Honda project report

Market survey report

1. EXECUTIVE
SUMMARY
MARKETTING STRATEGIES OF HONDA

2. Executive Summary
Business Summary
Honda 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 as
sports models, including trial and motor-cross racing; all terrain vehicles; personal watercrafts;
and multi utility vehicles. The company also produces various automobile products, including
passenger cars, minivans, multi-wagons, sport utility vehicles, and mini cars; and power products
comprising tillers, portable generators, general-purpose engines, grass cutters, outboard marine
engines, water pumps, snow throwers, power carriers, power sprayers, lawn mowers and lawn
tractors, home-use cogeneration units, thin film solar cells home use, and public and industrial
uses. In addition, it sells spare parts and provides after sales services are through retail dealers, as
well as involves in retail lending, leasing to customers, and other financial services, such as
wholesale financing to dealers. The company was founded in 1946 and is based in Tokyo, Japan
MARKETTING STRATEGIES OF HONDA

3. CONTENTS
1.Introduction
2.Company Profile
3.Importance & Scope
4.Research Objectives
5.Hypothesis
6.Research Methodology
7.Data Analysis
8.Findings
9.Suggestions
10. Limitations
11.Bibliography
12.Annexure
MARKETTING STRATEGIES OF HONDA

4. INTRODUCTION
MARKETTING STRATEGIES OF HONDA

5. INTRODUCTION
Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's
largest manufacturer of internal combustion engines measured by volume, producing more than
14 million internal combustion engines each year. Honda surpassedNissan in 2001 to become the
second-largest Japanese automobile manufacturer. As of August 2008, Honda
surpassed Chrysler as the fourth largest automobile manufacturer in the United States. Honda is
the sixth largest automobile manufacturer in the world.
Honda was the first Japanese automobile manufacturer to release a dedicated luxury
brand, Acura, in 1986. Aside from their core automobile and motorcycle businesses, Honda also
manufactures garden equipment, marine engines, personal watercraft and power generators,
amongst others. Since 1986, Honda has been involved with artificial intelligence/robotics
research and released their ASIM Orobot in 2000. They have also ventured into aerospace with
the 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

6. COMPANY
PROFILE
MARKETTING STRATEGIES OF HONDA

7. History of Honda
From a young age, Honda's founder, Soichiro Honda (本田 宗一郎, Honda Sōichirō) had a great
interest in automobiles. He worked as a mechanic at a Japanese tuning shop, Art Shokai, where
he tuned cars and entered them in races. A self-taught engineer, he later worked on a piston
design which he hoped to sell to Toyota. The first drafts of his design were rejected, and Soichiro
worked painstakingly to perfect the design, even going back to school and pawning his wife's
jewelry for collateral. Eventually, he won a contract with Toyota and built a factory to construct
pistons for them, which was destroyed in an earthquake. Due to a gasoline shortage
during World War II, Honda was unable to use his car, and his novel idea of attaching a small
engine to his bicycle attracted much curiosity. He then established the Honda Technical Research
Institute in Hamamatsu, Japan, to develop and produce small 2-cycle motorbike engines. Calling
upon 18,000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart by
war, Soichiro received enough capital to engineer his first motorcycle, the Honda Cub. This
marked the beginning of Honda Motor Company, which would grow a short time later to be the
world's largest manufacturer of motorcycles by 1964.
The first production automobile from Honda was the T360 mini pick-up truck, which went on
sale in August 1963.
[10]
Powered by a small 356 cc straight-4 gasoline engine, it was classified
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8. under the cheaper Kei car tax bracket.
[citation needed]
The first production car from Honda was
the S500 sports car, which followed the T360 into production in October 1963. Its chain driven
rear wheels point to Honda's motorcycle origins.
Company Name
Honda Motor Co., Ltd.
Head Office
1-1, 2-chome, Minami-Aoyama, Minato-ku, Tokyo 107-8556, Japan
Tel: [phone]
Established
September 24, 1948
President & CEO
Takanobu Ito
Capital
¥86 billion (as of March 31, 2010)
Sales (Results of fiscal 2010)
Consolidated: ¥8,579,174 million
Unconsolidated: ¥2,717,736 million
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9. Total number of employees
Consolidated: 176,815 (as of March 31, 2010)
Unconsolidated: 26,121 (as of March 31, 2010)
Consolidated subsidiaries
390 subsidiaries (as of March 31, 2010)
Chief Products
Motorcycles, automobiles, power products
Aoyama Building
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10. Wako Building
CORPORATE PROFILE
Honda 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 and
The Joy of Creating. "Respect for the Individual" reflects our desire to respect the unique
character and ability of each individual person, trusting each other as equal partners in
order to do our best in every situation. Based on this, "The Three Joys" expresses our belief
and desire that each person working in, or coming into contact with our company, directly
or through or products, should share a sense of joy through that experience. In line with
these basic principles, since its establishment in 1948, Honda has remained on the leading
edge by creating new value and providing products of the highest quality at a reasonable
price, for worldwide customer satisfaction. In addition, the Company has conducted its
activities with a commitment to protecting the environment and enhancing safety in a
mobile society.
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11. The Company has grown to become the world's largest motorcycle manufacturer and one of
the leading automakers. With a global network of 492* subsidiaries and affiliates accounted
for under the equity method, Honda develops, manufactures and markets a wide variety of
products, ranging from small general-purpose engines and scooters to specialty sports cars,
to earn the Company an outstanding reputation from customers worldwide.
Honda In India
Honda Siel Cars India Ltd., (HSCI) was incorporated in December 1995 as a joint venture
between 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 the
Indian customers. The total investment made by the company in India till date is Rs 1620 crores
in Greater Noida plant and Rs 784 crores in Tapukara plant.
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12. HSCI’s first state-of-the-art manufacturing unit was set up at Greater Noida, U.P in 1997. The
green-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 manufacturing
facility is in Tapukara, Rajasthan. This facility is spread over 600 acres and will have an initial
production capacity of 60,000 units per annum, with an investment of about Rs 1,000 crore. The
first phase of this facility was inaugurated in September 2008.
The company’s product range includes Honda Jazz, Honda City, Honda Civic and Honda Accord
which 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’s
models are strongly associated with advanced design and technology, apart from its established
qualities of durability, reliability and fuel-efficiency.
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13. World Wide Message By Honda
Striving to become a company that society wants to exist by strengthening the core
principles of Honda
Looking back over the past fiscal year
Last year brought positive signs of economic recovery, including increased consumer spending
in Japan and the U.S. and expected economic expansion in Asia and developing nations. At the
same time, concerns about the economic downturn, credit crunch, and unemployment persisted
in the U.S. and Europe. Moreover, regardless of regional differences, there was new movement
to drastically reduce greenhouse gas emissions, primarily CO2. In these ways, 2009 showed that
further management effort and environmental action were required in the near future. Under such
circumstances, Honda responded swiftly and specifically to the needs of society and customers in
MARKETTING STRATEGIES OF HONDA

