Seminar in Mkting Report

8/3/2019 Seminar in Mkting Report

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Honda Atlas Cars Pakistan Limited

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Seminar in Marketing

Project Report on Honda Atlas Cars Pakistan Limited

Submitted to:

Miss. Benish Sarwar

Submitted by:

Alia Athar MBS0922

Ahsan Yameen MBS0932

Zeshan ur Rahman MBS0946

Saba Pervaiz MBS0949

M. Nomaan MBS0950

Ali Yazdan MBS0952

MBA 5th

Semester

Session 20092012

Bahauddin Zakariya University SubCampus Sahiwal.


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Introduction of the Company

Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company Limited

Japan, and the Atlas Group of Companies, Pakistan. The company is listed on Karachi, Lahore

and Islamabad Stock Exchanges.The principal activities of this company include assembling,

manufacturing and selling of passenger cars and spare parts. The company has introduced four

new models of Honda Civic and four models of Honda City and it introduced the third

generation Honda City on January 31, 2009.

Honda Atlas registered a positive growth in vehicle sales. 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.

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. 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.

Honda

Atlas Cars

Accord

CR-V

Civic

City


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PROMOTION STRATEGIES OF

HONDA

PUSH strategy

The HONDA Atlas Cars using the promotion program aimed primarily at middleman.

In HONDA the product is push through the channel. The HACPL 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 Tools


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1) Direct marketingDirect 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.

Distinctive characteristics of direct marketing

Nonpublic (the message is normally addressed to a specific person.) Customized (the message can be prepared to appeal to the addressed individual)

Up-to-date (a message can be prepared very quickly) Interactive (the message can be changed depending on the persons response)CChhaannnneellss ooffddiirreecctt mmaarrkkeettiinngg aaddoopptteedd bbyy HHOONNDDAA

Direct mail Websites Catalog marketing

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 customers view about the product,

as the complete information of features and facilities is available on the Internet.

One of the websites is www.honda.com.pk .It is regularly updated and maintained according to

the specification.

CCaattaalloogg mmaarrkkeettiinngg

IInn tthhiiss rreeggaarrdd tthhee ccoommppaannyy sseennddss ffuullll lliinnee pprroodduucctt ccaattaallooggss uussuuaallllyy iinn pprriinntt ffoorrmm bbuutt aallssoo

ssoommeettiimmeess aass CCDDss,, vviiddeeooss oorr oonnlliinnee..
http://www.honda.com.pk/http://www.honda.com.pk/


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2) Public relationsPublic relation involves

A variety of programs designed to promote or protect a companys image or its individual

products.

At HONDA the PR department monitors the attitude of the organizations 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 customers 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:

High credibility Ability to catch buyers off guard Dramatization

Functions performed by public relation (PR) department at HONDA

Corporate communication Press relation Product publicity Counseling


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Major tools in PR

The major tools which are used in establishing public relations as follows

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

TOOLS IN PR

Annual ReportNewsletters


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3) AdvertisingAdvertising means

Reasons to buy

And can be described as:

AAddvveerrttiissiinngg iiss nnoonn ppeerrssoonnaall pprreesseennttaattiioonn aanndd pprroommoottiioonn ooff iiddeeaass,, ggooooddss oorr sseerrvviicceess bbyy aann

iiddeennttiiffiieedd ssppoonnssoorr..

TThhee mmaarrkkeettiinngg ddeeppaarrttmmeenntt ooff tthhee ddiissttrriibbuuttoorrss hhoollddss HHOONNDDAASS aaddvveerrttiissiinngg.. EEvveerryy ddiissttrriibbuuttoorr iiss

rreessppoonnssiibbllee ffoorr iittss oowwnn aaddvveerrttiissiinngg pprrooggrraamm.. AAddvveerrttiissiinngg ppllaayyss aa vveerryy ssiiggnniiffiiccaanntt rroollee iinn tthhee

pprroommoottiioonn ooffnneeww pprroodduucctt..

