21562675 Marketing Plan on Honda Atlas Pakistan

8/14/2019 21562675 Marketing Plan on Honda Atlas Pakistan

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TQM

MBA Professional (Evening)

Section X

Session 2007-09

Semester 4th

KHALID AZEEM 8257

1SUPE R

IO

RU

NIV

ERS

IT Y


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EXECUTIVE SUMMERY

2

We have selected Honda to create

marketing plan. As the Honda is market

leader and have opportunity for more

growth in Pakistan. The plan is above to

launch new Honda Jeep with name of

ABBAKZ-1 is going to be lunch on 14th

August 2008. The Jeep is fully equipped

latest safety tools and unique power. Wehave prepaid complete market strategies to

lunch new Jeep. The total expenses of TV

Ads, Bill Board, New paper is 16.5

Million. The manufacturing cost include

other expenses is 6016.5 Million keeping

the sale price 4.5 Million. The total profit

per year is 2.835 Billion


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DEDICATION

We are dedicating our work to our parents and respected teacherMadam Soofia waleed, who have played a vital role in our studies

and have guided us at every step with their precious ideas. No doubt

this dedication is insufficient and we can never repay for the role

they have played in our studies but we are sure that their work will

prove itself an asset in our life

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ACKNOWLEDEGMENT

We are very thankful to marketing department of Bata Shoe

Organization which gave us valuable information. We pay gratitude

to Bata staff giving valuable information.

We are also very thankful to SARDAR ABID ALI KHAN who

helped a lot us by giving up to date information.

We are very proud of our teacher Prof. Soofia waleed whose help

and instructions enable us to bind papers into project manner. We

are very thankful to him.

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PREFACE

The most beautiful things we can experience are the mysterious .It

is source of all true art and science

(Albert Einstein, 1930)

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

respected teacher Madam Sofia Waleed, the organization which we

took for research is:

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Vision

Focusing on satisfaction (customers, associates and

shareholders) with

Challenging spirit and flexibility, we are dedicated to

supplying latest generation cars with advanced technology,greater fuel efficiency and competitive prices, along with

Friendly and efficient after sales back up, maintaining

quality as core of all activities.

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TABLE OF CONTENT

1. CURRENT MARKET SITUATION ..... 08

1.1 PRODUCT REVIEW .... 11

1.2 MARKET REVIEW . 18

1.3 DISTRIBUTION .. 19

1.4 COMPITERS REVIEW ... 21

2. SWOT ANALYSIS ... 23

3. OBJECT AND ISSUE . 25

4. DEVELOP STRTEGY ... 26

5. ACTION PLAN (5W) . 32

6. BUGET . 33

7. REFERENCE 34

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CURRENT MARKET SITUATION OF CARS INDUSTRIES

The current market situation of car industries in Pakistan is at worstcondition. Due to following reasons

1. Leasing

At the end of December, 2006. The President of Pakistan

Pervaiz Musharraf.

Introduced new polices for leasing. Starting from 2007 the banks in

Pakistan applied strict Polices for commercialization. This policy of

strict leasing rules directly effect on the production of cars in the

industry.

The no. of sold cars in 2006 was almost one million, which reduces to

three hundred thousands.

Now a day the leasing is totally eliminated from the banking sectors.

2. Branded and refurnished cars

Sheikh Rasheed had given the license of Branded and refurnished cars in

Pakistan. Custom duty had been free for branded and refurnished cars.That is the reason; people of Pakistan purchased these cars like Vitz,

Platz, and Mini Pajaro.

CURRENT MARKET SITUATION OF HONDA

leasing and refurnished cars also have direct impact on the production of

Honda. But overall market situation Honda is better than other

companies. The annual production and growth shows that Honda ismarket leader.

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

to have a new product line in the form of Jeeps. In Japan Honda has

already lunched the series of Jeeps with the name of CRV series. But

still in Pakistan there is no Jeep of Honda available.

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In 2005-07 many refurnished Pajero and Jeeps were imported but they

could not satisfy the customers.

