10 STEP

Marketing Plan for

HONDA Cars Philippines

Luis Angelo M. Ibarra

February 23, 2010

1
5 Steps for Part 1
(PTM & Positioning)

1. PTM: Up and coming Class A and B

2. NEW: Want value for money and at the same
time want elegance and prestige – there are
no Honda PUVs!
3. Competitors: Can choose Toyota or other car
manufacturers
4. Gap: Other car makes may be used as PUV,
Honda is exclusively for Private use only
5. 3C’s: Php144.6B Market!
5 Steps for Part 2
(Marketing Mix & Strategy)

6. Product: Cars and SUVs

7. Price: Varies on model of vehicle, but usually
more expensive or the same as their Toyota
counterparts
8. Promo: Uses print and some TV ads –also
ties up with other promos with car prizes,
race teams
9. Place: Available in dealers nationwide
10. Uses a differentiation strategy, with their
designs and exclusivity of being for Private
only
Positioning to the
Primary Target Market

Part 1:
Steps 1 to 5

4
1. Honda PTM are the Up and
Coming Class A & B
 Demographics: 30-50 yrs old, M/F, social
class AB, single and married
 Lifestyle: working class, established with
work and has buying power, fairly
successful, wants value for money and
prestige in what they drive
 Behavior: replaces car every 5 to 7 years,
monthly amortization of 15 to 20K, good
ride, efficient fuel consumption
 Self acceptance, “I am a
success in my own right”

I feel “made” and confident

In my nice car

I belong to the higher

classes who can afford

Safe from the

hazards of commuting
2. My PTM’s NWE
Class A and B need…

To be safe from the hazards of commuting,

belong socially, be confident, self actualization and
acceptance

Honda over Toyota or other makes because…

“Power of dreams (Honda tagline)” –dream fulfilled,

the look and feel of the car, the efficient fuel
consumption, price, credibility & image of the
company, the exclusivity of Honda for private use
only
2. My PTM’s NWE (cont’d…)

Expectations are…

A luxury item and increased convenience

when traveling, above average fuel efficiency,
a good ride, an image booster
3a. Honda Competitors
 Direct: Toyota, Mitsubishi, Mazda, Ford, Nissan

 Indirect: Motorcycles, improved or promises of

improved mass transit, investment
opportunities (business, real estate, etc.)

 Variables: Price, income bracket, vehicle type

(compact sedan, sedan, SUV, UV, van, pick-up
truck, etc.), aesthetics, car features, fuel
consumption, brand
 Honda is the Clear Number 2 in
Sedan and Compact vehicles,
next only to Toyota
Price vs. Vehicle type
need
Price / vehicle Compact Sedan UV SUV
type

High price

Ford
Medium price Toyota Mazda
Mitsu

Honda Nissan
Low price
 Honda’s Unique Positioning is
Shown in This Competitive Map
Positioning vs. Brand
  Matrix
Honda Toyota Mitsu Nissan Mazda Ford
SUV            
UV            
Pick-up            
Truck
Sedan            
Compact            
Van            
Hybrid            
Private Only            
Vehicle types are only those offered here
in the Philippines
4. Honda Banks on its Image
and Reputation
Honda is the only brand…
 Which is exclusively for private only

 Which gives owners the feeling of class, elegance,

and prestige (most especially in the lower priced

compact cars and sedans –others are seen as PUVs,
but not Honda!)

No other manufacturer has a similar position. Others

sacrifice this image by allowing their vehicles to be
PUVs in exchange of higher sales
5a. Based on LTO Data, there are
156K New Cars, SUV, & UV in
2008!
Source: http://www.lto.gov.ph/Stats2008/no_of_registered_MV_typeMode_LTO2008_2.pdf
5b. Based on Assumption of
Vehicle Prices using Market
Knowledge, it’s a P144.6B Market

Breakdown:
49K new cars
26K new SUV
81K new UV

Assuming Php750K per car, Php1.5M SUV,

Php850K per UV –that’s a Php144.6B Market!
 6a. In Sedans, Honda has 5 Major
Direct Competitors

Honda Toyota Mitsu Nissan Mazda Ford

Sedan Compact
SUV
 6a. Indirect Competitors vary
from Real Estate to Business
Ventures

