Professional Documents
Culture Documents
150 Budget
150 Budget
Roll number
093109 101408 093173 091416 093175
__________________________________________ Submitted to: Project Facilitator and Respected Teacher: Mohammad Anis Sajid & Respected guests
Acknowledgement
(In the name of Allah most merciful and beneficent). I n sp ira t io n a nd Mo t iva t ion a lw a ys p la ys a ke y ro le in th e su cce ss of a n y p ro je ct .
W e a re o ne o f th ose f ew f o rtu n at e st u d en t s w h o se pa th is e n lig h te ne d b y e xpe rt ise a n d co mp e t e n t g u ida n ce o f o u r te a che rs , pa re n t s a n d A t las Ho n d a Ma n ag e me n t f o r co mp le t in g th is Ma rke t in g P ro je ct su cce ssf u lly. W e a re t h an kf u l t o a ll ou r re spe ct ed t e a che rs f o r ma kin g u s ca pa b le of d o in g t h is P ro ject a nd p ro vid in g us st ro n g ba ses to e nt e r the
p ro f e ssion a l w o rld. L a st bu t no t lea st . W e a re a lso g ra t ef u l to Mr. Ra sh in A min (Co mp a n y S e cre t a ry ), Mr. Ha f i z W a se em, Mr. I mra n K h an a n d Mr A dn an o f At la s Ho n da L imit e d a n d S ir Mo h mma d A n is S a jid w ho h e lp ed u s t o co mp le t e t h is P ro je ct an d in cre a sed o u r kn ow le d ge a b ou t Ma rke t in g an d t h e co rp o ra te wo rld .
Ahsan Saeed
M. Asadullah
Umair Gilani
Naveed Anjum
Azhar Tufail
EXECUTIVE SUMMARY
T ABLE
OF
C ONTENTS
1 1 1 1 2 2 3 4 7 7 7 7 7 8 8 9 10 10 11 12 12
T ABLE
Maintenance Department
GROUP VI / MAY 2012
OF
C ONTENTS
13
Quality Assurance/Final Inspection Casting Plant Engine Plant Assembly Plant ED Paints: Manufacturing Plant Information Technology Sales/Spare Parts/Inst. Sales Services and customer care and training
13 14 14 14 15 15 15 16 16 17 17 17 17 18 19 19 19 19 19 20
JOB DESCRIPTION
Finance Executive of Sales Finance Executive of Spare Parts Department (SPD) Institutional Sales Executive Finance Manager
CONCLUSION
OBJECTIVE
Launch of a new product Honda CBR 150 Euro2. We have done extensive marketing research and then designed CBR 150 Euro2. According to our research and product we will try to design such a marketing promotion strategy which will ensure maximum market penetration (coverage & awareness), market share and sustainability of our market leader status, in line with the companys goals and current marketing strategy.
SCOPE
Scope of our project lies within the geographical boundaries of Pakistan. Our focus will be on the launch of new product. Honda CBR 150 Euro 2. Keep are new marketing strategy in line with the companys current marketing strategy.
PURPOSE
To design a successful marketing campaign, which will ensure the best launch of our product and facilitate our objectives of the project. (maximum market penetration, coverage & awareness, market share and sustainability of our market leader status). This Project should give us a detailed view about our new launch strategies, Promotion techniques, promotion budget allocation and evaluation techniques.
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AHL manufactures and markets Honda motorcycles in collaboration with Honda Motor Company. The Company also manufactures various hi-tech components in-house in collaboration with leading parts manufacturers like Showa Atsumitech, Nippon Denso and Toyo Denso. Honda motorcycles are by far the largest selling motorcycles in the country with an unmatched reputation for high quality, reliability and after-sales-service. Atlas Honda Limited does not cater local market but also exports to a few neighboring countries like Bangladesh, Sri Lanka, Middle East, Nepal and Afghanistan. The company has not just met the quality standards of its customers but has always been focusing on the quality and compliance standards for its stake holders. AHL has won many awards through ICAP, ICMAP and KSE. It also acquired ISO 14001-2004 Environment Certification to help develop and green society. It implements SAP, the leading ERP system to provide the company a great competitive edge by cumulating all the companys departments under one centralized system. AHL has undertaken to develop local manufacturing capabilities to the highest, economically feasible level. While a major role in localization has been assigned to vendor industries, Atlas has the countrys largest in-house manufacturing capability at its Karachi and Sheikhupura plants. To support the production facilities, the company has established an R&D wing and tool making facilities through CAD/CAM which are growing rapidly in size and function as the company expands. Atlas has managed to execute 12 Joint Venture/Technical Assistance Agreements between local vendors and foreign manufacturers for transfer of technology. Besides, Atlas has directly executed 9 Joint Venture/Technical Assistance Agreements other than Honda.