CAR INDUSTRY IN PAKISTAN

Honda Atlas Cars Pakistan Limited is a joint

venture between Honda Motor CompanyLimited Japan, and the Atlas Group ofCompanies, Pakistan.All dealerships are constructed in accordance with the standards defined

by Honda World over. Percentage of local parts conforms to the

government's policy. Local vendors are continuously patronized to

develop parts locally. The quality of local parts is thoroughly checked tomeet stringent international standards. We always strive to give

outstanding service to our valued customers. In addition to providing

regular service to customers, the company also regularly conducts

Service Campaigns, to facilitate customer's need for service. This has

given our customers absolute confidence in our cars, clearly evident

from the ever increasing sale volume

Customer Service CentersAll the authorized dealerships in Pakistan are a source of customer

satisfaction. The after sale is supported by the immaculate service and

the availability of spares at competitive prices for every car sold. To

facilitate the customers for any assistance they require, we have a

separate department, called Customer Relations, at the head office. This

department is supported by the subsequent Customer Relations

Officers at all dealerships. The purpose of Customer Relations

Department and Customer Relations Officers is to enable our customers

in getting any sort of help required by them.

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http://www.honda.com.pk/dealers.htmhttp://www.honda.com.pk/dealers.htm


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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. Thetrainings cover all aspects of the cars including the periodic

maintenance, diagnostics, trouble shooting and repairs according to

HONDA standards. From this we want to facilitate the customers in

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maintaining their cars in top-most condition and enjoying the comfort

and performance of the luxury vehicles they own. It is our endeavor to

have uniform service standards made available at all dealerships in

accordance with the international Honda standards. We consider the

properly maintained vehicles not only to be a source of satisfaction to

our customers; they also increase the sale value of their car.

Career

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

is the key to success in today's global market. The Power of Dreams is

alive at Honda. Our belief is that the best people produce the best

products. That's why Honda is constantly on the lookout for bright,

ambitious team players who have a strong commitment to improving

society, the environment, even themselves.

Honda offers exciting and challenging careers with competitive pay,

excellent benefits and exceptional advancement opportunities. With our

international presence in almost 200 countries and continued success

within Pakistan market, a career at Honda Atlas Cars can be both

rewarding and stimulating

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http://www.honda.com.pk/dealers.htmhttp://www.honda.com.pk/dealers.htm


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PRODUCT REVIEW

All it takes is a single glance. You stop in your tracks. The elegant

silhouette draws you forward for a closer look. You peer into the sporty

cockpit and your pulse races with excitement Your instincts are aroused

and your feel driven to grab the controls.

Performance

Honda heightens your driving enjoyment with a rarecombination of spirited engine response and exceptionalfuel efficiency. This ideal balance is achieved by Honda's

next-generation 1.8-liter SOHC i-VTEC engine - the firstentirely new Civic power plant in 17 years. ThroughHonda's advanced i-VTEC (Intelligent Variable Valve

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Timing and Lift Electronic Control) system and DBW(Drive By Wire) technology, it performs like two types ofengines in one compact unit. At high engine loads, such

as when starting from a standstill or stepping on theaccelerator, DBW fully opens the throttle while VTEC

optimizes intake valve timing to generate 2.0-liter-equivalent power. At low engine loads, such as duringhigh-speed cruising, DBW narrows the throttle openingwhile VTEC delays valve closing to achieve 1.5-liter-

equivalent fuel efficiency. Settings are intelligentlyswitched in a seamless manner to ensure smooth, linear

response at all revolutions

Engine

Type Water-cooled, In-Line 4-Cylinder

Valve Train 16-Valve SOHC i-VTEC

Fuel Supply System Multi-Point Fuel Injection

Throttle System Drive-by-Wire

Bore / Stroke (mm) 81.0 X 87.3

Displacement (cubic cm) 1,799

Compression Ratio 10.5 : 1

Maximum Horsepower(bhp @ rpm)

140 @ 6,300

Maximum Torque (lb.-ft @rpm)

