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Honda-Marketing
BusinessManagementMarketingSWOT & PESTLE 

Marketing Strategy of Honda and Marketing Mix

by Shamsul February 2, 2022

Marketing Strategy of Honda and Marketing Mix

 

To effectively analyze the marketing strategy of honda and the marketing mix, you should investigate 4Ps such as the Product, Price, Place, and Promotion framework of a company. It explains different marketing strategies like pricing approach, product development, advertising tactics, etc. These factors have a huge role in the success of a business. Honda Company can utilize these factors to position itself comprehensively in the competitive market. This is the best way to achieve business goals. Keep reading to understand the 4Ps strategies of Honda.

About Honda:

Honda is a well-reputed name with a diversified product portfolio in the automobile manufacturing industry. This Japanese multinational company has a worldwide presence, including Europe, Asia, and North America. 

Since 1959, the company has been the biggest motorcycles manufacturer globally. Honda also manufactures power equipment and aircraft. On the other hand, it is one of the world’s largest internal combustion engines manufacturers. The company also manufactures advanced robots and electric equipment like generators. The company follows different marketing strategies in different countries to target consumers effectively.

Read Also: IN-DEPTH PESTLE ANALYSIS OF HONDA FOR GROWTH

Product Strategy of Honda | Marketing Strategy of Honda

Generally, the product portfolio of Honda is comprehensive. But particularly, only a few of its products are best-selling. It has 4 business segments: power, motorcycles, cars, and financial services. The company manufactures every type of car from trucks to mini cars, family cars, hybrid, electric, trucks, and everything in between. There are numerous models that have gained international fame such as Accord Tourer, Civic, Brio Amaze, and many more. It has a diverse range of truck models for different purposes. The company has built cars that run on gasoline, alternate fuel like fuel cell engines, ethanol, and natural gas.

With these offerings, Honda covers the entire segment of the automobile market. Its cars are enough to fulfill the requirements and needs of every customer. In Asia, Honda has a famous name due to its reliable motorcycles. Most of its motorcycles consist of an internal combustion engine, an indigenous product of Honda. Honda also manufactures MUVs, ATVs, and SUVs. Its financial services for the customers are really commendable. In short, Honda is a leader in technology as it has manufactured advanced robots that can navigate, walk, and dance.

Pricing Strategy of Honda | Marketing Strategy of Honda

Honda is a successful automotive brand in the world because its cars target every sector of the market. The company has luxury sedans, SUVs, sedans, and hatchbacks. The pricing factor of these cars depends on various things like features, sector, competition, etc. The main target customers of Honda are low middle-class people to high-class people. Honda sets the price of its products with the help of dealers. Pricing strategy also involves some essential factors like taxes, currency rate, and other countries in which Honda sells its products. Honda motorcycles cover a large segment of people in Asian countries like Pakistan, India, Malaysia, and more. Apart from motorcycles, Honda also manufactures sports bikes and luxury bikes. Currently, Honda has manufacturing units in major countries of the world.

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Place and Distribution Strategy of Honda | Marketing Strategy of Honda

The sales network of Honda is really robust. In 2006, the company had 3 sales channels: Honda Primo, Honda Verno, and Honda Clio. Honda Verno covered sporty products. Honda Clio vended traditional products of Honda and Honda Primo vended small cars. In 2006, Honda established the Honda Cars dealerships after finishing the Clio, Primo, and Verno. The company also sells different automobile accessories through Honda Access. These things show that the company has a strong marketing strategy of honda, sales, and distribution network. Honda has more than 300 authorized dealerships in more than 190 cities when it comes to India. Here is the number of authorized retail dealers of Honda in different countries:

  • Japan – 700 retail dealers
  • US – 1300 retail dealers
  • Asia – 1500 retail dealers
  • Europe – 1100 retail dealers

On the other hand, the company sells motorcycles through independent dealers in Asia, Europe, and the USA. These statistics are enough to show you Honda’s robust sales and distribution network.

