Honda Europe

MKT 651GLOBAL MARKETING

PREPARED FOR:

DATUK PROF. DR. HJ. MD. TAHIR

PREPARED BY:

NURUL UYUN ABD TALIB

NOR AMINA HAMDAN

History

• Founded ~ 24 September 1948• Founder ~ Soichiro Honda• Headquarters ~ Minato, Tokyo, Japan• Area served ~ worldwide• Industry ~ Automobile, track manufacturer,

motorcycle• Revenue ~ US$ 120.27 billion (FY 2009)• Employees ~ 181,876 (2009)

Suichiro Honda

Founder Honda Motor Company Ltd

1948 - 1991

“ If Honda does not race there is no Honda”

Honda Headquarters Building in Japan

The case study is all about Honda which faced lower sales in Europe market as compared to other competitors. Honda needs to struggle to penetrate the Europe markets as well as to sustain there. Basically in this case study it tells us how come a number one carmaker in Japan can faced all the difficulties.

Based on the case study also its state few reasons of the lower sales of Honda in Europe market and other major problem facing by Honda in the European market that contribute to the low sales

Summary

such as the acceptance of people in Europe country toward Honda , competition from other automobile manufacturer, promotion as well as the culture.

Problem statement

1) Lower sales in Europe market

Unit Sales Year 2004 Year 2005

Japan 716 712

US 1558 1575

Europe 231 267

Other 137 176

Honda entered Europe market late make it difficult to survive

Chronology1961- Honda entered Europe market as a

motorcycle manufacturer

1986- Honda started engine production in UK

1990- Oversupply of motor vehicles – industry problem

- M&A took place - only 6 or 7 companies would remain global

as global player1992- Honda launched its Europe production at

Swindon UK

Europe highly saturated with local company

- Saab,Volvo,BMW,Audi,Volkswagen,Opel Renault and Fiat- other foreign company : Toyota,Nissan,Ford &

Hyundai Automobil

e%

Volkswagen 17.6

Peugeot 15.8

Renault 10

Ford 10

Toyota 5

Honda 2.4

2) Weak brand image & product line is narrow

- Oldies ; back to 1930s- Low quality- Out dated- Second car

3) Failed understand Europe culture• Treated as one giant single market –

WRONG• France,Germany,UK and Italy – different

culture• High context & Low context

– Different way to approach– Represent the product- Ads– The acceptance of people towards

Honda

4) Poor promotion afford• Same throughout Europe• Spend little time and money• Rely on words of mouth• Poor website

Recommendations

• Marketing strategy plan should be revised

• ~ develop according to the nation culture

• Market segmentation according to high or low context culture

• Tackle market by manufacturing more low-emission CO2 vehicles and offering more motor vehicles model (diesel cars)

Improve the promotion

Low Context High Context• Informative advertising

• Customize advertising based on style and image• Employ PR campaign, road shows, printed and broadcast media