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MARKEETING PROJECT
MBA Marketing
M.Shahzad Ashraf
AD-512350
EXECUTIVE SUMMERY
I have selected Honda to create marketing plan. As the Honda is market leader and have opportunity for more growth in Pakistan. The plan is above to launch new Honda Small Car with name of vario will be lunched on 10th of December 2012. The car is fully equipped latest safety tools and unique power. I have prepaid complete market strategies to lunch new car. The total expenses of TV Ads, Bill Board, News paper is 16.5 Million. The manufacturing cost include other expenses is 6016.5 Million keeping the sale price 4.5 Million. The total profit per year is 2.835 Billion
DEDICATION
I am dedicating my work to my parents and respected teachers, who have played a vital role in our studies and have guided us at every step with their precious ideas. No doubt this dedication is insufficient and we can never repay for the role they have played in our studies but we are sure that their work will prove itself an asset in our life
ACKNOWLEDEGMENT
I am very thankful to SARDAR ABID ALI KHAN who helped a lot us by giving up to date information. We are very proud of our teachers whose help and instructions enable us to bind papers into project manner. We are very thankful to him.
PREFACE
The most beautiful things we can experience are the mysterious .It is source of all true art and science (Albert Einstein, 1930) This project is based on the topic which is assigned to me by our University, the organization which we took for research is:
Vision
Focusing on satisfaction (customers, associates and 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
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Friendly and efficient after sales back up, maintaining quality as core of all activities.
TABLE OF CONTENT
1. INTRODUCTION TO TOPIC. ..... 08
2. CURRENT MARKET SITUATION ..... 11
2.1PRODUCT REVIEW .... 15 2.2MARKET REVIEW . 23 2.3DISTRIBUTION .. 24 2.4COMPITERS REVIEW ... 26 3. SWOT ANALYSIS ... 29 4. OBJECT AND ISSUE . 30 5. DEVELOP STRTEGY ... 31 6. ACTION PLAN (5W) . 38 7. BUGET . 39 8. REFERENCE 40
Mission (or vision) statement: This is an external communication of your company's values. Like Admiral Stockdale, you're answering the question, "Who am I and what am I doing here".
Company objective: This section communicates what you want to do, by when, and how (what are your resources?). It is specific, quantifiable, and is inclusive of your entire company. It is not merely a sales goal. If you're an entrepreneur, your company objective might also serve as your marketing objective. Market analysis: This section reports on the findings of the extensive research that you have pursued and prepared. You need to discuss various factors of the market environment in relation to your product. These factors include legal, social, political, economic, and technological considerations. Target audience: Based on your research, discuss who your customers are and how you can reach them. Here's where you decide whether to niche or not, or to segment your audience either vertically or horizontally. Competitive analysis: Your advance research should reveal your competitors, the obvious and especially the others. How does what they're doing relate to your product? What advantages do you have? How can you keep the advantage? Action plan: As Shakespeare said, "Action is eloquence". You've made your map. Now you can define the best route to reach your customers. This section of your marketing plan outlines what media mix you'll use to reach your audience. Advertising -- where, how often, and at what cost. Public relations -- specific programs and promotions of interest to the community. Sales strategies -- incentive programs for representatives and distributors as well as prospective customers. A successful marketing plan is based on research and analysis. But because information can be manipulated to prove almost anything, insight is equally important. As Edward de Bono says, "Proof is often no more than a lack of imagination".
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The current market situation of car industries in Pakistan is at worst condition. Due to following reasons
1. Leasing
At the end of December, 2006. The President of Pakistan Pervaiz Musharraf. Introduced new polices for leasing. Starting from 2007 the banks in Pakistan applied strict Polices for commercialization. This policy of strict leasing rules directly effect on the production of cars in the industry. The no. of sold cars in 2006 was almost one million, which reduces to three hundred thousands. Now a day the leasing is totally eliminated from the banking sectors.
leasing and refurnished cars also have direct impact on the production of Honda. But overall market situation Honda is better than other companies. The annual production and growth shows that Honda is market leader. If we study the environment of Pakistan there is a opportunity for Honda to have a new product line in the form of small cars. In Japan and also in India Honda has already lunched the series of series of small cars like brio and jazz. But still in Pakistan there is no small car of Honda available. In 2011-12 many refurnished small cars were imported but they could not satisfy the customers.
