Assignment Cover Sheet

Subject Code: Mark101

Subject Name: Marketing
Submission Type: Assignment
Assignment Title: Final Report
Student Name: Amna (5722913), Savita (5933328), Syeda Aisha (5991122), Hasan , Jetin Jacob

Student Phone/Mobile No. Pon Savita (0557788241)

Student E-mail: psc188@uowmail.edu.au
Lecturer Name: Dr. Nermeen Mustafa
Due Date: 6 December, 2017
Date Submitted: 5 December, 2017

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Subject: Marketing Assignment Title: Final report
Student Name: Student Number:
Due Date: 6 December, 2017 Date Submitted: 5 December 2017
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Student Assignment Receipt (To be filled in and retained by Student upon submission of assignment)
Subject: Marketing Assignment Title: Final Report
Student Name: Student Number:
Due Date: 6 December, 2017 Date Submitted: 5 December, 2017
Signature of Lecturer

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Group Members
Amna Abulfazl Bidaryamchi (5722913)
Submitted to: Ms. Vidhi Sharma
Syeda Aisha Mohsin (5991122) Date of submission: 6 December
Pon Savita (5933328) 2017
Hasan Ahmed. Siddiqi (4936371) 2
Jetin
Executive summary
Honda is a public multinational corporation headquartered in Tokyo, Japan.
Honda is driven by its passion to manufacture automobiles accommodating the
characteristics of different individuals in the society and providing them with the “joy of
expanding their life’s potential.” Honda was the first company to produce cycles with
engines in 1946. It is also known to have developed the world’s first car navigation
system in 1981. It has been the largest motorcycle manufacturer since 1959. Honda has
also manufactured Honda aircrafts with increased aerodynamics and fuel efficiency.
Honda’s fundamental belief lies in ‘respect for the individual and the environment.’ It has
ceaselessly strived to create automobiles that are environment friendly, safe and
secure. This report has been commissioned to improve the quality of air in the near
future and taper the number of accidents caused, prominent reason being drunk and
drive. This report has proposed to initiate a vehicle “Elmia”, whose engine turns off if the
driver is found to be under the influence of alcohol using a Breathalyzer and
furthermore, minimize the harmful emissions such as carbon monoxide, nitrogen oxide
etc discharged into the atmosphere. Honda enjoys its major share in the US market.
Unfortunately, nearly 30 people in the US die everyday due to drunk driving. The
proposed vehicle thereby can be a great opportunity to reduce the number of deaths
caused due to drunk and drive and will definitely boost revenue and support the
government in reducing accident related deaths. This novel innovation by Honda will
also enable it to withstand direct competition from Toyota, Ford, Volkswagen and
Hyundai, and indirect competition from Tesla and Google, which have started
manufacturing self driving cars thus threatening the traditional automotive industry.
Honda aims to advance automobiles at a competitive price meeting the expectations of
middle class to higher income population. The proposal of this vehicle is also estimated
to increase its revenue by $3 billion.

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Table of Contents

1. Introduction ....................................................................................................................................... 5

2. PEST and SWOT analysis ................................................................................................................ 6

2.1 Strengths......................................................................................................................................................... 6
2.2 Weaknesses.................................................................................................................................................... 6
2.3 Opportunities ................................................................................................................................................ 7
2.4 Threats ............................................................................................................................................................ 7

3. Consumer Analysis .......................................................................................................................... 8

3.1 Psychological parameters ........................................................................................................................... 8
3.2 Profile Parameters ....................................................................................................................................... 9
3.3 Behavioral parameters ............................................................................................................................. 10
3.4 Maslow hierarchy of needs ..................................................................................................................... 11

4. Competitive Analysis ..................................................................................................................... 11

6. Pricing................................................................................................................................................. 13

7. Place .................................................................................................................................................... 15

8. Promotion ......................................................................................................................................... 16

9. Timing and Budget ......................................................................................................................... 17

Conclusion ............................................................................................................................................. 18

References ............................................................................................................................................. 19

