Marketing Planning

The 1st Assignment Mktp Marketing Planning Prepared for: Mr. Martin Ortega (BTEC Lecture) Nguyen Trai University, Ha Noi Submitted: 12/08/2013

Prepare by: Quang Chinh Pham

Name: Quang Chinh Pham Date of birth: 11/10/1984 Course: 2010 2014 Sectors Study: Btec Program Student Code: 1050001030

NGUYEN TRAI UNIVERSITY BTEC HND IN BUSINESS (MANAGEMENT)

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Unit 19 Marketing Planning Honda Motor 1 of 2

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Unit Outcomes
Outcome Evidence for the criteria Feedback Assessors decision
First attempt Rework

Internal Verification

Review changing perspectives in marketing planning

1.1

Be able to compile marketing audits LO1

Evaluate an organisations capability for planning its future marketing activity

1.2

Examine techniques for organisational auditing and for nalysing external factors that affect marketing planning Cary out organisational auditing and analysis of external factors that affect marketing planning in a given situation

1.3

1.4

Understand the main barriers to marketing planning

Assess the main barriers to marketing planning

2.1

LO2

Examine how organisations may overcome barriers to Marketing Planning

2.2

Merit grades awarded Distinction grades awarded

M1 D1

M2 D2

M3 D3

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Table of Contents
Introduction ............................................................................................................................................. 6 1.1 Review the changing perspective in Honda marketing planning.................................................... 7 1.2 Evaluate Honda capability for planning its future market activity .................................................. 12 The Gap analysis ............................................................................................................................... 12 Capabilities ........................................................................................................................................ 13 Tangible resources ......................................................................................................................... 13 Intangible resources ....................................................................................................................... 14 Human resources ........................................................................................................................... 16 1.3 Examine technique for organizational (Honda) auditing and for analyzing external factors that affect marketing planning ...................................................................................................................... 17 Porters 5 forces analysis for Honda ................................................................................................. 17 SWOT and TOWS analysis for Honda ............................................................................................. 19 STEEPLED analysis for Honda ........................................................................................................ 23 1.4 Carry out organizational (Honda) auditing and analysis of external factors that affecting the marketing planning in Vietnam ............................................................................................................. 25 The marketing environment .............................................................................................................. 25 Marketing strategies .......................................................................................................................... 26 Marketing system .............................................................................................................................. 27 Marketing organization ..................................................................................................................... 27 Marketing functions .......................................................................................................................... 28 2.1 Assess the main barriers of marketing planning .............................................................................. 28 2.2 Examine how Honda Vietnam may overcome barriers to marketing planning ............................ 30 Conclusion ............................................................................................................................................. 31 Appendix ............................................................................................................................................... 32 Reference List........................................................................................................................................ 33

Introduction Honda Motor Co., Ltd. (Honda or the company) is one of the leading manufacturers of automobiles and motorcycles in the world. The company develops manufactures, and markets automobiles, motorcycles, and power products. It primarily operates in North America, Asia, and Europe. Honda is headquartered in Tokyo, Japan and employs 179,060 people. The company recorded revenues of JPY8, 936,867 million ($104,561.3 million) during the financial year ended March 2011 (FY2011), an increase of 4.2% over FY2010. The operating profit of the company was JPY569, 775 million ($6,666.4 million) during FY2011, an increase of 56.6% over FY2010. The net profit was JPY534,088 million ($6,248.8 million) in FY2011, an increase of 99% over FY2010. Honda Motor (Honda) is a manufacturer of automobiles, motorcycles and power products. The company also provides a range of financial services to its customers and dealers. Honda operates through a global network of 383 subsidiaries and 91 affiliates all over the world. The company operates through four business segments: automobile business, motorcycle business, financial services business, and power products and others businesses. In this report, I want to introduction about the marketing audit and the main barriers of marketing planning for Honda in VN market

1.1 Review the changing perspective in Honda marketing planning Honda Motor Co., LTD is one of the leading manufacturers of automobiles and motorcycles in the world. The company develops manufactures and market automobiles, motorcycles and power products. It primarily operates in North America, Asia, and Europe. Honda is headquartered in Tokyo, Japan and employs 179,060 people. But in this report I want to discuss about Honda Motor in VN. Honda has been in VN for over 10 years, the company has always been confidence selected by VN consumer. The company was ranked in top 10 of Famous Brand Programmed 2010 that organized by VCCI. Honda has been active in many years. In order to understand about Honda perspective and the changing of marketing planning during many years, as can be seen that Honda Motor Co. used the market-led marketing strategy. Honda has strong focus on research and development (R&D). It means that the company makes the product by seek to determine the customer demand. It really focused on the market research such as what the consumers want? And how can Honda satisfy this want? In recent years, the VNs economic was growing so fast and the peoples live are so improved according that the demand of automobile has increased that was affected directly on the changing perspective in Honda marketing planning in VN. For Instance: Nowadays, the automobile is not just means of transport, but also seen as an effective beauty item, enhance the value of user and with high feature and to save fuel that is one of the top criteria in choosing automobile. Beside that Honda has done market research and knows exactly that exits the different in using item between north and south VN, for example: In North VN, the users focus on status and in south VN the user focus on the functional. To review the changing perspective in Honda marketing planning in VN, I will show Marketing 1.0 vs. Marketing 2.0 and the future orientation of Honda in VN Marketing 1.0 Product-centric Marketing Sell products Objective Industrial Revolution Enabling Forces How companies see Mass buyers with Physical Needs the market Key marketing Product development concept Product specification Company marketing guideline Value propositions Functional Interaction with One-to-Many Transaction consumers Marketing 2.0 Customer-oriented Marketing Satisfy and retain the consumers Information Technology Smarter Consumer with Mind and Heart Differentiation Corporate and Product Positioning

