PBM Brand Audit [PDF]

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PREPARED BY: AKANKSHYA MISHRA(18202143) ANKIT NEPAK() ARADHANA SAHOO() SNEHA KHANDELWAL() SWAGAT CHHOTRAY()



INTRODUCTION “Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction.” This is the tag line of the Worlds one of leading automobile company Honda. Honda is a leading manufacturer of automobiles and motorcycles. It is a global brand that has brought several attractive car and bike models to the market. In the recent years, its sales have grown fast. North America is its leading market accounting for a very large part of Honda’s revenues in the automobile segment. Another important market is Japan; the domestic market of Honda. There are several major competitors of Honda in the global market including Volkswagen, Toyota and Ford. These brands have a large product portfolio and invest aggressively in research and innovation. With economic growth in the Asian region, demand for vehicles has also grown. Honda’s motorcycle sales are high in the Asian region. Yamaha is a major competitor of Honda in the motorcycle segment. In the 21st century, every brand is eager for faster growth. Each one is spending more on marketing as well as research and development to acquire a larger market share and attract new customers. Auto firms spend millions on advertising and promotions every year. Honda is one of the leading and most successful automotive brands of this world whose several models are popular globally. However, the credit of its success goes to several things like successful marketing and technological innovation. The brand uses several channels for marketing of its brand apart from the traditional methods. Not just print and television advertising, the brand also advertises its products and models on digital channels and promotes its brand using sponsorships. 21st century has brought heavy competition to the automotive industry and brands must invest in marketing so as to remain competitive. However, not just great marketing, it is also important to build a great brand image to remain popular and for successful marketing in the modern world. Honda has received several prestigious awards and recognitions from several agencies for its innovative products. Its Honda Accord sedan has won several awards and recognitions apart from the North American car of the year award for 2018. Motor week also recognised Honda Accord as the best family Sedan and Kelly Book recognised it for best resale value. Honda’s other models also received several similar awards from several agencies. Honda Civic was recognises as the best small car by Motor week. 2018’s Best Buy Small car award was given to Honda Civic by The Kelly Blue Book. KBB has also recognised Honda as the best overall brand. Honda motors use a mix of demographic, psychographic and geographic segmentation variables in order to understand the different markets aptly and satisfy the changing needs of the customers accordingly. Differentiating targeting strategy is what used by Honda for selection of the defined population to whom the specific product or services can be offered. Honda has positioned itself as a value-based company whose objective is to enrich the lives of the people worldwide and give them the power to enjoy their life. Customers of Honda motors are the middle-income group people who are looking for vehicle whether it is 2-wheeler or 4-wheeler, which suits their pocket and at the same time is value for money for them. Extensive branding and visibility campaigns have helped the company in creating high TOMA (top of mind awareness) and positive word of mouth which resulted in high sales. Honda Motors is widely known for its deep product portfolio ranging from the value for money segment to high-end segment with high CC and improved features. The kind of the technological advancement and expertise developed by Honda is commendable.



SWOT analysis of Honda is given below: STRENGTH: 1) Largest motorcycle manufacturer – There are many feathers in the cap of Honda motors but one of its biggest advantage is that it is world’s largest motorcycle manufacturer. It has a lion’s share of the market of motorcycles. 2) Largest internal combustion engines manufacturer – Like motorcycles, Honda motors also has a large presence in combustion engine market which is used for aeroplanes, jetskis, yachts or any heavy engine usage. 3) Eight largest automobile manufacture – Besides being the world’s number 1 automobile manufacturer, Honda motors is also the eight largest manufacturer of Automobiles. It has a strong and localised product portfolio. 4) Excellent R&D – One of the reasons that Honda has been able to achieve these heights is because of its focus on R&D and its manpower employed in R&D. Hence Honda is always coming up with elegant and efficient designs which are a hit in the market. WEAKNESS 1) High costs and prices – Naturally, with a high investment in R&D and into the latest technology, the cost of the product goes high and the pricing to end customer is high as well. This might be a weakness of Honda but it needs to have this weakness, because it cannot reduce its brand equity by lowering the prices. 2) Needs products for the masses – One common complaint for Honda cars is that the cars are only for the upper middle class and Honda needs more automobile portfolio for the lower middle class, which already other automobile manufacturers like Hyundai and Maruti are targeting. 3) Hero and Honda separation in India – At least in India, Honda motors suffered badly when Hero and Honda were separated. As a result, Honda has had to replan its presence in India. OPPORTUNITY: 1) Electric and alternative fuel vehicles – This division is targeted towards the future of automobile market wherein people will be demanding usage of clean energy because fuel like Petrol and Diesel as well as CNG has its limitations. 2) Automobiles increasing – The number of automobiles across the world is increasing. One of the reasons is the increase in buying power of individuals, another is that it is a social norm now to have a motorcycle or a car. Thus, consumption is at an all time high.



