Honda Report

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ASB-3103 Marketing Strategy and Management

Introduction
Honda’s product portfolio
Honda has offered products that supplement the lifestyles of their consumers around the globe. They have been producing motorcycles for more than 60 years now and are world’s top leading motorcycle manufacturer in terms of the number of units sold. According to the official Honda Motorcycles website, Honda has manufactured a total of 200 million motorcycles as of 2008. Page 1 of 7

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Honda manufactures 10 different types of motorcycles. • • • • • • • • • • Adventure Cruiser Off Road Roadsport Scooters Sports Tourers Supersports Touring Traditional 125cc

Honda provides dynamic support to establish a leading suite of proprietary products tailored specifically for their customer needs. Honda motorcycles simple products which are easily obtained by Honda’s nationwide dealerships. They are affordable and Honda has introduced low and high version of motorcycles for each model to meet diverse consumer requirements. Honda produces its motorcycles in many parts of the world. Hence, motorcycle development is designed to meet regional market characteristics and customer tastes.

Honda’s Competitive Environment
Honda operates in a competitive environment; they have many key competitors including Triumph, Yamaha, Suzuki, BMW, Kawasaki and Ducati. A variety of competitors means more choice for the consumer. Recently Triumph has fought back at Honda and many top market manufacturers, by earning a larger UK market share than them, at 17%. Honda’s annual report of 2007, which compares Honda’s sales to other competitors, shows that although the market share fluctuates from month to month, Honda regularly has approximately half of it. This shows their strong presence in the motorcycle/moped market.

Honda’s motorcycle competitive positioning in comparison to their main competitors’ production levels in Japan in September 2010 are as follows: Honda – 18,333 units Suzuki – 12,154 units Yamaha – 15,774 units Kawasaki – 11,635 units This shows they are the biggest manufacturing motorcycle company, and that the others have now formed what is known as a strategic group, who target the same market as Honda, and strive to be Page 2 of 7

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more successful. Looking specifically at the moped market Honda(1) is compared below to Yamaha(3) and vesper(2).see diagram below;

( taken from ASB 3103- Marketing Audit 1.ppt2010.ppt)

Honda’s External Environment
Honda’s motorcycles are surrounded by a macro environment which comprises of external forces that are continuously changing and influencing the company in different ways. The external forces can be summarised within a PESTLE analysis, which focuses on factors within the external business environment. Political forces: UK government proposal to limit the number of cars being sold would increase the manufacturing of motorcycles.

Economic forces:  The exchange rate of the Pound to Yen – the weakness of the Yen makes Honda expensive in the UK. The price of petrol and diesel has been increasing for a number of years, hence, mopeds have great fuel economy so the demand has increased.



Page 3 of 7

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Social and cultural: Motorcycles have a faster turnaround for commuting, particularly in cities with the urban congestion. Technological: As Honda is one of the leading manufacturers of motorcycles it has large investment in technological development. Motorcycle fatality rates per unit are higher than that in automobiles, because of this there is a big emphasis on technological advances in safety. Legal: You must be 16 years of age to ride a moped and 17 years of age to ride a motorcycle on the road. It is also a requirement to hold a driving licence which allows you to ride motorcycles – category A. Environmental: Honda has promoted its products towards being ‘green’. They have pressured to include a catalytic converter to reduce nitrogen oxide...
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