EXECUTIVE SUMMARY\_}) Business Summary Honda Motor Co., Ltd., together with its subs! s, engages in the development, manufacture, cand distrib of motorcycles, automobiles, and power products primarily in North Ame Europe, and Asia, Its motorcycle line consists of business and mmuter models, as well as sports models, including trial and motor-cross racing; all terrain vehicles; personal watererafts; and multi utility vehicles. The company also produces various automobile products, includi passenger cars, minivans, multi-wagons, sport utility vehic! s, and n ears; and power products: comprising tillers, portable generators, general-purpose engines, grass cutters, outboard marine cengines, water pumps, snow throwers, power carriers, power spriyers, lawn mowers andl awn tractors, homesuse cogeneration units, thin film solar cells home use, and public and industrial uses, In addition, it sells spare parts and provides after sales services are through retail dealers, as well as involves in retail lending, leasing to customers, and other financial services, such as wholesale financing to dealers. The company was founded in 1946 and is based in Tokyo, Japan MARKETTING STRATEGIES OF HONDA,1, Introduction 2, Company Profile 3. Importance & Scope 4. Research Objectives 5. Hypothesis 6. Research Methodology 7. Data Analysis 8. Findings 9. Suggestions 10. Limitations 11. Bibliography 12. Annexure MARKETTING STRATEGIES OF HONDA,& INTRODUCTIONHonda has been the world's largest motorcycle manufacturer since 1959, as well as the world’s largest manufacturer of internal combustion engines measured by volume, producing more than 14 million internal combustion engines cach year. Honda surpassedNissan in 2001 to become second-largest Japanese automobile manufacturer. As of August 2008, Honda surpassed Chrysler as the fourth largest automobile manufacturer in the United States. Honda is the sixth largest automobile manufacturer in the world, Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand, Acura, in 1986. Aside from their core automobile and motorcycle businesses, Honda also manufactures garden equipment, marine engines, personal watercraft and power generators, amongst others. Since 1986, Honda has been involved with artificial intelligence/roboties research and released their ASIM Orobot in 2000, They have also ventured into aerospace with the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420 HondaJet, scheduled to be released in 2011. Honda spends about 5% of its revenues into R&D. MARKETTING STRATEGIES OF HONDA,& COMPANY PROFILEHistory of Honda From a young age, Honda's founder, iro Honda (EH SR—BB, Honcer Sdichird) had a great inicrest in automobiles. He worked as a mechanic at a Japanese tuning shop, Art Shokai, where he tuned cars and entered them in races, A self-taught engineer, he later worked on a piston design which he hoped to sell to Toyota. The first drafts of his design were rejected, and Soichiro ‘worked painstakingly to perfect the design, even going back to school and pawning his wite's Jewelry for collateral, Eventually, he won a contract with Toyota and built a factory to construct pistons for them, which was destroyed in an earthquake, Due to a gasoline shortage during World War 11, Honda was unable to use his car, and his novel idea of attaching a small -engine to his bicycle attracted much curiosity. He then established the Honda Technical Research Institute in Hamamatsu, Japan, to develop and produce small 2-cyele motorbike engines. Calling upon 18,000 bicycle shop owners across Japan to take part in revitalizing a nation tom apart by \war, Soichiro received enough capital to engineer his first motorcycle, the Honda Cub. This marked the beginning of Honda Motor Company, which would grow a short time later to be the World's largest manufacturer of motorcyeles by 1964, ‘The first produetion automobile from Honda was the T360 mini pick-up truck, which went an ssale in August 1963.) Powered by a small 356 ce straight-4 gasoline engine, it was classified MARKETTING STRATEGIES OF HONDA,\_J}) under the cheaper Kei car tax bracket.{"*"*" The first production car from Honda was the $500 sports car, which followed the T360 into production in October 1963. Its chain driven rear wheels point to Honda's motoreyele origins. Company Name Honda Motor Co., Ltd. Head Office 1-1, 2-chome, Minami-Aoyama, Minato-ku, Tokyo 107-8556, Japan Tel: +81-(0)3-3423-1111 Established September 24, 1948 President & CEO Takanobu Ito Capital ¥86 billion (as of March 31, 2010) Sales (Results of fiscal 2010) Consolidated: ¥8,579,174 milion Unconsolidated: ¥2,717,736 million MARKETTING STRATEGIES OF HONDA,\_}) Total number of employees Consolidated: 176,815 (as of March 31, 2010) Unconsolidated: 26,121 (as of March 31, 2010) Consolidated subsidiaries 390 subsidiaries (as of March 31, 2010) Chief Products Motorcycles, automobiles, power praducts Aoyama Building MARKETTING STRATEGIES OF HONDA,Wake Building CORPORATE PROFILE Honda Motor Co., Ltd. operates under the basic principles of "Respect for the Individual” and "The Three Joys" — commonly expressed as The Joy of Buying, The Joy of Selling and ‘The Joy of Creating. "Respect for the Individual” reflects our desire to respect the unique ‘character and ability of each individual person, trusting each other as equal partners in ‘order to do our best in every situation. Based on this, "The Three Joys” expresses our belief and desire that each person workin or coming into contact with our company, directly ‘or through or products, should share a sense of joy through that experience, In line with these basic principles, since its establishment in 1948, Honda has remained on the leading ‘edge by creating new value and providing products of the highest quality at a reasonable price, for worldwide customer satisfaction. In addition, the Company has conducted its activities with a commitment to protecting the environment and enhancing safety in a mobile society. MARKETTING STRATEGIES OF HONDA,\_/}) ‘The Company has grown to become the world's largest motorcycle manufacturer and one of the leading automakers. With a global network of 492* subsidiaries and affiliates accounted for under the equity method, Honda develaps, manufactures and markets a wide variety of products, ranging from small general-purpose engines and scooters to specialty sports cars, to earn the Company an outstanding reputation from customers worldwide. Indi. Honda Siel Cars India Ltd, (HSCI) was incorporated in December 1995 as a between Honda Motor Co. Ltd., Japan and Sie! Limited, a Siddharth Shriram Group company, a commitment to providing Honda’s latest passenger car models and technologies, to the vestment made by the company in India till date is Rs 1620 crores, Indian customers, The total in Greater Noida plant and Rs 784 crores in Tapukara plant MARKETTING STRATEGIES OF HONDA,HSCI’s first state-of-the-art manufacturing unit wa: up at Greater -green-field project is spread across 150 acres of land (over 6,00,000 sq. m.). The annual capacity of this facility is 100,000 units, The eompany's second manufacturing facility isin Tapuikara, Rajasthan, This facility is spread over 600 eres aind will have an ini production capacity of 60,000 units per annum, with an investment of about Rs 1,000 crore. The first phase of this facility was inaugurated in September 2008. The company’s product range includes Honda Jazz, Honda City, Honda Civic and Honda Accord which are produced at the Greater Noida facility with an indigenization level of 77%, 76%, 74% and 28% respectively, The CR-V is imported from Japan as Completely Built Units, Honda's models are strongly associated with advanced design and technology, apart from its established ‘qualities of durability, reliability and fucl-efficieicy. MARKETTING STRATEGIES OF HONDA,Striving to hecome a company that suciety wants (o exist by strengthening the core principles of Honda Looking back over the past fiscal year Last year brought positive signs of economic recovery, including increased consumer spending in Japan and the U.S. and expected economic expansion in Asia and developing walions, At the same-time, concerns about the economic downturn, credit crunch, and unemployment persisted in the U.S. and Europe. Moreover, regardless of regional differences, there was new movement lo drastically reduce greentiouse gas emissions, primarily COs, In these ways, 2009 showed that farther management effort. and environmental action were required in the near future, Under such circuihstances, Honda responded swiflly and specifically ta the nieeds of Society aind customers if MARKETTING STRATEGIES OF HONDA,\_}) each region, Through rescarch and development, we worked vigorously to produce advanced technologies for safety and environmental requirements, Through production, we addressed ‘changes in regional needs in a flexible manner, establishing a “mutually complementary” system ‘of manufacturing parts and finished vehicles in cach region. Through sales, we released products with new value by enhancing eco-responsible vehicles and widened the range of our product lineup. Asa result, over the last year alone, we delivered motoreycles, automobiles, and general- purpose products to a total of more than 23 million customers around the world ‘Striving to become 2 company that society wants to exist Due to global political and economic changes, the business environment surround. ing Honda remains uncertain amid growing social concern about environmental challenges. However, no matter how considerable these changes may be, Honda will win the trust of our customers and appeal to customers as before by creating technologies and products with new value that anticipate customer needs and social requirements, We believe this is the way for Honda to praceed, based on