IMC Plan for Honda HR-V RS in Malaysian Market

Promoting their new brand product, the HR-V RS, in the Malaysian market presents difficulties for Honda's HR-V RS versions, who must create an IMC plan over the course of a whole year. The first step is doing a situation analysis; Honda's key internal strength is their fantastic reputation, while their main weakness is their traditional branding on the market. If we continue with the analysis of Honda HR-competitors, V's we find that the Proton X50 and the Toyota Corolla Cross are its primary rivals.

BM023-3-3-IMKTC Individual Assignment Level 3
INDIVIDUAL ASSIGNMENT
TECHNOLOGY PARK MALAYSIA
BM023-3-3-IMKTC
INTEGRATED MARKETING COMMUNICATIONS
APU3F2205BM (E-BUSINESS)
________________________________________________________
HAND OUT DATE : 22nd JUNE 2022
HAND IN DATE : 2ndSEPTEMBER 2022
LECTURER NAME : GOBINATHAN MANICKAM
NAME : MOHAMMED RIAZ
TP NUMBER : TP060060
WORDS COUNT : 3272
Table of Contents
Executive Summary…………………………………………………………………………3
1.0 Introduction........................................................................................................................3
2.0 Situational Analysis...........................................................................................................4
(i) Internal Environment Analysis.........................................................................................4
(ii) External Environment
Analysis........................................................................................53.0 Competitor
Analysis..........................................................................................................64.0 IMC
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Objectives..................................................................................................................75.0
Segmentation, Targeting & Positioning...........................................................................8
6.0 Brand selling and unique selling proposition…………………………………………9
7.0 Creative Strategy..............................................................................................................10
8.0 IMC
Tools.........................................................................................................................13(a)
advertising………………………………………………………………………………13
(b) Internet Marketing……………………………………………………………………..13
(c) Sales promotion……………………………………………………………………….14
(d) Exhibition and trade shows…………………………………………………………..15
9.0 Media Schedule................................................................................................................16
10. Budgeting..........................................................................................................................17
11.Evaluation & Control.......................................................................................................18
12. Conclusion.........................................................................................................................20
References...............................................................................................................................21
Executive Summary
Promoting their new brand product, the HR-V RS, in the Malaysian market presents
difficulties for Honda's HR-V RS versions, who must create an IMC plan over the course of a
whole year. The first step is doing a situation analysis; Honda's key internal strength is their
fantastic reputation, while their main weakness is their traditional branding on the market. If
we continue with the analysis of Honda HR-competitors, V's we find that the Proton X50 and
the Toyota Corolla Cross are its primary rivals. However, the Honda HR-V is the most
expensive and boasts the most comprehensive safety features. For Honda, the IMC strategy is
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all about boosting three metrics: brand recognition, interest in taking a test drive, and intent to
buy. Customers between the ages of 26 and 55, those who are married and/or have children,
and those want to save money are Honda's primary focus. The following step involves Honda
determining that the safety features of the new HR-V are its unique selling proposition, which
led to the decision to use a rational appeal creative strategy by showcasing the factual
statement "command attention" to promote the vehicle. Advertising on billboards and in
newspapers, online marketing via Facebook and Google Ads, and sales promotions at
festivals and fairs in well-known regions of Malaysia are all part of the integrated marketing
communications (IMC) strategy. Planning and financing the media is another important
aspect. During the first and fourth months of the year, Honda will ramp up its IMC initiatives
in the hopes of raising brand awareness through special events. Honda's IMC strategy will
receive approximately RM 2 million in funding. Last but not least, Honda has an evaluation
process to see if the IMC plan was successful in achieving its goals. In this assignment,
appropriate charts, tables, and facts will be used to back up the claims.
1. Introduction
Honda Motor Co., Ltd., a Japanese public multinational corporation headquartered in Tokyo's
Minato district, manufactures automobiles, motorcycles, and power
equipment(Sundralingam, 2022). With the help of Tan Sri Loh Boon Siew, Honda was
initially introduced to Malaysia in 1958. The Honda motorcycles he saw in Japan in 1957 left
such an impression on him that he tried to persuade Soichiro Honda to let him import them to
Malaysia (Irran, 2017). He was so successful that he opened a showroom in Penang,
Malaysia, to sell Honda motorcycles, and quickly rose to prominence, becoming one of the
first distributors of Honda motorcycles outside of Japan.