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1. Introduction
This report is designed to reduce air pollution and the levels of accidents in the country
caused by drunk and drive over the next three years. The burning issue encircling us
within its evil clutches is air pollution. Vehicles, a major benefactor of air pollution,
release carbon monoxide, nitrogen oxide and other poisonous gases into the
atmosphere. Carbon monoxide on combustion gets oxidized to form carbon dioxide,
which is a greenhouse gas thus elevating global warming. Nowadays, it is easy to buy
luxuries such as Ipads, tablets and laptops for the younger generation but it has now
become unfeasible and impractical to breathe fresh air. Furthermore, drunk and drive
has become a major cause for several horrific accidents. If this indisposition continues
with no abate; one can never imagine how the world would be in the subsequent future.
The increasing vehicles have become a trend, which is expected to continue for a
foreseeable period of time. Under these circumstances, Honda, a Japanese public
manufacturing corporation, has proposed to manufacture a car “Elmia”, which reduces
the amount of toxics released and further prevents accidents by switching off the engine
automatically once it detects that the driver is under the influence of alcohol using a
breathalyzer. Honda strives to take on challenges and abide by its values to provide joy
and excitement to its customers. The three joys of Honda are Joy of creating, joy of
buying and joy of selling. Honda’s mission states, “Maintaining a global viewpoint, we
are dedicated to supplying products of the highest quality, yet at a reasonable price for
worldwide customer satisfaction (World.honda.com, 2017).” Honda was the first
company to produce cycles with engines in 1946. It is also known to have developed
the world’s first car navigation system in 1981. In 2016, Honda received the
‘environmental leadership award for 10% reduction in energy use, conservation of
water, and recycling at core of “green dealer” effort.
In 2015, Honda successfully started delivering Honda jets. Honda always stands out for
its innovation and its products are highly demanded due to its innovation, uniqueness,
speed, high quality and security. Currently Honda produces its own world-class cars,

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power vehicles, motorbikes, racecars, aircrafts and jet engines with an aim to enrich
people’s lives with technology.

Therefore, this proposal is likely to help the environment in a significant manner and
also raise the revenue of Honda by an average of $3 billion.

2. PEST and SWOT analysis

2.1 Strengths
The Honda Motor Company has more than 120 facilities in 33 countries around the
world and sells over 20 million cars and motorcycles per year. Honda ranks first in the
world among motorcycle manufacturers. The firm’s competitive advantage lies in its
strengths, which are:
 Best customer service department
 High quality and variety of colors
 High brand awareness and loyalty due to its dominance in motorcycle and engine
industries.
 High degree of competence in manufacturing of engines (Strategic Management
Insight 2017)

2.2 Weaknesses
However, it also has some weaknesses in comparison to its competitors:
 More than 50% of its revenue is earned from North America. It does not have
a steady market in Asia and China.
Low investment in R&D compared to its competitors Toyota and Volkswagen. This
undermines the company’s ability to compete well in future as low investments leads to
fewer innovative products (Jurevicius, 2017).

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2.3 Opportunities
The increasing government regulation to produce more environment friendly vehicles
gives Honda a competitive advantage over other companies. Unequivocally, the
greatest contributor towards air pollution is the automobile. 56% of air pollution is
caused due to on-road vehicles. Passenger cars release harmful substances such as
carbon monoxide, nitrogen oxide, sulphur dioxide and other toxics into the atmosphere.
CO is extremely dangerous and can result in headaches, dizziness, vomiting and
nausea. Carbon monoxide on combustion gets oxidized to form carbon dioxide, which is
a greenhouse gas thus elevating global warming. Under these circumstances, Honda
can take the initiative to produce vehicles that are more fuel-efficient and reduce the
amount of harmful gases released into the atmosphere. The political, social and
ecological environment are thus in favor of Honda producing the proposed vehicle
(Jurevicius, 2017).
Honda gets 55.6% of its revenue from U.S. U.S markets are improving and the interest
rates have been low for several years. This gives Honda an opportunity to capture a
higher market share and increase its sales in the U.S automobile market. Moreover,
29% of accidents are caused due to drunk and drive. Manufacturing vehicles that help
in detecting alcohol and immediately turning off the engine can further help in reducing
the number of accidents and deaths caused due to driving under the influence of
alcohol. In this manner, Honda can take advantage of the economic and social
environment.
Nowadays, people require upgraded versions and models of cars within a very short
span of time. Honda has the capability to release new models, improve its technology
and thus cater to the rising consumer expectations.