14. each region. Through research and development, we worked vigorously to produce advanced
technologies for safety and environmental requirements. Through production, we addressed
changes in regional needs in a flexible manner, establishing a “mutually complementary” system
of manufacturing parts and finished vehicles in each region. Through sales, we released products
with new value by enhancing eco-responsible vehicles and widened the range of our product
lineup. 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 exist
Due to global political and economic changes, the business environment surround- ing Honda
remains uncertain amid growing social concern about environmental challenges. However, no
matter how considerable these changes may be, Honda will win the trust of our customers and
appeal to customers as before by creating technologies and products with new value that
anticipate customer needs and social requirements. We believe this is the way for Honda to
proceed, based on our founding principles. To achieve these goals, Honda will work to improve
product quality, safety, and environmental performance as well as promoting research and
development of next-generation mobility technologies such as fuel-cell electric vehicles and
battery-powered EVs. Additionally, we will focus on future product development to expand the
market 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 through
global activities to minimize environ- mental impact in all of our business activities including
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15. production, distribution, and sales, while promoting safe driving and engagement in other social
activities.
Manufacturing & Distribution
Strengthening our manufacturing system from the perspective of our customers and the
environment
Customer needs vary depending on the region. To deliver products that satisfy customers in all
regions, Honda established a manufacturing system that rapidly and flexibly responds to
customer requests at all production bases around the world. With this manufacturing system, we
are striving to further improve the quality of our products and minimize our environmental
footprint during manufacturing.
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16. Thin-membrane solar cell panels at Dongfeng Honda (Wuhan, China)
Strengthening manufacturing capabilities and environmental measures on a global basis
Based on its commitment to build products close to the customer, Honda has pursued local
production from its early days. We first began overseas motorcycle production in Belgium in
1963 and became the first Japanese automaker to produce automobiles in the U.S. in 1982. By
focusing on localization early on, even in the areas of development and sales, we have been able
to respond to changes in product demand and supply more promptly and increase our quality and
cost competitiveness in each market. Moreover, we have been working on establishing a
mutually complementary parts and vehicle manufacturing network among countries within a
region 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 world
and that reduce environmental impacts during manufacturing and distribution. In 2009, we began
operations 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. Through
improved production systems that take into consideration regional characteristics and enhanced
environmental measures, we will flexibly and effectively provide high-quality products in an
environmentally responsible way.
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17. Motorcycle plant (Thailand)
Power products assembly (France)
Corporate profile and divisions
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18. Honda headquarters building in Japan
Honda is headquartered in Minato, Tokyo, Japan. Their shares trade on the Tokyo Stock
Exchange 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, the
United 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 sold
in 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.
Honda's Net Sales and Other Operating Revenue by Geographical Regions in 2007
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19. Geographic Region Total revenue (in millions of ¥)
Japan 1,681,190
North America 5,980,876
Europe 1,236,757
Asia 1,283,154
Others 905,163
American Honda Motor Company is based in Torrance, California. Honda Canada Inc. is
headquartered in the Scarborough district of Toronto, Ontario, and is building new corporate
headquarters in Markham, Ontario, scheduled to relocate in 2008; their manufacturing
division, Honda of Canada Manufacturing, is based in Alliston, Ontario. Honda has also created
joint ventures around the world, such as Honda Siel Cars and Hero Honda Motorcycles in
India, Guangzhou Honda and Dongfeng Honda in China, and Honda Atlas in Pakistan.
Current market position
With high fuel prices and a weak U.S. economy in June 2008, Honda reported a 1% sales
increase while its rivals, including the Detroit Big Three and Toyota, have reported double-digit
losses. Honda's sales were up almost 20 percent from the same month last year. The Civic and
the Accord were in the top five list of sales. Analysts have attributed this to two main factors.
MARKETTING STRATEGIES OF HONDA

20. First, Honda's 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 can
be 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 of
2008, as these companies reduced their profitability forecasts. The economic crisis has been
spreading to other important players in the vehicle related industries as well. In November 2009
the 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-door
hatchback and announced that they were looking to develop an entry-level brand exclusively for
the Chinese market similar to Toyota's Scion brand in the USA. The brand would be developed
by 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 halve
production at its UK plants. The decision was made to put staff at the Swindon plant on a 2 day
week until the end of May as the manufacturer struggled to source supplies from Japan. It's
thought around 22,500 cars were produced during this period.
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21. PROMOTIONAL STRATEGIES OF HONDA
Dream The Impossible!!!
POWER OF DREAMS , HONDA

Super Cub (2008)
MARKETTING STRATEGIES OF HONDA

22. the Super Cub made Honda what it is today. In 2008, 50 years and 60 million units later, the
Super Cub still continues to evolve.
Engines (2008)
Honda has announced "Engines," a new global advertisement aimed at increasing awareness of
how Honda's advanced engines can help in preserving the environment.
MARKETTING STRATEGIES OF HONDA

23. FCX (2007)
The global ad "FCX Concept" emphasizes Honda’s leadership in environmental performance
through advanced technology.
sky (2006)
MARKETTING STRATEGIES OF HONDA

24. "sky" signifies Honda's realization of a dream to bring mobility for everyone to the third
dimension, 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 in
every 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 green
cap - and once he wears it, is taken to the world of Honda where he experiences the creativity
that every Honda employee brings to the company - turning dreams such as ASIMO and
HondaJet into reality, and making Honda one of the most innovative companies in the world.
MARKETTING STRATEGIES OF HONDA

25. jet/ (2005)
The motif of Honda’s new Global Ad is the experimental HondaJet, which made its debut in
July, 2005 at “Airventure,” a prominent aircraft event in the USA. HondaJet realizes a Honda
founder’s dream.
The movie “jet/” is set in a quiet airstrip. Two men in blue overalls ride a tattered Super Cub
down a deserted hangar. Who could tell that these two, Richard Gritter and Dave West, were
indeed the test pilots for the experimental HondaJet, as they flew off into the evening sky...
MARKETTING STRATEGIES OF HONDA

26. run/ (2005)
Since development of the first ASIMO in 2000, ASIMO has grown in popularity around the
world, and has developed a global image of adorability and friendliness. The key aim in Honda’s
new global branding advertisement is to maintain ASIMO’s global image, whilst communicating
the 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’s
moving walkway.
MARKETTING STRATEGIES OF HONDA

27. HondaJet (2005)
The motif for this year’s worldwide corporate advertising is the HondaJet. In 2003, a hundred
years after the Wright Brothers made their pioneering flight; the HondaJet soared over North
Carolina on its maiden flight. Honda has again realized the power of dreams, by adding a new
dimension to the pursuit of mobility. We want to share this significant achievement with the
world, and with this in mind, came the motivation for this advertisement.
MARKETTING STRATEGIES OF HONDA

