INTRODUCTION

Background
Honda City is a subcompact car manufactured by the Japanese manufacturer Honda since 1981
for the Asian market.
Since 2002, the City is also known as the Honda Fit Aria. It is a subcompact sedan that uses
Honda's Global Small Car platform. The first Honda City was made in 1981. It was innovative
due to its tall seating arrangement, creating comparable legroom to a car many times its size.
Produced as a 3-door hatchback and 2-door cabriolet in many trim levels, it proved a popular car
in the Japanese market. Options for the City included a turbocharged engine (one of the few
Honda models to be turbocharged), and - unique to the City - a 50cc 'foldaway' scooter, designed
to fit in the City's small luggage area.

Problem Identification
Honda city is a major and popular brand of Honda since 1981. It has changed many molds and
designs.
Honda has a new strategy of repositioning its brand of Honda city with new model of 2009 it has
got global admiration. We are making research on the effectiveness of repositioning strategy that
how much Honda has achieved in repositioning its brand image and what are the impacts.

Research Purpose:
The main objective of this marketing research is to see that what repositioning is done by Honda
for Honda City 2009. And does it really perceived by the customers in the same manner. And the
other objective is to see whether it has affected the sales of the car in positive manner or not.

Objectives:
1. What repositioning of Honda City is done by Honda?
2. How this repositioning is perceived by customers and dealers?
3. Does this have negative or positive impact on sales?
4. Is Honda city 2009 a value for money car?

Research design:

Survey was conducted with a questionnaire having almost 20 questions.

Survey was conducted with dealers of Honda City.

Survey was done in the period of Two weeks.

Methodology:
The research is done on the repositioning strategy of new Honda city. Why Honda has adopted
new strategy and how effective is the new model and strategy in positioning the image of Honda
city brand in the mind of customers.
For the purpose of effective research we have adopted the survey technique while using the
questionnaire as a tool for collecting the valuable information we have used multiple questions
about the customers preference and their evaluation of the new product and the features
introduced.

Honda City
Honda City is engineered at its best to satisfy the requirements of next generation quality. It
offers an entirely dynamic style which is truly path-breaking. Its 1.5 L i-VTEC engine is fully
fuel efficient and delivers 118PS. You will enjoy each and every moment with its advanced and
sporty styling. Apart of its exclusive look, this car gives a decent mileage of 14-15 km/liter.
Honda City is equipped with a powerful and very effective air conditioning system with heater to
instantly transform the cabin into your comfort zone. The interior of this car is extremely
attractive and relaxing that gives an embracing feeling. Its rich and spacious interior features
advanced looking meter design, soothing color contrasts and aerodynamic appeal promises its
users with a spacious, comfortable and stylish lounge.

Data Presentation and Findings

We have surveyed 15 dealers from Lahore city dealing in Honda City. The main locations where

we conducted our survey were Jail Road, Thokar niaz baig, and Kalma chock.
This was the toughest job for us to find owners and dealers of new Honda city because the
chance for getting them was rare and we have to make our job done in the given time.
The questionnaire has been attached in annexure A.

Analysis and Interpretation of Questionnaire

The most selling car brand?

Out of 15 respondents 51% respondents shows that they want to buy the Toyota
brand cars only whereas only 35% purchase the Honda brand car. Whereas
remaining go for Suzuki or other car manufacturing brands.

Perception of people about Honda City

Chart Title
4
3
2
1

poor
0

Bad

Good

V.Good

Excellent

According to this question we find out that Honda city is perceived by the
customers as very good value for their money. It provides them with the features
which are most demanded by the customers.

Which feature is considered by customer while buying car?

1
2
3

According to this question analysis most of the customers prefer to buy cars having
low or economical price. After this they go for its economical factor which
includes its oil consumption and availability of spare parts.

Have you seen the advertisement of Honda City?

9
8
7
6
5
4
3
2
1
0
YES

NO

Most of our respondents indicated that they have not viewed the advertisement.
They got all the information through dealers and word of mouth.

Features of Honda city 2009

comfort
8% 9%
11%
10%
15%

12%

style
10%
12%

13%

performance
resale
economy
durability
safety&ecology
body colors
equipment

This question indicates that the best feature of new Honda City 2009 is its economical feature
followed by its resale value. According to our research the Toyota and Honda are the two brands
which have the high resale value if compared with Suzuki and other brands.

Which model of Honda city is more comfortable?