2.4 Threats
The increasing competition continues to be a threat to Honda automotive industry. Its
revenue in Asia and China has declined considerably due to the ever-increasing brands.
Honda is facing direct competition from Toyota, Ford, Volkswagen and Hyundai. These
companies have large market share, which could be used aggressively to extract

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market share from Honda. It also faces indirect competition from Tesla and Google,
which has started manufacturing self-driving electric cars thus posing threat to the
traditional automotive industry.
Honda’s manufacturing companies are located predominantly in Japan, Thailand, china
and Indonesia. These countries are highly prone to natural disasters thus threatening its
production volumes and profitability.
Honda earns more than 88% of its revenue from international markets. The exchange
rates are extremely volatile. In order to calculate its revenue Honda has to convert all
currencies to yen, which thereby reduces the total revenue if incase the Japanese yen
rate appreciates. The economic environment therefore is acting as a threat to its
continued future operations (Jurevicius, 2017)
.

3. Consumer Analysis

3.1 Psychological parameters

Lifestyle
Since many people now practice healthy life style and tend to go for products that are
environmental friendly and prefer companies that preach cleaner environment, the
newly initiated car from Honda would be very appealing to them as it matches their
needs and what they stand for.
Personality
Customers who will buy our product would be the ones who are looking for something
practical, environmental friendly, safe for them and reliable for everyday use.
Perception
Perception is how one interprets the world around him/her and makes sense of it in
one’s brain. This is done via stimuli that affect different senses—sight, hearing, touch,
smell, and taste. Customers will have a prototype model that they can see in different
car shows around U.A.E before the release of the official car and after the car is
launched, detailed specifications of the car explaining every aspect of it will be
communicated predominantly through magazines.

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Benefits
The benefits that a customer can enjoy are that comes with name HONDA which
include reliability, fuel efficiency, and value for money as the company has proved in the
past that their product is good and live up to standards of that of a its target market as a
whole.

3.2 Profile Parameters

Demographic

The target market for our product “Elmia” would be people between the age of 25 to
50 as people at these ages have started to work and are starting their professional
life; they are likely to be married and with family responsibilities. It will predominantly
target both males and females. We choose this demography as the millennials of
this era are affluent, well-informed and educated adults and do care what products
they use with respect to how it is affecting their environment and what impact does it
have on their surroundings. Majority of the people in the target market would be at
higher managerial or administrative occupations and from the upper middle class.
Hence, they are not only prepared to purchase environmentally friendly vehicle but
are also able to pay more for it. They are most likely to already own a lower medium
car or similar.

Psychographic

Inside this demographic profile three fundamental attitudes of likely buyers could be
distinguished

Early Adopters/ Technology pioneers:

The individuals who are interested in the latest technology/ innovation, and those
who are the first on the block to own this technology and embrace it.

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Environmentally Friendly:
- The individuals who perceive the natural effect of motoring and might want to make a
move.
- those exclusive "fairly concerned" and looking towards expressing their worry and
facilitate their inner voice without causing themselves an excessive amount of bother.
The socially mindful, however will be more reluctant to purchase this innovation.
Value Conscious:
-the individuals who are searching for the perfect blend of hi tech car with modern day in
car interface and low maintenance cost in long keep running at a moderate cost.
Every one of the three gatherings are probably going to be presented to a similar level
of open air and encompassing publicizing. It is hard to assess the correct size of each
gathering, however most purchasers will be a blend of every one of the three and not
just one reason will spur a buy. The general size of these gatherings is most likely
genuinely little and will clarify why electric autos are not more typical yet.
Geographic
The private buyers will be from anywhere in the U.A.E, but a higher share of people in
the Middle east will be prepared to buy a car with environmentally friendly features. This
can be attributed to the problems of pollution and congestion (traffic jams) being more
widely perceived as a problem. Consequently the target buyer is more likely to come
from an urban area or a large city.

3.3 Behavioral parameters

Purchase
Purchasing behavior is effected by the following factors;
 Societal Factors
 Attitude
 Social Class
 Reference Groups and Opinion Leaders
 Family

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Maslow hierarchy of needs
Maslow hierarchy of needs that are satisfied when a consumer buys the proposed
product “Elmia” includes safety/security needs. The benefits of the car of producing less
harmful emissions and preventing alcohol related deaths helps a buyer to fulfill his/her
safety needs.
Honda is a reputed brand, which is known for its safety, innovation, quality, speed and
several other features. Buying Honda thereby would undoubtedly satisfy the buyer’s
esteem needs as well.

4. Competitive Analysis
 Present competitor

As the car market is changing and different companies are making eco friendly cars
HONDA will have some competition in the market which will include the electric motor
giants tesla who have a large fleet of cars and are currently hold the top electric based
car in the market, however tesla is an expensive option available in the market. Renault
ZOE, which is a cheaper option available but has some setbacks like having a smaller
battery and low range per charge is another indirect competitor of Honda. It is a smaller
car and has not been a very popular option with the people as everyday car, and
Toyota Prius, which is an indirect competitor as it is a hybrid car, which has a lot of
innovative features present in the current models available in the market.