128 @ 4,300

Ignition SystemDirect Ignition System with

Immobilizer

Steering

Gear Type Rack & pinion, Power assisted

Steering Wheel Turns(Lock-to-Lock)

2.67

Braking System

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Type 4 - Wheel Disc ABS

Electronic Brake forceDistribution (EBD)

O

Tires / Wheels

Tire Size 195 / 65 R 15

Wheel Size 15 X 6 JJ

Wheel TypeSteel Wheel

with Full Cover5-Spoke

Aluminum Alloy

Interior / Convenience

Interior color Grey & Beige Grey & Beige

Sun - roof X O

Steering Wheel 3 - spokes 3 - spokes

Speaker System 4 - speakers 4 - speakers

Seat Cover Material Tri cots High Grade

Safety

Supplement RestraintSystem (Airbags)(Driver & Front SeatPassenger)

X O

Seatbelts - Front O

Pre-pensioner

with EARear O O

Adjustable ShoulderAnchor (Front)

O O

High Mount Stop Lamp O O

Fog Lamps X O

Door Beams O O

High-tension Steel O O

Crumple Zones O OG - CON O O

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Is there a better way to build a compact sedan?

Hondas affirmative answer is the revolutionary new City.

The New Honda CITY

TYPE MT VARIOSteermatic1.5L

VTEC

ENGINE

TypeiDSI (Intelligence Dual &

Sequential Ignition)

SOHC, 4-Cylinder 16valve-VTEC

Fuel supplysystem

PGMF-I Programmed FuelInjection

PGMF-I(ProgrammedFuel Injection)

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Displacement 1300 1497

Compressionratio

8.8:1 10.1:1

Maximum

horsepower(KW(PS)RPM)

57 (78) / 5,800 81(110) / 5,800

Maximumtorque(N.M(KGM)RPM)

106 (10.8) / 3,000143(14.6) /

4,800

TransmissionType

Synchromeshfive forward,

one reverse

ContinuouslyVariable

Transmission

6 Position(CVT)

Steermatic (CVT+ 7 speed mode)

STEERING SYSTEM

Gear Type Rack and pinion, power assisted

Overall length(mm)

4390

Overall width(mm)

1690

Overall height(mm) 1485

Wheel base(mm)

2450

Tread Front(mm)

1455

Tread Rear(mm)

1455

Ground

clearance

160

SUSPENSION SYSTEM

Front / RearMcPherson strut with coil spring &stabilizer / H-shape Torsion Beam

BREAKING SYSTEM

Front Ventilated discs

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Rear Leading / trailing shoe drums

TYPES / WHEELS

Tire Size 165/80 R13 185/55 R15

Wheel Size 13X5J 15X6J

Enter the cockpit of the New Accord and bask issatisfaction. It engages the senses and attends of the

Driver's needs. With an array of innovative feathers, itoffers superior comfort and convenience. Accord is where

the true pleasure of driving begins

Type Water-cooled, In-Line 4-Cylinder

Engine Block Aluminum Alloy

Valve Train 16-Valve SOHC i-VTEC

Fuel Supply System Multi-Point Fuel Injection

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Throttle System Drive-by-Wire

Bore / Stroke (mm) 81.0 X 87.3

Displacement (cubic cm) 1,799

Compression Ratio 10.5 : 1

Maximum Horsepower

(bhp @ rpm)140 @ 6,300

Maximum Torque (lb.-ft @

rpm)128 @ 4,300

Ignition System Direct Ignition System with Immobilizer

Transmission

Manual Synchromesh 5 forward speed - 1 reverse

ProsmatecCompact 5- Speed Automatic (Progressive

Shift Management Technology)Steering

Gear Type Rack & pinion, Power assisted

Steering Wheel Turns

(Lock-to-Lock)2.67

Dimensions

Overall Length (mm) 4,540

Overall Width (mm) 1,755

Overall Height (mm) 1,435

Wheel Base (mm) 2,700

Tread (Front / Rear) (mm) 1,500 / 1,530

Ground Clearance (mm) High Road Clearance

Suspension

Front Control-Link McPherson Strut Suspension

Rear Reactive-Link Double Wishbone Suspension

Braking System

Type 4 - Wheel Disc ABS

Electronic Brake forceDistribution (EBD)

