American Honda Motor Corporation Essay

This essay has a total of 809 words and 4 pages.

American Honda Motor Corporation

Honda Corporation and U.S. Markets

After investigating the U.S. market and getting positive feedback, Honda exported over
50,000 CR-Vs to the U.S. in 1997. The target markets for this sporty looking new CR-V were
consumers between the ages of 23 - 34, referred to sometimes as generation X. At $20, 000
however, in comparison to its competitors who offer vehicles at a cheaper cost, one might
ask the question - why such a high price tag? An article on generation X from sums the answer to this question up nicely:

54 percent of Gen Xer's have established a financial plan
88 percent want investment advice
46 percent already own mutual funds
Population size of 44 million and growing
The increased use of information technology in today's economy also creates an environment
that facilitates better-informed decision-making. The internet, a powerful source for
information is more than readily accessible. For instance, instead of watching 30-second
commercials on television, generation X can tap into the net and spend as much time as
they need researching products before making a purchase. As a result, generation X is
better educated than previous generations and has more disposable income. They value
quality more so than ever before and basically look for products that work for them.

Economic forces that will impact Honda
To continue selling record breaking units Honda will have to keep in touch with the needs
of its changing customer base. For instance, the fastest-growing states, metropolitan
areas, cities, and countries were concentrated in the South and West, according to the
Census Bureau.

The states whose population rose the fastest between 1996 and 1997 were Nevada (4.7%),
Arizona (2.7%), and Georgia and Utah (both 2,1%). Meanwhile, Las Vegas, was the most
rapidly growing metropolitan area from 1990 to 1996, with a 41% population increase,
followed by Laredo, TX (33%), and McAllen-Edinburg-Mission, TX (29%).

The story for cities was much the same. Among those with more than 100,000 people in
1996, the fastest growing from 1990 to 1996 were Henderson, NV (88%), Phoenix, San
Antonio, and Houston. Each gained more than 100,000 people during this period.

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