Soichiro
Honda was the son of a blacksmith.
When he was three years old, his father gave him a pair of
pliers.
It remained his favorite possession. He became an auto mechanic
and by the time he was 21 had opened a garage where he became
known as the man who could fix anything.
Honda was not only a fixer,
he was also a creator.
He put an old airplane engine into an auto chassis
and had a racing car that nobody could beat. He designed his
own piston
rings and by World War II had developed the finest piston
rings in Japan. Near the end of the war, a bomb destroyed
his factory. He was then 41, with almost all his money gone.
Honda began
looking for other ventures. He purchased 500 small war-surplus
gasoline engines that had been used to power communications
equipment. He mounted
these on standard bicycles. While crude
and difficult to start, they sold rapidly in a country with
little transportation. After the engines were gone, Honda
designed and built his own engine, and later also began producing
frames and wheels. By 1949 his plant was manufacturing all
the basic components
and was assembling
Honda motorcycles. In 1950 Honda produced 3,600 motorcycles.
In 1959, Soichiro Honda decided to invade the American motorcycle
market.
Honda's introduction of
the lightweight motorcycle in the United States did not have
a very auspicious
beginning: Only 167 units were sold during the first year.
Motorcycle experts laughed at the puny
Japanese machines. But such derision
and skepticism was to change quickly. In 1960 sales were 22
100 units, increasing in only five years to 270,000 units
in 1965. By 1965 Honda had 80 percent of the expanding U.S.
market.
Soichiro Honda's philosophy
has been widely stated:
If
you turn
out a superior
product, it will be patronized
by the public. Our policy is not simply to turn out a product
because there is demand, but to turn out a superior product
and create a demand. (Journal of Commerce 1965, p. 23)
Honda wanted to promote
the idea that riding a motorcycle is fun. A basic theme
of the advertising in the early 1960s was "Holidays and
Honda days," and "Go happy, go Honda." To promote
the theme Honda had to buck
the negative perceptions
of motorcyclists
as the black-leather
jacketed characters
widely publicized
in a continuing negative press. Most Americans had never ridden
on or driven a motorcycle, and the negative image of motorcyclists
stood
in the way of Honda, who wanted to attract a large
new market.
Social acceptance was
finally achieved by heavy promotion
of the theme, "You meet the nicest people on a Honda."
One ad read:
You
meet the nicest people on a Honda. It's largely a question
of personality. A Honda is easygoing,
dependable.
Makes few demands. Prices start at around $215. And it runs
all day on a nickel's worth of gasoline. That's the kind of
friend to have. Frugal.
How about one in your family? World's biggest seller.
Despite the quiet tone
of this ad, it puts
over the Honda story through words like "nice,"
"easygoing," "friend," "family,"
and "frugal."
Honda was even careful
to shy
away from words that had a negative connotation.
For example, headgears
were not called "crash helmets,"
which conveyed something negative and rather fearful, but
were called "safetywear." And the word "motorcycle"
was never used in an advertisement because it was still thought
to have a negative image; instead the Hondas were described
as "two-wheeled motoring sport."
Honda invaded the U.S.
market with lightweight
bikes that were as small as 50 cc., that could go miles on
a thimbleful
of gasoline, and that could be purchased for less than $300
when most of the other motorcycles cost $1500 and more. Furthermore,
a customer had six snappy
colors to choose from in three different models, at a time
when most other motorcycle makers offered no more than two
or three models and color choices. The little Hondas could
go 55 miles per hour for 180 miles on 30 cents worth of regular
gas. And the product quality was impressive. A top executive
of a British motorcycle firm examined a Honda machine in 1961
and made a widely quoted
statement: "When we stripped
the machine, frankly,
it was so good it frightened us. It was made like a watch,
and it wasn't a copy of anything."
Practically everything
that Honda did during the 1960s escaped criticism. All the
elements of the strategy seemed to mesh
beautifully. There were a few servicing problems, during a
period of the most rapid growth, but these were quickly identified
and corrected.
Honda was the precursor
or trailblazer
for the Japanese cars that were soon to flood the U.S. market,
capitalizing
on a growing public image of quality and economy.
(805 words)
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