INTRODUCTION be the world’s third largest seller. Other than

INTRODUCTION

Honda motor company limited was started on 24th
September, 1948 which produces and markets motorcycles and (www.reuters.com)power products all
over the world. They mainly
concentrate in motor cycle and automobile business. They have their own
manufacturing facilities in USA, Canada, Mexico, UK, India, China, Malaysia and
various other countries. They do sales through network of independent dealer. Motorcycles
are sold through outlet and authorized dealerships. (www.reuters.com)Honda has the
reputation of being the largest producer of internal combustion engines
reaching an impressive figure of 15 million in 2012. Honda has the eighth
biggest automobile manufacturer in the world. In 2012, Honda had more than $99
billion in revenues out of which $3 was the yearly profit. They have more than
17500 labour around the world as per 2013 Honda has introduced 3 models of cars
with better performance (www.successtory.com)

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Honda had their success
stories in new decade. The best selling car in 1990-1192 was Accord. No one
predicted that in late 1960’s that Honda would surpass Chrysler corporation to
be the world’s third largest seller. Other than car sales, the company’s
motorcycle unit where split into new ground In 1992 Honda started the first  joint venture to make motorcycles in China. Companies
predicted that Honda will have initial step and will become the world’s largest
automotive company. Honda focused much on research and development in
1993-1994.They won the world’s largest solar car race with its alternative
power sources. On the following year company began to sell electric scooters.
In 1995 Honda started a new version of civic with features such as VTEC and Multimatic
characteristic and in 1997 Honda reached the production target of 30 million in
motorcycle line. (tanya, 1995).As per March 31st
2017 Honda has the capital of 86 billion yen and 211,915 employees (consolidated),
21,903(non consolidated).There are 442 affiliated companies in and around Japan.

 

 

Market
positioning

Honda has mix of demographic, psychographic and
geographic segmentation to vary with different customer needs. Honda has used
differentiating strategy for selection of defined population to whom they can
sell their product. Honda itself is a value based company to enrich the life of
the people .Honda has strong marketing mix because of product dimension.

LOOK AND DESIGN

Honda has its own stunning design among the
competitor. The design also is also outstanding

INTERIOR

They are brilliantly designed with comfortable seats
, audio systems ,multidimensional dash, ABS, I-VTEC Engines, comfortable wheel
base .These all features are most highlighted .

SALES AND DISTRIBUTION

Honda has 97  facility in 57 cities and have 51 dealers.
They offer complete range of services to the customers

Honda is a brand known for its quality and
advancement. Honda was never into a forceful limited time exercises yet the
organization constantly endeavored to keep up the quality and made a brand picture
by giving better client benefit. Honda auto like Honda city is the biggest
dealer in the fragment and positioned fourth position in traveler auto section.

 

Considering the notice, Honda has been to a great
degree vigilant and correct in their advancements. Honda continually expected
their photo as most tried and true brand, impelled advancement, eco all around
arranged automobiles. Despite considering the TV plugs, Honda propelled their
cream auto that continues running without gas and emanates water as the bye
thing as opposed to publicizing the specific brands existing in the market. The
advancement was more idea to the association’s mechanical movements and eco
very much arranged picture which isolated Honda from the contenders. (Bhasin,
2018).

 

UNIQUE SELLING PROPOSITION

The Unique Selling Proposition is a promoting idea
that was first proposed as a hypothesis to clarify an example among effective
publicizing efforts of the mid 1940s. It expresses that such crusades made one
of a kind recommendations to the client and this persuaded them to switch
brands. An item’s special offering suggestion is the arrangement of advantages
of the item that obviously separates the item from focused items. These
distinctions urge the purchaser to trade cash for the item. The opposition can
be immediate contenders or substitutes. An immediate contender offers
comparative advantages to a comparative target showcase utilizing a comparable
innovation, A substitute item offers comparable advantages utilizing an alternate
innovation. A Honda Civic is an immediate contender for the Toyota Corolla and
a bicycle made for driving is a substitute item.

 

 

 

 

 

 MARKETING AUDIT

Qualities

1. Ability in motor assembling – organization’s
center item Every one of Honda’s organizations are worked around the motors –
its center item. The organization’s first motors were worked for cruisers and
power gear, yet were later delivered for autos and marine vehicles. Honda is
the world’s biggest motor maker, which created more than 27 million units of
motors for car, bike, marine, and power hardware items, in 2015.The
organization has loads of involvement in assembling quality and well-performing
motors. Its motors are commended for their toughness, ease to begin, quietness,
fuel effectiveness and dependability. As indicated by Reliability Index,
Honda’s auto motors are some the most dependable in the business. Motors are
the way to engine items and the organization’s ability in assembling motors is
an upper hand few adversaries can coordinate.

