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HONDA ATLAS CARS PAKISTAN LIMITED is a joint venture between HONDA MOTOR COMPANY LIMITED Japan, and the ATLAS GROUP OF COMPANIES, Pakistan.
The agreements signed between the two sponsors are for technical collaborations for development parts and systems for manufacture of HONDA CARS in Pakistan. Pakistani and Japanese cultures have blended exceptionally well to form a professional team of Institute of Business Administration 1
The company was incorporated on November --, 1992 and joint venture agreement was signed on August ---, 1993. The ground breaking ceremony was held on April 17, 1993 and within a record time of 11 months, construction and erection of machinery was completed. The first car rolled off the assembly line on May 26, 1994. Official inauguration was done by President of Pakistan, Sardar Farooq Ahmad Khan Leghari. Mr.Kawamoto, President of Honda Motor Company Limited Japan was also present to grace the occasion. The company is listed on Karachi, Lahore and Islamabad Stock Exchanges.
On July 14, 1994, car bookings started at six dealerships in Karachi, Lahore, and Islamabad
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Since then the Dealerships Network has expanded and now the company has sixteen 3S (Sales, Service and Spare Parts) and thirty 2S (Service and Spare Parts) Pit shops network in all major cities of Pakistan.
Since the commencement of production in 1994 till March31, 2005, the company has produced and sold over 77,500 cars.
All dealerships are constructed in accordance with the standards defined by HONDA World over. Percentage of local parts conforms to the government's policy. Local vendors are continuously patronized to develop parts locally. The quality of local parts is thoroughly checked to meet stringent international standards. HONDA always strives to give outstanding service to their valued customers. In addition to providing regular service to customers, the company also regularly conducts Service
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6L and 1. clearly evident from the ever increasing sale volumes. In 1996 the full model change of HONDA CIVIC introduced. Institute of Business Administration 4 . This has given customers absolute confidence in HONDA CARS.5L were launched.1 Customer satisfaction. It is the constant endeavor of HONDA ATLAS CARS (PAKISTAN) LIMITED to achieve No . to facilitate customer's need for service. and to provide good value for money. In 1997 Honda CITY 1.Campaigns. after just one and half year of commencement of production. Three models in Civic VTI.3L car in Et and EX models and Honda City EXI with 1.5L engines were introduced in VTI and EXI models respectively. EXI and LXI with 1. HONDA ATLAS CARS (PAKISTAN) LIMITED is committed to meet customer expectations.
greater fuel efficiency and competitive prices.VISION STATEMENT: HONDA vision to position itself in Auto industry is stated by management as follows: Focusing on “satisfaction” (customer’. maintaing “quality” as core Institute of Business Administration of 5 . along with friendly and efficient after sales back up. we to supplying latest generation cars with advanced tech-nology. associates’ and shareholders’) are dedicated with challenging spirit and flexibility.
As a responsible member of society whose task lies in the preservation of the global environment. We should pursue our daily business interest under the following principles: Institute of Business Administration 6 .all activities. company will make every effort to contribute to human health and the preservation of the global environment in each phase of its corporate activity. but for the entire world. Only in this way will we be able to count on a successful future not only for our company.” HONDA'S ENVIRONMENT STATEMENT: HONDA environment policy established and announced in June 1992.
to services and disposal. Institute of Business Administration 7 . and in every stage of life cycle of these products. and will do his or her part to ensure that the company as a whole acts responsibly. • We will make every effort to minimize and find appropriate methods to dispose of waste and contaminants that are produced through the use of our products. • We will consider the influence that our corporate activities have on the regional environment and society. production and sales. each employee will focus on the importance of making efforts to preserve human health and the global environment. and endeavor to improve the social standing of the company. • As both a member of the company and of society.BUSINESS PRINCIPLES OF HONDA ATLAS CARS (PAKISTAN) LIMITED: ENVIRONMENTAL POLICY: • We will make efforts to recycle materials and conserve and energy at every stage of our products’ life cycle fro research. design.
• Recognize the impacts of the significant aspects on the environment resulting from our activities.HONDA ATLAS CARS (PAKISTAN) LIMITED. regulations and other requirements that apply to our activities. being responsible member of society considers the preservation of the global environment as a crucial concern reviewed on 30th June. 2004. Our environmental philosophy is firmly based on the following guidelines. • Operate in compliance with relevant environmental laws. environmental impacts mitigation and resource conservation as far as technically feasible. Institute of Business Administration 8 . • Formulate objectives and targets for pollution prevention. • Create environment friendly attitude among associates. products and services.
adequacy and effectiveness. That’s why HONDA ATLAS CARS PAKISTAN LIMITED is the first automobile company in Pakistan who has achieved “ISO 9002” certification. Institute of Business Administration 9 .• Commitment to continual improvement of the environmental performance and review of the environmental management system to ensure its suitability. Service to society. Customer satisfaction. HONDA ATLAS CARS PAKISTAN LIMITED is a quality conscious company. Maintain market leadership. QUALITY POLICY : At HONDA we are committed to focus all are activities leading to: • • • • Manufacturing high quality products.
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Institute of Business Administration 11 .quality . • PRIORITY STANDARDS OF CONDUCT:(safety .OTHER BUSINESS PRINCIPLES OF HONDA: Following are different policies &principles of Honda namely: • MANAGEMENT POLICY:(respect. be a corporate citizen). adequate return to share holders. 3s spirit. 3A “hand on approach”.productivity). • HONDA ATLAS CARS (PAKISTAN) LIMITED CORPORATE POLICY: (ideal working environment . dynamic marketing &manufacturing). man power importance.
requirements. • OPERATING PRINCIPLES:(always keep the dead line. never make excuses.providing opportunities for internal mobility through personal training and development.HEALTH AND ENVIORMENT:(comply with applicable Govt. avoid risks to human health ).• HUMAN RESOURCE AND SUCCESSION PLAN:(hiring competent associates . enabling them to take higher position). COMPANY INFORMATION: Institute of Business Administration 12 . • SAFETY . team work).
Takashi otsuki COMPANY SECRETARY Mr.THE BOARD OF DIRECTORS Mr. shirazi (Chairman) Mr. Jawad iqbal Ahmad Mr. Satoshi okamoto (President / ceo) Mr. Yosuf h. Motohide sudo Mr. Amir h shirazi Mr. Raffat iqbal Institute of Business Administration 13 . Hiromi mizutani Mr.
Chartered accountants accountants LEGAL ADVISORS Cornelius lane & mufti BANKERS Abn amro bank Habib bank ltd. F.a. Ferguson & co. Askari commercial bank Citi bank n. Deutsche bank Institute of Business Administration 14 .AUDITORS A.
honda.Muslim commercial bank The bank of Tokyo –Mitsubishi LTD. MANGA MANDI. PH : (042) 5750011 – 17 FAX : (042) 5750020. REGISTERED OFFICE 1 – MCLEOD ROAD.net.pk Institute of Business Administration 15 .com. LAHORE PH : (042) 7225015 – 17 FAX : (O42) 7233518 FACTORY 43 KM. LAHORE. 5765071 E-MAIL: email@example.com Web site : www. MULTAN ROAD.
ISO 9002 Certification achieved. Public issue of shares. Certificate of Commencement of Business. Rupee devalued by 7%. 10.. Japan. Rupee devalued by 8.000th car rolling out ceremony held.5% to 15%. Honda Motor Company’s 50th anniversary. 5% bonus shares approved at 5th AGM. 20% cash dividend proposed by the Board of Directors. Rupee devalued by 70%. Commercial production started. Technical Assistance Agreement signed with Honda Motor Japan First car rolling out ceremony held. Incorporation of Honda Atlas Cars (Pak) Ltd. 16 Institute of Business Administration . 10% cash dividend approved at 4th AGM. Rupee devalued by 8.7%.CHRONICLE OF EVENTS: Date Aug Nov Feb Apr July Mar Apr May July July July Oct June July Oct Jan Aug Sep Oct Dec Jan Mar Oct Dec June Oct Dec Dec Jan Apr Oct 05 04 10 17 31 01 26 13 13 16 10 22 20 29 10 11 10 22 30 22 28 15 15 26 1-6 01 08 28 13 20 Year 1992 1992 1993 1993 1993 1994 1994 1994 1994 1994 1994 1994 1995 1995 1995 1996 1996 1996 1996 1996 1997 1997 1997 1997 1998 1998 1998 1998 1999 1999 1999 Events Joint venture agreement signed with Honda Motor Co. Mr. 5.4%. Sales Tax reduced from 18% to 12.5%. Inauguration by President of Pakistan. 10% cash dividend approved at 6th AGM. Rupee devalued by 3. Completion of civil work and installation of Plant &Equipment. Honda City launched at Karachi & Lahore. Rupee devalued by 4. VTi Oriel lunched at Lahore. President Honda Motor Co. visited. New Civic ’96 launched at Karachi & Lahore. Japan. Ground breaking ceremony. Sales Tax increased from 12.5%. Kawamoto.65%. New ware housing facility added. N.000th car rolling out ceremony held.
Number of employees increased by 65.6% increase. Company has also started double shifts in present year.000 units per annum.185 million.9% increase & highest ever sales of cars i.10th Anniversary of HONDA ATLAS CARS (PAKISTAN) LIMITED celebrated. 20. Renovation and up-gradation work started at 3S Dealerships and Pit shops. In this year production capacity has enhanced to 30. 5th South-West Asia Environment Meeting held.056 units -70.C check up campaign conducted at all Honda 3S dealers and Pit stops.032.COMPANY OPERATIONS FOR THE YEAR 20042005: In this year company recorded highest ever production of the cars i.20.e. Surveillance Audit of ISO 9001& ISO 14001 held successfully. Institute of Business Administration 17 .Free engine tune-up and A.040 units -72.1% and reached to 1.e. Paint shops extended with capital investment of Rs.
McCarthy popularized a four factor classification of Product. However. There are literally dozens of marketing mix tools.Marketing mix: “The set of marketing tools that the firm uses to pursue its marketing objective in target market. They are not totally controllable. One primary goal is to create and maintain a marketing mix that satisfies consumer’s needs for a general product type. These components are called marketing decision variables because a marketing manager can vary the type and amount of each element. Promotion and Price. Marketing mix often is viewed as “controllable” variables because they can be changed. • • these tools called the four P’s. Place.” 4 P’s OF MARKETING MIX by (McCarthy): The “Marketing Mix” is probably the most famous phrase in marketing. there are no limits to how much these variables can be altered. Institute of Business Administration 18 .
