HONDA CIVICHONDA CIVIC

By:Faiza Tariq

Sidrah Kaleem

TABLE OF CONTENTSHISTORYHONDA CIVIC'S HISTORYFACTORYVISION STATEMENTMission statementHONDA'S GOALSCOLOURS AVAILABLEENVIRONMENTAL POLICYCLAUSES OF THE ENVIRONMENTAL POLICYORGANIZATION STRUCTURECOST OF PRODUCTION: 2000-2006SALES: 2000-2006PROFIT: 2000-2006DIRECT AND INDIRECT VARIABLES AFFECTING SALES OF HONDA CIVICCONSUMERS' PERCEPTION – PRODUCTS' IMAGEQUALITY, INNOVATION, R&D, ENVIRONMENT-FRIENDLYTHE FOUR P’S4 Ps-PRICEPRICE LIST 2006PRICE LIST 2006-REBORN4 Ps-PROMOTIONPROMOTION-LEASING SCHEMESPROMOTION-ADVERTISEMENTSPROMOTION-DISTRIBUTIONPROMOTION-DISTRIBUTION-MAPPORTER’S FIVE FORCESAFTERSALESSPARE PARTSSITUATION ANALYSIS (SWOT) SWOT:STRENGTHSWOT:WEAKNESS SWOT:OPPORTUNITYSWOT:THREATRECOMMENDATIONSCONCLUSIONREFERENCES

Striving to Become a Company that People Will Want to Exist Striving to Become a Company that People Will Want to Exist

HISTORYThe Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company Limited, Japan and the Atlas Group, Pakistan.The company was incorporated on November, 1992 and joint venture agreement was signed on August, 1993.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.Since then the company has 16 3S(Sales, Service and Spare Parts) and 30 2S(Service and Spare Parts) Pit stops network in all major cities of Pakistan.

The Honda Civic is an automobile manufactured by Honda.

It was introduced in July 1972.

First generation (1972-1979)

Second generation (1980-1983)

Third generation (1984-1987)

Fourth generation (1988-1991)

Fifth generation (1992-1995)

Sixth generation (1996-2000)

Seventh generation (2001-2005)

Eighth generation- CIVIC REBORN (2006)

Factory & Head Office:

43-KM, Multan Road, Manga Mandi, Lahore.

VISION STATEMENTFocusing 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.

Mission statement “To be a dynamic, profitable and growth

oriented company through market leadership, excellence in quality and service adding value to the shares and maximizing exports. To give attractive return to business

associates, share-holders as per their expectations and market value and

employees according to their abilities and performance, and to be good corporate citizen to fulfill its social responsibilities.”

HONDA believes that each person working, or coming in touch with our company directly or through our products, should share a sense of joy through the experience. This feeling is expressed as “Three Joys”. HONDA’S goal is to provide joys to those who:

Buy their Products.Sell their Products.Produce their Products.

COLOURS AVAILABLEGreen Metallic (NEW)

Cool Red (NEW)

Granite Verde Metallic

Cyprus Blue Pearl

Charcoal Grey Pearl

Vogue Silver Metallic

Frost White

Grenada Black Pearl

Canyon Stone Silver

ENVIRONMENTAL POLICY

• HONDA ATLAS CARS (PAKISTAN) LIMITED, being responsible member of society considers the

preservation of the global environment as a crucial concern.

Our environmental philosophy is firmly based on the following guidelines.

•Recognize the impact of our activities, products and services on environment.

•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 awareness and understanding about environment issues among our associates.

•Commitment to continual improvement of the environmental performance and review of the environmental management system to ensure its suitability, adequacy and effectiveness.

•Keep public and others interested parties informed on our environment performance, if deemed necessary.

YEAR COST (Rs.)

2000 5389786000

2001 4583768000

2002 4356892000

2003 5747659000

2004 8602391000

2005 16304182000

2006 24471184000

COST OF PRODUCTION

0

1000000000020000000000

30000000000

2000 2001 2002 2003 2004 2005

YEARS

RUPE

ES

YEAR SALES (Rs.)

2000 7985868000

2001 5859894000

2002 5878904000

2003 6519069000

2004 9358369000

2005 16587217000

2006 25638698000

0

5000000000

10000000000

15000000000

20000000000

25000000000

30000000000

2000 2001 2002 2003 2004 2005 2006

YEARS

SALE

S

SALES

YEAR PROFIT (Rs.)

