SUPERIOR UNIVERSITY

TQM
MBA Professional (Evening)
Section X
Session 2007-09
Semester 4th

KHALID AZEEM

8257

EXECUTIVE SUMMERY

We have selected Honda to create

marketing plan. As the Honda is market
leader and have opportunity for more
growth in Pakistan. The plan is above to
launch new Honda Jeep with name of
ABBAKZ-1 is going to be lunch on 14th
August 2008. The Jeep is fully equipped
latest safety tools and unique power. We
have prepaid complete market strategies to
lunch new Jeep. The total expenses of TV
Ads, Bill Board, New paper is 16.5
Million. The manufacturing cost include
other expenses is 6016.5 Million keeping
the sale price 4.5 Million. The total profit
per year is 2.835 Billion

DEDICATION
We are dedicating our work to our parents and respected teacher
Madam Soofia waleed, who have played a vital role in our studies
and have guided us at every step with their precious ideas. No doubt
this dedication is insufficient and we can never repay for the role
they have played in our studies but we are sure that their work will
prove itself an asset in our life

ACKNOWLEDEGMENT

We are very thankful to marketing department of Bata Shoe

Organization which gave us valuable information. We pay gratitude
to Bata staff giving valuable information.
We are also very thankful to SARDAR ABID ALI KHAN who
helped a lot us by giving up to date information.
We are very proud of our teacher Prof. Soofia waleed whose help
and instructions enable us to bind papers into project manner. We
are very thankful to him.

PREFACE
The most beautiful things we can experience are the mysterious .It
is source of all true art and science
(Albert Einstein, 1930)
This project is based on the topic which is assigned to us by our
respected teacher Madam Sofia Waleed, the organization which we
took for research is:

Vision
Focusing on satisfaction (customers, associates and
shareholders) with
Challenging spirit and flexibility, we are dedicated to
supplying latest generation cars with advanced technology,
greater fuel efficiency and competitive prices, along with
Friendly and efficient after sales back up, maintaining
quality as core of all activities.

TABLE OF CONTENT
1. CURRENT MARKET SITUATION ..... 08
1.1

PRODUCT REVIEW .... 11

1.2

MARKET REVIEW . 18

1.3

DISTRIBUTION .. 19

1.4

COMPITERS REVIEW ... 21

2. SWOT ANALYSIS ... 23

3. OBJECT AND ISSUE . 25
4. DEVELOP STRTEGY ... 26
5. ACTION PLAN (5W) . 32
6. BUGET . 33
7. REFERENCE 34

CURRENT MARKET SITUATION OF CARS INDUSTRIES

The current market situation of car industries in Pakistan is at worst

condition. Due to following reasons

1. Leasing
At the end of December, 2006. The President of Pakistan
Pervaiz Musharraf.
Introduced new polices for leasing. Starting from 2007 the banks in
Pakistan applied strict Polices for commercialization. This policy of
strict leasing rules directly effect on the production of cars in the
industry.
The no. of sold cars in 2006 was almost one million, which reduces to
three hundred thousands.
Now a day the leasing is totally eliminated from the banking sectors.

2. Branded and refurnished cars

Sheikh Rasheed had given the license of Branded and refurnished cars in
Pakistan. Custom duty had been free for branded and refurnished cars.
That is the reason; people of Pakistan purchased these cars like Vitz,
Platz, and Mini Pajaro.
CURRENT MARKET SITUATION OF HONDA

leasing and refurnished cars also have direct impact on the production of
Honda. But overall market situation Honda is better than other
companies. The annual production and growth shows that Honda is
market leader.
If we study the environment of Pakistan there is a opportunity for Honda
to have a new product line in the form of Jeeps. In Japan Honda has

already lunched the series of Jeeps with the name of CRV series. But
still in Pakistan there is no Jeep of Honda available.
In 2005-07 many refurnished Pajero and Jeeps were imported but they
could not satisfy the customers.