28. Honda FCX (2003)
The sound of a grandfather clock keeps pace with the FCX as it drives around. In the TV
commercial, the FCX is shown symbolizing the opening to a new era of mobility. In addition, a
corporate ad was placed on January 3, 2003 to all major newspapers in Japan showcasing the
theme of Honda’s new technology. The TV commercial uses a visual background that reflects
Honda’s challenging history and expresses Honda’s spirit, “an ultimate clean air vehicle for all
human beings”. The development of the fuel cell vehicle FCX, - has reinforced our belief in the
power of dreams.
MARKETTING STRATEGIES OF HONDA

29. WGP 500th Victory (2001)
At the FIM Road Racing World Championship Grand Prix opening event held at the Suzuka
circuit on April 8, 2001, Honda achieved it's record setting 500th win. It has been 40 years since
it's first win there in 1961. With unwavering passion and the result of win upon win there has
been no greater point of progress. In April 2000 all major Japanese newspapers published
corporate advertisements with the Honda motorcycle challenge spirit as it’s theme.
MARKETTING STRATEGIES OF HONDA

30. F1 200 Challenge (2000)
In the FIA Formula1 World Championship 14th race event held on September 10, 2000, Honda
set 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 the
Japan Grand Prix held at the Suzuka circuit over October 2000, all major Japanese newspapers
published corporate advertisements with Honda’s F1 challenge history as it’s theme.
MARKETTING STRATEGIES OF HONDA

31. Products
Automobiles
2008 Honda Accord (USA spec)
Eighth Generation Honda Civic (Asian Version)
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32. Honda's global lineup consists of the Fit, Civic, Accord, Insight, CR-V, and Odyssey. An early
proponent of developing vehicles to cater to different needs and markets worldwide, Honda's
lineup varies by country and may feature vehicles exclusive to that region. A few examples are
the latest Acura TL luxury sedan and the Ridgeline, Honda's first light-duty uni-body pickup
truck. Both were engineered primarily in North America and are exclusively produced and sold
there.
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 production
longer. The Civic, along with the Accord and Prelude, comprised Honda's vehicles sold in North
America until the 1990s, when the model lineup was expanded. Having gone through several
generational changes, the Civic has become larger and more upmarket, and it currently slots
between 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 and
boost 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, and
also produces the Insight and CR-Z.
MARKETTING STRATEGIES OF HONDA

33. Its first entrance into the pickup segment, the light duty Ridgeline, won Truck of the Year
from Motor Trend magazine in 2006. Also in 2006, the redesigned Civic won Car of the
Year 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 total
sales in fiscal year 2011, from 14.8% in previous year.
Five of United States Environmental Protection Agency's top ten most fuel-efficient cars from
1984 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 Civic
Coupe HF (46 mpg-US/5.1 L/100 km; 55 mpg-imp combined), 1994-1995 Honda Civic hatchback
VX (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 America
for seven consecutive years.
MARKETTING STRATEGIES OF HONDA

34. Motorcycles
Honda is the largest motorcycle manufacturer in Japan and has been since it started production in
1955. At its peak in 1982, Honda manufactured almost 3 million motorcycles annually. By 2006
this figure had reduced to around 550,000 but was still higher than its three domestic
competitors.
During the 1960s, when it was a small manufacturer, Honda broke out of the Japanese
motorcycle market and began exporting to the U.S. Taking Honda’s story as an archetype of the
smaller 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 the
world, has been the subject of some academic controversy. Competing explanations have been
advanced 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 British
motorcycle industry had been out-competed by its Japanese competitors. The report concluded
that the Japanese firms, including Honda, had sought a very high scale of production (they had
made a large number of motorbikes) in order to benefit from economies of scale and learning
curve effects. It blamed the decline of the British motorcycle industry on the failure of British
managers to invest enough in their businesses to profit from economies of scale and scope.
MARKETTING STRATEGIES OF HONDA

35. 2004 Honda Super Cub
The second explanation was offered in 1984 by Richard Pascale, who had interviewed the Honda
executives responsible for the firm’s entry into the U.S. market. As opposed to the tightly
focused strategy of low cost and high scale that BCG accredited to Honda, Pascale found that
their entry into the U.S. market was a story of “miscalculation, serendipity, and organizational
learning” – in other words, Honda’s success was due to the adaptability and hard work of its
staff, 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 the
scooters they were using to get themselves around their U.S. base of San Francisco attracted
positive interest from consumers that they came up with the idea of selling the Super Cub.
MARKETTING STRATEGIES OF HONDA

36. 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, they
argued that Honda’s success was due to its focus on leadership in the technology of internal
combustion engines. For example, the high power-to-weight ratio engines Honda produced for
its racing bikes provided technology and expertise which was transferable into mopeds. Honda's
entry into the U.S. motorcycle market during the 1960s is used as a case study for teaching
introductory strategy at business schools worldwide.
Motorsports
Honda has been active in motorsports, like Motorcycle Grand Prix, Superbike racing and others.
Automobile
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37. Rubens Barrichello driving for Honda
Honda entered Formula One as a constructor for the first time in the 1964 season at the German
Grand Prix with Ronnie Bucknum at the wheel. 1965 saw the addition of Richie Ginther to the
team, who scored Honda's first point at the Belgian Grand Prix, and Honda's first win at
the Mexican Grand Prix. 1967 saw their next win at the Italian Grand Prix with John Surtees as
their driver. In 1968, Jo Schlesser was killed in a Honda RA302 at the French Grand Prix. This
racing tragedy, coupled with their commercial difficulties selling automobiles in the United
States, prompted Honda to withdraw from all international motorsport that year.
After a learning year in 1965, Honda-powered Brabhams dominated the 1966 French Formula
Two championship in the hands of Jack Brabhamand Denny Hulme. As there was no European
Championship that season, this was the top F2 championship that year. In the early 1980s Honda
returned to F2, supplying engines to Ron Tauranac's Ralt team. Tauranac had designed the
Brabham cars for their earlier involvement. They were again extremely successful. In a related
exercise, John Judd's 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 Constructors
Championships. WilliamsF1 won the crown in 1986 and 1987. Honda switched allegiance again
in 1988. New partners Team McLaren won the title in 1988, 1989, 1990 and 1991. Honda
withdrew from Formula One at the end of 1992, although the related Mugen-Honda company
MARKETTING STRATEGIES OF HONDA

38. maintained a presence up to the end of 1999, winning four races with Ligier and Jordan Grand
Prix.
Honda debuted in the CART IndyCar World Series as a works supplier in 1994. The engines
were far from competitive at first, but after development, the company powered six consecutive
drivers championships. In 2003, Honda transferred its effort to the rival IRL IndyCar Series. In
2004, Honda-powered cars overwhelmingly dominated the IndyCar Series, winning 14 of 16
IndyCar races, including the Indianapolis 500, and claimed the IndyCar Series Manufacturers'
Championship, Drivers' Championship and Rookie of the Year titles. In 2006, Honda became the
sole engine supplier for the IndyCar Series, including the Indianapolis 500. In the 2006
Indianapolis 500, for the first time in Indianapolis 500 history, the race was run without a single
engine problem.
During 1998, Honda considered returning to Formula One with their own team. The project was
aborted after the death of its technical director, Harvey Postlethwaite. Honda instead came back
as an official engine supplier to British American Racing (BAR) and Jordan Grand Prix. Honda
bought 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 Grand
Prix with driver Jenson Button.
It was announced on 5 December 2008, that Honda would be exiting Formula One with
immediate effect due to the 2008 global economic crisis. The team was sold to former team
principal 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

