FINAL PROJECT BRAND LOYALTY
Submitted By: Muhammad USMAN Mc070400252 Session 2007-2009 17-04-2009
Submitted To: Project Management Department MKT-619
Department of Management Sciences, Virtual University of Pakistan
DEDICATION I would like to dedicate this project to my respected Khawaja Saleem Warsi who made me able to enter to join MBA Program; He was a Professor in Government Islamia College, Karachi. His kind encouragement, help, and motivation has been supporting me at every stage during MBA, This kind Professor has always step by step with me when ever I faced problem during Study.
ACKNOWLEDGEMENT Start with the name of ALLAH who is very beneficiary and merciful. I am very Grateful to Almighty ALLAH Who Gave me a Power to research and write on this report. After that I am very Grateful to My respected elder Khawaja Saleem Warsi who made me able to enter in MBA Program, than my guardian, my kind Instructor of Final Project (MKT-619) Whose Guidance and instruction Helped and encouraged me at every Stage of this Project. I will ever memorize this Great personality. I am also Grateful to my honest and sincere friends who provided me suggestions when ever I needed
EXECUTIVE SUMMERY The background of the project is to analyze Brand loyalty of Toyota Corolla and Honda City Cars that success in the Car Market. I will find out the reasons and factors those make them strengthen and Strong position in the market for that I decided to work on it. For that we must need to very closely and detailed overview of the company. Common perception about Toyota Corolla and Honda City is that both companies have been fulfilling the perceive value of the customer, the price paid is much reliable against the value, in my research work; I will identify how much strong these arguments? What the reason are behind to successfully fulfill the perceived value of customer, what are the marketing or manufacturing success, is there any some other aspects or role to make more loyal customer. Toyota Corolla and Honda City fulfill the whole of the customer’s need as they want in every of aspect but customer had already mindset about the price of both different Brand that these cars providing luxurious, reliable, and durable Facilities which other Car manufacturer are not much able to provide at competitive price. Toyota Indus and Honda atlas has been producing luxurious car. its time where as customer will be aware to the Toyota and Honda Car with reference to those brand, these brands penetrated in customer’s mind so Toyota and Honda has been getting a place in car market. The reason of conducting survey in the field of Brand loyalty comparison between Toyota Corolla and Honda City, I have been worked out ascertain acceptance and attractiveness of the Toyota Corolla and Honda City. The issues has been becoming as to consumer behavior that what those opinion, perception, attention involved in to go Toyota Corolla and Honda City brands. Research has been conducting by (Honda and Toyota) dealers’ interviews, questionnaire filling by fifty Toyota Corolla and fifty for Honda City lovers simultaneously in which middle and upper middle class people has been participating. A total of 40 respondents were surveyed from across the Karachi due to limited time . All respondents were surveyed by Mixed Questionnaire during May 2009, and were qualified as intending to purchase a Toyota Corolla or Honda City vehicle. The study has a standard error
of + 2.8%. Regarding to our target, Over 58.7% of the respondents surveyed are willing to buy Toyota Corolla and 42.3% of Honda City. According to chosen project I decided to find out the raw information and data regarding topic for that I discussed with Deputy manager of Indus Motors Company’s Dealer (Southern Motors), and Manager of Honda Atlas Dealer they have been provided me raw information regarding customers’ dealing because entire project based on Brand and Customers, although it is a key combination of loyalty. In other words, Satisfaction fulfillment + Customer =Brand loyalty. As discussion on Brand loyalty way of surviving both companies offer three key elements of Sales, Service and Spare Parts, base on these elements the research is based on interviews and questionnaire about brand loyalty of Toyota Corolla and Honda city Owners, as well as thanks for the technology that really curious, and helping out in finding of raw information which I visited to web sites of Indus Motors Company and Honda Atlas. In the light of entire project need to highlight some recommendation I found that in the light of brand loyalty Toyota Corolla and Honda City gaining more and more competitive advantage because it purely involved according to the Pakistan environment but Honda City has some weaknesses which Indus Motors Company has to keep on focusing in the customers’ point of view like The shape of car as customer perceive, Car interior of Honda City in black, mostly people of Pakistan do not much like, instead, as they admired by bright and light color. The Honda Atlas Company has to facilitate customers more than Indus Motors Company in term of addition of dealership, Make possible to facilitate customer by 3S, if possible, addition of 2S as well as they providing 2S service for other products. Indus Motors Company has to establish 2S for more facilitate the customers by this IMC may become a automobile market and as they achieved its brand loyalty IMC may need to focus on LVC, Trucks etc that will be its competitive edge as they make it in consumers’ mind for that they do no much nee to give awareness about its new product. Honda Atlas Company has to improve its quality sales, service because the brand loyalty is sustained by truth, fairness, good dealing, and friendly attachment with loyal customer. The demand of the Honda City is mainly sustain in market because of its fuel but side by side Honda Atlas Company has to improve its engine performance and over all performance as well because
some of respond about brand loyalty just goes to Toyota Corolla like in long distance because Honda City does not sustained its performance.
TABEL OF CONTNETS Acknowledgement Executive Summery
1. CHAPTER #1.................................................................................................................1 1.1 .a INTRODUCTION...........................................1 The Background of the Project:.........................2
.a Introduction of the organization’s business sector:.......................................................................................................................3 .a .a .a .a .a .a .a Indus Motors Company (IMC) Introduction:....5 Mission Statement of Indus Motors Company:.6 Vision statement of Indus Motors Company:....6 List of Competitors............................................7 Project Objective:..............................................7 Significance of the project:................................8 Project Proceeding:..........................................10
2. CHAPTER #2...............................................................................................................11 .a Marketing Objectives:.....................................11 Toyota Marketing Mix 4 P'S:..........................12 .a Structure of marketing department .................15
.a Marketing Functions of Indus Motors Company (IMC):.....................................................................................................................16 3. CHAPTER# 3...............................................................................................................18 Marketing Strategies:.........................................18 .a .a .d .a Market Segmentation strategies:.....................19 Target marketing strategies:.............................19 Product Planning and Development:...............21 Brand Positioning:...........................................22
.a .a 4. .a
Pricing Strategies:............................................23 Advertising and Promotion:.............................23 Distribution Strategies:....................................24 SWOT ANALYSIS OF INDUS MOTORS:....24
4. CHAPTER# 4...............................................................................................................27 a. .a .a Introduction of Competitor:.............................27 Honda Atlas Marketing Objective:..................28 Honda Atlas Marketing Mix:...........................29
.a Marketing Operations/ Function of Marketing Department:............................................................................................................32 .a .a .a .a MARKETING STRATEGIES:.......................35 Market Segmentation Strategy:.......................35 Target marketing strategy: ..............................36 Brand(s) positioning:.......................................37
.i Pricing Strategy:.....................................................................................................38 .a .a Advertising and Promotion:.............................38 Distribution strategies:.....................................39
5. CHAPTER# 5...............................................................................................................40 .a FEATURES OF TOYOTA COROLLA AND HONDA CITY .......................................................................................................40 .a Brand Loyalty of TOYOTA COROLLA:........40
.a Toyota Corolla Characteristics, Features and performance:...........................................................................................................41 .a Brand Loyalty of HONDA CITY:...................43
.a HONDA CITY Characteristics, Features and performance:...........................................................................................................44 .a Analysis of TOYOTA and HONDA Brand Loyalty:..................................................................................................................46 6. CHAPTER# 6...............................................................................................................46
.a .a 6.2.1 .1 .a .a .a .a
Data Collection Sources:.................................47 Data Collection Tools:.....................................47 Data Processing and Analysis....................48 Questionnaire Analysis....................................48 Interview analysis............................................57 Interview from IMC Dealer.............................57 Interview from HACPL Dealer.......................59 Summery..........................................................62
7. CHAPTER# 7...............................................................................................................65 .a CONCLUSION:..............................................65 Recommendation: ..............................................66 8. CHAPTER# 8...............................................................................................................67 .a .a Student Introduction:.......................................67 Appendices......................................................68 BIBLIOGRAPHY:.............................................77 .a INDEX.............................................................78
TABEL OF ILLUSTRATION Figure 1 Time of Repair..................................................................................................49 Figure 2 Association Of Luxury.....................................................................................50 Figure 3 Additional Benefit.............................................................................................51 Figure 4 Advise to Buy.....................................................................................................52 Figure 5 Company’s 3S Commitment............................................................................53 Figure 6 Factor Comparison...........................................................................................54 Figure 7 Technical enhancement Affects.......................................................................55 Figure 8 Factors of Perception.......................................................................................56 Figure 9 Production Capacity/sales of Produced car...................................................68 Figure 10 Sales analysis Comparison.............................................................................68 Figure 11 Market Share of 4 major players..................................................................69 Figure 12 Honda City Technical Specification: ............................................................69 Figure 133 Toyota Corolla Technical Specification: ....................................................71 Figure 14 Comparison by Technical Specification and Price: ...................................74
SECTION I 1. CHAPTER #1 1.1 INTRODUCTION
In the world trade, Automobile Sector is one of the largest segments. It is the major driver of economic growth and business activities. It puts multiplier impacts on the economy. Day-in, day-out around 200,000 vehicles roll off the world’s assembly lines with car as the dominant segment of the industry. The automobile sector has been registering high growth for the last four or five years due to the country's business friendly policies along with lower tariff rates, persistent growth in GDP, and per capita income. The automotive industry rightly prides itself on being recognized as the “mother of all industries.” In its folds it carries many different kinds of vehicles to provide mobility to people and goods. While they may appear to be simple machines, their design and manufacturing have much deeper roots in all the known technologies. In-depth knowledge and skillful application of mechanical, electrical, electronics, chemical and a host of other technologies culminate in achievement and improvement of the manufacturing base of a country, by focusing on a single product the automobile. This then provides an opportunity to produce a large number of goods and services for consumption of the entire international community. Use of the word “mother” for automotive industry is therefore the most appropriate description to define the nature and importance of the industry. Automotive industry in Pakistan started in 1950 and has gone through different phases1950’s (Private sector). 1960’s (Private sector). 1970’s (Nationalization). 1980’s onward (Privatization & entry of private sector). It is indeed heartening that the mother has once again smiled at Pakistan; fortunately the last 3 years have witnessed phenomenal growth in the industry in terms of technological advancements and production/sales volumes with the local contents rising as high as 90%. The industry is already employing 120,000 people; contributing more than 12 billion rupees to GDP, contributing more than Rs. 30 billion to the national exchequer in terms of duties and
taxes, attracted investment worth Rs. 52 billion including a substantial foreign investment. Today the customers have choice to pick from a wide range of products including motorcycles, trucks, buses and cars of premier Japanese and Korean brands at internationally competitive prices, which has only become possible due to local contents and availability of highly productive and inexpensive human resources. In Pakistan the automobile components manufacturing industry consists of mainly units producing original components for assembly under deletion program and units are producing reconditioned and original components for local use. There are more than 800 vendors in the country with a total investment of over eight billion rupees; they are engaged in the manufacturing of original components for the assembly operation under the deletion program as well as producing reconditioned and original components for sale in the local market. The models of Toyota Corolla and Honda City 1300cc car has been able to achieve the popularity level among car lovers in Pakistan as the company expected before its import, the companies source told that "The sales of Toyota Corolla and Honda City vehicle have Raised, Before introducing Toyota Corolla/ Honda City 1300cc cars, the Toyota company has completely vanished its most popular brand Corolla, and Honda vanished by Civic whose demand was up throughout the country. The demand for old Corolla cars is still moving up in the second-hand car markets. .a The Background of the Project: The background of the topic is to analyze Brand loyalty of Toyota Corolla and Honda City Cars that success in the Car Market. I will find out the reasons and factors those make them strengthen and Strong position in the market for that I decided to work on it. For that we must need to very closely and detailed overview of the company. Common perception about Toyota Corolla and Honda City is that both companies have been fulfilling the perceive value of the customer, the price paid is much reliable against the value, in my research work; I will identify how much strong these arguments? What the reason are
behind to successfully fulfill the perceived value of customer, what are the marketing success, is there any some other aspects or role to make more loyal customer. Toyota Corolla and Honda City fulfill the whole of the customer’s need as they want in every of aspect but customer had already mindset about the price of both different Brand that these cars providing luxurious, reliable, and durable Facilities which other Car manufacturer are not much able to provide at competitive price. Toyota Indus and Honda atlas has been producing luxurious car its time where as customer will be aware to the Toyota and Honda Car with reference to those brand, these brands penetrated in customer’s mind so Toyota and Honda has been getting a place in car market. .a Introduction of the organization’s business sector: Indus Motors Company (IMC) is the member of PAMA - Pakistan Automotive Manufacturers Association in which all automobile related business companies playing a vital role in the Association. The location of the PAMA - Pakistan Automotive Manufacturers Association is the 1st Floor, Block-C, Finance & Trade Centre, Shah-Rae- Faisal, Karachi. The PAMA objective is to promote progressive manufacture of automotive vehicles (cars, commercial vehicles, motorcycles, farm tractors) in the country. Toyota Motors produces an estimated eight million vehicles per year, about a million fewer than the number produced by General Motors (world largest automobile Company) The company dominates its home market, with about 40% of all new cars registered in 2004 being Toyotas. Toyota also has a large market share in both the United States and Europe. And Pakistan’s top class automobile company note it here somehow Suzuki company gain competitive advantage instead of other automobile companies in Pakistan due to cost leadership strategy and another major advantage is that they are producing 850cc car at economical cost means in Pakistan perspective, middle class people are now able to adopt auto at affordable price but if we talk about the 1300cc cars that is majority in Pakistan, brand loyalty advantage goes to Toyota corolla. It is the number one automobile company in Pakistan in producing 1300cc cars it has also significant market shares in several fast-growing South East Asian countries. This No. 1 company produces a large range of vehicles which are highly regarded for their
quality, engineering, and value; their designs set global standards for safety, reliability and ease of maintenance. The Indus Motors Company’s Philosophy "Do the right thing for the company, its employees, the customer and the society as a whole." The story of Toyota Motor Corporation began in September 1933 when Toyoda Automatic Loom created a new division devoted to the production of automobiles under the direction of the founder's son, Kiichiro Toyoda. Soon thereafter, the division produced its first Type A Engine in 1934, which was used in the first Model A1 passenger car in May 1935 and the G1 truck in August 1935. Production of the Model AA passenger car started in 1936. Although the Toyota Group is best known today for its cars, it is still in the textile business and still makes automatic looms (fully computerized, of course), and electric sewing machines which are available worldwide. The Toyota Corolla business Sector has been established in many aspects but in Pakistan they are doing business in automobile industry they are manufacturing many of vehicle like Cars, Jeeps, single cabin, double cabin, 2x4, 4x4, Hilux, Delux, Hiace and many others. Present Status: IMC on achieving the milestone of over 50,000 vehicle sales in the year 2007 and appreciated the company for increasing its production capacity to meet the demand for its vehicles. Toyota's ongoing commitment and support to IMC for further expanding production facilities and acknowledged the efforts of the Indus Team for continuously improving their skills and their efforts for building quality cars. Indus Motors Company has been impressive 1400 sq meters Training Center, which will provide core trainings as well as multi-skill development. Cumulatively, since inception, over a million men-hours of training had been done by Indus to enhance the capabilities of its team. Indus Motors company also inaugurated the modern, state of the art, Vehicle Display Center at MakroHabib on Shah-Rae-Faisal, Karachi, which will display top of the range Toyota vehicles
The sales and production of Indus Motor’s Toyota and Daihatsu brands for the year ended June 30, 2008 were 50,802 units and 48,222 units respectively which is a new record compared to last year’s figures of 50,557 units and 47,821 units respectively. The company’s sales revenue increased to Rs 41 billion, up 6% over Rs. 39 billion; with the after tax profit of Rs 2.3 billion, as compared to Rs 2.7 billion achieved during the year ended June 30, 2007. Earnings per share decreased to Rs 29.15, as compared to Rs. 34.93 in the previous year. Nationwide sales of locally assembled passenger cars and light commercial vehicles (LCV) that had previously grown continuously over the last five years declined by 8% to 187,412 units from 204,212 units sold in 2006-07. Production in the industry also declined to 187,644 units for the period ended June 30, 08, down 5.7% over 198,986 units last year. Although there has been a decrease in the import of used cars from 28,493 units in 2006-07 to 13,145 units in 2007-08, they still continue to impede growth of the auto industry. The impact of political uncertainty compounded with a general slow down in the economic environment resulting from rising interest rates, limited credit availability for auto financing, depreciation of the Pak Rupee against major currencies, unprecedented rise in prices of oil, steel and other inputs, inflation, etc impacted the demand negatively. The Board of Directors appreciated the Company’s performance and declared a final cash dividend of Rs 6.5 per share, making for a total of Rs 10.5 per share during the year. The total dividend paid for the same period last year was Rs 13 per share. Indus Motor has requested the government to take note of the recommendations made by the Pakistan Automobile Manufacturers Association to accelerate growth of the local industry and withdraw the 5% Federal Excise Duty and increase of 1% Sales Tax, amongst other measures. .a Indus Motors Company (IMC) Introduction: IMC's production facilities are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres. Indus Motor Company’s plant is the only manufacturing site in the world where both Toyota and Daihatsu brands are being manufactured. Heavy investment was made to build its production facilities based on state of art technologies. To
ensure highest level of productivity world-renowned Toyota Production Systems are implemented. IMC's Product line includes 6 variants of the newly introduced Toyota Corolla, Toyota Hilux Single Cabin 4x2 and 4 versions of Daihatsu Cuore. We also have a wide range of imported vehicles. IMC will achieve the milestone of over 100,000 vehicle sales in the year 2000 and company has been appreciated for increasing its last year production capacity to met the demand for its vehicles. Toyota has been ongoing commitment and support to IMC for further expanding production facilities and acknowledged the efforts of the Indus Team for continuously improving their skills and their efforts for building quality cars. Indus Motor Company (IMC) is a joint venture between the House of Habib, Toyota Motor Corporation Japan (TMC), and Toyota Tsusho Corporation Japan (TTC) for assembling, progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01, 1990. IMC is engaged in sole distributorship of Toyota and Daihatsu Motor Company Ltd. vehicles in Pakistan through its dealership network. The company was incorporated in Pakistan as a public limited company in December 1989 and started commercial production in May 1993. The shares of company are quoted on the stock exchanges of Pakistan. Toyota Motor Corporation and Toyota Tsusho Corporation have 25 % stake in the company equity. The majority shareholder is the House of Habib. Also,. .a Mission Statement of Indus Motors Company: "IMC’s Vision is to be the most respected and successful enterprise, delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology". .a Vision statement of Indus Motors Company: Mission of Toyota is to provide safe & sound journey. Toyota is developing various new technologies from the perspective of energy saving and diversifying energy sources. Environment has been first and most important issue in priorities of Toyota and working toward creating a prosperous society and clean world.
