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A PROPOSAL REPORT SUBMITTED TO THE DEPARTMENT OF MANAGEMENT SCIENCES, VIRTUAL UNIVERSITY OF PAKISTAN IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER IN BUSINESS ADMINISTRATION
Submitted By: Muhammad Usman Mc070400252 Session 2007-2009 17-04-2009
Submitted To: Project Management Department MKT-619
Department of Management Sciences,
Virtual University of Pakistan
I would like to dedicate this project to my respected Khawaja Saleem Warsi who made me able to enter to join MBA Program; He was a Professor in Government Islamia College, Karachi. His kind encouragement, help, and motivation has been supporting me at every stage during MBA, This kind Professor has always step by step with me when ever I faced problem during Study.
Start with the name of ALLAH who is very beneficiary and merciful. I am very Grateful to Almighty ALLAH Who Gave me a Power to research and write on this report. After that I am very Grateful to My respected elder Khawaja Saleem Warsi who made me able to enter in MBA Program, than my guardian, my kind Instructor of Final Project (MKT-619) Whose Guidance and instruction Helped and encouraged me at every Stage of this Project. I will ever memorize this Great personality. I am also Grateful to my honest and sincere friends who provided me suggestions when ever I needed
EXECUTIVE SUMMERY The reason of conducting survey in the field of Brand loyalty comparison between Toyota Corolla and Honda City, I have been worked out ascertain acceptance and attractiveness of the Toyota Corolla and Honda City. The issues has been becoming as to consumer behavior that what those opinion, perception, attention involved in to go Toyota Corolla and Honda City brands. Research has been conducting by (Honda and Toyota) dealers’ interviews, questionnaire filling by fifty Toyota Corolla and fifty for Honda City lovers simultaneously in which middle and upper middle class people has been participating. The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. It is one of the most vital and idiosyncratic Sector in Pakistan consists of immense engineering technology. This sector provides superior technology inflows in Pakistan by setting up high-quality plant in various location of Pakistan. There are 39 assemblers, manufacturing cars, including light vehicles, buses, trucks and tractors, in the country. Further, Pakistan is manufacturing almost all body parts and mechanical parts, plastic components, tires, batteries, seats and some parts of car engines. However, some critical parts of the units are still imported by the assemblers This sector provides the new shape in the standard of living in Pakistan also contributes in achieving the Economics goals & targets by providing the direct employment of more than 192,000 Peoples besides the investment of Rs 98 billion in this sector also contributes 3.6 dollars annually in GDP. The market for the locally assembled passenger cars and light commercial vehicles are continuously in a growing trend by producing 204K units in 2007 as compare to the 187K units in the last year. Pakistani Automobile Sector Consist of four main players in the domestic market and their cumulative share is about 95% of the total car Markets these includes Pak Suzuki Motors Company, Indus Motors Corporations, Honda Atlas, Dewan Farooque Motors Limited. Among these four, Pak Suzuki enjoys the position as a market leader (62%) than
by the Indus motors (27%) followed by Honda Atlas (9%) & Dewan motors (2%) respectively. Indus Motors is the country's second largest auto manufacturer, after the Pak Suzuki Motors, located near Bin Qasim Karachi, having an assembling capacity of 55,000 units per annum. Indus Motors Company is a Joint venture between Toyota Motors and House of Habib (HoH). Its core business is to manufacture and market cars. In addition, the company also sells auto parts and accessories. Its product line includes 9 variants of Toyota Corolla, 8 variants of Daihatsu Cuore and 2 variants of Toyota Hilux. The company also offers six different imported vehicles namely Toyota Camry, Prado, Land Cruiser, RAV, Hilux and Hiace. Major contributor to the revenue is Corolla, having a contribution of 66.5% in company's sales. Last year, the company has completed its expansion plan that increased its capacity to 55,000 units per annum. The company has further expansion plan to almost double its capacity to 100,000 units by financial year 2011 for which it has already acquired land. The net Sale of Indus Motors Company of year 2008 is 42,948,826. Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company Limited Japan, and the Atlas Group of Companies, Pakistan. The company was incorporated on November --, 1992 and joint venture agreement was signed on August ---, 1993. The ground breaking ceremony was held in 1993. Company has produced and sold more than 150,000 cars till Oct, 2008. Honda Atlas Cars Pakistan Limited earned Profit before tax of Rs.55.2 million as against Rs.30.9 million in the same period last year. The other income increased from Rs. 36.6 million to Rs. 55.2 million including from higher return on the bank deposits. Since the last year, the company focused to improve liquidity through reduced short term and long term loans which resulted in Rs. 0.5 billion at the end of the quarter as against Rs. 2 billion in June, last year.
TABEL OF CONTNETS Acknowledgement Executive Summery
1. CHAPTER #1.................................................................................................................1 1.1. 1.2. 1.3. 3 1.4. 1.1 1.2 1.5. 1.6. 1.7. 1.8. Indus Motors Company (IMC) Introduction:........6 Mission Statement of Indus Motors Company:...........9 Vision statement of Indus Motors Company:............10 List of Competitors.................................................10 Project Objective:....................................................11 Significance of the project:.....................................12 Project Proceeding:.................................................13 INTRODUCTION.....................................................1 The Background of the Project:...............................3 Introduction of the organization’s business sector:
2. CHAPTER #2...............................................................................................................13 .a 2.2 .a .a 19 3. CHAPTER# 3...............................................................................................................20 Marketing Strategies:......................................................21 .a .a .d .a Market Segmentation strategies:..................................22 Target marketing strategies:.........................................22 Product Planning and Development:............................23 Brand Positioning:........................................................27 vii Marketing Objectives:..................................................13 Toyota Marketing Mix 4 P'S:..................................15 Structure of marketing department ..............................18 Marketing Functions of Indus Motors Company (IMC):
.a .a 4. .a
Pricing Strategies:.........................................................29 Advertising and Promotion:.........................................29 Distribution Strategies:.................................................29 SWOT ANALYSIS OF INDUS MOTORS:................30
4. CHAPTER# 4...............................................................................................................31 a. .a .a .a .a .a .a .a Introduction of Competitor:..........................................31 Honda Atlas Marketing Objective:...............................33 Honda Atlas Marketing Mix:....................................34 Marketing Operations/ Function of Marketing Department:............................................................................................................37 MARKETING STRATEGIES:....................................40 Market Segmentation Strategy:....................................40 Target marketing strategy: ...........................................41 Brand(s) positioning:....................................................42
.i Pricing Strategy:......................................................................................................43 .a .a Advertising and Promotion:.........................................43 Distribution strategies:.................................................44
5. CHAPTER# 5...............................................................................................................44 .a .a .a .a .a .a FEATURES OF TOYOTA COROLLA AND HONDA CITY ......................................................................................................................44 Brand Loyalty of TOYOTA COROLLA:....................44 Toyota Corolla Characteristics, Features and performance:...........................................................................................................46 Brand Loyalty of HONDA CITY:................................48 HONDA CITY Characteristics, Features and performance:...........................................................................................................48 Conclusion of TOYOTA COROLLA and HONDA CITY Brand Loyalty:.............................................................................................50
6. CHAPTER# 6...............................................................................................................50 .a Data Collection Sources:..............................................50 viii
.a .a .a .a
Data Collection Tools:..................................................50 Questionnaire Analysis.................................................51 Interview analysis.........................................................63 Summery......................................................................68
7. CHAPTER# 7...............................................................................................................70 .a CONCLUSION:...........................................................70 Recommendation: ..........................................................71 8. CHAPTER# 8...............................................................................................................72 .a .a Student Introduction:....................................................72 Appendices...................................................................73
Figure 1.............................................................................................................................57 Fig 2...................................................................................................................................73 Figure 3.............................................................................................................................73 Figure 4.............................................................................................................................73 Figure 5.............................................................................................................................73 Figure 6.............................................................................................................................73 Figure 7.............................................................................................................................74 Figure 8 Honda City Technical Specification:..............................................................74 Figure 9 Toyota Corolla Technical Specification:........................................................75 Figure 10 Comparison by Technical Specification and Price: ..................................79
SECTION I 1. CHAPTER #1 1.1. INTRODUCTION In the world trade, Automobile Sector is one of the largest segments. It is the major driver of economic growth and business activities. It puts multiplier impacts on the economy. Day-in, day-out around 200,000 vehicles roll off the world’s assembly lines with car as the dominant segment of the industry. The automobile sector has been registering high growth for the last four or five years due to the country's business friendly policies along with lower tariff rates, persistent growth in GDP, and per capita income. The automotive industry rightly prides itself on being recognized as the “mother of all industries.” In its folds it carries many different kinds of vehicles to provide mobility to people and goods. While they may appear to be simple machines, their design and manufacturing have much deeper roots in all the known technologies. In-depth knowledge and skillful application of mechanical, electrical, electronics, chemical and a host of other technologies culminate in achievement and improvement of the manufacturing base of a country, by focusing on a single product the automobile. This then provides an opportunity to produce a large number of goods and services for consumption of the entire international community. Use of the word “mother” for automotive industry is therefore the most appropriate description to define the nature and importance of the industry. Automotive industry in Pakistan started in 1950 and has gone through different phases1950’s (Private sector). 1960’s (Private sector). 1970’s (Nationalization). 1980’s onward (Privatization & entry of private sector). It is indeed heartening that the mother has once again smiled at Pakistan; fortunately the last 3 years have witnessed phenomenal growth in the industry in terms of technological advancements and production/sales volumes with the local contents rising as high as 90%. The industry is already employing 120,000 people; contributing more than 12 billion rupees to GDP, contributing more than Rs. 30 billion to the national exchequer in terms of duties 1
and taxes, attracted investment worth Rs. 52 billion including a substantial foreign investment. Today the customers have choice to pick from a wide range of products including motorcycles, trucks, buses and cars of premier Japanese and Korean brands at internationally competitive prices, which has only become possible due to local contents and availability of highly productive and inexpensive human resources. In Pakistan the automobile components manufacturing industry consists of mainly units producing original components for assembly under deletion program and units are producing reconditioned and original components for local use. In Pakistan the automobile components manufacturing industry consists of mainly units producing original components for assembly under deletion program and units produce reconditioned and original components for local use. There are more than 800 vendors in the country with a total investment of over eight billion rupees; they are engaged in the manufacturing of original components for the assembly operation under the deletion program as well as producing reconditioned and original components for sale in the local market. The models of Toyota Corolla and Honda City 1300cc car has been able to achieve the popularity level among car lovers in Pakistan as the company expected before its import, the companies source told that "The sales of Toyota Corolla and Honda City vehicle have Raised, Before introducing Toyota Corolla/ Honda City 1300cc cars, the Toyota company has completely vanished its most popular brand Corolla, and Honda vanished by Civic whose demand was up throughout the country. The demand for old Corolla cars is still moving up in the second-hand car markets. Common perception about Toyota Corolla and Honda City is that it Success to fulfill the perceive value of the customer, the price paid is much lower against the value, in our research work we try to identify how strong these arguments are? What are the reason behind to not fulfilling the perceived value of customer, is this marketing or a manufacturing failure, is there any role of imported cars.
Project Proceeding: Due to limited time the research on TOYOTA COROLLA and HONDA CITY will be conducted in Karachi only. I have been working approximately for 2 month of time period. As the research will be conducted during the figures and assumptions quoted in this research report will only be applicable for this period of two months. This Project is
1.2. The Background of the Project: The background of the topic is to analyze Brand loyalty of Toyota Corolla and Honda City Cars that success in the Car Market. I will find out the reasons and factors those make them strengthen and Strong position in the market for that I decided to work on it. For that we must need to very closely and detailed overview of the company. Common perception about Toyota Corolla and Honda City is that both companies have been fulfilling the perceive value of the customer, the price paid is much reliable against the value, in my research work; I will identify how much strong these arguments? What the reason are behind to successfully fulfill the perceived value of customer, what are the marketing or manufacturing success, is there any some other aspects or role to make more loyal customer. Toyota Corolla and Honda City fulfill the whole of the customer’s need as they want in every of aspect but customer had already mindset about the price of both different Brand that these cars providing luxurious, reliable, and durable Facilities which other Car manufacturer are not much able to provide at competitive price. Toyota Indus and Honda atlas has been producing luxurious car its time where as customer will be aware to the Toyota and Honda Car with reference to those brand, these brands penetrated in customer’s mind so Toyota and Honda has been getting a place in car market. 1.3. Introduction of the organization’s business sector: Indus Motors Company (IMC) is the member of PAMA - Pakistan Automotive
Manufacturers Association in which all automobile related business companies playing a vital role in the Association. The location of PAMA - Pakistan Automotive Manufacturers 3
Association is the 1st Floor, Block-C, Finance & Trade Centre, Shah-rae- Faisal, Karachi. The PAMA objective is to promote progressive manufacture of automotive vehicles (cars, commercial vehicles, motorcycles, farm tractors) in the country. Toyota Motors produces an estimated eight million vehicles per year, about a million fewer than the number produced by General Motors (world largest automobile Company) The company dominates its home market, with about 40% of all new cars registered in 2004 being Toyotas. Toyota also has a large market share in both the United States and Europe. And Pakistan’s second largest automobile company somehow Suzuki company gain competitive advantage instead of other automobile companies in Pakistan due to cost leadership strategy and another major advantage is that they are producing 800cc car at economical cost means in Pakistan perspective middle status people are now able to adopt auto at affordable price but if we talk about the 1300cc cars that is majority in Pakistan as well so its advantage goes to Toyota corolla in 1300cc car producing it is the number one automobile company in Pakistan It has significant market shares in several fast-growing South East Asian countries. The - 1 -company produces a large range of vehicles which are highly regarded for their quality, engineering, and value; their designs set global standards for safety, reliability and ease of maintenance. The Company Philosophy "Do the right thing for the company, its employees, the customer and the society as a whole." The story of Toyota Motor Corporation TMC began in September 1933 when Toyoda Automatic Loom created a new division devoted to the production of automobiles under the direction of the founder's son, Kiichiro Toyoda Soon thereafter, the division produced its first Type A Engine in 1934, which was used in the first Model A1 passenger car in May 1935 and the G1 truck in August 1935. Production of the Model AA passenger car started in 1936. Although the Toyota Group is best known today for its cars, it is still in the textile business and still makes automatic looms (fully computerized, of course), and electric sewing machines which are available worldwide.
The Indus Motors business Sector has been established in many aspects but in Pakistan they are doing business in automobile industry they are manufacturing many of vehicle like Cars, Jeeps, single cabin, double cabin, 2x4, 4x4, Hilux, Delux, Hiace and many others. Present Status: IMC on achieving the milestone of over 50,000 vehicle sales in the year 2007 and appreciated the company for increasing its production capacity to meet the demand for its vehicles. He reiterated Toyota's ongoing commitment and support to IMC for further expanding production facilities and acknowledged the efforts of the Indus Team for continuously improving their skills and their efforts for building quality cars. Indus Motors Company has been impressive 1400 sq meters Training Center, which will provide core trainings as well as multiskill development. Cumulatively, since inception, over a million menhours of training had been done by Indus to enhance the capabilities of its team. Indus Motors company also inaugurated the modern, state of the art, Vehicle Display Center at MakroHabib on Shah-rahe-Faisal, Karachi, which will display top of the range Toyota vehicles The sales and production of Indus Motor’s Toyota and Daihatsu brands for the year ended June 30, 2008 were 50,802 units and 48,222 units respectively which is a new record compared to last year’s figures of 50,557 units and 47,821 units respectively. The company’s sales revenue increased to Rs 41 billion, up 6% over Rs. 39 billion; with the after tax profit of Rs 2.3 billion, as compared to Rs 2.7 billion achieved during the year ended June 30, 2007. Earnings per share decreased to Rs 29.15, as compared to Rs. 34.93 in the previous year. Nationwide sales of locally assembled passenger cars and light commercial vehicles (LCV) that had previously grown continuously over the last five years declined by 8% to 187,412 units from 204,212 units sold in 2006-07. Production in the industry also declined to 187,644 units for the period ended June 30, 08, down 5.7% over 198,986 units last year. Although there has been a decrease in the import of used cars from 28,493 units in 2006-07 to 13,145 units in 2007-08, they still continue to impede growth of the auto industry.
