Research methodology

MARKET RESEARCH
Market research is the critical tool to derive the maximum advantage over the competitor from
the same market. The main advantage of doing the market research is the it helps to find out the
important information like market trend, market need, size of the market, future opportunities
and competition.
The research in the automobile industry is very vital and expensive since the auto mobile
industry is changing rapidly in the case demands according to the trends in a worldwide demand.
When we closely analysing the automobile industry the trends can be pointed out like the
frequent merging, outsourcing, off shoring etc. The component design of the most of the
countries in this field is now been outsourced to the countries which the labour and the row
material cost is less. Another important trend we can observe in the auto mobile industry is that
the popular auto makers are now expanding their business to the provide the financial service to
their buyers. In the case of the south East Asia countries also this modern trends are dominated in
the changing scenario of the market trends.
In the field of the technology the Morden technology like hybrid and green technology, clean
diesel, fuel cell technology etc are the areas the motor companies focusing and researching on.
The skyrocketing price of the gas is the main challenge the companies facing in today business
environment. Improved technology for the fuel efficiency and environmental care are the most
effective business strategy for increasing the market share in the south East Asian courtiers. The
market in the south east Asian countries becoming saturation rapidly. Even the used care
business chains are establishing their business chains all over the globe due to the globalisation.
Another major factor which has influenced the automotive industry is the E commerce. Being
one of most important e marketing trends e commerce can play a vital role in the marketing and
sales sector of auto mobile manufacturing industry. The internet is becoming the first option of
the customers to get the information and making the purchasing decisions. For example the
online site Autobtel helps to direct the customers to the dealer, but at the same time the site act
like making bids on the financing and insurance business of the car manufactures to increase the
level of competition in the market. Since the basic principle is that the lower price and the higher

quality will enhance the customer to buy the product, companies have to consider a lot of things
in the market trough the market research. These include the adoption of the different cost
effective techniques and methods which should be effective in compelling the customers to buy
the new car in the market. (Alacrastore,2009)

Target market
Positioning a product in the market is the most difficult phenomena of every company. Because
this requires a lot of market research and planning in targeted market. In this case the Honda
Company is targeting the south East Asian market. The car designed is especially for middle
class people since it is an economic car. The south East Asia countries are developing countries.
so high expensive uneconomic cars cannot be successful in that market . The south East Asian
countries are recovering fast from the bad effect of financial crisis. They have demonstrated the
great recovery from the global financial crisis. The economic growth rate of all most six
countries had reached to &,3 percent in 2010. This was about 1.3 percent in 2009. One of the
major developments was in the transport infrastructure which made the country a good market to
introduce economic cars. The economic growth can be indentified from the graph.

(GDP growth rate of South East Asian countries)

The south eastern countries are focusing to develop an integrated transport infrastructure as the
part of their development plan. This will promote the car manufactures to develop new models
which suite the new strategy of the countries. The new transport infrastructure will enable the
connectivity between regional and sub regional places. The main objective of the strategy is to
reducing the excessively increasing transport cost, improving transport sector and also to
increase the competition, efficiency etc. (oecd ,n.d.). This business environment is best for
placing an economic car. Since the transport infrastructure is growing the middle class people
tends to by the car which can be adaptable by them to maintain. The new Honda car is a fuel cell
car with advanced fuel efficiency technology, so it will best suited to this business environment.
To study the market i suggest the inductive method of research because the study will proceed
with the basis of the above observations we have and finalize to a theory. The observations are
the rapid overcome of the economic crisis and this can be studied more detailed with this
research method.
INDUCTIVE RESEARCH METHOD

The inductive method is the opposite way of deductive method of progressing the research. The
reasoning of this type of approach is moving from a more specific observation to broader idea or
theories. So this approach can be also called the bottom up approach. The first step is we bring
the specify theory we want to study on and measure it by identifying the regularities and
patterns. Formulates the hypothesis that we can explore the specific information. Finally ends the
research in much general theories or conclusions. (Social research methods, n.d)

Targeted customer
Customer can be defined as the human to whom the company buys his products. Everyone in this
world is a customer of one or other. Selecting the good product according to his wants and needs
with the lowest available cost is the common nature of customers around the globe. The new car
of Honda is focusing on the following customer group.
Middle class people: The middle class people of South East Asian countries are highly emerged
by the new urban educated people and due to the stated modernization and capitalist
transformation. In the last two decade new urban middle class has developed as a result of the
educational expansion of the society. The people became more aware about the need of
education in enhancing the life style. Thus they can be get attracted to new trends in the market
if it is economic to them. Honda is focusing on delivering a new product which will suit this
requirement of the customer with the energy efficiency and other green technology of the car.
Youth and family: Since the car is well suited for the private use of the family this segment of
the market is also targeted. The interior space of the car is specially designed to occupy
maximum members of the family and their comfort level is also taken into account. The youth
population is also attracted to the car because of the Morden technology multimedia facilities are
also integrated in the car. Since the car is economic to use because of the less fuel conception
this can be more use full to this two groups of the customers.

