FOREIGN TRADE UNIVERSITY

GLOBAL MARKETING

___***___

REPORT

HONDA IN VIETNAM AND JAPAN

Course : Global Marketing

Lecture : Tran Thu Trang

Student’s name : Nguyen Tran Quang

Ky

Student FTU ID : 2005573125

Student North ID : 23853863

Class : FUON M 3C
Table of contents

Executive summary

A. Brief background of Honda ……………………………………………………………………………….

B. International market selection…………........……………………………………………………….

1. Political factors

2. Economical factors

3. Social factors

4. Technological factors

C. Market entry method........................…………………………………………………………………

D. Marketing strategies ………………………………..........................……………………………….

1.Product..................................................................................................................

2. Price.....................................................................................................................

3. Place.....................................................................................................................

4. Promation...........................................................................................................

F. Reference ...............................................................................................................

Executive Summary

- The market performance and strategies of Honda in Vietnam and Japan are
examined in this global marketing report. Honda is a major participant in the
motorbike and automotive industries in Vietnam, where it must contend with
opportunities and challenges. The report examines Honda's tactics in its native
Japan to sustain its leadership in the face of shifting market conditions. Honda's
global marketing strategies are effective in a variety of markets, as demonstrated
by a comparative study. The main conclusions include issues unique to each
 market, the impact of culture on consumer behavior, and suggestions for
improving Honda's worldwide marketing strategy to maximize market positions.

A. Brief background of Honda

-Soichiro Honda, who had a strong interest in mechanical engineering, founded

the Honda Motor Company. Tokai Seiki was first established by Soichiro Honda as
a company that produced piston rings for Toyota. Honda enlisted Takeo Fujisawa's
assistance when he established his own business in 1948. He devised his scheme
to use surplus generator motors on bicycles to make post-war Japan mobile. The
first Honda "Dream" D-type motorcycle was created and put into production in
1949. Honda's success in the field of international marketing is largely due to its
capacity to handle a variety of cultural, political, and legal environments. Honda
has a worldwide perspective and has carefully considered how to tailor its
marketing strategies to the particular needs of different international markets.
This versatility has elevated Honda to a prominent position on the international
scene and strengthened the company's brand image. Honda makes for a
fascinating case study when it comes to the analysis of a global marketing report.
It shows how a Japanese company has successfully used its brand, technology, and
marketing techniques to connect with an international consumer base. Solutions
that are tailored to meet the specific needs of different global markets (Jake
Matthews, 2018).

