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Honda BRV Model Market Analysis
Honda BRV Model Market Analysis
Academic Utility
The following study is based on the analysis of market performance of Honda BR-V
model in comparison with Suzuki APV model in order to improve the performance and
effectiveness of Honda BRP-V model in the automobile industry of Pakistan. In this regard, one
of the major academic utilities of the present research is that it would provide great insight to the
researchers or readers that what are the factors that has played substantial role in the failure or
inefficiency of Honda BR-V model comparatively to its competitors. In addition to this, the
following research would also provide deeper understanding to the readers that how an effective
literature search can be used in writing a detailed and comprehensive review of literature on a
selected topic of research that is the launch of Honda new product after the inefficient
performance of Honda BR-V model in the market.
Practical Utility
Since, the following research intends to analyse the factors behind the inefficient sales
performance of Honda BR-V model in the automobile industry of Pakistan and how Honda can
improve the performance of BRV-model through applying effective strategic action plan. In this
regard, this research would be highly significant for Honda to analyse the factors or reasons that
make the Honda BR-V model less preferable by the customers and acquire great insight that how
the launch of Honda BR-V model could be improved in accordance with the market preferences
and customers’ demands. This is one of the major practical utilities of the present research study
that makes the research significant for the marketers to understand how an automobile company
can grasp the market share comparatively to its competitors.
Literature Review
Introduction to Honda BRV model in Automobile Industry of Pakistan
On 21st April 2017, Honda Atlas launched the new Honda BR-V model for its customers
in Pakistan. According to Tan (2017), Honda BR-V has principally designed to introduce multi-
purpose car (MPV) or seven seater car in the automobile market of Pakistan. Honda has launched
this model in three different variants, including BR-V i-VTEC auto, BR-V i-VTEC manual, and
BR-V i-VTEC S auto. The exterior design of the BRV model is based on subcompact SUV that
makes the vehicle very opulent while traveling on the road. The purpose behind the launch of
Honda BR-V model in Pakistan is to accommodate the increasing the demands and needs of
customers for an inexpensive SUV car that has sleek design and competency to load seven
passengers at a single trip. The launch of this model fascinates the large family due to its
spacious design that can load seven passengers at a time. In addition to this, Brooks (2015) stated
that the launch of Honda BR-V model particularly targeted the Asian automobile market for
satisfying the needs of customers for a luxury huge car in reasonable price. However, due to
some causes, this model has almost been failed in the automobile market of Pakistan that are
discussed in the head below.
Threat of Substitutes
From the perspective of automobile industry, the automobile business is very competitive
and hundreds of car brands are available in the market and all are trying to acquire high market
share. Thus, the threat of substitutes is high in the automobile market and also affects the market
performance of Honda BR-V model in Pakistan.
Suggestions for the Improvement of Honda BRV Seven Seater Model’s Performance
On the basis of market analysis and comparison of Honda BR-V model with Suzuki
APV, it could be suggested to Honda Atlas that they should launch premium and bigger Honda
BR-V model with less congestion in reasonable price. In addition, Honda BR-V targeting the
upper middle class family in order to increase their share and sales in the market and only this
customer segment can afford this car that can also affect the sales performance of Honda BR-V
model in Pakistan. In Pakistan, majority of the people are belonging to middle class thus; the
target of middle class segment would be beneficial for Honda BR-V in the automobile industry
of Pakistan. This can only be achieved through reasonable pricing of the all variants of Honda
BR-V model in Pakistan.