our founding principles. To achieve these goals, Honda will work to improve product qui ty, safety, and environmental performance as well as promoting researeh and development of next-generation mobility technologies such as fuel-cell electric vehictes and battery-powered EVs. Additionally, we will focus on Future product development to expand the market for hybrid vehicles, which are currently the most effective in reducing CO: emissions. And, we will continue our efforts to become a company that society wants to exist through global activities to minimize environ mental impact in all of our busi css activities including MARKETTING STRATEGIES OF HONDA,\_}) production, distribution, and sales, while promoting safe driving and engagement in other social activities, Strengthening our manufacturing system from the perspective of our customers and the environment ‘Customer needs vary depending on the region. To deliver products that satisfy customers in all regions, Honda established a manufacturing system that rapidly and flexibly responds to -customer requests at all production bases around the world. With this manufacturing system, we are striving to futher improve the quality of our products and mini ‘our environmental footprint during manufacturing, MARKETTING STRATEGIES OF HONDA,Thin-membrane solar cell panels at Dongfeng Honda (Wuhan, China) ‘Strengthening manufacturing capabilities and environmental measures on a global basis Based on its commitment to build products close to the customer, Honda has pursued local production from its early days. We first began overseas motorcycle production in Bel 1963 and became the first Japanese automaker to produce automobiles in the U.S. in 1982. By focusing on localization early on, even in the areas of development and sales, we have been able to respond to changes in product demand and supply more promptly and increase our quality and ‘cost competitiveness in each market, Moreover, we have been working on establishing a mutually complementary parts and vehicle manufacturing network among countries within a region so that we ean respond to changing demand in each region more effectively and flexibly. We have also centered on activities that improve quality at production bases around the world and that reduce environmental impacts during manufacturing and distribution, In 2009, we began ‘operations at the Ogawa plant in Japan with extremely high resource and energy efficiency, Meanwhile, we are promoting the installation of solar panels at our offices and plants. Through improved production systems that take into consideration regional characteristics and enhanced ‘environmental measures, we will flexibly and effectively provide high-quality peoduets in an ‘environmentally responsible way. MARKETTING STRATEGIES OF HONDA,Power products asseibly (France) MARKETTING STRATEGIES OF HONDA,Honda headquarters building in Japan Honda is headquartered in Minato, Tokyo, Japan. Their shares trade on the Takyo Stock. Exchange and the New York Stock Exchange, as well as exchanges in Osaka, Nagoya, Sapporo, Kyoto, Fukuoka, London, Paris and Switzerland. ‘The company has assembly piants around the globe. These plants are located in China, the United States, Pakistan, Canada, England, Japan, Belgium, Brazil, New Zealand, Indonesia, India, Thailand, Turkey and Peni. As of July 2010, 89 percent of Honda and Acura vehicles sald in the United States were built in North Ameriean plants, up from 82.2 percent a year earlier. ‘This shields profits from the yen's advance to a 15-year high against the dollar. Honda's Net Sales and Other Operating Revenue by Geographical Regions in 2007 MARKETTING STRATEGIES OF HONDA,\_I}) ‘Geographic Region ‘Total revenue (in millions of ¥) Japan 1,681,190 ‘North America 5,980,876 Europe 1,236,757 ‘Asia 1,283,154 ‘Others 905,163 American Honda Motor Company is based in Torrance, California. Honda Canada Inc. is headquartered in the Scarborough district of Toronto, Ontario, and is buil ng new corporate headquarters in Markham, Ontario, scheduled to relocate in 2008; their manufacturing division, Honda of Canada Manufacturing, is based in Alliston, Ontario, Honda has also created Joint ventures around the world, such as Honda Siel Cars and Hero Honda Motoreyeles in India, Guangzhou Honda and Dongfeng Honda in China, and Honda Atlas in Pakistan. Current market position With high fuel prices and a weak U.S. economy in June 2008, Honda reported a 1% sales eluding the Detroit Big Three and Toyota, have reported double-digit losses. Honda's sales were up almost 20 percent from the same month last year. The Civic and the Accord were in the top five list of sales, Analysts have attributed this to two main factors. MARKETTING STRATEGIES OF HONDA,\_}) First, Honda's product lineup consists of mostly small to midsize, highly fuel-efficient vehicles Secondly, over the last ten years, Honda has designed its factories to be flexible, in that they can be easily retooled to produce any Honda model that may be in-slemand at the moment. Nonetheless, Honda, Nissan, and Toyota, were still not immune to the global financial crisis of 2008, as these companies reduced their profitability forecasts. The economic crisis has been spreading to other important players in the vehicle related industries as well. In November 2009 the Nihon Keizai Shinbun reported that Honda Motor exports have fallen 64.1%. At the 2008 Beijing Auto Show, Honda presented the Li Nian ("coneept" or "idea") 5-door hatchback and announced that they were looking ta det clop an entry-level brand exclusively for the Chinese market similar to Toyota's Scion brand in the USA. The brand would be developed by a 50-50 joint-venture established in 2007 with Guangzhou Automobile Industry Group. Following the Japanese earthquake and tsunami in March 2011 Honda announced plans to halve production at its UK plants. The decision was made to put staff'at the Swindon plant ona 2 day week until the end of May as the manufacturer struggled to souree supplies from Japan. It's thought around 22,500 cars were produced during this period, MARKETTING STRATEGIES OF HONDA,PROMOTIONAL STRATEGIES OF HONDA Dream The Impossible! POWER OF DREAMS, HONDA. aon Eee Super Cub (2008) +» » MARKETTING STRATEGIES OF HONDA,\J the Super Cub made Honda what today. Ii 2008, 50 years and 60 million units later, the Super Cub still continuss to evolve. Engines (2008) +>» een Honda has announced "Engines," a new global advertisement aimed at increasing awareness of how Hondo's advanced engines ean help in preserving the environment. MARKETTING STRATEGIES OF HONDA,=a FEX (2007) + The global ad "FCX Concept" emphasizes Honda’s leadership in environmental performance through advanced technology. ae sky (2006) »> > MARKETTING STRATEGIES OF HONDA,"sky" signifies Honda's realization of a dream te bring mobility for everyone to the third dimension, the sky, with the introduction of the Hondalet. capi (2006) r+ ‘The symbolic use of the Honda green cap, wom by Honda Associates, expresses two messages = the fun that Honda employees enjoy through working at Honda and how that fn is embedded in every Honda automobile, motoreyele and power product. In the animated movie "cap/," a boy picks up a green cap - not just any cap, but a Honda green ‘cap - avid once he wears it, is ken to the world of Honda where he experiences the creativity that every Honda employee brings to the company - turning dreams such as ASIMO and Hondalet into reality, and making Honda one of the most innovative companies in the world, MARKETTING STRATEGIES OF HONDA,jet! (2005) ++» ‘The motif of Honda’s new Global Ad is the experimental HondaJet, which made its debut in July, 2005 at “Airventure,” a prominent aireraft event in the USA. HondaJet realizes a Honda founder's dream. ‘The movie “je” is set in a quiet airstrip, Two men in blue overalls ride a tattered Super Cub down a deserted hangar. Who could tell that these two, Richard Gritter and Dave West, were indeed the test pilots for the experimental Hondalet, as they flew off into the evening sky. MARKETTING STRATEGIES OF HONDA,7 meet | rum/ (2005) »» > Since development of the first ASIMO in 2000, ASIMO has grown in popularity around the ‘world, and has developed a global image of adorability and friendliness, The key aim in Honda’s new global branding advertisement jo maintain ASIMO’s global image, whilst communicating the new ASIMO prototype’s feature (ASIMO nuns!) with a touch of humor. In 60° movie “run”, the new ASIMO prototype and an elderly gentleman engage in a litle race dawn an airport's moving walkway. MARKETTING STRATEGIES OF HONDA,Hondadet (2005) »»» The motif for this year’s worldwide corporate advertising is the Hondalet. In 2003, a hundred years after the Wright Brothers made their pioneering Might; the HondaJet soared over North jlonda has again realized the power of reams, by adding. a new ‘Carolina on its maiden flight dimension to the pursuit of mobility. We want to share this significant achievement with the world, and with this in mind, came the motivation for this advertisement. MARKETTING STRATEGIES OF HONDA,Honda FCX (2003) >>> ‘The sound ofa grandfather clock keeps pace with the FCX as it drives around. In the TV commercial, the FCX is shown symbolizing the opening to a new era of mobility, In addition, a ‘corporate ad was placed on January 3, 2003 to-all major newspapers in Japan showcasing the theme of Honda's new technology. The TV commercial uses a visual background that reflects Honda's challenging history and expresses Honda’s spirit, “an ultimate clean air vehiele for all human beings”, The development of the fuel cell vehicle FCX, - has reinforced our belief in the power of dreams. MARKETTING STRATEGIES OF HONDA,GP 500th Victory (2001) >>» At the FIM Road Racing World Championship