Customer profile
To develop the strategy we need to know detailed about the customer profile. This includes the
information like their style, their needs, demand, preferences etc. This is critical in the placement
of a new product in the market. Sometimes companies made mistake in placing the product in
the wrong market without analysing the customer profile of the market. Now a days there is a lot
of research organizations to do research for the companies which are planning to introduce a new
product in particular market. The survey methods and the interview methods of research is very
well important for this type of research because it helps to obtain the personal preferences of the
customer in a specified locality so that the company can place a new product according to the
need of the customers.

For the new car of Honda as well the perfect picture of the customers they targeting is important.
This helps the company to make some final adjustment to meet the upcoming trends and also to
ensure the the product is well suited in the market. The deductive method of the research can be
implemented in this type of research. This research studies different factors which affects the
profile of the customer and them confirms the final trend in the customer. So i recommend the
deductive method of research in this.
DEDUCTIVE METHOD OF RESEARCH

In this method of research approach the reasoning is moving from more general to the particular
and specific factors. This is the top to down approach in a manner. At first we will gather the
theory about the topic under consideration first and then the formulation of the hypothesis is the
next step. Thus we can narrow down the topic by the testing of the hypothesis weather it is true
or false. By the effective data collection methods we collect data and observations to analyze the
hypothesis. This may lead the researcher o final state in which we can confirm the result with the
original theory. (Lancaster, 2005 ,p.46)
QUANTITATIVE AND QUALITATIVE DATA ANALYSIS
An effective data collection process may deliver both numerical figure and literal information.
For getting the right information required for the research we need to analyze the data with the
right data analysis techniques. Normally the data logic, number and the changing static data can
be considered as the quantitative data. In this more precise convergent reasoning is good rather
the divergent reasoning. But the data deals with the words, emotions, feelings, experience,
colour, interpretations etc and all things which cannot be quantified can be considered as the
qualitative data. (Hague ,2009, p.59)

Some of the traditional quantitative data collection methods are survey, questionnaire etc
through which the behaviour of a whole population can be derived from a smaller group. The
process is called the sampling, but a sample should be selected in such a way that it should
represent the whole population we want to research on. (Asia market research, 2000) By the
effective utilization of these techniques the market research can be framed out in such a way that
we can understand and measure the complexity of human behaviour (customer). For the data
analysis of the Honda car i am suggesting Triangulation method of data analysis. In
Triangulation method of data analysis uses quantitative and qualitative data, both primary and
secondary data to do the comparison to finalize the result. In this case also the customer profile
information from interview (Qualitative) , questionnaires (Quantitative ) and pervious researches
can be analyzed to study the customers and South East Asian market.

PRODUCT DEVELOPMENT: RESOURCES ALLOCATION

In the development of a new project the main goal at the primitive stage will be the effective
resources allocation because this is an important factor determines the profit of the new project.
For example the most efficient allocation of resources can be defined as the distribution of
available resources in such a way that all resources are fully utilized and there are increasing
return to the scale . For this the formulation of a Resource management category is important in
an organisation. Since in the current business environment the resource is limited even though
the human needs are unlimited, the effective utilization is good for the organization and the man
kind as well.
Well the main four factors in the production are the labour, land, capital and entrepreneur the
resource required can also be classified into three they are,

Human resources

Land resources

Investment resources

The most important factor in allocating this resource is that how resource management strategy
is employed? the combination of the resource also shows the effectives of the resource
allocation strategy of the company. Through this the organisation can get the maximum output
and profit. The marginal productivity of the recourses should be keep in mind in order to get the

maximum profit margin. For example if the marginal productivity of all the resources are
effectively set and same then the output from the production will be high. The decision making
regarding the resource allocation is the next critical factor should be under consideration. If the
manager assigned to the task should carefully observe all the process and take decisions if the
cost can be saved without losing the quality of the products. Thus the process can be making
more productive to the availability of the resources. The time management of the professionals
also plays a vital role in the effective resource allocation to the project. (Latest business updates,
n.d.). For the new Honda car needed the following main recourses

Technology: The main technology which is planning to implement in this New car is the
Fuel cell. This is actually an alternative fuel vehicle which uses hydrogen for deliver
power. The technology is that the chemical energy of hydrogen is converted into
mechanical energy which is greener to the environment, economic to the user etc. The
development of this advanced technology to an economic car needs a good R & D
department. Other already existing technologies like wi fi, power driving system etc are
also incorporated in most economic way. So technological resources are extremely
important to this project.

Financial resources: The initial cost regarding this project for the R & D department,
studying the possibility challenges etc will cost the company. Since the idea need a
technical as well as market research the company have to spend some money in business
as well as technical side research. The technology is totally new to the customer new to
the customers so some should also spend on the promotion and advertisement of the New
Honda car.

Human recourses: This is the main resources the company should have, because for any
success the involvement of dedicated employees and their hard work is critical. The
success of the project starts from there. The new project requires technically talented
professionals to develop the ideas into a real car. Business professionals are required to
analyse the market and place the product perfectly in the market.

