Honda Cbr600rr Business Plan

Marketing Plan

Honda Motor Co., Ltd.

1. Executive Summary

Honda Motor Co., Ltd is preparing to launch a new product on 2016. The new product is 2016 CBR600RR. CBR600RR is a lightweight supersport motorcycle from Honda. Even though motorcycle industry is maturing, supersport motorcycles category is still growing in Indonesia. The CBR600RR will be positioned by the slogan "Middleweight is the right weight" - indicating that Honda offers a perfect bike for their customer with numerous features and competitive price. Honda is taking advantage of its exiting experience and brand equity among Honda's customers who use its motorcycles. CBR600RR will millennial as their main target. CBR600RR is available on the market as an alternative for a more expensive 1 liter supersport bikes. The primary marketing objective is to achieve first year sales of Rp. 99,6 Billion. Based on this market share goal, Honda expects to sell minimum 600 units in the first year, and increase the sales by 50 units every year.  

1. Current Marketing Situation

Honda Motor Co,. Ltd was founded in 1946 by Soichiro Honda, who had successfully built a company that create so much innovation in automotive industry, in this case, motorcycles. Honda's motorcycles hit the market in Indonesia with various type of motorcycles, with CB as their favorite customers' motorcycle in 80's, Supra in 90's and early 00's, and now they dominate the market with so much choice of motorcycles for customers. Honda has become one of the main competitors in automotive industry. In 2014, Honda achieved $119 Billion in revenue and Net Income of $5,75 Billion.

         In automotive industry, motorcycles' sales has been significantly increased in mid 2000s. Currently, the total amount of motorcycle users in Indonesia is 84,732,652 in 2013, a number that has just increased from 41,955,128 in 2007. It means that the amount of motorcycle users in Indonesia has been increased for more than 100 percent in just 6 years. Even though motorcycle sales is having a slump in Q1 of 2015, analysts believe that it will rise again in Q3 and Q4 of 2015. Because the demand of motorcycles in Indonesia is increasing from year to year, the competition is more intense than before. In Indonesia, there are 2 dominant competitors in motorcycle manufacturer, which are Honda and Yamaha. Honda lead the competition by having 63,92 percent of market share in 2014. The closest competitor is Yamaha, with 30,23 percent of market share. However, in Sport subcategory of motorcycle, Yamaha is leading with 49,79 percent of market share. To break into this market, Honda must carefully target a specific segment with features and benefits valued by those segments.

1. Market Description

The supersport bikes market consist of two different subcategories. The first one is 600 cc bikes, and the second one is 1 liter bikes. The 600 cc bike is new for Indonesian market. In Indonesia, the maximum volume of a bike's engine is 250cc, but because there are so many demand from Indonesia on bikes above 500cc, it is a great idea to test the market by launching CBR600RR in Indonesia. The only competitor who had already launched their products on bikes above 500cc bike, especially in supersport subcategory, is Kawasaki.         Supersport bike can be used as daily vehicle. Concerning the traffic in Indonesia is very busy, Honda prefer to launch CBR600RR instead of its "brother", CBR1000RR, because the 600cc version is more efficient, the price is cheaper, the bike is lighter, and it got better fuel efficiency. After the launching, CBR600RR will be a flagship for Honda Motorcycles in Indonesia.  

        What Honda can offer from this product line is "Performance Efficiency". It means that CBR600RR will be a powerful bike, but fuel efficient. Honda has established a strong base of loyal customer in Indonesia. The target market for CBR600RR is Millennials, because they found that bikes are not just transportation tool, but also lifestyle.

1. Product Review

Features from CBR600RR

:

• DSFI (Dual Stage Fuel Injection); Two sets of injectors per cylinder ensure both low- and high-rpm performance. You get near-instantaneous high-rpm response, along with great low-rpm metering and clean running.
• Unit Pro-Link Suspension; Unit Pro-Link isolates the chassis from bumps, resulting in more precise handling and better traction.
• Electronic Combined Anti Lock Braking System; The electronically controlled C-ABS distributes brake force over both wheels, helping to maintain braking confidence in less-than-ideal conditions
• Emission equipment meets the EPA standards
• Two choices of colours; Black for the non-ABS version and Red for the ABS version
• Lightweight; the bike only weighs 185 kilograms or 410 pounds.
• Fuel efficiency; the bike could reach 33 kilometres with only 1 litre of fuel.

1. Competitive Review

Sales of motorcycles has been growing since mid 2000's. One of the category is sport bikes. Sport bikes sales has been growing since 2008, which at that time, Yamaha lead the market share by 49,79 percent. Even though Yamaha lead the market share for sport category, Honda started to develop products on that category to start competing with Yamaha.