1

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

4

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

34

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

37

10 STEP Marketing Plan for HONDA Cars Philippines

Luis Angelo M. IbarraFebruary 23, 2010