WEB VIEW OF 4 P’s OF MKT MIX: Product Price Marketing Mix Product Promotion Institute of Business Administration 19 .
It includes product planning. It includes price determination.” OR It is the value that one puts on the utility that one receives of goods and services. pricing policies. Institute of Business Administration 20 . including psychological as well as physical benefits. PRICE: “Price is amount of money and /or other items with utility needed to acquire a product. and specific pricing strategies.EXPLANATION OF FOUR P’s ACCORDING TO ( WILLIAM J STANTON): PRODUCT: “It is a set of attributes assembled in an identifiable form. product testing. and the service accompanying the product. product research and development.” OR It can be defined as every want satisfying attribute a consumer receives in making an exchange.
Theory of Distribution Channel Structure (1966) Place is also known as channel. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer. transportation and storage costs as low as possible. Promotion includes such areas as sales management. or intermediary. distribution. OR It is used to facilitate exchanges by informing one or more groups of people about an organization and its products. Institute of Business Administration 21 . Coordination and evaluation of channels. Bucklin . OR A channel of distribution comprises a set of institutions which perform all of the activities utilized to move a product and its title from production to consumption. personal selling.PLACE: It is the making available of products in quantity desired to as many customers as possible and to hold the total inventory. persuade and remind the market of a product and/or the organization selling it. in hopes of influencing the recipient’s feelings. and inventory control. transportation. warehousing. advertising sales promotional programs and all other forms of marketing communications. PROMOTION: It is the element in an organization’s marketing mix that serves to inform. It includes selection. beliefs or behaviors.
MARKETING VARIABLE UNDER EACH “P” Institute of Business Administration 22 .
Product is actually the key element in the marketing offering. Institute of Business Administration 23 .Product is the first element among the four elements of marketing mix that are called as 4P’s of Marketing Mix. Product is meant to meet customer needs and satisfaction. The beginning of the marketing mix is to formulate an offering in order to make the customer’s need satisfied.
acquisition. events. use or consumption that might satisfy a want or need of the person. person. properties. Being working on HONDA ATLAS CARS we have to basically deal with a product that is luxury vehicles for the customers. organization. services. Institute of Business Administration 24 . Being a motor vehicle organization HONDA has established a complete brand name in the motor vehicles industry. predominantly tangible products are called as goods and intangible products are called as services. It includes physical objects. information and ideas.DEFINITION:“Product is anything that can be offered to market for attention.” It is said that product is much more than the physical attributes Pro PRODUCT TANGIBLE ATTRIBUTES INTANGIBLE ATTRIBUTES duct contains both tangible and intangible components. places.
PRODUCTS OFFERED BY HONDA ATLAS CARS PAKISTAN : Honda basically offers the consumers and business products both to facilitates the consumer. PRODUCTS OFFERED BY HONDA ATLAS CARS PAK LTD CONSUMER AS WELL AS BUSINESS VEHICLES HONDA CIVIC HONDA CITY Institute of Business Administration 25 .
HONDA CIVIC: Institute of Business Administration 26 .
HONDA CITY: Institute of Business Administration 27 .
PRODUCT STRATERGIES OF HONDA ATLAS ARS PAKISTAN: • New product strategy • Development process • Product mix • Position strategy • Product life cycle • Branding strategy • Product features • Product parts • Services • Product quality • Product design Institute of Business Administration 28 .
So the main aim of HONDA ATLAS CARS is to capture the market share by introducing the new in existing available vehicles. HONDA falls in 1ST category . The strategy of HONDA ATLAS CARS is to attract the customer with the unique characteristics of the vehicles. Replacement those are significantly different from the existing product. The core element behind their strategy is to introduce their vehicle in order to strengthen their reputation in the eyes of consumers.NEW PRODUCT STRATEGY: As we know the product innovation is of three types Products those are really innovative. Imitative products that are new t company but not new to market. As the automobile industry in PAKISTAN has diversity.HONDA ATLAS CARS is providing vehicles to the customer that is really new to customers & relatively different from the existing ones. Institute of Business Administration 29 .
As we know that the HONDA is made to deal with the requirement of the local customers. The following steps are taken by HONDA regarding development: Step # 01: Generation of new idea Step # 02: Screening of idea Step # 03: concept development and testing Step # 04: Marketing strategy Step # 05: Business analysis Step # 06: product development Step # 07: test marketing Step # 08: commercialization Institute of Business Administration 30 .DEVELOPMENT PROCESS ADOPTED BY HONDA: The development strategy regarding product of HONDA is being dealt by the HONDA MOTOR COMPANY JAPAN.
TEST MARKETING: After the analysis a survey is conducted from the target market by telling the introducing features of so that profitability of that project can be evaluated. On the other hand. COMMERCIALIZATION: Now the HONDA is in the position to launch a model with introducing features. 5. 4. and cost of adding new feature to the vehicles. IDEA SCREENING: All the new ideas cannot be implemented so HONDA screens the pool of ideas in order to refine them. HONDA ATLAS CARS is authorized in PAKISTAN to generate the ideas about improvement in their vehicles. GENERATION OF IDEA: HONDA always thinks about something new to meet the requirement of the customers.1. competition. to remain leading in automobile industry it’s the trend to give new features to the existing vehicles. for this purpose HONDA has some experts who analyze and guide the company to proceed. BUSINEES ANALYSIS: HONDA experts’ team estimates the market demand. Institute of Business Administration 31 . 3. 2.
PRODUCT MIX OF HONDA ATLAS CARS (PAKISTAN) LIMITED: A product mix is set of all products offered for sale by a company. PRODUCT MIX OF HONDA ATLAS CARS Breadth (No of product line) offered by Honda Depth (Variety of sizes. The structure of a product mix has both breath and depth. colors models) Offered by Honda Institute of Business Administration 32 .
Attributes offered by HONDA in various product lines are: 1. Honda generators 5.BREADTH: It is measured by the number of the product lines carried. SPECIFICATION The product mix of HONDA ATLAS CARS would be explained below: Institute of Business Administration 33 . colors and models offered within each product line. Honda city 3. COLOUR 2. Honda motorcycles 4. Honda boats DEPTH: It is expressed by the variety of sizes. Honda civic 2. The following are the product line of HONDA: 1. MODEL 3.
COLOUR: Colors that change your Life.HONDA CIVIC: 1. DIFFERENT COLORS OFFERED IN HONDA CIVIC Cyprus Blue Pearl Institute of Business Administration 34 .
Grantic Verde Metallic Cappuccino Brown Pearl Charcoal Grey Pearl Institute of Business Administration 35 .
Shalimar Rose Mist Vogue Silver Metallic Frost White Institute of Business Administration 36 .
MODELS: • Exi (MT) • Exi (PT) • VTi (MT) • VTi (PT) • VTi Oriel (MT) • VTi Oriel (PT) Institute of Business Administration 37 .Grenada Black Pearl Canyon Stone Silver Metallic 2.
5 1.493 81 (110) / 5.0 X 90.800 135 (13.9) / 5.8) / 4.0 X 84. Power assisted DIMENSIONS Overall length (mm) Overall width (mm) Overall height (mm) Wheel base (mm) Tread (Front / Rear) (mm) Ground clearance (mm) 4455 1720 1455 2620 1470 / 1470 170 SUSPENSION SYSTEM Front Rear New McPherson Strut front suspension New rear double wishbone suspension BRAKING SYSTEM Type Electronic Brake force Distribution (EBD) 4.M (KGM) / RPM) PGM .590 96 (130) / 6.600 146 (14.500 Fuel Supply System (mm) Bore / Stroke (mm) Displacement (cubic cm) Maximum horsepower (KW (PS) / RPM) Maximum torque (N.SPECIFICATION: The Dream Comes True HONDA CIVIC Specifications. Type ENGINE Type EXi VTi Water-cooled 4-stroke SOHC 16-valve in-line 4-cylinder Transversely Mounted PGM .FI (Programmed Fuel Injection) 75.wheel disc brakes X 4 .3.speed fully automatic (Progressive Shift Management Technology) STEERING SYSTEM Gear Type Rack & pinion.000 TRANSMISSION Manual Prosmatec Synchromesh five forward speed. one reverse 4 .wheel disc ABS (Anti-Lock Braking System) O TIRE / WHEELS Tire Size Wheel Size 185 / 65 R 14 (86H) 14 X 5 JJ 185 / 65 R 15 (88H) 15 X 6 JJ Institute of Business Administration 38 .III 75.FI + VTEC .0 1.
HONDA CITY: 1. Institute of Business Administration 39 .COLOURS: Colors that change your Life. DIFFERENT COLOURS OFFERED IN HONDA CITY: Following are the different colors that are offered in HONDA CITY.
Granada Black Pearl Frost White Cyprus Blue Pearl Silver Grey Pearl Vogue Silver Metallic Canyon Stone Silver Metallic Institute of Business Administration 40 .
MODELS: • Exi • Exi – s • Exi – s (AT) • Neo 1.Shalimar Rose Mist Pearl Charcoal Grey 2.5 • VARIO Institute of Business Administration 41 .
one reverse ---Continuously Variable Transmission 6 position (CVT) ---- STEERING SYSTEM Gear Type Rack and pinion.SPECIFICATION: The NEW HONDA CITY Specification Type ENGINE Type Fuel supply system Displacement Compression ratio Maximum horsepower (KW(PS)RPM) Maximum torque (N.5 57 (78) / 5.000 TRANSMISSION Manual Automatic Synchromesh five forward. power assisted DIMENSIONS Overall length (mm) Overall width (mm) Overall height (mm) Wheel base (mm) Tread Front (mm) Tread Rear (mm) Ground clearance 4310 1690 1510 2450 1454 1445 160 SUSPENSION SYSTEM Front / Rear Independent Strut / H-shaoe Torsion Beam BRAKING SYSTEM Front Rear Ventilated discs Leading / trailing shoe drums TIRE / WHEELS Tire Size Wheel Size 165/BO R13 13X5J Institute of Business Administration 42 .M(KGM)RPM) EXi-S VARIO iDSI (Intelligence Dual & Sequencial Ignition) PGMF-I Programmed Fuel Injectioni 1300 10.3.800 105 (10.8) / 3.
