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The Povver of Dreams
MARKETING PLAN
Honda Vietnam
By
Balance group - Faculty of Business
Administration
Marketing plan - Honda Vietnam
Group Assignment
- Marketing plan -
Honda Vietnam
Group 7: Balance
1. Bui Huy n Trang
2.
06 Hai Anh
3. Nguy€n Anh Hao (Leader)
4. Nguy€n Thi Nguyen
5. Phung Thi Bich Ng9c
6.
Group 7: Balance
Vu Huy Hoang.
Marketing plan - Honda Vietnam
Table of Contents
I.
Executive summary: ...................................................................................................... 4
II.
Current situation: .............................................................................................. 5
1.
The macro environment of Honda Vietnam: ................................................................. 5
a.
Economic forces: .......................................................................................................... 5
b.
Political/Legal Forces: .................................................................................................. 6
C.
Social-cultura l Forces: ................................................................................................. 6
d.
Technological Forces: ................................................................................................... 6
e.
Demographic force: ...................................................................................................... 7
2.
Market Description: ................................................................................................... 7
3.
Competitive analysis: ................................................................................................. 7
a.
Yamaha - direct competitors: ................................................................................ 7
b.
Other competitors:......................................................................................................... 8
4.
Channel and Logistics review: ........................................................................................ 9
a.
Channel: ......................................................................................................................... 9
b.
Input Logistic: ............................................................................................................... 9
C.
Output Logistic: ............................................................................................................ 9
III. Swot Analysis: ...................................................................................................................... 9
1.
Strengths: ........................................................................................................................... 9
2.
Weaknesses: .................................................................................................................... 10
3.
Opportuni ties .................................................................................................................. 10
4.
Threats: ..................................................................................................................... 11
IV. Objectives and issues: ........................................................................................................ 11
1.
Honda's Objectives ............................................................................................................. 11
2.
Honda's Issues: ............................................................................................................... 12
V. Marketing strategy: ...................................................................................................... 12
1.
STP Analysis ................................................................................................................... 12
a.
Market segmentation: ................................................................................................. 12
b.
Market targeting: ........................................................................................................ 13
c.
Positioning: ................................................................................................................. 15
2.
4Ps analysis ............................................................................................................... 15
a.
Product policy: ............................................................................................................ 15
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Group 7: Balance
Marketing plan - Honda Vietnam
b.
Price policy: ........................................................................................................... 16
c.
Placepolicy: ........................................................................................................... 17
d.
Promotion policy: ................................................................................................. 18
VI. ACTION PROGRAM: .................................................................................................. 19
1. Advertisment: ........................................................................................................... 19
2.
Promotion - Sales and Marketing: ................................................................................ 20
3.
Event:......................................................................................................................... 21
VII. Budgets: ........................................................................................................................ 22
VIII. Control:......................................................................................................................... 24
3
Group 7: Balance
Marketing plan - Honda Vietnam
I.
Executive summary:
Nowadays, with a develop economy and a busy soc iety, travel demand is huge. People want
to travel more, or people have to transport a lot because of working. Due to those reasons,
the companies which produce vehicles like electric bicycles, motorbikes, cars are growing
strongly. In Vietnam, we absolutely must mention Honda Vietnam - a company mainly
provide motorcycles and cars in Vietnam. Honda has attracted a lot of customers and gain
the trust of people in whole country. Since Honda entered the Vietnam market over I 0
years ago, the company has continuously invested to build infrastructure to meet the
demands of the market that is motor vehicle up nearly 90% in the large cities. In 2012, the
motorbike market in Vietnam reached 3. l l million units, while Honda Vietnam (HVN) is
1.97 million, accounting for over 62% market share. So what strategies that Honda has
taken to achieve many success? This report will give you an overview on Honda Company,
current situation as well as strengths, weaknesses, opportunity and threats (SWOT analysis)
of Honda. Subsequently, we point out some objectives that Honda want to reach in the
future and some issues that Honda have to overcome. The next part identifies marketing
strategies which company has pursued and should follow in the future. Next, this document
brings out more specific information with an action program. The last part is about the
budgets that Honda must prepare for actions which are planned before and how the
company control it reasonably with the conditions inside company. First of all, this section
summaries some information about Honda Vietnam.
Honda Vietnam Corporation was established in 1998.
Head office: Phuc Yen district- Vinh Phuc province
Honda Vietnam (HVN) is a joint venture, comprises of 03 partners:
•
•
•
Honda Motor Company (Japan - 42%)
Asian Honda Motor Co. (Thailand - 28%)
Vietnam Movers and Farm Machinery Corporations (Vietnam - 30%)
Honda Co. received investment license in Production of motorcycle assembly: Number
1521/GP March 22, 1996. Business activities: Manufacture and assembly of motorcycles
and motorcycle parts of Honda brand; Production and assembly of cars below 9 seats.
Charter capital: $ 62,900,000 (under Investment License)
Honda Vietnam now has 3 main factories:
The first motorcycle factory:
March 1998, Honda Vietnam inaugurated the first factory. It was one of the most modem
motorcycle manufacturing plant in Southeast Asia.
- Founded in 1998.
- Headquarters: Phuc Thang Phuc Yen, Vinh Phuc.
- Investment capital: USD 290,427,084.
- Labor: 3,560 people.
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Marketing plan - Honda Vietnam
-
Capacity: 1 million units/year.
