Submitted to:Ma’am Sahrish Saba ZafarSubmitted by:Abdullah Saeed Khan BBSE-14-01M Ahtisham Zafar BBSE-14-02Hamza Saleem BBSE-14-34M Hamza Latif BBSE-14-40BBA (Hons) Evening, 5th SEMESTER

Bahauddin Zakariya University,

Sahiwal Campus

Marketing Plan Of Honda Pakistan

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ACKNOWLEDGEMENT

I would like to express my special thanks of

Gratitude to my teacher Ma’am Sahrish Saba Zafar,

Who gave me the golden opportunity to do this

Wonderful project of Marketing Management

On “HONDA ATLAS”, who also help me in

Completing my project. I came to know about so

Many new things I am really thankful to them.

Secondly I would also like to thank my parents

And friends who helped me a lot in finalizing

this project within the limited time frame.

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Executive Summary

Being founded in 1948 in Japan by Soichiro Honda, the organization has come a long way from motorcycle manufacturer at the early stages to manufacturing high power electronic items and technologically sound automobiles, trucks etc. in a short duration after its foundation, Honda motors became the leading automobile industry, standing not only in the top market players in its native market but leaving behind the regional competitors and competing at the global level with automobile giants like GM, Ford, Mercedes Benz and Chrysler etc. Being the first amongst the Japanese manufacturing companies to expand its operations globally, Honda faced numerous challenges in making its products acceptable by the European and American customers who were used to big, fuel consuming expensive cars. Honda played it beautifully by presenting low cost, high quality less fuel consumption vehicles, and now with majority of its sales volume generating outside the native region and approximately half of the manufacturing facilities outside Japan, the basic principle remains the same i.e. technologically advanced low cost vehicles. With more than 400 subsidiaries and sister concern around the world, Honda has managed the famous Japanese management theory of JIT (just in time), also the management systems and decision making processes applied by the organization has brought quite a stir in the management theorists of the west, who found it imperative to study these and make comparison with those applied in their region. Though, Honda has also shifted from time to time to some of the western management concepts but with some modification, the organization still adheres to the basic Japanese management systems of giving human relationships most importance and doing collective decision making and sharing responsibilities down the line. In this case study, it was studied how Honda motors handles various managerial dichotomies in organizational hierarchy, new product development, JIT system & supply chain, product strategies like designing and positioning, and planning & intra-organizational and inter-organizational relationships. It has emerged by this study that Honda has managed and reconciled these dichotomies successfully though some failures were also faced but the overall performance of the organization can be termed successful.

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Table of ContentsHISTORY...................................................................................................................................................6

Honda Japan.............................................................................................................................................6

Honda Pakistan:........................................................................................................................................7

Introduction........................................................................................................................................8

Competition............................................................................................................................................9

Slogan:..................................................................................................................................................9

New Product............................................................................................................................................9

Honda Salvus..........................................................................................................................................10

Interior:.................................................................................................................................................10

Exterior................................................................................................................................................10

Specification......................................................................................................................................10

Transmission...................................................................................................................................10

Colors..................................................................................................................................................14

Safety...................................................................................................................................................14

Honda Current Situation........................................................................................................................14

STP...........................................................................................................................................................14

Segmentation......................................................................................................................................14

Geographic segmentation..............................................................................................................14

Demographic segmentation...........................................................................................................15

Psychographic segmentation........................................................................................................15

Behavioral segmentation...............................................................................................................15

Target Market......................................................................................................................................15

On the basis of Demography.............................................................................................................15

On the basis psychographic...............................................................................................................15

Positioning...........................................................................................................................................16

Market growth:.........................................................................................................................................16

SWOT Analysis:......................................................................................................................................16

Strengths..............................................................................................................................................16

Weaknesses........................................................................................................................................16

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Opportunity..........................................................................................................................................17

Threats.................................................................................................................................................17

Marketing mix strategies........................................................................................................................17

4P’s.......................................................................................................................................................17

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HISTORYHonda JapanFrom a young age (7), Soichiro Honda had a great interest in automobiles. He worked as a mechanic at a Japanese tuning shop, a self-taught engineer; he later worked on a piston design which he hoped to sell to Toyota. The first drafts of his design were rejected, and Soichiro worked painstakingly to perfect the design, even going back to school and pawning his wife's jewelry for collateral.

