History > Challenge > Launching the Honda 1300 (1968)


Retailer Expectations: Customer Response

<< 1. Let's develop a World-Class Car!
<< 2. The New H1300-Debut of a World-Class Super Sedan
<< 3. Unending Obsession for the Air-Cooled Engine
<< 4. Praised for Its Superior Engineering
<< 5. Continuous Design Changes and Reverse Operation of the Line
<< 6. The Genesis of Auto Production Technology
<< 7. Retailer Expectations: Customer Response
<< 8. The Switch to Water Cooling: A Meeting of Research Engineers in Atami
<< 9. The Lesson of the H1300: Establishing a System for Product Development
 


Honda's automobile business was still struggling to find its way. Therefore, logically, many dealers had high hopes that they would be able to sell this "new car," which could not be obtained elsewhere.

"We believed we'd finally be able to sell a real car," said Hiromitsu Mukai, then the president of Mukai Automobile. "In fact, we had many customers who wanted us to sell regular cars. So, when I first saw the car I thought it would be a hit because its styling was far better than those of competitors."

Confident that they would soon have an extremely viable new product, Honda dealers used direct-mail advertising to contact potential users in the high-income group, such as business owners and doctors, who might be interested in upgrading their mini automobile or simply buying a new car. They were also quite active in product promotions. For example, they rented the entire Suzuka Circuit and invited their customers to the car's full-scale launch.

Despite such enthusiasm among dealers, though, the market reaction to the new car was severe.

"Looking back at it now, it would have been an enormous task to appeal to the mass market with a DDAC power plant," Mukai said. "Honda's obsession with perfection in engineering necessitated certain compromises in other areas, such as the heavy front end and uneven tire wear, which made it difficult for the sales side to promote the product to the public. The market simply was not ready for the car. The 99 series (sports sedan), however, was an excellent machine for the enthusiast. I know, because I used to drive one in rallies."

The unexpected irony is that complaints from the H1300 owners provided valuable lessons with which the mechanics could enhance their skills. They learned to identify the advantages and disadvantages of Honda models as compared to those of the competition, as seen through their customers' eyes.

In those days, Executive Vice-President Fujisawa was encouraging his dealers to develop original marketing strategies instead of simply conforming to directions provided by the manufacturer. In fact, he often talked of the dealers' management approaches, saying, "A company will lose its momentum once it begins to skimp on its work. But improve your quality as much as possible, and quantity will follow naturally.
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