Professional Documents
Culture Documents
UNIVERSITY OF
OF SCIENCE
SCIENCE AND
AND TECHNOLOGY
TECHNOLOGY
HANOI
THE UNIVESITY
UNIVESITY OF
OF NORTHAMPTON
NORTHAMPTON
THE
ASSIGNMENT
SUBJECT:
HONDA VIETNAMs MARKETING MIX (4Ps)
AND COMPATITIVE ANALYSIS
Professor:
Student
June 2016
CONTENTS
PREFACE........................................................................................................................................3
1.1. Introduce Honda Vietnam
1.2. Honda Vietnam and Competitorss Market share
2.
COMPARISON OF MARKETING MIX (4Ps) STRAGETIES OF HONDA VIETNAM AND
COMPETITORS............................................................................................................................10
2.1. Product
2.2. Price
2.3. Place
2.4. Promotion
PREFACE
Together with the rapidly expandation of population and urbanization, the demand for
transport in Vietnam has been increasing sharply in recent years.
According to Census 2015, Vietnam has reached a population of 90.7 million following with
46.065.091 registered vehicles including 43.485.416 motorcycles in accordance to a Report of
Vietnamese Government in September 2015. That means averagely every two Vietnamese people
own one motorcycle. This is such the highest rate in the world.
An evidence proved that this market reached an average of 930 motocyles per 1000 people in
Ho Chi Minh City, that makes Viet Nam completely standing out among other areas.
Source: http://autodaily.vn/2016/06/tuong-lai-nao-cho-thi-truong-xe-may-viet/
The motorcycle market in Vietnam has changed much over the years. In the detail, there were
3.3 million motorcycles sold in 2011, then the market decreased 200,000 motorcycles in 2012
(3.1 million). In 2013, the number of sold motorcycle is 2.8 million, but in 2014 it continued to
decline to 2.7 million, then it has been nearly 2.8 million in 2015.
Evaluation of the motorcycle market in 2016, motor vehicle sales is expected to remain at
2015s level. As well as promoting the brand, the motorcycle producers will find the way to
breakthrough by their own strategic marketing.
The demand for large motorcycles in Vietnam is great. The more effortness producers make
to continue improving their motorcycles to enhance competitiveness, the more choices
consumers have. There has been a big change in motorcycles demand for the past decade. A large
segment of Vietnamese consumers demand for motorcycle has been changed from the purpose
of travel to the expression.
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In the last decade, if we mentioned Honda, it meant super dream, wave, future, etc.
There was the strong competition between Honda and Yamaha. But in recent years, the
appearance of some luxury brand like Vespa, Liberty, SH, Dylan, etc. has met the needs of
consumers expression.
The map of motorcycle brands in the Vietnam market has been fluctuating constantly. But
there is a fact that Honda Vietnam, who was well-known since 1996, always keeps the leading
position for decades. It is a brilliant exploit for one brand in a growing market like Vietnam.
Honda Vietnam's strength is not only the prestige brand of the No. 1 quality but also the No.
1 marketing efforts. A methodical and effective strategic marketing helped Honda Vietnam
success. That is why I choose the topic: HONDA VIETNAMs MARKETING MIX (4Ps)
AND COMPETITIVE ANALYSIS.
In May 12/1997, Honda Vietnam launched the market with the first Super Dream. The
commencement of the first factory was occurred in 1998, and in 2002 Honda Vietnam started
exporting motorcycles to the Philippines simultaneously with supplying for almost domestic
demand of motorcycle. 6 years later, in 2008, the 2nd motorcycle factory was built.
Source: https://honda.com.vn/gioi-thieu/gioi-thieu-honda-viet-nam/
So far, for over 20 years of operation, Honda Vietnam has owned 10.208 employees, 3
manufacturing factories with capacity of 2.5 million units per year.Honda Vietnam has currently
authorized 640 dealers (HEAD) nationwide.
That achievement subject to the early presence of Honda in Vietnams market so that Honda
can maintain an impression on customers. Besides Honda has been highly evaluated by its
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effective marketing stratedy as price policy and reasonable products to customers from averaged
to high income, appropriated distribution, promotion policy aimed to Vietnameses
psychographics by slogan I Love Vietnam.
Honda Vietnam proudly provides our customers with its high quality products, dedicated
service and contributions for a society of healthy transportation. By slogan "Power of Dreams",
Honda wants to be share and fulfill their dreams by creating new happiness to human and
society. The success of Honda Vietnam today is based on the permanent and sustainable
development by three philosophies: the basic belief, company guiding principle and management
policy.
Basic Beliefs
The foundation of company guiding principle includes two basic beliefs.
