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Honda project report

Honda project report



Market survey report

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    Honda project report Honda project report Document Transcript

    • Executive SummaryBusiness SummaryHonda Motor Co., Ltd., together with its subsidiaries, engages in the development, manufacture,and distribution of motorcycles, automobiles, and power products primarily in North America,Europe, and Asia. Its motorcycle line consists of business and commuter models, as well assports models, including trial and motor-cross racing; all terrain vehicles; personal watercrafts;and multi utility vehicles. The company also produces various automobile products, includingpassenger cars, minivans, multi-wagons, sport utility vehicles, and mini cars; and power productscomprising tillers, portable generators, general-purpose engines, grass cutters, outboard marineengines, water pumps, snow throwers, power carriers, power sprayers, lawn mowers and lawntractors, home-use cogeneration units, thin film solar cells home use, and public and industrialuses. In addition, it sells spare parts and provides after sales services are through retail dealers, aswell as involves in retail lending, leasing to customers, and other financial services, such aswholesale financing to dealers. The company was founded in 1946 and is based in Tokyo, JapanMARKETTING STRATEGIES OF HONDA
    • CONTENTS1. Introduction2. Company Profile3. Importance & Scope4. Research Objectives5. Hypothesis6. Research Methodology7. Data Analysis8. Findings9. Suggestions10. Limitations11. Bibliography12. AnnexureMARKETTING STRATEGIES OF HONDA
    • INTRODUCTIONHonda has been the worlds largest motorcycle manufacturer since 1959, as well as the worldslargest manufacturer of internal combustion engines measured by volume, producing more than14 million internal combustion engines each year. Honda surpassedNissan in 2001 to become thesecond-largest Japanese automobile manufacturer. As of August 2008, Hondasurpassed Chrysler as the fourth largest automobile manufacturer in the United States. Honda isthe sixth largest automobile manufacturer in the world.Honda was the first Japanese automobile manufacturer to release a dedicated luxurybrand, Acura, in 1986. Aside from their core automobile and motorcycle businesses, Honda alsomanufactures garden equipment, marine engines, personal watercraft and power generators,amongst others. Since 1986, Honda has been involved with artificial intelligence/roboticsresearch and released their ASIM Orobot in 2000. They have also ventured into aerospace withthe establishment of GE Honda Aero Engines in 2004 and the Honda HA-420 HondaJet,scheduled to be released in 2011. Honda spends about 5% of its revenues into R&D.MARKETTING STRATEGIES OF HONDA
    • History of HondaFrom a young age, Hondas founder, Soichiro Honda (本田 宗一郎, Honda Sōichirō) had a greatinterest in automobiles. He worked as a mechanic at a Japanese tuning shop, Art Shokai, wherehe tuned cars and entered them in races. A self-taught engineer, he later worked on a pistondesign which he hoped to sell to Toyota. The first drafts of his design were rejected, and Soichiroworked painstakingly to perfect the design, even going back to school and pawning his wifesjewelry for collateral. Eventually, he won a contract with Toyota and built a factory to constructpistons for them, which was destroyed in an earthquake. Due to a gasoline shortageduring World War II, Honda was unable to use his car, and his novel idea of attaching a smallengine to his bicycle attracted much curiosity. He then established the Honda Technical ResearchInstitute in Hamamatsu, Japan, to develop and produce small 2-cycle motorbike engines. Callingupon 18,000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart bywar, Soichiro received enough capital to engineer his first motorcycle, the Honda Cub. Thismarked the beginning of Honda Motor Company, which would grow a short time later to be theworlds largest manufacturer of motorcycles by 1964.The first production automobile from Honda was the T360 mini pick-up truck, which went onsale in August 1963.[10]Powered by a small 356 cc straight-4 gasoline engine, it was classifiedMARKETTING STRATEGIES OF HONDA
    • under the cheaper Kei car tax bracket.[citation needed]The first production car from Honda wasthe S500 sports car, which followed the T360 into production in October 1963. Its chain drivenrear wheels point to Hondas motorcycle origins.Company NameHonda Motor Co., Ltd.Head Office1-1, 2-chome, Minami-Aoyama, Minato-ku, Tokyo 107-8556, JapanTel: +81-(0)3-3423-1111EstablishedSeptember 24, 1948President & CEOTakanobu ItoCapital¥86 billion (as of March 31, 2010)Sales (Results of fiscal 2010)Consolidated: ¥8,579,174 millionUnconsolidated: ¥2,717,736 millionMARKETTING STRATEGIES OF HONDA
    • Total number of employeesConsolidated: 176,815 (as of March 31, 2010)Unconsolidated: 26,121 (as of March 31, 2010)Consolidated subsidiaries390 subsidiaries (as of March 31, 2010)Chief ProductsMotorcycles, automobiles, power productsAoyama BuildingMARKETTING STRATEGIES OF HONDA
    • Wako BuildingCORPORATE PROFILEHonda Motor Co., Ltd. operates under the basic principles of "Respect for the Individual"and "The Three Joys" — commonly expressed as The Joy of Buying, The Joy of Selling andThe Joy of Creating. "Respect for the Individual" reflects our desire to respect the uniquecharacter and ability of each individual person, trusting each other as equal partners inorder to do our best in every situation. Based on this, "The Three Joys" expresses our beliefand desire that each person working in, or coming into contact with our company, directlyor through or products, should share a sense of joy through that experience. In line withthese basic principles, since its establishment in 1948, Honda has remained on the leadingedge by creating new value and providing products of the highest quality at a reasonableprice, for worldwide customer satisfaction. In addition, the Company has conducted itsactivities with a commitment to protecting the environment and enhancing safety in amobile society.MARKETTING STRATEGIES OF HONDA
    • The Company has grown to become the worlds largest motorcycle manufacturer and one ofthe leading automakers. With a global network of 492* subsidiaries and affiliates accountedfor under the equity method, Honda develops, manufactures and markets a wide variety ofproducts, ranging from small general-purpose engines and scooters to specialty sports cars,to earn the Company an outstanding reputation from customers worldwide.Honda In IndiaHonda Siel Cars India Ltd., (HSCI) was incorporated in December 1995 as a joint venturebetween Honda Motor Co. Ltd., Japan and Siel Limited, a Siddharth Shriram Group company,with a commitment to providing Honda’s latest passenger car models and technologies, to theIndian customers. The total investment made by the company in India till date is Rs 1620 croresin Greater Noida plant and Rs 784 crores in Tapukara plant.MARKETTING STRATEGIES OF HONDA
    • HSCI’s first state-of-the-art manufacturing unit was set up at Greater Noida, U.P in 1997. Thegreen-field project is spread across 150 acres of land (over 6,00,000 sq. m.).The annual capacity of this facility is 100,000 units. The company’s second manufacturingfacility is in Tapukara, Rajasthan. This facility is spread over 600 acres and will have an initialproduction capacity of 60,000 units per annum, with an investment of about Rs 1,000 crore. Thefirst phase of this facility was inaugurated in September 2008.The company’s product range includes Honda Jazz, Honda City, Honda Civic and Honda Accordwhich are produced at the Greater Noida facility with an indigenization level of 77%, 76%, 74%and 28% respectively. The CR-V is imported from Japan as Completely Built Units. Honda’smodels are strongly associated with advanced design and technology, apart from its establishedqualities of durability, reliability and fuel-efficiency.MARKETTING STRATEGIES OF HONDA
    • World Wide Message By HondaStriving to become a company that society wants to exist by strengthening the coreprinciples of HondaLooking back over the past fiscal yearLast year brought positive signs of economic recovery, including increased consumer spendingin Japan and the U.S. and expected economic expansion in Asia and developing nations. At thesame time, concerns about the economic downturn, credit crunch, and unemployment persistedin the U.S. and Europe. Moreover, regardless of regional differences, there was new movementto drastically reduce greenhouse gas emissions, primarily CO2. In these ways, 2009 showed thatfurther management effort and environmental action were required in the near future. Under suchcircumstances, Honda responded swiftly and specifically to the needs of society and customers inMARKETTING STRATEGIES OF HONDA
    • each region. Through research and development, we worked vigorously to produce advancedtechnologies for safety and environmental requirements. Through production, we addressedchanges in regional needs in a flexible manner, establishing a “mutually complementary” systemof manufacturing parts and finished vehicles in each region. Through sales, we released productswith new value by enhancing eco-responsible vehicles and widened the range of our productlineup. As a result, over the last year alone, we delivered motorcycles, automobiles, and general-purpose products to a total of more than 23 million customers around the world.Striving to become a company that society wants to existDue to global political and economic changes, the business environment surround- ing Hondaremains uncertain amid growing social concern about environmental challenges. However, nomatter how considerable these changes may be, Honda will win the trust of our customers andappeal to customers as before by creating technologies and products with new value thatanticipate customer needs and social requirements. We believe this is the way for Honda toproceed, based on our founding principles. To achieve these goals, Honda will work to improveproduct quality, safety, and environmental performance as well as promoting research anddevelopment of next-generation mobility technologies such as fuel-cell electric vehicles andbattery-powered EVs. Additionally, we will focus on future product development to expand themarket for hybrid vehicles, which are currently the most effective in reducing CO2 emissions.And, we will continue our efforts to become a company that society wants to exist throughglobal activities to minimize environ- mental impact in all of our business activities includingMARKETTING STRATEGIES OF HONDA