The impact of political uncertainty compounded with a general slow down in the economic environment resulting from rising interest rates, limited credit availability for auto financing, depreciation of the Pak Rupee against major currencies, unprecedented rise in prices of oil, steel and other inputs, inflation, etc impacted the demand negatively. The Board of Directors appreciated the Company’s performance and declared a final cash dividend of Rs 6.5 per share, making for a total of Rs 10.5 per share during the year. The total dividend paid for the same period last year was Rs 13 per share. Indus Motor has requested the government to take note of the recommendations made by the Pakistan Automobile Manufacturers Association to accelerate growth of the local industry and withdraw the 5% Federal Excise Duty and increase of 1% Sales Tax, amongst other measures. 1.4. Indus Motors Company (IMC) Introduction: Indus Motors is the country's second largest auto manufacturer, after the Pak Suzuki Motors, located near Bin Qasim Karachi, having an assembling capacity of 55,000 units per annum. Its core business is to manufacture and market cars. In addition, the company also sells auto parts and accessories. Its product line includes 9 variants of Toyota Corolla, 8 variants of Daihatsu Cuore and 2 variants of Toyota Hilux. The company also offers six different imported vehicles namely Toyota Camry, Prado, Land Cruiser, RAV, Hilux and Hiace. Major contributor to the revenue is Corolla, having a contribution of 66.5% in company's sales. Last year, the company has completed its expansion plan that increased its capacity to 55,000 units per annum from 37,000 units earlier. The company has further expansion plan to almost double its capacity to 100,000 units by financial year 2011 for which it has already acquired land. Toyota Motor Corporation of Japan has recently announced its decision to acquire an additional 9.83m shares in Pakistan's Indus Motor Company by taking over stock 3.93m shares (5.0% of the paid up capital) from overseas investors (AG Limited) and remaining 5.90m shares (7.5% of the paid up capital) from general public through a buy-back offer at the purchase price of Rs 370 per share. However, such public offer would not include the stock held by the companies and the individuals, who represent members of the House of Habib (HoH). Toyota Corporation and its affiliate Toyota Tsushu Corporation currently held
9.83m shares each in Indus Motor, which together constituted 25% of the company's paid-up capital. After the said transaction, Japanese giant car maker's stake in Indus Motor Company would raise to 37.5% from currently 25%. New data release by Pakistan Automotive Manufacturers Association (PAMA) after witnessing a growth pattern since FY02 with 6 years CAGR of 28.0% to 171,786 units in financial year 2007 from 39,047 units in financial year 2001, car sales declined by 4.2% in FY08 and stood at 164.65k units as against 171.79k units in financial year 2007. The low price cars category was the beneficiary of this shift in customer preference. The cars with engine capacities of 801cc to 1299cc registered a decline compared with last year. The auto sector in general, has witnessed a slow down owing to the fact that two to three times, the car prices were increased by the auto assemblers during last year in order to support their declining gross margins. Auto assemblers linked the price-hike to the rising prices of steel components and appreciation of the yen against the rupee, which pushed up the production cost further. Moreover, the car financing became more expensive due to increase of 200bps in discount rate during financial year 2008. As a result, there was a slowdown in car financing amid rising mark up rates and tight documentation of car financing due to significant rise in NPLs of the banks. The rising trend of fuel prices also forced the new buyers of small cars to switch to motorcycle mainly due to cheaper cost and low fuel consumption. Among different engine capacity cars, sales volume of low engine capacity cars, i.e., 800cc declined nominally by 0.6% in financial year 2008 over financial year 2007. However, sales volume of high engine capacity cars i.e. 1000cc and above 1300cc declined 11.6% and 15.6% to 48,887 units and 50,824 units in financial year 2008 from 55,295 units and 60,190 units respectively in financial year 2007. FINANCIAL PERFORMANCE (9MTHS'08) Indus Motors announced Rs 1.89 billion PAT (EPS: Rs 24.06) in 9mths'08 compared to Rs 1.93 billion (EPS: Rs 24.53) in 9mths'07, depicting a decline of 1.9%. Major reasons behind the decline were lower sales volume, appreciating Japanese yen against the Pak rupee and higher steel prices, which negatively impacted the company's bottom line. During the period under review, world steel prices grew 11.0% to US $636 per ton (average price) from US $574 per ton (average price) in 9mths'07 whereas Pak rupee depreciated 8.5% against Japanese yen to 1¥ = Rs 0.561 (average price) in 9mths'08 from 1¥ =Rs 0.517 (average price) in the same period last year. Financial charges stood at Rs 1 million in 7
9mths'08 as against Rs 27 million in the corresponding period last year, representing a significant decline of 98.0% as the company did not have any mark up bearing long-term liabilities, except deferred taxation, in its balance sheet. Other income of the company also declined 13.2% to Rs 625 million in 9mths'08 compared to Rs 720 million in the same period last year due to low returns on bank deposits. Income from bank deposits fell to Rs 490.7 million in 9mths'08 as against Rs 608.9 million in the same period last year. Despite adverse market environment, total sales volumes (both CKD and CBU) declined nominally by 0.7% to 36,445 units in 9mths'08 from 36,704 units in the same period last year. However, production at 34,925 units in 9mths'08 was slightly up as against 34,819 units in 9mths'07. In 9mths'08, Indus Motors was the market leader in above 1300cc category with a market share of 65.2% followed by Honda Cars and Pak Suzuki with a market share of 28.3% and 6.5% respectively. Market share of the company has also improved to 65.2% in 9mths'08 from 59.3% in 9mths'07 at the expense of both Honda Cars and Pak Suzuki. However, in 800cc engine capacity cars, market share has depressed to 17.9% from 20.1% in 9mths'07. Financial performance FY07 Indus Motors crossed production of 250,000 units since its inception. It achieved over 50,000 units of sales during the year 2007. Also, dealership network expanded from 25 to 29 dealers. Sales of locally manufactured vehicles and CBU variants for the year ended June 30, 2007 were 50,557 units, compared to 42,406 units last year, up by 19%. Toyota Corolla outperformed its competitor and established a market segment leadership position in Pakistan with 59% market share in the year 2006-07. Daihatsu Cuore increased its share to 26% in 2006-07 from 18% last year in the economy car segment that continues to show impressive growth. The New Generation Camry introduced in the beginning of 2006-07 showed impressive performance. It increased its share from 16% last year, to 54% by June 2007, in its segment. In the new SUV category, market share increased from 62% to 88% this year, with increased focus on fleet customers who are secure in the reliable performance, durability and after sales service and product support capability of Indus. Hiace and Hilux increased market share from an already impressive 63% last year to a market dominant position of 84% this year. Indus Motors' liquidity has maintained a positive trend, over the past 5 years, with the current ratio being well above the industry averages, increasing progressively with each successive year. The current ratio touched 1.8 in financial year 2007 showing the excessively liquid assets that the company owns. Indus Motors fares
reasonably above the industry average in terms of inventory turnover; this being a virtue of its continuous innovation, and understanding and catering to the market needs. However, in terms of collection of receivables IMC lags behind its competitors. Although the operating cycle is decreasing, but showing efficiency in terms of its cash conversion cycle, it needs to bolster it further to be at par with the industry standards. The total assets turnover is better than the industry, showing that the company is better off than its rivals, as far as managing assets to generate sales is concerned. The rising net sales have a major role to play in elevating this measure of asset management, and this can be attributed to better marketing, launching of newer models of cars, and improved delivery timings. As depicted by the graph, the TATO has shown quite a profound increase in Financial year 2007. Lately, however, the sales-to-equity ratio of Indus Motors has been declining. This can be attributed to an increase in reserves that may be used to further expand the company's capacity according to the AIDP (Auto Industry Development Plan). Financial year 2007 has thus, retained the previous trends of the company's asset management ratios. All in all, asset management ability of the company is praiseworthy. Long term debt-to-equity is lower than the industry average. It is almost zero owing to the fact that the company has no long term liability as such. Indus Motors is basically an equity-based company. 1.1 Mission Statement of Indus Motors Company: "IMC’s Vision is to be the most respected and successful enterprise, delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology". • • • • • • The most respected. The most successful. Delighting customers. Wide range of products. The best people. The best technology.
1.2 Vision statement of Indus Motors Company: Mission of Toyota is to provide safe & sound journey. Toyota is developing various new technologies from the perspective of energy saving and diversifying energy sources. Environment has been first and most important issue in priorities of Toyota and working toward creating a prosperous society and clean world. 1.5. List of Competitors Why Competition is involved In Business? this era is the name of gain Tremendous success and those may gain success who have well worth characteristics, in the way of business sector, the competition is the hurdle or benefit in either condition for every firm and firms wants to gain high profitability, more loyal customers, high market shares, and many more other factors they want to achieve the goal for that they always try to apply different competitive strategies to gain loyal customers because the loyal customers are the profit of any organization. List of Competitors: Here is the list of competitors regarding Pakistani environment and my target companies also apart of this competition so these competitors are listed below: 1. Indus Motors (Toyota) 2. Honda Atlas 3. Pak Suzuki 4. Dewan Motors 5. Nissan Ghandhara 6. Other China Brand Competitors
These are the top listed companies those are the competitors of each others. Most top of the list in competition are Toyota, Honda and Suzuki. These three companies respectively market share in the market some competitive advantages gain by third one company like Pak Suzuki producing 800cc cars, in Pakistan automobile market.
1.6. Project Objective: The research objective is to analysis between the Honda City and Toyota Corolla we know that the Toyota corolla and Honda City are very close and highly competitors of each other means perfect competitors, both are moving towards the bright future and achieve more and more success in market for this purpose. The objective of this research is: To be aware of existing product, Toyota Corolla and Honda City of companies and to get a clear picture of prevalent automobile industry in Pakistan. To distinguish between Toyota Corolla and Honda City, as to persuade the client with the most suitable vehicle for him To understand the facts and reasons require to be kept in mind while customer choosing Toyota Corolla or Honda City in its decision. To identify proper prospect for selling a vehicle to customer To understand the responsibility of a sales service and spare parts teams while working for the company To understand the Brand position in customers’ mind and perception about the brand. To understand factors of Toyota and Honda Company has been achieving success in Pakistan automobile industries. This will help me understanding the customers’ attractiveness by brand loyalty of Toyota Corolla and Honda City. Understanding the businesses of Indus Motors Company (IMC) and Honda Atlas Pakistan Company Limited (HACPL) companies and familiarize with the companies in Pakistan. These above objectives will help and make us understand in the analyzing of customer loyalty also will give us answer that what are the reasons that both are perfect Competitors of each other also which factors are strength and success reason of the Toyota Corolla and Honda City we have to understand the image of brand in consumer’s mind. Our analysis point out the some reason, when we will done Questionnaire and interview to the Car owners and Dealers than it will possible to find out the mentality.
1.7. Significance of the project: According to assigned Project “Brand Loyalty comparison of Honda City and Toyota Corolla” it will be most helpful for us in many ways because we all do not much know about background of the success of Toyota Corolla and Honda City cars and all of those factors which might not be aware about the any of one selected brand, just like technical specification, I would like to explain it in some aspects that make you understand about significance of this project. When I have been starting this project I feel like it is interesting and very important to get knowledge and finding of my question that. Why people are like to drive Toyota Corolla or Honda City? What are they think about this brand (Corolla or Honda)? What are they perceive by it? When I started got information and did deep research on it I find the answer that it’s the “Brand loyalty”. This project makes me understand about the Toyota Corolla and Honda City’s brand loyalty comparison. In the eye of Brand conscious customers, this category is most critical part of any organization in term of customers’ perception about the brand, this category of customers are not willing to compromise in those perception just because of brand positioning, suppose if a loyal customer like to drive a Honda City Car but lake of information about the Toyota Corolla, he/she might not be like to drive Toyota Corolla and vice versa. So this research Report will provide current and solid information for brand conscious customers, After reading of this project the person must become well aware about the Toyota corolla and Honda City brand, not this he/ she easily differentiate between both brands Some people who willing to buy a luxurious car but they getting confused to buy Toyota corolla or Honda City and they looks at the Toyota Corolla and Honda City in equal eye, they think that both cars are same feature, quality, reliability, performance and other features, here is just difference in a brand. so, this project will be a guideline for this category of people, it will help them to measure the about the brand then they will feel confidence to buy Toyota Corolla or Honda City. This project also very helpful for both companies to keep focusing on those brands, this era is based on tremendous competition and those company has been existing in business who have 12
ability to compete, for that they must have to know about those brand perception and also need to consider those brand strengths and weaknesses in customers’ mind. So this project also provides a good opportunity for both companies to consider its repotition and understand which factors they are now come to know. This project is endless to written on it but key factor as I mentioned above are most important parts. My project will helpful for those people who want to know about these brands because Toyota Corolla and Honda City have a perfect competition in Pakistani automobile market. 1.8. Project Proceeding: Due to limited time the research on TOYOTA COROLLA and HONDA CITY will be conducted in Karachi only. I have been working approximately for 2 month of time period. As the research will be conducted during the figures and assumptions quoted in this research report will only be applicable for this period of two months. This Project will divided into three section, each section will provide appropriate data for us in the first section we will discuss till Indus Company after that we will put the light on the next segment for comparison Honda Atlas, in the third session we will discuss in detail about company ways of attracting customers in this section we will talk about the attractive points in both aspects then in the same direction we will analyze our discussion the final stage. The project is based on to find out the key success factor of the Toyota Corolla and Honda City. If I compare Toyota that manufacturing 1300cc cars in other hand the Atlas Honda also has been manufacturing of 1300cc both have approximate same price level, both companies are Japanese company but what the competitive advantage goes to Toyota. My project target is the Toyota corolla and Honda city. So my focus is to find out the Brand loyalty of Toyota corolla that in which aspect Toyota corolla gain Market share in competitive market. 2. CHAPTER #2. .a Marketing Objectives:
Indus Motors Company always keeps in mind the vision and mission and it is to be most respected and successful automobile company, delighting customers, Make possibility of providing with a wide range of products and solutions in the automobile industry with the 13
best people and the best technology in this way the IMC showing its bright picture in the way which they achieve customer loyalty it is the key success of the Indus Motors Company. The Indus Motors Company’s marketing objective before setting, the Indus Motors Company must decide on its strategy for the product. Company has been selecting always its target market and positioning carefully, then its marketing mix strategy, including price, will be fairly straightforward. Pricing strategy is largely determined by decisions on market positioning. At the same time, the company seeks additional objectives. The clearer a firm is about its objectives, the easier it is to set price. Some of common objectives are survival, current profit maximization, market share leadership, and product quality leadership. The company’s products renowned for their quality, durability, safety, fuel economy, resale value, and style, are admired by the customers in Pakistan. There has been an unprecedented demand for the Corolla that has broken all previous records. The Indus Motors Company (IMC) decided to achieve Product Quality Leadership. This normally calls for charging a high price to cover higher performance quality and the high cost of R&D. A company might also use price to attain other, more specific objectives. It can set prices low to prevent competition from entering the market or set prices at competitors' levels to stabilize the market but most of the time they follow those own pricing strategy in which they imply both strategy’s combination. In that point of view the price can be set to keep the loyalty and support of resellers or to avoid government intervention. Toyota Corolla may be priced to help the sales of other products in the company's line. Thus, pricing also play an important role in helping to accomplish the company's objectives at many levels. 2.2 Implication of Toyota Motors Marketing Mix: Indus Motors Company (IMC) as second largest company in Pakistan, we must need to understand the implication of marketing mix because as much as any company gain competitive achievement in market, same direction company has face more difficulty to more grow up business and to maintain sustainability. So the companies have to very careful about the strategies in every aspect so in term of Indus Motors Company, All strategies followed by Toyota Motors Corporation. Toyota Motors Corporation Deal with in international level, Indus motors Corporation deal partially national level and dealers deal with in country 14
regional level so the marketing mix strategy may vary country to country even regional wise. So in the aspect of Pakistan the Indus motors authorized to dealers that they may employ marketing mix strategy that should effective for regional environment. 2.2 Toyota Marketing Mix 4 P'S: Indus Motors Company comes up with a strategy to figure out which strategy is best for them given the objectives and resources. They must also consider the strengths and weaknesses of the company as well as opportunities and threats. To enhance the aptitude of the companies, a marketing strategy is introduced. The marketing strategy will create lucrative marketing mixes for defined target markets. The marketing mix is composed of four key elements to execute or examine for marketing campaigns. The chief goal of the marketing committee is to optimize the marketing mix. Marketers may enhance their outcomes and marketing value by implementing the right combination of the four P’s. Discrete alterations made to the marketing mix are looked at as tactical changes, while rendering huge changes to it can be considered strategic. The “Four P’s” of marketing are: product, price, placement, and promotion. Toyota marketing Mix elements fulfill the requirement if we target the most of the important Four P’s of marketing mix in Toyota company aspect we will much easily understand and get success to determine bright picture about Toyota Corolla customer loyalty because these four elements are the basic fundamental of any successful firm. These four elements (Product Price, Palace, and Promotion) are implying here simultaneously: Product: The Toyota corolla has been achieving success in term of brand since 1970 in Pakistan when the Toyota corolla were not manufactured in Pakistan but at the import basis this brand very tremendously took palace in the Pakistan auto market. The most famous models was Corolla 1976, 1978, 1986 and many list of the yearly series of the models that still consider as powerful and memorable brand. Toyota corolla assembling, progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01, 1990. Through the gaining advantage of prepared loyal customers before starting production of Toyota corolla brand in the
Pakistan they did not need to much hard struggle to give awareness and make customers because the customers already well known about the product as compare to other companies. Toyota Corolla is well standardize product in the market and its current products are XLI, GLI, 2.OD, and ALTIS Cruisetronic in each of the product they providing features, reliability and upgrading to make more loyal customer and providing more satisfaction to customers . PRICE: Toyota has become an attraction in the eyes of many auto consumers worldwide. Toyota has built its reputation not only by producing high quality vehicles at affordable prices, but the brand and marketing skills they use through tactful pricing strategies. Toyota has differentiated their prices from the traditional pricing set up of many of the other automobile makers. However, it is their effectiveness in targeting consumers' needs and wants that has pushed them to the top. Toyota believes the role of purchasing is through long term and stable production of quality products at the lowest price in a fast and timely manner. The main objective of administering prices within any company in the automobile industry is profitability and to consistently increase efficiency in their product line. Toyota takes on slightly different approach for pricing strategy with a sale - oriented objective. Although the variables are the same, the formula is adjusted strategically into the selling price - cost = profit. Indus Motors Company believes that its markets and consumers is what determine the selling price. Waste elimination is given top priority which reduces cost and by continuously reducing these types of costs, it will result in persevering the company's profit growth. Physical Distribution/ Place: Palace is another important element to keep focus very carefully. Toyota corolla as Well Established and well known in over all world the one factor of that reason is that they apply strategy with authentication and Very genuinely. The Toyota Indus have approximately Twenty Eight dealers in over all Pakistan and Seven Dealers existing in Karachi they Distributed in four dimension namely Eastern Motors, Western Motors, Northern Motors, and Southern Motors and other three Dealers are engaged in different location each Zone
partially cover whole of the Karachi. This competitive advantage goes to the Toyota Indus Motors regarding place because in the Pakistan they have largest range of Dealership. It is apart of the marketing strategy which they want to keep close to customers and try to over come the distance between them and customers they also try to make product more conveniently available for customer. Promotion: Promotion is the next most important element of marketing mix without this element marketing mix may never completed not only this the business can affected just because of this arena. Indus Motors Company has been applying promotion strategies in many ways, by ads, Giant Billboards at Bypass and super highway, Sponsors in Games, participation in exhibitions, Display centers, Display in big Public market (as Indus Motors Company did in Pak Tower three year later which they display by new trend that the car was in space that was a unique way of promotion), The Development of top quality logo and photography which can be used in ads, brochures, name cards, etc. Toyota also Taking advantage through advancement of technology in which, they promote via emails, web banners on famous and expensive sites of internet, etc, Participate as a part of Pakistani society in this aspects open institutes, establish Hospitals, social walk and many aspect which Indus motors company contribute shoulder to shoulder in these social activities also give support to Indus Motors to promote its Product. The aim is to make a place in customers’ mind that they are being with them. Indus Motors participate in maximum tools of promotion as some mentioned above because Indus motors believed that provide more and more information to customers to achieve attractiveness.