39. Motorcycles
Honda RC212V raced by Dani Pedrosa
Honda Racing Corporation (HRC) was formed in 1982. The company combines participation in
motorcycle 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 in
the development of Honda motorcycles. HRC also contributes to the advancement of motorcycle
sports through a range of activities that include sales of production racing motorcycles, support
for satellite teams, and rider education programs.
MARKETTING STRATEGIES OF HONDA

40. Soichiro Honda, being a race driver himself, could not stay out of international motorsport. In
1959, Honda entered five motorcycles into the Isle of Man TT race, the most prestigious
motorcycle race in the world. While always having powerful engines, it took until 1961 for
Honda to tune their chassis well enough to allow Mike Hailwood to claim their first Grand
Prix victories in the 125 and 250 cc classes. Hailwood would later pick up their first Senior TT
wins in 1966 and 1967. Honda's race bikes were known for their "sleek & stylish design" and
exotic engine configurations, such as the 5-cylinder, 22,000 rpm, 125 cc bike and their 6-cylinder
250 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 provide
sufficient valve area to compete with the dominant two-stroke racers. Unfortunately, it seemed
Honda 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 first
500 cc Grand Prix World Championship with Freddie Spencer. Since then, Honda has become a
dominant marque in motorcycle Grand Prix racing, winning a plethora of top level titles with
riders such as Mick Doohan and Valentino Rossi .
In motocross, Honda has claimed six motocross world championships. In the World Enduro
Championship, Honda has captured six titles, most recently with Stefan Merriman in 2003 and
with Mika Ahola in 2007 and 2008.
In observed trials, Honda has claimed three world championships with Belgian rider Eddy
Lejeune.
MARKETTING STRATEGIES OF HONDA

41. Marketing
Honda's official slogan is "The Power of Dreams". They have never used this slogan to sell their
products. Mr. Honda's 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 parts
from 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 which
sets off a chain of events that ends with the Honda Accord moving and Garrison Keillor speaking
the tagline, "Isn't 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 of
the 2005 Impossible Dream advert.
A post 2005 style Honda dealership in Moncton, Canada
MARKETTING STRATEGIES OF HONDA

42. In December 2005, Honda released The Impossible Dream a two-minute panoramic
advertisement filmed in New Zealand, Japan and Argentina which illustrates the founder's dream
to build performance vehicles. While singing the song "Impossible Dream", a man reaches for
his racing helmet, leaves his trailer on a minibike, then rides a succession of vintage Honda
vehicles: a motorcycle, then a car, then a powerboat, then goes over a waterfall only to reappear
piloting a hot air balloon, with Garrison Keillor saying "I couldn't have put it better myself" as
the 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 year
before the start of the new model year, Honda's advertising has featured an animated
character known simply as Mr. Opportunity, voiced by Rob Paulsen. The casual looking man
talks about various deals offered by Honda and ends with the phrase "I'm Mr. Opportunity, and
I'm knockin'", followed by him "knocking" on the television screen or "thumping" the speaker at
the end of radio ads. Also, commercials for Honda's international hatchback, the Jazz, are
parodies 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 exhibits
with almost child-like wonderment (spreading out its arms in the aerospace exhibit, waving hello
to an astronaut suit that resembles him, etc.), while Garrison Keillor ruminates on progress. It
concludes with the tagline: "More forwards please".
MARKETTING STRATEGIES OF HONDA

43. Honda also sponsored ITV's coverage of Formula One in the UK for 2007. However they had
announced that they would not continue in 2008 due to the sponsorship price requested by ITV
being too high.
In May 2007, focuses on their strengths in racing and the use of the Red H badge — a symbol of
what is termed as "Hondamentalism". The campaign highlights the lengths that Honda engineers
go to in order to get the most out of an engine, whether it is for bikes, cars, powerboats — even
lawnmowers. Honda released its Hondamentalism campaign. In the TV spot, Garrison Keillor
says, "An engineer once said to build something great is like swimming in honey", while Honda
engineers in white suits walk and run towards a great light, battling strong winds and flying
debris, holding on to anything that will keep them from being blown away. Finally one of the
engineers walks towards a red light, his hand outstretched. A web address is shown for the
Hondamentalism website. The digital campaign aims to show how visitors to the site share many
of the Hondamentalist characteristics.
At the beginning of 2008, Honda released - the Problem Playground. The advert outlines
Honda's environmental responsibility, demonstrating a hybrid engine, more efficient solar panels
and the FCX Clarity, a hydrogen powered car. The 90 second advert features large scale puzzles,
involving Rubik's cubes, large shapes and a 3-dimensional puzzle.
On 29 May 2008, Honda, in partnership with Channel 4, broadcast a live advertisement. It
showed skydivers jumping from an aeroplane over Spain and forming the letters H, O, N, D and
A in mid-air. This live advertisement is generally agreed to be the first of its kind on British
television. The advert lasted three minutes. The next flight of one of the two planes involved
resulted in a fatal crash as the plane broke apart in mid-air.
[72]
MARKETTING STRATEGIES OF HONDA

44. In 2009, American Honda released the Dream the Impossible documentary series, a collection of
5-8 minute web vignettes that focus on the core philosophies of Honda. Current short films
include Failure: The Secret to Success, Kick Out the Ladder and Mobility 2088. They feature
Honda employees as well as Danica Patrick, Christopher Guest, Ben Bova, Chee Pearlman, Joe
Johnston and Orson Scott Card. The film series plays at dreams.honda.com.
Sports
In Australia, Honda advertised heavily during most motor racing telecasts, and was the official
sponsor of the 2006 FIA Formula 1 telecast on broadcaster channel "Ten". In fact, it was the only
manufacturer involved in the 2006 Indy Racing League season. In a series of adverts promoting
the history of Honda's racing heritage, Honda claimed it "built" cars that won 72 Formula 1
Grand 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 F1
teams, respectively. However, former and current staff of the McLaren F1 team have reiterated
that Honda contributed more than just engines and provided various chassis, tooling, and
aerodynamic 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 world
championships. He had immense respect for founder, Soichiro Honda, and had a good
relationship with Nobuhiko Kawamoto, the chairman of Honda at that time. Senna once called
Honda "the greatest company in the world".
MARKETTING STRATEGIES OF HONDA

45. As part of its marketing campaign, Honda is an official partner and sponsor of the National
Hockey 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 League
Soccer. The "Honda Player of the Year" award is presented in United States soccer. The "Honda
Sports Award" is given to the best female athlete in each of twelve college sports in the United
States. One of the twelve Honda Sports Award winners is chosen to receive theHonda-Broderick
Cup, as "Collegiate Woman Athlete of the Year."
MARKETTING STRATEGIES OF HONDA