    • production, distribution, and sales, while promoting safe driving and engagement in other socialactivities.Manufacturing & DistributionStrengthening our manufacturing system from the perspective of our customers and theenvironmentCustomer needs vary depending on the region. To deliver products that satisfy customers in allregions, Honda established a manufacturing system that rapidly and flexibly responds tocustomer requests at all production bases around the world. With this manufacturing system, weare striving to further improve the quality of our products and minimize our environmentalfootprint during manufacturing.MARKETTING STRATEGIES OF HONDA
    • Thin-membrane solar cell panels at Dongfeng Honda (Wuhan, China)Strengthening manufacturing capabilities and environmental measures on a global basisBased on its commitment to build products close to the customer, Honda has pursued localproduction from its early days. We first began overseas motorcycle production in Belgium in1963 and became the first Japanese automaker to produce automobiles in the U.S. in 1982. Byfocusing on localization early on, even in the areas of development and sales, we have been ableto respond to changes in product demand and supply more promptly and increase our quality andcost competitiveness in each market. Moreover, we have been working on establishing amutually complementary parts and vehicle manufacturing network among countries within aregion so that we can respond to changing demand in each region more effectively and flexibly.We have also centered on activities that improve quality at production bases around the worldand that reduce environmental impacts during manufacturing and distribution. In 2009, we beganoperations at the Ogawa plant in Japan with extremely high resource and energy efficiency.Meanwhile, we are promoting the installation of solar panels at our offices and plants. Throughimproved production systems that take into consideration regional characteristics and enhancedenvironmental measures, we will flexibly and effectively provide high-quality products in anenvironmentally responsible way.MARKETTING STRATEGIES OF HONDA
    • Motorcycle plant (Thailand)Power products assembly (France)Corporate profile and divisionsMARKETTING STRATEGIES OF HONDA
    • Honda headquarters building in JapanHonda is headquartered in Minato, Tokyo, Japan. Their shares trade on the Tokyo StockExchange and the New York Stock Exchange, as well as exchanges in Osaka, Nagoya, Sapporo,Kyoto, Fukuoka, London, Paris and Switzerland.The company has assembly plants around the globe. These plants are located in China, theUnited States, Pakistan, Canada, England, Japan, Belgium, Brazil, New Zealand, Indonesia,India, Thailand, Turkey and Perú. As of July 2010, 89 percent of Honda and Acura vehicles soldin the United States were built in North American plants, up from 82.2 percent a year earlier.This shields profits from the yen’s advance to a 15-year high against the dollar.Hondas Net Sales and Other Operating Revenue by Geographical Regions in 2007MARKETTING STRATEGIES OF HONDA
    • Geographic Region Total revenue (in millions of ¥)Japan 1,681,190North America 5,980,876Europe 1,236,757Asia 1,283,154Others 905,163American Honda Motor Company is based in Torrance, California. Honda Canada Inc. isheadquartered in the Scarborough district of Toronto, Ontario, and is building new corporateheadquarters in Markham, Ontario, scheduled to relocate in 2008; their manufacturingdivision, Honda of Canada Manufacturing, is based in Alliston, Ontario. Honda has also createdjoint ventures around the world, such as Honda Siel Cars and Hero Honda Motorcycles inIndia, Guangzhou Honda and Dongfeng Honda in China, and Honda Atlas in Pakistan.Current market positionWith high fuel prices and a weak U.S. economy in June 2008, Honda reported a 1% salesincrease while its rivals, including the Detroit Big Three and Toyota, have reported double-digitlosses. Hondas sales were up almost 20 percent from the same month last year. The Civic andthe Accord were in the top five list of sales. Analysts have attributed this to two main factors.MARKETTING STRATEGIES OF HONDA
    • First, Hondas product lineup consists of mostly small to mid-size, highly fuel-efficient vehicles.Secondly, over the last ten years, Honda has designed its factories to be flexible, in that they canbe easily retooled to produce any Honda model that may be in-demand at the moment.Nonetheless, Honda, Nissan, and Toyota, were still not immune to the global financial crisis of2008, as these companies reduced their profitability forecasts. The economic crisis has beenspreading to other important players in the vehicle related industries as well. In November 2009the Nihon Keizai Shinbun reported that Honda Motor exports have fallen 64.1%.At the 2008 Beijing Auto Show, Honda presented the Li Nian ("concept" or "idea") 5-doorhatchback and announced that they were looking to develop an entry-level brand exclusively forthe Chinese market similar to Toyotas Scion brand in the USA. The brand would be developedby a 50-50 joint-venture established in 2007 with Guangzhou Automobile Industry Group.Following the Japanese earthquake and tsunami in March 2011 Honda announced plans to halveproduction at its UK plants. The decision was made to put staff at the Swindon plant on a 2 dayweek until the end of May as the manufacturer struggled to source supplies from Japan. Itsthought around 22,500 cars were produced during this period.MARKETTING STRATEGIES OF HONDA
    • the Super Cub made Honda what it is today. In 2008, 50 years and 60 million units later, theSuper Cub still continues to evolve.Engines (2008)Honda has announced "Engines," a new global advertisement aimed at increasing awareness ofhow Hondas advanced engines can help in preserving the environment.MARKETTING STRATEGIES OF HONDA
    • FCX (2007)The global ad "FCX Concept" emphasizes Honda’s leadership in environmental performancethrough advanced technology.sky (2006)MARKETTING STRATEGIES OF HONDA
    • "sky" signifies Hondas realization of a dream to bring mobility for everyone to the thirddimension, the sky, with the introduction of the HondaJet.cap/ (2006)The symbolic use of the Honda green cap, worn by Honda Associates, expresses two messages -the fun that Honda employees enjoy through working at Honda and how that fun is embedded inevery Honda automobile, motorcycle and power product.In the animated movie "cap/," a boy picks up a green cap - not just any cap, but a Honda greencap - and once he wears it, is taken to the world of Honda where he experiences the creativitythat every Honda employee brings to the company - turning dreams such as ASIMO andHondaJet into reality, and making Honda one of the most innovative companies in the world.MARKETTING STRATEGIES OF HONDA
    • jet/ (2005)The motif of Honda’s new Global Ad is the experimental HondaJet, which made its debut inJuly, 2005 at “Airventure,” a prominent aircraft event in the USA. HondaJet realizes a Hondafounder’s dream.The movie “jet/” is set in a quiet airstrip. Two men in blue overalls ride a tattered Super Cubdown a deserted hangar. Who could tell that these two, Richard Gritter and Dave West, wereindeed the test pilots for the experimental HondaJet, as they flew off into the evening sky...MARKETTING STRATEGIES OF HONDA
    • run/ (2005)Since development of the first ASIMO in 2000, ASIMO has grown in popularity around theworld, and has developed a global image of adorability and friendliness. The key aim in Honda’snew global branding advertisement is to maintain ASIMO’s global image, whilst communicatingthe new ASIMO prototype’s feature (ASIMO runs!) with a touch of humor. In 60” movie “run/”,the new ASIMO prototype and an elderly gentleman engage in a little race down an airport’smoving walkway.MARKETTING STRATEGIES OF HONDA
    • HondaJet (2005)The motif for this year’s worldwide corporate advertising is the HondaJet. In 2003, a hundredyears after the Wright Brothers made their pioneering flight; the HondaJet soared over NorthCarolina on its maiden flight. Honda has again realized the power of dreams, by adding a newdimension to the pursuit of mobility. We want to share this significant achievement with theworld, and with this in mind, came the motivation for this advertisement.MARKETTING STRATEGIES OF HONDA
    • Honda FCX (2003)The sound of a grandfather clock keeps pace with the FCX as it drives around. In the TVcommercial, the FCX is shown symbolizing the opening to a new era of mobility. In addition, acorporate ad was placed on January 3, 2003 to all major newspapers in Japan showcasing thetheme of Honda’s new technology. The TV commercial uses a visual background that reflectsHonda’s challenging history and expresses Honda’s spirit, “an ultimate clean air vehicle for allhuman beings”. The development of the fuel cell vehicle FCX, - has reinforced our belief in thepower of dreams.MARKETTING STRATEGIES OF HONDA