Second motorcycle plant:
To meet the growing needs of customers in Vietnam, Honda Vietnam has decided to expand
production, improve production in Vietnam market. In August 2008, second motorcycle
factory which was specialized in producing scooters and gear motorbikes with a capacity
of 500,000 vehicles/year was inaugurated in Vietnam. This special motorcycle factory
factor is the "friendly with environment and people." Accordingly, this plant is built based
on a combination of harmony between natural energy resources are: Wind, Light and
Water.
- Year of establis hment: 2008
- Headquarters: Phuc Thang Phuc Yen, Vinh Phuc
- Capital investment: $ 65 million
- Labor: 1,375 people
- Capacity: 500,000 units/year.
Car manufacturing plant:
- Year of establishment: 2005
- Headquarters: Phuc Thang, Phuc Yen, Vinh Phuc.
- Capital investment: Approximately$ 60 million
- Area: 17.000rn2
- Labor: 408 people
- Capacity: 10,000 units/year.
Automotive manufacturing plant is equipped with machinery and equipment similar to
Honda plants in other countries, particularly with respect criteria of quality, safety and
environmental friendliness. Moreover, the plant is equipped with the engine assembly line
with desired step localization Car products.
II. Current situation:
1. The macro environment of Honda Vietnam:
a. Economic forces:
Economic forces include some factors which affect to organizatio n action and its
performances such as: GDP, inflation rate, employment rate, demographic changing,
monetary policies and financial market, etc.
Vietnam economic in 2009 was quite good in the context of global crisis. GDP is increasing
with more than 6%. Exports were over 60 Billion USD. Financial and credit systems were
quite stable. These things explain that: economy of Vietnam is still quite good therefore
Honda Vietnam and many companies will not meet too serious problems. However,
inflation of Vietnam was high, about more than 15% (2009). This thing will influence to
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Marketing plan - Honda Vietnam
Honda Vietnam because this company has to pay high interest rate. In addition, low interest
rate will make investment efficiency because, they are less costly to finance.
Besides, Vietnam and many country depend too much on USD and Vietnam monetary is
not good enough therefore, it makes some difficult things to Honda business such as: Honda
Vietnam want to sell their product and receive USD because USD price is stable but
Vietnamese customers want to buy by VND because, exchange rate of USD per VND is
too high.
Economic forces have many important missions in strategic management of Honda. It helps
Honda can monitor and forecast in domestic and event international economic.
b. Political/Legal Forces:
- A business unit of production greatly influenced by political law. Each decisions of
expansion, consumption or pricing are governed by the policies of government. Motorcycle
manufacturing industry is also affected by the tax, commercial law, business law ...Honda
Vietnam is inherited Honda's Japanese technology, so it must meet the criteria of
"Intellectual property law" and "copyright laws" in the process of technology transfer.
- When more companies join in a business, tariff barriers are gradually eliminated. So there
should have quality, reasonable price and delivery system to be able to compete with other
businesses at within the country and abroad , while avoid breaking the laws and the terms
of trade liberalization.
- Vietnam government always has some policies to encourage the investment to many
businesses. In addition, Vietnam has a stable policy. It is an important thing to attract the
foreign investment; therefore, foreign and domestic investors want to invest more in
Vietnam. This thing will be an advantage of Honda Vietnam because they will have more
investme nt to develop their technology, market and business. Vietnam government always
applies the same law, policies and legalization with all of companies therefore, it guarantees
for Honda can run their business well.
c. Social-cultural Forces:
- Motorcycles are the most popular vehicle in Vietnam and the motor is a culture of
Vietnam. In Vietnam, the motorcycle appears seemly to be a family member. Demand for
motorcycle s in Vietnam is huge.
- According to statistics, every day in Vietnam, there are hundreds of traffic accidents and
most of them are motorcycle accidents. The consequences of each accident
is
unmeasurable. The question is how to use motorcycles particularly Honda motorcycle in
safe and helpful way. So Honda has a program to teach how to drive safely named " I Love
Vietnam ". This program is actually an effective method of communication for Honda
products.
- Honda also actively participated in some cultural events such as sponsoring for U21
football champion, "Sao Mai diem hen", ... Through these events, the name "Ho nda" has
become closer with Vietnamese people.
d. Technological Forces:
Manufacturing and assembly industry requires high technology so the competitiveness in
this environment is very aggressive, it reflects the level of development. Honda with the
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Marketing plan - Honda Vietnam
advantage of scale, along with its technology platform has invested modem technology,
producing and assembling the modern, good quality, affordable motor and car, Honda has
reached the requirements of standard quality.
e. Demographic force:
Honda cover all of the market segment from low to high class. Honda provides suitable
products for each class. Thus, in term of richness in its products, Honda is clearly show
exceptional representation in all segments.
2. Market Description:
Honda' s market consists of consumers and business users who prefer to use motorbike and
cars for the purpose of transfer and transportation. The company is dominating the market
with the market share up to more than 50% as they continue to present high - quality offers.
Specific segments being targeted included wide range of users based mostly on
demographic criteria.
Consumers can choose between models based on several different types of product for
particular market segments from the popular models to luxurious ones because the
company has introduced assorted products fitting the budget of many customer segments.
HVN' s slogan on the helmet, on the panel, posters and the education show of traffic safety
on the television, and the epic music showhave been show upas an action to help customers
have good skills and attitude when joining traffic and build up the company's image.
