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Thúy Hằng - International Marketing Research
Thúy Hằng - International Marketing Research
HỒ CHÍ MINH
INTERNATIONAL MARKETING
HONDA SH RESEARCH
1. Company.........................................................................................................
2. Market............................................................................................................
3. Consumer........................................................................................................
II. ANSWER QUESTIONS
Question 1...................................................................................................................
Question 2...................................................................................................................
Question 3...................................................................................................................
Question 4.................................................................................................................
III. SUGGESTION..................................................................................................
IV. REFERENCE.....................................................................................................
V. PERSONAL INFORMATION...........................................................................
VI. PLAGIARISM RESULT...................................................................................
I. HONDA INTRODUCTION
1. Company
Honda Vietnam is a joint venture between Honda Motor Company (Japan), Asian
Honda Motor Company (Thailand) and Vietnam Engine and Agricultural
Machinery Corporation was founded in 1996. Main products include motorcycles
and cars. After more than 20 years in Vietnam, Honda Vietnam has continuously
grown and become one of the leading companies in the field of motorcycle
manufacturing and prestigious car manufacturers in the Vietnamese market.
HONDA - strong and unique, the font is designed in red capital letters to show
creativity and strength.
Looking at this logo, everyone knows this is the logo of Honda Vietnam. This
familiar bird wing logo has left a deep impression on the minds of Vietnamese
people. Slogan: "The Power Of Dream". Everyone has a dream, an active goal that
makes our lives deeper and more meaningful. When we pursue dreams, we feel
powerful. With Honda, the company has used the slogan "The Power Of Dream"
to express the criteria that the company wants to bring to consumers a safer and
happier life. This slogan is like a message that Honda wants to send to all
customers: "To become a company that is expected by society, doing its best for
the development of the country and people of Vietnam".
Up to now, Honda has been present in 33 countries with more than 129 facilities
and the ability to supply 20 million vehicles including cars and motorcycles to the
market. As for the motorcycle segment, Honda is leading the world.
Currently, the business activities of this group include not only cars, motorcycles
but also motors, electrical equipment, robots, aircraft, and solar cells.
2. Market
Honda products are famous for being durable and of super good quality, hitting the
Vietnamese people's mentality. Some products that can be mentioned such as:
Dream, Wave, Lead, Spacy, SH, AirBlade ... have a very large number of users
and are preferred and used by a large number of customers.
Price policies and products are suitable for consumers with medium to high
income, reasonable distribution, promotion policies hit the Vietnamese psychology
with the slogan "I love Vietnam".
II. ANSWER QUESTIONS
Question 1: Based on the elements of macro environment, what do you think that
Honda has advantage when it comes to doing business in Vietnam?
About the demographic, with the proportion of population aged 15-35 accounting
for nearly 60%, showing that Vietnam market is a young, dynamic market that
catches up with the fast trend with new products. Towards this audience, Honda
has designed motorcycles that exhibit dynamism and personality suitable for
young people. Especially the autobikes with eye-catching designs, youthful colors,
speed and powerful engines always attract a large number of young customers
such as Winner, SH Mode, Click, Vario, Air Blade, ...
About economic, after three decades of reform, Vietnam has become the 22nd
largest export economy in the world. Vietnam ranks 6th in terms of economic size
in ASEAN. The average income of the people is at a relative level.
GDP per capita is estimated at 2,750 USD, an increase of nearly 35.6 USD
compared to 2019, lower than the growth rate of 2019 (an increase of 144 USD)
due to the negative influence of Covid 19. the gap between labor groups has been
deepened, especially in big cities. In Hanoi, the difference between the person with
the highest salary with the average salary is 42 times. In Ho Chi Minh City, the
difference is up to 109 times. Since the rich-poor gap is so great, products that
want to attract more customers must pay special attention to the price level. Honda
Vietnam has researched the market very carefully, precisely because of this
important demographic feature, Honda has launched products with different prices
for each market segment. High-end motorcycle products such as SH have a selling
price of more than 100 million VND for high-income people, Wave models with
prices ranging from 10-20 million VND for those who have low income and use
motorbike mainly for their work. Mid-range products such as Future, Air Blade,
Vario, ... are for people with average income.