3) Expansion in developing countries – Because of the rise in buying power, and the easy automobile loads provided by banks, the purchases of automobiles is rising especially in developing countries. Honda needs to take full advantage of this upswing in demand and capture the market swiftly. 4) Product expansion – Adding more products in the portfolio and making more variants to increase the product line are two tactics commonly used by Automobile manufacturers. There are many considerations to be undertaken before launching a new model. However, product expansion is the key to grow in a competitive market. THREATS 1) Competition – Competition from local and regional or national players in each of the countries it is present in, is denting the revenues of Honda. 2) Fuel prices – Although people have more funds now for buying cars, the rising cost of fuel is troubling everyone and is one of the reasons that many people are still hesitant to buy cars, because later on the fuel cost paid is more then the car.



OBJECTIVE A brand audit is a thorough examination of a brand's current position in the market compared to its competitors and a review of its effectiveness. It helps a business determine the strength of their brand together with its weaknesses or inconsistencies and opportunities for improvement and new developments. It also helps to determine how they can sharpen their image so that they stand out among their competitors. Honda is one of the leading automobile company and is constantly acing its performance in the process. Today they have an immense amount of competition that they have to face, and to maintain their position as a market leader they need to keep up with the market scenario of their own as well as competitor brands. During a brand audit, some of the key focal points for a brand like Honda factors like print materials, general advertising, website and social media design, and content marketing. All of these facets display a brand’s style, image, and audience. Hence a brand audit for a brand like Honda is very crucial.



BRAND KNOWLEDGE Brands are neither physical products, nor actual services. Brands live in the mind of the consumer. So how do successful brands like Honda create such vast brand knowledge? By making consumers understand what the brand all about is, we create brand knowledge. Brand knowledge isn’t a stand-alone idea. Instead, it’s a combination of two things: brand awareness and brand image. Brand awareness is the level of brand recall and recognition that consumers have of a particular brand and its specific product category. Brand image is the set of mental associations with a brand that influence the buyer. Although different brands may mean different things to different people, brand knowledge is always a function of awareness and image. And knowledge refers to the thoughts, feelings, and experiences, become associated of a customer with a business’s brand or a company. Brand knowledge is developed due to interactions in the form of advertisements, communication etc which the company develops, its logo and has an ambassador for representation but is truly identified by its consumers only. The consumer will develop their own interpretation of the company’s brand based on their thoughts that they go through and what they experience in dealing with the company along with their feelings about the company’s products. Importance of Brand Knowledge A successful brand is one that creates brand knowledge in the most positive way in their consumer’s minds. Brand knowledge is a unique combination of brand awareness and brand image. Brand awareness is how much a customer recalls a brand when it comes across and advertisement of it. Brand image a pool of mental imageries that influence a buyer’s purchase decision. Although different brands may mean differently to people, brand knowledge is universally a function of awareness and image.



Honda has been very advanced and successful in creating brand awareness amongs its customer segments. What they are trying to do with their advertising is give a short cut in terms of what Honda is, what Honda stands for and they demonstrate that through their advertising, the PR, the behind the scenes. “Success is reaching out not just to existing owners but also to the whole Honda world in terms of employees, stakeholders. When we create a good ad there is a positive reception to it internally, that is also important. Advertising is more than just a short-term sales piece,” said the marketing head of Honda. As they aim to widen Honda’s appeal, marketing for models such as the HR-V will be aimed at a younger audience and include a big digital element. Digital promotions such as TV in terms of extending the long tail and appeals to a younger audience is one of the ways they try to create awareness amongst their target audience. It pulls people through and sharpens other points that they are trying to make in the eyes of the audience. While the aim is to appeal to a younger demographic, Honda has no plans to move away from TV advertising. Jones said when the brand is on TV it sees a 400% uplift in visitors to its website.



