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Assignment # 2

Strategic Marketing Management


Topic: Marketing Strategies
Toyota Corolla 2014 & Honda Civic 2016
(Pakistan)

Salman Malik Shah (7433)

Submitted to
Mr. Syed Murad Rizvi

Saturday 6:30 to 9:00 PM


Sunday 3:00 to 6:00 PM
Date: 30th July, 2016
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Marketing Strategy - Toyota Corolla 2014 & Honda Civic 2016| IQRA
UNIVERSITY

Toyota Pakistan
Toyota Company emerged as a public limited company in Dec. 1989 and initiated its
commercial production of new Toyota cars in May 1993. Firsthand Toyota automotive
production facilities are located in Karachi, Pakistan. Indus Motor Company is the
only manufacturer around the world, where Toyota and Daihatsu cars are
manufactured together. Toyota new car is one of the most favorite cars in our
country. State of the art automotive technology is used in the making of new Toyota
cars at production facilities located in Karachi.
Toyota is providing safe & sound journey world-wide including Toyota Pakistan. Auto
technologies developed by Toyota are warmly appreciated in our society. Indus
Motor Company (IMC) is the distributor of Toyota and Daihatsu vehicles through its
dealers network such as Toyota Ravi Motors spread all over Pakistan. IMC is a joint
venture of House of Habib, Toyota Motor Corporation, and Toyota Tsusho Corporation
for assembling, manufacturing and marketing Toyota automobiles in Pakistan.
New Toyota cars are assembled on Toyota Production Systems applied at IMC,
Toyota Pakistan. Find range of new Toyota vehicles including Altis, Avanza, Camry,
Corolla, Fortuner, Hilux, and Prado released in Pakistan. IMC is manufacturing 1300
to 2000cc Toyota Corolla, 850cc Daihatsu Cuore in cars and 2400cc Toyota Hilux in
LCV.

Marketing Strategy Toyota Corolla 2014


We will be taking in to account all the essential elements of marketing strategy that
Toyota has incorporated for its new Toyota Corolla 2014 including product, price,
place and promotion:

Product Toyota Corolla 2014


Toyota is an eminent name among cars in Pakistan and is known for Toyotas Dream
Car Art initiative in the country. Cars by Toyota are popular for their high resale
value in comparison to competitors.

Toyota launched Toyota Corolla New Model in 2014 with the aim of offering a
luxury product for its customers.

Marketing Strategy - Toyota Corolla 2014 & Honda Civic 2016| IQRA
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They have completely changed the design both inside out and have brought
in market a different design from its preceding models. This one is much
broader offering more comfort.
They have given this car a premium look thus targeting upper-class too.
They have categorized and offered different versions targeting varied classes
such as XLI, GLI and Grande for elite class.

Price:

Price in comparison to competitor is less and thus they take the advantage of
being cost-effective. They have kept their prices low with market oriented
pricing strategy focused in order to enhance their reach and to further
penetrate in market in comparison to Honda Civic.
Price difference is a considerable amount if buyer is looking for quality within
a specific budget.

Promotion & Advertisement:

They have marketed Toyota Corolla on different mediums such as


newspapers and online websites. In Dawn and Jung, they marketed through a
full page advertisement.
They have used personal selling through dealership sales personnel and
these individuals individually target and promote cars to potential buyers.
Promotion through public relations is another important aspect of marketing
this car.
Grande version of the car with its iconic design was promoted through
billboards placed on prime locations.
Toyota also focuses on supporting environmental and social development
initiatives that gives them a par over their competitors.
Special promotions and deals are often offered for enhancing sales of Toyota
Corolla.
Direct selling is also used for clients on corporate level.

