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Honda Brand IMC Campaign- Slides + Transcript: Justin Ryan Thomas
 

Honda Brand IMC Campaign- Slides + Transcript: Justin Ryan Thomas

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This is a document containing a full 2.5 year integrated marketing campaign for Honda Motor Corp. created by Justin Ryan Thomas. ...

This is a document containing a full 2.5 year integrated marketing campaign for Honda Motor Corp. created by Justin Ryan Thomas.

This version contains all of the associated slides, plus highlights from the written report.

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    Honda Brand IMC Campaign- Slides + Transcript: Justin Ryan Thomas Honda Brand IMC Campaign- Slides + Transcript: Justin Ryan Thomas Document Transcript

    • Honda Motor Company Inc. Justin Thomas Céline Chevalier Kimberly Guzman Stephen Hattersley Shenna Huynh Edwardson Lim*Slides + Highlights from Transcript 13 May 2010
    • Slide 1 Céline Chevalier Kimberly Guzman Stephen Hattersley SDSU IMC Consulting Edwardson Lim Shenna Huynh Justin ThomasSlide 2 Agenda Introduction Situation Analysis Comm. Strategy Execution  Introduction  Overview  Situation Analysis  Internal  External  SWOT  Communication Strategy  Target Market  Communications Objectives  Marketing Objectives  Big Idea  Execution  Conclusion  Q&A
    • Slide 3 Introduction Situation Analysis Comm. Strategy Execution INTRODUCTIONStatement of Purpose Steven Center, the Vice-President of Marketing for American Honda Motor Co, contacted SDSUIMC Consulting to develop a 2.5 year integrated marketing campaign, targeted to the olderundergraduate and young professional markets. According to Mr. Center’s current market-researchresources Honda is already #1 in these consumer’s minds. Our instructions are to increase the amountof this market that considers Honda #1 in terms of fun, safety and environmental friendliness. In doingso, we are to increase the amount of the target market that views Honda as the #1 brand amongst theirmain competitors.1.b. Executive Summary SDSU IMC Consulting will increase the margin by which the target market see Hondaautomobiles as being fun, safe, and environmentally clean, as compared to the corporation’s maincompetitors. We will do so by creating an integrated marketing communications plan to effectivelyconnect these values to the brand, in the eyes of our target market and target audience. We will begin by exploring Honda Motor Company’s internal and external environment,identifying strengths, weaknesses and potential opportunities. We will then conduct primary andsecondary research on our target market, in order to gain insights that will help us createcommunications to effectively connect the Honda brand with the image of fun, safety andenvironmentally cleanliness. We will deliver communications through advertising, public relations, andsocial media vehicles, and set specific objectives relative to each. Using the insights gained through
    • research, we will propose a 2.5 year course of action to Honda Motor Co., and recommend metrics formeasuring success.Slide 9 Mission Statement Introduction Situation Analysis Comm. Strategy Execution “Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction.” The company values the "basic principles" of respect for the individual and the "threejoys," (buying, selling and creating). They have five important management policies:Proceed always with ambition and youthfulness. Honda focuses on the innovation of theirproducts to better "improve mobility and benefit society."* Respect sound theory, develop fresh ideas, and make the most effective use of time.* Enjoy work and encourage open communication.* Strive constantly for a harmonious flow of work.* Be ever mindful of the value of research and endeavor. Hondas operations reflect and further their mission statement and the position we wouldlike to maintain, as the brand that is most "fun, safe and environmentally friendly." In order todo deliver the highest quality products and stay at the cutting edge of innovation, Honda placesa great amount of effort into research and development. The management policies help makeemployee groups more efficient and encourage a better delivery of their mission. In order toremain globally efficient, Honda places sales networks, research and development centers, andmanufacturing facilities in each region they market to. By localizing their operations Honda canmore effectively tailor their brand to the needs of different cultures and societies. Honda strivesfor social consciousness by emphasizing innovations in safety and environmental efficiency,while keeping fun and performance in mind.
    • Slide 10 Technology Introduction Situation Analysis Comm. Strategy Execution  VCM  Hybrid IMA  CVT  VTEC  SH-AWD  Crash compatibility body Hondas innovations in automotive technology help bolster their position of "safe, fun,and environmentally conscious." Their research and development departments spend much ofthe companys resources ($5.733 billion in 2009 alone) developing technologies that will helpsolidify Hondas place as the #1 spot in their position. Honda carries patented technologies thatsupport this goal, and continuously builds on their resource pool. One such patented technology is VCM, or variable cylinder management, which deliverspower while saving fuel and reducing Co2 emissions. VCM accomplishes this by deactivatingengine cylinders at low speeds and reactivating them when high performance is necessary.Honda is currently the only automaker to offer a v6 engine with 3-stage cylinder deactivation.(VCM System) Honda is also responsible for IVTEC, or intelligent variable valve timing and lift. IVTEC isan engine innovation that opens the valves a small amount at low speeds and wider as speedincreases. This also allows for everyday drivability, fuel efficiency and high performancesimultaneously.(VTEC) IMA, integrated motor assist, is Hondas hybrid engine system. It is a parallel systempowered by an internal combustion engine assisted by an electric motor. The electric motorassists the engine during standing starts and during acceleration, when engine fuelconsumption is high. This system allows for performance and fuel efficiency simultaneously.Honda believes the parallel IMA system will prove to be the worlds most effective hybrid.(Hybrid IMA)
    • CVT, continuously variable transmission, is a transmission that can change without steps,eliminating the need for gear changes. No gear changes means less exertion on the vehicle andless engine load. This system results in drastically improved fuel economy. SH-AWD, Super Handling All-Wheel Drive, is a system that allows for vastly improvedcornering in four-wheel drive vehicles. During a turn, the system distributes more power to theoutside rear wheel and holds power back from the inside rear wheel for much more efficientturning. It is the First four-wheel drive system to freely distribute drive torque to rear wheelsand makes for a more fun ride. Honda is also working on the mass distribution of zero emissions fuel cell vehicles.These vehicles run off of hydrogen fuel cells, which power an electric motor, using no gasolineand producing zero emissions. Honda released the FCX Clarity fuel cell vehicle in 2008 at selectdistributors and plans to mass distribute in the near future. The Honda Crash-Compatibility Body exhibits industry leading safety technology. Hondaframes are built to align with different frames during impact, disperse collision loads for impactwith heavier vehicles and improve energy absorption to reduce body deformation in smallervehicles. This technology helps make the road safer for everyone involved in the crash, nomatter the size or make of their vehicle. Hondas technology is reflective of the brands positioning, mission, vision, and goals.The IVTEC, VCM, IMA Hybrid, CVT, SH-AWD, and fuel cell technology allow for increased fuelefficiency and high performance. The crash compatible frames are state of the art in terms ofsafety. Technology clearly allows Honda to pursue its vision of promoting environmentalconsciousness and driver safety, while delivering the performance their target market craves.2.a.iii. Financial Health Honda, like most automotive companies was negatively affected by the economicdownturn. 2008 was a remarkably detrimental year for Honda, as displayed by recent financialstatements. Sales, income and assets are all down in these records, due to the economic hit.However, the worst appears to be over and the company is currently taking steps to boostprofitability and move on. Honda forecasts that as they continue to implement a temporary costreduction strategy, sales and income will gradually return. Recent statements show the effectsof the downturn as well as the early results of their strategy to minimize the damages.According to the 2009 annual financial reports, income was down due to decreased revenueattributable to lowered unit sales along with unfavorable currency effects. (See Appendix2.a.iii.1.) Operating income was measured to be down by 15.9% (See Appendix 2.a.iii.2.). Thisdecrease can be attributed to a 28.5% decrease in unit sales of every category (power products,motorcycles and automobiles) when compared with the subsequent period. Negative currencyeffects have also added to the effect of decreased sales. Honda estimates that if the currencyexchange rates remained the same as in the previous period, operating revenue would haveonly decreased by 6%. In order to deal with the hit, Honda has gone with a temporary cost reduction strategy.They have significantly cut several costs, most notably Research and Development and SalesGeneral and Administrative expenses. By doing so, they hope to improve returns toshareholders until the market sees economic recovery. The strategy seems to have effectively
    • counteracted the effects of exchange rates and decreased sales, as in the recently measured 3rdquarter of 2010 Operating income has improved 74 billion yen, or 72.7% over the measured Q3of 2009. There is evidence of a “slowdown in the slowdown,” as measured by current reports.2010 financial statements report that revenue from sales is still dropping, but not as drasticallyas it was during the same period last year. This could be a sign of gradual recovery. Currencyeffects, yen vs. dollar, are still a major factor for the decrease in Honda’s operating income. Thisis a significant threat to future returns, and must be addressed adequately. Several of Hondas important markets have had significant changes and are importantfor a globally minded corporation like Honda to note. The US market is in recovery, and theEuropean market has bottomed out and is expected to see recovery soon. Japanese consumersare spending more, though they are still not completely "out of the trenches," with respect tounemployment and other detrimental aspects of the downturn. China and Indias economyshave both fully recovered, and are particularly compelling, as demand for Honda in thesemarkets has expanded significantly.Slide 11 Company Values Introduction Situation Analysis Comm. Strategy Execution  Company Values  Innovation  Research and Development  Quality  UniquenessCompetitive Advantage Honda’s focus on technology, quality and uniqueness has allowed Honda tobecome a leading brand name in the automobile industry. Honda’s Research andDevelopment (R&D) strengthens the ability to create new and unique technologies andproducts, which is the origin on Honda’s uniqueness. They are able to produce productsahead of the times, which in turn exceed customer expectations. Hondas growth is dueto consistently improving its products. Their focus is not growth for the sake of growth.
    • Their growth and overall business performance comes from finding ways to expand theproduct line by producing multiple models on a single assembly line. Hondasmanufacturing efficiency is aimed at highly competitive cost and high quality.They build three to five different vehicles on the same line meaning high asset utilizationand reduced variability that contributes to better quality. There is little "badgeengineering" where three to five vehicles with the same features are built using differentnameplates and adding higher costs to market sell, service and support the products.Position & Brand Honda vehicles appeal to young buyers, even as loyal older customers move upmarket into more expensive near-luxury Honda models. Honda is well known fun, safe,and economical engine performance as well as clean operation. Honda hasdemonstrated a long term approach to the transportation industry. They have built astrong vehicle brand based on reliable, quality products. Their engines are botheconomical and environmentally friendly.The companys rich history, high quality products and emphasis on research anddevelopment are key factors in Hondas strong brand value. Honda is a householdname around the world thanks to its reputation for developing innovative, reliable andextremely well engineered products. As a company that manufactures a broad rangeof products spanning cars, motorcycles, advanced four-stroke power equipment andmarine products, there are many positive halo effects. Owners who have experiencedHonda products become extremely loyal and are likely to consider a Honda inanother product category. The company continually strives for product improvement,which is an attraction for new customers. Streamlining the cooperation in research anddevelopment across all departments delivers product innovation, cutting-edgetechnology and top-tier design. The brand is recently valued at 19.079 million andhas the most models to top J.D. Power & Association satisfaction surveys.
