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Critical Evaluation Of The Marketing Strategy Business Essay

Harmonizing to Kotler & A ; Keller ( 2006 ) , Good selling is no accident, but a consequence of careful planning and executing. He besides adds, “ Selling patterns are continually being refined and reformed virtually in all industries to increase the opportunity of successes ”

Therefore, to be able to critically measure the selling scheme of an administration it is first and first really of import to understand the planning procedure, nucleus values, doctrines, ends, organizational scheme, concern environments and the selling aims of the organisation.

For this assignment the selling scheme of Honda Motor Co. Ltd has been considered.


Honda Motor Co. Ltd ( Honda ) is a Nipponese company and the universe ‘s largest engine maker and market leader in bikes. Honda has besides been ranked as the 5th largest cars maker of the universe.

Since its foundation in 1948, Honda has maintained a strong repute of inventions get downing with the invention of a motor engine attached to a bike which subsequently became the bike and the invention of green engineerings for cars. The latter was named as the “ Greenest Automaker ” by the Union of Concerned Scientists ( UCS ) for the 5th clip due to the low degrees of smog and nursery gas emanations produced by its autos.

Honda has a market portion of about 10.2 per centum in United States. It is besides considered as a major technological force in the bike and car industries in Asia, Europe and North America.

In 2006, Honda has besides launched the gross revenues of HondaJet Advances Light Jet aircrafts.

Importance and the usage of information in their selling scheme

Information is required at different phases for analyzing the market, the strength of the company, for puting a end and in the planning of any scheme.

While fixing a selling program, internal information about the house capablenesss, fiscal position, public presentation in footings of gross revenues, outgos, production capacity, stock lists, distribution & A ; bringing, bend over, hard currency flows and other fiscal position are really indispensable to cognize where company stands. This information is by and large presented as a Situational analysis.

Since a concern is met to run in a planetary environment it is influenced by several external factors ; societal, technological, economic, environmental, political and legal factors. Therefore it is really important to garner and analyze external information about the concern environment while fixing a selling program. This information enables the company to be cognizant of the chances and menace within the market. External information are analysed and presented as a STEEPLE analysis in a selling scheme.

Use of information in Honda Marketing Strategy

Honda has been continuously describing its fiscal information in its one-year concern studies. The coverage of the fiscal information for each concern section in a really systematic manner allows the company to follow tendency of the market and besides allows clients to distinguish Honda with regard to other makers ( refer one-year study 2010, pg 37 to 70 ) . By so making, Honda promotes an ethical pattern based on transparence and this brings more credibleness to the house. Honda besides uses this information to put new marks.

Use of market information by Honda to measure the chances and dainties and to put new marks

Using external information, Honda has been analysing the market hazards and has set new marks.

Honda ‘s Market Risks Analysis

Market hazards and dainties were as follows:

Loss of consumer assurance in the market due to continued lag, recession, lifting costs of fuel monetary values, alteration in client penchants and fiscal crisis.

Monetary values of cars, bikes and power merchandises are extremely volatile due alterations in duties, import ordinances and other revenue enhancements, deficit of certain supplies and high stuff monetary value.

Honda ‘s operations subject to currency fluctuations. Honda purchases stuffs and sells its merchandises to foreign states. Therefore currency fluctuations may impact its pricing policies

Honda ‘s hedge of currency and involvement rate hazard exposes Honda to other hazards

The car, bike and power merchandise industries are capable to extended environmental and other governmental ordinances with regard to climate alteration.

Honda is reliant on the protection and saving of its rational belongings. Honda group has a big figure of patents associating to merchandise fabrication which has been valued during the growing of the company. In footings of breach of the rational belongings rights by other stakeholders, Honda ‘s operations would be adversely affected.

Honda has been utilizing the internal and external information to invent its selling scheme and to put new marks based on the internal and external forces.

