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 FINAL PROJECT
COMPARISON

A PROPOSAL REPORT
SUBMITTED TO THE DEPARTMENT OF MANAGEMENT SCIENCES,
VIRTUAL UNIVERSITY OF PAKISTAN
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR
THE DEGREE OF MASTER IN BUSINESS ADMINISTRATION

Submitted By:
Muhammad Usman
Mc070400252
Session 2007-2009
17-04-2009

Submitted To:
Project Management Department MKT-619

Department of Management Sciences,

Virtual University of Pakistan

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 DEDICATION

I would like to dedicate this project to my respected Khawaja Saleem Warsi who made

me able to enter to join MBA Program; He was a Professor in Government Islamia

College, Karachi. His kind encouragement, help, and motivation has been supporting

me at every stage during MBA, This kind Professor has always step by step with me

when ever I faced problem during Study.

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 ACKNOWLEDGEMENT

Start with the name of ALLAH who is very beneficiary and merciful. I am very

Grateful to Almighty ALLAH Who Gave me a Power to research and write on this

report.

After that I am very Grateful to My respected elder Khawaja Saleem Warsi who

made me able to enter in MBA Program, than my guardian, my kind Instructor of

Final Project (MKT-619) Whose Guidance and instruction Helped and encouraged

me at every Stage of this Project. I will ever memorize this Great personality.

I am also Grateful to my honest and sincere friends who provided me suggestions

when ever I needed

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 EXECUTIVE SUMMERY

The reason of conducting survey in the field of Brand loyalty comparison between
Toyota Corolla and Honda City, I have been worked out ascertain acceptance and
attractiveness of the Toyota Corolla and Honda City. The issues has been becoming as to
consumer behavior that what those opinion, perception, attention involved in to go
Toyota Corolla and Honda City brands. Research has been conducting by (Honda and
Toyota) dealers’ interviews, questionnaire filling by fifty Toyota Corolla and fifty for
Honda City lovers simultaneously in which middle and upper middle class people has
been participating.
The automotive industry is the industry involved in the design, development,
manufacture, marketing, and sale of motor vehicles. It is one of the most vital and
idiosyncratic Sector in Pakistan consists of immense engineering technology. This sector
provides superior technology inflows in Pakistan by setting up high-quality plant in
various location of Pakistan. There are 39 assemblers, manufacturing cars, including light
vehicles, buses, trucks and tractors, in the country. Further, Pakistan is manufacturing
almost all body parts and mechanical parts, plastic components, tires, batteries, seats and
some parts of car engines. However, some critical parts of the units are still imported by
the assemblers
This sector provides the new shape in the standard of living in Pakistan also contributes
in achieving the Economics goals & targets by providing the direct employment of more
than 192,000 Peoples besides the investment of Rs 98 billion in this sector also
contributes 3.6 dollars annually in GDP. The market for the locally assembled passenger
cars and light commercial vehicles are continuously in a growing trend by producing
204K units in 2007 as compare to the 187K units in the last year.
Pakistani Automobile Sector Consist of four main players in the domestic market and
their cumulative share is about 95% of the total car Markets these includes Pak Suzuki
Motors Company, Indus Motors Corporations, Honda Atlas, Dewan Farooque Motors
Limited. Among these four, Pak Suzuki enjoys the position as a market leader (62%) than

v
by the Indus motors (27%) followed by Honda Atlas (9%) & Dewan motors (2%)
respectively.
Indus Motors is the country's second largest auto manufacturer, after the Pak Suzuki
Motors, located near Bin Qasim Karachi, having an assembling capacity of 55,000 units
per annum. Indus Motors Company is a Joint venture between Toyota Motors and House
of Habib (HoH). Its core business is to manufacture and market cars. In addition, the
company also sells auto parts and accessories. Its product line includes 9 variants of
Toyota Corolla, 8 variants of Daihatsu Cuore and 2 variants of Toyota Hilux. The
company also offers six different imported vehicles namely Toyota Camry, Prado, Land
Cruiser, RAV, Hilux and Hiace. Major contributor to the revenue is Corolla, having a
contribution of 66.5% in company's sales. Last year, the company has completed its
expansion plan that increased its capacity to 55,000 units per annum. The company has
further expansion plan to almost double its capacity to 100,000 units by financial year
2011 for which it has already acquired land. The net Sale of Indus Motors Company of
year 2008 is 42,948,826.
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 in 1993. Company has produced and
sold more than 150,000 cars till Oct, 2008.
Honda Atlas Cars Pakistan Limited earned Profit before tax of Rs.55.2 million as against
Rs.30.9 million in the same period last year. The other income increased from Rs. 36.6
million to Rs. 55.2 million including from higher return on the bank deposits. Since the
last year, the company focused to improve liquidity through reduced short term and long
term loans which resulted in Rs. 0.5 billion at the end of the quarter as against Rs. 2
billion in June, last year.

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 TABEL OF CONTNETS

Acknowledgement

Executive Summery

1. CHAPTER #1.................................................................................................................1
INTRODUCTION..................................................................1
The Background of the Project:.............................................3
Introduction of the organization’s business sector:................3
Indus Motors Company (IMC) Introduction:.........................6
Mission Statement of Indus Motors Company:.....................9
Vision statement of Indus Motors Company:......................10
List of Competitors..............................................................10
Project Objective:.................................................................11
Significance of the project:..................................................12
Project Proceeding:..............................................................13
2. CHAPTER #2...............................................................................................................13
.a Marketing Objectives:.......................................................13
2.2 Toyota Marketing Mix 4 P'S:..........................................15
.a Structure of marketing department ...................................18
.a Marketing Functions of Indus Motors Company (IMC):..19
3. CHAPTER# 3...............................................................................................................20
Marketing Strategies:........................................................21
.a Market Segmentation strategies:.......................................22
.a Target marketing strategies:..............................................22
.d Product Planning and Development:.................................23
.a Brand Positioning:.............................................................27
.a Pricing Strategies:..............................................................29

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 .a Advertising and Promotion:..............................................29
4. Distribution Strategies:......................................................29
.a SWOT ANALYSIS OF INDUS MOTORS:.....................30
4. CHAPTER# 4...............................................................................................................31
a. Introduction of Competitor:...............................................31
.a Honda Atlas Marketing Objective:....................................33
.a Honda Atlas Marketing Mix:............................................34
.a Marketing Operations/ Function of Marketing Department:
37
.a MARKETING STRATEGIES:.........................................40
.a Market Segmentation Strategy:.........................................40
.a Target marketing strategy: ................................................41
.a Brand(s) positioning:.........................................................42
.i Pricing Strategy:......................................................................................................43

