Brand Launching and Sustainingin a developing country : The case study of Honda on Vietnam Motorcycle Market

Abstract:   Abstract Date May 29th, 2009 Course Master Thesis EFO705, International Marketing Tutor Daniel Tolstoy Authors Thi Bich Ngoc Nguyen Thi Xuan Thu Nguyen Title Brand Launching and Sustaining in a Developing CountryPurpose The project is to investigate the Brand Launching and Sustaining in a The Case Study of Honda on Vietnam Motorcycle Market developing country through the study on how Honda has successfully launched and sustained its Brand on the Motorcycle Market of Vietnam. Problems Honda's Brand Launching campaign and the company's strategies and initiatives to Sustain its Brand on the Motorcycle Market of Vietnam. Methodology The realistic approach and case study method are to be applied. The information should be gathered through numerous sources: primary data from the email qualitative interviews with the managers of Honda Motorcycle Vietnam, and the email quantitative surveys among Vietnam's Honda Motorcycle users; secondary data from the articles in a variety of newspapers and magazines as well as websites. Conceptual Model The contents covered in the project are Brand Launching and Sustaining. In particular, theories related to Brand Launching in terms of Brand Identity and Brand Positioning, as well as Brand Sustaining with respects to Brand Growth and Brand Maturity should be investigated and analysed. In addition, what is of significance importance is the base of the company's Branding Strategies -the business environment of the destination country. Therefore, the disseration should thoroughly investigate the Grasp of the Market including Market Assessment (Government Policies, Demand Conditions and Market Opportunities) and Communications (Marketing and PR Activities and Social Corporate Responsibility) which serve as the foundation for the firm's market-based or fully tailored Branding Strategies to the specific conditions or characteristics of the destination nation. Findings Honda has adopted appropriate Branding Strategies (Brand Identity, Positioning, Growing and Sustaining) on Vietnam Motorcycle Market. The firm has identified its Brand as true Made-in-Japan products of high quality and reasonable price. It serves as 'the power of dreams' created in an ideal corporate culture and environment friendly working condition which is committed to advanced technology and society orientation. Honda Brand has been positioned to satisfy the needs for a transportation means of reliability, long duration, safety, hi-tech, fuel saving and environment protection of the middle and high class customer groups in Vietnam. To compete with such rivals as Yamaha, Suzuki, SYM and Piaggio, Honda has adopted proper Growing Strategies with Cub and Scooter categories including a range of product lines. In addition, the company has implemented appropriate Sustaining Strategies focusing on Communication Efforts and Influencer Proximity with a variety of Marketing and PR activities, Safety Driving Plan and Social Activities ranging from Environmental Preservation, Educational Development, Safety Driving Support Activities to Donation and Charity Activities. Actually, Honda's Branding strategies have been fully tailored to the specific market conditions of Vietnam. Conclusion Honda has gained the leading position on Vietnam Motorcycle Market since 1996 when the company penetrated into the country. Honda Brand has received great love from Vietnamese customers and become more than a Brand, but a citizen of Vietnam who 'strives to become a company that the society wants to exist'. Recommendation Honda Brand success should only be maintained when the firm is managed to constantly strengthen Honda Brand itself as well as identify and fix the shortcomings: keep serving as a good Vietnamese citizen, be consistent with the company's reasonable pricing strategy, improve the firm's customer relationships and pay more attention to the counterfeit brand defense. Lessons Honda's great achievements in Vietnam offer valuable lessons for the firms who desire to successfully brand in Vietnam in particular and developing countries in general: Concerning Brand Launching (Brand Identity and Positioning), the company should invest in Marketing and PR activities, adopt Reasonable Price and Localization strategies, pay attention to Customer Relationship, Influencer Proximity and Corporate Social Responsibility to become a good citizen of the market country. Regarding Brand Sustaining (Brand Growth and Maturity), the firm should take advantages of brand extension and line extension, maintain the Launching Strategies and simultaneously Bring Added Values and Recreate a Perceived Difference for its brands, Actively and dynamically involving itself in the Competition and also adopting Dual Management.