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BTEC HND IN BUSINESS

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Unit 4: Marketing Principles
Hondas Product - Marketing Mix Programme
2 of 2 (Group Assignment with Individual Oral
Examination)
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not copied or plagiarised from any source. We have referenced the sources from which
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Unit Outcomes

Outcome

Evidence for
the criteria

Assessors
decision

Feedback

First
attem
pt

Understa
nd the
individual
elements
of the
extended
marketin
g mix

LO3

Explain how
products are
developed to
sustain
competitive
advantage

3.1

Explain how
distribution is
arranged to
provide
customer
convenience

3.2

Explain how
prices are set
to reflect an
organisations
objectives and
market
conditions

Rewor
k

3.3

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Intern
al
Verific
ation

Outcome

Be able
to use
the
marketin
g
mix in
different
contexts

LO4

Evidence for
the criteria

Assessors
decision

Feedback

Illustrate how
promotional
activity is
integrated to
achieve
marketing
objectives

3.4

Analyse the
additional
elements of
the extended
marketing mix

3.5

Plan marketing
mixes for two
different
segments in
consumer
markets

4.1

Illustrate
differences in
marketing
products and
services to
businesses
rather than
consumers

4.2

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Intern
al
Verific
ation

Outcome

Evidence for
the criteria

Assessors
decision

Feedback

Show how and

why
international
marketing
differs from
domestic
marketing.

4.3

Merit grades awarded

M1

M2

M3

Distinction grades awarded

D1

D2

D3

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Intern
al
Verific
ation

Outcome

Evidence for
the criteria

Feedback

Assessors
decision

Group Assignment
Well-structured
Not Well-structured

Reference is:
done properly
is not done properly
should be done (if any)

Overall, youve:
passed:
all outcomes
3.1 / 3.2 / 3.3 / 3.4 / 3.5 / 4.1 / 4.2 / 4.3

referral:
all outcomes
3.1 / 3.2 / 3.3 / 3.4 / 3.5 / 4.1 / 4.2 / 4.3

Areas for improvement:

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Intern
al
Verific
ation

Outcome

Evidence for
the criteria

Feedback

Assessors
decision

Intern
al
Verific
ation

ASSESSOR SIGNATURE
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/

DATE

NAME:

(Oral feedback was also provided)

STUDENT SIGNATURE

DATE

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

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EXECUTIVE SUMMARY
Market of Vietnam is very wide for Honda can penetrate and grow. Honda is a major
company in Japan which then expanded the market to Vietnam and has earned more profit
through advertising campaigns, reaching consumers and clients, strategy to compete with
other companies. Honda has developed in Vietnam and are becoming more and more
developed. LG products are tailored to the client, not the way they did meet the needs of
demanding customers or trading partners such as supermarkets, wholesale dealer or retail
companies. Japan and Vietnam are two totally different markets from culture, economics,
market technology, but the Honda still penetrate easily into the Vietnam market to develop
and create collaboration between Japan and Vietnam.

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INTRODUCTION
Honda is the largest engine manufacturer in the world with over 14 million units per
year. Since 2004 the company began to manufacture diesel engine has run smoothly without
the filter medium to meet pollution standards. However, we can say that makes the operating
platform of the company from making motorcycles. Honda headquarters in Tokyo and is
listed on the Tokyo stock market, the City of New York, London, Paris, America Honda based
in Torrance, California (USA). Honda Canada plays Scarborough area of Toronto, Ontario
and moved to its new headquarters in Richmond Hill, Ontario in 2008.

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3.1. Explain how products are developed to sustain competitive advantage.