.a Advertising and Promotion:..............................................43

.a Distribution strategies:......................................................44
5. CHAPTER# 5...............................................................................................................44
.a FEATURES OF TOYOTA COROLLA AND HONDA
CITY ......................................................................................................................44
.a Brand Loyalty of TOYOTA COROLLA:.........................44
.a Toyota Corolla Characteristics, Features and performance:
46
.a Brand Loyalty of HONDA CITY:.....................................48
.a HONDA CITY Characteristics, Features and performance:
48
.a Conclusion of TOYOTA COROLLA and HONDA CITY
Brand Loyalty:........................................................................................................50
6. CHAPTER# 6...............................................................................................................50
.a Data Collection Sources:...................................................50
.a Data Collection Tools:.......................................................50

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 .a Questionnaire Analysis......................................................51
.a Interview analysis..............................................................63
.a Summery...........................................................................68
7. CHAPTER# 7...............................................................................................................70
.a CONCLUSION:................................................................70
Recommendation: ...............................................................71
8. CHAPTER# 8...............................................................................................................72
.a Student Introduction:.........................................................72
.a Appendices........................................................................73

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Figure 1.............................................................................................................................57
Fig 2...................................................................................................................................73
Figure 3.............................................................................................................................73
Figure 4.............................................................................................................................73
Figure 5.............................................................................................................................73
Figure 6.............................................................................................................................73
Figure 7.............................................................................................................................74
Figure 8 Honda City Technical Specification:..............................................................74
Figure 9 Toyota Corolla Technical Specification:........................................................75
Figure 10 Comparison by Technical Specification and Price: ..................................79

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 SECTION I

1. CHAPTER #1

INTRODUCTION

In the world trade, Automobile Sector is one of the largest segments. It is the major driver of
economic growth and business activities. It puts multiplier impacts on the economy. Day-in,
day-out around 200,000 vehicles roll off the world’s assembly lines with car as the dominant
segment of the industry.

The automobile sector has been registering high growth for the last four or five years due to
the country's business friendly policies along with lower tariff rates, persistent growth in
GDP, and per capita income.

The automotive industry rightly prides itself on being recognized as the “mother of all
industries.” In its folds it carries many different kinds of vehicles to provide mobility to
people and goods. While they may appear to be simple machines, their design and
manufacturing have much deeper roots in all the known technologies. In-depth knowledge
and skillful application of mechanical, electrical, electronics, chemical and a host of other
technologies culminate in achievement and improvement of the manufacturing base of a
country, by focusing on a single product the automobile. This then provides an opportunity to
produce a large number of goods and services for consumption of the entire international
community. Use of the word “mother” for automotive industry is therefore the most
appropriate description to define the nature and importance of the industry.

Automotive industry in Pakistan started in 1950 and has gone through different phases1950’s
(Private sector). 1960’s (Private sector). 1970’s (Nationalization). 1980’s onward
(Privatization & entry of private sector).

It is indeed heartening that the mother has once again smiled at Pakistan; fortunately the last
3 years have witnessed phenomenal growth in the industry in terms of technological
advancements and production/sales volumes with the local contents rising as high as 90%.
The industry is already employing 120,000 people; contributing more than 12 billion rupees
to GDP, contributing more than Rs. 30 billion to the national exchequer in terms of duties

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and taxes, attracted investment worth Rs. 52 billion including a substantial foreign
investment. Today the customers have choice to pick from a wide range of products
including motorcycles, trucks, buses and cars of premier Japanese and Korean brands at
internationally competitive prices, which has only become possible due to local contents and
availability of highly productive and inexpensive human resources.

In Pakistan the automobile components manufacturing industry consists of mainly units

producing original components for assembly under deletion program and units are producing
reconditioned and original components for local use.

In Pakistan the automobile components manufacturing industry consists of mainly units

producing original components for assembly under deletion program and units produce
reconditioned and original components for local use.

There are more than 800 vendors in the country with a total investment of over eight billion
rupees; they are engaged in the manufacturing of original components for the assembly
operation under the deletion program as well as producing reconditioned and original
components for sale in the local market.

The models of Toyota Corolla and Honda City 1300cc car has been able to achieve the
popularity level among car lovers in Pakistan as the company expected before its import, the
companies source told that "The sales of Toyota Corolla and Honda City vehicle have
Raised, Before introducing Toyota Corolla/ Honda City 1300cc cars, the Toyota company
has completely vanished its most popular brand Corolla, and Honda vanished by Civic whose
demand was up throughout the country. The demand for old Corolla cars is still moving up in
the second-hand car markets.

Common perception about Toyota Corolla and Honda City is that it Success to fulfill the
perceive value of the customer, the price paid is much lower against the value, in our
research work we try to identify how strong these arguments are? What are the reason behind
to not fulfilling the perceived value of customer, is this marketing or a manufacturing failure,
is there any role of imported cars.

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Project Proceeding:

Due to limited time the research on TOYOTA COROLLA and HONDA CITY will be
conducted in Karachi only. I have been working approximately for 2 month of time period.
As the research will be conducted during the figures and assumptions quoted in this research
report will only be applicable for this period of two months. This Project is

The Background of the Project:

The background of the topic is to analyze Brand loyalty of Toyota Corolla and Honda City
Cars that success in the Car Market. I will find out the reasons and factors those make them
strengthen and Strong position in the market for that I decided to work on it. For that we
must need to very closely and detailed overview of the company.

Common perception about Toyota Corolla and Honda City is that both companies have been
fulfilling the perceive value of the customer, the price paid is much reliable against the value,
in my research work; I will identify how much strong these arguments? What the reason are
behind to successfully fulfill the perceived value of customer, what are the marketing or
manufacturing success, is there any some other aspects or role to make more loyal customer.

Toyota Corolla and Honda City fulfill the whole of the customer’s need as they want in every
of aspect but customer had already mindset about the price of both different Brand that these
cars providing luxurious, reliable, and durable Facilities which other Car manufacturer are
not much able to provide at competitive price. Toyota Indus and Honda atlas has been
producing luxurious car its time where as customer will be aware to the Toyota and Honda
Car with reference to those brand, these brands penetrated in customer’s mind so Toyota and
Honda has been getting a place in car market.

Introduction of the organization’s business sector:

Indus Motors Company (IMC) is the member of PAMA - Pakistan Automotive

Manufacturers Association in which all automobile related business companies playing a
vital role in the Association. The location of PAMA - Pakistan Automotive Manufacturers

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Association is the 1st Floor, Block-C, Finance & Trade Centre, Shah-rae- Faisal, Karachi.
The PAMA objective is to promote progressive manufacture of automotive vehicles (cars,
commercial vehicles, motorcycles, farm tractors) in the country.

Toyota Motors produces an estimated eight million vehicles per year, about a million fewer
than the number produced by General Motors (world largest automobile Company) The
company dominates its home market, with about 40% of all new cars registered in 2004
being Toyotas.

