A Study on Marketing Strategy of Honda Two Wheelers

Submitted By:

Kanchan Gurung

Exam Roll No: 20030858

P.U. Registration: 2019-2-03-0274

A Project Report

Submitted To:

Faculty of Management, Pokhara University

In the partial fulfillment of the requirements for the degree of Bachelor

Business Administration (BBA)

Department of Management

Butwal Model College

Omsatiya-1, Rupandehi

May, 2023
 STUDENT DECLARATION

I hereby declare that I have completed the Project entitled "A Study On Marketing
Strategy of Honda Two Wheelers" in partial fulfillment of the requirements for the
degree of Bachelors of Business Administration (BBA) at Faculty of Management,
Pokhara University. This is my original work and I have not submitted it elsewhere.

Signature:

Name: Kanchan Gurung

Date: May, 2023

 ACKNOWLEDGEMENT

This report entitled "A Study On Marketing Strategy of Honda Two Wheelers" has
been conducted to satisfy the partial fulfillment for the degree of Bachelor of Business
Administration (BBA), Pokhara University. For this, I would like to
acknowledgement the effort of Dean Faculty of Management, P.U., for offering such
a great course to enhance the broadness and quality of management education.

At first, I would like to express my gratitude towards our teacher, mentor, and
supervisor, Mr. Diwakar Pandey for his advice, motivation and moral support while
writing this research report. His advice was really important for me to complete this
research report successfully.

Secondly, I would like to deeply thank to our Principle Mr. Netra Prasad Bashyal and
the entire lecturer associated with BMC who gave a relevant lectures on theoretical
and practical fields. Also thanks to all the library and entire BMC staffs for their
support and cooperation. I am extremely grateful to all respondents who participated
in the research and provided me the require information based on the project report is
based upon. I would also thank for providing time to fill up the questionnaire despite
their busy schedule.

Last but not the least, I would like to extend my cordial thanks towards my friends
and family members for their valuable time and encouragement who helped me to
finalizing this research report.

____________________

Kanchan Gurung

May, 2023
 PREFACE

I have put my sincere efforts to accomplish my objectives within the stipulated time.
Despite all limitation, obstructs, hurdles and hindrances. I have toiled and worked to
my optimum potential to achieve desired goals. I am presenting this hand carved
effort. I tried my level best to conduct a research to gain at through knowledge about
the project on topic, "A Study On Marketing Strategy of Honda Two Wheelers". I put
the best of my efforts and have also tried to be justice with available. If anywhere
something is found unacceptable or unnecessary to the theme; you are welcomed with
your valuable suggestions.

TABLE OF CONTENT

Page no.
Title Page

Certificate from the supervisor

Student Declaration

Acknowledge

Preface

Table of Contents

List of Tables

List of Figures

Executive Summary

CHAPTER 1: INTRODUCTION

1.1 Background

1.2Focus of the study

1.3Statement of the Problem

1.4 Objectives of the study

1.5 Relevant research questions

1.6 Limitation of the study

1.7 Population and Sampling

1.8 SWOT Analysis

1.9 Competitors Analysis

CHAPTER 2: PROFILE OF HONDA TWO WHEELERS

CHAPTER 3: LITERATURE REVIEWS

CHAPTER 4: SEGMENTATION, TARGETING, AND POSITIONING (STP)

4.1 Segmentation

4.2 Identification of target market & reasoning

4.3 Positioning

CHAPTER 5: MARKETING MIX (4Ps)