Advertising Strategy of Honda | Marketing Strategy of Honda

The marketing strategy of honda or advertising strategy is really innovative and captivating. Moreover, they have used various slogans and taglines in the past to attract customers. As of now, Honda’s advertising strategy is incredibly good and they easily connect with people through their ads. In 1963, Honda sold more than 90 thousand bikes due to its effective promotional strategy. Moreover, they release different themes with ads to attain the interest of customers. Thus, the brand has a strong presence on Facebook and Instagram on social media. Its ads show innovation and technology used in its products. They also portray that its cars are reliable for users and this thing is really engaging.

Many celebrities and famous personalities are the brand ambassadors of Honda. Moreover, Honda sponsors different sports events like FIA Formula 1, hockey, and golf. In short, Honda is generating a significant profit by selling its products through effective advertising.

 

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Complete SWOT Analysis of Hyundai Motor Company – 2022

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February 2, 2022 7 comments
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Hyundai PESTLE Analysis
BusinessManagementMarketingSWOT & PESTLE 

PESTLE Analysis of Hyundai with Extensive Product Portfolio

by Shamsul January 25, 2022

PESTLE Analysis of Hyundai

 

Hyundai is one of the most popular car makers manufacturing vehicles for every customer segment. The company has an extensive product portfolio from small cars to SUVs and luxury vehicles. Everyone loves Hyundai due to its advanced manufacturing and unique designs. Read the PESTLE Analysis of Hyundai.

Currently, the company is trying to manufacture eco-friendly vehicles like electric cars. The strong market of Hyundai is in Asia, and its models such as i10, 120, and Sonata are very famous all over the world. In American markets, Santa Fe and Elantra have been doing well. As a result, the company’s revenue and reach are increasing rapidly.

To analyze the business tactics of any company, PESTLE is the best tool as it helps to investigate several external factors such as political, economic, social, technological, legal, and environmental. The impact of these factors is really huge on any business. This PESTLE analysis highlights the external factors of Hyundai, a leading automaker globally.  

Political Factors – PESTLE Analysis of Hyundai

There are plenty of car brands globally, and Hyundai is one of them with a global presence and loyal customer base. The political scenario of the world has made the business environment more complex. Establishing business worldwide needs unique tactics such as government rules, an unstable political environment, and heavy taxes. This kind of business environment can create supply chain disruption, manufacturing issues, and sales problems. So, Hyundai can’t take political forces for granted or easily because they are responsible for the better growth of its business. The business of Hyundai spreads across geographies. The political stability in the Asian-Pacific market creates a wonderful growth opportunity for Hyundai. It is a great trading indicator for the company.

Moreover, the relations of South Korea with other countries also predict which country is suitable to invest in. Unfavorable relations or conditions can lead to many problems like strict regulations and higher taxes. As a global brand, the change in the governments can also hurt the working of Hyundai.

Read Also: COMPLETE SWOT ANALYSIS OF HYUNDAI MOTOR COMPANY – 2022

Economic Factors – PESTLE Analysis of Hyundai

The ups and downs in businesses are common but constant slowdown is not favorable for any company. India is one of the most prominent markets and its current economic situation is not so favorable for the company. More than 350000 people have lost their job recently. Economic factor has a direct impact on any business and they can affect the business globally. These days, the world’s economic situation is unpredictable due to the impact of COVID-19, recession, and unemployment. This thing has decreased the demand for new cars and luxury cars, impacting all automotive brands. The customer’s buying power is really limited, and they prefer to use public transport instead of buying their own car. That is why the demand for SUVs and big vehicles has increased.

Moreover, Hyundai should increase its US and Japanese market presence to increase its revenue and profit. Other automotive brands are trying to make conditions favorable by offering exciting schemes and discounts. On the other hand, Hyundai is doing fine in India’s car sales department. It is only because of its unique features and striking designs. Even though Hyundai is a latecomer in the SUV space, they have gained significant popularity and market share. By creating job opportunities in India, Hyundai can produce cost-effective vehicles because of the cheap labor.