B. International market selection

1. Political factors

VIETNAM JAPAN

Vietnam is one of the most politically stable
countries in South East Asia. In Vietnam, there
is only one political party in control: the
Communist Party of Vietnam (CPV). The CPV
sets strategic direction and makes all major
policy decisions, which are then implemented
With the emperor serving as the head of state,
Japan is a constitutional monarchy. The
Japanese monarch has very little influence over
national politics, similar to many other
monarchs around the world. Japan’s capital city
is Tokyo. Japan's constitution is postwar and
by the government. The CPV is in charge.
Along with upholding social order, protecting
territorial integrity, and preserving the one-
party state system, its main objective is
economic growth.Vietnamese officials do not
condone discord. Demonstrations that are
large-scale and/or politically sensitive are
suppressed, and internal conflicts are closely
observed (gov.uk, 2021)
2. Economical factors
VIETNAM
Vietnam's economy is expanding. Vietnam’s
nominal GDP in 2021 was valued at 366.14
billion US dollars. Millions of people have
been lifted out of poverty in the last ten years,
and significant progress has been made in this
regard. The economic picture for Vietnam is
bright and promising for the foreseeable
future. As per the World Bank report of 2023,
Vietnam's objective is to achieve high-income
status by 2045. But for the next 25 years, its
economy would need to expand at an average
annual rate of 5.5% per capita to accomplish
this (M Rahman, 2023).
3. Social factors
VIETNAM
Vietnam has approximately 99.6 million
people living there (Worldometer, 2023). The
predominant religion and language in the
pacifist. As a major donor of aid, it holds a
significant position in the global community
(BBC, 2021).A number of nations, including
South Korea, North Korea, China, Russia, and
China, have political and territorial disputes
with Japan. Nevertheless, it continues to have
very tight ties to the US. Japan's security and
foreign policies are closely linked to this
relationship (M Rahman, 2023).
JAPAN
The economy of Japan is robust. It is indeed
one of the world's top 5 economies. The system
of education there is highly prioritized.
A great deal of Japanese culture revolves
around contributing to society. Early on in
school is when it all begins. They become ready
for the workforce with this kind of supervision.
For the majority of their working lives, men are
expected to join a firm and stay there. Working
till marriage is expected of women. Despite
this, Japan's unemployment rate (5%), is rising.
For the Japanese, this is a large and concerning
figure, even if it is modest when compared to
other nations ( Kiesha frue, 2016).
JAPAN
The tenth most populous nation in the world is
Japan.Its population as of right now is 125.4
million (Worldometer, 2023). There are two
nation are Buddhism and Vietnamese,
respectively. Confucianism, which emphasizes
deference to authority and family values, is a
major influence on Vietnamese culture.
Taoism and Buddhism have also had an
impact on it. Most Vietnamese people are
amiable. Many visitors have written about
their fascinating and memorable interactions
with the locals on the internet. Even though
Vietnam's economy has grown significantly
over the years, concerns regarding wealth
distribution are becoming more and more
prevalent. The wealth gap between the rich
and the poor is widening. The country's aging
population is another social challenge
(M Rahman, 2023).
4. Technological factors
VIETNAM
Vietnam has made significant investments to
expand its IT industry in recent years. The
government has launched several initiatives to
promote innovation and entrepreneurship,
two of which are the National Innovation
Center and the Vietnam Silicon Valley
project.By attracting foreign investment, these
initiatives hope to enhance the business
environment for technology entrepreneurs.
Apart from that, the industrial sector in
Vietnam is strong, particularly in the
electronics sector.
With a large and quickly growing smartphone
and internet penetration rate, Vietnam is a
country with a lot of people. Companies are
now able to create digital products and
main religions in the country: Buddhism and
Shintoism. The majority language is Japanese,
which is spoken by 99% of the people. Japan
has several societal issues to deal with. Two of
its largest current issues are an aging
population and a declining birth rate. The
average lifespan for males is 81 years, and for
females it is 87 years. According to numerous
predictions, there will likely be less than 100
million Japanese people living in 2048 and
roughly 87 million by 2060 (M Rahman, 2023).
JAPAN
Technology-wise, Japan is one of the most
developed countries in the world. To a degree
that many other countries will find impossible
to emulate, it has been driving technical
innovation and creativity. As far as finding and
assimilating new technology go, the Japanese
are known to be extraordinarily creative.Japan
has demonstrated innovation in a wide range of
sectors. Automation systems, for example, are
widely used in Japan, particularly in restaurants,
hospitals, and airplanes. Japan has also
advanced far beyond many other affluent
countries in the field of robotics. The majority
of industrial robots in the world really call it
services, such as mobile applications and home (M Rahman, 2023).
eCommerce platforms (Abdun Momin, 2023).

C. Market entry method

The Honda Company has put forth many corporate-level business strategies,
contingent upon the product type and development stage.
- Prior to 1996: Honda launched its Dream and Super Cub automobiles into the
Vietnamese market. As Vietnam's legal barrier for foreign corporations was still
quite high and complicated at the time, Honda chose this kind of infiltration. The
Vietnamese market started to see an increase in demand for motorcycles at the
same time. This is Honda's international strategy in Vietnam
- Honda established a joint venture and introduced the Super Dream motorbike to
Vietnam in 1996. This is the first sign that Honda is implementing a new multi-
national-multidomestic strategy in the Vietnamese market. Honda's motorbike
anticipated a lot of competition, including unavoidably low prices, in the near
future to enter Vietnam's prospective market. In light of this, establishing a joint
venture manufacturing facility in Vietnam is both a trailblazing move and a
competitive advantage.
- - Honda introduced car manufacturing lines to Vietnam in 2006. Honda used a
multinational strategy at this time instead of an international one for its car
product line. Due to the fact that there was less of a need to adapt and lower
prices while Vietnam's automotive industry was still relatively tiny, Honda mostly
imported vehicles—usually from the Honda Accord line—into the country. That
being said, when the automobile business began to grow, a shift to a worldwide
strategy was necessary. Honda began to focus on manufacturing cars in Vietnam,
often focusing on growing the Civic model. Honda believes this product line will
provide a variety of advantages over competitor goods. (Do Quang Truong, 2021).

