honda
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COMPANY PROFILE:
HONDA ATLAS CARS PAKISTAN LIMITED is a joint venture between HONDA MOTOR COMPANY LIMITED Japan, and the ATLAS GROUP OF COMPANIES, Pakistan.
The agreements signed between the two sponsors are for technical collaborations for development parts and systems for manufacture of HONDA CARS in Pakistan. Pakistani and Japanese cultures have blended exceptionally well to form a professional team of Institute of Business Administration 1
dedicated specialist.
The company was incorporated on November --, 1992 and joint venture agreement was signed on August ---, 1993. The ground breaking ceremony was held on April 17, 1993 and within a record time of 11 months, construction and erection of machinery was completed. The first car rolled off the assembly line on May 26, 1994. Official inauguration was done by President of Pakistan, Sardar Farooq Ahmad Khan Leghari. Mr.Kawamoto, President of Honda Motor Company Limited Japan was also present to grace the occasion. The company is listed on Karachi, Lahore and Islamabad Stock Exchanges.
On July 14, 1994, car bookings started at six dealerships in Karachi, Lahore, and Islamabad
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Since then the Dealerships Network has expanded and now the company has sixteen 3S (Sales, Service and Spare Parts) and thirty 2S (Service and Spare Parts) Pit shops network in all major cities of Pakistan.
Since the commencement of production in 1994 till March31, 2005, the company has produced and sold over 77,500 cars.
All dealerships are constructed in accordance with the standards defined by HONDA World over. Percentage of local parts conforms to the government's policy. Local vendors are continuously patronized to develop parts locally. The quality of local parts is thoroughly checked to meet stringent international standards. HONDA always strives to give outstanding service to their valued customers. In addition to providing regular service to customers, the company also regularly conducts Service
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Campaigns, to facilitate customer's need for service. This has given customers absolute confidence in HONDA 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. In 1996 the full model
change of HONDA CIVIC introduced, after just one and half year of commencement of production. Three models in Civic VTI, EXI and LXI with 1.6L and 1.5L engines were introduced in VTI and EXI models respectively. In 1997 Honda CITY 1.3L car in Et and EX models and Honda City EXI with 1.5L were launched.
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VISION STATEMENT:
HONDA vision to position itself in Auto industry is stated by management as follows:
Focusing on “satisfaction” (customer’, associates’ and shareholders’) are dedicated with challenging spirit and flexibility, we to supplying latest generation cars with advanced tech-nology, greater fuel efficiency and competitive prices, along with friendly and efficient after sales back up, maintaing “quality” as core
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all activities.”
HONDA'S ENVIRONMENT STATEMENT:
HONDA environment policy established and announced in June 1992. As a responsible member of society whose task lies in the preservation of the global environment, company will make every effort to contribute to human health and the preservation of the global environment in each phase of its corporate activity. Only in this way will we be able to count on a successful future not only for our company, but for the entire world. We should pursue our daily business interest under the following principles:
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BUSINESS PRINCIPLES OF HONDA ATLAS CARS (PAKISTAN) LIMITED: ENVIRONMENTAL POLICY:
•
We will make efforts to recycle materials and conserve and energy at every stage of our products’ life cycle fro research, design, production and sales, to services and disposal.
•
We will make every effort to minimize and find appropriate methods to dispose of waste and contaminants that are produced through the use of our products, and in every stage of life cycle of these products.
•
We will consider the influence that our corporate activities have on the regional environment and society, and endeavor to improve the social standing of the company.
•
As both a member of the company and of society, each employee will focus on the importance of making efforts to preserve human health and the global environment, and will do his or her part to ensure that the company as a whole acts responsibly.
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HONDA ATLAS CARS (PAKISTAN) LIMITED, being responsible member of society considers the preservation of the global environment as a crucial concern reviewed on 30th June, 2004. Our environmental philosophy is firmly based on the following guidelines.
•
Recognize the impacts of the significant aspects on the environment resulting from our activities, products and services.
•
Formulate objectives and targets for pollution prevention, environmental impacts mitigation and resource conservation as far as technically feasible.
•
Operate in compliance with relevant environmental laws, regulations and other requirements that apply to our activities.
•
Create environment friendly attitude among associates.
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•
Commitment to continual improvement of the environmental performance and review of the environmental management system to ensure its suitability, adequacy and effectiveness.
QUALITY POLICY :
At HONDA we are committed to focus all are activities leading to: • • • • Manufacturing high quality products. Customer satisfaction. Service to society. Maintain market leadership.
HONDA ATLAS CARS PAKISTAN LIMITED is a quality conscious company. That’s why HONDA ATLAS CARS PAKISTAN LIMITED is the first automobile company in Pakistan who has achieved “ISO 9002” certification.
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OTHER BUSINESS PRINCIPLES OF HONDA:
Following are different policies &principles of Honda namely:
•
MANAGEMENT POLICY:(respect, man power
importance, 3s spirit, 3A “hand on approach”, be a corporate citizen).
•
HONDA ATLAS CARS (PAKISTAN) LIMITED CORPORATE POLICY: (ideal
working environment , adequate return to share holders, dynamic marketing &manufacturing).
•
PRIORITY STANDARDS OF CONDUCT:(safety ,quality ,productivity).
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•
HUMAN RESOURCE AND SUCCESSION PLAN:(hiring competent associates
,providing opportunities for internal mobility through personal training and development, enabling them to take higher position).
•
SAFETY ,HEALTH AND ENVIORMENT:(comply with applicable Govt.
requirements, avoid risks to human health ).
•
OPERATING PRINCIPLES:(always keep the
dead line, never make excuses, team work).
Marketing mix:
“The set of marketing tools that the firm uses
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to pursue its marketing objective in target market.”
4 P’s OF MARKETING MIX by (McCarthy):
The “Marketing Mix” is probably the most famous phrase in marketing. • • these tools called the four P’s. There are literally dozens of marketing mix tools. McCarthy popularized a four factor classification of
Product, Place, Promotion and Price. These components are called marketing decision variables because a marketing manager can vary the type and amount of each element. One primary goal is to create and maintain a marketing mix that satisfies consumer’s needs for a general product type. Marketing mix often is viewed as “controllable” variables because they can be changed. However, there are no limits to how much these variables can be altered. They are not totally controllable.
WEB VIEW OF 4 P’s OF MKT MIX:
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Product
Price
Marketing Mix
Product
Promotion
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EXPLANATION OF FOUR P’s ACCORDING TO ( WILLIAM J STANTON):
PRODUCT:
“It is a set of attributes assembled in an identifiable form.”
OR
It can be defined as every want satisfying attribute a consumer receives in making an exchange, including psychological as well as physical benefits. It includes product planning, product research and development; product testing; and the service accompanying the product.
PRICE:
“Price is amount of money and /or other items with utility needed to acquire a product.”
OR
It is the value that one puts on the utility that one receives of goods and services. It includes price determination; pricing policies; and specific pricing strategies.
PLACE:
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It is the making available of products in quantity desired to as many customers as possible and to hold the total inventory, transportation and storage costs as low as possible. It includes selection. Coordination and evaluation of channels; transportation; warehousing; and inventory control. OR A channel of distribution comprises a set of institutions which perform all of the activities utilized to move a product and its title from production to consumption. Bucklin - Theory of Distribution Channel Structure (1966) Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer.
PROMOTION:
It is the element in an organization’s marketing mix that serves to inform, persuade and remind the market of a product and/or the organization selling it, in hopes of influencing the recipient’s feelings, beliefs or behaviors.
OR It is used to facilitate exchanges by informing one or more groups of people about an organization and its products. Promotion includes such areas as sales management; personal selling; advertising sales promotional programs and all other forms of marketing communications.
MARKETING VARIABLE UNDER EACH “P”
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Product is the first element among the four elements of marketing mix that are called as 4P’s of Marketing Mix. Product is meant to meet customer needs and satisfaction. Product is actually the key element in the marketing offering. The beginning of the marketing mix is to formulate an offering in order to make the customer’s need satisfied.
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“Product is anything that can be offered to market for attention, acquisition, use or consumption that might satisfy a want or need of the person. It includes physical objects, services, person, places, organization, events, properties, information and ideas.” It is said that product is much more than the physical attributes Pro
PRODUCT
TANGIBLE ATTRIBUTES
INTANGIBLE ATTRIBUTES
duct contains both tangible and intangible components, predominantly tangible products are called as goods and intangible products are called as services. Being working on HONDA ATLAS CARS we have to basically deal with a product that is luxury vehicles for the customers. Being a motor vehicle organization HONDA has established a complete brand name in the motor vehicles industry.
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PRODUCTS OFFERED BY HONDA ATLAS CARS PAKISTAN :
Honda basically offers the consumers and business products both to facilitates the consumer.
PRODUCTS OFFERED BY HONDA ATLAS CARS PAK LTD CONSUMER AS WELL AS BUSINESS VEHICLES
HONDA CIVIC
HONDA CITY
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HONDA CIVIC:
HONDA CITY:
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PRODUCT STRATERGIES OF HONDA ATLAS ARS PAKISTAN:
• New product strategy • Development process • Product mix • Position strategy • Product life cycle • Branding strategy • Product features • Product parts • Services • Product quality • Product design
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NEW PRODUCT STRATEGY:
As we know the product innovation is of three types Products those are really innovative. Replacement those are significantly different from the existing product. Imitative products that are new t company but not new to market.
HONDA falls in 1ST category .HONDA ATLAS CARS is providing vehicles to the customer that is really new to customers & relatively different from the existing ones. The strategy of HONDA ATLAS CARS is to attract the customer with the unique characteristics of the vehicles. As the automobile industry in PAKISTAN has diversity. So the main aim of HONDA ATLAS CARS is to capture the market share by introducing the new in existing available vehicles. The core element behind their strategy is to introduce their vehicle in order to strengthen their reputation in the eyes of consumers.
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DEVELOPMENT PROCESS ADOPTED BY HONDA:
The development strategy regarding product of HONDA is being dealt by the HONDA MOTOR COMPANY JAPAN. As we know that the HONDA is made to deal with the requirement of the local customers. The following steps are taken by HONDA regarding development:
Step # 01: Generation of new idea Step # 02: Screening of idea Step # 03: concept development and testing Step # 04: Marketing strategy Step # 05: Business analysis Step # 06: product development Step # 07: test marketing Step # 08: commercialization
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1. GENERATION OF IDEA:
HONDA always thinks about something new to meet the requirement of the customers. HONDA ATLAS CARS is authorized in PAKISTAN to generate the ideas about improvement in their vehicles. On the other hand, to remain leading in automobile industry it’s the trend to give new features to the existing vehicles.
2. IDEA SCREENING:
All the new ideas cannot be implemented so HONDA screens the pool of ideas in order to refine them, for this purpose HONDA has some experts who analyze and guide the company to proceed.
3. BUSINEES ANALYSIS:
HONDA experts’ team estimates the market demand, competition, and cost of adding new feature to the vehicles.
4. TEST MARKETING:
After the analysis a survey is conducted from the target market by telling the introducing features of so that profitability of that project can be evaluated.
5. COMMERCIALIZATION:
Now the HONDA is in the position to launch a model with introducing features.
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PRODUCT MIX OF HONDA ATLAS CARS (PAKISTAN) LIMITED:
A product mix is set of all products offered for sale by a company. The structure of a product mix has both breath and depth.
PRODUCT MIX OF HONDA ATLAS CARS
Breadth (No of product line) offered by Honda
Depth (Variety of sizes, colors models) Offered by Honda
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BREADTH:
It is measured by the number of the product lines carried. The following are the product line of HONDA:
1. Honda civic 2. Honda city 3. Honda motorcycles 4. Honda generators 5. Honda boats
DEPTH:
It is expressed by the variety of sizes, colors and models offered within each product line. Attributes offered by HONDA in various product lines are:
1. COLOUR 2. MODEL 3. SPECIFICATION
The product mix of HONDA ATLAS CARS would be explained below:
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HONDA CIVIC:
1.COLOUR:
Colors that change your Life.
DIFFERENT COLORS OFFERED IN HONDA CIVIC
Cyprus Blue Pearl
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Grantic Verde Metallic
Cappuccino Brown Pearl
Charcoal Grey Pearl
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Shalimar Rose Mist
Vogue Silver Metallic
Frost White
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Grenada Black Pearl
Canyon Stone Silver Metallic
2.MODELS:
• Exi (MT) • Exi (PT) • VTi (MT) • VTi (PT) • VTi Oriel (MT) • VTi Oriel (PT)
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3.SPECIFICATION:
The Dream Comes True HONDA CIVIC Specifications. Type ENGINE
Type
EXi
VTi
Water-cooled 4-stroke SOHC 16-valve in-line 4-cylinder Transversely Mounted PGM - FI (Programmed Fuel Injection) 75.0 X 84.5 1,493 81 (110) / 5,800 135 (13.8) / 4,500
Fuel Supply System (mm) Bore / Stroke (mm) Displacement (cubic cm) Maximum horsepower (KW (PS) / RPM) Maximum torque (N.M (KGM) / RPM)
PGM - FI + VTEC - III 75.0 X 90.0 1,590 96 (130) / 6,600 146 (14.9) / 5,000
TRANSMISSION
Manual Prosmatec Synchromesh five forward speed, one reverse 4 - speed fully automatic (Progressive Shift Management Technology)
STEERING SYSTEM
Gear Type Rack & pinion, Power assisted
DIMENSIONS
Overall length (mm) Overall width (mm) Overall height (mm) Wheel base (mm) Tread (Front / Rear) (mm) Ground clearance (mm) 4455 1720 1455 2620 1470 / 1470 170
SUSPENSION SYSTEM
Front Rear New McPherson Strut front suspension New rear double wishbone suspension
BRAKING SYSTEM
Type Electronic Brake force Distribution (EBD) 4- wheel disc brakes X 4 - wheel disc ABS (Anti-Lock Braking System) O
TIRE / WHEELS
Tire Size Wheel Size 185 / 65 R 14 (86H) 14 X 5 JJ 185 / 65 R 15 (88H) 15 X 6 JJ
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HONDA CITY:
1.COLOURS:
Colors that change your Life.
DIFFERENT COLOURS OFFERED IN HONDA CITY:
Following are the different colors that are offered in HONDA CITY.
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Granada Black Pearl
Frost White
Cyprus Blue Pearl
Silver Grey Pearl
Vogue Silver Metallic
Canyon Stone Silver Metallic
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Shalimar Rose Mist
Pearl
Charcoal Grey
2.MODELS:
• Exi • Exi – s • Exi – s (AT) • Neo 1.5 • VARIO
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3.SPECIFICATION:
The NEW HONDA CITY Specification Type ENGINE
Type Fuel supply system Displacement Compression ratio Maximum horsepower (KW(PS)RPM) Maximum torque (N.M(KGM)RPM)
EXi-S
VARIO
iDSI (Intelligence Dual & Sequencial Ignition) PGMF-I Programmed Fuel Injectioni 1300 10.5 57 (78) / 5,800 105 (10.8) / 3,000
TRANSMISSION
Manual Automatic Synchromesh five forward, one reverse ---Continuously Variable Transmission 6 position (CVT)
----
STEERING SYSTEM
Gear Type Rack and pinion, power assisted
DIMENSIONS
Overall length (mm) Overall width (mm) Overall height (mm) Wheel base (mm) Tread Front (mm) Tread Rear (mm) Ground clearance 4310 1690 1510 2450 1454 1445 160
SUSPENSION SYSTEM
Front / Rear Independent Strut / H-shaoe Torsion Beam
BRAKING SYSTEM
Front Rear Ventilated discs Leading / trailing shoe drums
TIRE / WHEELS
Tire Size Wheel Size 165/BO R13 13X5J
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POSITION STRATEGY:
“Market positioning is arranging for a product to occupy a clear, distinctive and desirable place in the minds of the customers relative to completing products.”
In this way product is defined by consumer on important attributes. The management of HONDA has planned a position that distinguishes their vehicles from their competitor’s ones. It’s the shinning point of HONDA that after analyzing their positioning strategy they conclude that they provide maximum satisfaction to their consumers. To make good position in the automobile industry the HONDA first identifies the possible advantages about its vehicles. In order to have the competitive advantage, HONDA offer great value to choose target segments by offering more benefits and luxury accessories to justify their prices.
VARIOUS STRATEGIES OF HONDA:
In order to better position the vehicles HONDA is tend to adopt the following strategies:
1.POSITIONING IN RELATION TO COMPETITORS:
As we know that HONDA has a solid differential advantage on its vehicles. To fend of its rival that is TOYOTA over here, HONDA has brought out successful models that are meeting the customers need so well.
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2.POSITIONING IN RELATION TO PRODUCT ATTRIBUTES:
Under this strategy the HONDA management has more concern because the consumers of these luxuries vehicle are more intended towards the product attributes. HONDA has been continuously working to give more accessories to their vehicle in order remain alive in the minds of their target market.
3.POSITIONING BY PRICE AND QUALITY:
HONDA has been very successful in positioning its vehicle in relation to the price and quality. The strategy is to have no compromise over the quality of its vehicles in regard to the parts.
PRODUCT LIFE CYCLE:
“The product life cycle consists of the aggregate demand over an extended period of time for all brands comprising a generic product category.”
The product life cycle consists of four stages:
• Introduction • Growth • Maturity • Decline
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1.INTRODUCTION:
During this stage, a product is launched into market in a full-scale marketing program. It is also called the pioneering stage.
2.GROWTH:
In this stage, sales and profits rise, frequently at a rapid rate. It is also called marketacceptance stage.
3.MATURITY:
During the first part of this stage, sales continue to increase, but at a decreasing rate. During the other part of this stage, marginal producers, those with high costs or no differential advantage, drop out of the market.
4.DECLINE:
In this stage, sales are decreasing because of these three reasons: • • • A better or less expensive product is developed to meet the same need. The need of the product disappears, often because of another product development. People simply grow tired of a product.
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HONDA’S PRODUCT LIFE CYCLE:
HONDA lies in the early stage where sales continue to increase and profits are maximum. So HONDA tries its level best to maintain this present situation.
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BRANDING STRATEGY ADOPTED BY HONDA:
It is common view that consumes view a brand name as an important part of the product and no doubt branding ads to the value of the product.
Branding is actually: “A name, term, sign, symbol, or a design or a combination of these intended to identify the goods and services of one seller to differentiate them with the products and services of their competitors.”
HONDA BRAND NAME:
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BRAND DECISION MADE BY HONDA:
Brand decision of HONDA is based on the fact that it is most popular perceived by the customer as luxurious vehicle. HONDA brand name has strong consumer loyalty but only in a specific target segment of the whole society.