Honda ‘s missions and marks:

Create value merchandise through research and development

Enhancing production efficiency

Expand merchandise lines and heighten gross revenues efficiency

Upgrade merchandise quality to increase client demand

Development of safer engineering

Development of greener engineering for environment protection

Continuing to heighten Honda ‘s Social Reputation and Communication with the Community

1.4 Marketing scheme and overall organizational scheme.

The organizational scheme of Honda can be differentiated and discussed at five strategic degrees:

Enterprise Scheme

Honda promotes a doctrine of client attention by seting the client at the Centre of all its schemes. This can be deduced from its Mission Statement, which is: “ Keeping a planetary point of view, we are dedicated to providing merchandises of the highest quality, yet at a sensible monetary value for the world-wide client satisfaction. ” Honda has included development of higher quality merchandise with safer engineering in its selling scheme.

Corporate Scheme

Every organisation aspires at spread outing its concern to greater highs making higher net incomes and deriving competitory advantage over rival organisations. Honda has successfully launched new sections for power merchandises and other fiscal concern. It has besides integrated the scheme of spread outing its merchandise line in its selling scheme.

Business Scheme

Honda ‘s most successful concern scheme has been its engagement in research and development ( R & A ; D ) . Despite the influence of some external factors such as U.S.D depreciation, oil monetary value elevation, and political recessions, Honda has maintained its engagement in the R & A ; D that benefit people in the hereafter through leading-edge engineering in the development of economical cars.

Operational Scheme

Honda worldwide operation is divided into 6 administrative parts. The operation of the organisational units is based on the cardinal corporate doctrine of “ Respect for the Individual ” . Honda pushes the people at local direction and gross revenues operation by puting greater trust in them and by affecting them into the forward looking program for each part. Honda has besides integrated the sweetening of societal repute in its selling scheme.

The Individual Strategy

The single scheme of Honda is besides linked to client satisfaction. Honda ‘s single scheme is expressed through its doctrine – “ The Three Joy ” , The joy of purchasing, the joy of merchandising and the joy of bring forthing. Through its single scheme Honda and its associates try their best to transcend client satisfaction. This has been integrated in footings of heightening merchandise quality to transcend client satisfaction and heightening societal repute in its selling scheme.

1.5 Marketing planning with a planetary position

It is really of import to understand the planetary concern environments to be able to incorporate tactical determinations in the selling planning. In this subdivision a STEEPLE analysis has been carried out to see how Honda has integrated the forces from external environments in its marker planning.

Social and Cultural Forces

Loss of consumer assurance in the market due to continued lag, recession, lifting costs of fuel monetary values, alteration in client penchants and fiscal crisis has forced Honda to establish a new fiscal section to back up its clients and other concern section.

Technological Forces

In this modern epoch, where engineering is altering really fast, makers have the duty to maintain gait with the latest engineering to be in the market. To be competitory, maker has to look for advanced engineerings that would be less in the hereafter. Due to the lifting costs of fuel, the traditional vehicles were no more competitory. This has pushed Honda to put in R & A ; D and to bring forth auto with new renewable engineerings.

Economic Forces

The universe has incurred an economic lag due to the U.S fiscal crisis. This had earnestly impacted on the gross revenues of cars industries. The recession and the rise in gasolene monetary values triggered a diminution in the demand for cars. This has besides pushed Honda to believe on developing little and more economical fuel ingestion vehicles. Honda was besides affected by currency fluctuations as it purchases stuffs and sells its merchandises to foreign states. This has besides push Honda to develop other fiscal sectors that would prolong the currency loss.

Environmental Forces

With this turning concern on clime alteration the planetary community has made an entreaty to the industries for cut downing CO2 emanation and toxic wastes. Harmonizing to Kassaye ( 2001 ) , green selling is considered as one of the major tendencies in modern concern. Environmental and societal issues have become important strategic concerns for any concern ( Fellman, 1999 ) . Honda has really successfully integrated this demand in its selling planning by establishing itself in the development of greener engineerings like low emanation vehicles, loanblends and fuel cell vehicles.

Political/Legal Forces

One of the chief legal barriers in the gross revenues of cars is the revenue enhancement policies with respect to importing. The monetary value of an car may duplicate or treble due to the infliction of governmental revenue enhancements which varies from 100-200 % . Furthermore, ordinances sing vehicle emanation degrees, fuel economic system, noise, safety, noxious substances, pollutants level from production workss are going more restrictive and the cost for commanding and extenuating the pollution is really high.

On the other manus, the Government of many states subsidies revenue enhancement charges on low emanation and green engineerings. Integrating the development of low emanation and green engineerings with its selling planning will decidedly give Honda a competitory advantage.