2000 889845000

2001 875678000

2002 703698000

2003 656154000

2004 620193000

2005 258629000

2006 1133704000

PROFIT

0

5000000001000000000

1500000000

2000 2001 2002 2003 2004 2005 2006

YEARS

RU

PE

ES

SALES

PORTER’S5

FORCES

THEFOUR

Ps

QUALITY

INNOVATIONR & D

AFTERSALES

SERVICESCONSUMER

PERCEPTION

BARGAININGPOWER OF

CUSTOMERS

THE BARGAINING

POWEROF

SUPLIERS

THETHREAT

OFNEW

ENTRANTS

THETHREAT

OFSUBSTITUEPRODUCT

THEINTENSITY

OFCOMPETITIVE

RIVALRY

PROMOTION

PLACE

PRODUCT

PRICE

CUSTOMERSATISFACTION

LEASINGSCHEMES

ADVERTISEMENTSDISTRIBUTION

CONSUMER PERCEPTIONFrom 1972 to 1974, the Civic was awarded "Car of the Year Japan." In 1973, the Civic ranked third in Europe’s "Car of the Year" awards.It also took the top prize among imported vehicles in the U.S. Road Test magazine’s "1974 Car of the Year.“The Civic was Motor Trend's Import Car of the Year for 1980[4] as well as its 2006 Car of the Year . The Civic has been on Car and Driver magazine's annual Ten Best list six times, in 1985, 1988 through 1991, and 1996. The Civic GX, a natural gas version of the vehicle was named Greenest Car of 2005 by the American Council for an Energy Efficient Economy. In November 2006, the Civic received the prestigious "Car of The Year" award from Brazilian magazine Auto Esporte.

FIRM’S IMAGE IN PUBLIC

STATUS SYMBOLMAINLY A SPORTS CAR…USED FOR RACINGMOSTLY YOUNG GENERATION HAS A TASTE FOR IT WITH

EXCEPTIONS, OF COURSE.

QUALITY

INNOVATION

R & D DEPARTMENT

Environment friendly products

THE FOUR P’S

PRICE

PROMOTIONLEASING SCHEMES

ADVERTISEMENT

DISTRIBUTION

PRODUCT

PRICE

PRICE

PRICE LIST : 2006

HONDA CIVIC (PREVIOUS MODEL)

MODEL

CAPACITY SPECIFICATIONS PRICE (Rs.)

CIVIC VTI

MT (UG)

1590 CC Programmed fuel injection with VTECH engine, adjustable steering, power windows, flat floor, 10 CD changer, keyless door entry, retractable door

mirrors, full leather interior, back head rest, 4-wheel disk brakes with ABS (Anti Lock Braking System), Dunlop Radial Alloy wheels with 185/15

1182500

CIVIC VTI

MT SR

1590 CC Programmed fuel injection with VTECH engine, adjustable steering, power windows, flat floor, 10 CD changer, keyless door entry, retractable door

mirrors, full leather interior, back head rest, 4-wheel disk brakes with ABS (Anti Lock Braking System), Dunlop Radial Alloy wheels with 185/15, SUN

ROOF

1192500

CIVIC VTI

PT

1590 CC VTI with PROSMATEC transmission

(Progressive Shift Management Technology)

1232500

CIVIC VTI

PT SR

1590 CC With PROSMATEC TRANSMISSION, programmed fuel injection with VTECH engine, adjustable steering, power windows, flat floors, 10 CD changer, keyless door entry, retractable door mirrors, back head rest,

sunroof, 4-wheel disc brakes with ABS (Anti Lock Braking System), Dunlop Radial Alloy Wheels with 185/15

1282500

CIVIC VTI PT

SR

1800 CC Programmed Fuel Injection with VTECH Engine, PROSMATEC Transmission, Adjustable Steering, Power Windows, Flat Floor, 10

CD Changer, Keyless Door Entry, Retractable Door Mirrors, 4 Wheel Disc Brakes with ABS (Anti Lock Braking System), Sun Roof, Map

light and Driver Seat Height Adjuster

1282500

HONDA CIVIC (REBORN)

MODEL CAPACITY SPECIFICATIONS PRICE (Rs.)

