Keywords: honda marketing research,
According to Kotler & Keller (2006), Good marketing is not any accident, but a result of careful planning and execution. He also provides, "Marketing routines are continually being refined and reformed virtually in all business to raise the potential for successes"
Therefore, to have the ability to critically measure the marketing strategy of the company it is first and foremost very important to comprehend the look process, core principles, philosophies, goals, organisational strategy, business surroundings and the marketing targets of the business.
For this assignment the marketing strategy of Honda Electric motor Co. Ltd has been considered.
Honda Motor unit Co. Ltd (Honda) is a Japanese company and the world's most significant engine company and market head in motorcycles. Honda in addition has been positioned as the 5th greatest automobiles maker of the world.
Since its base in 1948, Honda has retained a strong reputation of innovations you start with the innovation of a motor engine attached to a bicycle which later became the street bike and the technology of green technologies for cars. The last mentioned was known as as the "Greenest Automaker" by the Union of Concerned Scientists (UCS) for the fifth time due to the low degrees of smog and greenhouse gas emissions made by its autos.
Honda has market share of about 10. 2 percent in USA. It is also considered as a major technological pressure in the street motorcycle and automobile market sectors in Asia, Europe and THE UNITED STATES. In 2006, Honda has also launched the sales of HondaJet Developments Light Plane aircrafts.
Information is required at different phases for analysing the market, the effectiveness of the business, for setting a goal and in the look of any strategy.
While getting ready a marketing plan, inner information about the firm capabilities, financial position, performance in terms of sales, expenses, production capacity, inventories, circulation & delivery, turn over, cash moves and other financial status are very necessary to know where company stands. These details is generally shown as a Situational examination.
Since a business is met to use in a worldwide environment it is affected by several exterior factors; social, technological, economic, environmental, political and legal factors. It is therefore very crucial to accumulate and analyse external information about the business enterprise environment while getting ready a marketing plan. These details enables the company to understand the opportunities and threat within the market. External information are analysed and provided as a STEEPLE research in a online marketing strategy.
Honda has been constantly reporting its financial information in its total annual business studies. The reporting of the financial data for each and every business segment in an exceedingly systematic way allows the business to follow pattern of the marketplace and also allows customers to differentiate Honda with respect to other manufacturers (refer twelve-monthly record 2010, pg 37 to 70). By so doing, Honda helps bring about an moral practice based on transparency and this brings more credibility to the firm. Honda also uses this information to create new goals.
Use of market information by Honda to evaluate the opportunities and snacks and to establish new targets
Using exterior information, Honda has been examining the market risks and has arranged new focuses on.
Market hazards and snacks were the following:
- Loss of consumer self-confidence on the market due to ongoing slowdown, recession, increasing costs of fuel costs, change in customer tastes and financial crisis.
- Prices of cars, motorcycles and power products are highly volatile scheduled changes in tariffs, import restrictions and other taxes, scarcity of certain products and high material price.
- Honda's operations at the mercy of money fluctuations. Honda purchases materials and markets its products to overseas countries. Therefore money fluctuations may have an impact on its costs policies
- Honda's hedging of currency and interest rate risk exposes Honda to other risks
- The automobile, street motorcycle and electricity product companies are subject to intensive environmental and other governmental restrictions regarding climate change.
- Honda is reliant on the protection and preservation of its intellectual property. Honda group has a huge variety of patents associated with product manufacturing which includes been valued through the growth of the business. In terms of breach of the intellectual property protection under the law by other stakeholders, Honda's businesses would be adversely affected.
- Honda has been using the internal and external information to devise its marketing strategy and to established new targets predicated on the inner and external forces.
- Create value product through research and development
- Enhancing creation efficiency
- Expand products and enhance sales efficiency
- Upgrade product quality to increase customer demand
- Development of safer technology
- Development of greener technology for environment protection
- Continuing to improve Honda's Community Reputation and Communication with the Community
The organisational strategy of Honda can be differentiated and mentioned at five strategic levels:
Honda helps bring about a school of thought of customer support by putting the customer at the centre of most its strategies. This is deduced from its Objective Declaration, which is: "Maintaining a global viewpoint, we focus on offering products of the best quality, yet at a reasonable price for the worldwide customer satisfaction. " Honda has included development of higher quality product with safer technology in its marketing strategy.
Every business aspires at broadening its business to better heights attaining higher income and gaining competitive advantage over rival organizations. Honda has efficiently launched new segments for electricity products and other financial business. It has additionally included the strategy of growing its products in its online marketing strategy.
Honda's most successful business strategy has been its participation in research and development (R&D). Regardless of the effect of some exterior factors such as U. S. D depreciation, essential oil price raising, and politics recessions, Honda has taken care of its involvement in the R&D that gain people in the future through leading-edge technology in the development of economical automobiles.