Kah Motor Co SdnBhd was founded in 1960, when the city of Kuala Lumpur opened its first
Honda dealership. To meet customer demand, a second showroom opened in Penang two
years later. The N360, produced by Kah Motor and using a 354 cc air-cooled engine, was a
tiny, two-door, four-passenger car released in 1967. The Civic was introduced by Honda in
1972; it was a fastback sedan equipped with a four-cylinder engine, front disc brakes, a
wood-trimmed dashboard, and optional air conditioning.
2. Situational Analysis
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2.(i) Internal environment analysis
(a) Strength
 Export business – Honda has established its massive manufacturing hubs in
industrialised countries, and the company also engages in the export industry of
premium edition motorcycles to those markets. (Jurevicius, 2022)
 Social Media Marketing – Honda's social media marketing has helped it attract a lot
of followers by promoting a variety of content that connect with users.
 The pricing strategy – Because it offers high-quality products in a reasonable price
range, Honda attracts over 28 million customers annually from all over the world.
(b) Weaknesses
 Decrease in sales revenue – Honda has seen a dramatic drop in sales and consumer
demand as a result of the pandemic. According to the September 2020 census, the
company's sales dropped 25.2% as a result of a decline in sales revenge across the
board.
 Branding Strategy – Honda's reliance on traditional branding and communication
practises is one of the company's most serious flaws. If not addressed soon, this might
become an increasingly serious issue.(Jurevicius, 2022)
 Requirement of Higher Investment – Honda must redouble its efforts to advance
technology. It invests a lot of money into building out its technology infrastructure,
yet it lags significantly behind the competition. This could eventually lead to dire
consequences.
2.(ii) External environment analysis
(a) Opportunities
 New Markets – Each and every business, no matter how large or little, has been
negatively impacted by the pandemic, and as a result, governments have taken action
to aid in the economic growth of their respective nations. As a result, the emergence
of fresh markets offers Honda a chance to recover, expand, and enter new areas of
industry. (Jurevicius, 2022)
 Diversification in Business – Given Honda's solid reputation and track record, the
automaker would do well to introduce new products that can help increase sales and
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revenue. They may benefit greatly from this change, as expanding their offerings is
likely to draw in new customers and raise the company's profile.
 The Production of Electrical Vehicles – The sad truth is that the world's supply of
fossil fuels has been depleted to the point where electric vehicles, sometimes known
as "zero-emission vehicles," may soon dominate the market. For its part, Honda
should seize the initiative and develop such vehicles to the full extent of its
capabilities.
(b) Threats
 Increase in competition – New companies have flooded this market in recent years,
making competition tougher than ever before. Therefore, competition is fierce, and
Honda's rivals are making plans to dominate the market.
 Impact of Covid-19 – As the pandemic posed a significant threat to Honda's
production and distribution networks, product sales took a significant hit. Thus,
leading to substantial modifications in the business strategy of the corporation.
 Government Regulations – Honda is confronting obstacles provided by the
government’s new laws and regulations particularly in its business and production
sector. The government's opposition to the corporation is in part due to pollution, and
the company stands to lose in the long run if the government makes clear it does not
approve of the profit-driven strategies.(Jurevicius, 2022)
3. Competitor analysis
3.(i) 1st competitor:
Honda HR-V with Proton X50 Point of Difference (POD)
For the price wise, Honda HR-V RS is a bit expensivebut affordable whereasproton x50 is
cheaper. Honda HR-V RS e:HUVhighest package pricecost around RM 140,800 while Proton
X50 1.5T flagship cost around RM 109,800 only. It was also mentioned that Proton priced
the X70 25,000 Malaysian ringgit (RM) less than its competitors. (Jain, 2022)
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From the size wise, The Proton X50 is wider, longer, and taller than the Honda HR-V, but it
boasts a more aerodynamic design. When it comes to cargo capacity, though, the HR-V
easily outclasses the Proton X50. As far as curb weight goes, the Proton X50 outweighs the
HR-V by a significant margin (1,370 kg vs. 1,290 kg). The X50 is about 4,330 millimetres in
length and has a wheelbase of 2,600 millimetres, making it slightly smaller than the Honda
HR-V, which has been seen as the standard B-SUV for the longest period.