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CAR INDUSTRY IN PAKISTAN Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company Limited Japan, and the Atlas Group of Companies, Pakistan.
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. We always strive to give outstanding service to our 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 our customers absolute confidence in our cars, clearly evident from the ever increasing sale volume
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
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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..
Career
At Honda we believe that a skilled, motivated and diversified workforce is the key to success in today's global market. The Power of Dreams is alive at Honda. Our belief is that the best people produce the best products. That's why Honda is constantly on the lookout for bright, ambitious team players who have a strong
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commitment to improving society, the environment, even themselves. Honda offers exciting and challenging careers with competitive pay, excellent benefits and exceptional advancement opportunities. With our international presence in almost 200 countries and continued success within Pakistan market, a career at Honda Atlas Cars can be both rewarding and stimulating
PRODUCT REVIEW
All it takes is a single glance. You stop in your tracks. The elegant silhouette draws you forward for a closer look. You peer into the sporty cockpit and your pulse races with excitement Your instincts are aroused and your feel driven to grab the
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controls.
Performance
Honda heightens your driving enjoyment with a rare combination of spirited engine response and exceptional fuel efficiency. This ideal balance is achieved by Honda's next-generation 1.8-liter SOHC i-VTEC engine - the first entirely new Civic power plant in 17 years. Through Honda's advanced i-VTEC (Intelligent Variable Valve Timing and Lift Electronic Control) system and DBW (Drive By Wire) technology, it performs like two types of engines in one compact unit. At high engine loads, such as when starting from a standstill or stepping on the accelerator, DBW fully opens the throttle while VTEC optimizes intake valve timing to generate 2.0liter-equivalent power. At low engine loads, such as during highspeed cruising, DBW narrows the throttle opening while VTEC delays valve closing to achieve 1.5-liter-equivalent fuel efficiency. Settings are intelligently switched in a seamless manner to ensure smooth, linear response at all revolutions
Engine Type Valve Train Fuel Supply System Throttle System Bore / Stroke (mm) Displacement (cubic cm) Compression Ratio Maximum Horsepower (bhp @ rpm) Maximum Torque (lb.-ft @ rpm) Ignition System Steering Gear Type Steering Wheel Turns (Lock-to-
Water-cooled, In-Line 4-Cylinder 16-Valve SOHC i-VTEC Multi-Point Fuel Injection Drive-by-Wire 81.0 X 87.3 1,799 10.5 : 1 140 @ 6,300 128 @ 4,300 Direct Ignition System with Immobilizer Rack & pinion, Power assisted 2.67 15
Lock) Braking System Type Electronic Brake force Distribution (EBD) Tires / Wheels Tire Size Wheel Size Wheel Type Interior / Convenience Interior color Sun - roof Steering Wheel Speaker System Seat Cover Material Safety Supplement Restraint System (Airbags) (Driver & Front Seat Passenger) Seatbelts - Front Rear Adjustable Shoulder Anchor (Front) High Mount Stop Lamp Fog Lamps Door Beams High-tension Steel Crumple Zones G - CON
4 - Wheel Disc ABS O 195 / 65 R 15 15 X 6 JJ Steel Wheel with 5-Spoke Aluminum Full Cover Alloy Grey & Beige X 3 - spokes 4 - speakers Tri cots Grey & Beige O 3 - spokes 4 - speakers High Grade
O Pre-pensioner with EA O O O O O O O O
O O O O X O O O O
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Is there a better way to build a compact sedan? Hondas affirmative answer is the revolutionary new City.
