Marketing Assignment 2012

Topics: Toyota, Honda, Compact car Pages: 10 (3937 words) Published: February 23, 2013
Marketing Assignment 2012
Honda Motors Company, Limited (本田技研工業株式会社), is a Japanese corporation that was known for being the largest and most popular motorcycle manufacturer in the year 1958. (Gardinar, n.d.) Few years after the release of Honda's all time loved Super Cub motorcycle line, Loh Boon Siew, the founder of Boon Siew Honda, received the distributorship for Honda motorcycles. As a result of close ties with Mr Honda, Loh too, was able to gain hold of a distributorship for Honda vehicles locally. However, in the year 2002, Oriental Holdings Sdn Bhd, which was established as a conglomerate by Loh Boon Siew, had given up its position to form a joint venture with both DRB Hicom and Honda Motors Company Limited Of Japan. (Fong 2011)

The Company's Full Spectrum
Formally known as DRB-Oriental-Honda Sdn Bhd, Honda Malaysia has four business operations strategically centralized around sea ports within the Peninsula Malaysia. Both the head office and the famed Pegoh Plant have their operations based in Alor Gajah, Melaka, which the latter serves as an assembly plant to assemble vehicles from components provided. These parts are derived from the storage operations for spare parts that are stationed in Bukit Jelutong. After the cars are fully assembled, they are then shipped to the storage center in Bangi. On the other hand, the sales office is stationed in the bustling city of Petaling Jaya, which is conveniently located as most Honda owners are abiding around the Selangor/ Kuala Lumpur region. For a more thorough understanding, a map is enclosed in the appendix, labelled as Appendix 1a. (perkeso) The Pegoh Plant assembly line is well known for its milestones achieved. Some notable achievements were the beginning of new mass production line, a revamping of the models that are mass produced, assembling the millionth car and such. (Autoworld, 2007) The inception itself too, can be considered as a milestone for Honda.

To date, the company has sold 10,000 hybrid cars in the automobile market, with the 10,000th car being the daily driver of a local radio deejay. (Tan, 2012) According to TheSun Daily (TheSun, 2012), Honda's Insight model has captured 55% percent of the hybrid market share since its launch back in 2010; on the other hand, no official figures surrounding the total amount of car units sold by Honda has been released as of to date, but it can be deduced that the amount has surpassed first million and is well on its way to the second million.

From a financial standpoint, Honda Malaysia is financially robust and healthy, based on the groups of values provided. The company's total revenue has managed to increase by a whopping 31.2%, from an already astounding RM 2,953,128.44 thousands to an astronomical RM 452,490.42 thousands. Total assets have increased from RM 1,194,317 thousands to RM 1,355,068 thousands, an increment of 13.459%. However, the increments in assets proportionately affect the total amount of liabilities of the company. A drastic increment of 32.63% from the start to the end of the financial year of 2011 is definitely worrying, especially when the net profit value is left undisclosed by Honda Malaysia. (

The sudden aggressive shift in the automobile technological environment, which is led by continental car makers, has triggered a new set of demands and wants. Naturally, other non-continental car makers, too, are quick to react and adapt to the shift and are competing in the same market. Two main competitors for Honda in such a saturated market, mainly in the small family car market(c-segment), are Toyota and Nissan, specifically Toyota Altis and Nissan Sylphy respectively. Not only are they priced around the same region as the Honda Civic, but they too, are similar in terms of performance and functions.

Founded by the son of the famous inventor and entrepreneur Sakichi Toyoda, Kiichiro Toyoda was the founder and the main driving force...
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