Eventually, he won a contract with Toyota and built a factory to construct pistons for them, which was destroyed in an earthquake. Due to a gas shortage during World War II, Honda was unable to use his car, and his novel idea of attaching a small engine to his bicycle attracted much curiosity. He then established the Honda Technical Research Institute in Hamamatsu, Japan, to develop and produce small 2-cycle motorbike engines. Calling upon 18,000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart by war, Soichiro received enough capital to engineer his first motorcycle, the Honda Cub. This marked the beginning of Honda Motor Company, who would grow a short time later to be the world's largest manufacturer of motorcycles by 1964.

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Honda Pakistan: Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company Limited Japan, and the Atlas Group of Companies, Pakistan.

The company was incorporated on November --, 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.

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IntroductionHonda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company Limited Japan, and the Atlas Group of Companies, Pakistan. The company was incorporated in 1992 and joint venture agreement was signed in 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. 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 Dealerships Network has expanded and now the company has sixteen 3S (Sales, Service and Spare Parts) and thirty 2S (Service and Spare Parts) Pit stops network in all major cities of Pakistan.

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.

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CompetitionThe competitors of HONDA includes all the local and foreign Cars manufacturers including

Suzuki Toyota Mitsubishi Mercedes BMW

Major type of competition:

Brand Competition TOYOTA, MITSUBUSHI.Product Competition Other automotive manufactures.Generic Competition Rental cars, Motor bikes, Bicycles.Totals Budget Competition Vacations, Debit Reduction, Home remodeling

Slogan: "The power of dream” means that an creative ideas which our company has provided to our customers for satisfying their different need in each region in order to produce new product, new technology and reasonable price for them.

New Product

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Honda Salvus

Interior: Rear arm rest with cup holder Console box with rest arm Power window Electronic parking brake with auto brake hold Beautiful interior seats Push start

Exterior Beautiful aloyrim Front inner headlight Side mirror indicators Sunroof Shark fin Antenna

SpecificationEngine

Type SOHC, 16 valve 4-cylinder,i-VTECFuel Supply System EFI (Electronic Fuel Injection)Bore / Stroke (mm) 73 x 88Displacement cc(cm3) 1499Compression Ratio 10.5 : 1Maximum Horsepower kW(PS)/rpm 88(120) / 6600rpmMaximum Torque N.m(Kg.m)/rpm 145(14.8)/4800rpmDrive By Wire (DBW) O

Transmission

1.5L Compact 5-Speed Prosmatec   (Progressive Shift Management Technology)

Steering

Gear Type Rack & PinionEPS (Electronic Power Steering) O

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Dimensions

Overall Length (mm) 4,395Overall Width (mm) 1,695Overall Height (mm) 1,480Wheel Base (mm) 2,550Tread (Front / Rear) (mm) 1,492 / 1,475Ground Clearance (mm) 160Turning Radius 5.3Fuel Tank (Liters) 42

Suspension

Front Macpherson Strut Suspension with StabilizerRear Torsion Beam Axle with Stabilizer

Braking System Anti-Lock Breaking System (ABS)

Front DiscRear DrumParking brake type Electric parking brake(eps)

Tires / Wheels

Tire Size 175 / 65 R 15Wheel Size 15 X 5 JWheel Type Aluminum AlloySpare Wheel Steel

Exterior

Grill ChromeBody-Colored Bumpers OFuel Lid (Push-Open) OBody Colored Mud Flaps(Front / Rear) O / OBody-Colored Door Handles OTurn Indicator On Side Mirrors OBody-Colored Door Mirrors O

