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Research Strategic Marketing
Strategic
Marketing
Proposal
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Table of Contents
Introduction ..................................................................................................................................... 3
Research Aim .................................................................................................................................. 3
Research Objectives ........................................................................................................................ 3
Research Questions ......................................................................................................................... 4
Research Background ..................................................................................................................... 4
Preliminary Literature Review ........................................................................................................ 5

Definition of Culture ............................................................................................................ 5

Definition of Marketing Strategy ......................................................................................... 5

Cross Cultural Issues............................................................................................................ 5

Marketing approaches and Strategies .................................................................................. 6
Information Needs .......................................................................................................................... 9
Research Methodology ................................................................................................................. 10

Primary Research: .............................................................................................................. 11

Secondary Research: .......................................................................................................... 11
Sample Selection and Size ............................................................................................................ 11
Approach to Data Analysis ........................................................................................................... 11
Data Validity and Reliability ........................................................................................................ 12
Anticipated Outcomes ................................................................................................................... 13
Limitations of Research ................................................................................................................ 14
Ethical Issues ................................................................................................................................ 14
References ..................................................................................................................................... 15
2
Introduction
The research topic is “Cross cultural differences and Marketing strategies of Honda Motors in
different countries”.
This research paper will investigate the marketing strategies used by Honda in positioning their
brand in different countries of the globe. Marketing strategies of Honda in China, UK and USA
will be analyzed. These three regions of the world have got a lot of importance as business is
becoming more global. When companies start operating globally there are number of factors they
have to keep under consideration that can further lead them to success or failure. Cross cultural
issues are one of the important factors. As marketing activities are more related to the likes,
dislikes and psychological factors of targeted customers; it is hence very necessary to understand
and explore the cultural values, norms and rituals of customers. Not only cultural differences but
micro, macroeconomic and technological factors effects the strategies and business needs.
The paper will study in detail the difference in marketing strategies due to change in
environmental factors of countries. Along with marketing strategies, operations of Honda in said
countries shall also be examined.
Research Aim
The aim of this research is to “Identify and compare the Cross cultural difference affecting
marketing strategies of Honda in different regions”.
Research Objectives
The research objectives are following:
1. To identify the performance marketing techniques used by Honda in China, USA and
UK.
2. To analyse and compare the cross cultural differences, which can affect on marketing
techniques.
3. To investigate effects of globalization on marketing techniques.
3
Research Questions
This research paper assumes to investigate;
1. What are the cultural and economical differences of UK, USA and China markets and
how they affect marketing techniques of multinational companies?
2. What different approaches are used by Honda for promoting its brand in three
different regions of the world?
Research Background
Marketing is a combination of art and science, managers have to come up with creative and
innovative ideas and bundle them with intensive market research to mitigate risk factor that
arises due to innovation. World has become a global village that has enabled companies to
operate without any limitation of geographical boundaries. Globalization can either be an
opportunity or challenge. These factors can only be managed with intense market research and
ultimately developing tactical marketing strategy (Gilbert, 2010).
In developed countries, markets are becoming very saturated so it is important for multinationals
to tap the markets that have some gaps. Multinational corporations (MNCs) have moved towards
emerging economies such as India, Indonesia, Brazil, China, and Mexico, as key locations for
future growth (London and Hart, 2004).
Today studying economic and political conditions are not enough to start business
internationally, cross cultural issues have got significant importance. To operate successfully in
any country it is important to keep their cultural values in mind while developing organizational
human resource plan, production or marketing plan. Family structures, educational structures,
religious organizations, associations, forms of government, work organizations, law, literature,
settlement patterns, and buildings. All of these reflect common beliefs that derive from the
common culture (Obonyo, 2007). Keeping under consideration these concepts further research
will be conducted.
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Preliminary Literature Review

Definition of Culture
Culture is defined by Hofstede as follows:
“Culture is the collective programming of the mind, which distinguishes the
members of one category of people from another” (Hofstede, 2001).
Pearson further explains this when he says that culture consists in those patterns relative to
behaviours and the products of human action which may be inherited, that is, passed on from
generation to generation independently of the biological genes. It means culture is a collective
programme of mind relating to human behaviours, which may be inherited or learned in the early
age. Culture cannot be change in any circumstances but it creates a great effect on an
individual’s thinking, actions and performance.