9
8
7
6
5
4
3
2
1
0
2008

2009

As per our survey the dealers and customers indicated that the new honda city is
considered more comfortable then the previous one because of its spacious interior

and relaxing seating capacity.

Is Honda city 2009 is more fuel efficient than

lasts model?

Chart Title
4

4
2

More of our respondents rate that the 2009 model is more fuel efficient then
the previous model, more then 50% of our sample either agree or strongly
agree with this statement.

Has 2009 model more capacity to bear accidental shock?

10
9
8
7
6
5
4
3
2
1
0
YES

NO

As honda has positioned its city 2009 model to be a strong car. This shows
that this repositioning has been accepted by the customers. And we can say
that honda has been successful in its goal of being positioned itself as a
strong car.

Do the spare parts of Honda city 09 more expensive then the City 08?

12
10
8
6
4
2
0
Yes

No

Most of the customers think that the spare parts of 2009 model are more
expensive than the previous model. This may hurt the economical aspect of
this car due to its high maintenance cost.Conclusions
As mentioned earlier the main purpose of our research was to find out what
is the perception of people about Honda City 2009 model. Honda has come
up with new positioning statement for the new model of Honda city Strong
yet Comfortable. Prior to this people had a perception about old model of
Honda city as an economical and comfortable car but not a strong one.
So after conducting the research we have concluded:

Honda has positioned its brand in a better and desired way

In Pakistan Honda City 2009 has taken the desired admiration.

People believe that Honda City 2009 is an economical car in terms of fuel
efficiency as compared to 2008 model but the spare parts of the 2009 model are
more expensive.

According to most of the people 2009 model has got a good design and
accessories along with charming colors and is a very comfortable car.

According to Most of the dealers and People 2009 model of Honda City is a much
stronger car as compare to 2008 model.

People have accepted the new positioning of Honda City 2009 Strong yet
Comfortable.

Limitations
Type of errors which we hope to find in our report

Random error:

Because we are not going to ask from whole population of Pakistan we use sample so we
cant get away from this error

Some people are not so much aware about the old or new models specifications so that
was also a difficult thing.

Systematic error
Processing error
To avoid this error we try to validate our data as much as possible.
Response bias
We try to make our questioner easy and we didnt ask any personal things so people can
easily answer our questions.

Recommendations

Honda city should make a strong advertisement campaign.

No doubt Honda city 2009 is a marvelous car in design and all the innovative
specifications but the plus points should be advertised effectively

Test drives should be given at all company showrooms

Customized and sporty ideas should be launched for young generation like
students

TV adds should be global as well as domestic for different global regions

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QUESTIONNARE
Showroom Name : __________________
Telephone # : ________________
Which is the most selling car in your show room?

Which feature is considered by customer while buying car.

a) Price
b) Economical
c) Design
d) Others (please specify) ___________________

What is the perception of people regarding Honda City? ( 1 = Poor , 5 = Excellent )

1

Do people like the new Aero Dynamic Shape of Honda City?

a) Yes
b) No

Do people consider this new model of Honda City more Comfortable than the last model?
a) Yes
b) No

Rate the features of Honda city 2009

Very good

Comfort
Style

Performance
Durability
Economy

Resale
Safety

& Ecology

Body

Colors
Equipment

very bad

Innovation features in new Honda city 2009

Ext good

Very good

Good

Bad Very bad

Design

Engine

Handling

Road grip
Exterior
Interior

Is Honda city 2009 is more fuel efficient than lasts model?

Which model of Honda city has more resale value

a) New model
b) Old model

Have you seen the advertisement of Honda city?

a) Yes
b) No

Which advertisement has efficiently positioned the brand image?

a) New
b) Old

a.
b.
c.
d.
e.

Strongly Agree
Agree
Not Sure
Disagree
Strongly Disagree

Ext bad

Has 2009 model more capacity to bear accidental shock?

a) Yes
b) No

Which design has the good suspension

a) 2008
b) 2009

Which of the above mentioned feature is more attractive to the customers?

a)
b)
c)
d)
e)

Price
Design
Economical
Strong
Brand name

Does customer perceive 2009 as a good value for their money

a) Yes
b) No

How people comment after having test drive of City 2009?

Which Model of Honda City is most demanded by customer?

a) Honda City 2008
b) Honda City 2009

Do the spare parts of Honda city 09 more expensive then the City 08?
a) Yes
b) No

What customers think about the price of Honda City 09?

a) High
b) Moderate
c) Low