O

Tires / Wheels

Tire Size 195 / 65 R 15

Wheel Size 15 X 6 JJ

Wheel Type Steel Wheel 5-Spoke Aluminum Alloy

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with Full Cover

Others

Fuel tank (Liters) 50 L

Interior color Grey & Beige Grey & Beige

Steering Wheel 3 - spokes 3 - spokes

Speaker System 4 - speakers 4 - speakers

Seatbelts - Front O Pre-tensioned with EA

MARKET REVIEW

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DISTRIBUTION

3S Dealership (Sales, Service, Spare Parts)2S Dealership (Service, Spare Parts)FAISALABAD Faisalabad

Main Canal Bank Road,

Faisalabad.

Tel: (041) 731741-3

Fax: (041) 731741

Honda Chenab

Green View Colony,

Akbarabad, Faisalabad.

Tel: (041) 2603349, 2603449

Fax: (041) 2603549

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Gujranala

Honda Gujranwala

G T Road,Gujranwala.

Tel:(0431) 893481-2

HadraabaHonda Palace

Shahbaz Town,

Jamshoro RoadHyderabad.

Tel: (0221) 641178-9

Fax: (0221) 641519

Islamabad

Honda Classic

Plot 179, I 10/3, Industrial Area,

Islamabad.

Tel:(051) 4438801-02Fax:(051) 2278553

Honda Classic Lounge

Pak Plaza,Blue Area 1019 Fazal Haq Rd.

Islamabad.

Tel:(051) 2278553, 2278528

Fax:(051) 2278553

Karachi

Honda Defence

67/1, Korangi Road,Near HINO Circle, Karachi.

Tel: (021) 5805291-4

Fax: (021) 5805294Email: [email protected]

Honda Drive-In

118-C, Rashid Minhas Road,Karachi.

Tel: (021) 4992832-7

Fax: (021) 4992823

Email: [email protected]

Honda Quaideen

2,33-A-2, PECHS

Karachi.Tel: (021) 4556071-3

Fax: (021) 4554644

E-mail: [email protected]

Honda Sharah-e-Faisal

13, Banglore Town, Sharah-e-Faisal,

Karachi.

Tel: (021) 4527070, 454

Honda S.I.T.E.

C-1, Main Manghopir Road

S.I.T.E, Karachi.Tel: (021) 2577411-2

Fax: (021) 2577412


Fax: (021 Honda South

1B, Sector 23, KorangiIndustrial Area Karachi.

Tel: (021) 5050251-4

Fax: (021) 5064599

) 4526758Email: [email protected]

Lahore

Honda City Sales75 B, Block L,

Ferozpur Road Gulberg III Lahore.Tel: (042) 5881881-3

Fax: (042) 5831147

Honda Fort

32 Queen's Road,Lahore.

Tel: (042) 6314162-3

Fax: (042) 6361076Email: [email protected]

Honda Yakata

202-Y Commercial Area,DHA Lahore.

Tel: (042) 2122200-3, 8444491-94

Fax: (042) 5892437

Honda Point

Main Defence Road,

Lahore Cantt.

Tel: (042) 5700994-95Fax: (042) 5700993

Mire pur

Honda Canal

13-B, K Block, Shokat Khanum Bypass

Johar Town, Lahore.Tel: (042) 5314168

Fax: (042) 5314169

Honda Empire

Mian Muhammad Road,

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Quaid-e-Azam Chowk,

Mirpur Azad Kashmir.

Tel: (058610) 51500,51502-03

Multan

Honda Breeze63, Abdali Road

Multan.

Tel: (061) 588871-3Fax: (061) 588874


Pashwar

Honda North

Main University Road,

Peshawar.

Tel: (091) 854901Fax: (091) 854753

Rawlapindi

Honda Center

300- Peshawar Road,

Rawalpindi.