46. Marketing Strategies
It has described a category scheme consisting of three general types of strategies that are
commonly used by businesses to achieve and maintain competitive advantage. These three
generic strategies are defined along two dimensions: strategic scope and strategic
strength. Strategic scope is a demand-side dimension and looks at the size and composition of the
market you intend to target. Strategic strength is a supply-side dimension and looks at the
strength or core competency of the firm. In particular he identified two competencies that he felt
were 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 three
dimensional matrix. That is, the category scheme was displayed as a 3 by 3 by 3 cubes. But most
of the 27 combinations were not viable.
MARKETTING STRATEGIES OF HONDA

47. 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 cost
leadership, differentiation, and market segmentation (or focus). Market segmentation is narrow
in 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 high
market share were often quite profitable, but so were many firms with low market share. The
least profitable firms were those with moderate market share. This was sometimes referred to as
the hole in the middle problem. Porter’s explanation of this is that firms with high market share
were successful because they pursued a cost leadership strategy and firms with low market share
were successful because they used market segmentation to focus on a small but profitable market
niche. Firms in the middle were less profitable because they did not have a viable generic
strategy.
MARKETTING STRATEGIES OF HONDA

48. Porter suggested combining multiple strategies is successful in only one case. Combining a
market segmentation strategy with a product differentiation strategy was seen as an effective way
of matching a firm’s product strategy (supply side) to the characteristics of your target market
segments (demand side). But combinations like cost leadership with product differentiation were
seen as hard (but not impossible) to implement due to the potential for conflict between cost
minimization and the additional cost of value-added differentiation.
Since that time, empirical research has indicated companies pursuing both differentiation and
low-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 sustainable
competitive advantage. In most cases firms end up in price wars. Instead, they claim a best cost
strategy is preferred. This involves providing the best value for a relatively low price.
MARKETTING STRATEGIES OF HONDA

49. Cost Leadership Strategy
This 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, or
at least the lowest price to value ratio (price compared to what customers receive). To succeed at
offering the lowest price while still achieving profitability and a high return on investment, the
firm must be able to operate at a lower cost than its rivals. There are three main ways to achieve
this.
The first approach is achieving a high asset turnover. In service industries, this may mean for
example a restaurant that turns tables around very quickly, or an airline that turns around flights
very fast. In manufacturing, it will involve production of high volumes of output. These
approaches 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 of
scale and experience curve effects. For industrial firms, mass production becomes both a strategy
and an end in itself. Higher levels of output both require and result in high market share, and
create an entry barrier to potential competitors, who may be unable to achieve the scale
necessary to match the firms low costs and prices.
MARKETTING STRATEGIES OF HONDA

50. The second dimension is achieving low direct and indirect operating costs. This is achieved by
offering high volumes of standardized products, offering basic no-frills products and limiting
customization and personalization of service. Production costs are kept low by using fewer
components, using standard components, and limiting the number of models produced to ensure
larger production runs. Overheads are kept low by paying low wages, locating premises in low
rent areas, establishing a cost-conscious culture, etc. Maintaining this strategy requires a
continuous search for cost reductions in all aspects of the business. This will include outsourcing,
controlling production costs, increasing asset capacity utilization, and minimizing other costs
including distribution, R&D and advertising. The associated distribution strategy is to obtain the
most extensive distribution possible. Promotional strategy often involves trying to make a virtue
out of low cost product features.
The third dimension is control over the supply/procurement chain to ensure low costs. This could
be achieved by bulk buying to enjoy quantity discounts, squeezing suppliers on price, instituting
competitive bidding for contracts, working with vendors to keep inventories low using methods
such as Just-in-Time purchasing or Vendor-Managed Inventory. Wal-Mart is famous for
squeezing its suppliers to ensure low prices for its goods. Dell Computer initially achieved
market share by keeping inventories low and only building computers to order. Other
procurement advantages could come from preferential access to raw materials, or backward
integration.
Some writers posit that cost leadership strategies are only viable for large firms with the
opportunity to enjoy economies of scale and large production volumes. However, this takes a
limited industrial view of strategy. Small businesses can also be cost leaders if they enjoy any
MARKETTING STRATEGIES OF HONDA

51. advantages conducive to low costs. For example, a local restaurant in a low rent location can
attract price-sensitive customers if it offers a limited menu, rapid table turnover and employs
staff on minimum wage. Innovation of products or processes may also enable a startup or small
company to offer a cheaper product or service where incumbents' costs and prices have become
too high. An example is the success of low-cost budget airlines who despite having fewer planes
than the major airlines, were able to achieve market share growth by offering cheap, no-frills
services 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 cost
leader may also result in a reputation for low quality, which may make it difficult for a firm to
rebrand itself or its products if it chooses to shift to a differentiation strategy in future.
Differentiation Strategy
Differentiate the products in some way in order to compete successfully. Examples of the
successful use of a differentiation strategy are Hero Honda, Asian Paints, HLL, Nike athletic
shoes, 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 possibly
under-served, and the firm has unique resources and capabilities which enable it to satisfy these
needs in ways that are difficult to copy. These could include patents or other Intellectual Property
(IP), unique technical expertise (e.g. Apple's design skills or Pixar's animation prowess), talented
MARKETTING STRATEGIES OF HONDA

52. personnel (e.g. a sports team's star players or a brokerage firm's star traders), or innovative
processes. Successful brand management also results in perceived uniqueness even when the
physical 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 on
this form of image differentiation.
Variants on the Differentiation Strategy
The shareholder value model holds that the timing of the use of specialized knowledge can create
a differentiation advantage as long as the knowledge remains unique.
[2]
This model suggests that
customers 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 to
outlast competitors by practicing a differentiation strategy. An organization with greater
resources can manage risk and sustain profits more easily than one with fewer resources. This
deep-pocket strategy provides a short-term advantage only. If a firm lacks the capacity for
continual innovation, it will not sustain its competitive position over time.
MARKETTING STRATEGIES OF HONDA

53. Focus or Strategic Scope
This dimension is not a separate strategy per se, but describes the scope over which the company
should compete based on cost leadership or differentiation. The firm can choose to compete in
the mass market (like Wal-Mart) with a broad scope, or in a defined, focused market segment
with a narrow scope. In either case, the basis of competition will still be either cost leadership or
differentiation.
In adopting a narrow focus, the company ideally focuses on a few target markets (also called a
segmentation 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 needs
of the selected segment and the resources and capabilities of the firm. It is hoped that by focusing
your marketing efforts on one or two narrow market segments and tailoring your marketing
mix to these specialized markets, you can better meet the needs of that target market. The firm
typically looks to gain a competitive advantage through product innovation and/or brand
MARKETTING STRATEGIES OF HONDA