COMPARE SPECIFICATIONS:
SOHC 16 Valves
Valve Mechanism DOHC 16 Valves
iVTEC
Compression Ratio 9.5 10.3
No of Cylinders 4 4
Cylinder Configuration In Line In Line
Valves per Cylinder
4 4
(value)
Fuel Type Petrol Petrol
Fuel System Multi Point Injection EFI
Front: Macpherson Strut with
Front: McPherson Strut,
Front Suspension Coil Spring, Rear: 3 Link Rigid
Rear: Torsion Beam
Axle with Coil Springs
Compare Features:
CoolBox No No
DVD Player Yes Yes
Central Locking Yes No
Rear Seat No No
Entertainment
Climate Control No No
Rear AC Vents Yes No
Front Speakers Yes Yes
Rear Speakers Yes No
USB and Auxillary Yes Yes
Cable
Heated Seats No No
Steering Switches No No
Front Camera No No
Rear Camera No Yes
Arm Rest Yes No
Child Lock Yes Yes
Heater Yes Yes
Interior Lightning Yes Yes
Multi Info Yes Yes
Navigation No No
Optional Navigation No No
Verdict
Conclusive, it has been identified through review of literature that the launch of Honda
BR-V model in Pakistan was particularly determined to accommodate the increasing the
demands and needs of customers for an inexpensive SUV car that has sleek design and
competency to load seven passengers at a single trip. It has also been identified through Porter’s
Five Force analysis that threat of new entrants, threat of substitutes, bargaining power of buyers,
and competitive rivalry are high in the automobile industry of Pakistan and has affected the
market share and sales performance of Honda BR-V in a negative way. In has also been
determined that the sales figure of Honda BR-V model is quite low as compared to Suzuki APV,
this and did not provide high profitability to the company in terms of profit and reputation. It has
been determined that the one of the major reasons behind the inefficiency of Honda BR-V model
in Pakistan is that there is not safety for the passenger as there is no airbag for the passenger. In
midsize Honda BR-V SUV car, the airbag for driver is present which can save the driver’s life. It
could be asserted that the Honda BRP-V model has not provided dual airbag system in the car
that influence negatively on customers’ preferences towards this model. It has also been
identified that the height of Suzuki APV is 1865mm, while Honda BR-V has 1666 mm height.
The less height of BR-V model makes the car congested and makes the driving or travelling
experience uncomfortable for the customers as compared to Suzuki APV.
It has been determined that the factor of price has also made Honda BR-V less efficient in
the market as compared to Suzuki APV. Despite of manufacturing in Pakistan, the price of
Honda BR-V is quite high as compare to Suzuki APV. The price of Honda BR-V in Pakistan is
around 26 lacs, while the price of Suzuki APV is 24 lacs. This price difference influence
customers to prefer Suzuki APV than Honda BR-V model. It could be asserted that all these
factors has reduced the sales performance of Honda BR-V in Pakistan and makes the model
inefficient comparatively to its competitors. As regards to this, it could be suggested to Honda
Atlas that they should launch premium and bigger Honda BR-V model with less congestion in
reasonable price as most of the people in Pakistan majority of the people are belonging to middle
class thus; the target of middle class segment would be beneficial for Honda BR-V in the
automobile industry of Pakistan. This can only be possible by means of setting reasonable
pricing of the all variants of Honda BR-V model in Pakistan.
Theoretical or Conceptual Framework
The present research study determines to analyse the reasons behind the failure or
inefficiency of Honda BR-V model as compared to its competitors such as Suzuki APV model
and how these can be overcome through adopting effective strategic action plan. As regards to
this, the conceptual framework of the study is mentioned below that seem relevant to the present
research:
Research Methodology
Research Design
In relation to the identified research problem for the study, research design relevant to the
research subject will be used in order to address the research questions of the study (Creswell
and Creswell, 2017). In general, there are three types of research designs which the research can
use in order to attain objectives of the research study, including qualitative, quantitative, and
mixed method research design. Mitchell and Jolley (2012) stated that the quantitative research
design is usually applied in order to analyse the data that could be measurable and generalised in
further studies. Thoughts and feelings of participants are not incorporated in quantitative
research. On the other hand, qualitative research design involved in the collection of data on the
basis of personal feelings and perceptions of the participants (Maxwell, 2012). In qualitative
research, the data is usually collected through open-ended questionnaires and personal
interviews. Furthermore, mixed methodology is the third type of research design that
incorporates both quantitative and qualitative research design in a research study.
