Professional Documents
Culture Documents
HONDA ATLAS CARS PAKISTAN LIMITED is a joint venture between HONDA MOTOR COMPANY LIMITED Japan, and the ATLAS GROUP OF COMPANIES, Pakistan.
The agreements signed between the two sponsors are for technical collaborations for development parts and systems for manufacture of HONDA CARS in Pakistan. Pakistani and Japanese cultures have blended exceptionally well to form a professional team of Institute of Business Administration 1
dedicated specialist.
The company was incorporated on November --, 1992 and joint venture agreement was signed on August ---, 1993. The ground breaking ceremony was held on April 17, 1993 and within a record time of 11 months, construction and erection of machinery was completed. The first car rolled off the assembly line on May 26, 1994. Official inauguration was done by President of Pakistan, Sardar Farooq Ahmad Khan Leghari. Mr.Kawamoto, President of Honda Motor Company Limited Japan was also present to grace the occasion. The company is listed on Karachi, Lahore and Islamabad Stock Exchanges.
On July 14, 1994, car bookings started at six dealerships in Karachi, Lahore, and Islamabad
Since then the Dealerships Network has expanded and now the company has sixteen 3S (Sales, Service and Spare Parts) and thirty 2S (Service and Spare Parts) Pit shops network in all major cities of Pakistan.
Since the commencement of production in 1994 till March31, 2005, the company has produced and sold over 77,500 cars.
All dealerships are constructed in accordance with the standards defined by HONDA World over. Percentage of local parts conforms to the government's policy. Local vendors are continuously patronized to develop parts locally. The quality of local parts is thoroughly checked to meet stringent international standards. HONDA always strives to give outstanding service to their valued customers. In addition to providing regular service to customers, the company also regularly conducts Service
Campaigns, to facilitate customer's need for service. This has given customers absolute confidence in HONDA CARS, clearly evident from the ever increasing sale volumes. It is the constant endeavor of HONDA ATLAS CARS (PAKISTAN) LIMITED to achieve No .1 Customer satisfaction. HONDA ATLAS CARS (PAKISTAN) LIMITED is committed to meet customer expectations, and to provide good value for money. In 1996 the full model
change of HONDA CIVIC introduced, after just one and half year of commencement of production. Three models in Civic VTI, EXI and LXI with 1.6L and 1.5L engines were introduced in VTI and EXI models respectively. In 1997 Honda CITY 1.3L car in Et and EX models and Honda City EXI with 1.5L were launched.
VISION STATEMENT:
HONDA vision to position itself in Auto industry is stated by management as follows:
Focusing on satisfaction (customer, associates and shareholders) are dedicated with challenging spirit and flexibility, we to supplying latest generation cars with advanced tech-nology, greater fuel efficiency and competitive prices, along with friendly and efficient after sales back up, maintaing quality as core
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all activities.
We will make efforts to recycle materials and conserve and energy at every stage of our products life cycle fro research, design, production and sales, to services and disposal.
We will make every effort to minimize and find appropriate methods to dispose of waste and contaminants that are produced through the use of our products, and in every stage of life cycle of these products.
We will consider the influence that our corporate activities have on the regional environment and society, and endeavor to improve the social standing of the company.
As both a member of the company and of society, each employee will focus on the importance of making efforts to preserve human health and the global environment, and will do his or her part to ensure that the company as a whole acts responsibly.
HONDA ATLAS CARS (PAKISTAN) LIMITED, being responsible member of society considers the preservation of the global environment as a crucial concern reviewed on 30th June, 2004. Our environmental philosophy is firmly based on the following guidelines.
Recognize the impacts of the significant aspects on the environment resulting from our activities, products and services.
Formulate objectives and targets for pollution prevention, environmental impacts mitigation and resource conservation as far as technically feasible.
Operate in compliance with relevant environmental laws, regulations and other requirements that apply to our activities.
Commitment to continual improvement of the environmental performance and review of the environmental management system to ensure its suitability, adequacy and effectiveness.
QUALITY POLICY :
At HONDA we are committed to focus all are activities leading to: Manufacturing high quality products. Customer satisfaction. Service to society. Maintain market leadership.
HONDA ATLAS CARS PAKISTAN LIMITED is a quality conscious company. Thats why HONDA ATLAS CARS PAKISTAN LIMITED is the first automobile company in Pakistan who has achieved ISO 9002 certification.
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Marketing mix:
The set of marketing tools that the firm uses
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Product, Place, Promotion and Price. These components are called marketing decision variables because a marketing manager can vary the type and amount of each element. One primary goal is to create and maintain a marketing mix that satisfies consumers needs for a general product type. Marketing mix often is viewed as controllable variables because they can be changed. However, there are no limits to how much these variables can be altered. They are not totally controllable.
Product
Price
Marketing Mix
Product
Promotion
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PRODUCT:
It is a set of attributes assembled in an identifiable form.
OR
It can be defined as every want satisfying attribute a consumer receives in making an exchange, including psychological as well as physical benefits. It includes product planning, product research and development; product testing; and the service accompanying the product.
PRICE:
Price is amount of money and /or other items with utility needed to acquire a product.
OR
It is the value that one puts on the utility that one receives of goods and services. It includes price determination; pricing policies; and specific pricing strategies.
PLACE:
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It is the making available of products in quantity desired to as many customers as possible and to hold the total inventory, transportation and storage costs as low as possible. It includes selection. Coordination and evaluation of channels; transportation; warehousing; and inventory control. OR A channel of distribution comprises a set of institutions which perform all of the activities utilized to move a product and its title from production to consumption. Bucklin - Theory of Distribution Channel Structure (1966) Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer.
PROMOTION:
It is the element in an organizations marketing mix that serves to inform, persuade and remind the market of a product and/or the organization selling it, in hopes of influencing the recipients feelings, beliefs or behaviors.