Point of Parity (POP)
Both are compact SUVs that are within the price range of middle-class families and above;
they both have a 1.5-liter engine and 18-inch wheels; they both have six airbags; they both
have semi-autonomous driving features; they both run on gasoline; they both have five doors;
they both have USB and Bluetooth connectivity; etc. (Jain, 2022)
Furthermore, both Proton and Honda offer linkup applications that, when used in conjunction
with a compatible smartphone, allow the vehicle to be started remotely.
3.(ii) 2nd competitor:
Honda HR-V RS with Toyota corolla cross Point of Difference (POD)
As far as Malaysians are concerned, the POD for a Honda HR-v is a selling price that is
roughly equivalent to that of a Toyota cross. Costing about RM 140,800 for the top-of-the-
line Honda HR-V RS e:HEV trim, the Toyota Cross 1.8L Hybrid priced for RM 137,000.
Because of Honda's brand-new HR-V, many people who have been "waiting" to buy a
Toyota Corolla Cross may decide to change their minds and get a Honda HR-V instead. (Jain,
2022)
Why? Honda Malaysia has pre-ordered hundreds of units, so with the updated design and
established reputation of the HR-V nameplate, together with the likelihood of delivery in a
matter of weeks, this might be another smashing success for the Japanese automaker.
Point of Parity (POP)
Both the cars are SUV. SUVs combine the sleek appearance of regular cars with the off-road
capabilities of vehicles like four-wheel drive and higher ground clearance. There are 5 seats
and a fuel capacity of 2 litres in both vehicles. (Jain, 2022)
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Fuel-conscious consumers can choose between the Honda e-HEV and the Toyota Cross
Hybrid. Both vehicles are similarly priced across the board, but the HR-V appears more
robust due to its larger footprint and higher ride height. The HR-V measures in at 4385
millimetres in length, making it narrower than the current generation of the CR-V but just as
long. The new HR-cabin V's is on par with that of several European compact vehicles, which
may be enough to sway some shoppers away from Toyota.
4. IMC Objectives
(i). To increase brand awareness of Honda HR-V RS to adults by 80% in Malaysia
market within 6 months.
The last HR-V was a huge success, selling 111,000 units since it came out in 2015. Even
after it got a makeover in 2019, it still won its segment. Up until the end of 2021, the old
Honda HR-V sold an impressive 21 percent of all the cars Honda Malaysia sold, making it
the second best car in their showroom. (Marrs, 2022)
But because the market for cars is so competitive, the sales retention rate can go down. So, an
IMC strategy like running ads in the newspaper and on social media all the time would help
connect with people and raise brand awareness of the new Honda HR-V to 80%.
(ii).To enhance the test drive of Honda HR-V RS e-HUV to 60% for customers in
Malaysia market until the end of the campaign.
Once customers know about the advertising and promotions for the Honda HR-V RS, Honda
wants to increase the number of test drives in Malaysia by 60%. Test drives can be done in
person or through a review video on YouTube. This will strengthen the relationship between
Honda and its customers because it will show them some new features, like keyless entry,
that they might not know about. This method will have a good effect that will help Honda
HR-V RS sell more cars.
(iii)To be able to gain 50% HondaHR-V RS purchases from the test drive customers in
Malaysia market when the campaign ends.
During promotional events or test-drive campaigns, customers will use the Honda HR-V RS
with the help of a Honda salesperson. This will get customers more interested in the product
and make them more confident in its durability and quality. This will definitely make
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customers feel good about the Honda HR-V, which will lead to more sales. So, Honda will
try to get 50% of people who test drive the new Honda HR-V RS to buy it.