.a List of Competitors Why Competition is involved In Business? This era is the name of gain Tremendous success and those may gain success who have well worth characteristics, in the way of business sector, the competition is the hurdle or benefit in either condition for every firm and firms wants to gain high profitability, more loyal customers, high market shares, and many more other factors they want to achieve the goal for that they always try to apply different competitive strategies to gain loyal customers because the loyal customers are the profit of any organization. List of Competitors: Here is the list of competitors regarding Pakistani environment and my target companies also apart of this competition so these competitors are listed below: 1. Indus Motors (Toyota) 2. Honda Atlas 3. Pak Suzuki 4. Dewan Motors 5. Nissan Ghandhara 6. Other China Brand Competitors
These are the top listed companies those are the competitors of each others. Most top of the list in competition are Toyota, Honda and Suzuki. These three companies respectively market share in the market some competitive advantages gain by third one company like Pak Suzuki producing 800cc cars, in Pakistan automobile market. .a Project Objective: The research objective is to analysis between the Honda City and Toyota Corolla we know that the Toyota corolla and Honda City are very close and highly competitors of each other means perfect competitors, both are moving towards the bright future and achieve more and more success in market for this purpose. The objective of this research is:
• • • • • • •
To be aware of existing product, Toyota Corolla and Honda City of companies and to get a clear picture of prevalent automobile industry in Pakistan. To distinguish between Toyota Corolla and Honda City, as to persuade the client with the most suitable vehicle for him To understand the facts and reasons require to be kept in mind while customer choosing Toyota Corolla or Honda City in its decision. To identify proper prospect for selling a vehicle to customer To understand the responsibility of a sales service and spare parts teams while working for the company To understand the Brand position in customers’ mind and perception about the brand. To understand the factors of Toyota and Honda Company has been achieving success in Pakistan automobile industries. This will help me understanding the customers’ attractiveness by brand loyalty of Toyota Corolla and Honda City.
Understanding the businesses of Indus Motors Company (IMC) and Honda Atlas Pakistan Company Limited (HACPL) companies and familiarize with the companies in Pakistan.
These above objectives will help and make us understand in the analyzing of customer loyalty also will give us answer that what are the reasons that both are perfect Competitors of each other also which factors are strength and success reason of the Toyota Corolla and Honda City we have to understand the image of brand in consumer’s mind. Our analysis point out the some reason, when we will done Questionnaire and interview to the Car owners and Dealers than it will possible to find out the mentality. .a Significance of the project: According to assigned Project “Brand Loyalty comparison of Honda City and Toyota Corolla” it will be most helpful for us in many ways because we all do not much know about background of the success of Toyota Corolla and Honda City cars and all of those factors which might not be aware about the any of one selected brand, just like technical specification, I would like to explain it in some aspects that make you understand about significance of this project.
When I have been starting this project I feel like it is interesting and very important to get knowledge and finding of my question that. Why people are like to drive Toyota Corolla or Honda City? What are they think about this brand (Corolla or Honda)? What are they perceive by it? When I started got information and did deep research on it I find the answer that it’s the “Brand loyalty”. This project makes me understand about the Toyota Corolla and Honda City’s brand loyalty comparison. In the eye of Brand conscious customers, this category is most critical part of any organization in term of customers’ perception about the brand, this category of customers are not willing to compromise in those perception just because of brand positioning, suppose if a loyal customer like to drive a Honda City Car but lake of information about the Toyota Corolla, he/she might not be like to drive Toyota Corolla and vice versa. So this research Report will provide current and solid information for brand conscious customers, After reading of this project the person must become well aware about the Toyota corolla and Honda City brand, not this he/ she easily differentiate between both brands Some people who willing to buy a luxurious car but they getting confused to buy Toyota corolla or Honda City and they looks at the Toyota Corolla and Honda City in equal eye, they think that both cars are same feature, quality, reliability, performance and other features, here is just difference in a brand. so, this project will be a guideline for this category of people, it will help them to measure the about the brand then they will feel confidence to buy Toyota Corolla or Honda City. This project also very helpful for both companies to keep focusing on those brands, this era is based on tremendous competition and those company has been existing in business who have ability to compete, for that they must have to know about those brand perception and also need to consider those brand strengths and weaknesses in customers’ mind. So this project also provides a good opportunity for both companies to consider its repotition and understand which factors they are now come to know. This project is endless to written on it but key factor as I mentioned above are most important parts. My project will helpful for those people who want to know about these brands because Toyota Corolla and Honda City have a perfect competition in Pakistani automobile market.
.a Project Proceeding: Due to limited time the research on TOYOTA COROLLA and HONDA CITY will be conducted in Karachi only. I have been working approximately for 2 month of time period. As the research will be conducted during the figures and assumptions quoted in this research report will only be applicable for this period of two months. This Project will divided into three section, each section will provide appropriate data for us in the first section we will discuss till Indus Company after that we will put the light on the next segment for comparison Honda Atlas, in the third session we will discuss in detail about company ways of attracting customers in this section we will talk about the attractive points in both aspects then in the same direction we will analyze our discussion the final stage. The project is based on to find out the key success factor of the Toyota Corolla and Honda City. If I compare Toyota that manufacturing 1300cc cars in other hand the Atlas Honda also has been manufacturing of 1300cc both have approximate same price level, both companies are Japanese company but what the competitive advantage goes to Toyota. My project target is the Toyota corolla and Honda city. So my focus is to find out the Brand loyalty of Toyota corolla that in which aspect Toyota corolla gain Market share in competitive market.
2. CHAPTER #2. .a Marketing Objectives: Indus Motors Company always keeps in mind the vision and mission and it is to be most respected and successful automobile company, delighting customers, Make possibility of providing with a wide range of products and solutions in the automobile industry with the best people and the best technology in this way the IMC showing its bright picture in the way which they achieve customer loyalty it is the key success of the Indus Motors Company. The Indus Motors Company’s marketing objective before setting, the Indus Motors Company must decide on its strategy for the product. Company has been selecting always its target market and positioning carefully, then its marketing mix strategy, including price, will be fairly straightforward. Pricing strategy is largely determined by decisions on market positioning. At the same time, the company seeks additional objectives. The clearer a firm is about its objectives, the easier it is to set price. Some of common objectives are survival, current profit maximization, market share leadership, and product quality leadership. The company’s products renowned for their quality, durability, safety, fuel economy, resale value, and style, are admired by the customers in Pakistan. There has been an unprecedented demand for the Corolla that has broken all previous records. The Indus Motors Company (IMC) decided to achieve Product Quality Leadership. This normally calls for charging a high price to cover higher performance quality and the high cost of R&D. A company might also use price to attain other, more specific objectives. It can set prices low to prevent competition from entering the market or set prices at competitors' levels to stabilize the market but most of the time they follow those own pricing strategy in which they imply both strategy’s combination. In that point of view the price can be set to keep the loyalty and support of resellers or to avoid government intervention. Toyota Corolla may be priced to help the sales of other products in the company's line. Thus, pricing also play an important role in helping to accomplish the company's objectives at many levels.
2.2 Implication of Toyota Motors Marketing Mix: Indus Motors Company (IMC) as second largest company in Pakistan, we must need to understand the implication of marketing mix because as much as any company gain competitive achievement in market, same direction company has face more difficulty to more grow up business and to maintain sustainability. So the companies have to very careful about the strategies in every aspect so in term of Indus Motors Company, All strategies followed by Toyota Motors Corporation. Toyota Motors Corporation Deal with in international level, Indus motors Corporation deal partially national level and dealers deal with in country regional level so the marketing mix strategy may vary country to country even regional wise. So in the aspect of Pakistan the Indus motors authorized to dealers that they may employ marketing mix strategy that should effective for regional environment. 2.2 Toyota Marketing Mix 4 P'S:
Indus Motors Company comes up with a strategy to figure out which strategy is best for them given the objectives and resources. They must also consider the strengths and weaknesses of the company as well as opportunities and threats. To enhance the aptitude of the companies, a marketing strategy is introduced. The marketing strategy will create lucrative marketing mixes for defined target markets. The marketing mix is composed of four key elements to execute or examine for marketing campaigns. The chief goal of the marketing committee is to optimize the marketing mix. Marketers may enhance their outcomes and marketing value by implementing the right combination of the four P’s. Discrete alterations made to the marketing mix are looked at as tactical changes, while rendering huge changes to it can be considered strategic. The “Four P’s” of marketing are: product, price, placement, and promotion. Toyota marketing Mix elements fulfill the requirement if we target the most of the important Four P’s of marketing mix in Toyota company aspect we will much easily understand and get success to determine bright picture about Toyota Corolla customer loyalty because these four elements are the basic fundamental of any successful firm. These four elements (Product Price, Palace, and Promotion) are implying here simultaneously:
Product: The Toyota corolla has been achieving success in term of brand since 1970 in Pakistan when the Toyota corolla were not manufactured in Pakistan but at the import basis this brand very tremendously took palace in the Pakistan auto market. The most famous models was Corolla 1976, 1978, 1986 and many list of the yearly series of the models that still consider as powerful and memorable brand. Toyota Corolla assembling, progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01, 1990. Through the gaining advantage of prepared loyal customers before starting production of Toyota corolla brand in the Pakistan they did not need to much hard struggle to give awareness and make customers because the customers already well known about the product as compare to other companies. Toyota Corolla is well standardize product in the market and its current products are XLI, GLI, 2.OD, and ALTIS Cruisetronic in each of the product they providing features, reliability and upgrading to make more loyal customer and providing more satisfaction to customers . PRICE: Toyota has become an attraction in the eyes of many auto consumers worldwide. Toyota has built its reputation not only by producing high quality vehicles at affordable prices, but the brand and marketing skills they use through tactful pricing strategies. Toyota has differentiated their prices from the traditional pricing set up of many of the other automobile makers. However, it is their effectiveness in targeting consumers' needs and wants that has pushed them to the top. Toyota believes the role of purchasing is through long term and stable production of quality products at the lowest price in a fast and timely manner. The main objective of administering prices within any company in the automobile industry is profitability and to consistently increase efficiency in their product line. Toyota takes on slightly different approach for pricing strategy with a sale - oriented objective. Although the variables are the same, the formula is adjusted strategically into the selling price - cost = profit. Indus Motors Company believes that its markets and consumers is what determine the selling price. Waste elimination is given top priority which reduces cost and by continuously reducing these types of costs, it will result in persevering the company's profit growth.
