k10.Ipb Mp Chinhphamquang Assignment1 (1)

8/13/2019 k10.Ipb Mp Chinhphamquang Assignment1 (1)

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Marketing Planning

The 1stAssignmentMktp

Marketing Planning

Prepared for: Mr. Martin Ortega (BTEC Lecture)

Nguyen Trai University, Ha NoiSubmitted: 12/08/2013

Prepare by: Quang Chinh Pham

Name:Quang Chinh Pham

Date of birth: 11/10/1984

Course:20102014

SectorsStudy: Btec Program

Student Code: 1050001030


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NGUYEN TRAI UNIVERSITY

BTEC HND IN BUSINESS (MANAGEMENT)

ASSIGNMENT COVER SHEET

NAME OF STUDENT

REGISTRATION NO.

UNIT TITLE Unit 19 Marketing Planning

ASSIGNMENT TITLE Honda Motor

ASSIGNMENT NO 1 of 2NAME OF ASSESSOR

SUBMISSION DEADLINE

I, __________________________ hereby confirm that this assignment is my own work and not copiedor plagiarized from any source. I have referenced the sources from which information is obtained byme for this assignment.

________________________________ _________________________

Signature Date

----------------------------------------------------------------------------------------------------------------

FOR OFFICIAL USE


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Unit Outcomes

OutcomeEvidence for the

criteriaFeedback Assessors decision

Internal

Verification

First

attempt

Re-

work

Be able to

compile

marketing

audits

LO1

Review changing

perspectives in

marketing planning1.1

Evaluate an

organisations

capability for

planning its future

marketing activity

1.2

Examine techniques

for organisational

auditing and for

nalysing external

factors that affect

marketing planning

1.3

Cary out

organisational

auditing and

analysis of external

factors that affect

marketing planning

in a given situation

1.4

Understand

the main

barriers to

marketing

planning

LO2

Assess the main

barriers to marketing

planning2.1

Examine how

organisations may

overcome barriers to

Marketing Planning

2.2

Merit grades awarded M1 M2 M3

Distinction grades awarded D1 D2 D3


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Assignment

( ) Well-structured; Reference is done properly / should be done (if any)

Overall, youve

Areas for improvement:

ASSESSOR SIGNATURE DATE / /

NAME: ..............................................................................

(Oral feedback was also provided)

STUDENT SIGNATURE DATE / /

NAME : .............................................................................

FOR INTERNAL USE ONLY

VERIFIED YES NO

DATE : ................................................................

VERIFIED BY : ................................................................

NAME : ................................................................


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Table of Contents

Introduction............................................................................................................................................. 6

1.1 Review the changing perspective in Honda marketing planning.................................................... 7

1.2 Evaluate Honda capability for planning its future market activity.................................................. 12

The Gap analysis............................................................................................................................... 12

Capabilities........................................................................................................................................ 13

Tangible resources......................................................................................................................... 13

Intangible resources....................................................................................................................... 14

Human resources........................................................................................................................... 16

1.3 Examine technique for organizational (Honda) auditing and for analyzing external factors that

affect marketing planning...................................................................................................................... 17

Porters 5 forces analysis for Honda................................................................................................. 17

SWOT and TOWS analysis for Honda............................................................................................. 19

STEEPLED analysis for Honda........................................................................................................ 23

1.4 Carry out organizational (Honda) auditing and analysis of external factors that affecting the

marketing planning in Vietnam............................................................................................................. 25

The marketing environment.............................................................................................................. 25

Marketing strategies.......................................................................................................................... 26

Marketing system.............................................................................................................................. 27

Marketing organization..................................................................................................................... 27

Marketing functions.......................................................................................................................... 28

2.1 Assess the main barriers of marketing planning.............................................................................. 28

2.2 Examine how Honda Vietnam may overcome barriers to marketing planning............................ 30

Conclusion............................................................................................................................................. 31

Appendix............................................................................................................................................... 32

Reference List........................................................................................................................................ 33


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Introduction

Honda Motor Co., Ltd. (Honda or the company) is one of the leading manufacturers of

automobiles and motorcycles in the world. The company develops manufactures, and marketsautomobiles, motorcycles, and power products. It primarily operates in North America, Asia,

and Europe. Honda is headquartered in Tokyo, Japan and employs 179,060 people.

The company recorded revenues of JPY8, 936,867 million ($104,561.3 million) during thefinancial year ended March 2011 (FY2011), an increase of 4.2% over FY2010. The operating

profit of the company was JPY569, 775 million ($6,666.4 million) during FY2011, anincrease of 56.6% over FY2010. The net profit was JPY534,088 million ($6,248.8 million) inFY2011, an increase of 99% over FY2010.

Honda Motor (Honda) is a manufacturer of automobiles, motorcycles and power products.The company also provides a range of financial services to its customers and dealers. Hondaoperates through a global network of 383 subsidiaries and 91 affiliates all over the world.

The company operates through four business segments: automobile business, motorcyclebusiness, financial services business, and power products and others businesses.

In this report, I want to introduction about the marketing audit and the main barriers of

marketing planning for Honda in VN market


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1.1 Review the changing perspective in Honda marketing planning

Honda Motor Co., LTD is one of the leading manufacturers of automobiles and motorcyclesin the world. The company develops manufactures and market automobiles, motorcycles and

power products. It primarily operates in North America, Asia, and Europe. Honda is

headquartered in Tokyo, Japan and employs 179,060 people. But in this report I want todiscuss about Honda Motor in VN.

Honda has been in VN for over 10 years, the company has always been confidence selectedby VN consumer. The company was ranked in top 10 of Famous Brand Programmed 2010that organized by VCCI.

Honda has been active in many years. In order to understand about Honda perspective and thechanging of marketing planning during many years, as can be seen that Honda Motor Co.used the market-led marketing strategy. Honda has strong focus on research and development(R&D). It means that the company makes the product by seek to determine the customer

demand. It really focused on the market research such as what the consumers want? And howcan Honda satisfy this want?