Tel: (051) 5564525-28Fax: (051) 5564524

Sargodha

Honda Citrus Field

7 KM, Lahore Road,

Sargodha.

Tel: (048) 3226067,3226290,3226089

Fax: (048) 3226196

Sialkot

Honda Falcon

Pakki Koli, Daska Road,Sialkot.

432) 269656

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mailto:[email protected]:[email protected]


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Fax: (

32) 262578 COMPITERS REVIEW

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

Suzuki

Toyota

Mitsubishi

Mercedes

BMW

COMPETITION

The fear of threat of competitors is an increase strategy to deal with

competition soon finds itself out of the market. As with other

businesses, competition also affects the business of Competition isincreasing now a days due to many factors. Some are mentioned as

.Profit

.Accessible Technology

.Globalization.

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

Models entered in the market from the last few years. The competitionbetween the new entrants is fierce and already margins have collapsed.

Technology brings a revolution in every field of life. Machines are

used for better development of structure. Competition is also increasing

because of many multinational and local companies entered in this

business.

Competitors Analysis

The competition environment has a large impact on the marketing operations of

the company Before launching a product it is necessary to analyze the


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competition environment of the target market. If there is a threat from

large competition, than a suitable marketing strategy has to be worked

out to overcome the problems. Product differentiation or price

leadership can lead to success. Current Industry competition is high

because of the Government policies and threat of new strong entrants.We have three types of competition which are as follows

Brand competition

Form competition

Generic competition

Brand Competition

This competition deals directly with the brand name Different brands

of are available in the market who are directly Honda brand

competitors. Competitors are called sum of those companies which are

in same market, producing same product at same prices. When we

analyze the competitors we have to keep four important aspects of the

competitors in our mind.

1. IDENTIFY THE COMPETITORSIn identify study an organization has to identify the specific

competitors of identify its competitors, for this purpose Honda

classified competitors into two classes.

A.INDUSTRIAL COMPETITORS.

It means when Honda launches cars then they think about the Service

and private cottage industry.

B. MARKET COMPETITORS.

It means when we come with tea in the market we are not going to

compete only with Tapal but also with Coffee. This example helps us

to understand market competitors but when we talk about the Honda

product in the market we see there is not other substitute of cars as

coffee for tea hence all the industrial competitions are also the

competitions of Honda in market.


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2. PLAYERS OF INDUSTRY.

Honda categories the business according to this concept into four types

.Market Leader.

.Market Follower.

.Market Challenger

.Market Nicher

In it we have to mention that what type of player our product to be soHonda is doing this we compare in realistic manner then we see Honda

is market leader, Toyota is its challenger and Suzuki is market nicher.

SWOT ANALYSIS

SWOT ANALYSIS OF HONDA

STRENGTHS

.Quality of Cars

.Comfort ability of Cars

.Good Will

.Production Technology.

WEAKNESS

.Old Designing

.Lack of response (To and from customer)

Low Advertisement through Adds


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Low quality of body structure

OPPORTUNITY

.Export business expansion

.Increasing ratio on quality conscious people.

Honda can increase product line by introducing jeeps

THREATS

.Govt. unstable policies due to political unsuitability

.High market share of branded and refurnished cars

.Limited purchasing power.

Strict leasing polices may not be removed by the Govt.

Duty free agreement between China and Pakistan


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OBJECTIVES AND ISSUE

The objective of our marketing plan is to introduce the

executive class product in the form of Honda Jeep.

To maintain the repute of Honda in the

Market

To introduce latest safety tools in car

industry

To introduce new design including

interior and exterior

To create fully automatic function

replacing manual function

To protect environment by introducingsmokeless engine


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MARKETING STRATEGYPOSITIONING

Honda is placing itself in the country with the help of its different

departments. Marketing divisions has its distribution and selling

channels comprising

PRICING STRATEGY

As the Honda have relatively have price than other companies, so tolunched ABBAKZ-1 its price will be 4.5 million.

PRODUCT STRATEGY

The quality of HONDA product is good but knows there are many

competitors in the market. We have to develop the following features

in ABBAKZ-1, .

