HONDA AUTO COMPANY MARKET RESEARCH PROPOSAL -CONT

Honda Auto Company Market Research Proposal

Student’s name

University affiliation

Table of Contents

Executive summary……………………………………………………… 3

Introduction……………………………………………………………… 5

Background………………………………………………………. 5

Objective of the study……………………………………………. 6

Statement of the problem…………………………………………. 8

Approach to the problem ………………………………………… 9

Cost and Time analyses……………………………………………11

Methodology……………………………………………………………… 12

Research design…………………………………………………………… 13

Results of the research..................................................................................15

Reporting…………………………………………………………………. 18

Limitations………………………………………………………………… 19

Conclusion………………………………………………………………… 20

References………………………………………………………………… 22

Executive summary

In order for any business or corporation to prosper, it must conduct thorough market research for its product and services. The main purpose of conducting a market research is to provide company’s management with valid, reliable, accurate, and current market information (McKinley, 2005). Due to the competitive business landscape and the ever-changing business trends attributed to deprived decision making, the research ought to provide sound data. Moreover, as company’s marketers, it is of great significance to knot how consumers’ make decisions pertaining purchase. In addition, it is important to identify the target market in order to choose appropriate products, and promotion technique.

In the case of competitors, a business generates the ability to challenge their market supremacy and the research offers insight to understanding their marketing approach. In any corporation, marketing managers generates various tactical and strategic decisions during the process of satisfying and identifying customer needs. Some of the decisions they make in a company include prospective opportunities, market segmentation, target market assortment, market performance, and implementation of marketing programs. The above decisions shape marketing products variables such as pricing, distribution, and promotion. Consequently, the above variables help marketers in any business to associate consumers with its products (McKinley, 2005).

Furthermore, carrying out a market research helps an organization to understand consumers’ complexity. It assists a business in getting rid of any uncertainty that a consumer has concerning its products and services, and marketing variables. It is hard to predict the reliability and accuracy of marketing programs, in the absence of appropriate data. Marketing research conducted by any organization, generates adequate information on convenient and non-convenient aspects and consumers; in addition, information obtained enhances the effectualness of verdicts marketing managers tend to market. The relevance of marketing research to an organization is to provide significant information that helps managers make appropriate decisions on its products and business trends (McKinley, 2005). This paper via qualitative evaluation of Honda Auto Company case study identifies the organizations target market, and their tastes and preferences in the American market.

Honda Auto Company Market Research Proposal

Chapter one: Introduction

Background:

Honda Company is a multinational automotive corporation with headquarter in Japan. It primarily manufactures motorcycles and automobiles; moreover, it is the world’s largest producer of internal ignition engines. In 2001, Honda Company became the second largest automobile manufacturer in Japan. During the same year, it became the eighth automobile producer in the world. Its products in the international market consist of Insight, Fit, Accord, Civic, CR-Z, CR-V, Odyssey, and Legend. In the United States market, Honda increased its production in the year 2008 to meet increased Hybrids and small cars demand. The same year the company oversaw the shuffling of American production in order to keep assemblies busy and boost their output (James, 2007).

American Honda Motor Company is a subsidiary of Honda Motor Company founded in the year 1959 (James, 2007). It has headquarter is in Torrace, in the county of Carlifornia. The company combines product service, sales, and coordinates Honda activities in the larger American market. Its responsibilities include marketing, distribution, and sales of Acura and Honda brand automobiles. Furthermore, it is involved in the selling of Honda power sports products. These products include scooters, all-terrain vehicles, and motorcycles. In addition, it also deals in power equipment products, which include tillers, lawnmowers, generators, marine outboard engines, and string trimmers. The Honda American Acura-brand model includes RDX, ZDX, MDX, TSX, ILX, RL, and TL (James, 2007).

Honda is the first multinational automotive company to benefit from American market. It was also the first to create a subsidiary to oversee marketing and selling of its products in the United States. Moreover, it was first in the northern America to manufacture automobiles. The company established a research and development center in southern California in the year 1975. In the region, the company oversees product research and design facilities for both Honda Acura models. Moreover, it has power equipment and new-model development research centers in the region.