In recent years, the VNseconomic was growing so fast and the peoples live are so improvedaccording that the demand of automobile has increased that was affected directly on thechanging perspective in Honda marketing planning in VN.

For Instance: Nowadays, the automobile is not just means of transport, but also seen as aneffective beauty item, enhance the value of user and with high feature and to save fuel that isone of the top criteria in choosing automobile. Beside that Honda has done market researchand knows exactly that exits the different in using item between north and south VN, for

example: In North VN, the users focus on status and in south VN the user focus on thefunctional.

To review the changing perspective in Honda marketing planning in VN, I will show

Marketing 1.0 vs. Marketing 2.0 and the future orientation of Honda in VN

Marketing 1.0 Marketing 2.0

Product-centric Marketing Customer-oriented Marketing

Objective Sell products Satisfy and retain the consumers

Enabling Forces Industrial Revolution Information Technology

How companies seethe market

Mass buyers with PhysicalNeeds Smarter Consumer with Mind andHeart

Key marketing

concept

Product development Differentiation

Company

marketing

guideline

Product specification Corporate and Product Positioning

Value propositions Functional Functional and Emotional

Interaction with

consumers

One-to-Many Transaction One-to-One Relationship


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In this review, I will focus on the VN automobile market. Since the latter half the 1990s, VNis a potential market in automobile industry of the world that got the attention of manyfamous automobile brand such as Toyota, Ford, Mercedes-Benz, GM, BMW, Honda

Nowadays, VN automobile market is relatively small, about 40.000products/year. VN hasonly 1 million products of all kinds. In while according to the General Statistic Office VN

economic is growing at rate 7,8%/year and the population is about 86 million people. Thoughit statistic, we can see that the number of cars products is too small and therefore VN is

potential market. According to the information of the calculations as can be seen that the GDPis about 3000$/person/year that can make explode the automobile market, in while GDP ofVN is according to General Statistic Office about 1500-2000$ in average of major city so thattake time to improving the peoples live condition. Under the agreement on reduction TaxAFTA in year 2011 brought the opportunities for developing the import products whileassembles products in the country is still developed.

To catch the opportunities for development, on March 2005, Honda VN has received officialcertification of Ministry of Planning and Investment allowing assembly and production

automobile in VN. It is importance milestone making the companys development and it haseffected directly on marketing planning of Honda VN. Honda has taken 1 year and 5 month tocomplete plant construction, agent network, sales training program, and servicesHonda

automobile manufacturing equipped machinery and equipment like Honda factories in othercountry. Honda has been actively developed products and offer to consumer the product thathave good quality and good price, save fuel and friendly to environment. It led that Honda isnot only known as product reputation motor cycle manufacturers but also the prestigeautomobile manufacture in VN market.

The Vehicle sales on Honda VN through period

Period - Year Vehicle sales (Car)

2006 1110

2007 4260

2008 5909

2009 4215

2010 3140

1/2011 465

2/2011 371

3/2011 262

Honda has used marketing 1.0 for their product-centric marketing based on 4 criteria.

Diversification of categories, products and prices on all of the market segment


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Continuous innovation in design, colors and models

Maintaining and enhance the reputation and quality of Honda products

Commitment to producing friendly product to environmental.

In VN market, Honda has 4 products for automobile market that are Honda Civic, Honda CR-

V, Honda Accord and Honda City

Models Prices (VN) Colors

Civic 1.8 M 656.000.000 Black light, pearl gray,

golden brownCivic 1.8 A 738.000.000 Black light, pearl gray,

golden brown

Civic 2.0 AT 825.000.000 Black light, pearl gray,golden brown

Civic 1.8 MT Wise 659.000.000 Black light, pearl gray,golden brown

Civic 1.8 AT Wise 741.000.000 Black light, pearl gray,golden brown


CR-V 2.4 AT 1.078.000.000 Black light, pearl gray,golden brown

Accord 3.5 (Imported) 1.710.000.000 Black light, silver gray, white

City 540.000.000 Black light, pearl gray, ivorywhite, blue stone, titan

Honda has used marketing 2.0 in their marketing strategies.Diversification products are one of effective strategy to refresh them, increase sales, expandmarket share and improve their competitiveness. Honda has launched many kind ofautomotive products that are suitable for each age group, color interesting, gender, economic

situation of each family. Therefore Honda products are always preferred to everyone and ithas a strong impression on VN consumers.

Brand image: Honda has developed famous brand in motor cycle industry in VN, Honda isalways keeping top position in this market. Honda has maintained its image and growthmarket share for automotive industry with the same logo of Honda


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Slogan: Honda has used slogan The Power of Dream to present their criteria for consumers.Honda want to bring the safety and happy in life for their consumers. In addition, Honda hasnamed for each of their product such as Honda Civic is Civilization.

The decision product quality: Honda is always focusing on the quality of product and put it as

the first priority to customer services.

Honda products are specifications and outstanding features, very durable, high safetyespecially suitable with traffic condition in VN. Moreover, along with after-sales service arethoughtful, cheap spare parts, easy to replace, and warranty that are helped Honda taking fullof Mind and Heart of VN consumers.

Honda has used strategic to support after-sale services to enhance the value of products andattract consumers. Honda has a HEAD network spread across the country, which always givescustomers the high quality products, ensuring the after-sale services

In addition, Honda also efforts in driving safety training, they used team of HEAD to work at

the line, that help them attract the consumer belief.


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Through the review in this report, as can be seen Honda has used both of marketing planningfor their motor and automobile products that are suitable for each period of development time.Honda has product quality product and good service, etc all kind of things will help them to

meet the customer needs and satisfy them. It ensure for my conclusion that Honda is market-

led marketing company, they prefer to satisfy their customer and develop R&D to make betterthe market research.

In addition, I want to discuss about the future orientation of Honda VN.

Competitive situation in the automotive industry is increasingly fierce, customer needs arechanging every day and requires increasingly difficult choices. So to survive and develop,Honda needs to explore and innovative new products.

