10 STEP

Marketing Plan for HONDA Cars Philippines

Luis Angelo M. Ibarra February 23, 2010

5 Steps for Part 1 (PTM & Positioning)

1.

2.

3.

4.

5.

PTM: Up and coming Class A and B NEW: Want value for money and at the same time want elegance and prestige there are no Honda PUVs! Competitors: Can choose Toyota or other car manufacturers Gap: Other car makes may be used as PUV, Honda is exclusively for Private use only 3Cs: Php144.6B Market!

5 Steps for Part 2 (Marketing Mix & Strategy)

6.

7.

8.

9.
10.

Product: Cars and SUVs Price: Varies on model of vehicle, but usually more expensive or the same as their Toyota counterparts Promo: Uses print and some TV ads also ties up with other promos with car prizes, race teams Place: Available in dealers nationwide Uses a differentiation strategy, with their designs and exclusivity of being for Private only

Positioning to the Primary Target Market

Part 1: Steps 1 to 5

1. Honda PTM are the Up and Coming Class A & B

Demographics: 30-50 yrs old, M/F, social class AB, single and married Lifestyle: working class, established with work and has buying power, fairly successful, wants value for money and prestige in what they drive Behavior: replaces car every 5 to 7 years, monthly amortization of 15 to 20K, good ride, efficient fuel consumption

Self acceptance, I am a success in my own right I feel made and confident In my nice car I belong to the higher classes who can afford

Safe from the hazards of commuting

2. My PTMs NWE
Class A and B need To be safe from the hazards of commuting, belong socially, be confident, self actualization and acceptance

Honda over Toyota or other makes because

Power of dreams (Honda tagline) dream fulfilled, the look and feel of the car, the efficient fuel consumption, price, credibility & image of the company, the exclusivity of Honda for private use only

2. My PTMs NWE (contd)

Expectations are A luxury item and increased convenience when traveling, above average fuel efficiency, a good ride, an image booster

3a. Honda Competitors

Direct: Toyota, Mitsubishi, Mazda, Ford, Nissan Indirect: Motorcycles, improved or promises of improved mass transit, investment opportunities (business, real estate, etc.) Variables: Price, income bracket, vehicle type (compact sedan, sedan, SUV, UV, van, pick-up truck, etc.), aesthetics, car features, fuel consumption, brand

Honda is the Clear Number 2 in Sedan and Compact vehicles, next only to Toyota
Price vs. Vehicle type need
Price / vehicle type High price Compact Sedan UV SUV

Medium price

Ford Toyota Mazda Mitsu Honda Nissan

Low price

Hondas Unique Positioning is Shown in This Competitive Map

Positioning vs. Brand Matrix
Honda SUV UV Pick-up Truck Sedan Compact Van Hybrid Private Only Toyota Mitsu Nissan Mazda Ford

Vehicle types are only those offered here in the Philippines

4. Honda Banks on its Image and Reputation

Honda is the only brand Which is exclusively for private only Which gives owners the feeling of class, elegance, and prestige (most especially in the lower priced compact cars and sedans others are seen as PUVs, but not Honda!) No other manufacturer has a similar position. Others sacrifice this image by allowing their vehicles to be PUVs in exchange of higher sales

5a. Based on LTO Data, there are 156K New Cars, SUV, & UV in 2008!
Source: http://www.lto.gov.ph/Stats2008/no_of_registered_MV_typeMode_LTO2008_2.pdf

5b. Based on Assumption of Vehicle Prices using Market Knowledge, its a P144.6B Market
Breakdown: 49K new cars 26K new SUV 81K new UV Assuming Php750K per car, Php1.5M SUV, Php850K per UV thats a Php144.6B Market!