5. Segmentation, Targeting & Positioning
In order to segment the Malaysia market, Honda will separate the market into age range,
income, family stage life cycle, usage rate and benefits which can be seen as follows:
Age Range Income
15-25 years old
26-55 years old
56-70 years old
Family Life Cycle Usage rates
Married with children
Married without children
Single
Benefits
Speed
High specs
Affordable
From this segmentation, Honda HR-V RS will be able to target their market. Their first target
market is people between the ages of 26 and 55. This is because people in this age group have
their own money and jobs, which makes them more likely to buy the Honda HR-V RS 2022.
Honda also aims for customers with incomes of at least RM 8,000, so they are more likely to
be able to afford the most expensive version of the Honda HR-V RS e-HUV, which costs
around RM 140,800 and has the best quality (Boon, 2022). Also, Honda is looking for
customers who are married and have kids, because the Honda HR-V RS is an SUV for
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RM 1,500- RM 4,500 monthly
RM 5,000- RM 7,500 monthly
RM 8,000- above
Light users
Mid- level users
Heavy users

BM023-3-3-IMKTC Individual Assignment Level 3
families with 5 seats. This is the right car for a customer who always goes out with their
family, whether for lunch, dinner, or a vacation. Honda will go after heavy users because
their car can do everything that most high-priced cars can do. Not only that, but the Honda
HR-V RS also helps customers save money by offering high-quality cars at prices that are
lower than those of its competitors. This helps customers save money. (Yunos, 2022)
6. Brand Positioning and unique selling proposition
(USP)
Based on what we've talked about in the competitor analysis, it's clear that the Proton X50,
Toyota corolla cross, and Honda HRV RS are all very different in terms of price, design,
specs, weight, technology, etc. But if we look at the differences, you can see that the Honda
HR- V's feature is the best safety measures they offer their customers, which are thought to
be outstanding for the price. The Honda HR-V RS e-HUV 2022 model has a lot of active
safety features, such as Autonomous Emergency Braking, Forward Collision Warning,
Adaptive Cruise Control, Lane Keep Assist, Lane Departure Warning, and Blind Spot
Information System (Tan, 2022). All of these safety features are thought to be all there are.
In addition, the HR-V has Auto Park Assist, which lets it park itself. In terms of how much
gas they use, both the X50 and the HR-V Turbo use 6.5 litres to go 100 kilometres. But the
hybrid HR-V gets the best gas mileage at 4.1 litres per 100 kilometres. In terms of Honda's
target market, research shows that most Malaysians are worried about safety and put that at
the top of their list when buying a car. As the graph below shows, about 64.4% of Malaysian
respondents look for safety features before buying a car. (Jawi, 2013)
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Figure 1: Factors affecting car purchasing decision in ASIA
When Honda compared their two highest-end vehicles, they discovered that the X50 is on
line with the more expensive HR-V in terms of design, comfort, and security. Without a
question, the 2022 Honda HR-V is a great SUV that offers remarkable fuel economy due to
its hybrid configuration and is packed with all the latest conveniences. The latter is more
luxurious, but it comes at the expense of power and a significantly greater price tag than the
X50. This means that personal taste and financial constraints are the important
considerations.
7. Creative Strategy
Honda markets the HR-V RS through various media, including newspaper, billboard,
television, and online, all of which focus on the vehicle's unique selling proposition. In this
instance, Honda employs the rational argument to influence consumers' desire to buy.
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Figure: 2 Honda HR-V poster
Figure: 3 Advertising of Honda HR-V regarding the command attention
From the figure 2 and 3 above, Honda's ads in various publications, including their official
website, newspaper, and social media platforms, all make use of the rational appeal strategy.