The following companies are the major competitors of Honda Motor Co., Ltd for all sectorsuch as Passenger cars, Sports utility vehicles, Commercial vehicles, Special needs vehicles,

Utility vehiclesFiat S.p.A. Ford Motor CompanyGeneral Motors Corporation Harley-Davidson, Inc.Isuzu Motors Limited Kawasaki Heavy Industries, Ltd.Mazda Motor Corporation Mitsubishi Corporation

Nissan Motor Co., Ltd. PSA Peugeot Citroen S.A.Renault S.A. Suzuki Motor CorporationToyota Motor Corporation Volkswagen AGYamaha Motor Co., Ltd. Audi AGSubaru Hyundai Motor Co.Bajaj Auto Ltd. TVS Motor Company Limited

Mahindra & Mahindra, Ltd. Bayerische Motoren Werke AG (BMWGroup)

Hero Honda Motors Limited Porsche Automobile Holding SE

Understanding that, every year, Honda develop the R&D department and make a number ofmarket research, consult the tastes of consumers, researching products or popular products ofthe competitors, so that to design new products to meet the needs of consumers market

There are two approaches to the future orientation

Protect the past Create the future

- Update and maintaining their currentproducts- Follow the slogan Power of Dream toensure their market share and Leading the

Technology- Improving and maintaining the marketingstrategy- Follow the rule and operation efficiency- Conventional, reactive and re-engineeringcurrent process.- Using pricing and quality product for

suitable market

- Innovate new technology, development newdesign of automobile that are using convertedenergythat are friendly with

environmental.- Expand the network distribution such asHEAD, operation more event such as BE-Uand safety driving, etc that can develop the

brand image of Honda to attractive theconsumers- Creating new sources of competitiveadvantages

- By and achieve a vision of the future.


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1.2 Evaluate Honda capability for planning its future market activity

The Gap analysis

To evaluate Honda capability for planning its future market activity I will base on the Gap

analysis as one technique that can help to clear about the extent new strategies that needs toenable the company to achieve these objectives. The gap is as capability that exits betweenthe current performance levels of the company with the require (current or future)

performance of the company that can be understand under needs analysis This capability

gap is often use in wider complex transformation programmers to clear the overallorganization design.

In this report, I want to discuss about the automobile industries of Honda in VN. Honda wasknown as leading company in Motor Co. in VN. Now they want to transformation to start firstmanufacture automobile at 2005 and exploit the demand market in VN. To use the gapanalysis, Honda should focus on the following stages

Assess of the current situation The end state of achieving result of Programmed/Project

Produce the development plan outline to achieve the end state

Compare the deliver against the development plan

Evaluation of deliverables including recommendations

For instance: According to the information of Hi, ng. (2013)Honda has sale 4,05 millionall kind of motor from 1/4/2013 to 20/6/2013 achieve the growth rate by 3,7%. But Hondaforecaster that the sales is 17,4 million motor of all kinds and achieving 12,3% growth rate.That is exits the gap between current performance with the require performance in the future

of the company.


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Capabilities

As can be see that gap analysis as a strategic analysis of the capability requirement forprogrammed/ project. The capability element of organizational is really important tosustaining any change in the organization.

To understand Honda Moto I will show the resources of the company such as tangible,intangible, human to evaluate Hondas capabilities for planning its future marketing activity

Tangible resources

The first one is tangible resources. There are 2 types as financial and physical. It canunderstand under assets that are the property of company, it can be reach out and touch.

Honda Motor Co. is one of the leading manufacturers of automobile and motorcycles in theworld. In VN market, the company has developed manufactures automobile and motorcycleand power products. In VN, Honda has 2 motor manufactures and 1 automobile manufacturer.

All of them were built in Phuc Thang, Phuc Yen, Vinh Phuc

The company also provides a range of financial services to its customers and dealers. Hondaoperates through a global network of 383 subsidiaries and 91 affiliates all over the world. The


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company operates through four business segments: automobile business, motorcycle business,financial services business, and power products and others businesses. The company has asrobust production and sales network

According to the information in scenario, as can be seen the financial of Honda in recorded

revenues of JPY8, 936,867 million ($104,561.3 million) during the financial year endedMarch 2011 (FY2011), an increase of 4.2% over FY2010. The operating profit of thecompany was JPY569, 775 million ($6,666.4 million) during FY2011, an increase of 56.6%over FY2010. The net profit was JPY534,088 million ($6,248.8 million) in FY2011, anincrease of 99% over FY2010.

It shows that Honda has powerful physical resources and good growth rate in revenue peryear. Honda has witnessed an increase in its profits and margins in the last few years. Thecompany recorded an operating profit of JPY569,775 million (approximately $6,666.4million) compared to operating profits of JPY363,775 million (approximately $4,256.2million) and JPY189,643 million (approximately $2,218.8 million) in FY2010 and FY2009,

respectively. In FY2011, the operating income increased from the previous fiscal yearprimarily due to an increase in income attributable to increased net sales and model mix, adecrease in fixed costs per unit as a result of production increase, and other cost reductionother. In addition, the company's operating margin increased from 1.9% in FY2009 to 6.4% inFY2011.

Similarly, Hondas net profit in FY2011 increased to JPY534,088 million (approximately$6,248.8 million) from net profit of JPY137,005 million (approximately $1,603 million) inFY2009. Its net margin increased from 1.4% in FY2009 to 6% in FY2011. Increasingoperating efficiency reflects the efficient cost management and sound decision making, whichcould be leveraged to fund growth plans in the future.

It is ensuring the efficiency performance of Honda in VN. The company can use the resourcefor update and maintaining their activities and for planning programmer/project for its futuresuch as development their network distribution, operate new manufactures or innovation new

products, etc.

The company is focused on increasing its presence through new production plants andincreasing existing production capacities.

Honda has strong focus on R&D department and it will take so much money and with the

good financial situation that can ensure for their objective in development R&DThat can help Honda VN making more competitive advantage to development and expand inmarket, through it taking more market share.