    • WGP 500th Victory (2001)At the FIM Road Racing World Championship Grand Prix opening event held at the Suzukacircuit on April 8, 2001, Honda achieved its record setting 500th win. It has been 40 years sinceits first win there in 1961. With unwavering passion and the result of win upon win there hasbeen no greater point of progress. In April 2000 all major Japanese newspapers publishedcorporate advertisements with the Honda motorcycle challenge spirit as it’s theme.MARKETTING STRATEGIES OF HONDA
    • F1 200 Challenge (2000)In the FIA Formula1 World Championship 14th race event held on September 10, 2000, Hondaset records in the F1 200 series. Since it’s first appearance in the German Grand Prix in 1964,Honda has continued to compete in the top international racing events around the world. For theJapan Grand Prix held at the Suzuka circuit over October 2000, all major Japanese newspaperspublished corporate advertisements with Honda’s F1 challenge history as it’s theme.MARKETTING STRATEGIES OF HONDA
    • ProductsAutomobiles2008 Honda Accord (USA spec)Eighth Generation Honda Civic (Asian Version)MARKETTING STRATEGIES OF HONDA
    • Hondas global lineup consists of the Fit, Civic, Accord, Insight, CR-V, and Odyssey. An earlyproponent of developing vehicles to cater to different needs and markets worldwide, Hondaslineup varies by country and may feature vehicles exclusive to that region. A few examples arethe latest Acura TL luxury sedan and the Ridgeline, Hondas first light-duty uni-body pickuptruck. Both were engineered primarily in North America and are exclusively produced and soldthere.The Civic is a line of compact cars developed and manufactured by Honda. In North America,the Civic is the second-longest continuously running nameplate from a Japanese manufacturer;only its perennial rival, the Toyota Corolla, introduced in 1968, has been in productionlonger. The Civic, along with the Accord and Prelude, comprised Hondas vehicles sold in NorthAmerica until the 1990s, when the model lineup was expanded. Having gone through severalgenerational changes, the Civic has become larger and more upmarket, and it currently slotsbetween the Fit and Accord.Honda increased global production in September 2008 to meet demand for small cars in the U.S.and emerging markets. The company is shuffling U.S. production to keep factories busy andboost car output, while building fewer minivans and sport utility vehicles as light trucksales fall.Honda produces Civic hybrid, a hybrid electric vehicle that competes with the Toyota Prius, andalso produces the Insight and CR-Z.MARKETTING STRATEGIES OF HONDA
    • Its first entrance into the pickup segment, the light duty Ridgeline, won Truck of the Yearfrom Motor Trend magazine in 2006. Also in 2006, the redesigned Civic won Car of theYear from the magazine, giving Honda a rare double win of Motor Trend honors.It is reported that Honda plans to increase hybrid sales in Japan to more than 20% of its totalsales in fiscal year 2011, from 14.8% in previous year.Five of United States Environmental Protection Agencys top ten most fuel-efficient cars from1984 to 2010 comes from Honda, more than any other automakers. The five models are: 2000-2006 Honda Insight (53 mpg-US/4.4 L/100 km; 64 mpg-imp combined), 1986-1987 Honda CivicCoupe HF (46 mpg-US/5.1 L/100 km; 55 mpg-imp combined), 1994-1995 Honda Civic hatchbackVX (43 mpg-US/5.5 L/100 km; 52 mpg-imp mpg combined), 2006- Honda Civic Hybrid (42 mpg-US/5.6 L/100 km; 50 mpg-imp combined), and 2010- Honda Insight (41 mpg-US/5.7 L/100 km;49 mpg-imp combined). The ACEEE has also rated the Civic GX as the greenest car in Americafor seven consecutive years.MARKETTING STRATEGIES OF HONDA
    • MotorcyclesHonda is the largest motorcycle manufacturer in Japan and has been since it started production in1955. At its peak in 1982, Honda manufactured almost 3 million motorcycles annually. By 2006this figure had reduced to around 550,000 but was still higher than its three domesticcompetitors.During the 1960s, when it was a small manufacturer, Honda broke out of the Japanesemotorcycle market and began exporting to the U.S. Taking Honda’s story as an archetype of thesmaller manufacturer entering a new market already occupied by highly dominant competitors,the story of their market entry, and their subsequent huge success in the U.S. and around theworld, has been the subject of some academic controversy. Competing explanations have beenadvanced to explain Honda’s strategy and the reasons for their success.The first of these explanations was put forward when, in 1975, Boston Consulting Group (BCG)was commissioned by the UK government to write a report explaining why and how the Britishmotorcycle industry had been out-competed by its Japanese competitors. The report concludedthat the Japanese firms, including Honda, had sought a very high scale of production (they hadmade a large number of motorbikes) in order to benefit from economies of scale and learningcurve effects. It blamed the decline of the British motorcycle industry on the failure of Britishmanagers to invest enough in their businesses to profit from economies of scale and scope.MARKETTING STRATEGIES OF HONDA
    • 2004 Honda Super CubThe second explanation was offered in 1984 by Richard Pascale, who had interviewed the Hondaexecutives responsible for the firm’s entry into the U.S. market. As opposed to the tightlyfocused strategy of low cost and high scale that BCG accredited to Honda, Pascale found thattheir entry into the U.S. market was a story of “miscalculation, serendipity, and organizationallearning” – in other words, Honda’s success was due to the adaptability and hard work of itsstaff, rather than any long term strategy. For example, Honda’s initial plan on entering the U.S.was to compete in large motorcycles, around 300 cc. It was only when the team found that thescooters they were using to get themselves around their U.S. base of San Francisco attractedpositive interest from consumers that they came up with the idea of selling the Super Cub.MARKETTING STRATEGIES OF HONDA
    • The most recent school of thought on Honda’s strategy was put forward by Gary Hamel and C.K. Prahalad in 1989. Creating the concept ofcore competencies with Honda as an example, theyargued that Honda’s success was due to its focus on leadership in the technology of internalcombustion engines. For example, the high power-to-weight ratio engines Honda produced forits racing bikes provided technology and expertise which was transferable into mopeds. Hondasentry into the U.S. motorcycle market during the 1960s is used as a case study for teachingintroductory strategy at business schools worldwide.MotorsportsHonda has been active in motorsports, like Motorcycle Grand Prix, Superbike racing and others.AutomobileMARKETTING STRATEGIES OF HONDA
    • Rubens Barrichello driving for HondaHonda entered Formula One as a constructor for the first time in the 1964 season at the GermanGrand Prix with Ronnie Bucknum at the wheel. 1965 saw the addition of Richie Ginther to theteam, who scored Hondas first point at the Belgian Grand Prix, and Hondas first win atthe Mexican Grand Prix. 1967 saw their next win at the Italian Grand Prix with John Surtees astheir driver. In 1968, Jo Schlesser was killed in a Honda RA302 at the French Grand Prix. Thisracing tragedy, coupled with their commercial difficulties selling automobiles in the UnitedStates, prompted Honda to withdraw from all international motorsport that year.After a learning year in 1965, Honda-powered Brabhams dominated the 1966 French FormulaTwo championship in the hands of Jack Brabhamand Denny Hulme. As there was no EuropeanChampionship that season, this was the top F2 championship that year. In the early 1980s Hondareturned to F2, supplying engines to Ron Tauranacs Ralt team. Tauranac had designed theBrabham cars for their earlier involvement. They were again extremely successful. In a relatedexercise, John Judds Engine Developments company produced a turbo "Brabham-Honda"engine for use in IndyCar racing. It won only one race, in 1988 for Bobby Rahal at Pocono.Honda returned to Formula One in 1983, initially with another Formula Two partner,the Spirit team, before switching abruptly to Williams in 1984. In the late 1980s and early 1990s,Honda powered cars won six consecutive Formula One ConstructorsChampionships. WilliamsF1 won the crown in 1986 and 1987. Honda switched allegiance againin 1988. New partners Team McLaren won the title in 1988, 1989, 1990 and 1991. Hondawithdrew from Formula One at the end of 1992, although the related Mugen-Honda companyMARKETTING STRATEGIES OF HONDA
    • maintained a presence up to the end of 1999, winning four races with Ligier and Jordan GrandPrix.Honda debuted in the CART IndyCar World Series as a works supplier in 1994. The engineswere far from competitive at first, but after development, the company powered six consecutivedrivers championships. In 2003, Honda transferred its effort to the rival IRL IndyCar Series. In2004, Honda-powered cars overwhelmingly dominated the IndyCar Series, winning 14 of 16IndyCar races, including the Indianapolis 500, and claimed the IndyCar Series ManufacturersChampionship, Drivers Championship and Rookie of the Year titles. In 2006, Honda became thesole engine supplier for the IndyCar Series, including the Indianapolis 500. In the 2006Indianapolis 500, for the first time in Indianapolis 500 history, the race was run without a singleengine problem.During 1998, Honda considered returning to Formula One with their own team. The project wasaborted after the death of its technical director, Harvey Postlethwaite. Honda instead came backas an official engine supplier to British American Racing (BAR) and Jordan Grand Prix. Hondabought a stake in the BAR team in 2004 before buying the team outright at the end of 2005,becoming a constructor for the first time since the 1960s. Honda won the 2006 Hungarian GrandPrix with driver Jenson Button.It was announced on 5 December 2008, that Honda would be exiting Formula One withimmediate effect due to the 2008 global economic crisis. The team was sold to former teamprincipal Ross Brawn, renamed Brawn GP and subsequently Mercedes GP.Honda became an official works team in the British Touring Car Championship in 2010.MARKETTING STRATEGIES OF HONDA