Toyota also has a large market share in both the United States and Europe. And Pakistan’s
second largest automobile company somehow Suzuki company gain competitive advantage
instead of other automobile companies in Pakistan due to cost leadership strategy and another
major advantage is that they are producing 800cc car at economical cost means in Pakistan
perspective middle status people are now able to adopt auto at affordable price but if we talk
about the 1300cc cars that is majority in Pakistan as well so its advantage goes to Toyota
corolla in 1300cc car producing it is the number one automobile company in Pakistan It has
significant market shares in several fast-growing South East Asian countries. The - 1
-company produces a large range of vehicles which are highly regarded for their quality,
engineering, and value; their designs set global standards for safety, reliability and ease of
maintenance.

The Company Philosophy

"Do the right thing for the company, its employees, the customer and the society as a whole."

The story of Toyota Motor Corporation TMC began in September 1933 when Toyoda
Automatic Loom created a new division devoted to the production of automobiles under the
direction of the founder's son, Kiichiro Toyoda Soon thereafter, the division produced its first
Type A Engine in 1934, which was used in the first Model A1 passenger car in May 1935
and the G1 truck in August 1935. Production of the Model AA passenger car started in 1936.

Although the Toyota Group is best known today for its cars, it is still in the textile business
and still makes automatic looms (fully computerized, of course), and electric sewing
machines which are available worldwide.

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The Indus Motors business Sector has been established in many aspects but in Pakistan they
are doing business in automobile industry they are manufacturing many of vehicle like Cars,
Jeeps, single cabin, double cabin, 2x4, 4x4, Hilux, Delux, Hiace and many others.

Present Status:

IMC on achieving the milestone of over 50,000 vehicle sales in the year 2007 and
appreciated the company for increasing its production capacity to meet the demand for its
vehicles. He reiterated Toyota's ongoing commitment and support to IMC for further
expanding production facilities and acknowledged the efforts of the Indus Team for
continuously improving their skills and their efforts for building quality cars.

Indus Motors Company has been impressive 1400 sq meters Training Center, which will
provide core trainings as well as multiskill development. Cumulatively, since inception, over
a million menhours of training had been done by Indus to enhance the capabilities of its
team. Indus Motors company also inaugurated the modern, state of the art, Vehicle Display
Center at MakroHabib on Shah-rahe-Faisal, Karachi, which will display top of the range
Toyota vehicles

The sales and production of Indus Motor’s Toyota and Daihatsu brands for the year ended
June 30, 2008 were 50,802 units and 48,222 units respectively which is a new record
compared to last year’s figures of 50,557 units and 47,821 units respectively. The company’s
sales revenue increased to Rs 41 billion, up 6% over Rs. 39 billion; with the after tax profit of
Rs 2.3 billion, as compared to Rs 2.7 billion achieved during the year ended June 30, 2007.
Earnings per share decreased to Rs 29.15, as compared to Rs. 34.93 in the previous year.

Nationwide sales of locally assembled passenger cars and light commercial vehicles (LCV)
that had previously grown continuously over the last five years declined by 8% to 187,412
units from 204,212 units sold in 2006-07. Production in the industry also declined to 187,644
units for the period ended June 30, 08, down 5.7% over 198,986 units last year. Although
there has been a decrease in the import of used cars from 28,493 units in 2006-07 to 13,145
units in 2007-08, they still continue to impede growth of the auto industry.

5
The impact of political uncertainty compounded with a general slow down in the economic
environment resulting from rising interest rates, limited credit availability for auto financing,
depreciation of the Pak Rupee against major currencies, unprecedented rise in prices of oil,
steel and other inputs, inflation, etc impacted the demand negatively.

The Board of Directors appreciated the Company’s performance and declared a final cash
dividend of Rs 6.5 per share, making for a total of Rs 10.5 per share during the year. The
total dividend paid for the same period last year was Rs 13 per share.

Indus Motor has requested the government to take note of the recommendations made by the
Pakistan Automobile Manufacturers Association to accelerate growth of the local industry
and withdraw the 5% Federal Excise Duty and increase of 1% Sales Tax, amongst other
measures.

Indus Motors Company (IMC) Introduction:

Indus Motors is the country's second largest auto manufacturer, after the Pak Suzuki Motors,
located near Bin Qasim Karachi, having an assembling capacity of 55,000 units per annum.
Its core business is to manufacture and market cars. In addition, the company also sells auto
parts and accessories. Its product line includes 9 variants of Toyota Corolla, 8 variants of
Daihatsu Cuore and 2 variants of Toyota Hilux. The company also offers six different
imported vehicles namely Toyota Camry, Prado, Land Cruiser, RAV, Hilux and Hiace.
Major contributor to the revenue is Corolla, having a contribution of 66.5% in company's
sales. Last year, the company has completed its expansion plan that increased its capacity to
55,000 units per annum from 37,000 units earlier. The company has further expansion plan to
almost double its capacity to 100,000 units by financial year 2011 for which it has already
acquired land. Toyota Motor Corporation of Japan has recently announced its decision to
acquire an additional 9.83m shares in Pakistan's Indus Motor Company by taking over stock
3.93m shares (5.0% of the paid up capital) from overseas investors (AG Limited) and
remaining 5.90m shares (7.5% of the paid up capital) from general public through a buy-back
offer at the purchase price of Rs 370 per share. However, such public offer would not include
the stock held by the companies and the individuals, who represent members of the House of
Habib (HoH). Toyota Corporation and its affiliate Toyota Tsushu Corporation currently held

6
9.83m shares each in Indus Motor, which together constituted 25% of the company's paid-up
capital. After the said transaction, Japanese giant car maker's stake in Indus Motor Company
would raise to 37.5% from currently 25%.