It's clear that Honda employs a no-frills approach to selling by highlighting the many
advantages of the HR-V RS and ending the commercial with the slogan, "Command
attention," to reassure customers that the high-tech equipment they're receiving is of the
highest standard (Alam, 2022). The Honda HR-V was advertised using the logical appeal of
facts, details, and important characteristics. Further demonstrating the Honda HR-V
reliability and longevity is the phrase "5 year warranty," which can be found in the poster's
upper left corner. The primary rationale for employing this method is that it has the potential
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to influence the consumer toward the desired end and to provide a clear presentation utilising
keyword to emphasise the exceptional performance of Honda HR-V safety features.
8. IMC tools
a) Advertising
Advertising on digital billboards, which is bright, engaging, and effective in raising product
recognition. In order to reach the largest number of motorists and potential clients, the
billboard will be placed in Klang Valley. From June through September and again from
November through January, the billboard will be up nonstop at all times.
Figure: 4 Honda HR-V billboard ads
b) Internet marketing
To advertise the New HR-V, Honda will use the internet and other integrated marketing
communication (IMC) tools. As of the year 2020, it was estimated that the average Malaysian
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spends between six and eight hours online each day (Murugiah, 2022). For this reason,
Honda's online presence increases the company's potential for expanding its customer base.
Honda plans to have a presence on as many social media platforms as possible. Honda will
use social media to respond to questions from customers in real time through online chat and
to announce any new items or discounts. Due of Facebook's prominence in Malaysia, Honda
has decided to promote the HR-V using sponsored ads on the platform, with the ad being
seen to just people who match a specific demographic. The Honda HR-V will be advertised
on Facebook 24 hours a day for a year to attract new customers and raise the crossover's
profile. Honda plans to expand its online presence by employing the Google Ads Advertising
strategy. SUV, Automobile Promotion, family vehicle, and budget car are just a few
examples of keywords that Honda will pay to have associated with their brand. Every time a
user clicks on one of Honda's ads, Google Ads will charge the automaker a small fee. Last
but not least, Honda will employ email marketing to increase customer loyalty. Whenever
there is an event organised by Honda to unveil a new product, customers will receive a
personalised email inviting them to attend and asking for their feedback on the vehicle's
performance. The vendor's relationship with their clientele will improve as a result.
Figure: 5example of google ads
c) Sales Promotion
Honda can use sales promotion as one of the powerful IMC tactics at its disposal. This might
be in the form of a cash rebate of up to RM 5,000 on the first one hundred Honda HR-Vs sold
between November and December, the Chinese New Year, or any other festival. When
purchasing a Honda HR-V during the months of September and October, clients will not only
receive a discount, but also a number of mementos, including tinted glass, an umbrella, and
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car scent. Customers who take part in Honda's fortunate draw sessions have the chance to win
prizes like price reductions, cash back vouchers, and free car washes and polishes. Because of
the discounts and freebies being offered, this sales drive is sure to improve sales and attract
new customers. Honda hopes that by taking this action, its customers will be less likely to
switch to a competitor's product.
Figure: 6 HR-V sales promotion duringChristmas
d) Exhibitions and Trade Shows
Additionally, from June through August and September through December, Honda will be
present at auto shows and trade fairs every weekend (Friday through Sunday). The major
shopping centres in Malaysia, including Pavilion, KLCC, Mid Valley, and Sunway Pyramid,
will host Honda's own automobile shows and exhibitions. Exhibitions and trade events will
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force Honda to interact with rivals like Proton, Toyota, and Mazda, who may be able to
provide insight into how to better their own automobiles. Because clients will be able to
communicate directly with the salesperson, this IMC tool is an efficient method of promoting
the product to the market. In addition, consumers can take the Honda HR-V for a spin and
learn more about the vehicle's characteristics. At trade shows and expos, Honda gives clients
a one-of-a-kind experience. Throughout the months of August, September, and December,
this IMC Tools will be offered on weekends (Saturday and Sunday).
9. Media Schedule
Honda Media Schedule using the Gantt Chart below to display the advertising timing starting
from January – December 2022.
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Figure 7: Honda IMC Schedule Gantt Chart
According to the timetable, the first and last three months of the IMC are quite busy for
Honda. This is because Honda is able to take advantage of the abundance of holidays and
festivals occurring at that time to host a greater number of sales and publicity-oriented
activities. Honda will achieve its first IMC goal using this strategy, which is to enhance brand
awareness by 80% within the first six months of the year 2022.
