the product life cycle stage of honda lead 125 cc motorbike in the vietnam market

According to product life cycle theory, in the Vietnam market, Which product life cycle stage is the HONDA LEAD 125 CC motorbike in?. The new LEAD 125CC, which has a sophisticated front

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SCHOOL OF BUSINESS INTERNATIONAL BUSINESS - MARKETING DEPARTMENT

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UNIVERSITY Module: Marketing

END - MODULE ASSIGNMENT

MARKETING STRATEGY OF HONDA LEAD 125CC AND iPHONE 14 APPLE

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Lecturer: Nguyén Thanh Minh

Student: Dang Ngoc Minh Hién ID: 31231025939

Batch - Class: K49 - IBF002 Major: International Business

TABLE OF CONTENTS

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2 Marketing Mix Strategy of Honda Lead 125CC o cece cecteeeceeeeteseeeeteeees 2

3 The effectiveness of Marketing strategy: 0 c ccc cccecce cece cesseeeeteceeeetaeeeens lãi

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QUESTION 1:

1 According to product life cycle theory, in the Vietnam market, Which product life cycle stage

is the HONDA LEAD 125 CC motorbike in? Explain

2 Please analyze the current Marketing Mix strategy of this product of Honda Vietnam

3 Please evaluate the effectiveness of this product's Marketing Mix strategy and propose your solutions to improve the Marketing Mix strategy

A HONDA LEAD 125CC

The HONDA LEAD 125 CC motorbike is a popular vehicle in the Vietnamese market, known

for its reliability, efficiency, and affordability As one of Honda's leading models, the HONDA

LEAD 125 CC has gained significant traction among Vietnamese consumers, particularly those seeking a practical and cost-effective mode of transportation The new LEAD 125CC, which has

a sophisticated front design, a modern design language, and many excellent features, has been upgraded with the latest generation Honda eSP+ engine, which is similar to that of high-end scooter models It also has new trendy colors, a convenient charging port, and outstanding logo that help to maximize the owner's driving experience

1 The Product Life Cycle Stage of HONDA LEAD 125 CC Motorbike in the Vietnam Market:

1.1 Definition of the Product Life Cycle:

The product life cycle refers to the various stages that a product goes through from its introduction to its decline in the market These stages include the introduction stage, growth stage, maturity stage, and decline stage Each stage presents unique challenges and opportunities for a product and requires different strategies to maximize its success 1.2 Current Stage of the HONDA LEAD 125 CC Motorbike:

Based on the characteristics of each stage, we can conclude that the HONDA LEAD 125 CC

motorbike is currently in the maturity stage of the product life cycle The motorbike has been in the Vietnam market for over a decade and has established itself as a leading brand It

has a loyal customer base, and sales have stabilized

However, this does not mean that the HONDA LEAD 125 CC motorbike will remain in the

maturity stage forever As mentioned earlier, changes in consumer preferences and technological advancements can affect the product life cycle Therefore, it is crucial for companies to constantly monitor the market and adapt their strategies accordingly

2 Marketing Mix Strategy of Honda Lead 125CC

The marketing mix, also known as the 4Ps (product, price, place, and promotion), is a crucial element in any marketing strategy Let's take a closer look at how Honda Vietnam has implemented the 4Ps for Honda Lead 125CC

2.1 Product:

Level of products & services

yn ~ Augmented product Ss ~

Delivery Actual product After-sale

Brand

Features name Core

Customer Value

Quality Design

Product

Packaging Warranty

% Brand value

- Core value:

One of the key strengths of Honda Lead 125CC is its fuel efficiency The scooter can travel up to

50 kilometers per liter of gasoline, making it an ideal choice for daily commuters However, some customers have reported issues with the build quality and durability of certain parts, which can be a concern for potential buyers

- Actual product:

0 Quality of product:

Honda chose Vietnam as its first market HONDA LEAD 125 CC product eye It can be seen that the Japanese motorbike company's "confidence in victory" in this model is huge Since its establishment, Honda motorbikes have always been known as quality vehicles This is proven by being the leader in the Vietnamese motorbike market in terms of position and sales Honda cars

are assembled with a clear cycle and always ensure the quality of materials and assembly

machinery according to Honda's standards

a Design of product:

Bringing pride and desire to own to customers is the top goal in developing style in the new version HVN applies the version and color strategy to focus more on uniformity across each Special, Premium and Standard version of each segment

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e Standard: white

e Special: black and silver

e Premium: red and dark blue

b Front design of LEAD 125CC:

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Bold fashion inspiration is shown throughout the entire front design of the car The front light cluster possesses modern LED technology, sparkling like a strip of jewelry In addition, the use of chrome plating technology in both the connection between the headlights and the body of the car helps increase connectivity and seamlessness

c Elegant style:

LEAD 125ce possesses a modern design

with slim lines Along both sides of the motorbike’s body are delicately carved moldings,

creating 3D blocks, giving the car a truly unique appearance

d Outstanding logo:

The "Special Edition" logo with stylized font applied on the Special Edition exudes a modern, outstanding overall image

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e Engine — Technology

rs Inheriting a modem design language and many outstanding amenities, the new LEAD 125cc is now upgraded with the latest generation Honda eSP+ engine like on high-end scooter models

f Convenience & Safety:

Convenient charging port

Huge storage compartment under the seat

Honda

SMART

Key

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- Augmented Product:

Honda's customer care process is very thoughtful and sophisticated

Website services support businesses and agents in promoting products and connecting to consume products at low costs

¢ Electronic payment between businesses and businesses (B2B) is also widely applied at agents

¢ With SAP software, dealers can control customer data and sales activities of the dealer, such as: car color, car type, customers test driving the car to home-related issues

supply, order planning, vehicle arrival planning, inventory control

® Honda has policies on providing spare parts and vehicle maintenance to its dealers

Thanks to that, Honda has saved time, human resources, costs of controlling the source of

goods

2.2 Price:

Honda Vietnam has adopted a premium pricing strategy for Honda Lead 125CC, positioning it as

a high-end product in the market The scooter is priced higher than its competitors, but the company justifies the price by highlighting its advanced features and fuel efficiency

Lead 2023 car prices in Ho Chi Minh City and Hanoi differ by about 1 - 2 million VND and

range from 40.5 - 45.5 million VND For details, please refer to the Lead car price list below:

*Note: The car prices listed above are for reference only

a Discount promotions:

Honda's discount promotions are not beneficial When the discount ends, sales also decrease In addition, aggressive discount promotion campaigns only attract 10% -20% of loyal customers to

be interested, so sales will not increase "suddenly" as you expect

HỆ THỐNG XE MÁY TÂM ANH - LÂM ĐỒNG 2 1900 57 5717 © www.hondetomonh.com.vn

b Promotional offer when buying products:

These are probably Honda's most successful promotional campaigns Normally in these campaigns, when you buy a Honda motorbike like a LEAD, you will be given a Honda helmet, supported with registration fees for the vehicle, and may also recetve scheduled maintenance

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TAM ANH Co Ltd FT

LƯỚT LEAD ÊM 16/2023 47 LEAD

NHAN THEM UU DAI : 30/6/2023% 125

Tang Coupon sua chữa, thay thế À Tặng 1 Voucher hỗ trợ lệ đăng dịch vụ - phụ từng - phụ kiện trị giá m Ki xe & Ié phi trước bọ trị gia

500.000 VND 2.500.000 VND

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Ÿ HỆ THÔNG XE MÁY TÂM ANH-LÀMĐỎNG @Mể)tooo575717 ÉỀ wwwhondatamanh.com.vn

2.3 Place:

Honda Vietnam has an extensive distribution network, with over 300 dealerships and

authorized service centers across the country The company has also established partnerships with major retail chains and online marketplaces to make Honda Lead

125CC easily accessible to customers

The availability of spare parts and after-sales services is crucial for customer satisfaction and retention Honda Vietnam has ensured that its distribution channels are well- equipped to meet the needs of its customers, which has helped in building a strong brand reputation