Intangible resources

The second, I want to show the intangible resources of Honda. Intangible assets are the long-term resources of the company without physical existence. It can be brand/reputation andculture/values

Brand/reputation

Honda Motor Co., Ltd. (Honda or the company) is one of the leading manufacturers of

automobiles and motorcycles in the world. In VN Honda has been developed for long time


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with motorcycle products. Honda brand is too famous brand in mind and heart of VNsconsumer, talking about motorcycle, all of Vietnamese think about Honda. Nowadays, Hondadevelop strongly in automobile industry and gradually growth their market share and take the

belief of VN consumer with good product, durable, easily replaced part and cheap.

Honda has a strong brand image and it is one of the most popular and desirable brands in theworld.For instance, in 2011, the annual BrandZ Top 100 survey conducted by market research firmMillward Brown ranked Honda brand fourth in the automotive brands with a value ofapproximately $14.2 billion and an overall ranking of 56 on the top 100 list.

Honda has really strong brand images. It significant competitive advantage and helps thecompany to register higher sales growth in domestic, as well as in international markets. Itmay help the company determine the price of their product in market that the company actives

Honda has very good brand and image in VN market for long time. It is strong competitive

advantage for Honda to development and expands their company in VN market. It is theperfect result for taking effort in long time in VN market of Honda. It leads the project orprogrammer planning in future of Honda that can take potential to achieve good result.

Moreover, as of March 2011, the company owned more than 16,400 patents in Japan andmore than 24,600 patents abroad. Honda also had applications pending for more than 14,800

patents in Japan and for more than 17,500 patents abroad. Strong focus on R&D andengineering enable the company to develop innovative products, which allow it to remain atthe forefront of its respective businesses and differentiate its offerings in a highly competitivemarket.

Culture/ Values

Nowadays, using automobiles are not only transport vehicles but also the style, personalityand status of the users.

In VN using vehicle culture are different between north and south. While north VN isfocusing on status and south VN focus on the functional. So the development strategy isdiversification of product with many models to suitable for any age, income, gender and classthat is in the right direction for Honda. That can satisfy the culture and values of the marketthat Honda is in active.

Beside that Honda has strongly focus con R&D department that can help them to meet theneed and market trends in VN timely through market research.

One of the best planning of Honda is development the service and after-sales service. Usinglarge network distribution such as HEAD Honda can warranty and ensuring their product in

best situation, take the feedback of consumer to improving their service.For instance: Honda is always operating the new event such as Be-U and safety driving

program for their customers. Through that can marketing their product and help theconsumers know better about the product and the values of product will be increased

Honda is not focus only on event, they also open training program for their employees tocreate good working condition for them, then the employees will be good treat they can make


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better their work and follow the rule of the company to bring product to consumer such asslogan Power of Dream

In real, I have visit the Honda manufacture and I can see that their employees has goodemotion and no stress with their work, because Honda is always hear and clear the feedback

of their employees. In the company there is good communication.

Honda has ensured the benefit of employees that is the good condition for their work toensure the benefit for their costumer. Such as sale department behaved with customer friendlyand caring, that ensure for their objective good after-sales service.

Honda has develops right direction focusing on service, because in period, the modelsproduct, price or quality quite the same with other competitors.

Human resources

It is the most important resource for any organization, that can be determine as knowledge,skill and motivation

Knowledge

Honda has quality in select process to create good criteria, the human department will set upthe requirement to make criteria and recruit staff for the company. The employees must knowexactly their position responsibility and what, how they can work done. The employees will

be joined in training program in period time for improving their knowledge. Moreover, Hondamakes often the survey to meet the need and clear the feedback of their employees, through itto ensure their business efficiency.

Skill

It is for sure that employees must have skill to work in company. The employees of eachdepartment will have good skill for their work. Through survey and control, Honda can knowtheir employees skill situation and make the plan to improve them. For instance: Honda canopen training program course for their employees and take the feedback of employees toknow what they need to work better. Honda dont use multi-tasking employees, they requirethe employees that know exactly their responsibilities for each position, and Honda want touse the skilled worker.

Motivation and capacity for collaboration

Honda has used survey and taking feedback from employees about their work, through it canhelp them to improve working condition for their employees. Create a chance for employeesto achieve their career path, hear their comment to increase the responsibilities of employees,

because they can join in the plan of company through it improve the responsibility of theirwork to create better business efficiency. Honda can create event or promotion bonus for theemployees those have good working result, through it can motivate them. Making event forimproving communication between employees in company, through it help them take betterworking condition and get rid of stress. Through the communication, Honda can improve the

capacity for the collaboration such as team work, informal-formal group for their employeesensuring the work of manufactures or project or something needs group to be done.


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Honda is production-line manufactures therefore the capacity for collaboration is reallyimportant because each stage has been bound together. For instance: For testing process, eachstage must control against the work of latest stages to ensure the quality of product.

1.3 Examine technique for organizational (Honda) auditing and for analyzing externalfactors that affect marketing planning

There are many methods and technique to examine organization auditing and analyzingexternal factors that affect marketing planning of Honda, but in this report, I will use 3methods that can match suitable for Honda Motor. There are SWOT and TOWS analysis,Poster 5 forces analysis and STEEPELED analysis

Porters 5 forces analysis for Honda

Porters5 forces

Definition - It is a tool using to analyze the industry and business

development policy. It refers to analysis the profitability of thecompany.

Pros & Cons - Advantages:It is simple tool but powerful to show and help tounderstand where the power of company lies in a businesssituation.- Help to know strengths of current competitive situation,

position.- It almost first tool prepare to do SWOT analysis-Disadvantages: It is not flexible in some situation- it skips the important strategic

Threat of new entrants - High risk

- VN's economy developed rapidly, and potential. After joiningWTO, VN increasingly attracting investors and businesses


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involved in the development- In especially, business of Taiwan and China has joined VNautomobile industry with cheap product, middle quality, butsuitable for consumer income. Beside that base on the consumerculture and social the development of import product of famous

brand in over the world expand very fast.- Moreover, VN want to attract the investor, so the barrier fornew entrant is more easily.- All of the factors have effect directly on business activities ofHonda. Honda has strong brand image and competitive advantageswith diversification product, quality, good price and service thatare must focusing to develop and improve.- Honda has been issued to operate manufacture and assemble

parts of automobile is big advantage for competitive.