Honda worldwide operation is split into 6 administrative areas. The procedure of the organizational units is dependant on the fundamental corporate philosophy of "Respect for the Individual". Honda pushes folks at local management and sales procedure by placing higher rely upon them and by relating them into the forward looking plan for every single region. Honda has also integrated the enlargement of cultural reputation in its online marketing strategy.
The specific strategy of Honda is also linked to client satisfaction. Honda's individual strategy is expressed through its philosophy - "The Three Delight", The enjoyment of buying, the pleasure of selling and the delight of producing. Through its specific strategy Honda and its own associates try their best to exceed client satisfaction. This has been integrated in terms of boosting product quality to surpass customer satisfaction and enhancing interpersonal reputation in its online marketing strategy.
It is vital to comprehend the global business conditions to have the ability to incorporate tactical decisions in the marketing planning. In such a section a STEEPLE research has been completed to observe how Honda has included the forces from external environments in its marking planning.
Loss of consumer self confidence on the market due to continuing slowdown, recession, growing costs of fuel costs, change in customer preferences and financial meltdown has compelled Honda to unveiling a new financial segment to aid its customers and other business segment.
In this modern age, where technology is changing extremely fast, manufacturers contain the obligation to keep rate with the latest technology to be in the marketplace. To be competitive, manufacturer must look for impressive technologies that would cost less in the future. Because of the increasing costs of fuel, the traditional vehicles were forget about competitive. It has pushed Honda to purchase R&D and also to produce car with new renewable technologies.
The world has incurred an economic slowdown due to the U. S financial meltdown. This had significantly impacted on the sales of automobiles industries. The downturn and the surge in fuel prices induced a decrease in the demand for cars. This has also pressed Honda to think on growing small and more economical fuel ingestion vehicles. Honda was also damaged by money fluctuations as it purchases materials and provides its products to foreign countries. It has also press Honda to develop other financial sectors that would sustain the currency damage.
With this growing concern on weather change the global community has made an charm to the sectors for minimizing CO2 emission and poisonous wastes. Regarding to Kassaye (2001), inexperienced marketing is recognized as one of the major developments in modern business. Environmental and social issues have become significant strategic concerns for any business (Fellman, 1999). Honda has very successfully included this demand in its marketing planning by starting itself in the development of greener technologies like low emission vehicles, hybrids and gas cell vehicles.
One of the key legal obstacles in the sales of automobiles is the taxation procedures with regard to importation. The price of an automobile may increase or triple due to the imposition of governmental taxes which varies from 100-200%. In addition, regulations regarding vehicle emission levels, gas economy, noise, safe practices, noxious substances, contaminants level from creation plants have become more restrictive and the price for managing and mitigating the air pollution is very high.
On the other side, the Government of several countries subsidies taxation charges on low emission and inexperienced technologies. Integrating the development of low emission and inexperienced technologies with its marketing planning will definitely give Honda a competitive advantage.
Another important exterior force is your competition available environment. The Porter's Five Makes model is a good construction to analyse the business enterprise environment with regard to competition.
This is defined as the living of close replacement products which could influence customer to switch to alternatives in response to price boosts. Available environment fashionable designs are being copied very easily. Honda should make an effort to keep its quality specifications at an acceptable price.
If new opponents get into the marketplace, the profit is lowered. Other barriers are laws that avoid the entrance of foreign companies like in the us where the federal government has promulgated regulations to protect local companies. Honda must review its pricing policies to be competitive or move toward ground breaking solutions.
Competitor rivalry is a very important aspect to be looked at available of automobiles. Honda must compete fiercely using its three main competitors: Toyota Motors Corp. , Ford Engine Co. and Standard Motor. To keep a leading border Honda must keep abreast the latest technology, which has pressed it in research and development.
For an organization to exist it has to create good relations with its customers. To keep its credibility and brand commitment Honda was required to integrate the idea of enhancing cultural reputation and communication within its marketing plan.
Honda expenses its material from global suppliers which deals with other automobile manufacturer. To be capable of geting competitive price, Honda were required to give a constant source of demand and had to take care of it suppliers within an ethical manner and this integrate the concept of "Respect for the Individual" in its marketing plan.
To keep speed with the quickly changing technologies in the IT sector, Honda has embraced some broad strategies in the implementation of e-business facilities. The setting up of an online site with the present day way of getting together with the earth has definitely helped the company in its marketing strategies. It has eliminated geographical boundaries, and has provided Honda with opportunities to attain new market segments. Through its website the business offers a live platform 7 days a week over a day.
Honda publishes a big amount of useful home elevators its website. This allows people to become more aware of the business profiles, company background, company philosophies, quest and vision claims, company structure, company goals and goals and other important financial data that help in building the firm credibility.