BRANDING STRATEGY:
HONDA has struggled a lot to keep its brand being remain in minds of consumers. Under this regard the main strategy is to add the valuable features to vehicles to keep the brand loyalty.
BRAND PERSONNA:
Every brand of HONDA has its own branding strategy. HONDA ATLAS CARS PAKISTAN LIMITED builds brand persona for each brand. Pricing, Promotion, Distribution and future products development follow brand persona.
BRAND CIVIC
MESSAGE
DISTRACTINGLY GOOD LOOKING
PERSONA
FOR THE STYLISH, GOOD LOOKING PEOPLE FOR THE LUXURIOUS VEHICLE LOVERS
CITY
EXTREME PERFECTION
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PRODUCT FEATURE:
To get a superior market share the product must have the salient features in it. HONDA has adopted the same strategy that it has been continuously adding features to its vehicles. Let have a look vehicles offered by HONDA ATLAS CARS (PAKISTAN.) LIMITED in regard to their features
Honda Civic:
The shinning features of Honda civic would be elaborated as follows:
EXTERIOR: Distractingly good looking:
New Civic has an exciting new style. It’s the car for people who know what’s happening. Who shape the time?
There’s a lot to love about the Civic:
It's reliable, economical and remarkably fuel-efficient.
It's now equipped with new headlights, bumpers and grille, so you'll have a tough time concentrating on anything except its stylish good looks.
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INTEROR:
Comfort, convenience and luxury with style:
Trend should conform to climate, weather and conditions. HONDA beige, pragmatically selected to stay clean and spotless for years.
Feel the difference!
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CIVIC SOPHISTICATION:
GENEROUS AMOUNTS OF LEGROOM, COURTESY OF HONDA'S FLAT REAR FLOOR:
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AUDIO SYSTEM:
Ten disc CD Changer with flip front stereo & remote control on all models.
OPEN MOON ROOF:
Oriel - tilt & slide open moon roof with daylight shutter.
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GENEROUS LUGAGGE SPACE:
METERS:
Large innovative colored meters for easy reading.
ELECTRICALLY RETRACTABLE DOOR MIRRORS:
Redesigned electrically retractable door mirrors reduces wind noise and can fold easy parking.
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REAL WORLD CRASH TEST FACILITY:
HONDA is committed to resolving the complex issue raised by real-world crash research.
When braking hard or on slippery surfaces, HONDA ABS automatically lends
expert braking assistance to help driver retain steering control
Every door is equipped with two steel door beams that lend solid passenger
protection in the event of a collision from either side.
A sub frame in the shortened nose efficiently absorbs impact energy.
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Honda's G-CON technology moderates the force of impact and helps maintain
around you and your passengers. Innovative front side frame, crumples upon impact, then bend like a joint to absorb maximum energy in a frontal collusion.
HONDA CITY:
EXTREME PERFECTION:
THE SPIRIT
Is there a better way to build a compact sedan? HONDA'S affirmative answer is the revolutionary new CITY. Through innovative engineering and leading advances like as i-DSI engine and exclusive chassis platform.
The future takes form in The new HONDA CITY
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The NEW HONDA CITY provides spaciousness & functionality. Interior styling prioritizes the driver and is emphatically sporty and personal in its appeal.
The City unites a lower floor with a usually spacious cabin and luggage area.
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SAFETY:
Aiming for the world-class safety performance. Great peace of mind in a compact body.
HONDA'S original G-Force Control technology provides all- around protection in the event of and accident. This safety technology is designed to control and absorb collision impact, maintaining the structural integrity of the passenger space.
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Through relentless crash testing at various speeds and angles, the City supplies protection that meets the world’s strict governmental safety standards.
PERFORMANCE:
i – DSI Intelligence Dual & Sequential ignition
Dramatically efficient fuel economy. Greater driving range on the same amount of fuel. Plus plenty of torque whenever you need it.
HONDA'S unique new i-DSI engine uses two spark plugs per cylinder for maximum fuel efficiency. Leading friction reducing technology used in i-DSI engine provides ample power for enhanced Driving Pleasure.
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Honda City's novel transmission "Vario" allows smooth step less power transfer from the engine to the wheels to match the mood.
ENUINE PARTS
HONDA GENUINE PARTS:
But if you buy the HONDA genuine parts from HONDA DEALERS and enjoy 6 month's HONDA Warranty, contribute to the country’s economy and enjoy the satisfaction of using
100% genuine HONDA Parts
But if you buy the parts from open market; 1) Most probably you will be buying smuggled parts and thus committing a moral crime and robbing your country from precious revenue. 2) You will enjoy no warranty.
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3) You can never be sure about the genuineness of the parts you have purchased from the open market. By using Honda Genuine Parts; 1) You can increase the life of your car. 2) You can enjoy safe & satisfactory drive. 3) You can increase the resale value of the car. It is our aim to be No.1 in customer satisfaction in all three S, Sales, Service and Spare
Parts. Your help can go a long way to help achieve our goal.
For buying HONDA GENUINE ACCESSORIES please contact your nearest authorized HONDA Dealership.
Sugoi Parts Center has started on 2nd July, 2001 with the objective to provide the Genuine HONDA Spare Parts to our valuable customers.
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GENUINE PARTS
They’re part of the whole picture.
Only Genuine HONDA Parts are made to HONDA specifications to maintain the Quality, Reliability and Performance - Making them easy choice every time. • • • • When you install Genuine HONDA Parts you are getting a HONDA WARRANTY that you won't get anywhere else.
Genuine HONDA Parts maintain original operation specifications which can
keep your vehicle on the road longer and retain resale. Quality, Reliability and Performance attributes that have come to describe HONDA vehicle and also reflected in the Parts from which that are built. Each Genuine HONDA Part is precisely design and rigorously tested not only for it's individual performance but also it's interaction with the entire vehicle as well. This process helps ensure that each Genuine HONDA Part will function as its optimum.
•
HONDA MOTOR vehicles are equipped with many unique automotive system
which require special care to maintain their high levels of Performance and
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Reliability, that's why we have created a range of Genuine Fluids and
Lubricants specifically for your HONDA. Each of the Genuine Fluids and Lubricants is designed to perform a specific task, which is crucial to well being of
your HONDA. If it carries the HONDA Logo you can be assured of it is of superior quality.
PRICES OF PARTS & ACCESSORIES OF ONDA CIVIC:
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GENUINE BODY PARTS
Model Part Name
Front Bumper
99-00 2001~ 7,000 5,500
Price
(Pak Rupee)
Rear Bumper
99-00 2001~ 7,000 5,500
Head Light, Right / Left
99-00 2001 6,000 3,800
Back Light, Right / Left
99-00 2001 2003~ 3,000 2,200 2,800
Tail Light, Right / Left
99-00 2001 2003~ 2,500 2,200 2,800
Bonnet
99-00 2001~ 9,500 11,000
Mudguard (Fender) R/L
99-00 2001~ 7,000 4,500
Complete Trunk
99-00 2001~ 9,000 11,000
Mirror Assembly R/L
99-00 2001~ 4,500 5,000
Molding Front Windshield
99-00 2001~ 2,300 1,000
Base Front Grill
99-00 1,700
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PRICES OF MAINTANCE PARTS OF HONDA CIVIC:
GENUINE MAINTENANCE PARTS
Model Part Name
Oil Filter
99~ 150
Price
(Pak Rupee)
Air Filter
VTi 99-00 EXi 99-00 2001~ 700 450 450
Fuel Filter
99~ 1,300
Clutch Plate
99~ 2,500
Pressure Plate
99-00 EXi 2001~ VTi 2001~ 3,800 3,800 3,100
Timing Belt
99-00 2001~ 1,000 1,000
Timing Bearing
99-00 2001~ 1,200 1,600
Spark Plug
99~ 150
Front Disk Pads
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(4 Pieces, R/L) 99-00 2001~ 2,200 2,500
Rear Disk Pads
(4 Pieces, R/L) 99~ 2,200
Rear Break Shoe
(4 Pieces, R/L) 99-00 2001~ 1,600 1,200
Horn High / Low
99~ 600
Bonnet Cable
99-00 2001~ 700 300
PRICSE OF PARTS & ACCESSORIES OF HONDA CITY:
GENUINE BODY PARTS
Model Part Name
Front Bumper
97-99 2000~ 5,000 5,500
Price
(Pak Rupee)
Rear Bumper
97-99 2000~ 6,000 5,500
Head Light, Right / Left
97~ 3,800
Back Light, Right / Left
97~ 2,500
Bonnet
97-99 2000~ 10,500 9,000
Mirror Assembly R/L
EXi 97~ EXi-S 97~ 3,000 4,000
Molding Front Windshield
97~ 1,500
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Base Front Grill
97-99 2000~ 1,600 850
Molding Front Grill
97-99 2000~ 1,200 1,400
*Prices are effective from Oct 1st, 2002 to onward. All Prices are inclusive of Sales Tax.
PRICES OF MAINTENANCE PARTS OF HONDA CITY:
GENUINE MAINTENANCE PARTS
Model Part Name
Oil Filter
97~ 150
Price
(Pak Rupee)
Air Filter
97-99 2000~ 500 450
Fuel Filter
97-99 2000~ 300 1,300
Clutch Plate
97~ 3,000
Pressure Plate
97~ 3,600
Timing Belt
97~ 1,000
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Timing Bearing
99-99 2000~ 1,200 950
Spark Plug
97~ 150
Front Disk Pads
(4 Pieces, R/L) 97~ 2,200
Rear Break Shoe
(4 Pieces, R/L) 97~ 1,400
Horn High / Low
97~ 850
Bonnet Cable
97~ 140
Bonnet Rubber
97~ 850
Antenna
97~ 2,000
Steering G/Box Rack End
97-99 2000~ 2,100 1,500
Emblum Front Center
97-99 2000~ 220 150
SERVICE FACILITIES:
CUSTOMER SERVICE CENTERS:
All the authorized dealerships in Pakistan are a source of customer satisfaction. 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, 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 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.
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WARRANTY CONDITIONS & ADVANTAGES: WARRANTY PERIOD:
The warranty of the vehicle is valid for 12 months or 20,000 kilometers whichever comes first from the date vehicle is sold and is transferable.
WARRANTY COVERAGE:
HONDA ATLAS CARS warrants that it will repair or replace Free of Charge any part it supplies (excluding tires, batteries and other items which are warranted separately by their respective local manufacturers) found to be defective either in materials or workmanship, or both with the exceptions indicated in the Warranty Exclusions here under, provided that the manufacturer's recommended and required preventive maintenance services and repairs are strictly followed and the vehicle is utilized under normal condition. HONDA ATLAS CARS (PAKISTAN) LTD. (HACPL) reserves the sole rights to the final decision in all warranty matters.
WARRANTY EXCLUSIONS:
The Warranty shall not be applicable in the following cases,
•
Any damages which result from neglect of the periodic maintenance specified by HACPL. Any damage which results from repair or maintenance operations by methods other than those specified by HACPL. Any damage which results from use of non genuine parts, or of fuel, lubricant or fluid not recommended by HACPL. Any damage which results from operation other than as specified in the Owner's Manual, whether intentionally or by mistake. Any repair or adjustment performed by persons other than Dealer, or any damage resulting there from.
•
•
•
•
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•
The vehicle which is not registered with the competent government authority.
FEED BACK:
HACPL believe the essence of real service is when a customer feels proud to say "I am
glad to have bought a HONDA" -- mainly because of HACPL quality service. For
customers to become impressed with us HONDA need their continuous feedback to improve him selves for product and after sales service.
PRODUCT QUALITY:
HONDA ATLAS CARS LIMITED is quality conscious company. That’s why HONDA ATLAS CARS PAKISTAN LIMITED is the first automobile company in PAKISTAN who has achieved “ISO 9002” certificate.
PRODUCT DESIGN:
HONDA is a multinational company which operates in different countries. The models that are introduced in one country are exactly the same in other country. This is because the design and the technology used to make these cars are set by the Research & Development Department of HONDA JAPAN, which is the in of HONDA. Designing process is some through out in the world. In PAKISTAN only the assembling process is done 42% of the parts are manufactured locally and the remaining 52% parts are being import from JAPAN.
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“The amount of money charged for a product or a service, or the sum of values that consumers exchange for benefits of having or using the product.”
One of the four major elements of the marketing mix is price. Pricing is an important strategic tool because it is related to product positioning. Furthermore pricing affects other marketing mix elements such as product features, channel decisions and promotion. Pricing is highly important for an organization because it is the price which the consumers pay in the end to buy a particular product. So in order to draw money put of consumer’s pockets, effective pricing should be adopted.
PRICING APPROACHES USED BY HONDA:
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HONDA sets its prices based on two pricing approaches.
• Cost- Based Pricing • Competition-Based Pricing
COST-BASED PRICING:
This pricing approach suggests adding a standard mark up to the cost of the product. Price of HONDA CARS is fixed and are not negotiable, as they have been devised on certain rules of cost based pricing by HONDA INTERNATIONAL and HONDA PAKISTAN is supposed to adhere to those prices strictly.
COMPETITION- BASED PRICING:
It means rate pricing. HONDA sets the prices based largely on its competitor Toyota. So price settings by HONDA tend to react to the changes in prices of TOYOTA products.
DETAILS OF PRICES BY HONDA:
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HONDA offers its variants in different prices. Prices tend to change with the change in accessories supplemented with any particular model of HONDA CAR. Prices are dependent on the mode of purchase as well. Outright purchase and leasing have their respective effect on prices set by HONDA. Prices thus are characterized as:
LEASING PRICES:
We can define leasing as,
“Leasing is a financial instrument enabling the utilization of a given fixed asset without possessing its ownership.”
Major parties and some brief definitions in leasing are as follows;
LESSEE:
The party that purchases the usage rights of the equipment in leasing transactions against the rentals determined in advance with the contract, that is the buyer of the owner.
LESSOR:
The party that possesses the legal ownership of the equipment subject to leasing and that transfers the usage of the equipment to the Lessee against the rentals determined in advance with a contract that is the intermediary bank involved.
SUPPLIER:
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Manufacturer or marketing company providing the equipment subject to the leasing contract that is HONDA MOTORS.
DETERMINATION OF PRICE:
Price is the only element that produces revenue, all other channels present cost. A company’s pricing decision is effective by both internal and external factors.
STEP BY STEP PROCESS OF DETERMINING PRICE:
When we talk of determining the price, a step by step process is undertaken to set the price of any car by HONDA. We can elaborate on those steps as follows: 1. Develop marketing strategy- marketing analysis is performed, target market is established and product is positioned. 2. Make marketing mix decisions- the product, distribution and promotional tactics are determined. 3. Estimate the demand curve- quantity demanded variation with price is studied. 4. Calculate cost- all fixed and variable costs are accounted for. 5. Understand environmental factors- competitors and their competing products are evaluated and other legal conditions are taken into consideration. 6. Set pricing objectives- for example profit maximization, revenue maximization or price stabilization. 7. Determine pricing- using information collected in the above steps, a pricing method is selected and a pricing structure is developed. Currently for HONDA PAKISTAN all these steps are performed by JAPAN where the head office of HONDA lies.
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PRICING METHODS:
PRICING APPROACH
Cost Based
Buyer Based
Competition Based
Mark- up Pricing
Target Return Pricing
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PRICING OBJECTIVES:
HONDA’S pricing objectives are identified in order to determine the most favorable pricing. Common objectives include the following:
PRICING OBJECTIVES
PROFIR ORIENTED
SALES ORIENTED
STATUS-QUO ORIENTED
TARGET RETURN
MAXIM. PROFITS
MAX. SALES VOLUME
MAX. MARKET SHARE
STABILIZE SALES
MEET COMPETITION
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HONDA follows the objectives of:
Current profit maximization- seeks to maximize current profit, taking into account
revenues and costs. It seeks to achieve maximum profits and notable ratio of return on the capital employed.
Maximize Market Share- HONDA wants to maximize its market share in auto industry
and that is the goal followed by it while setting the price.
FACTORS AFFECTING THE PRICES OF HONDA CARS:
Certain factors affect the prices set by HONDA from time to time. These may include
• Changes in Yen Rate • Changes in prices by Toyota • Increase or decrease in demand- leading to unstable prices in the market
CHANGES IN YEN RATE:
As the Indus motor company is the subsidiary of HONDA MOTOR CORPORATION JAPAN and prices are negotiated and settled with the consultation of the parent company, so they are settled in terms of Japanese currency Yen and then converted into Pakistani Rupee. So whenever there is a fluctuation in the rate of Yen, the prices of HONDA vehicles change. Institute of Business Administration 73
The parts of the cars are brought from JAPAN to assemble cars here in PAKISTAN so the change in rate of Yen affects the cost of these parts and thus the price of the car tends to react to that.
CHANGES IN PRICES BY TOYOTA:
TOYOTA is the major competitor of HONDA. The change in marketing strategies by TOYOTA in every dimension forces HONDA to react. One major reaction towards changes is the reaction towards changes in prices by TOYOTA. HONDA and TOYOTA are thus seen in price related actions and reactions from time to time.
INCREASE OR DECREASE IN DEMAND:
The demands of cars of HONDA tend to remain unfulfilled in comparison with the supply of the vehicles. This leads to the unstable prices in market. Prices are announced by company management and they are supposed to be fixed and non- negotiable unless done so by the HONDA itself. Yet when we go to the market to buy a HONDA CAR, the situation is entirely different. We find that prices in the market tend to fluctuate and grow unstable with the change in demand of consumers. The consumers buying directly from the authorized dealers of HONDA get the car delivered to them in 6 months of time after the order processing and payment of the amount. The consumers who want the car immediately or on a short notice are not able to get the car from the authorized dealers of HONDA so that they are forced to get the car at a price higher than the company rate. This can be called in market terms as Premium on prices or ON for the cars. The premium on HONDA CARS has become an uncontrollable variable these days. HONDA has tried every possible means to put an end to this market disturbing factor by activating a Registration Law, demanding more information from the buyer and finally the imposition on National Tax Number (NTN).But all these efforts seem to go down the drain so far and the prices of HONDA vehicles seem to fluctuate largely in the market and cars are
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being sold in the market on premium of more than Rs.100000 to Rs.2000000 above the original company price.