Definition of Marketing Strategy
“A marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable competitive
advantage. A marketing strategy should be centred on the key concept that customer satisfaction
is the main goal”. Source: www.selfgrowth.com
“A marketing strategy is a process or model to allow a company or organization to focus limited
resources on the best opportunities to increase sales and thereby achieve a sustainable
competitive advantage”. Source: www.easy-marketing-strategies.com

Cross Cultural Issues
Cross cultural issues are the conflicts arise due to difference in the values, norms and cognition
process of the residents of one particular society from those of other. Cross cultural differences
are mostly measured by identifying degree of individualism vs. collectivism, cooperation,
uncertainty avoidance, conflict resolution, work group characteristics and motivational factors.
These all variables differentiate one society from the other (Hofstede, 2001).
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
Marketing approaches and Strategies
There are different marketing approaches that organizational adopt when they are operating
internationally. Three major approaches are consumer oriented approach, competitor oriented
approach and trade oriented approach. Under consumer oriented approach two strategies can be
adopted; differentiated and undifferentiated marketing. Differentiated marketing focuses on the
variances found in the behavior and needs of target market. Undifferentiated marketing focuses
more on the common characteristics on the target customers. Second approach deals with the
competition, marketers make strategies based on the competition prevailing in the industry. Third
approach is focused on intermediaries and distribution channel (Riege and Perry, 1998).
There are different marketing approaches that organizational adopt when they are operating
internationally. Three major approaches are consumer oriented approach, competitor oriented
approach and trade oriented approach. Under consumer oriented approach two strategies can be
adopted; differentiated and undifferentiated marketing. Differentiated marketing focuses on the
variances found in the behavior and needs of target market.
In 1959, he opened the American Honda Motor Company, so he could fulfill his dream of
building
a
high
performance
motorcycle
and
marketing
it
globally.
The discussion below briefly emphasizes on the strategy used by Honda to gain entry into the US
motorcycle market.
During 1970s and 1980s, Japanese automobile industry penetrated European markets very
aggressively and achieved success. Strategic management researchers and consultants used to
claim that this success has been derived from their theories and strong connectivity with practical
implementations. In 1975 Boston Consulting group did in-depth analysis on Honda strategic
management style and implementation of marketing strategies in US, Japan and European
markets. In UK; Honda did bear with the financial losses to gain market share and to penetrate
into motorcycle market. In this way they produced large number and took benefit out of
economies of scales and with more units sold the level of revenue and profitability improved a
lot. Honda is referred as a market creator in US and elsewhere, with its production capabilities
and promotional activities it progressed at large level (Mair, 1999).
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In the 1950's, US market was very limited and lead by brands like Harley Davidson, Indian, and
imports like Triumph and Moto Guzzi. Motorbike riders were generally seen as outsiders, clad in
leather jackets and riding in packs to terrorize small towns, an image played up by Hollywood.
Further, Japanese products with funny names were looked upon suspiciously by American
consumers, much as Chinese ones are today. Over the time Honda has achieved major market
share in US motorbike market with its opportunist strategy and investment in production at large
level (Richardson, 2011).
US Honda Motor is making perfect the art of coping with a mass of major introductions coming
this year but without substantially more ad money to boast about it. When American Honda's
new fiscal year kicks in today, ad budgets are expected to be flat from last year, so the carmaker
will have to make the same amount of dollars go farther to accommodate all the new products