OR It is used to facilitate exchanges by informing one or more groups of people about an organization and its products. Promotion includes such areas as sales management; personal selling; advertising sales promotional programs and all other forms of marketing communications.
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Product is the first element among the four elements of marketing mix that are called as 4Ps of Marketing Mix. Product is meant to meet customer needs and satisfaction. Product is actually the key element in the marketing offering. The beginning of the marketing mix is to formulate an offering in order to make the customers need satisfied.
Product is anything that can be offered to market for attention, acquisition, use or consumption that might satisfy a want or need of the person. It includes physical objects, services, person, places, organization, events, properties, information and ideas. It is said that product is much more than the physical attributes Pro
PRODUCT
TANGIBLE ATTRIBUTES
INTANGIBLE ATTRIBUTES
duct contains both tangible and intangible components, predominantly tangible products are called as goods and intangible products are called as services. Being working on HONDA ATLAS CARS we have to basically deal with a product that is luxury vehicles for the customers. Being a motor vehicle organization HONDA has established a complete brand name in the motor vehicles industry.
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PRODUCTS OFFERED BY HONDA ATLAS CARS PAK LTD CONSUMER AS WELL AS BUSINESS VEHICLES
HONDA CIVIC
HONDA CITY
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HONDA CIVIC:
HONDA CITY:
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New product strategy Development process Product mix Position strategy Product life cycle Branding strategy Product features Product parts Services Product quality Product design
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HONDA falls in 1ST category .HONDA ATLAS CARS is providing vehicles to the customer that is really new to customers & relatively different from the existing ones. The strategy of HONDA ATLAS CARS is to attract the customer with the unique characteristics of the vehicles. As the automobile industry in PAKISTAN has diversity. So the main aim of HONDA ATLAS CARS is to capture the market share by introducing the new in existing available vehicles. The core element behind their strategy is to introduce their vehicle in order to strengthen their reputation in the eyes of consumers.
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Step # 01: Generation of new idea Step # 02: Screening of idea Step # 03: concept development and testing Step # 04: Marketing strategy Step # 05: Business analysis Step # 06: product development Step # 07: test marketing Step # 08: commercialization
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1. GENERATION OF IDEA:
HONDA always thinks about something new to meet the requirement of the customers. HONDA ATLAS CARS is authorized in PAKISTAN to generate the ideas about improvement in their vehicles. On the other hand, to remain leading in automobile industry its the trend to give new features to the existing vehicles.
2. IDEA SCREENING:
All the new ideas cannot be implemented so HONDA screens the pool of ideas in order to refine them, for this purpose HONDA has some experts who analyze and guide the company to proceed.
3. BUSINEES ANALYSIS:
HONDA experts team estimates the market demand, competition, and cost of adding new feature to the vehicles.
4. TEST MARKETING:
After the analysis a survey is conducted from the target market by telling the introducing features of so that profitability of that project can be evaluated.
5. COMMERCIALIZATION:
Now the HONDA is in the position to launch a model with introducing features.
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BREADTH:
It is measured by the number of the product lines carried. The following are the product line of HONDA:
1. Honda civic 2. Honda city 3. Honda motorcycles 4. Honda generators 5. Honda boats
DEPTH:
It is expressed by the variety of sizes, colors and models offered within each product line. Attributes offered by HONDA in various product lines are:
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HONDA CIVIC:
1.COLOUR:
Colors that change your Life.
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Frost White
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2.MODELS:
Exi (MT) Exi (PT) VTi (MT) VTi (PT) VTi Oriel (MT) VTi Oriel (PT)
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3.SPECIFICATION:
The Dream Comes True HONDA CIVIC Specifications. Type ENGINE
Type
EXi
VTi
Water-cooled 4-stroke SOHC 16-valve in-line 4-cylinder Transversely Mounted PGM - FI (Programmed Fuel Injection) 75.0 X 84.5 1,493 81 (110) / 5,800 135 (13.8) / 4,500
Fuel Supply System (mm) Bore / Stroke (mm) Displacement (cubic cm) Maximum horsepower (KW (PS) / RPM) Maximum torque (N.M (KGM) / RPM)
PGM - FI + VTEC - III 75.0 X 90.0 1,590 96 (130) / 6,600 146 (14.9) / 5,000
TRANSMISSION
Manual Prosmatec Synchromesh five forward speed, one reverse 4 - speed fully automatic (Progressive Shift Management Technology)
STEERING SYSTEM
Gear Type Rack & pinion, Power assisted
DIMENSIONS
Overall length (mm) Overall width (mm) Overall height (mm) Wheel base (mm) Tread (Front / Rear) (mm) Ground clearance (mm) 4455 1720 1455 2620 1470 / 1470 170
SUSPENSION SYSTEM
Front Rear New McPherson Strut front suspension New rear double wishbone suspension
BRAKING SYSTEM
Type Electronic Brake force Distribution (EBD) 4- wheel disc brakes X 4 - wheel disc ABS (Anti-Lock Braking System) O
TIRE / WHEELS
Tire Size Wheel Size 185 / 65 R 14 (86H) 14 X 5 JJ 185 / 65 R 15 (88H) 15 X 6 JJ
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HONDA CITY:
1.COLOURS:
Colors that change your Life.
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Frost White
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Charcoal Grey
2.MODELS:
Exi Exi s Exi s (AT) Neo 1.5 VARIO
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3.SPECIFICATION:
EXi-S
VARIO
iDSI (Intelligence Dual & Sequencial Ignition) PGMF-I Programmed Fuel Injectioni 1300 10.5 57 (78) / 5,800 105 (10.8) / 3,000
TRANSMISSION
Manual Automatic Synchromesh five forward, one reverse ---Continuously Variable Transmission 6 position (CVT)
----
STEERING SYSTEM
Gear Type Rack and pinion, power assisted
DIMENSIONS
Overall length (mm) Overall width (mm) Overall height (mm) Wheel base (mm) Tread Front (mm) Tread Rear (mm) Ground clearance 4310 1690 1510 2450 1454 1445 160
SUSPENSION SYSTEM
Front / Rear Independent Strut / H-shaoe Torsion Beam
BRAKING SYSTEM
Front Rear Ventilated discs Leading / trailing shoe drums
TIRE / WHEELS
Tire Size Wheel Size 165/BO R13 13X5J
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POSITION STRATEGY:
Market positioning is arranging for a product to occupy a clear, distinctive and desirable place in the minds of the customers relative to completing products.
