Honda Case
Honda considers the European region as one giant segment and they apply the same marketing mix for all the countries in Europe, this is not applicable in Europe as it`s very diversified market in terms of demand , culture and economy.
Countries in Europe should be segmented and then applying the marketing mix that fits every segment
Price: Honda should change their pricing strategy in order to compete in the European market, prices are considered high (almost same as competitors) , they should lower the price in order to compete in the European market and in general Honda`s perception is considered low quality and a second car for family or housewives with limited cash.
Promotion: Management should keep attention to the culture difference while executing the advertising plan as successful advertising in low context culture differs from that in high context culture. In high context cultures in countries like France, Spain and Italy rely on contextual cues like gender, age and balance of power and not on physical written text, on the other hand low context cultures like Germany and U.K., there is far less emphasis on contextual cues. * Honda`s website focus only on cultures of high context like Germany as it contains large amount of information about the product that is much appreciated by high context cultures , Another website should be created for low context cultures that is mainly based on an implicit style where the emphasis is on the overall feel and outlook rather than on feeding of pure information. * Advertising objective should be redirected to create awareness and focus more on Honda cars with low CO2 emissions which is one of the main competitive advantages that differentiate Honda from other competitors and focusing on such features will motivate customers to drive low emission cars in order to get the privilege of special tax brackets.
Place: Honda should take advantage of the manufacturing plant located in UK to improve sales and acquiring
Countries in Europe should be segmented and then applying the marketing mix that fits every segment
Price: Honda should change their pricing strategy in order to compete in the European market, prices are considered high (almost same as competitors) , they should lower the price in order to compete in the European market and in general Honda`s perception is considered low quality and a second car for family or housewives with limited cash.
Promotion: Management should keep attention to the culture difference while executing the advertising plan as successful advertising in low context culture differs from that in high context culture. In high context cultures in countries like France, Spain and Italy rely on contextual cues like gender, age and balance of power and not on physical written text, on the other hand low context cultures like Germany and U.K., there is far less emphasis on contextual cues. * Honda`s website focus only on cultures of high context like Germany as it contains large amount of information about the product that is much appreciated by high context cultures , Another website should be created for low context cultures that is mainly based on an implicit style where the emphasis is on the overall feel and outlook rather than on feeding of pure information. * Advertising objective should be redirected to create awareness and focus more on Honda cars with low CO2 emissions which is one of the main competitive advantages that differentiate Honda from other competitors and focusing on such features will motivate customers to drive low emission cars in order to get the privilege of special tax brackets.
Place: Honda should take advantage of the manufacturing plant located in UK to improve sales and acquiring