from its Honda Division. The traditionally lean-running American Honda will rely on the
momentum it has gained from several years of record sales (Lillie, 2002).
A much battered automobile industry enjoyed a significant rebound in 2010 through the fall of
2011—a sharp and welcome contrast to its state during 2008 and 2009. In the U.S. and around
the world, the recession that started near the end of 2007 had a profound impact on the
automobile industry. America’s car and light truck market dropped dramatically in 2008, to
approximately 13.2 million units sold for the year, down by about 2.9 million from the number
of units sold in 2007. In 2009, the market was much worse, with sales for the year totaling 10.4
million units. About 690,000 of those sales were made with the stimulus of a “cash for clunkers”
program paid for with federal dollars. This was easily the worst year in decades for the car
business, with two giant manufacturers filing for bankruptcy, GM and Chrysler, while a large
number of dealerships, suppliers, parts manufacturers and other auto-related businesses also
failed. By 2011, Chrysler was 50% owned by Italian car maker Fiat, thanks to agreements and
financing that had enabled Chrysler to exit bankruptcy. GM was 61% owned by the U.S. federal
government.
Estimates of the worldwide automobile market vary substantially from one source to another.
Scotiabank Group estimated that 60.13 million new cars and light trucks would be sold globally
during 2011, up from 53.96 million in 2010 and only 50.50 million during 2009. As of mid2011, Scotiabank’s analysts found that sales were growing at particularly rapid rates in emerging
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nations such as India (with 2 million units sold forecast for 2011, doubling since 2006), Brazil,
Chile and Russia. Brazil, enjoying exceptional economic growth, may become the world’s thirdlargest car market by 2016 or so, surpassing Germany, and topped only by China and the U.S.
U.S. car and light truck sales will total from 12.2 to 13.0 million units for 2011 provided the
economy does not slow significantly during the final quarter of the year. This would represent
good growth from 11.55 million units during 2010.
The key differences between the two accounts of Honda’s entry into the US motorcycle market
The two accounts of how Honda entered into US motorcycle market differ in numerous ways.
There are two approaches to strategies were used by Honda to enter the US market, the Boston
Consulting Group (BCG) report clearly shows a deliberate approach to Honda’s strategy in
entering the US motorcycle market.
Honda is a brand known for its quality and innovation. Honda was never into an aggressive
promotional activities but the company always tried to maintain the quality and created a brand
image by providing better customer service. Honda car like Honda city is the largest seller in the
segment and ranked fourth position in passenger car segment.
Considering the advertisement, Honda has been very careful and precise in their advertisements.
Honda always projected their image as most reliable brand, advanced technology, eco friendly
cars. Even considering the television commercials, Honda promoted their hybrid car that runs
without gasoline and emits water as the bye product rather than advertising the specific brands
existing in the market. The ad was more concentrated to the company’s technological
advancements and eco friendly image which differentiated Honda from the competitors.
Operating worldwide, one mistake in any kind of strategy: Enterprise, Corporation, Business, till
Operational, and Individual will lead to huge influence to the whole company in the future.
That‘s why the evaluations and controls system of Honda are much attached special important in.
In strategic level, outside directors and corporate auditors are appointed to the Board of Directors
and the board of Auditors to ensure objective control of the company‘s management. Honda also
has an operating officer system, aimed at strengthening both the execution of business operations
at the regional and local levels and the supervision by the Board of Directors. All of these
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endeavors is to maximize the flexibility in which Honda‘s directors respond to changes in the
operating environment, also keep the whole company going in the right track with the rapid