BRAND AWARENESS Brand awareness is the level of consumer consciousness of a company. It measures a potential customer’s ability to not only recognize a brand image, but to also associate it with a certain company’s product or service. Brand awareness is best spread through both inbound and outbound marketing efforts. When competition in an industry is high, brand awareness can be one of a business’s greatest assets. Why is brand awareness important in marketing? With the vast amount of products options, having a differentiated message and an audience that can distinguish a company’s brand from its competitors is crucial. It can mean the difference between success and failure for a company. Entire marketing campaigns can be constructed around promoting awareness of a brand. Spreading brand awareness is especially important during a company’s first few years, when they are trying to make a name for themselves. When consumers are aware of the product a company offers, they will more likely go straight to that company if they need that product, instead of researching other places that they can acquire that product. Businesses with strong branding are viewed as accepted by the market. Therefore, they are trusted more by consumers who are looking to purchase a new product. Honda used an innovative marketing campaign to change the way customers perceived motorbikes. The slogan used was "You meet the nicest people on a Honda”, this campaign showcased that Honda motorcycles were made for the common man. The campaign was successful and increased Honda’s sales 90,000 motorcycles in 1963 alone. The promotional strategy in the marketing mix of Honda is to be aggressive. Honda uses TV advertisements to a large extent. Honda has released ads



with different themes to attract customers. The ads focus on Honda’s innovation and superior engineering such as the cog advertisement released in 2003. Honda also released an advertisement showcasing the Honda founder’s dream of producing high quality cars. Honda has a lot of promotion done through motorsports like Motorcycle Grand Prix, Superbike racing and others in which the company participates or supplies engines. Honda portrays that it builds cars which win such tournaments. Honda sponsors such sporting events, it was the official sponsor of the 2006 FIA Formula 1 telecast on broadcaster channel "Ten". Honda also sponsors other sports such as hockey and golf. Honda advertises in print media and participates in road shows to showcase its products. Hence, this concludes the marketing mix of Honda. Aiming to build a culture of safe riding habits, Honda Motorcycle and Scooter India Pvt. Ltd. conducted the National Road Safety Awareness Campaign for college students in Cuttack. Here, Honda’s female instructors empowered the females on riding a two-wheeler and knowledge of road safety rules. Above all this, Honda also conducted fun educational activities like road safety games and quizzes on daily basis so that participants have fun learning about safe riding too. These are also ways in which Honda tries to create a brand awareness and image in eyes of consumers that they are a brand that cares for its users. They try to make the end users believe that they are not just a automobile company but they are more than that. And organising such campaigns would definitely make the people more aware of the consciousness and would create better brand recall in the eyes of them.



BRAND RECOGNISATION



Honda is the brand that introduced luxury in the cars. Along with luxury there are many other attributes that are associated with the Honda cars, of which durability and quality remain to be revered the most throughout the world. The brand recognition of Honda is so powerful that almost in all the parts of the world; the car owners recognize the logo in the first go. The auto parts for the Honda can be availed easily which include a versatile range of the car parts featuring the AC, body parts, replacements parts and much more. The easiest way of getting hands on the genuine auto Honda parts is to contact the genuine dealers of Honda. However, if that is not possible one can also make orders using their online websites and ask for the specified auto part to be delivered, which is a hassle free process as it will save time and energy for the seekers. However, in cases that is not possible the car owners will have to search for other options to find the Honda car parts. One can also opt for the used Honda car parts but, will have to consider many other factor so there than the price to make their final purchase. Buying the used Honda car parts is usually a task preferred by those who have an experience of dealing in the used



car parts; so that they can evaluate the car part to be brought, making sure that it is in proper working condition. One can also sift through the various online websites dealing in the auto car parts for the specific Honda parts that they are looking for. Those who are looking for the cost effective deals, this might prove to be a viable option as the online retails in most of the cases not only offer the warranted auto parts but also extend promotional deals all around the year to encourage online shopping. This way the car owners looking for the Honda car parts will be able to get genuine car parts but in die casting Suppliers discounted prices, which will help them save more. Another place to look for the Honda car parts is the wholesalers and the Honda workshops, which might have a versatile collection of the auto parts to offer to their customers. Some people also like searching through the auto junkyard in their neighbourhood as it might help them find the specific Honda car parts that they are searching in the prices or the deals which are much lower than the market rates. Using these options one will be sure of finding themselves the genuine Honda car parts to enhance the look and the performance of their cars. 