For 3 consecutive years, Vietnam has controlled inflation below 4%. In 2017,
inflation was 3.53%, in 2018 it was 3.54%, and in 2019 it decreased to 2.47%. The
value for money is stable, people's income is also higher, which makes it more
convenient for people to buy. Previously, in the years 2007 and 2008, the price of
gasoline had increased fluctuations, Honda had researched to improve the quality
of products to help customers save gasoline with the electronic fuel injection
mechanism PGM-FI (Programmed Fuel Injection System).
At that time, like many other developing countries, nearly 74 million Vietnamese
people chose motorbikes as the main means of transportation. A market with such
a large population has a great potential.
The fact has proven that Vietnam has quickly become the top consumer of
motorbikes in the world. In addition, the low transport costs as well as the
Japanese automaker's experience in similar markets (such as Thailand) help them
to quickly access the market.
Currently, the economy is on the rise, motorcycles have become the most popular
and popular means of transportation in Vietnam. Because of the convenience of
motorcycles, it is also suitable for the road conditions in our country. Besides
serving travel needs, motorcycles also show the personality, class, ... of
motorcycle users.
Question 2: According to your point of view, what is the marketing strategy that
Brand A has been doing in Vietnam? Please collect information to demonstrate
your answer.
1. Market analysis
a. Market segmentation
Honda does not launch products that focus on a certain market segment. They
research and manufacture products for different market segments. Honda Vietnam
classifies market segments based on factors such as gender, income, social class,
and lifestyle. Honda motorcycle market segments:
- Segment of customers with low income but need transportation and often live in
rural areas. For them, a motorbike is a means of daily life and work in a price
range of 6-10 million VND. These products are of low quality and low safety.
- Segment customers with new jobs or financial autonomy, they buy motorcycles
for the purpose of not only a means of transportation but also an asset that
expresses their personality. The watch machines in this segment with the price of
10-20 million VND are more durable and safer.
- High-income middle-class customers, or young clients looking for their own
style. The price range is between 20 and 50 million VND including some
motorbikes and scooters. In this segment, the customer is willing to spend a much
higher amount on a personal vehicle. Scooters in this segment are high-end,
elegant scooters and partly represent their social class and lifestyle. Price is more
than 50 million VND.
b. Positioning
- Honda is positioned as a product with good durability, high safety and suitable
for traffic conditions in Vietnam.
- Appeared in Vietnam quite early, Honda is one of the pioneer enterprises in the
motorcycle field. Honda has become very familiar with the Vietnamese people.
2. Honda’s marketing mix strategy (4Ps analysis)
a. Product
With a brand from Japan - a country with the most developed technology, its
products meet the requirements of Vietnamese consumers. Honda is very smart
when it understands the insight "Make sure to wear durable", so it has created
strategies that hit that mentality.
Honda motorbikes are of high quality and have a long shelf life. Compared with a
series of competitors such as Yamaha, Suzuki, SYM, Piaggio, ... the quality of
Honda is highly appreciated, but the usage time can be up to more than ten years.
Honda products hit on that element of what Vietnamese people want to stick with,
so this marketing strategy has actually conquered 70% of Vietnamese consumers
and helps Honda gain overwhelming market share compared to other competitors.
Product diversification
Sales promotion
In addition to the media on media and advertising panels, promotions are also a
strong point of Honda when continuously offering promotions at preferential
prices. These are probably the most successful promotions of Honda. Normally in
these campaigns, when buying a Honda motorbike as a Dream, you are given a
Honda helmet, subsidized for registration of vehicle documents, and possibly
maintenance. periodically at Honda centers without having to pay. Mobile service
programs to other provinces demonstrate the airline's level of interest in
customers, and in each saint, activities such as Honda's BeU often have
promotions to enhance services. This strategy is very popular with customers and
it creates positive feedback from the public.