.a Structure of marketing department
Structure of Marketing Department
Senior Sales Manager
Senior Service Manager
Senior Parts Manager
Assistant Sales executive
Assistant Sales executive Assistant Sales executive
Assistant Sales executive
Assistant Sales executive
Assistant Sales executive
Senior Sales Executive Senior Sales Executive Sales Executive Sales Executive Junior Sales Executive
Junior Sales Executive
.a Marketing Functions of Indus Motors Company (IMC): we know that Marketing Department is the very essential tool and it excellent essence of any business same as this strategy imply by Toyota company to its authorized Dealer in the light of customer brand loyalty my concern will deal with dealers and customers it is the target of the project. As above I have shown the structure of the Indus motors’ authorized dealer (regarding to my target dealer Toyota Southern motors). Sales, Service and Spare Parts all from the same facility Toyota Southern Motor compares to the Total Quality Management style of Toyota Indus Motors. Toyota's TQM characteristics will be compared to the characteristics of Southern Motor, and the differences between the two companies will be discussed. Finally, this function will address how Toyota's TQM practices could have been integrated into Southern Motor and how applying these principles could have saved the business. Toyota's corporate philosophy revolves around customer satisfaction, which is symbolized ed in the 3S Concept. Toyota is the Pioneer in the 3S System, which offers Sales, Service and Spare Parts all from the same facility. Sales Facilities: Indus motors imply on its dealers that make facilitate customer to buy the product for that Indus Motors Company given the dealership authority approximately 28 in all over the Pakistan. Note that it is the highest number of dealers regarding automobile sector just in the Karachi city Indus motors Company has 8 dealer main and big dealers are Eastern motors, Western motors, Northern Motors, Southern Motors All of the Sales strategies followed by Indus motors itself and it is directly involve as well time by time Indus motors intelligence keep an eye on this sector to monitor the sales activities not only this the some time Indus motors’ intelligence conduct interview with customer This strategy namely say “Quality Sales”. One of the parts of Indus Motors Company is to facilitate its loyal customer and overcome customer’s ambiguity, buying conflict and provide them maximum information before purchase. The Indus Motors Company is very conscious in sales as well Customer Satisfaction.
Service Facilities: Indus Motors Company believed that customers are the key of success just need to analyze that factor which they can utilize that key. Service is another Key element of the Indus Motors Company off course, customer service is one of the part of service in which they get engage with the customer to provide them service related to product. The service may be provide maximum information, problem solution regarding product, remove irritation etc. some of the key factor they always keep in mind about customer care that they Keep Constant Communication with Customers, always Respond Quickly to their Needs, give them Satisfaction not only on product but also on other aspects, immediately Compensate for Loss, Make Products Available for customer, support and Render Advice, Boost customer and as well as Product Confidence, Give Special Attention and listen very carefully, always Protect Customers Rights, Maintain big standards of Cleanliness, Hygiene and Smoothness and as they are looks original in reality, one of the most important part is that they Make Customers Part of the Organization. Indus Motors, Customer service conscious company, for which it is always looking for avenues to develop further relations with the customers who have already purchased the cars. Southern motors consider purchase of car as the beginning of relations with customers. Spare Parts: Indus Motors Company has been providing the next Best Facility to its customer of availability of spare parts. Indus motors provide the facility of Genuine part just from Indus motors’ authorized dealers with that they provide the guarantee of that spare part other wise in local market Toyota is not providing genuine part so it is also an assurance or customer loyalty that they can buy genuine spare parts only from authorized dealers Toyota Indus motors provide range of warranty on spare parts some of Toyota dealers offering interesting attraction like” you buy, we fit it” means Buy Toyota genuine parts from Toyota dealers and enjoy 6-8 month's Toyota Warranty, contribute to high moral and enjoy the satisfaction of using 100% genuine Toyota Parts. 3. CHAPTER# 3
Marketing Strategies: It is important to the marketing strategy to develop an attractive image to the trade. This can be done in a number of ways: 1. Advertising. Toyota Motors suggested Indus Motors Company as the best place to advertise. In the regional telephone directory Yellow Pages two classification are possible: Auto Restoration--Antique & Classic, or Auto Body Repair & Paint. These two publications both have directories. In local Newspapers, a color 1/4 page ad would run per quarter year and a quarter page ad in the Yellow Pages runs every month. 2. Join The Chamber of Commerce. The image of Toyota Corolla restorations would be elevated by joining the Chamber of Commerce. This would low cost per year. Advertising on their electronic sign alongside the Interstate at present the sign would give 100 impressions per day to the Indus Motors Company. We expect this to increase Toyota Corolla's income by about 12% during that 90-day period. 3. Advertising. Development of a top quality logo and photography which can be used in ads, brochures, name cards, etc. Not counting printing costs, which vary by quantity and quality of paper chosen, 4. Participation in Car Shows. Another image-building marketing tactic is participating in local car shows. These car shows are held just for the fun of it. This would require time and effort, but not much in the way of money. This should be coordinated to insure compatibility with the show's concept and our image. So every dealer should have to make it possible in that area with the coordinate to other one Toyota Corolla dealer. a photo album can never compete with the real hardware. In addition to the above-mentioned activities designed to elevate the company's image, it is essential to market directly to the selected target clients who all go to local car shows. Success in making inroads into these names would set the stage for entry into the more prestigious auto restorer’s guild. Marketing these prime prospects must be carried out in a thoughtful organized way. Color literature including the newly designed logo should be completed as a first step. When marketing these prospects it will be important to present a portfolio of Toyota Corolla’s most
innovative work. A relaxed face-to-face meeting, resulting in good communication between Toyota Corolla and the project car's owners, should be all that's needed to generate a first order. .a Market Segmentation strategies: The market for auto restoration reflects the buyer's income bracket and standard of living in much the same way that the restoration market is segmented. Below are listed market segments based on size of pocketbook and quality of production: 1. Material Outlets. Suppliers of auto body and paint supplies, interior supplies and mechanical parts. 2. Simple jobs. Simple repair jobs and service are the next level in IMC sales chain. 3. Paint. Custom paint work such as murals and flames will provide some income. 4. Restoration. Complete restoration jobs, and complete paint work. 5. Custom Work. Custom body work such as, top chops and channels, this would be considered IMC’s high end of work. The average age of our customers is 30 to 65 years old with an average income is up to 600000 per annum, with most full restoration customers having incomes of over 60,000. The gender is predominantly male, with a college education. Some of the more recent trends come from the increasing coverage of IMC on television, with shows such exhibition, display centers, public displays etc. 3 years ago IMC did exhibition in Karachi which display car were hanging in space that was really watch able and people were attracted to see. These types of shows have helped auto restoration to grow to a billion Rupees a year industry in the Pakistan. .a Target marketing strategies: Indus Motors Company’s target market segment strategy includes the use of local radio, local famous newspapers i.e. Daily Jang, the News, Dawn newspaper, magazines, billboards, and television stations to convey the word about its business. These publications are distributed to a wide variety of people who are all interested to buy Toyota Corolla cars, and other Toyota cars. IMC strategy includes using people's emotions to persuade them to use a 22
Toyota Corolla. IMC does not limited to just a couple of different types of advertising, they also use press releases and magazine articles. IMC’s website, which is a well designed, and cost effective way to tell people about them and those authorized Dealers overall the Pakistan and it's services, IMC use every way within it's means to convey its message to the public. IMC’s market strategy is to flood the magazines and newspapers with its advertisements, doing newspaper ads for news lovers to enjoy during morning and afternoon free times. This is due to the fact that more people attract to the paper during these time frames, so IMC has a really catchy ad during these time it's probable that IMC will gain some customers from it. The magazine publications go out to hundreds of thousands of people every month, so all we need is to convert a small percentage to sales and we'll achieve our success. But we don't stop there; IMC is also joining the chamber of commerce to network its business. And sometime IMC used to flyers at the car shows to promote or company, and of course business cards. The customers who Toyota Corolla plans to target want: 7. Quality full Custom services or restoration, including engine, custom body work and paint. 8. Timely completion of the work on their cars. 9. Competitive rates. 10. Close attention to detail, and commitment to quality. 11. Ability to offer ideas for alternatives and close customer services. Toyota Corolla has the ability to meet all these demands. The Indus Motors Company has a long work history in this field, and has extremely high standards in regards to the company’s work. The Toyota motors will make sure that the Indus Motors company employees and dealers meet these standards. The IMC also understands that, not only quality work, but the attention and care bestowed on the customer and their cars will result in a good reputation. .d Product Planning and Development: Product Planning: Consistent product diversification and product improvements also helped Indus Motor Company strengthen its market leadership position, with market share rising sharply from
41% to 57% in the 1300cc and above segments in which Corolla competes with other major brands. Hilux, in the Light Commercial vehicle range, continued to maintain over 90% market share. Toyota Corolla brand management is based on “Brand Guidelines,” which describe the profile and differentiating criteria of each individual brand. The guidelines are being expanded to include regulations for sharing components by business units and the importance of such a strategy to the brands. Market success in the future will increasingly depend on Toyota Corolla ability to maintain each brand’s own specific character. Indus motors company therefore working intensively on strengthening the brand-related attributes that influence the design of the products and the values associated with each particular brand. Toyota Motors brand portfolio gives Indus motors of tremendous ability to offer attractive products in all segments and to all customer groups in Pakistan. Continuation of EAC’s successful work In 2002, the Executive Automotive Committee (EAC) did groundbreaking work as a platform for the discussion and preparation of decisions affecting more than one of our automotive divisions. The committee coordinates all cross-divisional issues, protects the identity of the Group’s brands, and accelerates the realization of synergy potential. Last year, the EAC particularly focused on evaluating and optimizing the Group’s portfolio of products, power trains and components. Expanded multi-brand management In recent years, multi-brand management has become one of the main challenges facing the automotive industry. Whereas in 1980, 28 independent manufacturers had an average of only two brands each, the remaining eleven independent car manufacturers now have an average of more than six different brands each. Daimler- Chrysler owns six passenger car brands, eight commercial vehicles brands and one accessories brand, supplemented by DaimlerChrysler Services’ comprehensive range of financial services for DaimlerChrysler’s automotive brands. The challenge now consists of managing the interplay between brand differentiation and economies of scale. One goal is to strengthen the identity of the individual brands and increase their value. At the same time, economies of scale must be achieved by means of cross-divisional cooperation and the exchange and common use of components, 24
systems and platforms, in order to improve the overall cost position and thus to make the whole Group even more competitive. However, none of the Mercedes-Benz platforms will be shared with other brands. Identifying synergy potential with components One of the tasks of the Indus Motors Company is to utilize opportunities to standardize components for use by different divisions or business units. In order to prevent dilution of brands, only those components were selected that are not relevant to brand identity and which can be sourced globally. Under the leadership of the IMC the Procurement and Development departments defined major groups of components, formed corresponding teams and developed a cross-divisional component strategy, thus enabling substantial savings to be made Joint use of engines and transmissions In order to exploit synergies, existing and future engine and transmission series were also examined. One example of the findings was that there are currently eight different families of four-cylinder in-line engines at the Toyota Group. By the year 2005 Indus Motors Company (IMC) intend to reduce this number by 25%. The “World Engine” is to contribute significantly to this goal. This is a four cylinder gasoline engine that is to be developed and manufactured jointly by Toyota motors. Cooperation on environmental issues The tightening of legislation worldwide regarding such matters as fuel consumption and emission standards, occupant safety requirements and the recycling of vehicles requires closer cooperation between the divisions. R&D expertise gained in the field of pioneering alternative drive systems will be applied over the whole Group even more quickly in the future. Another example of how processes can be shared is provided by the method developed by Mercedes-Benz for dealing with end-of-life vehicles. This is now also employed by Chrysler Group, and our alliance partner Mitsubishi Motors has decided to use it as well. Cross-brand product planning (long range product plan)
A detailed comparison of product planning has been carried out with the goal of identifying product overlaps and gaps in market coverage. One of the findings of this analysis is that there is hardly any product overlap within the Toyota Motors Group. However, there is a gap in the small-car segment, which is to be closed in the year 2004 with the launch of the coure. Furthermore, the committee identified possibilities for the joint creation of vehicle architectures. A good example is the rapidly growing sport-utility and sport-tourer segment, in which we plan to utilize market potential by implementing a coordinated, cross-brand strategy. Having comprehensive information on all vehicle segments in Pakistan, on their appeal, their future potential and the degree of competition, provides a basis for developing new, innovative products and opens up opportunities for exploiting synergies across the individual business units. Product Development: One of the reasons for the elusiveness of Toyota secret for success is that there is no single secret pulling it all together. Toyota’s success comes from hard work excellent engineers a culture of teamwork an optimized process simple but powerful tool that work and kaizen that improves improve and improve on all if these. In short, it is a truly lean system that continually evolves. Toyota process development has been evolving as a living system to fit its unique environment for many years. The Toyota Product Development system model has three primary subsystems: 1. process 2. People 3. Tool and technology in a lean Product Development system model these three subsystems are interrelated and interdependent and affect an organization ability to achieve its external The Product Development strategy based on these Principles: 1. Principle 1 establish customer defined value to separate value added activity from waste 2. Principle 2 front load the pd process while these is maximum design space to explore alternative solutions thoroughly 3. Principle 3 create a leveled pd process flow 26
4. Principle 4 utilize rigorous standardization to reduce variation and create flexibility and predictable outcomes 5. Principle 5 develop a chief engineer system to integrate development from start to finish 6. Principle 6 organize to balance functional expertise and cross-functional integration 7. Principle 7 develop towering technical competence in all engineers 8. Principle 8 fully integrate supplies into the pd system 9. Principle 9 build in learning and continuous improvement 10. Principle 10 build a culture to support excellence and relentless improvement 11. Principle 11 adapt technology to fit your people and process 12. Principle 12 align your organization through simple, visual communications 13. Principle 13 uses powerful tools for standardization and organization learning. .a Brand Positioning: According to Indus motors Brand positioning Strategy brand is based on provide quality products for customer satisfaction Indus motors always keep in mind the needs and wants of customers, they always think by customers’ point of view. Toyota Corolla has continue been offer the quality and value for which the brand has long been known. In style and substance, the Corolla has a strong, new identity, all its own. It will be far more than merely the nextgeneration Corolla and will position itself perfectly above our entry-level and below our sales leader. Toyota Corolla positioned its brand in many aspect the theme is not only sales of product Rather quality sales, here is a difference in Sales and Quality Sales the difference is in simple words, a sale that done through well set standard format set by company in which give fair value to customer, avoid ambiguity, irretentiveness, provide full level of information, deal must based on make long term relationship not deal by selling product and many more characteristics involved in selling quality sales. Only sales aspect mostly focused on selling and generates profit of company, it is not an effective strategy to make customers for long lasting rather the brand position may be damaged. The difference in sales and quality sales is make the position in customers’ mind and the target to make loyal customer. The Quality sales gives confidence to customer, brand image 27
