ASSIGNMENT 1

BRAND : Honda

Introduction:

Honda Motor Company Ltd is a Japanese public multinational corporation known as a manufacturer
of automobiles, motorcycles, and power equipment. Honda Motor established in 1947 by Soichiro Honda to
manufacture motors for bicycles. The company expanded speedily as a motorcycle producer in the following
years. Honda entering the U.S. market well and yet penetrating the automobile manufacturing industry in
1963.

Honda are building up the trust of its shareholders, customers and the public by established corporate
governance as an important objective to its management. Honda seek to reinforcing the corporate value and
sustainable expansion with strengthen the principles of up-to-date, determinant and risk analyse. Honda
encouraging the managerial responsibility of the Board of Directors and securing immediate decision
making, by supporting a company with a system which is Audit and Supervisory Committee system. This
system is stimulated the separation of the supervisory management and executive management.

Honda is training to disclose all the company information such as yearly and quarterly financial
statement and company policies. This information is disclosed in an accurate period and systematic presence
to strengthen the trust from shareholders, customer and the public. Honda will remain to ensure the
transparency of its company information. The company has assign Outside Director who have a high amount
of independent to overseeing the business management.

Brand positioning of Honda:

Brand positioning has been defined by Kotler as “the act of designing the company's offering and
image to occupy a distinctive place in the mind of the target market”. In other words, brand
positioning describes how a brand is different from its competitors and where, or how, it sits in customers'
minds.

Honda positions its product among close competition such as Toyota, Ford, GM, etc. as a "value of
money" product that offers high engineering quality, better fuel efficiency and strong performance at very
competitive rates. In its positioning and differentiation efforts, Honda tries to leverage on its strong
capabilities in engine performance and quality and back up such capabilities with good design and high
quality overall package that appeals to buyers that look for quality cars that offers good "Value for money"
for their purchase.
 1. Internal and external value:

Enterprise Strategy:

 Honda wants to have its operation in worldwide to supply the highest quality of
products at a reasonable price, with a dedication of consumer satisfaction. With new
challenges in pursuit of quality, technology and initiative.
 Honda is pursuing their vision by striving a company society who wants to exist
through creating the new value, globalization and commitment for the future.
 Moreover, Honda wants to take new challenges with the pursuit of Initiative,
Technology and Quality.

Corporate Strategy:

 Honda’s portfolio includes three businesses: Automobiles business, Motorcycles

business, Power business. Even though stepping into Automobile industry rather late
at 1963, Honda quickly leads the industry with characteristics like superior fuel
economy, optimum safety, and driving pleasure. Honda’s sales and production in this
industry prove successful steadily not just in U.S. but also in many regions
 worldwide.
 Meanwhile, motorcycle business is the first business of Honda, from 1963 with the
event of the first overseas plant in Belgium, Honda has devoted in one basic rule:
“build products close to the customer”. Now Honda has its Research and
Development operations in many countries like U.K, U.S, Italy, China, Germany,
Thailand and India. In the future they will create a very promising and potential
Honda.

Business Strategy:

 R&D is sharpening the business advantage of Honda, together with the fierce
competition between Honda and competitors, and they all define the business strategy
of Honda. One of the proudest things about Honda is its R&D system. With the
systematic way of approaching, focus on durability, reliability and basic performance
to establish a creative and innovative technical foundation.
 With the wisely approach to the future, the Honda products do care about the
economical, environmental, and social issues. Honda keeping involving in the
research and development that benefit people in the future through leading-edge
technology and commitment to innovation that opens up new possibilities in mobility.
 With the Joy of Selling- The dealership of Honda is also one of its strengths. Through
creating products and services that provide the core values that make Honda unique,
the Honda’s associates around the world keep creating such inspiring experience for
its customer.

Operational Strategy:

 Honda operates in the worldwide market – with 134 production facilities in 28

countries and at 31 R&D facilities in 15 countries, about 167000 Honda employees
and associates serve 23 million customers worldwide annually. Honda’s global
operations are divided into 6 administrative regions responsible for operating. Hiring
and engaging the people and philanthropic initiatives locally in the communities that
Honda operates.
 Honda is pushing the independence of their local management and sales operations, at
the same time with integrating and forward-looking plan for each region. They
operate under the conduct guidelines that help member companies and associates in
evaluating and managing risks, complying with laws and regulations, keeping a high
 level of transparency in operational level, that’s all to maximize the worldwide
customer satisfaction.

The Individual Strategy:

 This strategy reflects the Honda’s values – “the three joys”. That is “The joy of
buying, the joy of selling and the joy of producing”. The individual strategy of Honda
is reflected through the Honda’s philosophy
 The Joy of buying, the joy of selling, and the joy of producing. With the joy of
buying, the Honda’s associates must try their best to exceed the customers’
expectation. Meanwhile, with the joy of selling, which concern not only about the
relationship between the dealers and their customers, but they also feel the pride of
having a positive relationship with their customers.
 And the last one, the joy of producing comes from manufacturing, research and
development by producing quality products that satisfy customers worldwide, the
Honda’s employees can experience pride in exceeding the expectation of their
customers. That all bring the strategies of Honda from their enterprise level, through
corporation, business, operational level, to individual strategy level, that spread the
Honda’s strategic spirit throughout the company.
2. Target audience:

 Customers of Honda are the middle-income group people who are looking for
vehicles whether they be driven with two wheels or four wheels. They target the
group of consumers that want reliable and somewhat affordable cars. They also want
cars that aren’t going to cost much to maintain. They target the market of motorcycle
rides in cities with their motorcycle lines. They offer larger SUVs and vans that target
more of a family type household that needs more room in their vehicles. Honda also
offers more sporty type cars that target they younger consumers and older aged
consumers.
 They are the target customers who will get the Honda cars instantly without any
thought.
3. Uniqueness:

 Producing high quality of products

 Having the Pioneer engineering in hybrid technology

 Build products which are always close to the customer

  Honda posses a large number of advantages in the automobile industry that makes it
the most running brand in the market among a large number of consumers.