Honda is building up an image, a model which penetrating the Vietnamese people' s soul,
and gradually Honda is integrated and intertwined with the people the country to become a
Honda of Vietnam. Honda cover all of the market segment from low class to high class.
Thus, in terms of richness in its products, Honda is clearly shown exceptional
representation in all segments. With its broad coverage, Honda is crowned the supreme
scooter maker in Vietnam come at no surprise.
3. Competitive analysis:
In a market economy, competition is an unavoidable issue that any corporation has to face.
Regardless of fields that company has business in, competition always comes along with
its existence and development, and Honda Vietnam is not excepted. In recent years, there
appeared a large number of suppliers of cars and motorbikes in Vietnam, they have proved
their own strengths and step by step earned business credibility due to products' high
quality and variety. Al though Honda Vietnam occupies a very large market share of over
50%, they have to draw a plan deal with competitors. The major competitors of Honda
Vietnam (HVN) in the motor bike market are Yamaha, Suzuki, SYM, Piaggo,..
a. Yamaha - direct competitors:
Entering Vietnam's market after HVN I year with large scale and big budget, Yamaha
Vietnam has made a lot of efforts to become an active member of Vietnam's society,
making their way to quickly contribute to the development of Vietnam' s motorbike
industry. Yamaha Motor uses both market-oriented and customer-oriented strategy.
Despite being the latecomer, Yamaha Vietnam always makes use of their advantages to
drastically compete with HVN with desire of occupying the market share and they have
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Marketing plan - Honda Vietnam
been somewhat successful m use this strategy by getting a stabilized position in the
motorbike market.
Although Yamaha cannot compete with HVN about quality and fuel-savings, their
advantage over HVN is that they provide products which are various in style, design,...
Nouvo, Mio, Luvias, Cuxi, Exciter, Jupiter, Sirius, Taurus,... and they are designed to serve
many customer segments.
About the marketing strategy, Yamaha Vietnam have built a wide advertising and
marketing campaign; they provide the form of installment with reasonable interest to attract
customers; become the sponsor of children' s football league successively in 3 years; attend
fair with program " Yamaha More 2010 Exhibition"; build excellent system of dealers and
customer care including Yamaha Town, 3S dealers, 2S dealers...
After a short period of time, Yamaha Vietnam has found out their own strengths and they
are step by step proving their power in the market.
b. Other competitors:
b-1. SYM:
In 1992, San Yang began their investment in Vietnam with the name ofVMEP. Since 1996,
San Yang Motor Taiwan Company, affiliated with Chinfon Corporation, has decided to
make a breakthrough by launching a global campaign with SYM brand and now its
products can be found in a lot of countries. In 2002, San Yang Company boosted up the
investment of 15.000.000USD to implement the project of engine assembly, the largest one
in Vietnam. SYM brand has 2 type of motorbikes: Cub ( Angel, Magic, Star, Amigo, Bonus,
Hasky) and Scooter ( Attila, Excel, HD, GTS)
In 2009, SYM occupied 9% market share of motorbike industry
About the marketing strategy, SYM uses the channel of dealers covering all the nation;
they used the sale promotion that customer s were given helmets as a gift and held the event
"SYM 10 years of establishment". With high quality and credibility and non-stop
innovation, SYM has become one of the most expected brands in the market of motorbike
b-2. Suzuki
Suzuki is a big company in Japan. In 1996, Suzuki set up its operation in Vietnam. They
produced the fust motorbike in the same year. Along with improving existing products (
GN 125, Viva CD). They also provide new offers Shogun R l 25, Viva 110, Smash. Revo
l l0cc,...
With the slogan " Ride the winds of change ", Suzuki accepts the challenges arising during
technology innovation p rocess to aim at bringing new products which give customers brand
new. Suzuki has a numerous system of dealers all over the country. This system is the
combination of all Suzuki 3S store which fully provide services: Sales, After Sales
Services, Spare parts. The company launches "after sales services" campaign with the name
" Suzuki customer care" to supportcustomers and provide after sales services to them. They
also use sales promotion and sales off to attract more customers.
With non-stop efforts in Vietnam's market, Suzuki is day by day expanding in the
motorbike industry and customers have accepted and support its products.
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Marketing plan - Honda Vietnam
b-3. Piaggio
Although Piaggo entered Vietnamese market pretty late, this brand focus mostly on luxury
scooters market segment. With well-designed and luxurious products, Piaggo has quickly
occupied this segment and become the strong and direct rival ofHVN in a particular market
segment.
4. Channel and Logistics review:
a. Channel: As there is no direct selling service, the HVN' s product sales base on
HEADs. HEAD network is built countrywide so that it can bring customers genuine
products in the most convenient way. By October , 2012, the number of HEADs is
617.
b. Input Logistic:
To ensure the input supply, Honda Vietnam has been very careful in the selection of
plants' location. Honda's two existing plants are now located in Vinh Phuc and are
built in the industrial park, which reduce the distance to more company producing
components and auxiliary equipment. In addition, the plants also have a convenient
way to Hanoi and Haiphong, two largest traffic hub of the North. With plant locat ions
are carefully selected, Honda Vietnam has all the control over inputs to create certain
competitive advantages on the market.
c. Output Logistic:
HVN has built a system of warehouse near the seaports and road traffic axis to the
North - South. This is a favorable condition for the company to minimize the cost of
transportation.
