Hybrid and Electric Cars: Honda Accord

Hybrid and electric cars: Honda Accord hybrid cars
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Table of Contents
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Hybrid and electric cars: Honda Accord  PAGEREF _Toc422244139 \h
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1.0 Part A: SWOT and BCG analysis  PAGEREF _Toc422244140 \h
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1.1 SWOT analysis of Honda Accord’s hybrid/electric car  PAGEREF _Toc422244141 \h
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1.1.1 Strengths  PAGEREF _Toc422244142 \h
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1.1.2 Weaknesses  PAGEREF _Toc422244143 \h
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1.1.3 Opportunities  PAGEREF _Toc422244144 \h
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1.1.4 Threats  PAGEREF _Toc422244145 \h
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1.2 Analysis of two existing hybrid models: Honda Accord and Toyota Prius  PAGEREF _Toc422244146 \h
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2.0 Part B: Purchasing decision process and positioning  PAGEREF _Toc422244147 \h
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2.1 Problem/need recognition  PAGEREF _Toc422244148 \h
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2.2 Information search  PAGEREF _Toc422244149 \h
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3.0 Part C: Product characteristics and pricing  PAGEREF _Toc422244150 \h
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4.0 Part D: Integrated marketing communication  PAGEREF _Toc422244151 \h
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Appendix A: References  PAGEREF _Toc422244152 \h
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Appendix B: Illustration of BCG model  PAGEREF _Toc422244153 \h
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Appendix C: Honda’s positioning strategy – perceptual map  PAGEREF _Toc422244154 \h
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Hybrid and electric cars: Honda Accord
1.0 Part A: SWOT and BCG analysis
1.1 SWOT analysis of Honda Accord’s hybrid/electric car
StrengthsWeaknessesEnvironment conscious cars with reduced carbon emission
Good reputation in Europe and North AmericaHonda Accord hybrid cars are somewhat expensive.
Weak marketing communicationOpportunitiesThreatsIncreasing oil prices in future
Potential decrease in car priceDrop in oil prices
Hybrid cars have small market segment and market share
1.1.1 Strengths
Honda Accord hybrid cars are basically environmentally friendly automobiles with reduced carbon emissions. As such, they are very efficient cars. Secondly, these cars have a good reputation not only in terms of fuel efficiency, but also excellent interior and exterior design. The car has traits that many drivers want: edgy, user-friendly, and intelligent (PlugInCars, 2014).
1.1.2 Weaknesses
Honda Accord hybrid cars are somewhat costly. The price of a new one starts at $29,305 (Honda, 2015). These cars are also very expensive to maintain bearing in mind that their electric batteries are also very costly. The other weakness is weak marketing communication. The company has not marketed Honda Hybrid vehicles effectively and this greatly affects market awareness. If this auto maker intensifies its marketing and advertising campaigns for Honda Accord hybrid cars, more and more people would be aware of these cars and this may improve sales of Honda Accord hybrid cars.
1.1.3 Opportunities
Rising prices of oil is a major opportunity for Honda Accord. This is because more and more people will seek to buy hybrid cars due to their fuel efficiency. Another major opportunity is decreasing the price. If these automobiles could be priced less expensive, for instance under $25,000, then many consumers may consider buying them.
1.1.4 Threats
A major threat is certainly low prices of oil. In essence, consumers would not see the need of buying a hybrid car if prices of oil are so low. The other threat is very low market share. It is notable that in 2014, the market share of hybrid cars in America was less than 3.5%, with Honda Accord having a market share of less than 2% (DeMorro, 2014).
1.2 Analysis of two existing hybrid models: Honda Accord and Toyota Prius
The Boston Consulting Group (BDG) Model is used to analyze Honda Accord hybrid model and Toyota Prius hybrid model (See Appendix B). Honda Accord hybrid targets the market characterized by drivers who want cars that are fuel efficient and are relatively costly. These cars are powered by gasoline and electricity. The market growth rate is high and Honda Accord’s share of this market is a bit high compared to other hybrid automakers. The BCG category is star. The company’ strategy should be to keep going, and the hybrid models should be supported. With regard to Toyota Prius, the Toyota targets drivers who want inexpensive cars that are eco-friendly. Both gasoline and electricity are used to power the cars. Toyota Prius has a low market growth rate. The company’s share of the market is high considering that Toyota Prius sells a considerable amount of hybrid cars. Its BCG category is cash cow, and the strategy is to keep on selling. The company should also put some support into this but not major developments.
HighHighLowStarsQuestion MarksStrategy: invest for growth
Cash flow: neutral
Earnings: growing, stable, low
Profit potential
High growth and market share
Might require a lot of investment in order to grow
Strategy: invest if there is potential, otherwise sell
Cash flow: negative
Earnings: growing, unstable, low
Build into stars or phase out
Low share, high growth
Require cash in order to hold market shareLowCash cowsDogsStrategy: invest in order to sustain current level
Cash flow: stable and high
Earnings: stable and high
High share, low growth
Generate cash
Established, successful company Strategy: divest
Cash flow: negative or neutral
Earnings: unstable, low
Low profit potential
Low growth and market share
2.0 Part B: Purchasing decision process and positioning
The purchasing decision process comprises 5 stages. These are (i) problem recognition or need recognition; (ii) information search; (iii) alternative evaluation; (iv) purchase dec...