” In this way product is defined by consumer on important attributes. VARIOUS STRATEGIES OF HONDA: In order to better position the vehicles HONDA is tend to adopt the following strategies: 1. Institute of Business Administration 43 . To fend of its rival that is TOYOTA over here. HONDA has brought out successful models that are meeting the customers need so well. The management of HONDA has planned a position that distinguishes their vehicles from their competitor’s ones. In order to have the competitive advantage. distinctive and desirable place in the minds of the customers relative to completing products.POSITIONING IN RELATION TO COMPETITORS: As we know that HONDA has a solid differential advantage on its vehicles. HONDA offer great value to choose target segments by offering more benefits and luxury accessories to justify their prices.POSITION STRATEGY: “Market positioning is arranging for a product to occupy a clear. To make good position in the automobile industry the HONDA first identifies the possible advantages about its vehicles. It’s the shinning point of HONDA that after analyzing their positioning strategy they conclude that they provide maximum satisfaction to their consumers.
3. PRODUCT LIFE CYCLE: “The product life cycle consists of the aggregate demand over an extended period of time for all brands comprising a generic product category.POSITIONING IN RELATION TO PRODUCT ATTRIBUTES: Under this strategy the HONDA management has more concern because the consumers of these luxuries vehicle are more intended towards the product attributes. The strategy is to have no compromise over the quality of its vehicles in regard to the parts. HONDA has been continuously working to give more accessories to their vehicle in order remain alive in the minds of their target market.POSITIONING BY PRICE AND QUALITY: HONDA has been very successful in positioning its vehicle in relation to the price and quality.” The product life cycle consists of four stages: • Introduction • Growth • Maturity • Decline Institute of Business Administration 44 .2.
The need of the product disappears. marginal producers. but at a decreasing rate. often because of another product development. People simply grow tired of a product.DECLINE: In this stage. It is also called the pioneering stage. those with high costs or no differential advantage. 2.GROWTH: In this stage. 4. Institute of Business Administration 45 . a product is launched into market in a full-scale marketing program. During the other part of this stage. sales are decreasing because of these three reasons: • • • A better or less expensive product is developed to meet the same need. It is also called marketacceptance stage. sales continue to increase. sales and profits rise. 3. frequently at a rapid rate.1.MATURITY: During the first part of this stage. drop out of the market.INTRODUCTION: During this stage.
Institute of Business Administration 46 .HONDA’S PRODUCT LIFE CYCLE: HONDA lies in the early stage where sales continue to increase and profits are maximum. So HONDA tries its level best to maintain this present situation.
symbol. sign. term.BRANDING STRATEGY ADOPTED BY HONDA: It is common view that consumes view a brand name as an important part of the product and no doubt branding ads to the value of the product.” HONDA BRAND NAME: Institute of Business Administration 47 . Branding is actually: “A name. or a design or a combination of these intended to identify the goods and services of one seller to differentiate them with the products and services of their competitors.
BRAND CIVIC MESSAGE DISTRACTINGLY GOOD LOOKING PERSONA FOR THE STYLISH. HONDA ATLAS CARS PAKISTAN LIMITED builds brand persona for each brand. GOOD LOOKING PEOPLE FOR THE LUXURIOUS VEHICLE LOVERS CITY EXTREME PERFECTION Institute of Business Administration 48 . Promotion. BRAND PERSONNA: Every brand of HONDA has its own branding strategy.BRAND DECISION MADE BY HONDA: Brand decision of HONDA is based on the fact that it is most popular perceived by the customer as luxurious vehicle. Distribution and future products development follow brand persona. BRANDING STRATEGY: HONDA has struggled a lot to keep its brand being remain in minds of consumers. HONDA brand name has strong consumer loyalty but only in a specific target segment of the whole society. Under this regard the main strategy is to add the valuable features to vehicles to keep the brand loyalty. Pricing.
Institute of Business Administration 49 . It’s the car for people who know what’s happening. HONDA has adopted the same strategy that it has been continuously adding features to its vehicles. Who shape the time? There’s a lot to love about the Civic: It's reliable. economical and remarkably fuel-efficient. bumpers and grille.) LIMITED in regard to their features Honda Civic: The shinning features of Honda civic would be elaborated as follows: EXTERIOR: Distractingly good looking: New Civic has an exciting new style. Let have a look vehicles offered by HONDA ATLAS CARS (PAKISTAN. so you'll have a tough time concentrating on anything except its stylish good looks. It's now equipped with new headlights.PRODUCT FEATURE: To get a superior market share the product must have the salient features in it.
HONDA beige. pragmatically selected to stay clean and spotless for years.INTEROR: Comfort. Feel the difference! Institute of Business Administration 50 . weather and conditions. convenience and luxury with style: Trend should conform to climate.
COURTESY OF HONDA'S FLAT REAR FLOOR: Institute of Business Administration 51 .CIVIC SOPHISTICATION: GENEROUS AMOUNTS OF LEGROOM.
tilt & slide open moon roof with daylight shutter. OPEN MOON ROOF: Oriel . Institute of Business Administration 52 .AUDIO SYSTEM: Ten disc CD Changer with flip front stereo & remote control on all models.
GENEROUS LUGAGGE SPACE: METERS: Large innovative colored meters for easy reading. Institute of Business Administration 53 . ELECTRICALLY RETRACTABLE DOOR MIRRORS: Redesigned electrically retractable door mirrors reduces wind noise and can fold easy parking.
REAL WORLD CRASH TEST FACILITY: HONDA is committed to resolving the complex issue raised by real-world crash research. When braking hard or on slippery surfaces. Institute of Business Administration 54 . A sub frame in the shortened nose efficiently absorbs impact energy. HONDA ABS automatically lends expert braking assistance to help driver retain steering control Every door is equipped with two steel door beams that lend solid passenger protection in the event of a collision from either side.
crumples upon impact.Honda's G-CON technology moderates the force of impact and helps maintain around you and your passengers. Through innovative engineering and leading advances like as i-DSI engine and exclusive chassis platform. Innovative front side frame. The future takes form in The new HONDA CITY Institute of Business Administration 55 . HONDA CITY: EXTREME PERFECTION: THE SPIRIT Is there a better way to build a compact sedan? HONDA'S affirmative answer is the revolutionary new CITY. then bend like a joint to absorb maximum energy in a frontal collusion.
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The City unites a lower floor with a usually spacious cabin and luggage area. Institute of Business Administration 57 . Interior styling prioritizes the driver and is emphatically sporty and personal in its appeal.The NEW HONDA CITY provides spaciousness & functionality.
This safety technology is designed to control and absorb collision impact. Institute of Business Administration 58 . maintaining the structural integrity of the passenger space.SAFETY: Aiming for the world-class safety performance.around protection in the event of and accident. Great peace of mind in a compact body. HONDA'S original G-Force Control technology provides all.
Plus plenty of torque whenever you need it. PERFORMANCE: i – DSI Intelligence Dual & Sequential ignition Dramatically efficient fuel economy.Through relentless crash testing at various speeds and angles. HONDA'S unique new i-DSI engine uses two spark plugs per cylinder for maximum fuel efficiency. Greater driving range on the same amount of fuel. Leading friction reducing technology used in i-DSI engine provides ample power for enhanced Driving Pleasure. the City supplies protection that meets the world’s strict governmental safety standards. Institute of Business Administration 59 .
2) You will enjoy no warranty. 1) Most probably you will be buying smuggled parts and thus committing a moral crime and robbing your country from precious revenue. contribute to the country’s economy and enjoy the satisfaction of using 100% genuine HONDA Parts But if you buy the parts from open market. ENUINE PARTS HONDA GENUINE PARTS: But if you buy the HONDA genuine parts from HONDA DEALERS and enjoy 6 month's HONDA Warranty.Honda City's novel transmission "Vario" allows smooth step less power transfer from the engine to the wheels to match the mood. Institute of Business Administration 60 .
Service and Spare Parts. Institute of Business Administration 61 . 2) You can enjoy safe & satisfactory drive. For buying HONDA GENUINE ACCESSORIES please contact your nearest authorized HONDA Dealership. Sugoi Parts Center has started on 2nd July. Sales. 2001 with the objective to provide the Genuine HONDA Spare Parts to our valuable customers.3) You can never be sure about the genuineness of the parts you have purchased from the open market. Your help can go a long way to help achieve our goal.1 in customer satisfaction in all three S. By using Honda Genuine Parts. It is our aim to be No. 1) You can increase the life of your car. 3) You can increase the resale value of the car.
They’re part of the whole picture.
Only Genuine HONDA Parts are made to HONDA specifications to maintain the Quality, Reliability and Performance - Making them easy choice every time. • • • • When you install Genuine HONDA Parts you are getting a HONDA WARRANTY that you won't get anywhere else.
Genuine HONDA Parts maintain original operation specifications which can
keep your vehicle on the road longer and retain resale. Quality, Reliability and Performance attributes that have come to describe HONDA vehicle and also reflected in the Parts from which that are built. Each Genuine HONDA Part is precisely design and rigorously tested not only for it's individual performance but also it's interaction with the entire vehicle as well. This process helps ensure that each Genuine HONDA Part will function as its optimum.
HONDA MOTOR vehicles are equipped with many unique automotive system
which require special care to maintain their high levels of Performance and
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Reliability, that's why we have created a range of Genuine Fluids and
Lubricants specifically for your HONDA. Each of the Genuine Fluids and Lubricants is designed to perform a specific task, which is crucial to well being of
your HONDA. If it carries the HONDA Logo you can be assured of it is of superior quality.
PRICES OF PARTS & ACCESSORIES OF ONDA CIVIC:
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GENUINE BODY PARTS
Model Part Name
99-00 2001~ 7,000 5,500
99-00 2001~ 7,000 5,500
Head Light, Right / Left
99-00 2001 6,000 3,800
Back Light, Right / Left
99-00 2001 2003~ 3,000 2,200 2,800
Tail Light, Right / Left
99-00 2001 2003~ 2,500 2,200 2,800
99-00 2001~ 9,500 11,000
Mudguard (Fender) R/L
99-00 2001~ 7,000 4,500
99-00 2001~ 9,000 11,000
Mirror Assembly R/L
99-00 2001~ 4,500 5,000
Molding Front Windshield
99-00 2001~ 2,300 1,000
Base Front Grill
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600 Spark Plug 99~ 150 Front Disk Pads Institute of Business Administration 65 .800 3.500 Pressure Plate 99-00 EXi 2001~ VTi 2001~ 3.000 Timing Bearing 99-00 2001~ 1.800 3.200 1.PRICES OF MAINTANCE PARTS OF HONDA CIVIC: GENUINE MAINTENANCE PARTS Model Part Name Oil Filter 99~ 150 Price (Pak Rupee) Air Filter VTi 99-00 EXi 99-00 2001~ 700 450 450 Fuel Filter 99~ 1.000 1.300 Clutch Plate 99~ 2.100 Timing Belt 99-00 2001~ 1.