Before entering the American market in late 1950s, the company’s president during that period, Kihacho Kawashima conducted a thorough market research even though he knew nothing about America. Although Honda had minimal resources’ during that period, it sought to use labor rather than machines with minimal budgets. The company’s strong entrepreneurial culture in that period steered its growth and establishment in the United States. It developed the urge to experiment with new products and technologies; moreover, the company was willing to take risks for growth and expansion purpose (James, 2007).

Objectives of the research:

This research aims at highlighting potential markets for the company’s product through carrying out an in depth scrutiny of the American market. It also aspires to identify the company’s target market in terms of segmentation and consumers tastes and preferences. Another objective is to determine the competitiveness of the automotive industry, the most preferred Honda product, and the frequency of use.

In addition, the research covers influence instinct of Honda products, and the rating of the company’s product by its potential customers. The research identifies the best way Honda can tailor its product to suite customers need. By conducting the research, the company will attempt to outline results and apparent solutions to improving its target market.

To be more specific, the objectives of the research are:

· How do consumers view Honda products in terms of quality, affordability, and pricing?

· How much customers can spend on Honda products compared to other Companies products basing on the aspects of Average Cost, above normal cost, and below normal cost.

· How Honda Company can improve its product conditions.

· How identified target market rates Honda products on a scale of “10” basing on different variables such as good, average, and below.

· Different categories, which range from somewhat pleasant, very unpleasant, and very pleasant that consumers identify their feeling with especially after purchasing Honda product.

· The research will also try to explain how often consumers in the target market bracket often use Honda product. It will be under the aspects of daily, monthly, quarterly, and annually.

· Another aspect the research will try to identify is how the company’s product influences consumers’ feelings. Variables that will feature under this survey aspect are essential, fashionable, and just transport factor.

· The research will try to inquire from different consumers’ the type of product they prefer and why.

· Furthermore, the research will tend to ask consumers’ the best way the company can tailor its product to suit their needs. It will focus on the following aspects style improvement, warranty, and performance.

Statement of the Problem:

Honda Corporation discovered that after its establishment in the American automotive industry, there was a lot of competition and ever-changing business trends that influences customers’ preferences and tastes. These trends affect psychographic characteristics of different target group. The attempt to satisfy customers’ needs by different automotive companies in the region, without conducting a thorough market analysis has not been successful. As day’s elapses, the situation in the ground is still the same (James, 2007).

Due to the company’s increased production since the year 2008, the company has been focusing on mass production of automobile (Berger, 2011). To identify extra market for the produce products’, the company should try to go deeper into the ground in order to research on an extra customer base. Honda Company, owing to its reputation of luxurious and expensive automobile, it has to identify how consumers’ perceive their products basing on the above aspects. Since the last decade, there is increased competition in the sector and for the company to retain its market share it has to conduct periodic market research with the aim of retaining and expanding its current market share.

The main reason behind increasing competition in the sector is the fact that many companies are free to enter the market. According to porter’s five forces market analysis, new entrants’ posses a great challenge to the existing firms, which may include destabilizing their profit margin (Berger, 2011). There is no doubt that basing on this factor, Honda Company management, sought to conduct market research to avoid the competitive structure of the industry. Moreover, since customers’ in the industry tend to possess various psychographic characteristics, for example, lifestyle, attitude, and personality, the company needs to know which production line to focus on.

On the other hand, since the company is popular among most Americans, it has failed to reach its target sales in the recent years. Therefore, it has to deduce an approach that has to offer a systematic and standard solution for increasing sales and identifying new markets. Some of the major problems the research focuses on in order to provide a solution are outlined in the objectives part of these research paper. The main problems include:

· To identify the company’s target market in America by using segmentation techniques in order to decide feasible solutions that will assist Honda Corporation in solving the existing problem.

· To determine possible ways of persuading consumers’ purchase more of Honda products after incorporating their tastes and preferences in the new products.

Approach to the problem

This paper uses a statistical approach to the research problem. Researches will utilize statistical properties to determine structural invariant. Probabilistic approach will only provide estimates related to structural invariants. The research will conduct studies on the target market statistical properties. In order to make the process effectual, the team will a number of targets referred to as structures. This approach will help in solving research questions formulated by the research team.

Below is a list of research questions that the team will use to gather data from the company’s target market:

· How do you view Honda products?