III. Swot Analysis:
1. Strengths:
- Honda has a reputation for producing high quality and good design products from cars to
motorcycles to lawn mowers. In addition, they have reasonable prices therefore they will
attract more customers. In fact they are the largest manufacturer of motorcycles in the
world. Honda has won many awards for initial quality and customer satisfaction. Their
automobiles are reliable and generally fuel efficient. Their research has afforded them
competitivene ss in innovative p roducts.
- Vietnam has a big population therefore, Honda has a large market to provide cars and
recruit employees. Moreover, Honda has good brand in Vietnam market so; it helps the
company to sell well in Vietnam market. From a long time ago, whenever people mention
about buying a motorbikes, they always think a bout Honda first.
- Honda's cars have good speed and power but they consume low fuel therefore, it is suitable
with Vietnam traffic with many traffic jams. In additio n, it contr ibutes to make minimize
pollution. Furthermore, Honda always tries to develop and research new technology
therefore, they will make their cars better with good speed, power and low fuel.
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Marketing plan - Honda Vietnam
- Honda Vietnam hassome promotion programs for customers such as: Customers who has
received Honda Civic will receive VISA Debit card issued by a bank with value is 20
million VND.
2. Weaknesses:
- Hondas products are fairly bland and inoffensive in terms of styling. Their prices are
higher for non-luxury vehicles than comparable modes by other manufacture s. They do not
have a strong offering in a truck line.
- Honda Vietnam focuses on producing and researching motorbike too much therefore they
cannot spend much time for cars.
- Honda Vietnam focuses on producing and researching motorbike too much therefore they
cannot spend much time for cars.
- Honda requires a deposit for purchasing cars but Nissan and Toyota don't do that
therefore, it is a disadvantages of Honda.
3. Opportunities:
Opportunitie s are circumstances or factors that may create favorable conditions for a
development of a capability, an idea or a business. It is important for every business need
to know that it should take advantage of opportunities, strengths to growing. Honda
Vietnam has many opportunities to develop motorcycles on potential Vietnam market:
- With a population of over 80 million people, transportation is primarily motorcycle ,
Vietnam market as a potential market and it has created a huge opportunities for Honda
Vietnam Company.
- The weaknesses of the competitors and will also provide an opportunity for the company,
Honda Vietnam. As we know, the motorcycle market in recent years has become larger
because of the launch of the joint venture production motorcycle, the advent of the
assembly line IKD form and the massive import of Chinese motorcycle.
- Brand of Honda has been created in the past because motorbike of Honda is very famous
in Vietnam market therefore they don't need much time to create brand so, when cars of
Honda Vietnam has produced and go to market, the customers will have more trust with
this brand. In addition, when Toyota (the biggest competitor of Honda) has many problems
and must recall many cars.
- In the future, with good technology, Honda can focus on designing and implementing new
product with good quality, reasonable price and low fuel.
- Improving the quality of product, services and customer relationship as well as building
caring center for customers.
- Honda also has opportunities in developing the fuel efficiency according to the increase
of energy price.
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Group 7: Balance
Marketing plan - Honda Vietnam
4. Threats:
Threats are also known as risk factors, the circumstances or factors that may limit
developing a capability, an idea or a business. There are many opportunities, but Honda
Vietnam is facing much challenges:
- The first threat is that Honda Vietnam has to face a huge import of motorcycle from China.
Purcha sing power of consumers in Vietnam with the products produced by Honda Vietnam
has greatly decreased due to they turn to buy China motorcycle with much cheaper price.
- The next threat of Honda Vietnam is facing competition from the assemblers - Motorcycle
manufacturing foreign investment in Vietnam. Although they are not able to compete with
Honda Vietnam in quality but the other company of motorcycle have more advantage than
Honda Vietnam about the category. Type of vehicles of competitors are rich, diverse and
very trendy. In addition, the competitors also implement advertising strategies, extensive
marketing, care service very thoughtfully.
- Economic crisis will affect directly to business status of Honda. It is very serious because,
when crisis will make the bad sale and it also affects to Honda's loyal customers. Moreover,
Economic crisis will make the USD charge the value; therefore, price of cars of Honda will
be charged. It will be difficult for customers, Honda can lose the market.
- The government has some policies about increasing tax of cars and fuel therefore, it will
affect to business status of Honda.
IV. Objectives and issues:
1. Honda's Objectives:
Firstly, Honda try: "Maintainingan international viewpoint, we are dedicated to supplying
products of the highest efficiency, yet at reasonable prices, for worldwide customer
satisfaction". Since its foundation, Honda has been delivering various products with a
passion to use technology to make people's lives more convenient and enjoyable. Honda's
products have been pleasing customers all around the world by making their work easier,
increasing their mobility and adding more fun and convenience to their lives. In the
previous fisca l year (ended March 31, 2012), Honda shared the joys with more than 23.9
million customers around the world including: 15 million motorcycle customers, 5.8
million power products customers and 3.1 million automobile customers.
Secondly, parallel with good products, Honda try to protect environment. Summary of CEO
Speech on September 21, 2012: I set Honda's " Direction for the next 10 years" which is
"to provide good products to our customers with speed, affordability and low CO2
emissions." Since then, Honda has been devoting its full efforts in leveraging Honda's
unique technologies, ideas and ingenuity to create attractive products that please customers
who purchased such products. In addition, as a manufacturer of personal mobility products,
Honda has been proactively executing various initiatives which contribute to a significant
reduction of CO2 emissions. Besides, Honda considers environmental issues in all business
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Marketing plan - Honda Vietnam
activities, it is implementing thorough environmental improvement activities to promote
"green offices" that protect the global environment.