200 Horn High / Low 99~ 600 Bonnet Cable 99-00 2001~ 700 300 PRICSE OF PARTS & ACCESSORIES OF HONDA CITY: GENUINE BODY PARTS Model Part Name Front Bumper 97-99 2000~ 5.500 Institute of Business Administration 66 . Right / Left 97~ 3.500 9.000 4.000 Molding Front Windshield 97~ 1. R/L) 99~ 2. R/L) 99-00 2001~ 2.000 Mirror Assembly R/L EXi 97~ EXi-S 97~ 3.000 5. R/L) 99-00 2001~ 1.800 Back Light.600 1.500 Price (Pak Rupee) Rear Bumper 97-99 2000~ 6.200 2.500 Head Light. Right / Left 97~ 2.(4 Pieces.000 5.500 Rear Disk Pads (4 Pieces.500 Bonnet 97-99 2000~ 10.200 Rear Break Shoe (4 Pieces.
000 Institute of Business Administration 67 . 2002 to onward.600 850 Molding Front Grill 97-99 2000~ 1. All Prices are inclusive of Sales Tax.000 Pressure Plate 97~ 3.300 Clutch Plate 97~ 3.200 1.400 *Prices are effective from Oct 1st. PRICES OF MAINTENANCE PARTS OF HONDA CITY: GENUINE MAINTENANCE PARTS Model Part Name Oil Filter 97~ 150 Price (Pak Rupee) Air Filter 97-99 2000~ 500 450 Fuel Filter 97-99 2000~ 300 1.Base Front Grill 97-99 2000~ 1.600 Timing Belt 97~ 1.
called Customer Relations.000 Steering G/Box Rack End 97-99 2000~ 2. To facilitate the customers for any assistance they require.200 950 Spark Plug 97~ 150 Front Disk Pads (4 Pieces. at the head office. R/L) 97~ 2.100 1. R/L) 97~ 1.500 Emblum Front Center 97-99 2000~ 220 150 SERVICE FACILITIES: CUSTOMER SERVICE CENTERS: All the authorized dealerships in Pakistan are a source of customer satisfaction. we have a separate department. The after sales are supported by the immaculate service and the availability of spares at competitive prices for every car sold. The purpose of Customer Relations Department and Customer Relations Officers is to enable our customers in getting any sort of help required by them. Institute of Business Administration 68 .200 Rear Break Shoe (4 Pieces.Timing Bearing 99-99 2000~ 1. This department is supported by the subsequent Customer Relations Officers at all dealerships.400 Horn High / Low 97~ 850 Bonnet Cable 97~ 140 Bonnet Rubber 97~ 850 Antenna 97~ 2.
These are basically three periodic check-ups at 1. We consider purchase of car as the beginning of relations with customers. It is our endeavor to have uniform service standards made available at all dealerships in accordance with the international Honda standards. The trainings cover all aspects of the cars including the periodic maintenance. to get theirs cars maintained the HONDA way we provide three FREE CHECK-UP SERVICES to our customers. Other than providing service to customers another reason for this facility is to stress on the importance of periodic maintenance. Institute of Business Administration 69 . REPAIR AND MAINTENANCE: HACPL is providing regular trainings to the dealers' technicians.000 Km. 3 months and 6 months of running the car. trouble shooting and repairs according to HONDA standards. 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. To prolong this relationship and encourage the customers to keep on coming to the dealership. where as the customer has to pay for only the consumable like engine oil. 5. for which it is always looking for avenues to develop further relations with the customers who have already purchased the cars.FREE SERVICES: HACPL is a customer service conscious company. diagnostics.000 Km and 10. oil filter.000 Km mileage which are normally done after 1 month. 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. We consider the properly maintained vehicles not only to be a source of satisfaction to our customers.. etc. they also increase the sale value of their car.
WARRANTY EXCLUSIONS: The Warranty shall not be applicable in the following cases. batteries and other items which are warranted separately by their respective local manufacturers) found to be defective either in materials or workmanship. HONDA ATLAS CARS (PAKISTAN) LTD. provided that the manufacturer's recommended and required preventive maintenance services and repairs are strictly followed and the vehicle is utilized under normal condition.000 kilometers whichever comes first from the date vehicle is sold and is transferable. whether intentionally or by mistake. • Any damages which result from neglect of the periodic maintenance specified by HACPL. Any damage which results from operation other than as specified in the Owner's Manual. Any damage which results from use of non genuine parts. (HACPL) reserves the sole rights to the final decision in all warranty matters. or both with the exceptions indicated in the Warranty Exclusions here under.WARRANTY CONDITIONS & ADVANTAGES: WARRANTY PERIOD: The warranty of the vehicle is valid for 12 months or 20. WARRANTY COVERAGE: HONDA ATLAS CARS warrants that it will repair or replace Free of Charge any part it supplies (excluding tires. Any repair or adjustment performed by persons other than Dealer. or any damage resulting there from. • • • • Institute of Business Administration 70 . Any damage which results from repair or maintenance operations by methods other than those specified by HACPL. lubricant or fluid not recommended by HACPL. or of fuel.
That’s why HONDA ATLAS CARS PAKISTAN LIMITED is the first automobile company in PAKISTAN who has achieved “ISO 9002” certificate. For customers to become impressed with us HONDA need their continuous feedback to improve him selves for product and after sales service. Institute of Business Administration 71 . which is the in of HONDA. This is because the design and the technology used to make these cars are set by the Research & Development Department of HONDA JAPAN. PRODUCT DESIGN: HONDA is a multinational company which operates in different countries. In PAKISTAN only the assembling process is done 42% of the parts are manufactured locally and the remaining 52% parts are being import from JAPAN.• The vehicle which is not registered with the competent government authority. The models that are introduced in one country are exactly the same in other country. Designing process is some through out in the world. FEED BACK: HACPL believe the essence of real service is when a customer feels proud to say "I am glad to have bought a HONDA" -. PRODUCT QUALITY: HONDA ATLAS CARS LIMITED is quality conscious company.mainly because of HACPL quality service.
Pricing is highly important for an organization because it is the price which the consumers pay in the end to buy a particular product. channel decisions and promotion.” One of the four major elements of the marketing mix is price. or the sum of values that consumers exchange for benefits of having or using the product. Pricing is an important strategic tool because it is related to product positioning. So in order to draw money put of consumer’s pockets.“The amount of money charged for a product or a service. effective pricing should be adopted. PRICING APPROACHES USED BY HONDA: Institute of Business Administration 72 . Furthermore pricing affects other marketing mix elements such as product features.
COMPETITION. HONDA sets the prices based largely on its competitor Toyota.HONDA sets its prices based on two pricing approaches.BASED PRICING: It means rate pricing. Price of HONDA CARS is fixed and are not negotiable. DETAILS OF PRICES BY HONDA: Institute of Business Administration 73 . as they have been devised on certain rules of cost based pricing by HONDA INTERNATIONAL and HONDA PAKISTAN is supposed to adhere to those prices strictly. • Cost.Based Pricing • Competition-Based Pricing COST-BASED PRICING: This pricing approach suggests adding a standard mark up to the cost of the product. So price settings by HONDA tend to react to the changes in prices of TOYOTA products.
” Major parties and some brief definitions in leasing are as follows. Prices tend to change with the change in accessories supplemented with any particular model of HONDA CAR. LESSOR: The party that possesses the legal ownership of the equipment subject to leasing and that transfers the usage of the equipment to the Lessee against the rentals determined in advance with a contract that is the intermediary bank involved. “Leasing is a financial instrument enabling the utilization of a given fixed asset without possessing its ownership. LESSEE: The party that purchases the usage rights of the equipment in leasing transactions against the rentals determined in advance with the contract. Prices thus are characterized as: LEASING PRICES: We can define leasing as. Outright purchase and leasing have their respective effect on prices set by HONDA. that is the buyer of the owner.HONDA offers its variants in different prices. SUPPLIER: Institute of Business Administration 74 . Prices are dependent on the mode of purchase as well.
Calculate cost. Set pricing objectives.marketing analysis is performed. We can elaborate on those steps as follows: 1. 7. revenue maximization or price stabilization. 6. STEP BY STEP PROCESS OF DETERMINING PRICE: When we talk of determining the price. target market is established and product is positioned. a step by step process is undertaken to set the price of any car by HONDA. distribution and promotional tactics are determined. A company’s pricing decision is effective by both internal and external factors. Institute of Business Administration 75 . 2.Manufacturer or marketing company providing the equipment subject to the leasing contract that is HONDA MOTORS. Determine pricing. Currently for HONDA PAKISTAN all these steps are performed by JAPAN where the head office of HONDA lies. Understand environmental factors.all fixed and variable costs are accounted for. Develop marketing strategy. 5.for example profit maximization. 3. a pricing method is selected and a pricing structure is developed. DETERMINATION OF PRICE: Price is the only element that produces revenue. 4.quantity demanded variation with price is studied. Estimate the demand curve.competitors and their competing products are evaluated and other legal conditions are taken into consideration. Make marketing mix decisions. all other channels present cost.the product.using information collected in the above steps.
up Pricing Target Return Pricing Institute of Business Administration 76 .PRICING METHODS: PRICING APPROACH Cost Based Buyer Based Competition Based Mark.