is exist and survive in customers’ trustworthiness on company and Indus Motors Company is very conscious to maintain Brand loyalty in customers mind. Same as Indus Motors Company (Pakistan) is very closely look after and maintain its other 2S (service and Spare parts). These three factors are play a vital role in maintain brand position in customers’ mind. Toyota Corolla has been positioning by some other related specification and technical aspects, according to this, the car is available in five model trim levels including Standard, LE, XLE, S, and the XRS. Two powertrain options are available for all models. The 1.8-liter four-cylinder engine capable of pumping out 132 hp at 6,000 rpm and 128 lb.-ft. of torque at 4,400 rpm; and the 2.4-liter four-cylinder engine with 158 hp @ 6,000 rpm and 162 lb.-ft. of torque @ 4,000 rpm. The engines are equipped with powertrain including like fuel pumps (like Volvo fuel pump). Both engines are also combined with either five-speed manual or five-speed automatic transmissions. The 2009 Toyota Corolla retained some of the design and functional characteristics of the previous model. Of course, the car also comes with a host of new features inside and out. For the 2009 model, the Corolla sedan features a wide low profile developed by Toyota Design. The S and XRS model trims feature a standard body kit, which includes front underbody spoiler, fog lamps, rocker moldings, upper and lower rear spoilers, and engine under covers. Inside, all 2009 Toyota Corolla models offer a sporty and comfortable interior features. The 2009 Corolla retained the interior dimensions like the headroom, legroom and shoulder room. The interior also features a wide range of functional amenities including center console side pockets, storage box, front and rear door pockets, console box with a large-capacity main tray, overhead console, and a rear-seat center armrest with drink holder. Toyota won't compromise the safety of its customers. The interior also features an extensive list of safety equipments to provide the best occupant protection. These include standard driver and front passenger airbags, front seat-mounted side airbags, two-row side curtain airbags, and active headrests on the front seats. Toyota also offers Anti-lock Braking System (ABS) and Vehicle Stability Control (VSC) with Traction Control (TRAC) on all 2009 Toyota Corolla models as an additional safety feature.
.a Pricing Strategies: Indus motors company has a mission to give good quality (Toyota corolla as it is our target) cars, achieve price-quality leadership overall the Pakistan. The pricing strategy is as they targeted that Cost + Profit = Price. IMC is very crucial in this aspect as well because as the standard of quality they do not perceive to give burden of high price at customer or IMC does not low or below the price as they producing Quality car and value as customer perceive in this aspect. .a Advertising and Promotion: Indus Motors Company (IMC) has a modest program of marketing its services that include the following: 1. 2. 3. 4. 5. Newspaper and magazines ads Press releases and magazines articles Car shows Website Calendars
Each of these marketing approaches has the advantage of being low cost and creating service awareness. The company is also make possible of having a grand opening program that would sponsorship, charity, social walk, donations, exhibition, functions, display in the large market (i.e. few month ago did advertise in Pak Tower. Karachi). and other promotional ideas. IMC feel that the company website is one of our best marketing strategies. It is linked to top listed web sites like Google.com and many other classic car restoration oriented websites and portals. The site has news about IMC business, answers to FAQ's and pictures of cars restored and the process of the restoration. 4. Distribution Strategies: There is no specific demographical location for potential customers. Indus motors are located all over the Pakistan. They send their cars to whom and where they feel will do the best job, based on reputation not only this IMC providing the opportunity to customer that they can buy the Toyota corolla from authorized Dealers. These dealers are located in over all
Pakistan to facilitate the customers in Karachi city IMC’s almost Seven Dealers are engaged with customers. In location aspect the aim of IMC is to make product possible in reach of customers so this reputation comes largely from "value of customer". This will not only increase the number of potential customers for Indus Motors Company in the leadership phase, also have been providing a valuable word-of-mouth reputation for them. .a SWOT ANALYSIS OF INDUS MOTORS: Strength: Investment by Toyota factory in Pakistan profits tremendously rise against the other competitors in motor industry trend. Net profits rose 0.8% to 1.17 trillion yen ($11bn; £5.85bn), while sales were 7.3% higher at 18.55 trillion yen. Commentators argue that this is because the company has the right mix of products for the markets that it serves. This is an example of much focused segmentation, targeting and positioning in a number of countries. In 2003 Toyota knocked its rivals Ford into third spot, to become the World's second largest carmaker with 6.78 million units. The company is still behind rivals General Motors with 8.59 million units in the same period. Its strong industry position is based upon a number of factors including a diversified product range, highly targeted marketing and a commitment to lean manufacturing and quality. The company makes a large range of vehicles for both private customers and commercial organizations, from Hiace. The company uses marketing techniques to identify and satisfy customer needs. Its brand is a household name. The company also maximizes profit through efficient manufacturing approaches (e.g. Total Quality Management). Weaknesses: Being big has its own problems. The Pakistan market for cars is in a condition of over supply and so car manufacturers need to make sure that it is their models that consumers want. Toyota markets most of its products in the all over the Pakistan. Therefore it is exposed to fluctuating economic and political conditions this markets. Movements in exchange rates could see the already narrow margins in the car market being reduced. The company needs to keep producing cars in order to retain its operational efficiency. Car plants represent a huge investment in expensive fixed costs, as well as the high costs of 30
training and retaining labour. So if the car market experiences a down turn, the company could see over capacity. If on the other hand the car market experiences an upturn, then the company may miss out on potential sales due to under capacity i.e. it takes time to accommodate. This is a typical problem with high volume car manufacturing. Opportunities: Honda and Toyota now have a reputation for manufacturing environmentally friendly vehicles. Honda has City hybrid, and Toyota has Corolla. Both are based upon advance technologies developed by the organization. Rocketing oil prices have seen sales of the new hybrid vehicles increase. Toyota has also sold on its technology to other motor manufacturers; such moves can only firm up Toyota's interest and investment in hybrid R&D. Threats: Product recalls are always a problem for vehicle manufacturers. In 2005 the company had to recall 88000 private and commercial sports utility vehicles due to faulty front suspension systems. Indus Motors did not give details of how much the recall would cost. The majority of affected vehicles were sold in the Karachi while the rest were sold in overall other cities of Pakistan. As with any car manufacturer, Indus Motors faces tremendous competitive rivalry in the Pakistan car market. Competition is increasing almost daily, with new entrants coming into the market from within the Pakistan like China. The company is also exposed to any movement in the price of raw materials such as rubber, steel and fuel. 4. CHAPTER# 4 a. Introduction of Competitor: Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company Limited Japan, and the Atlas Group of Companies, Pakistan. The company was incorporated on November --, 1992 and joint venture agreement was signed on August ---, 1993. The ground breaking ceremony was held on April 17, 1993 and within a record time of 11
months, construction and erection of machinery was completed. Official inauguration was done by President of Pakistan, Sardar Farooq Ahmad Khan Leghari. Mr.Kawamoto, President of Honda Motor Company Limited Japan was also present to grace the occasion. The company is listed on Karachi, Lahore and Islamabad Stock Exchanges. The Dealerships Network has expanded and now the company has sixteen 3S (Sales, Service and Spare Parts) Pit stops network in all major cities of Pakistan. Since the commencement of production in 1994, the company has produced and sold more than 150,000 cars till Oct, 2008.All dealerships are constructed in accordance with the standards defined by Honda World over. Percentage of local parts conforms to the government's policy. Local vendors are continuously patronized to develop parts locally. The quality of local parts is thoroughly checked to meet stringent international standards. the statement of Honda atlas “We always strive to give outstanding service to our valued customers. In addition to providing regular service to customers”, the company also regularly conducts Service Campaigns, to facilitate customer's need for service. This has given our customers absolute confidence in our cars, clearly evident from the ever increasing sale volumes. It is the constant endeavor of Honda Atlas Cars (Pakistan) Limited to achieve No .1 Customer satisfaction. Honda Atlas Cars (Pakistan) Limited is committed to meet customer expectations, and to provide good value for money. Currently we are offering 8 different models of Honda CIVIC and CITY cars in wide range of colors with unique technological and other features. Company Performance: The Company earned Profit before tax of Rs.55.2 million as against Rs.30.9 million in the same period last year. This was possible due to control on overheads, among others. The administrative and selling expenses remained constant at 1.9% of total sales. The other income increased from Rs. 36.6 million to Rs. 55.2 million including from higher return on the bank deposits. Since the last year, the company focused to improve liquidity through reduced short term and long term loans which resulted in Rs. 0.5 billion at the end of the quarter as against Rs. 2 billion in June, last year. This positive result was in spite of the reduced sales at Rs. 3,706.6 million during the quarter ended June 2008 against Rs. 4,535.6
million in the same quarter last year, and the reduced gross profit to Rs. 94.5 million from last year’s Rs. 156.7 million - due to increase in material cost and depreciation of currency. We look forward to improved results, quarter after quarter, due to traditional Honda approach - Quality, Cost, Delivery and Management - QCDM. Your company is constantly in process of re-evaluating its products and processes. Relying on its international resource of R&D and global experience, the Honda product line up is in a constant process of evolution. Honda is proud to have introduced pioneering products in Pakistan. We will continue our tradition of innovativeness and offer our valued customer global technology and quality, year after year. Vision: Market leader in the motorcycle industry, emerging as a globally competitive centre of production and exports. Mission: A dynamic, profitable and growth oriented company through market leadership, maximizing export and excellence in quality and service; to ensure attractive returns to equity holders; reward employees according to their ability and performance; to foster a network of researchers and engineers ensuing unique contributions to the development of the industry; customer satisfaction and protection of the environment by producing emission friendly green products and to remain a good corporate citizen fulfilling its social responsibilities in all respects. Quality: A dynamic, profitable and growth oriented company through market leadership, maximizing export and excellence in quality and service; to ensure attractive returns to equity holders; reward employees according to their ability and performance; to foster a network of researchers and engineers ensuing unique contributions to the development of the industry; customer satisfaction and protection of the environment by producing emission friendly green products and to remain a good corporate citizen fulfilling its social responsibilities in all respects. .a Honda Atlas Marketing Objective: Honda Atlas Pakistan Limited as well established automobile companies in Pakistan they always keep focus on that mission and vision in the same direction HACPL does target of goal achievement. The standard of the HACPL according to marketing is very high, as 33
Honda atlas and Indus motors are Japanese companies, those marketing strategy approximately same. HAPL existence and central point of Honda Atlas to sell dream Car because in Honda point of view “Power of Dreams” itself attracting the customer for that need to build unique product it will sell themselves. Somehow, HACPL has similar marketing objective to Indus motors company both companies have been targeting in terms of provide satisfied customer service, make possible to keep in reach the product, strive to give outstanding service to valued customers. In addition to providing regular service to customers, the company also regularly conducts Service Campaigns, to facilitate customer's need for service. This has given both companies customers’ absolute confidence in those cars, clearly evident from the ever increasing sale volumes. Although Honda atlas has a selling advantage of other product line in which generators and vacuum cleaner in Pakistan perspective. In the constant endeavor of Honda Atlas and Indus motors company to achieve No .1 Customer satisfactions with respect to loyalty of brand. Honda Atlas and Indus Motors Company have been committed to meet customer expectations, and to provide good value for money. .a Honda Atlas Marketing Mix: Marketing mix elements or 4p’s strategy of marketing is the essence of any business same like this strategy of marketing mix apply in top listed automobile company overall the world Honda atlas these key elements of marketing mix make the difference between Honda atlas and Indus Motors Company in this aspect Honda atlas also comes up with a strategy to figure out which strategy is best for them given the objectives and resources. They must also consider the strengths and weaknesses of the company as well as opportunities and threats. To enhance the aptitude of the companies, a marketing mix strategy is introduced. The marketing strategy will create lucrative marketing mixes for defined target markets. As we know the marketing mix is composed of four key elements to execute or examine for marketing campaigns. Honda atlas has been enhancing their outcomes and marketing value by implementing the right combination of the four P’s. But in Pakistan aspect the marketing
mix strategy different to Indus Motors Company. The “Four P’s” of marketing are: product, price, placement, and promotion. Toyota Indus Motors Company marketing Mix elements almost fulfill the requirement Four P’s of marketing mix but Honda atlas is much below as compare to Toyota Company. In marketing Mix aspect we will discuss little awhile about 4p’s, then it will be much easily understandable and analyze that what factor make the difference between both companies? Also which one company has been getting success as compare to other one? These identifications will make a bright picture for analysis about Indus Motors Company and Honda Atlas Company. Customer loyalty exists because of these four elements and these elements are the basic fundamental of success. These four elements (Product Price, Palace, and Promotion) are implying here simultaneously for comparison by Indus Motors Company: Product: Honda Atlas has competitive edge to Indus Motors Company in term of product line. The Indus Motors Company has been producing and doing business of vehicle in Pakistan but Honda Atlas has been producing wide variety of product. Honda Atlas’ product line is divided by manufacturing of bikes, generators, Water pumps, brush cutters, petrol engines. These all product are in number of series like in bikes series they manufacturing Honda CDI70, Honda CD100, Honda CG125, and Honda Delux125. This large series in bike products has been giving competitive edge over Indus Motors Company. In bikes segment Honda at No. 1 position. Same as other product line except in car manufacturing. The comparison by product between our main target area of Toyota Corolla and Honda City, Indus Motors has been maintaining good position in Pakistan. Toyota Corolla has been positioning in consumers’ mind by providing features, reliability and upgrading. Loyal brand series of Corolla is XLI, GLI, 2.OD, and ALTIS Cruisetronic is top positioning in the customers’ mind. Although, the Honda atlas has also one of the product line in car series is Honda City…….--------, Toyota Corolla and Honda City Offering features in many aspects as I have been discussed before in which I found result that features of both company brand has been taking place in customers’ mind by brand loyalty. Price: 35
As our target of research is Brand loyalty comparison of Toyota Corolla and Honda City. Comparison by price of Indus motors brands (Toyota Corolla) and Honda Atlas Brand (Honda City) have become an attraction in the eyes of many auto Pakistani customers. Toyota Corolla has differentiated their prices from the traditional pricing set up as Honda Atlas. Indus Motors Company is very conscious about Price and Quality; they built its reputation not only by producing high quality vehicles also at affordable prices. Toyota Corolla (GLI) current price is Rs. 1,389,000 and Honda City (AT) current Price is Rs. 1,439,000. At this point we can easily understand that the price of Honda city is higher than Toyota Corolla means Honda City is an expensive car more than Toyota Corolla. However, it is Indus Motors Company’s effectiveness in targeting consumers' needs and wants that has pushed them to the top. Toyota believes the role of purchasing is through long term and stable production of quality products at the lowest price in a fast and timely manner. The main objective of administering prices within Honda Atlas is profitability and to consistently increase efficiency in their product line. The traditional pricing strategy of Honda Atlas is formulated into the cost + profit = selling price. The reason behind this strategy is that When Honda Atlas makes changes and improvements, cost of production increases causing the selling prices to go higher. Honda Atlas does not want to cut their targeted return and therefore the costs are passed on to the consumer to maintain their profit margin. Mean that Toyota (Corolla) Pricing Strategy slightly different approach with a sale - oriented objective. Although the variables are the same, the formula is adjusted strategically into the selling price - cost = profit. Toyota firmly believes that its markets and consumers is what determine the selling price. Waste elimination is given top priority which reduces cost and by continuously reducing these types of costs, it will result in persevering the company's profit growth. Place / Physical Distribution: The next important part to comparison is the place or Physical Distribution. It is the way of facilitate customers and make more convenient for customers Indus Motors Company and Honda Atlas applying selling strategy by authorized Dealers. Both companies are not taking responsibilities from any unauthorized or local Dealers.
