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SUPERIOR UNIVERSITY

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

KHALID AZEEM 8257

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EXECUTIVE SUMMERY

We have selected Honda to create


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

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DEDICATION

We are dedicating our work to our parents and respected teacher


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

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ACKNOWLEDEGMENT

We are very thankful to marketing department of Bata Shoe


Organization which gave us valuable information. We pay gratitude
to Bata staff giving valuable information.

We are also very thankful to SARDAR ABID ALI KHAN who


helped a lot us by giving up to date information.

We are very proud of our teacher Prof. Soofia waleed whose help
and instructions enable us to bind papers into project manner. We
are very thankful to him.

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PREFACE

“The most beautiful things we can experience are the mysterious .It
is source of all true art and science”
(Albert Einstein, 1930)

This project is based on the topic which is assigned to us by our


respected teacher Madam Sofia Waleed, the organization which we
took for research is:

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

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TABLE OF CONTENT

1. CURRENT MARKET SITUATION ……………..………... 08

1.1 PRODUCT REVIEW ………………………………….... 11

1.2 MARKET REVIEW ……………………………………. 18

1.3 DISTRIBUTION ……………………………………….. 19

1.4 COMPITERS REVIEW …………………….………..… 21

2. SWOT ANALYSIS ………………………………..…………. 23

3. OBJECT AND ISSUE ………………………….…………… 25

4. DEVELOP STRTEGY ………………………….………….. 26

5. ACTION PLAN (5W) ………………………………………. 32

6. BUGET ………………………………………………………. 33

7. REFERENCE ………………………………………………… 34

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CURRENT MARKET SITUATION OF CARS INDUSTRIES

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


condition. Due to following reasons
1. Leasing
At the end of December, 2006. The President of Pakistan
Pervaiz Musharraf.
Introduced new polices for leasing. Starting from 2007 the banks in
Pakistan applied strict Polices for commercialization. This policy of
strict leasing rules directly effect on the production of cars in the
industry.
The no. of sold cars in 2006 was almost one million, which reduces to
three hundred thousands.
Now a day the leasing is totally eliminated from the banking sectors.
2. Branded and refurnished cars
Sheikh Rasheed had given the license of Branded and refurnished cars in
Pakistan. Custom duty had been free for branded and refurnished cars.
That is the reason; people of Pakistan purchased these cars like Vitz,
Platz, and Mini Pajaro.

CURRENT MARKET SITUATION OF HONDA

leasing and refurnished cars also have direct impact on the production of
Honda. But overall market situation Honda is better than other
companies. The annual production and growth shows that Honda is
market leader.

If we study the environment of Pakistan there is a opportunity for Honda


to have a new product line in the form of Jeeps. In Japan Honda has
already lunched the series of Jeeps with the name of CRV series. But
still in Pakistan there is no Jeep of Honda available.

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In 2005-07 many refurnished Pajero and Jeeps were imported but they
could not satisfy the customers.

CAR INDUSTRY IN PAKISTAN

Honda Atlas Cars Pakistan Limited is a joint


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

Customer Service Centers


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

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

Repair and Maintenance


HACPL is providing regular trainings to the dealers' technicians. The
trainings cover all aspects of the cars including the periodic
maintenance, diagnostics, trouble shooting and repairs according to
HONDA standards. From this we want to facilitate the customers in

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maintaining their cars in top-most condition and enjoying the comfort
and performance of the luxury vehicles they own. It is our endeavor to
have uniform service standards made available at all dealerships in
accordance with the international Honda standards. We consider the
properly maintained vehicles not only to be a source of satisfaction to
our customers; they also increase the sale value of their car.

Career

At Honda we believe that a skilled, motivated and diversified workforce


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

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PRODUCT REVIEW

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

Performance
Honda heightens your driving enjoyment with a rare
combination of spirited engine response and exceptional
fuel efficiency. This ideal balance is achieved by Honda's
next-generation 1.8-liter SOHC i-VTEC engine - the first
entirely new Civic power plant in 17 years. Through
Honda's advanced i-VTEC (Intelligent Variable Valve

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Timing and Lift Electronic Control) system and DBW
(Drive By Wire) technology, it performs like two types of
engines in one compact unit. At high engine loads, such
as when starting from a standstill or stepping on the
accelerator, DBW fully opens the throttle while VTEC
optimizes intake valve timing to generate 2.0-liter-
equivalent power. At low engine loads, such as during
high-speed cruising, DBW narrows the throttle opening
while VTEC delays valve closing to achieve 1.5-liter-
equivalent fuel efficiency. Settings are intelligently
switched in a seamless manner to ensure smooth, linear
response at all revolutions