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Multi-Reflecting Crystal Head / Rear Lights OWipers Variable IntermittentRoof Antenna MicroFog Lights (Halogen)

Interior / Convenience

Interior color TitanElectrically Adjustable Side Mirrors OPower Door Locks OPower Windows OPower Steering with Tilt (EPS) OSteering Wheel 3 - spokesSteering Panel SilverTecho Meters OFuel Consumption Display ORemaining Fuel Disply OKeyless Entry ONavigation / Multimedia System yesSpeaker System Front & Rear 4 - speakersFoot Rest ODay / Night Mirror OSunvisor with Vanity Mirror OWindshield Wipers (Intermittent) OAir Conditioning System ORear Window Defroster / Defogger O / OSeat Cover Material LeatherSeat Back Pocket (Assistant Side) ORear Seat Head Rest ORear Seat Arm Rest with Cup Holder OFront Console Box with Arm Rest OCup Holder  OAshtray (Portable) ODoor Pockets O

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Cigarette Lighter OGlove Compartment OTrunk Light OTrunk Capacity (Liters) 506

Safety

Emission Standard Euro-4High Mount Stop Lamp OSeatbelts Front / Rear O / OAdjustable Shoulder Anchor (Front) OKey Alarm ODriver Seatbelt Warning ODoor Open Warning OTrunk Open Warning OFuel Consumption Warning OLight-On Reminding Alarm ODoor Beams OCrumple Zones OAuto door lock with speed OAuto Brake Hold (ABH) OVehicle Stability Assist (VSA) OReverse Camera OptionalAnti-Lock Braking System (ABS) (with Electronic Brake-Force Distribution)Sensor warning before accident OSRS Airbags - Driver & Front Seat Passenger 2SRS Airbags - i-SRS Front Dual Airbags 2SRS Airbags - Side Curtain Airbag 4

Seats BeltsDriver:3pt ELR, Pretensioner,Front Passenger:3pt ELR Pretensioner,Rear:3pt ELRx2,2-ptx1

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Colors Pearl White Black Sporty Blue Metallic Rally Red Silver Metallic Modern Steel Metallic

Safety SRS Supplement Restraint System ABS Antilock Breaking System Break Over Ride System Passive Safety Anti-theft Braking / Drive Control (VSA)

Honda Current Situation This shows that Honda is doing its best to keep up with the current social trends, one of

which is being “environmentally friendly By producing such cars Honda is able to prove that it is a thoughtful organization. The top three best-selling cars were Honda City, Civic and CR-Z Honda is also offering special gifts for their customers and any cash earned on those gifts

will go to the Haiti relief fund

STP

SegmentationThe company is providing such products, which are good for every segment of society. These vehicles have good reputation and millions of cars are sold every year across the world. The latest models of this vehicle will grab the attention of its clients and there are different features of the vehicles in every new model, which are great fun for the cars lovers.

Geographic segmentationThe first decision Honda's marketers would make is which cars to market in which countries. Europeans, for example, drive much smaller cars than Canadians. Within a country like Canada, Honda might also segment the market into rural and urban areas. People who live in rural areas are more likely to buy a Honda Pilot than a Honda S2000.

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Demographic segmentationDemographics is a general term for any measurable information about consumers that allows marketers to group them into segments. Age is a relevant demographic for car buyers. The very young and the very old do not drive, and in between, say, from ages 20-70, the choice of car will be partly influenced by the person's age. Take the Honda Civic Vti Oriel, for example. A 20 year old is more likely to choose this car than a 70 year old. There's more to demographics than simply age, though, such as segmentation by gender. Are women more likely to buy certain Honda models than men? Are men more likely to buy certain Honda models than women? There's also segmentation by income. A person's income level is a major influence on their choice of car. A young man just starting his career, or an older man working in a low-paying job, might desire an Acura NSX, but at RS.89,000., neither could afford to buy it. Family status, whether a person is married and whether they have children, is also a demographic factor that influences their choice of car.