Interior

.Durability

.Comfort ability

.Reliability


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Colors

Vogue silver metallic

Granada Black Pearl

Frost White Charcoal Grey metallic

Canyon Stone silver metallic

Silver Grey

Cool Red

Cyprus Blue metallic

Advance Safety System

This advance safety system will protect the passengers in case of

accident,

Advance Breaking System


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Comfortable Cockpit

DISTRIBUTORS

In order to manage distributors sales

1. Constantly control weekly / sales estimate

2. Advance orders intake as per estimates

4. Ship the supplies to distributors as per schedule.

5. Ensure back up stock in warehouse for managing timely supply.

6. Timely collection of outstanding as per wholesale policy.

7. Control and settle distributor's customers claims as per policy.

8. Control, analyze profitability of each channel.


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9. Ensure price inventory of stocks held by distributors for reduction

increment and sales action.

10. Study and keep track of competition activities.

11. To intimate sales promotions and executive. The same instandardized form in distributors dealer store.

12. To help all dealers, distributors informed about shoe collection

PROMOTION

ADVERTISING

The main purpose of the advertising department is to increase the saleand enhance company image.

We have prepared three advertisements forABBAKZ-1,

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

o Second ad will on air 14th august 2008.

o

Thirst ad will be on air 30

th

august 2008.


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There will be hundred bill boards erected in the mentioned cities.

PROMOTIONING THROUGH

CONSTRUCTIVE SOCIETAL EVENTS


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In this term Honda Pakistanis latest gesture of support for community

projects in the country including sponsorship of a cancer walk

organized by "cancer research foundation" to raise funds for this

wordy cause. Honda banners featuring inspiring slogans to create

awareness amongst general public were highlighted which enhancedcompany's image, as the event received excellent projection through

print and electronic media.

BSO has a contract with the leading advertising company "Interflow".

Both are collectively enhancing consumer's preferences through

advertisement. Interflow is handling the most part of advertising.

The advertisement is prepared for this purpose will be on air on 30 th

august.

SALES PROMOTION

We have prepared the sale promotion planning which is following

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

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


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ACTION PLAN

The jeep will be lunched according to following plan.

The ABBAKZ-1 will be lunched on 14th August. 2008.

The opening ceremony ofABBAKZ-1 will be held on 14th august

in Pearl Continental Hotel Lahore.

The ABBAKZ-1 will be available in five cities of Pakistan,

Lahore, Karachi, Islamabad, Peshawar.

For advertisement we have three ads ofABBAKZ-1


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

Second ad will on air 14th august 2008.

Thirst ad will be on air 30th august 2008.

The sign boards will be erected first August 2008 in five famous

places of Lahore. Century Tower, Calvalry Ground, Garden

Town, Pace, Thokar Niyaz Beig, and Azadi Chowk.

Budget

Description Price Total

Bill Boards 20000x100 6 Million

TV ads preparation

Ads display on Geo

500000x3

100000x3

3.5 Million

Sales Promotion

(TV+Nikion)+

TV=30000x100

Nikon=10000x100

4 Million

New Paper Ads 10000x100 1 Million

Fund For Charity 100000/ month 1 Million


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Cost of Production 3x2000 6000 Million

Total 6016.5 Million

Details of Bill Boards

Size Rate Total

30x90 feet 20000/ per day 1.8 Million

20x60 feet 10000/ per day 0.9 Million

Cost of Production

The cost for making a ABBAKZ-1 is 3 million. The first production

will be 2000.

Revenue/MillionExpenses per year/

MillionProfit/Million

4.5x2000=9000 13.5x12=162 9000-6016.5=2983.5

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


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REFERENCE USE

WWW.NORTHENGLANDS.COM

PRICIPLE OF MARKETING

PHILIP KOTLER CARY ARNSTRONG

11 EDITIONS

PRICE CONSIDRATION = Pg 307

Chapter 15 Advertisement and sales promotion Pg 455

Chapter 17 Competitive advantages

21562675 Marketing Plan on Honda Atlas Pakistan

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