10 STEP

Marketing Plan for
Honda CIVIC
Mary Anne Cuartero
October 2013

http://maryannecuartero@blogspot.com

1
Disclaimer
This 10 Step Marketing Plan is part of the mandatory
requirements of Prof. Remigio Joseph De Ungria’s
AGSB marketing management class.
The data included in this report are based on publicly
available data such as those on internet websites,
news, package declarations, public reports.
When appropriate, data are “masked” so as not to
create unexpected conflicts.
The reports are posted and linked on slideshare, blogs
and facebook so that there is easier sharing among
students from different marketing classes.
Steps 1 to 5

The Good Life with Civic
1.

2.
3.

4.

5.

Civic’s PTM are young
professionals/, businessmen/women
Who wants luxury and powerful engines
Other choices are
Altis, Focus, Elantra, Cruze, and Mazda 3
Gap is on a car which exudes luxury and
status
Market size is not less than Php41B
Steps 6 to 10

A taste of luxury
6.

7.
8.

9.

10.

Civic – a compact sedan
Price starts at Php908,000.00
Product is promoted by means of
advertising, events and experiences, person
to person selling, and promotions
Dealership is strategically located all over
Philippines
Makes use of DIFFERENTIATION as winning
strategy
1. Honda Civic’s PTM wants a touch of
luxury and powerful engines






30 to 50 years old, Male or
Female, Social Class A,B, or
C, Single, Married – with or without kids
Professionals and businessmen/women
who can afford to buy expensive cars.
They replace cars every 3 to 5 years
and are after the quality, prestige and
status that goes with the brand.
Describe your PTM needs
Self-Actualization
Needs
(Self-Development
& Realization)

I feel confident because
I own a Honda CIVIC

I am in the same circle as
those who have “class”

Safety is very important

I am Successful

Esteem Needs
(Recognition, Statu
s)

Social Needs (sense of
belonging, love)

Safety Needs (security, protection)

Physiological needs (food, water, shelter)
Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler

6
2. PTM’s needs, wants &
demands
Needs: high regard for safety, to belong to a chosen
“class” of people, to be recognized, and achieve
self-actualization.
Wants: brand promise that it will maintain high
standards of quality, design, and prestige.
Demands: powerful engines, sleek
design/elegance, fuel efficient, status – a car
that is not being used as a Public Utility
Vehicle, and luxury.
3a. The Honda Civic has many
competitors in the market






Direct: Toyota Altis, Chevrolet Cruze, Ford
Focus, Mazda 3, Hyundai Elantra
Indirect: SUV’s of the same price range –
both brand new and second hand, cheaper
cars (i.e. Honda City, Vios, etc.)
Variables: Age, design, color
choices, efficiency, performance and
promise of luxury or status.
Honda Civic is no. 1 in the category of
sedans with prestigious personas

as of 2011
Design vs. Status

Design/
Status
High
Prestige
Low
Prestige

Interior

Mazda 3

Civic

Altis

Exterior

Ford
Focus

Elantra

Civic

Altis

Ford
Focus

Mazda 3

Cruze
as of 2011

Honda Civic’s Positioning to be a
leader in “prestigious” Sedans

Benefit Positioning vs. Brand Matrix
Functional Benefit

Civic

Altis

Elantra

Cruze

Focus

Mazda 3

Double Airbags
Alert Sensors
Airconditioning
Eco-Assist
Key-less Entry
Front & Rear Disc Breaks

Harder to stand out amidst the competitive clutter.
4. The Honda Civic Strongly Positions
itself through Image and Reputation
Honda Civic is a brand which…
 Offers affordable luxury, elegance and
prestige
 Gives the owner that feeling of “class” and
confidence
 Has created a reputation of having powerful
engines.
4. The Honda Civic Strongly Positions
itself through Image and Reputation

Other brands are trying to be imbibe the
prestigious persona of Honda Civic.
The unique selling proposition should
focus on both performance and
prestige.
5a. Based on Competitor Press
Releases, Total Sedan Market is not
less than 156,000 units
Year
2012
2011
2010
2009
2008
2007
2006
Source: CAMPI