In this way product is defined by consumer on important attributes. The management of HONDA has planned a position that distinguishes their vehicles from their competitors ones. Its the shinning point of HONDA that after analyzing their positioning strategy they conclude that they provide maximum satisfaction to their consumers. To make good position in the automobile industry the HONDA first identifies the possible advantages about its vehicles. In order to have the competitive advantage, HONDA offer great value to choose target segments by offering more benefits and luxury accessories to justify their prices.
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1.INTRODUCTION:
During this stage, a product is launched into market in a full-scale marketing program. It is also called the pioneering stage.
2.GROWTH:
In this stage, sales and profits rise, frequently at a rapid rate. It is also called marketacceptance stage.
3.MATURITY:
During the first part of this stage, sales continue to increase, but at a decreasing rate. During the other part of this stage, marginal producers, those with high costs or no differential advantage, drop out of the market.
4.DECLINE:
In this stage, sales are decreasing because of these three reasons: A better or less expensive product is developed to meet the same need. The need of the product disappears, often because of another product development. People simply grow tired of a product.
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HONDA lies in the early stage where sales continue to increase and profits are maximum. So HONDA tries its level best to maintain this present situation.
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Branding is actually: A name, term, sign, symbol, or a design or a combination of these intended to identify the goods and services of one seller to differentiate them with the products and services of their competitors.
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BRANDING STRATEGY:
HONDA has struggled a lot to keep its brand being remain in minds of consumers. Under this regard the main strategy is to add the valuable features to vehicles to keep the brand loyalty.
BRAND PERSONNA:
Every brand of HONDA has its own branding strategy. HONDA ATLAS CARS PAKISTAN LIMITED builds brand persona for each brand. Pricing, Promotion, Distribution and future products development follow brand persona.
BRAND CIVIC
MESSAGE
DISTRACTINGLY GOOD LOOKING
PERSONA
FOR THE STYLISH, GOOD LOOKING PEOPLE FOR THE LUXURIOUS VEHICLE LOVERS
CITY
EXTREME PERFECTION
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PRODUCT FEATURE:
To get a superior market share the product must have the salient features in it. HONDA has adopted the same strategy that it has been continuously adding features to its vehicles. Let have a look vehicles offered by HONDA ATLAS CARS (PAKISTAN.) LIMITED in regard to their features
Honda Civic:
The shinning features of Honda civic would be elaborated as follows:
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INTEROR:
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CIVIC SOPHISTICATION:
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AUDIO SYSTEM:
Ten disc CD Changer with flip front stereo & remote control on all models.
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METERS:
Large innovative colored meters for easy reading.
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Every door is equipped with two steel door beams that lend solid passenger
protection in the event of a collision from either side.
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Honda's G-CON technology moderates the force of impact and helps maintain
around you and your passengers. Innovative front side frame, crumples upon impact, then bend like a joint to absorb maximum energy in a frontal collusion.
HONDA CITY:
EXTREME PERFECTION:
THE SPIRIT
Is there a better way to build a compact sedan? HONDA'S affirmative answer is the revolutionary new CITY. Through innovative engineering and leading advances like as i-DSI engine and exclusive chassis platform.
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The NEW HONDA CITY provides spaciousness & functionality. Interior styling prioritizes the driver and is emphatically sporty and personal in its appeal.
The City unites a lower floor with a usually spacious cabin and luggage area.
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SAFETY:
Aiming for the world-class safety performance. Great peace of mind in a compact body.
HONDA'S original G-Force Control technology provides all- around protection in the event of and accident. This safety technology is designed to control and absorb collision impact, maintaining the structural integrity of the passenger space.
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Through relentless crash testing at various speeds and angles, the City supplies protection that meets the worlds strict governmental safety standards.
PERFORMANCE:
i DSI Intelligence Dual & Sequential ignition
Dramatically efficient fuel economy. Greater driving range on the same amount of fuel. Plus plenty of torque whenever you need it.
HONDA'S unique new i-DSI engine uses two spark plugs per cylinder for maximum fuel efficiency. Leading friction reducing technology used in i-DSI engine provides ample power for enhanced Driving Pleasure.
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Honda City's novel transmission "Vario" allows smooth step less power transfer from the engine to the wheels to match the mood.
ENUINE PARTS
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3) You can never be sure about the genuineness of the parts you have purchased from the open market. By using Honda Genuine Parts; 1) You can increase the life of your car. 2) You can enjoy safe & satisfactory drive. 3) You can increase the resale value of the car. It is our aim to be No.1 in customer satisfaction in all three S, Sales, Service and Spare
Parts. Your help can go a long way to help achieve our goal.
For buying HONDA GENUINE ACCESSORIES please contact your nearest authorized HONDA Dealership.
Sugoi Parts Center has started on 2nd July, 2001 with the objective to provide the Genuine HONDA Spare Parts to our valuable customers.
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GENUINE PARTS
Theyre part of the whole picture.
Only Genuine HONDA Parts are made to HONDA specifications to maintain the Quality, Reliability and Performance - Making them easy choice every time. When you install Genuine HONDA Parts you are getting a HONDA WARRANTY that you won't get anywhere else.
HONDA MOTOR vehicles are equipped with many unique automotive system
which require special care to maintain their high levels of Performance and
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Lubricants specifically for your HONDA. Each of the Genuine Fluids and Lubricants is designed to perform a specific task, which is crucial to well being of
your HONDA. If it carries the HONDA Logo you can be assured of it is of superior quality.
