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10 STEP Marketing Plan for HONDA Cars Philippines
Luis Angelo M. IbarraFebruary 23, 2010
5 Steps for Part 1 (PTM & Positioning)
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
3C’s: Php144.6B Market!
5 Steps for Part 2(Marketing Mix & Strategy)
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
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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
Safe from thehazards of commuting
I belong to the higherclasses who can afford
I feel “made” and confidentIn my nice car
Self acceptance, “I am asuccess in my own right”
2. My PTM’s 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 PTM’s NWE (cont’d…)
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
Low price
Medium price
High price
Price / vehicletype
Compact Sedan UV SUV
Toyota
Honda
MazdaFord
Mitsu
Nissan
Honda’s Unique Positioning is Shown in This Competitive Map
Vehicle types are only those offered here in the Philippines
Positioning vs. Brand Matrix
Honda Toyota Mitsu Nissan Mazda FordSUV UV Pick-up Truck Sedan Compact Van Hybrid Private Only
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, it’s a P144.6B Market
Breakdown:49K new cars26K new SUV81K new UV
Assuming Php750K per car, Php1.5M SUV, Php850K per UV –that’s a Php144.6B Market!
6a. In Sedans, Honda has 5 Major Direct Competitors
Honda Toyota Mitsu MazdaNissan Ford
Com
pact
SUV
Seda
n
6a. Indirect Competitors vary from Real Estate to Business Ventures
Business
Bank Investments
Real estate
Condominiums
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 MakeIn the Sedan type, lowest prices offered are as follows:Honda Civic 1.8V: Php858KToyota Altis 1.6E: Php784KMitsubishi Lancer 1.6GLX: Php685KNissan 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 adsalong main
thoroughfares suchas EDSA
8a. Promo
Proposed: Direct mailTo their PTM!
8a. Promo
Proposed: More TVcommercials on
programs watchedby PTM –newsprograms, car
enthusiast shows,feature shows, etc.
8a. Promo
Proposed: testimonialsfrom bankable
celebrities who exude“class” and “prestige” -- offhand: Piolo, Sam,
Jericho, Dingdong,John Lloyd
(Clear shampoochose well!)
8a. Promo
Print ads in top 3Broadsheets –placedIn sections read by
PTM (special feature,sports, business, etc.)
8a. Promo
Honda currently hastheir own racing team,further showing that
their enginetechnology can
compete with the best
8a. Promo
Honda has a clean-looking website whichbanners their latest
car models and othernews briefs
8b. Competitor promo
Toyota has salesPromotions every
now and then
8b. Competitor promo
They also place printads in majorbroadsheets
(and so does theother makes)
8b. Competitor promo
Toyota maintains anuncluttered site,
which banners theirlatest sales promo
8b. Competitor promo
Toyota also has TVCs,just like Honda and
some other car makes
8b. Competitor promo
They also have aracing 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
Honda’s 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
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SUMMARY
5 Steps for Part 1 (PTM & Positioning)
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
3C’s: Php144.6B Market!
5 Steps for Part 2(Marketing Mix & Strategy)
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
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10 STEP Marketing Plan for HONDA Cars Philippines
Luis Angelo M. IbarraFebruary 23, 2010