    • MotorcyclesHonda RC212V raced by Dani PedrosaHonda Racing Corporation (HRC) was formed in 1982. The company combines participation inmotorcycle races throughout the world with the development of high potential racing machines.Its racing activities are an important source for the creation of leading edge technologies used inthe development of Honda motorcycles. HRC also contributes to the advancement of motorcyclesports through a range of activities that include sales of production racing motorcycles, supportfor satellite teams, and rider education programs.MARKETTING STRATEGIES OF HONDA
    • Soichiro Honda, being a race driver himself, could not stay out of international motorsport. In1959, Honda entered five motorcycles into the Isle of Man TT race, the most prestigiousmotorcycle race in the world. While always having powerful engines, it took until 1961 forHonda to tune their chassis well enough to allow Mike Hailwood to claim their first GrandPrix victories in the 125 and 250 cc classes. Hailwood would later pick up their first Senior TTwins in 1966 and 1967. Hondas race bikes were known for their "sleek & stylish design" andexotic engine configurations, such as the 5-cylinder, 22,000 rpm, 125 cc bike and their 6-cylinder250 cc and 297 cc bikes.In 1979, Honda returned to Grand Prix motorcycle racing with the monocoque-framed, four-stroke NR500. The FIM rules limited engines to four cylinders, so the NR500 featured non-circular, race-track, cylinders, each with 8 valves and two connecting rods, in order to providesufficient valve area to compete with the dominant two-stroke racers. Unfortunately, it seemedHonda tried to accomplish too much at one time and the experiment failed. For the 1982 season,Honda debuted their first two-stroke race bike, the NS500 and in 1983, Honda won their first500 cc Grand Prix World Championship with Freddie Spencer. Since then, Honda has become adominant marque in motorcycle Grand Prix racing, winning a plethora of top level titles withriders such as Mick Doohan and Valentino Rossi .In motocross, Honda has claimed six motocross world championships. In the World EnduroChampionship, Honda has captured six titles, most recently with Stefan Merriman in 2003 andwith Mika Ahola in 2007 and 2008.In observed trials, Honda has claimed three world championships with Belgian rider EddyLejeune.MARKETTING STRATEGIES OF HONDA
    • MarketingHondas official slogan is "The Power of Dreams". They have never used this slogan to sell theirproducts. Mr. Hondas belief is that well built products will sell themselves.In 2003, Honda released its Cog advertisement in the UK and on the Internet. To make the ad,the engineers at Honda constructed a Rube Goldberg Machine made entirely out of car partsfrom a Europe Domestic Market Honda Accord (upon which the USDM Acura TSX is based).To the chagrin of the engineers at Honda, all the parts were taken from two of only six hand-assembled pre-production models of the Accord. The advertisement depicted a single cog whichsets off a chain of events that ends with the Honda Accord moving and Garrison Keillor speakingthe tagline, "Isnt it nice when things just... work?" It took 606 takes to get it perfect.[71]In 2004, they produced the Grrr advert, usually immediately followed by a shortened version ofthe 2005 Impossible Dream advert.A post 2005 style Honda dealership in Moncton, CanadaMARKETTING STRATEGIES OF HONDA
    • In December 2005, Honda released The Impossible Dream a two-minute panoramicadvertisement filmed in New Zealand, Japan and Argentina which illustrates the founders dreamto build performance vehicles. While singing the song "Impossible Dream", a man reaches forhis racing helmet, leaves his trailer on a minibike, then rides a succession of vintage Hondavehicles: a motorcycle, then a car, then a powerboat, then goes over a waterfall only to reappearpiloting a hot air balloon, with Garrison Keillor saying "I couldnt have put it better myself" asthe song ends. The song is from the 1960s musical Man Of La Mancha, sung by Andy Williams.In 2006, Honda released its Choir advertisement, for the UK and the internet. This featured a 60-person choir who sang the car noises as film of the Honda Civic are shown.For the last several years in the United States, during model close-out sales for the current yearbefore the start of the new model year, Hondas advertising has featured an animatedcharacter known simply as Mr. Opportunity, voiced by Rob Paulsen. The casual looking mantalks about various deals offered by Honda and ends with the phrase "Im Mr. Opportunity, andIm knockin", followed by him "knocking" on the television screen or "thumping" the speaker atthe end of radio ads. Also, commercials for Hondas international hatchback, the Jazz, areparodies of well-known pop culture images such as Tetris and Thomas The Tank Engine.In late 2006, Honda released an ad with ASIMO exploring a museum, looking at the exhibitswith almost child-like wonderment (spreading out its arms in the aerospace exhibit, waving helloto an astronaut suit that resembles him, etc.), while Garrison Keillor ruminates on progress. Itconcludes with the tagline: "More forwards please".MARKETTING STRATEGIES OF HONDA
    • Honda also sponsored ITVs coverage of Formula One in the UK for 2007. However they hadannounced that they would not continue in 2008 due to the sponsorship price requested by ITVbeing too high.In May 2007, focuses on their strengths in racing and the use of the Red H badge — a symbol ofwhat is termed as "Hondamentalism". The campaign highlights the lengths that Honda engineersgo to in order to get the most out of an engine, whether it is for bikes, cars, powerboats — evenlawnmowers. Honda released its Hondamentalism campaign. In the TV spot, Garrison Keillorsays, "An engineer once said to build something great is like swimming in honey", while Hondaengineers in white suits walk and run towards a great light, battling strong winds and flyingdebris, holding on to anything that will keep them from being blown away. Finally one of theengineers walks towards a red light, his hand outstretched. A web address is shown for theHondamentalism website. The digital campaign aims to show how visitors to the site share manyof the Hondamentalist characteristics.At the beginning of 2008, Honda released - the Problem Playground. The advert outlinesHondas environmental responsibility, demonstrating a hybrid engine, more efficient solar panelsand the FCX Clarity, a hydrogen powered car. The 90 second advert features large scale puzzles,involving Rubiks cubes, large shapes and a 3-dimensional puzzle.On 29 May 2008, Honda, in partnership with Channel 4, broadcast a live advertisement. Itshowed skydivers jumping from an aeroplane over Spain and forming the letters H, O, N, D andA in mid-air. This live advertisement is generally agreed to be the first of its kind on Britishtelevision. The advert lasted three minutes. The next flight of one of the two planes involvedresulted in a fatal crash as the plane broke apart in mid-air.[72]MARKETTING STRATEGIES OF HONDA
    • In 2009, American Honda released the Dream the Impossible documentary series, a collection of5-8 minute web vignettes that focus on the core philosophies of Honda. Current short filmsinclude Failure: The Secret to Success, Kick Out the Ladder and Mobility 2088. They featureHonda employees as well as Danica Patrick, Christopher Guest, Ben Bova, Chee Pearlman, JoeJohnston and Orson Scott Card. The film series plays at dreams.honda.com.SportsIn Australia, Honda advertised heavily during most motor racing telecasts, and was the officialsponsor of the 2006 FIA Formula 1 telecast on broadcaster channel "Ten". In fact, it was the onlymanufacturer involved in the 2006 Indy Racing League season. In a series of adverts promotingthe history of Hondas racing heritage, Honda claimed it "built" cars that won 72 Formula 1Grand Prix. Skeptics have accused Honda of interpreting its racing history rather liberally,saying that virtually all of the 72 victories were achieved by Honda powered(engined) machines,whereas the cars themselves were designed and built by Lotus F1, Williams F1, and McLaren F1teams, respectively. However, former and current staff of the McLaren F1 team have reiteratedthat Honda contributed more than just engines and provided various chassis, tooling, andaerodynamic parts as well as funding. Ayrton Senna, arguably the greatest F1 driver of all time,repeatedly stated that Honda probably played the most significant role in his three worldchampionships. He had immense respect for founder, Soichiro Honda, and had a goodrelationship with Nobuhiko Kawamoto, the chairman of Honda at that time. Senna once calledHonda "the greatest company in the world".MARKETTING STRATEGIES OF HONDA
    • As part of its marketing campaign, Honda is an official partner and sponsor of the NationalHockey League, the Anaheim Ducks of the NHL, and the arena named after it: Honda Center.Honda also sponsors The Honda Classic golf tournament and is a sponsor of Major LeagueSoccer. The "Honda Player of the Year" award is presented in United States soccer. The "HondaSports Award" is given to the best female athlete in each of twelve college sports in the UnitedStates. One of the twelve Honda Sports Award winners is chosen to receive theHonda-BroderickCup, as "Collegiate Woman Athlete of the Year."MARKETTING STRATEGIES OF HONDA