Functional and Emotional One-to-One Relationship

In this review, I will focus on the VN automobile market. Since the latter half the 1990s, VN is a potential market in automobile industry of the world that got the attention of many famous automobile brand such as Toyota, Ford, Mercedes-Benz, GM, BMW, Honda Nowadays, VN automobile market is relatively small, about 40.000products/year. VN has only 1 million products of all kinds. In while according to the General Statistic Office VN economic is growing at rate 7,8%/year and the population is about 86 million people. Though it statistic, we can see that the number of cars products is too small and therefore VN is potential market. According to the information of the calculations as can be seen that the GDP is about 3000$/person/year that can make explode the automobile market, in while GDP of VN is according to General Statistic Office about 1500-2000$ in average of major city so that take time to improving the peoples live condition. Under the agreement on reduction Tax AFTA in year 2011 brought the opportunities for developing the import products while assembles products in the country is still developed. To catch the opportunities for development, on March 2005, Honda VN has received official certification of Ministry of Planning and Investment allowing assembly and production automobile in VN. It is importance milestone making the companys development and it has effected directly on marketing planning of Honda VN. Honda has taken 1 year and 5 month to complete plant construction, agent network, sales training program, and servicesHonda automobile manufacturing equipped machinery and equipment like Honda factories in other country. Honda has been actively developed products and offer to consumer the product that have good quality and good price, save fuel and friendly to environment. It led that Honda is not only known as product reputation motor cycle manufacturers but also the prestige automobile manufacture in VN market.

The Vehicle sales on Honda VN through period Period - Year Vehicle sales (Car) 2006 1110 2007 4260 2008 5909 2009 4215 2010 3140 1/2011 465 2/2011 371 3/2011 262 Honda has used marketing 1.0 for their product-centric marketing based on 4 criteria. Diversification of categories, products and prices on all of the market segment
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Continuous innovation in design, colors and models Maintaining and enhance the reputation and quality of Honda products Commitment to producing friendly product to environmental.

In VN market, Honda has 4 products for automobile market that are Honda Civic, Honda CRV, Honda Accord and Honda City

Models Civic 1.8 M Civic 1.8 A Civic 2.0 AT Civic 1.8 MT Wise Civic 1.8 AT Wise Civic 2.0 AT Wise CR-V 2.4 AT Accord 3.5 (Imported) City

Prices (VN) 656.000.000 738.000.000 825.000.000 659.000.000 741.000.000 828.000.000 1.078.000.000 1.710.000.000 540.000.000

Colors Black light, pearl gray, golden brown Black light, pearl gray, golden brown Black light, pearl gray, golden brown Black light, pearl gray, golden brown Black light, pearl gray, golden brown Black light, pearl gray, golden brown Black light, pearl gray, golden brown Black light, silver gray, white Black light, pearl gray, ivory white, blue stone, titan

Honda has used marketing 2.0 in their marketing strategies. Diversification products are one of effective strategy to refresh them, increase sales, expand market share and improve their competitiveness. Honda has launched many kind of automotive products that are suitable for each age group, color interesting, gender, economic situation of each family. Therefore Honda products are always preferred to everyone and it has a strong impression on VN consumers. Brand image: Honda has developed famous brand in motor cycle industry in VN, Honda is always keeping top position in this market. Honda has maintained its image and growth market share for automotive industry with the same logo of Honda

Slogan: Honda has used slogan The Power of Dream to present their criteria for consumers. Honda want to bring the safety and happy in life for their consumers. In addition, Honda has named for each of their product such as Honda Civic is Civilization. The decision product quality: Honda is always focusing on the quality of product and put it as the first priority to customer services. Honda products are specifications and outstanding features, very durable, high safety especially suitable with traffic condition in VN. Moreover, along with after-sales service are thoughtful, cheap spare parts, easy to replace, and warranty that are helped Honda taking full of Mind and Heart of VN consumers.

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

In addition, Honda also efforts in driving safety training, they used team of HEAD to work at the line, that help them attract the consumer belief.

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Through the review in this report, as can be seen Honda has used both of marketing planning for their motor and automobile products that are suitable for each period of development time. Honda has product quality product and good service, etc all kind of things will help them to meet the customer needs and satisfy them. It ensure for my conclusion that Honda is marketled marketing company, they prefer to satisfy their customer and develop R&D to make better the market research. In addition, I want to discuss about the future orientation of Honda VN. Competitive situation in the automotive industry is increasingly fierce, customer needs are changing every day and requires increasingly difficult choices. So to survive and develop, Honda needs to explore and innovative new products. The following companies are the major competitors of Honda Motor Co., Ltd for all sector such as Passenger cars, Sports utility vehicles, Commercial vehicles, Special needs vehicles, Utility vehicles Fiat S.p.A. Ford Motor Company General Motors Corporation Harley-Davidson, Inc. Isuzu Motors Limited Kawasaki Heavy Industries, Ltd. Mazda Motor Corporation Mitsubishi Corporation Nissan Motor Co., Ltd. PSA Peugeot Citroen S.A. Renault S.A. Suzuki Motor Corporation Toyota Motor Corporation Volkswagen AG Yamaha Motor Co., Ltd. Audi AG Subaru Hyundai Motor Co. Bajaj Auto Ltd. TVS Motor Company Limited Mahindra & Mahindra, Ltd. Bayerische Motoren Werke AG (BMW Group) Hero Honda Motors Limited Porsche Automobile Holding SE Understanding that, every year, Honda develop the R&D department and make a number of market research, consult the tastes of consumers, researching products or popular products of the competitors, so that to design new products to meet the needs of consumers market There are two approaches to the future orientation Protect the past Create the future - Update and maintaining their current - Innovate new technology, development new products design of automobile that are using converted - Follow the slogan Power of Dream to energythat are friendly with ensure their market share and Leading the environmental. Technology - Expand the network distribution such as - Improving and maintaining the marketing HEAD, operation more event such as BE-U strategy and safety driving, etc that can develop the - Follow the rule and operation efficiency brand image of Honda to attractive the - Conventional, reactive and re-engineering consumers current process. - Creating new sources of competitive - Using pricing and quality product for advantages suitable market - By and achieve a vision of the future.

