Toyota and Honda Research and Comparison

Research And Market AnalysisHONDA MOTOR CORPORATION

&TOYOTA MOTOR CORPORATION

Fahad Iqbal

Short Introductions

&History

HONDA

• Japanese public multinational

corporation

• Headquartered in Tokyo, Minato,

Japan

• Primarily known as a manufacturer

of automobiles and motorcycles

• Founded by Soichiro Honda.

• 5th largest automobile manufacturers

in world and 2nd in Japan

• Company was established on

September 24, 1948.

• Takeo Fukui is the CEO of a company.

• TMC, a multinational automaker

• World's largest automobile

manufacturer by production in 2010

• Headquartered in Toyota City, Aichi,

Japan

• Founded by Kiichiro Toyoda on August

28, 1937

• Over 30 million sold, the Corolla is one

of the most popular and best selling

cars in the world

• Received its first Japanese Quality

Control Award at the start of the

1980s

TARGET MARKET (HONDA)

Always targeted: upper class groups upper middle class middle class

Have been very successful in maintaining its target market and providing with the products of their needs.

Young adults

Elite class

Economy class

Upper middle class

Upper class

TARGET MARKET

TOYOTA

MARKET SEGMENTATION

Geographic SegmentationOver CountriesWithin a country• Rural citizens • Urban citizens

Demographic Segmentation• Age• Gender• Income• Family status

Psychographic Segmentation• Lifestyle• Personality

Behavioral Segmentation• Benefits

MARKET SEGMENTATION

• Toyota Fielder And Honda Airwave• Toyota Corolla and Honda City• Toyota Mark X and Honda Accord

Research&

Market Analysis

Through Questionnaire

Filled By different age groups, gender and Employee Positions

SPSS Tool was used

5%

35%

25%

20%

13%3%

10 to 1920 to 2930 to 3940 to 4950 to 5960 and up

Age Frequency

85%

15%

MaleFemale

Gender Frequency

38%

18%20%

25%

Student

Self Employed

Government Employeed

Private Sector Employeed

Job Description Frequency

Image & Status (Honda)

15%

60%

25%NeutralAgreeStrongly Agree

Image & Status (Toyota)

3%20%

68%

10%

Disagree

Neutral

Agree

Strongly Agree

Brand Status• Nearly in comparison

with each other

• Honda has a little high brand image as compared to Toyota

• May be due to high prices of Honda vehicles and spare parts

Prices Affordability(Honda)

19%

31%22%

28% Strongly Disagree

Disagree

Neutral

Agree

Prices Affordability(Toyota)

5%

5%

60%

30%

Disagree

Neutral

Agree

Strongly Agree

• Prices of Honda vehicles are high according to respondents

• Over 90% are satisfied with prices of Toyota

Prices Affordability

• Toyota should maintain this price range by maintaining quality

• Honda should lower their prices by targeting customers related to lower segments

Recommendations

Maintenance Affordability(Honda)

5%

28%

28%

40%Strongly Agree

Disagree

Neutral

Agree

Maintenance Affordability(Toyota)

5%

28%

58%

10% Disagree

Neutral

Agree

Strongly Agree

• High prices of spare parts

• 30-40% high priced than Toyota

• Not easily available everywhere

Reasons For Honda

• Lower their costs of spare parts by producing at larger scale

• Improve distribution channels

Recommendations

Spare Parts With Warranty(Honda)

23%

43%

28%

8% Disagree

Neutral

Agree

Strongly Agree

Spare Parts With Warranty(Toyota)

15%

45%

28%

13% Disagree

Neutral

Agree

Strongly Agree

• Need to manufacture genuine spare parts

• Providing their own company warranty

Recommendations For Both

Spare Parts Prices(Honda)

15%

30%

30%

20% 5%

SD D

N A

SA

Spare Parts Prices(Toyota)

10%

25%

38%

28%

D N A

SA

• Unavailability of these in every place

Reasons For Honda

Recommendations For Honda

Reasons For Toyota• Easily available• High market in Pakistan

• Lower their costs of spare parts by producing at larger scale

• Improve distribution channels

Smooth and Comfortable Drive(Honda)

13%

50%

38%

N A SA

Smooth and Comfortable Drive(Toyota)

5%13%

68%

15%

D N A

SA

Fuel Efficiency (Honda)

3%28%

30%

38%

3%

SD D

N A

SA

Fuel Efficiency (Toyota)

40%

45%

15%

N A SA

• Improving engines • Introducing Hybrid engines

Recommendation For Honda

Resale Value(Honda)

3%

28%

45%

25%

SD D N

A

Resale Value(Toyota)

25%

40%

25%

10%

D N A

SA

• High prices of spare parts • High maintenance costs• Low market as compared to Toyota

Reasons For Honda

Recommendations For Honda

Reasons For Toyota• High market• Low maintenance costs• Durability of vehicles

• Over come the problem of high costs of maintenance and spare parts

Target and Segmentation(Honda)

30%

20%15%

30%

5%

SD D

N A

SA

Target and Segmentation(Toyota)

28%

35%

38%

N A SA

• Low market as compared to competitors

Reasons For Honda

Recommendations For Honda

Reasons For Toyota• Durability of cars• Reconditioning of vehicles

• Target lower segments by introducing economic and fuel efficient cars

Promotions (Honda)

15%

33%35%

18%

D N A

SA

Promotions (Toyota)

8%

33%

45%

15%

D N A

SA

Promotions by introducing promotion campaigns like

free oil changes, care centers etc.

Company’s workshops where availability of genuine

spare parts is easy and low priced.

Improve and apply all the promotion strategies as

mentioned to increase market share more and to

gain customer loyalty.

Recommendations For Both

This is it…