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1. Demand Conditions 1. 1. Potential Demand Despite the negative impact of the global economic crisis, the period of 2009 – 2010 has been a relatively favorable years for motorcycle manufacturers in Vietnam. It is presumed that there are an average of 6 people / unit, reflected in the increase in demand for vehicles exceeding the original forecasting. Especially, there could be a significant increase in scooters demand, presumed around 40% by Honda. 1. 2. Future Demand

According to the Institute for Public Policy Industrial Strategy’s forecasting, at the end of the year 2010 there will be a demand of 25 million vehicles, about 31 million vehicles in 2015, and 2020 about 35 million units. Within 5 years later , motorcycles will double today. 1. 3. Effective Demand The reality in recent years has indicated that the shortage of some products of scooters has led to a scarcity of goods, eventually push up prices of scooters. Actually, the company currently meets only 80% – 90% of demand in the motorcycle market in Vietnam. In 2009, the number of motorcycles that Honda sold went up to 1. 3 million vehicles, up 18% compared with 2008, reaching the highest sale record in recent years. It is forecasted that there will be an dramatic increase in the effective demand of scooter in 2010. 4. Segmentation According to estimates from Honda Vietnam, the growth rate of the scooter at 27-28% per year and there are a little more room for new firms entering the market. On this basis, it is said that this segment is the most intense competition. Thus, Honda Rcs125 in this year tend to more focused on the segment of male customers in middle- to upper- income; enjoying strong and sportive design. . 5. Buying behavior Sided with the consumers, it can not be denied that Honda’s new product – Rcs125 would make buyer hesitate a lot before deciding to buy. This is a very important factor to be mentioned in the process studying about consumer’s buying behavior to predict the reaction of the buyer before launching Rcs125 and decide the most effective marketing strategies. Buyer behavior must be addressed in the analysis below. 1. 5. 1. Consumption pattern Although the economy takes over crisis, consumer spending despite limited than before but still wants to enjoy a very comfortable life.

One evidence show that consumer spending has decreased while demand of transportation vehicle has been increasing. Consumers play a more initiative role in consumption pattern. 1. 5. 2. The buyer decision process Need recognition |Information search |Evaluation of alternatives |Purchase decision |Post purchase behavior | | Buyer Decision Process 1. 5. 3. Buying criteria – Product: high quality, high durability, modern design, energy saving technology… – Competitive price – In using process: high speed, comfortable, convenient, easily using, 1. 5. 4. Buying habit

In a long period of time, in Vietnam mentioning buying vehicle, people tend to think about Honda brand name, some usually call motorcycles as the name Honda (in Vietnamese: xe may con du? c g? i la xe Honda) . This means a long been recognized in the buying habits and psychology of customers on the Vietnamese market is that Honda is a strong brand with good quality products as well as the highest sales volume vehicle. With its higher position compared with others, Honda has always been customer trusted and is often the first choice to meet the maximum demands of even the strictest customers.

It can be seen that consumer’s buying behavior is affected by the reputation and the popularity of Honda, especial Honda’s perfectly combined product like Rcs125. Between two or in among more than two products in the same price but in different brands containing Honda, the general public tend to choose Honda. This also is a positive with Honda’s product. However, the impact has not all been positive, excepting customers’ truth, Honda would cope with many others factor, which affect on customers’ buying habit like attitudes of multiple choices in prize, design, favorite… . Marketing Programming The marketing strategy for Rcs125 is based on this product’s differentiation. Our primary consumer target is middle- to upper- income. Thus there is a requirement of making a specific marketing strategy for Rcs125 in this segment. 2. 1. Product –Rcs125 Honda 2. 2. Price kho? ng 45-50tr 2. 3. Distribution – ket h? p v? i cac nha phan ph? i l? n nhu Vinashin,…. 2. 4. Communication – truy? n d? t thong tin qua bao chi, thanh l? p bu? i h? p bao ra m? t s? n ph? m vao ngay…. /2010, qu? ng cao….

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