Physical Distribution/ Place: Palace is another important element to keep focus very carefully. Toyota corolla as Well Established and well known in over all world the one factor of that reason is that they apply strategy with authentication and Very genuinely. The Toyota Indus have approximately Twenty Eight dealers in over all Pakistan and Seven Dealers existing in Karachi they Distributed in four dimension namely Eastern Motors, Western Motors, Northern Motors, and Southern Motors and other three Dealers are engaged in different location each Zone partially cover whole of the Karachi. This competitive advantage goes to the Toyota Indus Motors regarding place because in the Pakistan they have largest range of Dealership. It is apart of the marketing strategy which they want to keep close to customers and try to over come the distance between them and customers they also try to make product more conveniently available for customer. Promotion: Promotion is the next most important element of marketing mix without this element marketing mix may never completed not only this the business can affected just because of this arena. Indus Motors Company has been applying promotion strategies in many ways, by ads, Giant Billboards at Bypass and super highway, Sponsors in Games, participation in exhibitions, Display centers, Display in big Public market (as Indus Motors Company did in Pak Tower three year later which they display by new trend that the car was in space that was a unique way of promotion), The Development of top quality logo and photography which can be used in ads, brochures, name cards, etc. Toyota also Taking advantage through advancement of technology in which, they promote via emails, web banners on famous and expensive sites of internet, etc, Participate as a part of Pakistani society in this aspects open institutes, establish Hospitals, social walk and many aspect which Indus motors company contribute shoulder to shoulder in these social activities also give support to Indus Motors to promote its Product. The aim is to make a place in customers’ mind that they are being with them. Indus Motors participate in maximum tools of promotion as some mentioned above because Indus motors believed that provide more and more information to customers to achieve attractiveness.
.a Structure of marketing department
Structure of Marketing Department
Assistant Sales executive
Assistant Sales executive Assistant Sales executive
Assistant Sales executive
Assistant Sales executive
Assistant Sales executive
Senior Sales Executive
Senior Sales Executive
Junior Sales Executive
Junior Sales Executive
.a Marketing Functions of Indus Motors Company (IMC): We know that Marketing Department is the very essential tool and it excellent essence of any business same as this strategy imply by Toyota company to its authorized Dealer in the light of customer brand loyalty my concern will deal with dealers and customers it is the target of the project. As above I have shown the structure of the Indus motors’ authorized dealer (regarding to my target dealer Toyota Southern motors). Sales, Service and Spare Parts all from the same facility Toyota Southern Motor compares to the Total Quality Management style of Toyota Indus Motors. Toyota's TQM characteristics will be compared to the characteristics of Southern Motor, and the differences between the two companies will be discussed. Finally, this function will address how Toyota's TQM practices could have been integrated into Southern Motor and how applying these principles could have saved the business. Toyota's corporate philosophy revolves around customer satisfaction, which is symbolized ed in the 3S Concept. Toyota is the Pioneer in the 3S System, which offers Sales, Service and Spare Parts all from the same facility. Sales Facilities: Indus motors imply on its dealers that make facilitate customer to buy the product for that Indus Motors Company given the dealership authority approximately Twenty eight in all over the Pakistan. Note that it is the highest number of dealers regarding automobile sector just in the ,Karachi city Indus motors Company has 8 dealer main and big dealers are Eastern motors, Western motors, Northern Motors, Southern Motors All of the Sales strategies followed by Indus motors itself and it is directly involve as well time by time Indus motors intelligence keep an eye on this sector to monitor the sales activities not only this the some time Indus motors’ intelligence conduct interview with customer This strategy namely say “Quality Sales” . One of the parts of Indus Motors Company is to facilitate its loyal customer and overcome customer’s ambiguity, buying conflict and provide them maximum information before purchase. The Indus Motors Company is very conscious in sales as well Customer Satisfaction.
Service Facilities: Indus Motors Company believed that customers are the key of success just need to analyze that factor which they can utilize that key. Service is another Key element of the Indus Motors Company off course, customer service is one of the part of service in which they get engage with the customer to provide them service related to product. The service may be provide maximum information, problem solution regarding product, remove irritation etc. some of the key factor they always keep in mind about customer care that they Keep Constant Communication with Customers, always Respond Quickly to their Needs, give them Satisfaction not only on product but also on other aspects, immediately Compensate for Loss, Make Products Available for customer, support and Render Advice, Boost customer and as well as Product Confidence, Give Special Attention and listen very carefully, always Protect Customers Rights, Maintain big standards of Cleanliness, Hygiene and Smoothness and as they are looks original in reality, one of the most important part is that they Make Customers Part of the Organization. Indus Motors, 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. Southern motors consider purchase of car as the beginning of relations with customers. Spare Parts: Indus Motors Company has been providing the next Best Facility to its customer of availability of spare parts. Indus motors provide the facility of Genuine part just from Indus motors’ authorized dealers with that they provide the guarantee of that spare part other wise in local market Toyota is not providing genuine part so it is also an assurance or customer loyalty that they can buy genuine spare parts only from authorized dealers Toyota Indus motors provide range of warranty on spare parts some of Toyota dealers offering interesting attraction like” you buy, we fit it” means Buy Toyota genuine parts from Toyota dealers and enjoy 6-8 month's Toyota Warranty, contribute to high moral and enjoy the satisfaction of using 100% genuine Toyota Parts.
3. CHAPTER# 3 Marketing Strategies: It is important to the marketing strategy to develop an attractive image to the trade. This can be done in a number of ways: 1. Advertising. Toyota Motors suggested Indus Motors Company as the best place to advertise. In the regional telephone directory Yellow Pages two classification are possible: Auto Restoration--Antique & Classic, or Auto Body Repair & Paint. These two publications both have directories. In local Newspapers, a color 1/4 page ad would run per quarter year and a quarter page ad in the Yellow Pages runs every month. 2. Join The Chamber of Commerce. The image of Toyota Corolla restorations would be elevated by joining the Chamber of Commerce. This would low cost per year. Advertising on their electronic sign alongside the Interstate at present the sign would give 100 impressions per day to the Indus Motors Company. We expect this to increase Toyota Corolla's income by about 12% during that 90-day period. 3. Advertising. Development of a top quality logo and photography which can be used in ads, brochures, name cards, etc. Not counting printing costs, which vary by quantity and quality of paper chosen, 4. Participation in Car Shows. Another image-building marketing tactic is participating in local car shows. These car shows are held just for the fun of it. This would require time and effort, but not much in the way of money. This should be coordinated to insure compatibility with the show's concept and our image. So every dealer should have to make it possible in that area with the coordinate to other one Toyota Corolla dealer. a photo album can never compete with the real hardware. In addition to the above-mentioned activities designed to elevate the company's image, it is essential to market directly to the selected target clients who all go to local car shows. Success in making inroads into these names would set the stage for entry into the more prestigious auto restorer’s guild.
Marketing these prime prospects must be carried out in a thoughtful organized way. Color literature including the newly designed logo should be completed as a first step. When marketing these prospects it will be important to present a portfolio of Toyota Corolla’s most innovative work. A relaxed face-to-face meeting, resulting in good communication between Toyota Corolla and the project car's owners, should be all that's needed to generate a first order. .a Market Segmentation strategies: The market for auto restoration reflects the buyer's income bracket and standard of living in much the same way that the restoration market is segmented. Below are listed market segments based on size of pocketbook and quality of production: 1. Material Outlets. Suppliers of auto body and paint supplies, interior supplies and mechanical parts. 2. Simple jobs. Simple repair jobs and service are the next level in IMC sales chain. 3. Paint. Custom paint work such as murals and flames will provide some income. 4. Restoration. Complete restoration jobs, and complete paint work. 5. Custom Work. Custom body work such as, top chops and channels, this would be considered IMC’s high end of work. The average age of our customers is 30 to 65 years old with an average income is up to 600000 per annum, with most full restoration customers having incomes of over 60,000. The gender is predominantly male, with a college education. Some of the more recent trends come from the increasing coverage of IMC on television, with shows such exhibition, display centers, public displays etc. 3 years ago IMC did exhibition in Karachi which display car were hanging in space that was really watch able and people were attracted to see. These types of shows have helped auto restoration to grow to a billion Rupees a year industry in the Pakistan. .a Target marketing strategies: Indus Motors Company’s target market segment strategy includes the use of local radio, local famous newspapers i.e. Daily Jang, the News, Dawn newspaper, magazines, billboards,
and television stations to convey the word about its business. These publications are distributed to a wide variety of people who are all interested to buy Toyota Corolla cars, and other Toyota cars. IMC strategy includes using people's emotions to persuade them to use a Toyota Corolla. IMC does not limited to just a couple of different types of advertising, they also use press releases and magazine articles. IMC’s website, which is a well designed, and cost effective way to tell people about them and those authorized Dealers overall the Pakistan and it's services, IMC use every way within it's means to convey its message to the public. IMC’s market strategy is to flood the magazines and newspapers with its advertisements, doing newspaper ads for news lovers to enjoy during morning and afternoon free times. This is due to the fact that more people attract to the paper during these time frames, so IMC has a really catchy ad during these time it's probable that IMC will gain some customers from it. The magazine publications go out to hundreds of thousands of people every month, so all we need is to convert a small percentage to sales and we'll achieve our success. But we don't stop there; IMC is also joining the chamber of commerce to network its business. And sometime IMC used to flyers at the car shows to promote or company, and of course business cards. The customers who Toyota Corolla plans to target: 1. Quality full Custom services or restoration, including engine, custom body work and paint. 2. Timely completion of the work on their cars. 3. Competitive rates. 4. Close attention to detail, and commitment to quality. 5. Ability to offer ideas for alternatives and close customer services. Toyota Corolla has the ability to meet all these demands. The Indus Motors Company has a long work history in this field, and has extremely high standards in regards to the company’s work. The Toyota motors will make sure that the Indus Motors company employees and dealers meet these standards. The IMC also understands that, not only quality work, but the attention and care bestowed on the customer and their cars will result in a good reputation.
.d Product Planning and Development: Product Planning: Consistent product diversification and product improvements also helped Indus Motor Company strengthen its market leadership position, with market share rising sharply from 41% to 57% in the 1300cc and above segments in which Corolla competes with other major brands. Hilux, in the Light Commercial vehicle range, continued to maintain over 90% market share. Toyota Corolla brand management is based on “Brand Guidelines,” which describe the profile and differentiating criteria of each individual brand. The guidelines are being expanded to include regulations for sharing components by business units and the importance of such a strategy to the brands. Market success in the future will increasingly depend on Toyota Corolla ability to maintain each brand’s own specific character. Indus motors company therefore working intensively on strengthening the brand-related attributes that influence the design of the products and the values associated with each particular brand. Toyota Motors brand portfolio gives Indus motors of tremendous ability to offer attractive products in all segments and to all customer groups in Pakistan. Product Development: One of the reasons for the elusiveness of Toyota secret for success is that there is no single secret pulling it all together. Toyota’s success comes from hard work excellent engineers a culture of teamwork an optimized process simple but powerful tool that work and kaizen that improves improve and improve on all if these. In short, it is a truly lean system that continually evolves. Toyota process development has been evolving as a living system to fit its unique environment for many years. The Toyota Product Development system model has three primary subsystems: 1. process 2. People 3. Tool and technology in a lean Product Development system model these three subsystems are interrelated and interdependent and affect an organization ability to achieve its external
The Product Development strategy based on these Principles: Principle 1: establish customer defined value to separate value added activity from waste Principle 2: maximum design space to explore alternative solutions thoroughly Principle 3: create a leveled pd process flow Principle 4: utilize rigorous standardization to reduce variation and create flexibility. Principle 5: develop a chief engineer system to integrate development from start to finish Principle 6: organize to balance functional expertise and cross-functional integration Principle 7: develop towering technical competence in all engineers Principle 8: fully integrate supplies into the pd system Principle 9: build in learning and continuous improvement Principle 10: build a culture to support excellence and relentless improvement Principle 11: adapt technology to fit your people and process Principle 12: align your organization through simple, visual communications Principle 13: uses powerful tools for standardization and organization learning. .a Brand Positioning: According to Indus motors Brand positioning Strategy brand is based on provide quality products for customer satisfaction Indus motors always keep in mind the needs and wants of customers, they always think by customers’ point of view. Toyota Corolla has continue been offer the quality and value for which the brand has long been known. In style and substance, the Corolla has a strong, new identity, all its own. It will be far more than merely the nextgeneration Corolla and will position itself perfectly above our entry-level and below our sales leader. Toyota Corolla positioned its brand in many aspect the theme is not only sales of product Rather quality sales, the difference in Sales and Quality Sales. in simple words, a sale that done through well set standard format set by company in which give fair value to customer, avoid ambiguity, irretentiveness, provide full level of information, deal must based on make long term relationship not deal by selling product and many more characteristics involved in selling by quality sales. Only sales aspect mostly focused on just seles and generates profit of
company at any cost, it is not an effective strategy to make customers for long lasting rather the brand position may be damaged. The difference in sales and quality sales shown that quality sales is makes the position in customers’ mind and the target to make loyal customer. The Quality sales gives confidence to customer, brand image is exist and survive in customers’ trustworthiness on company. Indus Motors Company is very conscious to maintain Brand loyalty in customers mind. Above three factors are playing a vital role in maintain brand position in customers’ mind. Toyota Corolla has been positioning by some other related specification and technical aspects, according to this, the car is available in five model trim levels including Standard, LE, XLE, S, and the XRS. Two powertrain options are available for all models. We will discuss in detail when we compare Toyota Corolla and Honda City features differentiation. .a Pricing Strategies: Indus motors company has a mission to give good quality (Toyota corolla as it is our target) cars, achieve price-quality leadership overall the Pakistan. The pricing strategy is as they targeted that Cost + Profit = Price. IMC is very crucial in this aspect as well because as the standard of quality they do not perceive to give burden of high price at customer or IMC does not low or below the price as they producing Quality car and value as customer perceive in this aspect. .a Advertising and Promotion: Indus Motors Company (IMC) has a modest program of marketing its services that include the following: • • • • • Newspaper and magazines ads Press releases and magazines articles Car shows Website Calendars
Each of these marketing approaches has the advantage of being low cost and creating service awareness. The company is also makes possible of having a grand opening program that would sponsorship, charity, social walk, donations, exhibition, functions, display in the large market (i.e. few month ago did advertise in Pak Tower Karachi) and other promotional ideas. IMC feel that the company website is one of our best marketing strategies. It is linked to top listed web sites like Google.com and many other classic car restoration oriented websites and portals. The site has news about IMC business, answers to FAQ's and pictures of cars restored and the process of the restoration. 4. Distribution Strategies: There is no specific demographical location for potential customers. Indus motors are located all over the Pakistan. They send their cars to whom and where they feel will do the best job, based on reputation not only this IMC providing the opportunity to customer that they can buy the Toyota corolla from authorized Dealers. These dealers are located in over all Pakistan to facilitate the customers in Karachi city IMC’s almost Seven Dealers are engaged with customers. In location aspect the aim of IMC is to make product possible in reach of customers so this reputation comes largely from "value of customer". This will not only increase the number of potential customers for Indus Motors Company in the leadership phase, also have been providing a valuable word-of-mouth reputation for them. .a SWOT ANALYSIS OF INDUS MOTORS: Strength: Investment by Toyota factory in Pakistan profits tremendously rise against the other competitors in motor industry trend. Net profits rose 0.8% to 1.17 trillion yen ($11bn; £5.85bn), while sales were 7.3% higher at 18.55 trillion yen. Commentators argue that this is because the company has the right mix of products for the markets that it serves. This is an example of much focused segmentation, targeting and positioning in a number of countries. In 2003 Toyota knocked its rivals Ford into third spot, to become the World's second largest carmaker with 6.78 million units. The company is still behind rivals General Motors with 8.59 million units in the same period. Its strong industry position is based upon a number of
factors including a diversified product range, highly targeted marketing and a commitment to lean manufacturing and quality. The company makes a large range of vehicles for both private customers and commercial organizations, from Hiace. The company uses marketing techniques to identify and satisfy customer needs. Its brand is a household name. The company also maximizes profit through efficient manufacturing approaches (e.g. Total Quality Management). Weaknesses: Being big has its own problems. The Pakistan market for cars is in a condition of over supply and so car manufacturers need to make sure that it is their models that consumers want. Toyota markets most of its products in the all over the Pakistan. Therefore it is exposed to fluctuating economic and political conditions this markets. Movements in exchange rates could see the already narrow margins in the car market being reduced. The company needs to keep producing cars in order to retain its operational efficiency. Car plants represent a huge investment in expensive fixed costs, as well as the high costs of training and retaining labour. So if the car market experiences a down turn, the company could see over capacity. If on the other hand the car market experiences an upturn, then the company may miss out on potential sales due to under capacity i.e. it takes time to accommodate. This is a typical problem with high volume car manufacturing.
