The Honda Motors marketing mix elements invest aggressively in the marketing strategies to align it with the business strategy, gain market share, focus on the target audience, attract customers and boost brand image in the market.
The marketing strategy of the Japanese multinational Corporation primarily focuses on its product portfolio, Honda motorcycles and cars, distribution strategy, pricing strategy, digital marketing, various social media platforms and promotional strategy.
Table of Contents
Introduction: Honda Motor Company Ltd
# Honda Motor Company Ltd
- Origin Country: Japan
- Founder: Soichiro Honda
- Founded: 1946
- Incorporated: 1948
- Headquarters: Minato, Tokyo, Japan
- Employees in 2023: 218,674
- Annual Revenue in 2023: 125.105 billion USD
- Net Income in 2023: 5.302 billion USD
- Market Cap in 2023: 45.47 billion USD
- Brand Value in 2023: 22.1 billion USD
The multinational conglomerate Honda Motor Company Ltd is the largest motorcycle manufacturer in the global market. The Japanese multinational company is the leading manufacturer of power equipment, motorcycles and automobiles.
In the year 2001, Honda Motor Company became the second-largest automobile manufacturer in the world and in the year 2008 Honda surpassed Chrysler as the fourth-largest automobile manufacturer in the United States.
In the year 2015 Honda Motor Company became the eighth-largest automobile manufacturer in the world and the sixth-largest automobile manufacturer in the United States. It was the first Japanese automobile manufacturer with a specific luxury brand Acura in its product portfolio.
Honda Target Market: Marketing Mix of Honda
Honda Motor Company Ltd is the leading manufacturer of Honda cars and Honda motorcycles. The Japanese multinational Corporation primarily focuses on the target market to attract customers and gain market share.
The target audience of the leading company is the middle-income age group between 30 years of age to 50 years who are looking for premium quality two-wheelers with Honda motorcycles. The Honda Motor Company also targets the upper-middle class segment of society looking for luxury bikes, sports bikes and attractive car and bike models with Honda automobiles.
In recent years the largest manufacturer producing high-quality cars and motorcycles has focused on young individuals and young families between 18 – 30 years as their new target audience eager for a quality vehicle. Honda’s access to the new target market will eventually lead to better sales and higher profits.
Honda Marketing Strategy & Marketing Mix (4Ps)
The marketing mix of Honda Motors will invest aggressively in the marketing strategy because it wants to be actively involved with the target audience in the market. Honda surpassed Chrysler to become the fourth-largest automobile manufacturer and the first Japanese automobile manufacturer in the United States and the credit goes to the business strategy that helped the brand in dealing with several major competitors like Toyota and Ford.
The Japanese automobile manufacturer, Honda Motor Company focuses on the different marketing mix elements like product innovation, price, place, digital marketing and promotional strategy to identify the different market segments in the global market, boost the brand image among the target audience and achieve desired business goals.
Honda Product Strategy: Marketing Mix of Honda
Honda Motor Company is a conglomerate associated with the manufacturing industry. The leading company is actively involved in the manufacturing of automobiles, luxury vehicles, commercial vehicles, power equipment, scooters, i-vtec engine, alternate fuel cell engines, motorcycles, water pumps, electric generators, lawn and garden equipment, outboard motors, jet engines, robotics, etc.
Honda Motor Company is the first Japanese automobile manufacturer to export 108,705 Acura and Honda models to the United States.
The Japanese multinational company Honda Motor Company is the world’s largest motorcycle manufacturer with a production of 400 million units in 2019 and the largest manufacturer in the world of internal combustion engines measured by volume. Honda Motor Company produces nearly 14 million units of internal combustion engines per year.
Honda Motor is known all over the world for its attractive car and bike models and engines. Innovative products and new techniques have driven sales figures and resulted in greater revenues. The cars have brilliant interiors, steering wheels with audio controls, comfy seats, iPod connective music system, dual airbags, internal combustion engines, independent suspension and wheelbase etc.