Honda uses its website to create its annual article and also to promote its products. The internet provides a good platform for contrast of similar products. Since Honda his very rigorous in developing quality products at average cost. The e-business strategies give a definite advantage to reach its marketplace.
"Devise a new product or service for the car manufacturer and create a marketing strategy for this product or service. Alternatively, develop a marketing strategy for a preexisting car in market with which you are familiar. Your strategy will include:
- segmentation of the market
- selection of goal market
- differentiation and setting of the offering in the customers mind
- marketing objectives
- a marketing blend for the new product or service
- an sign of the expenses of the marketing strategy and when the company should expect a go back on the investment. "
Honda has been working under the essential principles of "Value for the average person" and "The Tree Joys", expressed as "The Happiness of shopping for", "The Delight of Offering" and "The Pleasure of fabricating". Honda has gained a strong reputation in terms of product quality and impressive solutions towards greener technologies.
Honda has recently a head start on research and development of renewable technology using its fuel motors using the cross, natural gas, gasoline cell, bio-diesel and ethanol systems. Introducing something in this section will be as competing with oneself.
For this part of the task, Honda will be introducing a fresh service of traveling school. But not traditional driving school which instructs the scholar only the basic techniques of generating. This driving school will aim at promoting eco-driving techniques. This service will link with its basic rule and would be expressed as the" Fourth Joy", "The Enjoyment of Driving".
The service to be offer to the client of the travelling college would be of a professional quality with a well structured repository for the customers. The driving college will purpose at teaching customers eco-driving techniques, knowledge about the efficiency of inexperienced engine motor and safe driving a vehicle techniques. The driving school will assist the customer till they obtain their operating license.
However, the main objective of the service is always to promote existing green products, green cars that Honda has recently launched on the market and to get nearer to the customer to better understand their needs, also to inspire them with the philosophies and rules with which automobiles are being created at Honda. As every business, the service is likely to create a marginal income to maintain itself.
It is vital to understand the market place and the client needs that a fresh service is to be offered.
Since Honda was already create in countries like Japan, THE UNITED STATES, Europe, Asia and other regions, the driving university service may be created in these countries because of the existing sales models and infrastructure. A driving a car university will be best found in places which are often reachable like commercial areas.
The time to move a driving permit will depend on the countries legal plans. Normally, people are allowed to start out the auto-driving lessons at 16 yrs. old. But for most of the Parts of asia it is at 18 years of age. The driving university encourage both male and female customers as both form area of the working class and have the same need to learn driving.
There is an over-all belief that individuals who want to learn driving a car will maintain need of an automobile soon. Nowadays, most people which may have recently joined a jobs aspire at buying a car it is becoming way of living. However, folks have are more selective in conditions of quality of services. The driving a car school should target at offering quality services.
People are drawn by the most advanced technology. Understanding that a driving university is offering generating lessons in the newest released car, it could certainly entice people.
The collection of a marketplace is mainly predicated on the principle target for introducing the service. This driving a vehicle school strategy has been presented to market the green autos developed by Honda and to sustain area of the overheads of the business in the turmoil period.
The goal group will create of folks who are required to learn and get a traveling license. The age group will be of 18 to 45 years. This age group has been decided on as they form almost all of the working category people that desire to learn to drive and buy a car. For folks at age 18 there exists a market that would be proportional to the population growth.
The service will be launched in two locations as a pilot job. The two specific regions are THE UNITED STATES and Europe. THE UNITED STATES has been chosen as it symbolizes its biggest market and Europe as it is the market Honda is facing difficulties.
Since the marketplace growth will be following a population growth, the market attractiveness is high. From market examination it has been observed that the price of driving school lessons are receiving higher and higher because of the growing price of petrol, insurances and vehicle parts. There also exists a supply distance for which the customer doesn't have other alternatives and are appreciated to pay the high cost. Therefore, the market attractiveness is very high because of this particular service.
The driving institution services in Mauritius and Parts of asia are mostly provided by specific instructors. However, in countries like European countries and North America, along with individual instructors, small company units also provide the travelling lessons.
Since the marketplace attractiveness is high and there's a growing demand, Honda would be able to introduce the market with much decrease and the last mentioned already has the required infrastructure and resources.
To be able to attract the clients, there should be something value added given.
The following offer has been considered:
- Eco-driving techniques
- Lessons on efficiency of green engines
- Driving the latest released car
- Driving trainers being highly specialized people
- Price reduction with respect to average market price
- Selection options for car models that the customer wishes to drive
- Benefit insurance decrease facilities
- More personalize service
- Flexibility in terms of time
- A qualification of completion for eco-driving techniques
The marketing targets would be as follows:
- To promote the viewpoint of "The Enjoyment of Travelling" and the idea of eco-driving
- To promote safe driving a vehicle techniques
- To promote new released inexperienced autos and create a strong awareness of the benefits and efficiencies of renewable engines
- To set up a wide brand acceptance and get new market shares
Marketing strategies should be devised for specific goal, which requires careful planning. The launching of the eco-driving college is mainly for the campaign of the inexperienced cars and the near future developments of Honda. The prospective market segment consisting of the folks who require generating lessons has been chosen as this segment could be more wanting to buy a car.