Opportunities: Honda and Toyota now have a reputation for manufacturing environmentally friendly vehicles. Honda has City hybrid, and Toyota has Corolla. Both are based upon advance technologies developed by the organization. Rocketing oil prices have seen sales of the new hybrid vehicles increase. Toyota has also sold on its technology to other motor manufacturers; such moves can only firm up Toyota's interest and investment in hybrid R&D.
Product recalls are always a problem for vehicle manufacturers. In 2005 the company had to recall 88000 private and commercial sports utility vehicles due to faulty front suspension systems. Indus Motors did not give details of how much the recall would cost. The majority of affected vehicles were sold in the Karachi while the rest were sold in overall other cities of Pakistan. As with any car manufacturer, Indus Motors faces tremendous competitive rivalry in the Pakistan car market. Competition is increasing almost daily, with new entrants coming into the market from within the Pakistan like China. The company is also exposed to any movement in the price of raw materials such as rubber, steel and fuel.
4. CHAPTER# 4 a. Introduction of Competitor: Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company Limited Japan, and the Atlas Group of Companies, Pakistan. 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. 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. The Dealerships Network has expanded and now the company has sixteen 3S (Sales, Service and Spare Parts) Pit stops network in all major cities of Pakistan. Since the commencement of production in 1994, the company has produced and sold more than 150,000 cars till Oct, 2008.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. the statement of Honda atlas “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 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. Currently we are offering Eight different models of Honda CIVIC and CITY cars in wide range of colors with unique technological and other features.
Company Performance: The Company earned Profit before tax of Rs.55.2 million as against Rs.30.9 million in the same period last year. This was possible due to control on overheads, among others. The administrative and selling expenses remained constant at 1.9% of total sales. The other income increased from Rs. 36.6 million to Rs. 55.2 million including from higher return on the bank deposits. Since the last year, the company focused to improve liquidity through reduced short term and long term loans which resulted in Rs. 0.5 billion at the end of the quarter as against Rs. 2 billion in June, last year. This positive result was in spite of the reduced sales at Rs. 3,706.6 million during the quarter ended June 2008 against Rs. 4,535.6 million in the same quarter last year, and the reduced gross profit to Rs. 94.5 million from last year’s Rs. 156.7 million - due to increase in material cost and depreciation of currency. We look forward to improved results, quarter after quarter, due to traditional Honda approach - Quality, Cost, Delivery and Management - QCDM. Your company is constantly in process of re-evaluating its products and processes. Relying on its international resource of R&D and global experience, the Honda product line up is in a constant process of evolution. Honda is proud to have introduced pioneering products in Pakistan. We will continue our tradition of innovativeness and offer our valued customer global technology and quality, year after year. Vision: Market leader in the motorcycle industry, emerging as a globally competitive centre of production and exports. Mission: A dynamic, profitable and growth oriented company through market leadership, maximizing export and excellence in quality and service; to ensure attractive returns to equity holders; reward employees according to their ability and performance; to foster a network of researchers and engineers ensuing unique contributions to the development of the industry; customer satisfaction and protection of the environment by producing emission friendly green products and to remain a good corporate citizen fulfilling its social responsibilities in all respects. .a Honda Atlas Marketing Objective: Honda Atlas Pakistan Limited as well established automobile companies in Pakistan they always keep focus on that mission and vision in the same direction HACPL does target of
goal achievement. The standard of the HACPL according to marketing is very high, as Honda atlas and Indus motors are Japanese companies, those marketing strategy approximately same. HAPL existence and central point of Honda Atlas to sell dream Car because in Honda point of view “Power of Dreams” itself attracting the customer for that need to build unique product it will sell themselves. Somehow, HACPL has similar marketing objective to Indus motors company both companies have been targeting in terms of provide satisfied customer service, make possible to keep in reach the product, strive to give outstanding service to 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 both companies customers’ absolute confidence in those cars, clearly evident from the ever increasing sale volumes. Although Honda atlas has a selling advantage of other product line in which generators and vacuum cleaner in Pakistan perspective. In the constant endeavor of Honda Atlas and Indus motors company to achieve No .1 Customer satisfactions with respect to loyalty of brand. Honda Atlas and Indus Motors Company have been committed to meet customer expectations, and to provide good value for money. .a Honda Atlas Marketing Mix: Marketing mix elements or 4p’s strategy of marketing is the essence of any business same like this strategy of marketing mix apply in top listed automobile company overall the world Honda atlas these key elements of marketing mix make the difference between Honda atlas and Indus Motors Company in this aspect Honda atlas also comes up with a strategy to figure out which strategy is best for them given the objectives and resources. They must also consider the strengths and weaknesses of the company as well as opportunities and threats. To enhance the aptitude of the companies, a marketing mix strategy is introduced. The marketing strategy will create lucrative marketing mixes for defined target markets. As we know the marketing mix is composed of four key elements to execute or examine for marketing campaigns. Honda atlas has been enhancing their outcomes and marketing value by implementing the right combination of the four P’s. But in Pakistan aspect the marketing
mix strategy different to Indus Motors Company. The “Four P’s” of marketing are: product, price, placement, and promotion. Toyota Indus Motors Company marketing Mix elements almost fulfill the requirement Four P’s of marketing mix but Honda atlas is much below as compare to Toyota Company. In marketing Mix aspect we will discuss little awhile about 4p’s, then it will be much easily understandable and analyze that what factor make the difference between both companies? Also which one company has been getting success as compare to other one? These identifications will make a bright picture for analysis about Indus Motors Company and Honda Atlas Company. Customer loyalty exists because of these four elements and these elements are the basic fundamental of success. These four elements (Product Price, Palace, and Promotion) Company: Product: Honda Atlas has competitive edge to Indus Motors Company in term of product line. The Indus Motors Company has been producing and doing business of vehicle in Pakistan but Honda Atlas has been producing wide variety of product. Honda Atlas’ product line is divided by manufacturing of bikes, generators, Water pumps, brush cutters, petrol engines. These all product are in number of series like in bikes series they manufacturing Honda CDI70, Honda CD100, Honda CG125, and Honda Delux125. This large series in bike products has been giving competitive edge over Indus Motors Company. In bikes segment Honda at No. 1 position. Same as other product line except in car manufacturing. The comparison by product between our main target area of Toyota Corolla and Honda City, Indus Motors has been maintaining good position in Pakistan. Toyota Corolla has been positioning in consumers’ mind by providing features, reliability and upgrading. Loyal brand series of Corolla is XLI, GLI, 2.OD, and ALTIS Cruisetronic is top positioning in the customers’ mind. Although, the Honda atlas has also one of the product line in car series is Honda City, MT, AT etc, Toyota Corolla and Honda City Offering features in many aspects as I have been discussed before in which I found result that features of both company brand has been taking place in customers’ mind by brand loyalty. are implying here simultaneously for comparison by Indus Motors
Price: As our target of research is Brand loyalty comparison of Toyota Corolla and Honda City. Comparison by price of Indus motors brands (Toyota Corolla) and Honda Atlas Brand (Honda City) have become an attraction in the eyes of many auto Pakistani customers. Toyota Corolla has differentiated their prices from the traditional pricing set up as Honda Atlas. Indus Motors Company is very conscious about Price and Quality; they built its reputation not only by producing high quality vehicles also at affordable prices. Toyota Corolla (GLI) current price is Rs. 1,389,000 and Honda City (AT) current Price is Rs. 1,439,000. At this point we can easily understand that the price of Honda city is higher than Toyota Corolla means Honda City is an expensive car more than Toyota Corolla. However, it is Indus Motors Company’s effectiveness in targeting consumers' needs and wants that has pushed them to the top. Toyota believes the role of purchasing is through long term and stable production of quality products at the lowest price in a fast and timely manner. The main objective of administering prices within Honda Atlas is profitability and to consistently increase efficiency in their product line. The traditional pricing strategy of Honda Atlas is formulated into the cost + profit = selling price. The reason behind this strategy is that When Honda Atlas makes changes and improvements, cost of production increases causing the selling prices to go higher. Honda Atlas does not want to cut their targeted return and therefore the costs are passed on to the consumer to maintain their profit margin. Mean that Toyota (Corolla) Pricing Strategy slightly different approach with a sale - oriented objective. Although the variables are the same, the formula is adjusted strategically into the selling price - cost = profit. Toyota firmly believes that its markets and consumers is what determine the selling price. Waste elimination is given top priority which reduces cost and by continuously reducing these types of costs, it will result in persevering the company's profit growth.
Place / Physical Distribution: The next important part to comparison is the place or Physical Distribution. It is the way of facilitate customers and make more convenient for customers Indus Motors Company and
Honda Atlas applying selling strategy by authorized Dealers. Both companies are not taking responsibilities from any unauthorized or local Dealers. Honda Atlas Network of dealership has expanded and now company has sixteen 3S (Sales, Service and Spare Parts) and thirty 2S (Service and Spare Parts) Pitstops network in all major cities of Pakistan. But the network of Indus Motors Company is much expanded than Honda atlas, Indus Motors dealership has expanded by Twenty Eight 3S (Sales, Service and Spare Parts) all over the major cities of Pakistan. In Karachi Aspect, Honda Atlas has four Dealers of car market rather, Indus Motors Company has Seven Dealers existing, and another differentiation is that Toyota Dealers Provide facilities of 2S at same time and same place. In this aspect Toyota Dealer doing more facilitates to loyal customer because, customer has no need to take pain of go another specify location. Indus Motors much committed to customer satisfaction as Customers’ wants to take service or Spare parts. Promotion: Indus Motors Company and Honda Atlas (Pakistan) always strive to give outstanding service to valued customers. In addition to providing regular service to customers, companies also regularly conducts Service Campaigns, to facilitate customer's need for service. This has given to customers’ absolute confidence in Toyota Corolla and Honda City cars. Honda also participates in promotion of that product. But as Honda Atlas has a wide Verity of Product line, they rapidly and quickly promote products more than Indus Motors. Promotion of Honda products has been depend on nature of product because Honda Atlas as we know that a wide range and variety of products as we discussed about the series, for example Honda wants to promote its bike product for that company may use Publicity like street banners, showroom display, announcement in newspapers, catalog, broachers, public market display, and many other option may applicable. .a Marketing Operations/ Function of Marketing Department: Marketing operation functions is the very essential tool and it is excellent essence of any business same as this strategy imply by Honda Atlas Company to its authorized Dealer. It is dealing with brand loyalty of Honda products my concern exists between dealers and customers. Honda Atlas also depends on 3S as Indus Motors Imply its strategy in market
operations but also Honda Atlas has been facilitating with separately 2S as well (Service and Spare Parts). This offer of facilities Honda Atlas Motor compares to the Total Quality Management style of Honda Atlas Itself. These 3S and 2S always monitor by Honda Atlas itself that what’s going on in which Direction? These 3S and 2s has been facilitating through Dealers. Let we discuss these three elements simultaneously: Sales: According in all aspects of sales our main concern is regarding Toyota Corolla and Honda City but somewhere we have to understand which Way of sales of Honda Atlas Motors is quite well standard to Indus Motors. The HACPL’s Sales Deals by its authorized Dealers. The dealers engaged in providing facilities the customer to buy Honda Brand(s). Honda Atlas Company has given dealership authority approximately sixteen Dealers (cars), Twelve hundred and fourteen (1214) Bikes Dealers, and more than hundred has been working and dealing with Power Products in all over Pakistan. But Indus Motors Company just Deals in Vehicle sector that’s why Toyota Company has twenty eight Dealers network regarding Vehicle sector but in other ways, Indus Motors has no choice to compare by other Honda products. Note that it is the highest number of dealers’ categories regarding bikes and Power Product sector just in the Karachi city Honda Atlas has four dealers have been dealing in Car Sector and hundred Dealers deal in Bike segment. All of the sales strategies followed by Honda Atlas Itself and it are directly involve and time by time Honda Atlas keep attached with each sector, do analysis the sales, performance of the dealers most importantly after sales, customer satisfaction report. Sales facilities part of Honda Atlas is to facilitate its loyal customer and overcome customer’s ambiguity, buying conflict and provide them maximum information before purchase. Honda Atlas is also very conscious in sales as well as Customers Satisfaction. 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, Honda Atlas has 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. Services The product sold is not means that close the window for customer now, it is beyond that further after sales customer has largely engaged to deal in service and Spare parts aspect. 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 Product. Honda Atlas considers purchase of any product as the beginning of relations with customers. To prolong this relationship and encourage the customers to keeps on coming to the dealers, providing customer service the reason for this facility is to stress on the importance of periodic maintenance. Periodic maintenance is essential for every existing 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.. HACPL is providing regular trainings to the dealers' technicians. The trainings cover all aspects of the cars and related Products including the periodic maintenance, diagnostics, trouble shooting and repairs according to HONDA standards. From this we want to facilitate the customers in maintaining their cars in top-most condition and enjoying the comfort and performance of the luxury vehicles they own. It is our endeavor to have uniform service standards made available at all dealerships in accordance with the international Honda standards. We consider the properly maintained vehicles not only to be a source of satisfaction to our customers; they also increase the sale value of their car. Indus Motors Company Gain competitive edge that they providing service more closely as they have twenty eight 3S network engaged all over in Pakistan. This issue is very critical, Indus motors company makes possible the product should in reach of customer, Honda Atlas customers facing problem regarding Service sector as well because as they thought to go service center most of the time they take pain to go on long distance service center. Some customer get hyper just by think to concern with service center and this may become time