Social Factors – PESTLE Analysis of Hyundai

The number of male and female drivers in the world is nearly the same (60:40). Hyundai can manufacture vehicles suitable for both sexes. By customizing its cars, the company can fulfill the requirements of customers. That is why the company mainly targets middle and upper-class people. The company offers every type of car with the cost ranging from 6000 to 35000 dollars. Social factors are a game-changer for any business if they utilize them properly. Hyundai can easily target new customers by understanding the customer’s requirements, preferences, and cultural norms.

For example, the demand for SUVs is rising globally, so Hyundai can benefit from this trend by manufacturing affordable and durable SUVs. So, we can say that social trends play a big role in the working of any business. It is crucial to make strategies according to the latest trends to hit the customers rightly. This thing provides a great chance for long-term stability.

Read Also: HYUNDAI MOTORS MARKETING | HYUNDAI MARKETING STRATEGY

Technological Factors – PESTLE Analysis of Hyundai

In order to reduce carbon footprint and to increase fuel efficiency, the company uses Gasoline Direct Injection (GDI) technology. But, Hyundai’s cars provide less mileage. Due to this reason, Maruti Suzuki is giving a tough competition to Hyundai in India. Moreover, many automotive companies are focusing on Artificial Intelligence (AI) to gain a competitive edge. The company should invest in this factor to have a unique advantage. In the 21st century, people are really tech-savvy and prefer to use advanced and highly innovative products.

They judge every feature before buying cars. Hyundai should introduce technological enhancement in its products to gain the attention of customers because the competition is really high in the automotive sector. They must invest in research and development to produce quirky designs and cars. When it comes to R&D investment, the company is really strong because they invested 2352 billion Korean WON in 2016 just for R&D purposes. This kind of investment helps the company get a competitive edge over other automotive brands, and they can create a stable business environment by gaining users’ trust.

Legal Factors – PESTLE Analysis of Hyundai

In order to protect Intellectual Property Rights (IPR), every country has strict laws and rules. It involves the trademarks, copyrights, and filing of patents. That’s why the Indian market is the most favorable market for Hyundai. Also, the country’s discrimination laws are stringent, so it is a good indicator for investors. This thing ensures a good working environment for the companies as well as for the people. In case of any breach or rule break, a company can face hefty fines that are not good for its reputation. By following labor laws, environmental laws, and areas laws, Hyundai can win the trust of customers and remain competitive. It is not only good for the company but also for the environment. Isn’t it a win-win strategy? Hyundai should not be involved in any controversy or lawsuit because these things are enough to break the company’s repo.

Environmental Factors – PESTLE Analysis of Hyundai

For Hyundai and other car companies, environmental initiatives are their main focus. Nearly every car runs on fuel, so it is hard to control emissions. Hyundai and other automotive brands must meet emission standards and ethical working. Unethical practices and other negative news can tarnish the company’s image globally, which will directly affect its revenue. As people are more eco-friendly, they support every act of sustainability. So, Hyundai can impress eco-conscious users by reducing its carbon emission and sustainable practices. Every country has created environment-related rules or laws, creating considerable pressure on the companies like Hyundai. Hybrid cars and electric vehicles are the only way to impress the people and governments.

Summary

PESTLE Analysis of Hyundai

We live in an advanced era where technological, political, and economic factors matter a lot. Financial uncertainty can disrupt the operational structure of any company. Fluctuating currency rates is another problem for companies like Hyundai who are operating internationally. It is essential to follow environmental rules and tackle legal factors intelligently to keep your business away from any scandal. A friendly political and economic environment is suitable for enhancing growth, revenue, and net profit.