CAR INDUSTRY IN PAKISTAN

Honda Atlas Cars Pakistan Limited is a joint
venture between Honda Motor Company
Limited Japan, and the Atlas Group of
Companies, Pakistan.
All dealerships are constructed in accordance with the standards defined
by Honda World over. Percentage of local parts conforms to the
government's policy. Local vendors are continuously patronized to
develop parts locally. The quality of local parts is thoroughly checked to
meet stringent international standards. We always strive to give
outstanding service to our valued customers. In addition to providing
regular service to customers, the company also regularly conducts
Service Campaigns, to facilitate customer's need for service. This has
given our customers absolute confidence in our cars, clearly evident
from the ever increasing sale volume

Customer Service Centers

All the authorized dealerships in Pakistan are a source of customer
satisfaction. The after sale is supported by the immaculate service and
the availability of spares at competitive prices for every car sold. To
facilitate the customers for any assistance they require, we have a
separate department, called Customer Relations, at the head office. This
department is supported by the subsequent Customer Relations
Officers at all dealerships. The purpose of Customer Relations
9

Department and Customer Relations Officers is to enable our customers

in getting any sort of help required by them.

Free Services
HACPL is a customer service conscious company, for which it is always
looking for avenues to develop further relations with the customers who
have already purchased the cars. We consider purchase of car as the
beginning of relations with customers. To prolong this relationship and
encourage the customers to keep on coming to the dealership, to get
theirs cars maintained the Honda way we provide three FREE CHECKUP SERVICES to our customers.
These are basically three periodic check-ups at 1,000 Km, 5,000 Km and
10,000 Km mileage which are normally done after 1 month, 3 months
and 6 months of running the car. Other than providing service to
customers another reason for this facility is to stress on the importance
of periodic maintenance. Periodic maintenance is essential for every car
and if this is performed regularly as per the maintenance schedule the
car is trouble free and life of car increases by many years. For these free
services the labor is not charged, where as the customer has to pay for
only the consumable like engine oil, oil filter, etc..

Repair and Maintenance

HACPL is providing regular trainings to the dealers' technicians. The
trainings cover all aspects of the cars including the periodic
10

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.

Career
At Honda we believe that a skilled, motivated and diversified workforce
is the key to success in today's global market. The Power of Dreams is
alive at Honda. Our belief is that the best people produce the best
products. That's why Honda is constantly on the lookout for bright,
ambitious team players who have a strong commitment to improving
society, the environment, even themselves.
Honda offers exciting and challenging careers with competitive pay,
excellent benefits and exceptional advancement opportunities. With our
international presence in almost 200 countries and continued success
within Pakistan market, a career at Honda Atlas Cars can be both
rewarding and stimulating

11

PRODUCT REVIEW

All it takes is a single glance. You stop in your tracks. The elegant
silhouette draws you forward for a closer look. You peer into the sporty
cockpit and your pulse races with excitement Your instincts are aroused
and
your
feel
driven
to
grab
the
controls.

Performance
Honda heightens your driving enjoyment with a rare
combination of spirited engine response and exceptional
fuel efficiency. This ideal balance is achieved by Honda's
12

next-generation 1.8-liter SOHC i-VTEC engine - the first

entirely new Civic power plant in 17 years. Through
Honda's advanced i-VTEC (Intelligent Variable Valve
Timing and Lift Electronic Control) system and DBW
(Drive By Wire) technology, it performs like two types of
engines in one compact unit. At high engine loads, such
as when starting from a standstill or stepping on the
accelerator, DBW fully opens the throttle while VTEC
optimizes intake valve timing to generate 2.0-literequivalent power. At low engine loads, such as during
high-speed cruising, DBW narrows the throttle opening
while VTEC delays valve closing to achieve 1.5-literequivalent fuel efficiency. Settings are intelligently
switched in a seamless manner to ensure smooth, linear
response at all revolutions
Engine
Type
Valve Train
Fuel Supply System
Throttle System
Bore / Stroke (mm)
Displacement (cubic cm)
Compression Ratio
Maximum Horsepower
(bhp @ rpm)
Maximum Torque (lb.-ft @
rpm)
Ignition System

Water-cooled, In-Line 4Cylinder

16-Valve SOHC i-VTEC
Multi-Point Fuel Injection
Drive-by-Wire
81.0 X 87.3
1,799
10.5 : 1
140 @ 6,300
128 @ 4,300
Direct Ignition System with
Immobilizer