    • Marketing StrategiesIt has described a category scheme consisting of three general types of strategies that arecommonly used by businesses to achieve and maintain competitive advantage. These threegeneric strategies are defined along two dimensions: strategic scope and strategicstrength. Strategic scope is a demand-side dimension and looks at the size and composition of themarket you intend to target. Strategic strength is a supply-side dimension and looks at thestrength or core competency of the firm. In particular he identified two competencies that he feltwere most important: product differentiation and product cost (efficiency).He originally ranked each of the three dimensions (level of differentiation, relative product cost,and scope of target market) as either low, medium, or high, and juxtaposed them in a threedimensional matrix. That is, the category scheme was displayed as a 3 by 3 by 3 cubes. But mostof the 27 combinations were not viable.MARKETTING STRATEGIES OF HONDA
    • In his 1980 classic Competitive Strategy: Techniques for Analysing Industries and Competitors,Porter simplifies the scheme by reducing it down to the three best strategies. They are costleadership, differentiation, and market segmentation (or focus). Market segmentation is narrowin scope while both cost leadership and differentiation are relatively broad in market scope.Empirical research on the profit impact of marketing strategy indicated that firms with a highmarket share were often quite profitable, but so were many firms with low market share. Theleast profitable firms were those with moderate market share. This was sometimes referred to asthe hole in the middle problem. Porter’s explanation of this is that firms with high market sharewere successful because they pursued a cost leadership strategy and firms with low market sharewere successful because they used market segmentation to focus on a small but profitable marketniche. Firms in the middle were less profitable because they did not have a viable genericstrategy.MARKETTING STRATEGIES OF HONDA
    • Porter suggested combining multiple strategies is successful in only one case. Combining amarket segmentation strategy with a product differentiation strategy was seen as an effective wayof matching a firm’s product strategy (supply side) to the characteristics of your target marketsegments (demand side). But combinations like cost leadership with product differentiation wereseen as hard (but not impossible) to implement due to the potential for conflict between costminimization and the additional cost of value-added differentiation.Since that time, empirical research has indicated companies pursuing both differentiation andlow-cost strategies may be more successful than companies pursuing only one strategy.[1]Some commentators have made a distinction between cost leadership, that is, low cost strategies,and best cost strategies. They claim that a low cost strategy is rarely able to provide a sustainablecompetitive advantage. In most cases firms end up in price wars. Instead, they claim a best coststrategy is preferred. This involves providing the best value for a relatively low price.MARKETTING STRATEGIES OF HONDA
    • Cost Leadership StrategyThis strategy involves the firm winning market share by appealing to cost-conscious or price-sensitive customers. This is achieved by having the lowest prices in the target market segment, orat least the lowest price to value ratio (price compared to what customers receive). To succeed atoffering the lowest price while still achieving profitability and a high return on investment, thefirm must be able to operate at a lower cost than its rivals. There are three main ways to achievethis.The first approach is achieving a high asset turnover. In service industries, this may mean forexample a restaurant that turns tables around very quickly, or an airline that turns around flightsvery fast. In manufacturing, it will involve production of high volumes of output. Theseapproaches mean fixed costs are spread over a larger number of units of the product or service,resulting in a lower unit cost, i.e. the firm hopes to take advantage of economies ofscale and experience curve effects. For industrial firms, mass production becomes both a strategyand an end in itself. Higher levels of output both require and result in high market share, andcreate an entry barrier to potential competitors, who may be unable to achieve the scalenecessary to match the firms low costs and prices.MARKETTING STRATEGIES OF HONDA
    • The second dimension is achieving low direct and indirect operating costs. This is achieved byoffering high volumes of standardized products, offering basic no-frills products and limitingcustomization and personalization of service. Production costs are kept low by using fewercomponents, using standard components, and limiting the number of models produced to ensurelarger production runs. Overheads are kept low by paying low wages, locating premises in lowrent areas, establishing a cost-conscious culture, etc. Maintaining this strategy requires acontinuous search for cost reductions in all aspects of the business. This will include outsourcing,controlling production costs, increasing asset capacity utilization, and minimizing other costsincluding distribution, R&D and advertising. The associated distribution strategy is to obtain themost extensive distribution possible. Promotional strategy often involves trying to make a virtueout of low cost product features.The third dimension is control over the supply/procurement chain to ensure low costs. This couldbe achieved by bulk buying to enjoy quantity discounts, squeezing suppliers on price, institutingcompetitive bidding for contracts, working with vendors to keep inventories low using methodssuch as Just-in-Time purchasing or Vendor-Managed Inventory. Wal-Mart is famous forsqueezing its suppliers to ensure low prices for its goods. Dell Computer initially achievedmarket share by keeping inventories low and only building computers to order. Otherprocurement advantages could come from preferential access to raw materials, or backwardintegration.Some writers posit that cost leadership strategies are only viable for large firms with theopportunity to enjoy economies of scale and large production volumes. However, this takes alimited industrial view of strategy. Small businesses can also be cost leaders if they enjoy anyMARKETTING STRATEGIES OF HONDA
    • advantages conducive to low costs. For example, a local restaurant in a low rent location canattract price-sensitive customers if it offers a limited menu, rapid table turnover and employsstaff on minimum wage. Innovation of products or processes may also enable a startup or smallcompany to offer a cheaper product or service where incumbents costs and prices have becometoo high. An example is the success of low-cost budget airlines who despite having fewer planesthan the major airlines, were able to achieve market share growth by offering cheap, no-frillsservices at prices much cheaper than those of the larger incumbents.A cost leadership strategy may have the disadvantage of lower customer loyalty, as price-sensitive customers will switch once a lower-priced substitute is available. A reputation as a costleader may also result in a reputation for low quality, which may make it difficult for a firm torebrand itself or its products if it chooses to shift to a differentiation strategy in future.Differentiation StrategyDifferentiate the products in some way in order to compete successfully. Examples of thesuccessful use of a differentiation strategy are Hero Honda, Asian Paints, HLL, Nike athleticshoes, Perstorp BioProducts, Apple Computer, and Mercedes-Benz automobiles.A differentiation strategy is appropriate where the target customer segment is not price-sensitive,the market is competitive or saturated, customers have very specific needs which are possiblyunder-served, and the firm has unique resources and capabilities which enable it to satisfy theseneeds in ways that are difficult to copy. These could include patents or other Intellectual Property(IP), unique technical expertise (e.g. Apples design skills or Pixars animation prowess), talentedMARKETTING STRATEGIES OF HONDA
    • personnel (e.g. a sports teams star players or a brokerage firms star traders), or innovativeprocesses. Successful brand management also results in perceived uniqueness even when thephysical product is the same as competitors. This way, Chiquita was able to brand bananas,Starbucks could brand coffee, and Nike could brand sneakers. Fashion brands rely heavily onthis form of image differentiation.Variants on the Differentiation StrategyThe shareholder value model holds that the timing of the use of specialized knowledge can createa differentiation advantage as long as the knowledge remains unique.[2]This model suggests thatcustomers buy products or services from an organization to have access to its unique knowledge.The advantage is static, rather than dynamic, because the purchase is a one-time event.The unlimited resources model utilizes a large base of resources that allows an organization tooutlast competitors by practicing a differentiation strategy. An organization with greaterresources can manage risk and sustain profits more easily than one with fewer resources. Thisdeep-pocket strategy provides a short-term advantage only. If a firm lacks the capacity forcontinual innovation, it will not sustain its competitive position over time.MARKETTING STRATEGIES OF HONDA