Grand Prix opening event held at the Suzuka nda achieved it's record setting 500th win. It has been 40 years sinee -circuit on April 8, 2001, first win there in 1961. With unwavering passion and the result of win upon win there has been no greater point of progress. In April 2000 all majar Japanese newspapers published illenge spirit as it’s theme. ‘corporate advertisements with the Honda motorcyele ¢! MARKETTING STRATEGIES OF HONDA,FI 200 Challenge (2000) >» Inthe Formulal World Championship 14th race event held on September 10, 2000, Fonda, set records in the F1 200 series. Since it’s first appearance in the German Grand Prix in 1964, Honda has continued to compete in the top intemational racing events around the world. For the Japan Grand Pris held at the Suzuka cireuit over October 2000, all major Japanese newspapers published corporate advertisements with Honda's F1 challenge history as it’s theme. MARKETTING STRATEGIES OF HONDA,Automobiles Eighth Generation Honda Civic (Asian Version) MARKETTING STRATEGIES OF HONDA,(WS) Honda's global lineup consists of the Fit, Civic, Accord, Insight, CR-V, and Odyssey. An carly proponent of developing vehicles to cater to different needs and markets worldwide, Honda's lineup varies by country and may feature vehicles exclusive to that region. A few examples are the latest Acura TL luxury sedan and the Ridgeline, Honda's first light-duty uni-body pickup truck. Both were engineered primarily in North America and are exclusively produced and sold there. ‘The Civie isa line of compact cars developed and manufactured by Honda. In North America, the Civie is the second-longest continuously running nameplate from a Japanese manufacturer; ‘only its perennial rival, the Toyoia Corolla, introduced in 1968, has been in production longer. The Civic, along the Accord'and Prelude, comprised Honda's vehicles sald in North ‘America until the 1990s, when the model lineup was expanded. Having gone through several generational changes, the Civic has become larger and more upmarket, and it currently slots ‘between the Fitand Accord, Honda increased global production in September 2008 w meet demand for small cars in the U.S. and emerging markets. The company is shuffling U.S. production to keep factories busy and ‘boost car output, while building fewer minivans and sport utility vehicles as Light trucksales fall. Honda produces Civic hybrid. a hybrid electric vehicle that competes with the Toyota Prius, and also produces the Insight and CR-Z.. MARKETTING STRATEGIES OF HONDA,Its first entrance into the pickup seymedit, the light duty Ridgeline, won Truck ofthe Year from Motor Trend magazine in 2006, Also in 2006. he redesigned Civie won Car of the. “Year from the magazine, giving Honda a rare double win of Motor Trend heinors. It is reported that Honda plans to increase hybrid sales in Japan to more than 20% of its total sales in fiscal year 201 1, from 14.8% in previous year. Five of United States Environmental Protection Agency's top ten most fuel-efficient cars from 1984 to 2010 comes from Honda, more than any other automakers. The five models are: 2000- 2006 Honda Insight (33 mpg.is/4.4 L/100 kr; 64 mpsligg Combined), 1986-1987 Honda Civie ‘Coupe HF (46 mpgus’5.1 L/100 km: $5 mpg.ap combined), 1994-1995 Honda Civie hatchback VX (43 impg.us/5.5 L/100 kin; 52 mipg.ny mpg combined), 2006-Honda Civie Hybrid (42 snpg usf5.6.L/100 km; 50 mpg.ne combined), and 2010- Honda Insight (41 mpgus/5.7 L/100 km; 49 mpitop combined). The ACEEE has also rated the Civic GX as the greenest car in America for seven consecutive yeurs. MARKETTING STRATEGIES OF HONDA,\_J}) Motorcycles Honda is the largest motorcycle manufacturer in Japan and has been since it started production in 1955, AL its peak in 1982, Honda manufactured almost 3 million motoreycles annually. By 2006 this figure had reduced to around 550,000 but was still higher than its three domestic competitors During the 1960s, when it was-a small manufacturer, Honda broke out of the Japanese motoreyele market and began exporting to the U.S, Taking Honda's story as an archetype of the smaller manufacturer entering a new market already occupied by highly dominant competitors, the story of their market entry, and their subsequent huge success in the U.S. and araund the World, has been the subject of some academic controversy. Competing explanations have been advanced to explain Honda's strategy and the reasons for their success. ‘The first of these explanations was put forward when, in 1975, Boston Consulting Group (BCG) was commissioned by the UK government to write a report explaining why and how the British motorcycle industry had been out-competed by its Japanese competitors. The report concluded that the Japanese firms, including Honda, had sought a very high scale of production (they had made a large number of motorbikes) in order to benefit from economies of scale and learning ‘curve effects. It blamed the decline of the British motorcycle industry on the failure of British managers 1 invest enough in their businesses (o profit from economies of scale und scope, MARKETTING STRATEGIES OF HONDA,2004 Honda Super Cub The second explanation was offered in 1984 by Richard Pascale, who had interviewed the Honda ‘executives respon: ‘ible for the firm's entry into the U.S. market. As opposed to the tightly focused strategy of low cost and high seale that BCG aceredited to Honda, Pascale found that story of “miscalculation, s and organizational endipity in other words, Honda’s success was duc to the adaptability and hard work of its n any long term strategy. For example, Honela’s initial plan on entering the U.S. \was to compete in large motoreyctes, around 300 ce. It was only when the team found that the scooters they were using to get themselves around their U.S. base of San Francisco attracted positive interest from consumers that they came up With the idea of selling the Super Cub, MARKETTIE 'S OF HONDA\_J}) The most recent school of thought on Honda's strategy was put forward by Gary Hamel and C: ies with Honda as an example, they K. Prahalad in 1989, Creating the concept ofcore compet argued that Honda's stiecest was due to its focus on leadership in the technology of internal ‘combustion engines. For example, the high power-to-weight ratio engines Honda produced for its racing bikes provided technology and expertise which was transferable into- mopeds. Honda's ‘entry into the U.S, motoreyele market during the 1960s is used asa case study for tenching introductory strategy at business schools worldwide. Motorsports Honda has been active in motorsports, like Motorcycle Grand Prix, Superbike racing and others, Automobile MARKETTING STRATEGIES OF HONDA,\_/}) Rubens Barrichello driving for Honda Honda entered Formula One as a constructor for the first time in the 1964 season at the German. Grand Prix with Ronnie Bucknum at the wheel. 1965 saw the addition of Richic Ginther to the team, who scored Honda's first point at the Belgian Grand Prix. and Honda's first win at the Mexican Grand Prix, 1967 saw their next win at the Italian Grand Prix with John Surtees as their driver. In 1968, Jo Schlesser was killed in a Honda RA302 at the Ereneh Grand Prix. This racing tragedy, coupled with their commercial difficulties selling automobiles in the United. States, prompted Honda to withdraw from all international motorsport that year. After a learning year in 1965, Honda-powered Brabhams dominated the 1966 French Eomula ‘Lwo championship in the hands of Juck Brabhamand Denny: Hulme. As there was no European ‘Championship that season, this was the top F2 championship that year. In the early 1980s Honda fetumed to F2, supplying engines to Ron Tauranac’s Ralt team, Tauranac had designed the Brabham ears for their earlier involvement. They were again extremely successful, Ina related ‘exercise, John Judd’s Engine Developments company produced a turbo "“Brabham-Honda" ‘engine for use in IndyCar racing, It won only one race, in 1988 for Bobby Rahal at Pocono. Honda returned to Forrmula One in 1983, initially with another Formula Two partner, the Spirit team, before switching abruptly 10 Williams in 1984, In the late 1980s and early 1990s, Honda powered cars won six consecutive Formula One Constructors ‘Championships. WilliamsE1 won the crown in L986 and 1987. Honda switched allegiance again in 1988. New partners Team MeLaren won the tie in JOSS, 1989, 1990 and 199], Honda withdrew from Formula One at the end of 1992, although the related Mugen-Hionds company MARKETTING STRATEGIES OF HONDA,maintained a presence up to the end of 1999, winning fouir races with Ligier and Jordan Grae Pris. Honda debuted in the CART IndyCar World Series as a works supplier in 1994, The engines were far from competitive at first, but after development, the company powered six consecutive drivers championships. In 2003, Honda transferred its effort to the rival IRL lndyCar Series. In 2004, Honda-powered cars overwhelmingly dominated the IndyCar Series, winning 14 of 16 IndyCar races, including the Indianapolis 500, and claimed the IndyCar Series Manufacturers’ ‘Champion: Drivers! Championship and Rookie of the Year titles, In 2006, Honda became the sole engine supplier for the IndyCar Series, including the Indianapolis $00, In the 2006 Indianapolis $00, for the first time in Indianapolis 500 history, the race was run withouta single ‘engine probiem. During 1998, Honda considered returning to Formula One with their own team. The project was aborted afier the death of its technical director, Harvey Posticthwaitc. Honda instead eame back 448 an official engine supplier to British American Racing (BAR) and Jordan Grand Prix, Honda bought a stake in the BAR team in 2004 before buying the team outright at the end of 2005, becoming a constructor for the first time