Engine
Type Water-cooled, In-Line 4-Cylinder
Valve Train 16-Valve SOHC i-VTEC
Fuel Supply System Multi-Point Fuel Injection
Throttle System Drive-by-Wire
Bore / Stroke (mm) 81.0 X 87.3
Displacement (cubic cm) 1,799
Compression Ratio 10.5 : 1
Maximum Horsepower
140 @ 6,300
(bhp @ rpm)
Maximum Torque (lb.-ft @
128 @ 4,300
rpm)
Direct Ignition System with
Ignition System
Immobilizer
Steering
Gear Type Rack & pinion, Power assisted
Steering Wheel Turns
2.67
(Lock-to-Lock)
Braking System

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Type 4 - Wheel Disc ABS
Electronic Brake force
O
Distribution (EBD)
Tires / Wheels
Tire Size 195 / 65 R 15
Wheel Size 15 X 6 JJ
Steel Wheel 5-Spoke
Wheel Type
with Full Cover Aluminum Alloy
Interior / Convenience
Interior color Grey & Beige Grey & Beige
Sun - roof X O
Steering Wheel 3 - spokes 3 - spokes
Speaker System 4 - speakers 4 - speakers
Seat Cover Material Tri cots High Grade
Safety
Supplement Restraint
System (Airbags)
X O
(Driver & Front Seat
Passenger)
Pre-pensioner
Seatbelts - Front O
with EA
Rear O O
Adjustable Shoulder
O O
Anchor (Front)
High Mount Stop Lamp O O
Fog Lamps X O
Door Beams O O
High-tension Steel O O
Crumple Zones O O
G - CON O O

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Is there a better way to build a compact sedan?
Hondas affirmative answer is the revolutionary new City.

The New Honda CITY


Steermatic1.5L
TYPE MT VARIO
VTEC
ENGINE
SOHC, 4-
iDSI (Intelligence Dual &
Type Cylinder 16
Sequential Ignition)
valve-VTEC
PGMF-I
Fuel supply PGMF-I Programmed Fuel
(Programmed
system Injection
Fuel Injection)

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Displacement 1300 1497
Compression
8.8:1 10.1:1
ratio
Maximum
horsepower 57 (78) / 5,800 81(110) / 5,800
(KW(PS)RPM)
Maximum
143(14.6) /
torque 106 (10.8) / 3,000
4,800
(N.M(KGM)RPM)
Continuously
Variable
Synchromesh
Transmission Transmission Steermatic (CVT
five forward,
Type + 7 speed mode)
one reverse
6 Position
(CVT)
STEERING SYSTEM
Gear Type Rack and pinion, power assisted
Overall length
4390
(mm)
Overall width
1690
(mm)
Overall height
1485
(mm)
Wheel base
2450
(mm)
Tread Front
1455
(mm)
Tread Rear
1455
(mm)
Ground
160
clearance
SUSPENSION SYSTEM
McPherson strut with coil spring &
Front / Rear
stabilizer / H-shape Torsion Beam
BREAKING SYSTEM
Front Ventilated discs

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Rear Leading / trailing shoe drums
TYPES / WHEELS
Tire Size 165/80 R13 185/55 R15
Wheel Size 13X5J 15X6J

Enter the cockpit of the New Accord and bask is


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

Type Water-cooled, In-Line 4-Cylinder


Engine Block Aluminum Alloy
Valve Train 16-Valve SOHC i-VTEC
Fuel Supply System Multi-Point Fuel Injection

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Throttle System Drive-by-Wire
Bore / Stroke (mm) 81.0 X 87.3
Displacement (cubic cm) 1,799
Compression Ratio 10.5 : 1
Maximum Horsepower
140 @ 6,300
(bhp @ rpm)
Maximum Torque (lb.-ft @
128 @ 4,300
rpm)
Ignition System Direct Ignition System with Immobilizer
Transmission
Manual Synchromesh 5 forward speed - 1 reverse
Compact 5- Speed Automatic (Progressive
Prosmatec
Shift Management Technology)
Steering
Gear Type Rack & pinion, Power assisted
Steering Wheel Turns
2.67
(Lock-to-Lock)
Dimensions
Overall Length (mm) 4,540
Overall Width (mm) 1,755
Overall Height (mm) 1,435
Wheel Base (mm) 2,700
Tread (Front / Rear) (mm) 1,500 / 1,530
Ground Clearance (mm) High Road Clearance
Suspension
Front Control-Link McPherson Strut Suspension
Rear Reactive-Link Double Wishbone Suspension
Braking System
Type 4 - Wheel Disc ABS
Electronic Brake force
O
Distribution (EBD)
Tires / Wheels
Tire Size 195 / 65 R 15
Wheel Size 15 X 6 JJ
Wheel Type Steel Wheel 5-Spoke Aluminum Alloy