Public relations
- The slogan of Honda Vietnam is "I love Vietnam". Honda has been attached to
the Vietnamese for many years, from 60, 70, 80 motorbikes to today's modern
models.
=> All of these elements of the combined and interplaying marketing strategy
contribute to the success of the brand.
a. Designing
SH125 / 150i - European design masterpiece is blowing a new wind with the
addition of a masculine matte black version exclusive to the 150 cc version. The
matte black on the bodywork, the prominent red logo, the change in color of the
details provide a strong, generous and classy overall image. Other versions still
retain class and elegance with sophisticated and trendy color combinations.
- Driving position: The new SH has re-arranged the fuel tank located on the
floor of the car, increasing the wheel axle distance and steering angle compared
to the old version, helping the driver with full confidence when he can fully
master the car.
- Front lights and front fascia design: The front lights are equipped with
modern and high-end LED technology, harmoniously combined with the
balanced front-end design to create a unique feature of the SH series. In
addition, the new SH headlight system has an automatic light-on feature, which
enhances the vehicle's visibility when traveling on the street, both during the
day and at night.
- Smart watch cluster: The newly designed watch, with a large tachometer
located in the center, has a simple design for the driver to easily see the
parameters immediately. At the same time, the speedometer is designed
separately from the display of parameters, bringing a unique and modern
feature to the overall central clock cluster.
b. Engine – Technology
The new eSP + engine helps the car to operate exceptionally strongly, save fuel
and be environmentally friendly.
The ABS brake system equipped on both wheels allows the driver to be confident
in all situations such as quick braking when the road is slippery or it rains.
To bring a classy experience like sitting in a car, Honda Vietnam for the first time
integrates technology connected to a smartphone on the SH 150i model, helping
the driver receive notification calls, messages on the clock. Moreover, thanks to
this technology, customers can also access and read all vehicle information
through My Honda +, the vehicle management and maintenance support
application developed by Honda Vietnam.
With the smart key equipment, the SH will have better anti-theft capabilities
thanks to encryption and information security. In addition, counterfeiting the keys
will also make it difficult for bad guys because they do not have the vehicle ID.
2. Positioning
Honda SH products are intended for high-income classes such as CEOs, chief
representatives, department heads, business officers, ... who are working in foreign
invested companies and joint ventures. business, companies operating in the fields
of finance, banking, securities, doctors in some hospitals, clinics, entrepreneurs, ...
SH Honda is not only a means of transportation but also shows the owner's class
and personality with luxurious design and outstanding features.
3. Product Development
Honda SH 2020 version 150i is designed and equipped with a number of modern
technologies to increase the level of customer satisfaction as well as to compete
with competitors in the market.
For versions with ABS Honda system also adds the HSTC traction control system,
which is a system that helps prevent wheel slip when accelerating by adjusting the
power from the engine to the rear wheel. Honda SH 2020 is the first model
equipped with the HSTC system, this system has been equipped by Honda for
large displacement cars and high-end scooter models SH 300i. Thus, with a series
of improvements compared to the previous version, the SH 2020 deserves to be
one of the most advanced models of Honda in Vietnam.
Honda recently launched the My Honda + app for both iOS and Android, with
Honda SH customers not only having this app, but also being able to connect to
their phones. Two devices can connect to each other to check the vehicle's
condition at any time. Receive notification calls, messages on the watch face.
Thereby, My Honda + can give appropriate advice as well as periodic oil changes
to always keep the car in the best condition. The My Honda + application is also
integrated with additional intelligent functions such as electronic warranty,
maintenance and repair history tracking, reminder maintenance schedule, updating
product and service information from Honda Vietnam...
Successful introduction of new products to the market does not guarantee the long-
term capabilities of Honda Vietnam. Therefore, there must be adjustments in the
marketing strategy by changing market conditions (competition, market demand,
product adaptability to demand).
Honda SH 150i is in the product growth stage because this product is very popular
in Vietnamese and is selling well in Honda stores. During this period, increasing
consumer demand led to an increase in production and expansion in its
availability.