since the 1960s, Honda won the 2006 Hungarian Grand. ‘Pix with driver Jenson Button, It was announced an $ December 2008, that Honda would be exiting Formula One with immediate effect due to the 2008 global économie crisis. ‘The team was sold to former team principal Ross Brawn, renamed Brawn GP and subsequently Mercedes Girt Honda became an official works team in the British Touring Car Championship in 2010, MARKETTING STRATEGIES OF HONDA,\J}) Motoreyeles Honda RC212V raced by Dani Pedrosa ‘Honda Racing Corporation (HRC) was formed in 1982. The company combines icipation in motorcycle races throughout the world with the development of high potential racing machines. Its racing activities are an important source for the ereation of leading edge technologies used in the development of Honda motoreyeles. HRC also contributes to the advancement of motareycle sports through a range of activities that include sales of production racing motorcycles, support for satellite tean and rider education programs, MARKETTING STRATEGIES OF HONDA,\_/}) Soichiro Honda, being a race driver himself, could not stay out of international motorsport. In 1959, Honda entered five moloreycles into the Isle of Man TT race. most prestigious motorcycle race in the world, While always having powerful engines, it took until 1961 for Honda to tune their chassis well enough to-allow Mike Hajlwood to claim their first Grand ‘Prix vietories in the 125 and 250 cc classes. Hailwood would later pick up their first Senior TT wins in 1966 and 1967. Honda's race bikes were known for their "sleek & stylish design” and 6-cylinder -exotic engine configurations, such as the S-cylinder, 22,000 rpm, 125 ce bike and t 250 cc and 297 cc bikes. In 1979, Honda returned to Grand Prix motorcycle racing with the monocogue- framed, four- ‘stroke NRSO0. The E1M rules limited engines to four cylinders, so the NRSO0 featured non- ‘circular, ‘race-track’, eylinders, each with 8 valves snd two connecting rods, in order to provide it seemed sufficient valve arca to compete with the dominant two-stroke racers. Unfortunat Honda tried to accomplish too much at one time and the experiment failed, For the 1982 season, Honda debuted their fi $00 ce Grand Pris World Championship with Freddie Spencer. Sinice then, Honda has become a dominant marque in motoreyele Grand Prix racing, winning a plethora of top level titles with two-stroke race bike, the NSS00 and in 1983, Honda won their first riders such as Mick Doghan and Valentine Resi . In motocross, Honda has chimed six motocross world championships. In the Work! Enduro. ‘Championship, Honda has captured éix titles, most recently with Stefan Merriman in 2003 and with Mika Ahola in 2007 and 2008 In observed trials, Honda has claimed three world championships with Belgian rider Eddy_ Lejeune. MARKETTING STRATEGIES OF HONDA,\J}) Marketing, Honda's official slogan is "The Power of Dreams". They have never used this slogan to sell their products, Mr, Honda's belief is that well built products will sell themselves. In 2003, Honda released its Cog advertisement in the UK and on the [pternet. To make the ad, the engincers at Honda constructed a Rube Goldberg Machine made entirely out of car parts from a Europe Domestic Market Honda Accord (upon which the USDM Actira TSX is based). To the chagrin of the engineers at Honda, all the parts were taken from two of only six hand- assembled pre-proshistion models af the Accord. The advertisement depicted a single cog which ‘sets off chain of events that ends with the Horida Accord moving and Gastison Keillor spe 2 the tagline, "Isn't it nice when things just... work?" It took 606 takes to get it perfect In 2004, they produced the Grrr advert, usually immediately followed by a shortened version of the 2005 fmpassible Dream advert A post 2005 style Honda dealership in Moneton, Canada MARKETTING STRATEGIES OF HONDA,In December 2005, Honda released ‘The Impossible Dream a twosminute panoramic advertisement filmed in New Zealind, Japan and Argentina which illustrates the Founder's dream to build performance vehicles. While singing the song “Impossible Dream*, a man reaches for his racing helmet, leaves his trailer on a minibike, then rides a succession of vintage Honda Yehicles: a motorcycle, then a car, then a powerbeal, then goes over a waterfall only to reappear piloting « hot air balloon, with Garrison Keillor saying "I couldn't have pul it better myself” the song ends. The song is from the 1960s musical Man O/La Mancha, sung by Andy Williams. In 2006, Honda released its Choir adver ment, for the UK and the internet, This featured a 60+ person choir who sang the ear noises as film of the Honda Civie are shown. For the last several years im the U States, during model close-out sales for the cufrent year before the start of the new model year. Hond’s advertising has featured an animated ‘character known simply a8 Mr. Opportunity, voiced by Rob Paulsen. The casita looking man talks about various deals offered by Honda and ends with the phrase "I'm Me. Opportunity, and I'in knockin", followed by him "knocking" on the television seteen or “thumping” the speaker at the end of radio ads, Also, eomn parodies of well-known pop culture images such as TTeiris and ‘Thomas The Tank Engine. reials for Honda's international hatehback, the Jazz, are In late 2006, Honda released an ad with ASIMO exploring a thuseur, looking at the exhibits “with almost child-like wonderment (spreading out its arms in the aerospace exhibit, waving hello to an astronaut suit that resembles ), While Garrison Keillor ruminates on progress, It concludes with the tagline: "More forwards please” MARKETTING STRATEGIES OF HONDA,Honda also sponsored V's coverage of Formula One in the UK for 2007. However they had announced that they would not continue in 2008 due to the sponsorship price requested by ITV ‘being too high. In May 2007, focuses on their strengths in racing and the use of the Red H badge — a symbol of what is termed as "Mondamentalisi", The campaign highlights the lengths that Honda engineers ‘go to in order to get the most out of an engine, whether it is for bikes, cars, powerboats — even lawnmowers. Honda released its Hondamentalism campaign. In the TW spot, Garrison Keillor ‘says, "An engineer once said to build something great is like swimming in honey", while Honda -engineers in white suits walk and run towards a great light, battling strong winds and flying debris, holding on.to anything that will keep-them from being blown away. Finally one of the engineers walks towards a red light, his hand outstretched. A web address is shown for the Hondamentalism website. The digital campaign aims to show how visitors to the site share many ‘of the Hondamentalist characteristics, At the beginning of 2008, Honda released - the Problem Playgroutd, The advert outlines Honda's environmental responsibility, demonstrating a hybrid engine, more efficient solar panels and the FCX Clarity, a hydrogen powered car, The 90 second advert features large scale puzzles, involving Rubik's cubes, large shapes and a 3-dimensional puzzle. On 29 May 2008, Honda, in partnership with Channel 4, broadeast a live advertisement. It showed skyelivers juny from an aeroplane over Spain and forming the letters H, O, N, D and A in mid-air, This live advertisement is generally agreed to be the first of its kind on British television. The advert lasted three minutes. The next flight of one of the two planes involved resulted in a fatal grash as the plane broke apart in mid-air. MARKETTING STRATEGIES OF HONDA,\_/}) In 2009, American Honda released the Dream the Impossible documentary series, a collection of 5-8 minute web vignettes that focus on the core philosophies of Honda, Current short films include Fail rhe Secret to Suceess, Kick Out the Ladder and Mobility 2088. They feature Honda employees as well as Danica Patrick, Christopher Guest, Ben Bova, Chee Pearlman, Joc. Johnsion and Orson Seoti Card. The film series plays at dreams honda.com. Sports In Australia, Honda advertised heavily during most motor racing telecasts, and was the official ‘sponsor of the 2006 FIA Formula | telecast on broadcaster channel "Ten", In fact, it was the only manufacturer involved in the 2006 Indy Racing League season. In a series of adverts promoting the history of Honda's racing heritage, Honda claimed it "built" cars that won 72 Formula | ‘Grand Prix. Skeptics have accused Honda of interpreting its racing history rather liberally, saying that virtually all of the 72 victories were aehieved by Honda powered(engined) machines, whereas the cars themselves were designed and built by Lotus F1, Williams F1, and McLaren Fi teams, respectively. However, former and current staff of the MeLaren FI team have reiterated that Honea contributed more than just engines and provided various chassis, tooling, and aerodynamic parts as well as funding. Ayrton Senna, arguably the greatest F1 driver of al ti repeatedly stated that Honda probably played the most significant role in his three world championships, He had immense respect for founder, Soichiro Honda, and had a good relationship with Nobuhiko Kawamoto, chairman of Honda at that time. Senna once called Honda "the greatest company in the world". MARKETTING STRATEGIES OF HONDA,\_/}) “As part of its marketing campaign, Honda is an official partner and sponsor of the National. Hockey League, the Anaheim Ducks of the NHL, and the arena named after its Honda Center, Honda also sponsors The Honda Classic golf tournament and is a sponsor of Major League Soccer. The "Honda Player of the Year" award is presented in United States soccer. The "Honda. ‘Sports Award" is given to the best female athlete in each of twelve college sports in the United States, One of the twelve Honda Sports Award winners is chosen to