5.1 Product

5.2 Price

5.3 Place

5.4 Promotion

CHAPTER 6: CUSTOMER SATISFACTION

6.1 Introduction

6.2 Customer and His Importance

6.3 Customer Satisfaction

6.4 Importance of Customer Satisfaction Mission and Purpose of Business

6.6 Customer Satisfaction Process

6.7 Methods of Tracking and Measuring Customer Satisfaction

6.8 Observation on Customer Satisfaction

CHAPTER 7: RESEARCH METHODOLOGY

7.1 Scope of the study

7.2 Method of data collection

7.3 Research Design

CHAPTER 8: DATA ANALYSIS AND INTERPRETATION

8.1 Age Group of Respondents

8.2 Education of Respondents

8.3 Family Annual Income

8.4 Occupation of Respondents

8.5 Duration of Usage of the Vehicle

8.6 Brand Patronage

8.7 Reasons for Choosing Honda

8.8 Influencer

8.9 Reason for Choosing the Dealer Respondents

8.10 Servicing Rating of Respondents

8.12 Loyalty to Dealer

CHAPTER 9: SUMMARY OF FINDINGS, SUGGESTION &

RECOMMENDATION `AND CONCLUSION

9.1 Research Finding

9.2 Suggestion & Recommendation

9.3 Conclusion

Questionnaire

References

Appendices

LIST OF TABLES

Page no.
Table 8.1: Age of Respondents

Table 8.2: Education of Respondents

Table 8.3: Family Annual Income

Table 8.4: Occupation of Respondents

Table 8.5: Duration of Usage of the Vehicle

Table 8.6: Brand Patronage

Table 8.7: Reason for Choosing Honda

Table8.8: Influencer

Table 8.9: Reason for Choosing the Dealer Respondents

Table 8.10: Servicing Rating of Respondents

Table 8.11: Loyalty to Dealer

LIST OF FIGURES

Page no.

Figure 8.1: Pie Chart Showing Age of Respondents

Figure 8.2: Pie Chart Showing Education of Respondents

Figure 8.3: Pie Chart Showing Family Annual Income

Figure 8.4: Pie Chart Showing Occupation of Respondents

Figure 8.5: Pie Chart Showing Duration of Usage of the Vehicle

Figure 8.6 Pie Chart Showing Brand Patronage

Figure 8.7: Pie Chart Showing Reason for Choosing Honda

Figure 8.8: Pie Chart Showing Influencer

Figure 8.9: Pie Chart Showing Reason for Choosing the Dealer Respondents

Figure 8.10: Pie Chart Showing Servicing Rating of Respondents

Figure 8.11: Pie Chart Showing Loyalty to Dealer

Executive Summary

In the present business environment, it is very difficult for any business to survive.
For survival every business unit has to differentiate it from others and to give certain
benefits to its customers keep doing business in long run. Discount is seen as
promotional tool by many businesses. By giving huge discount to customer, retailers
want to maintain long term relationship with them. In today's fast and developing
world every person wants to try to manage their speed. Every individual has wishes to
complete their work with high efficiency and beyond the certain time limits.

The objective of my survey was to analyze sales of Honda two wheelers. In this
survey I have used personal survey method. The sample size of the research kept in
mind seeing the size of Bhairahawa city, and it is 100 people for survey. And for
survey I used Primary research method. After doing survey, I have done the analysis
and finding of a particular survey.

…………………………………………………………………………………

CHAPTER 1: INTRODUCTION
1.1 Background Information

Honda is one of the largest automobile brands in Nepal and its presence in the country
has spanned a period of 50 years. It all started when the leading industrial and trading
conglomerate Jyoti Group started selling motorbikes of the Japanese automobile
brand in the Nepali market in 1967. The group in 1976 established the Syakar Trading
Company (STC) Limited as its subsidiary which further accelerated its Honda
business. STC is the sole authorized distributor of Honda two-wheelers, four-wheelers
and power products in Nepal.

The two wheeler industry has been expanding rapidly. Gone are the days when
processing a two-wheelers was seen as a luxury. Now a day it is viewed as a
mere necessity. Prior, sale of two-wheelers was mainly confined to urban
areas but lately in rural areas the bicycles are being replaced by power
driven two wheelers such as scooters and motorcycles. Not only this, the
industry has also customers ranging from all demographic segments. It has
been common that even school going children are driving two wheelers. The
women customers are also increasing due to increase in women literacy and
employment.

If getting a new customer is difficult, then retaining a current customer is more

difficult one and not only that it is estimated that the cost of attracting a new customer
is five times retaining the current customer, It requires a great deal of effort to induce
satisfied customer to switch away from their current preference. Thus customer
attitude is been given top priority in today's competitive world.