The New Honda CITY TYPE ENGINE Type Fuel supply system Displacement Compression ratio Maximum horsepower (KW(PS)RPM) Maximum torque (N.M(KGM)RPM) Transmission Type iDSI (Intelligence Dual & Sequential Ignition) PGMF-I Programmed Fuel Injection 1300 8.8:1 57 (78) / 5,800 106 (10.8) / 3,000 Synchromesh five forward, one reverse Continuously Variable Transmission SOHC, 4-Cylinder 16 valve-VTEC PGMF-I (Programmed Fuel Injection) 1497 10.1:1 81(110) / 5,800 143(14.6) / 4,800 Steermatic (CVT + 7 speed mode) MT VARIO Steermatic1.5L VTEC
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6 Position (CVT) STEERING SYSTEM Gear Type Rack and pinion, power assisted Overall length 4390 (mm) Overall width (mm) 1690 Overall height 1485 (mm) Wheel base (mm) 2450 Tread Front (mm) 1455 Tread Rear (mm) 1455 Ground clearance 160 SUSPENSION SYSTEM McPherson strut with coil spring & stabilizer / HFront / Rear shape Torsion Beam BREAKING SYSTEM Front Ventilated discs Rear Leading / trailing shoe drums TYPES / WHEELS Tire Size 165/80 R13 185/55 R15 Wheel Size 13X5J 15X6J
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Enter the cockpit of the New Accord and bask is satisfaction. It engages the senses and attends of the Driver's needs. With an array of innovative feathers, it offers superior comfort and convenience. Accord is where the true pleasure of driving begins
Type Engine Block Valve Train Fuel Supply System Throttle System Bore / Stroke (mm) Displacement (cubic cm) Compression Ratio Maximum Horsepower (bhp @ rpm) Maximum Torque (lb.-ft @ rpm) Ignition System Transmission Manual Prosmatec Steering Gear Type Steering Wheel Turns (Lock-toLock) Dimensions Overall Length (mm) Overall Width (mm) Overall Height (mm) Wheel Base (mm) Tread (Front / Rear) (mm) Ground Clearance (mm) Suspension Front Rear Braking System Water-cooled, In-Line 4-Cylinder Aluminum Alloy 16-Valve SOHC i-VTEC Multi-Point Fuel Injection Drive-by-Wire 81.0 X 87.3 1,799 10.5 : 1 140 @ 6,300 128 @ 4,300 Direct Ignition System with Immobilizer Synchromesh 5 forward speed - 1 reverse Compact 5- Speed Automatic (Progressive Shift Management Technology) Rack & pinion, Power assisted 2.67 4,540 1,755 1,435 2,700 1,500 / 1,530 High Road Clearance Control-Link McPherson Strut Suspension Reactive-Link Double Wishbone Suspension
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Type Electronic Brake force Distribution (EBD) Tires / Wheels Tire Size Wheel Size Wheel Type Others Fuel tank (Liters) Interior color Steering Wheel Speaker System Seatbelts - Front
4 - Wheel Disc ABS O 195 / 65 R 15 15 X 6 JJ Steel Wheel with Full Cover 5-Spoke Aluminum Alloy 50 L Grey & Beige 3 - spokes 4 - speakers Pre-tensioned with EA
HONDA CRV
Be Inspired
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Success is a journey. It has multiple peaks leading to that one ultimate pinnacle. One success builds on another. To attain triumph requires overwhelming hold ups for a cruise towards success. With the new Honda CR-V, we not only recognize your attainment and offer you a magnum opus machine but also a driving experience that truly cherishes you success.
MARKET REVIEW
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DISTRIBUTION
Region
Karachi
Name
Address
Phone No.
Fax No.
