Acura Presentation

Jordan Post, Katie Nelson & Stacie Matz

Proposal

Company Profile

Acura: Luxury vehicle division of Japanese automaker

Honda Motor Company. Developed in 1986 Models:

MDX (luxury SUV) RDX (crossover SUV) RL (mid-size sedan) (known as "RL" in North

America, "Legend" in the rest of the world) TL (mid-size sports sedan) TSX (compact sports sedan) CSX (compact sedan) (replacement for the Acura

EL, only available in Canada) USA, Canada, Mexico, Hong Kong, Japan

Country Analysis

Japan Individualism Index: 42 Cultural Context: High Power Distance Index: 50 Population: 127,288,416 (July 2008

estimate) Political System: Constitutional Monarchy

w/ a Parliamentary Government Language: Japanese Currency: Yen (¥) GDP: $4.384 trillion

United Arab Emirates Individualism Index: 38 Cultural Context: High Power Distance Index: 80 Population: 4.6 million Political System: Federation Language: Arabic, English Currency: Dirham (AED/Dh) GDP: $192.6 billion Trade Restrictions: Free Trade Zones

Country Analysis

Mode of Entry

Foreign Direct Investment Free Trade Zone

Use showrooms, rent storage and maintenance facilities from the city of Dubai

Maintain full ownership

Product Distribution

Documents Japan

Exit: Export Declaration (Customs Form C- 5010), followed by invoices, permits, approvals, licenses, and certifications, Signed Bill of Lading (Carrier)

Dubai Entry: Fill out Dock receipt Free Trade Zone

Distribution Method United Arab Shipping Company (UASC)

Freight Liner

Market Analysis

56% Growth in car sales (2005-2007) Luxury car sales = 12% Main Competitors:

BMW, Mercedes, Lexus, Cadillac, Infiniti Barriers to entry: Low (Recent Free

Auto Trade Zone)

Product Adaptation

Switch Drivers seat location Japan: Right Side UAE: Left Side

Japan: Small compact cars UAE: SUV’s

Marketing Objectives

Target Market: Affluent professionals 20-55

Gain 25% market share by 2012 Expected Sales: 10,000-13,500 units Balance Price Skimming &

Penetration Gain similar profit margin as other

locations

Media Mix

TV advertisements Print Ads

Trade magazines, business magazines, etc. Billboards

Affluent parts of town, Business District Online ads

High penetration rate (50%) Auto Enthusiast websites

Sponsor Formula 1 Abu Dhabi Grand Prix

Staffing

1 year shadow period Selected Japanese upper management

will transfer to the Dubai location. Emerati managers will be hired to

shadow the Japanese upper management, and will take over the position after a one year training period.

Extensive training Provided by Japanese Corporate

Time Line

Thank you