changes in the world nowadays. The control system of the company used to ensure desired
outcomes are also effective and efficient used. With the Internal Control System Fundamental
Position and Implementation Status, Honda‘s control systems focus on a lot of dimensions on its
operational level. First, with Basic Position, the company‘s divisions are under the guidance of
their respective corporate officers. The systems are placed to ensure a systematic approach to
compliance and risk management.
Honda promoted their products in majority print media (Majority advertisements come in
magazines and national news papers). The customers were always aware of the company policies
of providing latest technology and upgrading whenever necessary and also remodeling the entire
model after certain period of time. Honda City the company had remodeled it thrice till the
inception. Honda always tried to create a surprise element during the launch of every model. The
company plans to stage road shows, to display vehicles in the pavilions during various college
festivals and exhibition. Source: www.marketing91.com
Information Needs
Information needs are critical to understand for any research project. They refer to the
informational requirements of the research in order to study the objectives. The cause of failure
for many research projects is inadequate understanding of information needs. Assessing the
information needs is essential to meet the aim of the research. It is important to understand what
the information needs are and to do this first we need to look at the objectives of the research.
Information needs are defined by Ashill and Jobber (2001) as the user specifications of
information characteristics involved in information seeking, and refer to those qualities of
information perceived by managers to be useful to facilitate their decision making.
This research process will begin with recognising is there a need for specific information.
Following this recognition, a plan to resolve and meet the information need would be
constructed.
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The primary information need for the completion of this research will be identifying the
marketing approaches which are adopted by Honda Motors in three different countries, UK,
USA and China. The information on the common marketing strategies and their utilization will
be found through different sources e.g. online resources, books and academic journals.
It is also important for this research to have the cultural understanding of all sample countries
China, USA and UK therefore it is vital to discover the cultural difference, management
behaviours and approaches to marketing management methods in their cultures. These cultural
differences would be identifies and evaluated using Hofstede’s cultural dimensions. Evaluating
macroeconomic, microeconomic and socio political factors in these countries is also very
significant since companies operating globally need to have grasp on these variables to make
better investment decisions.
Honda Motors sales and revenue volumes in all three countries shall also be reviewed and this
information will be extracted from the annual reports of Honda.
Research Methodology
The research design has been formulated according to the research objectives. The research is
designed to illustrate the cultural issues which are affecting the marketing strategies of HONDA
Motors. Due to the investigative nature of the study, the qualitative data collection method will
be used for this research. This will involve the use of qualitative data gathered through primary
research such as interviews, documents, and participant observation data, to understand and
explain the Honda marketing strategies and techniques.
Collection of primary data from three geographically distant countries is very costly and time
taking process that can be done after identifying sponsor for this research. For the time being,
data from Honda official website, annual reports and already done research papers shall be
extracted and compiled for a better analysis.
Qualitative research method enfolds various advantages like it provides direct information about
behaviour of individuals and groups, permit evaluator to enter into understand situation, provide
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good opportunity to explore unanticipated outcomes and exists in flexible and unstructured
settings (Mayoux, 2001).