PRICING OBJECTIVES: HONDA’S pricing objectives are identified in order to determine the most favorable pricing. SALES VOLUME MAX. MARKET SHARE STABILIZE SALES MEET COMPETITION Institute of Business Administration 77 . PROFITS MAX. Common objectives include the following: PRICING OBJECTIVES PROFIR ORIENTED SALES ORIENTED STATUS-QUO ORIENTED TARGET RETURN MAXIM.
the prices of HONDA vehicles change. Institute of Business Administration 78 . so they are settled in terms of Japanese currency Yen and then converted into Pakistani Rupee. Maximize Market Share. taking into account revenues and costs.HONDA follows the objectives of: Current profit maximization. These may include • Changes in Yen Rate • Changes in prices by Toyota • Increase or decrease in demand. It seeks to achieve maximum profits and notable ratio of return on the capital employed.HONDA wants to maximize its market share in auto industry and that is the goal followed by it while setting the price. So whenever there is a fluctuation in the rate of Yen.leading to unstable prices in the market CHANGES IN YEN RATE: As the Indus motor company is the subsidiary of HONDA MOTOR CORPORATION JAPAN and prices are negotiated and settled with the consultation of the parent company.seeks to maximize current profit. FACTORS AFFECTING THE PRICES OF HONDA CARS: Certain factors affect the prices set by HONDA from time to time.
The change in marketing strategies by TOYOTA in every dimension forces HONDA to react. CHANGES IN PRICES BY TOYOTA: TOYOTA is the major competitor of HONDA. HONDA has tried every possible means to put an end to this market disturbing factor by activating a Registration Law. Prices are announced by company management and they are supposed to be fixed and non. One major reaction towards changes is the reaction towards changes in prices by TOYOTA.negotiable unless done so by the HONDA itself. The consumers buying directly from the authorized dealers of HONDA get the car delivered to them in 6 months of time after the order processing and payment of the amount. the situation is entirely different.But all these efforts seem to go down the drain so far and the prices of HONDA vehicles seem to fluctuate largely in the market and cars are Institute of Business Administration 79 . The consumers who want the car immediately or on a short notice are not able to get the car from the authorized dealers of HONDA so that they are forced to get the car at a price higher than the company rate. The premium on HONDA CARS has become an uncontrollable variable these days. INCREASE OR DECREASE IN DEMAND: The demands of cars of HONDA tend to remain unfulfilled in comparison with the supply of the vehicles. We find that prices in the market tend to fluctuate and grow unstable with the change in demand of consumers. Yet when we go to the market to buy a HONDA CAR. demanding more information from the buyer and finally the imposition on National Tax Number (NTN).The parts of the cars are brought from JAPAN to assemble cars here in PAKISTAN so the change in rate of Yen affects the cost of these parts and thus the price of the car tends to react to that. HONDA and TOYOTA are thus seen in price related actions and reactions from time to time. This can be called in market terms as Premium on prices or ON for the cars. This leads to the unstable prices in market.
the orders which are already executed and payment is already made by the buyer and the delivery of the car is yet to be done and prices change meanwhile the buyer is bound to pay the excess amount if the price has increased or if the price has decreased he would be refunded the excess amount. These conditions can be elaborated as follows: • RIGHT OF CHANGING PRICES: HONDA reserves the right of changing the prices of its vehicles at any time without any prior notice to its customers. Consumers also need to know these conditions as these conditions directly affect their purchase dealing with HONDA.2000000 above the original company price. Institute of Business Administration 80 . TERMS AND CONDITIONS OF PRICES BY HONDA: There are few terms and conditions which need to be known while studying the pricing procedure of HONDA.100000 to Rs. • CHANGES IN PRICE AFFECTS CURRENT ORDERS: HONDA makes the transaction of sale of its cars under the condition that any change in price at any time would affect the transaction as well.being sold in the market on premium of more than Rs. That is.
• NO RIGHT OF OBJECTION ON PRICES TO THE BUYER: The buyer has not been given any right to object on the pricing policies. from the 61st day. So HONDA offers interest payment on this amount after 2 months. The buyer has to accept all the terms and conditions “as is.• INTEREST PAID BY HONDA ON THE AMOUNT: HONDA facilitates its buyers when it pays the purchase price amount to HONDA and waits 6 months to get the car. The buyer could have invested it somewhere and earn a return on it. given and stated by HONDA” Institute of Business Administration 81 . payment schedule and fluctuations in prices of HONDA. on the current bank rate for the next 4 months so buyer is facilitated. This can be perceived as a static amount of money as he hasn’t yet received the car and money is his but he cannot use it.
transportation and storage costs as low as possible. A company’s channel decision directly effects every other marketing decision. Coordination and evaluation of channels.” OR Place is the making available of products in quantity desired to as many customers as possible and to hold the total inventory.HONDA sees its distribution system as a key resource. For the development of the organization. warehousing. and inventory control. transportation. proper marketing channel is very necessary. and it is not easy to change. While placing the product the management has to face the many critic marketing decisions. HONDA’S corporate philosophy revolves around customer satisfaction which is symbolized in the dealer’s concept: • Sales • Services • Spare Parts Institute of Business Administration 82 . It includes selection. Since it takes years to build.PLACE: “A distribution channel is the set of people and firms involved in the transfer of title from producer to ultimate consumer or business user.
3-S Dealers: These dealers in addition to services and spare parts also offer cars for sale. Larkana. LOCATION: Generally.It is only in Lahore that there are both kind of dealer’s . Their are 18 authorized 3-S dealers all over Pakistan.CHANNELS: Honda uses one level channel for selling its cars. Faisalabad. Peshawar. The reason for 2-S dealers arises because in certain smaller cities like Multan. Institute of Business Administration 83 . This is done mainly through the dealers that are of two types: 2-S 3-S 2-S Dealers: These kinds of dealers provide only service and spare parts of HONDA. where 3-S dealers are located 2-S dealers are not designated for that area . Sargodha etc there are no centers providing such mechanical and technical services. So this has kind of negative effect on the sales of the company.The 3-S dealer is located in Garden Town where as the2-S dealer is located in Defense Housing Society.
INDIRECT MARKETING CHANNEL OF HONDA: HONDA ASSEMBLING UNIT HONDA’S AURTHORIZED DEALERS FINAL CONSUMER Institute of Business Administration 84 .DISTRIBUTION CHANNEL USED BY HONDA: The distribution channel used by HONDA is an Indirect Marketing Channel. There is no mark up pricing by the authorized dealers. HONDA sells cars to its customers by using by the following indirect channel. All the authorized dealers and their outlets are well established in the immediate vicinity of the target market segments and particularly in the niches of the interest of the company. It is the marketing channel having one or more intermediaries is called indirect marketing channel.
CHANNEL FUNCTIONS AND FLOWS:
The channel composed of corporate authorized dealers is aimed at performing the following key functions. • • • • • • Development and dissemination of persuasive communications in order to stimulate purchasing. Reach agreement on price. Place production requisitions, based on the orders, with the factory. They provide for buyer’s payment of bill through banks. They assumed risk connected with carrying out channel work. They gather information about potential and current customers, competitors and the other forces in the marketing environment.
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The five channel flows are commonly used.
Channels Flows Physical flow Title flow Payment flow Information flow Promotion flow
Practicing in HONDA Yes Yes Yes Yes Yes
CUSTOMER CONVENIENCE STRATEGIES:
HONDA has evolved some customer convenience strategies like: • • Showroom visit facility for potential buyers: HONDA arranges to give opportunity to feel and experience the car at their showrooms. Complimenting the cars sales, sale of spare parts and auto-servicing are a part of the authorized dealer’s outlet.
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CHANNEL MANAGEMENT DECISIONS:
As explained earlier the distribution for HONDA vehicles is corporate authorized so in order to keep a check on the efficiency of the channel the company has the following authorities to exercise and keep the process in track with the organizational objective. HONDA reserves the right to withdraw a resource or terminate a relationship if any component of the channel is not working efficiently. It gives extra benefits to distributors and particularly its sales personnel if their performance is notably excellent.
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Spare Parts) Institute of Business Administration 88 . Service.3S Dealership (Sales.
Ferozpur Road Gulberg III) Institute of Business Administration 89 . Block L. Industrial Area) Honda Classic Lounge (Pak Plaza. Main Manghopir Road) Honda South (1B. E. The facilities include Sale. Korangi) Honda City Sales (75B. Sharah-e-Faisal) Honda S. Spare Parts) Honda Atlas Cars (Pakistan) Limited has Dealership Network covering all of Pakistan. DETAILS OF 3-S DEALERS: The 3-S dealers are present in different cities.2S Dealership (Service. Korangi Road. Blue Area 1019 Fazal Haq Rd) Honda Defence (67/1. I 10/3. Faisalabad Gujranwala Hyderabad Islamabad Honda Faisalabad (Main Canal Bank Road) Honda Gujranwala (G. 33-A-2. Road) Honda Palace (Shahbaz Town. Jamshoro Road) Honda Classic (Plot 179. I. T. PECHS) Honda Sharah-e-Faisal (13. Near HINO Circle) Honda Drive-In (118-C. T. (C-1. Service and Spare parts. Rashid Minhas Road) Karachi Honda Quaideen (2. Sector 23. Banglore Town. and Dealership are equipped with all the facilities a modern dealership should have.
Lahore Honda Fort (32 Queen’s Road) Honda Fort Lounge (169Y. Azia Shaheed Road) DETAILS OF 2-S DEALERS: The 2-S dealers present in different cities. Abdali Road) Honda North (Main University Road) Honda Falcon (112. Defence) Mirpur A. Quaid-e-Azam Chowk. Following are names of these cities. Commercial Area. Honda Empire (Mian Muhammed Road. • • • • • • • • • • • • Abbottabad Bahalwalpur Burewala Faisalabad Karachi Azad Kashmir Islamabad Khanewal Gujrat Lahore Mardan Okara Institute of Business Administration 90 . Mirpur Azad Kashmir) Multan Peshawar Sialkot Honda Breeze (63. K.
• • • • • • Rahim Yar Khan Rawalpindi Sahiwal Sargodha Sukkar Vehari TRANSPORTATION: The company does not own trucks so it signs contracts with transport companies for the delivery of cars. The rate list is as follows: DESTINATIO N LAHORE FAISALABAD GUJRAWALA SIALKOT ISLAMABAD PESHAWAR MULTAN MIRPUR (AZAD KASHMIR) KARACHI HYDERABAD Institute of Business Administration FREIGHT 1500 3200 3200 3200 4500 5500 4200 4500 6000 5500 91 . Normally the cars are driven to Lahore but sometimes they are transported through trailers. The company charges different prices for the delivery of its cars keeping in view the distance of the place from the factory.
who has to decide about the number of cars present in the showroom. This decision is based on a number of factors such as sales. HONDA ATLAS CARS PAKISTAN LIMITED covers a large number of shares in Pakistani market. the cars are kept in the factory. location and distance from the factory.INVENTORY: The level of inventory at any outlet is up to the dealer and it is he. Institute of Business Administration 92 . WAREHOUSES: The company itself doesn’t own any warehouses. It is the dealers who own warehouses and they have to decide the number of warehouses required based on the inventory of the stock. Normally there are 15-20 cars always present in the stock of the dealer. MARKET SHARE: Market share means the number of shares a company has in its market as compared to its competitors.