    • Slide 12 Demographics Introduction Situation Analysis Comm. Strategy Execution Buyer’s Age 18-49 Young Professionals Mature Professional Middle Class Couples Income $75,000+2.a.viii. Customer Analysis Honda’s vehicles reach across several generations. Generally, Honda customers aremiddle-class Americans who have typically shown a desire for high quality, reliable, andaffordable cars. This group can be further broken down into young professional couples andolder professional couples. Young professional couples are young Generation Y newlyweds withno children. They are flourishing early in their careers and enjoy “couple-hood”. The coupleshares a $70,000 dual income. This is compared to older professional couples, buyers who are inthe second phase of their life. They are older baby boomers whose children have already movedout. Some may be beginning second careers like starting their own business while other are justbeginning retirement. Their household income ranges around $90,000. Despite the generationgap, Honda is able to appeal to both market segments.2.a.ix. Demographics Honda provides a number of different automobile models that cater to separatedemographic profiles. Statistics from a Honda sales staff training manual provided insight onbuyer demographics and characteristics specific to each model, as of 2010. The Accord Sedan markets itself as having a full-size sedan presence with a high-performance look and feel with wide-opening doors for ease of entry and exit. This automobileattracts primarily Baby Boomers who have an average income of $75,000. Buyers are 48%male and 53% female who are married with a college degree.The Accord Coupe is a sport vehicle that targets individuals who love the feel and look of drivinga high-performance vehicle. Individuals in Generation Y are greatly attracted to this vehicle. Thedemographics of this vehicle contain a median age of 38 with an average income of $70,000 a
    • year. 39% of Accord Coupe buyers are male and are 61% female. These individuals are mainlysingle with a college degree. The Civic Sedan offers technology, performance, and value. The marketing of thisautomobile attracts those under the age of 35 with an average income of $64,000. 55% of CivicSedan buyers are male and 45% female. 75% are married and 57% have earned a collegedegree. Another Civic model is the Civic Coupe that is a two-door vehicle that establishes itselfas sharply styles and feature rich automobiles that claims to turn every drive into an escape.The stylish look of the car attracts those under the age of 35. Of these buyers, 60% are male,while the remaining 40% are female. Civic Coupe buyers have an average income of $78,000,being primarily married with a college degree. The Civic SI Sedan was created for those who are performance oriented, four door, andsports vehicle. SI Sedan buyers range from 20-40 years old, with a median age of 29. Malestake up 83% of the buyer demographic while only 17% are female, which is a major differencecompared to the gender demographics of other Honda models. The buyers of this automobilehave an average income of $85,000 are primarily married, and educated. A hybrid model of the Civic was created for individuals who desire the comfort andcharacteristics of a Civic with better fuel efficiency. The Civic Hybrid contains buyersdemographic who are between the ages of 45-64. 61% of these buyers are male and 39%female. They contain an average income of $100,000. Most are married with a collegedegree. The New Insight targets those who are concerned with the effects cars have on theenvironment. This automobile caters to two different markets. The first market are buyersbetween the ages of 25-29 years old who are entry level professionals earning an averageincome of $45,000-$55,000. The buyers are evenly male and female and primarily single. Thesecond market of the New Insight targets those who are retired professionals with an averageage of 55. They have a high or fixed income and this automobile is their second vehicle.The FIT is Honda’s second attempt for a hybrid vehicle and was created to compete with theToyota Prius. 19% of these buyers are professionals earning an average income of$76,000. The Honda Odyssey is a minivan that prides itself of innovative safety features andadvanced technology. The average age of these buyers is 45 years old making an averageincome of $90,000 per year. 93% of Odyssey owners are married and 61% have children. The“soccer mom” reputations of the Odyssey minivan lead to the creation of the Honda Pilot thathas the same features as the later vehicle with a trendy, SUV look. The buyers of the Pilot areprimarily between the ages of 35-45 earning $70,000, who are married with children.Honda also produces trucks. One model is the Ridge Line, which is a 4-door pickup. JD Powerand Associates recently named this truck Truck of The Year. This model attracts primarily 45-year-old males who are married with children. The average income of these buyers earns$79,000 a year and lives a suburban lifestyle. Another truck that Honda produces is the Truck Element. Interestingly, this truck wasdesigned for recent college graduates, but has attracted those who are over 50 years old. Thesebuyers are mostly male earning an average $77,000 per year. Truck Element owners are 67%married and enjoys an active outdoor lifestyle.
    • After comparing the different models and buyer characteristics of the automobilesabove, it is proven that Honda car owner demographics are incredibly diverse and contain theability to succeed in any market. In summary, the Accord and Civic sedan provides a full-sized automobile in which anolder market may find valuable. The Accord and Civic Coupe, and Civic SI satisfy those whodesire an affordable high performance vehicle. For those who are following the trends ofenvironmentally automobiles, Honda provides the Civic Hybrid, Insight, and FIT. Honda alsounderstands family is an important factor in the lives of many and has launched the Odysseyand Pilot for a family friendly car. Finally, for those who have an active lifestyle enjoy thebenefits of the Truck Element and the Ridgeline. After researching buyer demographics ofHonda car owners for 2010 fiscal year, it is prevalent that this company caters to many marketsin the automobile industry ranging from age, income, and lifestyles. This research has also concluded that the Accord and Civic models are ideal vehicles thatcater to our target market based on current demographic characteristics. A more in depthanalysis was then conducted on consumers who own these models using the Media MarkResearch and Intelligence. After assessing consumer information on the Honda Accord and Civicmodels, as well as their Big 3 competitors, a list of potential mediums were found. Formagazines, Lucky, Spin, and Wired were concluded to be the best magazines to advertise inbased on consumer readership. Among television networks, Bravo, CNBC, Discovery, MTV2, andAdult Swim was shown to be the most viewed networks with Accord and Civic owners as well asthose in our target market. Lastly, the most popular websites were Yahoo!, aol.com, nbc.com,and YouTube.com. These findings will help to aid in the media schedule for the marketingcommunications plan.
    • Slide 13 Current Competition Introduction Situation Analysis Comm. Strategy Execution Honda is the 6th largest car manufacturer in the world Main competitors include: QuickTime™ and a decompressor are needed to see this picture.2.a.x. Direct Competitors Honda is the worlds largest manufacturer of motorcycles as well as the worlds largestmanufacturer of internal combustion engines measured by volume, producing more than 14million internal combustion engines each year. Honda surpassed Nissan in 2001 to become thesecond-largest Japanese automobile manufacturer. As of August 2008, Honda surpassedChrysler as the fourth largest automobile manufacturer in the United States. Honda is the sixthlargest automobile manufacturer in the world. In June 2008, during a weak economy and with high fuel prices, Honda reported a 1%sales increase. On the contrary, its rivals that include the Detroit Big Three and Toyota havereported double-digit losses. Hondas sales were up almost 20 percent from the same monthlast year. The Civic and the Accord were in the top five list of sales. Analysts have attributed thisto two main factors. First, Hondas product lineup consists of mostly small to mid-size, highlyfuel-efficient vehicles. Secondly, over the last ten years, Honda has designed its factories to beflexible, in that they can be easily retooled to produce any Honda model that may be in demandat the moment. Nonetheless, Honda, Nissan and Toyota, were still not immune to the global financialcrisis of 2008, as these companies reduced their profitability forecasts.Top Honda North America, Inc CompetitorsBig Three: General Motors, Ford, ChryslerNissan
    • ToyotaWorld’s ranking (Turnover):1. Toyota Motors2. General Motors3. Ford4. Volkswagen5. Daimler6. Honda7. Fiat8. Nissan Motors9. PSA Peugoet Citroën10. BMW11. Renault12. Chrysler13. Suzuki
    • Slide 14 Introduction Situation Analysis Comm. Strategy Execution EXTERNAL ANALYSISPotential Competitors Chinas automobile industry has been developing rapidly since the year 2000. In 2009, 13.83million motor vehicles were manufactured in China, surpassing Japan as the largest automobile maker.Moreover, with total sales of 13.64 million, China became the largest automobile market in the world forthe full year 2009, overtaking the United States. The consulting firm McKinsey & Company estimates that Chinas car market will grow tenfoldbetween 2005 and 2030. The main national industry group is the China Association of AutomobileManufacturers. China encourages the development of clean and fuel-efficient vehicles in an effort tosustain continued growth of the country’s automobile industry. India has seen a dynamic 17% annual growth in automobile production and 30% annual growthin exports of automotive components and automobiles. India produces around 2 million automobilescurrently. Total turnover of the Indian automobile industry is expected to grow from USD 34 Billion in2006 to USD 122 Billion in 2016. The largest automotive companies in India are Maruti Suzuki, HyundaiMotor India, Tata Motors and Mahindra & Mahindra. Tata Motors has just launched Tata Nano, thecheapest car in the world at USD 2200 Suzuki Motor Corp, Hyundai Motor Co, and Nissan Motor Co are making India theirmanufacturing hub for small cars.
    • Slide 15 Legal Ethical Factors Introduction Situation Analysis Comm. Strategy Execution  Government and compliance  Environmental Issues  Society  Community Participation  Social Welfare  Disaster Relief  Volunteer Activities  Value CommunicationsHonda Motor Co. prides itself on being one of the most law abiding and ethical companiesaround. To uphold its standards, Honda’s compliance involves the utmost respect for the lawand social norms. Honda continually abides laws and regulations for ethics. Honda also valuesenvironmental protection, such as the proper processing of waste and pollutants, the efficientuse of natural resources and recycling, and legally required measurements, recording, andreporting.
    • Slide 16 Legal Ethical Factors Introduction Situation Analysis Comm. Strategy Execution  Government and compliance  Environment  Society  Community Participation  Social Welfare  Disaster Relief  Volunteer Activities  Value CommunicationsSlide 17 Legal Ethical Factors Introduction Situation Analysis Comm. Strategy Execution  Government and compliance  Environment  Society  Community Participation  Social Welfare  Disaster Relief  Volunteer Activities  Value Communications Honda spends a great deal of time and money on contributions to society. Thecorporation strongly believes in community participation, social welfare, disaster relief, andvolunteer activities. Honda participates in the American Cancer Society Relay for Life, hosts RedCross blood drives, and partakes in civic reading circles for children and sea turtle preservationin Mexico. Honda also offers scientific research internships for high schools students as part of
    • the Harlem Children Society, hosts design and problem-solving trainings for youth in the FutureEngineers Center at UMASS, and participates in the Ride for Kids charitable motorcyclingprogram that supports the Pediatric Brain Tumor foundation. In assisting disaster relief, Honda contributed in excess of $1.5 million in supportassistance and products to aid recovery efforts and to help victims of 9/11 cope with theirlosses. In addition, American Honda also pledged $5 million to the American Red Cross DisasterRelief Fund in the wake of the devastating Hurricane Katrina.Slide 18 Economy / Politics Introduction Situation Analysis Comm. Strategy Execution  High Fuel Prices  Weak U.S. Economy  Financial Crises  Global Financial Crisis of 2008  Automotive Industry Crisis 2008-2010Slide 19 Economy / Politics Introduction Situation Analysis Comm. Strategy Execution  High Fuel Prices  Weak U.S. Economy  Financial Crises  Global Financial Crisis of 2008  Automotive Industry Crisis 2008-2010
    • Economy / Politics Introduction Situation Analysis Comm. Strategy Execution  High Fuel Prices  Weak U.S. Economy  Financial Crises  Global Financial Crisis of 2008  Automotive Industry Crisis 2008-2010Slide 21 Economy / Politics Cont. Introduction Situation Analysis Comm. Strategy Execution  Government bailouts for General Motors and Chrysler  Toyota Recalls of 2010  Cash for Clunkers Car Allowance Rebate System  Results: o 690,114 dealer transactions with Honda accounting for 13.0% of sales o #2 Selling Car Honda Civic o Led to gain in market share for Japanese and European manufacturers at the expense of American car makersSlide 22
    • Economy / Politics Cont. Introduction Situation Analysis Comm. Strategy Execution  Government bailouts for General Motors and Chrysler  Toyota Recalls of 2010  Cash for Clunkers Car Allowance Rebate System  Results: ▪ 690,114 dealer transactions with Honda accounting for 13.0% of sales ▪ #2 Selling Car Honda Civic ▪ Led to gain in market share for Japanese and European manufacturers at the expense of American car makersSlide 23 Economy / Politics Cont. Introduction Situation Analysis Comm. Strategy Execution  Government bailouts for General Motors and Chrysler  Toyota Recalls of 2010  Cash for Clunkers Car Allowance Rebate System  Results: ▪ 690,114 dealer transactions with Honda accounting for 13.0% of sales. ▪ #2 Selling Car Honda Civic ▪ Led to gain in market share for Japanese and European manufacturers at the expense of American car makers Multiple economic and political factors such as high fuel prices, the weak economy, andgovernment programs affect the Honda Motor Co. High fuel prices lead to an increase in publictransportation, car pooling, alternative forms of transportation, and an increased demand forfuel efficient cars. The weak U.S. economy has led to dramatic decreases in car sales worldwide.The most relevant economic factors that have recently affected the Honda Motor Co. are therecent financial crises such as the Global Financial Crisis of 2008 and the Automotive IndustryCrisis of 2008-2010. The Global Financial Crisis of 2008 was first triggered by the burst of theU.S. Housing Bubble that resulted in liquidity shortfall in the U.S. This resulted in the collapse oflarge financial institutions, the “bail out” of banks by the U.S. government, and downturns instock markets around the world. The Global Financial Crisis of 2008 is considered by economists