Products (Product Mix): Honda Marketing Strategy
The Honda Product Strategy in the marketing mix of Honda Motor focuses on the product portfolio and product offerings that will satisfy the target audience in the market. Honda Motor is a manufacturing company producing high-quality cars, motorcycles, luxury bikes, engines like the i-vtec engine and light trucks etc.
Honda Covers the following categories in its product portfolio-
Honda’s marketing strategy for the automobile segment focuses on Honda cars like luxury Sedans, SUVs, crossovers, minivans, trucks, electrified, pre-owned and future vehicles like the Prologue which is slated to arrive by 2024. The cars with amazing interiors, beautiful designs, comfy feel and high-grade safety measures are some of the best in the industry. Some of the features include smooth steering wheels, iPod connective music system, dual airbags, independent suspension and wheelbase etc.
- CIVIC LUXURY SEDANS
- ACCORD HYBRID
- HONDA CITY
Honda’s marketing strategy for the motorcycle segment focuses on touring, cruiser, sport, adventure, dual sport, scooter and off-road motorcycles. It also includes motorcycles that run on alternate fuel.
- GOLD WING TOURING MOTORCYCLE
- CBR 1000RR-R FIREBLADE SP -SUPERSPORT MOTORCYCLE
- AFRICA TWIN ADVENTURE SPORTS ES
Honda’s marketing strategy for the ATV segment focuses on REC/Utility and sport vehicles
- FOURTRAX FOREMAN 4X4
Honda’s marketing strategy for the power segment focuses on pumps, generators, sprayers, riding mowers and cultivators etc.
- HRX217VKA – LAWN MOWER
- WDP30 DIAPHRAGM PUMP
Honda’s marketing strategy for the engines segment focuses on pressure washer engines, Internal combustion engines measured by mileage, fuel cell engines, i-vtec engine, tractor engines and agricultural engines etc.
- GX / COMMERCIAL
- V-TWIN / COMMERCIAL
Honda’s marketing strategy for the accessories segment focuses on licensed products, oils, chemicals and batteries through its division Honda Access
- PRO HONDA OILS AND CHEMICALS
- GENUINE HONDA POWERSPORTS BATTERIES
Honda Financial Services
Honda’s marketing strategy for the Honda financial services segment focuses on financial tools like lease, finance, loyalty benefits, pre-approval and protection products
- VEHICLE SERVICE CONTRACTS
- GUARANTEED ASSET PROTECTION
Place Strategy in the Marketing Mix of Honda
Honda has spread its product presence to several countries with India and the United States becoming the most important markets.
During the early years, Honda Motor used three sales channels Honda Clio, Honda Verno and Honda Primo. Out of these three Honda Verno was used for sports vehicles, Honda Clio for traditional Honda cars and Honda Primo for smaller cars.
In 2006, the distribution strategy in the Honda’s marketing strategy and marketing mix was modified. Honda Motor then scrapped away the three channels Honda Clio, Honda Verno and Honda Primo and instead established Honda Cars Dealerships. Although the network was disbanded in 2006 some of the Japanese dealerships still use the channel names Honda Clio, Honda Verno and Honda Primo to market the Honda vehicles at locations in Japan.
The Honda Cars Dealerships now have the responsibility of product distribution and accessories for scooters, motorcycles and automobiles sold via Honda Access. Honda Motor offers the option of buying used cars from the company itself via Honda Auto Terrace.
In 2012, Honda Cars Small Store was launched in Japan for compact cars like Honda Fit and Honda S660 Roadster.
Place and Distribution Strategy of Honda Marketing Mix
The Honda marketing mix and marketing strategies have ensured a vast distribution strategy for the company products that do not involve middlemen and instead use the services of independent dealers. The place and distribution strategy in the Honda marketing mix focuses on a viable link between the huge manufacturing hubs and the customers through effective distribution networks.
Huge manufacturing hubs >> independent dealers >> Showrooms
The distribution networks of the company Honda Motors make sure that the authorized dealers take the vehicles from the manufacturing hubs and sell them in showrooms to the end customers.
