PHÂN TÍCH SWOT và yếu tố sản PHẨM của CÔNG TY HONDA VIỆT NAM TRONG LĨNH vực XE máy eNG

Table of contents
Pages
Preamble
1. An overview of Honda Vietnam..............................................................................3
1.1. The process of formation and development....................................................3
1.2. The products of Honda motorcycles Vietnam.................................................4
2. SWOT Analysis of Honda Vietnam........................................................................5
2.1. Strengths.........................................................................................................5
2.2. Weaknesses.....................................................................................................7
2.3. Opportunities..................................................................................................8
2.4. Challenges....................................................................................................10
3. Product strategies of Honda Vietnam Co.,...........................................................12
3.1. Product.........................................................................................................12
3.2. Positioning....................................................................................................12
3.3. Product Development...................................................................................14
3.4. Product Life Cycle........................................................................................14
References................................................................................................................... 15

Preamble


Marketing is the process of working with market including understanding who
are customers, what they need, want and how to meet their needs while making
profits. Customers are vital factors to a business. If you do not meet what customers
need with affordable prices, they will buy other businesses instead of buying our own.
The business will quickly fail. On the other hand, if we meet the needs of customers,
they will come back to purchase our products. This leads to increase sales and profits.
To do this, businesses need to have specific and effective marketing strategies
deployed around the 4 Ps: products, prices, promotion and distribution. Most
enterprises have implemented a marketing strategy, however not all of the businesses
will perform well and achieve high effectiveness.

Honda automobile manufacturer is the 6th largest world producer and the
world's largest engine producer with over 14 million engines annually. Honda is also
the second automobile manufacturer in Japan, after Toyota. However, we can see the
foundation of success in Vietnam is Honda motorcycle field. It is my pleasure to
analyse SWOT and Honda products in Vietnam in the motorcycle field.
1. An overview of Honda Vietnam
1.1. The process of formation and development:
- Honda Vietnam Company has offices and factories located in Me Linh - Vinh
Phuc, a joint-venture company among:
 Honda Motor Company (Japan - 42%)
 Asian Honda Motor Co. (Thailand - 28%)
 Vietnam Dynamics Machinery and Farm Machinery Corporation - 30%.
- Investment License: 1521/GP March 22, 1996: motocycle production and
assembly. By March 15, 2005, Honda Vietnam Company received the investment
license to adjust the 1521 / GPDC because of adding auto production and assembly to
their field.
- Running Capital: $ 62,900,000 (the Investment License)
- Investment Capital: $ 290,427,084
- Employment: 4,369 people (at the end of June 2007)
In March 1998, Honda Vietnam launched the first factory in Vinh Phuc. In
August 2008, the second motorcycle factory specializing in producing scooters and
number-motorcycles with a capacity of 500,000 vehicles / year was lauched in
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Vietnam. And on 7/25/2011, a joint venture of Japan announced its plans to expand
production to 2.5 million vehicles annually by building additional third plant, located
in Hanam Province.

