This document outlines a 10 step marketing plan for Honda Cars Philippines. It identifies Honda's target market as up and coming class A and B demographics who want value, elegance and prestige. Honda differentiates itself from competitors like Toyota by being exclusively for private use and not allowing its vehicles to be used as public utility vehicles. The plan details Honda's product lineup, pricing strategy, promotional activities including print and TV ads, and nationwide dealer network. The goal is to position Honda as a premium brand through an exclusive focus on the private vehicle market.

1. 10 STEP Marketing Plan for HONDA Cars Philippines Luis Angelo M. Ibarra February 23, 2010

2. 5 Steps for Part 1 (PTM & Positioning) PTM: Up and coming Class A and B NEW: Want value for money and at the same time want elegance and prestige – there are no Honda PUVs! Competitors: Can choose Toyota or other car manufacturers Gap: Other car makes may be used as PUV, Honda is exclusively for Private use only 3C’s: Php144.6B Market !

3. 5 Steps for Part 2 (Marketing Mix & Strategy) Product: Cars and SUVs Price: Varies on model of vehicle, but usually more expensive or the same as their Toyota counterparts Promo: Uses print and some TV ads –also ties up with other promos with car prizes, race teams Place: Available in dealers nationwide Uses a differentiation strategy, with their designs and exclusivity of being for Private only

4. Positioning to the Primary Target Market Part 1: Steps 1 to 5

5. 1. Honda PTM are the Up and Coming Class A & B Demographics: 30-50 yrs old, M/F, social class AB, single and married Lifestyle: working class, established with work and has buying power, fairly successful, wants value for money and prestige in what they drive Behavior: replaces car every 5 to 7 years, monthly amortization of 15 to 20K, good ride, efficient fuel consumption

6. Safe from the hazards of commuting I belong to the higher classes who can afford I feel “made” and confident In my nice car Self acceptance, “I am a success in my own right”

7. 2. My PTM’s NWE Class A and B need… To be safe from the hazards of commuting , belong socially, be confident, self actualization and acceptance Honda over Toyota or other makes because… “ Power of dreams (Honda tagline)” –dream fulfilled, the look and feel of the car, the efficient fuel consumption, price , credibility & image of the company, the exclusivity of Honda for private use only

8. 2. My PTM’s NWE (cont’d…) Expectations are… A luxury item and increased convenience when traveling , above average fuel efficiency, a good ride, an image booster

9. 3a. Honda Competitors Direct: Toyota , Mitsubishi, Mazda, Ford, Nissan Indirect: Motorcycles, improved or promises of improved mass transit, investment opportunities (business, real estate, etc.) Variables: Price , income bracket, vehicle type (compact sedan, sedan, SUV, UV, van, pick-up truck, etc.), aesthetics, car features, fuel consumption, brand

10. Honda is the Clear Number 2 in Sedan and Compact vehicles, next only to Toyota Price vs. Vehicle type need Low price Medium price High price Price / vehicle type Compact Sedan UV SUV Toyota Honda Mazda Ford Mitsu Nissan

11. Honda’s Unique Positioning is Shown in This Competitive Map Vehicle types are only those offered here in the Philippines Positioning vs. Brand Matrix Honda Toyota Mitsu Nissan Mazda Ford SUV UV Pick-up Truck Sedan Compact Van Hybrid Private Only

12. 4. Honda Banks on its Image and Reputation Honda is the only brand… Which is exclusively for private only Which gives owners the feeling of class, elegance, and prestige (most especially in the lower priced compact cars and sedans –others are seen as PUVs, but not Honda!) No other manufacturer has a similar position. Others sacrifice this image by allowing their vehicles to be PUVs in exchange of higher sales

13. 5a. Based on LTO Data, there are 156K New Cars, SUV, & UV in 2008! Source: http://www.lto.gov.ph/Stats2008/no_of_registered_MV_typeMode_LTO2008_2.pdf

14. 5b. Based on Assumption of Vehicle Prices using Market Knowledge, it’s a P144.6B Market Breakdown: 49K new cars 26K new SUV 81K new UV Assuming Php750K per car, Php1.5M SUV, Php850K per UV –that’s a Php144.6B Market !