IIttss uussuuaallllyy mmoorree aattttrraaccttiivvee tthhaann tthhee ootthheerr pprroommoottiioonnaall ccaammppaaiiggnnss.. TThheerree aarree ddiiffffeerreenntt ffoorrmmss ooff

aaddvveerrttiisseemmeennttss tthhaatt aa ccoommppaannyy ppeerrffoorrmmss aaccccoorrddiinngg ttoo tthhee nnaattuurree ooff tthhee ttaarrggeett mmaarrkkeett.. TThhee

ppuurrppoossee ooff aaddvveerrttiissiinngg iiss ttoo iinnttrroodduuccee tthhee ccuussttoommeerr bbyy tthhee nneeww pprroodduucctt aanndd ttoo ggiivvee tthhee

iinnffoorrmmaattiioonn aabboouutt tthhee eexxiissttiinngg pprroodduucctt..

TThhee ffeeaattuurreess ooffHHOONNDDAASS aaddvveerrttiissiinngg aarree aass ffoolllloowwss

Public presentations (advertisings public nature confers a kind of legitimacy on theproduct and also suggest the standardized offerings)

Pervasiveness (permits the sellers to repeat a message many times)Amplified expressions (advertising provides opportunities for dramatizing the company

and its products through the artful use of print, sound and color.)

Impersonality (the audience does not feel obligated to pay attention or respond toadvertising.)


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4) Sales promotionSales 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.

SSaalleess pprroommoottiioonn iiss aa kkeeyy iinnggrreeddiieenntt iinn HHOONNDDAASS mmaarrkkeettiinngg ccaammppaaiiggnnss.. AAss iitt ccoonnssiissttss ooff aa

ddiivveerrssee ccoolllleeccttiioonn ooff iinncceennttiivvee ttoooollss,, mmoossttllyy sshhoorrtt tteerrmm,, ddeessiiggnneedd ttoo ssttiimmuullaattee qquuiicckkeerr oorr ggrreeaatteerr

ppuurrcchhaassee ooffpprroodduuccttss bbyy ccuussttoommeerrss..

BBeenneeffiittss ooffssaalleess pprroommoottiioonn

TThheerree aarree tthhrreeee bbeenneeffiittss,, wwhhiicchh tthhee HHOONNDDAA AATTLLAASS CCAARRSS ddeerriivveess ffrroomm tthhee uussee ooff tthhee ssaalleess

pprroommoottiioonnaall ttoooollss..

Communication Incentives Invitation

MMaajjoorr ccoonnssuummeerr pprroommoottiioonnaall ttoooollss

IInn HHOONNDDAA mmaajjoorr pprroommoottiioonnaall ttoooollss aarree aass ffoolllloowwss::

Product warranties Point of purchase displays and demonstrations Adequacy of repair facility Customer service follow ups Service packages for customers Events related to customer prizes Free check-up campaigns on regular basisTThhee wwaarrrraannttyy iiss nnoorrmmaallllyy ggiivveenn ffoorr oonnee yyeeaarr oorr oonn 2200,,000000 kkiilloommeetteerrss ddrriivvee,, wwhhiicchh ccoommeess

eeaarrlliieerr.. TThhiiss wwaarrrraannttyy iiss bbaasseedd oonn tthhee ppaarrttss rreeppllaacceemmeenntt..

TThhee ddeemmoonnssttrraattiioonnss aarree aallssoo ggiivveenn ttoo tthhee ccuussttoommeerr iinn oorrddeerr ttoo aawwaarree aabboouutt tthhee pprroodduuccttss

eexxcclluussiivvee ffeeaattuurreess..


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4 Ps Of Marketing


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Product

HONDA CITY

Honda City was first launched by HACPL on January 22-23, 1997. Honda's all-new ThirdGeneration Honda City was launched in January 31 2009. It comes with a completely new

design, new engine, and roomy cabin and equipped with various active and passive safety

features. The company has also launched the 1.3L MT & AT versions of the City. The new

Honda City features SOHC, 16 valve 4-Cylinder i-VTEC engine.