The new plant has a total investment of $ 120 million with estimated capacity
of 500,000 vehicles per year, located in a province about 40 km from Hanoi to the
south. The major product line of scooters will operate in the second half of 2012.
The expansion of the second factory in Vinh Phuc raises production of Honda
Vietnam to 2 million vehicles. Third plant helps increase output by 25%. Motorcycle
sales of 2010 in Vietnam reached to nearly 2.7 million vehicles. If the growth rate
commensurates with the expansion rate of Honda in 2013 reaches nearly 3.4 million
products.
1.2. The products of Honda motorcycles in Vietnam
Honda Vietnam Company currently occupies
the leading position of Vietnam's motorcycle market.
Since its establishment the company has constantly
improved and brought to market cars to meet needs,
elastic trends and tastes of traveling in Vietnamese
market. Some vehicles typically used by consumers
are Super Dream, Super Dream Plus, Wave Alpha,
Wave S, Wave RS, RSX Wave, Wave RSV.... The first
generation of FUTURE motorcyle line made in 1999
has gone through 4 generations. FUTURE, FUTURE II, FUTURE NEO and FUTURE
X is directed to the strong style for men. Targeting the high quality scooter market,
Honda made many scooter models which are beautiful, fashionable with high
technology and good features to meet the needs of Vietnamese youth- modern and highincome clas. They are designed elegantly and modern following international trend for
scooter line. High quality scooters are SH, SHi, PSI, PCX, CLICK, LEAD, SCR 150cc,
AIR-BLADE, VISION, EXCEED...
2. SWOT Analysis of Honda Vietnam
2.1. Strengths:
Honda Vietnam has always been the leading enterprise in motor manufacturing
industry. Honda's market share also increased, reaching about 64% in 2010.
a. Consumers’ love and trust.
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Referring to Honda Vietnam, consumers would have thought the message "I
love Vietnam". The message is as a confirmation of customer-oriented policies of the
company. The company contributes positively to the overall development of society in
various fields such as contributing to the state budget, propagation of traffic safety and
safe driving, supporting the development education, culture, art... Honda Vietnam has
been honored by the Committee for Traffic Safety awarded the National Merit "There
are tremendous achievements in traffic safety." Corporate’s culture is considered a key
survival of the company and contributes to building the company's image. Considering
the culture of the company, first of all, it comes to the business philosophy of the
company. Honda Vietnam is based on two beliefs: respect for people and joy.
b. The company’s highly qualified technicians
The Company is also paying special attention to training and developing
human resources with regular courses in the company and training courses abroad.
As operators develop a new motorcycle, Honda always believes in conscious young
researchers. Although tested separately if only on a technical level, technical skill,
the perennial class would be better, but they easily go on the trail of the previous
studies, not adapt to the change in time of the market.
c. Quality of the products
Company's products, from first-appeared motorcycles, it leaves the deep
impression of a good quality product, durable and especially suitable to the terrain of
Vietnam and the Vietnamese physical health.
d. Proper pricing strategy
Honda's success in capturing market based not only on design and quality of
their products, but an equally important factor, pricing techniques. Honda products are
always priced to match up their clients, from the popular products to meet essential
travel needs to the high quality products can be very expensive to satisfy demand

application, showing the user's position.
Considering the current market, Sh is the most expensive. The remaining
product lines provided by Honda Vietnam is the most popular products in accordance
with the needs and the solvency of the majority of the people of Vietnam.
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e. Good infrastructure
To meet consumers’ needs of motorcycles, the company has continued to invest
in building infrastructure.
f. Distribution of Honda system throughout the country and its attention always

paid to environmental protection.
Honda

Vietnam

Company

distributes

products through a system of motorcycle shops
and services commissioned by Honda (referred to
as HEAD). The HEAD were conducted using a vacuum exhaust emissions from
motorcycles, waste oil recovery system when carrying out repair and classified as
household waste, industrial waste, oil or other oils.
g. A further advantage of Honda Vietnam is about service quality.
The company is towards to customer service goals. Research efforts

constantly making new products with the quality - safe and reasonable prices,
Honda Vietnam is trying hard to bring the highest satisfaction to customers through
sales and after-sales services. Every month, Honda Vietnam Company merges with
HEAD store holding promotions for customer service in the remote, without access
to services to HEAD. Honda Vietnam gives "the province” care service to
customers. Accordingly, the customer will be checked by free vehicle diagnostic
system used exclusively by Honda (HDS) and periodic maintenance levels
equivalent to 5000, 10,000 and 20,000 km performance, minor repairs and parts
replacement genuine cost unchanged in comparision with customers’ bringing to
the Honda Dealer.
2.2. Weaknesses
Recently, consumers are extremely indignant about the "price disturbances" of
the company's products. Most recently was the "price disturbances" of PCX. As
suggested price at Honda Vietnam, PCX is 49,990,000 vnd. But the price of this on the
market is 60 to 68 million vnd. After this, the image of Honda Vietnam has so many
bad impressions. Many people have decided to go back to the company. Many
potential customers also abandoned the idea of using the product of Honda Vietnam.
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According to Honda, the price disturbances will bring a large profit for Honda but
that's just immediate profits, but in the long run, it greatly affects the image of Honda
in the eyes of consumers, as loss of future customers.
Price disturbances are not only in this occasion but consumers can relate to
many previous disorders of the price of Honda Vietnam. Since Honda Vietnam was
established, every new product of the Honda launched has the price disturbances
occurred. In 1999, the Future sample introduction, and then followed by a spacy, Click
and especially Air Blade. Air Blade has appeared on the market since April 2007. It