(021) 34526758
Honda Shahrah-e-Faisal 13 Banglore Town, Main Shahrah-e-Faisal, Karachi (021) 34547113-6, 34527070, 34527373, 34527474, 34527575 Honda Defence Honda Site 67/1, Korangi Road Near HINO Circle, Karachi C 1, Main Manghopir Road, SITE, Karachi (021) 35805291-4 (021) 32577411-2, 32564926, 32570301, 32569381 Honda South Honda Drive In Honda Quaideen 1 B/1, Sec. 23, Korangi Industrial Area, Karachi 118 C, Rashid Minhas Road, Karachi 233-A-2, PECHS, Karachi (021) 35050251-4 (021) 34992832-7, 34992824-5 (021) 34556071-3, 34556510-12
Hyderabad
Honda Palace
(0223) 641519
Lahore
Honda City Sales Honda Fort Honda Point Honda Canal Bank
75 B, Block L, Gulberg III, Ferozepur Road, Lahore (042) 35841100-06 32 Queens Road, Lahore Main Defence Road, Lahore 13-b,Block K,Johar Town, Shaukat Khanaum Bypass, Lahore (042) 36314162-3, 36309062-3, 36313925 (042) 35700994-5, 35700997, 0333-4777921 (042) 35300822, 35300833, 35315356-8, 35315361 (042) 111 333 789
Honda Gateway
(042) 37511075
Islamabad
Honda Classic
(051) 4436446
Rawalpindi
Honda Centre
(051) 5125186
Multan
Honda Breeze
(061) 4588874
Faisalabad
East Canal Road, Faisalabad 123 jb Raja wala Green view colony, Faisalabad
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Region
Sargodha
Name
Honda Citurs Fields
Address
7-Km Lahore road, Sargodha
Phone No.
(048) 3225186-7
Fax No.
(048) 3226589
Gujranwala
Honda Gujranwala
(055) 3893481-3
(055) 3893484
Sialkot
Honda Falcon
(052) 3563203
Mirpur
(05827) 451501-3
(05827) 451500
Peshawar
Honda North
(091) 5854753
Region
Name
Address
Phone No.
Fax No.
ABBOTTABAD
0303-6966955, 0300-5618464
BAHAWALPUR
Bahwalpur Motors
BUREWALA
FAISALABAD
G.M. Autos
(041) 2641925
KARACHI
6-8, 12th Commercial Street, Phase II, D.H.A, Karachi. (021) 35886356-9, 0300-8227860 1-J8/B Muslim League Quarter, Main Road Nazimabad (021) 36603336-7, 0300-8299814 No 1, Karachi.
9/423 Darakshan Society, Kala Board, Malir, Karachi. D-154, Block-5, F B Area, Near Zia-ud-Din Hospital, Karachi.
ISLAMABAD
Rafique Autos
(051) 2825026
GUJRAT
(053) 3514511
LAHORE
Kwik Motors
(042) 35723918,
(042) 35731358
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Region
Electro Wheels
892-R-1 Main Boulevard, Johar Town, Lahore. Aabpara Market, 16 Wahdat Road, Lahore. 5 Lawrance Road, Lahore. Plot No. 29/30, 21 Acre Scheme, Samanabad, Lahore
(042) 35291771, 0300-4008080, 0322-4008080 (042) 35311171 (042) 35866932, 0300-4403400 (042) 35865131
(042) 36365016, 0333+4242242, 0323-4242242 (042) 36365016 (042) 37530563, 37530579, 0300-9417172, 0300-8880096 (042) 37522099
MARDAN
Mardan Motors
MULTAN
(061) 6536311
OKARA
Modern Autos
Adda Khan Pur, Near Shamim Petroleum Service, Rahim(068) 5887300, 0300-8678636 Yar Khan.
(068) 5887363
RAWALPINDI
445- Meherabad, Peshawar Road, Rawalpindi. Sitara Market Chaklala Scheme No 3, Rawalpindi.
(051) 5480990
SAHIWAL
SARGODHA
(048) 3212130
SUKKUR
Ghansham Motors
VEHARI
Qazi Motors
Region
Lahore
Name
Sugoi Parts Center Sugoi Defence Parts
Address
Shop No. 4 - 6, Shamyl Center, 4 Montgomery Road, Lahore Shop No. 1, Corner 26/26, Main Walton Road, Lahore Cantt.
Phone No.
042-36370121 042-36626987
Fax No.
042-36375900 042-36626989
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Region
Center
Name
Address
Phone No.
Fax No.
