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  • MKT 651 Global Marketing: Datuk Prof. Dr. Hj. Md. Tahir

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    This case study examines Honda's lower sales in the European market compared to competitors. Honda struggled to penetrate and sustain its presence in Europe. It faced challenges including a late entry into Europe, a weak brand image with a narrow product line perceived as outdated, and failing to understand unique European cultures. The document recommends Honda revise its marketing strategy to tailor its approach to each country's high-context or low-context culture and improve promotions.

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    Honda Europe

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    This case study examines Honda's lower sales in the European market compared to competitors. Honda struggled to penetrate and sustain its presence in Europe. It faced challenges including a late entry into Europe, a weak brand image with a narrow product line perceived as outdated, and failing to understand unique European cultures. The document recommends Honda revise its marketing strategy to tailor its approach to each country's high-context or low-context culture and improve promotions.

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    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    2K views13 pages

    MKT 651 Global Marketing: Datuk Prof. Dr. Hj. Md. Tahir

    Uploaded by

    adamdanish
    This case study examines Honda's lower sales in the European market compared to competitors. Honda struggled to penetrate and sustain its presence in Europe. It faced challenges including a late entry into Europe, a weak brand image with a narrow product line perceived as outdated, and failing to understand unique European cultures. The document recommends Honda revise its marketing strategy to tailor its approach to each country's high-context or low-context culture and improve promotions.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    of 13

    MKT 651

    GLOBAL MARKETING

    PREPARED FOR:
    DATUK PROF. DR. HJ. MD. TAHIR
    PREPARED BY:
    NURUL UYUN ABD TALIB
    NOR AMINA HAMDAN
    History
    • Founded ~ 24 September 1948
    • Founder ~ Soichiro Honda
    • Headquarters ~ Minato, Tokyo, Japan
    • Area served ~ worldwide
    • Industry ~ Automobile, track manufacturer,
    motorcycle
    • Revenue ~ US$ 120.27 billion (FY 2009)
    • Employees ~ 181,876 (2009)
    Suichiro Honda
    Founder Honda Motor Company Ltd
    1948 - 1991
    “ If Honda does not race there is no Honda”
    Honda Headquarters Building in Japan
    Summary
    The case study is all about Honda which faced lower sales in
    Europe market as compared to other competitors.

    Honda needs to struggle to penetrate the Europe markets as


    well as to sustain there. Basically in this case study it tells us
    how come a number one carmaker in Japan can faced all the
    difficulties.

    Based on the case study also its state few reasons of the
    lower sales of Honda in Europe market and other major
    problem facing by Honda in the European market that
    contribute to the low sales

    such as the acceptance of people in


    Europe country toward Honda , competition
    from other automobile manufacturer,
    promotion as well as the culture.
    Problem statement
    1) Lower sales in Europe market

    Unit Sales Year 2004 Year 2005

    Japan 716 712

    US 1558 1575

    Europe 231 267

    Other 137 176


     Honda entered Europe market late
     make it difficult to survive

    Chronology
    1961- Honda entered Europe market as a
    motorcycle manufacturer

    1986- Honda started engine production in UK

    1990- Oversupply of motor vehicles – industry


    problem
    - M&A took place
    - only 6 or 7 companies would remain global
    as global player
    1992- Honda launched its Europe production at
    Swindon UK
     Europe highly saturated with local company
    - Saab,Volvo,BMW,Audi,Volkswagen,Opel
    Renault and Fiat
    - other foreign company : Toyota,Nissan,Ford & Hyundai

    Automobile %
    Volkswagen 17.6
    Peugeot 15.8
    Renault 10
    Ford 10
    Toyota 5
    Honda 2.4
    2) Weak brand image & product line is
    narrow
    - Oldies ; back to 1930s
    - Low quality
    - Out dated
    - Second car
    3) Failed understand Europe culture
    • Treated as one giant single market – WRONG
    • France,Germany,UK and Italy – different culture
    • High context & Low context
    – Different way to approach
    – Represent the product- Ads
    – The acceptance of people towards Honda
    4) Poor promotion afford
    • Same throughout Europe
    • Spend little time and money
    • Rely on words of mouth
    • Poor website
    Recommendations
    • Marketing strategy plan should be revised
    • ~ develop according to the nation culture
    • Market segmentation according to high or
    low context culture
    • Tackle market by manufacturing more low-
    emission CO2 vehicles and offering more
    motor vehicles model (diesel cars)
     Improve the promotion

    Low Context High Context


    • Informative advertising • Customize advertising
    based on style and image
    • Employ PR campaign, road
    shows, printed and broadcast
    media

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