· How much can you spend on Honda products compared to other Companies products?

· How can our company improve product conditions?

· How would you rate our products?

· On a scale of “10” how will you rate, your interest to our products?

· Which of the following category explain your last feeling after purchasing our product?

· How often do you use our products?

· How does Honda influence your daily life?

· Which Honda product do you prefer the most?

· What is the best way for Honda to tailor its product to suite your needs?

Cost and time analyses

Chapter Two: Methodology

This is a theoretical analysis of methods a research employs. In the case of, Honda Auto Company research proposal, a combination of both qualitative and quantitative research design is in use. The above approaches are used to identify different aspects in the target market that influences their ability to use Honda products’ (McKinley, 2005). It is possible through a thorough analysis of consumers’ thoughts and views by sending questionnaires. Moreover, the researchers employ the use of observational method to come up with a clear picture of the ethnography and phenomenology.

Conversely, the strategy employed by the researchers helps in identifying weakness of the previous methodologies employed by the company. The combined methodology provides a thorough understanding of the behaviors of the target market. In order to analyze certain problems, questionnaires will help record responses of certain target group. In this context, this approach will help analyze varying groups in terms of language, culture, and ethnic variations. In the research study, the most popular type of questionnaire used was open-ended and multiple-choice questions. Researchers use different approaches to relay questionnaire to the intended audience. They employed the use of face-to-face, telephone, and internet approach in order to cover a large audience (McKinley, 2005).

Chapter Three: Research design

The research focuses majorly on determining Honda Company target market and factors that influences their tastes and preferences. For this reason, we opt to use mixed qualitative-quantitative survey design to collect information for the business to develop competitive strategies. Moreover, the two approaches were specifically utilized using questionnaires that had set of questions structured in ways to attain maximum possible amount of information. The tailoring of the questions was in such a way that was simple and not cumbersome for the target audiences. Informal interviews were also an additional method of data collection and it involved the utilization of telephone interviews as well as personal interviews during focus groups or during visits to the shops and factories by the target audiences.

Telephone and face-to-face interviews relies on numerous preset questionnaires already in the mind of the interviewer (Creswell, 2003). In addition, interviewers should be open and ready to explore any topic that comes up during the interview process. On the other hand, among the resources utilized in identifying the target market are print resources. The resources might include demographic profile produced and held by the local chamber of commerce in the particular area within the region. These provide extensive demographic information as well as immense information regarding retail and economic sales data for the years passed. Another resource utilized was the internet. In our modern global village era, the internet is an excellent resource used to gather information regarding market characteristics in particular areas. Furthermore, the needed information might come from websites solely dedicated for this purpose. These include websites such as those of the Bureau of Labor Statistics; above all, another resource utilized consisted of premium web based consumer market databases.

In the case of Honda Corporation, which experiences immense competition across the globe, qualitative-quantitative research design is a divergent approach that can help it overcome its competitors. Product differentiation can take course basing on the company’s choice of achieving product differentiation. For instance, in Honda Company, product or service differentiation occurs on the performance quality and customers reliability. According to the research, different customers had different perspective of the current products produced by Honda Inc. Due to the increased competition, and for the company to maintain its market share and seek more dominance then its products and services need to be re-defined. Using the above approaches, the target audiences attitude towards the products offered was positive but to some extent. For this reason, the company needs to focus on several aspects, which includes form, features, reliability, style, and service delivery by using diverse techniques.

Furthermore, the combination of qualitative-quantitative research design improves the competitiveness of the company in the automotive industry (Creswell, 2003). The two methods when combined, offers a perfect opportunity for a company to understand its market threats and capitalize on them. Since the company faces many challenges in the automotive industry and yearns for product differentiation, the best way to realize this is by carrying a thorough market analysis. In addition, it can employ extra research methods such as observational techniques. Qualitative tool on one hand helps the company analyze market threats, competition, and product differentiation in the industry (Creswell, 2003). On the other hand, company’s researchers also employ the use of observational techniques to draw a picture of the differentiated products and combine it with the data collected by the above techniques.

Chapter Four: Results of the Research

Results found were put into two different categories. The first category consisted of the target market worksheet. The second category contains Honda Corporation reaction to the target market results. As earlier outlined, the main purpose of this research study was to identify various characteristics that influence target market, and strategic decisions’ of the company in relation to the market response to ease competitiveness in the industry.