CIVICi-VTEC (MT)

1800 CC SOHC i-VTEC Engine, Telescopic 3 Spoke Steering, Flat Blade Wipers, Multiplex Meter, Organ Type Accelerator, Sliding Arm Rest, Z-Arm

Parking Lever, Driver Seat Height Adjustment, ABS with EBD (Electronic brake force distribution)

1330500

CIVICi-VTEC

(PT)

1800 CC i-VTEC with Prosmatec Transmission (Progressive Shift Management Technology)

1370500

VTI ORIEL (MT)

1800 CC i-VTEC with sunroof, Indecated Retractable door Mirrors, Keyless Door Entry, 10 CD Changer, SRS (Air Bags), Fog Lights, Alloy Wheels with

195/65 R 15

1460500

VTI ORIEL (PT)

1800 CC VTI ORIEL with Prosmatec Transmission (Progressive Shift Management Technology)

1500500

PROMOTION

LEASING SCHEMESUNION BANK (NO PROMO/REGISTRATION FEES)UNITED BANK LIMITEDBANK AL-HABIBHABIB BANK LIMITEDPRIME BANKASKARI LEASING BANKSAUDI PAK LEASING BANKMUSLIM COMMERCIAL BANKCITI BANK

DOWN PAYMENTS: MINIMUM 10%NO. OF INSTALLMENTS: MONTHLY (FROM 1yr-7yrs)INTEREST RATES: FROM 12.49% TO 15.49%INSURANCE:

EFU COMPANY: 4% AIG COMPANY: 3.95% ADAMJEE COMPANY: 3.92%

ADVERTISEMENTSBILLBOARDS: KALMA CHOWK, LAHORE

PROMOS ON INTERNATIONAL CHANNELS BEFORE AND IN THE START OF LAUNCH

IT WILL REVERSE YOUR THINKING….ALL IT TAKES IS A SINGLE GLANCE. YOU STOP IN YOUR TRACKS. THE

ELEGANT SILLHOUETTE 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.

TAKING THE LEAD….HONDA CREATED A SMOOTH, CONTOURED BODY THAT SLIPS

THROUGH THE AIR WITH MINIMAL RESISTANCE. THE HIGHLY PRACTICAL RESULTS ARE GREATER STABILITY AT HIGH SPEEDS, IMPROVED OVERALL FUEL EFFICIENCY AND LOWER WIND NOISE. THE AIR FLOWS SMOOTHLY OVER THE FRONT UNDERSPOILER AND ANGLED WINDSHIELD TO SHARPLY CUT OFF REAR; IT PASSED THE SIDES UNDISTURBED THANKS TO THE REDUCED WHEEL ARCH CLEARANCE: AND IT STREAMS BENEATH THE CHASSIS WITH MINIMAL TURBULENCE FROM THE SMOOTHER AND FLATTENED UNDERPANELS.

DISTRIBUTION

FOR EXAMPLE ONLY TWO AUTHORIZED DEALERS IN LAHORE:HONDA CITY SALESHONDA FORD

PORTER’S FIVE FORCES

AFTER SALESCustomer Service Centers

FREE SERVICES

three FREE CHECK-UP SERVICES

Repair and Maintenance

WARRANTIES

SPARE PARTS

HONDA GENUINE PARTS

Buy 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. 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.

SITUATION ANALYSIS (SWOT)

STRENGTH

HONDA CULTURE

HONDA CAPACITY UTILIZATION

SUPERIOR TECHNOLOGY

SKILLED LABOUR FORCE

DIFFERENTIATED PRODUCTS

SOUND CAPITAL STRUCTURE

TYPICAL JAPANESE MANAGEMENT STYLE

INNOVATION: SEPARATE R&D DEPARTMENT

WEAKNESS

SHORT PRODUCT RANGE

LATE ENTRY

EXPENSIVE SPARE PARTS

LIMITED PRODUCTION CAPACITY

OPPORTUNITY

RISING DEMAND FOR LUXURIOUS CARS

LACK OF COMPETITIVE RIVALRY

BAN ON RECONDITIONED CARS

THREAT

CHANGE IN THE POSITIONING OF TOYOTA

POLITICAL INSTABILITY

DERIVED DEMAND

ELASTIC DEMAND IN SHORT RUN

RECOMMENDATIONS

MUST INCREASE PRODUCTION; LOWER PRICES FURTHER (a fractional decrease) – increased purchasing power of higher middle class may boost sales

A bit more ACTIVE advertisement campaign.

CONCLUSION• Number of Variables affecting sales.

• Higher demand must be met with higher supply.

• More active ad campaign.

• Environment-friendly products – positive image of the firm in public

• Status symbol – luxury product/superior good.

REFERENCEShttp://research.cars.com/go/crp/buyingGuides/Story.jsp?year=New&section=Passenger&subject=Passenger&story=compact&aff=www.honda.com.pkhttp://en.wikipedia.org/honda_civicGeneral Manager, Honda Atlas Cars Pakistan Limited and his team.