MARKETING ANALYTICS: Case Study

Background: You are the portfolio manager for Honda motor company. You have been asked to consider the role that six Honda vehicles play in the overall portfolio of the company. The portfolio exercise asks you to consider how the sales performance of these vehicles compares with that of market leader Toyota. You have gathered the following sales data for Honda, Toyota, and total sales and growth rates for six automotive categories: * Category Honda Sales, 2010 Toyota Sales, 2010 Category; Growth Midsize Accord 186,356 Camry 189,297 1,942,699; +10.2% Small Civic 156,832 Corolla 167,846 1,324,140; - 4.9% Minivan Odyssey 62,278 Sienna 53,482 449,546; +11.0% Midsize SUV Pilot 59,681 4-Runner 25,767 341,886; +27.3% Crossover Element 8,306 Venza 29,220 1,542,211; +14.0% Pickup Ridgeline 9,848 Tacoma 60,471 1,045,835; +10.6% 1. Calculate the market share for Honda and Toyota. Calculate the relative market share for Honda. Category Honda Market Share Toyota Market Share Relative Market Share Midsize Accord _____% Camry _____% _____ Small Civic _____ Corolla _____ _____ Minivan Odyssey _____ Sienna _____ _____ Midsize SUV Pilot _____ 4-Runner _____ _____ Crossover Element _____ Venza _____ _____ Pickup Ridgeline _____ Tacoma _____ _____ 2. Plot the positions for the 6 Honda vehicles on the BCG matrix. (Note the relative share axis is inverted) Growth . . +30% | Question Marks | Stars | +25% | | | +20% | | | +15% | | | +10% |_________________________________|____________________________________________| + 5% | | | 0 | | | - 5% |. Dogs | Cash Cows | 0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 Relative Market Share 3. Identify vehicles in each quadrant. Suggest a strategy for each vehicle. Quadrant Vehicles Strategy Dogs Cash Cows Question Marks Stars *(1) Source: Honda Press Rel