 Future competitor

Future competition for Honda could be Lexus hybrid cars, as soon Lexus would be
introducing a range of all their luxury cars in hybrid options. As it is already known that
Lexus cars are very luxurious and highly popular in this part of the region, they would be
an indirect competitor in the future as they have only planned for hybrid that are eco-
friendly but not as electric cars.

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5.Product:
Honda has proposed to produce a compact car “Elmia” designed to reduce the
emissions of harmful gases such as nitrogen oxide and carbon mono-oxide in order to
develop an environment friendly vehicle. In addition to that, it would turn off its engine
automatically as soon as it realizes that the driver is in the influence of alcohol. This kind
of vehicle would help in making the environment pollution free as pollution is on the rise
today. Furthermore, it would also be beneficial as it would prevent accidents happening
because of the drunk and drive. The fundamental reason to recommend this whole idea
is for sustenance of the future in terms of pollution and accidents.
It excels when it comes to designs and diversity with long term factors such as longevity
and trust plus durability and reliability are also the prominent features that makes
product more reasonable. Honda models are generally acknowledged for having
thoughtful designs, user-friendly technology and fuel efficiency. As compared to other
car brands it is considered to more reliable and efficient; a great choice for dear
customers to buy, offering well developed capabilities and keeping in mind about the
special feature that it is environmentally conscious. That is exactly how Elmia is aimed
to be safe and secure with a classy yet comfortable interior and long lasting mechanism,
available in multiple colors; Blue, Red, Black, Silver.
Last but not least, Honda considers Elmia to be a right idea to be produced since it
serves the needs and has a combination of both attributes tangible and intangible. For
instance, Honda (seller) does not only sell the physical object to the buyer but also a
notion that it is environment friendly and values lives.

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6. Pricing

There are two visible factors of this car which influences its price; firstly, it is Explicability
in which the engine that is designed in a way which turns off immediately as soon as it
realizes the person on a driving seat has the influence of alcohol. Secondly, it is the
moderation of the pollution by diminishing the harmful smokes that are usually
generated by the cars. Another factor is the Negotiating margin. Negotiating margin is
the reduction of price, which means the price will be a bit low from actual price on the
list. This may include as a form of discounts which are considered to be pervasive in
business market but still gives profitable transactions. Such discounts are potential and
are important for company to grant in order to retain the gains in company. That maybe
as for instance fast payment discounts, promotions allowance, order - size discounts
etc.

COMPARISON TABLE
CAR COST RANGE HORSE TOP SPEED 0-60 MPH
(MILES) POWER (MPH) IN SEC

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Tesla Model 3 AED 220 N/A 130 5.6 sec.
128,551
Toyota Prius AED 640 121 112 10.7sec.
97,900
Honda AED 420 210 118 5.1 sec.
Elmia 120,400

Honda Elmia costs AED 120,400 neither too expensive nor too cheap. As Honda is not
known as a very expensive company so the price is kept subtle and affordable for
customers. However, it is slightly higher than usual, as it comprises special features.
The pricing objective used for Honda Elmia is Going – rate pricing; a price method
where price is based largely on competitors’ prices (Kotler et al. (2012, p. 389).
Price also depends and based on driving forces from which one of is intense
competition. As Honda is a professional firm and provides professional services
therefore is known to satisfy their clients’ good judgments by dealing with competition
arising from variety of sources (Dawson, 2011)

Competition: Driving Forces

(Piccolo, 2011)

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Morris (2013) studies that other than facing increased and intense competition a
company also faces globalization. Globalization has bought every nation into a single
economic system. In today’s world social media plays a big role and through online
networking, majority of people are currently participating in mediated social framework
as well. Thus, strategy of a company should be addressing markets that are globalized
in order to expand the number of people taking part in business and social groups that
rise above national limits. As Honda is large and professional company it is a must to
address the global market as it is powerful and its impacts are very strong on the
worldwide trend of operations; so it is necessary for Honda to come up with a strategy
that is globalized in order to optimize to get exposure to variety of markets around the
world and learn through it and perhaps also a way to reach new customers.

7. Place
Where will this product be made available to your customer? 

Product will be available in authorized Honda stores. Clients can visit the store, can
gather all information regarding the product and can also ask for test free ride for a
better and real experience.