Determinants of

Supplier Power

- Honda has many strong competitors in VN automobile market

such as BME, Hyundai, Nissan, and Fordbut the risk is low.BMW, Mercedes, etcis luxury automobile with high price,

good quality, but parts and service is not really good in VN,because they have not manufacture and assembly parts. Othercompetitor has not enough power to competitive with Honda,

because Honda has really strong brand image, and advantages forusers cheap replaced part, good service, high quality with suitable

price.Honda doesnt need supplier because they can produce all of

part and needs for themselves with their manufacturing in VN.

Rivalry among existing

firms

- VN market has many automobile company, that have active forlong time such as Hyundai, Toyota, BMW, Nissan,they havecertain market share in some kind of automobile. They havemanufacture and assembly production line same Honda in VN.High risk for Honda to competitive with them in VN market.They can attract the consumer with low price product with goodquality too Honda should be focus on their service and aftersale service, promotion, event, etc to marketing their product

better, Using R&D to develop and maintaining their product withnew technology such project to innovate hybrid and electricitytechnologies.

Determinants of buyerpower - In world crisis situation and middle income of VN, that stilldoesnt explode automobile market. The customer will focus on

the low price product. Therefore, Honda should improve theirlow price product such as Yaris, Civic, in especially their new

product Honda city to meet the need of customer.- The power of buyer can effect directly on sale revenue, profitand market share of HondaTherefore it is high risk and Hondamust focus on this problem.- Honda is strong brand image in VN, they can control and takecare about their customer to keep them by the company withgood development strategy that still make by R&D department

that are hybrid and electric technologies that help the customeruse product friendly with environmental, save fuel, etc

Threat of substitute - It is really low risk for Honda. VN customers primarily used


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products motorcycles, and just started moving used automobile, withterrain and infrastructure in VN, motor transport is still primarily,for the motorcycle market Honda is always priority number 1

SWOT and TOWS analysis for Honda

Honda VN SWOT Matrix Strength Weaknesses

Internal analysis - Strong brand imagethat can give significantcompetitive

advantage and helpsthe company toregister higher salesgrowth in domestic,as well as ininternational markets- Diverse productline for each gender,age, class, incomeand power product- The company hasas robust productionand sales network.For instance: HondaVN HEAD >Agent Retail Consumers- Honda hasautomobilemanufacture in VN.- The extensive

production anddistribution networkenhances the globalreach of Honda.- Honda has strongfocus on researchand development(R&D) to ensuringmaintaining andupdate, innovationtheir product through

market researchwhich allows it toremain at the

- Honda is largecompany anddevelop really fast inautomobile industry

in VN, but Hondahas now only 1automobilemanufacturers, inwhile the salerevenues and profitof company isincreasing, thenumber of sales isalways grow up,therefore Hondacannot avoid the

problem in theirproduct.It can lead to reducethe brand image ofHonda, because theirslogan is "Power ofDream". Honda willknow about quality

product and good

price, service...theproblem can effectdirectly on businessefficiency, Hondashould determine andsolve the problem asfast as possible. Suchas: Built moremanufacturers inVN, open training

program for

employees, improvequality controltechnique, etc...


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External analysis

forefront of itsrespective businessesand differentiate itsofferings in a highlycompetitive market.

- The automobilebusiness segmentdevelopstechnologies that

provide advancedsafety performanceand addressenvironment issues- Strongly service insale and after-salesthat can improve the

belief and attractiveVNs consumers Sales revenuesand profit margin ofHonda automobile isincreasing everyyear. It helpscompany ensuringany marketing

planning,programmer/ project

- For instance: inMay 2011, thecompany recalled833,000 vehicles fora possible airbag

defect. In July 2011,Honda recalled200,000 passengercars globally due todefective engine

parts. The recallcovered the Stream,Civic and Crossroadmodels The company haswitnessed a decline

in its sales in Europein the last few years A continuousdecline in thissegment could put

pressure on the profitmaking segments andon the overallrevenues of Honda.

Opportunities - Honda is focusing onincreasing its new

production plants andincreasing existing

production capacitiesFor instance: in July 2011,Honda Vietnam (HVN), thecompanys motorcycle and

automobile sales andproduction joint venture in

Vietnam, announced plansto build a third motorcycleproduction plant and expandits total annual productioncapacity by 500,000 units toaccommodate consistent andrapidly growing demand ofthe motorcycle market inVietnam. The addition ofthe third plant will furtherincrease HVNs production

capacity to 2.5 million units.- Building new production

plants in other country can

- Honda has goodbrand image andfinancial situationthat can help them toachieve theobjectives that createnew production

plants in othercountries- In addition, Honda

has enough workingcapital follow growrate and increasingin sale revenues toensure thedevelopment ofR&D department.Through it can helpthem to get as goodas possible in projectinnovate hybrid and

electric technologies.It can createcompetitive

- Building newproduction plants inVN can help Hondaclear the problemwith number of

product and focusingon quality of product.- Making producing

product in domesticmarket, reduces

imported productfrom other countrywill help Hondacontrol the price,

better test, serviceand warranty, inespecially reduce thecost and increasingtheir revenueIt can help Hondasolve the problem in

weaknesses thatdefect problem in

part of Honda


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help the company to counterthe loss caused due torapidly appreciatingJapanese Yen- VN is potential market and

quiet development indemand to use automobile.In addition the demands ofusing new energy that arefriendly with environmentalincreasing and save fuel, theentire element are markettrends.Honda has a strong focuson developing hybrid andelectric technologies.