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HONDA CIVIC:

The Civic is Hondas largest selling model globally and is now sold in approximately 160

nations and regions worldwide. Honda Civic was first launched in Pakistan on January 10-11,

1996. The new Honda Civic Reborn was launched on July 29, 2006. The new Civic Reborn was

launched with more aggressive and sportier look. The introduction of stylized Dark Smokey

Headlights & Crystalline Octagonal Tail Lights enhances the modern look of the car. New Civic

Reborn is available in 4 variants i-VTEC (MT), i-VTEC (PT), VTI ORIEL (MT) & VTI

ORIEL (PT). It features 16-Valve SOHC i-VTEC 4-Cylinder engine


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HONDA ACCORD:

The Honda Accord was first introduced as a Completely Built Unit (CBU) import in Pakistan on

August 11, 2005. HACPL launched the new model of Honda Accord on July 20, 2008. TheHonda Accord is available in 2.4L engine. It is available on confirmed order basis for the

customers .The All-new Accord comes with 5-speed Automatic transmission. The AT now has

Shift Holding System which avoids unnecessary gear shifting on winding roads and helps in

hassle free drive. The 2.4L Honda Accord features DOHC, 16-Valve 4-Cylinder i-VTEC engine.
http://rds.yahoo.com/_ylt=A0PDoS5yrX1OfXcAry6jzbkF;_ylu=X3oDMTBpcGszamw0BHNlYwNmcC1pbWcEc2xrA2ltZw--/SIG=12a22cckc/EXP=1316888050/**http:/www.carsbase.com/photo/photo_full.php?id=2112


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HONDA CR-V

The Honda CR-V is sold as a Completely Built Unit (CBU) import and is available on confirmed

order basis for the customers. The Honda CR-V was first introduced in Pakistan in 2005. The all

new refreshed version of CR-V was introduced on July 20, 2008 which offered its customers a

distinctive combination of the comfort of a sedan with the thrills of a SUV. The new Honda

CR-V offers its customers a distinctive combination of refined styling and high quality.

The Honda CR-V is available in 2.4L MT with Real-time 4WD. Honda CR-V features i-VTEC

DOHC 4-stroke in-line 4 cylinder engine.


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Price

In Price , the overhead cost , carrying cost ,order cost and exchange rate etc exists. The pricing

of Honda Accord and Honda CR-V is based on their prices in Japan, exchange rate and excise

duty in Pakistan. Although these factors also affect the pricing of Honda City and Honda Civic

The pricing procedure followed in the HACPL is as follows:

Selecting the Price Objective Determining Demand Estimating Costs Analyzing Competitors Costs, Prices and Offers Selecting a Pricing Method Selecting the Price

Place

Honda Atlas Cars (Pakistan) Limited has a good sales and distribution network spread across

the country. The network includes 21 authorized 3S Dealers in 12 cities, 29 authorized 2SDealers in 18 cities and 6 authorized 1S Dealers in 4 cities. HACPL dealerships are based on

the 3S Facility (Sales, Service, Spares), 2S Facility (Service & Spare Parts) named Pit

Shops and 1S Facility (Spare Parts) format, offering complete range of services to its

customers. The overlook, OJT(On Job Training) and atmosphere is same in all the dealers

showroom .

HACPL

Authorized

Dealers

Customers


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Promotion

In Promotion, mainly through dealership and if a new product is launch then promotion

media is used like TV, Radio and newspaper. The advertising and promotion by Honda Atlas

Company Pakistan (HACPL) is not a routine based program and is done mainly on new model

change. Anyways the promotional means used by HACPL for its products and services include

the following:

Newspaper and magazines ads Press releases and magazines articles Car shows Website Calendars Points of Display at dealerships and hotelsThese days HACPL is mainly advertising through the website and not using any other

sources. HACPL spends a much time and money at advertising through the company website

because in its point of view it is one of the best advertising/marketing strategies.