has been so care so far. Honda Vietnam has no control over the product, does not pay
attention to their customers as well as management or may be the HEAD of their
mandate. Taking advantage of the loose on the management of vehicles, racing to put
up prices HEAD forces guests to "shock" because the growth rate. On the client side,
by popular reputation to affirm every class they should accept the high price. Thus, the
"price disturbances" are the fault of Honda Vietnam, due to the HEAD section, and
also partly due to customers’ error.
Thus, the "price disturbances" are the fault of Honda Vietnam, due to the
HEAD section, and also partly due to customer error. However, Honda has no control
over the product; do not pay attention to their customers as well as management of the
HEAD of their mandate.
The "price disturbances" clearly shows the weaknesses of the company:
- Low sales thought and customers’ service
- No attention to the tastes of the customers
- Poor control the retail distribution system
- No control over production costs.
Honda has not controlled over the production process, it therefore has the products
which are firstly launched recollected due to producing fault. This causes confusion for
consumers. Most recently, Honda had to recollect 2154 LEAD due to fault in fuel tank.
In spite of free-of-charge recollection and repair to customers, this has negatively
affected the reputation of the company and shaked the confidence of customers.
2.3. Opportunities
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a. The large market and many potential market segments
First, it is a customer factor. According to Honda Vietnam, the motorcycle
market in Vietnam is growing, in 2009 reached 2.26 million vehicles, rising 20%

compared to 2008 and became the largest motorcycle market in the 4th World after
China, India, and Indonesia.
Especially, the scooter market has seen significant growth, reaching 750,000
units (up 70% compared with 2008) - the number calculated by the actual output of the
four manufacturing companies in Vietnam, without refering to the import advanced
Scooters. Realizing the need of this, the company plans to build more factories.
The second is labor. Cheap source of labor has always been attractive to any
business in Vietnam. People of working age account for a large proportion of 60% help
expand opportunities for human resources in the search business.
The third is to open up a new business development. Deep analysis of specific
population indicators such as gender, age, income ... will be the business segment that
needs attention. Each segment should have different impacts on product, marketing,
advertising ... percentage of the population from 15-35 accounting for 60%, shows a
young and dynamic market, adapting quickly to new products. Target audience is the
right product for the young, reflecting the dynamism and personality. For motorcycles,
sports design, eye-catching design, youthful color, speed ... is directed to this object.
As in 2010, Honda Vietnam officially introduced to the market CLICK PLAY with
design and color extremely youthful and vibrant for young people ages 18 to 22.
A notable figure in Vietnam at present, male and female ratio was 98.1 males
per 100 females (2009). Females also a potential market segment of the business.
Honda Vietnam also pays attention to this subject and offers some motorcyles for
women, such as Lead, Vision, Click...
Under the approval decision: "Planning for development of Vietnam's
motorcycle industry," of the Minister of Industry and Commerce:
- By 2015, circulation of motorcycles in the country will be about 31 million
vehicles, the average annual increase in this period to about 2 million units / year;
- By 2020, the total number of motorcycles in the country will reach about 33
million, average annual growth 2016-2020 of 1.8 million units / year.
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b. The increase in demand for using motorcycles.
The more society grows; the more it requires any work to be done quickly and
efficiently. The more science and technology develop, the more its application to
enhance work efficiency is like transfering a document from this place to another.
Travel needs of human beings from that increase. In Vietnam today, motorcycles are
considered the most commonly used and popular, as well as most convenient means of
transport. People’s demand for motorcycles is higher and higher. Not just for travel
demand, motorcycles also shows personality, class... of motorcycle users.
c. Vietnamese economy is growing
Vietnam has a relatively high GDP growth and stability in recent years, GDP
per capita also increased continuously. Thus the purchasing power will increase and
create business opportunities for market expansion.
d. People’s average income is at a relative level
Income per capita in Vietnam grew from 835 USD in 2007 to 960 USD in 2008
(reaching more than 90% higher than planned) and reached $ 1,100 in 2009. However,
the rate of inequality is a fact exists in Vietnam today. The gap between income levels
of the labor group is increasingly clear different, especially in large cities. Thus, if a
business does not pay attention to these demographic targets the business itself has lost
its chance to develop. Due to the gap between the rich and the poor is so vast, the
company wants to attract more customers must pay special attention to prices of the
products. At Honda Vietnam, motorcycle product lines such as SH with high prices of
over 100 million vnd is for people with high incomes. Wave from 10 - 20 million vnd
is just for those who have low income and motorcycles used mainly to serve for their
work. The mid-range product line as the Future, Click, Air Blade ...are for those with
average incomes.
e. Vietnam promotes international cooperation
Viet Nam joining the WTO has opened up new opportunities for investors to