GROUP VI / MAY 2012
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ATLAS HONDA LIMITED (AHL) is a part of Atlas Group of Companies having 12 more sister companies. The Board of Directors includes the extraordinary Mr. Yusuf Shirazi as a Chairman; the man himself is the founder member of organizations like KSE, LSE and ICCI. The present CEO of the company is Mr. Saquib H. Shirazi, who is member of board multiple other well-known companies.
MISSION
A dynamic growth oriented company through market leadership, excellence in quality and Service and maximizing export, ensuring attractive returns to equity holders, Rewarding associates according to their ability and performance, Fostering a network of engineers and researchers Ensuing unique contribution to the development of the industry, Customer satisfaction and protection of the environment by producing emission friendly Green products as a good corporate citizen fulfilling its social responsibilities in all respects.
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COMPANY HIERARCHY
BOARD OF DIRECTORS
SANAULLA
H
QURESHI DIRECTOR
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MANAGEMENT COMMITTEE
KOJI TAKAMATS
U
G.M. R&D
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COMPANY CULTURE
The company has a very strong organizational culture. AHL is always concerned about improving the organizational behavior and enhance its Ethical standards. Some of its cultural development policy and procedures are as follows. 3 Joys and Respect for the individual Atlas Honda Ltd. operates under the basic principles of "Respect for the individual" and "The Three Joys" - commonly expressed as The Joy of Buying, The Joy of Selling and The Joy of Creating.
Administration Corporate Affairs Stores Finance PPC Logistics/ Vendor Procurement Maintenance QA/ Final Inspection Casting Plant Engine Plant Assembly Plant Manufacturing Plant IT Sales/ Spare Parts/ Institution Sales Service /Customer Care & Training
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STRENGTHS
The SAP system software provides Atlas Honda a centralized database system which provide one click excess to reports no matter where; Lahore Karachi or Sheikhupura. It also integrates Sales, Finance, Supply chain and dispatch department effectively. Qualified and well trained staff Biggest sales network Best production plant in Pakistan Financial strong Biggest market share People trusted products High quality products Customer care Customized products Brand image Availability of spare parts throughout Pakistan Best logistics ISO certified Highest resale value High after sale services
WEAKNESSES Poor interaction with end user (final Customer). Dealers are still able to black market products. High price products Political instability Low per caspita income Less overhead of competitors Increasing oil prices High inflation Honda is expensive to buy and maintain then its counterpart rivals.
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OPPORTUNITIES
Currently dealing in CD 70, CG 125(Deluxe and normal) and CD100 can improve its market line and introduce new functions like self-start etc. The bottle neck is the supply not demand and increase in capacity will directly affect revenue. Industry expansion Technology redesign Strong Position Market Integration opening up Opportunity growing in other countries Newly developed Areas/Markets (e.g. Gawader) Favorable govt. policies Big Market Economy is expanding Karachi, a segment which has tremendous potential for growth and profitability
THREATS
More than 80 % of parts are manufactured in Pakistan therefore any change in government policy and taxes directly affect cost. All plants are working at full capacity on 24 hours basis and still markets demand cannot be fulfilled. Chinese cheaper products challenges Strong competition from competitors in near future Instability of Government High rate of Taxation Bad infrastructure
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Company Goals
Increase Customer Making Brand Perception as a TOP OF MIND Increase distribution Recruit New Distribution New Town Openings
Core Competency
As being leader in the market our core competency is quality. We are producing 98% parts used in motor bikes within the country with great ease.
Competitive Advantage
The Company will strive to establish strengthened relationship with suppliers and distributors for the satisfaction of customers standard.