TERMS AND CONDITIONS OF PRICES BY HONDA:
There are few terms and conditions which need to be known while studying the pricing procedure of HONDA. Consumers also need to know these conditions as these conditions directly affect their purchase dealing with HONDA. These conditions can be elaborated as follows:
• RIGHT OF CHANGING PRICES:
HONDA reserves the right of changing the prices of its vehicles at any time without any prior notice to its customers.
• CHANGES IN PRICE AFFECTS CURRENT ORDERS:
HONDA makes the transaction of sale of its cars under the condition that any change in price at any time would affect the transaction as well. That is, the orders which are already executed and payment is already made by the buyer and the delivery of the car is yet to be done and prices change meanwhile the buyer is bound to pay the excess amount if the price has increased or if the price has decreased he would be refunded the excess amount.
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• INTEREST PAID BY HONDA ON THE AMOUNT:
HONDA facilitates its buyers when it pays the purchase price amount to HONDA and waits 6 months to get the car. This can be perceived as a static amount of money as he hasn’t yet received the car and money is his but he cannot use it. The buyer could have invested it somewhere and earn a return on it. So HONDA offers interest payment on this amount after 2 months, from the 61st day, on the current bank rate for the next 4 months so buyer is facilitated.
• NO RIGHT OF OBJECTION ON PRICES TO THE BUYER:
The buyer has not been given any right to object on the pricing policies, payment schedule and fluctuations in prices of HONDA. The buyer has to accept all the terms and conditions
“as is, given and stated by HONDA”
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PLACE:
“A distribution channel is the set of people and firms involved in the transfer of title from producer to ultimate consumer or business user. While placing the product the management has to face the many critic marketing decisions. A company’s channel decision directly effects every other marketing decision. For the development of the organization, proper marketing channel is very necessary.”
OR
Place is the making available of products in quantity desired to as many customers as possible and to hold the total inventory, transportation and storage costs as low as possible. It includes selection. Coordination and evaluation of channels; transportation; warehousing; and inventory control.HONDA sees its distribution system as a key resource. Since it takes years to build, and it is not easy to change. HONDA’S corporate philosophy revolves around customer satisfaction which is symbolized in the dealer’s concept:
• Sales • Services • Spare Parts
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CHANNELS:
Honda uses one level channel for selling its cars. This is done mainly through the dealers that are of two types:
2-S 3-S
2-S Dealers:
These kinds of dealers provide only service and spare parts of HONDA.
3-S Dealers:
These dealers in addition to services and spare parts also offer cars for sale. Their are 18 authorized 3-S dealers all over Pakistan.
LOCATION:
Generally, where 3-S dealers are located 2-S dealers are not designated for that area .It is only in Lahore that there are both kind of dealer’s .The 3-S dealer is located in Garden Town where as the2-S dealer is located in Defense Housing Society. The reason for 2-S dealers arises because in certain smaller cities like Multan, Faisalabad, Peshawar, Larkana, Sargodha etc there are no centers providing such mechanical and technical services. So this has kind of negative effect on the sales of the company.
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DISTRIBUTION CHANNEL USED BY HONDA:
The distribution channel used by HONDA is an Indirect Marketing Channel. It is the marketing channel having one or more intermediaries is called indirect marketing channel. There is no mark up pricing by the authorized dealers. HONDA sells cars to its customers by using by the following indirect channel. All the authorized dealers and their outlets are well established in the immediate vicinity of the target market segments and particularly in the niches of the interest of the company.
INDIRECT MARKETING CHANNEL OF HONDA:
HONDA ASSEMBLING UNIT
HONDA’S AURTHORIZED DEALERS
FINAL CONSUMER
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CHANNEL FUNCTIONS AND FLOWS:
The channel composed of corporate authorized dealers is aimed at performing the following key functions. • • • • • • Development and dissemination of persuasive communications in order to stimulate purchasing. Reach agreement on price. Place production requisitions, based on the orders, with the factory. They provide for buyer’s payment of bill through banks. They assumed risk connected with carrying out channel work. They gather information about potential and current customers, competitors and the other forces in the marketing environment.
CHANNEL FLOWS:
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The five channel flows are commonly used.
Channels Flows Physical flow Title flow Payment flow Information flow Promotion flow
Practicing in HONDA Yes Yes Yes Yes Yes
CUSTOMER CONVENIENCE STRATEGIES:
HONDA has evolved some customer convenience strategies like: • • Showroom visit facility for potential buyers: HONDA arranges to give opportunity to feel and experience the car at their showrooms. Complimenting the cars sales, sale of spare parts and auto-servicing are a part of the authorized dealer’s outlet.
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CHANNEL MANAGEMENT DECISIONS:
As explained earlier the distribution for HONDA vehicles is corporate authorized so in order to keep a check on the efficiency of the channel the company has the following authorities to exercise and keep the process in track with the organizational objective. HONDA reserves the right to withdraw a resource or terminate a relationship if any component of the channel is not working efficiently. It gives extra benefits to distributors and particularly its sales personnel if their performance is notably excellent.
DEALERSHIP NETWORK:
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3S Dealership (Sales, Service, Spare Parts)
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2S Dealership (Service, Spare Parts)
Honda Atlas Cars (Pakistan) Limited has Dealership Network covering all of Pakistan, and Dealership are equipped with all the facilities a modern dealership should have. The facilities include Sale, Service and Spare parts.
DETAILS OF 3-S DEALERS:
The 3-S dealers are present in different cities. Faisalabad Gujranwala Hyderabad Islamabad Honda Faisalabad (Main Canal Bank Road) Honda Gujranwala (G. T. Road) Honda Palace (Shahbaz Town, Jamshoro Road) Honda Classic (Plot 179, I 10/3, Industrial Area) Honda Classic Lounge (Pak Plaza, Blue Area 1019 Fazal Haq Rd) Honda Defence (67/1, Korangi Road, Near HINO Circle) Honda Drive-In (118-C, Rashid Minhas Road) Karachi Honda Quaideen (2, 33-A-2, PECHS) Honda Sharah-e-Faisal (13, Banglore Town, Sharah-e-Faisal) Honda S. I. T. E. (C-1, Main Manghopir Road) Honda South (1B, Sector 23, Korangi) Honda City Sales (75B, Block L, Ferozpur Road Gulberg III) Institute of Business Administration 84
Lahore
Honda Fort (32 Queen’s Road) Honda Fort Lounge (169Y, Commercial Area, Defence)
Mirpur A. K.
Honda Empire (Mian Muhammed Road, Quaid-e-Azam Chowk, Mirpur Azad Kashmir)
Multan Peshawar Sialkot
Honda Breeze (63, Abdali Road) Honda North (Main University Road) Honda Falcon (112, Azia Shaheed Road)
DETAILS OF 2-S DEALERS:
The 2-S dealers present in different cities. Following are names of these cities. • • • • • • • • • • • • Abbottabad Bahalwalpur Burewala Faisalabad Karachi Azad Kashmir Islamabad Khanewal Gujrat Lahore Mardan Okara
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• • • • • •
Rahim Yar Khan Rawalpindi Sahiwal Sargodha Sukkar Vehari
TRANSPORTATION:
The company does not own trucks so it signs contracts with transport companies for the delivery of cars. Normally the cars are driven to Lahore but sometimes they are transported through trailers. The company charges different prices for the delivery of its cars keeping in view the distance of the place from the factory. The rate list is as follows:
DESTINATIO N
LAHORE FAISALABAD GUJRAWALA SIALKOT ISLAMABAD PESHAWAR MULTAN MIRPUR (AZAD KASHMIR) KARACHI HYDERABAD
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1500 3200 3200 3200 4500 5500 4200 4500
6000 5500
86
INVENTORY:
The level of inventory at any outlet is up to the dealer and it is he, who has to decide about the number of cars present in the showroom. This decision is based on a number of factors such as sales, location and distance from the factory. Normally there are 15-20 cars always present in the stock of the dealer.
WAREHOUSES:
The company itself doesn’t own any warehouses; the cars are kept in the factory. It is the dealers who own warehouses and they have to decide the number of warehouses required based on the inventory of the stock.
MARKET SHARE:
Market share means the number of shares a company has in its market as compared to its competitors. HONDA ATLAS CARS PAKISTAN LIMITED covers a large number of shares in Pakistani market.
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OVERALL MARKET SHARE:
If we consider only the market share of HONDA with its main competitor TOYOTA and others, the market share is as follows:
COMPANY NAME HONDA TOYOTA OTHERS
MARKET SHARE 45%-50% 30%-35% 20%-25%
This market share is for the cars, which are above 1300 cc. But if we consider only the petrol cars, then according to the recent survey, the share of HONDA is greater than 80%. Others company like SUZUKI, NISSAN, HYUNDAI and KIA they constitute the 20% of the market share. But they are below 1300 cc.
BEST SELLING SPOT:
Best selling spot for HONDA CARS is Karachi. The overall percentages of market share of HONDA in different cities are as follows:
City Name Karachi Lahore Islamabad Multan, Faislabad, Sialkot, Hyderabad
Market Share 48% 38% 18%-20% 7%-8%
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Lahore is the second best selling spot for the HONDA. Low share in other cities like Multan, Faislabad is because low class resides in these cities. The target market of HONDA is upper class, that’s why the share is high in big cities and low in small cities.
COMPETITORS:
HONDA is currently facing the three biggest competitors in its class. They compete with HONDA because of their successful product in the market before the commencement of HONDA ATLAS in PAKISTAN. These three main competitors are
TOYOTA NISSAN SUZUKI
1.TOYATA:
TOYOTA is considered to be the main competitor of HONDA because it is only one company, which has enough market shares that will directly influence the share of HONDA. This is because of the fact that TOYOTA has been manufacturing cars much before HONDA in PAKISTAN and the cars they have been manufacturing since 1993 are much environmental friendly than any other car manufactured in PAKISTAN, before. Firstly TOYOTA introduced GLi in both transmission categories i.e. manual and automatic. This category car having 1600 horse power is the direct competitor of HONDA CIVIC not only in the technique but also in luxury that they provide and the other facilities and add-ons. In 1.3 liter car’s TOYOTA can be considered as the market leader before, as it is producing three different models in this category i.e. GL, XE and XEG. But now with the introduction
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of new HONDA CITY 2000, TOYOTA is no longer a leader in the market because of the Luxury and style provided by the HONDA CITY 2000.
2.NISSAN:
NISSAN is not a direct competitor of HONDA because this company produces 1.4 liter and 2.0 liter fuel & Diesel cars respectively. But because of the big giants like TOYOTA and HONDA in the market this company cannot compete in the market and loses its share. But now few months back they launched their new models in the market at low prices as compared to HONDA and TOYOTA.
3.SUZUKI:
SUZUKI introduced its 1.6-liter car a few years back with the name of Baleno. They introduced two models GLi and GXi in the market having fuel injection system in the category of 1.3 liter in competition with HONDA CITY. But HONDA has no fear of them because of the fact that, HONDA is already the market leader in 1.6-liter class & 1.3 liter class. According to the recent survey the graph of Baleno 1.6 & 1.3 is continuously declining because of their competitors like TOYOTA and HONDA.
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Promotion is one of the four P’s of marketing mix. Simply stated, promotion is intended to make a product more attractive to the prospective buyer. A company uses promotion to provide information for the decision maker’s buying decision process, to assist in differentiating its products, and to persuade potential buyers. From a marketer’s perspective, promotion serves three essential roles
It informs Persuade and Remind prospective buyers about the company and its products. Promotion is key ingredient in the product success consists of a diverse collection of incentive tools, mostly short terms, designed to stimulate quicker and greater purchase of products or services by consumer or the trade. Through promotional activities, consumer gets all available products in the market.
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PROMOTION MIX:
An effective promotional mix is the critical part of virtually all marketing strategies. Designing an effective promotional involves a number of strategic decisions as target audience, objectives of company’s promotion effort, nature of the product, stages in the product lifecycle and amount of money available for promotion. So, the promotion mix is the organization’s combination of the following elements which help the company to achieve its marketing objectives.
Sales force Sales promotion Advertisement Public relations Direct marketing
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THE COMMUNICATION MIX:
The promotion mix of the company is also called the communication mix. In front of HONDA ATLAS CARS there is a new view of communications as an interactive dialogue between the company and its customers that takes place preselling, selling, consuming and post-consuming stages. In deciding of the marketing communication mix, marketers at HONDA must examine the distinct advantages and cost of each promotional tools and the company’s market rank. They must also consider the type of the product market in which they are selling, how ready consumers are to make a purchase, and the product stage in the product life cycle. Measuring the marketing communications mix’s effectiveness involve asking members of the target audience whether they recognize or recall the message, how many messages, and their previous and current attitudes toward the product and the company.
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PROMOTION STRATEGIES OF HONDA:
PUSH STRATEGY:
The HONDA MOTOR COMPANY is using the promotion program aimed primarily at middleman. In HONDA the product is push through the channel. The HONDA MOTOR COMPANY heavily promotes the distributors among different countries in order to facilitate the customer.
STRATEGY IMPLEMENTATION:
HONDA MOTOR COMPANY LIMITED JAPAN
HONDA ATLAS CARS (PAKISTAN) LTD. DISTRIBUTOR NETWORK END CONSUMER
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PROMOTION METHODS:
In HONDA, all methods as sales promotion, advertising, public relations, and direct marketing are used to influence the customer choices.
PROMOTION OBJECTIVES:
The promotional efforts of the HONDA ATLAS CARS are aimed to induce the customer to buy the product. At first the awareness in the shape of the knowledge about the product features and facilities is to be provided. Then the customer liking is developed. Preference is created by distinguishing among other brands through the astonishing features of the automobiles. Resultantly, strong conviction leads the buyer to purchase the product.
PROMOTION BUDGET:
Establishing promotional budget is extremely challenging job. In HONDA ATLAS CARS the promotional budget is determined as 25-30% of sales. Dealers or Distributors are also determined their own promotional budgets (particularly at their outlets) for the promotion of the company, its product and the outlet as well.
REGULARIZED PROMOTION:
The HONDA ATLAS CARS is doing its promotional activities with the help of 18 authorized dealers all over the country. The dealers are independently working in their own set ups but they are following the company’s policies and strategies.
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SALES FORCE AT HONDA:
The sales representatives are the company to many of its customers. It is the sales reps that bring back much needed information about the customer. Therefore the company needs to carefully consider issues in sales force design. The sales force is regularly trained and different training programs are arranged for them here in PAKISTAN. Whereas for some highly specialized staff, training programs are arranged in JAPAN. Their sales force training is conducted on “FABE”.
F= feature A=advantage B=benefit E=evidence
The sales force personnel have to tell the prospective buyers that what are the features of the product they are offering, what are the advantages and benefits its offering and finally present evidence of the claims?
STRATEGIES AND OBJECTIVES:
HONDA’S corporate philosophy revolves around customer satisfaction, which is symbolized in the 3-s concept. HONDA is the pioneer in the 3-s system, which offers sales, services and spare parts all from the same facility. So taking into account the 3-s concept the human resource department recruits the sales force and trains them according to the specifications. The responsibilities and the targets are assigned them on order to be fulfilled .In case if the performance standards are not met then the workers are to be fired. The important tasks, which performed by the sales force for the AGC, are as follows:
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Communicating Selling Servicing Information gathering Allocating
The sales managers form promotion policies and advise the sales force according to it. The order taker takes the provisional booking orders. These provisional booking orders numbers are assigned to the customers to ensure the delivery of the products at the promised right time to the right customer.
SALES FORCE TRAINING:
The training sessions, courses, papers and presentations are arranged in which the new sales techniques are introduced to enhance the knowledge of the employees in order to make them familiar with the contemporary happenings. The company trains the dealers each month. The lectures are held in Lahore and Karachi; the dealers from Singh and Baluchistan attend lectures in Karachi whereas dealers from Punjab and Peshawar are trained in Lahore. HONDA also organizes competitions among the dealers to measure their performances. A new technique offered in JAPAN and the managers were invited to learn more.
SALES FORCE STRUCTURE:
The sales force strategy at HONDA has implications for the sales force structure. The company comprise of three types of sales force structures:
A strategic market sales force composed of technical, applications and quality engineers and service personnel assigned to major accounts.
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A distributor’s sales force calling on and coaching HONDA distributors. An inside force doing telemarketing and taking orders via phone and fax.
THE STRUCTURE OF HONDA’S SALES DEPARTMENT:
Sales Manager
Deputy Sales Manager
Assistant Sales Manager
Manager Corporate Sales
Sales Executive
Correspondents of Leasing Companies
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SALES PROMOTION:
Sales promotion is considered as
“Incentive to buy”
And can be described as
“It is a verity of short term incentives to encourage trial or purchase of a product or service.”
Sales promotion is a key ingredient in HONDA’S marketing campaigns. As it consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of products by customers.
BENEFITS OF SALES PROMOTION:
There are three benefits, which the HONDA ATLAS CARS derives from the use of the sales promotional tools.
1. Communication 2. Incentives 3. Invitation
MAJOR CONSUMER PROMOTIONAL TOOLS:
In HONDA major promotional tools are as follows:
Product warranties Point of purchase displays and demonstrations Adequacy of repair facility
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Customer service follow ups Service packages for customers Events related to customer prizes Free check-up campaigns on regular basis
The warranty is normally given for one year or on 20,000 kilometers drive, which comes earlier. This warranty is based on the parts replacement. The demonstrations are also given to the customer in order to aware about the product’s exclusive features.
ADVERTISING:
Advertising means
“Reasons to buy”
And can be described as:
“Advertising is non personal presentation and promotion of ideas, goods or services by an identified sponsor.”
The marketing department of the distributors holds HONDA’S advertising. Every distributor is responsible for its own advertising program.Advertising plays a very significant role in the promotion of new product. It’s usually more attractive then the other promotional campaigns. There are different forms of advertisements that a company performs according to the nature of the target market. The purpose of advertising is to introduce the customer by the new product and to give the information about the existing product.
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FEATURES OF ADVERTISING:
The features of HONDA’S advertising are as follows:
1. Public presentations (advertising’s public nature confers a kind of legitimacy on
the product and also suggest the standardized offerings)
2. Pervasiveness (permits the sellers to repeat a message many times) 3. Amplified expressions (advertising provides opportunities for dramatizing the
company and its products through the artful use of print, sound and color.)
4. Impersonality (the audience does not feel obligated to pay attention or respond to
advertising.)
FIVE M’s OF ADVERTISING:
The marketing force at HONDA make the five major decisions about the advertising program which they want to develop and execute in order to make familiar the customer with the company’s product.These major five decisions are called as five M’s of advertising.
Mission Money Message Media Measurement
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MISSION:
The advertising mission normally comprises of the sales and advertising objectives.