The third objective is about a perfect service quality. Honda is deeply aware of the decisive
role of service quality for customers' satisfact ion, so beside the supply of automobile
meeting Honda global standards, Honda Viet Nam always want to attach great importance
to the enhancement of sales and service quality at Honda Automobile Dealers.
The last but not least, Honda Vietnam wishes to contribute to building a traffic safety
society in Vietnam, become a company that society wants to exist. Over the years, Honda
has pioneered in traffic safety activities and safety driving training activities and safety
driving instructions.
2. Honda's Issues:
The first issue is Honda has some strong competitors such as Yamaha. Yamaha always
compete fiercely and wrest market share from Honda Vietnam. SYM, Suzuki, Piaggo are
also competitors of Honda Vietnam. Moreover, Honda is lack of genius and they need to
find more engineers to help them figure out the new model or engine to attract customers
and gain high market share.
The second issue that faced by Honda is supply resources from other country. Honda do
needs supply resources from other country such as Thailand, Japan, ... Due to the Japanese
earthquake and tsunami and flooding in Thailand, it had made Honda lack of resources to
do their accessory and requirement from engine. Honda needs to wait for the supplier to
give them the resources hence make the sales from Honda drop.
The last issue is Honda lack of funds. Honda has spent months struggling with shortages
of most of its products especially is some modern car that need a lot of capital. In addition,
many of campaigns and projects that the company plans to do require many budgets.
V. Marketing strategy:
1. STP Analysis (Segmentation, targeting, positioning analysis):
a. Market segmentation:
Honda Vietnam don't limit their segmentation analysis to only one or few variables, they
using multiple segmentation bases. In Vietnam, market segmentation of Honda is divided
by gender, income, social class , lifestyle ,...
Segment of the motorcycle market:
•
Segment one: Motorcycle just is essential transport in daily life and business for 6 10 million VND. It serves target customer who with low income but need
transportation , live in rural. Products in this segment with low quality and low
safety.
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•
Segment two: also aimed at the mass market, rural areas, people have new work or
not self-financing with rates from 10-20 million VND. In this segment , users not
only looking for benefits like transport but also property nature of youth fashion. At
the same time also make one product more durable, s afer
•
Segment Three: towards more advanced markets, those with relatively high
incomes, or young audience looking for their own style, needs asserted themselves,
express individuality and elegance. Priced from 20 to 50 million VND. This market
segment includes motorbike and some scooters.
•
Segment Four: In this market, consumers are willing to spend the amount much
higher than the normal functions of a personal transportation. The scooters in this
segment are the luxury scooters, elegant, personal expression, class, and partly also
shown that social classes and their lifestyle . Price greater 50 million VND.
b. Market targeting:
Honda Vietnam's ambition to dominate the motorcycle market in Vietnam , so it not only
choose a single target market .
• Segment two:
Honda Wave: prominent of which is the wave Alpha, it appear s to have helped honda
overcome tough times ofhonda, when the Chinese motorbike market share in Vietnam
large while Honda only focus on middle and senior market. Wave alpha appeared at
the end of 1/2002, and with prices as Vietnamese' dreams. We can say that wave alpha
as savior of Honda motorcycles helped the company regain over 60% market share of
motorcycles in Vietnam. The wave series from 2002 to now: Honda Wave 110 RSX,
Honda Wave Alpha, Honda Wave 110 S, Honda Wave 110 RS .. .
• Segment three: In intermediate segment of Honda motorcycle s divided into 2 types
motorbike and scooters
Represents for motorbike in this segment is :
- Honda Future: from appearing to today , Honda has improved it over the reigns as Future
II, Neo Future, Future Neo GT, Future Neo Fi ... and recently Future 2012
intermediate scooters of honda :
- Honda Airblade: Honda's scooter presence in Vietnam since 2007. Nearly 10 years of
presence in markets where the car had many versions to fit as Airblade Fi market, Airblade
2011 Honda Airblade 2013 versions are upgraded technologies such as electronic fuel
injection, stamp 3D ...
- Honda Lead:is new scooter honda put on the market in recent years. Lead applied the new
technology and ergonomically designed. honda lead 125 models recently introduced into
the market is considered the most sold this year
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•
Segment four :Premium segment is focused on scooter. Representative of luxury
cooter is:
- Honda SH: is a line of high-end scooters popular in Vietnam. We can say SH is considered
the leading representative of scooters premium segmentit has been in Vietnam since the
early 2000s, but the SH period hot is from around 2005 to 2008 .
March 2005, Honda Vietnam officially received a lice nse from the Ministry of Planning
and Investment to allow automobile assembly production in Vietnam.Therefore, in the
Vietnam market, honda just have 4 products for the automotive market is the Honda Civic,
Honda CR-V, Honda Accord and recently 6/2013 honda city the 3rd generation was
introduced in Vietnam .
- HONDA CITY This is a small family car pretty famous of Honda.Honda City was first
launched in Vietnam is in 5/2013 with two version : floor number and number
automatically. The City indicates that this is the car toward urban customers, youthful
modem design, 2 airbags, ABS, EBD, Automatic version number have shake on the
steering wheel convenience.From 16./12/2013, Honda launched City Limited Edition
version with more equipment than the standard version, such as leather seats, CD player,
driver armrest car prices are pretty cheap.