Another of import external force is the competition in the concern environment. The Porter ‘s Five Forces theoretical account is a good model to analyze the concern environment with respect to competition.

The dainty of replacement merchandises

This is defined as the being of close replacement merchandises that may act upon client to exchange to options in response to monetary value additions. In the concern environment stylish designs are being copied really easy. Honda should endeavor to maintain its quality criterions at a sensible monetary value.

The dainty of the entry of new rivals

If new rivals get into the market, the net income is lowered. Other barriers are Torahs that prevent the entryway of foreign companies like in America where the authorities has promulgated Torahs to protect local companies. Honda has to reexamine its pricing policies to be competitory or travel toward advanced solutions.

Rivalry among bing rivals

Competitor competition is a really of import facet to be considered in the concern of cars. Honda has to vie ferociously with its three chief challengers: Toyota Motors Corp. , Ford Motor Co. and General Motor. To maintain a taking border Honda has to maintain abreast the latest engineering, which has pushed it in research and development.

The bargaining power of clients

For a company to be it has to make good dealingss with its clients. To keep its credibleness and trade name trueness Honda had to incorporate the construct of heightening societal repute and communicating within its selling program.

The bargaining power of providers

Honda purchases its stuff from planetary providers which trades with other car maker. To be able to acquire competitory monetary value, Honda had to supply a changeless beginning of demand and had to handle it providers in an ethical mode and that integrate the construct of “ Respect for the Individual ” in its selling program.

1.6 E-business schemes in selling

To maintain gait with the fast changing engineerings in the IT sector, Honda has embraced some wide schemes in the execution of e-business installations. The puting up of a web site with the modern manner of interacting with the universe has decidedly helped the company in its selling schemes. This has eliminated geographical boundaries, and has provided Honda with chances to make new markets. Through its web site the company provides a unrecorded platform 7 yearss a hebdomad over 24 hours.

Honda publishes a big sum of utile information on its web site. This allows people to be more cognizant of the company profiles, company history, company doctrines, mission and vision statements, company construction, company ends and aims and other of import fiscal informations that help in constructing the house credibleness.

Honda uses its web site to print its one-year study and to advance its merchandises. The cyberspace provides a just platform for comparing of similar merchandises. Since Honda his really rigorous in developing quality merchandises at mean cost. The e-business schemes provide a definite advantage to make its mark market.

2. Separate Two – Selling program for a new merchandise or service

2.1 Objective reappraisal of the inquiry

Selling Plan for a new merchandise or service

“ Invent a new merchandise or service for the auto maker and develop a selling scheme for that merchandise or service. Alternatively, develop a selling scheme for an bing auto in a market with which you are familiar.

Your scheme should include

cleavage of the market

choice of mark market

distinction and placement of the offering in the clients mind

selling aims

a selling mix for the new merchandise or service

an indicant of the costs of the selling scheme and when the company should anticipate a return on their investing. ”

2.2 Introduction

Honda has been runing under the basic rules of “ Respect for the Individual ” and “ The Tree Joys ” , expressed as “ The Joy of Buying ” , “ The Joy of Selling ” and “ The Joy of Creating ” . Honda has gained a strong repute in footings of merchandise quality and advanced solutions towards greener engineerings.

Honda has already a head start on research and development of green engineering with its fuel engines utilizing the loanblend, natural gas, fuel cell, bio-diesel and ethyl alcohol engineerings. Introducing a merchandise in this section will be as viing with oneself.

For this portion of the assignment, Honda will be establishing a new service of driving school. But non traditional driving school which teaches the pupil merely the basic techniques of driving. This impulsive school will take at advancing eco-driving techniques. This service will associate with its basic rule and would be expressed as the ” Fourth Joy ” , “ The Joy of Driving ” .

Brief description of the service

The service to be offer to the client of the impulsive school would be of a professional quality with a good structured database for the clients. The impulsive school will take at learning clients eco-driving techniques, cognition about the efficiency of green engine and safe drive techniques. The impulsive school will help the client boulder clay they obtain their drive licence.

