subject fundamental marketing

Question 1 5 points: I, According to product life cycle theory, in the Vietnam market, Which product life cycle stage is the HONDA LEAD 125 CC motorbike in?. According to previous resear

MINISTRY OF EDUCA TION AND TRAINING

HO CHI MINH CITY UNIVERSITY OF ECONOMICS

FACULTY OF INTERNATIONAL BUSINESS MARKETING

UEH

UNIVERSITY

SUBJECT: FUNDAMENTAL MARKETING

Lecturer

Major

Class

Course code

Students- ID

Nguyen Thanh Minh

International Business

IBF002

23C1BUS50307008

Pham Gia Huy- 31231021976

Ho Chi Minh City, 24th December 2023

Question 1 (5 points):

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

cycle stage is the HONDA LEAD 125 CC motorbike in? Explain

The product life cycle (PLC) is delineated into four discernible stages: introduction,

growth, maturity, and decline The duration allocated to each stage is subject to

variability across diverse products, and companies adopt distinct strategic

methodologies for transitioning between these phases This is a very beneficial tool

that helps marketers manage the stages of a product’s acceptance and success in the

marketplace, beginning with the product’s introduction, its growth in market share, its

maturity, and possible decline in market share

PRODUCT LIFECYCLE

4 — INTRODUCTION GROWTH MATURITY ; DECLINE

SALES `

TIME

a Introduction stage denotes a phase characterized by modest sales

growth upon the product's market debut Profitability remains elusive

during this period, primarily attributable to the substantial expenses

associated with product introduction

b Growth stage is characterized by swift market acceptance and a

concurrent upswing in profitability

c Maturity stage represents a phase marked by deceleration in sales

growth, attributed to widespread acceptance of the product among the

majority of potential consumers During this stage, profitability

stabilizes or diminishes, a consequence of heightened marketing

expenditures aimed at safeguarding the product against competitive

forces

d Decline stage is the period as sales fall off and profits fall

According to previous research and analytics from the Ministry of Industry and

Trade, the Honda Lead 125 CC motorbike is in the Growth phase of the product life

cycle in the Vietnamese market

In the growth phase, products often see a rapid increase in sales and market

acceptance Companies typically focus on improving the product and expanding the

market during this phase Honda Lead 125 CC is always a popular motor-scooter

model and elicits considerable interest from clients, especially office workers and

women This model has been continuously improved and upgraded, with innovations

in engine and design Typically, the Honda Lead 125 2022 version is equipped with

Honda's new 4-valve eSP+ engine block, and the Honda Lead 2023 version with

engine improvements, additional utilities, and design refinements These continuous

improvements suggest that the product is still in the growth phase

Honda Lead 125CC 2022 version

There are numerous statistics and reports that professionals prove that Honda Lead

125CC in Vietnam appears to be in the growth phase of the product life cycle, rather

than the maturity phase

On the contrary, the maturity phase is characterized by a slowdown in the rate of

sales growth, indicating a stage achieved after widespread acceptance among

prospective consumers During this phase, products often encounter increased

competition, requiring the adoption of competitive pricing strategies to maintain a

lasting presence in the market

For this, I will point out several reasons and factors that prove why some marketers

think that Honda Lead 125CC is in the mature stage of its product life cycle in the

Vietnamese market:

- Demonstrating a consistent market share: the Honda Lead 125CC stands as

one of the most popular motorcycle models in Vietnam, suggesting the

attainment of a stable market share—a characteristic frequently associated

with the maturity stage of the product life cycle

- Increased competition: In the maturity stage, heightened competition is a

common phenomenon, and the Honda Lead 125CC may contend with

numerous other motorcycle models available in the market

- Stable features and design: Honda Lead 125CC has undergone many

improvements and upgrades However, these improvements are mainly

focused on enhancing existing quality, rather than adding completely new

features This can also be a sign of the maturity stage, when companies focus

on optimizing existing products instead of innovating

In conclusion, it should be noted that determining a product's specific stage in its life

cycle is not always clear-cut and can depend on many different factors In fact, in the

case of Honda Lead 125CC, the continuous improvements and popularity of the

product suggest that it is still in the growth phase

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

Vietnam

The marketing mix is a holistic set of strategic instruments utilized by businesses to

efficiently showcase their products and services, achieving a focused marketing

emphasis within the target market Comprised of the essential components of product,

price, place, and promotion—commonly referred to as the 4Ps—the marketing mix

functions as a sophisticated framework, enabling companies to skillfully provide

precisely customized products at strategic locations, competitive prices, and opportune