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with Full Cover
Others
Fuel tank (Liters) 50 L
Interior color Grey & Beige Grey & Beige
Steering Wheel 3 - spokes 3 - spokes
Speaker System 4 - speakers 4 - speakers
Seatbelts - Front O Pre-tensioned with EA

MARKET REVIEW

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DISTRIBUTION

3S Dealership (Sales, Service, Spare Parts)


2S Dealership (Service, Spare Parts)
FAISALABAD Faisalabad Honda Chenab
Main Canal Bank Road, Green View Colony,
Faisalabad. Akbarabad, Faisalabad.
Tel: (041) 731741-3 Tel: (041) 2603349, 2603449
Fax: (041) 731741 Fax: (041) 2603549

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Gujranala Honda S.I.T.E.
Honda Gujranwala C-1, Main Manghopir Road
G T Road, S.I.T.E, Karachi.
Gujranwala. Tel: (021) 2577411-2
Tel:(0431) 893481-2 Fax: (021) 2577412
Hadraaba Email: hondsite@cybernet.pk
Honda Palace 7113-6
Shahbaz Town, Fax: (021 Honda South
Jamshoro Road 1B, Sector 23, Korangi
Hyderabad. Industrial Area Karachi.
Tel: (0221) 641178-9 Tel: (021) 5050251-4
Fax: (0221) 641519 Fax: (021) 5064599
Islamabad ) 4526758
Honda Classic Email: hsf@gem.net.pk
Plot 179, I 10/3, Industrial Area,
Islamabad. Lahore
Tel:(051) 4438801-02 Honda City Sales
Fax:(051) 2278553 75 B, Block L,
Honda Classic Lounge Ferozpur Road Gulberg III Lahore.
Pak Plaza,Blue Area 1019 Fazal Haq Rd. Tel: (042) 5881881-3
Islamabad. Fax: (042) 5831147
Tel:(051) 2278553, 2278528 Honda Fort
Fax:(051) 2278553 32 Queen's Road,
Karachi Lahore.
Honda Defence Tel: (042) 6314162-3
67/1, Korangi Road, Fax: (042) 6361076
Near HINO Circle, Karachi. Email: hfort@nexlinx.net.pk
Tel: (021) 5805291-4 Honda Yakata
Fax: (021) 5805294 202-Y Commercial Area,
Email: hdha@hotmail.com DHA Lahore.
Honda Drive-In Tel: (042) 2122200-3, 8444491-94
118-C, Rashid Minhas Road, Fax: (042) 5892437
Karachi. Honda Point
Tel: (021) 4992832-7 Main Defence Road,
Fax: (021) 4992823 Lahore Cantt.
Email: allibhai@hotmail.com Tel: (042) 5700994-95
Honda Quaideen Fax: (042) 5700993
2,33-A-2, PECHS
Karachi. Mire pur
Tel: (021) 4556071-3 Honda Canal
Fax: (021) 4554644 13-B, K Block, Shokat Khanum Bypass
E-mail: allibhai@hotmail.com Johar Town, Lahore.
Honda Sharah-e-Faisal Tel: (042) 5314168
13, Banglore Town, Sharah-e-Faisal, Fax: (042) 5314169
Karachi. Honda Empire
Tel: (021) 4527070, 454 Mian Muhammad Road,

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Quaid-e-Azam Chowk, Tel: (048) 3226067,3226290,3226089
Mirpur Azad Kashmir. Fax: (048) 3226196
Tel: (058610) 51500,51502-03 Sialkot

Multan Honda Falcon


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

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

Sargodha
Honda Citrus Field
7 KM, Lahore Road,
Sargodha.

432) 269656

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Fax: (

32) 262578 COMPITERS REVIEW

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

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

 .Accessible Technology

 .Globalization.

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


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

Competitors Analysis
The competition environment has a large impact on the marketing operations of
the company. Before launching a product, it is necessary to analyze the
competition environment of the target market. If there is a threat from
large competition, than a suitable marketing strategy has to be worked
out to overcome the problems. Product differentiation or price
leadership can lead to success. Current Industry competition is high
because of the Government policies and threat of new strong entrants.
We have three types of competition which are as follows
 Brand competition

 Form competition

 Generic competition

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

1. IDENTIFY THE COMPETITORS


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

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

B. MARKET COMPETITORS.
It means when we come with tea in the market we are not going to
compete only with Tapal but also with Coffee. This example helps us
to understand market competitors but when we talk about the Honda
product in the market we see there is not other substitute of cars as
coffee for tea hence all the industrial competitions are also the
competitions of Honda in market.
2. PLAYERS OF INDUSTRY.
Honda categories the business according to this concept into four types
 .Market Leader.