Honda offers a full line of reliable, fuel-efficient and fun-to-drive vehicles with advanced safety technologies sold through over 1,000 Honda dealers in India.



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The Honda lineup includes the Fit, Civic, Insight, Accord and Clarity series passenger cars, along with the HR-V, CR-V, Passport and Pilot sport utility vehicles, the Ridgeline pickup and the Odyssey minivan.



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Honda has been producing automobiles in America for more than 35 years and currently operates 19 major manufacturing facilities in North America.



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In 2019, more than 90 percent of all Honda brand vehicles sold in the U.S. were made in North America, using domestic and globally sourced parts.



BRAND IMAGE Honda was named the “Best Refined Brand” thanks not just to the quality of the materials it uses in its cars, but also to the way these materials “come together in a cohesive manner, from the solid sound of a door closing to the tight seams in the way the interior fits together.” It had eight vehicles in the top 15 in refinement. Most people already know Honda has a reputation for quality, but it’s good to know that quality is not ongoing and just a relic of the past.



For the second year running, Kelley Blue Book has named Honda as America’s Best Overall Brand as well as its Most Refined Brand — not to mention its “Best Value Brand,” this one for the fifth consecutive time. Yes, Honda does win a lot of awards. All of these awards were meted out as part of Kelley Blue Book’s 2019 Brand Image Awards. KBB, one of the most trusted sources of all things automotive, noted Honda’s “sterling reputation for quality” as just one of the reasons for naming it the winner. “The breadth of its line up with impressive vehicles ranging from the efficient and affordable Fit up through its Pilot 3-row SUV is evidence that Honda is committed to having a vehicle that’s suited for both first-time buyers and loyal owners looking for that next Honda to fit their current needs,” the editors at KBB wrote. That aforementioned quality also earned Honda the “Best Value Brand” title. According to KBB, the automaker’s reputation for durability and reliability give Honda models great resale value, while many of its sedans and crossovers offer“class-above” amenities.



For vehicle manufacturers with large capital investments, this situation is untenable. They must seek to improve at least one of the two holistic brand measures for their brands. Because improvement of a brand’s product excellence is difficult to accomplish across an entire product portfolio and generally requires up to a decade, the only way for brands to improve their positioning quickly is to lower product prices and offer customers better cost of ownership. By contrast, Honda and Toyota have clearly distanced themselves from the rest of the mass-market segment. In the consumer’s mind, Honda and Toyota represent a combination of product excellence and cost of ownership that so far surpasses all other competitors that they operate along a different trade-off curve. While not yet in the same league, several other brands, such as Volkswagen, Saturn, and Subaru, have also separated themselves from the rest of the pack.



BRAND EQUITY



Brand equity' is a phrase used in the marketing industry which describes the value of having a wellknown brand name, based on the idea that the owner of a well-known brand name can generate more revenue simply from brand recognition (that is from products with that brand name than from products with a less well-known name), as consumers believe that a product with a well-known name is better than products with less well-known names. Brand equity refers to the value of a brand. In the research literature, brand equity has been studied from two different perspectives: cognitive psychology and information economics. According to cognitive psychology, brand equity lies in consumer’s awareness of brand features and associations, which drive attribute perceptions. According to information economics, a strong brand name works as a credible signal of product quality for imperfectly informed buyers and generates price premiums as a form of return to branding investments. It has been empirically demonstrated that brand equity plays an important role in the determination of price structure and, in particular, firms are able to charge price premiums that derive from brand equity after controlling for observed product differentiation.