In this research study, the researcher is determined to adopt qualitative research design in
order to address the stated research questions of the study. The rationale behind the selection of
qualitative research design in this research study is that it provides the comprehensive and
detailed information to the researcher on the basis of perceptions and personal viewpoint of the
participants. This will allow researcher to understand the topic of investigation with great insight
and understanding of the factors that makes the Honda BR-V model less efficient in the
automobile industry of Pakistan.
Sampling Strategy
The selection of appropriate and suitable sample size from the large target population is
essential for the completion of research in a successful and effective way. The sampling process
involves the sample size selection from a larger set of target population (Robinson, 2014). On the
basis of certain sample size of the study, the researcher obtains authentic and valuable data in
order to address research questions of the study. Setia (2016) stated that the sampling strategy is
based on two types of sampling method such as probability and non-probability sampling
method. Probability sampling method allow researcher to select sample size through giving equal
chance to the participants being selected in the study. In contrast, non-probability sampling
method allow researcher to select sample size randomly. The types of probability sampling
include systematic sampling, random sampling, and cluster sampling. The types of non-
probability sampling include convenience sampling, purposive sampling, quota sampling, snow
ball sampling, and judgemental sampling.
In this research study, the researcher will use non-probability sampling method in order
to select sample size of the study. Among different types of non-probability sampling method,
judgemental sampling technique will be used in order to select sample size on the basis of their
professional knowledge and judgement.
Sample Size
The sample size set for this particular study will be 20 marketing managers and sales
persons of Honda Atlas that provide information regarding the market and sales performance of
Honda BR-V seven seater model in the automobile market of Pakistan.
Research Décor
Ethical Considerations
As stated by Gajjar (2013), ethical consideration is regarded as the code of conduct
required to be applied by the researcher to make the study effective. In addition, ethical
consideration plays essential role in making the research either unsuccessful or successful as the
ethics puts strong influence on the research study. While doing a research, it is important for the
researcher to ensure that there is no damage to the environment as well as harm to the research
participants. In the present research study, the researcher is intended to consider all the ethical
principles that are essential for the present research study. The research will ensure that the
information and data collected from the research participants will not be leaked to any third party
and will kept confidential all through the completion of the study. In addition to this, the
researcher will also ensure confidentiality and privacy of the research participants. The
researcher will ensure that the informed consent will be taken from each of the participants in
order to make them aware regarding the purpose and consequence of the research.
Language Constraints
Language constraints are regarded as the barriers for the research to understand the
language of the research participants. In this study, the research may face the limitation of
language and may find difficulty to analyse or understand the interview texts in foreign
language. Interview from market managers of Honda in different countries will be a relative
constraint for the researcher in order to produce a required research outcome. This language
constraint can be overcome through using translators for understanding the interview texts in
foreign language.
Analysis
Most of the marketing managers of Honda Atlas replied that the factors that influence
Pakistanis to buy luxury family cars are comfort, inexpensive price, high resale, etc. These
factors allow people to make comparison between different competitive car brands before
making purchasing decision towards a particular brand. In particular, 15 marketing managers
replied that the most of the population in Pakistan is middle class and they usually prefer to buy
big family cars in affordable price range. As regards to this, price is the main factor that
influences people to buy Suzuki APV model in comparison with Honda BRV model. Both of the
models have close resemblance to each other except price and comfort. It has been asserted by
most of the marketing managers of Honda Atlas that the factor of price has made Honda BR-V
less efficient in the market as compared to Suzuki APV. Despite of manufacturing in Pakistan,
the price of Honda BR-V is quite high as compare to Suzuki APV. The price of Honda BR-V in
Pakistan is around 26 lacs, while the price of Suzuki APV is 24 lacs. This price difference
influence customers to prefer Suzuki APV than Honda BR-V model.