consuming, in other side Indus Motors Company make it easy in reach of customer and more facilitate. Spare Parts: The Spare parts element is heavily concern and involved with brand loyalty of Toyota Corolla and Honda City because cost of spare parts also consider when customer want to buy the car, customers are also price conscious, availability of spare parts and as well as quality of spare parts. Indus Motors company offer affordable price as per luxuriousness of car and its availability is easy in reach; every dealer is able to provide the spare parts in 24 hours and its quality is fulfill by standard of parts as well as Indus Motors Company offer warranty (its depend on nature of auto part). IMC is not guaranteed if customer buy spare part from local market and spare parts price is much cheaper than Honda Atlas. Honda Atlas always follow those strategies which they can gain customer most attention to its brands. Honda Atlas always make possible to be genuine and look genuine. Honda attract its customer in under the statement that “Buy Honda genuine parts from Honda dealers and enjoy 6 month's Honda Warranty, the Honda warranty can vary product to product and contribute to the country’s economy and enjoy the satisfaction of using 100% genuine Honda Parts. But if customers buy the parts from open market; most probably is that customer may be buying smuggled parts and thus committing a moral crime and robbing your country from precious revenue, customer may unable to claim but if customer buy from Honda authorized Dealer so the part will be 100% genuine, customer has no need to buy from open market, the trust between customer and Honda Dealers become long lasting etc. It is the Honda Atlas’ aim to be No.1 in customer satisfaction in all three S, Sales, Service and Spare Parts and two S in the same time. .a MARKETING STRATEGIES: .a Market Segmentation Strategy: Indus motors company segment the market only in vehicle aspect but Honda Atlas is very conscious about to make lower and middle class customers they also make possible opportunity for both class customer, because Honda Atlas Believe that “one cent taken care
a rupee and a rupee will take care itself” so the product for lower and middle class is a competitive edge on Indus Motor company, so for making low and middle class customer. Honda Atlas has been producing bikes series of CDI 70, Honda 100, CG 125 and CG deluxe 125, the price range from 68,000 to 85,000, bike riders have been much delighted by Honda bike series not only this the Honda Bikes are the No. 1 Quality in Pakistan and this price range is affordable, means Honda bikes are still well worth in Pakistan. Honda atlas has other wide range of products variety in Pakistan, the target market of Honda atlas is sub divided by, generator , Water pumps, brush cutters, petrol engines these all products are available in a wide range of series. Honda Atlas has been segment the market by those customers who have these types of needs. The target customers for these products are those who will have an income in the range of approximately Rs. 100000 to 400000 per year. This income range is applicable for average type of product in all categories means that the income level may be varied depending on series nature. so, in the target market Indus motors company has limited opportunity for target rather, Honda atlas has a wide range of varieties for target customers here we can say that in this aspect Honda has a competitive advantage to make profit and customers because if a customer delighted by one product of Honda like generator, bike etc so brand positioning of Honda may be encourage to use Honda car (Honda City). .a Target marketing strategy: The Honda Atlas has been targeting the customer often targeting Indus Motors Company, so need to know and understand this issue that who will be interested in the services of Honda City? For male and female HACPL wants to produce and sell friendly and softly use of car for both (comparison by cars only), The age range from 25 to 65 years is the most average age car driver in Pakistan. The target customers are those who will have an income in the Rs. 50,000 and up range. Some customers in the lower income ranges are interested in specific services, interior restoration, or paint work and parts sales rather than full restorations. Honda atlas has a big opportunity in term of target market because Honda atlas has wide range of different product line as compare to Indus motors Company, Indus motors company deal with vehicle sector only but Honda Atlas has been dealing in Cars collection as well as in,
generator, Water pumps, brush cutters, petrol engines. The income range of customer for these products (except Car Brands) lies in Rs. 100,000 to 200,000. Honda Atlas has been offering different variety of products and IMC’s target market is limited rather than Honda atlas has opportunity to target large volume of customers in Pakistan with product line. .a Brand(s) positioning: Honda calls the design concept of the new Honda City the “arrowshot”. The car seems to concentrate all its forces on a point at a front, while the rear has a raised deck lid for a more upright stance. This makes the City look like its ready to release energy even when it is static. As with the Honda Accord, there are some hints of BMW-like design with the new City. According to Honda Atlas Brand positioning Strategy, it is quite similar to Indus Motors Company it is also based on provide quality products but as we know that Honda atlas has wide variety of brands and product but our main concern with Toyota Corolla and Honda City comparison in car competition of brand loyalty is purely based on the quality as well as price more over brand loyalty most concern with the 3S and 2S of Honda, if we talk about the sales, Honda atlas positioning its brand through simple and straight forward method of sales service, provide detail information to customers, luxuriousness, durability and reliability of Honda City, detail information about features of car, provide technical and functional information regarding car, take care of customers when they engaged in deal, for customer satisfaction Honda Atlas always keep in mind the needs and wants of customers. Honda atlas sell quality but reliable City car and they are offer quality and valued brand for which the brand has long been known. Honda Atlas positioning strategy also exist in quality sales, in simple words, a sale that done through well set standard format set by company in which give fair value to customer, avoid ambiguity, irretentiveness, provide full level of information, deal must based on make long term relationship not deal by selling product and many more characteristics involved in selling quality sales.
The brand positioning of Honda Atlas, to provide quality, and reliable products to customer those fulfill the customers’ needs, demand and satisfaction. More over Honda atlas logo is enough to make understand us that how much they involved to make position in customers’ mind that is “The Power of Dreams”. Honda atlas always tries to stretch customers mind and make it possible as much as customer’s dream come true. Honda Atlas is very always busy in maintain Brand loyalty in customers mind same as Indus Motors Company (Pakistan). Honda Atlas is doing deeply analysis to compete Indus Motors Company in brand positioning aspect as well for that hey has been doing hard work in its 3S and 2S. .i Pricing Strategy: Honda Atlas Company Pakistan has a mission to give good quality cars, achieve productquality leadership overall the Pakistan. The pricing strategy has been applying by this formula that Cost + Profit = Price. Honda Atlas is very crucial in the providing Quality product to customers. The perception behind that brand make as it talk itself and then customer will attain and will not as such consider price. IMC’s perception is that quality is the initial attraction of customers and the pricing is the strong support of product and IMC using pricing strategy as compliment part of success achievement. The standard of quality they do not perceive to give burden of high price at customers. .a Advertising and Promotion: The advertising and promotion of Honda Atlas Company Pakistan (HACPL) has a modest program of marketing its services that include the following: • • • • • Newspaper and magazines ads Press releases and magazines articles Car shows Website Calendars
As a competitiveness Honda Atlas always make those type of strategy which it gain competitive advantage on Indus Motors Company so, somehow its way of promotion similar to IMC because these elements are main way of advertising and promotion in Each of these
marketing approaches has the advantage of being low cost and creating service awareness. Honda Atlas Company also makes possible of having a grand opening program that would sponsorship, charity, social walk, donations, exhibition, functions, display in the large market. Honda Atlas spends a much amount at advertising and it feel that the company website is one of its best marketing strategies. It is linked to top listed web sites like Google.com and many other classic car restoration oriented websites and portals. The site has news about HACPL business, answers to FAQ's and pictures of cars restored and the process of the restoration. .a Distribution strategies: The Honda Atlas has been applying its distribution strategy by nature of product as company producing wide chain of different products. As we discussed in Market segmentation strategy, Honda Atlas distribution Divided in many ways like Honda cars, Bikes, and Power products, in distribution of Honda cars Honda Atlas has sixteen Dealers network in all over Pakistan and Four dealer exist in Karachi, for Bike Distribution twelve hundred and fourteen (1214) found as per research, and for power product, company has Eighty seven Dealers exist in Pakistan. Honda Atlas cars car plant established in Punjab and supply to supply to all over Pakistan’s distributors so, there is no specific demographical location for potential customers. Honda Atlas providing the opportunity to customer that they can buy Honda atlas Products from authorized Dealers. In distribution aspect, Honda Atlas has mission to make convenient and provide valued product to customers.
SECTION II 5. CHAPTER# 5 In this Chapter we will discuss about the factor which Toyota Corolla and Honda City create the difference. This is our main issue which we will come to know that how Toyota Corolla and Honda City make the loyal customer. .a FEATURES OF TOYOTA COROLLA AND HONDA CITY Indus Motors Company and Honda Atlas company providing satisfaction to its customer in many ways. In this section we will discuss it in detail. We will discuss the features of Toyota Corolla and Honda City that its loyal customer perceived to it lets start in Toyota Corolla aspect. .a Brand Loyalty of TOYOTA COROLLA: Now we are in a position to differentiate Toyota Corolla and Honda City customer loyalty at this stage we will try to understand that what the reasons behind great Success are? In the customer perspective I found the conclusion or result that customers are mostly focused on three basic things through they create difference between Toyota Corolla and other Cars. The basic differentiated key elements are Interior, Exterior, and engine Performance of the car. The Toyota Corolla is one of the best selling cars in the world and in Pakistan perspective they are well mind reader of the customers. It gets good gas mileage, has high scores for reliability, and yet is still affordable by most new car buyers. But of course, the Corolla hasn't gotten where it is by sitting on its laurels and the 2009 model is no different. And for the first time, Toyota offers a navigation system as an option on all models. Leather upholstery is an option that is available on the Toyota chain of models. In terms of driving; the Corolla's handling is solid. The ride is smooth and fairly quiet, even when confronted with dips and bounces. It has a tight turning radius and excellent brake-
pedal modulation. That being said, the Corolla isn't intended for avid "driving enthusiasts", although the XRS is a definite step up in performance. Interior controls are well laid out, easy to locate and easy to read. The seating is comfortable, outward visibility is good and the roominess is adequate given this is a compact car. The gas mileage for the new Corolla is one of its most coveted attributes. The 4-speed automatic is EPA rated at 27 mpg city and 35 mpg highway while the 5-speed automatic gets 22 mpg city and 30 mpg highway, due to its larger engine size. The standard 5-speed manual is rated at 27 mpg city and 35 mpg highway. While it appears there are some major challenges for carmakers for the 2009 model year and sales have already slowed considerably, the new Toyota Corolla again looks well suited for those buyers who need a new car this year. The Corolla's compact size, reliable history, excellent gas mileage performance and affordable pricing could make this star shine even more brightly. The newest Corolla has again been upgraded with more available power, more standard safety features, and fresh styling. For 2009 Corolla offers five trim levels versus the three for the 2008 model year. Base, LE, new XLE, and sporty S models are equipped with a 132horsepower 1.8-liter 4-cylinder engine, replacing the 126-hp 1.8-liter 4-cylinder. The top-line XRS model gets a 158-horsepower, 2.4-liter 4-cylinder. While a manual transmission is standard, the optional automatic transmission is a 4-speed on all the Corollas except the XRS, which gets a 5-speed. The XRS also gets 17-inch wheels and 4-wheel disc brakes. The other models get either 15 or 16-inch wheels and rear drum brakes. Available safety features include anti-lock brakes, an anti-skid system, traction control, front side airbags, and curtain side airbags. .a Toyota Corolla Characteristics, Features and performance: EXTERIOR: First element of the customer and Toyota perspective is the exterior in which the shape of car is most importantly count in customer perspective admiration is a compliment that every eye will carry when it looks up to customer. Be in
command of a vehicle that inspires customer to go far ahead of prevalent standards of pride & prestige. The new ALTIS Cruisetronic follows a new ‘Wide & Low’ design concept, with a significantly wider body, wider tread, and a bolder look. The dynamic proportions and the deeply contoured body refine the aerodynamics and overall stability of the car. Innovative press lines and sweep cut pillars bring motion in the car even while it is parked. The sporty front headlamps express assertiveness, and the tail lamps blend in with the bumper conveying balance in design. INTERIOR: Toyota corolla manufacturing has been always very conscious in customer perception as I mentioned above that they always try to capture customer’s perception than convert it into reality one of the factor is the Interior. The desire to challenge convention, stretch our own confines & move ahead of everything that limits us is natural to you. Take the seat that gives you a sense of unrestricted freedom. The interior of the Altis Cruisetronic is based in a new Grege color scheme, which conveys a sense of balance and harmony. Ergonomically designed, the interior promises maximum comfort during travel. Subtle but significant refinements in the Altis Cruisetronic delight you from the moment you enter the car. Illuminated entry, plush leather seats, flat rear floor and electric power steering are to name just a few of these refinements. The console and door trim is silhouetted in silver, and the wooden paneling and wooden shift lever express your sophistication. Toyota corolla air-conditioning system is available with both manual and automatic controls. Toyota corolla has been achieving its success by this element because its Air Conditioning system has not tripped when this car going on long drive (out side from the city) rather its cooling system will be constant from starting point. The air conditioning blowers have their noise reduced by 5dB while increasing airflow capacity by 23%. Center dash area looks significantly better and more concise for seating capacity with the automatic controls are the design of the manual controls end up making the dash look cheap.