Respect people: requires Honda to encourage and develop these characteristics in the
company by respect individual differences and trust each other as equal partners.
Maintaining a global opinion, Honda always try their best to provide products with the best
quality, reasonable price to satisfy customers all over the world.
Management Policy
Source: http://otoxemay.songmoi.vn/thi-truong/thi-truong-xe-may-viet-nam-nam-2014
Together with economy development, the motorcycle market has been facing with stiff
competition from car market, that leads to sales figures in Hanoi and HCMC. HCM almost
unchanged during the last 5 years. However, according to the analysis of Nikkei, segment of
motorcycles in provincial cities are still potential to exploit.
With over 70% market share, Honda Vietnam is still the No. 1 brand of motorcycles and
has many advantages over the coming years. Based on the charts ranking VNR 500, 2014 sales
of Honda Vietnam reached about 60,000 billion, ranking the 15 th last year and ranking the 3rd in
the FDI sector, after Samsung Electronics Vietnam and Vietsovpetro.
This strategy is described in the list of Honda Vietnam motocyles in market which is
continuously expanding. Honda provides 12 kinds of motocyles from popular segment to high
standard segment, from manual bikes to automatic bikes, from low price to high price suitable
for many social class.
Honda Vietnam Product Categories in 2016 (see attached appendix)
Every year, Honda Vietnam constantly research and develope new product to meet the
changes of Vietnamese userss demand from design, model, color, premium features. For each
line of products, Honda Vietnam also focus on design of different appearances and colors to meet
the needs expressing themselves of consumers. For example:
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After the strong imprint of Super Dream cars, cars became Wave's flagship product with lots
Hoda Vietnam versions to meet the needs of the majority of the people of Vietnam have the
average income level, rather: Wave alpha, RS wave, wave B, wave RSX, ... colorful, diverse
styles and price suitable for both men and women, young and old, urban and rural.
The success of a strategy to diversify products is also reflected in that Honda Vietnam
always ensures to maintain and enhance the reputation and quality of each product. Reputation
for the quality of the products and brands for customer Honda is considered a vital element of the
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company. All the products of Honda Vietnam absolute compliance with the strict standards of
global quality: The durable, powerful engines, less fuel consumption, and environmental
friendliness.
The middle and high product demand Honda Lead, Click, Vision, SH, Air Blade, ... all use
fuel injection technology PGM-FI electromagnetic Euro 3 standard for emissions. While the
furture, Wave, ... . In particular, the product of Honda Vietnam always comes with the best
warranty.
2.1.2 . Comparative of Honda product strategy with rivals
If Honda Vietnam's product positioning High durability; Energy saving; Environmentally;
friendly; and market coverage strategy with product diversification, the competitor is Yamaha,
Piaggio, SYM, Suzuki focused on different strategies.
About positioning product characteristics.
Brand
Honda
Properties product
Target
Kind of product
Durable , fuel-efficient ,
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Notably in product strategy, yamaha is closely following Honda with similar vehicles.
Yamaha always give the car corresponds to Honda for consumers to compare and choose from.
Example Field Yamaha Grande would correspond to Honda or Yamaha line will correspond
Novo Honda Air Blade.
Similarly, the segment of fashion scooter Piaggio Vietnam is also gaining market share not
less. The carmaker is rapidly catching up the trend in demand is shown by 1 unit high-income
users and it has different strategic options for the products both in design style and high price
exceeds the sky.
With this policy, impressed with the Piaggio Vespa, Liberty, ... very chic and stylish. Along
with the high-end segment, Piaggio has not forgotten the lower segment with Zip cars, compact
design Fly is yet not losing the user's level. Most of Piaggio products are expensive petrol,
expensive spare parts, ... but car sales continued to increase over the years, and the majority of its
users, this car feels proud that Piaggio class gives their products.
SYM is still struggling firms with product strategy. When their cars without being clear
positioning. Most recently, in an effort to research and develop trendy car line upgrade SYM
Atila line becomes echo of a time line of its flagship car.
Attila Attila Victoria, Attila V, Attila Elizabeth. This is a mid-range cars can match the Honda
Vision line, Zip Piaggio, Yamaha Nozza Atila Atila Victoria ,Atila V, Attila Elizabeth.
Comparing the characteristics of one of the typical models as followings.
HONDA Lead
YAMAHA Acruzo
13
PIAGGIO Fly
Regarding to Machine:
HONDA Lead
YAMAHA Aczuro
PIAGGIO Fly
injection , single-
L.E.A.D.E.R engine ,
maximum torque of up
producing maximum
power of 11.3 hp at
min
maximum torque 11 , 6
transmission , electronic
In terms of engines, the four firms are equipping their products with the engine parameters are
quite similar. However, it seems that the Honda engine has the durability and marginally better
fuel economy than the remaining three opponents, according to the user manual.