D. Marketing strategies
1. Product
 - Honda Vietnam offers a wide range of motorcycles that are appropriate for any
age, gender, and family's financial position thanks to its focus on product variety.
Product quality: Honda Vietnam products have earned the hearts of Vietnamese
customers with their exceptional durability, high level of safety, suitability for
Vietnamese traffic conditions, and considerate after-sales services. Name. Every
variety of Honda Vietnam car has unique features and technological
requirements. Additionally, each automobile comes in a wide variety of colors.
Based on customer research, the corporation has introduced new automobile
models with exceptional features to meet consumer expectations. Only Honda
Vietnam sells each of these automobiles. Users would instantly think of Honda
Vietnam when these distinctive traits are mentioned (Hà Nguyễn, 2021).
2. Price
- The majority of Honda goods are priced averagely. The target market for Honda
Vietnam Company is unmistakably the middle class, which makes up the bulk of
Honda's overall clientele. As a result, this group is always the focus of product
price. In order to increase marketing effectiveness, this consumer segment is also
given top priority in the company's policies (Hà Nguyễn, 2021).
3. Place
- Currently, Honda Vietnam has 2 ways to distribute products: exclusive
distribution and widespread distribution
+ High-end items will fall within the purview of exclusive distribution. When it
comes to SH motorcycles, for instance, Honda would only ship them to sizable
facilities that are immediately under its direct management in metropolitan areas.
Honda won't let retail representatives to pick up merchandise from corporate
offices and deliver it to clients. By doing this, Honda is able to tighten product
management and lower the cost of retail inspections.
+ Distribution nationwide: Honda Vietnam is increasing the number of its sales
outlets. Large cities come first, followed by towns, districts, and smaller cities.
Extensive distribution enhances brand awareness in the eyes of consumers and
boosts income. ( Duong Thi Hong Nhung, 2022).
4. Promotion
- Honda is a brand that invests a lot of money on advertising efforts. Honda has
collaborated and supported several programs and units in an effort to promote
and strengthen the brand's image among consumers. This method of advertising
not only improves the brand's perception in the eyes of consumers but also helps
approach them in a nice manner. Honda's primary and most significant
sponsorship partnership is with the Vietnam national football team, or VFF.
Furthermore, Vietnamese buyers have been greatly impacted by Honda's "I love
Vietnam" campaign. Vietnamese people have always associated Honda with the
brand, from their first motorcycles to their current SH vehicles. Thus, coming up
with this tagline also demonstrates a tight relationship with clients and the
Vietnamese market ( Duong Thi Hong Nhung 2022).
F. Reference

Jake Matthews, 2018. Honda history: All you need to know (online). Available
from: < https://www.justvehicle.solutions/honda-history-all-you-need-to-know/ >
< Access Oct 15, 2018 >

gov.uk, 2021. Overseas business risk: Vietnam (online). Available from:

< https://www.gov.uk/government/publications/overseas-business-risk-vietnam/
overseas-business-risk-vietnam > < Access 25 February 2021 >

M Rahman, 2023. PESTEL analysis of Vietnam (online). Available from:

< https://www.howandwhat.net/pestel-analysis-vietnam/ > < Access 07 March
2023>

Worldometers, 2023. Vietnam population (online). Available from:

< https://www.worldometers.info/world-population/vietnam-population/ >
Abdun Momin, 2023. Vietnam PESTLE Analysis: An Attractive Destination for
Businesses (online). Available from: < https://pestleanalysis.com/vietnam-pestle-
analysis/ > < Access Jun 12, 2023>

BBC, 2021. Japan country profile (online). Available from:

< https://www.bbc.com/news/world-asia-pacific-14918801 > < Access 26 July,
2021>

Kiesha frue, 2016. PESTLE Analysis of Japan (online). Available from:

< https://pestleanalysis.com/japan-pestle-analysis/ > < Access NOV 14, 2016>

Worldometers, 2023. Japan population (online). Available from:

< https://www.worldometers.info/world-population/japan-population/ >
< Access>

M Rahman, 2023. PESTEL analysis of Japan( Country Profile) (online). Available

from: < https://www.howandwhat.net/pestel-analysis-japan/ > < Access 03
February 2023>

Do Quang Truong, 2021. Tieu luan cong ty da quoc gia Honda (online). Available
from:<https://www.academia.edu/8923812/Tieu_Luan_Cong_Ty_Da_Quoc_Gia_
Honda>
Ha Nguyen, 2021. Phân tích chiến lược Marketing của honda tại Việt Nam (online).
Available from: < https://amis.misa.vn/28666/chien-luoc-marketing-cua-honda/ >
< Access 29 October 2021 >

Doan Thi Hong Nhung, 2022. Phân tích chi tiết chiến lược 4P của Honda tại
Vietnam (online). Available from: < https://oriagency.vn/chien-luoc-4p-cua-honda
> < Access 9 May 2022>