Primary Research:
The primary research will be carried out through performing a survey of marketing strategies and
approaches of Honda motors in three countries. The qualitative method will be used for the
survey. The data will be collected through interviews with Honda professional. The interviews
are dependent on the availability of marketing managers, it is very difficult to physically go there
and interview them so telephonic interviews will be a source.

Secondary Research:
The secondary research will be desk based research. It will be done through academic journals,
textbooks, articles and other online resources. Most of the research will base on secondary data in
the form of research articles, annual reports of Honda. Standard marketing techniques adopted but
automobile makers will be discussed in comparison with Honda. Marketing approach will also be
taped. Secondary research will study the Hofstede’s cultural dimensions of all three countries. It
will also examine the role of cultural differences in marketing strategy development as well as
issues of cultural fit.
Sample Selection and Size
The sample for the primary research would be marketing managers of Honda in UK, USA and
China which are involved within the company’s marketing strategy formulation.
Sample size can never be defined as enough. The size of sample in this particular case will be
based on availability and willingness of employees and managers to take part in the survey. The
minimum target is two people from the management. There will be an attempt to get as many
participants as possible.
Approach to Data Analysis
Qualitative data is hard to analyse, the interviewer can easily misinterpret what interviewee say
However, the analysis of the objectives suggests the qualitative research method; including
interviews, observations and document analysis. To avoid the confusion and misinterpretations
the interview notes would be taken. Moreover, the interview questions will be straightforward
and close-ended mainly however some open-ended questions may be asked as well. And
11
interviews may be recorded as well with the approval of interviewee. Therefore, it will become
convenient to analyse the data.
Most of the research will base on secondary data in the form of research articles, annual reports
of Honda. Standard marketing techniques adopted but automobile makers will be discussed in
comparison with Honda. Marketing approach will also be taped. Secondary research will study
the Hofstede’s cultural dimensions of all three countries. It will also examine the role of cultural
differences in marketing strategy development as well as issues of cultural fit.
Data Validity and Reliability
The validity of the data is the most important issue within any research project. Designing of the
questionnaire for interviews reflects upon the data validity, if the questions which will be asked
did not give an appropriate answer, which satisfied the research needs it will be worthless to ask.
The questions will be designed to achieve the legitimacy of data and will be straight forward and
relevant to the research objectives.
The interviews will be recorded with approval of interviewee to avoid any misinterpretation of
the data in case of interviewees protest the interview notes would be taken. The report of
interviews would be sent out to interviewees to read and finalise their views. To avoid the
unclear answers the close-ended questions would be used during interviews where appropriate as
they provide precise and adequate data. To make sure the questions are clear for readers to
understand they will be pre-tested by a group of five people.
Standard marketing techniques adopted but automobile makers will be discussed in comparison
with Honda. Marketing approach will also be taped. Secondary research will study the
Hofstede’s cultural dimensions of all three countries. It will also examine the role of cultural
differences in marketing strategy development as well as issues of cultural fit.
As mentioned above, mostly research will base on secondary data because of geographical
distance. But interviews will be taken from the concerned authorities. In this case the interview
questionnaire will be adopted so that its validity test like Cronbach Alpha coefficient would not
be require to perform again.
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Anticipated Outcomes
This research will be a critical evaluation since the marketing strategies of Honda for three
countries will be analyzed in the light of cross cultural differences in three different three
countries. It is proposed to structure the data collection and also the comparison and analysis of
research findings using the following key areas of evaluation and using Hofstede’s cultural
dimensions. Therefore, the results of the project will be presented covering the following areas of
evaluation:

Marketing Approach and strategies.

Impact of cross cultural differences on marketing technique of Honda motors.

Macroeconomic and microeconomic factors effecting business decisions.
13
Limitations of Research
The research is designed for the limited study. It will only look into impacts of cultural
differences on marketing approaches and techniques. Macroeconomic and microeconomic
factors of these countries will also be analyzed but not in-depth.
Research method also has some constraints as should be based on in-depth interviews of
marketing executives, face to face interviews are very important for collecting better
information. Due to geographical distance from these countries it is very difficult to physically
visit them. Sample of marketing managers is also limited.
Moreover, the research will focus on the cultural issues using Hofstede’s cultural dimensions
which are affecting marketing strategy and not the impacts of cultural differences affecting other
areas of business like strategic management that is a wide area of research. There is a time and
budget limit for this research therefore, this it will use only a small number of representatives
and will assume the views of the rest will be similar.
The scope of the research is not very broad. The research will be done only in UK, USA and
China only and other branches of the company in other countries will not be included in the
survey therefore, it will be a limited research and results obtained from the research would be
limited as well.
Ethical Issues
Ethical issues in research arise when data is manipulated and false interpretations are drawn from
the interviews and data. This probability will be minimized using recorded interviews and
approval from authorities. Moreover social setup has also maintained at natural level. This
research will not raise any ethical issues. As it will be derived from the existing research.
14
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OBONYO, “Influence of Culture on Strategic Human Resource Management (SHRM) Practices
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Hofstede, G. (2001). “Culture's Consequences: International Differences in work-related values”,
Beverley Hills: Sage Publication
http://www.easy-marketing-strategies.com/definition-marketing-strategy.html
http://www.selfgrowth.com/articles/Definition_Marketing_Strategy.html
Dennis G. Ballow, “Globalization and Cross-Cultural Issues in Project Management” Project
Management
Knowledge
Transfer,
Inc.
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Adam
Richardson
2011,
“Lessons
from
Honda's
Early
Adaptive
Strategy”
http://blogs.hbr.org/cs/2011/02/lessons_from_hondas_early_adap.html
Lillie, G (2002), “ Honda awash in new models but has to stretch dollars.(American Honda
Motor Co. )(Brief Article), http://www.highbeam.com/doc/1G1-84406936.html
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