Hondas Merketing Strategy


Marketing of Honda motorcycles in the USA
The American Honda Motor Company was established as a subsidiary by
Honda in 1959. During the 1960's the type of motorcycles brought by
Americans underwent a major change. Motorcycle registrations increased
by over 800,000 in five years from 1960. In the early 60's the major
competitors were Haley - Davidson of U.S.A, BSA, Triumph and Norton of
the UK and Motto - Guzzi of Italy. Harley-Davidson had the largest
market share with sales in 1959 totalling a6.6 million dollars. Many of
the motorcycles produced were large and bulky and this led to the image
of the motorcycle rider as being one who wore a leather jacket and went
out to cause trouble.
...

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growth of their own domestic markets. The high production for
domestic demand led to Honda experiencing economies of scale as the cost
of producing motorbikes declined with the level of output. This provided
Honda to achieve a highly competitive cost position which they used to
penetrate into the US market. " The basic philosophy of the Japanese
manufacture is that high volumes per model provide the potential for
high productivity as a result of using capital intensive and highly
automated techniques. Their marketing strategies are therefore directed
towards developing these high model volumes, hence the careful
attention that we have observed them giving to growth and market
share." (BCG p.59 ).
The report goes on to show how Honda built up engineering competencies
through the innovation of Mr Honda. The company also moved away from
other companies who relied upon distributors to sell their bikes when
the company set up its headquarters in the west coast of ...

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producer, utilising its dominant position in Japan to force
entry into the U.S market, redefining that market by putting up the
nicest people image and exploiting its comparative advantage via
aggressive advertising and pricing.

Pascale tends to disagree on many points of the BCG report. The report
suggests that there was a smooth entry into the U.S market which led to
an instant success. Pascale argues that Honda entered the American
market at the end of the motorcycle trade season showing their impotence
to carry out research in the new market. As they entered the market at
the wrong time sales were not as good as they should have been and any
success was not going to be ...

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PAPER DETAILS
Added: 11/24/2005 01:29:03 PM
Category: World History
Type: Premium Paper
Words: 1663
Pages: 7

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