Total Industry
156,649.00
141,616.00
68,490.00
132,444.00
124,449.00
117,903.00
99,541.00

Passenger Car Sale
48,328.00
44,862.00
58,691.00
46,228.00
44,425.00
41,213.00
38,479.00
From the No. 2 Post, Honda went down
to No. 3 in the last 2 years
Brand
2011
Toyota
33%
Hyundai
12%
Ford/Mazda
7%
Honda
7%
Chevrolet
1%
Source: www.topgear.com.ph

Share
2010
2009
33%
34%
12%
8%
5%
6%
9%
13%
No Data No Data

2008
37%
8%
6%
11%
No Data
Honda Philippines’ Vows to
Regain Market Share
1.

2.

3.

Based on Company Data: Honda cars
sold 12,653 units in 2012
Honda Philippines Sees a 9% increase
in car sales for 2013
Total market size of passenger cars is
30.85% of the total sales of the entire
industry
5c. The Number of New Vehicles
Registered with the LTO Increased at
the Rate of 6% Per Year

In 2011, a total of 61,743 new cars
were registered with the LTO

1.



Some banks receive a total of 50 to 70
car loan applications per month.
5. As of 2012, the Total Marketshare
of Cars is not Less that Php41B
1.

Competitor data= 13 Billion

2.

Company data = 13 Billion

3.

Customer Usage data = 41 Billion
6a. In High End Sedans, Civic
has 5 Competitors
Honda Civic

Toyota Altis

Hyundai Elantra

Ford Focus

Mazda 3

Chevrolet Cruze
6b. The Honda Civic at a
Glance
Colors

White Orchid
Carnelian Red
Crystal Black
Urban Titanium
Frosty White
Taffeta White

Variant &
Transmission

2.0 EL – 5AT; 1.8E – 5AT;
1.8S – 5AT and 5MT

Engine

SOHC i-VTEC
7. Price
Model Variant

Price

Civic 1.8 S MT

Php908,000.00

Civic 1.8 S AT

Php948,000.00

Civic 1.8 E AT

Php1,008,000.00

Civic 2.0 EL AT

Php1,145,000.00

Civic 2.0 EL AT (White Orchid Pearl)

Php1,165,000.00
A Comparison of Prices
Make

Price Range

Civic

Php908,000.00 – 1,165,000.00

Altis

Php814,000.00 – 1,155,000.00

Focus

Php859,000.00 – 1,218,000.00

Mazda 3

Php899,000.00 – 1,299,000.00

Elantra

Php818,000.00 – 958,000.00

Cruze

Php858,888.00 – 1,103,888.00
8.a. Modes Being Used to
Market the Honda Civic
Mass

Personal

Sales Promotion – 1

Personal Selling - 2

Advertising - 3

Word of Mouth - 5

Events and Experience
-4
8a. Honda Civic Promotions
8b. Competitors promotions
9. 28 Dealer Locations All
Over the Philippines








NCR
 10 Dealers
Luzon
 11 Dealers
Visayaz
 4 Dealers
Mindanao
 3 Dealers
10. What is the generic
winning strategy?
Which of the 4 strategies are being used?
(bold and underline to most dominant
strategy)






Low Cost Producer
Supply and Distribution Leverage
Differentiation - Civic differentiates
itself from the rest through reputation,
price, and performance
Niche
SUMMARY

http://maryannecuartero@blogspot.com

27
Steps 1 to 5

The Good Life with Civic
1.

2.
3.

4.

5.

Civic’s PTM are young professionals/,
businessmen/women
Who wants luxury and powerful engines
Other choices are Altis, Focus, Elantra,
Cruze, and Mazda 3
Gap is on a car which exudes luxury and
status
Market size is not less than Php41B
Steps 6 to 10

A taste of luxury
6.

7.
8.

9.

10.

