Marketing, Honda and The Recession
I was invited, and went, to test drive the new Honda Insight. I went because, if my right foot is light enough, I can win some goodies. And I do, at some point, think I ought to have a hybrid car. And I like my little Honda Jazz (or Honda Fit in the USA).
So She Who Must Be Obeyed at All Times and I bimbled over to the showroom and the very nice man who let us buy the Jazz from him 18 months ago showed us the Insight.
Honda has upgraded the styling on the Civic to dump old fuddy duddies, so imagine my surprise when it looked a but like an updated Accord. The product is positioned firmly as "Retirement Car" and requires you to be dead already.
I keep trying to work out product positioning with Honda. The Jazz doesn't seem to have a position. The Insight? Sixth Sense. Haley Joel Osment sees them. Dead people.
This is not a sexy hybrid.
That's a shame. I got 55.1 miles to the imperial gallon on the test drive. My Jazz gives me 40+, and I can approach 50 on a really good day if I'm not in a hurry. As I drove the nice salesman asked me what I thought of it.
Well, it's unexceptional to drive. The view in the rear view mirror is execrable, and the digital speedometer annoyed me at once. Speed is analogue. And the gizmos that showed me when the electricity was powering the car and when petrol was doing it, plus five trees with leaves or not, they annoyed me beyond belief.
The load space is full of batteries, and it looks like a Toyota Prius. Like bran it's obviously good for you. Never buy one in beige!
But the marketing is odd. The salesman knows I don't like it, and don't want it. So he's calling me later this week to confirm that! That happens even though I said "Please don't bother, I'm not going to buy one."
Honda, though, is about to cut workers' pay in the UK. It needs to sell cars. But I can't smell any incentives. Trade in on my Jazz, bought not new 18 months ago for £11,000 is £7,200. An Insight will set me back £16,500 or so. No zero percentage finances, no special offers, nothing.
From this I deduce that there is no recession, at least at Honda.
This time last year they could sell all they could make. This year seems to feel the same, but they're cutting assembly workers' pay.
I still want a hybrid. But I can wait.
6 comments:
Insight is from Japan, Yen is screamingly strong, car is new, does same job as Prius and under-cuts it by £2-3k = no 'incentives'.
Your Jazz is still performing very well as a used car - very strong residuals, although there is a new Jazz out now.
Incentives will be found on the large-but-fast-diminishing pile of cars made in Swindon (Civic & CR-V)while workers there take an enforced break to contemplate the offer of a pay-cut.
Honda's global strategy has always been to keep supply just behind demand (rather than others' "build 'em then work out how the hell we're going to sell 'em!" approach) but this has been blown to bits by recent events. However, Honda has taken more drastic action than most to stopping adding to the pile and will be in better shape as things stabilise. You'll be thankful of this when you study the re-sale value of your Jazz in the months to come.
Positioning? Well, you're the Marketing Consultant! Jazz is for people who want a small package with BIG practicality but aren't too bothered about style. Civic is for people who want more syle and sportier performance. And Insight is for people who want to be seen as being 'good' - they want a small family Hybrid but don't want to pay Prius prices, although it will attract more from other conventional hatchbacks ultimately.
Enjoy your Jazz, though - we have one in the family and it's a little jewel. And I think Honda will emerge from the recession as a company that people like and want to have around, if they keep thinking a bit different. So keep thinking while the salesman gets back to you...
I guess the author of the first comment works for Honda. I'm really not sure Honda will be in better shape after this recession: the sad fact is that Honda do not make desirable vehicles, environmentally friendly or otherwise. They've seen good growth over the last 15 years (in the UK) but now we're in a severe downturn and they don't know what to do as a company. The marketing push (and this has got poorer over the last two years anyway) is now almost dormant with no new ideas since The Impossible Dream ad. On top of that, they've pulled out of F1 just as the team they built up starts winning. A curious company and a curious approach to the recession. i wouldn't be surprised to see them go this year.
I think I'd be surprised to see them go. Honda makes engines, not cars, bikes, generators, etc. And there is a market for engines.
The cars are pleasing, though not an immediate "must have". They have the usual non personalities of all Japanese cars.
But the Insight... Well it isn't dreadful, but it doesn't hit any sweet spot yet. We're still in the earl;y adopters phase of the market and that means that just about any old thing will do.
And I still don't see the product positioning of the Jazz, though I do like it once inside and driving it.
I love my Insight. Sexy is in the eye of the beholder?
It sure is!
Anyone got a suggestion for a good hybrid?
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