The purpose of this paper is to forecast the market strategy of Honda Motorcycles, mainly to their CBR600RR product line, in order to maximize profit while continuing to produce quality products in the United States of America. The following economic measures will be utilized in order to determine the proper pricing trend that the company will need to adhere in order to fulfill the aforementioned goals: Unemployment rate, inflation rate, Gross Domestic Product, retail sales, and business investment. In addition to the economic measures, this paper will provide information on how the competition is fairing and specify other factors that can increase or decrease the market share of Honda within this market structure.
II.Unemployment Rate and Retail SalesUnemployment rate was chosen as one of the economic measures in order to forecast the proper market strategy for this product line because it measures the buying power of the community. ÃÂUnemployment is a measure of those people who are actively seeking work but cannot find a job which matches their qualificationsÃÂ By reducing unemployment; more goods are produced with the same amount of resources and the current state of technologyÃÂ (Kaplan, 2002).
The more employed people there are the more money the community can spend. Measuring the amount of money that can be spent can determine the type of market strategy of a company in order to maximize their profit.
Today, American Honda Motor Company employs more than 29,000 people, and as stated on Honda corporate home page (2004), ÃÂmore than 100,000 additional workers are employed at authorized Honda automobile, motorcycle and power-equipment dealerships in the United States. Tens of thousands of additional Americans are employed by more than 580 U.S. suppliers from which Honda purchases parts and materialsÃÂ (para. 1).
There are huge employment benefits that this foreign organization gets to the...