Need for the Study

After globalizations, number of two-wheelers markets have been entered Nepal
Market. New companies have been set up with foreign specially, Japanese
Collaboration by already established companies. Honda motors Japan has set up
subsidiary company at Bhairahawa, Nepal to offer state of the art Honda two -
wheelers to Nepal makes Honda motors with its wide product range has achieved a
respectful market shown with strong dealer network and excellent after sales
services.`
Even though there is waiting period for some products, some are available across the
shelf dealerships are upon not only at metros, but also at urban and semi urban areas.
This is to provide prompt after sales services. It has opened class of art show rooms
and workshops at all the places.

There is a need to study to efforts put in by the company, Dealers and Services
network to study the extent to which customers are satisfied with the product, services
and allied services etc. Hence it is proposed to study the Customer Satisfaction levels
of Honda Customers with respect to the product performance, after sales services and
other allied services like finance facility, availability of spares and accessories etc.

1.2: Focus of the study

The study will focus on the effectiveness of marketing practices of the two wheel
vehicles like motorbike. Today's drastically changing market is covered, handled and
managed with the great help of today's sophisticated marketing management and sales
promotion and this reality cannot be denied. Every product or service is created for
the consumer or customer to use and it is achieved through proud selling or offering
of best product or service with best advertising and promotional tools.

The practices of marketing and sales promotion are getting increasing importance and
scope in the marketing management. At the same time it is getting vast with the
competitive environment of the same subject, i.e. advertising and sales promotion. So,
fit is as important to built strong and wealthy marketing strategy and policy as
important to understand, win and retain the market for the product or service.
Implementation of such policy and strategy soul in optimum manner, hence the study
is to 3 describe the marketing practices of two wheelers vehicles especially Hero
Honda and Bajaj Company.

1.3: Statement of the Problems

In Nepal two wheelers vehicles importers are facing tough competition. Most of the
importers are launching ambitious marketing strategy in the market. In this ground,
marketing of Hero Honda and Bajaj motorbike in Nepal is tough and ambitious.
Generally, Hero Honda motorbike is considered to be high class vehicles and
expensive but on the other hand, Bajaj motorbikes are categorized as middle class
motorbike and has reasonable price. Due to mountainous country, it is difficult to
build road, railway track and airport in Nepal. It is costly to construct road and
railway track in the hills. Besides, Nepal hasn't enough budgets to construct the road
and railway track in the hill.

1.4: Objectives of the study

Product marketing in Nepal has become very important in recent years. Without
marketing, it has become almost impossible to sale product in the Nepalese market. In
this study, researcher has tried to find out the marketing of Honda Two-Wheelers.

The major objectives of the study are as follow:

1. To analyze marketing strategies apply by Honda two wheelers.
2. To evaluate the sales trend of two wheelers in Nepal.
3. To study the customer handling practices prior to sale, during sale and after
sale and accesses the satisfaction levels of customers.
4. To offer suggestions for improving the customer satisfaction.
5. To examine the market situation of Honda two wheelers in Bhairahawa.

1.5: Relevant research questions

While preparing this thesis, researcher attempts this question to fulfill the objectives.

1. What kind of sales trends of two wheel vehicles is in Nepal?

2. Which marketing strategies are applied by Honda two wheelers?

3. What is the market situation of Honda two wheelers?

4. What are the main factors, which motivates the consumer to purchase Honda two
wheelers?

5. Is customers are satisfied by purchasing the Honda two wheelers?

1.6: Limitation of the study

 Since a convenient sampling method is adopted, the sample may not be

representing all types of customers.
 As the study is conducted for a limited period and hence it may not be
exhaustive.
 The secondary data are in national level, but primary data were based in
Rupandehi district.
 The reliable of secondary data were based on office record of companies.
 In this study it is not possible to collect the opinion of all the customers owing to
personal constraints. So the assumptions are drawn on the basis of the information
given by the respondents.
 The study needs to be completed within a specified time of one month and in
certain restricted areas. So the findings cannot be generalized for the company
as a whole.
 This study covers only a limited Honda sector. So this study will not be
applicable for those areas.

1.7: Population and Sampling

Convenient Sampling method is adopted for selecting the respondents. Care is taken
over to cover customers of all types of products and age groups etc. Sample is taken
according to the study requirement and researcher convenience, the sample taken
neither by probability nor by finding.