    • to be the worst financial crisis since The Great Depression in the 1930’s. The impact of therecession led to declining automobile sales and widespread Automotive Industry Crisis of 2008-2010. This affected European and Asian car manufacturers but was primarily felt by Americancar manufacturers. North American consumers then turned to higher quality, more fuel-efficientvehicles European or Japanese made. The financial crises also lead to government bailouts for General Motors and Chrysler. Inlate September 2008, Congress approved a more than $630 billion spending bill, which includeda measure for $25 billion in loans to the auto industry. These low-interest loans are intended toaid the industry in its push to build more fuel-efficient, environmentally friendly vehicles and tokeep the Detroit 3 out of bankruptcy and millions of lost jobs. A government implemented program that increased sales for Honda was the Cash forClunkers (Car Allowance Rebate System) that took place July 1, 2009- August 24, 2009. This $3billion U.S. Federal Scrappage Program intended to provide economic incentives to U.S.residents to purchase a new, more fuel-efficient vehicle when trading in a less fuel-efficientvehicle. The program was promoted as providing stimulus to the economy by boosting autosales, while putting safer, cleaner and more fuel-efficient vehicles on the roadways. Thisprogram resulted in 690,114 dealer transactions submitted with Honda accounting for 13.0% ofsales. The #2 highest selling car was the Honda Civic. This led to a gain in market share forJapanese and European manufacturers at the expense of American carmakers.Slide 24
    • Slide 25 Social Trends Introduction Situation Analysis Comm. Strategy Execution  Shift towards more economical, fuel efficient vehicles due to:  Frequently high gas prices  Increased environmental awareness  Green movement encouraging more fuel efficient transportation  Carpooling  Public Transportation  Alternative transportation (bikes, skateboards, etc.)  Most viable solution; increasing use of the hybrid engine As public awareness and the environmental sciences have improved in recent years,environmental issues such as sustainability, ozone depletion, and global warming have arisen,among many others. Along with the growing concerns over the environment, the recession hasalso greatly impacted social trends relating to the automobile industry. Due to these growingissues, there has been a noticeable shift toward more economical, reliable, and more fuel-efficient vehicles. Global warming and the consumer and statutory requirements for cars with higher fuelefficiency have led to major upheavals and changes in the automotive industry, especially in theUnited States, where average fuel economy is the lowest in the developed world. The frequentlyhigh price of gasoline has driven consumers demand toward smaller, more fuel-efficientvehicles. In addition, environmentalists have become more influential in American politics andhave spearheaded numerous U.S. environmental laws, including the Clean Air Act and theformation of the US Environmental Protection Agency in 1970. Being that the US is responsiblefor 2/3 of the world’s oil consumption sector, it has greatly affected the US automobile industry.According to MSNBC, research by the consulting firm CSM Worldwide shows that Americanconsumers preferred large cars and trucks up through 2007. By supplying that demand, and notfocusing on smaller, more fuel-efficient cars, the New York Times reported that American carmanufacturers are ill prepared to fill the demand created for more fuel-efficient cars.Companies that have maintained their smaller product lines such as Japanese automakersToyota and Honda are better positioned to maintain profits over the short term. Increased fuelefficiency standards, a result of global warming concerns, have also put American car
    • manufacturers in a competitive bind while they rebuild their portfolio of smaller, more fuel-efficient cars. In recent news, Hummer, the expensive, notorious gas guzzling, army tankresembling truck, has failed to find itself a company buyer and the company has completelyfolded. This validates the social trends towards smaller, more fuel efficient, and economicalautomobiles. In response to these social trends, companies have started to invest huge amounts ofmoney into the development of advanced alternative fuel vehicles. The concept of hybrids hasemerged as the most viable solution to deal with these problems and is gaining immenseamounts of attention from the major industry players.Slide 26 SWOT Analysis Introduction Situation Analysis Comm. Strategy Execution • Decreased R & D • Innovation • Decreased SG&A • Brand Name Strengths Weaknesses Opportunities Threats • Focus on Fuel efficiency • Economic Slowdown • Toyota recalls • Raw Material Costs3.a.i. Strengths Honda’s brand image is a clear strength within the company. One piece of evidence fortheir brand dominance is that Honda is the only automaker with four vehicle models claimingthe number one spot in JD Power & Associates Customer Satisfaction Survey, in the same year.Honda’s brand is valued at a whopping $19.079 billion, and is growing year on year. The brandis positioned as the automaker that is most fun, safe and environmentally conscious, a claimbacked by unmatched technological resources. Technology is also a clear strength of Honda automobiles. As explained in the situationanalysis, patented technologies support and solidify the brand’s position. The CVT, IVTEC,Hybrid IMA, VCM, SH-AWD, and Fuel Cell technologies are all revolutionary, patentedinnovations that produce industry leading fuel economy while delivering performance and fun.Honda’s Crash Compatibility body has proven extremely safe even beyond strict industrystandards. Honda supports its image of fun, safe and environmentally friendly by keeping theirautomobiles on the cutting edge of each of these categories.
    • Slide 27 SWOT Analysis Introduction Situation Analysis Comm. Strategy Execution • Innovations • Brand Name • Decreased R & D • Decreased SG&A Strengths Weaknesses Opportunities Threats • Focus on Fuel efficiency • Economic Slowdown • Toyota recalls • Raw Material Costs3.a.ii. WeaknessesDue to the loss of operating income during the economic downturn, Honda took on a newstrategy calling for substantial cost cutting. Top management decided to heavily cut spending inboth research and development (R&D) and sales, general and administrative expenses (SG&A).This strategy has limited Honda’s resources in several aspects of the marketing mix includingpromotion and product innovation. These elements of the mix will be adversely affected, atleast in the short-term. (See Financial Health , below for a detailed financial report.)Cutting R&D expenses could lead to a slowdown in innovations to new Honda models. Asmentioned in the internal situation analysis, Honda’s mission and position is heavily focused onconstant innovation. The mission statement explicitly states; “Honda focuses on the innovationof their products to better improve mobility and benefit society." Due to R&D’s critical role inHonda’s competitive advantage, decreased resources available to innovate new models mayprove to be a substantial weakness in upcoming years. However, as noted earlier, Honda has apowerful base of patented technologies, and a distribution process not easily matched bycompetitors.The reduction of SG&A expenses could lead to a decreased ability to gain pricey exposure. Withdiminished resources available to invest in promotion, Honda may have to look to less priceymeans of exposure. However, as mentioned in the situation analysis, Honda currently has apowerful industry lead in terms of brand image. Options for budgeting and exposure techniqueswill be explored later in the report.
    • Slide 28 SWOT Analysis Introduction Situation Analysis Comm. Strategy Execution • Innovations • Decreased R & D • Brand Name • Decreased SG&A Strengths Weaknesses Opportunities Threats • Focus on Fuel • Economic Slowdown efficiency • Raw Material Costs • Toyota recalls3.b. Opportunities and ThreatsHonda’s major opportunities and threats, as identified by the situation analysis, are heavilyrelated to a volatile economic climate. The financial section of the internal analysis mentionsthat the Chinese and Indian markets have fully recovered. These healthy markets could createboth opportunities and threats for the Honda automobile industry. The financial data alsoindicates a negative change in currency effects, which has proven detrimental and is still asubstantial threat. Our social trends section indicates changing value of fuel economy amongour consumer base, which is also important for Honda to note, as is the current situation withToyota. Since the Toyota Recall incident of 2010, this company’s brand equity has decreasedimmensely. Considering that Toyota is one of Honda’s “Big 3” Competitors, Honda may be ableto capitalize and gain market share.3.b.i. Opportunities The Financial Health and Potential Competitors sections discuss the recent upturn ofChinese and Indian economies. These markets could prove very beneficial to Honda. SinceChina’s recovery, demand has risen significantly and is expected to increase from 6.3 millionunits in 2007 to 12 million in 2010. Demand in India is also up, and vehicle production is
    • expected to double over the same period. Honda looks at this as an opportunity and has takeninitiative by building a second plant as well as expanding on its existing plant in India. They hopeto take advantage of the situation by localizing operations. This strategy is typical of Honda, andpart of their mission to “remain globally efficient,” as discussed earlier in the internal analysis.The current political and economical climate has produced changes in consumer’s value of fueleconomy. Increased emissions regulations, for example, indicate an upward shift inenvironmental concern. Reduced disposable income has affected consumer’s willingness to payfor travel. These shifts have created a consumer need for more affordable and efficient vehicles.Demand for hybrid cars is expected to expand to 4 billion units by 2015. Our technology sectionexplains exactly how and why Honda is the market leader in fuel efficiency, and how they planto maintain and expand their lead. Honda’s position at the cutting edge of fuel efficiency willbe a great opportunity as consumer attitudes continue to shift in this direction. Toyota’ssituation is also potentially a significant opportunity. When a crisis such as this recall hits acompetitor, there is an important ethical question of whether or not to attack. Whether Hondadoes or does not decide to take advantage, a major competitor losing brand equity in suchfashion could be inherently beneficial to Honda’s image and market share.Slide 29 SWOT Analysis Introduction Situation Analysis Comm. Strategy Execution • Innovations • Decreased R & D • Brand Name • Decreased SG&A Strengths Weaknesses Opportunities Threats • Focus on Fuel efficiency • Economic Slowdown • Toyota recalls • Raw Material Costs
    • 3.b.ii. ThreatsWhile China and India’s economic situations could prove to be beneficial, they are also apotential threat. While demand for Honda has risen in China, demand for competitors has risenas well. Emerging Chinese and Indian car manufacturers are important competitors to note. In2008 China surpassed the United States as the second largest automobile maker, after Japan.The competitive threat of Chinese and Indian automakers could become much stronger as theireconomic climate continues to improve. Our financial data indicates that the current economic climate of the US and Europe isstill problematic. While the US is considered to be in recovery, sales continue to fall. Europe’sauto market has presumably hit rock bottom and expected to see recovery soon. While theworst is forecasted to be over, these increasingly volatile markets must be monitored closely.Changing currency effects, particularly yen vs. the US dollar have proven to be detrimental toHonda. Along with the economic downturn, the yen has significantly appreciated over the dollaras recently measured. These effects may prove problematic, as they have affected the pricingand cost of materials adversely.Slide 30 Communication Strategy Introduction Situation Analysis Comm. Strategy Execution
    • Slide 31 Target Market Introduction Situation Analysis Comm. Strategy Execution  Primary Market  Middle and Upper socio economic classes  Financially stable  Desire to purchase a vehicle  Style conscious  Considers value  Secondary Market  Entry-Level buyers  Desire an affordable, yet stylish vehicle  Tertiary Market  Bloggers, those who participate or view online diaries, podcasts, or other forms of social media  Important to influencing the perception of brands5.a. Target MarketsHonda’s target market is characterized by consumer attitude, behavior, and lifestyleinformation. However, there are other criteria that need to be considered a valid segment forthis market. These criteria include age, professional status, education, income, and theactual/potential need for transportation. Honda largely targets individuals who are matured,educated, have a profession, but are still conscious of pop culture image and style trends.Honda produces vehicles that meet the demands of this lifestyle, creating cars of aestheticappeal and value. Honda also targets those who have a professional status because they attainthe buying power to purchase automobiles. According to secondary research found in theHonda Training Manual 2010, average income of Honda buyers ranged from $35,000 – over$100,000. The most affordable vehicle that Honda carries starts at $20,000. Lastly, Hondatargets those who have a need for their products, which are potential automobile consumers.Of these potential buyers, Honda targets those who desire a car that is fun, safe, andenvironmentally friendly.Honda currently targets sociable, success-driven consumers that have active lifestyles and arestyle and image conscious, yet intelligent and value-savvy. Honda has identified two broadtarget markets that fit these characteristics. Honda has named their first market “YoungProfessional Couples.” These couples are Generation Y newly weds, with no children, and earnof average household income of $70,000. Young Professionals have thriving careers and areenjoying the benefits of “couple hood.” Honda’s second target market is “Older Professional
    • Couples.” These couples are Baby Boomers, earning a $90,000 household income, and havegrown children that have moved away. Older Professionals are retired and beginning theirsecond careers. Honda believes young couples are needed to pilot the next generation of thecompany’s automobiles, while older couples are loyal Honda consumers they must nurture.Honda’s primary markets are individuals in middle and upper socio economic classes, financiallystable, and desire to purchase a vehicle. They are 25-34 year old individuals who havegraduated from college, and are now past entry levels in their professions. They are styleconscious, and consider value a priority in their automobile purchases.Slide 32 Target Market Introduction Situation Analysis Comm. Strategy Execution  Primary Market  Middle and Upper socio economic classes  Financially stable  Desire to purchase a vehicle  Style conscious  Considers value  Secondary Market  Entry-Level buyers  Desire an affordable, yet stylish vehicle  Tertiary Market  Bloggers, those who participate or view online diaries, podcasts, or other forms of social media  Important to influencing the perception of brandsHonda’s secondary market consists of Entry-Level buyers. They are individuals ages 18-25 thathave not yet entered their first professional career. Their parents often act as cosigners on loanssince they do not have the funds available yet. They desire an affordable, yet stylish vehicle toenter the young professional stage in their lives. To gain more insight on Honda, primaryresearch conducted at San Diego State University surveyed 150 students to determine theperception of their brand. Results showed that among the other companies Honda rankednumber 1 for Safety (38%), Fun (36%), and environmentally consciousness (48.7%). Theresearch also showed that Honda ranked number 1 overall among competitors (42.7%). A LikertScale was also included in the survey having respondents rank Honda cars from 1 (Weak) to 6(Strong) based on certain attributes. On Average, Honda scored a 4 for Fun, 5 for Safe, 6 for FuelEfficient, 5 for stylish, 5 for value, and 5 for great resale value.
