Market reports – Honda: pause and strategic overhaul – Used HONDA

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Honda: pause and strategic overhaul

Market reports - Honda: pause and strategic overhaul - Used HONDA

With a decrease of 7% in 125 and an increase of 4.8% in large engines, Honda seems to be taking a break. And for good reason: a strategy overhaul is underway at the world No. 1 who knows only one watchword: quality !

The 125 market grew by 8.1% in 2005 and at the same time, Honda sales fell by 7%. In large engines, the world number one defends itself better by increasing its activity by 4.8% when the two leaders (Suzuki and Yamaha) are struggling to equalize their 2004 scores..

Florent Lionnet, Deputy Director of the Motorcycles Division of Honda Motor Europe South, explains to Moto-Net the "why" of this break.

Moto-Net: What is your assessment of 2005? ?
Florent Lionnet, Deputy Director of the Motorcycles Division, Honda Motor Europe South: Nearly 200,000 units have been registered on the French market. This is a historic and encouraging record for the motorcycle world! For Honda, the trend is slightly upward for large engines, while our 125 sales are timidly down compared to 2004. But beyond the figures, we have done a major job of overhauling our strategy and the keyword at Honda is and will now be quality! 2005 will remain the year of departure for major projects, both in terms of after-sales service and sales. In the first half of 2006, we are launching two new products: the 24-hour repatriation assistance contract from January 2 and a 2 Wheels Maintenance Contract from April 1. The main objective of these two services is to further improve customer satisfaction.

At the network level, I made decisions in order to restore confidence with our dealers, in particular by launching a training plan. My concern is to promote people and teams by offering tailor-made programs to adapt to each individual’s level.

On the purely network marketing side, we are going to launch a concept of new concessions (Elite) with the aim of raising the quality level of stores. In communications, we have reviewed our partnerships and will be working with new advertising agencies. I invite you to buy Le Figaro Magazine on January 25 to discover an announcement on our new scooter, the PS 125i! For its part, our partner Honda Finance offered us very attractive offers at 3.90%. The list of works for 2005 is long and I will also select the Honda Days as well as our ABS tests. Finally, we are launching a Franco-French limited series with the CBR600RR WinWin, initiated by the great partnership and success of Sebastien Charpentier. !

Moto-Net: Which are your best-selling models and why ?
F. L .: For the fifth consecutive year, the Varadero 125 retains its title of best-selling 125 motorcycle in France. It’s the only 125 that actually looks like a big engine. The CBR125RR is the best-selling 125 sports car, as it has a very above-average level of build quality with an attractive price of 2,800 euros. In the motorcycle category, the CBF600 is Honda’s best-selling model. The main reason is its accessibility and easy handling. The adjustment of the screen, the saddle and the handlebars has won over a large number of riders who have also been very sensitive to ABS. The Hornet, on the other hand, was very well received in its new orange colourway and its high quotation value on occasion proved that it was indeed a motorcycle with a Honda quality of finish..

Moto-Net: Which ones are less successful and do you know why ?
F. L .: The Transalp 650 and the CBR11100XX, for example, are models with modest results which can be explained by their life cycle which is already well under way. In 125, the Innova posted modest numbers because the market for 125 semi-automatic gearboxes was small.

Moto-Net: What was the pleasant surprise of this year ?
F. L .: Our ABS strategy has paid off. Our sales increased by 40% in high volumes, thanks to our policy of democratizing this technology, which we want to see accessible to all biker customers. For 600 euros more, a latest generation ABS is offered on the CBF600SA for example.

Moto-Net: Which was the worst ?
F. L .: We are disappointed with the sales of the FMX 650. The Supermoto segment is very specific and perhaps as a generalist we have not known how to "worry" the specialists in this market. Therefore, we took the decision to launch a commercial action to increase the price of the FMX to 4990 euros..

Moto-Net: How do you explain your fall in sales in 125? ?
F. L .: This trend is more of a settling than a fall. This is mainly due to the lack of notable Honda novelties in 2005. On the other hand, the fierce competition between three main scooter brands has resulted in a very bitter price war. We accept and understand the competition, but we did not want to follow in such a proportion…

Moto-Net: Do your "motorist" customers who drive a 125 end up having a motorcycle license? ?
F. L .: We do not have recent and precise figures, but today we identify this passage to the act for 25% of them. This is encouraging because the motorist customer, whatever their age, represents a breeding ground for the motorcycle category. But his profile "switch"(customer using the motorcycle as a mode of transport mainly) will force us to constantly reconsider our marketing approach.

Moto-Net: What are your goals for 2006 ?
F. L .: Our 2006 objectives are in line with 2005: always and again pursue a qualitative policy in all the actions we carry out.

Moto-Net: How will you achieve these goals ?
F. L .: I am not going to reveal to you all the maps of our strategy here, but I would like to point out that the overall context of the motorcycle activity in France is quite difficult. I remind you that the problems of pollution and road safety are more present than ever. Manufacturers need to seriously consider these two issues, because the future of the two-wheeler is at stake! For example, Honda is a signatory of the European Road Safety Charter and as such, we are committed to equipping our models as much as possible with ABS technology (13 motorcycles and scooters today). In terms of training, in the coming months we will be marketing a driving simulator, the Honda Riding Trainer, to learn to ride a motorcycle in maximum safety conditions. We are going to engage with the leader in training in France, the French Driving Schools, and their president Gerard Acourt. Finally, in terms of the environment, eight models in our range are now equipped with the Euro-3 standard while our SH125i has fuel consumption of less than 3 l / 100 km.

Moto-Net: Is being first in 2007 still your goal (read)? How do you plan to achieve this ?
F. L .: As I indicated to you above, and beyond the target n ° 1 position, two main axes guide our actions: the network where we want to further improve quality and sustainability, and the products where we now have the hand to work on specifications with a more "French" profile.

Moto-Net: Exactly, don’t you suffer from a lack of novelties in large cubes ?
F. L .: I do not share your opinion! As a large generalist manufacturer, we have a very wide range of offerings: more than 22 models, that’s considerable! For the 2006 novelties, four major models are being launched on the market. These are the CBR1000RR, the CBF1000, the Deauville 700, and the Silver Wing 400. It is no small feat, they are very high quality motorcycles that deserve the consideration we owe them. !

Moto-Net: Are you satisfied with your network ?
F. L .: Yes, the Honda network is generally strong and structured. But it is now awaiting expansion and momentum from the manufacturer. The dealers understood that quality could only be achieved through an exclusive policy. Our criteria cannot be mixed with other brands. We register dealers’ websites every week with a communication charter in communion with our site Corporate.

Moto-Net: How do you plan to stay ahead of Kawasaki with its Z750 and Er-6 ?
F. L .: Our engineers are working on the renewal of the Hornet 600 and we are sure it will shake up the rankings! We are therefore very optimistic. In closing, I would like to send my best wishes for 2006 to the Moto-Net team and their internet users, because I must tell you that I love motorcycles as much as the internet! I am comfortable with both of these topics. Good road !

Interview by Matthieu BRETILLE

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