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Identify the key characteristics of Hondas products and discuss how

they were significant to the market?
Ans. Following are the key characteristics of the Honda's products:

Concept of Lightweight Vehicle- Honda used the marketing mix product

strategy upto its maximum level in a way that it created the product which
were the needs of the people at that very moment as there were no other
company manufacturing small bikes of 50cc.
This in turns fruitful to the Honda as it captured that segment which was
fully ignored by Harley Davidson who dominates the full-sized bike market
and it would have been tough to compete with Harley Davidson in that

Affordable Transportation- As the world was hit by World War 2, people

were looking for the cheaper means of transportation due to the lack of
resources at their disposal and bicycles were the preferred mode of
transportation, it focussed and satisfied that very need of people as it go
miles on a cup full of petrol.

College students targeted- Harley Davidson was busy in focussing Police

Department that they didn't focussed any other segment of society, Honda
focussed college students and also other segments of society as it was in
range of all.

Different Models and Colours were made available- The aim of the
Honda was to offer a model for every potential rider that is why they made
available three different models and six different colours as there were no
other manufacturers offering more than two colour or model choices.
Significance to the market:-

Boon for the market- There was no other manufacturer manufacturing

lightweight vehicles, Honda capitalise the need of the market by providing
lightweight vehicle at an affordable price which proves boon for the market.

Cheaper mode of transport- Harley Davidson and other bike

manufacturer offers their product which was not affordable for everyone,
Honda provides a cheaper mode of transportation.

More choices available in market-In the market there was only few
different models and colours for the bikes, Honda expanded models and
colours thereby offering more choices in the market.

2. How did Honda use pricing strategy and variables to establish itself in
the US market and to drive demand for its products?
Ans. Honda used price strategy and variables in a very good manner and drive the
demand of
its product in a following way:-

Honda used penetration price strategy, it is the strategy where the company
sets lower price of the products to capture the market share and once the
market share is captured the prices can be set high for different goods.

Honda firstly made lightweight bikes, when it captured the market share and
gained brand loyalty it suddenly started marketing full-sized bikes competing
with Harley Davidson.

Bike rental scheme was also initiated which gives a boost to industry.
3. Identify the promotional methods Honda used and discuss their
importance to Hondas marketing success?
Following promotional methods Honda used:-

Honda Commissioned Grey Advertising to handle its US promotions.

It also gave ads in the local newspapers featuring lines 'Holidays and Honda
Days' and Go happy go Honda', it was in direct contrast to the traditional image
of motorcyclist as a leather-jacketed hoodlum.

'You meet the nicest people on a Honda' theme was also promoted by which
social acceptance was achieved.

Honda's dealership strategy also complemented its overall advertising strategy.

Importance of promotional methods are:-

It changed the image of the bikers as a lawlessly breaking hoodlum into a

people who Own Honda bikes were considered to be smart and sophisticated.

It also helped in accentuate a person's individuality.

Previously motorcycle dealership was identified as being dirty and noisy and
was also located in the seedier outskirts of cities and town, but now as
dealership strategy complemented its advertising strategy and advertisement
was done in detail so dealership centres was located in the city centres.
It was all because of promotional methods that turnover in 1965 exceeded $40
4. Identify Hondas product placement and channels of distribution
strategy and discuss their significance in relation to Hondas
marketing success?

Product placement is the promotional methods used by the companies to

familiarise their product to the customers. It is basically the inclusion of a brand
name product in advertisements, newspapers etc.
Honda used following product placement strategies:-

Advertisements- Heavy advertisement was made in early 1960 featuring lines

'Holidays and Honda days' and 'Go happy go Honda'.

All ads featured nice acceptable people from all walks of life.

Verbal Dimension-Promotional theme 'you meet the nicest people on a Honda'

created the prestigious image in the minds of the people. This theme was
heavily promoted.
Distribution channel is used by the companies to make good available to the
customers for the use. It is of great efficiency as it matches the supply and
demand equation in the market.

Honda used one intermediary in the form of dealers operating the dealership
store in the cities to provide the goods to the customers.
Following are the importance of product placement and channels of distribution
strategy to the market:-

Exposure to the product placed in advertisement can not be avoided by the


Product placement increase the implicit memory and customers become more
accessible to the product and starts liking the brand.

Distribution channels are important as intermediary provide better service at

low cost.

Intermediary creates the demand for the product by playing active role in
increasing the sales of product and thus create more attraction for the product.
5. Identify Hondas potential customer base and the key pressure
points for success faced by Honda?
Four factors play an important role in identifying the customer base for the
company that are location, concept, demographics and marketing. Therefore
these four factors must be kept in mind while identifying the customer, so
the customer base for Honda products are the college going students as the
price of the product is low, convenient to use, marketing attracted the
students to buy product, most importantly it provides the problem for the
campus parking. So they will be the one who will buy the product repeatedly
of the company.
Key pressure points for the success faced by Honda:-

Desire- Soichiro Honda was having a burning to achieve the social

acceptance for the Honda bikes and he did it with proper promotion. Thus it is
the key pressure point for the success.

Faith- Honda was having faith in it products and marketing activity and along
with that it was faith in the quality of the product.

Plan- Planning is deciding in advance what to do and how to do. Honda studies
the market well and formulates its plan according to that. Well execution of plan
is also a key to success.

Persistence- It was one of the main point which lead Honda to the success as
despite slow start they did not loose faith and carried on their activities
according to plan and captured wide market share. The kept this thing in mind
that success only comes after the failure.
6. What was the effect of the components of Hondas marketing mix
strategies on each other and how was this important to their
customer base?
A company's strategy is implemented through it marketing mix and it must
satisfy the needs of the people. Marketing mix strategy can prove boon or
bane to the company. All the elements of marketing mix are influenced by
each other and if the change in one is made than it must be seen that the
change in other is required or not.
Components of Honda's marketing mix are effected by each other:-

Honda launched which was he need of the people at that very time as there
were no other manufacture manufacturing lightweight vehicle, Honda launched
that and its product strategy was well supported by lower price, influencing
promotional activities and convenient place to buy the product. Thus product
strategy was effected by other components which proves successful.

Price is the value that the customer will pay for the product. Honda started
promotional activity like rental scheme to increase its sale or to lure customers,
so the price should always be decided keeping in view the other elements of the
marketing mix like product, promotion etc. Price can not be too low which will
make good inferior.

Promotion- Pricing and promotional activities go hand in hand. Higher the

promotion higher will be the price and lower the promotion lower will be the
price. Honda promoted good highly but they did not increase the price of the
product proportionately as their aim was to capture market share.

Place- Honda decided the place of the product keeping in view the promotional
activity, target market, convenience to customers, so not only the three
components but also other variables play crucial role in determining the place.
Honda kept each and every variable in mind and located dealerships store
inside the cities.
Components are important for the customer base and thus if the marketing mix
strateguy is implemented properly good customer base will be formed.

Customer satisfaction- Components of marketing mix are fully aimed at

satisfying the customers, they will purchase the goods frequently.

Honda's product was having right feature, its quality was upto the mark and
also was the demand of people at that time.

Pricing of the goods was also right, Honda's products were priced far less than
that of the competitors.

The place was also convenient to the customers as it was easily accessible and
goods were made available on time.

Promotional activities created a better image in the minds of the customers. For
product to be successful target group needs to be made aware about the
product through promotion which was well done by Honda. Ads featured nice
lines, promotional themes created a brand image in the minds of the customers.