Steering

13

Gear Type
Steering Wheel Turns
(Lock-to-Lock)
Braking System
Type
Electronic Brake force
Distribution (EBD)
Tires / Wheels
Tire Size
Wheel Size
Wheel Type
Interior / Convenience
Interior color
Sun - roof
Steering Wheel
Speaker System
Seat Cover Material
Safety
Supplement Restraint
System (Airbags)
(Driver & Front Seat
Passenger)

Rack & pinion, Power assisted

2.67
4 - Wheel Disc ABS
O
195 / 65 R 15
15 X 6 JJ
Steel Wheel
5-Spoke
with Full Cover Aluminum Alloy
Grey & Beige
X
3 - spokes
4 - speakers
Tri cots

Grey & Beige

O
3 - spokes
4 - speakers
High Grade

Seatbelts - Front

Rear
Adjustable Shoulder
Anchor (Front)
High Mount Stop Lamp
Fog Lamps
Door Beams
High-tension Steel
Crumple Zones

Pre-pensioner
with EA
O

O
X
O
O
O

O
O
O
O
O
14

G - CON

Is there a better way to build a compact sedan?

Hondas affirmative answer is the revolutionary new City.
The New Honda CITY
TYPE
ENGINE
Type

MT

VARIO

iDSI (Intelligence Dual &

Steermatic1.5L
VTEC
SOHC, 4-

15

1300

Cylinder 16
valve-VTEC
PGMF-I
(Programmed
Fuel Injection)
1497

8.8:1

10.1:1

57 (78) / 5,800

81(110) / 5,800

106 (10.8) / 3,000

143(14.6) /
4,800

Sequential Ignition)
Fuel supply
system
Displacement
Compression
ratio
Maximum
horsepower
(KW(PS)RPM)
Maximum
torque
(N.M(KGM)RPM)

PGMF-I Programmed Fuel

Injection

Continuously
Variable
Synchromesh
Transmission
Transmission Steermatic (CVT
five forward,
Type
+ 7 speed mode)
one reverse
6 Position
(CVT)
STEERING SYSTEM
Gear Type
Rack and pinion, power assisted
Overall length
4390
(mm)
Overall width
1690
(mm)
Overall height
1485
(mm)
Wheel base
2450
(mm)
Tread Front
1455
(mm)
Tread Rear
1455
(mm)
Ground
160
clearance
16

SUSPENSION SYSTEM
McPherson strut with coil spring &
Front / Rear
stabilizer / H-shape Torsion Beam
BREAKING SYSTEM
Front
Ventilated discs
Rear
Leading / trailing shoe drums
TYPES / WHEELS
Tire Size
165/80 R13
185/55 R15
Wheel Size
13X5J
15X6J

Enter the cockpit of the New Accord and bask is

satisfaction. It engages the senses and attends of the
Driver's needs. With an array of innovative feathers, it
offers superior comfort and convenience. Accord is where
the true pleasure of driving begins

17

Type
Engine Block
Valve Train
Fuel Supply System
Throttle System
Bore / Stroke (mm)
Displacement (cubic cm)
Compression Ratio
Maximum Horsepower
(bhp @ rpm)
Maximum Torque (lb.-ft @
rpm)
Ignition System
Transmission
Manual
Prosmatec

Water-cooled, In-Line 4-Cylinder

Aluminum Alloy
16-Valve SOHC i-VTEC
Multi-Point Fuel Injection
Drive-by-Wire
81.0 X 87.3
1,799
10.5 : 1
140 @ 6,300
128 @ 4,300
Direct Ignition System with Immobilizer
Synchromesh 5 forward speed - 1 reverse
Compact 5- Speed Automatic (Progressive
Shift Management Technology)

Steering
Gear Type
Rack & pinion, Power assisted
Steering Wheel Turns
2.67
(Lock-to-Lock)
Dimensions
Overall Length (mm)
4,540
Overall Width (mm)
1,755
Overall Height (mm)
1,435
Wheel Base (mm)
2,700
Tread (Front / Rear) (mm)
1,500 / 1,530
Ground Clearance (mm)
High Road Clearance
Suspension
Front
Control-Link McPherson Strut Suspension
Rear
Reactive-Link Double Wishbone Suspension
Braking System
Type
4 - Wheel Disc ABS
18