The company is also thelargest manufacturer ofmotorcycles in the world.Hondas unit sales on a

consolidated basis in Asiawere approximately 9.2million, representing a 21%market share. Thecompanys strong presence

and the positive outlook forthe motorcycles market inAsia Pacific provides it anopportunity to furtherincrease its customer baseand revenues in future.

advantages forHonda ensuring theleadingmanufacturing in theworld

- Honda shouldinnovate new

product with newtechnology that ismarket trend such assave fuel, friendlywith environmental,etcto ensuring

their leadingmanufacturing inVN market in future,

because VN ispotential market anddevelop very fast.

products avoid thereducing image

brand, cost andincreasing profit forHonda.

Threats - There are many strongcompetitors that Hondamust face in VN marketsuch as imported products,BMW, Mercedes, Toyota,

Nissan, etc. It can effect to

sale revenue and marketshare of Honda, Honda maybe improved their quality ofproduct or reduce theirprice, increased inventory,which may result in afurther downward price

pressure and adverselyimpact the company'sfinancial condition andresults of operations

- In 2010, the emissionregulations were furthertightened. The EPA and the

- However, throughcompetition, Hondacan grow andconfirmed its

position in VNconsumer market by

developing andoffering superiorproducts. Thevictory of strongcompetitors can helpHonda expand moremarket share and

brand image

Honda focus onR&D department to

develop the hybridand electrictechnology that can

- The appearance ofdefective products onthe market is theweakness forcompetitorsexploiting. It can

give bad effect forHonda.- Natural disasterscan affect Honda's

production process, itmay affect productquality or time tocomplete the contractthat can make theopportunity forcompetitor

- If Honda does nothave good

production line,


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NHTSA issued a joint finalrule to reduce the emissionof greenhouse gases from

passenger cars, light-dutytrucks and medium-duty

passenger vehicles formodel years 2012 through2016 The emissionstandards adopted acrossvarious regions can result inadditional costs for productdevelopment, testing andmanufacturing operations ofHonda.- Honda primarily operatesin Japan which is a highest

earthquake prone region inthe worldthe company issubject to disruption of

production due to naturaldisasters. Although itdoesnt effect on VNmarket, but it effect onHonda business efficiency,sales revenue and brandimage, and competitiveadvantages of the company.

help Honda avoidingthe EPA and

NHTSA issued toreduce the cost for

product

development, testingand manufacturingoperations of Honda.

technologiesreducing emissions,the products meet thequality standards ofthe EPA and NHTSA

Issued follow, it willseriously affect thewhole company

Definition - The SWOT and TOWS analysis helps sort information of the companysystems to get a better overview of how we can combine our strengths andopportunities in order to counter possible future weaknesses and threats.Through it can help the company has an overview about the marketsituation where the company actives

Pros & Cons - Advantages: SWOT and TOWS analysis is necessary for Honda companyto know their strengths, weaknesses in business activities to developstrengths and improving the weaknesses. Besides that the company cananalysis their opportunities to achieve their objectives and make completiveadvantages, prevent the threat to avoid loss and bad situation.

- SWOT and TOWS analysis dont need waste lot of money and easy to doit. Everyone can use the information of the method. It is very important tomonitor and development the trend on the market of Honda company.- Disadvantages: SWOT and TOWS analysis is a subjective processanalysis considers data that is available at a particular moment and may

become outdated quickly. So the method may lead to business decisionsbased on unreliable or irrelevant data.- The method may waste time, because it must be continuously updated.


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STEEPLED analysis for Honda

STEEPLED

Definition - STEEPLED analysis is used to scan of an organizations externalenvironment that will be particular reference to the future and any

changes that may come about.Pros & Cons - Pros.: To identify the factors that may effect on the customer,

products, services, profitability, market, etcof the company- Provides a simple and easy-to-use framework for analysis.- Enables to assess implications of entering new markets bothnationally and globally.- Cons.: It wastes time and high cost to continuously update, themarket research must conduct and scan the large external informationand difficult. Honda want to make market research, marketing planning thatshould use STEEPLED analysis to meet the need of external

information of market which Honda will active. STEEPLED analysiscan help Honda overview the potential of market and whatimplication on the market.

SocialDemographicchangeFamily and life styleEducation levelHealthLife expectancyChanges in valuesand cultureSocial mobilityAttitudes towardslife and leisureReligion attitudes

- VN has about 86 million populations. VN has diverse culture andlife style. For example: North VN focus on status product, but insouth VN they focus on functional product.- Honda want to develop automobile industry in VN market, they has

been attend in social factor, because they make many kind of productwith many models that can satisfy any ages, income, gender and lifestyle for VN consumers.- For VN consumer the automobile is not only transport vehicle butalso to present life style, personality, class and value of userstherefore Honda has been made product diversification- Living conditions is Increasingly, it were followed by the currentdemand for the using automobile of Vietnamese family All of the information show that VN is potential market fordeveloping Honda automobile industry

TechnologicalSpeed of change intechnologyComputerization

CommunicationsIndustrial processMaterialsTransportMedical Innovation

- Honda has built production and assembly manufacture in VN. Thefactories have been equipped same technologies and equipment asother Honda factories in over the world.- Honda has been known as automobile manufacture with quality

product reputation in VN market-- Honda has strong focus on R&D department to maintaining andupdates their product. In addition Honda has been operate the projectto develop hybrid and electric technologies for their product that canhelp to save fuel, friendly with environmental.- The company has as robust production and sales network.For instance: Honda VNHEAD> AgentRetailConsumers- Honda product can take replaced parts easy and cheap, and theconsumer will be good in sale and after-sale servicesHonda has strong foundation, innovative technology to satisfy thecustomer demand, so Honda will develop and expand their market

share as well as consumer confidence. through this to ensure theirleading manufacturing in this industry

Economic - According to the General Statistic Office, VN has quite fast


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developing, VN has reached GDP grow rate by 7,87% in FY2013compare with FY 2012 is only by 7,36%. GDP is about3000$/person/year that can make explode the automobile market, butnow in VN GDP is only in average 1500-2000$/year.- The income of Vietnamese can dividend by low income: 100-

200$/month, Middle Income: 200-300$/months and high income ismore than 300$/month. In while Honda is producing diversification

product that can match for all of income class, but now in world crisissituation and the devaluation of the currency has been affected onmarketing planning of Honda.Honda is focusing on develop low price product that can satisfy allof class income such as Honda City product with price only about500.000.000 it is suitable price for any family in VN and that cancreate competitive advantage for Honda.