receive theHonds-Broderick. Cup, as "Collegiate Woman Athlete of the Year.” MARKETTING STRATEGIES OF HONDA,\_}) thas described a category scheme consisting of three general types of strategies that are commonly used by businesses to achieve and maintain competitive advantage, These three _generic strategies are defined along two dimensions: strategic scope and strategic le dimer ssirengih, Strategic scope is a demand: mn and looks at the size and composition of the market you intend to target. Strategic strength is a supply-side dimension and looks at the ‘strength or core competency of the firm. In particular he identified two competencies that he felt \were most important: product differentiation and product cost (efficiency). He originally ranked each of the three dimensions (level of differentiation, relative product cost, and scope of target market) as either low, medium, or high, and juxtaposed them in a three dimensional matrix, That is, the category scheme was displayed as a 3 by 3 by 3 cubes, But most ‘of the 27 combinations were not viable. MARKETTING STRATEGIES OF HONDA,In his 1980 classic Competitive Strategy: Techniques for Analysing Industries and Competitors, Porter simplifies the scheme by reducing it down to the three best strategies. They are cost leadership, differentiation, and market segmentation (or focus). Market segmentation is narrow in scope while both cost leadership and differentiation are relatively broad in market scope. Empirical research on the profit impact of marketing strategy indicated that firms with a high market share were often qui profitable, but so were many firms with low market share. The least profitable firms were those with moderate market share. This was sometimes referred to as the hole in the middle problem, Porter's explanation of this is that firms with high market share ‘were successful beeause they pursued a eost leadership strategy and firms with low market share were successful because they used market segmentation to focus on a small but profitable market hhiche, Firms in the middle were less profitable because they did not have a viable generie strategy. MARKETTING STRATEGIES OF HONDA,\_J}) Porter suggested combining multiple strategies is suecessful in only one case, Combining a markel segmentation strategy with a product differentiation strategy was seen as an effective way ‘of matching a firm’s product strategy (supply side) to the characteristics of your target market ‘segments (demand side), But combinations like east leadership with product differentiation were ‘seen as hard (but not impossible) to implement due to the potential for conflict between cost minimization and the additional cost of value-added differentiation, Since that time, empirical research has indieated companies pursuing both differentiation and low-cost strategies may be more successful than companies pursuing only one strateg jan between cast leadershij Some commentators have made a dist that is, low cost strategies, and best cost strategies, They elaim that a low cost strategy is rarely able to provide a sustainable competitive advantage, In most eases firms end up in price wars, Instead, they claim a best cast strategy is preferred, This involves providing the best value for a relatively low price. MARKETTING STRATEGIES OF HONDA,Cost Leadership Strategy ‘This strateyy involves the firm winning market share by appealing to Cost-cci hans OF Price sensitive customers. This is achieved by having the lowest prices in the target market segment, or ). To succeed at -at least the lowest price to valle ratio (price conipared to what customers recel ‘offering the lowest price while still achieving profitability and a high return on investment, the iri must be able to operate at a lower cast than its rivals, There are three main ways to achieve ‘The first approach is achieving a high asset tumover. in service industrtes, this may mean for ‘example a restatirant that tums tables around very quickly, o¢ an aitline that turns around flights very fast. In manufacturing, it will involve production of high volumes of output, These approaches mean fixed costs are spread over 4 lafger number of units of the product oF service, resulting ina lower unit cost, ie. the firma hopes to take advantage of economies of scale and experience curve effects. For industrial firms, mass production becomes both a stratezy sand an end in itself, Higher levels of output both require and result in high market share, and ‘¢reate an entry barrier to potential competitors, who may be unable to achieve the scale ‘necessary (o maich the firms low costs and prices, MARKETTING STRATEGIES OF HONDA,‘The second dimiehsion is achieving low direct ard indirect operating costs. ‘This is achieved by offering high volumes of standardized products, offering basic no-frills products and liniting customization and personalization of service, Production costs are kept low by ising fewer ‘components, using standard components, and limiting the number of models produced to ensure larger production runs. Overheads are kept low by paying low wages, locating premises in low rent areas, establishing a cost-conscious culture, Maintaining this strategy requires a ‘continuous search for cast reductions in all aspects ofthe business. This will include outsourcing, -contrilling prodisction costs, increasing asset capacity utilization, and minimizing ather costs including distribution, R&D and advertising. The associated distribution strategy is to obtain the most extensive distribution possible. Promotional strategy often involves trying to make a virtue ‘out of low east prodict feaires, ‘The thitd dimension is contral over the supply/procurement chain to ensure fow casts. This could be achieved by bulk buying to enjoy quantity discounts, squeezing suppliers on price, instituting competitive bidding for contracts, working with vendors to keep inventories low using methods ‘such as JusteinsTTime purchasing or Vendor-Managed Inventory. Wal-Mart is famous for ‘squeezing its suppliers to ensure low prices for its goods. Dell Computer initially achieved market share by keeping inventories low and only building computers to order, Other procuroment suvantages could come from preferential access to raw materials, ar buckward integration. Some writers posit that cost leadership strategies are only viable for large firms with the ‘opportunity to enjoy eronomies of scale and large production volumes. However, this takes « linvited industrial view of strategy. Siiall businesses can also be éost leaders if they enjoy any MARKETTING STRATEGIES OF HONDA,aidvantages conthicive to low costs, Foreximple, a local festaurant in @ low fent locdtion ean Allcact price-sensitive customers if iLeffers a limited menu, rapid lable turnover and employs staff dn minimum wage. Innovation of produets of processes may also enable a startup or small ‘company to offer a cheaper product or service where incumbents’ costs and prices have become loo high, An example is the success of low-cost budget airlines who despite having fewer planes. than the major airlines, were able to achieve market share growth by offering cheap, no-frills servives at prices much cheaper than those of the larger incumbents. ‘A cost leadership strategy inay hive the disadvantage of lower customer loyalty, as price- sensitive customers will switch once a lower-priced substitute is available, A reputation as a cost leader may also result in.a reputation for low quality, which may make it difficult for a firms 10 rebrand itself or its products iC it chooses to shift te differentiation strategy in future. Differentiation Strategy Differentiate the products in some way in order to compete suecessfully. Examples of the success use of a differentiation strategy are Hero Honda, Asiah Paiats, HLL, Nike athletic shoes, Perstorp BioProducts, Apple Computer, and Mercedes-Benz automobiles. A different jon strategy is appropriate where the target customer segment is not price-sensitive, ‘the market is competitive or saturated, customers have very specific needs which are possibly uunder-scrved, and the firm has unique resources and capabilities which enable it to satisfy these needs in ways thut are difficult 1o copy. These could inclucle patents or other Intellectual Property AP), unique technical expertise (e.g, Apple's design skills or Pixar's animation prowess), talented MARKETTING STRATEGIES OF HONDA,\_}) personnel (¢.g. a sports team's star players or a brokerage firm's star traders), or innovative processes, Successful brand management also results in perceived uniqueness even when the physical product is the same as competitors. This way, Chiquita was able to brand bananas, Starbucks could brand coffee, and Nike could brand sneakers. Fashion brands rely heavily on this form of image differes ‘The shareholder value model holds that the timing of the use of specialized knowledge can create a differentiation advantage as long as the knowledge remains unique,"! This madel suggests that customers buy products or services from an organization to have access to its unique knowledge. ‘The advantage is static, rather than dynamic, because the purchase is a on e event. ‘The unlimited resources model utilizes a large base of resources that allows an organization to ‘outlast competitors by practicing a differentiation strategy. An organization with greater resourees ean manage risk and sustain profits more easily than one with fewer resources, TI deep-pocket strategy provides a short-term advantage only. Ifa firm lacks the capacity for ‘continual innovation, it will not sustain its competitive position over time. MARKETTING STRATEGIES OF HONDA,Focus or Strategic Scope ‘This dimension is not a separate strategy perse, but describes the scope over which the company should compete based