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1.2 Evaluate Honda capability for planning its future market activity The Gap analysis To evaluate Honda capability for planning its future market activity I will base on the Gap analysis as one technique that can help to clear about the extent new strategies that needs to enable the company to achieve these objectives. The gap is as capability that exits between the current performance levels of the company with the require (current or future) performance of the company that can be understand under needs analysis This capability gap is often use in wider complex transformation programmers to clear the overall organization design. In this report, I want to discuss about the automobile industries of Honda in VN. Honda was known as leading company in Motor Co. in VN. Now they want to transformation to start first manufacture automobile at 2005 and exploit the demand market in VN. To use the gap analysis, Honda should focus on the following stages Assess of the current situation The end state of achieving result of Programmed/Project Produce the development plan outline to achieve the end state Compare the deliver against the development plan Evaluation of deliverables including recommendations For instance: According to the information of Hi, ng. (2013) Honda has sale 4,05 million all kind of motor from 1/4/2013 to 20/6/2013 achieve the growth rate by 3,7%. But Honda forecaster that the sales is 17,4 million motor of all kinds and achieving 12,3% growth rate. That is exits the gap between current performance with the require performance in the future of the company.

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Capabilities As can be see that gap analysis as a strategic analysis of the capability requirement for programmed/ project. The capability element of organizational is really important to sustaining any change in the organization. To understand Honda Moto I will show the resources of the company such as tangible, intangible, human to evaluate Hondas capabilities for planning its future marketing activity

Tangible resources The first one is tangible resources. There are 2 types as financial and physical. It can understand under assets that are the property of company, it can be reach out and touch. Honda Motor Co. is one of the leading manufacturers of automobile and motorcycles in the world. In VN market, the company has developed manufactures automobile and motorcycle and power products. In VN, Honda has 2 motor manufactures and 1 automobile manufacturer. All of them were built in Phuc Thang, Phuc Yen, Vinh Phuc

The company also provides a range of financial services to its customers and dealers. Honda operates through a global network of 383 subsidiaries and 91 affiliates all over the world. The
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company operates through four business segments: automobile business, motorcycle business, financial services business, and power products and others businesses. The company has as robust production and sales network According to the information in scenario, as can be seen the financial of Honda in recorded revenues of JPY8, 936,867 million ($104,561.3 million) during the financial year ended March 2011 (FY2011), an increase of 4.2% over FY2010. The operating profit of the company was JPY569, 775 million ($6,666.4 million) during FY2011, an increase of 56.6% over FY2010. The net profit was JPY534,088 million ($6,248.8 million) in FY2011, an increase of 99% over FY2010. It shows that Honda has powerful physical resources and good growth rate in revenue per year. Honda has witnessed an increase in its profits and margins in the last few years. The company recorded an operating profit of JPY569,775 million (approximately $6,666.4 million) compared to operating profits of JPY363,775 million (approximately $4,256.2 million) and JPY189,643 million (approximately $2,218.8 million) in FY2010 and FY2009, respectively. In FY2011, the operating income increased from the previous fiscal year primarily due to an increase in income attributable to increased net sales and model mix, a decrease in fixed costs per unit as a result of production increase, and other cost reduction other. In addition, the company's operating margin increased from 1.9% in FY2009 to 6.4% in FY2011. Similarly, Hondas net profit in FY2011 increased to JPY534,088 million (approximately $6,248.8 million) from net profit of JPY137,005 million (approximately $1,603 million) in FY2009. Its net margin increased from 1.4% in FY2009 to 6% in FY2011. Increasing operating efficiency reflects the efficient cost management and sound decision making, which could be leveraged to fund growth plans in the future. It is ensuring the efficiency performance of Honda in VN. The company can use the resource for update and maintaining their activities and for planning programmer/project for its future such as development their network distribution, operate new manufactures or innovation new products, etc. The company is focused on increasing its presence through new production plants and increasing existing production capacities. Honda has strong focus on R&D department and it will take so much money and with the good financial situation that can ensure for their objective in development R&D That can help Honda VN making more competitive advantage to development and expand in market, through it taking more market share. Intangible resources The second, I want to show the intangible resources of Honda. Intangible assets are the longterm resources of the company without physical existence. It can be brand/reputation and culture/values Brand/reputation