moments

- Price: refers to the valuation assigned to a product, contingent upon factors

such as production costs, target market demographics, market solvency, supply

and demand dynamics, and various other influencing variables Pricing serves

not only as a financial metric but also as a delineation tool, fostering product

distinctiveness and elevating its perceived image in the market

- Product: denotes an item or service crafted to fulfill the requirements and

desires of customers

- Place: The location where the product can be purchased is important for

optimizing sales

- Promotion: this refers to all the activities undertaken to make the product or

service known to the user and trade This encompasses promotional avenues

such as advertising, word-of-mouth endorsements, press coverage, incentives,

commissions, and accolades for trade entities Additionally, it encompasses

consumer-oriented initiatives, direct marketing endeavors, contests, and

incentive-based programs

In terms of Honda Vietnam, by adeptly executing the Marketing Mix strategy, the

company has garnered significant achievements in consolidating its position in both

the motorcycle and automobile markets in Vietnam, especially the Honda Lead

125CC model A thorough examination of the 4Ps framework has underscored the

brand's strategic positioning and unequivocal dominance of this product in the market

@e Marketing Strategy for Products:

Honda Vietnam employs a strategy of diversifying its product range while

consistently enhancing product quality to meet customer demands The

company has introduced three vehicle categories, including sedans (in various

sizes), SUVs, and MPVs, catering to the varied needs of the Vietnamese

automobile market In the realm of motorcycles, Honda has developed an

extensive range, encompassing scooters and motorcycles like Honda Wave,

Honda Airblade, Honda SH, and Honda Lead, among others

Honda always has a wide range of choices for customers

The product Honda Lead 125CC of the company has strategically implemented

a product diversification strategy, a validated method for revitalizing

operations, augmenting sales, expanding market reach, and heightening

competitive standing This strategic orientation is discernible in Honda's

expansive product portfolio, characterized by a diverse range of motorcycles

tailored to cater to varied demographic profiles and economic strata

- The predominant incentive imfluencing consumer choices of Lead 125CC

models 1s the steadfast dedication to quality Acknowledged for their durability,

safety features, and suitability for Vietnam's traffic dynamics, Honda Lead

125CC products are reinforced by considerate post-purchase services Having

garnered the satisfaction of more than 80% of all the customers across the

nation, Honda Vietnam consistently attains recognition as a provider of high-

quality Vietnamese goods, achieving esteemed accolades like the Golden

Dragon Award for five successive years

@ Marketing Strategy on Price:

- Honda’s pricing strategy is based on various parameters like competition,

segment, features, etc The Honda Lead 125CC targets customers from low

middle income level to high income level with a differentiated range of models

- Honda strategically prices this product to align with the preferences and

affordability of its intended customer base Catering to a diverse spectrum of

consumers, Honda offers a range of models, from budget-friendly options

meeting essential travel requirements to premium offerings with elevated price

points that fulfill specific user needs and convey a sense of user class

- Honda Vietnam targets its customers, who are mainly from the middle-income

class in society with the Lead 125CC model This is the company’s main

customer base over the years

e Marketing Strategy on Place (Distribution System):

- Honda Vietnam has a wide distribution system They have successfully built a

factory, dealer network, and sales, service, and safe driving training programs

for customers

- Since entering the Vietnamese market, Honda has always focused on building

its distribution system and sales facilities for the Lead 125CC products in many

big city centers and then from there, from creeping up to district and town-level

facilities Honda has two main types of distribution channels:

+ Exclusive distribution

This distribution strategy involves the allocation of high-end product lines,

such as the Lead motorbikes, to large facilities operated by Honda, typically

situated in major urban centers like Hanoi and Ho Chi Minh City Notably,

exclusive variants such as the "Limited edition" of the Honda Lead 125CC are

often excluded from distribution through the company's retail agents This

approach allows Honda to optimize cost efficiency in overseeing sales

locations for these premium products

+ Widespread distribution

In pursuit of widespread distribution, Honda aims to establish numerous sales

locations, facilitating accessibility for customers seeking Honda-manufactured

products As of December 2020, Honda Vietnam successfully inaugurated two

additional Honda authorized vehicle sales and service stores (HEADs),

bringing the total count of HEADs to 801 nationwide This strategic expansion

further enhances the availability of Honda products, aligning with the

company's commitment to broad market reach

e Marketing Strategy on Promotion (Mixed Promotion):

Honda uses both traditional and digital methods of promotion to promote its brand and

products

Traditional Methods:

+ Print Advertising: Honda promotes its products heavily in newspapers and

magazine advertisements The new versions of Honda Lead 125CC are always

updated to all press media

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A type of Honda Lead 125CC 2023 version advertisement

