Honda is planning to launch
its new CR-V model in Europe later this year/early next with a campaign
reported to be worth £25m. The latest marketing for this car in the US saw an
advert aired during January’s Superbowl, featuring Matthew Brotherick in
reference to the hugely loved 1986 film ‘Ferris Bueller’s Day Off’. Take a
peak:
(I personally love the
not-so-subtle nod to the cars Japanese background during his karaoke
performance.) However, it doesn’t look like an easy drive for the brands
intentions, especially in the UK:
“Honda is currently fighting to gain share from its rivals in Europe. In
2011, the Japanese marque suffered a 20 per cent year-on-year drop in UK new
car sales, according to the Society of Motor Manufacturers and Traders, with
market share falling to 2.6 per cent, placing it behind Nissan, Toyota, Hyundai
and Kia.” Campaignlive.co.uk
But can Hondas UK struggle
really be down to tougher competition? Not entirely. The sales figures for new
cars are evidence of the recession still causing impact. However, it is
forecasted that by the end of this year, the statistics should show slight
improvement reaching 82% of the level reached in 2006 pre-recession. So Honda
is coming in at the right time to try and make the right impression as the
market slowly picks up.
Getting a new car is a big
deal. The consumer buying process shows a level high involvement; there are
lots of elements to take into consideration in order to make their purchase
decision. Price, size, fuel, safety, carbon foot print and style are to name a
few of the attributes of buying a car.
Honda
declared an investment in 2011 to increased job roles by 500 at its Swindon based
site due to the increased production forecasts of this year. The site produces
both cars and engines for the civic, CR-V and Jazz models. In 2011 the CR-V achieved
11,225 new car registrations coming only second in its category of multipurpose
4x4/SUV, to the Land Rover Freelander.
The key facts facing Honda:
1.
Slow recovery of the UK economy having a lingering affect on the industry, but
can hope that the improvement within the market continues.
2.
Consumer behaviour of trading up – like bank accounts, your best customers are
your existing ones. Honda could see better success targeting current owners of
the Civic or Jazz rather than running a campaign aimed at converting alternative
brand owners.
3.
The UK is showing a trend whereby the number of people per household is
increasing. This may be a challenge for the CR-V considering its unfitting size
to the need of smaller cars.
4.
SUV’s and 4x4’s are on the rise on UK roads as Mintel reveals the consumer need
to be different from the average saloon driver.
5.
Consumers still prefer used cars to buying new.
6.
Alternative transportation is no longer a competitive substitute, but can be
considered something far more direct. With thanks to the UK fuel prices rising
this year and upcoming tax increases on the august horizon – driving is burning
many holes in many pockets.
So
who should they target? I believe sticking to the current consumer base is a
solid move for Honda considering the saturation of the industry in a slow
improving economy. Getting people to trade up is supported by the notion of
consumers being interested in 4x4 models. In the UK the most new cars
registered are in the South East, restrict this to the more suburban areas
where this car would be more practical and there is a rough base for targeting
the campaign.
What
do they need? Consumers currently need to make financially smart decisions. If
trading up gets them a better deal, then we’ve reached a win-win here. In
addition to price, safety often tops the lists of car purchase decisions. Honda
really should capitalise on their safety specs; collision mitigation braking
system, adaptive cruise control, active front lighting system and vehicle
stability assistance. It may be worth bearing in mind that the Land Rover
Freelander has no focus on safety in any of its specs and features.
What
do they want? Ok, something that Land Rover does do very well is appeal to the desires
and imagination of consumers (Been Anywhere Intersting Lately?). Driving is
an act of freedom and should be enjoyable. If Honda can translate the cheeky and
liberating tone given in its US campaign, to something equally fitting to the
UK market then it’s on track to turning heads and hopefully translating into
sales.
Looking
at their past campaigns, I have no doubt Honda will let anything less than
impressive go ahead, but they’ve set their own bar quite high. I look forward to the next Honda 'wow'.
No comments:
Post a Comment