3.1.1. The product life cycle (PLC).
The product life cycle has 4 very clearly defined stages: introduction, growth, maturity
and decline. Nowadays, Air Blade with Vision is the model that had given 2nd highest sales
for Honda. It helped the sales increased 34% from the previous. Therefore, Air Blade is in the
stage of growth. Honda should continue to innovate technology to make more profit and
maximize the potential of this growth stage with this product line. But, to rival with other
products of brands, they should produce a new, integrated content strategy to reach all
customers via multiple touch-points. Honda also needs to consider any product modifications
or improvements to the production process which might give them a competitive advantage.
3.1.2. Branding and brand leadership.
a. Branding:
Brands of businesses today are regarded as fixed assets and accounted for 70% of the
total assets of the company. Branding help consumers see what makes the products or
services, and attractive than other brands. Honda builds their brand by implementing the
objective: "Maintaining an international viewpoint, we are dedicated to supplying products
of the highest efficiency, yet at reasonable prices, for worldwide customer satisfaction."
(Honda, n.d.)
b. Brand leadership:
Honda is well-known brands in Japan with the enduring products. It has made the fame
of Honda in the Vietnam market and around the world. Honda has a wide distribution
channels with nearly 600 HEADs cover all 64 provinces in Vietnam (AMR, n.d.). However,
in Viet Nam, consumers tend to use the product line of Yamaha. For this reason, Honda needs
to consider carefully in the launch of new products to achieve the highest efficiency. Besides
that, Honda also needs to focus on the change of product samples and enhance the quality of
products. They must try to make their products or services more special, novel and unique to
become the leading brand in the Vietnam market.

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3.1.3. Brand positioning.

The customers always choose the best and the most suitable products and Honda are in
the growth phase. Price of Honda is normal with high quality products. Besides that, the
products of Honda are appropriate to the needs of the customers. Honda just to stay up to date
technology to devise new and modern models and to attract more customers to compete with

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3.2. Explain how distribution is arranged to provide customer convenience.

3.2.1. Five RIGHTS:
Right place:
Consumers can buy the products of Honda in the big cities such as Ha Noi, Ho Chi
Minh City, Hanoi, etc. It is also easy for consumer to buy Hondas product in the
shopping centers, supermarkets, etc.
Right product:
Air Blade meets the needs of consumers. This is fitting for all people, reasonable price
and there are different utilities.
Right time: The products sell to the right time to achieve maximum revenue from the
products sold in the market.
Right amount: Honda has the retail prices for consumers and the trade prices for
traders.
Right price: For Honda, the prices suit every pocket of customer to satisfy the needs
of the client and the middle class in society. For example, Honda Wave RSX 19,8
million VND, Honda Super Dream 2013 - 18,7 million VND.
3.2.2. Ethics in distribution:
a. Conflict: When the products do not correspond to the quality that consumers want,
this will make them uncomfortable, feeling of being hoaxes should cause conflicts between
them with the company.
b. Trust: The trust of customers is a very important factor in business. Honda builds the
trust from the high quality products and services. They manufacture the products of high
quality, durability and longevity.
c. Commitment: It is important for Honda to continue to produce environmentally
friendly products such as the zero-emission FCX Clarity and the Insight Hybrid. However we
must also ensure we reduce emissions in all of our activities, Mr. Mizuno said (PressPotal,
2009). This is also Hondas Global Commitment to the Environment.
3.2.3. Promotion campaign:
Honda has a lot of promotions aimed at hitting on the psychology of the consumer. For
example, specifically, when customers buy a car (motorcycle) in the period from 07.07.2014
31.07.2014, customers will be offered warranty package for 2 years by Honda Vietnam.
(Honda, n.d.)
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3.3. Explain how prices are set to reflect an

organisations objectives and market conditions:

Objective of Honda company:

Maintaining an international viewpoint, Honda is dedicated to

supplying products of the highest efficiency, yet at reasonable prices, for

worldwide customer satisfaction. (Scenario)
3.3.1. Psychological pricing:
When consumers go shopping, they always want to be able to buy at
a lower price than the original price from the manufacturer. Honda has
used psychological price to attract consumers. When a motorcycle Honda
Wave RSX has 24 million vn, Honda can set the selling price is 23.990
million vn (Honda, 2014). Although only about 10 thousand decrease but
it still attract customers when it hit their mentality. Consumers still feel
they buy the product for a cheaper price.
3.3.2. Price positioning:
Depending on the needs of users, the cost of production and a part of
the famous brand, the price of the product will differ. Honda and Yamaha
is the second largest company in Vietnam in manufacturing motorcycles.
The same type of scooters, but two vehicles had a large difference in
price. While Honda's SH 150cc cost 79.990 million vn (Honda, 2014), the
most expensive cars GRANDE Deluxe from Yamaha is only 41.990 million
vn (Yamaha, 2014). Explanations for the discrepancy may be due to
accessories of SH are imported and better quality. Honda committed the
price of products fit and based on the value as well as the quality of the
product in a long time. Consumers will accept to use Honda motorcycles
through commitment and help the company remain profitable every year.