 

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January 25, 2022 6 comments
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Driverless Car
BusinessMarketing

Driverless Cars – A Guide to Self-Driving Vehicles

by Shamsul January 18, 2020

 

Abstract

This report analyzes the overall concept of driverless cars which is based upon several interesting and unique technological features that help it in driving freely on the road. These cars greatly rely on different technological aspects to drive. In addition to being the future of automobiles, there have also been discussed the impacts of autonomous cars on the automobile and tech industry and how they can work together to manufacture cars that are termed to be driverless cars.

I have also mentioned the safety concerns related to autonomous cars as it was important to mention because of the fatality that occurred to a car owner earlier this year and which led to the rise of several questions as to whether driverless cars are safe or not? Lastly, top driverless cars in the industry are also mentioned so that if you are interested to get one in the near future, you can make a better decision.

 

Introduction

From the immense reduction in the number of accidents to easing congestions and improving emissions compliance, driverless cars bring in a new revolution. According to the US Government release, the driverless cars estimate to be worth £900 billion on the global market by 2025 as the industry is gaining by 16% every year. The best thing about this technology is that they will be much better at following rules as compared to humans.

So, how will these cars work? There are many systems conjoined to make his technology operate.

There have been installed radar sensors around the car which tend to monitor the actual positions of other vehicles nearby.

Lidar sensors are dotted to detect road edges and identification of road markings through the bouncing pulses of light off the surroundings of the car.

Video cameras are installed which read road signs, traces traffic signals and keep track of all other vehicles along with looking out for other obstacles as well as pedestrians.

There are ultrasonic sensors fitted within wheels that are capable of detecting the position of other vehicles and edges while parking.

Lastly, there is a central computer analysis that collects all data from different sensors to manipulate acceleration, steering, and brakes.

According to a study conducted by HIS Automotive, almost 10% of all new light cars sold out will include complete self-driving capabilities by the year 2035. Many technology companies including several automakers are working on incremental self-driving elements which will take us all to the brand new era of vehicle autonomy.

This eventually means that there are several companies that are already working on delivering some type of autonomous vehicle technology and this trend is not going to slow down now.

Impact of Driverless Cars

There are several carmakers that are already worried about the prospect of this industry. The increasing trend of affordable services of car-sharing offered by Lyft and Uber, maintaining a lifestyle without having an automobile vehicle has become a lot easier. This led to major automakers to invest in this type of services. Moreover, automobile makers are also making investments in the manufacturing of driverless cars that can also result in another possible disturbance in the standing of the market.

There are two predictions that the widespread use of driverless cars in the next few decades, families and individuals will be buying fewer vehicles. The fact is that the car will operate automatically and will be able to perform more functions efficiently as compared to traditional cars.

Moreover, it is very important to determine the impact of driverless cars on the merging of two major industries – auto and tech industries. Many renowned names of the automobile and technology industry have joined hands to create this car of the future. The main concept behind this association is to deliver what is best. The case for the automobile industry, they will be manufacturing vehicles at a larger scale that are emissions and safety compliant. Whereas, for the tech industry, their software is only for operational purposes.

Safety Concerns

Trends toward driverless car usage have increased alongside the damage potential from the idea. The fatality of an autonomous car owner was the first case and as a matter of fact, these cars can face accidents two to five times daily.

Although the rate of accidents for these cars is relatively higher, most accidents occurred in an autonomous car and cars driven by humans are mainly because of human fault. As a matter of fact, this did not occur until this year’s end when an autonomous car faced an accident. This eventually leads to a question that why these driverless cars categorized to face more traffic and road accidents. Even when they started to design to less likely cause such an incident? Ironically, the issue here is that these cars program designed to obey and be in compliance with the road rules. However, on the highway or on a very busy intersection, humans, many times disregard road rules and drives as they find necessary. This is actually the main reason why the traditional approach of driverless cars is actually in the lone of increasing car accidents.

