Should Honda change its product mix from country to country?
Honda’s global strategy was successful in North America and Japan but failed when they entered Europe. The company failed to understand the European culture and treated them as one single market. Although Honda used the same product mix for every country in the European region; their product mix just doesn’t coincide with every country. There is a need for differentiation. Cultures, beliefs, tastes, and preferences can range from country to country and companies must be able to recognize and adapt their strategy to satisfy the needs and wants of those countries as long as the outcome is greater than the expense.
The prices of Hondas vehicles In Europe are comparable to local manufactured cars produced in Europe. Italy, France, and the United Kingdom all are risk adverse which makes it hard for competitors to enter into this market and grab the consumer’s attention. Perhaps Honda can enter into the market at a lower price on vehicles to grab attention. When consumer try their product and are satisfied they may become returning customer and expose their brand to other individuals.
The promotional strategy is used to create an image of a brand into the mind of the consumer they are trying to target. The target audience will accept the message the promotion is trying to give off according to their tastes and preferences. Honda used the word of mouth method also referred to WOM, the Internet and the company’s various websites to connect with potential customers. When entering in Europe, promotion is a big factor. The buyers in the European country select criteria among cars based on brand image and individuality whereas in countries such as North America and Japan bought cars based on economy and performance. The imbalance between Hondas marketing and technical side created organization