Brand sponsorship:

 Millennials are playing a key role in Honda’s sponsorship strategy. Looking to engage
twenty-somethings, the automaker has doubled down on sponsorships that provide digital
engagement and social media reach, with music and motorsports playing a central role.

 On the motorsports front, Honda this year partnered with Red Bull Global Rallycross and the
Olsbergs MSE race team on behalf of the 2016 Honda Civic Coupe. Honda next month will
extend the partnership via presenting status of the Oct. 8-9 Global Rallycross season finale in
San Pedro, Calif.

 In music, Honda is wrapping up its third year with the Honda Stage, a digital marketing
platform centered around live performances and other curated content. Honda accesses the
content via partnerships with iHeartRadio, Live Nation and other content providers.

 Honda posts the content on a dedicated YouTube channel, web site (HondaStage.Honda.com)
and other digital platforms. The Honda Stage builds on the automaker’s long-running
sponsorship of the Honda Civic Tour, a platform the company owns. “We, like many
companies, want to find the most effective way to reach millennials. We have a long history
of investing in music, and we saw the Honda Stage as a way to curate our own music content
and use a video platform to get our message out,” said Tom Peyton, American Honda Motor
Co. assistant vice president of marketing operations.

 The Honda Stage has been a success. The program reached its first year goal of 100 million
views, 2 billion impressions and 4.4 million social media engagements. “The results were
what we hoped for,” said Peyton, noting that Honda has reduced its advertising spend on
traditional media based on the success of the program.  
 Honda in 2015 broadened the Honda Stage’s content offering with Uncharted: Power of
Dreams, an original content series that highlights up-and-coming artists. Honda developed
the video series in conjunction with Woven Digital, a millennial-focused digital media
company. Woven also distributes the videos through Uproxx.com, a millennial-focused news
and entertainment hub.

 The content helps broaden the Honda Stage’s already extensive reach via an emotional
connection with fans of emerging artists, said Peyton. “Up and coming artists have different
 stories and emotional touchpoints than established artists like Ariana Grande. People
appreciate the music of new artists and their musical journeys.”

Expands NHL And Disney Partnerships:

 Honda this week will expand its eight-year-old NHL partnership via sponsorship of the 2016
World Cup of Hockey. The tournament kicks off this Saturday and runs through Oct. 1. “We
continue to like the NHL. It’s a great target market for us—hockey fans index well for Honda
—and the NHL has done a great job innovating their brand and changing things up.”

 Honda has used the partnership to promote different vehicles, with the Ridgeline sport utility
truck taking center ice in 2016. In April, Honda expanded its nearly ten-year-old Disney
relationship with sponsorship of the Autopia attraction at Disneyland Park. The ride features
updated Honda-themed cars powered by Honda engines.

 Honda’s other major sponsorships include the Honda Center in Anaheim, Calif.; Honda
Classic PGA Tour Tournament and Little League Baseball—a platform the company uses to
support its corporate philosophy of the “Power of Dreams.”  

Where Honda spends money:

Brand name selection:

Honda is named after Soichiro Honda. However, the origins of the name “Honda” actually go much
deeper, making the name choice a thoughtful (rather than merely egotistical) one. The name “Honda”
actually means “original rice paddy” in Japanese. That may sound strange, but Japanese last names that refer
to features of rural landscapes are extremely common. The decision to name the company after Honda
worked in Japan because it was a familiar and trustworthy name, and it worked elsewhere because it’s
simple and unique.

Brand development:

“The Power of Dreams” is Honda’s global brand slogan. It speaks to our desire to dream and to
realize those dreams around the world. Behind this slogan, is what we call the Honda Philosophy. It
comprises our fundamental beliefs, our company principles, and our management policies. The fundamental
beliefs include two concepts: respect for the individual, and “the three joys”-the joy of buying, the joy of
selling, and the joy of creation.

Because Honda covers a wide range of business areas, we have a flexible approach with operations in each
country that are autonomously responsible for the creation of our brand. That being said, in the broadest
terms we are “HONDA,” a single corporate brand, so, regardless of whether our customers are looking at a
four-wheeled vehicle, or a two-wheeled, or power products, we want to create something that meets their
needs. We want Honda to be an extraordinary brand, earnestly pursuing a dream-that goes beyond
conventional thinking.
Brand Positioning:

Brand positioning has been defined by Kotler as “the act of designing the company's offering
and image to occupy a distinctive place in the mind of the target market”. In other words, brand
positioning describes how a brand is different from its competitors and where, or how, it sits in customers'
minds.

Honda positions its product among close competition such as Toyota, Ford, GM, etc. as a "value of
money" product that offers high engineering quality, better fuel efficiency and strong performance at very
competitive rates. In its positioning and differentiation efforts, Honda tries to leverage on its strong
capabilities in engine performance and quality and back up such capabilities with good design and high
quality overall package that appeals to buyers that look for quality cars that offers good "Value for money"
for their purchase.