It could be asserted that all these factors has reduced the sales performance of Honda
BR-V in Pakistan and makes the model inefficient comparatively to its competitors. It has
also been analysed that the Honda BR-V is an MUV for seven persons and has larger size and
weight than Suzuki APV. Suzuki APV also produces more horsepower as compared to BR-V
and has single AC rather than dual. These features assert that Honda BR-V model is an
underpowered car comparatively to Suzuki APV. Thus, customers prefer to buy Suzuki APV
model comparatively to Honda APV model in the Pakistan Automobile market. This reduce the
sales performance of Honda APV model and make this model ineffective or failed to some
extent as compared to other seven seater models in Pakistan.
Recommendations
Based on the competitive and market analysis of Honda BR-V model with Suzuki APV,
it has been analysed that the majority of the people in Pakistan are belonging to middle class.
Thus, it could be suggested to Honda that they should target middle class segment in order to
enhance the performance of Honda BR-V in the automobile industry of Pakistan and set
affordable price of Honda BRV model for this class segment. It could also be suggested to
Honda Atlas that they should launch premium and bigger Honda BR-V model with less
congestion in reasonable price. In addition, Honda BR-V targeting the upper middle class family
in order to increase their share and sales in the market and only this customer segment can afford
this car that can also affect the sales performance of Honda BR-V model in Pakistan. This can
only be achieved through reasonable pricing of the all variants of Honda BR-V model in
Pakistan.
References
Brooks, G. (2015). ANALYSIS: Honda’s Bold Runabout Vehicle (BR-V) - the Next Big Thing?
Retrieved from: https://www.just-auto.com/analysis/hondas-bold-runabout-vehicle-br-v-
the-next-big-thing_id162070.aspx
Cleary, M., Horsfall, J., & Hayter, M. (2014). Data collection and sampling in qualitative
research: does size matter?. Journal of advanced nursing, 70(3), 473-475.
Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed
methods approaches. Sage publications.
Gajjar, D. (2013). Ethical consideration in research. Education, 2(7).
Jefriansyah, F., Wahdiniwaty, R., Suryadi, K., & Aprilliani, D. S. (2018, November). Improving
Product Knowledge Through Personal Selling Activities. In International Conference on
Business, Economic, Social Science and Humanities (ICOBEST 2018). Atlantis Press.
Maxwell, J. A. (2012). Qualitative research design: An interactive approach (Vol. 41). Sage
publications.
Mitchell, M. L., & Jolley, J. M. (2012). Research design explained. Cengage Learning.
Munj, S. (2019). Honda BR-V Detailed Review – Specs & Photos. Retrieved from:
https://www.pakwheels.com/blog/honda-br-v-detailed-review-specs-photos/
Robinson, O. C. (2014). Sampling in interview-based qualitative research: A theoretical and
practical guide. Qualitative research in psychology, 11(1), 25-41.
Setia, M. S. (2016). Methodology series module 5: Sampling strategies. Indian journal of
dermatology, 61(5), 505.
Tan, D. (2017). DRIVEN: Honda BR-V 1.5L – seven seats, family first. Retrieved from:
https://paultan.org/2017/03/10/driven-honda-br-v-1-5l-seven-seats-family-first/
Team More (2017). Top 5 problems with new Honda BR-V launched in Pakistan. Retrieved
from: https://www.morenews.pk/top-5-problems-honda-br-v-pakistan/#
Team More| April 24, 2017| April 24, 2017
Terho, H., Haas, A., Eggert, A., & Ulaga, W. (2012). ‘It's almost like taking the sales out of
selling’—Towards a conceptualization of value-based selling in business
markets. Industrial Marketing Management, 41(1), 174-185.
Appendix
Interview Questions
What are the factors that influence people to buy automatic luxury car within the
automobile industry of Pakistan?
In your opinion what is the reason behind the ineffective performance or failure of Honda
BRV model in the automobile industry of Pakistan?
What are the major differences between Honda BRV model and Suzuki APV model?
Do you think the price influence people to buy Suzuki APV comparatively to Honda
BRV model?
What suggestions do you like to offer to Honda Atlas in order to increase the
performance of Honda BRV model in Pakistan Automobile Industry?