54. marketing rather than efficiency. It is most suitable for relatively small firms but can be used by
any company. A focused strategy should target market segments that are less vulnerable to
substitutes 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-haul
point-to-point flights in contrast to the hub-and-spoke model of mainstream carriers, and Family
Dollar.
In adopting a broad focus scope, the principle is the same: the firm must ascertain the needs and
wants 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 broad
scope and adopts a cost leadership strategy in the mass market. Pixar also targets the mass
market with its movies, but adopts a differentiation strategy, using its unique capabilities in
story-telling and animation to produce signature animated movies that are hard to copy, and for
which customers are willing to pay to see and own. Apple also targets the mass market with its
iPhone and iPod products, but combines this broad scope with a differentiation strategy based on
design, branding and user experience that enables it to charge a price premium due to the
perceived unavailability of close substitutes.
Recent developments
Michael Treacy and Fred Wiersema (1993) in their book The Discipline of Market Leaders have
modified Porter's three strategies to describe three basic "value disciplines" that can create
MARKETTING STRATEGIES OF HONDA

55. customer value and provide a competitive advantage. They are operational excellence, product
leadership, and customer intimacy.
Criticisms of generic strategies
Several commentators have questioned the use of generic strategies claiming they lack
specificity, lack flexibility, and are limiting.
In particular, Miller (1992) questions the notion of being "caught in the middle". He claims that
there is a viable middle ground between strategies. Many companies, for example, have entered a
market 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 dilemma
of opposites".
A popular post-Porter model was presented by W. Chan Kim and Renée Mauborgne in their
1999 Harvard Business Review article "Creating New Market Space". In this article they
described a "value innovation" model in which companies must look outside their present
paradigms to find new value propositions. Their approach fundamentally goes against Porter's
concept that a firm must focus either on cost leadership or on differentiation. They later went on
to publish their ideas in the book Blue Ocean Strategy.
An up-to-date critique of generic strategies and their limitations, including Porter, appears in
Bowman, C. (2008) Generic strategies: a substitute for thinking? [1]
MARKETTING STRATEGIES OF HONDA

56. Electric and alternative fuel vehicles
2009 Honda Civic GX hooked up to Phill refueling system
MARKETTING STRATEGIES OF HONDA

57. Top: Brazilian flexible-fuel Honda Civic. Below: U.S. Honda Civic Hybrid.
2010 Honda Insight hybrid electric vehicle(Second generation).
MARKETTING STRATEGIES OF HONDA

58. Honda FCX Clarity hydrogen fuel cellvehicle
Compressed Natural G as
The Honda Civic GX is the only purpose-built natural gas vehicle (NGV) commercially
available 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 car
looks and drives just like a contemporary Honda Civic LX, but does not run on gasoline. In
2001, the Civic GX was rated the cleanest-burning internal combustion engine in the world by
the U.S. Environmental Protection Agency (EPA).
MARKETTING STRATEGIES OF HONDA

59. First leased to the City of Los Angeles, in 2005, Honda started offering the GX directly to the
public through factory trained dealers certified to service the GX. Before that, only fleets were
eligible to purchase a new Civic GX. In 2006, the Civic GX was released in New York, making
it the second state where the consumer is able to buy the car. Home refueling is available for the
GX with the addition of the Phill Home Refueling Appliance.
Flexible-fuel
Honda's Brazilian subsidiary launched flexible-fuel versions for the Honda Civic and Honda
Fit in late 2006. As others Brazilian flex-fuel vehicles, these models run on any blend
of hydrous ethanol (E100) and E20-E25 gasoline. Initially, and in order to test the market
preferences, the carmaker decided to produce a limited share of the vehicles with flex-fuel
engines, 33 percent of the Civic production and 28 percent of the Fit models. Also, the sale price
for the flex-fuel version was higher than the respective gasoline versions, around US$1,000
premium for the Civic, and US$650 for the Fit, despite the fact that all other flex-fuel vehicles
sold in Brazil had the same tag price as their gasoline versions. In July 2009, Honda launched in
the 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 8,546
gasoline-powered automobiles, jumping to 41,990 flex-fuel cars in 2007, and reaching 93,361 in
2008. Due to the success of the flex versions, by early 2009 a hundred percent of Honda's
automobile production for the Brazilian market is now flexible-fuel, and only a small percentage
of gasoline version is produced in Brazil for exports.
MARKETTING STRATEGIES OF HONDA

60. In March 2009, Honda launched in the Brazilian market the first flex-fuel motorcycle in the
world. Produced by its Brazilian subsidiary Moto Honda da Amazônia, the CG 150 Titan Mix is
sold for around US$2,700.

Hybrid electric
In 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 sold
for US$20,000. The first-generation Insight was produced from 2000 to 2006 and had afuel
economy of 70 miles per US gallon (3.4 L/100 km; 84 mpg-imp) for the EPA's highway rating, the
most fuel-efficient mass-produced car at the time. Total global sales for the Insight amounted to
only 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 $19,800
as a five-door hatchback it will be the least expensive hybrid available in the U.S. Honda expects
to 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 through
2007. Sales of the Honda CR-Z began in Japan in February 2010, becoming Honda's third hybrid
electric car in the market.
In an interview in early February 2011, a Honda executive disclosed that Honda produces around
200,000 hybrids a year in Japan.
MARKETTING STRATEGIES OF HONDA

61. Hydrogen fuel cell
In Takanezawa, Japan, on 16 June 2008, Honda Motors produced the first assembly-line FCX
Clarity, a hybrid hydrogen fuel cell vehicle. More efficient than a gas-electric hybrid vehicle, the
FCX Clarity combines hydrogen and oxygen from ordinary air to generate electricity for an
electric motor.
The vehicle itself does not emit any pollutants and its only by products are heat and water. The
FCX Clarity also has an advantage over gas-electric hybrids in that it does not use an internal
combustion engine to propel itself. Like a gas-electric hybrid, it uses a lithium ion battery to
assist the fuel cell during acceleration and capture energy through regenerative braking, thus
improving fuel efficiency. The lack of hydrogen filling stations throughout developed countries
will keep production volumes low. Honda will release the vehicle in groups of 150. California is
the only U.S. market with infrastructure for fueling such a vehicle, though the number of stations
is still limited. Building more stations is expensive, as the California Air Resources
Board (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

62. · Its Market Position.
· Honda’s level of customer satisfaction.
· Its history and the company profile.
· Cost saving initiatives.
Hypothesis
A hypothesis consists either of a suggested explanation for an observable phenomenon or
of a reasoned proposal predicting a possible causal correlation among multiple phenomena. The
MARKETTING STRATEGIES OF HONDA