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Price
(Pak Rupee)
Rear Bumper
99-00 2001~ 7,000 5,500
Bonnet
99-00 2001~ 9,500 11,000
Complete Trunk
99-00 2001~ 9,000 11,000
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Price
(Pak Rupee)
Air Filter
VTi 99-00 EXi 99-00 2001~ 700 450 450
Fuel Filter
99~ 1,300
Clutch Plate
99~ 2,500
Pressure Plate
99-00 EXi 2001~ VTi 2001~ 3,800 3,800 3,100
Timing Belt
99-00 2001~ 1,000 1,000
Timing Bearing
99-00 2001~ 1,200 1,600
Spark Plug
99~ 150
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Bonnet Cable
99-00 2001~ 700 300
Price
(Pak Rupee)
Rear Bumper
97-99 2000~ 6,000 5,500
Bonnet
97-99 2000~ 10,500 9,000
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*Prices are effective from Oct 1st, 2002 to onward. All Prices are inclusive of Sales Tax.
Price
(Pak Rupee)
Air Filter
97-99 2000~ 500 450
Fuel Filter
97-99 2000~ 300 1,300
Clutch Plate
97~ 3,000
Pressure Plate
97~ 3,600
Timing Belt
97~ 1,000
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Timing Bearing
99-99 2000~ 1,200 950
Spark Plug
97~ 150
Bonnet Cable
97~ 140
Bonnet Rubber
97~ 850
Antenna
97~ 2,000
SERVICE FACILITIES:
CUSTOMER SERVICE CENTERS:
All the authorized dealerships in Pakistan are a source of customer satisfaction. The after sales are supported by the immaculate service and the availability of spares at competitive prices for every car sold. To facilitate the customers for any assistance they require, we have a separate department, called Customer Relations, at the head office. This department is supported by the subsequent Customer Relations Officers at all dealerships. The purpose of Customer Relations Department and Customer Relations Officers is to enable our customers in getting any sort of help required by them.
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FREE SERVICES:
HACPL is a customer service conscious company, for which it is always looking for avenues to develop further relations with the customers who have already purchased the cars. We consider purchase of car as the beginning of relations with customers. To prolong this relationship and encourage the customers to keep on coming to the dealership, to get theirs cars maintained the HONDA way we provide three FREE CHECK-UP SERVICES to our customers. These are basically three periodic check-ups at 1,000 Km, 5,000 Km and 10,000 Km
mileage which are normally done after 1 month, 3 months and 6 months of running
the car. Other than providing service to customers another reason for this facility is to stress on the importance of periodic maintenance. Periodic maintenance is essential for every car and if this is performed regularly as per the maintenance schedule the car is trouble free and life of car increases by many years. For these free services the labor is not charged, where as the customer has to pay for only the consumable like engine oil, oil filter, etc..
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WARRANTY COVERAGE:
HONDA ATLAS CARS warrants that it will repair or replace Free of Charge any part it supplies (excluding tires, batteries and other items which are warranted separately by their respective local manufacturers) found to be defective either in materials or workmanship, or both with the exceptions indicated in the Warranty Exclusions here under, provided that the manufacturer's recommended and required preventive maintenance services and repairs are strictly followed and the vehicle is utilized under normal condition. HONDA ATLAS CARS (PAKISTAN) LTD. (HACPL) reserves the sole rights to the final decision in all warranty matters.
WARRANTY EXCLUSIONS:
The Warranty shall not be applicable in the following cases,
Any damages which result from neglect of the periodic maintenance specified by HACPL. Any damage which results from repair or maintenance operations by methods other than those specified by HACPL. Any damage which results from use of non genuine parts, or of fuel, lubricant or fluid not recommended by HACPL. Any damage which results from operation other than as specified in the Owner's Manual, whether intentionally or by mistake. Any repair or adjustment performed by persons other than Dealer, or any damage resulting there from.
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The vehicle which is not registered with the competent government authority.
FEED BACK:
HACPL believe the essence of real service is when a customer feels proud to say "I am
glad to have bought a HONDA" -- mainly because of HACPL quality service. For
customers to become impressed with us HONDA need their continuous feedback to improve him selves for product and after sales service.
PRODUCT QUALITY:
HONDA ATLAS CARS LIMITED is quality conscious company. Thats why HONDA ATLAS CARS PAKISTAN LIMITED is the first automobile company in PAKISTAN who has achieved ISO 9002 certificate.
PRODUCT DESIGN:
HONDA is a multinational company which operates in different countries. The models that are introduced in one country are exactly the same in other country. This is because the design and the technology used to make these cars are set by the Research & Development Department of HONDA JAPAN, which is the in of HONDA. Designing process is some through out in the world. In PAKISTAN only the assembling process is done 42% of the parts are manufactured locally and the remaining 52% parts are being import from JAPAN.
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The amount of money charged for a product or a service, or the sum of values that consumers exchange for benefits of having or using the product.
One of the four major elements of the marketing mix is price. Pricing is an important strategic tool because it is related to product positioning. Furthermore pricing affects other marketing mix elements such as product features, channel decisions and promotion. Pricing is highly important for an organization because it is the price which the consumers pay in the end to buy a particular product. So in order to draw money put of consumers pockets, effective pricing should be adopted.
COST-BASED PRICING:
This pricing approach suggests adding a standard mark up to the cost of the product. Price of HONDA CARS is fixed and are not negotiable, as they have been devised on certain rules of cost based pricing by HONDA INTERNATIONAL and HONDA PAKISTAN is supposed to adhere to those prices strictly.
HONDA offers its variants in different prices. Prices tend to change with the change in accessories supplemented with any particular model of HONDA CAR. Prices are dependent on the mode of purchase as well. Outright purchase and leasing have their respective effect on prices set by HONDA. Prices thus are characterized as:
LEASING PRICES:
We can define leasing as,
Leasing is a financial instrument enabling the utilization of a given fixed asset without possessing its ownership.