The following is the target market worksheet that shows results of 10 customers who responded to the questionnaire assembled by the research manager.

Survey QuestionsCustomer 1Customer 2Customer 3Customer 4Customer 5Customer 6Customer 7Customer 8Customer 9Customer 10



 

How do you view Honda products? Good

Quality inforced, Econmomical, Cheaply made?

econmomicalCheaply madeQualityQualityQualityQualityQualityeconomicalqualityCheaply made



 

How much can you spend on Honda

products compared to other Companies

products? (Average Cost, Above normal, Below

normal?)

AverageAboveBelowBelowBelowBelowBelowAboveAverageAbove



 

How can our company improve product

conditions?

More MPGQualityReduce PriceImprove StyleReduce PriceReduce Price

Add more

optionsMore MPG

More

Electric

VersionsQuality



 

How would you rate our products? Good,

Average, Below expectations?

GoodBelowGoodGoodGoodGoodAverageGoodGoodBelow



 

On a scale of “10” how will you rate, your

interest to our products?

7178776773



 

Which of the following category explain your

last feeling after purchasing our product?

Somewhat pleasant,Very unpleasant, pleasant?

PleasantUnpleasantPleasantPleasantPleasantPleasantSomewhatSomewhatPleasantUnpleasant



 

How often do you use our products?-

Daily?, Monthly?, Yearly?, none

dailynoneDailyDailyDailyDailyDailyDailyDailyNone



 

How does Honda influence your daily life?

Essential?, Fashionable? Just transportation?

EssentialJust TransportEssentialEssentialEssentialJust TransportJust TransportJust TransportEssentialNone



 

Which Honda product do you prefer the

most?

CivicCivicCivicCR-ZAccordCivicAccordAccordFIT EVCivic



 

What is the best way for Honda to tailor its

product to suite your needs?- Improve Style?,

Warranty? Performance?

PerformanceWarrantyPerformancePerformancePerformancePerformanceStylePerformanceStyleWarranty

The following outlines Honda company response to the questionnaire results assembled by the research manager.

· The company focused on the mass production of civic model to meet consumer needs.

· Moreover, their performances were re-engineered to meet customer expectations.

· Honda Company emphasized the need to produce quality, environment, and economic friendly automobiles.

· During the manufacturing process, different psychographic characteristics were put into consideration as per the customers need.

Reporting

The research manager will only present the final document to the Honda Auto Company management. The company’s management only needs to see the final research proposal as this will be possible for the management to evaluate the cost and analyze results vividly. After the company’s management analyzes the final document, and asserts that every aspect is in order, the research team will conduct a presentation during the annual general meeting to the board of directors.

Limitations

Any survey contains challenges especially during recruiting and finding correct participants in the target population. In the case of Honda Company, market research contains various constraints. Lack of enough time to carry out the survey, and insecurity limits access to the intended target is the major challenge, which accompanies a face-to-face survey method. During surveys such as the one above, many respondents’ lie for they want to do away with the surveyors because they feel like it is a waste of their time. Like the case of Honda, when you rate company’s aspects in the scale of 1-10, it is hard to determine what the rating of certain individual entails as opposed to the same rating of another individual (Creswell, 2003).

On the other hand, another limitation comes to play when the survey fails to be all-inclusive, for example, conducting questionnaire on same age group, same gender, or ethnicity. Even though the internet survey method proves to be viable, and had many potential, it is difficult to identify the participant (Creswell, 2003). In this case, a participant might be underage, or he or she may not be having any car, therefore give a false response. In phone interviews, it is difficult to come up with the list of potential respondents’ by guessing digits. Consequently, a surveyor might identify unwilling respondents’, which sometimes might result to disputes between the company and its own target market.

Conclusion

Basing on the research results, it is clear to suggest that Honda Company has a strong target market base. This is because for every customer interviewed rated high the company’s product both on the scale of 1-10 and on the satisfaction factor of their product. Even though the survey focused on limited audience, in different vicinity, it is clear because this reflects the company’s diversification. Moreover, respondents were asked if the product satisfies their needs. Many respondents claimed overwhelmingly they received satisfaction. It was evident that most respondents did not understand the meaning of somewhat.