Honda Atlas Network of dealership has expanded and now company has sixteen 3S (Sales, Service and Spare Parts) and thirty 2S (Service and Spare Parts) Pitstops network in all major cities of Pakistan. But the network of Indus Motors Company is much expanded than Honda atlas, Indus Motors dealership has expanded by Twenty Eight 3S (Sales, Service and Spare Parts) all over the major cities of Pakistan. In Karachi Aspect, Honda Atlas has four Dealers of car market rather, Indus Motors Company has Seven Dealers existing, and another differentiation is that Toyota Dealers Provide facilities of 2S at same time and same place. In this aspect Toyota Dealer doing more facilitates to loyal customer because, customer has no need to take pain of go another specify location. Indus Motors much committed to customer satisfaction as Customers’ wants to take service or Spare parts. Promotion: Indus Motors Company and Honda Atlas (Pakistan) always strive to give outstanding service to valued customers. In addition to providing regular service to customers, companies also regularly conducts Service Campaigns, to facilitate customer's need for service. This has given to customers’ absolute confidence in Toyota Corolla and Honda City cars. Honda also participates in promotion of that product. But as Honda Atlas has a wide Verity of Product line, they rapidly and quickly promote products more than Indus Motors. Promotion of Honda products has been depend on nature of product because Honda Atlas as we know that a wide range and variety of products as we discussed about the series, for example Honda wants to promote its bike product for that company may use Publicity like street banners, showroom display, announcement in newspapers, catalog, broachers, public market display, and many other option may applicable. .a Marketing Operations/ Function of Marketing Department: Marketing operation functions is the very essential tool and it is excellent essence of any business same as this strategy imply by Honda Atlas Company to its authorized Dealer. It is dealing with brand loyalty of Honda products my concern exists between dealers and customers. Honda Atlas also depends on 3S as Indus Motors Imply its strategy in market operations but also Honda Atlas has been facilitating with separately 2S as well (Service and Spare Parts). This offer of facilities Honda Atlas Motor compares to the Total Quality Management style of Honda Atlas Itself. These 3S and 2S always monitor by Honda Atlas 37
itself that what’s going on in which Direction? These 3S and 2s has been facilitating through Dealers. Let we discuss these three elements simultaneously: Sales: According in all aspects of sales our main concern is regarding Toyota Corolla and Honda City but somewhere we have to understand which Way of sales of Honda Atlas Motors is quite well standard to Indus Motors. The HACPL’s Sales Deals by its authorized Dealers. The dealers engaged in providing facilities the customer to buy Honda Brand(s). Honda Atlas Company has given dealership authority approximately sixteen Dealers (cars), Twelve hundred and fourteen (1214) Bikes Dealers, and more than hundred has been working and dealing with Power Products in all over Pakistan. But Indus Motors Company just Deals in Vehicle sector that’s why Toyota Company has twenty eight Dealers network regarding Vehicle sector but in other ways, Indus Motors has no choice to compare by other Honda products. Note that it is the highest number of dealers’ categories regarding bikes and Power Product sector just in the Karachi city Honda Atlas has four dealers have been dealing in Car Sector and hundred Dealers deal in Bike segment. All of the sales strategies followed by Honda Atlas Itself and it are directly involve and time by time Honda Atlas keep attached with each sector, do analysis the sales, performance of the dealers most importantly after sales, customer satisfaction report. Sales facilities part of Honda Atlas is to facilitate its loyal customer and overcome customer’s ambiguity, buying conflict and provide them maximum information before purchase. Honda Atlas is also very conscious in sales as well as Customers Satisfaction. All the authorized dealerships in Pakistan are a source of customer satisfaction. The after sales are supported by the immaculate service and the availability of spares at competitive prices for every car sold. To facilitate the customers for any assistance they require, Honda Atlas has a separate department, called Customer Relations, at the head office. This department is supported by the subsequent Customer Relations Officers at all dealerships. The purpose of Customer Relations Department and Customer Relations Officers is to enable our customers in getting any sort of help required by them. Services
The product sold is not means that close the window for customer now, it is beyond that further after sales customer has largely engaged to deal in service and Spare parts aspect. HACPL is a customer service conscious company, for which it is always looking for avenues to develop further relations with the customers who have already purchased the Product. Honda Atlas considers purchase of any product as the beginning of relations with customers. To prolong this relationship and encourage the customers to keeps on coming to the dealers, providing customer service the reason for this facility is to stress on the importance of periodic maintenance. Periodic maintenance is essential for every existing if this is performed regularly as per the maintenance schedule the car is trouble free and life of car increases by many years. For these free services the labor is not charged, where as the customer has to pay for only the consumable like engine oil, oil filter, etc.. HACPL is providing regular trainings to the dealers' technicians. The trainings cover all aspects of the cars and related Products including the periodic maintenance, diagnostics, trouble shooting and repairs according to HONDA standards. From this we want to facilitate the customers in maintaining their cars in top-most condition and enjoying the comfort and performance of the luxury vehicles they own. It is our endeavor to have uniform service standards made available at all dealerships in accordance with the international Honda standards. We consider the properly maintained vehicles not only to be a source of satisfaction to our customers; they also increase the sale value of their car. Indus Motors Company Gain competitive edge that they providing service more closely as they have twenty eight 3S network engaged all over in Pakistan. This issue is very critical, Indus motors company makes possible the product should in reach of customer, Honda Atlas customers facing problem regarding Service sector as well because as they thought to go service center most of the time they take pain to go on long distance service center. Some customer get hyper just by think to concern with service center and this may become time consuming, in other side Indus Motors Company make it easy in reach of customer and more facilitate. Spare Parts: The Spare parts element is heavily concern and involved with brand loyalty of Toyota Corolla and Honda City because cost of spare parts also consider when customer want to buy 39
the car, customers are also price conscious, availability of spare parts and as well as quality of spare parts. Indus Motors company offer affordable price as per luxuriousness of car and its availability is easy in reach; every dealer is able to provide the spare parts in 24 hours and its quality is fulfill by standard of parts as well as Indus Motors Company offer warranty (its depend on nature of auto part). IMC is not guaranteed if customer buy spare part from local market and spare parts price is much cheaper than Honda Atlas. Honda Atlas always follow those strategies which they can gain customer most attention to its brands. Honda Atlas always make possible to be genuine and look genuine. Honda attract its customer in under the statement that “Buy Honda genuine parts from Honda dealers and enjoy 6 month's Honda Warranty, the Honda warranty can vary product to product and contribute to the country’s economy and enjoy the satisfaction of using 100% genuine Honda Parts. But if customers buy the parts from open market; most probably is that customer may be buying smuggled parts and thus committing a moral crime and robbing your country from precious revenue, customer may unable to claim but if customer buy from Honda authorized Dealer so the part will be 100% genuine, customer has no need to buy from open market, the trust between customer and Honda Dealers become long lasting etc. It is the Honda Atlas’ aim to be No.1 in customer satisfaction in all three S, Sales, Service and Spare Parts and two S in the same time. .a MARKETING STRATEGIES: .a Market Segmentation Strategy: Indus motors company segment the market only in vehicle aspect but Honda Atlas is very conscious about to make lower and middle class customers they also make possible opportunity for both class customer, because Honda Atlas Believe that “one cent taken care a rupee and a rupee will take care itself” so the product for lower and middle class is a competitive edge on Indus Motor company, so for making low and middle class customer. Honda Atlas has been producing bikes series of CDI 70, Honda 100, CG 125 and CG deluxe 125, the price range from 68,000 to 85,000, bike riders have been much delighted by Honda bike series not only this the Honda Bikes are the No. 1 Quality in Pakistan and this price range is affordable, means Honda bikes are still well worth in Pakistan. Honda atlas has other
wide range of products variety in Pakistan, the target market of Honda atlas is sub divided by, generator , Water pumps, brush cutters, petrol engines these all products are available in a wide range of series. Honda Atlas has been segment the market by those customers who have these types of needs. The target customers for these products are those who will have an income in the range of approximately Rs. 100000 to 400000 per year. This income range is applicable for average type of product in all categories means that the income level may be varied depending on series nature. so, in the target market Indus motors company has limited opportunity for target rather, Honda atlas has a wide range of varieties for target customers here we can say that in this aspect Honda has a competitive advantage to make profit and customers because if a customer delighted by one product of Honda like generator, bike etc so brand positioning of Honda may be encourage to use Honda car (Honda City). .a Target marketing strategy: The Honda Atlas has been targeting the customer often targeting Indus Motors Company, so need to know and understand this issue that who will be interested in the services of Honda City? For male and female HACPL wants to produce and sell friendly and softly use of car for both (comparison by cars only), The age range from 25 to 65 years is the most average age car driver in Pakistan. The target customers are those who will have an income in the Rs. 50,000 and up range. Some customers in the lower income ranges are interested in specific services, interior restoration, or paint work and parts sales rather than full restorations. Honda atlas has a big opportunity in term of target market because Honda atlas has wide range of different product line as compare to Indus motors Company, Indus motors company deal with vehicle sector only but Honda Atlas has been dealing in Cars collection as well as in, generator, Water pumps, brush cutters, petrol engines. The income range of customer for these products (except Car Brands) lies in Rs. 100,000 to 200,000. Honda Atlas has been offering different variety of products and IMC’s target market is limited rather than Honda atlas has opportunity to target large volume of customers in Pakistan with product line.
.a Brand(s) positioning: Honda calls the design concept of the new Honda City the “arrowshot”. The car seems to concentrate all its forces on a point at a front, while the rear has a raised deck lid for a more upright stance. This makes the City look like its ready to release energy even when it is static. As with the Honda Accord, there are some hints of BMW-like design with the new City. According to Honda Atlas Brand positioning Strategy, it is quite similar to Indus Motors Company it is also based on provide quality products but as we know that Honda atlas has wide variety of brands and product but our main concern with Toyota Corolla and Honda City comparison in car competition of brand loyalty is purely based on the quality as well as price more over brand loyalty most concern with the 3S and 2S of Honda, if we talk about the sales, Honda atlas positioning its brand through simple and straight forward method of sales service, provide detail information to customers, luxuriousness, durability and reliability of Honda City, detail information about features of car, provide technical and functional information regarding car, take care of customers when they engaged in deal, for customer satisfaction Honda Atlas always keep in mind the needs and wants of customers. Honda atlas sell quality but reliable City car and they are offer quality and valued brand for which the brand has long been known. Honda Atlas positioning strategy also exist in quality sales, in simple words, a sale that done through well set standard format set by company in which give fair value to customer, avoid ambiguity, irretentiveness, provide full level of information, deal must based on make long term relationship not deal by selling product and many more characteristics involved in selling quality sales. The brand positioning of Honda Atlas, to provide quality, and reliable products to customer those fulfill the customers’ needs, demand and satisfaction. More over Honda atlas logo is enough to make understand us that how much they involved to make position in customers’ mind that is “The Power of Dreams”. Honda atlas always tries to stretch customers mind and make it possible as much as customer’s dream come true. Honda Atlas is very always busy in maintain Brand loyalty in customers mind same as Indus Motors Company (Pakistan). Honda
Atlas is doing deeply analysis to compete Indus Motors Company in brand positioning aspect as well for that hey has been doing hard work in its 3S and 2S. .i Pricing Strategy: Honda Atlas Company Pakistan has a mission to give good quality cars, achieve productquality leadership overall the Pakistan. The pricing strategy has been applying by this formula that Cost + Profit = Price. Honda Atlas is very crucial in the providing Quality product to customers. The perception behind that brand make as it talk itself and then customer will attain and will not as such consider price. IMC’s perception is that quality is the initial attraction of customers and the pricing is the strong support of product and IMC using pricing strategy as compliment part of success achievement. The standard of quality they do not perceive to give burden of high price at customers. .a Advertising and Promotion: Indus Motors Company (IMC) has a modest program of marketing its services that include the following: 1. 2. 3. 4. 5. Newspaper and magazines ads Press releases and magazines articles Car shows Website Calendars
Each of these marketing approaches has the advantage of being low cost and creating service awareness. The company is also make possible of having a grand opening program that would sponsorship, charity, social walk, donations, exhibition, functions, display in the large market (i.e. few month ago did advertise in Pak Tower. Karachi). and other promotional ideas. IMC feel that the company website is one of our best marketing strategies. It is linked to top listed web sites like Google.com and many other classic car restoration oriented websites and portals. The site has news about IMC business, answers to FAQ's and pictures of cars restored and the process of the restoration.