Another international market that Honda has been growing rapidly in recent years
is Indonesia. This is a potential market for Honda in the coming years. Indonesia is
the world's third largest two wheeler market after India and China. It has
continuously grown at a double digit rate from past few years and is expected to
grow at the rate of 15% for next few years.
- The Indonesian motorcycle industry has ranked third in the world for almost
twenty years, representing the main private transport sector for people and goods
and is 6 times larger in size than the automobile industry. The market hit a record
at the end of the last decade, the first and only single time reaching 8 million units
sold in a calendar year.
- Indonesia is where Honda has its factory, so the price is cheaper than Vietnam.
The market is dominated by Japanese brands with Honda accounting for 73% of
the market share (in 2018) and Yamaha at 21%.
- The government has just set two targets for 2025, to manufacture 10 million
units and export one million units.
Weaknesses:
- Signs from the manufacturing sector are falling: PMI is in custom territory
for the fifth consecutive month in November due to lower new orders and
production. This happened after the external sector boosted the economy in the
third quarter, compensating for softer domestic dynamics.
- In recent years, a number of new brands have entered the country from
India, Europe and the US and more than 30 brands are imported domestically
with increasing sales.
- Imported motorbikes come from all continents with more than 50 domestic
distribution brands.
Strengths:
- Despite the negative impact of the Covid-19 epidemic and the saturation of
the motorcycle market demand, the sales of the motorcycle market are still
very active in Vietnam. According to the Vietnam Association of Motorcycle
Manufacturers, sales of 5 member enterprises (Honda, Yamaha, Suzuki, SYM
and Piaggio Vietnam) in the third quarter of 2020 reached 677,739 units, down
18.5 % over the same period in 2019. Including the first three quarters of 2020,
the total sales of 5 enterprises reached 1,927,736 vehicles, down 17.5% (about
400,000 cars) compared to the first 3 quarters of 2019 , the scooter segment
still has brighter colors. Many new scooter models launched with modern and
colorful technologies have made the market less gloomy. Many recently
launched scooter models such as Honda SH Mode, SH 125i, SH 150i often
have a variety of colors and rich, fancy combinations for customers to choose
accordingly. In addition, there are many different versions, models, ... to meet
the diverse needs of many customers. However, current sales are not as high as
before, so businesses have to create motorcycles that are more and more
attractive in the eyes of Vietnamese consumers, bringing interesting
experiences. Only then will the motorcycle always move forward and not be
outdated. Next time, the connection between people and motorcycles will
become even closer and closer. Vehicles become increasingly intelligent, can
share information with people, along with modern technology and unique
colors to satisfy the increasing demands of customers.
Weaknesses:
- Although local authorities have shown their high ability to control the
effects of covid 19 in the country, the motorcycle industry is suffering a lot this
year. After the first nine months of the year, sales in 2020 are 2.07 million,
down 15.9%.
III. SUGGESTION
Vietnam is a potential market with increasing demand and wide open development
opportunities. Therefore, Honda needs to have further improvements in marketing
policies and product policies. Some measures are proposed such as:
- Further expand domestic and foreign markets
- Honda should emphasize the differences between the product lines.
- Honda Vietnam needs to manage more tightly the prices of its products when it
reaches consumers, avoiding the situation that HEADs sell at too expensive prices,
causing damage to consumers and Honda Vietnam reputation.
- There are special promotions to thank customers who support the company.
- Regularly organize maintenance sessions, mobile warranty to remote areas.
IV. REFERENCE
https://baodautu.vn/lam-phat-nam-2019-la-279-thap-nhat-trong-3-nam-
d113705.html#:~:text=Nh%C6%B0%20v%E1%BA%ADy%20l
%C3%A0%20%C4%91%C3%A3%203,ki%E1%BB%83m%20so%C3%A1t
%20CPI%20c%E1%BA%A3%20n%C4%83m.
https://www.motorcyclesdata.com/2020/10/26/vietnam-motorcycles/
https://www.honda.com.vn/
V. PERSONAL INFORMATION
Full name: Lê Thị Thúy Hằng
Student code: 31181024152
Class: KMC01
VI. PLAGIARISM RESULT