New data release by Pakistan Automotive Manufacturers Association (PAMA) after

witnessing a growth pattern since FY02 with 6 years CAGR of 28.0% to 171,786 units in
financial year 2007 from 39,047 units in financial year 2001, car sales declined by 4.2% in
FY08 and stood at 164.65k units as against 171.79k units in financial year 2007. The low
price cars category was the beneficiary of this shift in customer preference. The cars with
engine capacities of 801cc to 1299cc registered a decline compared with last year. The auto
sector in general, has witnessed a slow down owing to the fact that two to three times, the car
prices were increased by the auto assemblers during last year in order to support their
declining gross margins. Auto assemblers linked the price-hike to the rising prices of steel
components and appreciation of the yen against the rupee, which pushed up the production
cost further. Moreover, the car financing became more expensive due to increase of 200bps
in discount rate during financial year 2008. As a result, there was a slowdown in car
financing amid rising mark up rates and tight documentation of car financing due to
significant rise in NPLs of the banks. The rising trend of fuel prices also forced the new
buyers of small cars to switch to motorcycle mainly due to cheaper cost and low fuel
consumption. Among different engine capacity cars, sales volume of low engine capacity
cars, i.e., 800cc declined nominally by 0.6% in financial year 2008 over financial year 2007.
However, sales volume of high engine capacity cars i.e. 1000cc and above 1300cc declined
11.6% and 15.6% to 48,887 units and 50,824 units in financial year 2008 from 55,295 units
and 60,190 units respectively in financial year 2007. FINANCIAL PERFORMANCE
(9MTHS'08) Indus Motors announced Rs 1.89 billion PAT (EPS: Rs 24.06) in 9mths'08
compared to Rs 1.93 billion (EPS: Rs 24.53) in 9mths'07, depicting a decline of 1.9%. Major
reasons behind the decline were lower sales volume, appreciating Japanese yen against the
Pak rupee and higher steel prices, which negatively impacted the company's bottom line.
During the period under review, world steel prices grew 11.0% to US $636 per ton (average
price) from US $574 per ton (average price) in 9mths'07 whereas Pak rupee depreciated 8.5%
against Japanese yen to 1¥ = Rs 0.561 (average price) in 9mths'08 from 1¥ =Rs 0.517
(average price) in the same period last year. Financial charges stood at Rs 1 million in

7
9mths'08 as against Rs 27 million in the corresponding period last year, representing a
significant decline of 98.0% as the company did not have any mark up bearing long-term
liabilities, except deferred taxation, in its balance sheet. Other income of the company also
declined 13.2% to Rs 625 million in 9mths'08 compared to Rs 720 million in the same period
last year due to low returns on bank deposits. Income from bank deposits fell to Rs 490.7
million in 9mths'08 as against Rs 608.9 million in the same period last year. Despite adverse
market environment, total sales volumes (both CKD and CBU) declined nominally by 0.7%
to 36,445 units in 9mths'08 from 36,704 units in the same period last year. However,
production at 34,925 units in 9mths'08 was slightly up as against 34,819 units in 9mths'07. In
9mths'08, Indus Motors was the market leader in above 1300cc category with a market share
of 65.2% followed by Honda Cars and Pak Suzuki with a market share of 28.3% and 6.5%
respectively. Market share of the company has also improved to 65.2% in 9mths'08 from
59.3% in 9mths'07 at the expense of both Honda Cars and Pak Suzuki. However, in 800cc
engine capacity cars, market share has depressed to 17.9% from 20.1% in 9mths'07.
Financial performance FY07 Indus Motors crossed production of 250,000 units since its
inception. It achieved over 50,000 units of sales during the year 2007. Also, dealership
network expanded from 25 to 29 dealers. Sales of locally manufactured vehicles and CBU
variants for the year ended June 30, 2007 were 50,557 units, compared to 42,406 units last
year, up by 19%. Toyota Corolla outperformed its competitor and established a market
segment leadership position in Pakistan with 59% market share in the year 2006-07. Daihatsu
Cuore increased its share to 26% in 2006-07 from 18% last year in the economy car segment
that continues to show impressive growth. The New Generation Camry introduced in the
beginning of 2006-07 showed impressive performance. It increased its share from 16% last
year, to 54% by June 2007, in its segment. In the new SUV category, market share increased
from 62% to 88% this year, with increased focus on fleet customers who are secure in the
reliable performance, durability and after sales service and product support capability of
Indus. Hiace and Hilux increased market share from an already impressive 63% last year to a
market dominant position of 84% this year. Indus Motors' liquidity has maintained a positive
trend, over the past 5 years, with the current ratio being well above the industry averages,
increasing progressively with each successive year. The current ratio touched 1.8 in financial
year 2007 showing the excessively liquid assets that the company owns. Indus Motors fares

8
reasonably above the industry average in terms of inventory turnover; this being a virtue of
its continuous innovation, and understanding and catering to the market needs. However, in
terms of collection of receivables IMC lags behind its competitors. Although the operating
cycle is decreasing, but showing efficiency in terms of its cash conversion cycle, it needs to
bolster it further to be at par with the industry standards. The total assets turnover is better
than the industry, showing that the company is better off than its rivals, as far as managing
assets to generate sales is concerned. The rising net sales have a major role to play in
elevating this measure of asset management, and this can be attributed to better marketing,
launching of newer models of cars, and improved delivery timings. As depicted by the graph,
the TATO has shown quite a profound increase in Financial year 2007. Lately, however, the
sales-to-equity ratio of Indus Motors has been declining. This can be attributed to an increase
in reserves that may be used to further expand the company's capacity according to the AIDP
(Auto Industry Development Plan). Financial year 2007 has thus, retained the previous trends
of the company's asset management ratios. All in all, asset management ability of the
company is praiseworthy. Long term debt-to-equity is lower than the industry average. It is
almost zero owing to the fact that the company has no long term liability as such. Indus
Motors is basically an equity-based company.

Mission Statement of Indus Motors Company:

"IMC’s Vision is to be the most respected and successful enterprise, delighting customers
with a wide range of products and solutions in the automobile industry with the best people
and the best technology".

• The most respected.

• The most successful.

• Delighting customers.

• Wide range of products.

• The best people.

• The best technology.

9
 Vision statement of Indus Motors Company:
Mission of Toyota is to provide safe & sound journey. Toyota is developing various new
technologies from the perspective of energy saving and diversifying energy sources.
Environment has been first and most important issue in priorities of Toyota and working
toward creating a prosperous society and clean world.

List of Competitors

Why Competition is involved In Business?

this era is the name of gain Tremendous success and those may gain success who have well
worth characteristics, in the way of business sector, the competition is the hurdle or benefit in
either condition for every firm and firms wants to gain high profitability, more loyal
customers, high market shares, and many more other factors they want to achieve the goal for
that they always try to apply different competitive strategies to gain loyal customers because
the loyal customers are the profit of any organization.

List of Competitors:

Here is the list of competitors regarding Pakistani environment and my target companies also
apart of this competition so these competitors are listed below:

1. Indus Motors (Toyota)

2. Honda Atlas
3. Pak Suzuki
4. Dewan Motors
5. Nissan Ghandhara
6. Other China Brand Competitors

These are the top listed companies those are the competitors of each others. Most top of the
list in competition are Toyota, Honda and Suzuki. These three companies respectively market
share in the market some competitive advantages gain by third one company like Pak Suzuki
producing 800cc cars, in Pakistan automobile market.

10
 Project Objective:

The research objective is to analysis between the Honda City and Toyota Corolla we know
that the Toyota corolla and Honda City are very close and highly competitors of each other
means perfect competitors, both are moving towards the bright future and achieve more and
more success in market for this purpose. The objective of this research is:

To be aware of existing product, Toyota Corolla and Honda City of companies

and to get a clear picture of prevalent automobile industry in Pakistan.