“An advertising goal is a specific communication task and achievement level to be accomplished with the specific audience in a specific period of time.”
HONDA’S ADVERTISING MISSION:
The company’s advertising mission is stated as follows:
“Focusing on the “satisfaction” (customers, associates and the 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.”
This is based upon the company’s policy that whether the company wants to inform, persuade, remind or reinforce the customer about its products.
MONEY:
The authorized dealers of HONDA spend almost 10% of their sales for the advertising of their outlets, product of the company and the company itself.
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STAGE IN PRODUCT LIFE CYCLE:
This budgeting is based upon the stage in the product life cycle as the ATLAS COMPANY’S products like HONDA is in the stage of early maturity so the distributors are spending this much amount of sales money for the advertising purposes.
MARKET SHARE AND CONSUMER BASE:
As high market share brands usually require less advertising expenditure as a percentage of sales to maintain share. On a cost per impression basis, it is less expensive to reach consumers of a widely used brand than to reach consumer of low share brand. HONDA has already gained a market share of 48%.
MESSAGE:
Another important aspect of advertising is message communication for which an advertising agency puts all its efforts. The procedure of message communication is completed through several different steps.
DEVELOPMENT OF A CREATIVE STRATEGY:
Steps followed:
1. Message generation 2. Message evaluation and selection 3. Message execution 4. Social responsibility review
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STEP 1(Message Generation):
The advertising agency uses a deductive framework for generating advertising messages. This agency decides the number of alternative ad themes to be created before making a choice. The more ads that are independently created, the higher the probability of finding an excellent one. The more time spend by the advertising agency tends towards higher costs.To cut down the costs the ad agency prepares the feasibility report through market research in which the company’s expenditure and consumer responses are analyzed.
STEP 2(Message Evaluation And Selection):
Messages can be rated on desirability, exclusiveness and believability. The ads agency after finding an effective appeal prepares a “creative brief.”It is an elaboration of the positioning statement and includes key message, target audience, communication objectives, benefits to promise and the media to be used.
OBJECTIVES OF AN EFFECTIVE MESSAGE:
To do To know To believe
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STEP 3(Message Execution):
The message’s impact is not only depends upon what is said but often more important on how it is to be said. Effective ads are positioned in two ways:
EFFECTIVE POSITIONING
Rational Positioning
Emotional Positioning
These both two methods of positioning are used for executing messages by the ads agency, which works for the HONDA ATLAS CARS.
STEP 4(Social Responsibility Review):
The HONDA ATLAS CARS are ensuring the safe promotion of its product through their advertising agency and assuring not to harm social and legal norms.
MEDIA SELECTION:
The media planner in the company uses both the electronic and print Medias in order to communicate the promotion message to the prospects. No yellow journalism is there. According to the different surveys this method has quite good effects on the sales of HONDA. Now-a-days company uses all these Medias for the promotional purposes by time to time.
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The following Medias are covered under the pre-described two categories:
TYPES OF MEDIA
Electronic Media
Print Media
Electronic media includes:
Television Direct mail Internet
Print media includes:
Newspaper Magazine Brochures Newsletters
COMMUNICATION MEDIUM:
The media preferred by HONDA is news papers especially the English one. This is due to the fact that mostly the buyers are not PTV watchers .It does not advertise on satellite, as the advertising cost is much too high, they would prefer to cut down the prices instead of spending millions of rupees on ads. At one time they used to advertise on prime time. The timings were 7:40 pm & 9:40 pm because maximum people are watching television at these times.
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MEASUREMENT AND EVALUATION OF EFFECTIVE ADVERTISING:
The company makes both the communication effects research and sales effect research in order to determine the message’s impact. The most important measure of the company’s effective message evaluation is CONSUMER FEED BACK. The questions which are asked by the company are as follows:
1. What is the main message you get from this ad? 2. What do you think they want you to know, believe or do? 3. What works well in the ad and what works poorly?
4. How does the ad make you feel?
5. How likely is it that this ad will influence you to undertake the implied action?
HONDA’S ADVERTISING MESSAGE:
“THE POWER OF DREAMS”
Or
“REALIZING YOUR DREAMS”
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PUBLIC RELATIONS:
Public relation involves
“A variety of programs designed to promote or protect a company’s image or its individual products.”
At HONDA the PR department monitors the attitude of the organization’s public relations and distributes information to build good will. The PR departments spend time counseling top management to adopt positive programs and to eliminate questionable practices so that negative publicity does not arise in the first place. The PR department established by the distributors receives complaints from the customers and then these complaints are transferred to the HAC head office so that suitable actions are taken by the company in order to resolve customer’s problems. HONDA ATLAS is engaged in different programs to promote the sales through public relations. For public relations they participate in different types of programs to increase the interest of public and to introduce their now product via these promotional campaigns.
FEATURES OF PUBLIC RELATION:
The appeal of public relation is based on three distinctive qualities:
1. High credibility 2. Ability to catch buyers off guard 3. Dramatization
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FUNCTIONS PERFORMED BY PUBLIC RELATION (PR) DEPARTMENT AT HONDA:
They perform the following functions:
Corporate communication Press relation Product publicity Counseling
MAJOR TOOLS IN PR:
The major tools which are used in establishing public relations as follows
TOOLS IN PR
Newsletters
Annual Report
In this regard they are also following the strategies of Relationship Marketing. It can be described as:
“Building mutually satisfying long term relations with key parties”
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DIRECT MARKETING:
Direct marketing is the consumer direct channel to reach and deliver goods and services to consumer without using marketing middlemen. These channels include direct mail, websites, catalogs, interactive TV and mobile devices. The HONDA ATLAS CARS is using all the astonishing elements of this fastest growing avenue of consumer servicing. The company seeks the measurable response; typically a consumer’s order that why this is some times called direct-order marketing.
DISTINCTIVE CHARACTERISTICS OF DIRECT MARKETING:
HAC shares four distinctive features of direct marketing:
1. Nonpublic (the message is normally addressed to a specific person.) 2. Customized (the message can be prepared to appeal to the addressed individual) 3. Up-to-date (a message can be prepared very quickly) 4. Interactive (the message can be changed depending on the person’s response)
CHANNELS OF DIRECT MARKETING ADOPTED BY HONDA:
1. Direct mail 2. Websites 3. Catalog marketing
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DIRECT MAIL:
The company involves in direct mail marketing i-e sending an offer, announcement, reminder or other item to the consumer through fax mail, e-mails, and voice mail.
WEBSITES:
The websites of the company are also used in enhancing the customer’s view about the product, as the complete information of features and facilities is available on the Internet. One of the websites is as follows: www.honda.com.pk It is regularly updated and maintained according to the specification.
CATALOG MARKETING:
In this regard the company sends full line product catalogs usually in print form but also sometimes as CD’s, videos or online.
EVENTS:
Different events are arranged from time to time for the promotion of sales of HONDA CARS. Like in FEBRUARY 2003 a basant festival had been arranged on the rooftop of PEARL CONTINENTAL, where they provided all the beverages, kites, food etc. It was such a success that in the month of MAY it was booked by the counterparts of HONDA for the next basant. A rally from Islamabad to Bhurban was also arranged by HONDA in which any car of 1300cc and above (only HONDA) was allowed to participate. The idea behind this rally was to promote the safety of motorists. The theme of the rally was “wear seat belts---your
family loves you”. Fashion shows are also held from time to time for the promotion of
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HONDA. All these are the “Model Launch Event” and the “Brand Building
Event”.
ANNUAL SURVEYS:
HONDA ATLAS CARS PAKISTAN LIMITED arranges the annual surveys in which different activities are done:
1. Customer Satisfaction 2. Market Share 3. Customer Choice a. Reading Habits b. TV Watching Habits 4. Brand Survey 5. Social Group 6. Education Level 7. Market Trend
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FINANCIAL ANALYSIS: BALANCE SHEET:
AS AT MARCH 31, 2005 2005 Rupees EQUITY AND LIABILITIES: SHARE CAPITAL AND RESERVES:
Capital Authorized 75,000,000 Ordinary shares of Rs.10 each Issued, subscribed and paid up Reserves Unappropriated profit 750,000,000 420,000,000 1,579,500,000 94,914,000 2,094,414,000 750,000,000 420,000,000 1,512,000,000 178,735,000 2,110,735,000
2004 Rupees
LONG-TERM Liabilities:
Staff Retirement Benefits -
CURRENT LIABILITIES:
Finances under mark-up arrangements-secured Creditors, accrued and other Liabilities Dividends 9,693,653,000 4,716,000 9,698,369,000 4,884,388,000 4,037,000 4,888,425,000
CONTIGENCIES AND COMMITMENTS: 11,792,783,00 6,999,160,000 0
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2005 Rupees ASSETS: FIXED CAPITAL EXPENDITURE:
Property, Plant and Equipment Intangible Assets Capital Work-in-progress 649,244,000 15,927,000 665,171,000 28,832,000 694,003,000 758,419,000 36,060,000 17,814,000 812,293,000 22,878,000 3,159,153,000 1,230,469,000 5,873,987,000 10,286,487,000
2004 Rupees
492,329,000 33,656,000 525,985,000 73,685,000 599,670,000 750,000 25,229,000 44,604,000 70,583,000 19,546,000 1,708,539,000 1,085,913,000 3,514,909,000 6,328,907,000
OTHER LONG TERM ASSETS:
Long Term Investments
Long Term Loans and Deposits Deferred Tax Assets
CURRENT ASSETS:
Stores and Spares Stock-in-trade Trade Debts Loans, Advances, Deposits, Prepayments and other Receivables Cash and Bank Balances
11,792,783,00 0
6,999,160,000
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PROFIT AND LOSS ACCOUNT:
FOR THE YEAR ENDED MARCH 31, 2005
2005 Rupees
Sales Cost of Goods Sold 16,587,217,000 16,304,182,000 199,495,000 197,190,000 280,730,000 16,145,000 264,585,000 5,956,000
2004 Rupees
9,358,369,000 8,602,391,000 160,968,000 73,083,000 668,093,000 45,612,000 622,481,000 2,288,000
Gross Profit
Administration and Selling expenses
283,035,000 755,978,000 83,540,000 595,010,000
Operating Profit
Other Operating Income Other Operating Expense Finance Cost
Profit before taxation
Taxation
258,629,000 620,193,000
96,450,000 3.86 211,510,000 9.73
Profit after taxation
Earnings per share-basic and diluted (rupees)
162,179,000 408,683,000
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CASH FLOW STATEMENT:
FOR THE YEAR ENDED MARCH 31, 2005 2005 Rupees
Cash flow from operating activities
Cash generated from operations Financial charges paid Long term deposit Income tax paid Staff gratuity paid 3,893,225,000 (5,960,000) (784,000) (155,142,000) (5,110,000) 3,097,056,000 (2,280,000) 100,000 (316,122,000) (4,014,000)
2004 Rupees
Net cash Inflow from operating activities
Cash flow from investing activities
Fixed capital expenditure – tangible Fixed capital expenditure – intangible Sale proceeds of fixed assets Interest received
3,468,976,00 2,638,566,000 0
(269,233,000) (3,282,000) 8,213,000 84,337,000 (243,361,000) (22,684,000) 1,921,000 47,323,000
Net cash Outflow from investing activities
Cash flow from financing activities
Dividend paid
(932,077,000) (240,473,000)
(177,821,000) (146,160,000)
Net cash (Outflow) from financing activities Net Increase in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year
(177,821,000) (146,160,000) 2,359,078,00 2,251,933,000 0 3,514,909,00 1,262,976,000 0 5,873,987,00 3,514,909,000 0
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SWOT ANALYSIS:
SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. It is applicable to either the corporate level or the business unit level and frequently appears in marketing plans. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. The SWOT framework was described in the late 1960’s by Edmund P. Learned, C. Roland Christiansen and William D. Guth in business policy. The general electric growth council used this form of analysis in the 1980’s. Because it concentrates on the issues that potentially have the most impact, the SWOT analysis is useful when a limited amount is available to address a complex strategic situation.
STRENGTHS:
• • • • The image of the company is well established. HONDA is offering comfort, power and style with its vehicle. It delivers the genuine parts with the 6 month unique warranty. It uses latest technology and luxurious interior in the vehicles.
WEAKNESESS:
• The booking procedure is too long, as it takes done 6 months to get the orders delivered. • If the cars are required at a short notice then the distributors or the intermediaries involved take a considerable amount of premium on the actual price.
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OPPORTUNITIES:
• • The HONDA Company can expand the network of its distributors all over Pakistan. The company can enhanced its image at international level through the provision of more sophisticated facilities in their product. • Through the annual dinners and other ceremonies arranged by the company the distributors are able to interact their more and more prospective customers.
THREATS:
• A threat is in the form of premium which the distributor are taking from the customers and thus disturbing credibility of Honda about stability of prices. • The economic environment is characterized by more uncertainty and it respond more to the international scenarios.
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PEST ANALYSIS:
A Pest analysis is an analysis of the external macro-environment that affects all firms.
“P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment.”
Such external factors usually are beyond the firm’s control and sometimes present themselves as threats. For this reason, some way that “PEST” is an appropriate term for these factors. However, a change in the external environment also creates new opportunities and the letters sometimes are rearranged to construct the more optimistic term of step analysis.
POLITICAL ANALYSIS:
POLITICAL STABILITY:
The political stability in the past years has been below the desired level. The developmental policies formulated by one government are replaced by the next government before they are implemented.
TRADE REGULATIONS AND TARIFFS:
There have been quotas, tariffs and high restrictions on the foreign trade. With effect from January 2005 the trade is expected to grow very rapidly.
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ECONOMIC ANALYSIS:
TYPE OF ECONOMIC SYSTEM IN THE COUNTRIES OF OPERATIONS:
There is a mixed economic system prevailing in PAKISTAN.
GOVERNMENT INTERVENTION IN THE FREE MARKET:
Government is intervening only in a limited industries and the remaining are run under the free market mechanism.
EFFICIENCY OF FINANCIAL MARKETS:
The efficiency of the financial markets is improving over the last two decades and is believed to improve much fast in next few years.
BUSINESS CYCLE STAGE:
Business cycle stage in PAKISTAN is the mirror reflection of that in other advanced countries like USA. After the 9-11 crisis there was a recession in USA which started spreading its effects on Pakistan also just in the hours. So the business cycle stage is recession.
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ECONOMIC GROWTH RATE:
The growth rate according to the federal bureau of statistics can be viewed by measuring GDP growth. The GDP growth was 6%.
SOCIAL ANALYSIS:
DEMOGRAPHICS:
The official sources say that the population of Pakistan is growing at the rate of 2.1% per annum and the population for the year 2003 is estimated to be 149 million.
HEALTH:
The present health infrastructure with 906 hospitals. The availability of 101.6 thousand doctors 98.204 thousands hospitals beds in the country which in term of population-doctor ratio works out to be 1466 persons per doctor and 1517 persons per hospital bed so much more efforts need to done to improve health care and preventive services.
TECHNOLOGICAL ANALYSIS:
RECENT TECHNOLOGICAL DEVELOPMENTS:
The government is according higher priority to the information technology (IT) sector. Core IT policy strategies have been proposed for many focus areas.
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TECHNOLOGY’S IMPACT ON PRODUCT OFFERING:
As the technology is changing the buying behavior of the prospects changes and also the changes in the product mix and promotion mix take place. We can say that the number of macro-environmental factors is practically infinite. In practical terms, HONDA must prioritize and scrutinize those factors that influence its industry. Even so, it may be difficult to conjecture future trends with an acceptable level of accuracy. In this regard, HONDA may turn to various techniques to deal with high levels of uncertainty in the important macro-environmental variables.
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OVER VIEW AND SUMMARY OF THE HONDA ATLAS CARS PAKISTAN LIMITED:
HONDA ATLAS CARS COMPANY is a joint venture between HONDA MOTOR COMPANY JAPAN and ATLAS GROUP OF COMPANIES PAKISTAN LIMITED. In HONDA ATLAS CARS COMPANY PAKISTAN, HONDA MOTOR COMPANY LIMITED JAPAN has 51% shares in this joint venture, so the main profit shares as well as designing, development ideas and costs are bear by HONDA MOTOR COMPANY JAPAN LTD. Where as in another joint venture b/w these two companies ATLAS GROUP OF COMPANIES have 51% shares. This joint venture is for the manufacturing of HONDA MOTORCYCLES. ATLAS GROUP of companies receives more % of profits. In all over the world, engines of almost of all kinds of product HONDA is a “GIANT” manufactures in the engine industry. HONDA produces boats also.
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PRODUCT LINE OF HONDA
JOINT VENTURE B/W Honda (51%) &atlas Joint venture b/w Honda &Atlas (51%) Honda Japan
CARS Honda Civic Honda City Honda motorcycles
Generators
Boats
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OUR ANALYSIS:
HONDA ATLAS CARS COMPANY PAKISTAN LIMITED is really well known motor vehicle company. We found no contradiction when we compare the statement of HONDA staff with general dealers and customers. HONDA ATLAS CARS, especially consumer’s cars, sells due to brand name of HONDA. So HONDA is enjoying a sound reputation in the market. HONDA cars regarded as # 1 due to high quality engines and several other features. Where as, the most efficient cars (diesel cars) are being produced by HONDA’S important competitor “TOYOTA”. HONDA has contributed a lot in gas efficient cars, by introducing the HONDA CIVIC HYBRID, stand at # 2 after the TOYOTA in gas efficient cars. The prices of the few models of HONDA ATLAS CARS are lower as compared to the prices of their competitors. HONDA ATLAS CARS maintains quality standards. Most of the depreciation is computerized. Products are manufactured according to scientific standards. HONDA ATLAS CARS gives priority to consumer satisfaction and it is the constant endeavor of the HONDA ATLAS CARS OF PAKISTAN is to
“Achieve the # 1 customer satisfaction”
HONDA made heavy engine cars, 1600 cars first introduced by the HONDA (JAPAN).
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SUGGESTIONS:
After visiting this organization and go through our analysis we are at the position to give some suggestions: HONDA ATLAS CARS should add more product line because it can cash its reputation. HONDA ATLAS CARS should explore new market. HONDA ATLAS CARS should work on the more improvement in its product line .i.e. cars (both city and civic), generators, and boats. HONDA ATLAS CARS should restructure its policies. HONDA ATLAS CARS should improve in producing the gas efficient cars. HONDA ATLAS CARS conducts its business responsibly in a way to make sure Health, Safety and Protection from the environmental aspects of its associates and the society.