Rawalpindi
051-5580263-64
051-5580266
Karachi
Plot No. 12-C, 12th Commercial Street, Phase II Extension D.H.A, Karachi
021-35312766
021-35312768
Sugoi Star Parts Center Shop No. 9-10, Datari Arcade, Plot No. 151-A, Block-2, Khalid Bin Waleed Road, PECHS, Karachi
021-34536637
021-34536638
Multan
103/9 Iqbal Plaza, Opp. RTO Office, Near Feasta Garden, LMQ Road, Multan
061-4586160-61
061-4571962
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Fax: (
32) 262578
COMPITERS REVIEW
COMPETITORS
The competitors of HONDA includes all the local and foreign Cars manufacturer including
Because of handsome amount of profit in a Car industry many new Models entered in the market from the last few years. The competition between the new entrants is fierce and already margins have collapsed. Technology brings a revolution in every field of life. Machines are used for better development of structure. Competition is also increasing because of many multinational and local companies entered in this business.
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Competitors Analysis
The competition environment has a large impact on the marketing operations of the company.
Before launching a product, it is necessary to analyze the competition environment of the target market. If there is a threat from large competition, than a suitable marketing strategy has to be worked out to overcome the problems. Product differentiation or price leadership can lead to success. Current Industry competition is high because of the Government policies and threat of new strong entrants. We have three types of competition which are as follows
Brand competition Form competition Generic competition
Brand Competition
This competition deals directly with the brand name Different brands of are available in the market who are directly Honda brand competitors. Competitors are called sum of those companies which are in same market, producing same product at same prices. When we analyze the competitors we have to keep four important aspects of the competitors in our mind.
A. INDUSTRIAL COMPETITORS.
It means when Honda launches cars then they think about the Service and private cottage industry.
B. MARKET COMPETITORS.
It means when we come with tea in the market we are not going to compete only with Tapal but also with Coffee. This example helps us to understand market competitors but when we talk about the Honda product in the market we see there is not other substitute of cars as coffee for tea hence all the industrial competitions are also the competitions of Honda in market.
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2. PLAYERS OF INDUSTRY.
Honda categories the business according to this concept into four types .Market Leader. .Market Follower. .Market Challenger .Market Nicher In it we have to mention that what type of player our product to be so Honda is doing this we compare in realistic manner then we see Honda is market leader, Toyota is its challenger and Suzuki is market nicher.
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SWOT ANALYSIS
SWOT ANALYSIS OF HONDA
STRENGTHS
.Old Designing
.Lack of response (To and from customer)
OPPORTUNITY
Strict leasing polices may not be removed by the Govt. Duty free agreement between China and Pakistan
The objective of our marketing plan is to introduce the executive class product in the form of Honda Jeep.
To maintain the repute of Honda in the Market To introduce latest safety tools in car industry To introduce new design including interior and exterior To create fully automatic function replacing manual function To protect environment by introducing smokeless engine
MARKETING STRATEGY
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POSITIONING Honda is placing itself in the country with the help of its different departments. Marketing divisions has its distribution and selling channels comprising PRICING STRATEGY As the Honda have relatively have price than other companies, so to lunched BRIO its price will be up to 01 million.