We cannot take the whole population in Bhairahawa for the study so it was taken only
100 customers in that total population who use Honda two wheelers, for time and
money consent.

 The total number of Honda two wheelers users is called as population.

 The process of selecting sample from the population is known as sampling.
 The cluster of respondents taken for the study from the total population is
sample.
 Sales ledger of Honda two wheelers industry is taken as a sampling frame .

1.8: SWOT Analysis

Strengths

 Leading Honda dealers in Bhairahawa.

 Providing high quality services.
 Dynamic team.
 Positive image in city.
 Specialized mechanics and employees.

Weakness

 Lack of R&D programs.

 Lack of aggressive selling.
 Lack of promotional activities.
 Rise in raw material cost.
Opportunities

 Growing two wheelers market in the city.

 Increasing customer standard of living.
 Increasing brand value.
 Growing global demand for environment friendly vehicles.
 Positive outlook of Honda two wheelers industry.

Threats

 Increasing price of the vehicles.

 Intensive competition.
 Uncertainties in the business.
 Lower profitability.

1.9: Competitors Analysis

The main competitors for Honda are listed below;

 TVS
 Suzuki
 Mahindra
 Yamaha
 Hero
 Bajaj

CHAPTER 2: PROFILE OF HONDA TWO WHEELERS

Honda is the world’s largest manufacturer of two Wheelers the ‘Wings’, recognized
worldwide as the symbol of Honda two wheelers, which arrived in Nepal in 1968
A.D. Jyoti Group of Companies initiated the distribution of Honda motorcycles by
importing 11 units. Syakar Trading Company Pvt. Ltd. (STC), one of the companies
under Jyoti Group of Organization, which was formally known as Syakar Company
Ltd (established in 1976) is now the sole authorized distributor of Honda Motorcycles
& Scooters, Honda Cars, and Honda Power Products in Nepal. The company
officially changed its name to Syakar Trading Company Pvt. Ltd. on June 7, 2011
(Jestha 24, 2068 B.S).

From importing 11 units of Honda Motorcycles at the beginning till now, Syakar
Trading Company has lived up to its reputation of offering highest quality
motorcycles & scooters and now imports almost 60,000 Honda Motorcycles &
Scooters every year. Thanks to its ever-growing customers, Syakar Trading now has
more than 70 Honda 2-wheeler outlets all over Nepal.

Syakar Trading Company started the 4-wheeler business from 2002 A.D. Since the
inauguration of Honda Cars’ first showroom at Dhobighat on April 20, 2002, Syakar
Trading has added 8 more Honda Car Showrooms all over Nepal and has been
delivering quality products to all of its customers.

Honda has been committed to spreading mobility through society while promoting
traffic safety for every individual. With this fundamental belief, on March 23, 2010,
Syakar Trading Company Pvt. Ltd. inaugurated ‘Syakar Safety Riding Training
Centre’-  the first and largest motorcycle training institute with an area of 10,200 sq.m
at Gwarko, Lalitpur. The motorcycle training institute has been developed under
Honda Motors Japan training standards and is well equipped with well-trained male
and female Safety Riding Instructors and sufficient amount of safety gears. The newly
generated trial for getting motorcycle license has also been implemented at Syakar
Safety Riding Training Centre.
Vision

The story began with a simple vision – the vision of a mobile and an empowered
Nepal, powered by its two wheelers. Honda Two Wheelers Ltd., company's new
identity, reflects its commitment towards providing world class mobility solutions
with renewed focus on expanding company's footprint in the global arena.

Mission

Honda Two Wheeler's mission is to become a global enterprise fulfilling its

customer's needs and aspirations for mobility, setting benchmarks in technology,
styling and quality so that it converts its customers into its brand advocates. The
company will provide an engaging environment for its people to perform to their true
potential. It will continue its focus on value creation and enduring relationships with
its partners.

