Name : Rajeshparan Rangaraj

Subject : MAN846 – Advanced Strategic Management

Assessment Item 5

Case: Honda in Europe

Answer the following questions:

1. Does adapting the promotion of its motor vehicles to suit each country’s
culture make sense for Honda?

2. Is it wise for Honda to market its products the same in every country?

3. Should Honda change its product mix from country to country?

4. Is the European market too competitive for Honda?

 Soichiro Honda
17 November 1906 – 5 August 1991

• Founded in 1946 as Honda Technology Institute

• Established as a public company on 24 September 1948

• HQ is in Minato, Tokyo – Japan

• Honda first complete motorbike – 1949 : D-Type (Dream)

• Honda first production automobile – 1963 : T360 Mini pick-up truck

Honda’s Financial Performance

2010 Chinese labor

strike happened in
Guangqi &
Dongfeng Honda.
Honda’s Resources
 Survey: Brandwatch & Qriously
Based on survey conducted by Brandwatch & Qriously, published on 1st February 2020, with
8,000 global survey responses and thousands of social posts :

• Respondents from Mexico cared more about ‘Personalization’ than those in other countries.

• Respondents from Malaysia and Singapore cared more about ‘Innovative products or services’ in
auto brands than those in other countries.

• Respondents from France cared more about ‘Sustainability’ than those in other countries.

• Respondents from the UK cared more about ‘Affordability’ than those in other countries.
 Survey: Brandwatch & Qriously
2020: Consumer Trends for the Auto Industry
1. Quality & Affordability
2. Renewables
3. The importance of friendly customer service
4. Self-driving cars for 2020
5. Sustainability of auto industry
 Survey: Brandwatch & Qriously
2020: Consumer Trends for the Auto Industry
1. Quality & Affordability
2. Renewables
3. The importance of friendly customer service
4. Self-driving cars for 2020
5. Sustainability of auto industry
 Survey: Brandwatch & Qriously
2020: Consumer Trends for the Auto Industry
1. Quality & Affordability
2. Renewables
3. The importance of friendly customer service
4. Self-driving cars for 2020
5. Sustainability of auto industry

Globally, friendly customer service was an important attribute, with 10% of people
choosing it as the most important attribute for an auto brand.
 Survey: Brandwatch & Qriously
2020: Consumer Trends for the Auto Industry
1. Quality & Affordability
2. Renewables
3. The importance of friendly customer service
4. Self-driving cars for 2020
5. Sustainability of auto industry
 Survey: Brandwatch & Qriously
2020: Consumer Trends for the Auto Industry
1. Quality & Affordability
2. Renewables
3. The importance of friendly customer service
4. Self-driving cars for 2020
5. Sustainability of auto industry
 Assessment Item 5: Honda in Europe
1. Does adapting the promotion of its motor vehicles to suit each country’s
culture make sense for Honda?

This is what lacking with Honda’s promotion strategy. Honda should do a market survey, base on
demographic. Study of a population based on factors such as age, race and sex. Demographic data
refers to socio-economic information expressed statistically, also including employment, education,
income, marriage rates and more factors. Demographics data will give hint more about a population's
characteristics for many purposes, including consumer trends for the automotive industry.

Honda spends very little time and money in promotion which is not good and not effective. Consumer
trends varies when comes to choosing a brand or vehicle.

Thus, Honda should take into consideration that culture difference plays a important role and promote
their product accordingly for every country and its culture.
 Assessment Item 5: Honda in Europe
2. Is it wise for Honda to market its products the same in every country?

It’s not a good move for Honda to have a uniform marketing strategy in every
country. Sometimes sensitivity within country’s culture should be taken into
consideration. Real example is, McDonald cannot promote alcohol in their menu like
in US, promote non-halal burgers like in China or Japan in some Asia countries. The
best solution is to perform market survey base on demographics and suit the
marketing / promotion strategy base on the survey outcome. By not being sensitive
with one country's culture, organization might lose customers and impacts their
profit.
 Assessment Item 5: Honda in Europe
3. Should Honda change its product mix from country to country?

Yes, and Honda already practicing mix product concept; 2 models in United Kingdom, 16
models in Germany, 11 models in Italy, and 9 models in France. Different cultures has
different needs therefore, some design changes, additional accessories or even color
options during certain festive season will tremendously help to increase the sales.
 Assessment Item 5: Honda in Europe
4. Is the European market too competitive for Honda?

Eliminating government policy from the scene, Honda still can compete in the European
market by fitting the culture differences between the continents in Europe. Start to do
a mass marketing to change the perception of Honda image as a low cost, less quality
and non-environmentally friendly vehicle. Merging the existing technology that Honda
has combined with market trend research will help Honda to be a top choice for
consumers in Europe.