本田技研工業株式会社

HONDA MOTOR CO., LTD.

 Group 3
P K MUHAMMEDH FAIEZ
ANN TERESA TOMY
ROBIN SHAJY

AMALA MEETHAL

SREELAKSHMI A S

SWATHI KRISHNA M R
Honda became one of the motorcycle market leader in

Japan and US in basically just 5 years

"Startegy is defined as " all the things

necessary for the successful

Functioning of an organisation
as Adaptative Mechanism"
-Richard T. Pascle
The Honda
effect
 CONTENT
Introduction Research and Development

US Motorcycle Market

Entry of Honda
Enterprise Strategy
Advertising Policy
Target Group
Distribution Policy


About Honda
World’s Largest manufacturer of motorcycles
World’s largest manufacturer of internal combustion engine
2nd Largest Japanese automotive manufacturer,
4th largest in the US
Sixth-largest in the world
Revenue-Increase ¥14.95 trillion (2022)
 US MOTORCYCLE MARKET BEFORE HONDA

Major shift in the 1960s: US motorcycle registrations increased drastically

Harely Davidson was the mian market player in the us motorcycle industry
US motorcycle industry attracted only few people ("the leather Jacket Stereotye)

In 1965,: Market Share loss and profitability declines

Market share of British motorcycles in the US dropped from 49 % to 9%

 ENTRY OF HONDA

In 1959, Honda established its subsidiaries in the US

by selling big motorcycles, mostly 250cc and above
Despite Honda’s success in the domestic market,
The US market was revealed to be a disaster
However, Honda took a surprising turn and
restructures its strategy by selling its signature
Honda 50cc.
Honda entered the U.S. market with this step-
through Honda 50cc motorcycle
ENTERPRISE STRATEGY

The Mission Statement of Honda is try to

maintain a global point of view, with the
dedication to supply the highest quality
products at a reasonable price for
worldwide customer satisfaction.
 Advertising Policy

In 1963 Honda begins its nicest people campaign.

"You meet the nicest people campaign" was successful.

The association of bikes with police and rowdies were

changed and medium-income leisure class consumers

become the users of supercubs.

 Target Group

Changing the stereotypes

Anyone can have a motorbike
Attracting new consumer group
through 50cc supercub

Middle-income group
Distribution Policy
Direct contact with dealers

Two tier distribution system

High bargaining power

compared to competitors

Showrooms across the country

 Research And Development
In 1960s Honda's R and D -staffed with 700

designers or Engineers while the competitors

has only 100 designers in R and D.

In 1962 Production per man- year 159 units.

Honda's net fixed asset investment was

$8170 per employee.

Region by Region of
Honda
In 1959 Honda established an
American subsidiary - American
Honda Motor Company.
Honda followed a policy of developing
the market region by region
They started on the West Coast
and moved eastward over a
period of four-five year.
 Volume Related Cost
Reductions

Low priced - Prices were set at Plants with capacity to

Compared to its levels designed to manufacture more
competitors ($1000- achieve market share than 30,000
1500) ,Honda is priced and to reduce it if motorcycles per
$250 necessary. month
TECHNOLOGY AND PRODUCTION

Honda had a superior competence in engine design

High market demand leads to starting new plants and
production facilities.
Honda invented a new design that has double the
horsepower of the competitor's engine.
Honda focused on a specialized production system.
They practiced a cost-efficient model through mass
production.
SUCCESS OF HONDA
Honda implemented a "Success against all odds" culture.
Honda became one of the motorcycle market leaders in Japan and the
USA in basically just 5 years.
By 1954 Honda had a market share of 15% of the Japanese motorcycle
market.
Honda went from having no presence at all in the US market in 1959 to
63% of the entire market in 1963.
It had the upper hand in building engines.
introduction of the Honda 50cc super cub was a full success, which led
to the success of larger bikes.
 Tata Motors
Toyota Motors
Hyundai
COMPETITIORS Skoda Auto
OF HONDA
Maruti Suzuki
Ford
Nissan Motors