Strategy

Honda Two Wheeler's key strategies are to build a robust product portfolio across
categories, explore growth opportunities globally, continuously improves its
operational efficiency, aggressively expand its reach to customers, continue to invest
in brand building activities and ensure customer and shareholder delight.
 CHAPTER 3: LITERATURE REVIEWS

Abhijeet Singh (2011) Honda motors use a customer relationship management and
dealer management system which integrates one of the largest applications in the
automobile industry, linking more than 1200 dealers across India. CRM has helped
Honda Motors to improve its inventory management, tax calculation and pricing. This
system has also proved to be beneficial to dealers because it has reduced their
working capital cost.

Kevin Keller(2012) Caterpillar has become a leading firm by maximizing the total
customer value with the help of effective CRM, best after sales service in the industry
and better trained dealer. This allows the firm to command a premium price of 10% to
20% higher than competitors such as Volvo, Komatsu etc.

D.Vijyalakshami(2015) have carried out their study on customer satisfaction with

regards to different brands of two wheelers. Their study area was restricted to
Coimbatore city and the respondents were local of that city. They found in their study
that two-wheelers help people to easy and convenient travel of their daily routine as it
is easy to drive and handle. They have also concluded that high price of two-wheelers
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www.ijcrt.org 3638 does not always give satisfaction to the customers, however, it
leads to dissatisfaction some times.

Dr. K. Lashami Priya (2016) has conducted research on customer satisfaction

among the users of Honda two wheelers. They tried to identify the factors which
affect to give preference of Honda two wheelers. The study revealed that most of the
customers were satisfied with the brand image and mileage of Honda bikes.
Maintenance cost was considered an important factor and found satisfactory of the
concern.
Arun Mohan (2017) in their article “Honda Activa: a detailed review stated that the
ride quality is one aspect where the Activa needed improvement.The Honda Activa
bike employs a trailing link suspension at front which results in the handle bar
juddering every time, one rides over broken roads and telescopic front forks should
have been added.

Deepthi Nivasini (2018) their study suggested that the automobile industry has
witnessed a steady growth around the world. With the introduction of new model
bikes every year, the Honda Motors Co. Ltd is committed to satisfying the demands of
consumers. The Honda Activa bikes are produced in such a way that they are more
environment friendly and fuel efficient. This makes the Honda Activa bike a priority
in the two-wheeler market.

Manahila Ansari (2019): his study was concluded that It can be rightly concluded
from the project that Honda Activa Scooters have done well in establishing their
grounds in the two wheeler industry. They are also known for their comfort and
performance and the satisfaction is high among the students and the working class.
Youth is the target of Honda Activa Scooters and the potential target are the people
working in MNCs.

Milind Bade (2011) GM-Marketing, Bajaj Auto, has mentioned that Bajaj Auto
Limited is currently trying to move the industry from a commuter to a biker mindset
and at present the focus of the company is on keeping the sub brands and the mother
brand different and the main motive behind establishing individual brand is to create
differentiation which would help Bajaj auto, as an organization to develop
relationship easily with its customers.

Pawan Chabra (2011) has mentioned that the death knell off Bajaj’s scooters
business was sounded when the company officially stopped the production of its
flagship Chetak in December 2002, to get cracking on its ambition of becoming a
credible motorcycle brand manufacturer, the company invested big in R&D and
product development, but the company faced challenges in the sales and distribution
because their dealers had little idea how to sell motorcycles, so the entire dealership
network was trained to sell motorcycles.
Philip Kotler(2012) Harley – Davidson dealers ranging from the CEO to the sales
staff, maintain personalized relationships with customers through face to face and
social media contact. Knowing customers as individuals and conducting ongoing
research to keep up with their changing expectations and experiences which helps
Harley – Davidson to define their customers needs better.

R K Garg (2011) CRM requires a seamless, single view of the customer with
consistent cross-channel interaction models and it is recommend that companies
bundle all internal CRM strategies into one comprehensive multi-channel strategy.
More over if the two wheeler manufacturer integrate CRM with SCM, then product
design and production planning can be aligned with the customer information
available, to increase customer loyalty.

S.Saravan, N Panchanathan and S Pragadeeswaran (2009) concluded in their

research paper “Markets and Consumers- Consumer Behavior Towards Showroom
Services of Two Wheeler with reference to Cuddalore District” that students and
employees are more satisfied about showroom service and age of consumer is an
important factor while choosing the brand of bike and all the consumers give
importance all factors relating to buying a vehicle.