    • Slide 33 Target Market Introduction Situation Analysis Comm. Strategy Execution  Primary Market  Middle and Upper socio economic classes  Financially stable  Desire to purchase a vehicle  Style conscious  Considers value  Secondary Market  Entry-Level buyers  Desire an affordable, yet stylish vehicle  Tertiary Market  Bloggers, those who participate or view online diaries, podcasts, or other forms of social media  Important to influencing the perception of brandsSlide 34 Target Market Cont. Introduction Situation Analysis Comm. Strategy Execution Jeunes Diplômés After analyzing data, our team has decided to target the older collegiate and entry levelprofessional market, with an age range of 20 to 28 and an annual income range of $30,000 to$65,000. Honda caters to all aspects of this target market’s desires through its fun, safe, andenvironmentally conscious campaign. According to research, Honda is already a top rankedbrand in this segment’s evoked set. This market has strong potential for a campaign that haslongevity and flexibility. By targeting this young market, Honda can create a strong positivebrand image that will stay with them well into the future. This brand image will make thembrand loyal as the years progress.
    • Slide 35 Target Market Cont. Introduction Situation Analysis Comm. Strategy Execution Customer Profile: JD 1. Age: 22 2. Location: San Diego, CA 3. Education Level: College Senior (Last Semester) 4. Job: Internship at a small investment firm 5. Interests: Television, movies, learning French 6. Hobbies: Playing guitar, photography, following Pro Sport fantasy leagues What he’s thinking right now: What he’s worried about right now: Honda’s primary market is individuals in middle and upper socio economic classes,financially stable, and desire to purchase a vehicle. These individuals have graduated fromcollege, and are now past entry levels in their professions. They are style conscious, andconsider value a priority in their automobile purchases. Honda’s secondary market is what theycall Entry-Level buyers. They are college students that have not yet entered their firstprofessional career and their parents as cosigners on loans. Honda knows college students aregenerally cash-challenged, so the Civic, and often Certified Pre-Owned Civics are the cars thatappeal to and are marketed to that demographic. Advertising content is designed to appeal to18-25 year olds, with appropriate graphics and verbiage. They desire an affordable, yet stylishvehicle to enter the young professional stage in their lives. Honda’s tertiary market includes those who contribute to blogs, online diaries, podcasts,twitter.com, facebook.com, or other forms of social media. The Internet has become the mostpopular medium for information seeking and social media popularity is soaring simultaneously.According to doshdosh.com people are likely to solicit advice from blogs, etc. and follow theiradvice. Therefore, it is important that Honda cater to these targets in order to maintaina good brand image.
    • Slide 36 Target Audience Introduction Situation Analysis Comm. Strategy Execution  Target Market + Others reached via marketing communications, to include:  General press/ Automotive specialty press  Media companies  Bloggers  Honda Staff5.b. Target Audience Our target audience consists of members of our target market as well as otherindividuals and groups we plan to communicate with via marketing communications. Our targetmarket are older undergrads, recent graduate students and young entry-level professionalslooking for their first car, as a right of passage when they enter this new life stage. Othermembers of our target audience consist of the general press and the press specialized in cars,media companies, bloggers, and Honda salesmen and employees. It is vital that we reach all ofthese groups in order to effectively deliver our messages, maintain a strong image that willresonate with the entire target audience and most importantly, the target market. We have decided to target employees, press, and bloggers in order to create an ongoingcycle of information that will effectively reach our target market. By reaching these membersthey will spread the word about Honda and we need to make sure they do so in a positive way.We have to target the press and the media because we want them to talk about the company. Itis a good way to communicate efficiently and for free. Reaching these individuals will permit usto gain attention from our target market more easily, efficiently and effectively. In order to capture the attention of this target audience, we plan on creating pressreleases for the media and maintaining and improving relationships with Honda employees andsalesmen. Firstly, the media receives a lot of demands everyday; they are often very busy andare going to pay attention only to clarified press releases. Working quickly and proactively isimperative. Journalists tend to report the first information they get. The media should be givenas much information as possible and we must be able to deliver valuable, accurate informationin a timely fashion. Secondly, the company’s relationship with its employees and salesmen areessential in maintaining a positive reputation. Keeping good relations and providing a pleasantwork environment within the company is fundamental to Honda’s success. In order to take advantage of our economies of scale to work quickly and efficiently, weare going to spread the information to the media only. In fact, the media will keep spreading the
    • message to the entire world, so bloggers will get the information and use it for their blogs. Indoing this, we will be able to reach all of our target audience easily and rapidly.Our target audience is going to aid the delivery of our new campaign to the target market. Themedia, the bloggers and the employees are primordial targets if we want our campaign to be asuccess.Slide 37 Communication Objectives Introduction Situation Analysis Comm. Strategy Execution  Brand Image  Build the brand image amongst the target market  Focus on communicating specific values  Fun, Safety, Environmental friendliness  Media  Print, streaming video, direct marketing, internet, outdoor  Cause Marketing  Support a cause relevant to our target market6.a. Communication ObjectivesOur primary communication objectives are to increase the members of our target audience whoperceive Honda cars as #1 in fun by 23.5%, safety by 21.3% and environmental friendliness by14.4%. Since 36% of our respondents ranked Honda number one for fun, 38% in safety, 48.7% inenvironmental consciousness, and 42.7% overall, we feel that our target brand image increasesare appropriate. We will implement our plan and reach our objectives within the 2.5-year life ofthe campaign.
    • Slide 38 Communication Objectives Introduction Situation Analysis Comm. Strategy Execution  Brand Image  Build the brand image amongst the 18-24, educated market  Focus on communicating specific values  Fun, Safety, Environmental friendliness  Media  Print, streaming video, direct marketing, internet, outdoor  Cause Marketing  Support a cause relevant to our target marketSlide 39 Communication Objectives Introduction Situation Analysis Comm. Strategy Execution  Brand Image  Build the brand image amongst the 18-24, educated market  Focus on communicating specific values  Fun, Safety, Environmental friendliness  Media  Print, streaming video, direct marketing, website, outdoor  Cause Marketing  Support a cause relevant to our target market In order to reach our target brand image increases, we will illicit advertising, publicrelations, direct marketing and the internet. We plan to coordinate our marketing and publicrelations efforts to create a synergistic effect that will improve Honda’s overall brand imagemore than either if implemented alone. We will also construct a website and social mediaplatform dedicated to supporting the campaign and delivering information about Honda’ssuperiority with respect to our image objectives. We believe these media will coordinate tomeet our objectives most effectively.
    • We must create and place advertising messages to appropriately reach our targetmarket. For this purpose, we will place advertisements on media we have identified asattractive to 18 to 24 year olds with at least some college experience. These media must alsohave a tendency to attract consumers likely to purchase Honda or competing brand’s modelsdirected toward this demographic. For this purpose, we will place ads on magazines, websitesand TV shows which have both a high readership in the 18 to 24 year old educated market, andhave shown a high proportion of audience members who have purchased models such as theCivic, Accord, Toyota Camry and the Ford Mustang. By doing so, we believe we will reach a highfrequency of our target market, and effectively increase their support of the Honda image. By using the Internet, a medium that the collegiate market are comfortable with andprefer, we hope to increase the effectiveness and reach of our messages. We will also useadditional media to support, bring more visitors to and generate more interest in our Internetcampaign. By using these additional media we will also generate buzz and create a viral effectleading to further interest in the campaign. Basing our campaign on the Internet will also be beneficial to our communicationobjectives, and will help reach our target audience more effectively. The Internet is increasinglyand definitively a preferred medium of our target market. According to a study by ClickZmagazine, 40 % of college students watch 10 or more hours of TV per week, while only 17 %watch 10 or more hours of TV. When asked which medium they would rather give up, morecollege also students said TV. However, the study also indicates; “Campaigns spanning morethan one medium are 50 percent more likely to get a response from college students and recentgrads.” This is why our campaign will include other media, which will direct consumers towardand bolster our online base. By using social media we plan to aid our communications as well as our budget goals.Today, 65% of college students are part of a social media network, making this media anessential platform for our campaign to reach. Social media is also an excellent choice for a smallbudget. This medium will be particularly beneficial to Honda in terms of budget, due to recentcuts in R & D expenditures. Social networking is also one of the top ways viral marketingcampaigns get started. This could prove particularly beneficial since “going viral,” is a majorcommunication objective of our campaign. Creating a “buzz” and trying to “go viral,” will be an essential part of our campaign forseveral reasons. Word of mouth is the number two way people find out about new websites,second only to search engines. 9 of 10 U.S. adult Internet users share content with others viaemail. 88% of internet users share humorous content, jokes and cartoons. This may be a reasonto use humor appeals in our creative strategy. In order to go viral, we will have to effectively getposted on blogs and message boards, use optimized press release, direct email marketing andsocial media websites. Going viral will be extremely beneficial to our campaign, and couldgreatly increase awareness interest and recall.
    • Slide 40 Communication Objectives Introduction Situation Analysis Comm. Strategy Execution  Brand Image  Build the brand image amongst the 18-24, educated market  Focus on communicating specific values  Fun, Safety, Environmental friendliness  Media  Print, streaming video, direct marketing, internet, outdoor  Cause Marketing  Support a cause relevant to our target market Because our objectives relate to brand image we feel that public relations is essentialand necessary to create synergy in our campaign, as effective public relations are key toestablishing a positive, strong brand image. Since we are not targeting the general public, but anarrow demographic segment, we have decided that cause related marketing is an efficient andeffective means of public relations. Association with a cause has proven to increasedifferentiation and generate favorable publicity. 80% of consumers say they have a morepositive image of companies that support a cause. For example, BMW’s sponsorship of theSusan Komen Breast Cancer Drive led to a significant increase in sales and brand image.Wendy’s, Aspirin, Visa and Evian have all seen similar results after implementing cause-marketing programs. Cause marketing is also intended to be a very targeted form of PR, whichwill prove beneficial if tailored to our target market and our communications objectives.