City number flour: 550.000.000 VNf) , City number automatic: 590.000.000 VND, Honda
City Limited Edition:615.000.000 VND
- HONDA CIVIC :Launched in Vietnam in 2006, the Honda Civic is known for designing
youthful , modern and sporty. The current version is the 2nd generation in Vietnam (No. 9
in the world), launched in 2012 have pretty much improved: ACE safety guards, side
airbags, VSA supports car balance, power steering , support fuel-efficient driving ECO...
Civic 1.8 MT: 725.000.000 VND
Civic I.SAT: 780.000.000 VND
Honda Civic 2.0 AT: 860.000.000VNI>
- HONDA ACCORD : There are 2 versions of the Accord was distributed in the
Vietnamese market, the 2.4 I (imported from Thailand) and used the same 3.5 L 5-speed
automatic
gearbox.
Honda
Accord
car
prices
were
quite
high.
Honda Accord 2.4AT gi:i: 1,435,000 ,000 VNf)
Honda Accord 3.5AT gi:i: 1,780,000,000 VNf)
-HONDA CRY In Vietnam, the 2013 Honda CR-V was introduced with version 2 engines
with a capacity of2.0L and 2.4L accompanying 5-speed automatic transmission, is priced
at between 998 million and 1.14 billion.
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Marketing plan - Honda Vietnam
c. Positioning:
•
With the diversification of product honda Vietnam has a lot of motorcycle products
and automobile appropriate for each age group, gender, economic status of each
family ... So when you come to Honda to buy products, you can easily choose
products that suits you.
•
In every consumer Vietnam when it says to honda is said to quality: durability, high
safety, appropriate for traffic conditions Vietnam
•
And honda presence in Vietnam from early. With this features honda took the
competition to lead in the motorcycle field. Honda has become a reputable name in
Vietnam.
2. 4Ps analysis: Product, Price, Place and Positions.
a. Product policy:
- Diversification categories, price products in all market segments.
- Continuous innovation in designs, colors and designs.
- Maintain and enhance the prestige and quality products of Honda
- Commitment to product environmentally friendly.
Diversification product:
- Supper class: SHl20 cc, SHl50 cc.
- Middles class , working class : Air Blade, Lead, Click, Play 2010, Future X FI, Future
X.etc.
- Upper lowers class : Wave!10 RSX, Wave! ! OS, Wave anfa, Super Dream.v.v
Product labels:
HONDA with Slogan" The Power of Dream" refer criteria that the company wanted to
bring to the consumer . Honda Vietnam want to bring safety and happiness for Vietnameses
.This slogan as message that Honda want to send to their customers: "Honda is becoming
a company that society expects", doing its best for the development of the country and
people in Vietnam.
Decisions related to product characteristics:
15
Group 7: Balance
Marketing plan - Honda Vietnam
With durable quality, high safety, particularly suited for traffic conditions in Vietnam as
well as services after -sales, the products of Honda Vietnam totally gain the trust of
customers. So far, more than 2.5 million motorcycle s and nearly 20,000 units of Honda
cars Vietnam were preferred and used all over the country. Products and sales serv ice of
Honda Vietnam is always analyzed by consumers as high -quality products through 9 years
and Honda was offered " R6ng Vang" Award concecutively in 5 years . The company was
also awarded by the Ministry of Industry, Ministry of Planning and Investment, Ministry
of Trade.
Product Features:
With each types product of Honda has specifications, salient features separate , Moreover,
each vehicle has many different colors to customer choose . Research needs of customer is
the basis that company produce new vehicles to satisfy customer. And this internal
functions of each type vehicle just have Honda Vietnam.
There is also the warranty service, maintenance and spare parts.
•
Supporting service of Honda Viet Nam to enhance product value:
Nowaday, Honda Viet Nam had the HEAD network stores in the whole country. HEADs
allways attempt to bring hight quality producst for customers. HEAD network stores of
Honda Viet Nam was built in the whole country so that customers can easily to buy main
product of Honda Viet Nam
In this HEADs , Honda Viet Nam provided many services as " Mobile car service", "
Mobile Service" to serve customers.
•
Replacement Parts:
Honda Vietnam has set up service statio ns. Aiming to repair and provide genuine spare
parts for motorcycle products of company. As cars have any problems, Honda's consumers
is not only warranty, maintenance but also has genuine parts for replacement.
b. Price policy:
-One reason that makes Honda dominate the market is a pricing technique of the company.
-Prices is maximum suitable for their customers: popular product ( I0-20 million) , superior
products to satisfy demand of premium customers.
16
Group 7: Balance
Marketing plan - Honda Vietnam
-Honda's pricing strategy primarily focus on their target customer that is the middle class
of society.
Overprice com petition.
At the begining of the year 2002, To compete with motocycle which come from Chinese
massively and had cheap components, Honda Viet Nam launched quickly Wave Alpha 100
product which developed from Wave 110 of Asian Honda Motor Company in Thailand.