Electronic Brake force

Distribution (EBD)
Tires / Wheels
Tire Size
Wheel Size
Wheel Type
Others
Fuel tank (Liters)
Interior color
Steering Wheel
Speaker System
Seatbelts - Front

O
195 / 65 R 15
15 X 6 JJ
Steel Wheel
with Full Cover

Grey & Beige

3 - spokes
4 - speakers
O

5-Spoke Aluminum Alloy

50 L
Grey & Beige
3 - spokes
4 - speakers
Pre-tensioned with EA

MARKET REVIEW

19

DISTRIBUTION
3S Dealership (Sales, Service, Spare Parts)
2S Dealership (Service, Spare Parts)
FAISALABAD Faisalabad
Main Canal Bank Road,
Faisalabad.
Tel: (041) 731741-3
Fax: (041) 731741

Honda Chenab
Green View Colony,
Akbarabad, Faisalabad.
Tel: (041) 2603349, 2603449
Fax: (041) 2603549

20

Gujranala
Honda Gujranwala
G T Road,
Gujranwala.
Tel:(0431) 893481-2
Hadraaba
Honda Palace
Shahbaz Town,
Jamshoro Road
Hyderabad.
Tel: (0221) 641178-9
Fax: (0221) 641519
Islamabad
Honda Classic
Plot 179, I 10/3, Industrial Area,
Islamabad.
Tel:(051) 4438801-02
Fax:(051) 2278553
Honda Classic Lounge
Pak Plaza,Blue Area 1019 Fazal Haq Rd.
Islamabad.
Tel:(051) 2278553, 2278528
Fax:(051) 2278553
Karachi
Honda Defence
67/1, Korangi Road,
Near HINO Circle, Karachi.
Tel: (021) 5805291-4
Fax: (021) 5805294
Email: hdha@hotmail.com
Honda Drive-In
118-C, Rashid Minhas Road,
Karachi.
Tel: (021) 4992832-7
Fax: (021) 4992823
Email: allibhai@hotmail.com
Honda Quaideen
2,33-A-2, PECHS
Karachi.
Tel: (021) 4556071-3
Fax: (021) 4554644
E-mail: allibhai@hotmail.com
Honda Sharah-e-Faisal
13, Banglore Town, Sharah-e-Faisal,
Karachi.
Tel: (021) 4527070, 454

Honda S.I.T.E.
C-1, Main Manghopir Road
S.I.T.E, Karachi.
Tel: (021) 2577411-2
Fax: (021) 2577412
Email: hondsite@cybernet.pk
7113-6
Fax: (021 Honda South
1B, Sector 23, Korangi
Industrial Area Karachi.
Tel: (021) 5050251-4
Fax: (021) 5064599
) 4526758
Email: hsf@gem.net.pk
Lahore
Honda City Sales
75 B, Block L,
Ferozpur Road Gulberg III Lahore.
Tel: (042) 5881881-3
Fax: (042) 5831147
Honda Fort
32 Queen's Road,
Lahore.
Tel: (042) 6314162-3
Fax: (042) 6361076
Email: hfort@nexlinx.net.pk
Honda Yakata
202-Y Commercial Area,
DHA Lahore.
Tel: (042) 2122200-3, 8444491-94
Fax: (042) 5892437
Honda Point
Main Defence Road,
Lahore Cantt.
Tel: (042) 5700994-95
Fax: (042) 5700993
Mire pur
Honda Canal
13-B, K Block, Shokat Khanum Bypass
Johar Town, Lahore.
Tel: (042) 5314168
Fax: (042) 5314169
Honda Empire
Mian Muhammad Road,

21

Quaid-e-Azam Chowk,
Mirpur Azad Kashmir.
Tel: (058610) 51500,51502-03

Tel: (048) 3226067,3226290,3226089

Fax: (048) 3226196
Sialkot

Multan
Honda Breeze
63, Abdali Road
Multan.
Tel: (061) 588871-3
Fax: (061) 588874
Email: hondabreeze@brain.net.pk

Honda Falcon
Pakki Koli, Daska Road,
Sialkot.