3.4. Illustrate how promotional activity is intergraded to

achieve marketing objectives:

Brand:
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Honda can use the common way in promotion is sponsor. It allows

Honda to attract a large number of customers as well as a positive
opportunity to gain more profit. For example, in 2013, Honda Vietnam has
carried out a contract funded for Vietnam Football Federation (Honda,
2013). This helps the Honda brand is better known through the slogan in
the conference or football league in Vietnam.

Push Pull strategy:

This method defines how products and services leave the business

and go to the clients. A client wants to buy a product (the pull): "Getting
the customer to come to you", and the business (the push) will satisfy the
client's request: "Taking the product to the customer" (BusinessDictionary,
n.d.)
The goal of the Pull strategy is entice more and more customers to
increase profits for the company. Depending on the needs and wants of
customers, Honda will develop and offer appropriate products. These
products need to have the effect to pull the attention of consumers,
making them want to own that product immediately. Besides that, based
on segmenting, targeting and positioning strategy, Honda can identify a
clear segmentation to detect potential customers.
This strategy is focused on pushing products of Honda to the
intermediate and retailers such as Kuong Ngan, An Thanh, etc. To
convince the intermediate level for their sales, Honda should appoint the
staffs have the knowledge in products, sales and management to each
agent. In addition, they can collect the variations in the market in order to
Honda can improvise promptly.

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3.5 Analyse the additional elements of the extended marketing mix:

In the extended marketing mix we have three additional elements: People, Process,
Physical Evidence.
3.5.1 People:
- Employees: Honda Viet Nam has around 7000 employees, a very large number. But
Honda is very interested in creating the best conditions for workers for stable
accommodation, ensuring stability of human resources for production and business and help
their long-term commitment to the company. (Anon, 2010)
- Managers: Honda has built a team of qualified personnel. Most officers are well trained
and highly professional. They are employees who have long experience has undergone
rigorous recruitment from the company.
3.5.2 Process:
Honda Vietnam providing the best service to every customer through 658 Stores
vehicle systems and services commissioned by Honda (HEAD) around country (as of June
1/2014). Each HEAD center offers a product warranty, maintenance under Honda's
standards globally with modern equipment and technical staff technicians are trained.
- Genuine products and perfect service: (Honda, Hondaminhhien, 2013)
+ Check periodically: Check periodically free 6 times in 2 years or 20,000 miles of
use.
3.5.3 Physical evidence:
Customers tend to rely on physical cues to help them evaluate the product before they
buy it. The role of the marketer is to design and implement such tangible evidence. Physical
evidence is the material part of a service (Anon, 2004). Hondas Logo is the image of
outstretched wings content covers three idea: pride, commitment and wonder. This is what
Honda is always aim to bring satisfaction to customers with good quality products,
reasonable price and considerate service.The logo of Honda is very special had helps clients
identify and distinguish brand of Honda on the market.
4.1 Plan marketing mixes for two different in consumer markets:

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 Age 18-25:
4Ps
Product

Plan marketing mixes

-

Nice design, eye-catching, diverse in color, size and show

the dynamic personality of the young, more designs
The product which is useful for their daily commute .

Price

A lower price and normal price because most young

people are student, so Honda should focus on developing
the low - price and style product.

Place

Promotion

On the great city such as Ho chi Minh city, Hanoi, Da

Nang... and highly visible locations such as intersection,
near the city center - where there is demand about
motorcycles of youth people.
Through the internet, social networking, includes
numerous promotions and bonus gifts
Advertising at school or work, brochures, via mobile phone
and The paste advertising on the Bus, taxi

Table 1: Plan marketing mixes of age 18-25

Age 35-50
4Ps

Plan marketing mix

Product

High quality, durable, elegant design, polite, neat.

Easy to use, small size.

Price

In line with the customer, may be the price is higher than

the age of 18-25. Due to the demands of high quality,
durability and higher price should they had gone to work
should have the money to shop

Place

The shop is large, genuine Honda in the Center City, such

as Hanoi, Hai Phong...