EnvironmentalEcological

Customer valuesMarket valuesGlobal factorStakeholders/Investor valuesManagement styleOrganization culture

- Honda developed automobile industry in Vietnam market, need tocomply with regulations on environmental protection, understanding

the needs of consumer, vehicles using to save fuel, safe and friendlywith environmental.- VN has quite complex terrain requires of Honda products have highmobility, besides that air pollution, rain, extreme weather conditionsalso affect needs of consumers for automotive products.- Honda captures this element that should have developedmanufacturing and assembly facilities in VN to meet the unexpectedelement to their product, it is the major competitive advantages ofHonda in VN market.- Honda has strong brand image in VN market and always take themarket research then they have known exactly that service factor isvery important with VN consumer, therefore they have develop theservice network and consumer card very good.- Honda open the manufacture in VN they can use the humanresources in VN with cheap and open training program to recruitskilled work for producing quality product with low cost, through candetermine the low price for consumer in economic situation toincrease sale revenues and expand market share.

PoliticalTax and Policy

- Honda's production has been a huge impacted by the VN political.At VN import duty for cars is very high around 200%, however theimported products are still popular because of cultural of VN

consumers focusing on product quality and status of user. So is Hondais foreign companies of Japan, with assembly plants and production inVN, they still need to focus on product quality to enhancecompetitiveness and without import duty is strong competition forcompanies like Honda. Moreover the import duty of complete partsmust be tax 30-40%, in while parts that will be complete in domestictaxing only 20-25%- The VNs tax is not deeply concerned; The company is supported bythe government that will be the preferential rate. Other hand, Honda isa Japanese company, while VN received a lot of help from Japan,especially ODA bailout, so Japanese firms have a lot of incentives in

VN policy It is the foundation and growth factors beneficial to Honda in theVN


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Legal

EnvironmentregulationsEmployment lawConsumer

protection

- Honda VN is inherited Honda's Japanese technology, so it mustmeet the criteria of intellectual property law, copyright law in the

process of technology transfer.- Honda VN products to ensure the regulations on environmentalsafety. For example, Honda has built in their manufacture the refinery

wastewater system, that is one of the true legal action.- When used in the human resources market VN, Honda needs to signcontracts with their employees and ensure compliance with labor lawsof VN- Business Process of Honda VN must ensure the protection ofconsumers' rights, such as the service, after sale service and warranty

Ethical - Honda must ensure with ethical standards such as safety and health,respect for human right, business transactions, communication,relationships with politics and administration, etc...- For example: Honda also actively participate in cultural, social

programs, such as U21 football tournament, Sao Mai Diem Hen, Con

duong am nhac, etc ...Through this method may help Honda increase awareness andfriendly of consumers to the company

Demographic - Vietnam is relatively young population country and 86 millionpopulations. It is forecasting after 10 years, the Vietnam market willincrease by 17 million consumers. 35% of the populationconcentrated in city and major city that are HN and HCM. Moreoverthe population is moving from rural to urban fast increase. ThereforeVN is really potential market.- North VN focus on status, south VN focus on functional product- Automobile product is high price and must need less middle incomeconsumer, it mean they must have income and more than 18 years old

1.4 Carry out organizational (Honda) auditing and analysis of external factors that

affecting the marketing planning in Vietnam

To carry out Honda auditing and analysis of external factors that affecting the marketingplanning in VN, I want to focus on marketing audit that include the follow factors

Macro marketing environment

Micro marketing environment Marketing strategies

Marketing organization

Marketing function

The marketing environment

Microis must follow some question. What are the Hondas major markets and what isthe segmentation of these markets? What are the future prospects of each marketsegment?

According to the information I have mentioned above in 1.3 using SWOT and TOWS andPorters 5 forces analysis for Honda that have discuss clear about this section.


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For example: Honda want to develop in automobile industries in VN market, an innovate thehybrid and electric technologies to achieve their objective and to make product high quality,low cost, good price, save fuel and friendly with environmental.

Macro is according to the information I have discuss in STEEPLED analysis in 1.3 in

this report can make clear to this section, for example the significant developments inHonda actives environment such as economic, political changes, population or socialchanges, etc

Marketing strategies

According to the 1.0 in this report, Honda used marketing strategy 1.0 with 3 kinds ofautomobile that are CR-V, Civic and Accord. In this Accord are highest price, then CR-V andCivic, with high quality and service. After issuing to operate automobile manufacture andassembly production they have changed their marketing strategies to product many models ofeach kind of product to achieve objectives diversification products with more choice in price

and other functional for their customers.Models Prices (VN) Colors

Civic 1.8 M 656.000.000 Black light, pearl gray,golden brown

Civic 1.8 A 738.000.000 Black light, pearl gray,golden brown

Civic 2.0 AT 825.000.000 Black light, pearl gray,golden brown

Civic 1.8 MT Wise 659.000.000 Black light, pearl gray,golden brown



CR-V 2.4 AT 1.078.000.000 Black light, pearl gray,golden brown

Accord 3.5 (Imported) 1.710.000.000 Black light, silver gray, white

City 540.000.000 Black light, pearl gray, ivorywhite, blue stone, titan

Honda must competitive with many strong competitors such as Hyundai, Nissan, BMW,etcThey have product in any segmentation that Honda was active, their product with good

price and good quality and gradually attract the consumer. Honda has been produce manymodel for each kind of product such as Civic 1.8 AT, MT or 2.0 in many color to satisfy theircustomer, but the marketing strategies in product-centric was useful. Therefore Honda haschanged focus on customer demand.

Honda want to satisfy their customer needs, safety, save fuel and friendly with environmental.Developing their network distribution such as HEAD in overall VN can help Honda makemarket research to meet any change of market trend in each period of time and take their

product to customer, taking care about of them.Honda focus on produce product with low price, high quality, durable, cheap and easy toreplaced parts, because they can make it in VN with their manufacture use high technologies

of Honda Japan.