Pashwar
Honda North
Main University Road,
Peshawar.
Tel: (091) 854901
Fax: (091) 854753
Rawlapindi
Honda Center
300- Peshawar Road,
Rawalpindi.
Tel: (051) 5564525-28
Fax: (051) 5564524
Sargodha
Honda Citrus Field
7 KM, Lahore Road,
Sargodha.

432) 269656

22

Fax: (
32) 262578

COMPITERS REVIEW

COMPETITORS
The competitors of HONDA includes all the local and foreign Cars manufacturer including

Suzuki
Toyota
Mitsubishi
Mercedes
BMW
COMPETITION
The fear of threat of competitors is an increase strategy to deal with
competition soon finds itself out of the market. As with other
businesses, competition also affects the business of Competition is
increasing now a days due to many factors. Some are mentioned as
.Profit
.Accessible Technology
.Globalization.

Because of handsome amount of profit in a Car industry many new

Models entered in the market from the last few years. The competition
between the new entrants is fierce and already margins have collapsed.
Technology brings a revolution in every field of life. Machines are
used for better development of structure. Competition is also increasing
because of many multinational and local companies entered in this
business.

Competitors Analysis
The competition environment has a large impact on the marketing operations of

the company. Before launching a product, it is necessary to analyze the

competition environment of the target market. If there is a threat from

large competition, than a suitable marketing strategy has to be worked
out to overcome the problems. Product differentiation or price
leadership can lead to success. Current Industry competition is high
because of the Government policies and threat of new strong entrants.
We have three types of competition which are as follows
Brand competition
Form competition
Generic competition

Brand Competition
This competition deals directly with the brand name Different brands
of are available in the market who are directly Honda brand
competitors. Competitors are called sum of those companies which are
in same market, producing same product at same prices. When we
analyze the competitors we have to keep four important aspects of the
competitors in our mind.

1. IDENTIFY THE COMPETITORS

In identify study an organization has to identify the specific
competitors of identify its competitors, for this purpose Honda
classified competitors into two classes.

A.INDUSTRIAL COMPETITORS.
It means when Honda launches cars then they think about the Service
and private cottage industry.

B. MARKET COMPETITORS.
It means when we come with tea in the market we are not going to
compete only with Tapal but also with Coffee. This example helps us
to understand market competitors but when we talk about the Honda
product in the market we see there is not other substitute of cars as
coffee for tea hence all the industrial competitions are also the
competitions of Honda in market.

2. PLAYERS OF INDUSTRY.
Honda categories the business according to this concept into four types
.Market Leader.
.Market Follower.
.Market Challenger
.Market Nicher
In it we have to mention that what type of player our product to be so
Honda is doing this we compare in realistic manner then we see Honda
is market leader, Toyota is its challenger and Suzuki is market nicher.

SWOT ANALYSIS
SWOT ANALYSIS OF HONDA

STRENGTHS

.Quality of Cars
.Comfort ability of Cars
.Good Will
.Production Technology.
WEAKNESS

.Old Designing
.Lack of response (To and from customer)
Low Advertisement through Adds

 Low quality of body structure

OPPORTUNITY

.Export business expansion

.Increasing ratio on quality conscious people.

Honda can increase product line by introducing jeeps

THREATS

.Govt. unstable policies due to political unsuitability

.High market share of branded and refurnished cars
.Limited purchasing power.
Strict leasing polices may not be removed by the Govt.
Duty free agreement between China and Pakistan

OBJECTIVES AND ISSUE

The objective of our marketing plan is to introduce the

executive class product in the form of Honda Jeep.

To maintain the repute of Honda in the

Market
To introduce latest safety tools in car
industry
To introduce new design including
interior and exterior
To create fully automatic function
replacing manual function
To protect environment by introducing
smokeless engine

MARKETING STRATEGY
POSITIONING
Honda is placing itself in the country with the help of its different
departments. Marketing divisions has its distribution and selling
channels comprising
PRICING STRATEGY
As the Honda have relatively have price than other companies, so to
lunched ABBAKZ-1 its price will be 4.5 million.
PRODUCT STRATEGY
The quality of HONDA product is good but knows there are many
competitors in the market. We have to develop the following features
in ABBAKZ-1, .
Interior