Performance: Overall system also includes the touch of excellence goes down to every piston & ring to deliver a performance worthy of everything else this vehicle offers & give the Altis Cruisetronic a might of its own. The Altis Cruisetronic is equipped with a powerful 1.8 liter, 4 cylinders DOHC, and 16 valves VVTi engine. With a maximum output of 130 horsepower, the Altis Cruisetronic propels you with a might of its own. The variable valve timing with intelligence and the super ECT functions optimize acceleration and fuel efficiency providing you with the power and economy at all speeds. As we know that consumer does not have much information about the background function of the product like in this situation customer does not know about the technicality, functionality and other aspects which they may measure the engine performance but Toyota Corolla given them sophisticated value as they wants and satisfied. Customer may measure the engine performance through Driving it’s the best way to identify for customer suppose to long distance driving like wise From Karachi to Lahore etc than here mean to say that the performance is based on maximum driving. The most of the characteristic of Toyota Corolla engine is that it is support constantly in long driving somewhere other cars does not fully support to the car mean as much as car driving the engine cooling system do not support at last but in the system of Toyota corolla its cooling system of engine durably and continuously support to the engine and car Speed will be constant as much as customer can drive. .a Brand Loyalty of HONDA CITY: The Honda City is another aspect of my research due to comparison of brand loyalty of Customer. Honda City is the 2nd one high market shareholder in Pakistan automobile market note that we are compare 1300cc car. Honda City and Toyota Corolla have been surviving in very tough competition. In Pakistan perspective Toyota Corolla has higher market share than
Honda City. Honda City is now in its third generation, now it has been launched in Pakistan. In line with the global economic outlook as well as global fuel prices, manufacturers have been downsizing their cars and the New City makes a perfect compact in Honda line-up slotted in under the Civic for world markets. It is considered to be a world car. Now, as it has also been recently revealed that the Honda City will also be sold in Europe. Look after the jump for an in-depth look at the new City. .a HONDA CITY Characteristics, Features and performance: Exterior: The exterior element of the Honda City also important aspect to achieve success the design concept of the new Honda City the “arrowshot”, as we can concentrate on its exterior. The car seems to concentrate all its forces on a point at a front, while the rear has a raised deck lid for a more upright stance. This makes the City look like its ready to release energy even when it is static. As with the Honda Accord, there are some hints of BMW-like design with the new City, especially with the rear end. It looks quite conceptcar-like, and I would say Honda was quite brave to have pulled this one off. I think there will be quite a few people who will be turned off by the Optimum Prime futuristic look on the front end - but they can look at the aftermarket “solution providers” if they dislike it. I think the rest of the car looks good - the roofline does not flow as sleekly as the Civic, but it’s a huge improvement over the previous City. As for the wheels, you get either a 5-spoke wheel for the 15 inch size, or those funky Y-shaped 5-spokers for the 16 inch size. For markets that call for a low-cost City. The Honda City series has an exterior design that unites the beauty of form and function to express the City's advanced driving performance. Its low front nose and close-clipped rear deck complement the powerful wedge shape, while contrasting areas on the sides form strong character lines that convey a sense of speed. The shortened roof and boldly slanted rear window offer a sporty proportion. The sculpted panels of the hatchback area support exceptional capacity and ease of loading while further emphasizing spottiness. Interior:
Firstly, the doors open 80 degrees for easy access to the interior. In the interior, you get an instrument panel that is traditionally positioned behind the steering wheel. Good for those who dislike centrally-mounted instrument panels. There are two colors schemes - one beige and one black. Both will likely be used by Honda Atlas, with the black for a high-spec or sportsspecked version of the car and a beige one for the other. The black interior uses black for all the plastic parts while the fabric is in a purplish-black color. The beige interior uses a grayish-beige tone for the plastic parts while the fabrics are done in beige with yellow overtones. To reduce the previous City’s odd looks, Honda has made the car 45mm lower, but to maintain a good amount of headroom, they’ve changed the seat rail design and reduced cushion thickness (though they claim comfort is maintained) to reduce the driving position by 15mm. This allows a lower roofline for a sleeker shape while keeping a decent amount of headroom. The front quarter window has been removed and the A-pillars have been made thinner by 14mm for better visibility. In addition, the mirror area for the wing mirrors have been made taller but slightly slimmer for a more square shape, compared to the previous generation’s more rectangular side mirrors. This results in an increased mirror size by about 15 percent for better rear visibility. The front wipers have also been repositioned to have reduced front windscreen protrusion by 20mm. The air-conditioning system is available with both manual and automatic controls, and the center dash area looks significantly better with the automatic controls are the design of the manual controls end up making the dash look cheap. Honda has attempted to design the airflow to hit the rear bench via the bottom blowers which travel under the front seat to cool the rear passenger area. Performance: Customers’ are very conscious about the value and price and always wants to gain more benefits instead of that money so companies always make it possible to make loyal customer. Honda City also fulfills the requirement of customers. They producing well performance engine cars as compare to others in new model of Honda city they introduced new 1.5L i45
VTEC Engine The new L-Series SOHC i-VTEC engine in the. This change of technology is not our target but need to little introduction here that It produces 120 PS at 6,600rpm and 145Nm of torque at 4,800rpm, making it one of the most powerful 1.5 liter units today. Unlike the SOHC VTEC unit in the previous Honda City VTEC which only switched between opening and closing 1 of 2 intake valves per cylinder, the new i-VTEC engine actually varies the valve timing and valve lift, though this is not a continuously. Honda actually acknowledges this and claims the torque dip provides a smoother drive, whatever that means! The good news is this engine is compatible with fuel which should allow customers to save on them fuel bills a little. .a Analysis of TOYOTA and HONDA Brand Loyalty: In the above discussion, The major difference in Toyota Corolla and Honda City is that brand makes loyal its customer through customer perception, We analyzed Toyota Corolla and Honda City now proved that both cars have been providing attractiveness to the customer but Honda City, most customers had experienced about model 2005 which Honda City dissatisfied the customer due to its front quarter window has been removed and the A-pillars have been made thinner by 14mm for better visibility and its shape (Model 2005). The reason of discussed above elements is that we must need to separately analysis that which factors make them different to other, these elements are perceived by customer which customer get more close to Brand but in the same time some technical specification involved in differentiation, Technical Specification, are not mostly customer easily understand. So through Technical specifications companies make the difference, more over these elements which a company should follow to achieve competitive edge so I mentioned technical specification in.
SECTION III 6. CHAPTER# 6
Methodology: A total of 20 respondents were surveyed from across the Karachi due to limited time . All respondents were surveyed by Questionnaire during May 2009, and were qualified as intending to purchase a Toyota Corolla or Honda City vehicle. The study has a standard error of + 2.8%. Regarding to our target, Over 58.7% of the respondents surveyed are willing to buy Toyota Corolla and 42.3% of Honda City. .a Data Collection Sources: According to chosen project I decided to find out the raw information and data regarding topic for that most of the time I discussed with Deputy manager of Indus Motors Company’s Dealer (Southern Motors), and Manager of Honda Atlas Dealer (area name) they have been providing me raw information regarding customers’ dealing because my entire project based on Brand and Customers, although it is a key combination of loyalty. In other words, Satisfaction and benefit + Customer =Brand loyalty. As discussion on Brand loyalty I described about companies way of surviving both companies offer three key elements of Sales, Service and Spare Parts, base on these elements I also discussed with Toyota Corolla and Honda city Owners, as well as thanks for the technology that really curious, and helping out in finding of raw information which I visited to web sites of Indus Motors Company and Honda Atlas. .a Data Collection Tools: There are two sources for the data collection, primary and secondary sources: Primary Source: Primary sources are original works of research or raw data without interpretation or pronouncement that represents an official opinion or position. Our primary research will be based on interviews conducted and information gathered through questionnaires. As per my requirement to know about the Brand loyalty of Toyota corolla and Honda City brands I have been conducting Open ended questions and close ended Questions those will allow us to understand and making bright picture of brand loyalty.
Secondary Sources: Secondary sources are interpretations of primary data. Secondary research includes information from magazines, internet, encyclopedia, books, newspaper articles, etc. We have conduct secondary research from Internet, Journals, magazines, newspaper, etc. 6.2.1Data Processing and Analysis The data processing and analysis is the focal point of results which we able to understand about right or wrong, good or bad, like dislike etc. the data processing and analysis tool is very essential to find out the result in good manner it provide us clear picture all about our research related for that I will recommend the tool of SPSS 17.0 this tool will help me in analysis data that I have been gathering from the different sources then put them in the computer system program and then by computerized process it will provide me results for my research and it is enough for my research which I have need to go through processes. The data gathered through the primary and secondary sources will be analyzed by qualitative methods. Conclusion and analysis will also be included in the report. The other mathematical tools like graphs, bar diagrams, pie charts and line diagrams will also be used for the deep and comprehensive analysis of the data. .1 Questionnaire Analysis 1. AS A CAR USER, HOW OFTEN DO YOU GO TO THE WORKSHOP FOR REPAIRS AND DO YOU PERCIEVE IN YOUR SATISFACTION LEVEL?
Time Of Repair
12 10 8 6 4 2 0
once a week 1 or 2 times a once in three month months
only in a problem
I don’t have
Figure 1 Time of Repair Analysis: In the light of Toyota Corolla the respond about repair satisfaction level is, 7% "Don’t know at all”, 7% "A little", 12% were shown “moderate”, 48% "A lot" and 31% "Completely”. Customers have been concerned in repair aspect which showing those satisfaction level that they satisfied with repairs of car. The analysis of this question in Toyota Corolla aspect, clearly depicts the picture currently prevailing in the automobile market in which people are just talking about things which they have the first hand experience and they have well awareness about the Toyota Corolla also the reach of the workshop repair is much convenient for him. But respond regarding Honda City, the 11% "Don’t know at all”, 9% "A little", 28% were shown “moderate”, 31% "A lot" and 23% "Completely”. Some factor involved about which people are just talking about things which they don’t have the first hand experience. So, we may conclude Honda City not to be a manufacturing failure but a marketing failure only, the brand loyalty in this aspect showing differentiation or comparison in the above Graph.
2. DO YOU THINK LUXURIOUSNESS OF THE CAR FULFILL YOUR EXPECTATION, AND, UPTO WHAT PERCENTAGE THE WORDS “LUXURY” AND “TOYOTA” CAN BE ASSOCIATED TO EACH OTHER?
Association of Luxury 10 8 6 4 2 0 100% 75% 50% 25% 0% No idea
Figure 2 Association Of Luxury Analysis: According to luxury fulfillment respond of Toyota Corolla, the 3% "Don’t know at all”, 11% "A little", 39% were shown “moderate”, 26% "A lot" and 23% "Completely” about luxuriousness of Toyota Corolla. The response shows that the main reason with Toyota Corolla being successful in the market is Toyota motors’ association to the cars manufactured and targeted mainly towards the middle class and upper class. In the light of Honda City Results, the 9% "Don’t know at all”, 11% "A little", 33% were shown “moderate”, 26% "A lot" and 21% "Completely” think about the luxuriousness of car. The response shows that the Honda City has being in competition, the main problem with Honda City being little successful in the market is, not much consideration the demand according to Honda City. Off course, the cars manufactured and targeted mainly towards the middle class and upper class as well.
3. DO YOU PERCIEVE ADDITIONAL BENEFITS OF TOYOTA COROLLA AND WHAT ARE THE ADDITIONAL BENEFITS YOU SEE IN TOYOTA COROLLA AS COMPARED TO HONDA CITY 1300CC CARS?
Additional Benefit no idea status symbol effeciency spare parts availability maintenance luxury performance reliability price company 0 2 4 6 8 10 12 14 16 18
Figure 3 Additional Benefit Analysis: According to respond, the additional benefits of Toyota Corolla, , the 7% "Don’t know at all”, 1% "A little", 17% were shown “moderate”, 28% "A lot" and 47% "Completely” thinks about additional benefits of Toyota Corolla. The additional benefit for Toyota Corolla is providing more over the competitors, i.e. they are easier and less costly to maintain as compare to Honda City. Another conclusion that can be drawn from this questions analysis is that people are taking Toyota Corolla as Toyota’s another middle class targeted car, which is not the case Respond according to additional benefits Honda City loyalty is, the 11% "Don’t know at all”, 1% "A little", 40% was shown “moderate”, 21% "A lot" and 27% "Completely”. In this aspect of response The additional benefit for Honda City is more over in the aspect of fuel consumption same as other 1300cc cars of Honda Atlas Company have, i.e. they are less fuel consumption and much reliable at long drive and other factors are not much appreciated.
4. DO YOU SATISFIED WITH THIS CAR AND WILL YOU EVER ADVISE SOMEONE TO BUY TOYOTA COROLLA?
Advise To Buy
20 15 10 5 0 T oyota Corolla Honda City
Figure 4 Advise to Buy Analysis: According to respond level, the Advise about to buy Toyota Corolla is, , the 3% "Don’t know at all”, 5% "A little", 31% were shown “moderate”, 39% "A lot" and 23% "Completely” about to encourage people to buy Toyota Corolla. The respond of this question regarding Toyota Corolla is highly committed to the brand loyalty and they become a trustworthy of this brand because they have word of mouth and self experience to drive Toyota Corolla and they wish to encourage others to buy Toyota Corolla and Customers are its communication tool, the reason is that they are very careful in marketing to segment its Toyota Corolla brand as per middle and upper class. According to respond, Advise about to buy Honda City is, the 3% "Don’t know at all”, 11% "A little", 34% were shown “moderate”, 29% "A lot" and 23% "Completely”. The response to this question points out the main marketing mistake done by the company itself. It is obvious from the graph that middle and upper class are a bit puzzled towards the targeting; either it is middle class targeted, or the upper class. Say for instance, if it is middle class targeted, then the CIVIC is also a middle class targeted, and if for upper class targeted, then the name of Honda itself is not associating the name with the upper class. Moreover
people are having a problem to perceive their unconscious demand for Honda City, and this statement is proved from the responses to the last questions. 5. HOW MUCH YOU PERCIEVED FULFILLMENT OF COMPANY’S PROMISE AS THEY COMITTED TO PROVIDE A QUALITY SERVICE?
Company's 3S Quality commitment 10 9 8 7 6 5 4 3 2 1 0 Sales Service Toyota Corolla Honda City Spare Parts
Figure 5 Company’s 3S Commitment Analysis: According to respond level, the commitment of quality regarding Toyota Corolla is the 6% Don’t know at all”, 1% “A little”, 24% was shown “moderate”, 32% “A lot” and 34% “Completely about the providing quality service for Toyota Corolla. The response to this question is regarding 3S (Sales, Service, and spare part) that Toyota have wide range of dealership which they providing 3S services by quality and these are easily reachable, Conveniently available and follow the just in time. In the analysis of respond, the commitment of quality regarding Honda City is, the 17% "Don’t know at all”, 13% "A little", 42% was shown “moderate”, 13% "A lot" and 15% "Completely” about the providing quality service for Honda City. The respond results shown that the company providing 3S (Sales, Service and Spare Parts) as well as separately 2S services (sales and Services) available, that are more beneficial and efficient by quality.
6. WHAT ARE YOUR EXPECTATIONS ABOUT TOYOTA CORLLA AND IN COMPARISON TO HONDA CITY, WHICH FACTOR YOU, FIND IT DIFFERENT?
Factor Comparison 9 8 7 6 5 4 3 2 1 0 Interior Exterior Toyota Corolla Fuel Consumption Engine performance Honda City
Figure 6 Factor Comparison Analysis: In the light of this respond, the expectations about Toyota Corolla is, , the 7% "Don’t know at all”, 5% "A little", 33% was shown “moderate”, 26% "A lot" and 29% "Completely”. According to respond, people like Toyota Corolla because of consistent performance of the engine, interior and exterior, the performance of Toyota Corolla is highly appreciated, in comparison Toyota Corolla has charming and out class exterior, design/ shape, light interior color scheme is feeling brightness, and engine performance keep constant on driving for long drive i.e. traveling one city to another city. The respond about Honda City shown, the 5% "Don’t know at all”, 11% "A little", 35% was shown “moderate”, 25% "A lot" and 24% "Completely” thinks about to encourage people to buy Toyota Corolla. According to this respond, the answer almost same but respondent perception changed by black interior color scheme that feeling cool, “Arrow shot” shape of exterior, shape/ design and fuel consumption as per issue of economy
7. WHAT DO YOU FEEL ABOUT TECHNOLOGY ENHANCEMENT AND YOUR LOYAL CAR’S PERFORMANCE?
Technological Enhancement Affect 8 7 6 5 4 3 2 1 0 Speed Fuel Consumption Toyota Corolla engine consistency Honda City I Don’t have
Figure 7 Technical enhancement Affects Analysis: According to respond brand loyalty level, the performance of Toyota Corolla is, 5% "Don’t know at all”, 7% "A little", 20% was shown “moderate”, 37% "A lot" and 31% "Completely” loyal by the Toyota Corolla performance. Usually speed and pick of the car is also a considerable era which consumer wants much more effective in this aspect due to the addition of high performance technological enhancement in Toyota Corolla VVTi 1.8 engine provide high level of performance and consistency. The VVTi technology based engine especially design and addition for 1300cc or plus in Toyota Corolla series. This shows that the car users are conscious to this factor but at the same time they are also very much concerned with the Performance. Respondent told me that, the performance of Honda City is 4% Don’t know at all”, 7% “A little”, 47% was shown “moderate”, 19% “A lot” and 23% Completely” loyal by the Honda City performance. The respond on this question, the technological addition in Honda City is now much more reliable as well as fuel consumption aspect also considerable during its performance the Honda City has technological advancement by iVTEC 1.5 engine it is more
supportable and fuel consumption control ability because of economical factor exist and much considerable in Honda City buy aspect 8. DID YOU SATISFY WITH YOUR PERCIEVED FACTORS AND WHAT ARE THE FACTORS YOU PERCIEVE IN A CAR WHICH LIES IN THE PRICE RANGE OF PKR 10, 000, 00 – 1500,000?