15. 6a. In Sedans, Honda has 5 Major Direct Competitors Honda Toyota Mitsu Mazda Nissan Ford Compact SUV Sedan

16. 6a. Indirect Competitors vary from Real Estate to Business Ventures Business Bank Investments Real estate Condominiums

17. 6b. Product Description Honda usually flaunt stylish curves and sleek interior designs. Their engines are often considered as one of the more powerful in the Asian car manufacturers industry Honda caters to the compact car, Sedan, and SUV (actually mini-SUV) market In each offering above, they offer several variances –ranging from engine displacement, transmission type (MT/AT), and other features

18. 7. Honda is Priced Higher by 41% than the Cheapest Make In the Sedan type, lowest prices offered are as follows: Honda Civic 1.8V: Php858K Toyota Altis 1.6E: Php784K Mitsubishi Lancer 1.6GLX: Php685K Nissan Sentra 1.3GX: Php610K Mazda 3 1.6S: Php860K Ford Focus Style 1.8: Php779K Honda is usually more expensive, but gives value for money with the engine displacement and features they have – in the cheapest variant, Honda has power everything (windows, side mirrors, steering, etc.)

19. 8a. Promo Proposal: billboard ads along main thoroughfares such as EDSA

20. 8a. Promo Proposed: Direct mail To their PTM!

21. 8a. Promo Proposed: More TV commercials on programs watched by PTM –news programs, car enthusiast shows, feature shows, etc.

22. 8a. Promo Proposed: testimonials from bankable celebrities who exude “ class” and “prestige” -- offhand: Piolo, Sam, Jericho, Dingdong, John Lloyd (Clear shampoo chose well!)

23. 8a. Promo Print ads in top 3 Broadsheets –placed In sections read by PTM (special feature, sports, business, etc.)

24. 8a. Promo Honda currently has their own racing team, further showing that their engine technology can compete with the best

25. 8a. Promo Honda has a clean- looking website which banners their latest car models and other news briefs

26. 8b. Competitor promo Toyota has sales Promotions every now and then

27. 8b. Competitor promo They also place print ads in major broadsheets (and so does the other makes)

28. 8b. Competitor promo Toyota maintains an uncluttered site, which banners their latest sales promo

29. 8b. Competitor promo Toyota also has TVCs , just like Honda and some other car makes

30. 8b. Competitor promo They also have a racing team!

31. 8b. Competitor promo The primary competitor, Toyota, is practically doing what Honda has been doing and more (bigger sales promos). The only disadvantage Toyota has in the Class A and (upper) B market is that Toyota is used as PUVs and might turn off potential buyers.

32. 9. Honda has Dealers nationwide in Key Luzvismin Areas Honda has 26 dealers nationwide, with 10 in NCR, 9 in Luzon, 4 in Visayas, and 3 in Mindanao Cars are ordered and may be delivered at your home or picked up at the dealer Mode of payment may vary from a mix of credit card (for down/partial payment), cash or financing

33. 10. Honda is Different Honda’s main strategy is to target up and coming class A & B through differentiation by offering a product that cannot be associated with PUVs (despite their price range competing with some PUV-affordable models) It benefits from the global marketing machinery used by Honda (F1, ads over cable channel, etc.) Has premium priced, excellent product available nationwide

34. SUMMARY

35. 5 Steps for Part 1 (PTM & Positioning) PTM: Up and coming Class A and B NEW: Want value for money and at the same time want elegance and prestige – there are no Honda PUVs! Competitors: Can choose Toyota or other car manufacturers Gap: Other car makes may be used as PUV, Honda is exclusively for Private use only 3C’s: Php144.6B Market !

36. 5 Steps for Part 2 (Marketing Mix & Strategy) Product: Cars and SUVs Price: Varies on model of vehicle, but usually more expensive or the same as their Toyota counterparts Promo: Uses print and some TV ads –also ties up with other promos with car prizes, race teams Place: Available in dealers nationwide Uses a differentiation strategy, with their designs and exclusivity of being for Private only

37. 10 STEP Marketing Plan for HONDA Cars Philippines Luis Angelo M. Ibarra February 23, 2010