However, the chief aim of this service would be to advance bing green merchandises, green autos that Honda has already launched on the market and to acquire closer to the client to better understand their demands, and to animate them with the doctrines and rules with which autos are being manufactured at Honda. As every concern, the service is expected to bring forth a fringy net income to prolong itself.

2.3 Cleavage of the market

It is really of import to understand the market topographic point and the client demands for which a new service is to be offered.


Since Honda has already been set up in states like Japan, North America, Europe, Asia and other parts, the driving school service may be introduced in these states because of the bing gross revenues units and substructure. A impulsive school will be best located in topographic points which are easy approachable like commercial countries.


The age to go through a drive licence will depend on the states legal policies. Normally, people are allowed to get down the auto-driving lessons at 16 old ages old. But for most of the Asiatic states it is at 18 old ages old. The impulsive school will accept both male and female clients as both form portion of the working category and have the same demand to larn drive.


There is a general belief that people who want to larn drive will be in demand of a auto in the close hereafter. Nowadays, most people that have late joined an employment aspire at purchasing a auto it has become manner of life. However, people have become more selective in footings of quality of services. The impulsive school should aim at offering quality services.


Peoples are attracted by the latest engineering. Knowing that a impulsive school is offering driving lessons in the most recent released auto, it would surely pull people.

Choice of mark market

The choice of a mark market is chiefly based on the rule aim for presenting the service. This impulsive school construct has been introduced to advance the green autos developed by Honda and to prolong portion of the operating expenses of the company in the crisis period.

The mark group will compose of people who are required to larn and acquire a drive licence. The age group will be of 18 to 45 old ages. This age group has been selected as they form most of the on the job category people that aspire to larn to drive and to purchase a auto. For people at the age of 18 there exists a market that would be relative to the population growing.

The service will be launched in two parts as a pilot undertaking. The two selected parts are North America and Europe. North America has been chosen as it represents its biggest market and Europe as it is the market Honda is confronting troubles.

2.4 Differentiation and placement of the offering in the clients mind

Since the market growing will be following the population growing, the market attraction is really high. From market analysis it has been observed that the cost of driving school lessons are acquiring higher and higher due to the lifting monetary value of gasoline, insurances and vehicle parts. There besides exists a supply spread for which the client does non hold other options and are obliged to pay the high cost. Therefore, the market attraction is really high for this peculiar service.

Rival Analysis

The driving school services in Mauritius and Asiatic states are largely provided by single teachers. However, in states like Europe and North America, along with single teachers, little concern units besides provide the drive lessons.

Since the market attraction is really high and there is a turning demand, Honda would be able to present the market with much easiness and the latter already has the needed substructure and resources.

Customer Appeal Analysis

To be able to pull the clients, there should be something value added given.

The followers offer has been considered:

Eco-driving techniques

Lessons on efficiency of green engines

Driving the latest released auto

Driving teachers being extremely proficient people

Price decrease with regard to mean market monetary value

Choice possibilities for auto theoretical accounts that the client wants to drive

Benefit insurance decrease installations

More personalize service

Flexibility in footings of clip

A certification of completion for eco-driving techniques

2.5 Selling aims

The selling aims would be as follows:

To advance the doctrine of “ The Joy of Driving ” and the construct of eco-driving

To advance safe drive techniques

To advance new released green autos and make a strong consciousness of the benefits and efficiencies of green engines

To set up a broad trade name acknowledgment and capture new market portions

2.6 Selected scheme and selling mix for the new service

Marketing schemes should be devised for specific intent, which requires careful planning. The launching of the eco-driving school is chiefly for the publicity of the green autos and the future developments of Honda. The mark market section dwelling of the people who require driving lessons has been selected as this section will be more eager to purchase a auto.

It is a psychological behaviour that people will take things that they have been utilizing and that they already have knowledge about the merchandise and its efficiencies. The first auto that a individual thrusts will be the best auto for him or her, specially, if the individual has driven a comparatively recent auto.

Product ( Service )

The service is a new construct. It is valued by the strong trade name acknowledgment of Honda. It promotes the doctrine of a service with the “ highest quality at a sensible monetary value ” . In add-on, it is an eco-friendly enterprise towards the environment which many people would wish to lend. On completion of the driving plan, clients are rewarded with a certification in eco-driving and grasp of green engines.