Honda Motor Co., Ltd. (Honda or the company) is one of the leading manufacturers of automobiles and motorcycles in the world. In VN Honda has been developed for long time
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with motorcycle products. Honda brand is too famous brand in mind and heart of VNs consumer, talking about motorcycle, all of Vietnamese think about Honda. Nowadays, Honda develop strongly in automobile industry and gradually growth their market share and take the belief of VN consumer with good product, durable, easily replaced part and cheap. Honda has a strong brand image and it is one of the most popular and desirable brands in the world. For instance, in 2011, the annual BrandZ Top 100 survey conducted by market research firm Millward Brown ranked Honda brand fourth in the automotive brands with a value of approximately $14.2 billion and an overall ranking of 56 on the top 100 list. Honda has really strong brand images. It significant competitive advantage and helps the company to register higher sales growth in domestic, as well as in international markets. It may help the company determine the price of their product in market that the company actives Honda has very good brand and image in VN market for long time. It is strong competitive advantage for Honda to development and expands their company in VN market. It is the perfect result for taking effort in long time in VN market of Honda. It leads the project or programmer planning in future of Honda that can take potential to achieve good result. Moreover, as of March 2011, the company owned more than 16,400 patents in Japan and more than 24,600 patents abroad. Honda also had applications pending for more than 14,800 patents in Japan and for more than 17,500 patents abroad. Strong focus on R&D and engineering enable the company to develop innovative products, which allow it to remain at the forefront of its respective businesses and differentiate its offerings in a highly competitive market. Culture/ Values

Nowadays, using automobiles are not only transport vehicles but also the style, personality and status of the users. In VN using vehicle culture are different between north and south. While north VN is focusing on status and south VN focus on the functional. So the development strategy is diversification of product with many models to suitable for any age, income, gender and class that is in the right direction for Honda. That can satisfy the culture and values of the market that Honda is in active. Beside that Honda has strongly focus con R&D department that can help them to meet the need and market trends in VN timely through market research. One of the best planning of Honda is development the service and after-sales service. Using large network distribution such as HEAD Honda can warranty and ensuring their product in best situation, take the feedback of consumer to improving their service. For instance: Honda is always operating the new event such as Be-U and safety driving program for their customers. Through that can marketing their product and help the consumers know better about the product and the values of product will be increased Honda is not focus only on event, they also open training program for their employees to create good working condition for them, then the employees will be good treat they can make
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better their work and follow the rule of the company to bring product to consumer such as slogan Power of Dream In real, I have visit the Honda manufacture and I can see that their employees has good emotion and no stress with their work, because Honda is always hear and clear the feedback of their employees. In the company there is good communication. Honda has ensured the benefit of employees that is the good condition for their work to ensure the benefit for their costumer. Such as sale department behaved with customer friendly and caring, that ensure for their objective good after-sales service. Honda has develops right direction focusing on service, because in period, the models product, price or quality quite the same with other competitors. Human resources It is the most important resource for any organization, that can be determine as knowledge, skill and motivation Knowledge

Honda has quality in select process to create good criteria, the human department will set up the requirement to make criteria and recruit staff for the company. The employees must know exactly their position responsibility and what, how they can work done. The employees will be joined in training program in period time for improving their knowledge. Moreover, Honda makes often the survey to meet the need and clear the feedback of their employees, through it to ensure their business efficiency. Skill

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

Honda has used survey and taking feedback from employees about their work, through it can help them to improve working condition for their employees. Create a chance for employees to achieve their career path, hear their comment to increase the responsibilities of employees, because they can join in the plan of company through it improve the responsibility of their work to create better business efficiency. Honda can create event or promotion bonus for the employees those have good working result, through it can motivate them. Making event for improving communication between employees in company, through it help them take better working condition and get rid of stress. Through the communication, Honda can improve the capacity for the collaboration such as team work, informal-formal group for their employees ensuring the work of manufactures or project or something needs group to be done.
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Honda is production-line manufactures therefore the capacity for collaboration is really important because each stage has been bound together. For instance: For testing process, each stage must control against the work of latest stages to ensure the quality of product.

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

Definition

Pros & Cons

Threat of new entrants

Porters 5 forces - It is a tool using to analyze the industry and business development policy. It refers to analysis the profitability of the company. - Advantages: It is simple tool but powerful to show and help to understand where the power of company lies in a business situation. - Help to know strengths of current competitive situation, position. - It almost first tool prepare to do SWOT analysis - Disadvantages: It is not flexible in some situation - it skips the important strategic - High risk - VN's economy developed rapidly, and potential. After joining WTO, VN increasingly attracting investors and businesses
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Determinants Supplier Power

of

Rivalry among existing firms

Determinants of buyer power

Threat

of

substitute

involved in the development - In especially, business of Taiwan and China has joined VN automobile industry with cheap product, middle quality, but suitable for consumer income. Beside that base on the consumer culture and social the development of import product of famous brand in over the world expand very fast. - Moreover, VN want to attract the investor, so the barrier for new entrant is more easily. - All of the factors have effect directly on business activities of Honda. Honda has strong brand image and competitive advantages with diversification product, quality, good price and service that are must focusing to develop and improve. - Honda has been issued to operate manufacture and assemble parts of automobile is big advantage for competitive. - Honda has many strong competitors in VN automobile market such as BME, Hyundai, Nissan, and Fordbut the risk is low. BMW, Mercedes, etcis luxury automobile with high price, good quality, but parts and service is not really good in VN, because they have not manufacture and assembly parts. Other competitor has not enough power to competitive with Honda, because Honda has really strong brand image, and advantages for users cheap replaced part, good service, high quality with suitable price. Honda doesnt need supplier because they can produce all of part and needs for themselves with their manufacturing in VN. - VN market has many automobile company, that have active for long time such as Hyundai, Toyota, BMW, Nissan,they have certain market share in some kind of automobile. They have manufacture and assembly production line same Honda in VN. High risk for Honda to competitive with them in VN market. They can attract the consumer with low price product with good quality too Honda should be focus on their service and after sale service, promotion, event, etc to marketing their product better, Using R&D to develop and maintaining their product with new technology such project to innovate hybrid and electricity technologies. - In world crisis situation and middle income of VN, that still doesnt explode automobile market. The customer will focus on the low price product. Therefore, Honda should improve their low price product such as Yaris, Civic, in especially their new product Honda city to meet the need of customer. - The power of buyer can effect directly on sale revenue, profit and market share of Honda Therefore it is high risk and Honda must focus on this problem. - Honda is strong brand image in VN, they can control and take care about their customer to keep them by the company with good development strategy that still make by R&D department that are hybrid and electric technologies that help the customer use product friendly with environmental, save fuel, etc - It is really low risk for Honda. VN customers primarily used
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products