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Major Competitor
External Competitors:
Suzuki Yamaha Kawasaki Pak hero Metro Eagle Diamond Treat
Internal Competitors:
Honda CD70 Honda CG125 Honda CD100 Honda CG 125 Deluxe
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Customer Analysis
Honda is providing an ease in handling convenience to the customers. In this fast paced life, time is getting shorter and shrinking. Peoples life style is changing towards CONVENIENCE IN HANDLING. Buying cost may be not much important for some people then the retaining cost. Honda sales and service centers throughout the country gives high quality of services to their valued customers at normal cost and with genuine spare parts easily available at any town of a city.
Demographics
Hondas Customers are:
Students (Between the age group 18 to 26) Professionals & Youngsters (Between the age 26 to 35)
Social Class
Hondas Customers belongs to the following social class :
Our slogan
For Honda to remain Honda, and for everyone to realize their aspirations, we must believe in "The Power of Dreams"
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PORTFOLIO ANALYSIS
A portfolio analysis method that evaluates the companys strategic business units in terms of its market share. SBUs are classified as star, cash cow , question mark and dog.Using Boston Consulting Group (BCG} approach, a company classified its SBUs or products according to growth share matrix. Vertical axis-market growth rate provides a measure of market attractiveness. Horizontal axis- relative market share serve as a measure of company strength in the market.
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Stars
Stars are high growth. High market share businesses or products. Company send lot of resources to make them cash cow. CG 125 is the star product of atlas Honda in Pakistan.
Question Mark
Question mark is high growth but low share businesses or products. These products are introductory stage.
CBR 150 EURO 2 will be the question mark product of Atlas Honda.
Cash Cow
Cash Cows are low growth, high businesses or products. Company cost is less and profit margin is high, because brand is strong position in target market. CD 70 is currently the cash cow of Atlas Honda.
Dog
Dogs are low-growth, low share businesses or products CD 100 is the dog product of Honda Atlas Pakistan.
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Customers, competitors, distributors, suppliers Stage 2: Idea Screening Product development costs increase substantially in later stages. Ideas are evaluated against criteria; most are eliminated.
Stage 3: Concept Development and Testing Product concepts provide detailed versions of new product ideas. Concept tests ask target consumers to evaluate product concepts.
Stage 4: Marketing Strategy Development Strategy statements describe: target market, product positioning, and sales, share, and profit goals for the first few years, Pest analysis, segmentation, targeting, positioning, differentiation ,customer needs and wants, social, cultural, ethics, Product price, distribution, and marketing budget for the first year. Long-run sales and profit goals and the marketing mix strategy.
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Stage 5: Business Analysis Sales, cost, and profit projections Stage 6: Product Development Prototype development and testing
Stage 7: Test Marketing Alpha testing and Beta testing Stage 8: Commercialization On special event such as 14 August, 23rd March etc.
Strengths: The main benefit to the new launched CBR 150 is the current image of Atlas Honda as the most advance technological manufacturer. It also has a huge competitive advantage of its already created goodwill in the market, being a market leader in motorbike industry of Pakistan. The product features of new CBR 150 are the competitive advantage:
150 cc CBR Euro 2 technology. Ignition start 5 gears transmission Muscular attractive modern design Rear disc Brakes Mileage (60km/liter) Environment friendly exhaust emissions Availability in different range of colors ( metallic black ,metallic gray, metallic red ,metallic golden) GROUP VI / MAY 2012
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Weakness: The main weakness in the new product before launch is it lies in the question mark category of BCG matrix and will require the expensive resources of the company which could be allocated to its star products.
External Analysis:
Opportunities: The product is in new market space with growth opportunities, only single direct competitor exists to which Honda has a technological and quality over run. Limits are stretched to new technological advancements in motorbike engines in existing market. Threats: Low cost Chinese models and local brands are threats to the new product.
Target market:
Our target market will be age group of 18-45 including medium and upper classes. Target audience: Our target audience will be students, professionals, bikers, speed lovers, urban areas and people of northern areas where CG 125 hold better ground than CD 70 and competitors like Suzuki are trying to penetrate in existing market Gap.
Media Objectives:
Reach: our focus group will be male gender and target audience will be people including sport lovers, thrill lovers, action films fans, reality shows audience, news audience and youth oriented TV shows. Coverage: our coverage will be throughout Pakistan including all major cities and urban areas. Prime target will be provincial capitals. Awareness: awareness will be created about the distinctive and competitive technological features of the new Honda CBR 150 (i.e. its new robust sound, Speed, Economy aero dynamic muscular design, environment friendly exhaust, and introduction of rear disk breaks for the the first time in Pakistan).