What Intermediaries would be needed?

Intermediaries are very important for the growth of every business. The proposed car
will be easily available in the market with these Intermediaries.

Distributors – After manufacturing, the company will directly send the car to the
distributors, only one distributor will be there in every region. Honda will use distributors
being Al Futtaim and Rak motors to distribute the products directly to B2C markets.

Retailors (Showroom) – Every retailor will purchase the car from regional distributors
and retailers will further sell the car directly to the clients.

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 Table No. 7.A: Intermediaries

Manufacturer

Distributor –Al Futtaim Distributor- Rak

Motors

Retailors-1A Retailors-2A Retailors -1B Retailors- 2B

Figure 1

Nowadays every consumer is aware about the Internet and mostly consumers gather
plenty of information online. All information regarding the proposed product will be
available on the official website, you tube and social media accounts like – Facebook,
Instagram and Linked in. Any interested clients can order online or they can have a
product demonstration meeting with Honda experts.

Several other online tools can be used which have been highlighted below:

Google Ad Worlds - Google ad world is very effective for generating more traffic on
website, with the help of paid ads.
Search Engine Optimization – As per common key words, Meta tag can be used in the
official website. SEO will make the website rank better on google search engine.
Social Media Promotion – Social media is a very strong platform for generating more
clients. Usage of Facebook, Linked in and Instagram is also very effective and reliable.

8. Promotion
Client Product awareness is of paramount importance for increasing sales. Honda’s

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personal salesmen will give a brief description of the new product’s features, benefits
and price.

Digital Media -
Digital Marketing- Internet is a very strong media tool to create awareness about the
product to the clients. Honda company will create effective and responsive websites for
client information, online bookings, posting ads on social media websites. Digital media
enables two way interactive communications with the target audience. Banner ads are
also very effective as it provides fresh information about the product and enable the
consumers to register, ask questions online and make a decision. This not only
promotes interactive communication but also considerably reduces the costs. Some
more ways include

Print media, which includes Newspapers and magazines. Placing ads in print media is
inevitable as it provides information to a wide range of audience, which any other media
cannot. A picture demonstrating the new features of Honda’s product “Elmia” and its
benefits will be explained thus attracting and developing a positive attitude in the minds
of the target audience towards the product.

-Email Marketing -Search Engine Optimization -Pay per Click -Television Ads Print
Media -
 Traditional Marketing – In all crowded public places Honda will promote their
product by installing canopies or stalls for public awareness. 


Honda will promote its product mostly through digital media as more than 80% of the
population gauge information about any product through the Internet. Information
therefore is easily available in the Internet within a click of a mouse and can raise
Honda’s clients’ awareness about the newly launched product. Honda as a major tool
for promoting its newly initiated product “Elmia” will use virtual marketing.

9. Timing and Budget

The best time to promote the release of the car would be two months before the onset of
Ramadan so that the customers are aware of what’s available in the market as a new
product. Customers can also pre-book and test-drive the car present in the dealership. We

17
choose this time as many people are looking to change their cars at this time of the year
and are looking for better options of the availability in the market and compare it with the
current product they own. This is the time of the year many people buy new cars in the
U.A.E as it is considered a holy month and is followed by EID which is a festival celebrated
in the country.
The ads will be placed on the billboards across Dubai’s main highways, which are
usually congested including DIFC, Sheikh Zayed Road, Mohammad Bin Zayed Road
and Jumeirah road. As researched and studied by the Emirates Neon Group in UAE the
owners of majority of the billboards in the UAE have claimed that that these areas face
a lot of daily viewers and are most effected places to place advertisements to maximize
the sales. The cost of a billboard ad on these main areas would cost 364,000 per
month.

Conclusion
In conclusion, the proposal of the vehicle “Elmia” by Honda is contemplated to have
several impacts on the world’s air pollution levels and the level of accidents in the
country. The proposed vehicle will undoubtedly not falter to constructively impact the
world in a positive way.
It will boost Honda’s revenue and enable it to confront the heavy competition it faces
from its direct competitors- Toyota and Volkswagen; and indirect competitors being
Tesla and Google. Some of the social benefits of the proposed vehicle include Improved
air quality and reduction in accidents caused due to drunk and drive among an array of
benefits. Honda also believes that the proposed vehicle will receive immense support
from the government due to the benefits it proffers on the world enabling the future
generations to breathe good quality air and ensuring their safety and security at all
times.

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