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Marketing Strategy on Honda

Essay by   •  December 7, 2013  •  Research Paper  •  2,521 Words (11 Pages)  •  1,788 Views

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1.0 INTRODUCTION

The main purpose of writer to produce this report is to indicate the Marketing Strategy on Honda. This report is focused on to Honda Malaysia Sdn. Bhd and it carry investigate, analyze, and evaluate the current marketing strategies and marketing plans.

Firstly, writer will discuss every part of the important studies of the current strategies of Honda Malaysia. This will go through the current strategies that had been used by Honda especially in the marketing area which includes the situational analysis; unique selling proposition; segmentation, targeting and positioning; SWOT analysis; and PESTLE analysis.

Last but not least, in order to maintain and strengthen Honda marketing strategy, writer had recommend marketing strategies and programs on Honda in the future for increases their sales and their reputation to guide the automobile business.

1.1 Company Profile

According to Honda Malaysia, 2011, Honda is found by Mr. Soichiro Honda in 1948 and it is in the list of the famous branded Car Company in Japan. In 1986, Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand, Acura.

In 15 November 2000, Honda starts to establish in Malaysia with name Honda Malaysia Sdn. Bhd through a partnership of Honda Motor Co. Ltd Japan, Oriental Holdings Bhd and DRB-HICOM Bhd. Honda Malaysia Sdn. Bhd is based in Alor Gajah and it currently consist about 2,328 employees. Please refer to APPENDIX 1 for more about Honda company profile.

2.0 Marketing Strategies

According to kotler, 1999, marketing can be explained as an organizational function and a set of processes for creating; delivering and communicating value to customers, and maintain as well as improve customer relationships in ways that giving advantage to the organization.

Hence, strategy is about leading the future. So it has to achieve advantage for the business all the way through its arrangement of assets within a challenging environment, to meet the markets needs and to fulfill stakeholder expectations (Kay, 1993). In this report, writer is using few tools to look into and analyze Honda current strategies.

2.1 Situational Analysis

The situational analysis procedure is important in determining the need of individuals and communities. Therefore, this report will focus on the corporate missions and goals, and growth strategy.

2.1.1 Corporate mission and goal

Honda Company Mission Statement is formally same as the Parent Company standard. Honda Company Mission Statement is maintaining a global viewpoint, supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction (http://world.honda.com/profile/philosophy/). As a result, Honda had hit a sales target of 64,000 units in March 2013 compares with end 2012 only 34, 947 units. Base on the increasing of sales, it shows that Honda do well in order to satisfy their customer. Therefore, Honda need to make stronger of their operations by producing high value products with reasonably priced to achieve a higher sales target.

2.1.2 Growth strategy

Growth Strategy is defined as the strategy designed to winning bigger market share. There are four types of growth strategies which are diversification, product development, market penetration, and market development. In order to maintain and growing their market share Honda Malaysia is practicing the product development. Hence, Product developments define as improve and forming innovative products to sell in the existing markets (Henry, 2008). However, according to Marc A (2003), product Development can be define as the creation of products with new or different characteristics that offer new or additional benefits to the customer. This may include modification of an existing product or formulation of an entirely new product to company to gain advantages, secure it company position and win a new customer.

Nowadays, Honda still care about environmental issue and it develop and come out with a product that use less fuel, contain smaller quantity substances believed to be harmful to the environment. Besides that, it also designed to be manufactured using smaller quantity scarce or non-recyclable materials, along with improved ease of dismantling to accommodate the recycling of parts and materials at the end of a product's useful life (http://corporate.honda.com/environment/2012-report/product-development.aspx). Honda growth Strategy become it competitive advantages by it hybrid market and effectively increased their sales in 2012 as well as successfully obtained 66% of market share in the hybrid market (http://www.berita2u.tk/honda-hybrid-sales-passes-11000-mark/).

2.2 Segmentation, Targeting and Positioning

Segmentation can be known as separate the total market into smaller based on market common needs. After segmenting the market based on the different groups and classes, an organization will need to decide their targets. However, positioning is building a brand image in the minds of consumers. Besides that, it also includes improving a customer's view about the familiarity they will have if they decide to purchase the product or service.

Honda produce a new model hybrid car called as FREED which is aim the categories those who want to save fuel and save the environment pollution. By set up their target market, it benefit to Honda to increase their sales as well as their brand loyalty. Moreover, Honda FREED hybrid is modifying by the MPV to hybrid car with the lowest cost ownership compare to other hybrid car produces by Honda.

In the meantime, by practicing the differentiation strategy, Honda still carry on as hybrid market leader. In the course of this strategy, Honda FREED hybrid transform become stronger and it can able to fight other brand hybrid vehicles.

3.0 Advantages and Weaknesses

Advantages can be discussed as the chance and it will benefit the organization to gain more profitability in market share. On the other hand, the weaknesses can be bring the organization to financial difficulty and make lose It will be explains in SWOT analysis and PEST analysis above.

3.1 SWOT Analysis

SWOT analysis helps Honda to shape a sustainable position in their market. The SWOT analysis provides information that is useful in matching Honda resources and capabilities.

3.1.1 Strength

Honda strength was the capabilities for them to expand competitive advantages. In order to meet the requirements, Honda was strong

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