To distinguish between Toyota Corolla and Honda City, as to persuade the client
with the most suitable vehicle for him

To understand the facts and reasons require to be kept in mind while customer
choosing Toyota Corolla or Honda City in its decision.

To identify proper prospect for selling a vehicle to customer

To understand the responsibility of a sales service and spare parts teams while
working for the company

To understand the Brand position in customers’ mind and perception about the
brand.

To understand factors of Toyota and Honda Company has been achieving success
in Pakistan automobile industries. This will help me understanding the customers’
attractiveness by brand loyalty of Toyota Corolla and Honda City.

Understanding the businesses of Indus Motors Company (IMC) and Honda Atlas
Pakistan Company Limited (HACPL) companies and familiarize with the
companies in Pakistan.

These above objectives will help and make us understand in the analyzing of customer
loyalty also will give us answer that what are the reasons that both are perfect Competitors of
each other also which factors are strength and success reason of the Toyota Corolla and
Honda City we have to understand the image of brand in consumer’s mind. Our analysis
point out the some reason, when we will done Questionnaire and interview to the Car owners
and Dealers than it will possible to find out the mentality.

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 Significance of the project:

According to assigned Project “Brand Loyalty comparison of Honda City and Toyota
Corolla” it will be most helpful for us in many ways because we all do not much know about
background of the success of Toyota Corolla and Honda City cars and all of those factors
which might not be aware about the any of one selected brand, just like technical
specification, I would like to explain it in some aspects that make you understand about
significance of this project.

When I have been starting this project I feel like it is interesting and very important to get
knowledge and finding of my question that. Why people are like to drive Toyota Corolla or
Honda City? What are they think about this brand (Corolla or Honda)? What are they
perceive by it? When I started got information and did deep research on it I find the answer
that it’s the “Brand loyalty”. This project makes me understand about the Toyota Corolla and
Honda City’s brand loyalty comparison.

In the eye of Brand conscious customers, this category is most critical part of any
organization in term of customers’ perception about the brand, this category of customers are
not willing to compromise in those perception just because of brand positioning, suppose if a
loyal customer like to drive a Honda City Car but lake of information about the Toyota
Corolla, he/she might not be like to drive Toyota Corolla and vice versa. So this research
Report will provide current and solid information for brand conscious customers, After
reading of this project the person must become well aware about the Toyota corolla and
Honda City brand, not this he/ she easily differentiate between both brands

Some people who willing to buy a luxurious car but they getting confused to buy Toyota
corolla or Honda City and they looks at the Toyota Corolla and Honda City in equal eye, they
think that both cars are same feature, quality, reliability, performance and other features, here
is just difference in a brand. so, this project will be a guideline for this category of people, it
will help them to measure the about the brand then they will feel confidence to buy Toyota
Corolla or Honda City.

This project also very helpful for both companies to keep focusing on those brands, this era is
based on tremendous competition and those company has been existing in business who have

12
ability to compete, for that they must have to know about those brand perception and also
need to consider those brand strengths and weaknesses in customers’ mind. So this project
also provides a good opportunity for both companies to consider its repotition and understand
which factors they are now come to know.

This project is endless to written on it but key factor as I mentioned above are most important
parts. My project will helpful for those people who want to know about these brands because
Toyota Corolla and Honda City have a perfect competition in Pakistani automobile market.

Project Proceeding:

Due to limited time the research on TOYOTA COROLLA and HONDA CITY will be
conducted in Karachi only. I have been working approximately for 2 month of time period.
As the research will be conducted during the figures and assumptions quoted in this research
report will only be applicable for this period of two months. This Project will divided into
three section, each section will provide appropriate data for us in the first section we will
discuss till Indus Company after that we will put the light on the next segment for
comparison Honda Atlas, in the third session we will discuss in detail about company ways
of attracting customers in this section we will talk about the attractive points in both aspects
then in the same direction we will analyze our discussion the final stage. The project is based
on to find out the key success factor of the Toyota Corolla and Honda City. If I compare
Toyota that manufacturing 1300cc cars in other hand the Atlas Honda also has been
manufacturing of 1300cc both have approximate same price level, both companies are
Japanese company but what the competitive advantage goes to Toyota. My project target is
the Toyota corolla and Honda city. So my focus is to find out the Brand loyalty of Toyota
corolla that in which aspect Toyota corolla gain Market share in competitive market.

2. CHAPTER #2.

.a Marketing Objectives:

Indus Motors Company always keeps in mind the vision and mission and it is to be most
respected and successful automobile company, delighting customers, Make possibility of
providing with a wide range of products and solutions in the automobile industry with the

13
best people and the best technology in this way the IMC showing its bright picture in the way
which they achieve customer loyalty it is the key success of the Indus Motors Company.

The Indus Motors Company’s marketing objective before setting, the Indus Motors Company
must decide on its strategy for the product. Company has been selecting always its target
market and positioning carefully, then its marketing mix strategy, including price, will be
fairly straightforward. Pricing strategy is largely determined by decisions on market
positioning. At the same time, the company seeks additional objectives. The clearer a firm is
about its objectives, the easier it is to set price. Some of common objectives are survival,
current profit maximization, market share leadership, and product quality leadership.

The company’s products renowned for their quality, durability, safety, fuel economy, resale
value, and style, are admired by the customers in Pakistan. There has been an unprecedented
demand for the Corolla that has broken all previous records.

The Indus Motors Company (IMC) decided to achieve Product Quality Leadership. This
normally calls for charging a high price to cover higher performance quality and the high
cost of R&D. A company might also use price to attain other, more specific objectives. It can
set prices low to prevent competition from entering the market or set prices at competitors'
levels to stabilize the market but most of the time they follow those own pricing strategy in
which they imply both strategy’s combination. In that point of view the price can be set to
keep the loyalty and support of resellers or to avoid government intervention. Toyota Corolla
may be priced to help the sales of other products in the company's line. Thus, pricing also
play an important role in helping to accomplish the company's objectives at many levels.

2.2 Implication of Toyota Motors Marketing Mix:

Indus Motors Company (IMC) as second largest company in Pakistan, we must need to
understand the implication of marketing mix because as much as any company gain
competitive achievement in market, same direction company has face more difficulty to more
grow up business and to maintain sustainability. So the companies have to very careful about
the strategies in every aspect so in term of Indus Motors Company, All strategies followed by
Toyota Motors Corporation. Toyota Motors Corporation Deal with in international level,
Indus motors Corporation deal partially national level and dealers deal with in country

14
regional level so the marketing mix strategy may vary country to country even regional wise.
So in the aspect of Pakistan the Indus motors authorized to dealers that they may employ
marketing mix strategy that should effective for regional environment.