    • Slide 41 Marketing Objectives Introduction Situation Analysis Comm. Strategy Execution  No specific sales/ market share objectives  Offer little guidance for promotional development  Marketing communications do not have an immediate impact  Consumers must be in the market  Passive approach  Focus on creating favorable predispositions  Make Honda #1 among all auto brandsSlide 42 Marketing Objectives Introduction Situation Analysis Comm. Strategy Execution  No specific sales/ market share objectives  Offer little guidance for promotional development  Marketing communications do not have an immediate impact  Consumers must be in the market  Passive approach  Focus on creating favorable predispositions  Make Honda #1 among all auto brands
    • Slide 43 Marketing Objectives Introduction Situation Analysis Comm. Strategy Execution  No specific sales/ market share objectives  Offer little guidance for promotional development  Marketing communications do not have an immediate impact  Consumers must be in the market  Passive approach  Focus on creating favorable predispositions  Make Honda #1 among all auto brands6.b. Marketing Objectives According to Honda senior VP of Marketing, Steve Center, Honda’s corporate objectivesfollow a passive structure, in that they do not set specific market share goals for any given year.Instead, they allow the market share to “fall where it will” based on the volume of the market inany given year. This passive approach allows Honda marketers to focus primarily oncommunications objectives relating to brand image. According to Center Honda’s primary goal is“to be number 1 in rank among all auto brands.” Honda is, in fact, currently viewed as number 1 in fun, safety and environment, whichhas a mental impact on consumers who value these characteristics. In terms of Environment,Honda was rated “leader in alternative fuels,” by DYG (Daniel Yankelovitch Group,) and “mostcommitted to the environment” by GFK customer research. Proprietary survey research hasalso placed Honda as number one in fun and safety within cars of its class. These factors willhave an impact on market share because consumers with this perception will look to Honda firstin their evoked set when it comes time for a new car purchase. Our primary research supports the fact that our niche holds similar perceptions to theoverall market and has allowed us to set specific benchmarks and objectives. When asked torank Honda cars among top competitors, 36% of our respondents ranked it number one for fun,38% in safety, 48.7% in environmental consciousness, and 42.7% overall. These percentagesrepresent that Honda holds the number one spot in each of the criteria. After analyzing trendsin our target market’s perception of Honda compared to top competition we have reachedspecific benchmarks for improvement. We will increase the lead in safety by 23.5%, for a total of
    • 61.5% of the respondents ranking Honda number one. We will increase the lead for fun by21.3%, for a total of 57.3%, and environmental consciousness by 14.4%, for a total of 63.1%.By increasing Honda’s lead in these criteria among our target market we can inherently boostmarket share. We plan to “increase the gap” of Honda’s current lead in consumer perception, byconverting the attitudes of consumers in the collegiate market who do not already hold Hondaas number 1, and strengthening the beliefs of those who do. By accomplishing this, we canbring Honda to the forefront of our markets evoked set when it comes time for a new purchase,which can be particularly beneficial for the older colligates, who are entering a new life stageand may consider new cars in the near future. We plan to accomplish an increase in this gap bythe end of our campaign, and have identified a sequence of events we must take to do so.Slide 44 Primary Research Social Media Twitter To conduct primary research we chose to use a survey vehicle to gather opinions andpreferences on different auto manufacturer brands and the values that consumers associated with eachbrand (See Appendix 4.a.1.). We then sampled two hundred students at San Diego State University using appropriatestandardized marketing research methods. We compiled the data into the data organization and analysisprogram, SPSS (See Appendix 4.a.2.) Our analysis of the data provided three key results: 1. Honda is the top brand ranked #1 in the Fun category, at 36% 2. Honda is the top brand ranked #1 in Safety, at 38%
    • 3. Honda is the top brand considered #1 in Environmental Friendliness, at 49% Our results with these values proved consistent with the information our client Honda Motor Coprovided us. Their prediction from their own research was that Honda is ranked by consumers as beingthe number one automobile that is considered, fun, safe, and clean (environmentally friendly). From ourown primary research, we found this to be true, even when transferred specifically to the San Diego StateUniversity market. Other interesting results we found were that college students placed a high emphasis on price,fuel economy, and reliability as being key features that are most important in an automobile.Slide 45 Big Idea Introduction Situation Analysis Comm. Strategy Execution  “Consumer Sweet Spot”  Recently entered or approaching a new life stage  Cognitive dissonance  Honda will help them transition  Allow the driver to be both responsible and free spirited  Supporting evidence  Technology  Fun = free spirit  Safety/Environment = responsible Our advertising must focus on increasing our target market’s image of the Honda brand,in terms of fun, safety and environment. Messages must relate to 18 to 24 year old consumerswith at least some college experience. In order to reach this target market we will explore thesegment’s psychographic profile, and design our messages accordingly. Certain insights about this group will help us tailor messages to efficiently communicatewith the market. These consumers are either approaching, or have recently entered a new lifestage as college graduates. For many of them, a new car will be their rite of passage after
    • graduating and entering the full time work force. They will be feeling some degree of cognitivedissonance, as the new life stage may be quite different and present them with entirely newchallenges. We plan to leverage their anxiety, and use it to construct a campaign that portraysHonda as a brand that will help them through this transition.Slide 46 Big Idea Introduction Situation Analysis Comm. Strategy Execution  “Consumer Sweet Spot”  Recently entered or approaching a new life stage  Cognitive dissonance  Honda will help them transition  Allow the driver to be both responsible and free spirited  Supporting evidence  Technology  Fun = free spirit  Safety/Environment = responsibleWe want consumers to look at Honda as the friend that will accompany them and help themtransition into their new life stage, no matter what the circumstances. The consumer must feelassured that they can be professional, productive members of the work force and still be thesame free spirits they were in college. Honda is the brand that will allow them to be bothprofessional and free spirited.
    • Slide 47 Big Idea Introduction Situation Analysis Comm. Strategy Execution  “Consumer Sweet Spot”  Recently entered or approaching a new life stage  Cognitive dissonance  Honda will help them transition  Allow the driver to be both responsible and free spirited  Supporting evidence  Technology  Fun = free spirit  Safety/Environment = responsible We will support this message with specific evidence with respect to Honda features. Wewill point out that Honda has continuously proven #1 in safety and environment. Thesefeatures relate to the idea of being a responsible member of society. We will also highlight thecontinuously innovative performance technology that makes Honda #1 in fun. These featureswill allow the consumer to be a free spirit. We will tell the consumer specifically how Hondaallows them to be both free spirited and responsible, which will make our messages believableand actionable. We must also address certain industry trends, when creating our message delivery. Dueto the economic downturn and an increased focus on “green” initiatives, consumers havebecome more concerned with fuel efficiency. As a result, fuel-efficient cars are in high demand,and Hybrid purchases predicted to reach record highs in the coming years. We must takeadvantage of this trend by highlighting Honda as the leader in environmental friendliness. We must stay focused on fun, safety and environment, and design messages that willincrease our target market’s image of Honda in these areas. We must highlight specific featuresthat assert Honda’s dominance. We believe our creative idea will complement this objective,and will lend itself to messages that will effectively reach the target market.
    • Slide 48 Media and Creative Strategy Introduction Situation Analysis Comm. Strategy Execution6.c. Marketing Communications Objective Sequence In order to create awareness of our campaign amongst our target audience, we willbegin with Outdoor, Internet, and print advertising. These advertisements will be mostly visual,and contain a simple message, they will not contain argumentative or benefit related copy. Theobjective of this initial advertising is to reach a 90% awareness of the new campaign among ourtarget audience. At this stage, we will not try to change minds, only to build awareness (SeeAppendix 6.c.1.).
    • Slide 49 Print Media Introduction Situation Analysis Comm. Strategy ExecutionWe used data from GfK Mediamark Research & Intelligence to determine which media vehicleswe would use for marketing communications. Using MRI we have identified media attractive to our target market, 18 to 24 year oldswith at least some college experience. These media vehicles ALSO have a tendency to attractconsumers likely to purchase Honda models or competing brand’s models, that are marketedto our population of interest. For this purpose, we will place ads on magazines, websites and TVshows which have both a high readership in the 18 to 24 year old educated market, and haveshown a high proportion of audience members who have purchased models such as the Civic,Accord, Toyota Camry and the Ford Mustang. By doing so, we believe we will reach a highfrequency of our target market, and effectively increase their support of the Honda image.The following magazine vehicles have a significantly large readership from our population ofinterest (18-24, higher education) and a significant population of readers who have purchased aHonda Civic, Accord, Toyota Camry or Ford Mustang in the past 6 months;* Elle* New Yorker* Lucky* Spin* Men’s Journal* Wired* Motor Trend* Maxim
    • Slide 50 AD 1 NO COPY We will implement print ads throughout the campaign in order to assist ourcommunication objectives. In order to maintain the strategy stated in our “big idea,” the adsstress fun, safety and environment, while illustrating Honda as the brand that will help ourtarget market make the transition into a new life stage as college graduates. We will alter thecopy of the ads at each sequential stage of the campaign, in order to most effectively matcheach corresponding objective. We will place the ads in magazines that have demonstrated ahigh proportion of readers that are 18-24 and have a tendency to buy automobile modelsdirected to our market. The idea of the ads is to create the image of two different worlds meeting on one page.A model roughly the age of our target market stands at the center of the page, in front of one ofthe Honda cars directed to our target market. The page splits in half, on one side the model isportrayed as a professional in business attire and the background relates to the business world.On the other side the model is portrayed as free-spirited, laid back and fun. These ads areintended to align the Honda car with the ability to be both free spirited and professional. We will release our print ads early on in the campaign, in order to aid a 90% awarenessamong our target market. These ads will include no copy, as their objective is only to makeviewers aware of the Full of Life campaign, not to convince them of superiority.
    • Slide 51 Ad 2 no copyAnother Print ad with similar theme, still with no copy.Slide 52 BILLBOARD
    • We will use the same copy-less ads used in print on billboards. These billboard advertisementswill be placed in high populated college areas. We will implement them early in the campaign,as a “teaser” to the remaining media action. These areas that we place billboards willcorrespond with the areas we plan to visit during the green fleet contest, (to be discussed in alater slide.) Advertisements will contain the same image as the magazine advertisements inorder to achieve reach and frequency within our target market. It will cost approximately$8,190,000.00. We will measure the effectiveness of this outdoor medium we will use SimmonsMarketing Research Bureau which provides demographic data, and exposure. (See Appendix9.g.1.)Slide 53 Social Media9.a. Internet & Interactive Media The Honda Full Of Life web site, FullOfLife.com, will act as an online extension of thecampaign. This digital medium is meant to achieve several objectives to include: featuringspecific qualities of Honda such as fun, safe and environmentally friendly technology,connecting fans and consumers, leveraging social media, and promoting other aspects of thecampaign, such as the Green Fleet contest. Ultimately, the web site will be built to increasebrand image, generate interest, and create buzz for the Full Of Life campaign (See Appendix9.a.1.). The content for FullOfLife.com will cover overviews of the campaign and the overallHonda brand. Social media tools will be leveraged throughout the site. Users on the site will beable to connect with Honda and other consumers on different levels of interactivity under the
    • Media Center—YouTube for videos, Facebook for pictures, Twitter for consistently streamingupdates, and other elements such as wallpapers and games. Other content includes information about Honda’s upcoming contests and events,options for newsletter sign-ups, and an updated blog. The blog itself will document theexecution stages of the campaign. News surrounding the campaign will also be available on thesite. All content is created to encourage users to participate and become part of the Full Of Lifecampaign. The site itself will reflect our target market, collegiate students. Like other Honda websites, FullOfLife.com will be clean and organized for a better user experience. However, we willtake a more liberal and youthful approach when it comes to the style and content of the site.Transparency is key; we want our consumers to feel like this site is a major congregation ofother young Honda buyers. We will measure the success of our Internet and social media initiatives using analyticssoftware, trackable URLs, direct request, and keyword search terms. Analytics software willmeasure the views, visits, and clicks of the user’s experience to evaluate the perception of theHonda brand. Trackable URLs show where visitors come from, and whether the visit originatedwith a banner or video player ad. That way, we will know which online ad buys are driving themost traffic to our website. Direct request and keyword search terms can also be a goodindicator of online brand value. We will use these metrics as an indication of brand value changeover the course of the campaign. After implementing these techniques, we will be able to measure the progress of ourinternet initiatives, the success of our internet and social media campaign. We will also be ableto determine which areas need improvement, and can then begin to optimize those areas.Slide 54 Internet Advertising Vehicles Introduction Situation Analysis Comm. Strategy Execution
    • We used data from GfK Mediamark Research & Intelligence to determine which media vehicleswe would use for marketing communications. Using MRI we have identified media attractive to 18 to 24 year olds with at least somecollege experience. These media vehicles also have a tendency to attract consumers likely topurchase Honda models or competing brand’s models, that are directed toward our populationof interest. For this purpose, we will place ads on magazines, websites and TV shows which haveboth a high readership in the 18 to 24 year old educated market, and have shown a highproportion of audience members who have purchased models such as the Civic, Accord, ToyotaCamry and the Ford Mustang. By doing so, we believe we will reach a high frequency of ourtarget market, and effectively increase their support of the Honda image. The following Internet vehicles have a significantly high visit-rate from our populationof interest (18-24, higher education) as well as a significant population of visitors who havepurchased a Honda Civic, Accord, Toyota Camry or Ford Mustang in the past 6 months;* Youtube.com•AolSports.com•NBC.COM•Yahoo.com•Facebook.com•Twitter.com
    • Slide 55 Media and Creative Strategy Introduction Situation Analysis Comm. Strategy Execution After we establish awareness, we will begin to implement streaming video in addition tothe media all ready in place. These advertisements will stress the specific benefits of Honda’ssafety features, fun factor and environmental friendliness. At this stage we will ad copy to theprint ads and focus on image building. We will not include argumentative or competitive copy.We will also create a website specific to the campaign, containing information about Hondasbenefits in terms of fun, safety and environment. Our objective during this stage of thecampaign will be to induce a 60% recall of our messages amongst the target market (SeeAppendix 6.c.2.). We will than launch a cause-marketing event in order to assist with recall objectives,while escalating brand image. Our first task will be to construct a press release introducing theevent, which will draw attention from the press, and in turn generate more awareness amongstour target market. By making our information timely, newsworthy and including keywords wecould more effectively become posted on blogs and message boards. This will increase theamount of sites linking back to our campaign, which will increase awareness, as well as searchrankings.