Shashank Srivastava (2012) GM Maruti Suzuki has mentioned that the consumer is
price conscious and the brand loyalty is diminishing because of the number of options
in each segment moreover the customers are ready to experiment today.

Steve Kahl and Fernaando Suarez (2008) in their research paper “Product, Process,
and Service: A New Industry Lifecycle Model”, has concluded that Existing models
of industry lifecycle evolution tend to focus on changes in the products and processes
and largely overlook the dynamics of services, but increasingly, the revenues of many
firms are becoming dominated by sales of services rather than products, or products
sold with services to gain competitive differentiation in markets marked by increasing
product commoditization.
Susan Suffes (2006) Audi (UK), a leading manufacturer in the prestige automobile
market implemented CRM successfully and this helped Audi to develop a model to
drive growth and engineer a dramatic turnaround by creating a superior customer
experience.

V.G. Ramakrishnan (2003) The two-wheeler market that has seen an explosive rise
in sales over the last few years which created an opportunity for various companies to
enter the after sales business of two wheeler, Castrol, a company well known for its
lubricants, has entered into the motorcycle servicing business with the roll out of its
first 6 workshop 'Castrol PrimaZona' and have plans to have pan India presence.

Customer Relationship Management Abhijeet Singh and Brijesh Kumar (2011)

mentioned that people term CRM as technology based initiative, but the fact is that it
is an enterprise wide activity which uses technology to facilitate various functions –
sales, marketing , service etc and CRM initiative starts with identification of
customers with the objective of differentiating from customer to customer and he
further mentions that it is not the products or services that please the customers, but
the right attitude of handling them and building a closer relationship with them. A
company with a large number of customers with close bonding would enjoy higher
revenues and profitability.

Alan Smith (2006) mentioned that since the mid-1990s many industries were
experiencing increased demand from their customers for higher quality and easier
access to service thus corporations and top managers started to rethink their traditional
ways of providing service and customer relationship management started to become a
strategic asset among corporations.
CHAPTER 4: SEGMENTATION, TARGETING, AND
POSITIONING (STP)

4.1 Segmentation
Market segmentation is the process of identifying, evaluating, and choosing identical
groups of individuals, regardless of whether they are buyers or not, with the intention
of creating and implementing competitive strategies towards them ( Sarabia, 1996)
customer attributes within each segment are distinct from those shared by other
segments ( Recklies, 2018). As there is no one way of segmenting a market so
marketers need to use various segmentation factors such as geography, demographics,
psychographics, and behavior (FURSE, D.H. & GREENBERG, B.A., 1975)

Honda is offering one product type, to the market that its targets. For that cause,
Honda uses more advanced methods that help in segmenting. First is grouping
techniques are intended at clustering groups of buyers that are identical to their
segmenting range into the same segments. Honda motors implement this method in
every part of the world to measure demographic attributes which is one of the most
repeatably used types of market segmentation (Beane, & Ennis, 1987).

4.2 Identification of target market and reasoning

Target marketing is the process of accessing all market segments and selecting the
segment that is most profitable and appealing to the company to enter with their
specific products or service (Law, 2016). Based on the above analyses, the most
appealing target market would be the demographic segment. Demographic
segmentation is one of the simplest methods to arrange people into groups and also it
can be measured more exactly compared to other segmentation variables (Schiffman,
& Wisenblit, 2014).

The First reason behind choosing the demographics is that is not difficult to identify
the target market segment as it can be known in terms of buyers’ age, income, gender,
social class and religion (Schiffman, & Wisenblit, 2014). Honda aims to target eco-
friendly middle-high income gainers who are youth.
The Second, justification for choosing the demographic segment is because it is a
considerable segment. The demographic segment is significant in size to uphold the
resources to be an effective target. For instance, in Malaysia, there are a total of 14.8
million enrolled vehicles in the year 2005 lots of them are motorcycles (Hays, 2015).

