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ARUN BASSI

SUKRIT GUPTA
VIKALP GARG
AJIT PAL

FOUNDER Soichiro Honda with a view personal


mobility for every one!!

FOUNDED HONDA MOTORS IN 1948

Masahiro Takedagawa is President & CEO,

Honda Siel Cars India Ltd. and Head - South


West Asia, Honda Motor Co., Ltd.

Associated with Honda Motor Co. for over 25

years.

HONDA IN INDIA
INCORPORATED IN DEC,1995
JOINT VENTURE :HONDA MOTOR CO. LTD.

&
JAPAN AND SIEL LTD.
HONDA CITY INTRODUCED IN 1997

INVESTMENT MADE BY THE CO IN INDIA TILL

DATE IS Rs1620 CR.


Rs 1000 CR. IS PLANNED IN 2ND PLANT IN
RAJASTHAN.
MANUFACTURING CAPACITY 1LAC.
SALES & DISTN. 105 FACILITIES , 62 CITIES

Company Description
Automotive
Manufacturers Major
1. Automobiles
2. Motorcycles
3. Power Products
4. Financial Services

Honda is the Worlds Largest motorcycle manufacturer

but is most known for its automotive industry

CARS
Accord

CRV

Civic

GENERATORS
EU1000iA
1000 watts, 120V
EU2000iA Camo
2000 watts, 120V
EU6500iSA
6500 watts, 120/240V

PROMOTION
HONDA promotes its
products through;
Ads,billboards,tv,
Sponsoring sports events
Customer service
Environment friendly
automobiles

The 4 Types of International


Marketing
Global marketing
strategy
(same everywhere)

Global
tactics

Pure Global

Some tactics
adapted
locally

Global

Local marketing
strategies

(specific to each country or


region)

Mix of
global &
local tactics

Only local
tactics &
marketing
mix

Glocal

Pure Local

Bongrain : cheeses

Strengths
Diversification.
World leader (Bikes).
Quality and customer
satisfaction.
Competitiveness in
innovative .
Pioneer in engineering low
emissions internal
combustion and hybrid
technology.

Opportunities
Offering in a pickup type truck
would be profitable.
Continue progressing low
emission vehicles and alternative
power sources.

Weaknesses
Prices.
They do not have a strong
offering in a truck line.
Reputation for being
underpowered or pokey
econo-boxes.

Threats
Prices.
Technology.
New Markets.

Consumer Reports Top Automobile picks for 2006

Top Small Sedan


Top Family Sedan
Top Upscale Sedan
Luxury Sedan
SUV
Small SUV
Top Minivan
Top Pick-up Truck
Green Car
Fun to drive

Honda Civic
Honda Accord
Acura TL (Honda)
Infiniti M35 (Nissan)
Toyota Highlander
Hybrid
Subaru Forester
Honda Odyssey
Honda Ridgeline
Toyota Prius
Subaru Imprezza

Additionally, Honda was 2nd overall in vehicle reliability right behind Lexus

Marketing/Technology
The new ACE System

(Advanced Compatibility
Engineering)
5 star rating
Hybrid Engines
ASIMO
Jet Engines Manufacturing
Nattokinase

Research and
Development
Honda currently has individualized R&D facilities

in Japan for motorcycles, automobiles, and power


products, and a motorcycle R&D center in China
for its increasing market demand.
HRI (the Honda Research Institute) is located in
Japan, U.S., and Germany.
- Research focus on: robotics technology, automotive
safety, ultra lightweight products, and
fuel cell technology
- Deriving automotive fuel from plants.

Honda also has networked facilities in the UK,

Germany and Italy (to help focus on the European


market more independently)

Management Structure

President and
Representative Director
Takeo Fukui
Age: 62

Executive Vice-President

and Representative
Director
Satoshi Aoki
Age: 60

Promotion of Objective Management:


Staff composed of 22 personnel. Two director positions and one
auditor assigned annually outside the company.
Temporary directors are paid according to how well the Company
performs during their tenor.

Industry Trends
Trend of Companies performing well in foreign markets, but not

domestically.
GM: Dealing with Health care problems ($100B annually)

Sold GMAC Subsid.


Filed for bankruptcy

Ford: $1.6B decline in car sales from years ending 04 05


Sold Hertz rentl car business
Chrysler: Changes management around
Only U.S. manufacturer not in the red
Also filed for bankruptcy
Fiat had purchased some share in Chrysler
Volkswagen: high prices, low quality, plus labor force issues
Toyota and Honda are prospering well in U.S. market
Everyone looks to China for expansion

Pros and Cons


Pros:

Fuel/ cost efficient products and technology


Extensive R&D programs
Superior Technology
Moving towards differentiated product lines
One of the few currently profiting companies in its industry
Objective Management Structure
Continuous increase in automotive sales in North America,

particularly U.S., and in Europe as well.

Cons:

Fluctuation of Exchange rates, makes for inconsistent earnings


Japans Economy
Automotive industry very susceptible to interest rates
Toyota may be a better buy

Questions