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Honda Civic GX

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									Product



   Honda Civic GX is the only purpose built natural gas vehicle (NGV) which is

commercially available in few states of US. It first appeared in 1998 as a factory

modified car that was designed to run exclusively on CNG. It looks and design of the car

is stunning and it drives just like any Honda Civic LX with the exception of gasoline. It

was rated as the cleanest burning internal combustion engine in the world in 2001 by the

US Environmental Protection Agency (EPA).


It was originally introduced with 1.6lt I4 engine but with the passage of time fuel tank

was re-designed and finally in model year 2006, 1.8 liter inline four-cylinder engine was

introduced in the Civic product line. Civic GX 2010’s acceleration is significantly less

than 2010 LX model due to both lower power (113hp vs. 140hp) and heavier weight

(2910 lbs vs 2652 lbs).


Makers of Honda Civic GX claims estimate of 225-250 miles from a full CNG tank, but

the independents tests have found lower ranges at 180-200 miles or about 300km. The

estimated fuel cost for this vehicle to drive 25 miles for a combination of city and

highway driving is $1.47 using CNG. Home refuling option is available with the

installation of Phill Home Refueling Appliance.


Price


   Honda Civic GX is a breath of fresh air in the crowded compact class. Honda Civic

GX is the most futuristic compact car on the market. Honda cars are priced as premium
product than the other cars in the same segment. Premium pricing strategy is adopted to

keep the price of a product and/or service high from its counterparts in order to boost the

favorable perceptions among the consumers, based on price only (Gittings, 2002).


It targets the class-sensitive people who need an outstanding car in the segment with

respect to design, comfort, quality and innovation and its main emphasis is on the style,

performance and fuel economy.


Honda Motor asserts long-term relationship with a reliable pricing strategy to achieve

global competitiveness (Honda Motors, 2004).


Honda Civic GX is selling at cringingly high price but it is 105 more fuel efficient than

any other car (Carpenter, 2011). Honda Civic GX is priced at $25,490 (Honda Civic GX)

which is equal to 93,629.87 AED.


Place


   Honda was first introduced by Al-Futtaim group in 1970’s in UAE, since then it has

held strong market position and has captured large piece of pie in United Arab Emirates

automobile markets. Under the management of Al-Futtaim group, Honda’s market

penetration has grown considerably in UAE. Honda has given sole distributing rights to

Trading Enterprises, a division of Al-Futtaim group, which maintains a nationwide

network of showrooms and workshops right across the Emirates.



Trading Enterprises has a strong network of sales and after sales services across the

country to support the nationwide customers of the Honda Products.
All the activities related to the sale of Products, the spare parts and after sale services are

actively linked to Trading Enterprises online real-time computer systems which use more

than 175 terminals to facilitate the end users, the Trading Enterprises team constitutes

Over 450 employees of 16 varying nationalities. Effective and efficient Customer

retention-ship has been the core of Trading Enterprises’ business strategy and growth

over the years with the increased level of market penetration and market share in the

UAE markets.



Honda Motors is following selective distribution channel strategy to distribute its

products in United Arab Emirates (Honda Motors, 2011).




Promotion



   Honda has maintained its brand equity by offering quality and innovation. It never

followed aggressive promotional campaigns to leverage its sales but the company pursues

to maintain its brand power by offering excellent customer services to its customers.


Honda Civic GX is promoted as an environment friendly car which consumes green fuel

only to leave the environment free from smog. Honda is the largest seller in the segment

and Honda GX is ranked as the greenest car of 2011 (ACEEE, 2011).


Honda has always been very precise and careful when considering their ad campaigns. It

mainly uses TVCs, and print media as direct tools for promoting its products in the
markets. The ads always project their brand image as a reliable brand which follows

advanced technology for the manufacturing of its eco-friendly cars.


Honda is Promoting GX against energy saving strategy which employs best available

technology for the reduction of air pollution and the petroleum consumption (Honda

motors, 2006).


Honda Company is engaged in the launch of various regional and national level

promotions and advertising campaigns to raise the awareness among the people about its

products and to sell more of its vehicles (Indy Racing League, 2003).


Print media is another most important source effectively utilized by Honda motors to

promote and advertise their products in the markets. The element of surprise is there

each time when the ads are published in the magazines and news papers.
References


Carpenter, S, (2011). 2012 Honda Civic is a model of extreme sensibility, Retrieved on
May 21, 2011 from http://www.latimes.com/business/autos/la-fi-autos-honda-civic-
review-20110519,0,3317154.story


Christine, G & Scott, G, (2008). Natural Gas Vehicles (NGVs) Available, Retrieved on
May 21, 2011 from http://www.About.com/Hybrid_Cars&_Fuels.
Consumer Reports, (2008). Retrieved on May 21, 2011 from
http://news.consumerreports.org/cars/2008/02/honda-civic-gx.html
Gittings, Christopher, (2002). The Advertising Handbook. New York: Routledge. ISBN
0415243912.
Honda Civic GX Specifications, Retrieved on May 21, 2011 from
http://automobiles.honda.com/civic-gx/specifications.aspx
Honda Civic LX Specifications, Retrieved on May 21, 2011
http://automobiles.honda.com/civic-coupe/specifications.aspx

Honda Motors UAE, Retrieved on May 21, 2011 from
http://world.honda.com/group/UnitedArabEmirates/index.html

Kelly, P. (2003). Honda Promotional Activities Press Release, Retrieved on May 22,
2011 from http://www.trackforum.com/forums/showthread.php?29049-Honda-
Promotional-Activities-Press-Release

Lombardi, C. (2011). Honda Civic GX tops green list again, Retrieved on May 21, 2011
from http://news.cnet.com/8301-11128_3-20032232-54.html

Sixth Biannual Report on the early action compact for Northeast Texas, (2005). Retrieved
on May 21, 2011 from
http://www.epa.gov/ttnnaaqs/ozone/eac/pr051231_eac_tx_northeast.pdf, p.5.

Reed, P. (2007). Long-Term Test: 2007 Honda Civic GX, retrieved on May 21, 2011
from http://www.insideline.com/honda/civic/2007/long-term-test-2007-honda-civic-
gx.html


Universal Currency Convertor, www.xe.com Retrieved on May 21, 2011 from
http://www.xe.com/ucc/convert/?Amount=25490&From=USD&To=AED

								
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