The Honda Case: Exemplar Question & Answer To Follow

Despite having a range of light trucks and Sport Utility Vehicles (SUVs) like Pilot SUV, Odyssey minivan, and CR-V, which were successful in the market, these vehicles were not appealing to the young men, the Generation Y. This was a market segment that had not been exploited yet it had the potential to grow. To address the needs of this market segment of Generation Y, Element was developed. The new product was successful and surpassed initial projection of yearly sales.
The success of the new product can be attributed to marketing research done to address the specific needs, tastes, and preferences of the users, and the marketing strategy employed. The Honda’s platform of breaking down product development into subsystems: exterior, interior, suspension and power train is recommendable as it makes the design process efficiently, and addresses user requirements on the Element accurately. The need for flexibility of the interior to hold more cargo was met by creating fold-away seats that could be removed to create more space, in addition to removable moon roof. The exterior components design addressed the uniqueness desired by target segment in easy to enter/exit side doors and unique tailgate. To make the ride more maneuverable, fun, and sporty, the engineers combined chassis of CR-V and power steering gearbox of the MDX, CR-V, and Pilot.
The engineers and marketers also sought the opinions of the users on the initial design sketches. Armed with the feedback, they made improvements on the designs based on user preferences before embarking on final designs and production. User involvement would out rightly make the Element more acceptable. To popularize the product among the Generation Y, Honda would sponsor events frequented by the youth like surfing, and tailgate parties in colleges and universities. This is a cause marketing which appeals to users. The camping trip for Generation Y and the companies executive to share opinions and lifestyle activities is one way to earn loyalty between customers and the firm. This is beneficial to the company as it expands its market share and its products accepted widely.
Other businesses can learn from this by taking part in cause marketing, collecting consumer opinions in design, development or production of new products to ensure that they are acceptable to the user. When users see that their views are valued, they are more likely to stick with a company’s products for a long term.