Civic – a compact sedan
Price starts at Php908,000.00
Product is promoted by means of
advertising, events and experiences, person
to person selling, and promotions
Dealership is strategically located all over
Philippines
Makes use of DIFFERENTIATION as a
winning strategy
10 STEP

Marketing Plan for
Honda CIVIC
Mary Anne Cuartero
October 2013

http://maryannecuartero@blogspot.com

30

10 step marketing plan for civic

  • 1.
    10 STEP Marketing Planfor Honda CIVIC Mary Anne Cuartero October 2013 http://maryannecuartero@blogspot.com 1
  • 2.
    Disclaimer This 10 StepMarketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s AGSB marketing management class. The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports. When appropriate, data are “masked” so as not to create unexpected conflicts. The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes.
  • 3.
    Steps 1 to5 The Good Life with Civic 1. 2. 3. 4. 5. Civic’s PTM are young professionals/, businessmen/women Who wants luxury and powerful engines Other choices are Altis, Focus, Elantra, Cruze, and Mazda 3 Gap is on a car which exudes luxury and status Market size is not less than Php41B
  • 4.
    Steps 6 to10 A taste of luxury 6. 7. 8. 9. 10. Civic – a compact sedan Price starts at Php908,000.00 Product is promoted by means of advertising, events and experiences, person to person selling, and promotions Dealership is strategically located all over Philippines Makes use of DIFFERENTIATION as winning strategy
  • 5.
    1. Honda Civic’sPTM wants a touch of luxury and powerful engines    30 to 50 years old, Male or Female, Social Class A,B, or C, Single, Married – with or without kids Professionals and businessmen/women who can afford to buy expensive cars. They replace cars every 3 to 5 years and are after the quality, prestige and status that goes with the brand.
  • 6.
    Describe your PTMneeds Self-Actualization Needs (Self-Development & Realization) I feel confident because I own a Honda CIVIC I am in the same circle as those who have “class” Safety is very important I am Successful Esteem Needs (Recognition, Statu s) Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological needs (food, water, shelter) Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler 6
  • 7.
    2. PTM’s needs,wants & demands Needs: high regard for safety, to belong to a chosen “class” of people, to be recognized, and achieve self-actualization. Wants: brand promise that it will maintain high standards of quality, design, and prestige. Demands: powerful engines, sleek design/elegance, fuel efficient, status – a car that is not being used as a Public Utility Vehicle, and luxury.
  • 8.
    3a. The HondaCivic has many competitors in the market    Direct: Toyota Altis, Chevrolet Cruze, Ford Focus, Mazda 3, Hyundai Elantra Indirect: SUV’s of the same price range – both brand new and second hand, cheaper cars (i.e. Honda City, Vios, etc.) Variables: Age, design, color choices, efficiency, performance and promise of luxury or status.
  • 9.
    Honda Civic isno. 1 in the category of sedans with prestigious personas as of 2011 Design vs. Status Design/ Status High Prestige Low Prestige Interior Mazda 3 Civic Altis Exterior Ford Focus Elantra Civic Altis Ford Focus Mazda 3 Cruze
  • 10.
    as of 2011 HondaCivic’s Positioning to be a leader in “prestigious” Sedans Benefit Positioning vs. Brand Matrix Functional Benefit Civic Altis Elantra Cruze Focus Mazda 3 Double Airbags Alert Sensors Airconditioning Eco-Assist Key-less Entry Front & Rear Disc Breaks Harder to stand out amidst the competitive clutter.
  • 11.
    4. The HondaCivic Strongly Positions itself through Image and Reputation Honda Civic is a brand which…  Offers affordable luxury, elegance and prestige  Gives the owner that feeling of “class” and confidence  Has created a reputation of having powerful engines.