2.2 Toyota Marketing Mix 4 P'S:

Indus Motors Company comes up with a strategy to figure out which strategy is best for them
given the objectives and resources. They must also consider the strengths and weaknesses of
the company as well as opportunities and threats. To enhance the aptitude of the companies,
a marketing strategy is introduced. The marketing strategy will create lucrative marketing
mixes for defined target markets.

The marketing mix is composed of four key elements to execute or examine for marketing
campaigns. The chief goal of the marketing committee is to optimize the marketing mix.
Marketers may enhance their outcomes and marketing value by implementing the right
combination of the four P’s. Discrete alterations made to the marketing mix are looked at as
tactical changes, while rendering huge changes to it can be considered strategic. The “Four
P’s” of marketing are: product, price, placement, and promotion.

Toyota marketing Mix elements fulfill the requirement if we target the most of the important
Four P’s of marketing mix in Toyota company aspect we will much easily understand and get
success to determine bright picture about Toyota Corolla customer loyalty because these four
elements are the basic fundamental of any successful firm. These four elements (Product
Price, Palace, and Promotion) are implying here simultaneously:

Product:

The Toyota corolla has been achieving success in term of brand since 1970 in Pakistan when
the Toyota corolla were not manufactured in Pakistan but at the import basis this brand very
tremendously took palace in the Pakistan auto market. The most famous models was Corolla
1976, 1978, 1986 and many list of the yearly series of the models that still consider as
powerful and memorable brand. Toyota corolla assembling, progressive manufacturing and
marketing of Toyota vehicles in Pakistan since July 01, 1990. Through the gaining advantage
of prepared loyal customers before starting production of Toyota corolla brand in the

15
Pakistan they did not need to much hard struggle to give awareness and make customers
because the customers already well known about the product as compare to other companies.

Toyota Corolla is well standardize product in the market and its current products are XLI,
GLI, 2.OD, and ALTIS Cruisetronic in each of the product they providing features, reliability
and upgrading to make more loyal customer and providing more satisfaction to customers .

PRICE:

Toyota has become an attraction in the eyes of many auto consumers worldwide. Toyota has
built its reputation not only by producing high quality vehicles at affordable prices, but the
brand and marketing skills they use through tactful pricing strategies. Toyota has
differentiated their prices from the traditional pricing set up of many of the other automobile
makers. However, it is their effectiveness in targeting consumers' needs and wants that has
pushed them to the top.

Toyota believes the role of purchasing is through long term and stable production of quality
products at the lowest price in a fast and timely manner. The main objective of administering
prices within any company in the automobile industry is profitability and to consistently
increase efficiency in their product line. Toyota takes on slightly different approach for
pricing strategy with a sale - oriented objective. Although the variables are the same, the
formula is adjusted strategically into the selling price - cost = profit. Indus Motors Company
believes that its markets and consumers is what determine the selling price. Waste
elimination is given top priority which reduces cost and by continuously reducing these types
of costs, it will result in persevering the company's profit growth.

Physical Distribution/ Place:

Palace is another important element to keep focus very carefully. Toyota corolla as Well
Established and well known in over all world the one factor of that reason is that they apply
strategy with authentication and Very genuinely. The Toyota Indus have approximately
Twenty Eight dealers in over all Pakistan and Seven Dealers existing in Karachi they
Distributed in four dimension namely Eastern Motors, Western Motors, Northern Motors,
and Southern Motors and other three Dealers are engaged in different location each Zone

16
partially cover whole of the Karachi. This competitive advantage goes to the Toyota Indus
Motors regarding place because in the Pakistan they have largest range of Dealership. It is
apart of the marketing strategy which they want to keep close to customers and try to over
come the distance between them and customers they also try to make product more
conveniently available for customer.

Promotion:

Promotion is the next most important element of marketing mix without this element
marketing mix may never completed not only this the business can affected just because of
this arena. Indus Motors Company has been applying promotion strategies in many ways, by
ads, Giant Billboards at Bypass and super highway, Sponsors in Games, participation in
exhibitions, Display centers, Display in big Public market (as Indus Motors Company did in
Pak Tower three year later which they display by new trend that the car was in space that was
a unique way of promotion), The Development of top quality logo and photography which
can be used in ads, brochures, name cards, etc. Toyota also Taking advantage through
advancement of technology in which, they promote via emails, web banners on famous and
expensive sites of internet, etc, Participate as a part of Pakistani society in this aspects open
institutes, establish Hospitals, social walk and many aspect which Indus motors company
contribute shoulder to shoulder in these social activities also give support to Indus Motors to
promote its Product. The aim is to make a place in customers’ mind that they are being with
them. Indus Motors participate in maximum tools of promotion as some mentioned above
because Indus motors believed that provide more and more information to customers to
achieve attractiveness.

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 .a Structure of marketing department

Structure of Marketing Department

Director

Director Operation Director Admin

Senior Service Senior Parts

Manager Manager
Senior Sales
Manager

Manager Corporate

Manager Sales

Deputy
manager

Deputy
manager

Assistant Sales Assistant Sales

executive executive Assistant Sales executive Assistant Sales executive

Assistant Sales executive

Assistant Sales
executive
Senior Sales Executive

Senior Sales Executive

Sales Executive

Sales Executive

Junior Sales Executive

Junior Sales
Executive

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 .a Marketing Functions of Indus Motors Company (IMC):
we know that Marketing Department is the very essential tool and it excellent essence of any
business same as this strategy imply by Toyota company to its authorized Dealer in the light
of customer brand loyalty my concern will deal with dealers and customers it is the target of
the project. As above I have shown the structure of the Indus motors’ authorized dealer
(regarding to my target dealer Toyota Southern motors).

Sales, Service and Spare Parts all from the same facility Toyota Southern Motor compares to
the Total Quality Management style of Toyota Indus Motors. Toyota's TQM characteristics
will be compared to the characteristics of Southern Motor, and the differences between the
two companies will be discussed. Finally, this function will address how Toyota's TQM
practices could have been integrated into Southern Motor and how applying these principles
could have saved the business.

Toyota's corporate philosophy revolves around customer satisfaction, which is symbolized

ed in the 3S Concept. Toyota is the Pioneer in the 3S System, which offers Sales, Service and
Spare Parts all from the same facility.

Sales Facilities:

Indus motors imply on its dealers that make facilitate customer to buy the product for that
Indus Motors Company given the dealership authority approximately 28 in all over the
Pakistan. Note that it is the highest number of dealers regarding automobile sector just in the
Karachi city Indus motors Company has 8 dealer main and big dealers are Eastern motors,
Western motors, Northern Motors, Southern Motors All of the Sales strategies followed by
Indus motors itself and it is directly involve as well time by time Indus motors intelligence
keep an eye on this sector to monitor the sales activities not only this the some time Indus
motors’ intelligence conduct interview with customer This strategy namely say “Quality
Sales”.