Major parties and some brief definitions in leasing are as follows;
LESSEE:
The party that purchases the usage rights of the equipment in leasing transactions against the rentals determined in advance with the contract, that is the buyer of the owner.
LESSOR:
The party that possesses the legal ownership of the equipment subject to leasing and that transfers the usage of the equipment to the Lessee against the rentals determined in advance with a contract that is the intermediary bank involved.
SUPPLIER:
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Manufacturer or marketing company providing the equipment subject to the leasing contract that is HONDA MOTORS.
DETERMINATION OF PRICE:
Price is the only element that produces revenue, all other channels present cost. A companys pricing decision is effective by both internal and external factors.
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PRICING METHODS:
PRICING APPROACH
Cost Based
Buyer Based
Competition Based
Mark- up Pricing
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PRICING OBJECTIVES:
HONDAS pricing objectives are identified in order to determine the most favorable pricing. Common objectives include the following:
PRICING OBJECTIVES
PROFIR ORIENTED
SALES ORIENTED
STATUS-QUO ORIENTED
TARGET RETURN
MAXIM. PROFITS
STABILIZE SALES
MEET COMPETITION
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Current profit maximization- seeks to maximize current profit, taking into account
revenues and costs. It seeks to achieve maximum profits and notable ratio of return on the capital employed.
Maximize Market Share- HONDA wants to maximize its market share in auto industry
and that is the goal followed by it while setting the price.
Changes in Yen Rate Changes in prices by Toyota Increase or decrease in demand- leading to unstable prices in the market
The parts of the cars are brought from JAPAN to assemble cars here in PAKISTAN so the change in rate of Yen affects the cost of these parts and thus the price of the car tends to react to that.
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being sold in the market on premium of more than Rs.100000 to Rs.2000000 above the original company price.
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PLACE:
A distribution channel is the set of people and firms involved in the transfer of title from producer to ultimate consumer or business user. While placing the product the management has to face the many critic marketing decisions. A companys channel decision directly effects every other marketing decision. For the development of the organization, proper marketing channel is very necessary.
OR
Place is the making available of products in quantity desired to as many customers as possible and to hold the total inventory, transportation and storage costs as low as possible. It includes selection. Coordination and evaluation of channels; transportation; warehousing; and inventory control.HONDA sees its distribution system as a key resource. Since it takes years to build, and it is not easy to change. HONDAS corporate philosophy revolves around customer satisfaction which is symbolized in the dealers concept:
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CHANNELS:
Honda uses one level channel for selling its cars. This is done mainly through the dealers that are of two types:
2-S 3-S
2-S Dealers:
These kinds of dealers provide only service and spare parts of HONDA.
3-S Dealers:
These dealers in addition to services and spare parts also offer cars for sale. Their are 18 authorized 3-S dealers all over Pakistan.
LOCATION:
Generally, where 3-S dealers are located 2-S dealers are not designated for that area .It is only in Lahore that there are both kind of dealers .The 3-S dealer is located in Garden Town where as the2-S dealer is located in Defense Housing Society. The reason for 2-S dealers arises because in certain smaller cities like Multan, Faisalabad, Peshawar, Larkana, Sargodha etc there are no centers providing such mechanical and technical services. So this has kind of negative effect on the sales of the company.
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FINAL CONSUMER
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CHANNEL FLOWS:
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Channels Flows Physical flow Title flow Payment flow Information flow Promotion flow
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DEALERSHIP NETWORK:
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Honda Atlas Cars (Pakistan) Limited has Dealership Network covering all of Pakistan, and Dealership are equipped with all the facilities a modern dealership should have. The facilities include Sale, Service and Spare parts.
Lahore
Honda Fort (32 Queens Road) Honda Fort Lounge (169Y, Commercial Area, Defence)
Mirpur A. K.
Honda Empire (Mian Muhammed Road, Quaid-e-Azam Chowk, Mirpur Azad Kashmir)
Honda Breeze (63, Abdali Road) Honda North (Main University Road) Honda Falcon (112, Azia Shaheed Road)
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TRANSPORTATION:
The company does not own trucks so it signs contracts with transport companies for the delivery of cars. Normally the cars are driven to Lahore but sometimes they are transported through trailers. The company charges different prices for the delivery of its cars keeping in view the distance of the place from the factory. The rate list is as follows:
DESTINATIO N
LAHORE FAISALABAD GUJRAWALA SIALKOT ISLAMABAD PESHAWAR MULTAN MIRPUR (AZAD KASHMIR) KARACHI HYDERABAD
Institute of Business Administration
FREIGHT
1500 3200 3200 3200 4500 5500 4200 4500
6000 5500
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INVENTORY:
The level of inventory at any outlet is up to the dealer and it is he, who has to decide about the number of cars present in the showroom. This decision is based on a number of factors such as sales, location and distance from the factory. Normally there are 15-20 cars always present in the stock of the dealer.
WAREHOUSES:
The company itself doesnt own any warehouses; the cars are kept in the factory. It is the dealers who own warehouses and they have to decide the number of warehouses required based on the inventory of the stock.
MARKET SHARE:
Market share means the number of shares a company has in its market as compared to its competitors. HONDA ATLAS CARS PAKISTAN LIMITED covers a large number of shares in Pakistani market.
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This market share is for the cars, which are above 1300 cc. But if we consider only the petrol cars, then according to the recent survey, the share of HONDA is greater than 80%. Others company like SUZUKI, NISSAN, HYUNDAI and KIA they constitute the 20% of the market share. But they are below 1300 cc.
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Lahore is the second best selling spot for the HONDA. Low share in other cities like Multan, Faislabad is because low class resides in these cities. The target market of HONDA is upper class, thats why the share is high in big cities and low in small cities.