on cost leadership or differentiation, The firm ean choose to compete in the mass market (like Wal-Mart) with a broad scope, or in a defined, focused market segment narrow scope. In either case, the basis of compe be mn will st ier cost leadership or differentiation. In adopting a narrow focus, the company ideally focuses on a few target markets (also called a ‘segmentation strategy or niche strategy), These should be distinct groups with specialized needs, ‘The choice of offering low prices or differentiated products/services should depend on the needs ‘of the sclected segment and the resources and capabilities of the firm. It is hoped that by focusing ‘your marketing efforts on one of two narrow market segments and tailoring your marketing mix to these specialized markets, you can better meet the needs of that target market, The firm typically looks to gain a competitive advantage through product innovation and/or brand MARKETTING STRATEGIES OF HONDA,\_}) marketing rather than efficiency. It is most suitable for relatively small firms but can be used by any company, A focused strategy should target market segments that are less vulnerable to ‘substitutes or where a competition is weakest to eam above-average returm on investment. Examples of firm using a focus strategy include Southwest Airlines, which provides short-haul point-to-point flights in contrast to the hub-and-spoke model of mainstream carriers, and Family Dollar, In adopting a broad focus scope, the principle is the same: the firm must ascertain the needs and wants of the mass market, and compete either on price (low cost) or differentiation (quality, brand and customization) depending on its resources and capabilities. Wal Mart has.a broad scope and adopts a cost leadership strategy in the mass market. Pixar also targets the mass market wit its movies, but adopts a differentiation strategy, using its unique capabilities in story-telling and animation to produce signature animated movies that are hard to copy, and for which customers are willing to pay to see and own. Apple also targets the mass market with its iPhone and iPod proclucts, but combines this broad scope with a differentiation strategy based on design, branding and user experience that enables it to charge a price premium due to the perceived unavailability of close substitutes. Recent developments Michael Treacy and Fred Wiersema (1993) in their book The Discipline of Market Leaders have modified Porter's three strategies to describe three basic "value disciplines” that ean ereate MARKETTING STRATEGIES OF HONDA,‘customer value and provide a competitive advantage. They are operational excellence, product leadership, and customer intimacy. Criticisms of generi¢ strategies Several commentators have questioned the use of generic strategies elaiming they lack specificity, lack flexibility, and are limiting. In particular, Miller (1992) questions the notion of being "caught in the middle", He claims that there isa viable middle ground between strategies, Many companies, for exariple, have entered a market as a niche player and gradually expanded. According to Baden-Fuller and Stopford (1992) the most successful companies are the ones that can resolve what they call "the dilemma ‘of opposites", A popular post-Porier model was presented by W, Chan Kim arid Renée Matiborgne in their 1999 Harvard Business Review article "Creating New Market Space”. In this article they described a “value innovation” model in which companies must loak outside their present paradigms to find new value propositions. Their approach fundamentally goes against Porter's concept that a firm must focus either on cost leadership or on differentiation. They: ater went on to publish their ideas in the book Blue Ocean Strategy. An up-to-clate critique of generic strategies and their! tions, eluding Porter, appears in Bowman, ©. (2008) Generic: jrategies: a substitute for thinking? [1] MARKETTING STRATEGIES OF HONDA,2009 Honda Civic GX hooked up to Phill refueling system MARKETTING STRATEGIES OF HONDA,‘Top: Brazilian flexible-fuel Honda Civic, Below: U.S. Honda Civie Hybrid. 2010 Honda Insight hybrid electric vehiele(Second generation). MARKETTING STRATEGIES OF HONDA,hydrogen fuel cellvehicle Compressed Natural Gas “The Honda Civie GX is the only purpose-built natural gus vehicle (NGV} commercially available in some parts of the U.S. The Honda Civic GX first appeared in 1998 as.a factory= modified Civic LX that had heen designed to run exclusively on compressed natural gas. The car looks and drives just like a contemporary Honda Civic LX, but dogs not run on gasolit in 2001, the Civic GX was rated the eleanest-burning intemal combustion engine in the world by the U.S. ronmental Protcetion Ageney (EPA). MARKETTING STRATEGIES OF HONDA,\_}) First leased to the City of Los Angeles, in 2005, Honda started offering the GX directly to the -d dealers certified to service the GX. Before that, only fleets were public through factory trai ble wo purchase a new Civie GX. In 2006, the Civie GX was released in New York, making it the second state where the consumer is able to buy the car. Home refueling is available for the GX with the addition of the Phill Home Refueling Appliance. ‘Flexible-fuel Honda's Brazilian subsidiary launched flexible-fuel versions for the Honda Civic and Honda in late 2006, As others Brazilian fex-fuel vehicles, these models run on any blend of hydrous ethanol (E100) and E20-E25 gasoline. Initially, and in order to test the market preferences, the carmaker decided to produce a limited share of the vehicles with flex-fuel ‘engines, 33 percent of the Civic production and 28 percent of the Fit models. Also, the sale price for the flex-fuel version was higher than the respective gasoline versions, around USS1,000 premium for the Civic, and USS6SO for the Fit, despite the fact that all other flex-fuuel vehicles ‘sold in Brazil had the same tag price as their gasoline versions. In July 2009, Honda launched in the Brazilian market its third flexible-fuel car, the Honda City. During the last two months of 2006, both flex-fuel models sold 2,427 cars against 8,546 _gasofine-powered automobiles, jumping to 41,990 flex-fuel ears in 2007, and reaching 93,361 in 2008. Due to the success of the Nex versions, by early 2009 a hundred percent of Honda's automobile production for the Brazilian market is now flexible-fuel, and only a small percentage ‘of gasoline version is produced in Brazil for exports. MARKETTING STRATEGIES OF HONDA,In March 2009, Honda launched it the Brazilisin market the first flex-fixel motorcycle in the world. Produced by its Brazilian subsidiary Moto Honda da At nia, the CG 150 Titan Mix is ‘sold for around US$2,700. ‘Hybrid electric In late 1999, Honda launched the fitst cominercial hybrid electric ear sold in the U.S; market , the Honda Insight, just one month before the introduction of the Toyota Prius, and initially sold for US$20,000. The first-generation Insight was produced from 2000 to 2006 and had afuel ‘economy of 70 miles per US gallon (3.4 L/100 km; 84 mpginy) for the EPA's highway rating, the most fucl-efficient mass-produced ear at the time, Tota global sales for the Insight amounted: to conly arouind 18,000 vehicles. Honda introduced the second-generation Insight in its home nation of Japan in February 2009, and released it in other markets through 2009 and in the U.S. market in April 2009. At $19,800 asa fiverdoor haichback it will be-the least expensive hybrid available in the U.S. Honda-expects to sell 200,000 of the vehicles cach year, with half of those sales in the United States. Since 2002, Honda has also been selling the Honda Civic Hybrid (2003 model) im the U.S. tmarkel,, It was followed by the Honda Accord Hybrid, offered in model years 2005 through 2007. Sates of the Honda CR-Z began in Japun in February 2010, becoming Honda's third hybrid electric car in the market. In an interview in carly February 2011, a Honda executive disclosed that Honda produces around 200,000 hybrids a year in Japan, MARKETTING STRATEGIES OF HONDA,\_}) ‘Hydrogen fucl cell In Takanezawa, Japan, on 16 June 2008, Honda Motors produced the first assembly-line FOX ‘Clarity, a hybrid hydrogen fuel cell vehicle. More efficient than a gas-electric hybrid vehicle, the FCX Clarity combines hydrogen and oxygen from ordinary air to generate electricity for an clectric motor. ‘The vehiele itself does not emit any pollutants and its only by products are heat and water, The FCX Clarity also has an advantage over gas-electric hybrids in that it does not use an intemal combustion engine to propel itself. Like a gas-electric hybrid, it uses a lithium ion battery to assist the fuel cell during acceleration and capture energy through regencrative braking, thus improving fuel efficiency. The lack of hydrogen filling stations throughout developed countries. ‘will keep production volumes low, Handa will release the vehicle in groups of 150. California is the only U.S. market with infrastructure for fueling sucha vehicle, though the number of stations is still limited, Building more stations is expensive, as the California Air Resources Board (CARB) granted $6.8 million for four H2 fi Jing stations, costing $1.7 million USD each, To know about the Honda company. + To know about its Promotional activities. MARKETTING STRATEGIES OF HONDA,\_J}) ts Market Position, Honda’s level of customer satisfaction, “Its history and the company profile. Cost saving Hypothesis A hypothesis consists cither of a suggested explanation for an observable phenomenon or ‘of a reasoned proposal predicting a possible causal correlation among multiple phenomena, The MARKETTING STRATEGIES OF HONDA,\_/}) tetin derives from the Greck, hyposthenia meaning "to put under" or "ia suppose." The scie fie method requires