.a Distribution strategies: The Honda Atlas has been applying its distribution strategy by nature of product as company producing wide chain of different products. As we discussed in Market segmentation strategy, Honda Atlas distribution Divided in many ways like Honda cars, Bikes, and Power products, in distribution of Honda cars Honda Atlas has sixteen Dealers network in all over Pakistan and Four dealer exist in Karachi, for Bike Distribution twelve hundred and fourteen (1214) found as per research, and for power product, company has Eighty seven Dealers exist in Pakistan. Honda Atlas cars car plant established in Punjab and supply to supply to all over Pakistan’s distributors so, there is no specific demographical location for potential customers. Honda Atlas providing the opportunity to customer that they can buy Honda atlas Products from authorized Dealers. In distribution aspect, Honda Atlas has mission to make convenient and provide valued product to customers. SECTION II 5. CHAPTER# 5 .a FEATURES OF TOYOTA COROLLA AND HONDA CITY .a Brand Loyalty of TOYOTA COROLLA: Now we are in a position to differentiate Toyota Corolla and Honda City customer loyalty at this stage we will try to understand that what the reasons behind great Success are? In the customer perspective I found the conclusion or result that customers are mostly focused on three basic things through they create difference between Toyota Corolla and other Cars. The basic differentiated key elements are Interior, Exterior, and engine Performance of the car. The Toyota Corolla is one of the best selling cars in the world and in Pakistan perspective they are well mind reader of the customers. It gets good gas 44
mileage, has high scores for reliability, and yet is still affordable by most new car buyers. But of course, the Corolla hasn't gotten where it is by sitting on its laurels and the 2009 model is no different. And for the first time, Toyota offers a navigation system as an option on all models. Leather upholstery is an option that is available on the Toyota chain of models. In terms of driving; the Corolla's handling is solid. The ride is smooth and fairly quiet, even when confronted with dips and bounces. It has a tight turning radius and excellent brakepedal modulation. That being said, the Corolla isn't intended for avid "driving enthusiasts", although the XRS is a definite step up in performance. Interior controls are well laid out, easy to locate and easy to read. The seating is comfortable, outward visibility is good and the roominess is adequate given this is a compact car. The gas mileage for the new Corolla is one of its most coveted attributes. The 4-speed automatic is EPA rated at 27 mpg city and 35 mpg highway while the 5-speed automatic gets 22 mpg city and 30 mpg highway, due to its larger engine size. The standard 5-speed manual is rated at 27 mpg city and 35 mpg highway. While it appears there are some major challenges for carmakers for the 2009 model year and sales have already slowed considerably, the new Toyota Corolla again looks well suited for those buyers who need a new car this year. The Corolla's compact size, reliable history, excellent gas mileage performance and affordable pricing could make this star shine even more brightly. The newest Corolla has again been upgraded with more available power, more standard safety features, and fresh styling. For 2009 Corolla offers five trim levels versus the three for the 2008 model year. Base, LE, new XLE, and sporty S models are equipped with a 132horsepower 1.8-liter 4-cylinder engine, replacing the 126-hp 1.8-liter 4-cylinder. The top-line XRS model gets a 158-horsepower, 2.4-liter 4-cylinder. While a manual transmission is standard, the optional automatic transmission is a 4-speed on all the Corollas except the XRS, which gets a 5-speed. The XRS also gets 17-inch wheels and 4-wheel disc brakes. The other models get either 15 or 16-inch wheels and rear drum brakes. Available safety features include anti-lock brakes, an anti-skid system, traction control, front side airbags, and curtain side airbags.
.a Toyota Corolla Characteristics, Features and performance: EXTERIOR: First element of the customer and Toyota perspective is the exterior in which the shape of car is most importantly count in customer perspective admiration is a compliment that every eye will carry when it looks up to customer. Be in command of a vehicle that inspires customer to go far ahead of prevalent standards of pride & prestige. The new ALTIS Cruisetronic follows a new ‘Wide & Low’ design concept, with a significantly wider body, wider tread, and a bolder look. The dynamic proportions and the deeply contoured body refine the aerodynamics and overall stability of the car. Innovative press lines and sweep cut pillars bring motion in the car even while it is parked. The sporty front headlamps express assertiveness, and the tail lamps blend in with the bumper conveying balance in design. INTERIOR: Toyota corolla manufacturing has been always very conscious in customer perception as I mentioned above that they always try to capture customer’s perception than convert it into reality one of the factor is the Interior. The desire to challenge convention, stretch our own confines & move ahead of everything that limits us is natural to you. Take the seat that gives you a sense of unrestricted freedom. The interior of the Altis Cruisetronic is based in a new Grege color scheme, which conveys a sense of balance and harmony. Ergonomically designed, the interior promises maximum comfort during travel. Subtle but significant refinements in the Altis Cruisetronic delight you from the moment you enter the car. Illuminated entry, plush leather seats, flat rear floor and electric power steering are to name just a few of these refinements. The console and door trim is silhouetted in silver, and the wooden paneling and wooden shift lever express your sophistication. 46 the
Toyota corolla air-conditioning system is available with both manual and automatic controls. Toyota corolla has been achieving its success by this element because its Air Conditioning system has not tripped when this car going on long drive (out side from the city) rather its cooling system will be constant from starting point. The air conditioning blowers have their noise reduced by 5dB while increasing airflow capacity by 23%. Center dash area looks significantly better and more concise for seating capacity with the automatic controls are the design of the manual controls end up making the dash look cheap. Performance: Overall system also includes the touch of excellence goes down to every piston & ring to deliver a performance worthy of everything else this vehicle offers & give the Altis Cruisetronic might of its own. The Altis Cruisetronic is equipped with a powerful 1.8 liter, 4 cylinders DOHC, 16 valve VVTi engine. With a maximum output of 130 horsepower, the Altis Cruisetronic propels you with a might of its own. The variable valve timing with intelligence and the super ECT functions optimize acceleration and fuel efficiency providing you with the power and economy at all speeds. As we know that consumer does not have much information about the background function of the product like in this situation customer does not know about the technicality, functionality and other aspects which they may measure the engine performance but Toyota Corolla given them sophisticated value as they wants and satisfied. Customer may measure the engine performance through Driving it’s the best way to identify for customer suppose to long distance driving like wise From Karachi to Lahore etc than here mean to say that the performance is based on maximum driving. The most of the characteristic of Toyota Corolla engine is that it is support constantly in long driving somewhere other cars does not fully support to the car mean as much as car driving the engine cooling system do not support at last but in the system of Toyota corolla its cooling a
system of engine durably and continuously support to the engine and car Speed will be constant as much as customer can drive. .a Brand Loyalty of HONDA CITY: The Honda City is another aspect of my research due to comparison of brand loyalty of Customer. Honda City is the 2nd one high market shareholder in Pakistan automobile market note that we are compare 1300cc car. Honda City and Toyota Corolla have been surviving in very tough competition. In Pakistan perspective Toyota Corolla has higher market share than Honda City. Honda City is now in its third generation, now it has been launched in Pakistan. In line with the global economic outlook as well as global fuel prices, manufacturers have been downsizing their cars and the New City makes a perfect compact in Honda line-up slotted in under the Civic for world markets. It is considered to be a world car. Now, as it has also been recently revealed that the Honda City will also be sold in Europe. Look after the jump for an in-depth look at the new City.
.a HONDA CITY Characteristics, Features and performance: Exterior: The exterior element of the Honda City also important aspect to achieve success the design concept of the new Honda City the “arrowshot”, as we can see from the sketch above. The car seems to concentrate all its forces on a point at a front, while the rear has a raised deck lid for a more upright stance. This makes the City look like its ready to release energy even when it is static. As with the Honda Accord, there are some hints of BMW-like design with the new City, especially with the rear end and that Hoffmeister kink at the C-pillar. The front end of the car looks like it was lifted off the European Civic hatchback, with the grille from the Honda FCX Clarity. It looks quite concept-car-like, and I would say Honda was quite brave to have pulled this one off. I think there will be quite a few people who will be turned
off by the Optimum Prime futuristic look on the front end - but they can look at the aftermarket “solution providers” if they dislike it. I think the rest of the car looks good - the roofline does not flow as sleekly as the Civic, but it’s a huge improvement over the previous City. As for the wheels, you get either a 5-spoke wheel for the 15 inch size, or those funky Yshaped 5-spokers for the 16 inch size. For markets that call for a low-cost City. The Honda City series has an exterior design that unites the beauty of form and function to express the City's advanced driving performance. Its low front nose and close-clipped rear deck complement the powerful wedge shape, while contrasting areas on the sides form strong character lines that convey a sense of speed. The shortened roof and boldly slanted rear window offer a sporty proportion. The sculpted panels of the hatchback area support exceptional capacity and ease of loading while further emphasizing spottiness. Performance: As other’s, Engine is another base element for customers as I mentioned that customers’ are very conscious about the value and price they always want to gain more value instead of those money so companies always make it possible to make loyal customer. Honda City also fulfills the requirement of customers. They producing well performance engine cars as compare to others in new model of Honda city they introduced new 1.5L i-VTEC Engine The new L-Series SOHC i-VTEC engine in the. This change of technology is not our target but need to little introduction here that It produces 120 PS at 6,600rpm and 145Nm of torque at 4,800rpm, making it one of the most powerful 1.5 liter units today. Unlike the SOHC VTEC unit in the previous Honda City VTEC which only switched between opening and closing 1 of 2 intake valves per cylinder, the new i-VTEC engine actually varies the valve timing and valve lift, though this is not a continuously. Honda actually acknowledges this and claims the torque dip provides a smoother drive, whatever that means! The good news is this engine is compatible with fuel which should allow customers to save on them fuel bills a little.
.a Conclusion of TOYOTA COROLLA and HONDA CITY Brand Loyalty: The reason of understand above elements is that we must need to separately analysis that which factors make them different to other, these elements are perceived by customer which customer get more close to Brand but in the same time some of the technical specification involved in differentiation, those elements are not mostly customer easily understand. Technical specifications are those elements which a company should follow to achieve competitive edge so I mentioned technical specification in the bibliography. SECTION II 6. CHAPTER# 6 Methodology: .a Data Collection Sources: According to chosen project I decided to find out the raw information and data regarding topic for that most of the time I discussed with Deputy manager of Indus Motors Company’s Dealer (Southern Motors), and Manager of Honda Atlas Dealer (area name) they have been providing me raw information regarding customers’ dealing because my entire project based on Brand and Customers, although it is a key combination of loyalty. In other words, Satisfaction and benefit + Customer =Brand loyalty. As discussion on Brand loyalty I described about companies way of surviving both companies offer three key elements of Sales, Service and Spare Parts, base on these elements I also discussed with Toyota Corolla and Honda city Owners, as well as thanks for the technology that really curious, and helping out in finding of raw information which I visited to web sites of Indus Motors Company and Honda Atlas. .a Data Collection Tools: There are two sources for the data collection, primary and secondary sources: Primary Source:
Primary sources are original works of research or raw data without interpretation or pronouncement that represents an official opinion or position. Our primary research will be based on interviews conducted and information gathered through questionnaires. As per my requirement to know about the Brand loyalty of Toyota corolla and Honda City brands I have been conducting Open ended questions and close ended Questions those will allow us to understand and making bright picture of brand loyalty. Secondary Sources: Secondary sources are interpretations of primary data. Secondary research includes information from magazines, internet, encyclopedia, books, newspaper articles, etc. We have conduct secondary research from Internet, Journals, magazines, newspaper, etc. .a Questionnaire Analysis 1. WHAT ARE THE FACTORS YOU PERCIEVE IN A CAR WHICH LIES IN THE PRICE RANGE OF PKR 10, 000, 00 – 1500,000? Analysis: According to response about Toyota Corolla, Just over those respondents who loyal to Toyota Corolla said that they perceive in car would (19%"probably") Performance and reliability of the Toyota Corolla, this factor is very high in customers’ perspective more than half of the customers has been delighted by factor and also wants to purchase the Toyota Corolla next time they when they will in the market (34.3% "probably", 7.1% "definitely"). A little over one fourth (26.9%) were not inclined to perceive by factors because they are loyal with other Brand (12.9% "probably not", 14.0% "definitely not"). See fig1
Fuel Consumption status symbol effeciency performance and reliability maintenance spare parts luxury preferred company 0 5 10 15 20 25 30 35
WHAT ARE THE FACTORS YOU PERCIEVE IN A CAR WHICH LIES IN THE PRICE RANGE OF PKR 10, 000, 00 – 1500,000? According to response about Honda City, the loyal customer said that they perceive in car would "probably" luxuriousness of Honda City, they perceive that the luxuriousness of Honda City is quite well in comparison to Toyota Corolla and customers has widely been delighting in this aspect and they willing to buy next edition just because of this factor the percent of respondent wants to (34.3% "probably", 7.1% "definitely"). A little over one fourth (26.9%) were not inclined to purchase again from the same store (12.9% "probably not", 14.0% "definitely not"). The above factor as we see that a Toyota Corolla customer has been perceived by the Performance and reliability factor, is the most highly appreciated in Toyota Corolla customers’ perspective, and Honda City customers has delighting by Luxuriousness of the Honda City. Toyota Corolla and Honda City, difference which has been given a considerable weightage. There is a contradiction in the response itself which is depicted in which respondents gave more weightage in those perspectives see in above chart.
2. IF YOU ARE A TOYOTA COROLLA USER, HOW OFTEN DO YOU GO TO THE WORKSHOP FOR REPAIRS AND DO YOU PERCIEVE IN YOUR SATISFACTION LEVEL?
T eO Rp i sO Ty taCr l a i m f e ar f o o ool
o c awe ne e k o l i apo l m ny n r be
1o 2t msamn r i e o th Id nt h v Cr l a o ’ a e ool
o c i t r emnh ne n he o t s
Analysis: In the light of Toyota Corolla respondents, The 34.3% "Not at all”, 7.1% "A little" customers has been concerned in repair aspect which showing those satisfaction level, A little over (26.9%) were shown “moderate”, and (1% "A lot", 0% "Completely” definitely not") satisfied with repairs of car. The analysis of this question in Toyota Corolla aspect, clearly depicts the picture currently prevailing in the automobile market in which people are just talking about things which they have the first hand experience and they have well awareness about the Toyota Corolla also the reach of the workshop repair is much convenient for him. • IF YOU ARE A HONDA CITY USER, HOW OFTEN DO YOU GO TO THE WORKSHOP FOR REPAIRS AND DO YOU PERCIEVE IN YOUR SATISFACTION LEVEL?
Tim of Repair Of Honda C e Ity
13% 4% 13%
once a w eek only in a problem
1 or 2 tim a m es onth I don’t have Corolla
once in three m onths
But in Honda City aspect, the 34.3% "Not at all”, 7.1% "A little" customers has been concerned in repair aspect which showing those satisfaction level, A little over (26.9%) were shown “moderate”, and (1% "A lot", 0% "Completely” definitely not") satisfied with repairs of car. The analysis of this question clearly depicts the picture currently prevailing in the automobile market in which people are just talking about things which they don’t have the first hand experience. So, we may conclude Honda City not to be a manufacturing failure but a marketing failure only, the brand loyalty in this aspect showing differentiation or comparison in the above Graph. 3. DO YOU THINK TOYOTA COROLLA LUXURIOUSNESS FULFILL YOUR EXPECTATION, AND, UPTO WHAT PERCENTAGE THE WORDS “LUXURY” AND “TOYOTA” CAN BE ASSOCIATED TO EACH OTHER?
A ssociationof lu r an T xu y d oyota C orolla
N idea o
According to level of luxuriousness of Toyota Corolla aspect, the 34.3% "Not at all”, 7.1% "A little", (26.9%) “Moderate”, and (1% "A lot", 0% "Completely” think about the luxuriousness of car. The response shows that the main reason with Toyota Corolla being successful in the market is Toyota motors’ association to the cars manufactured and targeted mainly towards the middle class and upper class. • DO YOU THINK HONDA CITY LUXURIOUSNESS FULFILL YOUR EXPECTATION, AND, UPTO WHAT PERCENTAGE THE WORDS “LUXURY” AND “TOYOTA” CAN BE ASSOCIATED TO EACH OTHER?
Association of luxury and Honda City
5% 33% 24%
0% 14% 24%
Analysis: According to respond level of luxuriousness of Honda City aspect, the 34.3% "Not at all”, 7.1% "A little", (26.9%) “Moderate”, and (1% "A lot", 0% "Completely” think about the luxuriousness of car. The response shows that the Honda City has being in competition, the main problem with Honda City being not successful in the market is not much consideration the demand according to Toyota Corolla off course, the cars manufactured and targeted mainly towards the middle class and upper class as well.
4. DO YOU PERCIEVE ADDITIONAL BENEFITS OF TOYOTA COROLLA AND WHAT ARE THE ADDITIONAL BENEFITS YOU SEE IN TOYOTA COROLLA AS COMPARED TO HONDA CITY 1300CC CARS?