Furthermore, the result shows that most customers rely on a certain product mostly from the company. In this case, most of them prefers civic over the other models. Consequently, the same still feel that the models performance should go alterations. All these information helps the company’s management to devise strategies that will see their products achieving much acceptance and competitive advantage. According to the survey, frequent researches by the Honda Company have arguably increased its sales and market share. Many consumers however do not know how to identify which model of automobile is quality than the other especially female gender.

On the other hand, market research helps an organization to understand consumers’ complexity and tailor specific approaches to satisfy consumers (McKinley, 2005). It assists a business in getting rid of any uncertainty that a consumer has concerning its products and services, and marketing variables. It is hard to predict the reliability and accuracy of marketing programs, in the absence of appropriate data. Marketing research conducted by any organization, generates adequate information on convenient and non-convenient aspects and consumers; in addition, information obtained enhances the effectualness of verdicts marketing managers tend to market. It is essential for organizations to conduct market research periodically in order to react to the ever-changing business environment. This will also help a business to formulate plans that will help it overcome extreme competition.

References

Berger, A. (2011). Global Corporate Strategy - Honda Case Study. München: GRIN Verlag GmbH

Creswell, J. W. (2003). Research design: Qualitative, quantitative, and mixed methods approaches. Thousand Oaks, Calif. [u.a.: Sage Publ.

James, W. (2007). Driving from Japan: Japanese cars in America. Jefferson, N.C: McFarland.

McKinley, M. (2005). Marketing alignment: Breakthrough strategies for growth and profitability : the path to market leadership. Princeton, N.J: Recording for the Blind & Dyslexic.

Sheet1

Survey Questions	Customer 1	Customer 2	Customer 3	Customer 4	Customer 5	Customer 6	Customer 7	Customer 8	Customer 9	Customer 10
Ø  How do you view Honda products? Good Quality inforced, Econmomical, Cheaply made?	econmomical	Cheaply made	Quality	Quality	Quality	Quality	Quality	economical	quality	Cheaply made
Ø  How much can you spend on Honda products compared to other Companies products? (Average Cost, Above normal, Below normal?)	Average	Above	Below	Below	Below	Below	Below	Above	Average	Above
Ø  How can our company improve product conditions?	More MPG	Quality	Reduce Price	Improve Style	Reduce Price	Reduce Price	Add more options	More MPG	More Electric Versions	Quality
Ø  How would you rate our products? Good, Average, Below expectations?	Good	Below	Good	Good	Good	Good	Average	Good	Good	Below
Ø  On a scale of “10” how will you rate, your interest to our products?	7	1	7	8	7	7	6	7	7	3
Ø  Which of the following category explain your last feeling after purchasing our product? Somewhat pleasant,Very unpleasant, pleasant?	Pleasant	Unpleasant	Pleasant	Pleasant	Pleasant	Pleasant	Somewhat	Somewhat	Pleasant	Unpleasant
Ø  How often do you use our products?- Daily?, Monthly?, Yearly?, none	daily	none	Daily	Daily	Daily	Daily	Daily	Daily	Daily	None
Ø  How does Honda influence your daily life? Essential?, Fashionable? Just transportation?	Essential	Just Transport	Essential	Essential	Essential	Just Transport	Just Transport	Just Transport	Essential	None
Ø  Which Honda product do you prefer the most?	Civic	Civic	Civic	CR-Z	Accord	Civic	Accord	Accord	FIT EV	Civic
Ø  What is the best way for Honda to tailor its product to suite your needs?- Improve Style?, Warranty? Performance?	Performance	Warranty	Performance	Performance	Performance	Performance	Style	Performance	Style	Warranty

Sheet2

Sheet3

_1136745794.xls

Chart1

attitude	attitude	attitude
value	value	value
belief	belief	belief
lifestyle	lifestyle	lifestyle

consumer 1

consumer 2

consumer 3

4.3

2.4

2

2.5

4.4

2

3.5

1.8

3

4.5

2.8

5

Sheet1

	consumer 1	consumer 2	consumer 3
attitude	4.3	2.4	2
value	2.5	4.4	2
belief	3.5	1.8	3
lifestyle	4.5	2.8	5
	To resize chart data range, drag lower right corner of range.