appreciated by users
11
The only difference between Activa and Pleasure was in their target groups. Honda Activa
positioned itself as a Unisex Scooter whereas Pleasure prime focus was on women
category.
In order to clearly differentiate itself more, Honda launched New Activa with some major
changes like new engine, better fuel efficiency & CBS (first time launch in India).
All the above changes provided Honda Activa with clear advantage over its competitors.
Honda Activa moved itself from 100cc category to 110cc category where it had no rivals and
this led to considerable increase in their market share.
Advantages
Better Fuel Efficieny
Customer Reviews
Activa feels much
livelier and yet smoother
Mechanical Makeover
Nickel Coated Spark Plugs
(First in Scooter Segment)
Improved Combustion
Crankcase offset
reported an increase of
Reduced Friction in the Engine
Increased Efficiency
Cosmetic Makeover
HET Emblem over Left Hand
Side Engine Cowl
Indifferent
12
COMPETITORS - TVS Wego, TVS Jupiter (was expected in few months), Hero Maestro
ANALYSIS
-
In order to differentiate itself and cater to mileage obsessive segment, Honda launched
Activa with their patented technology which claimed to increase the fuel mileage. With
this launch, Company claimed more mileage than existing competitors.
Yes, Honda HET did provide a clear competitive advantage over Competitors. Mileage
obsessive customers truly liked the product & it got positive feedback from the experts as
well.
Upgrades
Advantages
Customer Reviews
Cosmetic Makeover
Front fascia has been
attractive
vents
Handlebar mounted
Easy to differentiate
minor updates
Elegant Tail Lamp and clear
winkers
3D HONDA emblem
13
HONDA 3D EMBLEM
14
COMPETITORS Hero Maestro, TVS Jupiter, TVS Wego, Suzuki Lets, Yamaha
Fascino, Mahindra Gusto
ANALYSIS
With bombardment of Scooters in the market, Honda has changed its flagship models
design. Honda have tried to make it more stylish. Honda Activa has got a cosmetic
makeover in order to entice customers who are looking for style along with performance. It
retains its elegant and simple design but few changes like newly designed taillight, larger
faux vents helps it to distinguish itself from competitors. 3D Honda Emblem which earlier
was a part of premium Honda Motorcyles has also been added to enhance style and
premiumness of the vehicle.
Though the move from Honda seemed logically as they wanted to make their product
superior in terms of style, nothing much can be said about the effect of it on sales numbers.
Honda has got thumbs up from customer and industry expert for new looks.
15
REFERENCES
(2009, March 28). Retrieved from Mouthshut: http://www.mouthshut.com/bikes/HondaActiva-reviews-925034646
(2013, Feburary 14). Retrieved from Overdrive: http://overdrive.in/reviews/2013-hondaactiva-het-in-india-road-test/
AutoCar. (2009, September 30). Retrieved from AutoCar India :
http://www.autocarindia.com/auto-reviews/honda-activa-269167.aspx
BikePortal. (2015, October 21). Retrieved from
http://bikeportal.in/newbikes/honda/activa/reviews/
HMSI. (2009, March 27). Joy ON & ON Honda unveils the New refreshing Activa.
Retrieved from HMSI: http://www.honda2wheelersindia.com/joy-on-on-hondaunveils-the-new-refreshing-activa/
HMSI. (2015, October 21). Retrieved from HMSI:
http://www.honda2wheelersindia.com/activa3g/
Honda. (2015). Honda About Us. Retrieved from Honda Power of Dreams:
http://www.honda2wheelersindia.com/about-us/philosophy/
Honda. (2015, August 18). Honda Activa crosses One Crore unit sales landmark. Retrieved
from Honda the power of dreams: http://www.honda2wheelersindia.com/hondaactiva-crosses-one-crore-unit-sales-landmark/
Kotler, P. (2013). Marketing Management. Pearson.
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