The overall percentages of market share of HONDA in different cities are as follows: City Name Karachi Lahore Islamabad Multan. Faislabad. then according to the recent survey.OVERALL MARKET SHARE: If we consider only the market share of HONDA with its main competitor TOYOTA and others. But they are below 1300 cc. HYUNDAI and KIA they constitute the 20% of the market share. Others company like SUZUKI. But if we consider only the petrol cars. the market share is as follows: COMPANY NAME HONDA TOYOTA OTHERS MARKET SHARE 45%-50% 30%-35% 20%-25% This market share is for the cars. the share of HONDA is greater than 80%. NISSAN. which are above 1300 cc. Hyderabad Market Share 48% 38% 18%-20% 7%-8% Institute of Business Administration 93 . BEST SELLING SPOT: Best selling spot for HONDA CARS is Karachi. Sialkot.
They compete with HONDA because of their successful product in the market before the commencement of HONDA ATLAS in PAKISTAN. COMPETITORS: HONDA is currently facing the three biggest competitors in its class. This is because of the fact that TOYOTA has been manufacturing cars much before HONDA in PAKISTAN and the cars they have been manufacturing since 1993 are much environmental friendly than any other car manufactured in PAKISTAN.TOYATA: TOYOTA is considered to be the main competitor of HONDA because it is only one company. Faislabad is because low class resides in these cities. In 1. manual and automatic.Lahore is the second best selling spot for the HONDA. This category car having 1600 horse power is the direct competitor of HONDA CIVIC not only in the technique but also in luxury that they provide and the other facilities and add-ons. GL. that’s why the share is high in big cities and low in small cities. But now with the introduction Institute of Business Administration 94 . as it is producing three different models in this category i.e. Low share in other cities like Multan. These three main competitors are TOYOTA NISSAN SUZUKI 1. before. Firstly TOYOTA introduced GLi in both transmission categories i. The target market of HONDA is upper class.e. which has enough market shares that will directly influence the share of HONDA. XE and XEG.3 liter car’s TOYOTA can be considered as the market leader before.
But HONDA has no fear of them because of the fact that. According to the recent survey the graph of Baleno 1. HONDA is already the market leader in 1. But now few months back they launched their new models in the market at low prices as compared to HONDA and TOYOTA. But because of the big giants like TOYOTA and HONDA in the market this company cannot compete in the market and loses its share. Institute of Business Administration 95 .of new HONDA CITY 2000.SUZUKI: SUZUKI introduced its 1.3 is continuously declining because of their competitors like TOYOTA and HONDA. 3.0 liter fuel & Diesel cars respectively.6-liter car a few years back with the name of Baleno. TOYOTA is no longer a leader in the market because of the Luxury and style provided by the HONDA CITY 2000.3 liter class.3 liter in competition with HONDA CITY. They introduced two models GLi and GXi in the market having fuel injection system in the category of 1.6-liter class & 1. 2.NISSAN: NISSAN is not a direct competitor of HONDA because this company produces 1.6 & 1.4 liter and 2.
Simply stated. Through promotional activities. designed to stimulate quicker and greater purchase of products or services by consumer or the trade. Institute of Business Administration 96 . consumer gets all available products in the market. mostly short terms. to assist in differentiating its products. From a marketer’s perspective. and to persuade potential buyers. promotion is intended to make a product more attractive to the prospective buyer. Promotion is key ingredient in the product success consists of a diverse collection of incentive tools. promotion serves three essential roles It informs Persuade and Remind prospective buyers about the company and its products. A company uses promotion to provide information for the decision maker’s buying decision process.Promotion is one of the four P’s of marketing mix.
objectives of company’s promotion effort. the promotion mix is the organization’s combination of the following elements which help the company to achieve its marketing objectives. nature of the product. So. Designing an effective promotional involves a number of strategic decisions as target audience. Sales force Sales promotion Advertisement Public relations Direct marketing Institute of Business Administration 97 .PROMOTION MIX: An effective promotional mix is the critical part of virtually all marketing strategies. stages in the product lifecycle and amount of money available for promotion.
In front of HONDA ATLAS CARS there is a new view of communications as an interactive dialogue between the company and its customers that takes place preselling. selling. Institute of Business Administration 98 . consuming and post-consuming stages. In deciding of the marketing communication mix. and their previous and current attitudes toward the product and the company. They must also consider the type of the product market in which they are selling. how ready consumers are to make a purchase. marketers at HONDA must examine the distinct advantages and cost of each promotional tools and the company’s market rank. how many messages. and the product stage in the product life cycle.THE COMMUNICATION MIX: The promotion mix of the company is also called the communication mix. Measuring the marketing communications mix’s effectiveness involve asking members of the target audience whether they recognize or recall the message.
In HONDA the product is push through the channel. STRATEGY IMPLEMENTATION: HONDA MOTOR COMPANY LIMITED JAPAN HONDA ATLAS CARS (PAKISTAN) LTD. The HONDA MOTOR COMPANY heavily promotes the distributors among different countries in order to facilitate the customer. DISTRIBUTOR NETWORK END CONSUMER Institute of Business Administration 99 .PROMOTION STRATEGIES OF HONDA: PUSH STRATEGY: The HONDA MOTOR COMPANY is using the promotion program aimed primarily at middleman.
all methods as sales promotion. In HONDA ATLAS CARS the promotional budget is determined as 25-30% of sales. REGULARIZED PROMOTION: The HONDA ATLAS CARS is doing its promotional activities with the help of 18 authorized dealers all over the country. Dealers or Distributors are also determined their own promotional budgets (particularly at their outlets) for the promotion of the company. Then the customer liking is developed. The dealers are independently working in their own set ups but they are following the company’s policies and strategies. Resultantly. PROMOTION OBJECTIVES: The promotional efforts of the HONDA ATLAS CARS are aimed to induce the customer to buy the product. and direct marketing are used to influence the customer choices. Institute of Business Administration 100 .PROMOTION METHODS: In HONDA. Preference is created by distinguishing among other brands through the astonishing features of the automobiles. PROMOTION BUDGET: Establishing promotional budget is extremely challenging job. public relations. At first the awareness in the shape of the knowledge about the product features and facilities is to be provided. strong conviction leads the buyer to purchase the product. advertising. its product and the outlet as well.
SALES FORCE AT HONDA:
The sales representatives are the company to many of its customers. It is the sales reps that bring back much needed information about the customer. Therefore the company needs to carefully consider issues in sales force design. The sales force is regularly trained and different training programs are arranged for them here in PAKISTAN. Whereas for some highly specialized staff, training programs are arranged in JAPAN. Their sales force training is conducted on “FABE”.
F= feature A=advantage B=benefit E=evidence
The sales force personnel have to tell the prospective buyers that what are the features of the product they are offering, what are the advantages and benefits its offering and finally present evidence of the claims?
STRATEGIES AND OBJECTIVES:
HONDA’S corporate philosophy revolves around customer satisfaction, which is symbolized in the 3-s concept. HONDA is the pioneer in the 3-s system, which offers sales, services and spare parts all from the same facility. So taking into account the 3-s concept the human resource department recruits the sales force and trains them according to the specifications. The responsibilities and the targets are assigned them on order to be fulfilled .In case if the performance standards are not met then the workers are to be fired. The important tasks, which performed by the sales force for the AGC, are as follows:
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Communicating Selling Servicing Information gathering Allocating
The sales managers form promotion policies and advise the sales force according to it. The order taker takes the provisional booking orders. These provisional booking orders numbers are assigned to the customers to ensure the delivery of the products at the promised right time to the right customer.
SALES FORCE TRAINING:
The training sessions, courses, papers and presentations are arranged in which the new sales techniques are introduced to enhance the knowledge of the employees in order to make them familiar with the contemporary happenings. The company trains the dealers each month. The lectures are held in Lahore and Karachi; the dealers from Singh and Baluchistan attend lectures in Karachi whereas dealers from Punjab and Peshawar are trained in Lahore. HONDA also organizes competitions among the dealers to measure their performances. A new technique offered in JAPAN and the managers were invited to learn more.
SALES FORCE STRUCTURE:
The sales force strategy at HONDA has implications for the sales force structure. The company comprise of three types of sales force structures:
A strategic market sales force composed of technical, applications and quality engineers and service personnel assigned to major accounts.
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A distributor’s sales force calling on and coaching HONDA distributors. An inside force doing telemarketing and taking orders via phone and fax.
THE STRUCTURE OF HONDA’S SALES DEPARTMENT:
Deputy Sales Manager
Assistant Sales Manager
Manager Corporate Sales
Correspondents of Leasing Companies
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which the HONDA ATLAS CARS derives from the use of the sales promotional tools. BENEFITS OF SALES PROMOTION: There are three benefits. designed to stimulate quicker or greater purchase of products by customers.SALES PROMOTION: Sales promotion is considered as “Incentive to buy” And can be described as “It is a verity of short term incentives to encourage trial or purchase of a product or service. As it consists of a diverse collection of incentive tools. mostly short term. 1.” Sales promotion is a key ingredient in HONDA’S marketing campaigns. Communication 2. Incentives 3. Invitation MAJOR CONSUMER PROMOTIONAL TOOLS: In HONDA major promotional tools are as follows: Product warranties Point of purchase displays and demonstrations Adequacy of repair facility Institute of Business Administration 104 .
Customer service follow ups Service packages for customers Events related to customer prizes Free check-up campaigns on regular basis The warranty is normally given for one year or on 20. Every distributor is responsible for its own advertising program.” The marketing department of the distributors holds HONDA’S advertising.Advertising plays a very significant role in the promotion of new product. There are different forms of advertisements that a company performs according to the nature of the target market. goods or services by an identified sponsor. ADVERTISING: Advertising means “Reasons to buy” And can be described as: “Advertising is non personal presentation and promotion of ideas. Institute of Business Administration 105 . The purpose of advertising is to introduce the customer by the new product and to give the information about the existing product. This warranty is based on the parts replacement.000 kilometers drive. It’s usually more attractive then the other promotional campaigns. which comes earlier. The demonstrations are also given to the customer in order to aware about the product’s exclusive features.