Psychographic segmentationPsychographics divide the market into groups based on lifestyle and personality. Here we have the heart of the car marketer's segmentation strategy. Look at the Honda Fielder and describe the type of person who you would expect to see driving it. Now look at the Acura RSX and describe who you would expect to see driving it.

Behavioral segmentationBehavioral segmentation divides the market according to how they use the product. Some products are purchased according to an occasion, such as turkey at Thanksgiving, or children's clothing in late August and early September. The market for sporting equipment, for example, is segmented according to sport and skill level within that sport. For cars, the market can be segmented behaviorally according to benefits sought. The benefits provided by a Honda Fielder mini van are very different from the benefits provided by a small car such as the Honda Civic Vti Oriel..

Target Market

On the basis of Demography Age: Young, Middle, Elderly Gender: Male and Female Profession: Businessman, industrialists, bureaucrats, any successful professional Income: Upper-Middle income group, Upper Income Group

On the basis psychographic Life Style: Exciting, Trendy Social Class: Upper-Middle, Upper Class

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Positioning The Perfect and safe car High quality product Benefitting society Creating innovative product

Market growth:Honda city sales in September: company records 23.3% growth in domestic sales. The company sold 18,509 units in September as compared with 15,015 units in the corresponding month last year. Honda sold 759 units of its small car Brio, while Amaze and City recorded sales of 6,577 units and 5,702 units, respectively. The company's new premium hatchback Jazz recorded a sale of 4,762 units in September and Mobilio's (its first MPV) sales stood at 643 units. Besides these, Honda sold 66 units of CRV, its sports utility vehicle (SUV).

Exports of Honda in September, 2015 stood at 782 units, taking the company's total sales in the month to 19,291 units.

In the first half (April -September) of 2015-16, Honda registered a cumulative domestic sales of 97,217 units against 88,200 units for the corresponding period last year, recording a growth of 10%.

SWOT Analysis:

Strengths1. Name recognition2. Fuel efficient and good looking car3. Safe drive4. Highly innovative5. Less air resistance due to shape6. Customer satisfaction

Weaknesses1. Unfocused Product Line2. Tough competition from cheaper imported cars3. Higher cost due to safety sensors

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Opportunity1. Concentrating on smaller more fuel efficient car2. Different types of engine swaps are possible.3. Future of the Automotive industry4. Lower version of City can be launched to tap more market5. Premium Taxi/Cab Market

Threats1. High inflation rate2. Smuggling of auto parts3. Imposition of high taxes4. Intensity of rivalry among competitors worldwide5. Perceived to be overpriced

Marketing mix strategies

4P’s1. Product: Honda City, Honda Civic, Honda Accord, CR-V, CR-Z2. Place: Exclusive Showroom, Dealers, Franchises3. Price: Depend on Product Range4. Promotion: Ads, Social Welfare, Events

Price of Product

Price Details Model Name

Honda Salvus- 1.5 1,815,000

Transmission Prosmatec Transmission

Destination Lahore 4,000

Optional Feature

Utility Package 15,600

Extended Warranty 9,000

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Modulo Kit 49,800

You are Tax filer No 100,000

TOTAL PRICE: PKR 1,993,400

Recommendations In order to increase motivation among employees they should provide incentives such as

badges for employee of the month. To reduce employee turnover Honda should have a strong organizational culture. They

can enforce this by holding annual seminars for employees. In order to maintain a strong customer relationship and get constructive feedback they

should create online questionnaires and chat rooms. They should be able to adapt to different styles of management as each country has its

own management styles.

ConclusionWith such features this car is the best for the people who are willing to pay for the Safety, Quality and luxurious looks. This car will suit you for all the purposes; it is hard to find any other car with such specifications. So, buy this car to get a great lifetime experience.

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