2. Broadened item portfolio

Honda works 4 unique divisions:

Cruiser business (12.3% income)

Vehicle business (72.8% income)

Power item and different business (2.3% income)

Money related Services (12.6% income)

Honda offers numerous items to buyers including
motors, autos, bikes, planes, robots, generators, lawnmowers, water pumps, and
also numerous other power gear items. While the autos create the most income
for Honda, its general item portfolio is genuinely enhanced, when contrasted with
Volkswagen, Toyota, General Motors, or Briggs and Stratton (in a motor
industry).

 

3. Predominance in bike and motor businesses
prompting a high brand mindfulness

Honda is an enormous organization overwhelming in
the greater part of the business sectors it works in, including motors and
cruisers. The organization is the main producer of little, universally useful
motors for business, rental industry, and purchaser applications. Honda is
likewise the main worldwide maker of bikes having 22.1% of the aggregate piece
of the overall industry in the principal half of 2016.Company’s predominance in
both of these business sectors have expanded its image acknowledgment and
notoriety. As indicated by Interbrand and Forbes,

Honda is the 21st and 23rd most important brand on
the planet, worth US$22.1 billion and US$25.2 billion, individually. Brand
esteem is firmly identified with mark mindfulness and its notoriety and just
couple of different organizations, for example, Toyota, BMW and Mercedes-Benz,
can contrast and Honda as far as a brand esteem.

4. Solid position in Asia’s cruiser markets

Cruiser business produces 12.3% of aggregate Honda’s
deals and is the third biggest income amass for the organization. The
organization has sold 17,592 units of bikes and off-road vehicles in 2016 alone
and caught 22.1% of the world’s cruiser showcase in the main portion of 2016.
Asia is the principle geographic portion for Honda’s cruiser business, where
the organization has sold 15.1 million units or more than 88.7% of its aggregate
bikes, creating ¥1,107.6 billion in income. Asia-Pacific district, which
incorporates such nations as China, India, Vietnam, Thailand, the Philippines,
Malaysia, Indonesia, Australia and Japan, is the biggest cruiser area on the
planet and Honda’s solid position in it is a capable upper hand.

1. Reliance on North America to create a large
portion of the income

Honda relies upon North America district, which for
the most part incorporates the U.S. furthermore, Canada, to create 55.6% of the
organization’s aggregate income. 

Honda’s income breakdown by geographic region. Honda
procures 55.6% of its income in North America alone.

Honda’s dependence on North America developed from
49.3% of the aggregate deals in 2014 to 55.6% of the aggregate deals in 2016.
Right now, North America is the primary driver behind organization’s
development where the cruiser income grew 20% and the vehicle income developed
by 19%. In any case, the U.S. what’s more, Canada are immersed markets and
Honda will think that its difficult to keep up a similar level of development
in these business sectors.

WEAKNESS

The organization is likewise winding up more
powerless against general negative changes in North America’s business sectors.

2. Low interests in innovative work (R) prompting
less inventive items .Honda has burned through US$5.4 billion for R in
2015. This added up to 4.5% of the organization’s aggregate income.

OPPURTUNITIES

1. Expanding government controls

Numerous administrations around the globe are
focused on lessening the ozone depleting substance discharges and are
empowering fuel productivity activities. Such natural activities may build
creation costs for the auto makers and these expenses will be either passed to
value delicate buyers or will diminish the organization’s benefits. Honda may
exploit this by presenting more auto models running just Hydrogen power modules
and bypassing all the administration controls related with the ozone harming
substance discharges.

 

2. Enhancing U.S. economy

Indications of an enhancing economy and rising
customer certainty have been reflected in the most grounded increment in new
vehicle deals for over 10 years in the U.S. advertise. 17.5 million new units
were sold in 2015, a 5.7% expansion more than 2014. Loan costs in the U.S. have
been low for quite a while and are estimate to remain that path for years to
come. In such financial conditions, Honda has a chance to catch higher piece of
the pie and increment deals in the U.S. car advertise.

 

3. Timing and recurrence of new model discharges

The piece of the pie of the car organizations is
altogether affected by the planning and recurrence of new model discharges.
Generally, new models have had a tendency to have real overhauls each 4 or 5
years with just minor adjustments in the middle. In any case, because of the
rising purchaser desires in connection to in-auto innovation and the focused
idea of the business, there is a contention to discharge updated models all the
more every now and again. Honda is very much situated to have the capacity.

4. Low fuel costs are expanding the interest for
pickup trucks and SUVs

As of now, fuel costs are the most reduced in 10
years. Such circumstance has urged customers to purchase huge fuel-wasteful
vehicles, for example, SUVs and pickup trucks. Customarily, Honda’s fundamental
concentrate was on littler autos like Honda Civic and cars, for example,

Honda Accord, however in the present circumstance,
where fuel costs are low, the organization has presented its cutting edge
pickup truck Ridgeline and upgraded its CR-V brandish utility vehicle to take
care of the demand for the greater vehicles. The pattern of low fuel costs is
probably going to stay and Honda ought to present more models of pickup trucks
and SUVs to take favorable position of the developing business sector for these
vehicles and to expand organization’s gainfulness.