While most brand equity research has taken place in consumer markets, the concept of brand equity is also important for understanding competitive dynamics and price structures of business-to-business markets. In industrial markets competition is often based on differences in product performance. It has been suggested however that firms may charge premiums that cannot be solely explained in terms of technological superiority and performance-related advantages. Such price premiums reflect the brand equity of reputable manufacturers. Three brand equity drivers were selected by researchers from numerous factors that have impact on a brand: brand awareness, brand perspective, and brand attachment. Brand equity is strategically crucial, but famously difficult to quantify. Many experts have developed tools to analyse this asset, but there is no agreed way to measure it. As one of the serial challenges that marketing professionals and academics find with the concept of brand equity, the disconnect between quantitative and qualitative equity values is difficult to reconcile. Quantitative brand equity includes numerical values such as profit margins and market share, but fails to capture qualitative elements such as prestige and associations of interest. Overall, most marketing practitioners take a more qualitative approach to brand equity because of this challenge. In a survey of nearly 200 senior marketing managers, only 26 percent responded that they found the "brand equity" metric very useful. Some marketing researchers have concluded that brands are one of the most valuable assets a company has, as brand equity is one of the factors which can increase the financial value of a brand to the brand owner, although not the only one. Elements that can be included in the valuation of brand equity include (but not limited to): changing market share, profit margins, consumer recognition of logos and other visual elements, brand language associations made by consumers, consumers' perceptions of quality and other relevant brand values. Consumers' knowledge about a brand also governs how manufacturers and advertisers market the brand. Brand equity is created through strategic investments in communication channels and market education and appreciates through economic growth in profit margins, market share, prestige value, and critical associations. Generally, these strategic investments appreciate over time to deliver a return on investment. This is directly related to marketing ROI. Brand equity can also appreciate without strategic direction. A Stockholm University study in 2011 documents the case of Jerusalem's city brand. The city organically developed a brand, which experienced tremendous brand equity appreciation over the course of centuries through non-strategic activities. A booming tourism industry in Jerusalem has been the most evident indicator of a strong ROI. Purpose:The purpose of brand equity metrics is to measure the value of a brand. A brand encompasses the name, logo, image, and perceptions that identify a product, service, or provider in the minds of customers. It takes shape in advertising, packaging, and other marketing communications, and becomes a focus of the relationship with consumers. In time, a brand comes to embody a promise about the goods it identifies—a promise about quality, performance, or other dimensions of value, which can influence consumers' choices among competing products. When consumers trust a brand and find it relevant, they may select the offerings associated with that brand over those of competitors, even at a premium price. When a brand's promise extends beyond a particular product, its owner may leverage it to enter new markets. For all these reasons, a brand can hold tremendous value, which is known as brand equity. Social media has changed the traditional communication between brands and consumers and enabled consumer to make positive as well as negative influence on brand equity. Brand Equity is best managed with the development of Brand Equity Goals, which are then used to track progress and performance. Construction:-



There are many ways to measure a brand. Some measurements approaches are at the firm level, some at the product level and still others are at the consumer level. Firm Level: Firm level approaches measure the brand as a financial asset. In short, a calculation is made regarding how much the brand is worth as an intangible asset. For example, if you were to take the value of the firm, as derived by its market capitalization—and then subtract tangible assets and "measurable" intangible assets—the residual would be the brand equity. Measuring brand equity in this way is often referred to as brand valuation. The modelling is closely related to brand equity, and a number of models and approaches have been developed by different consultancies. Brand valuation models typically combine a brand equity measure (e.g.: the proportion of sales contributed by "brand") with commercial metrics such as revenue or economic profit. Product Level: The classic product level brand measurement example is to compare the price of a noname or private label product to an "equivalent" branded product. The difference in price, assuming all things equal, is due to the brand. More recently a revenue premium approach has been advocated. Marketing mix modeling can isolate "base" and "incremental" sales, and it is sometimes argued that base sales approximate to a measure of brand equity. More sophisticated marketing mix models have a floating base that can capture changes in underlying brand equity for a product over time. Consumer Level: This approach seeks to map the mind of the consumer to find out what associations with the brand the consumer has. This approach seeks to measure the awareness (recall and recognition) and brand image (the overall associations that the brand has). Free association tests and projective techniques are commonly used to uncover the tangible and intangible attributes, attitudes, and intentions about a brand. Brands with high levels of awareness and strong, favourable and unique associations are high equity brands. All of these calculations are, at best, approximations. A more complete understanding of the brand can occur if multiple measures are used. Positive brand equity vs. negative brand equity Brand equity is the positive effect of the brand on the difference between the prices that the consumer accepts to pay when the brand is known compared to the value of the benefit received. There are two schools of thought regarding the existence of negative brand equity. One perspective states brand equity cannot be negative, hypothesizing only positive brand equity is created by marketing activities such as advertising, PR, and promotion. A second perspective is that negative equity can exist, due to catastrophic events to the brand, such as a wide product recall or continued negative press attention (Blackwater or Halliburton, for example). Colloquially, the term "negative brand equity" may be used to describe a product or service where a brand has a negligible effect on a product level when compared to a no-name or private label product. Family branding vs. individual branding strategies The greater a company’s brand equity, the greater the probability that the company will use a family branding strategy rather than an individual branding strategy. This is because family branding allows them to leverage the equity accumulated in the core brand. Aspects of brand equity include: brand loyalty, awareness, association and perception of quality. Managing Brand Equity:One of the challenges in managing brands is the many changes that occur in the marketing environment. The marketing environment evolves and changes, often in very significant ways. Shifts in consumer behaviour, competitive strategies, government regulations, and other aspects of the marketing environment can profoundly affect the fortunes of a brand. Besides these external forces, the firm itself may engage in a variety of activities and changes in strategic focus or direction that may