COMPETITORS:
HONDA is currently facing the three biggest competitors in its class. They compete with HONDA because of their successful product in the market before the commencement of HONDA ATLAS in PAKISTAN. These three main competitors are
1.TOYATA:
TOYOTA is considered to be the main competitor of HONDA because it is only one company, which has enough market shares that will directly influence the share of HONDA. This is because of the fact that TOYOTA has been manufacturing cars much before HONDA in PAKISTAN and the cars they have been manufacturing since 1993 are much environmental friendly than any other car manufactured in PAKISTAN, before. Firstly TOYOTA introduced GLi in both transmission categories i.e. manual and automatic. This category car having 1600 horse power is the direct competitor of HONDA CIVIC not only in the technique but also in luxury that they provide and the other facilities and add-ons. In 1.3 liter cars TOYOTA can be considered as the market leader before, as it is producing three different models in this category i.e. GL, XE and XEG. But now with the introduction
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of new HONDA CITY 2000, TOYOTA is no longer a leader in the market because of the Luxury and style provided by the HONDA CITY 2000.
2.NISSAN:
NISSAN is not a direct competitor of HONDA because this company produces 1.4 liter and 2.0 liter fuel & Diesel cars respectively. But because of the big giants like TOYOTA and HONDA in the market this company cannot compete in the market and loses its share. But now few months back they launched their new models in the market at low prices as compared to HONDA and TOYOTA.
3.SUZUKI:
SUZUKI introduced its 1.6-liter car a few years back with the name of Baleno. They introduced two models GLi and GXi in the market having fuel injection system in the category of 1.3 liter in competition with HONDA CITY. But HONDA has no fear of them because of the fact that, HONDA is already the market leader in 1.6-liter class & 1.3 liter class. According to the recent survey the graph of Baleno 1.6 & 1.3 is continuously declining because of their competitors like TOYOTA and HONDA.
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Promotion is one of the four Ps of marketing mix. Simply stated, promotion is intended to make a product more attractive to the prospective buyer. A company uses promotion to provide information for the decision makers buying decision process, to assist in differentiating its products, and to persuade potential buyers. From a marketers perspective, promotion serves three essential roles
It informs Persuade and Remind prospective buyers about the company and its products. Promotion is key ingredient in the product success consists of a diverse collection of incentive tools, mostly short terms, designed to stimulate quicker and greater purchase of products or services by consumer or the trade. Through promotional activities, consumer gets all available products in the market.
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PROMOTION MIX:
An effective promotional mix is the critical part of virtually all marketing strategies. Designing an effective promotional involves a number of strategic decisions as target audience, objectives of companys promotion effort, nature of the product, stages in the product lifecycle and amount of money available for promotion. So, the promotion mix is the organizations combination of the following elements which help the company to achieve its marketing objectives.
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STRATEGY IMPLEMENTATION:
HONDA MOTOR COMPANY LIMITED JAPAN
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PROMOTION METHODS:
In HONDA, all methods as sales promotion, advertising, public relations, and direct marketing are used to influence the customer choices.
PROMOTION OBJECTIVES:
The promotional efforts of the HONDA ATLAS CARS are aimed to induce the customer to buy the product. At first the awareness in the shape of the knowledge about the product features and facilities is to be provided. Then the customer liking is developed. Preference is created by distinguishing among other brands through the astonishing features of the automobiles. Resultantly, strong conviction leads the buyer to purchase the product.
PROMOTION BUDGET:
Establishing promotional budget is extremely challenging job. In HONDA ATLAS CARS the promotional budget is determined as 25-30% of sales. Dealers or Distributors are also determined their own promotional budgets (particularly at their outlets) for the promotion of the company, its product and the outlet as well.
REGULARIZED PROMOTION:
The HONDA ATLAS CARS is doing its promotional activities with the help of 18 authorized dealers all over the country. The dealers are independently working in their own set ups but they are following the companys policies and strategies.
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A strategic market sales force composed of technical, applications and quality engineers and service personnel assigned to major accounts.
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A distributors sales force calling on and coaching HONDA distributors. An inside force doing telemarketing and taking orders via phone and fax.
Sales Executive
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SALES PROMOTION:
Sales promotion is considered as
Incentive to buy
And can be described as
Product warranties Point of purchase displays and demonstrations Adequacy of repair facility
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Customer service follow ups Service packages for customers Events related to customer prizes Free check-up campaigns on regular basis
The warranty is normally given for one year or on 20,000 kilometers drive, which comes earlier. This warranty is based on the parts replacement. The demonstrations are also given to the customer in order to aware about the products exclusive features.
ADVERTISING:
Advertising means
Reasons to buy
And can be described as:
Advertising is non personal presentation and promotion of ideas, goods or services by an identified sponsor.
The marketing department of the distributors holds HONDAS advertising. Every distributor is responsible for its own advertising program.Advertising plays a very significant role in the promotion of new product. Its usually more attractive then the other promotional campaigns. There are different forms of advertisements that a company performs according to the nature of the target market. The purpose of advertising is to introduce the customer by the new product and to give the information about the existing product.
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FEATURES OF ADVERTISING:
The features of HONDAS advertising are as follows:
2. Pervasiveness (permits the sellers to repeat a message many times) 3. Amplified expressions (advertising provides opportunities for dramatizing the
company and its products through the artful use of print, sound and color.)
4. Impersonality (the audience does not feel obligated to pay attention or respond to
advertising.)
FIVE Ms OF ADVERTISING:
The marketing force at HONDA make the five major decisions about the advertising program which they want to develop and execute in order to make familiar the customer with the companys product.These major five decisions are called as five Ms of advertising.
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MISSION:
The advertising mission normally comprises of the sales and advertising objectives.
An advertising goal is a specific communication task and achievement level to be accomplished with the specific audience in a specific period of time.