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HONDA ATLAS CARS PAKISTAN LIMITED is a joint venture between HONDA MOTOR COMPANY LIMITED Japan, and the ATLAS GROUP OF COMPANIES, Pakistan.
The agreements signed between the two sponsors are for technical collaborations for development parts and systems for manufacture of HONDA CARS in Pakistan. Pakistani and Japanese cultures have blended exceptionally well to form a professional team of Institute of Business Administration 1
dedicated specialist.
The company was incorporated on November --, 1992 and joint venture agreement was signed on August ---, 1993. The ground breaking ceremony was held on April 17, 1993 and within a record time of 11 months, construction and erection of machinery was completed. The first car rolled off the assembly line on May 26, 1994. Official inauguration was done by President of Pakistan, Sardar Farooq Ahmad Khan Leghari. Mr.Kawamoto, President of Honda Motor Company Limited Japan was also present to grace the occasion. The company is listed on Karachi, Lahore and Islamabad Stock Exchanges.
On July 14, 1994, car bookings started at six dealerships in Karachi, Lahore, and Islamabad
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Since then the Dealerships Network has expanded and now the company has sixteen 3S (Sales, Service and Spare Parts) and thirty 2S (Service and Spare Parts) Pit shops network in all major cities of Pakistan.
Since the commencement of production in 1994 till March31, 2005, the company has produced and sold over 77,500 cars.
All dealerships are constructed in accordance with the standards defined by HONDA World over. Percentage of local parts conforms to the government's policy. Local vendors are continuously patronized to develop parts locally. The quality of local parts is thoroughly checked to meet stringent international standards. HONDA always strives to give outstanding service to their valued customers. In addition to providing regular service to customers, the company also regularly conducts Service
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Campaigns, to facilitate customer's need for service. This has given customers absolute confidence in HONDA 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. In 1996 the full model
change of HONDA CIVIC introduced, after just one and half year of commencement of production. Three models in Civic VTI, EXI and LXI with 1.6L and 1.5L engines were introduced in VTI and EXI models respectively. In 1997 Honda CITY 1.3L car in Et and EX models and Honda City EXI with 1.5L were launched.
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VISION STATEMENT:
HONDA vision to position itself in Auto industry is stated by management as follows:
Focusing on “satisfaction” (customer’, associates’ and shareholders’) are dedicated with challenging spirit and flexibility, we to supplying latest generation cars with advanced tech-nology, greater fuel efficiency and competitive prices, along with friendly and efficient after sales back up, maintaing “quality” as core
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all activities.”
HONDA'S ENVIRONMENT STATEMENT:
HONDA environment policy established and announced in June 1992. As a responsible member of society whose task lies in the preservation of the global environment, company will make every effort to contribute to human health and the preservation of the global environment in each phase of its corporate activity. Only in this way will we be able to count on a successful future not only for our company, but for the entire world. We should pursue our daily business interest under the following principles:
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BUSINESS PRINCIPLES OF HONDA ATLAS CARS (PAKISTAN) LIMITED: ENVIRONMENTAL POLICY:
•
We will make efforts to recycle materials and conserve and energy at every stage of our products’ life cycle fro research, design, production and sales, to services and disposal.
•
We will make every effort to minimize and find appropriate methods to dispose of waste and contaminants that are produced through the use of our products, and in every stage of life cycle of these products.
•
We will consider the influence that our corporate activities have on the regional environment and society, and endeavor to improve the social standing of the company.
•
As both a member of the company and of society, each employee will focus on the importance of making efforts to preserve human health and the global environment, and will do his or her part to ensure that the company as a whole acts responsibly.
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HONDA ATLAS CARS (PAKISTAN) LIMITED, being responsible member of society considers the preservation of the global environment as a crucial concern reviewed on 30th June, 2004. Our environmental philosophy is firmly based on the following guidelines.
•
Recognize the impacts of the significant aspects on the environment resulting from our activities, products and services.
•
Formulate objectives and targets for pollution prevention, environmental impacts mitigation and resource conservation as far as technically feasible.
•
Operate in compliance with relevant environmental laws, regulations and other requirements that apply to our activities.
•
Create environment friendly attitude among associates.
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•
Commitment to continual improvement of the environmental performance and review of the environmental management system to ensure its suitability, adequacy and effectiveness.
QUALITY POLICY :
At HONDA we are committed to focus all are activities leading to: • • • • Manufacturing high quality products. Customer satisfaction. Service to society. Maintain market leadership.
HONDA ATLAS CARS PAKISTAN LIMITED is a quality conscious company. That’s why HONDA ATLAS CARS PAKISTAN LIMITED is the first automobile company in Pakistan who has achieved “ISO 9002” certification.
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OTHER BUSINESS PRINCIPLES OF HONDA:
Following are different policies &principles of Honda namely:
•
MANAGEMENT POLICY:(respect, man power
importance, 3s spirit, 3A “hand on approach”, be a corporate citizen).
•
HONDA ATLAS CARS (PAKISTAN) LIMITED CORPORATE POLICY: (ideal
working environment , adequate return to share holders, dynamic marketing &manufacturing).
•
PRIORITY STANDARDS OF CONDUCT:(safety ,quality ,productivity).
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•
HUMAN RESOURCE AND SUCCESSION PLAN:(hiring competent associates
,providing opportunities for internal mobility through personal training and development, enabling them to take higher position).
•
SAFETY ,HEALTH AND ENVIORMENT:(comply with applicable Govt.
requirements, avoid risks to human health ).
•
OPERATING PRINCIPLES:(always keep the
dead line, never make excuses, team work).
Marketing mix:
“The set of marketing tools that the firm uses
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to pursue its marketing objective in target market.”
4 P’s OF MARKETING MIX by (McCarthy):
The “Marketing Mix” is probably the most famous phrase in marketing. • • these tools called the four P’s. There are literally dozens of marketing mix tools. McCarthy popularized a four factor classification of
Product, Place, Promotion and Price. These components are called marketing decision variables because a marketing manager can vary the type and amount of each element. One primary goal is to create and maintain a marketing mix that satisfies consumer’s needs for a general product type. Marketing mix often is viewed as “controllable” variables because they can be changed. However, there are no limits to how much these variables can be altered. They are not totally controllable.
WEB VIEW OF 4 P’s OF MKT MIX:
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Product
Price
Marketing Mix
Product
Promotion
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EXPLANATION OF FOUR P’s ACCORDING TO ( WILLIAM J STANTON):
PRODUCT:
“It is a set of attributes assembled in an identifiable form.”
OR
It can be defined as every want satisfying attribute a consumer receives in making an exchange, including psychological as well as physical benefits. It includes product planning, product research and development; product testing; and the service accompanying the product.
PRICE:
“Price is amount of money and /or other items with utility needed to acquire a product.”
OR
It is the value that one puts on the utility that one receives of goods and services. It includes price determination; pricing policies; and specific pricing strategies.
PLACE:
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It is the making available of products in quantity desired to as many customers as possible and to hold the total inventory, transportation and storage costs as low as possible. It includes selection. Coordination and evaluation of channels; transportation; warehousing; and inventory control. OR A channel of distribution comprises a set of institutions which perform all of the activities utilized to move a product and its title from production to consumption. Bucklin - Theory of Distribution Channel Structure (1966) Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer.
PROMOTION:
It is the element in an organization’s marketing mix that serves to inform, persuade and remind the market of a product and/or the organization selling it, in hopes of influencing the recipient’s feelings, beliefs or behaviors.
OR It is used to facilitate exchanges by informing one or more groups of people about an organization and its products. Promotion includes such areas as sales management; personal selling; advertising sales promotional programs and all other forms of marketing communications.
MARKETING VARIABLE UNDER EACH “P”
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Product is the first element among the four elements of marketing mix that are called as 4P’s of Marketing Mix. Product is meant to meet customer needs and satisfaction. Product is actually the key element in the marketing offering. The beginning of the marketing mix is to formulate an offering in order to make the customer’s need satisfied.
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“Product is anything that can be offered to market for attention, acquisition, use or consumption that might satisfy a want or need of the person. It includes physical objects, services, person, places, organization, events, properties, information and ideas.” It is said that product is much more than the physical attributes Pro
PRODUCT
TANGIBLE ATTRIBUTES
INTANGIBLE ATTRIBUTES
duct contains both tangible and intangible components, predominantly tangible products are called as goods and intangible products are called as services. Being working on HONDA ATLAS CARS we have to basically deal with a product that is luxury vehicles for the customers. Being a motor vehicle organization HONDA has established a complete brand name in the motor vehicles industry.
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PRODUCTS OFFERED BY HONDA ATLAS CARS PAKISTAN :
Honda basically offers the consumers and business products both to facilitates the consumer.
PRODUCTS OFFERED BY HONDA ATLAS CARS PAK LTD CONSUMER AS WELL AS BUSINESS VEHICLES
HONDA CIVIC
HONDA CITY
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HONDA CIVIC:
HONDA CITY:
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PRODUCT STRATERGIES OF HONDA ATLAS ARS PAKISTAN:
• New product strategy • Development process • Product mix • Position strategy • Product life cycle • Branding strategy • Product features • Product parts • Services • Product quality • Product design
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NEW PRODUCT STRATEGY:
As we know the product innovation is of three types Products those are really innovative. Replacement those are significantly different from the existing product. Imitative products that are new t company but not new to market.
HONDA falls in 1ST category .HONDA ATLAS CARS is providing vehicles to the customer that is really new to customers & relatively different from the existing ones. The strategy of HONDA ATLAS CARS is to attract the customer with the unique characteristics of the vehicles. As the automobile industry in PAKISTAN has diversity. So the main aim of HONDA ATLAS CARS is to capture the market share by introducing the new in existing available vehicles. The core element behind their strategy is to introduce their vehicle in order to strengthen their reputation in the eyes of consumers.
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DEVELOPMENT PROCESS ADOPTED BY HONDA:
The development strategy regarding product of HONDA is being dealt by the HONDA MOTOR COMPANY JAPAN. As we know that the HONDA is made to deal with the requirement of the local customers. The following steps are taken by HONDA regarding development:
Step # 01: Generation of new idea Step # 02: Screening of idea Step # 03: concept development and testing Step # 04: Marketing strategy Step # 05: Business analysis Step # 06: product development Step # 07: test marketing Step # 08: commercialization
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1. GENERATION OF IDEA:
HONDA always thinks about something new to meet the requirement of the customers. HONDA ATLAS CARS is authorized in PAKISTAN to generate the ideas about improvement in their vehicles. On the other hand, to remain leading in automobile industry it’s the trend to give new features to the existing vehicles.
2. IDEA SCREENING:
All the new ideas cannot be implemented so HONDA screens the pool of ideas in order to refine them, for this purpose HONDA has some experts who analyze and guide the company to proceed.
3. BUSINEES ANALYSIS:
HONDA experts’ team estimates the market demand, competition, and cost of adding new feature to the vehicles.
4. TEST MARKETING:
After the analysis a survey is conducted from the target market by telling the introducing features of so that profitability of that project can be evaluated.
5. COMMERCIALIZATION:
Now the HONDA is in the position to launch a model with introducing features.
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PRODUCT MIX OF HONDA ATLAS CARS (PAKISTAN) LIMITED:
A product mix is set of all products offered for sale by a company. The structure of a product mix has both breath and depth.
PRODUCT MIX OF HONDA ATLAS CARS
Breadth (No of product line) offered by Honda
Depth (Variety of sizes, colors models) Offered by Honda
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BREADTH:
It is measured by the number of the product lines carried. The following are the product line of HONDA:
1. Honda civic 2. Honda city 3. Honda motorcycles 4. Honda generators 5. Honda boats
DEPTH:
It is expressed by the variety of sizes, colors and models offered within each product line. Attributes offered by HONDA in various product lines are:
1. COLOUR 2. MODEL 3. SPECIFICATION
The product mix of HONDA ATLAS CARS would be explained below:
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HONDA CIVIC:
1.COLOUR:
Colors that change your Life.
DIFFERENT COLORS OFFERED IN HONDA CIVIC
Cyprus Blue Pearl
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Grantic Verde Metallic
Cappuccino Brown Pearl
Charcoal Grey Pearl
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Shalimar Rose Mist
Vogue Silver Metallic
Frost White
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Grenada Black Pearl
Canyon Stone Silver Metallic
2.MODELS:
• Exi (MT) • Exi (PT) • VTi (MT) • VTi (PT) • VTi Oriel (MT) • VTi Oriel (PT)
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3.SPECIFICATION:
The Dream Comes True HONDA CIVIC Specifications. Type ENGINE
Type
EXi
VTi
Water-cooled 4-stroke SOHC 16-valve in-line 4-cylinder Transversely Mounted PGM - FI (Programmed Fuel Injection) 75.0 X 84.5 1,493 81 (110) / 5,800 135 (13.8) / 4,500
Fuel Supply System (mm) Bore / Stroke (mm) Displacement (cubic cm) Maximum horsepower (KW (PS) / RPM) Maximum torque (N.M (KGM) / RPM)
PGM - FI + VTEC - III 75.0 X 90.0 1,590 96 (130) / 6,600 146 (14.9) / 5,000
TRANSMISSION
Manual Prosmatec Synchromesh five forward speed, one reverse 4 - speed fully automatic (Progressive Shift Management Technology)
STEERING SYSTEM
Gear Type Rack & pinion, Power assisted
DIMENSIONS
Overall length (mm) Overall width (mm) Overall height (mm) Wheel base (mm) Tread (Front / Rear) (mm) Ground clearance (mm) 4455 1720 1455 2620 1470 / 1470 170
SUSPENSION SYSTEM
Front Rear New McPherson Strut front suspension New rear double wishbone suspension
BRAKING SYSTEM
Type Electronic Brake force Distribution (EBD) 4- wheel disc brakes X 4 - wheel disc ABS (Anti-Lock Braking System) O
TIRE / WHEELS
Tire Size Wheel Size 185 / 65 R 14 (86H) 14 X 5 JJ 185 / 65 R 15 (88H) 15 X 6 JJ
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HONDA CITY:
1.COLOURS:
Colors that change your Life.
DIFFERENT COLOURS OFFERED IN HONDA CITY:
Following are the different colors that are offered in HONDA CITY.
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Granada Black Pearl
Frost White
Cyprus Blue Pearl
Silver Grey Pearl
Vogue Silver Metallic
Canyon Stone Silver Metallic
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Shalimar Rose Mist
Pearl
Charcoal Grey
2.MODELS:
• Exi • Exi – s • Exi – s (AT) • Neo 1.5 • VARIO
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3.SPECIFICATION:
The NEW HONDA CITY Specification Type ENGINE
Type Fuel supply system Displacement Compression ratio Maximum horsepower (KW(PS)RPM) Maximum torque (N.M(KGM)RPM)
EXi-S
VARIO
iDSI (Intelligence Dual & Sequencial Ignition) PGMF-I Programmed Fuel Injectioni 1300 10.5 57 (78) / 5,800 105 (10.8) / 3,000
TRANSMISSION
Manual Automatic Synchromesh five forward, one reverse ---Continuously Variable Transmission 6 position (CVT)
----
STEERING SYSTEM
Gear Type Rack and pinion, power assisted
DIMENSIONS
Overall length (mm) Overall width (mm) Overall height (mm) Wheel base (mm) Tread Front (mm) Tread Rear (mm) Ground clearance 4310 1690 1510 2450 1454 1445 160
SUSPENSION SYSTEM
Front / Rear Independent Strut / H-shaoe Torsion Beam
BRAKING SYSTEM
Front Rear Ventilated discs Leading / trailing shoe drums
TIRE / WHEELS
Tire Size Wheel Size 165/BO R13 13X5J
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POSITION STRATEGY:
“Market positioning is arranging for a product to occupy a clear, distinctive and desirable place in the minds of the customers relative to completing products.”
In this way product is defined by consumer on important attributes. The management of HONDA has planned a position that distinguishes their vehicles from their competitor’s ones. It’s the shinning point of HONDA that after analyzing their positioning strategy they conclude that they provide maximum satisfaction to their consumers. To make good position in the automobile industry the HONDA first identifies the possible advantages about its vehicles. In order to have the competitive advantage, HONDA offer great value to choose target segments by offering more benefits and luxury accessories to justify their prices.
VARIOUS STRATEGIES OF HONDA:
In order to better position the vehicles HONDA is tend to adopt the following strategies:
1.POSITIONING IN RELATION TO COMPETITORS:
As we know that HONDA has a solid differential advantage on its vehicles. To fend of its rival that is TOYOTA over here, HONDA has brought out successful models that are meeting the customers need so well.
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2.POSITIONING IN RELATION TO PRODUCT ATTRIBUTES:
Under this strategy the HONDA management has more concern because the consumers of these luxuries vehicle are more intended towards the product attributes. HONDA has been continuously working to give more accessories to their vehicle in order remain alive in the minds of their target market.
3.POSITIONING BY PRICE AND QUALITY:
HONDA has been very successful in positioning its vehicle in relation to the price and quality. The strategy is to have no compromise over the quality of its vehicles in regard to the parts.
PRODUCT LIFE CYCLE:
“The product life cycle consists of the aggregate demand over an extended period of time for all brands comprising a generic product category.”
The product life cycle consists of four stages:
• Introduction • Growth • Maturity • Decline
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1.INTRODUCTION:
During this stage, a product is launched into market in a full-scale marketing program. It is also called the pioneering stage.
2.GROWTH:
In this stage, sales and profits rise, frequently at a rapid rate. It is also called marketacceptance stage.
3.MATURITY:
During the first part of this stage, sales continue to increase, but at a decreasing rate. During the other part of this stage, marginal producers, those with high costs or no differential advantage, drop out of the market.
4.DECLINE:
In this stage, sales are decreasing because of these three reasons: • • • A better or less expensive product is developed to meet the same need. The need of the product disappears, often because of another product development. People simply grow tired of a product.
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HONDA’S PRODUCT LIFE CYCLE:
HONDA lies in the early stage where sales continue to increase and profits are maximum. So HONDA tries its level best to maintain this present situation.
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BRANDING STRATEGY ADOPTED BY HONDA:
It is common view that consumes view a brand name as an important part of the product and no doubt branding ads to the value of the product.
Branding is actually: “A name, term, sign, symbol, or a design or a combination of these intended to identify the goods and services of one seller to differentiate them with the products and services of their competitors.”
HONDA BRAND NAME:
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BRAND DECISION MADE BY HONDA:
Brand decision of HONDA is based on the fact that it is most popular perceived by the customer as luxurious vehicle. HONDA brand name has strong consumer loyalty but only in a specific target segment of the whole society.