    • Focus or Strategic ScopeThis dimension is not a separate strategy per se, but describes the scope over which the companyshould compete based on cost leadership or differentiation. The firm can choose to compete inthe mass market (like Wal-Mart) with a broad scope, or in a defined, focused market segmentwith a narrow scope. In either case, the basis of competition will still be either cost leadership ordifferentiation.In adopting a narrow focus, the company ideally focuses on a few target markets (also called asegmentation strategy or niche strategy). These should be distinct groups with specialized needs.The choice of offering low prices or differentiated products/services should depend on the needsof the selected segment and the resources and capabilities of the firm. It is hoped that by focusingyour marketing efforts on one or two narrow market segments and tailoring your marketingmix to these specialized markets, you can better meet the needs of that target market. The firmtypically looks to gain a competitive advantage through product innovation and/or brandMARKETTING STRATEGIES OF HONDA
    • marketing rather than efficiency. It is most suitable for relatively small firms but can be used byany company. A focused strategy should target market segments that are less vulnerable tosubstitutes or where a competition is weakest to earn above-average return on investment.Examples of firm using a focus strategy include Southwest Airlines, which provides short-haulpoint-to-point flights in contrast to the hub-and-spoke model of mainstream carriers, and FamilyDollar.In adopting a broad focus scope, the principle is the same: the firm must ascertain the needs andwants of the mass market, and compete either on price (low cost) or differentiation (quality,brand and customization) depending on its resources and capabilities. Wal Mart has a broadscope and adopts a cost leadership strategy in the mass market. Pixar also targets the massmarket with its movies, but adopts a differentiation strategy, using its unique capabilities instory-telling and animation to produce signature animated movies that are hard to copy, and forwhich customers are willing to pay to see and own. Apple also targets the mass market with itsiPhone and iPod products, but combines this broad scope with a differentiation strategy based ondesign, branding and user experience that enables it to charge a price premium due to theperceived unavailability of close substitutes.Recent developmentsMichael Treacy and Fred Wiersema (1993) in their book The Discipline of Market Leaders havemodified Porters three strategies to describe three basic "value disciplines" that can createMARKETTING STRATEGIES OF HONDA
    • customer value and provide a competitive advantage. They are operational excellence, productleadership, and customer intimacy.Criticisms of generic strategiesSeveral commentators have questioned the use of generic strategies claiming they lackspecificity, lack flexibility, and are limiting.In particular, Miller (1992) questions the notion of being "caught in the middle". He claims thatthere is a viable middle ground between strategies. Many companies, for example, have entered amarket as a niche player and gradually expanded. According to Baden-Fuller and Stopford(1992) the most successful companies are the ones that can resolve what they call "the dilemmaof opposites".A popular post-Porter model was presented by W. Chan Kim and Renée Mauborgne in their1999 Harvard Business Review article "Creating New Market Space". In this article theydescribed a "value innovation" model in which companies must look outside their presentparadigms to find new value propositions. Their approach fundamentally goes against Portersconcept that a firm must focus either on cost leadership or on differentiation. They later went onto publish their ideas in the book Blue Ocean Strategy.An up-to-date critique of generic strategies and their limitations, including Porter, appears inBowman, C. (2008) Generic strategies: a substitute for thinking? [1]MARKETTING STRATEGIES OF HONDA
    • Electric and alternative fuel vehicles2009 Honda Civic GX hooked up to Phill refueling systemMARKETTING STRATEGIES OF HONDA
    • Top: Brazilian flexible-fuel Honda Civic. Below: U.S. Honda Civic Hybrid.2010 Honda Insight hybrid electric vehicle(Second generation).MARKETTING STRATEGIES OF HONDA
    • Honda FCX Clarity hydrogen fuel cellvehicleCompressed Natural GasThe Honda Civic GX is the only purpose-built natural gas vehicle (NGV) commerciallyavailable in some parts of the U.S. The Honda Civic GX first appeared in 1998 as a factory-modified Civic LX that had been designed to run exclusively on compressed natural gas. The carlooks and drives just like a contemporary Honda Civic LX, but does not run on gasoline. In2001, the Civic GX was rated the cleanest-burning internal combustion engine in the world bythe U.S. Environmental Protection Agency (EPA).MARKETTING STRATEGIES OF HONDA
    • First leased to the City of Los Angeles, in 2005, Honda started offering the GX directly to thepublic through factory trained dealers certified to service the GX. Before that, only fleets wereeligible to purchase a new Civic GX. In 2006, the Civic GX was released in New York, makingit the second state where the consumer is able to buy the car. Home refueling is available for theGX with the addition of the Phill Home Refueling Appliance.Flexible-fuelHondas Brazilian subsidiary launched flexible-fuel versions for the Honda Civic and HondaFit in late 2006. As others Brazilian flex-fuel vehicles, these models run on any blendof hydrous ethanol (E100) and E20-E25 gasoline. Initially, and in order to test the marketpreferences, the carmaker decided to produce a limited share of the vehicles with flex-fuelengines, 33 percent of the Civic production and 28 percent of the Fit models. Also, the sale pricefor the flex-fuel version was higher than the respective gasoline versions, around US$1,000premium for the Civic, and US$650 for the Fit, despite the fact that all other flex-fuel vehiclessold in Brazil had the same tag price as their gasoline versions. In July 2009, Honda launched inthe Brazilian market its third flexible-fuel car, the Honda City.During the last two months of 2006, both flex-fuel models sold 2,427 cars against 8,546gasoline-powered automobiles, jumping to 41,990 flex-fuel cars in 2007, and reaching 93,361 in2008. Due to the success of the flex versions, by early 2009 a hundred percent of Hondasautomobile production for the Brazilian market is now flexible-fuel, and only a small percentageof gasoline version is produced in Brazil for exports.MARKETTING STRATEGIES OF HONDA
    • In March 2009, Honda launched in the Brazilian market the first flex-fuel motorcycle in theworld. Produced by its Brazilian subsidiary Moto Honda da Amazônia, the CG 150 Titan Mix issold for around US$2,700.Hybrid electricIn late 1999, Honda launched the first commercial hybrid electric car sold in the U.S. market ,the Honda Insight, just one month before the introduction of the Toyota Prius, and initially soldfor US$20,000. The first-generation Insight was produced from 2000 to 2006 and had afueleconomy of 70 miles per US gallon (3.4 L/100 km; 84 mpg-imp) for the EPAs highway rating, themost fuel-efficient mass-produced car at the time. Total global sales for the Insight amounted toonly around 18,000 vehicles.Honda introduced the second-generation Insight in its home nation of Japan in February 2009,and released it in other markets through 2009 and in the U.S. market in April 2009. At $19,800as a five-door hatchback it will be the least expensive hybrid available in the U.S. Honda expectsto sell 200,000 of the vehicles each year, with half of those sales in the United States.Since 2002, Honda has also been selling the Honda Civic Hybrid (2003 model) in the U.S.market,. It was followed by the Honda Accord Hybrid, offered in model years 2005 through2007. Sales of the Honda CR-Z began in Japan in February 2010, becoming Hondas third hybridelectric car in the market.In an interview in early February 2011, a Honda executive disclosed that Honda produces around200,000 hybrids a year in Japan.MARKETTING STRATEGIES OF HONDA
    • Hydrogen fuel cellIn Takanezawa, Japan, on 16 June 2008, Honda Motors produced the first assembly-line FCXClarity, a hybrid hydrogen fuel cell vehicle. More efficient than a gas-electric hybrid vehicle, theFCX Clarity combines hydrogen and oxygen from ordinary air to generate electricity for anelectric motor.The vehicle itself does not emit any pollutants and its only by products are heat and water. TheFCX Clarity also has an advantage over gas-electric hybrids in that it does not use an internalcombustion engine to propel itself. Like a gas-electric hybrid, it uses a lithium ion battery toassist the fuel cell during acceleration and capture energy through regenerative braking, thusimproving fuel efficiency. The lack of hydrogen filling stations throughout developed countrieswill keep production volumes low. Honda will release the vehicle in groups of 150. California isthe only U.S. market with infrastructure for fueling such a vehicle, though the number of stationsis still limited. Building more stations is expensive, as the California Air ResourcesBoard (CARB) granted $6.8 million for four H2 fueling stations, costing $1.7 million USD each.Objectives of the Study· To know about the Honda company.· To know about its Promotional activities.MARKETTING STRATEGIES OF HONDA
    • · Its Market Position.· Honda’s level of customer satisfaction.· Its history and the company profile.· Cost saving initiatives.HypothesisA hypothesis consists either of a suggested explanation for an observable phenomenon orof a reasoned proposal predicting a possible causal correlation among multiple phenomena. TheMARKETTING STRATEGIES OF HONDA