Business Condominiums

Real estate

Bank Investments
6b. Product Description
 Honda usually flaunt stylish curves and sleek interior
designs. Their engines are often considered as one of
the more powerful in the Asian car manufacturers
industry
 Honda caters to the compact car, Sedan, and SUV
(actually mini-SUV) market
 In each offering above, they offer several variances –
ranging from engine displacement, transmission type
(MT/AT), and other features
7. Honda is Priced Higher by
41% than the Cheapest Make
In the Sedan type, lowest prices offered are as follows:
Honda Civic 1.8V: Php858K

Toyota Altis 1.6E: Php784K

Mitsubishi Lancer 1.6GLX: Php685K

Nissan Sentra 1.3GX: Php610K

Mazda 3 1.6S: Php860K

Ford Focus Style 1.8: Php779K

Honda is usually more expensive, but gives value for

money with the engine displacement and features they
have – in the cheapest variant, Honda has power
everything (windows, side mirrors, steering, etc.)
 8a. Promo

Proposal: billboard ads

along main
thoroughfares such
as EDSA
 8a. Promo

Proposed: Direct mail

To their PTM!
 8a. Promo

Proposed: More TV
commercials on
programs watched
by PTM –news
programs, car
enthusiast shows,
feature shows, etc.
 8a. Promo

Proposed: testimonials
from bankable
celebrities who exude
“class” and “prestige”
-- offhand: Piolo, Sam,
Jericho, Dingdong,
John Lloyd
(Clear shampoo
chose well!)
 8a. Promo

Print ads in top 3

Broadsheets –placed
In sections read by
PTM (special feature,
sports, business, etc.)
 8a. Promo

Honda currently has

their own racing team,
further showing that
their engine
technology can
compete with the best
 8a. Promo

Honda has a clean-

looking website which
banners their latest
car models and other
news briefs
 8b. Competitor promo

Toyota has sales

Promotions every
now and then
 8b. Competitor promo

They also place print

ads in major
broadsheets
(and so does the
other makes)
 8b. Competitor promo

Toyota maintains an
uncluttered site,
which banners their
latest sales promo
 8b. Competitor promo

Toyota also has TVCs,

just like Honda and
some other car makes
 8b. Competitor promo

They also have a

racing team!
8b. Competitor promo

The primary competitor, Toyota, is practically

doing what Honda has been doing and more
(bigger sales promos).

The only disadvantage Toyota has in the

Class A and (upper) B market is that Toyota
is used as PUVs and might turn off potential
buyers.
9. Honda has Dealers nationwide
in Key Luzvismin Areas
 Honda has 26 dealers nationwide,
with 10 in NCR, 9 in Luzon, 4 in
Visayas, and 3 in Mindanao
 Cars are ordered and may be
delivered at your home or picked up
at the dealer
 Mode of payment may vary from a
mix of credit card (for down/partial
payment), cash or financing
10. Honda is Different
Honda’s main strategy is to target up and coming class
A & B through differentiation by offering a
product that cannot be associated with PUVs
(despite their price range competing with some PUV-
affordable models)

It benefits from the global marketing machinery used by

Honda (F1, ads over cable channel, etc.)

Has premium priced, excellent product available

nationwide
SUMMARY

34
5 Steps for Part 1
(PTM & Positioning)

1. PTM: Up and coming Class A and B

2. NEW: Want value for money and at the same
time want elegance and prestige – there are
no Honda PUVs!
3. Competitors: Can choose Toyota or other car
manufacturers
4. Gap: Other car makes may be used as PUV,
Honda is exclusively for Private use only
5. 3C’s: Php144.6B Market!
5 Steps for Part 2
(Marketing Mix & Strategy)

6. Product: Cars and SUVs

7. Price: Varies on model of vehicle, but usually
more expensive or the same as their Toyota
counterparts
8. Promo: Uses print and some TV ads –also
ties up with other promos with car prizes,
race teams
9. Place: Available in dealers nationwide
10. Uses a differentiation strategy, with their
designs and exclusivity of being for Private
only
10 STEP
Marketing Plan for
HONDA Cars Philippines

Luis Angelo M. Ibarra

February 23, 2010

37