It is a mental health behavior that folks will selected things they have been using and that they already have understanding of the product and its efficiencies. The first car a person drives would be the best car for her or him, specially, if the individual has driven a relatively recent car.
The service is a new concept. It really is appreciated by the strong brand reputation of Honda. It stimulates the philosophy of a service with the "finest quality at an acceptable price". Furthermore, it can be an eco-friendly initiative towards the surroundings which many people wish to contribute. On conclusion of the driving a car program, customers are rewarded with a qualification in eco-driving and gratitude of green machines.
The rates strategy is very tactical. The main aim of providing this service is to promote the inexperienced vehicles that contain been produced by Honda. Instead of extra cash in big advertising functions like planning exclusive graphic designs, bill table, organizing car discussion boards etc, area of the money would be use to financing the marginal costs of the traveling school. Bills for the traveling school will be minimal as the same building infrastructure would be utilized. Recent autos developed for showroom and test drives would be utilized. The registration taxes or maintenance costs can be viewed as marginal when compared with the automobile used for test drive. Since Honda has its own financial and insurance business, the price tag on insurance would participate the casual business with no additional expense. The driving instructors would be already trained specialized staffs of Honda. With some basic trained in customer relationship, these property would be used. An additional braking system should be installed to the institution driving automobiles for protection purposes and this can be done by Honda itself. However, for penetrating the marketplace the price would be reduced by 25% of the average costs. This is possible by considering all the existing resources of Honda. Then your price may be assorted for people who want to learn driving in some luxury cars or higher levels vehicles, but will keep up with the price significantly less than the average selling price.
The place for picking right up the clients would be at the business enterprise showrooms. This will likely enable customers to visit the new produces and be motivated by "just how of doing things" at Honda. The driving a motor vehicle lessons would be conducted on the public streets and major parking areas as utilized by the individual traveling schools. This requires no additional costs except for the road registration taxes.
Promotion for the eco-driving school would be completed through free internet marketing facilities like facebook. com. This might reach the selected target market of age group 18-45 as most of the students and employees are connected through this global network.
Advertisement would also be conducted on radio and through automobile magazines. Because the service might not cater for a major intake of customers at the same time. Quiz competitions could be completed on Honda Green Technology to choose the customers for batch intakes. This will trigger the interest of the public towards Honda inexperienced technologies.
Since Honda has been long in the sales business. It has recently trained staffs for customer care and pr. Some training may be needed for the travelling teachers, and these could be carried out in-house itself.
Honda already has established operations in quality management system for handling customer reservations, planning of quotations, checking vehicle deliveries, taxation, pay rolls and payment system. All these existing IT facilities could be used. Honda could also create a online business unit for scheduling and payment of the travelling lessons through the internet.
On conclusion of the traveling program, customers would be rewarded with a qualification in eco-driving and gratitude of green engines. That is something tangible that to add value to the type of training received at Honda.
- Brand recognition
- Competitive costs strategy
- Available infrastructure and automobiles
- Available human competencies
- Alliance with eco-diesel gasoline companies (competitive price)
- Unknown market for making profits
- Entrance strategy into new market
- Rising demand (attractive market)
- Government subsidies on eco-automobiles and extra parts
- Promoting Honda products at zero costs
- Legal compliances and patents
- Potential followers
Marketing strategies should be devised for specific goal, which requires
As talked about in the pricing strategy above, the establishing of the new service for eco-driving university can be applied at little investment. If we consider the money invested in advertising activities which sometimes will not reach the right concentrate on, then the minimal cost of this service could be catered under the advertising costs. The service of eco-driving university would be "something at no costs" to Honda as it would be carrying it out of advertising campaigns in a more effective manner.
Moreover, this service will build better individuals relations with the general public, and this essential requirement could be utilized to make a database for customer appeal and expectation analysis for future innovations.
RDI Managing Marketing Management Resources Course (2010)
RDI Handling Change in Organisations Resources Course Materials (2009)
Daft, R (2008) New Age of Management, 2nd Model, Thomson South-Western
Fellman, M. W (1999), Cause marketing takes a strategic change, Marketing Information,
Kassaye, W. W. (2001), Green dilemma, Marketing Intellect & Planning, Vol. 19 No. 6
Kotler, P (2006) Marketing Management, 12th Model, Prentice Hall.
http://world. honda. com
Honda Annual Record 2010
Honda CSR Article 2007
Marketing Strategies - Honda "FCX" Clarity, Rohit Sharma