One of the parts of Indus Motors Company is to facilitate its loyal customer and overcome
customer’s ambiguity, buying conflict and provide them maximum information before
purchase. The Indus Motors Company is very conscious in sales as well Customer
Satisfaction.

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Service Facilities:

Indus Motors Company believed that customers are the key of success just need to analyze
that factor which they can utilize that key. Service is another Key element of the Indus
Motors Company off course, customer service is one of the part of service in which they get
engage with the customer to provide them service related to product. The service may be
provide maximum information, problem solution regarding product, remove irritation etc.
some of the key factor they always keep in mind about customer care that they Keep
Constant Communication with Customers, always Respond Quickly to their Needs, give
them Satisfaction not only on product but also on other aspects, immediately Compensate for
Loss, Make Products Available for customer, support and Render Advice, Boost customer
and as well as Product Confidence, Give Special Attention and listen very carefully, always
Protect Customers Rights, Maintain big standards of Cleanliness, Hygiene and Smoothness
and as they are looks original in reality, one of the most important part is that they Make
Customers Part of the Organization.

Indus Motors, 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.
Southern motors consider purchase of car as the beginning of relations with customers.

Spare Parts:

Indus Motors Company has been providing the next Best Facility to its customer of
availability of spare parts. Indus motors provide the facility of Genuine part just from Indus
motors’ authorized dealers with that they provide the guarantee of that spare part other wise
in local market Toyota is not providing genuine part so it is also an assurance or customer
loyalty that they can buy genuine spare parts only from authorized dealers Toyota Indus
motors provide range of warranty on spare parts some of Toyota dealers offering interesting
attraction like” you buy, we fit it” means Buy Toyota genuine parts from Toyota dealers and
enjoy 6-8 month's Toyota Warranty, contribute to high moral and enjoy the satisfaction of
using 100% genuine Toyota Parts.

3. CHAPTER# 3

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3.0 Marketing Strategies:
It is important to the marketing strategy to develop an attractive image to the trade. This can
be done in a number of ways:

1. Advertising. Toyota Motors suggested Indus Motors Company as the best place to
advertise. In the regional telephone directory Yellow Pages two classification are
possible: Auto Restoration--Antique & Classic, or Auto Body Repair & Paint. These two
publications both have directories. In local Newspapers, a color 1/4 page ad would run
per quarter year and a quarter page ad in the Yellow Pages runs every month.

2. Join The Chamber of Commerce. The image of Toyota Corolla restorations would be
elevated by joining the Chamber of Commerce. This would low cost per year.
Advertising on their electronic sign alongside the Interstate at present the sign would give
100 impressions per day to the Indus Motors Company. We expect this to
increase Toyota Corolla's income by about 12% during that 90-day period.

3. Advertising. Development of a top quality logo and photography which can be used in
ads, brochures, name cards, etc. Not counting printing costs, which vary by quantity and
quality of paper chosen,

4. Participation in Car Shows. Another image-building marketing tactic is participating in

local car shows. These car shows are held just for the fun of it. This would require time
and effort, but not much in the way of money. This should be coordinated to
insure compatibility with the show's concept and our image. So every dealer should have
to make it possible in that area with the coordinate to other one Toyota Corolla dealer. a
photo album can never compete with the real hardware.

In addition to the above-mentioned activities designed to elevate the company's image, it is

essential to market directly to the selected target clients who all go to local car shows.
Success in making inroads into these names would set the stage for entry into the more
prestigious auto restorer’s guild.

Marketing these prime prospects must be carried out in a thoughtful organized way. Color
literature including the newly designed logo should be completed as a first step. When
marketing these prospects it will be important to present a portfolio of Toyota Corolla’s most

21
innovative work. A relaxed face-to-face meeting, resulting in good communication between
Toyota Corolla and the project car's owners, should be all that's needed to generate a first
order.

.a Market Segmentation strategies:

The market for auto restoration reflects the buyer's income bracket and standard of living in
much the same way that the restoration market is segmented. Below are listed market
segments based on size of pocketbook and quality of production:

1. Material Outlets. Suppliers of auto body and paint supplies, interior supplies and
mechanical parts.

2. Simple jobs. Simple repair jobs and service are the next level in IMC sales chain.

3. Paint. Custom paint work such as murals and flames will provide some income.

4. Restoration. Complete restoration jobs, and complete paint work.

5. Custom Work. Custom body work such as, top chops and channels, this would be
considered IMC’s high end of work.

The average age of our customers is 30 to 65 years old with an average income is up to
600000 per annum, with most full restoration customers having incomes of over 60,000. The
gender is predominantly male, with a college education. Some of the more recent trends
come from the increasing coverage of IMC on television, with shows such exhibition, display
centers, public displays etc. 3 years ago IMC did exhibition in Karachi which display car
were hanging in space that was really watch able and people were attracted to see. These
types of shows have helped auto restoration to grow to a billion Rupees a year industry in the
Pakistan.

.a Target marketing strategies:

Indus Motors Company’s target market segment strategy includes the use of local radio, local
famous newspapers i.e. Daily Jang, the News, Dawn newspaper, magazines, billboards,
and television stations to convey the word about its business. These publications are
distributed to a wide variety of people who are all interested to buy Toyota Corolla cars, and
other Toyota cars. IMC strategy includes using people's emotions to persuade them to use a

22
Toyota Corolla. IMC does not limited to just a couple of different types of advertising, they
also use press releases and magazine articles. IMC’s website, which is a well designed, and
cost effective way to tell people about them and those authorized Dealers overall the Pakistan
and it's services, IMC use every way within it's means to convey its message to the public.

IMC’s market strategy is to flood the magazines and newspapers with its advertisements,
doing newspaper ads for news lovers to enjoy during morning and afternoon free times. This
is due to the fact that more people attract to the paper during these time frames, so IMC has a
really catchy ad during these time it's probable that IMC will gain some customers from it.
The magazine publications go out to hundreds of thousands of people every month, so all we
need is to convert a small percentage to sales and we'll achieve our success. But we don't stop
there; IMC is also joining the chamber of commerce to network its business. And sometime
IMC used to flyers at the car shows to promote or company, and of course business cards.

The customers who Toyota Corolla plans to target want:

7. Quality full Custom services or restoration, including engine, custom body work and
paint.
8. Timely completion of the work on their cars.
9. Competitive rates.
10. Close attention to detail, and commitment to quality.
11. Ability to offer ideas for alternatives and close customer services.
Toyota Corolla has the ability to meet all these demands. The Indus Motors Company has a
long work history in this field, and has extremely high standards in regards to the company’s
work. The Toyota motors will make sure that the Indus Motors company employees and
dealers meet these standards. The IMC also understands that, not only quality work, but the
attention and care bestowed on the customer and their cars will result in a good reputation.