necessitate adjustments in the way that its brands are being marketed. Consequently, effective brand management requires proactive strategies designed to at least maintain - if not actually enhance brand equity in the face of these different forces. Brand Reinforcement As a company's major enduring asset, a brand needs to be carefully managed so its value does not depreciate. Marketers can reinforce brand equity by consistently conveying the brand's meaning in terms of (1) What product it represents, what core benefits it supplies, and what needs it satisfies (2) How the brand makes product superior and which strong, favourable, and unique brand associations should exist in consumers' minds. Both of these issues - brand meaning in terms of products, benefits, and needs as well as brand meaning in terms of product differentiation - depend on the firm's general approach to product development, branding strategies, and other strategic concerns. Brand Re-Genesis Any new development in the marketing environment can affect a brand's fortune. Nevertheless, a number of brands have managed to make impressive comebacks in recent years. Often, the first thing to do in revitalizing a brand is to understand what the sources of brand equity were to begin with. Are positive associations losing their strength or uniqueness? Have negative associations become linked to the brand? Then decide whether to retain the same positioning or create a new one, and if so, which new one. Maintaining Brand Consistency Without question, the most important consideration in reinforcing brands is the consistency of the marketing support that the brand receives - both in terms of the amount and nature of marketing support. Brand consistency is critical to maintaining the strength and favourability of brand associations. Brands that receive inadequate support, in terms of such things as shrinking research and development or marketing communication budgets, run the risk of becoming technologically disadvantaged or even obsolete. Consistency does not mean, however, that marketers should avoid making any changes in the marketing program. On the contrary, the opposite can be quite true - being consistent in managing brand equity may require numerous tactical shifts and changes in order to maintain the proper strategic thrust and direction of the brand. There are many ways that brand awareness and brand image can be created, maintained, or improved through carefully designed marketing programs. The tactics that may be most effective for a particular brand at any one time can certainly vary from those that may be most effective for the brand at another time. As a consequence, prices may move up or down, product features may be added or dropped, ad campaigns may employ different creative strategies and slogans, and different brand extensions may be introduced or withdrawn over time in order to create the same desired knowledge structures in consumers' minds. Brand Tokenization Tokenization is the concept of tying information about an asset to a Block chain. That asset may be a product, process or even brand image. Brand Value can thus be tokenized by the issuance of Cryptocurrencies. Though Initial Public Offerings (IPOs) try to capture Brand Value, a company's share value is a result of several factors like performance, initial capital, investor identity etc. Moreover, the time needed for a company to be listed in an IPO runs into several months. Therefore, immediate capitalization of Brand Value is not possible. Initial Coin Offerings (ICOs) on the other hand deliver a wide range of possibilities not provided by IPOs. Most important among them is Brand