approach the international market, obtain equal legal status in commercial disputes,
open service region of Vietnam, particularly banking field, retail trade, commitments
on TRIMS, bringing national treatment regime for companies with foreign investment
capital, to remove the export requirements, domestic content, the problem
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transparency and ventilation.... At the same time, it is an opportunity to be exposed to
more favorable science and technology. Vietnam joined the WTO; international
cooperation is pushed up as well as an opportunity to catch the big investment and
profitable economic contracts.
2.4. Challenges
a. The challenge firstly caused by the company’s competitors
Currently on Vietnam's motorcycle market, there are suppliers such as Honda
Vietnam, Yamaha Vietnam, Suzuki, SYM ... In particular, Honda Vietnam accounted
for about 64% market share, Yamaha accounts for about 25%, the remaining
approximately 11% market share belongs to the other distributors. In spite of far less
market share, Yamaha motorcycles are the market challenges. Honda Vietnam is
outstanding with reliable Yamaha Vietnam winning the youth admiration. The
competition is really high.
Besides these two direct competitors Yamaha and Honda, this segment also has
the participation of the ventures as Suzuki, SYM, the domestic unit and a new factor the Piaggio.
Despite the modest investment of $ 15 million into the factory with an area of 3
ha, Piaggio is still a formidable opponent. With main products - Vespa, Piaggio was
the first assembly of high-end scooter in Vietnam, creating advantages in price and
warranty system before the import models of Honda and Yamaha. It can not be a
balanced competitor of the two joint ventures; however, the Piaggio is in plans to
increase global production. It is possible in the future, the plant in Vietnam is a transit

point to other countries and then, Piaggio will become a significant force.
 Direct Competitors
Automakers: YAMAHA, SYM. YAMAHA which is Honda's most powerful
opponent in every segment that is geared toward companies. If Honda is a new model
immediately YAMAHA will also launch soon a strategic vehicle to not lose market
share. Particularly SYM are competitors on the manufacturing sector Scooter with cars
Atila outstanding.
HONDA

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YAMAHA

SYM

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Product:
- Quality
- Designs
Price
Distribution
Channel
Promotion
- Promotion
- Advertising

Durability, Fuel
economizing

Simple and sporty style

Average

High

Aporty

Small

Average
From 14 to 30 million
HEAD
Authorized dealers
nationwide

Average
From 16 to 30 million
The Yamaha dealers
nationwide

High
From 16 to 40 million
The SYM dealers
nationwide

Offering free oil when
buying motorcycles

Offering free oil when

buying motorcycles

Offering free oil when
buying motorcycles

Financing the program
“daystar rendezvous”
Holding the contest
“safty driving”

Staff drive to the main
road in the big city
when launching a new
product

Event “10 years of
SYM”

 Potential competitors:
Manufacturers from China, Europe and domestic assemblers
b. Consumers tend to choose more and more products
The company gained market share partly by reputation, many consumers buy
products just because Honda's long-standing reputation. These consumer trends are not
sustainable because customers’ tastes change over time and are affected by many factors.
c. International economic integration
International economic integration brings Honda Vietnam the hidden opportunities
and challenges. Market opening welcomes foreign investment. But Vietnamese
enterprises are at risk of strong competition by foreign products. China's motorcycles are
rushing into Vietnam with very cheap price with emphasis on low-income customers large proportion of the population. 10 million can buy nearly three Chinese motorcycles.
To regain, Honda Vietnam immediately launched the Wave α for just over 10 million. This

price is suitable with Vietnamese people because it deserves by quality of product.
3. Product strategy of Honda Vietnam Company
3.1. Products
Diversifying the products is a useful strategy to refresh themselves, increase
sales, expand market share, and improve competitiveness. With diversification of
products, Honda Vietnam has a lot of motor products suitable for each age group,
gender, economic situation of each family....Depending on the needs each one will
select a product which is suitable to him. Each vehicle has multiple colors; the color
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represents the identity of the rider. So Honda products are preferred by people. By the
direction of diversification, when a person intends to buy a motor, he or she will think
of Honda one. So it is easy to choose one suitable with him or her.
3.2. Product positioning
3.2.1. Brand of the products
 Name:

HONDA

-

both

powerful

and

distinctive. The font is designed in red capital
letters represents the strength and creativity.
 Basic Features: motorcycle
 Logo: Look at this logo everyone knows this is the logo of the motor
manufacturer - Honda Vietnam. The Logo with a familiar bird has left a
very deep impression in the minds of Vietnamese.
 Slogan: The Company uses the slogan "The Power of Dream" expresses
the criteria that companies want to bring to consumers. Honda Vietnam is
to bring to every Vietnamese more safety and happiness in life.
In addition, when launching a new product, Honda Vietname gives it a very
meaningful name. Some typical products are called:
 Air Blade "cutting wind" - When hearing this name, consumers will
think immediately of its style- Sporty and powerful.
 CLICK: the name tells everything. A small motor, bring the motor to go
as smooth as its name.
 Future: The Meaning of the name of this product is for future products. A
product with many features superior to other products.
3.2.2. Positioning based on product characteristics
Products and after-sales service of Honda Vietnam are always voted high
quality Vietnamese products over the years. It is awarded the Golden Dragon Award by
the Ministry of Planning and Investment and Economic Times in 5 years continually.
The company was also awarded the Certificate of Merit from the Ministry of Industry,
Ministry of Planning and Investment, Ministry of Commerce...
Each motor has Honda Vietnam's separate specifications and features. And
each one has many different colors to choose. Research the needs of the customers, the
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company has rolled out new vehicles in accordance with consumers’ expectations.
These prominent features each vehicle has are only in Honda Vietnam. It can be said
that the separate functions of this make consumers think of Honda.
3.2.3. Services in support of Honda Vietnam to enhance the value of products:
Currently HEAD strives to bring customers high quality products, attentive
sales service and enthusiastic and thorough staff, fully meet the standards of Honda
Vietnam as well as global.
 The warranty and maintenance:
 Honda Vietnam Company applies the new warranty - 2 years or 20,000
km for the cluster engine, 1 year or 12,000 for other details. Along with
the extended warranty period, the number of periodic testing also
increased from 4 times to 6 times.
 Each motor dealer and service commissioned by Honda (HEAD)
nationwide is a service center and maintenance for the products to the
standards of Honda with modern equipment and technical staff members
are formal training and experience. This is the technical agent for
customers, to provide consultancy to edit and handle complex situations
to customers.
 Moreover, the company provides mobile services to the local stores
which do not have HEAD.
 The company also has "mobile services" - fun for customers.
 Regarding spare parts:
Honda Vietnam has set up service stations, repair and supply genuine parts for
the company’s products. When problems occur, consumers of Honda Vietnam have the
warranty, maintenance; Honda Vietnam has the genuine parts for replacement.
3.3. Development of new products:
The newer the motor model is, the higher the customers’ satisfaction index is.
Therefore that the manufacturers release new models to market on time is critical.
Competitive situation on the market motorcycle and tougher customers’ needs with
changing demands and increasingly strict selection asks for company’s creation and

new-product exploration to survive and develop.
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3.4. Product life cycle:
Introducing new products to market successfully does not guarantee long-term
ability of the business. Honda Vietnam therfore has made adjustments in marketing
strategy by changing market conditions (competition, market demand, the adaptability
of the product to the needs). Honda Vietnam understands each company's products at
any stage of product life cycle.

References
1. Lecture of Marketing Management - Dr. Ho Tri Dung
2. Marketing Curriculum - Hanoi National Economics University
3. www.honda.com.vn
4. www.yamaha-motor.com.vn
5. www.suzuki.com.vn
6. www.vi.wikipedia.org
7. www.dantri.com.vn
8. www.autonet.com.vn

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