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Design:
HONDA Lead
YAMAHA Aczuro
PIAGGIO Fly
using
elegant flair
used .
In terms of design, models from Honda seems less prominent, not bring more fashion lines.
This is a notable weak point to this innovative car manufacturers design products catch the
competitors in the market..
Facilities:
HONDA Lead
YAMAHA Aczuro
PIAGGIO Fly
- Extra-large trunk ( 37
- Extra-large trunk ( 37
trunk
broad market
easily , no need to
process of refueling
convenient front
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handy
Overall, undeniable that Honda Lead usability gives customers more prominent than those of
rival products such as large trunk, which contains many more maps, easy to refuel ...
Performance:
HONDA Lead
YAMAHA Aczuro
PIAGGIO Fly
- Tubeless Tires ,
- Tubeless Tires ,
asymmetrical structure
smoothness , balance
while moving
rough
the car
- Run smoothly ,
experience of a fairly
speed of 30-60 km / h
powerful car
about 30-50 km / h
go about 30-50 km / h
behind
passenger comfort
behind
process more
operating safety of
vehicles
- Headlights quite bright
in the dark road
conditions , even foggy
road
Overall Lead Honda showed the ability to operate at average levels compared with rivals.
The strength of the product's durability, fuel economy, safety braking system and comfortable
accommodation blocks.
16
17
Honda Lead
Yamaha Acruzo
Piaggio Fly
Attila Elizabeth
Suzuki Hayate
HONDA
YAMAHA
PIAGGIO
Attila
Suzuki
Lead
Aczuro
Fly
Elizabeth
Hayate
37.490.000 VN
34.990.000 VN 43.900.000 VN 35.500.000 VN
25.200.000 VN
This suggests, the car company has strategic price competition to gain market share in the
mid-range market segment.
2.3. Strategy for Distribution Products
2.3.1. Strategy for Distribution Products of Honda Viet Nam
With 20 years of manufacturing and trading in Vietnam market, Honda has demonstrated
market leadership position not only in sales but also in large distribution systems in 63 cities.
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Honda currently has 639 stores Vietnam synchronous credential recognition, quality of product,
service, process and price.
Honda Vietnam to adopt effective product distribution strategy compatible with the
policy to diversify products to serve all classes of people and price policy stratified by market
area. The high-end product line such as SH, Dylan, imports, ... and the midrange line as Lead,
Air Blade, ... are stepping up distribution in major urban centers where there is demand and high
affordability . While the proportion of vehicles are distributed in the provincial and rural areas
mainly dream, wave, vison, futures, ... meets the demand for vehicles with low prices and low
design requirements.
Along with the traditional sales channel is the credential store HEAD HONDA, Honda
also has been developing sales channels and online ordering through its website. Allow users to
complete reference information on the vehicle and can be ordered on request.
Accordingly, Honda customers across the country have the opportunity to own favorite cars
for the price, quality of service, the same warranty on all of Honda store credentials. With a wide
distribution network, Honda ensure rapid supply of products to meet the needs of consumers
across Vietnam.The synchronization of identity standards and quality of service throughout the
distribution system is key to the success of Honda Vietnam strategic distribution of its products.
six major branches and more than 300 agents in 63 provinces small .Mo shape of Yamaha dealers
and Yamaha Dealers 2S Town.
Yamaha Town - galleries motorcycles, toys, accessories, fashion Yamaha - Customer Care Fans Club Provide the most satisfied customers in the product's quality ph high humidity, good
after-sales services , catering to all requirements of the customers. Dealers also 2S: Warranty
Service, maintenance and other after-sales service Spare Parts:
With frontal confrontation strategy Honda, product distribution strategy to follow rivals and
geographical differences in the model was effective for Yamaha to at this time. Its distribution
system also ensures the uniform criteria on service quality and timely supply of goods to all
market areas.
Similarly, the model also applies SYM dealer agent S with 84 2S (Car repair and sale of
spare parts) and 219 agents 3S (Sales Motorcycle - Parts & Service Sales sales). This strategy
allows SYM access to multiple niche markets without having to invest a small cost in terms of
identifying lon.Dam security as well as economic efficiency doanh.Diem disadvantage of this
model is asynchronous in terms of scale, brand identity from the image and quality service
providers.
Meanwhile Piaggio has established the system of official distributor Piaggio motorcycle sales
services, after-sales, and providing genuine parts in major cities: Hanoi, Ho Chi Minh City, Da
Nang, Hai Room. Specifically, Piaggio launched the "Center for Piaggio" and "Fashion shop
Vespa" with customer service standards across the country Piaggio.