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

SWOT and TOWS analysis for Honda Honda VN SWOT Matrix Strength Weaknesses

Internal analysis

- Strong brand image that can give significant competitive advantage and helps the company to register higher sales growth in domestic, as well as in international markets - Diverse product line for each gender, age, class, income and power product - The company has as robust production and sales network. For instance: Honda VN HEAD > Agent Retail Consumers Honda has automobile manufacture in VN. - The extensive production and distribution network enhances the global reach of Honda. - Honda has strong focus on research and development (R&D) to ensuring maintaining and update, innovation their product through market research which allows it to remain at the

- Honda is large company and develop really fast in automobile industry in VN, but Honda has now only 1 automobile manufacturers, in while the sale revenues and profit of company is increasing, the number of sales is always grow up, therefore Honda cannot avoid the problem in their product. It can lead to reduce the brand image of Honda, because their slogan is "Power of Dream". Honda will know about quality product and good price, service...the problem can effect directly on business efficiency, Honda should determine and solve the problem as fast as possible. Such as: Built more manufacturers in VN, open training program for employees, improve quality control technique, etc...
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External analysis

Opportunities - Honda is focusing on increasing its new production plants and increasing existing production capacities For instance: in July 2011, Honda Vietnam (HVN), the companys motorcycle and automobile sales and production joint venture in Vietnam, announced plans to build a third motorcycle production plant and expand its total annual production capacity by 500,000 units to accommodate consistent and rapidly growing demand of the motorcycle market in Vietnam. The addition of the third plant will further increase HVNs production capacity to 2.5 million units. - Building new production plants in other country can

forefront of its respective businesses and differentiate its offerings in a highly competitive market. - The automobile business segment develops technologies that provide advanced safety performance and address environment issues - Strongly service in sale and after-sales that can improve the belief and attractive VNs consumers Sales revenues and profit margin of Honda automobile is increasing every year. It helps company ensuring any marketing planning, programmer/ project - Honda has good brand image and financial situation that can help them to achieve the objectives that create new production plants in other countries - In addition, Honda has enough working capital follow grow rate and increasing in sale revenues to ensure the development of R&D department. Through it can help them to get as good as possible in project innovate hybrid and electric technologies. It can create competitive

- For instance: in May 2011, the company recalled 833,000 vehicles for a possible airbag defect. In July 2011, Honda recalled 200,000 passenger cars globally due to defective engine parts. The recall covered the Stream, Civic and Crossroad models The company has witnessed a decline in its sales in Europe in the last few years A continuous decline in this segment could put pressure on the profit making segments and on the overall revenues of Honda.

Building new production plants in VN can help Honda clear the problem with number of product and focusing on quality of product. - Making producing product in domestic market, reduces imported product from other country will help Honda control the price, better test, service and warranty, in especially reduce the cost and increasing their revenue It can help Honda solve the problem in weaknesses that defect problem in part of Honda
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Threats

help the company to counter the loss caused due to rapidly appreciating Japanese Yen - VN is potential market and quiet development in demand to use automobile. In addition the demands of using new energy that are friendly with environmental increasing and save fuel, the entire element are market trends. Honda has a strong focus on developing hybrid and electric technologies. The company is also the largest manufacturer of motorcycles in the world. Hondas unit sales on a consolidated basis in Asia were approximately 9.2 million, representing a 21% market share. The companys strong presence and the positive outlook for the motorcycles market in Asia Pacific provides it an opportunity to further increase its customer base and revenues in future. - There are many strong competitors that Honda must face in VN market such as imported products, BMW, Mercedes, Toyota, Nissan, etc. It can effect to sale revenue and market share of Honda, Honda may be improved their quality of product or reduce their price, increased inventory, which may result in a further downward price pressure and adversely impact the company's financial condition and results of operations - In 2010, the emission regulations were further tightened. The EPA and the

advantages for Honda ensuring the leading manufacturing in the world - Honda should innovate new product with new technology that is market trend such as save fuel, friendly with environmental, etcto ensuring their leading manufacturing in VN market in future, because VN is potential market and develop very fast.

products avoid the reducing image brand, cost and increasing profit for Honda.