Focusing on the satisfaction (customers, associates and the shareholders) with challenging spirit and flexibility, we are dedicated to supplying latest generation cars with advanced technology, greater fuel efficiency and competitive prices, along with friendly and efficient after sales back up, maintaining quality as core of all activities.
This is based upon the companys policy that whether the company wants to inform, persuade, remind or reinforce the customer about its products.
MONEY:
The authorized dealers of HONDA spend almost 10% of their sales for the advertising of their outlets, product of the company and the company itself.
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MESSAGE:
Another important aspect of advertising is message communication for which an advertising agency puts all its efforts. The procedure of message communication is completed through several different steps.
1. Message generation 2. Message evaluation and selection 3. Message execution 4. Social responsibility review
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EFFECTIVE POSITIONING
Rational Positioning
Emotional Positioning
These both two methods of positioning are used for executing messages by the ads agency, which works for the HONDA ATLAS CARS.
MEDIA SELECTION:
The media planner in the company uses both the electronic and print Medias in order to communicate the promotion message to the prospects. No yellow journalism is there. According to the different surveys this method has quite good effects on the sales of HONDA. Now-a-days company uses all these Medias for the promotional purposes by time to time.
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The following Medias are covered under the pre-described two categories:
TYPES OF MEDIA
Electronic Media
Print Media
COMMUNICATION MEDIUM:
The media preferred by HONDA is news papers especially the English one. This is due to the fact that mostly the buyers are not PTV watchers .It does not advertise on satellite, as the advertising cost is much too high, they would prefer to cut down the prices instead of spending millions of rupees on ads. At one time they used to advertise on prime time. The timings were 7:40 pm & 9:40 pm because maximum people are watching television at these times.
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1. What is the main message you get from this ad? 2. What do you think they want you to know, believe or do? 3. What works well in the ad and what works poorly?
4. How does the ad make you feel?
5. How likely is it that this ad will influence you to undertake the implied action?
Or
REALIZING YOUR DREAMS
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PUBLIC RELATIONS:
Public relation involves
A variety of programs designed to promote or protect a companys image or its individual products.
At HONDA the PR department monitors the attitude of the organizations public relations and distributes information to build good will. The PR departments spend time counseling top management to adopt positive programs and to eliminate questionable practices so that negative publicity does not arise in the first place. The PR department established by the distributors receives complaints from the customers and then these complaints are transferred to the HAC head office so that suitable actions are taken by the company in order to resolve customers problems. HONDA ATLAS is engaged in different programs to promote the sales through public relations. For public relations they participate in different types of programs to increase the interest of public and to introduce their now product via these promotional campaigns.
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TOOLS IN PR
Newsletters
Annual Report
In this regard they are also following the strategies of Relationship Marketing. It can be described as:
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DIRECT MARKETING:
Direct marketing is the consumer direct channel to reach and deliver goods and services to consumer without using marketing middlemen. These channels include direct mail, websites, catalogs, interactive TV and mobile devices. The HONDA ATLAS CARS is using all the astonishing elements of this fastest growing avenue of consumer servicing. The company seeks the measurable response; typically a consumers order that why this is some times called direct-order marketing.
1. Nonpublic (the message is normally addressed to a specific person.) 2. Customized (the message can be prepared to appeal to the addressed individual) 3. Up-to-date (a message can be prepared very quickly) 4. Interactive (the message can be changed depending on the persons response)
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DIRECT MAIL:
The company involves in direct mail marketing i-e sending an offer, announcement, reminder or other item to the consumer through fax mail, e-mails, and voice mail.
WEBSITES:
The websites of the company are also used in enhancing the customers view about the product, as the complete information of features and facilities is available on the Internet. One of the websites is as follows: www.honda.com.pk It is regularly updated and maintained according to the specification.
CATALOG MARKETING:
In this regard the company sends full line product catalogs usually in print form but also sometimes as CDs, videos or online.
EVENTS:
Different events are arranged from time to time for the promotion of sales of HONDA CARS. Like in FEBRUARY 2003 a basant festival had been arranged on the rooftop of PEARL CONTINENTAL, where they provided all the beverages, kites, food etc. It was such a success that in the month of MAY it was booked by the counterparts of HONDA for the next basant. A rally from Islamabad to Bhurban was also arranged by HONDA in which any car of 1300cc and above (only HONDA) was allowed to participate. The idea behind this rally was to promote the safety of motorists. The theme of the rally was wear seat belts---your
family loves you. Fashion shows are also held from time to time for the promotion of
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HONDA. All these are the Model Launch Event and the Brand Building
Event.
ANNUAL SURVEYS:
HONDA ATLAS CARS PAKISTAN LIMITED arranges the annual surveys in which different activities are done:
1. Customer Satisfaction 2. Market Share 3. Customer Choice a. Reading Habits b. TV Watching Habits 4. Brand Survey 5. Social Group 6. Education Level 7. Market Trend
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2004 Rupees
LONG-TERM Liabilities:
Staff Retirement Benefits -
CURRENT LIABILITIES:
Finances under mark-up arrangements-secured Creditors, accrued and other Liabilities Dividends 9,693,653,000 4,716,000 9,698,369,000 4,884,388,000 4,037,000 4,888,425,000
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2004 Rupees
492,329,000 33,656,000 525,985,000 73,685,000 599,670,000 750,000 25,229,000 44,604,000 70,583,000 19,546,000 1,708,539,000 1,085,913,000 3,514,909,000 6,328,907,000
CURRENT ASSETS:
Stores and Spares Stock-in-trade Trade Debts Loans, Advances, Deposits, Prepayments and other Receivables Cash and Bank Balances
11,792,783,00 0
6,999,160,000
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2005 Rupees
Sales Cost of Goods Sold 16,587,217,000 16,304,182,000 199,495,000 197,190,000 280,730,000 16,145,000 264,585,000 5,956,000
2004 Rupees
9,358,369,000 8,602,391,000 160,968,000 73,083,000 668,093,000 45,612,000 622,481,000 2,288,000
Gross Profit
Administration and Selling expenses
Operating Profit
Other Operating Income Other Operating Expense Finance Cost
258,629,000 620,193,000
96,450,000 3.86 211,510,000 9.73
162,179,000 408,683,000
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2004 Rupees
3,468,976,00 2,638,566,000 0
(269,233,000) (3,282,000) 8,213,000 84,337,000 (243,361,000) (22,684,000) 1,921,000 47,323,000
(932,077,000) (240,473,000)
(177,821,000) (146,160,000)
Net cash (Outflow) from financing activities Net Increase in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year
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SWOT ANALYSIS:
SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. It is applicable to either the corporate level or the business unit level and frequently appears in marketing plans. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. The SWOT framework was described in the late 1960s by Edmund P. Learned, C. Roland Christiansen and William D. Guth in business policy. The general electric growth council used this form of analysis in the 1980s. Because it concentrates on the issues that potentially have the most impact, the SWOT analysis is useful when a limited amount is available to address a complex strategic situation.