Additional Benefits of Toyota Corolla
company, IMC. luxury effeciency
price maintenance status symbol
5% 2% 11% 6%
performance reliability spare parts availability no idea
17% 8% 26%
Analysis: According to respond level additional benefits of Toyota Corolla, the 34.3% "Not at all”, 7.1% "A little", (26.9%) “Moderate” and (1% “A lot”, “0% completely” thinks about additional benefits of Toyota Corolla. The additional benefit for Toyota Corolla is providing more over the competitors, i.e. they are easier and less costly to maintain as compare to Honda City. Another conclusion that can be drawn from this questions analysis is that people are taking Toyota Corolla as Toyota’s another middle class targeted car, which is not the case • DO YOU PERCIEVED ADDITIONAL BENEFITS OF HONDA CITY AND WHAT ARE THE ADDITIONAL BENEFITS YOU SEE IN TOYOTA COROLLA AS COMPARED TO TOYOTA COROLLA 1300CC CARS?
Ad d itional B enefit of H a C ond ity
com y H C . pan , A PL l x ry uu effecien cy
pri ce m ten ce ain an statu sy bol s m
perf an reliability orm ce spare parts av ailability n idea o
18% 10% 3% 13%
Figure 1 Analysis: According to respond level additional benefits of Honda City, the 34.3% "Not at all”, 7.1% "A little", (26.9%) “Moderate” and (1% “A lot”, “0% completely” thinks about additional benefits of Toyota Corolla. In this aspect of response The additional benefit for Honda City is more over in the aspect of fuel consumption same as the other 1300cc cars of Honda Atlas Company have, i.e. they are less fuel consumption and much reliable at long drive. 5. DO YOU SATISFIED WITH TOYOTA COROLLA AND WILL YOU EVER ADVISE SOMEONE TO BUY TOYOTA COROLLA?
A dvice to buy Toyota Corolla
Analysis: According to respond level, the Advise about to buy Toyota Corolla is, the 34.3% "Not at all”, 7.1% "A little", (26.9%) “Moderate” and (1% “A lot”, “0% completely” thinks about to encourage people to buy Toyota Corolla. The respond of this question regarding Toyota Corolla is highly committed to the brand loyalty and they become a trustworthy of this brand because they have 57
word of mouth and self experience to drive Toyota Corolla and they wish to encourage others to buy Toyota Corolla also its customers are communication tool for Toyota Corolla. The reason is that they are very careful in marketing to segment its Toyota Corolla brand as per middle and upper class. • DO YOU SATISFIED WITH HONDA CITY AND WILL YOU EVER ADVISE SOMEONE TO BUY HONDA CITY?
Advice to buy Honda City
Analysis: According to respond level, the Advise about to buy Honda City is, the 34.3% "Not at all”, 7.1% "A little", (26.9%) “Moderate” and (1% “A lot”, “0% completely” thinks about to encourage people to buy Honda City. The response to this question points out the main marketing mistake done by the company itself. It is obvious from the graph that middle and upper class are a bit puzzled towards the targeting; either it is middle class targeted, or the upper class. Say for instance, if it is middle class targeted, then the CIVIC is also a middle class targeted, and if for upper class targeted, then the name of Honda itself is not associating the name with the upper class. Moreover people are having a problem to perceive their unconscious demand for Honda City, and this statement is proved from the responses to the last questions. 6. HOW MUCH YOU PERCIEVED FULFILLMENT OF COMPANY’S PROMISE AS THEY COMITTED TO PROVIDE A QUALITY SERVICE?
I C C m itmn I 3 M 's o m e t n S
Sls ae S rvc e ie S a P rt p re a s D nt k o o’ nw
1% 0 2% 5
Analysis: According to respond level, the commitment of quality regarding Toyota Corolla is, the 34.3% "Not at all”, 7.1% "A little", (26.9%) “Moderate” and (1% “A lot”, “0% completely” about the providing quality service for Toyota Corolla. The response to this question is regarding 3S (Sales, Service, and spare part) that Toyota have wide range of dealership which they providing 3S services by quality and these are easily reachable, Conveniently available and follow the just in time. • HOW MUCH YOU PERCIEVED FULFILLMENT OF COMPANY’S PROMISE AS THEY COMITTED TO PROVIDE A QUALITY SERVICE?
H C L C m en In3S A P 's om itm t
S es al S rvce e i 1% 0 2% 5 S a P rts p re a Dn k o o ’t n w
Analysis: According to respond level, the commitment of quality regarding Honda City is, the 34.3% "Not at all”, 7.1% "A little", (26.9%) “Moderate” and (1% “A lot”, “0% completely” about the providing quality service for Honda City. The respond results shown that the company providing 3S (Sales, Service and Spare Parts) as well as separately 2S services (sales and Services) available, that are more beneficial and efficient by quality.
7. WHAT ARE YOUR EXPECTATIONS ABOUT TOYOTA CORLLA AND IN COMPARISON TO HONDA CITY, WHICH FACTOR YOU FIND IT DIFFERENT?
Toyota Corolla Factors Comparison
Interior Engine performance 15% Exterior Don’t Know Fuel Consumption
Analysis: In the light of this respond, the expectations about Toyota Corolla is, the 3% "Not at all”, 7.1% "A little", (26.9%) “Moderate” and 43.6% “A lot”, “% completely” thinks about to encourage people to buy Toyota Corolla According to respond, people like the Toyota Corolla by consistent performance of the engine, interior and exterior, the performance of Toyota Corolla is highly appreciated, in comparison Toyota Corolla has charming and out class exterior, design/ shape, light interior color scheme is feeling brightness, and engine performance keep constant on driving for long drive i.e. traveling one city to another city. • WHAT ARE YOUR EXPECTATIONS ABOUT HONDA CITY AND IN COMPARISON TO TOYOTA COROLLA, WHICH FACTOR YOU FIND IT DIFFERENT?
Honda City Factors Comparison
Interior Engine performance
Exterior Don’t Know
Analysis: Now In the light of same question to Honda City, the respondent expectation about Toyota Corolla is, the 34.3% "Not at all”, 7.1% "A little", (26.9%) “Moderate” and (1% “A lot”, “0% completely” thinks about to encourage people to buy Toyota Corolla. According to this respond, the answer almost same but respondent perception changed by black interior color scheme that feeling cool, “Arrow shot” shape of exterior, shape/ design and fuel consumption as per issue of economy 8. WHAT DO YOU FEEL ABOUT TECHNOLOGY ENHANCEMENT AND YOUR LOYAL CAR’S PERFORMANCE?
Technology Enhancement in Toyota Corolla Speed Fuel Consumption engine consistency I Don’t have
Analysis: According to respond brand loyalty level, the performance of Toyota Corolla is, the 34.3% "Not at all”, 7.1% "A little", (26.9%) “Moderate” and (1% “A lot”, “0% completely” loyal by the Toyota Corolla performance. Usually speed and pick of the car is also a considerable era which consumer wants much more effective in this aspect due to the addition of high performance technological enhancement in Toyota Corolla VVTi 1.8 engine provide high level of performance and consistency. The VVTi technology based engine especially design and addition for 1300cc or plus in Toyota Corolla series. This shows that the car users are conscious to this factor but at the same time they are also very much concerned with the Performance. • WHAT DO YOU FEEL ABOUT TECHNOLOGY ENHANCEMENT AND YOUR LOYAL CAR’S PERFORMANCE?
Technology Enhancem in Honda ent 15%
35% 20% Speed Fuel Consum ption engine consistency I Don’t have
Analysis: In the light of same question to respond, the performance of the brand loyalty of Honda City is, the 34.3% "Not at all”, 7.1% "A little", (26.9%) “Moderate” and (1% “A lot”, “0% completely” loyal by the Honda City performance. The respond on this question, the technological addition in Honda City is now much more reliable as well as fuel consumption aspect also considerable during its performance the Honda City has technological advancement by iVTEC 1.5 engine it is more supportable and fuel consumption control ability because of economical factor exist and much considerable in Honda City buy aspect
.a Interview analysis
We have taken an interview session with Mr. Jamil Ahmed, Director Corporate Planning Division. 4.3 Interview From IMC Dealer Q1. Tell something about yourself? A. My name is Mazher Ghauri and I am Deputy Manager of Southern Motors (IMC). Q2. About your organization?
A. We have dealership of Indus Motors Company which we have been dealing Toyota vehicles range comprises of TOYOTA COROLLA, CAMRY, COURE and HILUX. They are having capacity of 150000 units. We have good growth since last 5 to6 years now there is a decline in sales. There are some reasons behind it, the main reason is the increase of interest rate, control of SBP monetary policy. Now the sales are stagnant after so many years of good growth. Anyways the highest level of sales in 1300cc cars is Toyota Corolla and in 850cc car is Coure is top of the list. Q3. What most of buyers require or demand to you about Toyota Corolla? A. According to requirements of customers they perceive that money in term of benefits like superior quality, reliability, performance and its cost. We assure to provide them Toyota Corolla in customers point of view because Indus Motors Company is very conscious to provide its product at the level of brand loyalty for its customers. Q4. How much of you spent your time on customer to briefing about the Toyota Corolla? Regarding Toyota Corolla, this 1300cc brand has well worth and well known overall in Pakistan. Mostly we do not need to briefing about Toyota Corolla, customers just came to dealer and purchase its loyal Toyota Corolla car in either cases they have word-of-mouth information and personal experience. Off course, we just provide information regarding new addition or technological enhancement in the car. Q5. From year 2005, the ban was lifted from imported cars. So the sales of Suzuki cars got affected? A. Not changed because the main reason was that we can not produce more as well as we continued our other imported car i.e. PRADO. Q6. There is a concern about the quality of Toyota Corolla cars. What do you say about it? A. I’ll not accept it with as far as any car is concern of Toyota. The reason is that our customers are very sensitive. Our customers are middle and upper class persons who are very conscious about that vehicle. So for our vehicle segment they are very much focused and mostly customers are well known about the Toyota Corolla related concern. If you talk about
quality our record is world over. But sometimes something happens .We have market share of around 62% so lots of people are talking obviously! The car comes to the dealer and is being repaired there and customer doesn’t know what happens with it. Q7. How do you maintain Brand loyalty of Toyota Corolla? This is really critical part of our customers because if any customer get clue regarding its satisfaction so the result will go opponent to us for that we have to very careful to deal and maintain our Brand (Toyota Corolla) positioning in customers mind. For that instance, we provide them 3S (Sales, Service and Spare Parts) very effectively and efficiently. Our aim is to get close more and more to customer. Q8. How do you compare your Toyota Corolla that, it is better than Honda City? Usually customers are not well aware regarding identify difference between Toyota Corolla and Honda City for that instance, we also provide them technical specification information which customer may come to understand easily. Q9. For improve/maintain brand loyalty of Toyota Corolla, what does Indus Motors Company do? Indus Motors Company has a mission to provide quality brand and customer satisfaction. For that IMC directly involved in every aspect and monitor all activities that engaged with the customer, the monitoring system is very straightforward and fair in which they does not compromise in any situation. We periodically asked to our customers and encourage them to feel free complaint, and appreciating those suggestion and comments.
Analysis Mr. Jamil is a very experienced candidate and he is an employee at PSMCL since 1988. He provided very handful information for us. Although he didn’t speak against PSMCL, but he tried to prove his point. The sale actually had gone down mainly due to the fact that the economy had shattered. And the de valuation of currency had increased the prices of cars. He declined that the quality of the cars are going down as he told us that the vendor’ are the 65
same and the quality of parts are not been tolerated. He said more that Liana is not having the expected result as they still haven’t achieved the goals of it. If Mr. Jamil had talked against PSMCL as well, he might have provided a great knowledge. But still, his interview provided good information. 4.3 Interview From IMC Dealer Q1. Tell something about yourself? A. My name is Mazher Ghauri and I am Deputy Manager of Southern Motors (IMC). Q2. About your organization? A. We have dealership of Indus Motors Company which we have been dealing Toyota vehicles range comprises of TOYOTA COROLLA, CAMRY, COURE, HIACE and HILUX. They are having capacity of 150000 units. We have good growth since last 5 to6 years now there is a decline in sales. There are some reasons behind it, the main reason is the increase of interest rate, control of SBP monetary policy. Now the sales are stagnant after so many years of good growth. Anyways the highest level of sales in 1300cc cars is Toyota Corolla and in 850cc car is Coure is top of the list. Q3. What most of buyers require or demand to you about Honda City? A. According to requirements of customers they perceive that money in term of benefits like superior quality, reliability, performance and its cost. We assure to provide them Toyota Corolla in customers point of view because Indus Motors Company is very conscious to provide its product at the level of brand loyalty for its customers. Q4. How much of you spent your time on customer to briefing about the Honda City? Regarding Toyota Corolla, this 1300cc brand has well worth and well known overall in Pakistan. Mostly we do not need to briefing about Toyota Corolla, customers just came to dealer and purchase its loyal Toyota Corolla car in either cases they have word-of-mouth information and personal experience. Off course, we just provide information regarding new addition or technological enhancement in the car.
Q5. From year 2005, the ban was lifted from imported cars. So the sales of Honda City cars got affected? A. Not changed because the main reason was that we can not produce more as well as we continued our other imported car i.e. PRADO. Q6. There is a concern about the quality of Honda City cars. What do you say about it? A. I’ll not accept it with as far as any car is concern of Toyota. The reason is that our customers are very sensitive. Our customers are middle and upper class persons who are very conscious about that vehicle. So for our vehicle segment they are very much focused and mostly customers are well known about the Toyota Corolla related concern. If you talk about quality our record is world over. But sometimes something happens .We have market share of around 62% so lots of people are talking obviously! The car comes to the dealer and is being repaired there and customer doesn’t know what happens with it. Q7. How do you maintain Brand loyalty of Honda City? This is really critical part of our customers because if any customer get clue regarding its satisfaction so the result will go opponent to us for that we have to very careful to deal and maintain our Brand (Toyota Corolla) positioning in customers mind. For that instance, we provide them 3S (Sales, Service and Spare Parts) very effectively and efficiently. Our aim is to get close more and more to customer. Q8. How do you compare your Honda City that, it is better than Toyota Corolla? Usually customers are not well aware regarding identify difference between Toyota Corolla and Honda City for that instance, we also provide them technical specification information which customer may come to understand easily. Q9. For improvement/ maintain brand loyalty of Honda City, what does Indus Motors Company do? Indus Motors Company has a mission to provide quality brand and customer satisfaction. For that IMC directly involved in every aspect and monitor all activities that engaged with the customer, the monitoring system is very straightforward and fair in which they does not 67
compromise in any situation. We periodically asked to our customers and encourage them to feel free complaint, and appreciating those suggestion and comments.
Analysis Mr. Jamil is a very experienced candidate and he is an employee at PSMCL since 1988. He provided very handful information for us. Although he didn’t speak against PSMCL, but he tried to prove his point. The sale actually had gone down mainly due to the fact that the economy had shattered. And the de valuation of currency had increased the prices of cars. He declined that the quality of the cars are going down as he told us that the vendor’ are the same and the quality of parts are not been tolerated. He said more that Liana is not having the expected result as they still haven’t achieved the goals of it. If Mr. Jamil had talked against PSMCL as well, he might have provided a great knowledge. But still, his interview provided good information.
.a Summery Pakistani Automobile Sector Consist of four main players in the domestic market and their cumulative share is about 95% of the total car Markets these includes Pak Suzuki, Motors Company, Indus Motors Corporations, Honda Atlas, Dewan Farooque Motors Limited and 5% of other car brand in which include china branded cars, imported cars etc. Among the above four Pak Suzuki enjoys the position as a market leader (62%) than by the Indus motors (27%) followed by Honda Atlas (9%) & Dewan motors (2%) respectively. The entire discussion has been surrounding in Pakistan environment. Now we are in a position to differentiate Toyota Corolla and Honda City’s Brand loyalty at this stage we are able to understand the reasons behind great Success. In the customer perspective we found the result that customers are mostly focused on three basic things through they create difference between Toyota Corolla and Honda City.