Factors by Perception Fuel Consumption status symbol effeciency performance and reliability maintenance spare parts luxury preferred company 0 5 10 15 20 25 Honda City 30 35
Figure 8 Factors of Perception Analysis: According to respond about Toyota Corolla, 2% "Don’t know at all”, 0% "A little", 21% was shown “moderate”, 49% "A lot" and 30% "Completely” Just over those respondents who loyal to Toyota Corolla said that they perceive in car would (19%"probably") Performance and reliability of the Toyota Corolla, this factor is very high in customers’ perspective more than half of customers has been delighted by this factor this instance fuel consumption is affordable with respect to its performance and reliability factor See fig15 According to response about Honda City, the loyal customer of , 2% "Don’t know at all”, 0% "A little", 21% was shown “moderate”, 49% "A lot" and 30% "Completely”. The above factor as we see that a Toyota Corolla customer has been perceived by the Performance and reliability factor, is the most highly appreciated in Toyota Corolla customers’ perspective, and Honda City customers has delighting by Luxuriousness of the Honda City. Both
differences which have been giving considerable weight age, There is a contradiction in the response itself which is depicted in which respondents gave more weight age in those perspectives see in above chart. .a Interview analysis According to research, brand loyalty of Toyota Corolla and Honda City are existing between customers’ perception and fulfillment of perception, the fulfillment of perception is the responsibility or obligation of associative companies. Regarding this I have taken an interview session with Mr. Mazher Ghauri, Deputy Manager of Indus Motors’ authorized dealer (Toyota Southern Motors). And second interview taken from Honda Atlas Company’s Dealer (……………..). .a Interview from IMC Dealer Q1. Tell something about yourself? A. My name is Mazher Ghauri and I am Deputy Manager of Southern Motors (IMC). Q2. Tell me about your organization? A. We have dealership of Indus Motors Company which we have been dealing Toyota vehicles range comprises of TOYOTA COROLLA, CAMRY, COURE and HILUX They are having capacity of 225,000 units. We have good growth since last 5 to6 years now there is a decline in sales. There are some reasons behind it, the main reason is the increase of interest rate, control of SBP monetary policy. Now the sales are stagnant after so many years of good growth. Anyways the highest level of sales in 1300cc cars is Toyota Corolla and in 850cc car is Coure is top of the list. Q3. What most of buyers require or demand to you about Toyota Corolla? A. According to requirements of customers they perceive that money in term of benefits like superior quality, reliability, performance and its cost. We assure to provide them Toyota Corolla in customers point of view because Indus Motors Company is very conscious to provide its product at the level of brand loyalty for its customers.
Q4. How much of you spent your time on customer to briefing about the Toyota Corolla? Regarding Toyota Corolla, this 1300cc brand has well worth and well known overall in Pakistan. Mostly we do not need to briefing about Toyota Corolla, customers just came to dealer and purchase its loyal Toyota Corolla car in either cases they have word-of-mouth information and personal experience. Off course, we just provide information regarding new addition or technological enhancement in the car. Q5. From year 2005, the ban was lifted from imported cars. So the sales of Suzuki cars got affected? A. Not changed because the main reason was that we can not produce more as well as we continued our other imported car i.e. PRADO. Q6. There is a concern about the quality of Toyota Corolla cars. What do you say about it? A. I’ll not accept it with as far as any car is concern of Toyota. The reason is that our customers are very sensitive. Our customers are middle and upper class persons who are very conscious about that vehicle. So for our vehicle segment they are very much focused and mostly customers are well known about the Toyota Corolla related concern. If you talk about quality our record is world over. But sometimes something happens .We have market share of around 62% so lots of people are talking obviously! The car comes to the dealer and is being repaired there and customer doesn’t know what happens with it. Q7. How do you maintain Brand loyalty of Toyota Corolla? This is really critical part of our customers because if any customer get clue regarding its satisfaction so the result will go opponent to us for that we have to very careful to deal and maintain our Brand (Toyota Corolla) positioning in customers mind. For that instance, we provide them 3S (Sales, Service and Spare Parts) very effectively and efficiently. Our aim is to get close more and more to customer. Q8. How do you compare that Toyota Corolla is better than Honda City?
Usually customers are not well aware regarding identify difference between Toyota Corolla and Honda City for that instance, we also provide them technical specification information which customer may come to understand easily. Q9. For improve/maintain brand loyalty of Toyota Corolla, what does Indus Motors Company? Indus Motors Company has a mission to provide quality brand and customer satisfaction. For that IMC directly involved in every aspect and monitor all activities that engaged with the customer, the monitoring system is very straightforward and fair in which they does not compromise in any situation. We periodically asked to our customers and encourage them to feel free complaint, and appreciating those suggestion and comments. .a Interview from HACPL Dealer Q1. Tell something about yourself? A. My name is Mazher Ghauri and I am Deputy Manager of Southern Motors (IMC). Q2. About HACPL? A. The Honda Atlas Company Pakistan limited (HACPL) is third largest automobile company in Pakistan and we are authorized dealer of it. which we are dealing wide range of Honda brands that comprises of HONDA CITY, CIVIC, ACCORD and CR-V. They are having capacity of 150000 units. HACPL deal in other wide range of product line which we have good growth since last 25 years and in car category 8 to 10 years, in automobile market we also affected in recession to go through decline in sales where there are some reasons behind it, the main reason is the increase of interest rate, control of SBP monetary policy. Anyways the highest level of sales of Indus Motors Company in 1300cc cars is Honda City and Honda Civic are top of the list. Q3. What most of buyers require or demand to you about Honda City? A. our customers are economically very curious, majority of customers perceived about Honda City is reliability, performance quality and they are highly demanding economically affordable with respect to fuel consumption so Honda City fulfilling those need in term of
our customers’ expectation. We have an honor that Honda City is successfully perceived our customers’ requirement and assure to provide them Honda City in customers point of view. Q4. How much of you spent your time on customer to briefing about the Honda City? Our customers are very sensible about Honda City, this 1300cc brand has provide them briefing and information itself and we makes it possible to provide them information with presence of Honda City because our perception is that, the customers’ believed at eye witness so we do not need to give much briefing as customers’ perceive themselves. Q5. From year 2005, the ban was lifted from imported cars. So the sales of Honda City cars got affected? A. it is not much affected by ban’s lifted from imported cars because we also imported cars in which our most famous brand introduced i.e. Honda Accord, CR-V. Q6. There is a concern about the quality of Honda City cars. What do you say about it? A. I will not accept it because some time something or anything could be happen but for instance, most of the time we surveyed about Honda City’s reputation in the market and our surveyed report tell us that those customers’ who do not have experience about Honda City they just go through word of mouth but our experienced customers are much loyal to quality of Honda City. Our customers are middle and upper class persons who are very conscious about that vehicle. Q7. How do you maintain Brand loyalty of Honda City? One of the issues about brand loyalty is maintain brand position in customers’ mind in which we provide them more and more satisfaction. We follow just in time strategy and provide 3S and 2S services to facilitate our customers. Because before buying, customers may think about sales location, appropriate location of service and availability of Spare Parts. For our customers we facilitate them with additional Service and spare parts which our customers may easily reach those target requirement. Q8. How do you compare that Honda City is better than Toyota Corolla?
As I told you in last question that our customer are highly appreciated Honda City because of its fuel consumption and more over this, some of technical specification are makes difference that which factors Honda City is better than Toyota Corolla. in technical aspect, usually customers are not well aware and they do not have sufficient technical information about Honda City which they identify difference and betterment of Honda City.
Q9. For improvement/ maintain brand loyalty of Honda City, what does Indus Motors Company do? HACPL is very conscious about its customer, in brand loyalty aspect, company makes it possible as those slogan “Power of Dreams” for achievement brand loyalty (Honda City). In this instance, Honda Atlas Company directly involved and all its authorized dealers follow its standard. We maintain our brand loyalty through given more importance to our customer because we are not selling the Honda car, instead that, we focused on develop and maintain long term customer relationship. Analysis: Mr. Mazhar Ghauri of Indus Motors Company and Mr. Jamil of Honda Atlas Company are very experienced candidates and they have over 15 years experience in respective companies. They provided very handful information for me. Although they did not speak against associated companies, but they tried to prove those point. According to associated persons, the sale actually has gone up mainly due to the fact of brand positioning in customers’ mind as they perceived if any of factor that incurred in affected sales that reason surely economy has been shattered and the de valuation of currency had increased the prices of cars. They inclined that the quality of the cars are going up as he told us that the vendor’ are the same and the quality of parts are been standardized and maintained. They said more about associated 1300cc cars (Toyota Corolla and Honda City) that it is having the expected result as they still have achieved the goals of it. Due to time constrained they might have provided a great knowledge more. But still, those interviews provided good information regarding brand loyalty.
.a Summery Pakistani Automobile Sector Consist of four main players in the domestic market and their cumulative share is about 95% of the total car Markets these includes Pak Suzuki, Motors Company, Indus Motors Corporations, Honda Atlas, Dewan Farooque Motors Limited and 5% of other car brand in which include china branded cars, imported cars etc. Among the above four Pak Suzuki enjoys the position as a market leader (62%) than by the Indus motors (27%) followed by Honda Atlas (9%) & Dewan motors (2%) respectively. The entire discussion has been surrounding in Pakistan environment. Now we are in a position to differentiate Toyota Corolla and Honda City’s Brand loyalty at this stage we are able to understand the reasons behind great Success. In the customer perspective we found the result that customers are mostly focused on three basic things through they create difference between Toyota Corolla and Honda City. In Brand loyalty of 1300cc cars, TOYOTA Corolla and Honda City Honda City are highly competing in Pakistan. These companies have been offering 3S (Sales, Services and Spare parts) but similar to each other. Both have an extremely high reputation within the restoration community. They currently have doing more and more hard work for brand loyalty. They are still taking new customers from 1300cc car market. Toyota Corolla is one of the best selling cars in Pakistan. It gets good gas mileage, has high scores for reliability, and yet is still affordable by most new car buyers. But of course, the Corolla hasn't gotten where it is by sitting on its laurels. and the 2009 model is no different. The newest Corolla has again been upgraded with more available power, more standard safety features, and fresh styling. The basic differentiated key elements are Interior, Exterior, and engine Performance of the car. The Toyota Corolla is one of the best selling cars in the world and in Pakistan perspective they are well mind reader of the customers. We discussed in detail about both brands we found that both companies way of business is different Indus motors wants to achieve price quality leadership besides Honda atlas want to achieve product quality leadership and both companies’ profitability formula also has a big difference and these two factors makes the difference between both companies.
The Indus motors company has been maintaining the product by pricing and brand. This factor is most critical part of IMC because it’s the mission of company that they want to leadership in the automobile industry of Pakistan for that they mostly consider the price and quality of the car. The Honda Atlas adopting the strategy which they think as its slogan “Power of Dream” in this aspect they wants to produce unique and innovative car but obiviously the high cost existing there, in Honda Atlas point of view make the product, it will sell itself means all are in the circular of differentiation. Honda Atlas has been charged its car price due to its aim of quality. Indus Motors Company’s slogan, "Concern Beyond Cars", has been a message which they covered most of the social responsibilities. Indus Motor Company has contributed over Rs 100 million in the past 5 years for health, education, welfare, environment and road safety projects, thus playing a significant role in the communities where it operates. This theme of slogan is much to attract the customer which the customer feels that as they are social responsible they may be provides as much satisfaction as customers’ wants. Toyota Corolla is one of the best selling cars in Pakistan. It gets good gas mileage, has high scores for reliability, and yet is still affordable by most new car buyers. But of course, the Corolla hasn't gotten where it is by sitting on its laurels. and the 2009 model is no different. The newest Corolla has again been upgraded with more available power, more standard safety features, and fresh styling. The Dividend pay out ratio of Indus Motor is between 30% to 45 % and the dividend that, Indus motor pays shows an increasing trend annually although Indus Motors is planning to expand their annual capacity but it does not effect on the dividend because of the strong cash flows and we are expecting Rs 14.30 dividend for the year of 2007-08. The market value of Indus Motor has been moving in a growing pattern year by year. In 2007 the market value of IMC share is 305.5 compare to the price of 72.25 in 2003 with the growth of 322% in the last five-year this shows a tremendous growth potential in the organization.
Both companies follow its success through continuous improvement this is known as KAIZEN (continuous improvement), and it is very much common in both companies. The individual makes a proposal for the improvement in productivity and quality, by adopting this technique they makes create the difference in its brand. Brand loyalty, resale value, after sales service and spare parts availability were major considerations that kept customers preference skewed towards local cars both 1300cc Car demand has still very high and customers are delighted by those choice of brand which they selected.
7. CHAPTER# 7 .a CONCLUSION: The reasons that can be given to provide justification to our conclusion are as follows: In present society and living way, the Brands not only represent the symbol of the company or product but to a larger extent define the general life of a person. What the person uses can reflect his taste of life, his status in the society, his economic background and many other things. This makes a deep connection between the company and its brand, with the consumer. In this two way relation both are dependent on each other for various different reasons. Customers purchase the specific brand things just due to the brand name. Customers believe that brand name is a symbol of quality. I came to the conclusion that when consumer purchases a car, brand names influence his choice. Customers choose the well known car brand. The study shows that Toyota Corolla and Honda City brands have a great place in consumer mind, when customers go for purchasing a car, they prefer by that creative perception. Honda City is less loyal to customer due to its high cost, low reliability, low performance, and lack of 3S availability, high cost of maintenance and Spare Parts and shape as compare to Toyota Corolla. Honda City model 2005 was highly drop down because the car shape was did not appreciated in Pakistan moreover it was also failed in specific duration because of side mirror of the car the reason was that the side mirror was resisted by pillar of front quarter window which customer felt uncomfortable when he/she viewed back side. These problems had been shifted from the loyal brand. If a Customers delighted by Toyota Corolla he/she does not want to try Honda City car because they have no much information about it and vise versa. I feel that the purpose of this study has been fulfilled to some extant. The theory describe that brand name has a power, which attracts the customers towards branded products. The reason
is that customer gets special connection with specific brands product and become the loyal with brand. • • Recommendation:
In the light of entire project I would like to highlight some recommendation I found that in the light of brand loyalty Toyota Corolla and Honda City gaining more and more competitive advantage because it purely involved according to the Pakistan environment but Honda City has some weaknesses which Indus Motors Company has to keep on focusing in the customers’ point of view like
• • •
The shape of car as customer perceive Interior of the car in black, which mostly people of Pakistan do not much like, instead, as they admired by soft and light color. The Honda Atlas Company has to facilitate customers more than Indus Motors Company in term of addition of dealership, Make possible to facilitate customer by 3S, if possible, addition of 2S as well as they providing 2S service for other products.