Market Segmentation

HACPL has segmented its market in a way that its

ACCORD &CR-V is for elite class HONDA CIVIC for upper middle class HONDA CITY for only middle class


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Customer relationship Management

(CRM)

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 ofhelp required by them.

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 theHONDA 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, whereas the customer has to pay for only

the consumable like engine oil, oil filter, etc..


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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.

Warranty Conditions and Advantages

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.

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.

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.

Target market

In general always has targeted upper class groups, upper middle class, and middle class& have

been very successful in maintaining its target market and providing with the products of their

needs.


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Car Production Potential in Pakistan

(competitors)

Pak Suzuki Indus Motor Company(IMC) Dewan Farooque Motors Limited

Pak Suzuki

In pursuance of the terms and conditions of the Joint Venture Agreement executed between

Suzuki Motor Corporation of Japan (SMC) and Pakistan Automobile Corporation (PACO), Pak

Suzuki Motor Company Limited (PSMCL) was incorporated as a public limited company in

August 1983. PSMCL started commercial operations in January 1984 with the primary objective

of passenger cars, pickups, vans and 4x4 vehicles.

Pak Suzuki is the leading name in small commercial vehicles and passenger cars. Suzuki has

launched Mehran 800cc, Cultus 1000cc, Baleno 1.3 & 1.6 Eli and JXR, Bolan van & Ravi

pickup 800cc and Potohar jeep. The total production capacity of Suzuki Motors is about 50000

units and the total actual production in 1999 is 32,805. The sales volume of Suzuki is highest

among the competitors with 31,296 cars as per June 30, 2000.

Indus Motor Company(IMC)

Indus Motor Company (IMC) is a joint venture between the House of Habib , Toyota Motor

Corporation Japan (TMC), and Toyota Tsusho Corporation Japan (TTC) for assembling,

progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01, 1990..

Vehicles in Pakistan through its dealership network.

The company was incorporated in Pakistan as a public limited company in December 1989 and

started commercial production in May 1993. Indus Motor Companys plant is the only

manufacturing site in the world where both Toyota and Daihatsu brands are being manufactured.

Heavy investment was made to build its production facilities based on state of art technologies.


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To ensure highest level of productivity world-renowned Toyota Production Systems are

implemented. IMC's Product line includes 6 variants of the newly introduced Toyota Corolla,

Toyota Hilux Single Cabin 4x2 and 4 versions of Daihatsu Cuore. We also have a wide range of

imported vehicles.

Dewan Farooque Motors Limited

DFML is a joint venture between the Dewan Mushtaq group of Pakistan Hyundai motors limited

Korea and Kia motors Korea.The company was incorporated on December 17, 1998. It is

situated at Dewan city Sajawal 152 kms away from Karachi. Its annual capacity is 20,000 units

per year, expendable to 40,000 units per year.

The products of Kia motors are 1300cc car Kia classic 1500 cc car Kia spectra and 2000cc turbo

diesel jeep. The principal activity of the Company is the assembly, progressive manufacturing

and sales of Hyundai and KIA vehicles in Pakistan.

Communication 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


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These dealers in addition to services and spare parts also offer cars for sale. Their are18

authorized 3-S dealers all over Pakistan.

Events & Sponsors

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 promotethe 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 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:

Customer Satisfaction Market Share Customer Choice

a. Reading Habits

b. TV Watching Habits

Brand Survey Social Group Education Level


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Market Trend

Competitive Advantage of HACPL

Honda Atlas Cars Limited company get the first mover advantage in Anti-Lock-Braking system

(ABS) and Supplement Restraint System (SRS) technologies.

Positioning strategy of HACPL

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.

The management of HACPL has planned a position that distinguishes their vehicles from their

competitors ones. Its the shinning point of HACPL 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 possibleadvantages 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:

Positioning in relation to competitors

Positioning in relation to product attributes Positioning by price and quality


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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.

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.

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.

Seminar in Mkting Report

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