With this product, sales for Honda Viet Nam rapidly increased from 170.000 products in
200 l to 390.000 products in 2002. Therein, Wave Alpha accounting for 91% of total sales
of Honda Viet Nam. Co mponents were used in Wave Alpha products come from Thailand
by Asian Honda Motor ( accounting for 35.5% value of the products), from Chine (
accounting for 12.5% .value of the products with 27 components in 2002) fr om supplies
in VietNam ( accouting for 40%) and producing in Honda Viet Nam factories ( accounting
for 12%). The initial price of Wave Alpha was 10.098.000 VND ( about 730 USD), just
half the price of the same product of Honda Viet Nam in that time ( Future cost was 1,657
USD and Super Dream was 1,290 USD). With the low price and hightly appriciated, Wave
Alpha enter quickly into the low market. Low price was the fundamental factor which
created competitive advantage of Wave Alpha
The obiective o( price and pricing strategy in administration:
Since it had been in Vietnam, Honda introduced the new vehicles , improved tools and
models always leader in sales in Vietnam market. The success of Honda in market share
not only base on design and quanlity but also a part of set price skill to the best suit for
most of customers. From popular products which met the need to transport of customers
even hight quanlity products for wealthy customers who had hight demand.
Pricing strategy of Honda VietNam Company mainly foward to customers targe who in
middle class of society. Up to now, this is mainly customers force of company. However,
Honda do not stop here, they also had hight quantity products which imported foreign to
accost customers who in super class and willing to spending a large of money for sastisfying
their need.
c. Place policy:
The currently , model distribute of Honda Vietnam that :
17
Group 7: Balance
Marketing plan - Honda Vietnam
Company = > HEAD- > dealer - > customer
Expanding the distribution network by increasing the channel length :
Company - - > HEAD => dealer - - > retailer - - > customer
Honda has two kinds of major distribution channels:
•
Exclusive distribution: This is a product delivery method in which high-end product
lines suc h as SH motorcycles shall be distributed to a large distributor of Honda
management is usually in big cities like Hanoi and Ho Chi Minh city. These
products are not distributed to its retailers . And Honda is not large costly to control
the sale location.
•
Selective distribution : Honda will find many places to facilitate customers to easily
search for products by Honda but the ability to control this system become difficult
due to in remote dealer. For dealers like this Honda binding and commitments for
the distribution agent, to ensure the correct product is sold by Honda to price
regulation.
Honda sell directly through the dealer or HEAD of Honda, the number products are sold
depends on the dealer.
d. Promotion policy:
Before Honda put out a new product it had the aggressive advertising campaign on the
media such as televis ion, newspapers, websites ... The main objective of this policy is :
•
Inform potential customers of the company that now has a new product, introducing
new innovations and highlight s advantages in new product. And promotion for a
number of vehicles sold soon.
•
Honda introduced new products at the fair to attract target customers. It is also one
of the way to new products can quickly reach for the remote client agent distribution
Honda special emphasis on PR, image building and participating in social activities:
•
When Honda is doing these programs, most of the media for most motorcycle
products generally. For example , the program "I Love Vietnam" or "Be U with
Honda" with 12 personalities. Honda Vietnam to make for the most of the product
, the brand of your motorcycle. This will contribute to enhancing the marketing
18
Group 7: Balance
Marketing plan - Honda Vietnam
program at a larger scale than the budget dedicated to each product. It also is a
method of effective branding
Honda have promotions when purchasing products
•
When you bought motorcycle of Honda , you are awarded one helmet which is
production of Honda, and the periodic maintenance at the center of Honda for free.
When you purchase products of Honda in the HEAD , customers will have the
opportunity to receive attractive gifts like helmet, backpack ... and vote for the
program with code lucky winners to draw.
HEAD is one of the important marketing stratergy of Honda:
•
The HEAD of Honda has good infrastructure , spaciou s, comfo rtable, meet the
requirements 5S of Honda.
•
In the HEAD display products of Honda so customers can actually observe and learn
Products.
•
The staff of HEAD is quite friendly with customers, dedicated customer guidance
in using products, safe ly driving.
•
Honda held regular meetings with HEAD in each domain. The HEAD has a good
record received awards from Honda VN, is favored in this ordering should be
motivated to better sales HEAD.
VI. ACTION PROGRAM:
1. Advertisment:
Banner, poster on the street. - Public relations
In recent years, banner and poster of Honda had not appeared a lot on the streets. In the
next time, Honda will focus on this field by using more banner and poster to support for
big events of Honda in 64 cities especially big cities like: Ha Noi, Da Nang, Hai Phong,
Vinh, Hue, Ho Chi Minh because of numous amount of users in these cities. Aiming to
attract 20% clients' attention more.
For example, In Ha Noi Honda should locate banner and poster at the big streets like Kim
Ma, Pham Duy Hung, Cau Giay, Hoan Kie m areas or car station event hightway IA.
On televition and media. - Department Communications.
19
Group 7: Balance
Marketing plan - Honda Vietnam
In average , thousand of people watched TV everyday so that advertisment in televition is
the intelligent sollusion. An advertisment can get 1 - 2 billions views and it will be effective
if Honda have a impressive advertisments.
Honda will have at less two advertismenst in the gold time at 12:00 a.m and 7:00 p.m. Once
slot in the time for film.
In newpapers and magazine. - Public relations
Most of information about product and price product was updated in the website of Honda
but had less on the newpapers and magazines. Honda will often update information about
products' Honda, promotional events; price in newpapers and magazines in the next time.
Essentally, fashion magazines, life newpapers and magazines for technologie s. For
example like Magazine for Motocycle and car; Magazine for family; Magazine for life;
Magazines for rhythm of like.etc
Online. - Department Communications.
Websites is also the good channels to marketing especialy social network like facebook,
skype but it have not be fully utilized which attracted a large amount of teenager and other
ages. A part of social network channels, website is also a main medium to tranfer
information to customers.