Price: Honda’s Marketing Strategy
The price in the marketing strategies of Honda Motors is based on its target audiences and market. The company targets middle-income groups, the younger generation as well as the upper-middle-class section of society and thus its affordable prices reflect the market it is targeting.
Honda Motor offers a wide variety of products and has manufacturing hubs in strategic places to cut down on its costs. The company also faces stiff competition in the automobile industry from several major competitors. All these factors have contributed towards its pricing strategies in the market.
The base price of every product is pre-determined by the company and the authorized dealers can adjust the prices above the base price based on their calculations.
Pricing Strategy: Marketing Mix of Honda
Honda’s business strategy for the price element in the marketing mix is very clear as it wants to generate profits through large sales volume. The pricing strategies adopted by the company include
Affordable Pricing Strategy
Honda’s marketing strategy has adopted an affordable pricing policy by keeping the prices reasonable. It targets the middle-income group with affordable prices, especially in emerging economies like Thailand and India
Premium Pricing Policy
Honda Motor has adopted a premium pricing strategy for its portfolio of luxury vehicles that target the upper-income group.
Penetration Pricing Strategy
Honda’s business strategy focuses on entering new markets and for these places, the company has adopted a penetration pricing policy where it has kept product prices reasonable. This move has helped the brand gain a competitive advantage in the market.
Competitive Pricing Strategy
Honda faces stiff competition in the market from some of the major competitors like Ford and Toyota. It has adopted a competitive pricing policy where the prices are quite similar to those of rival companies.
Honda Promotional Strategy (Promotional Mix): Honda Marketing Strategies
The promotional strategy of Honda Cars includes the aggressive advertising strategy adopted by Honda Motor for all its products like Honda City, Honda CRR Bikes, sport bikes etc. Honda uses innovative marketing campaigns and slogans to boost its brand image and create brand visibility in the market.
The promotional strategy adopted by the company uses the following promotional tools in the market to advertise its products
One of the most popular forms of advertising strategy is TV advertisements. Honda’s marketing strategy focuses on digital marketing through television channels as it has a wider reach across developing and developed countries all over the world.
Honda’s advertising strategy focuses on print media for promotions by showing the ads via automobile magazines, newspapers, hoardings and billboards
Social Media Marketing
Honda’s marketing strategy focuses on digital marketing through various social media platforms. It publishes content on social media pages of various social media platforms like Facebook, Twitter, YouTube and Instagram to connect and engage with potential and existing customers.
After Sales Service
Honda offers after-sales service to its customers which includes warranty, roadside assistance, maintenance package, tyre, battery, sanitization program and value-added services
Honda sponsors sports and events as part of its advertising strategy to achieve brand visibility. The company is the official partner of the National Hockey League. Honda sponsors the golf tournament The Honda Classic and Major League Soccer. The brand offers the Honda Player of the Year and Honda Sports Award to deserving candidates every year.
Honda Motor has signed an agreement with Red Bull to provide technical assistance in engine development till the 2025 season. The Red Bull driver Sergio Perez has become the ambassador of the Honda Racing School.
Digital Campaigns – Notable Digital Marketing Campaigns
Some of the most memorable digital marketing campaigns from Honda Motor are as follows-
A Quiet Revolution
Honda has launched its ad campaign “A Quiet Revolution” with Indian actor Akshay Kumar to promote Activa 125 BSVI, the first two-wheeler from the company in the BSVI era.
You Meet the Nicest People on a Honda
The ad campaign “You Meet the Nicest People on a Honda” was shown simultaneously in both America and Japan at the beginning to point out that the motorcycles were meant for nice people also and the concept of hooligans riding the motorcycles was outdated
Key Takeaways from the Honda Marketing Mix and Marketing Strategy
The key takeaways from Honda Motors’ marketing mix and marketing strategy are
- Focus on new and advanced technologies for product innovation
- Maintain an affordable pricing strategy
- An aggressive promotional strategy suits the brand as it provides better brand visibility in the market
Liked this post? Check out the complete series on Marketing Mix