2.4 Promotions:

Honda Vietnam has used a mix of traditional and digital marketing channels to promote Honda Lead 125CC The company has invested in television and print advertisements, as well as social media campaigns to reach its target market

One of the unique promotional strategies used by Honda Vietnam is sponsoring popular

TV shows and events targeted towards young professionals This helps the company to create brand awareness and reach a wider audience

LUOT THANH LICH CUOC SONG

With the LEAD 125CC product, Honda Vietnam has launched the TVC advertising

LEAD 125CC - DAT CHUAN THOI THUONG to promote the new product with the message that you should express your personality, set trendy standards with LEAD 125CC

Honda Vietnam has also collaborated with popular influencers and celebrities to promote Honda Lead 125CC on social media platforms This strategy has been successful in creating a buzz around the scooter and generating interest among potential buyers Digital Marketing Channels:

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ĐEN x JUSTATEE

Speaking of advertising, it is impossible not to mention one of Honda Vietnam's outstanding TVCs, the "Di vé nha" campaign for Tet 2021 "Di vé nha" is a music product in the Lunar New Year Marketing campaign 2021 by Honda Vietnam, with the collaboration of two famous singers and rappers Den Vau and JustaTee

The MV impressed the audience with its simple, emotional lyrics and footage imbued

with the colors of the Lunar New Year Up to now, the MV has received more than 157

million views on Youtube along with other successes in terms of Marketing Honda is very smart in understanding the Insight "An chac mac bén" of the Vietnamese people, so strategies have been created to target that psychology

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3 The effectiveness of Marketing strategy:

a Product:

The HONDA LEAD 125CC is equipped with a 125cc engine, providing a smooth and powerful ride The HONDA LEAD 125CC comes with advanced features such as LED headlights, digital instrument cluster, and keyless ignition, making it stand out from its competitors

b Price:

By positioning the HONDA LEAD 125CC as a premium scooter, the company has created a perception of high quality and exclusivity The skimming pricing strategy allows the company

to earn higher profit margins per unit sold The higher price point of the scooter contributes to the brand image of Honda as a premium and reliable brand

c Place:

By making the product available in various channels, such as dealerships, retailers, and online platforms, HONDA LEAD 125CC can reach a wider customer base

d Promotions:

Honda is a well-established brand with a strong reputation, which contributes to the success of their promotional efforts By utilizing both traditional and digital marketing channels, HONDA LEAD 125CC can reach a wider audience

SWOT

“* Brand Recognition “* Limited Model Variants

“+ Fuel Efficiency s* Lack of Technological

s* Practicality Advancements

Opportunities Threats

“* Growing Demand for Electric “+ Intense Competition

Scooters “* Changing Consumer Preferences

“* Expansion of Distribution Channels “* Economic Factors (inflation and

changes I fuel prices)

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4 Solutions:

Based on our analysis, we have identified some areas where Honda Vietnam can improve its marketing mix strategy for Honda Lead 125CC

e Product:

- Introduce more color options and customization options

- Introduce a lower-priced variant of the scooter

- Focus on developing new features and technologies that cater to the changing needs of customers

- Expand its product line to include electric vehicles and other eco-friendly products

f Price:

- Adopt a value-based pricing strategy

- Offer financing options for customers who cannot afford the premium price

- Offering discounts and promotions to attract price-sensitive customers

g Place:

- Expand the distribution network to reach remote areas and increase accessibility for customers

- Improve after-sales services to ensure customer satisfaction and retention

- Ensure consistent pricing across all channels

- Partnering with e-commerce platforms to reach customers who prefer online shopping

h Promotion:

- Increase the focus on digital marketing channels, as they are more cost-effective and have

a wider reach

- Collaborate with popular influencers and celebrities to create a buzz around the scooter

- Create personalized and targeted campaigns for each segment of the target audience

- Leveraging social media platforms to increase brand awareness and customer engagement

- Sponsor more sports events and social activities to increase customer loyalty

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