Tokenization and Monetization. It has also been discussed that Brand Tokenization is one of the methods of raising capital without giving away equity. Brand Equity of Honda:Overview Honda is a Japanese brand manufacturing small, mid-range and high range automobiles. The firm was setup in Tokyo in 1948 and now it is a big name in the automobiles industry. First Mover Advantage With the focus on new technological advancements Honda was the first one to introduce fuel cell vehicle, hybrid car (which runs on fuel and battery both), electric car and also the natural gas vehicle. Honda’s heavy investment on research and development of its products has given it the first mover advantage as it is the brand which launches vehicles with the latest technology that has not yet been created by the competitors. Excellent Engineering Capabilities Honda excels in engineering capabilities as the cars have great engineering design leading to efficient productivity of superior products. Due to this, the customers value the brand and it enables Honda to stand out in the market making it difficult for the competitors to copy. Customers’ Perception Honda is perceived to manufacture superior quality automobiles utilizing technology in the best possible way. It is considered as a reliable brand that offers a great driving experience through its products. Many consider it as a luxury or status symbol. Strong Brand Equity According to Harris Poll Equitrend study, Honda has been recognized as the Full line automotive brand of the year for 2014. It is ranked as a brand with highest brand equity. The key drivers of its brand equity include the premium quality of its products that lead to customer preference when it comes to purchase. Honda is not just a brand but a reliable name in the automobiles industry. Its brand equity and reputation has not just built suddenly but it is what it is for the value it has given to customers since its establishment. Customers remain satisfied with the quality they are getting, as it’s the value for money to them. Strong production (Just in time production) and engineering capabilities have strengthened the brand equity of Honda. It is a global brand offering a wide range of products to cater to different segments. Products include new technologies making it difficult for the competitors to reach the mark where Honda is standing. Factors Highlighting High Brand Equity • Most customers are willing to pay price premium for Honda rather than other brands as Honda comes up with latest fuel and engine technology. • Honda has been a brand that customers are more likely to purchase again. Studies have shown high brand loyalty as compared to industry average of making repeat purchase. • It has high brand recall; many customers recall it as the top of the mind brand. • Customers get value for money; they trust the brand in terms of quality yielding high customer satisfaction. • It has high resale value.



BRAND VALUE The net present value or the future value of the cash flows that are attributable to the brand name or brand personality is known as brand value. A brand is an intangible asset of a business, and helps in differentiating between a company’s book value and market value. The difference is mostly attributable to the ‘brand’. Brand value is also known as brand equity. Brand value depends a lot on the inherent characteristics of the product that make up the brand. There are a number of measures to measure brand value or brand equity. Some of them are as follows: 



In a consumer goods industry, number of repeat purchases, customer loyalty towards paying a premium for their products serve as good measures.



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In other general industries, another measure of brand loyalty from an employment perspective is the number of people willing to associate with the brand/ company at the same or lower salary.



Honda is now one of the world’s top 20 brands, it has moved up by 3% to be ranked as the 20th most valuable brand in the world. Its value stands at $22.696 billion.



The power of the Honda brand highlights its influential position in the market. A diverse range of new products, from the zero-emissions Clarity Fuel Cell to the award-winning Honda Civic Type R, showcase the significance of advanced technology to the Honda brand. The recentlyannounced ‘Electric Vision’ will fast-track a major brand advancement, bringing to market a host of new electrified vehicles from 2018. Honda’s recognition follows several landmark achievements for the company in 2016 as well as major news announcements this year. At the 2017 Frankfurt Motor Show, Honda confirmed that electrified technology will now feature in every new car model launched in Europe. Honda Motor Company CEO, Takahiro Hachigo, made the commitment as he unveiled the Urban EV Concept vehicle, setting the direction for a new Honda electric car, which will arrive in Europe in production form in 2019. At a global level, Honda aims to have electrified technology in two thirds of its new car sales by 2030. Beyond automotive, Honda’s brand power is bolstered by its advanced product range spanning aircraft, motorcycles, and power equipment. In April 2017, the advanced light HondaJet set a new Miami-Panama speed record recognised by the National Aeronautical Association, and celebrated global first quarter deliveries that



surpassed any other jet in its class. Elsewhere, Honda’s expertise in robotics and autonomy helped it to launch the ingenious Miimo lawnmower in 2016. The Miimo knows when to recharge itself in an electric docking station, and can intelligently follow the layout of any garden, quietly and finely cutting the grass.



Conclusion Honda has worked on building its brand equity since it’s established. It has been globally recognized as a premium brand of automobiles. Thus, Honda should not lose focus from its competitive advantage and play efficiently in the competitive market.