6a. In Sedans, Honda has 5 Major Direct Competitors

Honda
Compact

Toyota

Mitsu

Nissan

Mazda

Ford

SUV

Sedan

6a. Indirect Competitors vary from Real Estate to Business Ventures

Business

Condominiums

Real estate

Bank Investments

6b. Product Description

Honda usually flaunt stylish curves and sleek interior designs. Their engines are often considered as one of the more powerful in the Asian car manufacturers industry Honda caters to the compact car, Sedan, and SUV (actually mini-SUV) market In each offering above, they offer several variances ranging from engine displacement, transmission type (MT/AT), and other features

7. Honda is Priced Higher by 41% than the Cheapest Make

In the Sedan type, lowest prices offered are as follows: Honda Civic 1.8V: Php858K Toyota Altis 1.6E: Php784K Mitsubishi Lancer 1.6GLX: Php685K Nissan Sentra 1.3GX: Php610K Mazda 3 1.6S: Php860K Ford Focus Style 1.8: Php779K

Honda is usually more expensive, but gives value for money with the engine displacement and features they have in the cheapest variant, Honda has power everything (windows, side mirrors, steering, etc.)

8a. Promo

Proposal: billboard ads along main thoroughfares such as EDSA

8a. Promo

Proposed: Direct mail To their PTM!

8a. Promo
Proposed: More TV commercials on programs watched by PTM news programs, car enthusiast shows, feature shows, etc.

8a. Promo
Proposed: testimonials from bankable celebrities who exude class and prestige -- offhand: Piolo, Sam, Jericho, Dingdong, John Lloyd (Clear shampoo chose well!)

8a. Promo

Print ads in top 3 Broadsheets placed In sections read by PTM (special feature, sports, business, etc.)

8a. Promo

Honda currently has their own racing team, further showing that their engine technology can compete with the best

8a. Promo

Honda has a cleanlooking website which banners their latest car models and other news briefs

8b. Competitor promo

Toyota has sales Promotions every now and then

8b. Competitor promo

They also place print ads in major broadsheets (and so does the other makes)

8b. Competitor promo

Toyota maintains an uncluttered site, which banners their latest sales promo

8b. Competitor promo

Toyota also has TVCs, just like Honda and some other car makes

8b. Competitor promo

They also have a racing team!

8b. Competitor promo

The primary competitor, Toyota, is practically doing what Honda has been doing and more (bigger sales promos).

The only disadvantage Toyota has in the Class A and (upper) B market is that Toyota is used as PUVs and might turn off potential buyers.

9. Honda has Dealers nationwide in Key Luzvismin Areas

Honda has 26 dealers nationwide, with 10 in NCR, 9 in Luzon, 4 in Visayas, and 3 in Mindanao Cars are ordered and may be delivered at your home or picked up at the dealer Mode of payment may vary from a mix of credit card (for down/partial payment), cash or financing

10. Honda is Different

Hondas main strategy is to target up and coming class A & B through differentiation by offering a product that cannot be associated with PUVs (despite their price range competing with some PUV-affordable models) It benefits from the global marketing machinery used by Honda (F1, ads over cable channel, etc.) Has premium priced, excellent product available nationwide

SUMMARY

34

5 Steps for Part 1 (PTM & Positioning)

1.

2.

3.

4.

5.

PTM: Up and coming Class A and B NEW: Want value for money and at the same time want elegance and prestige there are no Honda PUVs! Competitors: Can choose Toyota or other car manufacturers Gap: Other car makes may be used as PUV, Honda is exclusively for Private use only 3Cs: Php144.6B Market!

5 Steps for Part 2 (Marketing Mix & Strategy)

6.

7.

8.

9.
10.

Product: Cars and SUVs Price: Varies on model of vehicle, but usually more expensive or the same as their Toyota counterparts Promo: Uses print and some TV ads also ties up with other promos with car prizes, race teams Place: Available in dealers nationwide Uses a differentiation strategy, with their designs and exclusivity of being for Private only

10 STEP

Marketing Plan for HONDA Cars Philippines

Luis Angelo M. Ibarra February 23, 2010

37