+ Television Advertising: Honda uses creative television ads to promote its

products For example, the Honda Lead 2023 advertisement highlights the

functionalities of the model

+ Sponsorships and Partnerships: Honda often sponsors events and partners with

key personalities

Digital Methods:

+ Digital Advertising: Honda uses digital advertising to reach customers who are

online most of the time

+ Social Media: Honda uses social media platforms to engage with customers

and promote its products

+ Email Marketing: Honda uses email marketing to send personalized messages

to its customers

Honda's proficiency in television advertising stands out, characterized by a rich array

of TV commercials that meticulously target the vibrant youthfulness of the

Vietnamese demographic Notably, one remarkable TV commercial (TVC) from

Honda Vietnam is the "Going Home" campaign during Tet 2021 This musical

production was an integral part of Honda Vietnam's Lunar New Year Marketing

initiative, featuring collaboration between renowned singers and rappers Den Vau and

JustaTee The music video captivated audiences with its straightforward yet

emotionally resonant lyrics and visuals infused with the festive hues of the Lunar New

Year

Within just over a week of its release, the music video garnered over 30 million views,

attaining notable success in Honda Vietnam's broader marketing endeavors With the

poignant message, "Home is the place to return," the "Going Home" campaign

emphasizes the sanctity of familial love, urging a return to family, especially for

expatriates during Tet The campaign resonates with the sentiment that "Happiness is

simply being able to return home." The collaboration between Den Vau and Justatee,

coupled with the meaningful message, has proven effective for Honda Vietnam in not

only attracting customers but also elevating brand awareness and, consequently,

bolstering sales revenue, particularly for the Lead 125CC model

ñI VỆ NHÀ

ĐEN x JUSTATEE

“Going Home” campaign

In summary, the present success of Honda Lead 125CC model is unequivocally

attributed to the substantial impact of the Marketing Mrx strategy By strategically

implementing the 4Ps and Marketing Mix, the company has systematically addressed

key criteria involving its Products, Price, Place, and Promotion The evolution of this

strategy is evident, transitioning from its nascent and rudimentary phases to its current

advanced and refined state This evolution underscores the company's steadfast

dedication to ongoing improvement and meticulous enhancement

3 Please evaluate the effectiveness of this product's Marketing Mix strategy and

propose your solutions to improve the Marketing Mix strategy

After evaluating Lead’s marketing mix strategy, I believe that the present marketing

mix strategy is comparatively good but still not outstanding in comparison with other

brands So, here are some solutions for better performance:

Product:

The Lead 125 CC represents an innovative creation by Honda, boasting a

sophisticated, appealing, and ergonomic design meticulously tailored to cater to the

urban mobility requirements of a vast majority of the Vietnamese populace A

distinctive feature is its spacious trunk, offering a voluminous 37-liter capacity, ideal

for professionals or parents who need to transport work-related items or children's

belongings Notably, the Lead motorcycle features a relatively low height, measuring

approximately 1,130 mm, a characteristic designed to be accommodating and user-

friendly, particularly for the Vietnamese demographic, with a special emphasis on the

comfort of female riders

Companies can apply cutting-edge technology based on customer preferences, as

gathered through online surveys This approach aims to enhance product quality,

differentiate from competitors, and foster the retention of customer lifetime value

Price:

Priced at around 40 million VND, the Lead 125 CC motorcycles fall within the mid-

range category of the motorcycle market The existing price is deemed justifiable

given its distinctive features, making it a satisfactory proposition for the majority of

customers

Place:

All vehicles of Lead are on display in nearly 1000 showrooms throughout Vietnam

Buyers can buy them directly in these showrooms or now they can buy them on the

online website of Honda or the ecommerce platform Lazada, Tiki or Shopee as well as

small retailers It is very convenient for consumers when they can easily find and

purchase the products

Lead could expand its range of mini-programs, such as encouraging individuals to

visit showrooms for a firsthand experience and engage in face-to-face interactive

discussions with sales representatives

Promotion: As the era of digital age, Lead can enhance promotion on social media by

booking KOLs, ambassadors or mobile marketing on online communities to reach

new customers who will cover up leaving customers Besides, the specific trait of

vehicles is able to be used for a long time until they are out-of-order So, the brand

needs to concentrate on young people to grab customer equity because they have more

time allowed to drive and they are likely to consume more over a lifetime For

instance, an amusing and widely recognized image, known as Ninja Lead, has gained

popularity as a grassroots advertisement, featuring women donned in sun-protective

attire while riding the Lead