STRENGTHS:
The image of the company is well established. HONDA is offering comfort, power and style with its vehicle. It delivers the genuine parts with the 6 month unique warranty. It uses latest technology and luxurious interior in the vehicles.
WEAKNESESS:
The booking procedure is too long, as it takes done 6 months to get the orders delivered. If the cars are required at a short notice then the distributors or the intermediaries involved take a considerable amount of premium on the actual price.
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OPPORTUNITIES:
The HONDA Company can expand the network of its distributors all over Pakistan. The company can enhanced its image at international level through the provision of more sophisticated facilities in their product. Through the annual dinners and other ceremonies arranged by the company the distributors are able to interact their more and more prospective customers.
THREATS:
A threat is in the form of premium which the distributor are taking from the customers and thus disturbing credibility of Honda about stability of prices. The economic environment is characterized by more uncertainty and it respond more to the international scenarios.
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PEST ANALYSIS:
A Pest analysis is an analysis of the external macro-environment that affects all firms.
P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment.
Such external factors usually are beyond the firms control and sometimes present themselves as threats. For this reason, some way that PEST is an appropriate term for these factors. However, a change in the external environment also creates new opportunities and the letters sometimes are rearranged to construct the more optimistic term of step analysis.
POLITICAL ANALYSIS:
POLITICAL STABILITY:
The political stability in the past years has been below the desired level. The developmental policies formulated by one government are replaced by the next government before they are implemented.
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ECONOMIC ANALYSIS:
TYPE OF ECONOMIC SYSTEM IN THE COUNTRIES OF OPERATIONS:
There is a mixed economic system prevailing in PAKISTAN.
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SOCIAL ANALYSIS:
DEMOGRAPHICS:
The official sources say that the population of Pakistan is growing at the rate of 2.1% per annum and the population for the year 2003 is estimated to be 149 million.
HEALTH:
The present health infrastructure with 906 hospitals. The availability of 101.6 thousand doctors 98.204 thousands hospitals beds in the country which in term of population-doctor ratio works out to be 1466 persons per doctor and 1517 persons per hospital bed so much more efforts need to done to improve health care and preventive services.
TECHNOLOGICAL ANALYSIS:
RECENT TECHNOLOGICAL DEVELOPMENTS:
The government is according higher priority to the information technology (IT) sector. Core IT policy strategies have been proposed for many focus areas.
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OVER VIEW AND SUMMARY OF THE HONDA ATLAS CARS PAKISTAN LIMITED:
HONDA ATLAS CARS COMPANY is a joint venture between HONDA MOTOR COMPANY JAPAN and ATLAS GROUP OF COMPANIES PAKISTAN LIMITED. In HONDA ATLAS CARS COMPANY PAKISTAN, HONDA MOTOR COMPANY LIMITED JAPAN has 51% shares in this joint venture, so the main profit shares as well as designing, development ideas and costs are bear by HONDA MOTOR COMPANY JAPAN LTD. Where as in another joint venture b/w these two companies ATLAS GROUP OF COMPANIES have 51% shares. This joint venture is for the manufacturing of HONDA MOTORCYCLES. ATLAS GROUP of companies receives more % of profits. In all over the world, engines of almost of all kinds of product HONDA is a GIANT manufactures in the engine industry. HONDA produces boats also.
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Generators
Boats
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OUR ANALYSIS:
HONDA ATLAS CARS COMPANY PAKISTAN LIMITED is really well known motor vehicle company. We found no contradiction when we compare the statement of HONDA staff with general dealers and customers. HONDA ATLAS CARS, especially consumers cars, sells due to brand name of HONDA. So HONDA is enjoying a sound reputation in the market. HONDA cars regarded as # 1 due to high quality engines and several other features. Where as, the most efficient cars (diesel cars) are being produced by HONDAS important competitor TOYOTA. HONDA has contributed a lot in gas efficient cars, by introducing the HONDA CIVIC HYBRID, stand at # 2 after the TOYOTA in gas efficient cars. The prices of the few models of HONDA ATLAS CARS are lower as compared to the prices of their competitors. HONDA ATLAS CARS maintains quality standards. Most of the depreciation is computerized. Products are manufactured according to scientific standards. HONDA ATLAS CARS gives priority to consumer satisfaction and it is the constant endeavor of the HONDA ATLAS CARS OF PAKISTAN is to
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SUGGESTIONS:
After visiting this organization and go through our analysis we are at the position to give some suggestions: HONDA ATLAS CARS should add more product line because it can cash its reputation. HONDA ATLAS CARS should explore new market. HONDA ATLAS CARS should work on the more improvement in its product line .i.e. cars (both city and civic), generators, and boats. HONDA ATLAS CARS should restructure its policies. HONDA ATLAS CARS should improve in producing the gas efficient cars. HONDA ATLAS CARS conducts its business responsibly in a way to make sure Health, Safety and Protection from the environmental aspects of its associates and the society.
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