BRANDING STRATEGY:
HONDA has struggled a lot to keep its brand being remain in minds of consumers. Under this regard the main strategy is to add the valuable features to vehicles to keep the brand loyalty.
BRAND PERSONNA:
Every brand of HONDA has its own branding strategy. HONDA ATLAS CARS PAKISTAN LIMITED builds brand persona for each brand. Pricing, Promotion, Distribution and future products development follow brand persona.
BRAND CIVIC
MESSAGE
DISTRACTINGLY GOOD LOOKING
PERSONA
FOR THE STYLISH, GOOD LOOKING PEOPLE FOR THE LUXURIOUS VEHICLE LOVERS
CITY
EXTREME PERFECTION
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PRODUCT FEATURE:
To get a superior market share the product must have the salient features in it. HONDA has adopted the same strategy that it has been continuously adding features to its vehicles. Let have a look vehicles offered by HONDA ATLAS CARS (PAKISTAN.) LIMITED in regard to their features
Honda Civic:
The shinning features of Honda civic would be elaborated as follows:
EXTERIOR: Distractingly good looking:
New Civic has an exciting new style. It’s the car for people who know what’s happening. Who shape the time?
There’s a lot to love about the Civic:
It's reliable, economical and remarkably fuel-efficient.
It's now equipped with new headlights, bumpers and grille, so you'll have a tough time concentrating on anything except its stylish good looks.
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INTEROR:
Comfort, convenience and luxury with style:
Trend should conform to climate, weather and conditions. HONDA beige, pragmatically selected to stay clean and spotless for years.
Feel the difference!
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CIVIC SOPHISTICATION:
GENEROUS AMOUNTS OF LEGROOM, COURTESY OF HONDA'S FLAT REAR FLOOR:
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AUDIO SYSTEM:
Ten disc CD Changer with flip front stereo & remote control on all models.
OPEN MOON ROOF:
Oriel - tilt & slide open moon roof with daylight shutter.
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GENEROUS LUGAGGE SPACE:
METERS:
Large innovative colored meters for easy reading.
ELECTRICALLY RETRACTABLE DOOR MIRRORS:
Redesigned electrically retractable door mirrors reduces wind noise and can fold easy parking.
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REAL WORLD CRASH TEST FACILITY:
HONDA is committed to resolving the complex issue raised by real-world crash research.
When braking hard or on slippery surfaces, HONDA ABS automatically lends
expert braking assistance to help driver retain steering control
Every door is equipped with two steel door beams that lend solid passenger
protection in the event of a collision from either side.
A sub frame in the shortened nose efficiently absorbs impact energy.
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Honda's G-CON technology moderates the force of impact and helps maintain
around you and your passengers. Innovative front side frame, crumples upon impact, then bend like a joint to absorb maximum energy in a frontal collusion.
HONDA CITY:
EXTREME PERFECTION:
THE SPIRIT
Is there a better way to build a compact sedan? HONDA'S affirmative answer is the revolutionary new CITY. Through innovative engineering and leading advances like as i-DSI engine and exclusive chassis platform.
The future takes form in The new HONDA CITY
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The NEW HONDA CITY provides spaciousness & functionality. Interior styling prioritizes the driver and is emphatically sporty and personal in its appeal.
The City unites a lower floor with a usually spacious cabin and luggage area.
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SAFETY:
Aiming for the world-class safety performance. Great peace of mind in a compact body.
HONDA'S original G-Force Control technology provides all- around protection in the event of and accident. This safety technology is designed to control and absorb collision impact, maintaining the structural integrity of the passenger space.
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Through relentless crash testing at various speeds and angles, the City supplies protection that meets the world’s strict governmental safety standards.
PERFORMANCE:
i – DSI Intelligence Dual & Sequential ignition
Dramatically efficient fuel economy. Greater driving range on the same amount of fuel. Plus plenty of torque whenever you need it.
HONDA'S unique new i-DSI engine uses two spark plugs per cylinder for maximum fuel efficiency. Leading friction reducing technology used in i-DSI engine provides ample power for enhanced Driving Pleasure.
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Honda City's novel transmission "Vario" allows smooth step less power transfer from the engine to the wheels to match the mood.
ENUINE PARTS
HONDA GENUINE PARTS:
But if you buy the HONDA genuine parts from HONDA DEALERS and enjoy 6 month's HONDA Warranty, contribute to the country’s economy and enjoy the satisfaction of using
100% genuine HONDA Parts
But if you buy the parts from open market; 1) Most probably you will be buying smuggled parts and thus committing a moral crime and robbing your country from precious revenue. 2) You will enjoy no warranty.
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3) You can never be sure about the genuineness of the parts you have purchased from the open market. By using Honda Genuine Parts; 1) You can increase the life of your car. 2) You can enjoy safe & satisfactory drive. 3) You can increase the resale value of the car. It is our aim to be No.1 in customer satisfaction in all three S, Sales, Service and Spare
Parts. Your help can go a long way to help achieve our goal.
For buying HONDA GENUINE ACCESSORIES please contact your nearest authorized HONDA Dealership.
Sugoi Parts Center has started on 2nd July, 2001 with the objective to provide the Genuine HONDA Spare Parts to our valuable customers.
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GENUINE PARTS
They’re part of the whole picture.
Only Genuine HONDA Parts are made to HONDA specifications to maintain the Quality, Reliability and Performance - Making them easy choice every time. • • • • When you install Genuine HONDA Parts you are getting a HONDA WARRANTY that you won't get anywhere else.
Genuine HONDA Parts maintain original operation specifications which can
keep your vehicle on the road longer and retain resale. Quality, Reliability and Performance attributes that have come to describe HONDA vehicle and also reflected in the Parts from which that are built. Each Genuine HONDA Part is precisely design and rigorously tested not only for it's individual performance but also it's interaction with the entire vehicle as well. This process helps ensure that each Genuine HONDA Part will function as its optimum.
•
HONDA MOTOR vehicles are equipped with many unique automotive system
which require special care to maintain their high levels of Performance and
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Reliability, that's why we have created a range of Genuine Fluids and
Lubricants specifically for your HONDA. Each of the Genuine Fluids and Lubricants is designed to perform a specific task, which is crucial to well being of
your HONDA. If it carries the HONDA Logo you can be assured of it is of superior quality.
PRICES OF PARTS & ACCESSORIES OF ONDA CIVIC:
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GENUINE BODY PARTS
Model Part Name
Front Bumper
99-00 2001~ 7,000 5,500
Price
(Pak Rupee)
Rear Bumper
99-00 2001~ 7,000 5,500
Head Light, Right / Left
99-00 2001 6,000 3,800
Back Light, Right / Left
99-00 2001 2003~ 3,000 2,200 2,800
Tail Light, Right / Left
99-00 2001 2003~ 2,500 2,200 2,800
Bonnet
99-00 2001~ 9,500 11,000
Mudguard (Fender) R/L
99-00 2001~ 7,000 4,500
Complete Trunk
99-00 2001~ 9,000 11,000
Mirror Assembly R/L
99-00 2001~ 4,500 5,000
Molding Front Windshield
99-00 2001~ 2,300 1,000
Base Front Grill
99-00 1,700
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PRICES OF MAINTANCE PARTS OF HONDA CIVIC:
GENUINE MAINTENANCE PARTS
Model Part Name
Oil Filter
99~ 150
Price
(Pak Rupee)
Air Filter
VTi 99-00 EXi 99-00 2001~ 700 450 450
Fuel Filter
99~ 1,300
Clutch Plate
99~ 2,500
Pressure Plate
99-00 EXi 2001~ VTi 2001~ 3,800 3,800 3,100
Timing Belt
99-00 2001~ 1,000 1,000
Timing Bearing
99-00 2001~ 1,200 1,600
Spark Plug
99~ 150
Front Disk Pads
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(4 Pieces, R/L) 99-00 2001~ 2,200 2,500
Rear Disk Pads
(4 Pieces, R/L) 99~ 2,200
Rear Break Shoe
(4 Pieces, R/L) 99-00 2001~ 1,600 1,200
Horn High / Low
99~ 600
Bonnet Cable
99-00 2001~ 700 300
PRICSE OF PARTS & ACCESSORIES OF HONDA CITY:
GENUINE BODY PARTS
Model Part Name
Front Bumper
97-99 2000~ 5,000 5,500
Price
(Pak Rupee)
Rear Bumper
97-99 2000~ 6,000 5,500
Head Light, Right / Left
97~ 3,800
Back Light, Right / Left
97~ 2,500
Bonnet
97-99 2000~ 10,500 9,000
Mirror Assembly R/L
EXi 97~ EXi-S 97~ 3,000 4,000
Molding Front Windshield
97~ 1,500
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Base Front Grill
97-99 2000~ 1,600 850
Molding Front Grill
97-99 2000~ 1,200 1,400
*Prices are effective from Oct 1st, 2002 to onward. All Prices are inclusive of Sales Tax.
PRICES OF MAINTENANCE PARTS OF HONDA CITY:
GENUINE MAINTENANCE PARTS
Model Part Name
Oil Filter
97~ 150
Price
(Pak Rupee)
Air Filter
97-99 2000~ 500 450
Fuel Filter
97-99 2000~ 300 1,300
Clutch Plate
97~ 3,000
Pressure Plate
97~ 3,600
Timing Belt
97~ 1,000
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Timing Bearing
99-99 2000~ 1,200 950
Spark Plug
97~ 150
Front Disk Pads
(4 Pieces, R/L) 97~ 2,200
Rear Break Shoe
(4 Pieces, R/L) 97~ 1,400
Horn High / Low
97~ 850
Bonnet Cable
97~ 140
Bonnet Rubber
97~ 850
Antenna
97~ 2,000
Steering G/Box Rack End
97-99 2000~ 2,100 1,500
Emblum Front Center
97-99 2000~ 220 150
SERVICE FACILITIES:
CUSTOMER SERVICE CENTERS:
All the authorized dealerships in Pakistan are a source of customer satisfaction. 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, 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 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.
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WARRANTY CONDITIONS & ADVANTAGES: WARRANTY PERIOD:
The warranty of the vehicle is valid for 12 months or 20,000 kilometers whichever comes first from the date vehicle is sold and is transferable.
WARRANTY COVERAGE:
HONDA ATLAS CARS warrants that it will repair or replace Free of Charge any part it supplies (excluding tires, batteries and other items which are warranted separately by their respective local manufacturers) found to be defective either in materials or workmanship, or both with the exceptions indicated in the Warranty Exclusions here under, provided that the manufacturer's recommended and required preventive maintenance services and repairs are strictly followed and the vehicle is utilized under normal condition. HONDA ATLAS CARS (PAKISTAN) LTD. (HACPL) reserves the sole rights to the final decision in all warranty matters.
WARRANTY EXCLUSIONS:
The Warranty shall not be applicable in the following cases,
•
Any damages which result from neglect of the periodic maintenance specified by HACPL. Any damage which results from repair or maintenance operations by methods other than those specified by HACPL. Any damage which results from use of non genuine parts, or of fuel, lubricant or fluid not recommended by HACPL. Any damage which results from operation other than as specified in the Owner's Manual, whether intentionally or by mistake. Any repair or adjustment performed by persons other than Dealer, or any damage resulting there from.
•
•
•
•
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•
The vehicle which is not registered with the competent government authority.
FEED BACK:
HACPL believe the essence of real service is when a customer feels proud to say "I am
glad to have bought a HONDA" -- mainly because of HACPL quality service. For
customers to become impressed with us HONDA need their continuous feedback to improve him selves for product and after sales service.
PRODUCT QUALITY:
HONDA ATLAS CARS LIMITED is quality conscious company. That’s why HONDA ATLAS CARS PAKISTAN LIMITED is the first automobile company in PAKISTAN who has achieved “ISO 9002” certificate.
PRODUCT DESIGN:
HONDA is a multinational company which operates in different countries. The models that are introduced in one country are exactly the same in other country. This is because the design and the technology used to make these cars are set by the Research & Development Department of HONDA JAPAN, which is the in of HONDA. Designing process is some through out in the world. In PAKISTAN only the assembling process is done 42% of the parts are manufactured locally and the remaining 52% parts are being import from JAPAN.
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“The amount of money charged for a product or a service, or the sum of values that consumers exchange for benefits of having or using the product.”
One of the four major elements of the marketing mix is price. Pricing is an important strategic tool because it is related to product positioning. Furthermore pricing affects other marketing mix elements such as product features, channel decisions and promotion. Pricing is highly important for an organization because it is the price which the consumers pay in the end to buy a particular product. So in order to draw money put of consumer’s pockets, effective pricing should be adopted.
PRICING APPROACHES USED BY HONDA:
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HONDA sets its prices based on two pricing approaches.
• Cost- Based Pricing • Competition-Based Pricing
COST-BASED PRICING:
This pricing approach suggests adding a standard mark up to the cost of the product. Price of HONDA CARS is fixed and are not negotiable, as they have been devised on certain rules of cost based pricing by HONDA INTERNATIONAL and HONDA PAKISTAN is supposed to adhere to those prices strictly.
COMPETITION- BASED PRICING:
It means rate pricing. HONDA sets the prices based largely on its competitor Toyota. So price settings by HONDA tend to react to the changes in prices of TOYOTA products.
DETAILS OF PRICES BY HONDA:
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HONDA offers its variants in different prices. Prices tend to change with the change in accessories supplemented with any particular model of HONDA CAR. Prices are dependent on the mode of purchase as well. Outright purchase and leasing have their respective effect on prices set by HONDA. Prices thus are characterized as:
LEASING PRICES:
We can define leasing as,
“Leasing is a financial instrument enabling the utilization of a given fixed asset without possessing its ownership.”
Major parties and some brief definitions in leasing are as follows;
LESSEE:
The party that purchases the usage rights of the equipment in leasing transactions against the rentals determined in advance with the contract, that is the buyer of the owner.
LESSOR:
The party that possesses the legal ownership of the equipment subject to leasing and that transfers the usage of the equipment to the Lessee against the rentals determined in advance with a contract that is the intermediary bank involved.
SUPPLIER:
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Manufacturer or marketing company providing the equipment subject to the leasing contract that is HONDA MOTORS.
DETERMINATION OF PRICE:
Price is the only element that produces revenue, all other channels present cost. A company’s pricing decision is effective by both internal and external factors.
STEP BY STEP PROCESS OF DETERMINING PRICE:
When we talk of determining the price, a step by step process is undertaken to set the price of any car by HONDA. We can elaborate on those steps as follows: 1. Develop marketing strategy- marketing analysis is performed, target market is established and product is positioned. 2. Make marketing mix decisions- the product, distribution and promotional tactics are determined. 3. Estimate the demand curve- quantity demanded variation with price is studied. 4. Calculate cost- all fixed and variable costs are accounted for. 5. Understand environmental factors- competitors and their competing products are evaluated and other legal conditions are taken into consideration. 6. Set pricing objectives- for example profit maximization, revenue maximization or price stabilization. 7. Determine pricing- using information collected in the above steps, a pricing method is selected and a pricing structure is developed. Currently for HONDA PAKISTAN all these steps are performed by JAPAN where the head office of HONDA lies.
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PRICING METHODS:
PRICING APPROACH
Cost Based
Buyer Based
Competition Based
Mark- up Pricing
Target Return Pricing
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PRICING OBJECTIVES:
HONDA’S pricing objectives are identified in order to determine the most favorable pricing. Common objectives include the following:
PRICING OBJECTIVES
PROFIR ORIENTED
SALES ORIENTED
STATUS-QUO ORIENTED
TARGET RETURN
MAXIM. PROFITS
MAX. SALES VOLUME
MAX. MARKET SHARE
STABILIZE SALES
MEET COMPETITION
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HONDA follows the objectives of:
Current profit maximization- seeks to maximize current profit, taking into account
revenues and costs. It seeks to achieve maximum profits and notable ratio of return on the capital employed.
Maximize Market Share- HONDA wants to maximize its market share in auto industry
and that is the goal followed by it while setting the price.
FACTORS AFFECTING THE PRICES OF HONDA CARS:
Certain factors affect the prices set by HONDA from time to time. These may include
• Changes in Yen Rate • Changes in prices by Toyota • Increase or decrease in demand- leading to unstable prices in the market
CHANGES IN YEN RATE:
As the Indus motor company is the subsidiary of HONDA MOTOR CORPORATION JAPAN and prices are negotiated and settled with the consultation of the parent company, so they are settled in terms of Japanese currency Yen and then converted into Pakistani Rupee. So whenever there is a fluctuation in the rate of Yen, the prices of HONDA vehicles change. Institute of Business Administration 73
The parts of the cars are brought from JAPAN to assemble cars here in PAKISTAN so the change in rate of Yen affects the cost of these parts and thus the price of the car tends to react to that.
CHANGES IN PRICES BY TOYOTA:
TOYOTA is the major competitor of HONDA. The change in marketing strategies by TOYOTA in every dimension forces HONDA to react. One major reaction towards changes is the reaction towards changes in prices by TOYOTA. HONDA and TOYOTA are thus seen in price related actions and reactions from time to time.
INCREASE OR DECREASE IN DEMAND:
The demands of cars of HONDA tend to remain unfulfilled in comparison with the supply of the vehicles. This leads to the unstable prices in market. Prices are announced by company management and they are supposed to be fixed and non- negotiable unless done so by the HONDA itself. Yet when we go to the market to buy a HONDA CAR, the situation is entirely different. We find that prices in the market tend to fluctuate and grow unstable with the change in demand of consumers. The consumers buying directly from the authorized dealers of HONDA get the car delivered to them in 6 months of time after the order processing and payment of the amount. The consumers who want the car immediately or on a short notice are not able to get the car from the authorized dealers of HONDA so that they are forced to get the car at a price higher than the company rate. This can be called in market terms as Premium on prices or ON for the cars. The premium on HONDA CARS has become an uncontrollable variable these days. HONDA has tried every possible means to put an end to this market disturbing factor by activating a Registration Law, demanding more information from the buyer and finally the imposition on National Tax Number (NTN).But all these efforts seem to go down the drain so far and the prices of HONDA vehicles seem to fluctuate largely in the market and cars are
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being sold in the market on premium of more than Rs.100000 to Rs.2000000 above the original company price.
TERMS AND CONDITIONS OF PRICES BY HONDA:
There are few terms and conditions which need to be known while studying the pricing procedure of HONDA. Consumers also need to know these conditions as these conditions directly affect their purchase dealing with HONDA. These conditions can be elaborated as follows:
• RIGHT OF CHANGING PRICES:
HONDA reserves the right of changing the prices of its vehicles at any time without any prior notice to its customers.