FEATURES OF ADVERTISING: The features of HONDA’S advertising are as follows: 1. Impersonality (the audience does not feel obligated to pay attention or respond to advertising.) 4.) FIVE M’s OF ADVERTISING: The marketing force at HONDA make the five major decisions about the advertising program which they want to develop and execute in order to make familiar the customer with the company’s product. Amplified expressions (advertising provides opportunities for dramatizing the company and its products through the artful use of print. sound and color. Public presentations (advertising’s public nature confers a kind of legitimacy on the product and also suggest the standardized offerings) 2. Mission Money Message Media Measurement Institute of Business Administration 106 . Pervasiveness (permits the sellers to repeat a message many times) 3.These major five decisions are called as five M’s of advertising.
Institute of Business Administration 107 . product of the company and the company itself. associates and the shareholders) with challenging spirit and flexibility. “An advertising goal is a specific communication task and achievement level to be accomplished with the specific audience in a specific period of time. maintaining “quality” as core of all activities. greater fuel efficiency and competitive prices. we are dedicated to supplying latest generation cars with advanced technology. along with friendly and efficient after sales back up. persuade.” This is based upon the company’s policy that whether the company wants to inform. remind or reinforce the customer about its products.” HONDA’S ADVERTISING MISSION: The company’s advertising mission is stated as follows: “Focusing on the “satisfaction” (customers. MONEY: The authorized dealers of HONDA spend almost 10% of their sales for the advertising of their outlets.MISSION: The advertising mission normally comprises of the sales and advertising objectives.
The procedure of message communication is completed through several different steps. Message execution 4.STAGE IN PRODUCT LIFE CYCLE: This budgeting is based upon the stage in the product life cycle as the ATLAS COMPANY’S products like HONDA is in the stage of early maturity so the distributors are spending this much amount of sales money for the advertising purposes. On a cost per impression basis. Message generation 2. HONDA has already gained a market share of 48%. Message evaluation and selection 3. MARKET SHARE AND CONSUMER BASE: As high market share brands usually require less advertising expenditure as a percentage of sales to maintain share. Social responsibility review Institute of Business Administration 108 . MESSAGE: Another important aspect of advertising is message communication for which an advertising agency puts all its efforts. it is less expensive to reach consumers of a widely used brand than to reach consumer of low share brand. DEVELOPMENT OF A CREATIVE STRATEGY: Steps followed: 1.
communication objectives. OBJECTIVES OF AN EFFECTIVE MESSAGE: To do To know To believe Institute of Business Administration 109 . exclusiveness and believability.To cut down the costs the ad agency prepares the feasibility report through market research in which the company’s expenditure and consumer responses are analyzed. the higher the probability of finding an excellent one. This agency decides the number of alternative ad themes to be created before making a choice. benefits to promise and the media to be used. target audience. STEP 2(Message Evaluation And Selection): Messages can be rated on desirability. The more time spend by the advertising agency tends towards higher costs. The more ads that are independently created.STEP 1(Message Generation): The advertising agency uses a deductive framework for generating advertising messages.”It is an elaboration of the positioning statement and includes key message. The ads agency after finding an effective appeal prepares a “creative brief.
Now-a-days company uses all these Medias for the promotional purposes by time to time. Institute of Business Administration 110 . According to the different surveys this method has quite good effects on the sales of HONDA. MEDIA SELECTION: The media planner in the company uses both the electronic and print Medias in order to communicate the promotion message to the prospects. Effective ads are positioned in two ways: EFFECTIVE POSITIONING Rational Positioning Emotional Positioning These both two methods of positioning are used for executing messages by the ads agency. No yellow journalism is there. which works for the HONDA ATLAS CARS.STEP 3(Message Execution): The message’s impact is not only depends upon what is said but often more important on how it is to be said. STEP 4(Social Responsibility Review): The HONDA ATLAS CARS are ensuring the safe promotion of its product through their advertising agency and assuring not to harm social and legal norms.
Institute of Business Administration 111 . they would prefer to cut down the prices instead of spending millions of rupees on ads.It does not advertise on satellite. This is due to the fact that mostly the buyers are not PTV watchers . The timings were 7:40 pm & 9:40 pm because maximum people are watching television at these times. as the advertising cost is much too high.The following Medias are covered under the pre-described two categories: TYPES OF MEDIA Electronic Media Print Media Electronic media includes: Television Direct mail Internet Print media includes: Newspaper Magazine Brochures Newsletters COMMUNICATION MEDIUM: The media preferred by HONDA is news papers especially the English one. At one time they used to advertise on prime time.
believe or do? 3. How does the ad make you feel? 5. What is the main message you get from this ad? 2. What works well in the ad and what works poorly? 4. The questions which are asked by the company are as follows: 1. What do you think they want you to know.MEASUREMENT AND EVALUATION OF EFFECTIVE ADVERTISING: The company makes both the communication effects research and sales effect research in order to determine the message’s impact. The most important measure of the company’s effective message evaluation is CONSUMER FEED BACK. How likely is it that this ad will influence you to undertake the implied action? HONDA’S ADVERTISING MESSAGE: “THE POWER OF DREAMS” Or “REALIZING YOUR DREAMS” Institute of Business Administration 112 .
For public relations they participate in different types of programs to increase the interest of public and to introduce their now product via these promotional campaigns. Ability to catch buyers off guard 3.” At HONDA the PR department monitors the attitude of the organization’s public relations and distributes information to build good will. HONDA ATLAS is engaged in different programs to promote the sales through public relations. FEATURES OF PUBLIC RELATION: The appeal of public relation is based on three distinctive qualities: 1.PUBLIC RELATIONS: Public relation involves “A variety of programs designed to promote or protect a company’s image or its individual products. The PR departments spend time counseling top management to adopt positive programs and to eliminate questionable practices so that negative publicity does not arise in the first place. High credibility 2. Dramatization Institute of Business Administration 113 . The PR department established by the distributors receives complaints from the customers and then these complaints are transferred to the HAC head office so that suitable actions are taken by the company in order to resolve customer’s problems.
FUNCTIONS PERFORMED BY PUBLIC RELATION (PR) DEPARTMENT AT HONDA: They perform the following functions: Corporate communication Press relation Product publicity Counseling MAJOR TOOLS IN PR: The major tools which are used in establishing public relations as follows TOOLS IN PR Newsletters Annual Report In this regard they are also following the strategies of Relationship Marketing. It can be described as: “Building mutually satisfying long term relations with key parties” Institute of Business Administration 114 .
interactive TV and mobile devices. typically a consumer’s order that why this is some times called direct-order marketing. websites. Catalog marketing Institute of Business Administration 115 . Websites 3. DISTINCTIVE CHARACTERISTICS OF DIRECT MARKETING: HAC shares four distinctive features of direct marketing: 1. Direct mail 2.DIRECT MARKETING: Direct marketing is the consumer direct channel to reach and deliver goods and services to consumer without using marketing middlemen. These channels include direct mail. catalogs.) 2. Nonpublic (the message is normally addressed to a specific person. Interactive (the message can be changed depending on the person’s response) CHANNELS OF DIRECT MARKETING ADOPTED BY HONDA: 1. Up-to-date (a message can be prepared very quickly) 4. The HONDA ATLAS CARS is using all the astonishing elements of this fastest growing avenue of consumer servicing. Customized (the message can be prepared to appeal to the addressed individual) 3. The company seeks the measurable response.
Fashion shows are also held from time to time for the promotion of Institute of Business Administration 116 . It was such a success that in the month of MAY it was booked by the counterparts of HONDA for the next basant. A rally from Islamabad to Bhurban was also arranged by HONDA in which any car of 1300cc and above (only HONDA) was allowed to participate.honda. The theme of the rally was “wear seat belts---your family loves you”.com. where they provided all the beverages. kites.pk It is regularly updated and maintained according to the specification. and voice mail. announcement. Like in FEBRUARY 2003 a basant festival had been arranged on the rooftop of PEARL CONTINENTAL. The idea behind this rally was to promote the safety of motorists. CATALOG MARKETING: In this regard the company sends full line product catalogs usually in print form but also sometimes as CD’s. EVENTS: Different events are arranged from time to time for the promotion of sales of HONDA CARS. One of the websites is as follows: www. reminder or other item to the consumer through fax mail. videos or online. e-mails. as the complete information of features and facilities is available on the Internet. WEBSITES: The websites of the company are also used in enhancing the customer’s view about the product. food etc.DIRECT MAIL: The company involves in direct mail marketing i-e sending an offer.
ANNUAL SURVEYS: HONDA ATLAS CARS PAKISTAN LIMITED arranges the annual surveys in which different activities are done: 1. Education Level 7. Brand Survey 5. Social Group 6. Customer Choice a. Market Trend Institute of Business Administration 117 . Reading Habits b. Market Share 3. Customer Satisfaction 2.HONDA. TV Watching Habits 4. All these are the “Model Launch Event” and the “Brand Building Event”.
subscribed and paid up Reserves Unappropriated profit 750.110.000 9. 2005 2005 Rupees EQUITY AND LIABILITIES: SHARE CAPITAL AND RESERVES: Capital Authorized 75.000 CONTIGENCIES AND COMMITMENTS: 11.414.094. accrued and other Liabilities Dividends 9.FINANCIAL ANALYSIS: BALANCE SHEET: AS AT MARCH 31.888.000 178.000 4.000 1.999.735.000 0 Institute of Business Administration 118 .000.000 2.000 2004 Rupees LONG-TERM Liabilities: Staff Retirement Benefits - CURRENT LIABILITIES: Finances under mark-up arrangements-secured Creditors.000 420.000 94.792.000 420.000.037.735.369.000.914.884.000 Ordinary shares of Rs.000 750.425.512.388.716.160.783.000 4.000 2.00 6.579.653.000.000 4.698.10 each Issued.693.500.000 1.000.000 4.000.