    • term derives from the Greek, hyposthenia meaning "to put under" or "to suppose." The scientificmethod requires that one can test a scientific hypothesis. Scientists generally base suchhypotheses on previous observations or on extensions of scientific theories. Even though thewords "hypothesis" and "theory" are often used synonymously in common and informal usage, ascientific hypothesis is not the same as a scientific theory.Hypothesis may be defined as a proposition or a set of proposition set forth as anexplanation for the occurrence of some specified group of phenomenon either asserted merely asa provisional conjecture to guide some investigation or accepted as highly probable in the lightof established facts. Quite often a research hypothesis is a predictive statement, capable of beingtested by scientific methods, that relates an independent variable to some dependent variable.NULL HYPOTHESISA null hypothesis is a hypothesis (within the context of statistical hypothesis testing) that mightbe falsified on the basis of observed data. The null hypothesis typically proposes a general ordefault position, such as that there is no relationship between two quantities, or that there is nodifference between a treatment and the control. The term was originally coined by Englishgeneticist and statistician Ronald Fisher.MARKETTING STRATEGIES OF HONDA
    • The null hypothesis (often denoted by H0) formally describes some aspect of the statistical"behavior" of a set of data. The Null Hypothesis is of this project report is that customers arehighly satisfied.ALTERNATE HYPOTHESISAlternative hypothesis is the "hypothesis that the restriction or set of restrictions to be tested doesNOT hold." often denoted H1. Synonym for maintained hypothesis. The Alternate Hypothesis ofthis project report is that customers are not satisfied Honda Quality & Assurance Cant be replaced by anyone. Honda Promotional Strategies are distinct and strike Honda directly in Mind Honda use new Technology to promote their existing products.Research MethodologyThe purpose of methodology is to describe the process involved in research work. This includesthe overall research design, data collection method, the field survey and the analysis of data.MARKETTING STRATEGIES OF HONDA
    • Research is a common parlance refresh to a search for knowledge. One can also define researchas a scientific & systematic search for pertinent information on a specific topic.In fact, research is an art of scientific investigation. The advance learner’s dictionary of currentEnglish lay down the meaning research as a careful investigation & inquiry specially search fornew facts in any branch knowledge.Research DesignResearch Design is the arrangement for conditioned for data collection & analysis of data in amanner that aims to combined relevance to research purpose with economy in procedure.A research design is a master plan or model for the conduct of formal investigation. It is blueprint that is followed in completing study.The research conducted by me is a descriptive research. This is descriptive in nature becausestudy is focused on fact investigation in a well structured from and is based on primary data.Research PlanMARKETTING STRATEGIES OF HONDA
    • Type of study: For completing my study I have gone for sample study because looking at thesize of population & the time limitation it was not convenient for me to cover entire population.Hence, I have gone for sample study rather than census study.Sampling PlanA sample design is a definite plan for obtaining a sample from a given population. It refers to thetechnique or the procedure that researcher would adopt in selecting items to be inched in thesample i.e. the size of sample. Sampling plan is determined before data are collected.Steps in Sampling:1. Understanding the Marketing strategies of Honda.2. Study the company profile & related aspects.3. To collect the information from self constructed questionnaire.4. Meeting with different owners of Honda showroom.5. Obtaining the opinion and suggestions of owners at different levels.6. Prepare questionnaire on the basis of above information.7. Gather information from different source like books Internet magazines etc.8. On the basis of the answers and the information gathered from other sources preparethe report.Sampling Frame:The list of sampling units from which sample is taken is called sampling frame.MARKETTING STRATEGIES OF HONDA
    • Sampling Size:Total sample size is 50.Sampling Procedure:The selection of respondents were accordingly to be in a right place at a right time and so thesampling were quite easy to measure, evaluate and co-operative. It was a randomly areasampling method that attempts to obtain the sample of convenient.DATA ANALYSISQ1.How long have you been associated with HONDA MotorsMARKETTING STRATEGIES OF HONDA
    • No. of RespondentsPercentage1. From 1 year 10 10%2. From 1 – 3 years 40 40%3. From 3 – 5 years 0 0%4. From 5 – 7 years 30 30%5. Above 7 years 20 20%Q2. (i)Knowledgeable SalespersonMARKETTING STRATEGIES OF HONDAASSOCIATED PEOPLE12345
    • No. of Respondents1. Strongly Disagree 02. Disagree 03. Neither Disagree Nor Agree 04. Agree 865. Strongly Agree 1486% people agreed that the sales persons are knowledgeable and 14% strongly disagreed that thesales persons are knowledgeable.Q2 (ii).MARKETTING STRATEGIES OF HONDASALESPERSON KNOWLEDGE12345
    • Employees spent enough time with you before salesNo. of Respondents1. Strongly Disagree 0%2. Disagree 0%3. Neither Disagree Nor Agree 0%4. Agree 64 %5. Strongly Agree 36%64% people agreed that the sales persons spent enough time with them before the sales and 36%strongly agreed with this.Q2 (ii).Employees spent enough time with you during salesNo. of RespondentsMARKETTING STRATEGIES OF HONDATIME SPENT12345
    • 1. Strongly Disagree 0%2. Disagree 4%3. Neither Disagree Nor Agree 0%4. Agree 62 %5. Strongly Agree 34 %62% agreed that sales persons spent enough time with them during the sales, while 34% stronglyagreed that the sales persons spent enough time with them during sales and only 4% disagreedwith this.Q2 (ii).Employees spent enough time with you after salesNo. of RespondentsMARKETTING STRATEGIES OF HONDATIME SPENT DURING SALES12345
    • 1. Strongly Disagree 0 %2. Disagree 22 %3. Neither Disagree Nor Agree 0 %4. Agree 54 %5. Strongly Agree 26 %60% agreed that the sales persons spent enough time with them after sales, 26% strongly agreedwith this and 14% disagreed that the sales persons spent enough time with them after sales.Q2 (iii).Display of MerchandizeNo. of RespondentsMARKETTING STRATEGIES OF HONDAAFTER SALES12345
    • 1. Strongly Disagree 0%2. Disagree 0 %3. Neither Disagree Nor Agree 0 %4. Agree 94 %5. Strongly Agree 6 %94% agreed that the display of merchandize was attractive and 6% strongly agreed that thedisplay of merchandize was attractive.Q2 (iv).Availability of the ProductNo. OfRespondentsMARKETTING STRATEGIES OF HONDAMERCHANDISE DISPLAY12345
    • 1. Strongly Disagree 0 %2. Disagree 4%3. Neither Disagree Nor Agree 0 %4. Agree 91 %5. Strongly Agree 5 %91% agreed that the availability of the product was there, 5% strongly agreed that the availabilitywas there while only 4% said they disagreed with this.Q2 (v).Variety/Selection of MerchandizeNo. ofRespondentsMARKETTING STRATEGIES OF HONDAPRODUCT AVAILABLITY12345
    • 1. Strongly Disagree 0%2. Disagree 6%3. Neither Disagree Nor Agree 0 %4. Agree 87 %5. Strongly Agree 7 %87% agreed that there was variety/selection of merchandize whereas 7% strongly agreed thatenough variety was there and 6% disagreed with this.Q.2 (vi) Vehicle in Good ConditionNo. ofRespondentsMARKETTING STRATEGIES OF HONDAVARIETY OF MERCHANDISE12345
    • 1. Strongly Disagree 0 %2. Disagree 2 %3. Neither Disagree Nor Agree 0 %4. Agree 82 %5. Strongly Agree 16 %82% agreed that the vehicle was in good condition when delivered, 16% strongly agreed withthis whereas only 2% disagreed with this.MARKETTING STRATEGIES OF HONDACONDITION OF VEHICLE12345
    • Q2 (vii).Prices Are Affordablei. No. of Respondents1. Strongly Disagree 0 %2. Disagree 12 %3. Neither Disagree Nor Agree 15 %4. Agree 21 %5. Strongly Agree 52 %64% strongly agreed that the prices are affordable, 21% agreed that the prices are affordablewhereas only 15% said that they neither disagreed nor agreed with this.Q2 (viii).Attractive Discounts OfferedMARKETTING STRATEGIES OF HONDAPRICE AFFORDABLITY12345
    • No. of Respondents1. Strongly Disagree 0%2. Disagree 26%3. Neither Disagree Nor Agree 0%4. Agree 47%5. Strongly Agree 27%55% agreed that the discounts offered are attractive, 34% strongly agreed with this while 11%disagreed and said that the discounts offered were not attractive.MARKETTING STRATEGIES OF HONDADISCOUNT OFFERED12345
    • Q2 (ix).Décor Of The Waiting Area Is PleasingNo. ofRespondents1. Strongly Disagree 0%2. Disagree 0%3. Neither Disagree Nor Agree 0%4. Agree 80%5. Strongly Agree 20%80%agreed that the décor of the waiting area was pleasing while 20% strongly agreed that thedécor of the waiting area was pleasingMARKETTING STRATEGIES OF HONDADECOR OF WAITING AREA12345
    • Q2 (x).Offered A Test Drivei. No. of Respondents2. Strongly Disagree 0%3. Disagree 20%4. Neither Disagree Nor Agree 0%5. Agree 74%6. Strongly Agree 6%.74%agreed that the test drive was offered to them, 6% strongly agreed that the test drive wasoffered while 20% disagreed with this.MARKETTING STRATEGIES OF HONDATEST DRIVE OFFERED12345
    • Q2 (xi).Post Sales Follow Up Done RegularlyNo. ofRespondents1. Strongly Disagree 0%2. Disagree 15%3. Neither Disagree Nor Agree 0%4. Agree 59%5. Strongly Agree 26%59%agreed that the post sales follow ups are done regularly, 26% strongly agreed and15%disagreed with this.MARKETTING STRATEGIES OF HONDASERVICE FOLLOW UPS12345
    • Q2 (xii).Responds To complaints QuicklyNo. of RespondentsPercentage1. Strongly Disagree 0%2. Disagree 9%3. Neither Disagree Nor Agree 12%4. Agree 61%5. Strongly Agree 18%4% agreed that the response to complaints is quick, 18% strongly agreed, 12% neither agreed nordisagreed and 6% disagreed with this.MARKETTING STRATEGIES OF HONDARESPONSE TIME12345