• CHANGES IN PRICE AFFECTS CURRENT ORDERS:
HONDA makes the transaction of sale of its cars under the condition that any change in price at any time would affect the transaction as well. That is, the orders which are already executed and payment is already made by the buyer and the delivery of the car is yet to be done and prices change meanwhile the buyer is bound to pay the excess amount if the price has increased or if the price has decreased he would be refunded the excess amount.
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• INTEREST PAID BY HONDA ON THE AMOUNT:
HONDA facilitates its buyers when it pays the purchase price amount to HONDA and waits 6 months to get the car. This can be perceived as a static amount of money as he hasn’t yet received the car and money is his but he cannot use it. The buyer could have invested it somewhere and earn a return on it. So HONDA offers interest payment on this amount after 2 months, from the 61st day, on the current bank rate for the next 4 months so buyer is facilitated.
• NO RIGHT OF OBJECTION ON PRICES TO THE BUYER:
The buyer has not been given any right to object on the pricing policies, payment schedule and fluctuations in prices of HONDA. The buyer has to accept all the terms and conditions
“as is, given and stated by HONDA”
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PLACE:
“A distribution channel is the set of people and firms involved in the transfer of title from producer to ultimate consumer or business user. While placing the product the management has to face the many critic marketing decisions. A company’s channel decision directly effects every other marketing decision. For the development of the organization, proper marketing channel is very necessary.”
OR
Place is the making available of products in quantity desired to as many customers as possible and to hold the total inventory, transportation and storage costs as low as possible. It includes selection. Coordination and evaluation of channels; transportation; warehousing; and inventory control.HONDA sees its distribution system as a key resource. Since it takes years to build, and it is not easy to change. HONDA’S corporate philosophy revolves around customer satisfaction which is symbolized in the dealer’s concept:
• Sales • Services • Spare Parts
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CHANNELS:
Honda uses one level channel for selling its cars. This is done mainly through the dealers that are of two types:
2-S 3-S
2-S Dealers:
These kinds of dealers provide only service and spare parts of HONDA.
3-S Dealers:
These dealers in addition to services and spare parts also offer cars for sale. Their are 18 authorized 3-S dealers all over Pakistan.
LOCATION:
Generally, where 3-S dealers are located 2-S dealers are not designated for that area .It is only in Lahore that there are both kind of dealer’s .The 3-S dealer is located in Garden Town where as the2-S dealer is located in Defense Housing Society. The reason for 2-S dealers arises because in certain smaller cities like Multan, Faisalabad, Peshawar, Larkana, Sargodha etc there are no centers providing such mechanical and technical services. So this has kind of negative effect on the sales of the company.
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DISTRIBUTION CHANNEL USED BY HONDA:
The distribution channel used by HONDA is an Indirect Marketing Channel. It is the marketing channel having one or more intermediaries is called indirect marketing channel. There is no mark up pricing by the authorized dealers. HONDA sells cars to its customers by using by the following indirect channel. All the authorized dealers and their outlets are well established in the immediate vicinity of the target market segments and particularly in the niches of the interest of the company.
INDIRECT MARKETING CHANNEL OF HONDA:
HONDA ASSEMBLING UNIT
HONDA’S AURTHORIZED DEALERS
FINAL CONSUMER
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CHANNEL FUNCTIONS AND FLOWS:
The channel composed of corporate authorized dealers is aimed at performing the following key functions. • • • • • • Development and dissemination of persuasive communications in order to stimulate purchasing. Reach agreement on price. Place production requisitions, based on the orders, with the factory. They provide for buyer’s payment of bill through banks. They assumed risk connected with carrying out channel work. They gather information about potential and current customers, competitors and the other forces in the marketing environment.
CHANNEL FLOWS:
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The five channel flows are commonly used.
Channels Flows Physical flow Title flow Payment flow Information flow Promotion flow
Practicing in HONDA Yes Yes Yes Yes Yes
CUSTOMER CONVENIENCE STRATEGIES:
HONDA has evolved some customer convenience strategies like: • • Showroom visit facility for potential buyers: HONDA arranges to give opportunity to feel and experience the car at their showrooms. Complimenting the cars sales, sale of spare parts and auto-servicing are a part of the authorized dealer’s outlet.
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CHANNEL MANAGEMENT DECISIONS:
As explained earlier the distribution for HONDA vehicles is corporate authorized so in order to keep a check on the efficiency of the channel the company has the following authorities to exercise and keep the process in track with the organizational objective. HONDA reserves the right to withdraw a resource or terminate a relationship if any component of the channel is not working efficiently. It gives extra benefits to distributors and particularly its sales personnel if their performance is notably excellent.
DEALERSHIP NETWORK:
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3S Dealership (Sales, Service, Spare Parts)
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2S Dealership (Service, Spare Parts)
Honda Atlas Cars (Pakistan) Limited has Dealership Network covering all of Pakistan, and Dealership are equipped with all the facilities a modern dealership should have. The facilities include Sale, Service and Spare parts.
DETAILS OF 3-S DEALERS:
The 3-S dealers are present in different cities. Faisalabad Gujranwala Hyderabad Islamabad Honda Faisalabad (Main Canal Bank Road) Honda Gujranwala (G. T. Road) Honda Palace (Shahbaz Town, Jamshoro Road) Honda Classic (Plot 179, I 10/3, Industrial Area) Honda Classic Lounge (Pak Plaza, Blue Area 1019 Fazal Haq Rd) Honda Defence (67/1, Korangi Road, Near HINO Circle) Honda Drive-In (118-C, Rashid Minhas Road) Karachi Honda Quaideen (2, 33-A-2, PECHS) Honda Sharah-e-Faisal (13, Banglore Town, Sharah-e-Faisal) Honda S. I. T. E. (C-1, Main Manghopir Road) Honda South (1B, Sector 23, Korangi) Honda City Sales (75B, Block L, Ferozpur Road Gulberg III) Institute of Business Administration 84
Lahore
Honda Fort (32 Queen’s Road) Honda Fort Lounge (169Y, Commercial Area, Defence)
Mirpur A. K.
Honda Empire (Mian Muhammed Road, Quaid-e-Azam Chowk, Mirpur Azad Kashmir)
Multan Peshawar Sialkot
Honda Breeze (63, Abdali Road) Honda North (Main University Road) Honda Falcon (112, Azia Shaheed Road)
DETAILS OF 2-S DEALERS:
The 2-S dealers present in different cities. Following are names of these cities. • • • • • • • • • • • • Abbottabad Bahalwalpur Burewala Faisalabad Karachi Azad Kashmir Islamabad Khanewal Gujrat Lahore Mardan Okara
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• • • • • •
Rahim Yar Khan Rawalpindi Sahiwal Sargodha Sukkar Vehari
TRANSPORTATION:
The company does not own trucks so it signs contracts with transport companies for the delivery of cars. Normally the cars are driven to Lahore but sometimes they are transported through trailers. The company charges different prices for the delivery of its cars keeping in view the distance of the place from the factory. The rate list is as follows:
DESTINATIO N
LAHORE FAISALABAD GUJRAWALA SIALKOT ISLAMABAD PESHAWAR MULTAN MIRPUR (AZAD KASHMIR) KARACHI HYDERABAD
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FREIGHT
1500 3200 3200 3200 4500 5500 4200 4500
6000 5500
86
INVENTORY:
The level of inventory at any outlet is up to the dealer and it is he, who has to decide about the number of cars present in the showroom. This decision is based on a number of factors such as sales, location and distance from the factory. Normally there are 15-20 cars always present in the stock of the dealer.
WAREHOUSES:
The company itself doesn’t own any warehouses; the cars are kept in the factory. It is the dealers who own warehouses and they have to decide the number of warehouses required based on the inventory of the stock.
MARKET SHARE:
Market share means the number of shares a company has in its market as compared to its competitors. HONDA ATLAS CARS PAKISTAN LIMITED covers a large number of shares in Pakistani market.
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OVERALL MARKET SHARE:
If we consider only the market share of HONDA with its main competitor TOYOTA and others, the market share is as follows:
COMPANY NAME HONDA TOYOTA OTHERS
MARKET SHARE 45%-50% 30%-35% 20%-25%
This market share is for the cars, which are above 1300 cc. But if we consider only the petrol cars, then according to the recent survey, the share of HONDA is greater than 80%. Others company like SUZUKI, NISSAN, HYUNDAI and KIA they constitute the 20% of the market share. But they are below 1300 cc.
BEST SELLING SPOT:
Best selling spot for HONDA CARS is Karachi. The overall percentages of market share of HONDA in different cities are as follows:
City Name Karachi Lahore Islamabad Multan, Faislabad, Sialkot, Hyderabad
Market Share 48% 38% 18%-20% 7%-8%
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Lahore is the second best selling spot for the HONDA. Low share in other cities like Multan, Faislabad is because low class resides in these cities. The target market of HONDA is upper class, that’s why the share is high in big cities and low in small cities.
COMPETITORS:
HONDA is currently facing the three biggest competitors in its class. They compete with HONDA because of their successful product in the market before the commencement of HONDA ATLAS in PAKISTAN. These three main competitors are
TOYOTA NISSAN SUZUKI
1.TOYATA:
TOYOTA is considered to be the main competitor of HONDA because it is only one company, which has enough market shares that will directly influence the share of HONDA. This is because of the fact that TOYOTA has been manufacturing cars much before HONDA in PAKISTAN and the cars they have been manufacturing since 1993 are much environmental friendly than any other car manufactured in PAKISTAN, before. Firstly TOYOTA introduced GLi in both transmission categories i.e. manual and automatic. This category car having 1600 horse power is the direct competitor of HONDA CIVIC not only in the technique but also in luxury that they provide and the other facilities and add-ons. In 1.3 liter car’s TOYOTA can be considered as the market leader before, as it is producing three different models in this category i.e. GL, XE and XEG. But now with the introduction
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of new HONDA CITY 2000, TOYOTA is no longer a leader in the market because of the Luxury and style provided by the HONDA CITY 2000.
2.NISSAN:
NISSAN is not a direct competitor of HONDA because this company produces 1.4 liter and 2.0 liter fuel & Diesel cars respectively. But because of the big giants like TOYOTA and HONDA in the market this company cannot compete in the market and loses its share. But now few months back they launched their new models in the market at low prices as compared to HONDA and TOYOTA.
3.SUZUKI:
SUZUKI introduced its 1.6-liter car a few years back with the name of Baleno. They introduced two models GLi and GXi in the market having fuel injection system in the category of 1.3 liter in competition with HONDA CITY. But HONDA has no fear of them because of the fact that, HONDA is already the market leader in 1.6-liter class & 1.3 liter class. According to the recent survey the graph of Baleno 1.6 & 1.3 is continuously declining because of their competitors like TOYOTA and HONDA.
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Promotion is one of the four P’s of marketing mix. Simply stated, promotion is intended to make a product more attractive to the prospective buyer. A company uses promotion to provide information for the decision maker’s buying decision process, to assist in differentiating its products, and to persuade potential buyers. From a marketer’s perspective, promotion serves three essential roles
It informs Persuade and Remind prospective buyers about the company and its products. Promotion is key ingredient in the product success consists of a diverse collection of incentive tools, mostly short terms, designed to stimulate quicker and greater purchase of products or services by consumer or the trade. Through promotional activities, consumer gets all available products in the market.
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PROMOTION MIX:
An effective promotional mix is the critical part of virtually all marketing strategies. Designing an effective promotional involves a number of strategic decisions as target audience, objectives of company’s promotion effort, nature of the product, stages in the product lifecycle and amount of money available for promotion. So, the promotion mix is the organization’s combination of the following elements which help the company to achieve its marketing objectives.
Sales force Sales promotion Advertisement Public relations Direct marketing
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THE COMMUNICATION MIX:
The promotion mix of the company is also called the communication mix. In front of HONDA ATLAS CARS there is a new view of communications as an interactive dialogue between the company and its customers that takes place preselling, selling, consuming and post-consuming stages. In deciding of the marketing communication mix, marketers at HONDA must examine the distinct advantages and cost of each promotional tools and the company’s market rank. They must also consider the type of the product market in which they are selling, how ready consumers are to make a purchase, and the product stage in the product life cycle. Measuring the marketing communications mix’s effectiveness involve asking members of the target audience whether they recognize or recall the message, how many messages, and their previous and current attitudes toward the product and the company.
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PROMOTION STRATEGIES OF HONDA:
PUSH STRATEGY:
The HONDA MOTOR COMPANY is using the promotion program aimed primarily at middleman. In HONDA the product is push through the channel. The HONDA MOTOR COMPANY heavily promotes the distributors among different countries in order to facilitate the customer.
STRATEGY IMPLEMENTATION:
HONDA MOTOR COMPANY LIMITED JAPAN
HONDA ATLAS CARS (PAKISTAN) LTD. DISTRIBUTOR NETWORK END CONSUMER
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PROMOTION METHODS:
In HONDA, all methods as sales promotion, advertising, public relations, and direct marketing are used to influence the customer choices.
PROMOTION OBJECTIVES:
The promotional efforts of the HONDA ATLAS CARS are aimed to induce the customer to buy the product. At first the awareness in the shape of the knowledge about the product features and facilities is to be provided. Then the customer liking is developed. Preference is created by distinguishing among other brands through the astonishing features of the automobiles. Resultantly, strong conviction leads the buyer to purchase the product.
PROMOTION BUDGET:
Establishing promotional budget is extremely challenging job. In HONDA ATLAS CARS the promotional budget is determined as 25-30% of sales. Dealers or Distributors are also determined their own promotional budgets (particularly at their outlets) for the promotion of the company, its product and the outlet as well.
REGULARIZED PROMOTION:
The HONDA ATLAS CARS is doing its promotional activities with the help of 18 authorized dealers all over the country. The dealers are independently working in their own set ups but they are following the company’s policies and strategies.
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SALES FORCE AT HONDA:
The sales representatives are the company to many of its customers. It is the sales reps that bring back much needed information about the customer. Therefore the company needs to carefully consider issues in sales force design. The sales force is regularly trained and different training programs are arranged for them here in PAKISTAN. Whereas for some highly specialized staff, training programs are arranged in JAPAN. Their sales force training is conducted on “FABE”.
F= feature A=advantage B=benefit E=evidence
The sales force personnel have to tell the prospective buyers that what are the features of the product they are offering, what are the advantages and benefits its offering and finally present evidence of the claims?
STRATEGIES AND OBJECTIVES:
HONDA’S corporate philosophy revolves around customer satisfaction, which is symbolized in the 3-s concept. HONDA is the pioneer in the 3-s system, which offers sales, services and spare parts all from the same facility. So taking into account the 3-s concept the human resource department recruits the sales force and trains them according to the specifications. The responsibilities and the targets are assigned them on order to be fulfilled .In case if the performance standards are not met then the workers are to be fired. The important tasks, which performed by the sales force for the AGC, are as follows:
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Communicating Selling Servicing Information gathering Allocating
The sales managers form promotion policies and advise the sales force according to it. The order taker takes the provisional booking orders. These provisional booking orders numbers are assigned to the customers to ensure the delivery of the products at the promised right time to the right customer.
SALES FORCE TRAINING:
The training sessions, courses, papers and presentations are arranged in which the new sales techniques are introduced to enhance the knowledge of the employees in order to make them familiar with the contemporary happenings. The company trains the dealers each month. The lectures are held in Lahore and Karachi; the dealers from Singh and Baluchistan attend lectures in Karachi whereas dealers from Punjab and Peshawar are trained in Lahore. HONDA also organizes competitions among the dealers to measure their performances. A new technique offered in JAPAN and the managers were invited to learn more.
SALES FORCE STRUCTURE:
The sales force strategy at HONDA has implications for the sales force structure. The company comprise of three types of sales force structures:
A strategic market sales force composed of technical, applications and quality engineers and service personnel assigned to major accounts.
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A distributor’s sales force calling on and coaching HONDA distributors. An inside force doing telemarketing and taking orders via phone and fax.
THE STRUCTURE OF HONDA’S SALES DEPARTMENT:
Sales Manager
Deputy Sales Manager
Assistant Sales Manager
Manager Corporate Sales
Sales Executive
Correspondents of Leasing Companies
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SALES PROMOTION:
Sales promotion is considered as
“Incentive to buy”
And can be described as
“It is a verity of short term incentives to encourage trial or purchase of a product or service.”
Sales promotion is a key ingredient in HONDA’S marketing campaigns. As it consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of products by customers.
BENEFITS OF SALES PROMOTION:
There are three benefits, which the HONDA ATLAS CARS derives from the use of the sales promotional tools.
1. Communication 2. Incentives 3. Invitation
MAJOR CONSUMER PROMOTIONAL TOOLS:
In HONDA major promotional tools are as follows:
Product warranties Point of purchase displays and demonstrations Adequacy of repair facility
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Customer service follow ups Service packages for customers Events related to customer prizes Free check-up campaigns on regular basis
The warranty is normally given for one year or on 20,000 kilometers drive, which comes earlier. This warranty is based on the parts replacement. The demonstrations are also given to the customer in order to aware about the product’s exclusive features.
ADVERTISING:
Advertising means
“Reasons to buy”
And can be described as:
“Advertising is non personal presentation and promotion of ideas, goods or services by an identified sponsor.”
The marketing department of the distributors holds HONDA’S advertising. Every distributor is responsible for its own advertising program.Advertising plays a very significant role in the promotion of new product. It’s usually more attractive then the other promotional campaigns. There are different forms of advertisements that a company performs according to the nature of the target market. The purpose of advertising is to introduce the customer by the new product and to give the information about the existing product.
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FEATURES OF ADVERTISING:
The features of HONDA’S advertising are as follows:
1. Public presentations (advertising’s public nature confers a kind of legitimacy on
the product and also suggest the standardized offerings)
2. Pervasiveness (permits the sellers to repeat a message many times) 3. Amplified expressions (advertising provides opportunities for dramatizing the
company and its products through the artful use of print, sound and color.)
4. Impersonality (the audience does not feel obligated to pay attention or respond to
advertising.)
FIVE M’s OF ADVERTISING:
The marketing force at HONDA make the five major decisions about the advertising program which they want to develop and execute in order to make familiar the customer with the company’s product.These major five decisions are called as five M’s of advertising.
Mission Money Message Media Measurement
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MISSION:
The advertising mission normally comprises of the sales and advertising objectives.
