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.

The Boston ...

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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 ...

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dedicated to
being a low cost 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 ...

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Marketing Of Honda Motorcycles. (2004, April 20). Retrieved March 24, 2017, from http://www.essayworld.com/essays/Marketing-Of-Honda-Motorcycles/6561
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PAPER DETAILS
Added: 4/20/2004 03:30:01 PM
Category: Miscellaneous
Words: 1671
Pages: 7

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