The last justification for choosing the demographic segment is because it is

appropriate to the company objectives and resources. For instance, Honda is targeting
medium to high-income buyers as the company is manufacturing lavish motorcycle
models which are high-priced. A company should select a market segment that
matches the Firms long-term objective (Plengdut, 2017).

In a nutshell, Honda has a market segment that is acknowledged, considerable,

consistent, increasing, reachable, and appropriate to its resources and goals.

4.3 Positioning

Positioning is the process of arranging the company offering to take a clear and
different place in the target market,s mind ( Kotler, 2000).

Honda kept the global viewpoint in positioning itself. As the company believes in
supplying quality offerings, so Honda can charge a reasonable price for its Worldwide
customer satisfaction. (Global Honda,2010).

In a nutshell, there are many benefits of STP, Firstly of all, it helps the companies to
obtain an excellent understanding of the customers’ needs and wants as well as a
competitor, and tailored their marketing programs according to it (Camerilli,
2016).On the other side, it has drawback also if there is extra segments it will not lead
to excellent financial performance and homogeneity also be exceeded (Hunt,&Arnett,
2004).
CHAPTER 5: MARKETING STRATEGY

5.1 Product

Motorcycles are often seen, as exposing riders to a greater amount of danger and a
higher possibility of injuries or even died in relation to driving a car (Huber, 2017).
Even an elevated death number is not sufficient to dissuade people from purchasing a
motorcycle. While keeping in mind these numbers, Honda Motors has taken measures
in ensuring less danger of accidents and death when customers ride motorcycles.
Every “CBR1000RR-R Fireblade motorcycle model comes equipped with safety
features such as an Anti-lock braking system (ABS), and mechanical stability control
(MSC) system. A secure motorcycle does not mean that it functions slow, as Honda
always put a performance on the top. Even when manufacturing and designing
“CBR1000RR-R Fireblade” motorcycles. Honda is offering this model in two
electronic variants as “CBR1000RR-R Fireblade and another is” CBR1000RR-R
Fireblade SP. Both will be accessible in two color designs HRC- motivated Grand
Prix red and Matte pearl black. It is developed with the most powerful embedded
four-cylinder engine that Honda has ever developed. Honda uses the same bore and
stroke as it for “RC213V-S. This “CBR1000RR-R Fireblade” provides the full power
of 160KW at 14500rpm, a high torque of 113Nm at 12500pm(Honda,2019).

5.2 Price

The “CBR1000RR-R Fireblade”will cost between Rm 91,999, and Rm 114,999 in

Malaysia for instance, but it’s different from country to country. The company uses
the premier positioning against its rivals. At this price level, Honda thinks that its
products are worthy to charge higher than its competitors as it uses the best features
the industry has to cater at a reasonable price for this category of motorcycle and can
simply match and outperform its rivals. The Company also firmly believes that
because of its unique attributes it will be the best seller in the industry (Honda Global,
2019).
5.3 Place

Honda Motors intends to have its own service centers, in every capital of each country
across the world, in order to reach its customers. Where they market their products
and customers can come and familiarize themselves in the environment of Honda
Motors, by testing the bikes rides before buying. The staff has been highly trained to
provide a high standard of work that generates quality products. Honda motors have
distributed plants internationally that best helps to work with the retailer’s indirect
distribution channels to sell their products that’s how Honda decreases cost and
saving can be passed on to its customers ( Honda,n.d.).

5.4 Promotion

Honda Motors advertise “CBR1000RR-R Fireblade” as broadly as possible, Honda

can hold events locally to advertise the “CBR1000RR-R Fireblade”in either their
service centers or main shopping malls. Honda can also advertise this new model by
having displays in few hit movies as hero vehicles of the said movie. Honda should
advertise this bike model in sports events by supporting some sporting teams. Honda
should promote this in lifestyle magazines as well as newspapers with the intention to
sell this product to customers in their 20s,30s and 40s who have the desire for
motorbikes along with sufficient income. Honda motors use a utilitarian method for
advertisement, which is obtained by giving customers the chance to for a test ride
their products and then make their mind on purchasing based on the happiness the
products brings to them (Darmadi,2014).
CHAPTER 6: CUSTOMER SATISFACTION