Honda Today Group - 28

Honda had grown from a small manufacturer of engine-powered bicycles to become one of
the world’s largest engine manufacturers and the largest motorcycle producer. Honda’s
engineering excellence has won the company, and people within it, countless awards, a large
proportion of which were first place racing prizes for both motorcycles and cars. They
believed that the primary method of communicating Honda’s philosophy was through their
products.

At Honda, development teams were independent and focused organizational units, i.e., a team
of engineers was dedicated to the development of a new car model. Although the engineers
were affiliated with their different functions and each nurtured distinctive skill, their primary
allegiance was to develop the project. Also, Honda engineers believed that each new car
deserved a new engine and only through such coherence could they realize the vehicle’s true
character.

Large product leaders played a critical role in Honda’s major development programs.
Although, Honda did not believe strongly in organized market research, it insisted that its
engineers, especially LPL’s understand emerging trends and thereby combine technical
excellence with a passion for satisfying customer preferences. From the material of the
steering wheel to the sound of the engine, the goal was an overall coherence, balance, and
elegance that created a consistent “experience” for the customer. For Honda, coherence or
“integrity” in all components, subsystems, and the total automobile was viewed as the key to
success.

According to experts, the two major considerations influencing purchase decisions in the
micromini market were, the cars need to be practical and the cost should be crucial. Other
considerations were, vehicle safety, technical performance, and styling. With a 13% share,
Honda’s micromini car, The Today, was configured with a low body and low seats. The
product had been introduced in 1985, although it had been updated in early 1988.

The 1985 Honda Today was envisioned as an entry level car, particularly for young female
users who would then upgrade to Honda’s main models. The concept and design of the Today
was unusual for a micromini. In contrast with competitor models, it had a relatively low and
streamlined body configuration without compromising on its roominess.

In January 1988, Honda introduced a new version of the Today which exhibited updated
exterior styling and a new engine. But, one week after the introduction of the new Today, the
rumors of the government’s planned tax change circulated and two weeks later JAMA task
force was formed to study the impact the tax change would have on the micromini market
and to consider the changes in micromini specs that it would recommend to the MOT.