BCG MATRIX FOR HONDA

Since each stage in the life cycle of the product represent different risk levels and return the
organisation should maintain a balanced performance to coordinate all the operational activities.
Especially in the case of new product introduction it takes some resources and effort to market it
and create efficient distribution channels. For this entire purpose BCG matrix can be used as an
effective analyzing tool to understand more about the current status of the company. In the case
of Honda the automotive industry is in the star section. We can also plot other industries of
Honda like jet engines, generator bikes, water pumps etc in BCG matrix. So the investment
opportunity is open so that the new project can be promoting new product in order to main the
growth and market of the company. (Stone, 2001,p.56)

The BCG matrix us created by the Boston Consulting Group in 1970 based on the product life
cycle theory. The two main dimensions represent in the BCG matrix is the market share and
market growth. The basis of the tool is that if market share and the growth of the product is high
then the product will be in the star position of the graph.(decide guide, n.d.)
Cash Cow: This indicates the high market share and the low market growth section of the BCG
matrix. In this stage the investment should be low in order to increase the profit of the business.
Since the company need not invest more in the product and can reduce the investment in the
product promotion and development. For Honda the generators and bikes comes under the cash
cow.

Dogs: This the end stage of a product by which both the market growth and the market share are
minimum. We can liquidate the business if the product could not develop. For Honda the
business of water pump is already in liquidate stage.
Stars: the most optimum position in the BCG matrix in which the market share and the market
growth is high. The investment will be high in this case because the organisation may be the
market leader. Since the product in its high growth rate the organization should main the market
share and generate the cash from the market as well. Honda automobiles are in the star division
so that they can develop new products to sustain the growth rate. The new Honda car can be
implemented to maintain growth in the South East Asian countries.
Question Mark: This part is a high growth section but the market share of the product or the
organization is low. So in effect the cash flow will be less but the demand of the product will be
increasing. By the help of the effective management strategies we can turn thus stage into the
star section of the BCG matrix. It shows the future business opportunity of Honda. Jet engines
come under this question mark.

ANSOFF MATRIX STRATEGIC PLANNING

In 1957 the Harvard Business Review published the Ansoff matrix for the first time. Through the
Ansoff matrix the organization can select their strategy and understand the requirement to launch
their products in the simplest form. According to Macmillan the starategic choice of a company
denotes the choice to the implementation. So the strategy formulation can be the core to the
success and failure of product. (Macmillan, 2000). The Ansoff matrix helps the organisation in
setting the strategy for developing the product in current and future business environment.
(Bennett, 1994). This includes the four main strategies they are, market development, market
penetration, product development and diversification.

PRODUCT DEVELOPMENT
This is the right strategy to implement when the company is introducing a new product to the
market. This helps to keep the brand name of the company as a product innovator. Strategy an be
effective to utilize the capacity of the product. The company should focous on the factors like.
For Honda car the new strategy should be developed by concentrating on the following features

Evaluate the customer feedback of the previous products and decide the selling price according to
the competition and feedback. This information can take from the current customer feedback
system of Honda in south East Asian countries. The demand of economic and fuel efficient car
can be primarily analysed from this feed backs.

Proper and accurate forecasting of the market and sales volume of the product. Company should
make use of advanced forecasting software to predict the future sales volume profitability ,
payback period etc. So that the factors like advertisement, production rate, pricing etc can be
determined according to the forecasted values.

Evaluate the breakeven point of the new car project and also the profitability. These are the
investment apprise techniques which should be effectively calculated and analysed before making
an investment.

Marketing strategy
When developing a new product the company have to choose an effective marketing strategy to market
the product in the market. Marketing strategy of each company will be different even though the goal of
every business is same. The marketing strategy has a critical role in achieving the goal of the

organization. Honda is using different marketing strategy for their new products. This is purely based on
the range of the product in the market, price of the product and quality of the product. Company market
value is also important for framing out the marketing strategy.
For the new car the i suggest a short term marketing strategy, because the product technology is new and
customers have to accept it first. If the product is successful in market the marketing strategy can be
continued and enhance the product. If the entry is not so good company have to change the strategy so
that the product can be marketed well by adding more quality. The main reason of implementing short
term marketing strategy is that the product is new and long term marketing strategy will not help the
company to perfectly position the car in the market. So first implement a short term plan, analyse the
response of customers and then reframe the plan.
Promotion of new product
Promotion of a new product includes the plan or procedure that the product is introduce to the market.
The distribution of the products through the channels should be in the professional way because the brand
name of Honda itself is the first advertisement of the car. Company have to choose a best advertisement
method so that everybody attracts to the products. Now a days Honda is implementing a lot of marketing
strategy for example Last Chance for 2010 latest among them. Likewise Honda should use its usual
channels of advertisement to create a good picture about this car , its benefits , technology. In addition to
this company should also make use of the social networks like Face book, orkut, twitter etc to get more
response from the youngsters.