    • Slide 56 Paid Media Advertising Introduction Situation Analysis Comm. Strategy Execution Jersey Shore South Park Always Sunny in Philadelphia The OfficeWe used data from GfK Mediamark Research & Intelligence to determine which media vehicleswe would use for marketing communications. Using MRI we have identified media attractive to 18 to 24 year olds with at least somecollege experience. These media vehicles also have a tendency to attract consumers likely topurchase Honda models or competing brand’s models, that are directed toward our populationof interest. For this purpose, we will place ads on magazines, websites, networks and TV showswhich have both a high readership in the 18 to 24 year old educated market, and have shown ahigh proportion of audience members who have purchased models such as the Civic, Accord,Toyota Camry and the Ford Mustang. By doing so, we believe we will reach a high frequency ofour target market, and effectively increase their support of the Honda image. The following broadcast vehicles have a significantly high viewership from ourpopulation of interest (18-24, higher education) as well as a significant population of viewerswho have purchased a Honda Civic, Accord, Toyota Camry or Ford Mustang in the past 6 monthsTheir respective websites follow the same trend, as mentioned in the Internet section;* MTV (Jersey Shore)• Comedy Central (South Park)• NBC (The Office)• FX (It’s always Sunny in Philadelphia)
    • The statistics on T.V. show advertising prices have been evaluated using Ad Age’s Fall 2009 data.There are various shows to run commercials on; however our choices of The Office, JerseyShore, South Park, and Always Sunny, best solidify our targeted demographics. The four showsincorporate those who are between the ages of 25-35 and are within the $80,000-$120,000income bracket.Slide 57 Online Teaser Advertisement Introduction Situation Analysis Comm. Strategy Execution  The Other 9-5  Teaser commercial used in the summer months meant to entice viewers to visit the Full of Life website  Have target audience associate “positive feelings” with the Honda Brand  Exhibit the different lifestyles that JDs balance everyday
    • Slide 58 PRINT W/ IMAGE COPYDuring the next phase, in order to aid with the objective of 60% recall, we will include imagebuilding copy. This ad contains image-building copy, and will supplement the recall objectives of ourcampaign. The copy reads; “Honda’s IVTEC engine is more fuel efficient, and higherperformance than ever, allowing you to be a responsible member of society, and a free spirit.” Itstresses the specific benefits of Honda’s IVTEC technology, in terms of fun and environmentalfriendliness, with a message on strategy and relevant to the target market.
    • Slide 59 AD 2 COPY This is another ad with image-building copy, we will implement during the recall phaseof the campaign. The copy stresses the specific benefits of Honda’s safety features, and equatesthem with the ability to be responsible, and free spirited.Slide 60 Cause Marketing Introduction Situation Analysis Comm. Strategy Execution The Honda Full of Life Green Fleet Contest  Which University can design the most effective environmental-action movement  $100,000 budget  Incentives  $10,000 scholarship  Green Fleet edition Honda CRZ  Jack Johnson Concert at winning University  Events at competing universities  Webisode series to document team’s progress
    • 9.e.i. The Green Fleet Contest During the “Green Fleet Contest” contestants will compete to create the bestenvironmental-action movement. Individuals or student groups of 5 or less will submit a“Green Fleet” application in which they will explain how they would allocate a $100,000 budgetto most effectively raise environmental awareness and help improve the environment. A boardof judges will select five individuals or university-teams, based on the quality of their proposal.They will then have the opportunity to implement their movement, funded by Honda.Slide 61 Cause Marketing Introduction Situation Analysis Comm. Strategy Execution The Honda Full of Life Green Fleet Contest  Which University can design the most effective environmental movement  $100,000 budget  Incentives  $10,000 scholarship  Green Fleet edition Honda CRZ  Jack Johnson Concert at winning University  Events at competing universities  Webisode series to document team’s progress The winner will be the individual or group who best allocates the funds provided to the mosteffective campaign, which the board of judges will determine. The winning group will eachreceive a $10,000 scholarship, a Green Fleet edition Honda CRZ and an Jack Johnson concertat their University.
    • Slide 62 Cause Marketing Introduction Situation Analysis Comm. Strategy Execution The Honda Full of Life Green Fleet Contest  Which University can design the most effective environmental movement  $100,000 budget  Incentives  $10,000 scholarship  Green Fleet edition Honda CRZ  Jack Johnson Concert at winning University  Events at competing universities  Webisode series to document team’s progress In order to generate buzz, Honda will sponsor an event at each of the participatinguniversities. During the events, the “Green Fleet,” a group of green Honda automobilesequipped with emission reducing, performance and safety enhancing technology will be placedon campus. The fleet will consist of models targeted to our market, such as the Accord, Civic,and the new CRZ. Honda representatives will be stationed next to the green fleet, and will handout informational flyers about the contest, along with Honda key chains, and prompt studentsto sign the mailing list (See Appendix 9.e.i.1.). They will also be their to assist with questionsabout the cars themselves. We will send direct emails to members of the mailing list, withinformation about the “Full Of Life” campaign newsletters. There will be a kiosk in a central area on campus where students who join theFullOfLife.com website and/or Honda Facebook fan page. The kiosk will also explain thebenefits of a green life and overall, increase understanding of the Green Fleet contest. We will also create a press release in order to reach important members of our targetaudience (See Appendix 9.e.i.3.). We will draw bloggers attention, which will in turn feed thestory to the press. The press will issue stories about the contest, which will reach our targetmarket. The optimized press release will also increase search engine rankings, and increasetraffic to the website, where they will find information regarding all aspects of the contest, aswell as the rest of the “Full Of Life,” campaign.
    • Slide 63 Cause Marketing Introduction Situation Analysis Comm. Strategy Execution The Honda Full of Life Green Fleet Contest  Which University can design the most effective environmental movement  $100,000 budget  Incentives  $10,000 scholarship  Green Fleet edition Honda CRZ  Jack Johnson Concert at winning University  Events at competing universities  Webisode series to document team’s progress A “webisode reality series” featuring the five finalists will follow each as they embark on theirmission. These webisodes will give us an opportunity to take green fleet viral. We hope toincrease awareness and interest in the campaign, and follow brand image goals simultaneously.
    • Slide 64 Cause Marketing Introduction Situation Analysis Comm. Strategy Execution The Honda Full of Life Green Fleet Contest Cont.  Aligns Honda with two causes  Environment  Higher Education  Opportunity to go viral  Webisodes  Takes advantage of star power  Jack Johnson The goal of the Green Fleet contest is to increase awareness and recall for the "Full OfLife" campaign, and to increase the Honda brand image amongst the target audience. Thecontest will create a positive image through the movement itself, as cause marketing has provento increase differentiation, generate positive publicity and increase brand image in pastcampaigns, such as BMW, Wendys, Evian and Aspirin. The contest will also promote Honda’sspecific features in terms of fun, safety and environment. The contest will communicatemessages promoting the features that make Honda #1. It will also direct consumers back to the"Full Of Life" website, where they will be able to find all types of information regarding Hondafeatures, promotions, etc.
    • Slide 65 Cause Marketing Introduction Situation Analysis Comm. Strategy Execution The Honda Full of Life Green Fleet Contest Cont.  Aligns Honda with two causes  Environment  Higher Education  Opportunity to go viral  Webisodes  Takes advantage of star power  Jack JohnsonA “webisode reality series” featuring the five finalists will follow each as they embark on theirmission. These webisodes will give us an opportunity to take green fleet viral. We hope toincrease awareness and interest in the campaign, and follow brand image goals simultaneously.
    • Slide 66 Cause Marketing Introduction Situation Analysis Comm. Strategy Execution The Honda Full of Life Green Fleet Contest Cont.  Aligns Honda with two causes  Environment  Higher Education  Opportunity to go viral  Webisodes  Takes advantage of “star power”  Jack Johnson Jack Johnson will hold a concert at the winning university on earth day, and will meet with themembers of the winning group to personally congratulate them. We chose Jack Johnsonbecause his cultural meanings are directly in line with the objectives of the contest. He has aheavy fan base of 18-24 year old college students, and he has shown extraordinary vigor forenvironmental initiatives through contributions, charity concerts and even stepping up as thepresident of a Hawaiian environmental agency. Jack will also meet with the group tocongratulate them personally. The encounter will be showcased in the webisode series. Thisshould increase the likelihood of the webisode series going viral, exponentially.
    • Slide 67 Green fleet carsA traditional “Z” pattern banner-ad showing the actual “Green Fleet” of Honda vehicles that willbe visiting each finalist university
    • Slide 68 Green fleet FlyerThis is an Internet ad for the Green Fleet Contest. It follows the half & half theme of the Full ofLife campaign, but with a twist. The creative approach is designed to enhance interest andawareness for the contest, and follow the brand image goals of the campaign as a whole.The ad follows a “Z” pattern, with interest generating copy in the upper left, image in thecenter-right, and Tagline with call to action, starting in the bottom left.The interest-building copy reads; Earn a scholarship, Win a Honda, Bring Jack Johnson to youruniversity, Help save the environment.The image follows the concept of half & half, and aims to convince students to be a collegestudent, and an environmental crusader.The tagline; “You can be a student… and a member of Honda’s Green Fleet.”the call-to-action; “Find out how at Honda.com/greenfleet”The call to action encourages students to visit the website, where they will obtain furtherunderstanding;
    • Slide 69 Media and Creative Strategy Introduction Situation Analysis Comm. Strategy Execution We must than spark interest in our target market by utilizing star power, and promotingwith social media (See Appendix 6.c.3.). The target market must be comfortable with thiscelebrity, and they must embody cultural meanings that match the desired brand image of fun,safe and environmentally friendly. Social media will allow our market to communicate with eachother as well as the company, and find information related to the campaign. At this stage wehope to achieve a 50% interest among the target market.
    • Slide 70 Jack JohnsonA flier for the Jack Johnson Concert at the winning university. Again, following the half & halfcampaign theme for Full of Life.
    • Slide 71 Social Media Twitter9.b. Social MediaIn addition, all pages on our Full Of Life web site will contain a social media bar at the bottom.This will allow easy access to our social media accounts with Twitter, Facebook, and YouTubeand will make it very easy to become a Fan, Friend, or Follower (See Appendix 9.a.2.). All of oursocial media accounts will be aggregated. There will be a social media news feed on thehomepage of the Full Of Life website. This will allow users to easily reply to blogs, statuses, andupdates, as well as make their own.
