ADVERTISING CAMPAIGN – HONDA CRV

ADVERTISEMENT AND COMMUNICATION MANAGEMENT

(ASSIGNMENT 03)

ADVERTISING

OF

HONDA CRV CAMPAIGN

I N T E R N AT I O N A L M A N A G E M E N T I N S T I T U T E , N E W D E L H I

E X E C U T I V E P O S T G R A D U AT E D I P L O M A I N M A N A G E M E N T

Submitted By: S u b m i t t e d To :

GROUP 6 P R O F. M . M . A n a n d

Modak Priy Singh (08XPGDM31)

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ACKNOLEDGEMENT

We are grateful to Prof M.M. Anand for his constant guidance and

encouragement throughout the Advertising and Communications

Management course. We are indebted to him for the thorough understanding

of the advertising function and its various facets and dynamics.

The New 2009 Honda CRV Advertising Campaign

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The Honda Brand

Honda Siel Cars India Ltd., (HSCI) was

incorporated in December 1995 as a
joint venture between Honda Motor
Co. Ltd., Japan and Siel Limited, a
Siddharth Shriram Group company,
with a commitment to providing
Honda’s latest passenger car models
and technologies, to the Indian
customers.

The Honda City, its first offering introduced in 1997, revolutionized the Indian
passenger car market and has ever since been recognized as an engineering
marvel in the Indian automobile industry. The success of City as well as all its
other models has led HSCI to become the leading premium car manufacturer
in India.
The total investment made by the company in India till date is Rs. 1620
crores. The company has a capacity of manufacturing 100,000 cars.

The All-New 2009 Honda

CRV

The all-new 2009 Honda CRV

is the Honda brand's newest
crossover vehicle, offering a
unique combination of
versatility and flexibility in a
sporty, sexy package. The
all-new vehicle takes the capability of a sport-utility vehicle (SUV) and the

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overall efficiency of a passenger car and blends all the best attributes of
each into an all-new "right-sized" crossover for the Honda brand. Clever,
flexible seating and storage combinations include standard five-passenger
seating with spacious cargo room and available third-row seating for carrying
up to seven passengers. Spacious storage bins, hidden in the floor and
available under the front passenger seat cushion, combined with the
standard Chill Zone for beverage storage, make Honda CRV incredibly
flexible and functional.

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COMPETITIVE ANALYSIS:

In formulating business strategy, managers must consider the strategies of the firm's competitors.
While in highly fragmented commodity industries the moves of any single competitor may be
less important, in concentrated industries competitive analysis becomes a vital part of strategic
planning.

Competitor analysis has two primary activities,

1) obtaining information about important competitors, and

2) using that information to predict competitor behavior. The goal of competitive analysis is to
understand:

• with which competitors to compete,

• competitors' strategies and planned actions,
• how competitors might react to a firm's actions,
• how to influence competitor behavior to the firm's own advantage.

Casual knowledge about competitors usually is insufficient in competitor analysis. Rather,

competitors should be analyzed systematically, using organized competitor intelligence-
gathering to compile a wide array of information so that well informed strategy decisions can be
made.

Competitor Analysis Framework

Michael Porter presented a framework for analyzing competitors. This framework is based on the
following four key aspects of a competitor:

• Competitor's objectives
• Competitor's assumptions
• Competitor's strategy
• Competitor's capabilities

Objectives and assumptions are what drive the competitor, and strategy and capabilities are what
the competitor is doing or is capable of doing. These components can be depicted as shown in the
following diagram:

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Competitor Analysis Components

CONSUMER INSIGHT: User Reviews

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Attitude toward the service provider: affective response and

behavioral intention

Consumers’ affective response

Most published services research (e.g. McDougall and Levesque, 2000) has
examined customer satisfaction as an outcome of service quality dimensions.
While various measures of satisfaction have been used, few studies have
focused on consumers’ affective response to the passenger car. In particular,
the affective or feeling component of attitude as an influence on behavioral
intention is compelling.

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The relationship between customer satisfaction and future intentions has

also been established. However, limited empirical evidence appears to exist
concerning the relationship between overall affective perceptions of the
service provider and future purchase intentions.

Behavioural intention is an important consequence of product/service quality

since after a service encounter, potential customers (both first time and
repeat) may be influenced by product and services advertising. In this
context, knowledge of the impact core versus pre-core service encounter
elements has on current consumers’ attitude toward the service provider and
their future purchase intentions would enhance the likelihood of creating
effective advertising. Clow et al. (1996) noted that service providers should
create realistic service encounter expectations by reinforcing via advertising
the most critical service quality variables. Crucial to the success of such a
strategy is the proper identification of which service quality variables are
critical.