  • 12.
    4. The HondaCivic Strongly Positions itself through Image and Reputation Other brands are trying to be imbibe the prestigious persona of Honda Civic. The unique selling proposition should focus on both performance and prestige.
  • 13.
    5a. Based onCompetitor Press Releases, Total Sedan Market is not less than 156,000 units Year 2012 2011 2010 2009 2008 2007 2006 Source: CAMPI Total Industry 156,649.00 141,616.00 68,490.00 132,444.00 124,449.00 117,903.00 99,541.00 Passenger Car Sale 48,328.00 44,862.00 58,691.00 46,228.00 44,425.00 41,213.00 38,479.00
  • 14.
    From the No.2 Post, Honda went down to No. 3 in the last 2 years Brand 2011 Toyota 33% Hyundai 12% Ford/Mazda 7% Honda 7% Chevrolet 1% Source: www.topgear.com.ph Share 2010 2009 33% 34% 12% 8% 5% 6% 9% 13% No Data No Data 2008 37% 8% 6% 11% No Data
  • 15.
    Honda Philippines’ Vowsto Regain Market Share 1. 2. 3. Based on Company Data: Honda cars sold 12,653 units in 2012 Honda Philippines Sees a 9% increase in car sales for 2013 Total market size of passenger cars is 30.85% of the total sales of the entire industry
  • 16.
    5c. The Numberof New Vehicles Registered with the LTO Increased at the Rate of 6% Per Year In 2011, a total of 61,743 new cars were registered with the LTO 1.  Some banks receive a total of 50 to 70 car loan applications per month.
  • 17.
    5. As of2012, the Total Marketshare of Cars is not Less that Php41B 1. Competitor data= 13 Billion 2. Company data = 13 Billion 3. Customer Usage data = 41 Billion
  • 18.
    6a. In HighEnd Sedans, Civic has 5 Competitors Honda Civic Toyota Altis Hyundai Elantra Ford Focus Mazda 3 Chevrolet Cruze
  • 19.
    6b. The HondaCivic at a Glance Colors White Orchid Carnelian Red Crystal Black Urban Titanium Frosty White Taffeta White Variant & Transmission 2.0 EL – 5AT; 1.8E – 5AT; 1.8S – 5AT and 5MT Engine SOHC i-VTEC
  • 20.
    7. Price Model Variant Price Civic1.8 S MT Php908,000.00 Civic 1.8 S AT Php948,000.00 Civic 1.8 E AT Php1,008,000.00 Civic 2.0 EL AT Php1,145,000.00 Civic 2.0 EL AT (White Orchid Pearl) Php1,165,000.00
  • 21.
    A Comparison ofPrices Make Price Range Civic Php908,000.00 – 1,165,000.00 Altis Php814,000.00 – 1,155,000.00 Focus Php859,000.00 – 1,218,000.00 Mazda 3 Php899,000.00 – 1,299,000.00 Elantra Php818,000.00 – 958,000.00 Cruze Php858,888.00 – 1,103,888.00
  • 22.
    8.a. Modes BeingUsed to Market the Honda Civic Mass Personal Sales Promotion – 1 Personal Selling - 2 Advertising - 3 Word of Mouth - 5 Events and Experience -4
  • 23.
    8a. Honda CivicPromotions
  • 24.
  • 25.
    9. 28 DealerLocations All Over the Philippines     NCR  10 Dealers Luzon  11 Dealers Visayaz  4 Dealers Mindanao  3 Dealers
  • 26.
    10. What isthe generic winning strategy? Which of the 4 strategies are being used? (bold and underline to most dominant strategy)     Low Cost Producer Supply and Distribution Leverage Differentiation - Civic differentiates itself from the rest through reputation, price, and performance Niche
  • 27.
  • 28.
    Steps 1 to5 The Good Life with Civic 1. 2. 3. 4. 5. Civic’s PTM are young professionals/, businessmen/women Who wants luxury and powerful engines Other choices are Altis, Focus, Elantra, Cruze, and Mazda 3 Gap is on a car which exudes luxury and status Market size is not less than Php41B
  • 29.
    Steps 6 to10 A taste of luxury 6. 7. 8. 9. 10. Civic – a compact sedan Price starts at Php908,000.00 Product is promoted by means of advertising, events and experiences, person to person selling, and promotions Dealership is strategically located all over Philippines Makes use of DIFFERENTIATION as a winning strategy
  • 30.
    10 STEP Marketing Planfor Honda CIVIC Mary Anne Cuartero October 2013 http://maryannecuartero@blogspot.com 30