YAMAHA
PIAGGIO
SYM
Starting with 33
In 4 carmaker , is a
20
through a system of
agents in 1999,
been established ( ) .
commissioned by Honda
made rapid
agents to nearly 50
development
chong.Cho to or , this
concentrated in 3 major
maintenance ) and 3S
number of agents on
to criteria 3S : Sale
added production ,
(purchase ) - Service
( maintenance and
repair services ) -
Honda Vietnam has clear advantages from the beginning when available very soon in Vietnam
and set up sales network and customer care services dense, distributed nationwide. This
advantage helps Honda customers trust and choose more than rivals after. It takes much time left
for other motor manufacturers can catch up to Honda Vietnam on this point.
2.4. Trade promotion strategy
2.4.1. Trade promotion strategy of Honda Viet Nam
Honda Vietnam is now one of the best efforts of the trade promotion activities serve not only
business but also have a positive impact to the community dong.Chien Honda's strategy is to
promote continuity, direction to the community, and channel synergies.
Trade promotion strategy of Honda Vietnam is shown:
-
Ad Operations widespread on the mass media, the maximum use of online channels to
offline advertising, articles from traditional media (television, outdoor, ..) to the TV
application parameters (online advertising, ...). Especially when launching new products,
Honda focused on strengthening headlining both online and offline.
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Active PR campaign with a series of echoes as I love Vietnam , the driving contest , the
TV program guide traffic , the charity fundraising activities for community Write,
Active promotion of policies sold with attractive sales incentives , promotional gifts
during the holidays, the program lucky draw prizes worth many gifts for many subjects,
policies subsidies, student installment buying, customer appreciation , ...
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Yamaha also promote the sale of many promotions and incentives on the purchase occasion
biet.Cac not PR activities focused company like Honda .
Piaggio exploited by the advertising campaign for Italian-style images and the use of direct
channels , TV ads, the internet to attract the attention of your target group . The company also
offers the Piaggio Lifestyle channel to share the feelings of the people who use the product , or 1
of promotions such as Free Oil Change , Support registration fee , Introduction car or - receive
instant gifts hands , ...
Meanwhile SYM also keep advertising on TV at a frequency less than large firms operating
advertising media are for the company's vehicle line Atila .The company also developed a traffic
channel to deliver relevant content to support the user.However the activities of its sales
promotion is quite poor , mainly reduced registration fee , ...
Comparative summary of the trade promotion activities of the company
HONDA
YAMAHA
PIAGGIO
SYM
Advertising on the
internet ...
internet ...
media , TV , internet
Participate in promotional
Participate in
promotional activities :
sports sponsorship ,
volunteer , help
community
So overall the trade promotion activities , Honda Vietnam is still the leading brand in terms of
quantity , quality and efficiency gains .
CONCLUSION
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Through comparative analysis 4P in Hondas Marketing Mix strategy compared with rivals
on Vietnam market , Honda has found that predominate. With their efforts, Honda Vietnam
deserve to be the market leading brand of motorcycles. However , in the context of increasingly
fierce competition and constantly fluctuating market , Honda Vietnam must continuous
improvement to maintain their position and improve its competitive advantage . Some
suggestions follow 4P orientation for Honda Vietnam as follows :
- Product: Honda must improve the variety of designs and after-sales services in order to create
differentiation from competitors. Focusing on scooters can also be considered a step in line with
market requirements
- Price: HVN need to strictly control the HEAD to avoid the phenomenon of price disturbances.
Consumers are always protected by reasonable prices and good service .
- Distribution : Expand the network of more coal HEAD, support the purchase or replacement of
vehicles Honda to be Easier than competitors
- Promoting trade : often there are many policies on price , after-sales policies and improving
skills of staff.
APPENDIX
LIST OF PRODUCTS OF HONDA VIETNAM ( 2016 )
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REFERENCE
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http://dantri.com.vn/o-to-xe-may/50-nam-giac-mo-honda-tren-dat-my-1245272273.htm
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phat-trien.html
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http://nld.com.vn/thi-truong-xe-may.html
Homepage of Yamaha Motor Vietnam, viewed 20 May 2016
http://www.yamaha-motor.com.vn
Nikkei Asean Review writers, Honda strives to sustain growth in Vietnam's maturing
motorbike market, viewed 20 May 2016
27
http://asia.nikkei.com/Business/Companies/Honda-strives-to-sustain-growth-in-Vietnams-maturing-motorbike-market
Statista, Honda Group's motorcycle sales from FY 2011 to FY 2016, viewed 24 May
2016
https://www.statista.com/statistics/267277/worldwide-motorcycle-sales-of-honda/
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