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Honda has strong focus on development R&D department to innovate new product withespecially technologies such as hybrid and electric that can help the users to save fuel, safetyand friendly with environment.In world crisis and bad economic situation, Honda has good marketing strategies to developtheir business. In FY2013, they present new product Honda City with low price, buts still

good in each factors that can attract the consumer in VN market.They operate the event, driving safety programmer, and BE-U or join in social, cultureactivities of VN to make better closely with consumers.

Honda improves the service and after sale service to take care their customer in this period oftime is right direction because there is no more different between many kinds of product. Butin VN, the consumer is so interesting in service and after-sale service or warranty, economiccondition is too advantages competitive for Honda, because their parts are easy to replacedand cheap

Marketing system

Honda is multinational company and has been active for long time in VN market, Honda hasstrong infrastructure, skilled workers, experience management that has long time active in VNmarket. In addition the company is focused on market research. So, we can assess that Hondahas full Honda power and human resources to be able to control and build good marketingsystem.

Using experience and incentives from VN's government for the Japanese company, Hondadoes not have any difficulties to any factors such as ethic, political or legal in VN market.

Honda can use supplier, customers, media and company department to make the marketing

organization better.

Honda has wide network distribution such as HeadAgentRetailConsumer, stronglyR&D, good information market research, strong brand image in mind and heart of VNconsumerall of the factors can help Honda crate good marketing planning and create goodmarketing system. Using experience human resource, skilled worker, management to controland develop the marketing system, it really not problem for Honda Co.

Marketing organization

Good marketing planning and marketing system need to be organized to achieve outstandingperformance. According to the review in 1.1 and assess capacity in 1.2 in this report thatensure Honda has good structural capability to implement their marketing plan.

For example: Strongly R&D department can make good product with good detail satisfycustomer and objective of Honda. Honda strongly focus on market research that can takeenough timely, correctly data to create information for marketing. Wide network distributionsthat can help Honda make the marketing plan rapidly. But Honda is large company, theyneed focus on communication in each stage and overall their system to ensure the marketorganization to avoid the cost and waste time.


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Marketing functions

It is a review of the effectiveness of each element of the mix such as advertising, salepromotion and activities

Before produce marketing planning Honda should make the market research to ensure thecriteria and requirement of the company such as price and sale level that should be made forexample: supply and demand, customer attitude, the use of temporary price reduction,etcThe employees have responsibility to get the correctly information to ensure the plan orthe market.

A review of the state of each individual product (e.g. market health) and of the product mix asa whole should be made. Honda should focus on detail and characteristic of their product tocreate clearly overview for their customer

A critical analysis of the distribution system should be made, with a view to finding

improvement. Although Honda has wide distribution network in over VN market, they mustchoose suitable market plan for each geographic segment. For instance: Honda markets their

product in North VN, they should be focus on the status of product and in South VN theymust focus on function of product.

According to the information that have mentioned above Honda can see the advantages of amarketing audit that should reduce the need for crisis management, identify the informationneeds and forces a formal process for people thinking.

2.1 Assess the main barriers of marketing planning

There is no perfect marketing plan for any company, Even in quite large and success fullorganizations that include some claim to be market or customer oriented. The marketing

planning process is of limited effectiveness. There are number of reasons or barrier for this

Confusing marketing tactics and strategy

Isolating the marketing function

Confusing marketing function with concept

Organizational barrier

Lack of in-depth analysis

Confusion between process and output

Lack of knowledge and skills Failure to priorities objectives

Hostile corporate culture

According to the scenario, Honda has some barriers of marketing planning

Barriers Situation Case Cause

Confusing marketing

tactics and strategy

The price of productsbetween manufacturersand authorized dealersis too much differencethat causes damage formany consumers. Andone of the famous

- Relationshipbetween HEAD andHonda VN is therelationship

between theindependent

business partner

- The VN consumerhas wrongunderstand aboutthe relationships ofHEAD and HondaVN because theconfusing


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2.2 Examine how Honda Vietnam may overcome barriers to marketing planning

Barriers Overcome barriers

Lack of knowledge and skill - Recruit skilled-workers, operating training program todevelopment and improve their skill and knowledge of

employees.- Use control and testing system in production process toensure the quality of product.- Using experience management to monitor the businessactivity

Confusion between process

and output

- Control and testing the raw material, spare parts. Theemployees must take more responsibilities for their work- Searching for more suppliers to ensure the quality of

product such as airbag

Confusing marketing tactics

and strategy

- Honda should be set up long-term development strategiesand make it clearly overview for their consumer to avoid

the mistake of the Honda organizational such as in this casethere is no uniformity of price, although the VN consumerunderstand that HEAD is belong to Honda VN- Clearly information about the marketing tactic andstrategy in internal organization


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Conclusion

In this report, I have shown and discuss to clear overview about the marketing audit of HondaVN in automobile industry. It solve the problem follow

Review changing perspectives in marketing planning Evaluate an organisations capability for planning its future marketing activity

Examine techniques for organisational auditing and for nalysing external factors thataffect marketing planning

Cary out organizational auditing and analysis of external factors that affect marketingplanning in a given situation

I have mentioned and give the conclusion that Honda has strong brand image in VN marketand big advantage competitive to develop and expand their company in automobile industry

In addition, I will show the barriers of marketing planning in overview and some barrier and

solve method for Honda VN situation


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Appendix

Slide


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Reference List

Hi, ng. (2013).Honda bn 4,05 triu xe trong qu kinh doanh I/2013.Available:http://www.baomoi.com/Honda-ban-405-trieu-xe-trong-qui-kinh-doanh-I2013/145/11638899.epi. Last accessed 11th Aug 2013.

General Statistic Office. Available:http://www.gso.gov.vn.Last accessed 11th Aug 2013.

Hondavn.com. Last accessed 11th Aug 2013
http://www.gso.gov.vn/http://www.gso.gov.vn/http://www.gso.gov.vn/http://www.gso.gov.vn/

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