In Brand loyalty of 1300cc cars, TOYOTA Corolla and Honda City Honda City are highly competing in Pakistan. These companies have been offering 3S (Sales, Services and Spare parts) but similar to each other. Both have an extremely high reputation within the restoration community. They currently have doing more and more hard work for brand loyalty. They are still taking new customers from 1300cc car market. Toyota Corolla is one of the best selling cars in Pakistan. It gets good gas mileage, has high scores for reliability, and yet is still affordable by most new car buyers. But of course, the Corolla hasn't gotten where it is by sitting on its laurels. and the 2009 model is no different. The newest Corolla has again been upgraded with more available power, more standard safety features, and fresh styling. The basic differentiated key elements are Interior, Exterior, and engine Performance of the car. The Toyota Corolla is one of the best selling cars in the world and in Pakistan perspective they are well mind reader of the customers. We discussed in detail about both brands we found that both companies way of business is different Indus motors wants to achieve price quality leadership besides Honda atlas want to achieve product quality leadership and both companies’ profitability formula also has a big difference and these two factors makes the difference between both companies. The Indus motors company has been maintaining the product by pricing and brand. This factor is most critical part of IMC because it’s the mission of company that they want to leadership in the automobile industry of Pakistan for that they mostly consider the price and quality of the car. The Honda Atlas adopting the strategy which they think as its slogan “Power of Dream” in this aspect they wants to produce unique and innovative car but obiviously the high cost existing there, in Honda Atlas point of view make the product, it will sell itself means all are in the circular of differentiation. Honda Atlas has been charged its car price due to its aim of quality. Indus Motors Company’s slogan, "Concern Beyond Cars", has been a message which they covered most of the social responsibilities. Indus Motor Company has contributed over Rs 100 million in the past 5 years for health, education, welfare, environment and road safety 69
projects, thus playing a significant role in the communities where it operates. This theme of slogan is much to attract the customer which the customer feels that as they are social responsible they may be provides as much satisfaction as customers’ wants. Toyota Corolla is one of the best selling cars in Pakistan. It gets good gas mileage, has high scores for reliability, and yet is still affordable by most new car buyers. But of course, the Corolla hasn't gotten where it is by sitting on its laurels. and the 2009 model is no different. The newest Corolla has again been upgraded with more available power, more standard safety features, and fresh styling. The Dividend pay out ratio of Indus Motor is between 30% to 45 % and the dividend that Indus motor pays shows an increasing trend annually although Indus Motors is planning to expand their annual capacity but it does not effect on the dividend because of the strong cash flows and we are expecting Rs 14.30 dividend for the year of 2007-08. The market value of Indus Motor has been moving in a growing pattern year by year. In 2007 the market value of IMC share is 305.5 compare to the price of 72.25 in 2003 with the growth of 322% in the last five-year this shows a tremendous growth potential in the organization. Both companies follow its success through continuous improvement this is known as KAIZEN (continuous improvement), and it is very much common in both companies. The individual makes a proposal for the improvement in productivity and quality, by adopting this technique they makes create the difference in its brand. Brand loyalty, resale value, after sales service and spare parts availability were major considerations that kept customers preference skewed towards local cars both 1300cc Car demand has still very high and customers are delighted by those choice of brand which they selected. 7. CHAPTER# 7 .a CONCLUSION: The reasons that can be given to provide justification to our conclusion are as follows: 70
In present society and living way, the Brands not only represent the symbol of the company or product but to a larger extent define the general life of a person. What the person uses can reflect his taste of life, his status in the society, his economic background and many other things. This makes a deep connection between the company and its brand, with the consumer. In this two way relation both are dependent on each other for various different reasons. Customers purchase the specific brand things just due to the brand name. Customers believe that brand name is a symbol of quality. I came to the conclusion that when consumer purchases a car, brand names influence his choice. Customers choose the well known car brand. The study shows that Toyota Corolla and Honda City brands have a great place in consumer mind, when customers go for purchasing a car, they prefer by that creative perception. Honda City is less loyal to customer due to its high cost, low reliability, low performance, and lack of 3S availability, high cost of maintenance and Spare Parts and shape as compare to Toyota Corolla. Honda City model of 2005 was highly drop down because the car shape was did not appreciated in Pakistan moreover it was also failed in specific duration because of side mirror of the car the reason was that the side mirror was resisted by pillar of front quarter window which customer felt uncomfortable when he/she viewed back side. These problem had been shifted from the loyal brand. If a Customers delighted by Toyota Corolla he/she does not want to try Honda City car because they have no much information about it and vise versa. I feel that the purpose of this study has been fulfilled to some extant. The theory describe that brand name has a power, which attracts the customers towards branded products. The reason is that customer gets special connection with specific brands product and become the loyal with brand. • • Recommendation:
In the light of entire project I would like to highlight some recommendation I found that in the light of brand loyalty Toyota Corolla and Honda City gaining more and more competitive advantage because it purely involved according to the
Pakistan environment but Honda City has some weaknesses which Indus Motors Company has to keep on focusing in the customers’ point of view like • • The shape of car as customer perceive Interior of the car in black, which mostly people of Pakistan do not much like, instead, as they admired by soft and light color. • The Honda Atlas Company has to facilitate customers more than Indus Motors Company in term of addition of dealership, Make possible to facilitate customer by 3S, if possible, addition of 2S as well as they providing 2S service for other products. • Indus Motors Company has to establish 2S for compete the Pak SUZUKI because Pak Suzuki is the largest automobile company in Pakistan and its cars are highly appreciated because of economical price. • Honda Atlas Company has to improve its quality sales, service because the brand loyalty is sustained by truth, fairness, good dealing, and friendly attachment with loyal customer. SECTION III 8. CHAPTER# 8 .a Student Introduction: Student Bio-Data Roll No: Name: Father Name Postal Address mc070400252 MUHAMMAD USMAN AKHTAR ALI R-775 Sector No# 9. North Karachi, Karachi Postal Code Career Objective: 75850 To become innovative person
Area of specialization
ACADEMIC RECORDS EXAMINATION BS (cS) DAE Organization’s name: Designation: YEAR 2002 1996 INSTITUTION Petroman Training Ins. Jinnah Polytechnic Ins %AGE 64.68% 78.82%
Smz Enterprises -------------------------
Experience (in years): 2 years. .a Appendices Fig 2
Production Capacity in 2007-08
160000 140000 120000 100000 80000 60000 40000 20000 0
Sales of locally Produced cars and LCV's
250000 200000 150000 100000 50000 0
Toyota Company HondaCompany.
2004-05 2005-06 2006-07 2007-08
Market Share of Four Major Players
P a rt o f C a k e
9% 2% 27% 62%
Pak Suzuki Toyota Motors HondaCompany. Dewan Motors
t o t a l N o . o f u n it s T o y o t a M o t o rs
6 ,0 0 0 0 5 ,0 0 0 0 4 ,0 0 0 0 3 ,0 0 0 0 2 ,0 0 0 0 1 ,0 0 0 0 0
S ales Analysis Comparison
TOYOTA COROLLA HONDA CITY
year 2005-0 6
year 200 7-08
Figure Figure 8 Honda City Technical Specification:
Engine Type Combustion chamber type Valve train Displacement (cc (cm3)) Bore and Stroke(mm) Compression ratio Fuel supply system Emission system Maximum Power(kw/rpm) Transmission Clutch type Transmission type Gear ratios 1st M/T 2nd 3rd 4th 5th reverse final reduction ratio Clutch type Transmission type Gear ratios 1st A/T 2nd 3rd 4th 5th reverse final reduction ratio Dimensions & Weight Overall Length(mm) Width(mm) 2.995 1.678 1.066 0.76 0.551 1.956 4.562 4,395 1,695 3.307 1.75 1.171 0.923 0.767 3.307 4.625 3-element torque converter with lock-up clutch Electronically controlled automatic, 5-speed forward, 1 reverse Single plate dry, diaphragm spring Synchronized, 5-speed forward, 1 reverse Water-cooled 4cycle,L4 Cylinder Gasoline Engine BOWL-IN TYPE Chain drive SOHC,4VLV per Cylinder 1,300 73 x 80 10.5 Electronic Fuel Injection EURO-4 73/6,000
Height(mm) Wheelbase(mm) Tread Ground Clearance(mm) Max. Permissible Weight (ibs(us)/kg) Seating Capacity (iv) Chassis Front Rear Front(mm) Stabilizer bar type / size Brake Parking Brake Type Disc Diameter Front(mm) Rear with ABS(mm) Type Steering system Overall ratio Turns, lock to lock Turning Radius At Body (ft/m ) Fuel Tank Capacity(liters) Tire Size Battery capacity(V-Ah) Front Rear 175/65R15 175/65R15 24（5） Rack & Pinion Rear(mm) Front Rear with ABS DISK DRUM Mechanical Mcpherson Strut Torsion beam axle Front(mm) Rear(mm)
1,480 2,550 1,492 1,475 160 1,450 5
262 200 15.89 3.29 5.3 42
Figure 9 Toyota Corolla Technical Specification:
DIMENSIONS ALTIS CRUISE TRONIC SR
Xli Exterior: L x W x H (mm) Interior: L x W x H (mm) Wheel Base (mm) Minimum Turning Radius (m)
ALTIS M/T SR
2.0D Saloon Sunroof
4540 x 1760 x 1480
1890 x 1450 x 1195
ENGINE SPECIFICATIONS Engine Type 2NZ-FE 1 ZZ-FE 2C
Engine Displacement (cc)
1299 EFI with VVTI
Fuel System Max. Output(SAENET) Max. Torque(SAENET)
EFI with VVTI
97 kW(130hp)/6000 rpm
170 Nm/4200 rpm
PERFORMANCE 4 Speed AT with Switchtr onic
Transmission Super ECT (Electronic Controlled Transmission) Front Brakes Rear ABS + Brake Assist + Electronic Brake Force Distribution Front Suspension Rear Stabilizer Bar Steering System
5 Speed MT
4 Speed AT with Switchtronic
5 Speed MT
5 Speed M/T
Yes Ventilated Disc Solid Disc
YES MacPherson Strut Torsion Beam Front/Rear
Electric Power Steering System 195/65 R15 Steel 195/65 R15 Steel
Tire and Wheel Fuel Tank Capacity Fuel Cut System
195/65 R15 Alloy Rims 55 Liters Yes
195/65 R15 Alloy Rims
EXTERIOR Antenna Front Head Lamps Glass Embedded Print Antenna
4 Lamps Multi-reflector
Rear Lamps Windshield Wipers High Mount Stop Lamp Windshield Mud Guard Rear Garnish Side Impact Bars Side Protection Moulding Rocker Moulding
LED (Light Emitting Diode) Type Intermittent with Diffusing Washer Type Nozzle
YES Green Laminated with Top Shade Body Color Body Color
Extended 15 Inch Alloy Rims
Full Cap 15"
15 Inch Alloy Rims
Full Cap 15"
INTERIOR Interior Color Scheme Sunroof No Yes
Greg No Fabric High Grade Yes
Seats Rear Cabin Flat Floor Keyless Entry Illuminated Entry System Steering Multi Information Display Meter Illumination Control Speedometer Tachometer
Fabric High Grade
Yes No Yes No Yes
4 Spoke Urethane Tilt and Telescopic
Yes Positron km/h Yes
Gear Shift Lever Wood Grain Finish
Gate Type lever Leather + Sequential (Silver)
Gate Type lever Leather + Wood Sequenti al (Silver)
Yes 2 DIN audio with Player/ AM-FM/ Mp3 (High Grade)
Yes High Grade 2Audio 6 Driver+Passenger (with Vanity mirror)
2 DIN audio with Player/ AM-FM/ Mp3
Speaker Sun visor Rear Seat Armrest with Cupholders Center Console Box rear Headrest Central Door Locking Power Windows Digital Clock
6 Driver + Passenger (with Vanity mirror)
with Lid + 2 Step Separate*3 + Leather
with Lid + 2 Step
Key Reminder Warning Light on Warning Reverse Gear Warning
No Driver + Passeng er: 3 Point ELR
Yes Driver + Passeng er: 3 Point ELR
No Driver: 3 Point, with Pretensioner and Force Limiter Passenger
Seat Belt Front Rear
Driver: 3 Point, with Pretensioner and Force Limiter Passenger
2 Passenger: 3 Point ELR Center Passenger: Non Retractable
SRS Air Bag (Driver side)
yes No Yes No Yes
Figure 10 Comparison by Technical Specification and Price:
Specs Xli Gli PKR 1,389000 New City MT PKR 1,319,000 New Honda City AT PKR 1,439,000 How Corolla Is Better? Honda City is expensive
Price Dimentsions Exterior: L x W x H (mm) Interior: L x W x H (mm) Wheel Base (mm) Ground Clearance (mm) Minimum Turning Radius (m) Wheel Size ENGINE SPECIFICATIONS Engine Type Fuel System Max. Output(SAENET) Max. Torque(SAENET)
4540 x 1760 x 1480 1890 x 1450 x 1195 2600 180 5.3 m 15
14395 x 1695 x1480
2550 160 5.3 15 x 5J
Bigger wheel Base Better Ground Clearance
DOHC (twin cam) 2NZ-FE 4-Cylinder VVTi EFI with VVTI 63(84)/6000 121/4400
SOHC (single over head Cam) 16 Valve 4 Cylinder i-VTEC EFI (electronic Fuel injection) 73(100)/6000 128/6000 electronically Controlled Automatic 5 Synchronized 5 speed 1 Speed forward forward 1 Reverse reverse 175/65 R15 Disk / Drum
Better Fuel Efficient engine with low midTorque
Transmission Basic Tire and Wheel Brakes (Front/ Rear)
5 Speed MT 195/65 R15 Steel Ventilated / Solid ABS + Brake Assist + Electronic Brake Force 15" Solid Disk Brakes Distribution MacPherson Strut Torsion Beam 55 Liters Glass Embedded Print Antenna Body Color Black (Electric) (electric) Black (FR &RR) LED (Light Emitting Diode) Type Stop Lamps Intermittent with Diffusing Washer Type Nozzle Body Color
ABS with BA (with14" Disk)
Brake Type Suspension (Front) Suspension (Rear) Fuel Tank Capacity EXTERIOR Antenna Door mirrors with side turn signal lamps Mud Guard Rear Lamps Windshield Wipers Bumper
Gli Gives Electronic Brake Force distribution (EBD) With ABS and BA. Give Better Brake than City
42 liters Micro non (FR &RR) Multi Reflecting Crystal Tail Lights Non Body Color
More Fuel Capacity
Better rear Lamps
Black , white. Available Colors INTERIOR Interior Color Scheme Illuminated Entry System Air Conditioner CD Player & AM/FM Radio Central Door Locking Power Windows Speaker Steering type Rear Cabin Flat Floor Keyless Entry Illuminated Entry System Steering Meter Information Display Rear Seat Armrest with Cupholders Safety Emission Standard Seat Belt
Black, White, gun metallic, shim green, strong blue, jarama beige, Silver.
Black, white, A-Silver, D-Blue, Grey polished Metal
7 colors available in Gli
Grege Yes Yes Single CD Player No No 2 Tilt and Telescopic Flat Floor No Yes Tilt and Telescopic Multi Information Display No Yes Yes Yes 4
Black No Yes Single CD Player Yes Yes 2 (Front) Tilt electronic Power Steering Normal Yes No Tilt electronic Power Steering LCD Info meter Display No No Tilt and telescopic Steering Multi Information Dispay Rear Arm Aet in Gli Better Sound More Speaers in Gli Tilt and telescopic Steering
Euro- 2 (2FR/2R) 3 Point ELR + 1rear center non retractable
Euro- 4 3 Point ELR Seatbelts Seat Belts For Each Pessenger
800 vendors...............................................2 automobile sector......................................1 Automotive industry in Pakistan...............1 components manufacturing.......................2 first Model.................................................4 founder’s son.............................................4 IMC Training Center.................................5 Indus Motors.............................................5 Indus Motors Company.............................3
Karachi......................................................3 Model AA.................................................4 Pakistan Automotive Manufacturers Association............................................3 PAMA.......................................................3 PAMA objective.......................................4 time period................................................3 TMC..........................................................4 Company Philosophy...............................4
Toyota Corolla and Honda ..................2, 3 Toyota Motors..........................................4
Toyota/Honda...........................................2 Type A engine..........................................4