    • Slide 72 Social Media9.b. Social MediaIn addition, all pages on our Full Of Life web site will contain a social media bar at the bottom.This will allow easy access to our social media accounts with Twitter, Facebook, and YouTubeand will make it very easy to become a Fan, Friend, or Follower (See Appendix 9.a.2.). All of oursocial media accounts will be aggregated. There will also be an aggregated social media newsfeed on the homepage of the Full Of Life website. This will allow users to easily reply to blogs,statuses, and updates, as well as make their own.
    • Slide 73 Media and Creative Strategy Introduction Situation Analysis Comm. Strategy Execution Our next step is to solidify understanding of our campaign (See Appendix 6.c.4.). In orderto do so we will turn to direct marketing. We will create a database by collecting info aboutmembers of our target market who have attended the cause marketing events, or viewed thewebsite, social media and other online advertisements. We will than send direct emails toapproving users including information and incentives which will stimulate requests for moreinformation, and draw more views to our online media. At this stage of the campaign we expecta 40% level of understanding among the target market.
    • Slide 74 E-Mail Marketing Introduction Situation Analysis Comm. Strategy Execution  Month: May  Sender: The Honda Green Fleet  Subject Line: Check out the season finale webisode for Honda’s Green Fleet Contest  Body: Green Fleet contest promotion, Honda new graduate car deals, featured webisodes, large graphic, landing page to Full of Life website and Green Fleet contest, trackable URL9.d. Direct MarketingOur direct marketing efforts will kick off with compiling mailing lists. Our Full Of Life website willprovide an easy-to-find, easy-to-sign up “Join our Mailing List!” feature on the homepage. Wewill also have Full Of Life volunteers at events, handing out promotional items such as Full OfLife reusable water bottles and key chains. In exchange for a promotional item, we will receivethe participants contact information and e-mail address.With our e-mail mailing lists, we will send out monthly newsletters that are timely, informative,promote the Full Of Life campaign, and offer special features.Some examples of our monthly emails are as follows:Month: AprilSender: Honda "Full Of Life"Subject Line: "Happy Earth Day! Get tips on being green, healthy and Full Of Life!"Body: Green Fleet contest promotion, Featured webisodes, Health and Environment, Quick Tips,Landing page to Full Of Life website, Trackable URLMonth: May
    • Sender: Honda "Full Of Life"Subject Line: "Congratulations graduate! Where will life Life take you now?"Body: Green Fleet contest promotion, Honda new graduate car deals, Featured webisodes,Large graphic, Landing page to Full Of Life website, Trackable URLLMonth: NovemberSender: Honda “Full Of Life”Subject Line: “We thank you for being apart of our Life! What are you thankful for this holidayseason?Body: Landing page to post a story/experience that has made you thankful on Full Of Lifewebsite, Green Fleet contest update, Trackable URL, Thanksgiving video message compilationfrom wide, diverse range of Honda employees and executives like custodian, factory worker,salesperson, general manager, HR, president, etc.We will measure the effectiveness of our direct marketing efforts using analytic software, withspecial attention to trackable URLs, landing pages, and posts and replies to our social mediaaccounts, especially to our active blog.
    • Slide 75 Media and Creative Strategy Introduction Situation Analysis Comm. Strategy ExecutionFinally, we will accomplish attitude change by furthering our direct marketing efforts, whilecontinuing our advertising strategy and directing as much traffic as possible to the web site. Atthis point, we will focus copy on asserting Hondas dominance, and will be competitive. At thisstage of the campaign, we hope to reach our final objectives of increasing the members of ourtarget market who perceive Honda as #1 in fun by 23.5%, safety by 21.3% and environmentalfriendliness by 14.4% (See Appendix 6.c.5.).
    • Slide 76 Ad1-competitive copy During the attitude change phase of the campaign we will alter the copy to becompetitive, in order to aid the objective of increasing the proportion of the target market whoperceives Honda as #1 in fun, safety and environment. In this ad, we alter the copy to be more competitive, in order to supplement theattitude change phase of our campaign, while promoting specific features supporting fun, safetyand environmental friendliness. The copy reads; With features that constantly prove Honda #1in fun, safety and environmental friendliness, you can be a responsible member of society…and a free spirit. We will measure the success of our print ads at each level of the campaign. In order todo so we will evaluate total audience or readership. This will include total number of primaryand pass-along readers measured by circulation average per issue. By doing so we will be ableto more effectively evaluate how the print ads are contributing to our communicationobjectives.
    • Slide 77 Media Schedule Year 3: 2013 Medium Vehicle January February March April May June July August September October November December Print Ma ga zi nes w/ copy El l e New Yorker Lucky Spi n Mens Journa l Wi red Motor Trends Ma xi m Ma ga zi nes w/ competitive copy El l e New Yorker Lucky Spi n Mens Journa l Wi red Motor Trends Ma xi m Outdoor Bi l l boa rds Internet Webs i tes ful l ofl i fe.com Ba nner a ds Youtube.com a ol s ports .com nbc.com Ya hoo.com Soci a l Medi a Fa cebook.com Twi tter.com Direct Marketing e-ma i l Ma rketing Public Relations Pres s Rel ea s e Envoronmental Bl ogs Events Ca us e Ma rketing Ca mpa i gns Concert Ja ck Johns on6.c. Marketing Communications Objective Sequence In order to create awareness of our campaign amongst our target audience, we willbegin with Outdoor, Internet, and print advertising. These advertisements will be mostly visual,and contain a simple message, they will not contain argumentative or benefit related copy. Theobjective of this initial advertising is to reach a 90% awareness of the new campaign among ourtarget audience. At this stage, we will not try to change minds, only to build awareness (SeeAppendix 6.c.1.). After we establish awareness, we will begin to implement streaming video in addition tothe media all ready in place. These advertisements will stress the specific benefits of Honda’ssafety features, fun factor and environmental friendliness. At this stage we will ad copy to theprint ads and focus on image building. We will not include argumentative or competitive copy.We will also create a website specific to the campaign, containing information about Hondasbenefits in terms of fun, safety and environment. Our objective during this stage of thecampaign will be to induce a 60% recall of our messages amongst the target market (SeeAppendix 6.c.2.).We will than launch a cause-marketing event in order to assist with recall objectives, whileescalating brand image. Our first task will be to construct a press release introducing the event,which will draw attention from the press, and in turn generate more awareness amongst ourtarget market. By making our information timely, newsworthy and including keywords we couldmore effectively become posted on blogs and message boards. This will increase the amount ofsites linking back to our campaign, which will increase awareness, as well as search rankings. We must than spark interest in our target market by utilizing star power, and promotingwith social media (See Appendix 6.c.3.). The target market must be comfortable with this
    • celebrity, and they must embody cultural meanings that match the desired brand image of fun,safe and environmentally friendly. Social media will allow our market to communicate with eachother as well as the company, and find information related to the campaign. At this stage wehope to achieve a 50% interest among the target market. Our next step is to solidify understanding of our campaign (See Appendix 6.c.4.). In orderto do so we will turn to direct marketing. We will create a database by collecting info aboutmembers of our target market who have attended the cause marketing events, or viewed thewebsite, social media and other online advertisements. We will than send direct emails toapproving users including information and incentives which will stimulate requests for moreinformation, and draw more views to our online media. At this stage of the campaign we expecta 40% level of understanding among the target market. Finally, we will accomplish attitude change by furthering our direct marketing efforts,while continuing our advertising strategy and directing as much traffic as possible to the web site. At this point, we will focus copy onasserting Hondas dominance, and will be competitive. At this stage of the campaign, we hopeto reach our final objectives of increasing the members of our target market who perceiveHonda as #1 in fun by 23.5%, safety by 21.3% and environmental friendliness by 14.4% (SeeAppendix 6.c.5.).Slide 78 Budget Allocation Media Costs Internet $10,689,480.00 Outdoor $8,190,000.00 Direct Marketing $64,200.00 Print $14,914,032.00 Event $939,875.00 Production Cost $75,000.00 Total $34,872,587As requested by our client, we utilized the bottom-up approach when compiling our MediaBudget. Our Media Budget is as follows:
    • 10.1. Media BudgetInternet- $3,880,480.00 Website Design and Development- $800,000 Facebook- $0 Twitter- $0 YouTube-$0 Online Ad Buys- $180,000 Banner Ads Skyscraper Ads Streaming Video- $2,900,480 Jersey Shore: (4 Episodes) (4 Month Coverage) = 629,956 The Office: (24 Episodes) (9 Months of Coverage) = 1,260,000 It’s Always Sunny in Philadelphia: (14 Episodes) (5 Months of Coverage) = 468,000 South Park: (15 Episodes) (8 Months of Coverage) = 615,000Outdoor- $8, 190,000.00 BillboardsDirect Marketing- $64,200.00 Email MarketingPrint- $14,914,032.00 Magazines- $14, 914, 032 Elle – 112,115 x 24 Issues = $2,690,760 Spin – 32,440 x 24 Issues = $778,560 Men’s Journal – 19,950 x 24 Issues = $478,800 Wired – 88,533 x 24 Issues = $2,124,792 Motor Trends – 145,000 x 24 Issues = $3,480,000 Maxim – 223,380 x 24 Issues = $5,361,120Event- $939,875.00 Green Fleet Contest $909,875 Jack Johnson Concert $30,000Production Costs- $5,175,00.00 Webisode Series- $425,000 Streaming Video Commercials - $4,750,000TOTAL- $33,163,587.00
    • Slide 79 Metrics Media Vehicle Metric Print Magazines Total audience or readership by circulation of average per issue Internet Website Analytics software, trackable URLs, direct requests, keyword search Banner Ads Analytics software, Clickstream Data, trackable URLs Skyscrpaers Analytics software, Clickstream Data, trackable URLs Social Media Analytics software, trackable URLs, direct requests, keyword search, Twitter followers, Facebook Fans, landing pages Streaming Video Direct requests Outdoor Billboards Simmons Marketing Research Bureau Direct Marketing E-Mail Marketing Analytics software, trackable URLs, landing pages, post and replies to social media accounts Public Relations Press Release Responses to blog, Analytics software, Clickstream data Events Green Fleet Contest Number of E-Mails generated, number of applicants, Facebook Fans, Twitter followers, Website traffic Jack Johnson Concert Number of attendees We will measure the success of our Internet and social media initiatives using analyticssoftware, trackable URLs, direct request, and keyword search terms. Analytics software willmeasure the views, visits, and clicks of the user’s experience to evaluate the perception of theHonda brand. Trackable URLs show where visitors come from, and whether the visit originatedwith a banner or video player ad. That way, we will know which online ad buys are driving themost traffic to our website. Direct request and keyword search terms can also be a goodindicator of online brand value. We will use these metrics as an indication of brand value changeover the course of the campaign. After implementing these techniques, we will be able to measure the progress of ourinternet initiatives, the success thus far of our internet and social media campaign, and mostimportantly, which areas need improvement and can later be optimized. We can measure the effectiveness of each online ad buy by tracking click stream datafrom each ad. We will track which leads generated page views, and the quality of those pageviews. Analytic software will allow us to determine which advertisements lead consumers to the“Full Of Life” homepage, and to analyze their activity once they have entered the site. We willalso rotate different ad formats on each host site, and measure the relative success of each ad.This data will give us an idea which sites, and which ad formats were most effective, and allowus to adjust accordingly.