469.000 3.487.539.159.000 1.153.514.907.085.000 17.293.329.000 5.003.230.000 665.927.604.419.985.546.000 33.000 3.656.873.060.783.000 1. Advances.328.000 73.000 10.00 0 6.286.792.000 OTHER LONG TERM ASSETS: Long Term Investments Long Term Loans and Deposits Deferred Tax Assets CURRENT ASSETS: Stores and Spares Stock-in-trade Trade Debts Loans.000 7126.96.36.1998.000 44. Prepayments and other Receivables Cash and Bank Balances 11.987.000 15.000 25.000 22.000 70.000 1.000 599.2005 Rupees ASSETS: FIXED CAPITAL EXPENDITURE: Property.000 694.000 750.000 28.913.832. Deposits.909.229.000 Institute of Business Administration 119 .878. Plant and Equipment Intangible Assets Capital Work-in-progress 649.000 2004 Rupees 492.160.000 812.814.583.000 6.999.670.685.000 36.000 525.000 19.
000 264.000 Institute of Business Administration 120 .035.683.000 83.629.978.000 96.000 8.585.358.000 73.540.083.86 211.000 755.000 620.000 16.000 622.010.000 45.000 9.145. 2005 2005 Rupees Sales Cost of Goods Sold 16.587.093.391.000 280.450.000 2.369.000 199.217.288.73 Profit after taxation Earnings per share-basic and diluted (rupees) 162.000 3.612.602.000 5.190.000 408.000 16.495.481.730.956.000 2004 Rupees 9.179.PROFIT AND LOSS ACCOUNT: FOR THE YEAR ENDED MARCH 31.000 Operating Profit Other Operating Income Other Operating Expense Finance Cost Profit before taxation Taxation 258.000 595.000 160.510.000 668.304.000 Gross Profit Administration and Selling expenses 283.968.182.193.000 197.
361.056.225.960.160.976.684.000) (22.468.000) (177.921.337.000) (3.251.CASH FLOW STATEMENT: FOR THE YEAR ENDED MARCH 31.000 84.000 (316.000 (2. 2005 2005 Rupees Cash flow from operating activities Cash generated from operations Financial charges paid Long term deposit Income tax paid Staff gratuity paid 3.000) 3.000) Net cash (Outflow) from financing activities Net Increase in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year (177.000) 100.122.097.514.909.638.000) (4.893.000) 2004 Rupees Net cash Inflow from operating activities Cash flow from investing activities Fixed capital expenditure – tangible Fixed capital expenditure – intangible Sale proceeds of fixed assets Interest received 3.821.014.000) (784.000 0 (269.000 (243.110.933.00 2.000) 1.000) (5.142.000) 2.000) (155.233.00 2.00 3.280.282.000) (146.000 0 Institute of Business Administration 121 .000) 8.077.000) (240.213.976.000 47.909.262.359.078.473.514.873.00 1.000 0 5.987.821.566.160.000 0 3.000) (146.000 Net cash Outflow from investing activities Cash flow from financing activities Dividend paid (932.323.000 (5.
SWOT ANALYSIS: SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. Learned. Because it concentrates on the issues that potentially have the most impact. Weaknesses. It is applicable to either the corporate level or the business unit level and frequently appears in marketing plans. C. WEAKNESESS: • The booking procedure is too long. Opportunities and Threats. Institute of Business Administration 122 . • If the cars are required at a short notice then the distributors or the intermediaries involved take a considerable amount of premium on the actual price. Roland Christiansen and William D. Guth in business policy. The general electric growth council used this form of analysis in the 1980’s. It uses latest technology and luxurious interior in the vehicles. power and style with its vehicle. It delivers the genuine parts with the 6 month unique warranty. STRENGTHS: • • • • The image of the company is well established. HONDA is offering comfort. the SWOT analysis is useful when a limited amount is available to address a complex strategic situation. The SWOT framework was described in the late 1960’s by Edmund P. SWOT stands for Strengths. as it takes done 6 months to get the orders delivered.
• Through the annual dinners and other ceremonies arranged by the company the distributors are able to interact their more and more prospective customers.OPPORTUNITIES: • • The HONDA Company can expand the network of its distributors all over Pakistan. The company can enhanced its image at international level through the provision of more sophisticated facilities in their product. • The economic environment is characterized by more uncertainty and it respond more to the international scenarios. THREATS: • A threat is in the form of premium which the distributor are taking from the customers and thus disturbing credibility of Honda about stability of prices. Institute of Business Administration 123 .
“P.E. For this reason.S. POLITICAL ANALYSIS: POLITICAL STABILITY: The political stability in the past years has been below the desired level. TRADE REGULATIONS AND TARIFFS: There have been quotas. some way that “PEST” is an appropriate term for these factors. Institute of Business Administration 124 . Economic. a change in the external environment also creates new opportunities and the letters sometimes are rearranged to construct the more optimistic term of step analysis.T. The developmental policies formulated by one government are replaced by the next government before they are implemented. Social. and Technological factors of the external macro-environment. tariffs and high restrictions on the foreign trade.” Such external factors usually are beyond the firm’s control and sometimes present themselves as threats. However.PEST ANALYSIS: A Pest analysis is an analysis of the external macro-environment that affects all firms. With effect from January 2005 the trade is expected to grow very rapidly. is an acronym for the Political.
ECONOMIC ANALYSIS: TYPE OF ECONOMIC SYSTEM IN THE COUNTRIES OF OPERATIONS: There is a mixed economic system prevailing in PAKISTAN. GOVERNMENT INTERVENTION IN THE FREE MARKET: Government is intervening only in a limited industries and the remaining are run under the free market mechanism. After the 9-11 crisis there was a recession in USA which started spreading its effects on Pakistan also just in the hours. Institute of Business Administration 125 . EFFICIENCY OF FINANCIAL MARKETS: The efficiency of the financial markets is improving over the last two decades and is believed to improve much fast in next few years. So the business cycle stage is recession. BUSINESS CYCLE STAGE: Business cycle stage in PAKISTAN is the mirror reflection of that in other advanced countries like USA.
204 thousands hospitals beds in the country which in term of population-doctor ratio works out to be 1466 persons per doctor and 1517 persons per hospital bed so much more efforts need to done to improve health care and preventive services. Institute of Business Administration 126 . SOCIAL ANALYSIS: DEMOGRAPHICS: The official sources say that the population of Pakistan is growing at the rate of 2. The availability of 101.ECONOMIC GROWTH RATE: The growth rate according to the federal bureau of statistics can be viewed by measuring GDP growth. The GDP growth was 6%.1% per annum and the population for the year 2003 is estimated to be 149 million. Core IT policy strategies have been proposed for many focus areas. TECHNOLOGICAL ANALYSIS: RECENT TECHNOLOGICAL DEVELOPMENTS: The government is according higher priority to the information technology (IT) sector.6 thousand doctors 98. HEALTH: The present health infrastructure with 906 hospitals.
HONDA must prioritize and scrutinize those factors that influence its industry. HONDA may turn to various techniques to deal with high levels of uncertainty in the important macro-environmental variables. Institute of Business Administration 127 . In practical terms.TECHNOLOGY’S IMPACT ON PRODUCT OFFERING: As the technology is changing the buying behavior of the prospects changes and also the changes in the product mix and promotion mix take place. In this regard. Even so. it may be difficult to conjecture future trends with an acceptable level of accuracy. We can say that the number of macro-environmental factors is practically infinite.
HONDA produces boats also. so the main profit shares as well as designing.OVER VIEW AND SUMMARY OF THE HONDA ATLAS CARS PAKISTAN LIMITED: HONDA ATLAS CARS COMPANY is a joint venture between HONDA MOTOR COMPANY JAPAN and ATLAS GROUP OF COMPANIES PAKISTAN LIMITED. engines of almost of all kinds of product HONDA is a “GIANT” manufactures in the engine industry. ATLAS GROUP of companies receives more % of profits. development ideas and costs are bear by HONDA MOTOR COMPANY JAPAN LTD. HONDA MOTOR COMPANY LIMITED JAPAN has 51% shares in this joint venture. In HONDA ATLAS CARS COMPANY PAKISTAN. Institute of Business Administration 128 . This joint venture is for the manufacturing of HONDA MOTORCYCLES. Where as in another joint venture b/w these two companies ATLAS GROUP OF COMPANIES have 51% shares. In all over the world.
PRODUCT LINE OF HONDA JOINT VENTURE B/W Honda (51%) &atlas Joint venture b/w Honda &Atlas (51%) Honda Japan CARS Honda Civic Honda City Honda motorcycles Generators Boats Institute of Business Administration 129 .
HONDA cars regarded as # 1 due to high quality engines and several other features.OUR ANALYSIS: HONDA ATLAS CARS COMPANY PAKISTAN LIMITED is really well known motor vehicle company. Most of the depreciation is computerized. So HONDA is enjoying a sound reputation in the market. by introducing the HONDA CIVIC HYBRID. especially consumer’s cars. The prices of the few models of HONDA ATLAS CARS are lower as compared to the prices of their competitors. stand at # 2 after the TOYOTA in gas efficient cars. We found no contradiction when we compare the statement of HONDA staff with general dealers and customers. HONDA has contributed a lot in gas efficient cars. sells due to brand name of HONDA. HONDA ATLAS CARS gives priority to consumer satisfaction and it is the constant endeavor of the HONDA ATLAS CARS OF PAKISTAN is to “Achieve the # 1 customer satisfaction” HONDA made heavy engine cars. the most efficient cars (diesel cars) are being produced by HONDA’S important competitor “TOYOTA”. 1600 cars first introduced by the HONDA (JAPAN). HONDA ATLAS CARS. Where as. Institute of Business Administration 130 . HONDA ATLAS CARS maintains quality standards. Products are manufactured according to scientific standards.
Institute of Business Administration 131 . cars (both city and civic). and boats. HONDA ATLAS CARS should explore new market.e. generators. HONDA ATLAS CARS should improve in producing the gas efficient cars. Safety and Protection from the environmental aspects of its associates and the society. HONDA ATLAS CARS should restructure its policies. HONDA ATLAS CARS conducts its business responsibly in a way to make sure Health. HONDA ATLAS CARS should work on the more improvement in its product line .SUGGESTIONS: After visiting this organization and go through our analysis we are at the position to give some suggestions: HONDA ATLAS CARS should add more product line because it can cash its reputation.i.
Institute of Business Administration 132 .
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