 .Market Follower.
 .Market Challenger

 .Market Nicher
In it we have to mention that what type of player our product to be so
Honda is doing this we compare in realistic manner then we see Honda
is market leader, Toyota is its challenger and Suzuki is market nicher.

SWOT ANALYSIS
SWOT ANALYSIS OF HONDA

STRENGTHS

 .Quality of Cars
 .Comfort ability of Cars

 .Good Will
 .Production Technology.
WEAKNESS

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

OPPORTUNITY

 .Export business expansion


 .Increasing ratio on quality conscious people.
 Honda can increase product line by introducing jeeps
THREATS

 .Govt. unstable policies due to political unsuitability


 .High market share of branded and refurnished cars
 .Limited purchasing power.

 Strict leasing polices may not be removed by the Govt.


 Duty free agreement between China and Pakistan
OBJECTIVES AND ISSUE

The objective of our marketing plan is to introduce the


executive class product in the form of Honda Jeep.

To maintain the repute of Honda in the


Market
To introduce latest safety tools in car
industry
To introduce new design including
interior and exterior
To create fully automatic function
replacing manual function
To protect environment by introducing
smokeless engine
MARKETING STRATEGY
POSITIONING
Honda is placing itself in the country with the help of its different
departments. Marketing divisions has its distribution and selling
channels comprising
PRICING STRATEGY
As the Honda have relatively have price than other companies, so to
lunched ABBAKZ-1 its price will be 4.5 million.
PRODUCT STRATEGY
The quality of HONDA product is good but knows there are many
competitors in the market. We have to develop the following features
in ABBAKZ-1, .
Interior

 .Durability
 .Comfort ability

 .Reliability
Colors

 Vogue silver metallic


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

Advance Safety System


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

Advance Breaking System


Comfortable Cockpit

DISTRIBUTORS
In order to manage distributors sales
1. Constantly control weekly / sales estimate
2. Advance orders intake as per estimates
4. Ship the supplies to distributors as per schedule.
5. Ensure back up stock in warehouse for managing timely supply.
6. Timely collection of outstanding as per wholesale policy.
7. Control and settle distributor's customer’s claims as per policy.
8. Control, analyze profitability of each channel.
9. Ensure price inventory of stocks held by distributors for reduction
increment and sales action.
10. Study and keep track of competition activities.
11. To intimate sales promotions and executive. The same in
standardized form in distributor’s dealer store.
12. To help all dealers, distributors informed about shoe collection
PROMOTION
ADVERTISING

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


and enhance company image.
We have prepared three advertisements for ABBAKZ-1,

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


o Second ad will on – air 14th august 2008.
o Thirst ad will be on –air 30th august 2008.
There will be hundred bill boards erected in the mentioned cities.

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

SALES PROMOTION
We have prepared the sale promotion planning which is following

For first hundred customers there will be a gift of LG Flatirons 29’

For next hundred users a gift of Nikon handy cam will be offered
ACTION PLAN

The jeep will be lunched according to following plan.


 The ABBAKZ-1 will be lunched on 14th August. 2008.
 The opening ceremony of ABBAKZ-1 will be held on 14th august
in Pearl Continental Hotel Lahore.
 The ABBAKZ-1 will be available in five cities of Pakistan,
Lahore, Karachi, Islamabad, Peshawar.
 For advertisement we have three ads of ABBAKZ-1
 First ad will be on -air. On first August 2008.
 Second ad will on – air 14th august 2008.
 Thirst ad will be on –air 30th august 2008.
 The sign boards will be erected first August 2008 in five famous
places of Lahore. Century Tower, Calvalry Ground, Garden
Town, Pace, Thokar Niyaz Beig, and Azadi Chowk.

Budget

Description Price Total


Bill Boards 20000x100 6 Million
TV ads preparation 500000x3 3.5 Million
Ads display on Geo 100000x3

Sales Promotion TV=30000x100 4 Million


(TV+Nikion)+ Nikon=10000x100
New Paper Ads 10000x100 1 Million
Fund For Charity 100000/ month 1 Million
Cost of Production 3x2000 6000 Million

Total 6016.5 Million

Details of Bill Boards


Size Rate Total
30x90 feet 20000/ per day 1.8 Million
20x60 feet 10000/ per day 0.9 Million

Cost of Production
The cost for making a ABBAKZ-1 is 3 million. The first production
will be 2000.
Expenses per year/
Revenue/Million Profit/Million
Million
4.5x2000=9000 13.5x12=162 9000-
6016.5=2983.5

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

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