10 step marketing plan for honda city
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http://jeffreyhaber08.blogspot.com/
Jeffrey S. Haber
March 2013
10 STEP
Marketing Plan forHonda City
DisclaimerThis 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s AGSB marketing management class.The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports.When appropriate, data are “masked” so as not to create unexpected conflicts.The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes.
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Steps 1 to 5A City You Can See Yourself In
1. Honda City PTM are exceptional young buyers for entry-level subcompact sedan
2. Who wants to reflect their aspiration and “change the rules”
3. Can choose Toyota Vios, Chevrolet Aveo, Hyundai Accent, etc.
4. Gap is all others are low cost5. The market size is P 140 Billion.
Honda City Niche is P 1.35 Billion. http://jeffreyhaber08.blogspot.com/
Steps 6 to 10The Pulse of the City
6. City has an outstanding design among its competitors
7. Is priced 10% more than Vios and Accent, 22% more than Aveo
8. Uses TV, events, internet9. Is distributed in key areas only10. Uses a niche the best among the rest
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http://jeffreyhaber08.blogspot.com/
Part 1: Steps 1 to 5
Positioning to the Primary Target Market
1. Honda City PTM are theworking class professionals 24-40 years old, social class B and C,
single or married
Young active enthusiasts who lead a busy life, are focused and dedicated for their work but also conscious about looks and fashion
Synonymous to comfort, would have a good mileage and will gave an amazing pick up
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PTM Worth the Trip Every Time
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I feel proud when driving with class
I want to attract opposite sex
2. Professionals have uniqueNeeds, Wants & Demands Professionals need to reflect work
elegance and career milestone, boosting their self-esteem
Professionals choose Honda City over other sedan to separate their sophisticated image to Taxi Cars
Professionals demands class-leading sense of driving ease and style to feel more sexually attractive
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3a. Honda City has many tough competitors Direct: Toyota Vios, Hyundai Accent,
etc.
Indirect: FX/Taxi, Jeeps, Buses, MRT, LRT, Bike
Variables: Age, Price, Convenience of Use, Availability, Brand
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3b. Competitive Position Map
Low Price High Price
Used by Taxi
Luxury Design
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Price vs. Design and Usage
Toyota Vios
Hyundai
Accent Honda City
Chevrolet Aveo
4. Honda City positions in a niche market opportunity
Honda City is the only entry-level sedan With luxurious design carrying strong
brand name equivalent to comfort Who wants to segregate itself to the others
by its reputation for not being used as a Taxi Cab.
Chevrolet Aveo is trying to catch up with this position
Others focus on basic car accessories, low price and cheap looking designs
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4. “Positioning”: brand identity from the maker
Forever change the rules.
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5a. Based on Competition data, car sales is 171k units
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Reference: http://focus2move.com/component/k2/item/464-philippines-car-market-in-2012-hit-new-record-sales
Toyota dominates this market as almost all the South Asian markets. In 2012 it sold 65.396 vehicles with a share of 35.6% almost stable across the entire year.
Honda was 5th, selling 11.396 units with a share of 6.2%, declined in the second half of the year due to low performance in Q4, when share was 5.7%.
5a. Based on Competition data, Honda City sales ≈ 1900 units
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Honda City was ranked 9th for selling 1843 units by December 2012
Reference: http://focus2move.com/component/k2/item/464-philippines-car-market-in-2012-hit-new-record-sales
5b. Based on Consumer data, Car sales is 112k units
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Reference: http://www.campiauto.org/downloads/2012-dec.pdfhttp://business.inquirer.net/97551/nov-vehicle-sales-up-21-says-campi
5c. Extracting Company data,Honda City mkt share ≈ P1.6 B
Average price for Honda City ≈ P 822k
1900 units x P 822k = P 1.6 Billion
Market Share ≈ 171 k = P 140 Billion
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Part 2: Steps 6 to 10
The Marketing Mix Strategy
6a. Subcompact Sedan is Dominated by 3 Major Brands
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6b. What makes Honda City different as a product?
Honda City is the only entry-level sedan That mirror image of your personality Make your driving experience delightful
and pleasurable Luxurious sedan with Euro-4 Level
standards having clean emission above average
With G-Force Control technology provides enhanced passive safety shielding
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6c. Honda City offers 3 variants in 5 flavorsVariants:1. Honda City 1.5E AT2. Honda City 1.3S AT3. Honda City 1.3S MT Colors:4. Sparkling Brown 5. Urban Titanium6. Crystal Black7. Taffeta White8. Habanero Red
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7. Price of Subcompact Sedan Vary from P585k to P836k
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PRICE PER UNIT BASED ON CURRENT MARKET (MARCH 15, 2013)
Engine
Honda City Toyota Vios Hyundai Accent
Chevrolet Aveo
Size Manual
Auto Manual
Auto Manual
Auto Manual
Auto
1.3 L 588
1.3 L 621
1.3 L 746 786 712 747
1.4 L 585
1.4 L 618 708 638 719
1.5 L 836 824
1.6 L 828City is generally priced 10% premium to Vios and Accent, 22% premium to Aveo.
8a. Honda City uses TV and Internet Ads, Auto Show
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1
2
3
8a. Promotions
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8b. Toyota remains # 1 moving forward
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9. Honda City is distributed in Key Areas by Honda Cars Phil
Key areas only
Pick up by customers
Cash and credit transactions
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10. Honda City is a Niche Leader
Honda City’s main strategy is to dominate the niche market of Luxury designed high-class car within the subcompact sedan division
Has an excellent, premium priced product distributed in key district areas
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Steps 1 to 5A City You Can See Yourself In
1. Honda City PTM are exceptional young buyers for entry-level subcompact sedan
2. Who wants to reflect their aspiration and “change the rules”
3. Can choose Toyota Vios, Chevrolet Aveo, Hyundai Accent, etc.
4. Gap is all others are low cost5. The market size is P 140 Billion.
Honda City Niche is P 1.35 Billion. http://jeffreyhaber08.blogspot.com/
Steps 6 to 10The Pulse of the City
6. City has an outstanding design among its competitors
7. Is priced 10% more than Vios and Accent, 22% more than Aveo
8. Uses TV, events, internet9. Is distributed in key areas only10. Uses a niche the best among the rest
http://jeffreyhaber08.blogspot.com/
http://jeffreyhaber08.blogspot.com/
Jeffrey S. Haber
March 2013
10 STEP
Marketing Plan forHonda City