63. term derives from the Greek, hyposthenia meaning "to put under" or "to suppose." The scientific
method requires that one can test a scientific hypothesis. Scientists generally base such
hypotheses on previous observations or on extensions of scientific theories. Even though the
words "hypothesis" and "theory" are often used synonymously in common and informal usage, a
scientific hypothesis is not the same as a scientific theory.
Hypothesis may be defined as a proposition or a set of proposition set forth as an
explanation for the occurrence of some specified group of phenomenon either asserted merely as
a provisional conjecture to guide some investigation or accepted as highly probable in the light
of established facts. Quite often a research hypothesis is a predictive statement, capable of being
tested by scientific methods, that relates an independent variable to some dependent variable.
NULL HYPOTHESIS
A null hypothesis is a hypothesis (within the context of statistical hypothesis testing) that might
be falsified on the basis of observed data. The null hypothesis typically proposes a general or
default position, such as that there is no relationship between two quantities, or that there is no
difference between a treatment and the control. The term was originally coined by English
geneticist and statistician Ronald Fisher.
MARKETTING STRATEGIES OF HONDA

64. 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 are
highly satisfied.
ALTERNATE HYPOTHESIS
Alternative hypothesis is the "hypothesis that the restriction or set of restrictions to be tested does
NOT hold." often denoted H1. Synonym for 'maintained hypothesis.' The Alternate Hypothesis of
this 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 Methodology
The purpose of methodology is to describe the process involved in research work. This includes
the overall research design, data collection method, the field survey and the analysis of data.
MARKETTING STRATEGIES OF HONDA

65. Research is a common parlance refresh to a search for knowledge. One can also define research
as 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 current
English lay down the meaning research as a careful investigation & inquiry specially search for
new facts in any branch knowledge.
Research Design
Research Design is the arrangement for conditioned for data collection & analysis of data in a
manner 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 blue
print that is followed in completing study.
The research conducted by me is a descriptive research. This is descriptive in nature because
study is focused on fact investigation in a well structured from and is based on primary data.
Research Plan
MARKETTING STRATEGIES OF HONDA

66. Type of study: For completing my study I have gone for sample study because looking at the
size 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 Plan
A sample design is a definite plan for obtaining a sample from a given population. It refers to the
technique or the procedure that researcher would adopt in selecting items to be inched in the
sample 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 prepare
the report.
Sampling Frame:
The list of sampling units from which sample is taken is called sampling frame.
MARKETTING STRATEGIES OF HONDA

67. 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 the
sampling were quite easy to measure, evaluate and co-operative. It was a randomly area
sampling method that attempts to obtain the sample of convenient.
DATA ANALYSIS
Q1.
How long have you been associated with HONDA Motors
MARKETTING STRATEGIES OF HONDA

68. No. of Respondents
Percentage
1.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 Salesperson
MARKETTING STRATEGIES OF HONDA
ASSOCIATED PEOPLE
1
2
3
4
5

69. No. of Respondents
1.Strongly Disagree 0
2.Disagree 0
3.Neither Disagree Nor Agree 0
4.Agree 86
5.Strongly Agree 14
86% people agreed that the sales persons are knowledgeable and 14% strongly disagreed that the
sales persons are knowledgeable.
Q2 (ii).
MARKETTING STRATEGIES OF HONDA
SALESPERSON KNOWLEDGE
1
2
3
4
5

70. Employees spent enough time with you before sales

No. of Respondents
1.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 sales
No. of Respondents
MARKETTING STRATEGIES OF HONDA
TIME SPENT
1
2
3
4
5

71. 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% strongly
agreed that the sales persons spent enough time with them during sales and only 4% disagreed
with this.
Q2 (ii).
Employees spent enough time with you after sales
No. of Respondents
MARKETTING STRATEGIES OF HONDA
TIME SPENT DURING SALES
1
2
3
4
5

72. 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 agreed
with this and 14% disagreed that the sales persons spent enough time with them after sales.
Q2 (iii).
Display of Merchandize
No. of Respondents
MARKETTING STRATEGIES OF HONDA
AFTER SALES
1
2
3
4
5

73. 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 the
display of merchandize was attractive.
Q2 (iv).
Availability of the Product
No. Of
Respondents
MARKETTING STRATEGIES OF HONDA
MERCHANDISE DISPLAY
1
2
3
4
5

74. 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 availability
was there while only 4% said they disagreed with this.
Q2 (v).
Variety/Selection of Merchandize
No. of
Respondents
MARKETTING STRATEGIES OF HONDA
PRODUCT AVAILABLITY
1
2
3
4
5

75. 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 that
enough variety was there and 6% disagreed with this.
Q.2 (vi) Vehicle in Good Condition
No. of
Respondents
MARKETTING STRATEGIES OF HONDA
VARIETY OF MERCHANDISE
1
2
3
4
5

76. 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 with
this whereas only 2% disagreed with this.
MARKETTING STRATEGIES OF HONDA
CONDITION OF VEHICLE
1
2
3
4
5

77. Q2 (vii).
Prices Are Affordable
i.No. of Respondents
1.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 affordable
whereas only 15% said that they neither disagreed nor agreed with this.
Q2 (viii).Attractive Discounts Offered
MARKETTING STRATEGIES OF HONDA
PRICE AFFORDABLITY
1
2
3
4
5

78. No. of Respondents
1.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 HONDA
DISCOUNT OFFERED
1
2
3
4
5

79. Q2 (ix).
Décor Of The Waiting Area Is Pleasing
No. of
Respondents
1.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 the
décor of the waiting area was pleasing
MARKETTING STRATEGIES OF HONDA
DECOR OF WAITING AREA
1
2
3
4
5

80. Q2 (x).
Offered A Test Drive
i.No. of Respondents
2.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 was
offered while 20% disagreed with this.
MARKETTING STRATEGIES OF HONDA
TEST DRIVE OFFERED
1
2
3
4
5

81. Q2 (xi).
Post Sales Follow Up Done Regularly
No. of
Respondents
1.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 and
15%disagreed with this.
MARKETTING STRATEGIES OF HONDA
SERVICE FOLLOW UPS
1
2
3
4
5

82. Q2 (xii).
Responds To complaints Quickly
No. of Respondents
Percentage
1.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 nor
disagreed and 6% disagreed with this.
MARKETTING STRATEGIES OF HONDA
RESPONSE TIME
1
2
3
4
5

83. Q2 (xiii).
Service At HONDA Service Station Is Excellent
No. of Respondents
1.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 only
4% disagreed with this.
MARKETTING STRATEGIES OF HONDA
SERVICE STATION RESPONSE
1
2
3
4
5

84. Q2 (xiv).
Careful With Personal Information
No. of Respondents
1.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 and
MARKETTING STRATEGIES OF HONDA
CONFIDENTIALITY
1
2
3
4
5

85. 8% neither agreed nor disagreed.
Q2 (xv).
All The Commitments Are Fulfilled
No. of Respondents
1.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 HONDA
COMMITTMENT FULFILLMENT
1
2
3
4
5

86. Q3 (i). Are you aware of the following facilities provided by HONDA?
Insurance ( Cashless ) with 0 depreciation .
No. of Respondents
1.Yes 98%
2.No 2%
98% said yes that they are aware about HONDA insurance while only 2% said that they were not
aware.
Q3 (ii) Extended warranty
No. of Respondents
1.Yes 97%
2.No 3%
97% said they were aware about extended warranty and 3% said that they did not know abou
this.
MARKETTING STRATEGIES OF HONDA
1
2
1
2