Autonomous Cars:

This failure to overcome this element led two leading tech and automobile giants in the industry of autonomous cars. Tesla and Google, to adopt different approaches so that they can control the issue notably. Google conducted a small survey in which it tested drivers on driverless cars and which revealed that drivers started trusting these cars immediately and ceased to pay attention, Google made a decision to go slow with a goal of manufacturing a vehicle that is about 100% driverless. On the other side, Tesla goes on to a different approach. Although, the cars of this automobile maker already includes various autonomous features, however, the automobile company has strictly instructed its drivers to constantly hold the steering while driving and remain alert. In this way, the company will be able to collect data so as to work upon and improve the underlying technology.

Another most significant safety and security concern with both cars having drivers as well as driverless cars is the risk of hacking. The hefty expanse of technology present in these cars on the various ways in which they connect to the web, hackers will find it easy to take over any vehicle easily.

 

Top Driverless Cars

Driverless Car

Courtesy: CNN

Google’s Driverless Cars

In the space of driverless cars, Google is certainly the dominant leader. The tech giant has managed to cross yet another milestone through its autonomous car technology by racking a total of 2 million miles with its driverless vehicle on the road. Another step in this aspect taken by Google is its association with Fiat Chrysler to manufacture future driverless cars. This partnership will involve Google’s technology associated with 100 vehicles manufactured by Fiat, especially for the tech giant.

Google is with a clear advantage in the driverless car scenario which other manufacturers can’t deny. Though, it is unclear how the company plans to earn profits from this technology. However, what is clear is that there is no sign of backing out from this idea. Having millions of autonomous miles covered, joining hands with top automobile manufacturer Fiat and a lot of spending in R&D, investors are definitely betting in Google’s advantage.

 

Driverless Car

Courtesy: Telsa

Tesla’s Driverless Technology

CEO of Tesla has also announced that their vehicles will become driverless across the country by 2018 or perhaps some few years ahead. The company has already included some auto-pilot features in its vehicles, however; it has undergone severe criticism after a Tesla owner faced a crash. This happened at that time when the autopilot feature failed to recognize a turning truck in front of the vehicle.

The main advantage of driverless cars for Tesla is that they are more advanced in vehicles and technology as compared to others. The upcoming models have autopilot capabilities. Other automobile manufacturers are busy creating their version of autonomous cars but, the version of Tesla is far more prolific.

 

Conclusion

Driverless or autonomous cars are somewhat new as well as exciting technology. Similar to any other new advancement in technology, these cars also have some risks involved. Especially in its early stage, however; the manufacturers assured to control this risk and drivers will be safe.

While the idea of autonomous cars tends to create a sense of excitement in your imagination. There is still a lot of time and effort needed before they go available, safe as well as regulated. This transition is quite a difficult one as driverless cars mean that car owners need to give up their control at the speed of 70 and more MPH.  Moreover, these cars are also quite susceptible to virtual attacks. In spite of all the risks involved, driverless cars are a significant step within the aspect of transportation technology.

 

 

 

References

  • Armstrong, J. (2016) How do driverless cars work? Available at: http://www.telegraph.co.uk/cars/features/how-do-driverless-cars-work/ (Accessed: 16 October 2016).
  • Deaton, J.P. and Hall-Geisler, K. (2008) How Driverless cars will work. Available at: http://auto.howstuffworks.com/under-the-hood/trends-innovations/driverless-car.htm (Accessed: 16 October 2016).
  • Mitchell, M. (2015) ‘A Wolrd of Driverless cars’, Nature, 518(-), p. 2.
  • Neiger, C. (2016) 3 top Driverless car stocks to buy now — the motley fool. Available at: http://www.fool.com/investing/2016/10/15/3-top-driverless-car-stocks-to-buy-now.aspx (Accessed: 16 October 2016).
  • Sliwinski, M. (2016) How close are we to Driverless cars? Available at: http://lawstreetmedia.com/issues/technology/close-driverless-cars/ (Accessed: 16 October 2016).

 

January 18, 2020 5 comments
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