.Durability
.Comfort ability

 .Reliability
Colors

Vogue silver metallic

Granada Black Pearl
Frost White
Charcoal Grey metallic
Canyon Stone silver metallic
Silver Grey
Cool Red
Cyprus Blue metallic

Advance Safety System

This advance safety system will protect the passengers in case of
accident,

Advance Breaking System

Comfortable Cockpit

DISTRIBUTORS
In order to manage distributors sales
1. Constantly control weekly / sales estimate
2. Advance orders intake as per estimates
4. Ship the supplies to distributors as per schedule.
5. Ensure back up stock in warehouse for managing timely supply.
6. Timely collection of outstanding as per wholesale policy.
7. Control and settle distributor's customers claims as per policy.
8. Control, analyze profitability of each channel.

9. Ensure price inventory of stocks held by distributors for reduction

increment and sales action.
10.

Study and keep track of competition activities.

11. To intimate sales promotions and executive. The same in

standardized form in distributors dealer store.
12.

To help all dealers, distributors informed about shoe collection

PROMOTION

ADVERTISING

The main purpose of the advertising department is to increase the sale

and enhance company image.
We have prepared three advertisements for ABBAKZ-1,
o First ad will be on -air. On first August 2008.
o Second ad will on air 14th august 2008.
o Thirst ad will be on air 30th august 2008.

There will be hundred bill boards erected in the mentioned cities.

PROMOTIONING THROUGH
CONSTRUCTIVE SOCIETAL EVENTS

In this term Honda Pakistanis latest gesture of support for community

projects in the country including sponsorship of a cancer walk
organized by "cancer research foundation" to raise funds for this
wordy cause. Honda banners featuring inspiring slogans to create
awareness amongst general public were highlighted which enhanced
company's image, as the event received excellent projection through
print and electronic media.
BSO has a contract with the leading advertising company "Interflow".
Both are collectively enhancing consumer's preferences through
advertisement. Interflow is handling the most part of advertising.
The advertisement is prepared for this purpose will be on air on 30 th
august.

SALES PROMOTION
We have prepared the sale promotion planning which is following
For first hundred customers there will be a gift of LG Flatirons 29
For next hundred users a gift of Nikon handy cam will be offered

ACTION PLAN
The jeep will be lunched according to following plan.
The ABBAKZ-1 will be lunched on 14th August. 2008.
The opening ceremony of ABBAKZ-1 will be held on 14th august
in Pearl Continental Hotel Lahore.
The ABBAKZ-1 will be available in five cities of Pakistan,
Lahore, Karachi, Islamabad, Peshawar.
For advertisement we have three ads of ABBAKZ-1

 First ad will be on -air. On first August 2008.

Second ad will on air 14th august 2008.
Thirst ad will be on air 30th august 2008.
The sign boards will be erected first August 2008 in five famous
places of Lahore. Century Tower, Calvalry Ground, Garden
Town, Pace, Thokar Niyaz Beig, and Azadi Chowk.

Budget
Description

Price

Total

Bill Boards
TV ads preparation
Ads display on Geo

20000x100
500000x3
100000x3

6 Million
3.5 Million

TV=30000x100
Nikon=10000x100
10000x100
100000/ month

4 Million

Sales Promotion
(TV+Nikion)+
New Paper Ads
Fund For Charity

1 Million
1 Million

Cost of Production

3x2000

6000 Million

Total

6016.5 Million

Details of Bill Boards

Size

Rate

Total

30x90 feet

20000/ per day

1.8 Million

20x60 feet

10000/ per day

0.9 Million

Cost of Production
The cost for making a ABBAKZ-1 is 3 million. The first production
will be 2000.
Revenue/Million
4.5x2000=9000

Expenses per year/

Million
13.5x12=162

Profit/Million
90006016.5=2983.5

The total profit for one year is 2983.5 Million or 2.9835 Billion.

REFERENCE USE

WWW.NORTHENGLANDS.COM
PRICIPLE OF MARKETING
PHILIP KOTLER CARY ARNSTRONG
11 EDITIONS
PRICE CONSIDRATION = Pg 307
Chapter 15 Advertisement and sales promotion Pg 455
Chapter 17 Competitive advantages