Specifications Engine Type No. of Cylinders No. of Valves Displacement (cc) Max Power ps(kw) @ rpm Max Torque (Nm @ rpm) Fuel Supply System Fuel Efficiency* Transmission Steering Manual Type Turning Radius (m) Brake System Suspension System Dimensions & Weight Front Rear Front Rear Overall Length (mm) Overall Width (mm) Overall Height (mm) Wheelbase (mm) Front Track (mm) Rear Track (mm) Ground Clearance (mm) Kerb Weight (kg) Tyre Size SOHCi-VTEC 4 16 1198 88(65) @ 6000 109 @ 4600 PGM - Fi 18.4 km/litre 5 Forward & 1 Reverse Collapsible Electric Power Steering 4.5 Disc Drum Mcpherson Strut Torsion Beam Axle 3610 1680 1500 2345 1480 1465 165 920-940 175/65 R14 82T
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35 5
*As certified under Rule 115 of CMVR 1989, S(O) 18.3 km/l
PRODUCT STRATEGY The quality of HONDA product is good but knows there are many competitors in the market. We have to develop the following features in BRIO, . Interior
Vogue silver metallic Granada Black Pearl Frost White Charcoal Grey metallic Canyon Stone silver metallic Silver Grey Cool Red
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Cyprus Blue metallic Advance Safety System This advance safety system will protect the passengers in case of accident,
Comfortable Cockpit
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DISTRIBUTORS In order to manage distributors sales 1. Constantly control weekly / sales estimate 2. Advance orders intake as per estimates 4. Ship the supplies to distributors as per schedule. 5. Ensure back up stock in warehouse for managing timely supply. 6. Timely collection of outstanding as per wholesale policy. 7. Control and settle distributor's customers claims as per policy. 8. Control, analyze profitability of each channel. 9. Ensure price inventory of stocks held by distributors for reduction increment and sales action. 10.Study and keep track of competition activities. 11.To intimate sales promotions and executive. The same in standardized form in distributors dealer store. 12.To help all dealers, distributors informed about shoe collection
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PROMOTION
ADVERTISING
The main purpose of the advertising department is to increase the sale and enhance company image. I have prepared three advertisements for BRIO & JAZZ,
o First ad will be on -air. On first November 2012. o Second ad will on air 14th November 2012. o Thirst ad will be on air 30th November 2012.
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There will be hundred bill boards erected in the mentioned cities. 1) 2) 3) 4) 5) 6) Lahore Islamabad Karachi Sialkot Hyderabad Faisalabad
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PROMOTIONING THROUGH CONSTRUCTIVE SOCIETAL EVENTS In this term Honda Pakistanis latest gesture of support for community projects in the country including sponsorship of a cancer walk organized by "cancer research foundation" to raise funds for this wordy cause. Honda banners featuring inspiring slogans to create awareness amongst general public were highlighted which enhanced company's image, as the event received excellent projection through print and electronic media. BSO has a contract with the leading advertising company "Interflow". Both are collectively enhancing consumer's preferences through advertisement. Interflow is handling the most part of advertising. The advertisement is prepared for this purpose will be on air on 30th November.
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SALES PROMOTION We have prepared the sale promotion planning which is following For first hundred customers there will be a gift of LG Flatirons 29 For next hundred users a gift of Nikon handy cam will be offered
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ACTION PLAN
The jeep will be lunched according to following plan.
The Brio will be lunched on 14th November 2012. The opening ceremony of Brio will be held on 14th Novembert in Pearl
Islamabad, Peshawar.
For advertisement we have three ads of Brio First ad will be on -air. On first November 2012. Second ad will on air 14th November 2012. Thirst ad will be on air 30th November 2012. The sign boards will be erected first November 2012in five famous places of
Lahore. Century Tower, Calvalry Ground, Garden Town, Pace, Thokar Niyaz Beig, and Azadi Chowk.
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Budget Description
Bill Boards TV ads preparation Ads display on Geo Sales Promotion (TV+Nikion)+ New Paper Ads Fund For Charity Cost of Production
Price
20000x100 500000x3 100000x3 TV=30000x100 Nikon=10000x10 0 10000x100 100000/ month 3x2000 Total Details of Bill Boards
Total
6 Million 3.5 Million 4 Million 1 Million 1 Million 6000 Million 6016.5 Million
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Cost of Production The cost for making a BRIO is 3 million. The first production will be 2000. Revenue/Million 4.5x2000=9000 Expenses per year/ Million 13.5x12=162 Profit/Million 9000-6016.5=2983.5
The total profit for one year is 2983.5 Million or 2.9835 Billion.
REFERENCE USE
I have consulted following references to prepare this report.
Book of (Advertising and sales promotion) Personal visit to organization for data collection As my own organization. Get idea form class lecture www.wikipedia.com. (For any kind of information and definition) www.google.com.pk (for images)
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