“An advertising goal is a specific communication task and achievement level to be accomplished with the specific audience in a specific period of time.”
HONDA’S ADVERTISING MISSION:
The company’s advertising mission is stated as follows:
“Focusing on the “satisfaction” (customers, associates and the 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.”
This is based upon the company’s policy that whether the company wants to inform, persuade, remind or reinforce the customer about its products.
MONEY:
The authorized dealers of HONDA spend almost 10% of their sales for the advertising of their outlets, product of the company and the company itself.
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STAGE IN PRODUCT LIFE CYCLE:
This budgeting is based upon the stage in the product life cycle as the ATLAS COMPANY’S products like HONDA is in the stage of early maturity so the distributors are spending this much amount of sales money for the advertising purposes.
MARKET SHARE AND CONSUMER BASE:
As high market share brands usually require less advertising expenditure as a percentage of sales to maintain share. On a cost per impression basis, it is less expensive to reach consumers of a widely used brand than to reach consumer of low share brand. HONDA has already gained a market share of 48%.
MESSAGE:
Another important aspect of advertising is message communication for which an advertising agency puts all its efforts. The procedure of message communication is completed through several different steps.
DEVELOPMENT OF A CREATIVE STRATEGY:
Steps followed:
1. Message generation 2. Message evaluation and selection 3. Message execution 4. Social responsibility review
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STEP 1(Message Generation):
The advertising agency uses a deductive framework for generating advertising messages. This agency decides the number of alternative ad themes to be created before making a choice. The more ads that are independently created, the higher the probability of finding an excellent one. The more time spend by the advertising agency tends towards higher costs.To cut down the costs the ad agency prepares the feasibility report through market research in which the company’s expenditure and consumer responses are analyzed.
STEP 2(Message Evaluation And Selection):
Messages can be rated on desirability, exclusiveness and believability. The ads agency after finding an effective appeal prepares a “creative brief.”It is an elaboration of the positioning statement and includes key message, target audience, communication objectives, benefits to promise and the media to be used.
OBJECTIVES OF AN EFFECTIVE MESSAGE:
To do To know To believe
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STEP 3(Message Execution):
The message’s impact is not only depends upon what is said but often more important on how it is to be said. Effective ads are positioned in two ways:
EFFECTIVE POSITIONING
Rational Positioning
Emotional Positioning
These both two methods of positioning are used for executing messages by the ads agency, which works for the HONDA ATLAS CARS.
STEP 4(Social Responsibility Review):
The HONDA ATLAS CARS are ensuring the safe promotion of its product through their advertising agency and assuring not to harm social and legal norms.
MEDIA SELECTION:
The media planner in the company uses both the electronic and print Medias in order to communicate the promotion message to the prospects. No yellow journalism is there. According to the different surveys this method has quite good effects on the sales of HONDA. Now-a-days company uses all these Medias for the promotional purposes by time to time.
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The following Medias are covered under the pre-described two categories:
TYPES OF MEDIA
Electronic Media
Print Media
Electronic media includes:
Television Direct mail Internet
Print media includes:
Newspaper Magazine Brochures Newsletters
COMMUNICATION MEDIUM:
The media preferred by HONDA is news papers especially the English one. This is due to the fact that mostly the buyers are not PTV watchers .It does not advertise on satellite, as the advertising cost is much too high, they would prefer to cut down the prices instead of spending millions of rupees on ads. At one time they used to advertise on prime time. The timings were 7:40 pm & 9:40 pm because maximum people are watching television at these times.
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MEASUREMENT AND EVALUATION OF EFFECTIVE ADVERTISING:
The company makes both the communication effects research and sales effect research in order to determine the message’s impact. The most important measure of the company’s effective message evaluation is CONSUMER FEED BACK. The questions which are asked by the company are as follows:
1. What is the main message you get from this ad? 2. What do you think they want you to know, believe or do? 3. What works well in the ad and what works poorly?
4. How does the ad make you feel?
5. How likely is it that this ad will influence you to undertake the implied action?
HONDA’S ADVERTISING MESSAGE:
“THE POWER OF DREAMS”
Or
“REALIZING YOUR DREAMS”
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PUBLIC RELATIONS:
Public relation involves
“A variety of programs designed to promote or protect a company’s image or its individual products.”
At HONDA the PR department monitors the attitude of the organization’s public relations and distributes information to build good will. The PR departments spend time counseling top management to adopt positive programs and to eliminate questionable practices so that negative publicity does not arise in the first place. The PR department established by the distributors receives complaints from the customers and then these complaints are transferred to the HAC head office so that suitable actions are taken by the company in order to resolve customer’s problems. HONDA ATLAS is engaged in different programs to promote the sales through public relations. For public relations they participate in different types of programs to increase the interest of public and to introduce their now product via these promotional campaigns.
FEATURES OF PUBLIC RELATION:
The appeal of public relation is based on three distinctive qualities:
1. High credibility 2. Ability to catch buyers off guard 3. Dramatization
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FUNCTIONS PERFORMED BY PUBLIC RELATION (PR) DEPARTMENT AT HONDA:
They perform the following functions:
Corporate communication Press relation Product publicity Counseling
MAJOR TOOLS IN PR:
The major tools which are used in establishing public relations as follows
TOOLS IN PR
Newsletters
Annual Report
In this regard they are also following the strategies of Relationship Marketing. It can be described as:
“Building mutually satisfying long term relations with key parties”
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DIRECT MARKETING:
Direct marketing is the consumer direct channel to reach and deliver goods and services to consumer without using marketing middlemen. These channels include direct mail, websites, catalogs, interactive TV and mobile devices. The HONDA ATLAS CARS is using all the astonishing elements of this fastest growing avenue of consumer servicing. The company seeks the measurable response; typically a consumer’s order that why this is some times called direct-order marketing.
DISTINCTIVE CHARACTERISTICS OF DIRECT MARKETING:
HAC shares four distinctive features of direct marketing:
1. Nonpublic (the message is normally addressed to a specific person.) 2. Customized (the message can be prepared to appeal to the addressed individual) 3. Up-to-date (a message can be prepared very quickly) 4. Interactive (the message can be changed depending on the person’s response)
CHANNELS OF DIRECT MARKETING ADOPTED BY HONDA:
1. Direct mail 2. Websites 3. Catalog marketing
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DIRECT MAIL:
The company involves in direct mail marketing i-e sending an offer, announcement, reminder or other item to the consumer through fax mail, e-mails, and voice mail.
WEBSITES:
The websites of the company are also used in enhancing the customer’s view about the product, as the complete information of features and facilities is available on the Internet. One of the websites is as follows: www.honda.com.pk It is regularly updated and maintained according to the specification.
CATALOG MARKETING:
In this regard the company sends full line product catalogs usually in print form but also sometimes as CD’s, videos or online.
EVENTS:
Different events are arranged from time to time for the promotion of sales of HONDA CARS. Like in FEBRUARY 2003 a basant festival had been arranged on the rooftop of PEARL CONTINENTAL, where they provided all the beverages, kites, food etc. It was such a success that in the month of MAY it was booked by the counterparts of HONDA for the next basant. A rally from Islamabad to Bhurban was also arranged by HONDA in which any car of 1300cc and above (only HONDA) was allowed to participate. The idea behind this rally was to promote the safety of motorists. The theme of the rally was “wear seat belts---your
family loves you”. Fashion shows are also held from time to time for the promotion of
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HONDA. All these are the “Model Launch Event” and the “Brand Building
Event”.
ANNUAL SURVEYS:
HONDA ATLAS CARS PAKISTAN LIMITED arranges the annual surveys in which different activities are done:
1. Customer Satisfaction 2. Market Share 3. Customer Choice a. Reading Habits b. TV Watching Habits 4. Brand Survey 5. Social Group 6. Education Level 7. Market Trend
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FINANCIAL ANALYSIS: BALANCE SHEET:
AS AT MARCH 31, 2005 2005 Rupees EQUITY AND LIABILITIES: SHARE CAPITAL AND RESERVES:
Capital Authorized 75,000,000 Ordinary shares of Rs.10 each Issued, subscribed and paid up Reserves Unappropriated profit 750,000,000 420,000,000 1,579,500,000 94,914,000 2,094,414,000 750,000,000 420,000,000 1,512,000,000 178,735,000 2,110,735,000
2004 Rupees
LONG-TERM Liabilities:
Staff Retirement Benefits -
CURRENT LIABILITIES:
Finances under mark-up arrangements-secured Creditors, accrued and other Liabilities Dividends 9,693,653,000 4,716,000 9,698,369,000 4,884,388,000 4,037,000 4,888,425,000
CONTIGENCIES AND COMMITMENTS: 11,792,783,00 6,999,160,000 0
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2005 Rupees ASSETS: FIXED CAPITAL EXPENDITURE:
Property, Plant and Equipment Intangible Assets Capital Work-in-progress 649,244,000 15,927,000 665,171,000 28,832,000 694,003,000 758,419,000 36,060,000 17,814,000 812,293,000 22,878,000 3,159,153,000 1,230,469,000 5,873,987,000 10,286,487,000
2004 Rupees
492,329,000 33,656,000 525,985,000 73,685,000 599,670,000 750,000 25,229,000 44,604,000 70,583,000 19,546,000 1,708,539,000 1,085,913,000 3,514,909,000 6,328,907,000
OTHER LONG TERM ASSETS:
Long Term Investments
Long Term Loans and Deposits Deferred Tax Assets
CURRENT ASSETS:
Stores and Spares Stock-in-trade Trade Debts Loans, Advances, Deposits, Prepayments and other Receivables Cash and Bank Balances
11,792,783,00 0
6,999,160,000
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PROFIT AND LOSS ACCOUNT:
FOR THE YEAR ENDED MARCH 31, 2005
2005 Rupees
Sales Cost of Goods Sold 16,587,217,000 16,304,182,000 199,495,000 197,190,000 280,730,000 16,145,000 264,585,000 5,956,000
2004 Rupees
9,358,369,000 8,602,391,000 160,968,000 73,083,000 668,093,000 45,612,000 622,481,000 2,288,000
Gross Profit
Administration and Selling expenses
283,035,000 755,978,000 83,540,000 595,010,000
Operating Profit
Other Operating Income Other Operating Expense Finance Cost
Profit before taxation
Taxation
258,629,000 620,193,000
96,450,000 3.86 211,510,000 9.73
Profit after taxation
Earnings per share-basic and diluted (rupees)
162,179,000 408,683,000
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CASH FLOW STATEMENT:
FOR THE YEAR ENDED MARCH 31, 2005 2005 Rupees
Cash flow from operating activities
Cash generated from operations Financial charges paid Long term deposit Income tax paid Staff gratuity paid 3,893,225,000 (5,960,000) (784,000) (155,142,000) (5,110,000) 3,097,056,000 (2,280,000) 100,000 (316,122,000) (4,014,000)
2004 Rupees
Net cash Inflow from operating activities
Cash flow from investing activities
Fixed capital expenditure – tangible Fixed capital expenditure – intangible Sale proceeds of fixed assets Interest received
3,468,976,00 2,638,566,000 0
(269,233,000) (3,282,000) 8,213,000 84,337,000 (243,361,000) (22,684,000) 1,921,000 47,323,000
Net cash Outflow from investing activities
Cash flow from financing activities
Dividend paid
(932,077,000) (240,473,000)
(177,821,000) (146,160,000)
Net cash (Outflow) from financing activities Net Increase in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year
(177,821,000) (146,160,000) 2,359,078,00 2,251,933,000 0 3,514,909,00 1,262,976,000 0 5,873,987,00 3,514,909,000 0
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SWOT ANALYSIS:
SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. It is applicable to either the corporate level or the business unit level and frequently appears in marketing plans. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. The SWOT framework was described in the late 1960’s by Edmund P. Learned, C. Roland Christiansen and William D. Guth in business policy. The general electric growth council used this form of analysis in the 1980’s. Because it concentrates on the issues that potentially have the most impact, the SWOT analysis is useful when a limited amount is available to address a complex strategic situation.
STRENGTHS:
• • • • The image of the company is well established. HONDA is offering comfort, power and style with its vehicle. It delivers the genuine parts with the 6 month unique warranty. It uses latest technology and luxurious interior in the vehicles.
WEAKNESESS:
• The booking procedure is too long, as it takes done 6 months to get the orders delivered. • If the cars are required at a short notice then the distributors or the intermediaries involved take a considerable amount of premium on the actual price.
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OPPORTUNITIES:
• • The HONDA Company can expand the network of its distributors all over Pakistan. The company can enhanced its image at international level through the provision of more sophisticated facilities in their product. • Through the annual dinners and other ceremonies arranged by the company the distributors are able to interact their more and more prospective customers.
THREATS:
• A threat is in the form of premium which the distributor are taking from the customers and thus disturbing credibility of Honda about stability of prices. • The economic environment is characterized by more uncertainty and it respond more to the international scenarios.
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PEST ANALYSIS:
A Pest analysis is an analysis of the external macro-environment that affects all firms.
“P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment.”
Such external factors usually are beyond the firm’s control and sometimes present themselves as threats. For this reason, some way that “PEST” is an appropriate term for these factors. However, a change in the external environment also creates new opportunities and the letters sometimes are rearranged to construct the more optimistic term of step analysis.
POLITICAL ANALYSIS:
POLITICAL STABILITY:
The political stability in the past years has been below the desired level. The developmental policies formulated by one government are replaced by the next government before they are implemented.
TRADE REGULATIONS AND TARIFFS:
There have been quotas, tariffs and high restrictions on the foreign trade. With effect from January 2005 the trade is expected to grow very rapidly.
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ECONOMIC ANALYSIS:
TYPE OF ECONOMIC SYSTEM IN THE COUNTRIES OF OPERATIONS:
There is a mixed economic system prevailing in PAKISTAN.
GOVERNMENT INTERVENTION IN THE FREE MARKET:
Government is intervening only in a limited industries and the remaining are run under the free market mechanism.
EFFICIENCY OF FINANCIAL MARKETS:
The efficiency of the financial markets is improving over the last two decades and is believed to improve much fast in next few years.
BUSINESS CYCLE STAGE:
Business cycle stage in PAKISTAN is the mirror reflection of that in other advanced countries like USA. After the 9-11 crisis there was a recession in USA which started spreading its effects on Pakistan also just in the hours. So the business cycle stage is recession.
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ECONOMIC GROWTH RATE:
The growth rate according to the federal bureau of statistics can be viewed by measuring GDP growth. The GDP growth was 6%.
SOCIAL ANALYSIS:
DEMOGRAPHICS:
The official sources say that the population of Pakistan is growing at the rate of 2.1% per annum and the population for the year 2003 is estimated to be 149 million.
HEALTH:
The present health infrastructure with 906 hospitals. The availability of 101.6 thousand doctors 98.204 thousands hospitals beds in the country which in term of population-doctor ratio works out to be 1466 persons per doctor and 1517 persons per hospital bed so much more efforts need to done to improve health care and preventive services.
TECHNOLOGICAL ANALYSIS:
RECENT TECHNOLOGICAL DEVELOPMENTS:
The government is according higher priority to the information technology (IT) sector. Core IT policy strategies have been proposed for many focus areas.
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TECHNOLOGY’S IMPACT ON PRODUCT OFFERING:
As the technology is changing the buying behavior of the prospects changes and also the changes in the product mix and promotion mix take place. We can say that the number of macro-environmental factors is practically infinite. In practical terms, HONDA must prioritize and scrutinize those factors that influence its industry. Even so, it may be difficult to conjecture future trends with an acceptable level of accuracy. In this regard, HONDA may turn to various techniques to deal with high levels of uncertainty in the important macro-environmental variables.
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OVER VIEW AND SUMMARY OF THE HONDA ATLAS CARS PAKISTAN LIMITED:
HONDA ATLAS CARS COMPANY is a joint venture between HONDA MOTOR COMPANY JAPAN and ATLAS GROUP OF COMPANIES PAKISTAN LIMITED. In HONDA ATLAS CARS COMPANY PAKISTAN, HONDA MOTOR COMPANY LIMITED JAPAN has 51% shares in this joint venture, so the main profit shares as well as designing, development ideas and costs are bear by HONDA MOTOR COMPANY JAPAN LTD. Where as in another joint venture b/w these two companies ATLAS GROUP OF COMPANIES have 51% shares. This joint venture is for the manufacturing of HONDA MOTORCYCLES. ATLAS GROUP of companies receives more % of profits. In all over the world, engines of almost of all kinds of product HONDA is a “GIANT” manufactures in the engine industry. HONDA produces boats also.
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PRODUCT LINE OF HONDA
JOINT VENTURE B/W Honda (51%) &atlas Joint venture b/w Honda &Atlas (51%) Honda Japan
CARS Honda Civic Honda City Honda motorcycles
Generators
Boats
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OUR ANALYSIS:
HONDA ATLAS CARS COMPANY PAKISTAN LIMITED is really well known motor vehicle company. We found no contradiction when we compare the statement of HONDA staff with general dealers and customers. HONDA ATLAS CARS, especially consumer’s cars, sells due to brand name of HONDA. So HONDA is enjoying a sound reputation in the market. HONDA cars regarded as # 1 due to high quality engines and several other features. Where as, the most efficient cars (diesel cars) are being produced by HONDA’S important competitor “TOYOTA”. HONDA has contributed a lot in gas efficient cars, by introducing the HONDA CIVIC HYBRID, stand at # 2 after the TOYOTA in gas efficient cars. The prices of the few models of HONDA ATLAS CARS are lower as compared to the prices of their competitors. HONDA ATLAS CARS maintains quality standards. Most of the depreciation is computerized. Products are manufactured according to scientific standards. HONDA ATLAS CARS gives priority to consumer satisfaction and it is the constant endeavor of the HONDA ATLAS CARS OF PAKISTAN is to
“Achieve the # 1 customer satisfaction”
HONDA made heavy engine cars, 1600 cars first introduced by the HONDA (JAPAN).
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SUGGESTIONS:
After visiting this organization and go through our analysis we are at the position to give some suggestions: HONDA ATLAS CARS should add more product line because it can cash its reputation. HONDA ATLAS CARS should explore new market. HONDA ATLAS CARS should work on the more improvement in its product line .i.e. cars (both city and civic), generators, and boats. HONDA ATLAS CARS should restructure its policies. HONDA ATLAS CARS should improve in producing the gas efficient cars. HONDA ATLAS CARS conducts its business responsibly in a way to make sure Health, Safety and Protection from the environmental aspects of its associates and the society.
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