Published by MBA Skool Team, Last Updated: July 25, 2021
Marketing Strategy of Honda analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Honda marketing mix, help the brand succeed in the market.
Honda marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Honda Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Honda marketing strategy can be explained as follows:
Honda has 4 business segments: automobile, motorcycle, financial services and power. The marketing mix product strategy for Honda covers all aspects of the business as follows. Automobile: Honda manufactures passenger cars, mini vehicles and light trucks. Honda’s Passenger car models are Accord, Accord Hybrid, Accord Plug-in Hybrid, Accord Tourer, Amaze, Brio, Brio Amaze, Brio Satya, City, Civic, Civic Tourer, CRIDER, CR-Z, Fit/Jazz, Fit/Jazz Hybrid, Fit Shuttle, Fit Shuttle Hybrid, Freed, Honda Mobilio, Insight, Jade, Spirior, Stream, Acura ILX, Acura RLX, Acura TL, Acura TSX. Light trucks manufactured by the company include Crosstour, CR-V, Elysion, Odyssey, Pilot, Ridgeline, Step WGN, VEZEL, VEZEL Hybrid, Acura MDX, Acura RDX. The company also offers mini vehicles, including Acty, Life, N-Box, N-Box +, N-ONE, N-WGN, Vamos. Honda automobiles use gasoline, diesel gasoline-electric hybrid and alternate fuel such as ethanol, natural gas and fuel cell engines. Honda cars cater to different needs and preferences of various segments of the markets. Honda manufactures a wide range of motorcycles from Beat (FC50) which has a 48cc engine to Gold Wing (GL1800) which is 1832cc engine. The motorcycles use use internal combustion engines which are developed by Honda itself. Honda also offers all-terrain vehicles (ATVs) and multi utility vehicles (MUVs). Honda’s Financial services offer a variety of services to customers in Japan, US, UK, Germany, Brazil and Thailand. Services offered are leasing of new and pre owned cars and financing for honda products. As a leader in technology, Honda also invests in research in developing robots that can walk, dance & navigate.
Honda Price/Pricing Strategy:
Below is the pricing strategy in Honda marketing strategy:
Honda has cars which target every segment of the market.
Honda has hatchbacks, sedans, luxury sedans and SUVs. Hence, the pricing strategy in the marketing mix of Honda is based on various parameters like competition, segment, features etc. These automobiles target customers from low middle income level to high income level. Dealerships have limited flexibility over pricing. Prices are determined by Honda and dealers enter into contracts with them. Base prices around the world are similar and fluctuations may be due to currency, taxes and other similar factors. Honda Motorcycles also have a wide range and cater to different segments of the market. Honda uses economies of scale to meet growing demand at affordable prices especially in emerging economies such as India, Brazil and Thailand. Honda builds huge manufacturing hubs in developing countries and exports the bikes in developed countries where cost of production is higher. Honda also provides luxury bikes and sports bikes which are priced at the higher end.
Honda Marketing Strategy comprises of not only its Marketing Mix, but also segmentation, targeting, positoning, competition and analysis like SWOT. Also read Honda SWOT Analysis, STP & Competitors
Honda Place & Distribution Strategy:
Following is the distribution strategy in the Honda marketing mix:
Honda has a robust sales network. Prior to 2006 Honda had three sales channels. These were Honda Verno, Honda Clio and Honda Primo. Honda Verno sold established and products of sporty nature. Honda Clio sold traditional Honda products and Honda Primo sold Kei car i.e. small cars. All three were discontinued in 2006 and Honda Cars dealerships were established. Honda sells genuine company accessories through Honda Access a retail chain. Customers can also buy used cars directly from Honda through Honda Auto Terrace. To sell kei cars Honda established Honda Auto Terrace. Honda Cars has strong sales and distribution networks in the markets in which it operates. In India the network includes 300+ authorized dealership facilities in 190 cities.
Honda sells automobiles through a network of 700 retail dealers in Japan; 1,300 dealers in the US; 1,500 dealers in Asia (excluding Japan); and 1,100 dealers in Europe. Honda motorbikes has 6,500+ outlets in Japan. Honda sells motorbikes using independent dealers in US and Europe and Asia with 1,000 dealers in US, 14,070 dealers in Asia and 1,400 dealers in Europe.
This shows the strong marketing mix distribution strategy of Honda motors.
Honda’s power products are sold in Japan through approximately 1,110 retail dealers; through 8,000 independent local dealers in the US); through 3,500 independent local dealers in Asia (excluding Japan); and in Europe through a network of approximately 2,850 independent local dealers.
Honda Promotion & Advertising Strategy:
The promotional and advertising strategy in the Honda marketing strategy is as follows:
Honda used an innovative marketing campaign to change the way customers perceived motorbikes. The slogan used was "You meet the nicest people on a Honda”, this campaign showcased that Honda motorcycles were made for the common man. The campaign was successful and increased Honda’s sales 90,000 motorcycles in 1963 alone. The promotional strategy in the marketing mix of Honda is to be aggressive. Honda uses TV advertisements to a large extent. Honda has released ads with different themes to attract customers. Online ad campaigns have also helped the brand establish its competitive edge. The brand also proactively engages with its users on social media websites like Facebook, Instagram etc. The adds focus on Honda’s innovation and superior engineering such as the cog advertisement. Honda also released an advertisement showcasing the Honda founders dream of producing high quality cars. Honda has a lot of promotion done through motorsports like Motorcycle Grand Prix, Superbike racing and others in which the company participates or supplies engines. Honda portrays that it builds cars which win such tournaments. Honda sponsors such sporting events, it was the official sponsor of the FIA Formula 1 telecast on broadcaster channel "Ten". Honda also sponsors other sports such as hockey and golf. Honda advertises in print media and participates in road shows to showcase its products. Hence, this concludes the marketing mix of Honda.
Honda is one of the largest manufacturers of automobiles and motorcycles in the world. It is a Japanese multinational company which operates in North America, Asia and Europe. Honda is also known for the manufacture of aircrafts and power equipment. Since 1959 Honda has been the largest manufacturer of motorcycles.
It is also the largest manufacturer of internal combustion engines in the world. Honda is also actively involved in advanced research such as robotics.
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