Honda will continue to update fully infomation in the main website of company about new
product, sevices and promotions. In addition, link to the others website to post more bulletin
like webside for technologies, webside for family or website for society.etc.
2. Promotion - Sales and Marketing:
•
•
•
Super class:
Donating helmet with cost 300.000 VND when customer by one motocycle
product.
Providing information about tracfic safety throught newpapesr everyweek for free.
Offering a I0% discout on familier customers who have pointcards.
•
•
•
Midle class:
Donating helmet with cost 250.000 VND when customer by one motocycle product.
Goodwill policy for price with 10% discount for each product in action months.
Offering a 5% discount on familier customers who have pointcards. When they
purchase one product at Honda store, customer can get I points in loyalty cards.
•
•
•
•
Lower calss:
Donating helmet with cost 150.000 VND when customer by one motocycle product.
Goodwill policy for price with 10% discount for each product in action months.
Providing monthly payment service at low interest rate 0,2%
Donating preparing equipment ( d\lng C\J s t'ra chfra) with cost I00.000 VND for each
purchasing of product.
20
Group 7: Balance
Marketing plan - Honda Vietnam
3. Event:
Launching program and test product. Sales and Marketing
•
Organization Launching program and test product for SH 2015 with feature superior
car line at two big cities: Hanoi and Ho Chi Minh City.
•
Introduce Honda Brio LMPV in Ho Chi Minh City.
Ga meshow on TV - Public relations
Fo llowing the successful of gameshow 12 styles, be U - student 2013, I love Viet
Nam. In next years, Honda will continue to organize these gameshow.
Countdown 2014 - Sales and Marketing
Event was organized to gratitude to customer who have been loyalty customer
during 1 year consume Honda product. In this event, loyalty customers will be
honored because of their dedication with valuable gifts exceed 1 billions.
Supporting education - Public relations
•
Giving scholarship to stude nts who poor students but excellent at studying.
•
Go elementary school to teach about safe in traffic.
•
Charity:
Increase 10% in funding for flood relief operations in the middle of Vietnam -
Public relations
• Incre ase the funding for research and development products with environmental
features.- Research and Development.
The table below will show more clearly in the action programs:
Advertising
Nu
mbe
r
1
2
3
Promotion
Event
Activities
Banner, poster on
the street
On televition and
media
In newpaper s and
magazine
4
Online
1
2
3
1
Super class
Midle class
Lower calss
Launching
program and test
product
Responsibility
Timeline
Q
Q Q
1
2
3
Q
4
Public relations
X
X
X
Department
Communications.
Pub lic relations
X
X
X
X
X
X
X
X
Department
Commun ications
Sales and marketing
X
X
X
X
X
X
X
X
X
Sales and marketing
Budget
X
X
X
21
Group 7: Balance
Marketing plan - Honda Vietnam
2
3
4
5
Gameshow on
TV
Countdown 2014
Support ing
education
Charity.
Public relations
X
Sales and marketing
Public relations
X
X
X
X
X
X
Public relations
X
VII. Budgets:
Honda Vietnam has been trying to make a we ll-designed budget to keep Honda on target
and indicate when there is needed modification of the marketing plan, especially if
something goes really right or very wrong.
The follow ing tab le will show the necessary actions that are needed to achieve Honda goals
and the budget to finance all actions.
Quarter
Marketing expense
Quarter II
Quarter III
I
budget
(million
Total
Quarter IV
(million
(million
dollar)
dollar)
( million
dollar)
(million
dollar)
dollar)
Advertisement:
-
Banner
168.078
and
7.056
3.528
3.528
4.000
18.112
21.168
25.4016
18.934
19.000
82.504
7.056
4.235
2.823
3.012
17.124
25.997
8.666
8.666
7.009
50.338
porter
-
Television
and
media
-
Newspaper
and
magazme
-
Online
22
Group 7: Balance
Marketing plan - Honda Vietnam
Promotion:
101.721
-
Supper class
5.591
7.827
10.063
11.068
33.430
-
Middle class
8.386
11.740
10.063
11.064
44.607
-
Lower class
4.659
6.522
5.590
5.049
23.684
Event:
-
Launching
24.106
11.078
1.288
0.515
0.678
13.559
2.791
1.073
0.4294
0.500
4.794
0.515
0.386
0.392
0.400
1.688
0.455
0.455
0.606
0.546
2.062
0.376
0.676
0.507
0.500
2.003
Total marketing expense
95.128
71.798
62.117
62.826
291.869
Percent in overall
32.59%
24.6%
21.28%
21.53%
program and test
product
-
Game show on
TV
-
Countdown
-
Supporting
education
-
Charity
23
Group 7: Balance
Marketing plan - Honda Vietnam
VIII. Control:
Honda Vietnam plans tight control measures to closely monitor quality and customer­
service satisfaction. Honda is always aware of being on the right route or has arrived at its
destination. This will enable Honda Vietnam to react very quickly in correcting any
problems that may occur. Honda has its own standards of any activities then Honda will
compare actual progress against the standards regularly to find out whether there are any
problems or not. If there were error or problem needed to be regulated and corrected then
corrective actions will be taken. If corrective action is taken, Honda also has an
investigation to establish precisely why the differences occurred. Other early warning
signals that will be monitored for signs of deviation from the plan include monthly sale (by
segments and channel) and monthly expense. Given the market' s volatility, Honda Vietnam
is developing contingency plans to address fast-moving environmental changes such as
new technology and new competition.
24
Group 7: Balance