that one ean test a scientific hypothesis, Scientists generally base such hypotheses an previous observations or om extensions of stientific theories. Even though the words "hypothesis" and "theory" are often used synonymously in common and informal usage, « scientific hypothesis is not the same as a seientifie theory, Hypothesis may be defined as a proposition or a set of proposition set forth as an explanation for the occurrence of some specified group af phenomenon either asserted merely as. a provisional conjecture to guide some investigation or accepted as highly probable in the light ‘of established facts, Quite often a research hypathesis és a predictive statement, capable of being tested by scientific methods, that relates an independent variable to some dependent variable. NULL HYPOTHESIS A null hypothesis is a hypothesis (within the context of statistical hypothesis testing) that might be falsified on the basis of observed data, The null hypothesis typically proposes a general or default position, such as that there is no relationship between two quantities, or that there is no difference between a treatment and the control. The term was originally coined by English geneticist and statistician Ronakd Fisher. MARKETTING STRATEGIES OF HONDA,\_}) ‘The null hypothesis (often denoted by Ho) formally describes some aspect of the statistical “behavior” of a set of data, The Null Hypothesis is of this project report is that customers are highly satisfied. ALTERNATE HYPOTHESIS Alternative hypothesis is the "hypothesis that the restriction or set of restrictions to be tested does NOT hold." often denoted Hj. Synonym for ‘maintained hypothesis." The Alternate Hypothesis of this project report is that eustomers are not satisfied > Honda Quality & Assurance Cant be replaced by anyone, > Honda Promotional Strategies are distinct and strike Honda directly in Mind Honda use new Technology to promote their existing products, Research Methodology “The purpose of methadology is to describe the proc: involved in research work. This includes the overall research design, data collection method, the field survey and the analysis of data. MARKETTING STRATEGIES OF HONDA,\_}) Research is a common parlance refresh to a search for knowledge. One can also define research «asa scientific & systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The advance learner's dictionary of current English lay down the meaning research as a careful investigation & inquiry specially seareh for new faets in any branch knowledge, Research Design Research Design is the arrangement for conditioned for data collection & analysis of data in a manner that aims to combined relevance to research purpase with economy in procedure. A rescarch design is a master plan or model for the conduct of formal investigation. print that is followed in completing study, ‘The research conducted by me is a deseriptive research, This is descriptive in nature beeause tion in a well structured from and is based on primary data. study is focused on fact investi MARKETTING STRATEGIES OF HONDA,‘Type of study: For completing my study | have gone for sumple study because looking at the size of population & the Lime limitation it was not convenient for me to cover entire population, Hence, I have gone for sample study rather than census study. ‘Sampling Plan A sample design is definite plan for obtaining a sample from a given population, It refers to the technique or the procedure that researcher would. adopt selec sms to be inched in the sample i.e. the size of sample. Sampling plan is determined before data are collected. ‘Steps in Sampling: 1. Understanding the Marketing strategies of Honda. Study the company profile & related aspects, To collect the information from self constructed question: with different owners of Honda showroom. 5. Obaining the opinion and suggestions of owners at different levels. 6 Prepafe questionnaire on the basis of above information, 7. Gather information from different source like books internet magazines etc. $. On the basis of the answers and the information gathered from other sources prepare the report. ‘Sampling Frame: The list of sampling units from which sample is taken is called sampling frame. MARKETTING STRATEGIES OF HONDA,\_}) Sampling Size: Total sample size is 50. Sampling Procedure: The selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure, evaluate and co-operative, It was a randomly area sampling method that attempts to obiain the sample of convenient. Qu. How long have you been associated with HONDA Motors MARKETTING STRATEGIES OF HONDA,\_}) No. of Respondents Percentage 1, From 1 year 0 10% 2. From 1-3 years 40 40% 3. From 3-5 years a on 4, From $—7 years 30 30% 3. Above 7 years 20 20% ASSOCIATED PEOPLE ot m2 03 a4 as Q2. (0 Salesperson MARKETTING STRATEGIES OF HONDA,\_/}) No. of Hespondents 1. Strongly Disagree 0 2. Disagree 0 3. Neither Disagree Nor Agree 0 4. Agree 86 5. Strongly Agree 4 SALESPERSON KNOWLEDGE a1 a2 03 o4 a5 86% people agreed that the sales persons are knowledgeable and 14% strongly disagreed that the ssales persons are knowledgeable. MARKETTING STRATEGIES OF HONDA,\_J}) Employees spent enough time with you before sales 1. Strongly Disagree 2. Disagree 3. Neither Disagree Nor Agree 4. Agree 3. Strongly Agree TIME SPENT No. of Respondents 0% 0% 0% 64% 36% a1 m2 03 a4 m5 64% people agreed that the sales persons spent enough time with them before the sales and 36% strongly agreed with this. Q2 (ii. Employees spent enough time . of Rexpondents MARKETTING STRATEGIES OF HONDA,\_/}) 1. Strongly Disagree 0% 2. Disagree 4% 3. Neither Disagree Nor Agree 0% 4. Agree 62% 5. Strongly Agree 4% TIME SPENT DURING SALES ai 22 03 a4 a5 62% agreed that sales persons spent enough time with them during the sales, while 34% strongly ‘agreed that the sales persons spent enough time with them during sales and only 4% disagreed with this, Q2 (in. Employees spent enough time with you after sales No. of Respondents MARKETTING STRATEGIES OF HONDA,\_}) 1. Strongly Disagree 0% 2. Disagree 2% 3. Neither Disagree Nor Agree 0% 4. Agree 34% 5. Strongly Agree 26% AFTER SALES at 22 o3 a4 a5 60% agreed that the sales persons spent enough time with them after sales, 26% strongly agreed with this and 14% disagreed that the sales persons spent enough time with them after sales. Q2¢ Display of Merchandize No. of Mespondents, MARKETTING STRATEGIES OF HONDA,\_}) 1. Strongly Disagree 0% 2. Disagree 0% 3. Neither Disagree Nor Agree 0% 4. Agree 4% 5. Strongly Agree 6% MERCHANDISE DISPLAY m2 o3 o4 a5 94% agreed that the display of merchandize was attractive and 6% strongly agreed that the display of merchandize was attractive, 02 (iv. Ay bility of the Product Ne. OF Respondents MARKETTING STRATEGIES OF HONDA,\_}) 1. Strongly Disagree 0% 2. Disagree 4% 3. Neither Disagree Nor Agree 0% 4, Agree 91% 5. Strongly Agree 5% PRODUCT AVAILABLITY ai m2 a3 o4 m5 91% agreed that the availability of the product was there, 5% strongly agreed that the availabil was there while only 4% said they disagreed with this. Q2 0. Varieiy/Selection of Merchandize No. of Respondents MARKETTING STRATEGIES OF HONDA,\_}) 1. Strongly Disagree . Disagree 3. Neither Disagree Nor Agree 4. Agree 5. Strongly Agree VARIETY OF MERCHANDISE at m2 03 o4 a5 0% 0% 87%. 1% 87% agreed that there was variety/sclection of merchandize whereas 7% strongly agreed that ‘enough variety was there and 6% disagreed with this. Q.2 (vi) Vehicle in Good Condition Respondents MARKETTING STRATEGIES OF HONDA, No. of\_J}) 1. Strongly Disagree 0% 2. Disagree 2% 3. Neither Disagree Nor Agree 0% 4. Agree 82% 5. Strongly Agree 16% CONDITION OF VEHICLE at a2 03 oa as 2% agreed that the vehiele was in good eondition when delivered, 16% strongly agreed with. this whereas only 2% disagreed with this. MARKETTING STRATEGIES OF HONDA,Q2¢ Prices Are Alfordable . of Respondents 1. Strongly Disagree 0% 2. Disagree 12% 3. Neither Disagree Nor Agree 15% 4. Agree 21% 5. Strongly Agree 52% PRICE AFFORDABLITY a1 m2 a3 aa = 64% sirongly agreed that the prices are affordable, 21% agreed that the prices are affordable Whereas only 15% said that they neither disagreed nor agreed with this, Q2 Ww active Discounts Offered MARKETTING STRATEGIES OF HONDA,\_}) No. of Respondents 1. Strongly Disagree 0% 2. Disagree 26% 3. Neither Disagree Nor Agree 0% 4. Agree AT 5. Strongly Agree 27% DISCOUNT OFFERED at a2 03 a4 a5 55% agreed that the discounts offered are attractive, 34% strongly agreed with this whil 11% disagreed and said that the discounts offered were not attractive. MARKETTING STRATEGIES OF HONDA,\_}) Q2 (ix). Décor OF The Waiting Arca Is Pleasing No. of o% 0% 3. Neither Disagree Nor Agree 0% 4. Agree 80% 5. Strongly Agree 20% DECOR OF WAITING AREA at m2 03 a4 m5 80°éagreed that the décor of the waiting area was pleasing while 20% strongly agreed that the décor of the waiting area was pleasing MARKETTING STRATEGIES OF HONDA,\_/}) Q2 bs. Offered A Test Drive No. of Respondents 2. Strongly Disagree 0% 3. Disagree 20% 4, Neither Disagree Nor Agree 0% 5. Agree 1% 6. Strongly Agree 6% TEST DRIVE OFFERED at m2 03 o4 a5 74%agreed that the test drive was offered to them, 6% strongly agreed t t the test drive was ‘offered while 20% disagreed with this MARKETTING STRATEGIES OF HONDA,Respondents 1. Strongly Disagree 2. Disagree 4. Agree . Neither Disagree Nor Agree 5. Strongly Agree SERVICE FOLLOW UPS ai m2 53 o4 5 No. of 15% 0% 59% 26% S9%agreed that the post sales follow ups are done regularly, 26% strongly agreed and 15%disagreed with this, MARKETTING STRATEGIES OF HONDA,\_}) Q2¢ Responds To complaints Quickly be Percentage 1. Strongly Disagree 0% 2, Disagree 9% 3. Neither Disagree Nor Agree 12% 4. Agree 61% 5, Strongly Agree 18% RESPONSE TIME at m2 53 o4 5 4% agreed that the response to complaints is quick, 18% strongly agreed, 12% neither agreed nor disagreed and 6% disagreed with this, MARKETTING STRATEGIES OF HONDA,HONDA Service Station Is Excellent 1. Strongly Disagree Disagree 3. Neither Disagree Nor Agree 4, Agree 5. Strongly Agree SERVICE STATION RESPONSE No. of Mespondents 0%, a a2 03 a4 as $2% said that the service at HONDA service station is excellent, 14% strongly agreed while only 4% disagreed with this. MARKETTING STRATEGIES OF HONDA,Q2 (xiv). 