Monetary value

The pricing scheme is really tactical. The chief aim of supplying this service is to advance the green vehicles that have been developed by Honda. Alternatively of passing money in large advertisement procedures like fixing sole in writing designs, measure board, forming auto forums etc, portion of the money would be usage to finance the fringy costs of the impulsive school. Expenses for the impulsive school will be minimum as the same edifice substructure would be used. Recent autos developed for salesroom and trial thrusts would be used. The enrollment revenue enhancements or care costs can be considered fringy as compared to the vehicle used for trial thrust. Since Honda has its ain fiscal and insurance concern, the cost of insurance would be portion of the insouciant concern with no extra cost. The drive teachers would be already trained proficient staffs of Honda. With some basic preparation in client relation, these assets would be used. An extra braking system should be installed to the school drive autos for safety intents and this can be done by Honda itself. However, for perforating the market the monetary value would be lowered by 25 % of the mean costs. This is possible by sing all the bing resources of Honda. Then the monetary value may be varied for people who want to larn drive in some luxury autos or higher classs vehicles, but will keep the monetary value less than the mean market monetary value.

Topographic point

The topographic point for picking up the clients would be at the concern salesrooms. This will enable clients to see the new releases and be inspired by “ the manner of making things ” at Honda. The impulsive lessons would be conducted on the public roads and major parking countries as used by the single drive schools. This requires no extra costs except for the route enrollment revenue enhancements.


Promotion for the eco-driving school would be carried out through free cyberspace networking installations like This would make the selected mark market of age group 18-45 as most of the pupils and employees are connected through this planetary web.

Advertisement would besides be conducted on wireless and through car magazines. Since the service may non provide for a large consumption of clients at a clip. Quiz competitions could be carried out on Honda Green Technology to choose the clients for batch consumptions. This will trip the involvement of the public towards Honda green engineerings.


Since Honda has been long in the gross revenues concern. It has already trained staffs for client attention and public dealingss. Some preparation may be required for the drive teachers, and these could be carried out in-house itself.


Honda already has established procedures in quality direction system for managing client reserves, readying of citations, tracking vehicle bringings, revenue enhancement, wage axial rotations and payment system. All these bing IT installations could be used. Honda could besides make a practical concern unit for scheduling and payment of the drive lessons through the cyberspace.

Physical grounds

On completion of the driving plan, clients would be rewarded with a certification in eco-driving and grasp of green engines. This is something touchable that to add value to the type of developing received at Honda.

SWOT Analysis


Brand acknowledgment

Competitive pricing scheme

Available substructure and cars

Available human competences

Alliance with eco-diesel fuel companies ( competitory monetary value )


Unknown market for bring forthing net incomes

Entrance scheme into new market


Rising demand ( attractive market )

Government subsidies on eco-automobiles and trim parts

Promoting Honda merchandises at nothing costs


Legal conformities and patents

Potential followings

2.7 Cost facets and return on investing

Marketing schemes should be devised for specific intent, which requires

As discussed in the pricing scheme above, the puting up of this new service for eco-driving school can be implemented at minimum investing. If we consider the sum of money invested in advertisement activities which sometimes does non make the right mark, so the minimum cost of this service could be catered under the advertisement costs. The service of eco-driving school would be “ a service at no costs ” to Honda as it would be making the work of advertisement runs in a more effectual mode.

Furthermore, this service will construct better human dealingss with the populace, and this of import facet could be used to make a database for client entreaty and outlook analysis for future developments.

3.0 Mentions

RDI Managing Marketing Management Resources Course ( 2010 )

RDI Managing Change in Organisations Resources Course Material ( 2009 )

Daft, R ( 2008 ) New Era of Management, 2nd Edition, Thomson South-Western

Fellman, M.W ( 1999 ) , Cause selling takes a strategic bend, Marketing News,

Kassaye, W.W. ( 2001 ) , Green quandary, Marketing Intelligence & A ; Planning, Vol. 19 No. 6

Kotler, P ( 2006 ) Marketing Management, 12th Edition, Prentice Hall.

Web sites:

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Honda Annual Report 2010

Honda CSR Report 2007

Marketing Strategies – Honda “ FCX ” Clarity, Rohit Sharma

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