- However, through competition, Honda can grow and confirmed its position in VN consumer market by developing and offering superior products. The victory of strong competitors can help Honda expand more market share and brand image Honda focus on R&D department to develop the hybrid and electric technology that can

- The appearance of defective products on the market is the weakness for competitors exploiting. It can give bad effect for Honda. - Natural disasters can affect Honda's production process, it may affect product quality or time to complete the contract that can make the opportunity for competitor - If Honda does not have good production line,
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Definition

Pros & Cons

NHTSA issued a joint final help Honda avoiding technologies rule to reduce the emission the EPA and reducing emissions, of greenhouse gases from NHTSA issued to the products meet the passenger cars, light-duty reduce the cost for quality standards of trucks and medium-duty product the EPA and NHTSA passenger vehicles for development, testing Issued follow, it will model years 2012 through and manufacturing seriously affect the 2016 The emission operations of Honda. whole company standards adopted across various regions can result in additional costs for product development, testing and manufacturing operations of Honda. - Honda primarily operates in Japan which is a highest earthquake prone region in the world the company is subject to disruption of production due to natural disasters. Although it doesnt effect on VN market, but it effect on Honda business efficiency, sales revenue and brand image, and competitive advantages of the company. - The SWOT and TOWS analysis helps sort information of the company systems to get a better overview of how we can combine our strengths and opportunities in order to counter possible future weaknesses and threats. Through it can help the company has an overview about the market situation where the company actives - Advantages: SWOT and TOWS analysis is necessary for Honda company to know their strengths, weaknesses in business activities to develop strengths and improving the weaknesses. Besides that the company can analysis their opportunities to achieve their objectives and make completive advantages, prevent the threat to avoid loss and bad situation. - SWOT and TOWS analysis dont need waste lot of money and easy to do it. Everyone can use the information of the method. It is very important to monitor and development the trend on the market of Honda company. - Disadvantages: SWOT and TOWS analysis is a subjective process analysis considers data that is available at a particular moment and may become outdated quickly. So the method may lead to business decisions based on unreliable or irrelevant data. - The method may waste time, because it must be continuously updated.

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STEEPLED analysis for Honda STEEPLED - STEEPLED analysis is used to scan of an organizations external Definition environment that will be particular reference to the future and any changes that may come about. - Pros.: To identify the factors that may effect on the customer, Pros & Cons products, services, profitability, market, etcof the company - Provides a simple and easy-to-use framework for analysis. - Enables to assess implications of entering new markets both nationally and globally. - Cons.: It wastes time and high cost to continuously update, the market research must conduct and scan the large external information and difficult. Honda want to make market research, marketing planning that should use STEEPLED analysis to meet the need of external information of market which Honda will active. STEEPLED analysis can help Honda overview the potential of market and what implication on the market. - VN has about 86 million populations. VN has diverse culture and Social Demographic life style. For example: North VN focus on status product, but in change south VN they focus on functional product. Family and life style - Honda want to develop automobile industry in VN market, they has Education level been attend in social factor, because they make many kind of product Health with many models that can satisfy any ages, income, gender and life Life expectancy style for VN consumers. Changes in values - For VN consumer the automobile is not only transport vehicle but and culture also to present life style, personality, class and value of users Social mobility therefore Honda has been made product diversification Attitudes towards - Living conditions is Increasingly, it were followed by the current life and leisure demand for the using automobile of Vietnamese family Religion attitudes All of the information show that VN is potential market for developing Honda automobile industry - Honda has built production and assembly manufacture in VN. The Technological Speed of change in factories have been equipped same technologies and equipment as technology other Honda factories in over the world. Computerization - Honda has been known as automobile manufacture with quality Communications product reputation in VN marketIndustrial process - Honda has strong focus on R&D department to maintaining and Materials updates their product. In addition Honda has been operate the project Transport to develop hybrid and electric technologies for their product that can Medical Innovation help to save fuel, friendly with environmental. - The company has as robust production and sales network. For instance: Honda VN HEAD > Agent Retail Consumers - Honda product can take replaced parts easy and cheap, and the consumer will be good in sale and after-sale services Honda has strong foundation, innovative technology to satisfy the customer demand, so Honda will develop and expand their market share as well as consumer confidence. through this to ensure their leading manufacturing in this industry - According to the General Statistic Office, VN has quite fast Economic
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Environmental Ecological Customer values Market values Global factor Stakeholders/ Investor values Management style Organization culture

Political Tax and Policy

developing, VN has reached GDP grow rate by 7,87% in FY2013 compare with FY 2012 is only by 7,36%. GDP is about 3000$/person/year that can make explode the automobile market, but now in VN GDP is only in average 1500-2000$/year. - The income of Vietnamese can dividend by low income: 100200$/month, Middle Income: 200-300$/months and high income is more than 300$/month. In while Honda is producing diversification product that can match for all of income class, but now in world crisis situation and the devaluation of the currency has been affected on marketing planning of Honda. Honda is focusing on develop low price product that can satisfy all of class income such as Honda City product with price only about 500.000.000 it is suitable price for any family in VN and that can create competitive advantage for Honda. - Honda developed automobile industry in Vietnam market, need to comply with regulations on environmental protection, understanding the needs of consumer, vehicles using to save fuel, safe and friendly with environmental. - VN has quite complex terrain requires of Honda products have high mobility, besides that air pollution, rain, extreme weather conditions also affect needs of consumers for automotive products. - Honda captures this element that should have developed manufacturing and assembly facilities in VN to meet the unexpected element to their product, it is the major competitive advantages of Honda in VN market. - Honda has strong brand image in VN market and always take the market research then they have known exactly that service factor is very important with VN consumer, therefore they have develop the service network and consumer card very good. - Honda open the manufacture in VN they can use the human resources in VN with cheap and open training program to recruit skilled work for producing quality product with low cost, through can determine the low price for consumer in economic situation to increase sale revenues and expand market share. - Honda's production has been a huge impacted by the VN political. At VN import duty for cars is very high around 200%, however the imported products are still popular because of cultural of VN consumers focusing on product quality and status of user. So is Honda is foreign companies of Japan, with assembly plants and production in VN, they still need to focus on product quality to enhance competitiveness and without import duty is strong competition for companies like Honda. Moreover the import duty of complete parts must be tax 30-40%, in while parts that will be complete in domestic taxing only 20-25% - The VNs tax is not deeply concerned; The company is supported by the government that will be the preferential rate. Other hand, Honda is a Japanese company, while VN received a lot of help from Japan, especially ODA bailout, so Japanese firms have a lot of incentives in VN policy It is the foundation and growth factors beneficial to Honda in the VN
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Legal Environment regulations Employment law Consumer protection