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Trial: 2 years old license holder can have trials of the product at the specified 5S classified distributers.
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Half page ad charges is 1087500 once time*2 SUNDAYS during 2nd quarter =2175000 on first page and other quarters budget similar rates with different schedule.
Broadcast Media:
We have selected the following channels for broadcast media.
PTV
PTV have a maximum coverage across the Pakistan there we will be targeting our customers through ptv at prime time mentioned below.
GROUP VI / MAY 2012
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Our ad will be on-air before specified program @178150*2=356300 per minute. Our ad will be run for consecutive 15 days. Our ad will be on air during prime time (7.45pm to 9.00pm].
The total amount of 1st quarter of ptv can varies because is depends upon length of ad
GEO TV
Due to maximum cable viewership we have selected GEO TV to target our customers.
Per minute rate on GEO TV is Rs.637200 during prime time (8.00pm to 9.00pm}. Our ad will be run consecutive 15 days. The total amount of 1st quarter of GEO TV can varies because it depends upon length of ad that means 637200 per min charge *15 days =Rs 9558000/-
RADIO
Radio stations mentioned below will be used as according to their coverage and popularity.
At radio Rs 1100 per sec is charged. Our ad will be run for 30days. Total cost will be Rs.1980000/Fm station 89.00,91.00,100.00 will be used. GROUP VI / MAY 2012
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Social Media and Internet: It is strongly recommended that Honda must have effective web presence in this interactive world .To promote the entire site, an online marketing program must be launched. A comprehensive, highly targeted group of destination web sites must be chosen for the program. The web site should be registered with yahoo search portal. And a number of tactical elements will help drive online awareness and inquiries into the program including:
Online newsletters Banner advertising Search engine registration Web site links Facebook and on line newspaper JUNG and THE NEWS. Separate Web page for Honda CBR 150 Euro 2 at Honda official Website. A free Flash race game containing Honda CBR for facebook (downloadable) will be introduced.
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Target Market Coverage: Target market will be covered through two channels one is through Dealership Sales and second is direct selling to companies (Police, Army, CSD, TCS) Institutional Sales.
Reach vs frequency: Our coverage will be across the nation focusing to provide us maximum reach. Whereas frequency of our ATLs will be maximum that our budget allows in first month later on our on air display frequency will be decided on our competitors response. Creativity and Aesthetics:
GROUP VI / MAY 2012
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Aesthetics of our Media Ads will be power, speed, muscularity, safety, state of art product design. Our Ad campaign will show a satisfying customer mood depicting achievement of its dreams, focusing on its new competitive features. Product nature of CBR 150 is Masculine giving a power full exterior look with shiny body paint, fiber side covers, big 17 inch rims and stylish silencer.
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Budget consideration:
BUDGETING
2nd Quarter 2012 5344500 9558000 1980000 5195400 2175000 2860000 3000000 2000000 5268000 (prelaunch for facebook) 2575000 1050000 No additional cost for website and game 875900 No additional cost for website and game 2,829,300 1575900 1731800 1087500 865900 1087500 2175000 1578000 1570000 475700 No additional cost for website and game 11,143,200 3rd Quarter 2012 4th Quarter 2012 1st Quarter 2013 5344500 TOTAL 10689000 9558000 3555900 7793100 6525000 4438000 7145000 4401600
PTV GEO TV RADIO JUNG NEWS PAPER APER DAWN NEWS PAPER SPONSORSHIP PROGARMES BILL BOARDS BANNERS Interner( Facebook and online newspapers)
TOTAL
37,380,900 8,020,200
59,373,600
Financial Analysis of 1st quarter and Evaluation plan of Promotion: Actual cost per bike = 146560/- including sales tax. Selling price per bike = 166000/Profit margin = 19460/- per bike Expected sales 1st month 30,000 bikes 2nd month 25,000 bikes 3rd month 25,000 bikes Total 80,000 bikes SP/Bike x Rs166,000 SR 13,280,000,000 ( sales revenue of first quarter for CBR 150 Euro 2) Total cost of 1st quarter = 112560 x 80000 bikes = 9,004,800,000/Total revenue
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AD ANALYSIS
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MARKET STRATEGY
UNDIFFERENTIATED
TARGET MARKET
RIDERS, STUDENTS, BUSSINESS CASS
EXECUTION STYLE
SLICE OF LIFE
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