VISIT TO WEBSITES & DISCUSSION WITH CLIENTS/AGENCY:

Clients who use their own password-protected Web sites to glean insights
about their brands find them most useful when developing marketing
concepts, according to a new survey that will be released this week.

The sites, which have been used by marketers as diverse as Procter &
Gamble, Coca-Cola, Staples, Hallmark, Kraft and Chrysler, use
questionnaires, polls and live chats to get real-time feedback and advice
from consumers on everything from new product designs to the look and
tone of advertising. The consumers are handpicked and rewarded with
insider perks, such as a chance to participate in a carmaker's driving event.

When asked which client departments benefit most from the sites, survey

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respondents ranked marketing at the top of the list (96 percent),

followed by market research (71 percent), product development (67
percent), public relations (29 percent), sales (21 percent) and
human resources (8 percent).

Respondents also see the sites as catalysts for change. Fifty-four percent
said using them "changed how we think about collaboration," 46
percent that they "changed how we think about customers" and 33
percent said they both "changed a product design" and "changed
our marketing strategy."

Seattle-based Sector Intelligence conducted the survey for Passenger, a Los

Angeles shop that creates private Web sites for clients. Sector polled 25
executives at 16 brands in late 2008 and early 2009 to gain a sharper, more
detailed understanding of how they use the sites.

Some clients see sites as an alternative to traditional focus group research

and ad-hoc surveys. Forty-three percent said that using this method of
consumer feedback reduced the number of focus groups they conducted in
the past year and 36 percent said the practice cut down on the number of
surveys they needed.

The New Honda CRV Campaign

The campaign, which will introduce the new theme line "If you can
dream it, do it," focuses on the Honda CRV's unique combination of
innovative features, versatility and flexibility all available at a great value
that can help turn dreams into reality.

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The campaign ties consumers to the new Honda CRV emotionally by helping
them realize their dreams, then drives them to action, Wherever potential
owners go -- online, in print, on television, at events -- we will show them
how the CRV can help them live a bigger life with a focus on the class
exclusive features and the best value in the segment."

With nearly one third of the media mix (29 percent) for CRV dedicated to
interactive, Honda will find and connect directly with shoppers through online
activity by delivering targeted messages to the CRV's two primary audiences
-- "young couples" and "empty nesters."

The interactive programs will include homepage takeovers of AOL, Yahoo!

and MSN, with behavioral targeting on various car shows. The Honda CRV will
also be visible on travel, wellness, finance, sports and entertainment Web
sites.

In another effort to give hands-on exposure to the brand, the Honda brand
will also embark on a mobile marketing tour. The Honda Grab Life Tour will

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travel to events across the country, including races. 2009 CRV will be the
first feature vehicle in this interactive tour that includes lifestyle activities
such as an Internet Cafe, gaming stations, a brand/launch vehicle trivia game
and eShots photos. There will also be a test track that will provide
participants with real world driving situations, highlighting the product
benefits of the full Honda product line.

Honda will also launch a

unique promotion in
partnership with Time
Inc., called "Honda CRV
of a Lifetime."
Consumers will be
invited to register for
"can't buy it"
experiences that will
take four lucky winners
on a compelling CRV tied to travel, well-being (spa or active/outdoor),
entertainment/celebrity or sports. Consumers will be directed to
www.HondaCRVofalifetime.com to enter for the chance to win. The site will
feature four 15- and 30-second promotional spots which will provide details
for each of the trips so consumers can choose the CRV they would most like
to experience.

Communication Objective: Honda's goal is to attract the attention of

consumers interested in a versatile crossover utility vehicle that are often
young, active people who may be single or just starting families. The
communication objective of this advertisement would be to create glory and
a sense of pride in the consumers mind set once the consumer decides to
buy CRV. The campaign would also try to show off the consumers desire to

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buy a product that is different from any other product in the market and is
meant only for him.

Target Audience:

A key issue for any passenger car maker is the identification of those
features/service elements that are most important to the target market.
Given the hefty sums spent on media space and time, effective advertising
message strategy is critical. According to the elaboration likelihood model
(Petty et al., 1993), persuasion via advertising may occur through central or
peripheral routes depending on the consumer’s level of brand involvement.
Highly involved consumers deliberately examine and process message cues
that are “central” to a logical evaluation of the brand. Alternatively, less
involved consumers attend to limited information and pictorial associations
that evoke key brand attributes, but in a “peripheral” way. In practice,
peripheral tactics include minimal body copy (or voice over) with any
combination of the following cues: a celebrity endorser, aesthetically
pleasing scenic imagery, popular music, cute babies, cute pets, or attractive
couples (individuals). In passenger rail transportation, peripheral methods of
advertising may be indicated assuming consumers’ involvement is lower due
to constrained choice (having only a single passenger rail brand from which
to choose).