87. Q3 (iii). Auto Terrace
No. of Respondents
1.Yes 98%
2.No 2%
98% said they were aware about true value and 2% said they were not aware.
Q3 (iv) HONDA Motors finance
No. of Respondents
1.Yes 75%
2.No 25%
75% said that they were aware about HONDA Motors finance and 25% said that they were not
aware of it.
MARKETTING STRATEGIES OF HONDA

1
2

88. Q3 (v) Autocard
No. of Respondents
1.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 Accessories
No. of
Respondents
1.Yes 85%
2.No 15%
85% said that they were aware of genuine accessories available and 15% said they were
notaware.
MARKETTING STRATEGIES OF HONDA
1
2
1
2

89. Q4.What is your overall opinion about HONDA?
Choice
No. of Respondents
1.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 is
good.
MARKETTING STRATEGIES OF HONDA
1
2
3
4
5

90. Q 5. How likely would you recommend HONDA?
Recommend
i.No. of Respondents
2.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 they
would likely recommend HONDA to others.
MARKETTING STRATEGIES OF HONDA
1
2
3
4
5

91. Q.6) Do you like the promotions and ad campaigns of HONDA Motors?
No. of Respondents
1.Very Unlikely 0%
2.Likely 70%
3.Very Likely 30%
Promotional Strategies and Ad Campaigns used by Honda are basically to represent whole Brand
not the particular product ..
In India current effective campaign is POWER OF DREAMS . featuring HONDA CIVIC and
CITY on a long Freeway …
MARKETTING STRATEGIES OF HONDA
1
2
3

92. CONCLUSION
On 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 not
satisfied withthe discounts offered. 20% said that the test drives are not offered and
15% said that post sales follow ups are not done regularly whereas 85% said that they
were done regularly but people feel that it is the people’s car as it is satisfactory on all
other parameters: knowledgeable sales persons , employees spent enough time before
and during sales, display of merchandise is attractive, availability of product, variety of
merchandize, vehicle in good condition, prices are affordable, attractive discounts are
offered, décor of the waiting area is pleasing, responds to complaints quickly, service at
TATA Motors service station is excellent, careful with personal information and is value
for money . The overall opinion about TATA Motors is very good. 86% people agreed
that the sales persons are knowledgeable and 14% strongly disagreed that the sales
persons are knowledgeable. 64% people agreed that the sales persons spent enough
time with them before the sales and 36% strongly agreed with this. 62% agreed that
sales persons spent enough time with them during the sales, while 34% strongly agreed
that the sales persons spent enough time with them during sales and only 4% disagreed
with this.
MARKETTING STRATEGIES OF HONDA

93. 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 time
with them after sales. 94% agreed that the display of merchandize was attractive and
6% strongly agreed that the display of merchandize was attractive. 91% agreed that the
availability of the product was there, 5% strongly agreed that the availability was there
while only 4% said they disagreed with this.
87% agreed that there was variety/selection of merchandize whereas 7% strongly
agreed that enough variety was there and 6% disagreed with this. 82% agreed that the
vehicle was in good condition when delivered, 16% strongly agreed with this whereas
only 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 disagreed
nor agreed with this.
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. 80%agreed
that the décor of the waiting area was pleasing while 20% strongly agreed that the
décor of the waiting area was pleasing 74% agreed that the test drive was offered to
them, 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 and
15%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

94. 82% said that the service at HONDA service station is excellent, 14% strongly agreed
while only 4% disagreed with this. 85% agreed that yes they were careful with personal
information, 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% said
yes that they are aware about the Insurance Schemes of HONDA while only 2% said
that they were not aware.
WEBLIOGRAPHY
MARKETTING STRATEGIES OF HONDA

95. 1.dreams.honda.com
2.world.honda.com
3.www.wikipedia.com
4.www.hondacarsindia.com
5.www.scribd.com
QUESTIONNARE
MARKETTING STRATEGIES OF HONDA

96. Being an esteem customer of HONDA SIEL CARS INDIA Ltd.
you are requested to take out
a few minutes and fill the following QUESTIONNAIRE :
Name: ……………………………………………………………
Address:
_______________________________________________________________
_______________________________________________________________
___________________________________________ Pin Code____________
Gender:
Male
Female
Age:
Below18
18-25
26-35
36-50
51 and above
MARKETTING STRATEGIES OF HONDA

97. Occupation:
Service Business Student Housewife
Q.1) How long have you been associated with HONDA?
_______________________________________________________________________
Q.2.) How would you rate HONDA Motors on the following parameter?
Strongly disagree
Disagree
Neither agree Nor disagree
Agree
Strongly agree
i) Knowledgeable sales person
ii) Employees spent enough time
MARKETTING STRATEGIES OF HONDA

98. with you:
Before sales
During sales
After sales
iii) Display of merchandise is attractive
iv) Availability of the product
v) Variety/selection of merchandise
vi) Vehicle in good condition
vii) Prices are affordable
viii) Attractive discounts offered
ix) Décor of the waiting area is pleasing
x) Offered a test drive
xi) Post sales follow ups are done regularly
MARKETTING STRATEGIES OF HONDA

99. xii) Responds to complaints quickly
xii) Service at HONDA service station is excellent
xvi) Careful with personal information
xv) All the commitments are fulfilled
xvi) Value for money
Q.3) Are you aware of the following facilities provided by Tata Motors?
FACILITIES Yes No
i) HONDA Motors insurance
ii) Extended warranty
iii) Auto Terrace
iv) Finance Schemes
v) Autocard
vi) Genuine accessories
Q.4) What is your overall opinion about HONDA Motors?
1.Very Bad
MARKETTING STRATEGIES OF HONDA

100. 2.Neither Bad Nor Good
3.Good
4.Very Good
Q.5) How likely would you recommend HONDA Motors?
1.Very Unlikely
2.Likely
3.Very Likely
Q.6) Do you like the promotions and ad campaigns of HONDA Motors?
1.Very Unlikely
2.Likely
3.Very Likely
Date :
Sign of Customer Sign of
Employee
CONCLUSION
MARKETTING STRATEGIES OF HONDA

101. Honda is committed to further advancing power train technologies in order to offer new products
and technologies that satisfy growing demand from customers around the world for high fuel
efficiency 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. Honda
will also continue making capital investments proactively to strengthen the flexibility and
efficiency of its global production network.

Setting customer satisfaction as our number one priority, Honda strives to provide the joy of
mobility 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 power
products by the end of the 9
th
Mid-term. In terms of sales revenue, this will exceed 10 trillion
yen.

Through all of these efforts, Honda’s goal is to be a company that society wants to exist, to
pursue the joy of mobility, and to extend this joy to more customers and to future generations.

MARKETTING STRATEGIES OF HONDA