    • We will measure the effectiveness of our direct marketing efforts using analyticsoftware, with special attention to trackable URLs, landing pages, and posts and replies to oursocial media accounts, especially to our active blog. We will measure the success of our print ads at each level of the campaign. In order todo so we will evaluate total audience or readership. This will include total number of primaryand pass-along readers measured by circulation average per issue. By doing so we will be ableto more effectively evaluate how the print ads are contributing to our communicationobjectives. In order to measure the effectiveness of outdoor media we will use Simmons MarketingResearch Bureau which provides demographic data, and exposure.Slide 80 Conclusion / Q&A QuickTime™ and a decompressor are needed to see this picture.12. Campaign Summary We believe that the Full of Life campaign will efficiently achieve our communicationobjectives, by reaching our target market with messages relevant to them, on the media theyprefer, while addressing the issues we identified in the internal analysis. The campaignhighlights Honda’s strengths, in terms of fun safety, and environmental friendliness, while takingadvantage of market opportunities and minimizes the impact of potential threats and
    • weaknesses. We have designed messages that specifically follow insights about our targetmarket in order to do so most effectively. During our target market analysis we identified insights about our audience that helpedus design messages specifically tailored to address their concerns. This market is about to, orhas recently entered a new life stage as college graduates. They are excited to graduate butanxious about losing the fun, free spirited persona they carried in their college years. The Full ofLife campaign leverages their anxiety by presenting Honda as the brand that will help themmake the transition. By using insights from our situation analysis, the campaign eases the targetmarket’s cognitive dissonance by nullifying their notion of conflicting ideologies between free-spiritedness and responsibility. In our situation analysis we identified that Honda’s major strengths were related tobrand image and innovation, through research and development. We take advantage of thesestrengths, and use them to aid our goal of improving brand image in terms of fun, safety andenvironmental friendliness, by highlighting innovations specific to the Honda brand. As such,our ads are believable, actionable, and stress specific benefits of Honda’s fun, environmental,and safe technology. We have designed a series of vehicles that will deliver this message;“Honda’s innovations will allow you to be free spirited, responsible and professional. We also identified that Honda’s weaknesses and threats were related to a decreasedpromotional budget. In order to address this issue, we adjusted aspects of our promotionalexecution. Instead of using traditional 30-second broadcast commercials, the Full of Lifecampaign uses streaming video, a less costly medium that is still highly preferred by our targetmarket. The medium also provides us a very real opportunity to “go viral,” a phenomenon thatwould synergize the success of our campaign. The cause marketing portion of our campaign takes advantage of the opportunities weidentified concerning environmental trends, and aids our brand image objectives. The GreenFleet contest addresses the push toward fuel efficiency and green living, in a way that isrelevant and engaging to our target market. In a culture that has lost a degree of faith in theautomotive industry, the contest gives Honda the opportunity to shine as a hero, and restoreconsumer’s faith by providing a valuable service to the community. As previously noted, autocompanies aligned with a cause have enjoyed a statistically heightened brand image over thosewho do not. Considering the market’s current environment, Green Fleet is the perfect salespromotion for the Full of Life campaign. We believe all branches of the campaign are directly in line with our objectives andfollow insights about our target market, as well as the market environment. We have designedmarketing communications that stress the fun, safety and environmental friendliness of Hondaautomobiles and that will reach our target market effectively, through the media vehicles theyprefer. We have also taken into account societal trends, and incorporated facets that willsynergize the campaign’s effectiveness. By doing so we believe the Full of life campaign willreach our target objectives within its 2.5 year life.
    • 14. Appendix2.a.iii.1. Financial Data2.a.iii.2. Operating Income
    • 2.a.iv.1. Managerial Structure
    • 4.a.1. Primary ResearchSurvey: Honda Brand Survey First, thank you for taking the time to fill out this survey. Your participation means a great deal to ourresearch group. The survey is being conducted to gain information that will help us understand the public perceptionof the Honda Brand. We hope to use this information to further provide you with a product and service second tonone. The survey will take only a few minutes and will remain strictly confidential.Please check one answer that best applies to you (unless otherwise noted).Have you ever owned a Honda automobile? 1. Yes___ No___ (If no skip to Question 4) 2. If Yes, what was the Year________________ Model_______________ 3. I was very satisfied with my Honda: ___Strongly Agree ___Somewhat Agree ___Neutral ___Somewhat disagree ___Strongly disagree 4. What automobile traits are most important to you? (Indicate top 3) ____ Safety ____ Fun ____ Fuel economy ____ Resale Value ____ Style ____ Price ____ Reliability _____________________Other (please specify)
    • 5. Please rank the following companies in terms of SAFETY (indicate top 3) ____ Honda ____ Ford ____ Toyota ____ Nissan __________________ Other (please specify) 6. Please rank the following companies in terms of FUN (indicate top 3) ____ Honda ____ Ford ____ Toyota ____ Nissan __________________Other (please specify) 7. Please rank the following companies in terms of ENVIRONMENTAL CONSCIOUSNESS (indicate top 3) ____ Honda ____ Ford ____ Toyota ____ Nissan ___________________ Other (please specify) 8. How do you rank the following Automobile companies OVERALL? (Indicate top 3) ____ Honda ____ Ford ____ Toyota ____ Nissan ____________________ Other (please specify)For questions 9-14, please indicate how strongly you agree with the following statements 1 as being the weakest and6 being the strongest: 9. Honda cars are fun: 1 2 3 4 5 6 10. Honda cars are safe: 1 2 3 4 5 6 11. Honda cars are fuel efficient: 1 2 3 4 5 6 12. Honda cars are stylish: 1 2 3 4 5 6
    • 13. Honda cars have great value: 1 2 3 4 5 614. Honda cars have great resale value: 1 2 3 4 5 615. Gender: ____Male ____Female16. Age _____17. Ethnicity: ____ African American ____ Mexican American ____ Other Hispanic ____ Asian/ SE Asian/ Pacific Islander ____ Filipino ____ Multiple Ethnicities ____ White ____ Other (please specify)18. Which category represents your total family income for 2009? ____ Less than $25,000 ____$25,000 to $45,000 ____$46,000 to $75,000 ____$76,000 to $100,000 ____$100,000 or more19. What is the highest level of education you have completed? th ____ 12 grade or less (no diploma) ____ High School/ GED ____ Some college, no degree ____ Associate or technical degree ____ Bachelor’s degree ____ Graduate degree/ professional20. Occupation Thank you for your time and effort!
    • 4.a.2. Primary Research Results What automobile traits are most important to you? 120 110 100 92 87 89 80 73 Count 60 40 27 21 20 1 0 Safety Fun Fuel Resale Value Style Price Reliability Other Economy A utomobile Traits Ranking Companies In Terms Of FUN 60 54 50 40 31 Count 30 25 23 20 9 10 0 Honda Ford Toyota Nissan Other
    • Ranking Companies In Terms Of ENVIRONMENTAL CONSCIOUSNESS 80 73 70 60 51 50Count 40 30 20 11 10 7 3 0 Honda Ford Toyota Nissan Other Ranking Companies In Terms Of SAFETY 60 57 50 40 35 Count 29 30 20 17 10 6 0 Honda Ford Toyota Nissan Other
    • Ranking Companies OVERALL 70 64 60 50 40Count 32 29 30 19 20 10 2 0 Honda Ford Toyota Nissan Other6.c.1. Marketing Communications Objectives Sequence
    • 6.c.2. Marketing Communications Objectives Sequence
    • 6.c.3. Marketing Communications Objectives Sequence
    • 6.c.4. Marketing Communications Objectives Sequence
    • 6.c.5. Marketing Communications Objectives Sequence
    • 9.a.1. Internet & Interactive Media9.b.1. Social Media
    • 9.b.2. Social Media
    • 9.c.1. Online Ad Buys
    • 9.e.i.1. PR / Cause Marketing
    • 9.e.i.3. PR / Cause Marketing MEDIA ADVISORY GREEN FLEET: HONDA WILL GIVE U.S. UNIVERSITIES THE OPPORTUNITY TO CREATE A TRUE ENVIRONMENTAL CRUSADE The Green FleetWHO: College students throughout America who aspire to create a more environmentally friendly community.WHAT: Interested students will have the opportunity to compete and create the best environmental/green movement, in order to become a member of Honda’s “Green Fleet.” Honda will give five finalist groups $100,000 each, in order to implement their plans, and each group will document their progress through a series of webisodes. However, only one group will become the green fleet! The first place winners of the contest will each receive a $10,000 scholarship, a Green Fleet edition Honda CR-Z, and a Jack Johnson concert at their university.WHEN: September 2012- March 2013WHY: As fuel prices, and the fear of climate change increase, it is our responsibility to become proactive in cultivating and protecting our environment. Environmentally friendly transportation is a major concern, and thus Honda has released the GREEN FLEET, a squadron equipped with unmatched efficiency, and emissions crushing Power. While transportation is a major concern, in reality the problems with our environment go far deeper. For this reason, Honda is CALLING OUT to US universities, in order to find new members of the GREEN FLEET. These new additions to the team will compete to build a true environmental crusade, reaching all angles of the green spectrum.CONTACT: John Doe John.doe@prestige.com 555.555.555
    • 9.f.1. Print Ads
    • 9.f.2. Print Ads
    • 9.g.1. Outdoor
    • 9.h.1. Media Schedule Year 1: 2011 Medium Vehicle July August September October November December PrintMa ga zi nes w/out copy El l e New Yorker Lucky Spi n Mens Journa l Wi red Motor Trends Ma xi mMa ga zi nes w/ copy El l e New Yorker Lucky Spi n Mens Journa l Wi red Motor Trends Ma xi m InternetWebs i tes ful l ofl i fe.comBa nner a ds Youtube.com a ol s ports .com nbc.com Ya hoo.comSkys cra pers Youtube.com a ol s ports .com nbc.com Ya hoo.comSoci a l Medi a Fa cebook.com Twi tter.comStrea mi ng Vi deos NBC Adul t Swi m Di s covery Cha nnel MTV OutdoorBi l l boa rds Direct Marketinge-ma i l Ma rketing Year 2: 2012 Medium Vehicle January February March April May June July August September October November December PrintMa ga zi nes w/ copy El l e New Yorker Lucky Spi n Mens Journa l Wi red Motor Trends Ma xi m InternetWebs i tes ful l ofl i fe.comBa nner a ds Youtube.com a ol s ports .com nbc.com Ya hoo.comSoci a l Medi a Fa cebook.com Twi tter.comStrea mi ng Vi deos NBC Adul t Swi m Di s covery Cha nnel MTV OutdoorBi l l boa rds Direct Marketinge-ma i l Ma rketing Public RelationsPres s Rel ea s e Envoronmenta l Bl ogs EventsCa us e Ma rketing Ca mpa i gns
    • Year 3: 2013 Medium Vehicle January February March April May June July August September October November December PrintMa ga zi nes w/ copy El l e New Yorker Lucky Spi n Mens Journa l Wi red Motor Trends Ma xi mMa ga zi nes w/ competitive copy El l e New Yorker Lucky Spi n Mens Journa l Wi red Motor Trends Ma xi m OutdoorBi l l boa rds InternetWebs i tes ful l ofl i fe.comBa nner a ds Youtube.com a ol s ports .com nbc.com Ya hoo.comSoci a l Medi a Fa cebook.com Twi tter.com Direct Marketinge-ma i l Ma rketing Public RelationsPres s Rel ea s e Envoronmenta l Bl ogs EventsCa us e Ma rketing Ca mpa i gnsConcert Ja ck Johns on
    • 10.1. Media BudgetInternet- $3,880,480.00 Website Design and Development- $800,000 Facebook- $0 Twitter- $0 YouTube-$0 Online Ad Buys- $180,000 Banner Ads Skyscraper Ads Streaming Video- $2,900,480 Jersey Shore: (4 Episodes) (4 Month Coverage) = 629,956 The Office: (24 Episodes) (9 Months of Coverage) = 1,260,000 It’s Always Sunny in Philadelphia: (14 Episodes) (5 Months of Coverage) = 468,000 South Park: (15 Episodes) (8 Months of Coverage) = 615,000Outdoor- $8, 190,000.00 BillboardsDirect Marketing- $64,200.00 Email MarketingPrint- $14,914,032.00 Magazines- $14, 914, 032 Elle – 112,115 x 24 Issues = $2,690,760 Spin – 32,440 x 24 Issues = $778,560 Men’s Journal – 19,950 x 24 Issues = $478,800 Wired – 88,533 x 24 Issues = $2,124,792 Motor Trends – 145,000 x 24 Issues = $3,480,000 Maxim – 223,380 x 24 Issues = $5,361,120Event- $939,875.00 Green Fleet Contest $909,875 Jack Johnson Concert $30,000Production Costs- $5,175,00.00 Webisode Series- $425,000 Streaming Video Commercials - $4,750,000TOTAL- $33,163,587.00
    • 11.1. Metrics