One more essential aspect is that to the extent brand-building is important in

advertising, emotional rather than rational advertising executions should
prevail. Consumers choosing passenger cars transportation (over substitute
forms of transportation) are not constrained by a single brand from which to
choose. Thus, the glamorized, even romanticized depictions of cars’ travel
may entice first-timers, particularly the leisure traveler, to try the CRV.

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The target audience for this campaign would be consumers who are looking
for high class luxury vehicles ,who are early adapters and looking for
differentiating products. This campaign would generate a sense of pride
among buyers.

MEDIA PLAN

Television Campaign

Online activities, events and promotional partnerships will be complemented

by television advertising that takes the viewer on an adventure that only the
Honda CRV can make happen. Building on the theme "If you can dream it, do
it," the Honda CRV television commercials will debut on with two general
market television ads and two multicultural spots.

In the "Water Slide," a Honda CRV pulls up in an urban setting on a

sweltering hot day. From the CRV's flexible interior space and unique storage
compartments, pieces are unloaded that when put together build the world's
largest water slide. Professional people -- lawyers, stock brokers, etc. -- come
out to see what all the commotion is about.

"CRV Animates" is an ad that puts a real CRV in an animated scene with a

highly stylized background. As the vehicle drives through the spot, an
animated family uses various features of the vehicle like the Flip 'n Stow(TM)
in-seat storage, the third row seat and the rear seat DVD. The ad closes with
a value message.

Another ad, opens on a man, dressed casually, walking up to his new

Honda CRV parked in front of his modest apartment. As he gets in, the
viewer sees the CRV's interior space and features like Flip 'n Stow in-seat
storage. As he drives through his neighborhood, the viewer sees the middle

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part of the frame lift up and doors appear, closing like an elevator until the
next scene. The viewer then sees the same driver dressed a bit more
professionally, leaving his nicer downtown condo. As before, the middle part
of the frame lifts up and doors appear, again closing like an elevator. In the
next scene, the man is driving through a more suburban neighborhood where
he pulls up in front of his house. The voiceover says, "The higher you go, the
sweeter the CRV. Introducing the new CRV that's ready for anything."

Another Ad opens on a woman parking her new Honda CRV when she
sees an attractive man and his dog. The woman knows the man won't go
anywhere without his dog, but the dog is digging holes in the ground. The
woman is deciding between the man or her new car, finally deciding to pick
up the man and his dog. The dog is excited to get in the car and ready to dig,
but discovers the in-floor storage bins, so he calms down and watches a
movie playing on the DVD system. The man says, "I think my dog likes you."
The woman thinks to herself, "It's all about the car." The announcer closes
the spot with, "Introducing the all-new 2009 Honda CRV. If you can dream it,
do it."

Television advertisement would focus on channels that are viewed by

business class people. The advertisement would be telecasted at late
evening so as to attract the target audience. Clips of the advertisement
would be circulated at Hotels, Airports where the target audience sees the
add.

Print Ads

The first is a series of single page ads called "Acronym," which can be
tailored with a message that will resonate with a publication's readers,
allowing for maximum flexibility. For example, the headline in one ad will
say, "Comes with More RHM*," meaning "Rotating Heads Per Minute."

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The second print execution, consisting of a two-page spread and a single

page ad, focuses on the interior space and flexibility of the new CRV by
comparing it to the floor plan of a house. The headline reads, "The All-New
CRV. Move Right In."

The print adds would mainly focus on magazines and other materials that are
related to business class people where the target audience surfs. The
advertisement would generate beautiful pictures of the product to attract
consumers who are looking for high class and luxury vehicles.

Print add magazines selected would be those that are circulated in high class
hotels, pubs, airports etc .

Experiential Opportunities

In addition to the Grab Life Tour, Honda will also launch a guerilla marketing
campaign by taking a fleet of CRV’s to the places where people live, work
and play in cities, raising awareness, facilitating interaction with the vehicle
and gathering potential hand raiser information.

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Outdoor Advertisement:

The outdoor advertisement would focus on displays near malls, shopping

omplex, airports, etc so as to attract the target audience. Displays would also
be done at places like golf clubs, etc where high class gentry regularly visits.
Main purpose of the outdoor advertisement would be to create a sense of
pride among buyers and show them the essence of Honda brand.

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