    • Q2 (xiii).Service At HONDA Service Station Is ExcellentNo. of Respondents1. Strongly Disagree 0%2. Disagree 4%3. Neither Disagree Nor Agree 0%4. Agree 82%5. Strongly Agree 14%82% said that the service at HONDA service station is excellent, 14% strongly agreed while only4% disagreed with this.MARKETTING STRATEGIES OF HONDASERVICE STATION RESPONSE12345
    • Q2 (xiv).Careful With Personal InformationNo. of Respondents1. Strongly Disagree 0%2. Disagree 0%3. Neither Disagree Nor Agree 8%4. Agree 85%5. Strongly Agree 7%85% agreed that yes they were careful with personal information, strongly agreed with this andMARKETTING STRATEGIES OF HONDACONFIDENTIALITY12345
    • 8% neither agreed nor disagreed.Q2 (xv).All The Commitments Are FulfilledNo. of Respondents1. Strongly Disagree 0%2. Disagree 7%3. Neither Disagree Nor Agree 0%4. Agree 6%5. Strongly Agree 87%94% strongly agreed that all the commitments were fulfilled and 6% agreed with this.MARKETTING STRATEGIES OF HONDACOMMITTMENT FULFILLMENT12345
    • Q3 (i). Are you aware of the following facilities provided by HONDA?Insurance ( Cashless ) with 0 depreciation .No. of Respondents1. Yes 98%2. No 2%98% said yes that they are aware about HONDA insurance while only 2% said that they were notaware.Q3 (ii) Extended warrantyNo. of Respondents1. Yes 97%2. No 3%97% said they were aware about extended warranty and 3% said that they did not know abouthis.MARKETTING STRATEGIES OF HONDA1212
    • Q3 (iii). Auto TerraceNo. of Respondents1. Yes 98%2. No 2%98% said they were aware about true value and 2% said they were not aware.Q3 (iv) HONDA Motors financeNo. of Respondents1. Yes 75%2. No 25%75% said that they were aware about HONDA Motors finance and 25% said that they were notaware of it.MARKETTING STRATEGIES OF HONDA12
    • Q3 (v) AutocardNo. of Respondents1. Yes 84%2. No 16%84% said that they were aware about autocard and 16% said that they were not aware of it.Q3 (vi).Genuine AccessoriesNo. ofRespondents1. Yes 85%2. No 15%85% said that they were aware of genuine accessories available and 15% said they werenotaware.MARKETTING STRATEGIES OF HONDA1212
    • Q4.What is your overall opinion about HONDA?ChoiceNo. of Respondents1. Very bad 0%2. Bad 0%3. Neither bad nor good 0%4. Good 4%5. Very good 96%96% said that there overall opinion about TATA was that it is very good while 4% said that it isgood.MARKETTING STRATEGIES OF HONDA12345
    • Q 5. How likely would you recommend HONDA?Recommendi. No. of Respondents2. Very Unlikely 0%3. Unlikely 0%4. Neither Unlikely nor likely 0%5. Likely 10%6. Very Likely 90%90% people said they would very likely recommend HONDA to other people and 10% said theywould likely recommend HONDA to others.MARKETTING STRATEGIES OF HONDA12345
    • Q.6) Do you like the promotions and ad campaigns of HONDA Motors?No. of Respondents1.Very Unlikely 0%2.Likely 70%3.Very Likely 30%Promotional Strategies and Ad Campaigns used by Honda are basically to represent whole Brandnot the particular product ..In India current effective campaign is POWER OF DREAMS . featuring HONDA CIVIC andCITY on a long Freeway …MARKETTING STRATEGIES OF HONDA123
    • CONCLUSIONOn an average more than 73% people feel that the prices are affordable whereas 12%do not agree, 74% believe that attractive discounts are offered whereas 26% are notsatisfied withthe discounts offered. 20% said that the test drives are not offered and15% said that post sales follow ups are not done regularly whereas 85% said that theywere done regularly but people feel that it is the people’s car as it is satisfactory on allother parameters: knowledgeable sales persons , employees spent enough time beforeand during sales, display of merchandise is attractive, availability of product, variety ofmerchandize, vehicle in good condition, prices are affordable, attractive discounts areoffered, décor of the waiting area is pleasing, responds to complaints quickly, service atTATA Motors service station is excellent, careful with personal information and is valuefor money . The overall opinion about TATA Motors is very good. 86% people agreedthat the sales persons are knowledgeable and 14% strongly disagreed that the salespersons are knowledgeable. 64% people agreed that the sales persons spent enoughtime with them before the sales and 36% strongly agreed with this. 62% agreed thatsales persons spent enough time with them during the sales, while 34% strongly agreedthat the sales persons spent enough time with them during sales and only 4% disagreedwith this.MARKETTING STRATEGIES OF HONDA
    • 60% agreed that the sales persons spent enough time with them after sales, 26%strongly agreed with this and 14% disagreed that the sales persons spent enough timewith them after sales. 94% agreed that the display of merchandize was attractive and6% strongly agreed that the display of merchandize was attractive. 91% agreed that theavailability of the product was there, 5% strongly agreed that the availability was therewhile only 4% said they disagreed with this.87% agreed that there was variety/selection of merchandize whereas 7% stronglyagreed that enough variety was there and 6% disagreed with this. 82% agreed that thevehicle was in good condition when delivered, 16% strongly agreed with this whereasonly 2% disagreed with this. 64% strongly agreed that the prices are affordable, 21%agreed that the prices are affordable whereas only 15% said that they neither disagreednor agreed with this.55% agreed that the discounts offered are attractive, 34% strongly agreed with thiswhile 11% disagreed and said that the discounts offered were not attractive. 80%agreedthat the décor of the waiting area was pleasing while 20% strongly agreed that thedécor of the waiting area was pleasing 74% agreed that the test drive was offered tothem, 6% strongly agreed that the test drive was offered while 20% disagreed with this.59% agreed that the post sales follow ups are done regularly, 26% strongly agreed and15%disagreed with this. 4% agreed that the response to complaints is quick, 18%strongly agreed, 12% neither agreed nor disagreed and 6% disagreed with this.MARKETTING STRATEGIES OF HONDA
    • 82% said that the service at HONDA service station is excellent, 14% strongly agreedwhile only 4% disagreed with this. 85% agreed that yes they were careful with personalinformation, strongly agreed with this and 8% neither agreed nor disagreed. 94%strongly agreed that all the ommitments were fulfilled and 6% agreed with this. 98% saidyes that they are aware about the Insurance Schemes of HONDA while only 2% saidthat they were not aware.WEBLIOGRAPHYMARKETTING STRATEGIES OF HONDA
    • 1. dreams.honda.com2. world.honda.com3. www.wikipedia.com4. www.hondacarsindia.com5. www.scribd.comQUESTIONNAREMARKETTING STRATEGIES OF HONDA
    • Being an esteem customer of HONDA SIEL CARS INDIA Ltd.you are requested to take outa few minutes and fill the following QUESTIONNAIRE:Name: ……………………………………………………………Address:_________________________________________________________________________________________________________________________________________________________________________ Pin Code____________Gender:MaleFemaleAge:Below1818-2526-3536-5051 and aboveMARKETTING STRATEGIES OF HONDA
    • Occupation:Service Business Student HousewifeQ.1) How long have you been associated with HONDA?_______________________________________________________________________Q.2.) How would you rate HONDA Motors on the following parameter?Strongly disagreeDisagreeNeither agree Nor disagreeAgreeStrongly agreei) Knowledgeable sales personii) Employees spent enough timeMARKETTING STRATEGIES OF HONDA
    • with you:Before salesDuring salesAfter salesiii) Display of merchandise is attractiveiv) Availability of the productv) Variety/selection of merchandisevi) Vehicle in good conditionvii) Prices are affordableviii) Attractive discounts offeredix) Décor of the waiting area is pleasingx) Offered a test drivexi) Post sales follow ups are done regularlyMARKETTING STRATEGIES OF HONDA
    • xii) Responds to complaints quicklyxii) Service at HONDA service station is excellentxvi) Careful with personal informationxv) All the commitments are fulfilledxvi) Value for moneyQ.3) Are you aware of the following facilities provided by Tata Motors?FACILITIES Yes Noi) HONDA Motors insuranceii) Extended warrantyiii) Auto Terraceiv) Finance Schemesv) Autocardvi) Genuine accessoriesQ.4) What is your overall opinion about HONDA Motors?1.Very BadMARKETTING STRATEGIES OF HONDA
    • 2.Neither Bad Nor Good3.Good4.Very GoodQ.5) How likely would you recommend HONDA Motors?1.Very Unlikely2.Likely3.Very LikelyQ.6) Do you like the promotions and ad campaigns of HONDA Motors?1.Very Unlikely2.Likely3.Very LikelyDate :Sign of Customer Sign ofEmployeeCONCLUSIONMARKETTING STRATEGIES OF HONDA
    • Honda is committed to further advancing power train technologies in order to offer new productsand technologies that satisfy growing demand from customers around the world for high fuelefficiency and to achieve more environmentally-friendly mobility that more people can enjoy.Honda will continue to dedicate company resources to the creation of new technologies. Hondawill also continue making capital investments proactively to strengthen the flexibility andefficiency of its global production network.Setting customer satisfaction as our number one priority, Honda strives to provide the joy ofmobility to even more customers through the introduction of new technologies and new products.n this is achieved, our sales should reach approximately 16 million units for motorcycles,approximately 4 million units for automobiles, and approximately 6.5 million units for powerproducts by the end of the 9thMid-term. In terms of sales revenue, this will exceed 10 trillionyen.Through all of these efforts, Honda’s goal is to be a company that society wants to exist, topursue the joy of mobility, and to extend this joy to more customers and to future generations.MARKETTING STRATEGIES OF HONDA