Honda Pakistan
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 04, 1992 and joint venture agreement was signed on
August 05, 1993. The first car rolled off the assembly line on May 26, 1994. Official
inauguration was done by then President of Pakistan, Sardar Farooq Ahmad Khan
Leghari. Mr.Kawamoto, President of Honda Motor Company Limited Japan was also

Marketing Strategy - Toyota Corolla 2014 & Honda Civic 2016| IQRA
UNIVERSITY

present to grace the occasion. The company is listed in Karachi, Lahore and
Islamabad Stock Exchanges.
On July 14, 1994, car bookings started at six dealerships in Karachi, Lahore, and
Islamabad. Since then the Dealerships network has expanded and now the company
has Twenty One 3S (Sales, Service and Spare Parts), Eighteen 2S (Service and Spare
Parts) and Five 1S (Spare Parts) authorized dealerships network in all major cities of
Pakistan. Since the commencement of production in 1994, the company has
produced and sold more than 200,000 cars till July 12, 2012. 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.
Currently, they are offering Honda Accord, Honda CR-V, Honda CR-Z, Honda HR-V,
Honda Civic (four models), Honda City Aspire (four models) and Honda City (four
models) in wide range of colors with advanced technological features

Marketing Strategy Honda Civic 2016


We will be taking in to account all the essential elements of marketing strategy that
Honda Atlas has incorporated for its new Honda Civic 10 th Generation 2016 including
product, price, place and promotion:

Product - Honda Civic 2016


Honda is known for its innovation and use of advance technology and they have
continued to do for this car as well.

They have brilliantly upgraded design of this car giving it a completely new
look with improved interior and exterior while maintaining the sporty look.
Improved seating, steering wheel, multidimensional dash, audio controls and
many changes have been made to give this car an outstanding interior.
Honda Civic 2016 comes with a widely spaced gear ratios, independent
suspension, stable wheel base and smooth engines that give it improved
performance.
This car has been made fuel-efficient and eco-friendly.

Price:
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Marketing Strategy - Toyota Corolla 2014 & Honda Civic 2016| IQRA
UNIVERSITY

Honda has created an image among its target audiences as being a luxury
for elite class.
This car is priced relatively higher in comparison to other competitors giving
its target customers a perception that the car is priced high in order to
ensure excellent quality, absolute comfort, safety and luxury for customers.

Promotion & Advertisement:


Honda is a brand known for its quality and innovation. Honda was never into an
aggressive promotional activities but the company always tried to maintain the
quality and created a brand image by providing better customer service. Honda has
been precise in their advertisement and they have used following mediums for
advertisements.

They have marketed Honda Civic 2016 through advertisement in newspapers


such as Dawn and Jung.
They promoted their car in connection with their network of reliable
authorized dealers.
They have used innovative channels such as social media marketing and
other online websites such as www.Pakwheel.com. Through these channels
they have created hype for this product by offering updates and news related
to this model time after time.
They have also focused on direct marketing through their sales team where
customers and dealers were individually targeted resulting in enhanced
sales.
Honda recently had a promotional road drive for Honda Civic 2016 in Lahore.
They have been quite responsive to all the comments, advices, suggestions
and confusions that their target market and have been responding positively.
Some negative reflections/confusions for this model were rumored by their
competitors and they have dealt with it well.
They have promoted this car as fuel-efficient and eco-friendly thus
differentiating Honda Civic from its competitors.
They always have strived to offer outstanding service to their valued
customers. In addition to providing regular service to customers, the
company also regularly conducts Service Campaigns, to facilitate customer's

Marketing Strategy - Toyota Corolla 2014 & Honda Civic 2016| IQRA
UNIVERSITY

need for service. This has given their customers absolute confidence in their
cars, clearly evident from the ever increasing sale volumes.

Suggestions for Enhancing Outreach and Sales


Toyota Corolla 2014

Both the companies can enhance their outreach by offering some promotions
such as free car insurance for 1st year after sale.
Toyotas past experience and a mark/name in country is already there but
they should focus more on advertising on TV.

Suggestions for Enhancing Outreach and Sales


Honda Civic 2016

If Honda could reduce the pricing difference and match its competitor Toyota
Corolla Grandes price tag, it could help in reaching more customers thus
resulting in increase of sales.
Both the companies can enhance their outreach by offering some promotions
such as free car insurance for 1st year after sale.

Honda should work on improving government PR similar to what Toyota is doing so


that more of their cars would be bought for governments official use.

Marketing Strategy - Toyota Corolla 2014 & Honda Civic 2016| IQRA
UNIVERSITY