Honda Element free essay sample

Study about â€Å"The Honda Element† Comment on the factors leading to success of the Element include Honda’s platform strategy as well as any other aspects oft he new product progress that you feel relevant. The Element—a cost-efficient, new light truck from Honda—is conceived for the target Generation Y. This generation is a really lucrative market, almost as large as the â€Å"baby boom† generation. In this way, Honda used demographic segmentation to identify a segment with very high potential. According to market survey, the Honda cars are basically driven by young women and families, but not so much by young men. The main idea of the product team was to develop an affordable, new design that target users would like to drive. To do this, it is important to understand the core values and beliefs of the target audience. Researchers with camcorders analyzed a clear picture of young males in the target market. We will write a custom essay sample on Honda Element or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page They seemed to have a strong cohort identification, support of social and environmental causes, were well educated, and seemed to be less career-driven than older generations. These results helped the Honda Team to create a car that fits perfectly for this target. The important aspects included the need for room for sports equipment, as well as a place to sleep on weekend trips, and so on. These were important for the buying decision of young people in the target audience. Accordingly, the Element truck is positioned for the single individual with an unconventional lifestyle. For this target there are four unique and important design themes: adaptability/modularity, authenticity, functionality, attitude/expression. These differ from the three corporate guidelines from Honda: performance, safety, and value.. During the creating progress several things happened simultaneously. During the process, team members visited male students to get their feedback and make little â€Å"quick-turn† improvements. For the best management support, the Honda Element team invited the Honda executives together with Generation Y students for a weekend camping trip. The team wanted the managers to feel like they lived a life of a target user. This simple strategy worked out ell, and the Honda Element was approved by the Honda management team. The development of new car products is usually separated into several subsystems. In the case of the Element, these were exterior, interior, suspension and power train, which all had their own design strategy. The Element started to be delivered to dealerships in summer 2003. The brand’s name â€Å"Element† was the favorite in research studies with the targe t audience. According to the Generation Y target, the advertising wasn’t traditional. Honda created interest in auto enthusiastic groups, at auto shows, and at colleges. They also sponsored surf events and tailgate parties at universities. In conclusion the Element reached 75,000 sales in 2004, which was clearly above the forecast. The typical Element buyer was across all age groups, mostly male and has a more active lifestyle than typical Civic buyers. Try also to work out what the product innovation charter PIC might have been for the Element. As the background, the Element by Honda should be a cost-efficient, light truck, especially for males of the Generation Y. It is positioned for the single individual with an unconventional lifestyle. The typical Honda guidelines are performance, safety and value. In case of this new developed car, the guidelines were added to with adaptability/modularity, authenticity, functionality, attitude/expression. According to the target audience the marketing plan wasn’t traditional. They made auto shows or sponsored surf events and college parties. The goal of the planning team was to create an easy not to complex created, new car, that doesn’t cost more than 20,000$, with around 50,000 sales in the first year. Surprisingly they reached 75,000 sales in 2004. What tangible benefits results from bringing in the voice oft he customer? By introducing the reviews from college students during the production, fundamental changes could be made. This ensured that the product also meets the expectations of the client. During the brainstorming in the early stage of development, the target audience opinion was very important. The Element should be a target group oriented car that made the collaboration very important. The constant balance of interests made it possible to generate the right car, leading to higher sales and profit. What could be learned from this case for firms in industries other automobile manufacture? The most important fact we learned about this case is that you have to work together with the target audience you wish to have for your product. You should look after their special needs and wishes to create the product they are looking for. In this way you can ensure greater benefits and sales.