Promotion

Advertising through television, radio broadcasting, the

internet, mobile phones, via the printing press, magazines
and the exhibition
Table 2: Plan marketing mixes of age 35-50
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4.2. Illustrate different in marketing products and services to businesses

rather than consumers
4.2.1 Compare between B2B and B2C:

B2B
Produce both
motorcycles and

B2C
Produce only scooters
The prices of scooters
from medium to high

scooters
The prices of
motorcycles and

Products and Price

scooters start from

low to medium and to
high

Technology

Fuel consumption at

normal levels
High-tech products
Using the technology
and materials mainly

Fuel consumption at

high levels
High-tech products

Using the technology and

materials mainly

from Japan
-

Demand

Honda Vietnam has

Honda Vietnam has

already exported

already exported

several motorcycles

several scooters to

to other Southeast

other ASEAN

Asian countries

countries

Set suitable price for the

Just only high income

consumers

consumers can buy

(Hondavietnam,2014)

The table show us the different between marketing products and services to business in
two major B2B and B2C of Honda company. B2B same have more activities than B2C.
4.2.2 Marketing mix

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Product
Activities serve customers traveling
Meeting the needs of the exact specifications
Price
Price from producers to consumers increased dependence on import tariffs
Place
Open the branch at the shopping center, city center, densely populated and large.
Promotion
Exhibition introduces products
Product promotion through media technology and popular magazines
Bundled accessories and warranty term solution for the customer when they buy the

product
Provide guidance and introduction of the functions of the new product to the customer

can know the product

Committed prior to the sale, the service will provide technical assistance or free shipping

4.2.3 Target marketing

Honda company appreciated by marketing strategy is quite effective, policies and
products in accordance with consumers from customer moderate-income to high, reasonable
distribution, promotion policies strike a chord in Vietnamese with the psychological program
name "Toi yeu Viet Nam"

Product strategy: Honda made a lot of styles and designs for clients can choose,

corresponding to the different prices, suitable for many classes of people.

Pricing strategy: Honda products are always priced to fit the maximum amount of
their clients, from affordable products to meet the travel needs essential to the highend products with very high value in order to satisfy bridge, showing the level of

customers in Vietnam.
Product promotion strategy: Honda Vietnam's slogan is "Toi yeu Viet Nam" with a lot
of engagement from the field this year, with brand and product quality, Honda
Vietnam still dominate the market and promises to bring new products with the best
quality for the customers and consumers.

4.3. Show how and why international marketing differs from domestic
marketing
Nowadays, the products of company can sell or not it depend on the market they put. In
the international market, many overseas company or consumers buy the products because of
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the newness of the products. Customer psychology is they always want to try the new one
than use a products forever, so the domestic maybe not surpassed by international market.
The differences are shown in the following.
4.3.1. Compare the market in Japan and Vietnam:
Honda Japan market: Open many events to intro new products. They started sale of
the All-New "Grace" Hybrid Sedan (Honda, 2014)sets all-time monthly record for
automobile production in North America (Honda, 2014), reaches 300 million-unit
milestone in cumulative global motorcycle production,... The company also sets

monthly records for automobile production.

Honda Vietnam market: Honda Vietnam has created the breakthrough products
promote social movements. They launch the promotion of Christmas, improving the
social activities and the mainly programs "Toi yeu Viet Nam" (the slogan of Honda
Vietnam) (HondaVN, 2014). Open events to intro new products to consumers.
We can see that the international market organized events around the world extensively,

there are many products with high diversity are many investors over the known world. There
are specific trading strategies and better domestic market. While the activities of Honda
Vietnam just in the country and not attract the investors.
4.3.2. Marketing mix in Honda Vietnam market
The Honda Vietnam market had shown 4Ps by the information in the table

Honda Vietnam market

Marketing mix (4Ps)

Product

These products cater to serve the condition of the consumer

movement, always bring the model motorcycles and cars:
SH, Air Blade, Future, Honda CR-V, Honda City,

Reasonable prices for consumers when Honda

manufacturing products in different classes to match the

Price

income of consumers.
Place

shopping centers, supermarkets as Vincom, Big C.

-

Promotion

Big cities such as Ho Chi Minh city, Hanoi, Hai Phong ...,

Organization of exhibitions of new products, gifts for

longtime customers, lucky draw

Table4 : Marketing mix in Vietnam market

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CONCLUSION

Motorcycles are important vehicles and mainly in Vietnam. Since Honda entered the
Vietnam market over 10 years ago, the company has continuously invested in infrastructure
construction production to meet the increasing demands of the market means that the motor is
nearly 90% in the large cities. With many established headquarters, Honda is truly a brand
that is trusted by the Vietnamese.

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