Ethical

Demographic

- Honda VN is inherited Honda's Japanese technology, so it must meet the criteria of intellectual property law, copyright law in the process of technology transfer. - Honda VN products to ensure the regulations on environmental safety. For example, Honda has built in their manufacture the refinery wastewater system, that is one of the true legal action. - When used in the human resources market VN, Honda needs to sign contracts with their employees and ensure compliance with labor laws of VN - Business Process of Honda VN must ensure the protection of consumers' rights, such as the service, after sale service and warranty - Honda must ensure with ethical standards such as safety and health, respect for human right, business transactions, communication, relationships with politics and administration, etc... - For example: Honda also actively participate in cultural, social programs, such as U21 football tournament, Sao Mai Diem Hen, Con duong am nhac, etc ... Through this method may help Honda increase awareness and friendly of consumers to the company - Vietnam is relatively young population country and 86 million populations. It is forecasting after 10 years, the Vietnam market will increase by 17 million consumers. 35% of the population concentrated in city and major city that are HN and HCM. Moreover the population is moving from rural to urban fast increase. Therefore VN is really potential market. - North VN focus on status, south VN focus on functional product - Automobile product is high price and must need less middle income consumer, it mean they must have income and more than 18 years old

1.4 Carry out organizational (Honda) auditing and analysis of external factors that affecting the marketing planning in Vietnam To carry out Honda auditing and analysis of external factors that affecting the marketing planning in VN, I want to focus on marketing audit that include the follow factors Macro marketing environment Micro marketing environment Marketing strategies Marketing organization Marketing function The marketing environment Micro is must follow some question. What are the Hondas major markets and what is the segmentation of these markets? What are the future prospects of each market segment?

According to the information I have mentioned above in 1.3 using SWOT and TOWS and Porters 5 forces analysis for Honda that have discuss clear about this section.
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For example: Honda want to develop in automobile industries in VN market, an innovate the hybrid and electric technologies to achieve their objective and to make product high quality, low cost, good price, save fuel and friendly with environmental. Macro is according to the information I have discuss in STEEPLED analysis in 1.3 in this report can make clear to this section, for example the significant developments in Honda actives environment such as economic, political changes, population or social changes, etc

Marketing strategies According to the 1.0 in this report, Honda used marketing strategy 1.0 with 3 kinds of automobile that are CR-V, Civic and Accord. In this Accord are highest price, then CR-V and Civic, with high quality and service. After issuing to operate automobile manufacture and assembly production they have changed their marketing strategies to product many models of each kind of product to achieve objectives diversification products with more choice in price and other functional for their customers. Models Prices (VN) Colors Civic 1.8 M 656.000.000 Black light, pearl gray, golden brown Civic 1.8 A 738.000.000 Black light, pearl gray, golden brown Civic 2.0 AT 825.000.000 Black light, pearl gray, golden brown Civic 1.8 MT Wise 659.000.000 Black light, pearl gray, golden brown Civic 1.8 AT Wise 741.000.000 Black light, pearl gray, golden brown Civic 2.0 AT Wise 828.000.000 Black light, pearl gray, golden brown CR-V 2.4 AT 1.078.000.000 Black light, pearl gray, golden brown Accord 3.5 (Imported) 1.710.000.000 Black light, silver gray, white City 540.000.000 Black light, pearl gray, ivory white, blue stone, titan Honda must competitive with many strong competitors such as Hyundai, Nissan, BMW, etcThey have product in any segmentation that Honda was active, their product with good price and good quality and gradually attract the consumer. Honda has been produce many model for each kind of product such as Civic 1.8 AT, MT or 2.0 in many color to satisfy their customer, but the marketing strategies in product-centric was useful. Therefore Honda has changed focus on customer demand. Honda want to satisfy their customer needs, safety, save fuel and friendly with environmental. Developing their network distribution such as HEAD in overall VN can help Honda make market research to meet any change of market trend in each period of time and take their product to customer, taking care about of them. Honda focus on produce product with low price, high quality, durable, cheap and easy to replaced parts, because they can make it in VN with their manufacture use high technologies of Honda Japan.
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Honda has strong focus on development R&D department to innovate new product with especially technologies such as hybrid and electric that can help the users to save fuel, safety and friendly with environment. In world crisis and bad economic situation, Honda has good marketing strategies to develop their business. In FY2013, they present new product Honda City with low price, buts still good in each factors that can attract the consumer in VN market. They operate the event, driving safety programmer, and BE-U or join in social, culture activities of VN to make better closely with consumers. Honda improves the service and after sale service to take care their customer in this period of time is right direction because there is no more different between many kinds of product. But in VN, the consumer is so interesting in service and after-sale service or warranty, economic condition is too advantages competitive for Honda, because their parts are easy to replaced and cheap Marketing system Honda is multinational company and has been active for long time in VN market, Honda has strong infrastructure, skilled workers, experience management that has long time active in VN market. In addition the company is focused on market research. So, we can assess that Honda has full Honda power and human resources to be able to control and build good marketing system. Using experience and incentives from VN's government for the Japanese company, Honda does not have any difficulties to any factors such as ethic, political or legal in VN market. Honda can use supplier, customers, media and company department to make the marketing organization better. Honda has wide network distribution such as Head Agent Retail Consumer, strongly R&D, good information market research, strong brand image in mind and heart of VN consumer all of the factors can help Honda crate good marketing planning and create good marketing system. Using experience human resource, skilled worker, management to control and develop the marketing system, it really not problem for Honda Co. Marketing organization Good marketing planning and marketing system need to be organized to achieve outstanding performance. According to the review in 1.1 and assess capacity in 1.2 in this report that ensure Honda has good structural capability to implement their marketing plan. For example: Strongly R&D department can make good product with good detail satisfy customer and objective of Honda. Honda strongly focus on market research that can take enough timely, correctly data to create information for marketing. Wide network distributions that can help Honda make the marketing plan rapidly. But Honda is large company, they need focus on communication in each stage and overall their system to ensure the market organization to avoid the cost and waste time.