1 With Personal Information 1, Strongly Disagree Disagree 3. Neither Disagree Nor Agree 4. Agree 5. Strongly Agree CONFIDENTIALITY 5% agreed that yes they were careful with personal inform No. of Respondents 0% 0% 8% 85% ot a2 03 a4 m5 MARKETTING STRATEGIES OF HONDA, % strongly agreed with this and\_J}) 8% neither agreed nor disagreed. Q2 (xv). ‘The Commitments Are Fulfilled No. of 1, Strongly Disagree 0% 2, Disagree ™ 3 gree Nor Agree 0% 4. Agree % 5. Strongly Agree 87% COMMITTMENT FULFILLMENT a 53 o4 m5 94% strongly agreed that commitments were fulfilled and 6% agreed with this. MARKETTING STRATEGIES OF HONDA,\_/}) 3 (ip. Are you aware of the following facilities provided by HONDA? Insurance ( Cashless ) with © depreciation . No. of Respondents: 1. Yes 98% 2. No 2% at a2 ‘98% said yes that they are aware about HONDA insurance while only 2% said that they were not aware, ) Extended warranty Na. of Hespondents 97% v Zz & 3% a a2 97% said they were aware about extended warranty and 3% said that they did nat know abou is. MARKETTING STRATEGIES OF HONDA,Terrace No. of Respondents 1. Yes 98% 2. No 2% 98% said they were aware about true value and 2% said they were not aware. Q3 (iv) HONDA Motors finance No. of Respondents 1. Yes 75% Zz é 25% 75% said that they were aware about HONDA. Motors finanee and 25% said that they were not aware of it, MARKETTING STRATEGIES OF HONDA,\_J}) Q3 (v) Antocard No. of Respondents 1. Yes 84% 2. No 16% 84% said that they were aware about autocard and 16% said that they were not aware of it, Q3 (Vi). Geanine Accessories No. of Respondents 1. Yes 85% 2. No 15% et m2 85% said that they were aware of genuine accessories available and 15% said they were notaware, MARKETTING STRATEGIES OF HONDA,\_}) Q4.What is your overall opinion about HONDA? Choice 1. Very bad 2. Bad 3. Neither bad nor good 4. Good 5. Very good 96% said that there overall opinion about TATA. was that it is very good while 4% said that good. No. of Hespondents 0% % 0% 4% 96% at a2 03 a4 a5 MARKETTING STRATEGIES OF HONDA,\_J}) @ 5. How likely would you recommend HONDA? Recommend. i. No. of Respondents 2. Very Unlikely 0% 3. Unlikely 0% 4, Neither Unlikely nor likely 0% 5. Likely 10% 6, Very Likely 90% a a2 03 4 m5 90% people said they would very likely recommend HONDA to other people and 10% said they would likely recommend HONDA to others. MARKETTING STRATEGIES OF HONDA,\_/}) @-G) Do you like the promotions and ad campaigns of HONDA Motors? No. of Respondents 1.Very Unlikely 0% 2.Likely 70% 3.Very Likely 30% at e2 03 Promotional Strategies and Ad Campaigns used by Honda are basically to represent whole Brand not the particular product . In India current effective campaign is POWER OF DREAMS . featuring HONDA CIVIC and CITY on a long Freeway . MARKETTING STRATEGIES OF HONDA,\J CONCLUSION ‘On an averaige more than 73% people feel that the prices are affordable whereas 12% do not agree, 74% believe that attractive discounts are offered whereas 26% are not ‘satisfied withthe discounts offered. 20% said that the test drives are not offered and 15% said that post sales follow ups are not done regularly whereas 85% said that they were done regularly but people fee! that itis the people's car as itis satisfactory on all ‘other parameters: knowledgeable sales persons , employees spent enough time before and during sales, display of merchandise is attractive, availability of product, variety of merehandize, vehiele in good condition, prices are affordable, attractive discounts are offered, décor of the waiting area is pleasing, responds to complaints quickly, service at TATA Motors service station is excellent, careful with personal information and is value for money . The overall opinion about TATA Motors is very good. 86% people agreed that the sales persons are knowledgeable and 14% strongly disageced that the sales ‘persons are knowledgeable. 64% people agreed that the sales persons spent enough time with them before the sales: and 36% strongly agreed with this, 6: Yo agreed that sales persons spent enough time with them during the sales, while 34% strongly agreed that the sales persons spent enough time with them during sales and only 4% disagreed with this, MARKETTING STRATEGIES OF HONDA,\J ‘60% ageeed that the sales persons spent enough time with them afer sales, 26% strongly agreed with this and 14% disagreed that the sales persons spent eriough time with them after sales, 94% agreed that the display of merchandize was attractive and. 6% strongly agreed that the display of merchandize was attractive. 1% agreed that the availability of the product was there, 5% strongly agreed thal the availability was there while only 4% said they disagreed with t $7% agreed that there was variety/selection of merchandize whereas 7% strongly agreed that enough varicty was there and 6% disagreed with this; 82% agreed that the vehicle was in good condi mn when delivered, 162% strongly agreed with this whereas only 2% disagreed with this. 64% strongly agreed that the prices are affordable, 21% ‘agreed that the prices are affordable whereas only 15% said that they neither disagreed nor agreed with this, 55% agreed that the discounts offered are attractive, 34% strongly agreed with this While 11% disagreed ant said that the discounts offered were not attractive. 8%agreed. that the décor of the waiting area was pleasing while 20% strongly agreed that the décor of the waiting area was pleasing 74% agreed that the test drive was offered to them, 6% strongly agreed that the test drive was offered while 20% disagreed with 59% agreed that the post sales follow ups are done regularly, 26% strongly agreed and | s%édisagreed with is. 4% agreed that the response to. complaints is quick, 18% sirongly agreed, 12% neither agreed nor disagreed and 6% disagreed with this. MARKETTING STRATEGIES OF HONDA,\_}) $2% said that the service at HONDA service station is excellent, 14% strongly agreed while only 4% disagreed with this, 85% agreed that yes they were careful with personal information, strongly agreed with this and 8% neither agreed nor disagreed. 94% ssirongly agreed that all the ommitments were fulfilled and 6% agreed with this, 98% said ‘yes that they are aware about the Insurance Schemes of HONDA while only 2% said that they were not aware. MARKETTING STRATEGIES OF HONDA,\_/}) dreams.honda.com world.honda.com a MARKETTING STRATEGIES OF HONDA,Being an esteem customer of HONDA SEEL CARS ENDEA Lid. you are requesied to take out afew minutes and fill the following QUESTION) HERE: Name: .. Address: Pin Code Gender: Male Female Age: Below!8 18:25 26-35 36-50 51 and above MARKETTING STRATEGIES OF HONDA,\_}) Occupation: Service Business Student Housewife Q.1)} How long have you been associated with HONDA? Q-2.) How would you rate HONDA Motors on the following parameter? Strongly disagree Disagree Neither agree Nor disagree Strongly agree i) Knowledgeable sales person ii) Employees spent enough time MARKETTING STRATEGIES OF HONDA,\_J}) with you: Before sales During sales After sales Display of merchandise is attractive ivb Availability of the product vb Variety/selection of merchandise ‘vip Vehiele in good con: vii) Prices are affordable ) Attractive discounts offered ix) Décor of the waiting area is pleasing xb Offored a test drive xi} Post sales follow ups are done regularly MARKETTING STRATEGIES OF HONDA,\_}) _xii) Responds to complaints quickly xii) Service at HONDA service station is excellent -xvi Careful with personal information xvb All the commitments are fulfilled “xvi Value for money @-3) Are you aware of the following fueilities provided by Tata Motors? FACILITIES Yes No i) HONDA Motors insurance ia) Extended warranty Auto Terrace ivy Finance Schemes vb Autocard ‘vib Genuine accessories QA) What is your overall opinion about HONDA Motors? 1.Ve Bad MARKETTING STRATEGIES OF HONDA,\_J}) 2.Neither Bad Nor Good 3.Good 4.Very Good Q.5) How likely would you recammend HONDA Motors? L.Very Unlikely 2.Likely 3.Very Likely Q.G) De you like the promotions and ad campaigns of HONDA Motors? 1.Very Unlikely 2.Likely 3.Very Likely Sign of Customer Sign of CONCLUSION MARKETTING STRATEGIES OF HONDA,Honda is committed to firther advancing power tain technologies in order to offer new products and technologies that satisfy growing demand from customers around the world for high fuel efficiency and to achieve more environmentally-friendly mobility that more people ean enjoy. Honda will continue to dedicate company resources to the creation of new technologies. Honda will also continue making capital investments proactively to strengthen the Nexibility and efficiency of its global production network. Setting customer satisfaction as our number one priority, Honda strives to provide the joy of mobility to even more customers through the introduction of new technologies and new products. this is achieved, our sates shauld reach approximately 16 million units for motoreyeles, approximately 4 million units for automobiles, and approximately 6.5 million units for power products by the end of the 9 Mid-term, In terms of sales revenue, this will exceed 1 trillion yen. ‘Through all of these efforts, Honda's goal is to be a company that society wants to exist, to pursue the joy of mobility, and to extend this jay to more customers and to future generations, MARKETTING STRATEGIES OF HONDA,