Indus Motors Company has to establish 2S for compete the Pak SUZUKI because Pak Suzuki is the largest automobile company in Pakistan and its cars are highly appreciated because of economical price.
Honda Atlas Company has to improve its quality sales, service because the brand loyalty is sustained by truth, fairness, good dealing, and friendly attachment with loyal customer.
8. CHAPTER# 8
.a Student Introduction: Student Bio-Data Roll No: Name: Father Name Postal Address mc070400252 MUHAMMAD USMAN AKHTAR ALI R-775 Sector No# 9. North Karachi, Karachi Postal Code Career Objective: Area of specialization 75850 To become innovative person Marketing ACADEMIC RECORDS EXAMINATION BS (cS) DAE Organization’s name: Designation: YEAR 2002 1996 INSTITUTION Petroman Training Ins. Jinnah Polytechnic Ins %AGE 64.68% 78.82%
Smz Enterprises -------------------------
Experience (in years): 2 years.
Sales of locally Produced cars and LCV's
250000 200000 150000 100000 50000 0 2004-05 2005-06 2006-07 2007-08
Production Capacity in 2007-08
160000 140000 120000 100000 80000 60000 40000 20000 0
Figure 9 Production Capacity/sales of Produced car
Sales Analysis Comparison 60,000 40,000 20,000 0 TOYOTA COROLLA year 2005-06 year 2006-07 HONDA CITY year 2007-08
Figure 10 Sales analysis Comparison
Market Share of Four Major Players
9% 2% 27% 62%
Pak Suzuki Toyota Motors HondaCompany. Dewan Motors
Part of Cake
total No. of units Toyota Motors
Figure 11 Market Share of 4 major players Figure 12 Honda City Technical Specification:
Engine Type Combustion chamber type Valve train Displacement (cc (cm3)) Bore and Stroke(mm) Compression ratio Fuel supply system Emission system Maximum Power(kw/rpm) Transmission Water-cooled 4cycle,L4 Cylinder Gasoline Engine BOWL-IN TYPE Chain drive SOHC,4VLV per Cylinder 1,300 73 x 80 10.5 Electronic Fuel Injection EURO-4 73/6,000
Clutch type Transmission type Gear ratios 1st M/T 2nd 3rd 4th 5th reverse final reduction ratio Clutch type Transmission type Gear ratios 1st A/T 2nd 3rd 4th 5th reverse final reduction ratio Dimensions & Weight Length(mm) Overall Width(mm) Height(mm) Wheelbase(mm) Tread Ground Clearance(mm) Max. Permissible Weight (ibs(us)/kg) Seating Capacity (iv) Chassis Front Rear Front(mm) Stabilizer bar type / size Brake Parking Brake Type Disc Diameter Front(mm) Rear with ABS(mm) Type Steering system Overall ratio Turns, lock to lock Turning Radius At Body (ft/m ) Fuel Tank Capacity(liters) Tire Size Battery capacity(V-Ah) Front Rear Rear(mm) Front Rear with ABS Front(mm) Rear(mm)
Single plate dry, diaphragm spring Synchronized, 5-speed forward, 1 reverse 3.307 1.75 1.171 0.923 0.767 3.307 4.625 3-element torque converter with lock-up clutch Electronically controlled automatic, 5-speed forward, 1 reverse 2.995 1.678 1.066 0.76 0.551 1.956 4.562 4,395 1,695 1,480 2,550 1,492 1,475 160 1,450 5 Mcpherson Strut Torsion beam axle 19 11 DISK DRUM Mechanical 262 200 Rack & Pinion 15.89 3.29 5.3 42 175/65R15 175/65R15 24（5）
Figure 133 Toyota Corolla Technical Specification:
DIMENSIONS 2.0D ALTIS CRUISE ALTIS Xli Exterior: L x W x H (mm) Interior: L x W x H (mm) Wheel Base (mm) Minimum Turning Radius (m) 5.3 m 2600 1890 x 1450 x 1195 4540 x 1760 x 1480 Gli M/T ALTIS CRUISETRONIC ALTIS M/T SR TRONIC SR 2.0D 2.0D Saloon Salo on Sunr oof
ENGINE SPECIFICATIONS Engine Type Engine Displacement ( cc) 1299 EFI with Fuel System Max. Output(SAENET) Max. Torque(SAENET) 121/4400 170 Nm/4200 rpm 131/2800 63(84)/60 00 97 kW(130hp)/6000 rpm 53(71)/4600 VVTI EFI with VVTI Fuel Injection 1794 1975 2NZ-FE 1 ZZ-FE 2C
PERFORMANCE 4 Speed AT with 4 Speed AT with Transmission Super ECT (Electronic Controlled Transmission) No No Yes No Yes No YES 5 Speed MT Switchtronic 5 Speed MT Switchtro nic 5 Speed M/T
Front Brakes Rear ABS + Brake Assist + Electronic Brake Force Distribution Front Suspension Rear Stabilizer Bar Steering System 195/65 Tire and Wheel Fuel Tank Capacity Fuel Cut System R15 Steel No
Ventilated Disc Solid Disc
YES MacPherson Strut Torsion Beam Front/Rear
Electric Power Steering System 195/65 195/65 R15 Alloy Rims 55 Liters Yes R15 Steel 195/65 R15 Alloy Rims
EXTERIOR Antenna Front Head Lamps Rear Lamps Windshield Wipers High Mount Stop Lamp Windshield Mud Guard Rear Garnish Side Impact Bars Side Protection Moulding Rocker Side Skirts Moulding Extended 15 Inch Full Cap Wheel 15" 15 Inch Alloy Rims Full Cap 15" Alloy Rims Body Color With YES Green Laminated with Top Shade Body Color Body Color 4 Lamps Multi-reflector LED (Light Emitting Diode) Type Intermittent with Diffusing Washer Type Nozzle Glass Embedded Print Antenna
INTERIOR Interior Color Scheme Sunroof No Yes Greg No Fabric High Seats Rear Cabin Flat Floor Keyless Entry Illuminated Entry System Steering Multi Information Display Meter Illumination Control Speedometer Tachometer Positron km/h Yes Gate Type lever Leather + Gate Type lever Gear Shift Lever Wood Grain Finish No Yes No Yes High Audio 1DIN Audio 2 DIN audio with Player/ AMFM/ Mp3 2 DIN audio AM-FM/ with Mp3 Player/ 1DIN Audio 1DIN Audio Grad e 2Aud io Speaker 2 4 6 2 6 Driver+Passenger (with Vanity mirror) Standard Leathe r Leather + Sequential (Silver) Leather Wood Sequenti al (Silver) Standard Leat her Yes Yes 4 Spoke Urethane Tilt and Telescopic No Yes Yes No Yes Fabric Fabric High Grade Leather Package Fabric Grade Leat her Yes
Driver + Passenger (with Vanity mirror)
Rear Seat Armrest with Cupholders Center Console Box rear Headrest Central Door Locking Power Windows Digital Clock No Yes Yes No Yes No Yes No Yes with Lid with Lid + 2 Step Separate*3 + Leather with Lid with Lid + 2 Step No Yes No Yes
Key Reminder Warning Light on Warning Reverse Gear Warning No No Driver + Driver: 3 Point, with Pretensioner and Force Limiter Passenger No Yes No Yes Driver + Passenge r: 3 Point ELR 2 Passenger: 3 Point ELR Center Passenger: Non Retractable yes No Yes No Yes No Driver: 3 Point, Yes Yes
Passenger Seat Belt Front Rear SRS Air Bag : 3 Point ELR
with Pretensioner and Force Limiter Passenger
Figure 14 Comparison by Technical Specification and Price:
Xli Gli New Honda New City MT City AT How Corolla Is Better?
PKR Price Dimensions Exterior: L x W x H (mm) Interior: L x W x H (mm) Wheel Base (mm) Ground Clearance (mm) Minimum Turning Radius (m) Wheel Size ENGINE SPECIFICATIONS PKR 1,269,000 PKR 1,389000 1,319,000
Honda City is expensive
4540 x 1760 x 1480 1890 x 1450 x 1195 2600 180 5.3 m 15
14395 x 1695 x1480
2550 160 5.3 15 x 5J
Bigger wheel Base Better Ground Clearance
Better Fuel Efficient SOHC (single over head Cam) 16 Engine Type Fuel System Max. Output(SAENET) Max. Torque(SAENET) DOHC (twin cam) 2NZ-FE 4-Cylinder VVTi EFI with VVTI 63(84)/6000 121/4400 Valve 4 Cylinder i-VTEC EFI (electronic Fuel injection) 73(100)/6000 128/6000 electronically Controlled Automatic 5 Synchronized 5 Speed forward 1 Transmission Basic Tire and Wheel Brakes (Front/ Rear) 5 Speed MT 195/65 R15 Steel Ventilated / Solid ABS + Brake Assist + Electronic Brake Force Brake Type Suspension (Front) Suspension (Rear) Fuel Tank Capacity EXTERIOR Antenna Door mirrors with side turn signal lamps Mud Guard Rear Lamps Windshield Wipers Bumper 15" Solid Disk Brakes Distribution MacPherson Strut Torsion Beam 55 Liters Glass Embedded Print Antenna Body Color Black (Electric) (electric) Black (FR &RR) LED (Light Emitting Diode) Type Stop Lamps Intermittent with Diffusing Washer Type Nozzle Body Color Black, White, gun metallic, Black , white. Available Colors shim green, strong blue, jarama beige, Black, white, A-Silver, D-Blue, Grey polished Metal 7 colors available in Gli ABS with BA (with14" Disk) Reverse speed 1 forward reverse 175/65 R15 Disk / Drum Gli Gives Electronic Brake Force distribution (EBD) With ABS and BA. Give Better Brake than City electroni engine with low midTorque
42 liters Micro non (FR &RR) Multi Reflecting Crystal Tail Lights Non Body Color
More Fuel Capacity
Better rear Lamps
Silver. INTERIOR Interior Color Scheme Illuminated Entry System Air Conditioner CD Player & AM/FM Radio Central Door Locking Power Windows Speaker Steering type Rear Cabin Flat Floor Keyless Entry Illuminated Entry System Steering Meter Information Display Rear Seat Armrest with Cupholders Safety Emission Standard Seat Belt No No 2 Tilt and Telescopic Flat Floor No Yes Tilt and Telescopic Multi Information Display No Yes Grege Yes Yes Single CD Player Yes Yes 4 Black No Yes Single CD Player Yes Yes Better Sound More 2 (Front) Tilt electronic Power Steering Normal Yes No Tilt and telescopic Tilt electronic Power Steering LCD Info meter Display No No Steering Multi Information Dispay Rear Arm Aet in Gli Speaers in Gli Tilt and telescopic Steering
Euro- 2 (2FR/2R) 3 Point ELR + 1rear center non retractable
Euro- 4 3 Point ELR Seatbelts Seat Belts For Each Pessenger
Concerned Books: Building Strong Brands: By David A. Aaker New York: The Free Press Strategic Brand Management: By Jean – Noel Kapferer
Concerned Handout: Research Method: Dr. Muhammad Anwar, chapter # 3, 7, 9, 19, 44, 45 Brand Management: Mr. Waseem Ahsan, Chapter# 20, 22, 37, 41,
Internet Journal Articles: http://www.honda.com.pk/about/index.html http://www.toyota-indus.com/newcorolla/home.aspx http://www.paksearch.com/Annual/Annual01/HONDA1.htm http://www.dailytimes.com.pk/default.asp http://mhprofessional.com http://www.marketingteacher.com/SWOT/toyota_swot.htm - 11k
.a INDEX Achievement of IMC................................4 Advantage of Pak.Suzuki..........................3 Arrow concept on Honda Atlas...............37 Auto in Pak...............................................1 Brand Conscious customers......................9 Brand Guideline (IMC)...........................21 Brand loyalty........................................2, iv Brand loyalty comparison.........................8 Brand Series of Toyota Corolla...............30 Cars 1300cc...............................................2 Chamber of Commerce...........................18 Common perception.............................2, iv Comparison by technical Specification...74 Competitors...............................................7 Dealership Network................................27 Engine.....................................................41 Four P’s...................................................12 General motors..........................................3 HACPL and IMC......................................8 HACPL’s Slogan.....................................63 Honda Atlas 3S.......................................32 Honda Atlas Bike Dealers.......................33 Honda Atlas Bike Series.........................36 Honda Atlas Company Pakistan Limited (HACPL).................................................27 Honda Atlas Mission...............................28 Honda Atlas offer....................................27 Honda Atlas Statement............................27 Honda Atlas Vision.................................28 Honda Atlas’ EBT...................................28 Honda City Horsepower..........................41 Honda City i-VTEC................................46 Honda City Technical Specification........69 Honda interior color................................42 Honda Slogan..........................................29 IMC Advertising quality.........................18 IMC Mission Statement............................6 IMC Philosophy........................................4 IMC Production quality..........................19 IMC Sales and Production........................5 IMC Training Center.................................4 IMC Vision statment.................................6 IMC’s Business Sector..............................4 IMC’s Sales Revenue................................5 IMC’s Slogan..........................................63 IMC’s Vehicle Display Center..................4 Indus Motors Company placing..............14 Indus Motors Company Pricing..............13 Indus Motors Company Promotion.........14 KAIZAN.................................................64 LCV of IMC..............................................5 Marketing 4P’s........................................30 Official inauguration...............................27 PAMA.......................................................3 Pricing formula of IMC..........................23 Product Development Principle..............22 Production line of Honda Atlas...............30 Project help in buying...............................9 Quality Sales...........................................16 Research Objective...................................7 Sales and quality Sales............................22 Selling Price formula of Honda..............31 Selling Price formula of Toyota Corolla. 31 Sweep cut pillars.....................................42 Toyota 3S................................................16 Toyota Advertising..................................18 Toyota Big Dealers in Karachi................16 Toyota Car show participation................18 Toyota Corolla.........................................13 Toyota Corolla demand...........................11 Toyota Corolla display............................24 Toyota Corolla plan to target...................20 Toyota Corolla positioning......................23 Toyota Corolla Technical Specification. 71, 74 Toyota Corolla Top series.......................13 Toyota Dealers in Karachi.......................16 Toyota Dealers in Pakistan......................16 Vendors.....................................................2 VVTi engine............................................43 Year Base Model.....................................41