10. Budgeting
Honda will allocate cost around RM 2 million to achieve the objective of the IMC plan.
IMC activities Cost (RM) Total Cost (RM) Total Percentage
(%)
Advertising:
Newspaper
Television
Billboard
200,000.00
400,000.00
120,000.00 720,000.00 36
Internet Marketing:
Facebook
Google
300,000.00
280,000.00 580,000.00 29
Sales Promotion:
Cash rebate
Free Souvenirs
Lucky draw
Voucher
30,000.00
75,000.00
125,000.00
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50,000.00 280,000.00 14
Exhibition and
Trade show:
Rental
Setup runner
Electrical utilities
Decoration
250,000.00
75,000.00
75,000.00
20,000.00 420,000.00 21
Total cost 2,000,000.00 100
Honda invests much in marketing due to the proven effectiveness of mass media in reaching
target audiences and raising brand awareness. With consistent use, this strategy will raise the
profile of the new Honda HR-V and ultimately boost sales. Internet marketing is expensive
because it has several benefits, including a more personal connection with clients through
online chats and email, and the ability to collect customer data. Since direct product exposure
often leads to an immediate purchase, Honda ranks third in exhibit spending.
11. Evaluation & Control
Honda must set schedule in order to ensure all the promotional activities held are working
successfully during the 2021 timeframe.
Months Schedule
January Create brand awareness among existing and new customers by using IMC
tools
February 15% of customer aware of Honda message.
5% of customer test drive Honda HR-V
2% of customer test drive purchase Honda HR-V
March 35% of customer aware of Honda message
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15% of customer test drive Honda HR-V
7% of customer test drive purchase Honda HR-V
April 55% of customer aware of Honda message
20% of customer test drive Honda HR-V
10% of customer test drive purchase Honda HR-V
May 70% of customer aware of Honda message
25% of customer test drive Honda HR-V
12% of customer test drive purchase Honda HR-V
June 80% of customer aware of Honda message (1st IMC objective achieved)
30% of customer test drive Honda HR-V
15% of customer test drive purchase Honda HR-V
July 35% of customer test drive Honda HR-V
17% of customer test drive purchase Honda HR-V
August 40% of customer test drive Honda HR-V
20% of customer test drive purchase Honda HR-V
September 45% of customer test drive Honda HR-V
25% of customer test drive purchase Honda HR-V
October 50% of customer test drive Honda HR-V
30% of customer test drive purchase Honda HR-V
November 55% of customer test drive Honda HR-V
40% of customer test drive purchase Honda HR-V
December 60% of customer test drive Honda HR-V (2nd IMC objective achieved)
50% of customer test drive purchase Honda HR-V (3rd IMC objective
achieved)
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Honda will calculate how many people are aware of the IMC plan as part of the review.
Honda will review sales data from the Star Malaysia newspaper, TV ad ratings and
viewership, and customer interaction with ads on Facebook and Google. Moreover, Honda
will send out online surveys to select email addresses to determine how well-known the new
Honda HR-V is.
With the use of the monthly test drive report and sales report, Honda will assess the number
of people who attend the exhibitions to take the test drive and buy after the experience. If
sales are up in 2021 compared to 2020, then the integrated marketing and communications
strategy was effective.
12. Conclusion
Situational analysis, target market, creative strategy, IMC tools, media scheduling, budgeting,
and assessment are all essential components of an integrated marketing communications
(IMC) plan. Honda's goal was to raise the number of people who heard about, tried out, and
ultimately bought their new HR-V RS e-HUV. As a result, Honda needs to spend a year
crafting a comprehensive IMC strategy. Although it may take time, with the correct IMC
approach Honda will be able to achieve its marketinggoal.
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attention-with-the-all-new-hr-v/.
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hr-v.
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Asia Pacific University of Technology & Innovation Malaysia

BM023-3-3-IMKTC Individual Assignment Level 3
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Asia Pacific University of Technology & Innovation Malaysia