10 step marketing plan for honda city

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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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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