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Marketing functions It is a review of the effectiveness of each element of the mix such as advertising, sale promotion and activities Before produce marketing planning Honda should make the market research to ensure the criteria and requirement of the company such as price and sale level that should be made for example: supply and demand, customer attitude, the use of temporary price reduction, etcThe employees have responsibility to get the correctly information to ensure the plan or the market. A review of the state of each individual product (e.g. market health) and of the product mix as a whole should be made. Honda should focus on detail and characteristic of their product to create clearly overview for their customer A critical analysis of the distribution system should be made, with a view to finding improvement. Although Honda has wide distribution network in over VN market, they must choose suitable market plan for each geographic segment. For instance: Honda markets their product in North VN, they should be focus on the status of product and in South VN they must focus on function of product. According to the information that have mentioned above Honda can see the advantages of a marketing audit that should reduce the need for crisis management, identify the information needs and forces a formal process for people thinking.

2.1 Assess the main barriers of marketing planning There is no perfect marketing plan for any company, Even in quite large and success full organizations that include some claim to be market or customer oriented. The marketing planning process is of limited effectiveness. There are number of reasons or barrier for this Confusing marketing tactics and strategy Isolating the marketing function Confusing marketing function with concept Organizational barrier Lack of in-depth analysis Confusion between process and output Lack of knowledge and skills Failure to priorities objectives Hostile corporate culture According to the scenario, Honda has some barriers of marketing planning Barriers Situation Case Cause The price of products Relationship - The VN consumer Confusing marketing between manufacturers between HEAD and has wrong tactics and strategy and authorized dealers Honda VN is the understand about is too much difference relationship the relationships of that causes damage for between the HEAD and Honda many consumers. And independent VN because the one of the famous business partner confusing
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automobile brands preferred in Vietnam is Honda that is shocking when Honda automobile sold in the price of its agents (HEAD) are excessively high compared to the proposal. Lack of knowledge - Impact on the result and skill + Confusion of production or work. between process and The employees does not have enough output skilled to perform the role and its responsibilities. It lead the confusion between process and output that can cause damage for Honda

- HEAD can sold marketing tactics product with their and strategy own price and it doesnt depend by Honda VN

Honda announced recalls recently that cover some of its most popular models. For instance: in January 2011, the company recalled 2,277 Accord 4cylinder and CR-V vehicles to replace an electrical wire harness coupler in the engine compartment. - Similarly, in May 2011, the company recalled 833,000 vehicles for a possible airbag defect. In July 2011, Honda recalled 200,000 passenger cars globally due to defective engine parts

- The company has witnessed a decline in its sales in Europe in the last few years - FY2010.The sales volume decreased due to slump in the retail sales market, increased competition and other factors. - A continuous decline in this segment could put pressure on the profit making segments and on the overall revenues of Honda. Honda large company with strong brand image in VN market but they have been error at the stage of research, production. These errors that have mentioned above it show the lack of knowledge and skill + Confusion between process and output

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2.2 Examine how Honda Vietnam may overcome barriers to marketing planning Barriers Lack of knowledge and skill Overcome barriers - Recruit skilled-workers, operating training program to development and improve their skill and knowledge of employees. - Use control and testing system in production process to ensure the quality of product. - Using experience management to monitor the business activity Confusion between process - Control and testing the raw material, spare parts. The employees must take more responsibilities for their work and output - Searching for more suppliers to ensure the quality of product such as airbag Confusing marketing tactics - Honda should be set up long-term development strategies and make it clearly overview for their consumer to avoid and strategy the mistake of the Honda organizational such as in this case there is no uniformity of price, although the VN consumer understand that HEAD is belong to Honda VN - Clearly information about the marketing tactic and strategy in internal organization

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Conclusion In this report, I have shown and discuss to clear overview about the marketing audit of Honda VN in automobile industry. It solve the problem follow Review changing perspectives in marketing planning Evaluate an organisations capability for planning its future marketing activity Examine techniques for organisational auditing and for nalysing external factors that affect marketing planning Cary out organizational auditing and analysis of external factors that affect marketing planning in a given situation

I have mentioned and give the conclusion that Honda has strong brand image in VN market and big advantage competitive to develop and expand their company in automobile industry In addition, I will show the barriers of marketing planning in overview and some barrier and solve method for Honda VN situation

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Reference List Hi, ng. (2013). Honda bn 4,05 triu xe trong qu kinh doanh I/2013.Available: http://www.baomoi.com/Honda-ban-405-trieu-xe-trong-qui-kinh-doanhI2013/145/11638899.epi. Last accessed 11th Aug 2013. General Statistic Office. Available: http://www.gso.gov.vn. Last accessed 11th Aug 2013. Hondavn.com. Last accessed 11th Aug 2013

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