 

 

 

Dangers

1. Expanded rivalry

Honda is looked with an ever expanded rivalry from
the customary car organizations, the new players and immersion of its primary
markets. In Asia, the organization’s key cruiser district, markets are about
soaked. In 2016, Honda’s bike income developed by just 5.4% in Asia, contrasted
with 20.3% development in North America district. The organization faces
numerous new participants in India and China, which offer comparative quality
bikes and bikes for bring down cost than Honda. Honda’s car business is
additionally encountering the moderating development of the car markets and the
expanded rivalry from the new Chinese producers. The organization’s universal
opponents, for example, Toyota, Ford, General Motors, Volkswagen and Hyundai,
all have bigger spending plans and could utilize them to forcefully take piece
of the pie from Honda. New organizations, for example, Tesla and even Google,
which tries to assemble self-driving autos are additionally undermining the
customary car industry. The opposition is additionally powered by the way that
the worldwide car generation limit far surpasses the request. In 2015, there
was an expected worldwide abundance generation limit of 31 million units.

2. Rising Japanese Yen trade rates

Over 88% of Honda’s income originated from universal
markets, which implies that the organization needs to change over remote
monetary standards to Japanese Yen with a specific end goal to ascertain its
incomes and send the benefits back to Japan. Cash rates are unpredictable and
the organization’s benefits and income very rely upon the fluctuating trade
rates. The organization can’t control the money trade rates, in this way it is
in danger, if Japanese Yen trade rates would begin to rise. In such case, the
organization’s benefits would diminish fundamentally. The organization itself
recognizes this as a key danger that will adversely influence the organization
throughout the following couple of years

3. Cataclysmic events

Honda has fabricating offices in Japan, Thailand,
China and Indonesia. These nations, including others, are regularly subject to
cataclysmic events that upset assembling procedures and result in bring down
generation volumes and benefits. (www.strategicmanagementinsight.com)

 

 

 

 

4P’S

PRODUCT

Honda has 4 business sections: vehicle, cruiser,
budgetary administrations and power. Honda autos take into account distinctive
requirements and inclinations of different portions of the business sectors. Honda
fabricates an extensive variety of cruisers from Beat (FC50) which has a 48cc
motor to Gold Wing (GL1800) which is 1832cc motor. The bikes utilize inside
ignition motors which are produced by Honda itself. Honda additionally offers
off-road vehicles (ATVs) and multi utility vehicles (MUVs). Honda’s Financial
administrations offer an assortment of administrations to clients in Japan, US,
UK, Germany, Brazil and Thailand. Administrations offered are renting of new
and pre possessed autos and financing for Honda items.

PRICE

Honda has cars which
target every segment of the market. Honda has hatchbacks, sedans, luxury sedans
and SUVs. Hence, the pricing strategy in the marketing mix of Honda is based on
various parameters like competition, segment, features etc. These automobiles
target customers from low middle income level to high income level. Dealerships
have limited flexibility over pricing. Prices are determined by Honda and
dealers enter into contracts with them. Base prices around the world are
similar and fluctuations may be due to currency, taxes and other similar
factors. Honda Motorcycles also have a wide range and cater to different
segments of the market.Honda also provides luxury bikes and sports bikes which
are priced at the higher end.

PLACE

Honda has a robust sales
network. Prior to 2006 Honda had three sales channels. These were, Honda Clio
and Honda Primo sold established and products of sporty nature. Honda Clio sold
traditional Honda products and Honda Primo sold Kei car i.e. small cars. All
three were discontinued in 2006 and Honda Cars dealerships were established.
Honda sells genuine company accessories through Honda Access a retail chain.
Customers can also buy used cars directly from Honda through Honda Auto
Terrace. Honda sells automobiles through a network of 740 retail dealers in
Japan; 1,310 dealers in the US; 1,580 dealers in Asia (excluding Japan); and
1,150 dealers in Europe as of 2014. As of 2014 Honda motorbikes had 6,900
outlets in Japan. Honda sells motorbikes using independent dealers in US and
Europe and Asia with 1,040 dealers in US, 14,070 dealers in Asia and 1,400
dealers in Europe. This shows the strong marketing mix distribution strategy of
Honda motors.

.

PROMOTION

Honda used an
innovative marketing campaign to change the way customers perceived motorbikes.
The add focus on Honda’s innovation and superior engineering such as the cog
advertisement released in 2003. Honda also released an advertisement showcasing
the Honda founder dream of producing high quality cars. Honda has a lot of
promotion done through motorsports like Motorcycle Grand Prix, Superbike racing
and others in which the company participates or supplies engines. Honda
portrays that it builds cars which win such tournaments. Honda sponsors such
sporting event , it was the official sponsor of the 2006 FIA Formula 1 telecast
on broadcaster channel “Ten”. Honda also sponsors other sports such
as hockey and golf. Honda advertises in print media and participates in road
shows to showcase its products. Hence, this concludes the marketing mix of
Honda.

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