.d Product Planning and Development:

Product Planning:
Consistent product diversification and product improvements also helped Indus Motor
Company strengthen its market leadership position, with market share rising sharply from

23
41% to 57% in the 1300cc and above segments in which Corolla competes with other major
brands. Hilux, in the Light Commercial vehicle range, continued to maintain over 90%
market share.

Toyota Corolla brand management is based on “Brand Guidelines,” which describe the
profile and differentiating criteria of each individual brand. The guidelines are being
expanded to include regulations for sharing components by business units and the importance
of such a strategy to the brands. Market success in the future will increasingly depend on
Toyota Corolla ability to maintain each brand’s own specific character. Indus motors
company therefore working intensively on strengthening the brand-related attributes that
influence the design of the products and the values associated with each particular brand.
Toyota Motors brand portfolio gives Indus motors of tremendous ability to offer attractive
products in all segments and to all customer groups in Pakistan.

Continuation of EAC’s successful work

In 2002, the Executive Automotive Committee (EAC) did groundbreaking work as a
platform for the discussion and preparation of decisions affecting more than one of our
automotive divisions. The committee coordinates all cross-divisional issues, protects the
identity of the Group’s brands, and accelerates the realization of synergy potential. Last year,
the EAC particularly focused on evaluating and optimizing the Group’s portfolio of products,
power trains and components.

Expanded multi-brand management

In recent years, multi-brand management has become one of the main challenges facing the
automotive industry. Whereas in 1980, 28 independent manufacturers had an average of only
two brands each, the remaining eleven independent car manufacturers now have an average
of more than six different brands each. Daimler- Chrysler owns six passenger car brands,
eight commercial vehicles brands and one accessories brand, supplemented by
DaimlerChrysler Services’ comprehensive range of financial services for DaimlerChrysler’s
automotive brands. The challenge now consists of managing the interplay between brand
differentiation and economies of scale. One goal is to strengthen the identity of the individual
brands and increase their value. At the same time, economies of scale must be achieved by
means of cross-divisional cooperation and the exchange and common use of components,

24
systems and platforms, in order to improve the overall cost position and thus to make the
whole Group even more competitive. However, none of the Mercedes-Benz platforms will be
shared with other brands.

Identifying synergy potential with components

One of the tasks of the Indus Motors Company is to utilize opportunities to standardize
components for use by different divisions or business units. In order to prevent dilution of
brands, only those components were selected that are not relevant to brand identity and
which can be sourced globally. Under the leadership of the IMC the Procurement and
Development departments defined major groups of components, formed corresponding teams
and developed a cross-divisional component strategy, thus enabling substantial savings to be
made

Joint use of engines and transmissions

In order to exploit synergies, existing and future engine and transmission series were also
examined. One example of the findings was that there are currently eight different families of
four-cylinder in-line engines at the Toyota Group. By the year 2005 Indus Motors Company
(IMC) intend to reduce this number by 25%. The “World Engine” is to contribute
significantly to this goal. This is a four cylinder gasoline engine that is to be developed and
manufactured jointly by Toyota motors.

Cooperation on environmental issues

The tightening of legislation worldwide regarding such matters as fuel consumption and
emission standards, occupant safety requirements and the recycling of vehicles requires
closer cooperation between the divisions. R&D expertise gained in the field of pioneering
alternative drive systems will be applied over the whole Group even more quickly in the
future. Another example of how processes can be shared is provided by the method
developed by Mercedes-Benz for dealing with end-of-life vehicles. This is now also
employed by Chrysler Group, and our alliance partner Mitsubishi Motors has decided to use
it as well.

Cross-brand product planning (long range product plan)

25
A detailed comparison of product planning has been carried out with the goal of identifying
product overlaps and gaps in market coverage. One of the findings of this analysis is that
there is hardly any product overlap within the Toyota Motors Group. However, there is a gap
in the small-car segment, which is to be closed in the year 2004 with the launch of the coure.

Furthermore, the committee identified possibilities for the joint creation of vehicle
architectures. A good example is the rapidly growing sport-utility and sport-tourer segment,
in which we plan to utilize market potential by implementing a coordinated, cross-brand
strategy. Having comprehensive information on all vehicle segments in Pakistan, on their
appeal, their future potential and the degree of competition, provides a basis for developing
new, innovative products and opens up opportunities for exploiting synergies across the
individual business units.

Product Development:

One of the reasons for the elusiveness of Toyota secret for success is that there is no single
secret pulling it all together. Toyota’s success comes from hard work excellent engineers a
culture of teamwork an optimized process simple but powerful tool that work and kaizen that
improves improve and improve on all if these. In short, it is a truly lean system that
continually evolves.

Toyota process development has been evolving as a living system to fit its unique
environment for many years. The Toyota Product Development system model has three
primary subsystems: 1. process 2. People 3. Tool and technology in a lean Product
Development system model these three subsystems are interrelated and interdependent and
affect an organization ability to achieve its external

The Product Development strategy based on these Principles:

Principle 1 establish customer defined value to separate value added activity from waste
Principle 2 front load the pd process while these is maximum design space to explore
alternative solutions thoroughly
Principle 3 create a leveled pd process flow

26
 Principle 4 utilize rigorous standardization to reduce variation and create flexibility and
predictable outcomes
Principle 5 develop a chief engineer system to integrate development from start to finish
Principle 6 organize to balance functional expertise and cross-functional integration
Principle 7 develop towering technical competence in all engineers
Principle 8 fully integrate supplies into the pd system
Principle 9 build in learning and continuous improvement
Principle 10 build a culture to support excellence and relentless improvement
Principle 11 adapt technology to fit your people and process
Principle 12 align your organization through simple, visual communications
Principle 13 uses powerful tools for standardization and organization learning.

.a Brand Positioning:
According to Indus motors Brand positioning Strategy brand is based on provide quality
products for customer satisfaction Indus motors always keep in mind the needs and wants of
customers, they always think by customers’ point of view. Toyota Corolla has continue been
offer the quality and value for which the brand has long been known. In style and substance,
the Corolla has a strong, new identity, all its own. It will be far more than merely the next-
generation Corolla and will position itself perfectly above our entry-level and below our sales
leader.

Toyota Corolla positioned its brand in many aspect the theme is not only sales of product
Rather quality sales, here is a difference in Sales and Quality Sales the difference is in simple
words, a sale that done through well set standard format set by company in which give fair
value to customer, avoid ambiguity, irretentiveness, provide full level of information, deal
must based on make long term relationship not deal by selling product and many more
characteristics involved in selling quality sales. Only sales aspect mostly focused on selling
and generates profit of company, it is not an effective strategy to make customers for long
lasting rather the brand position may be damaged.

The difference in sales and quality sales is make the position in customers’ mind and the
target to make loyal customer. The Quality sales gives confidence to customer, brand image
is exist and survive in customers’ trustworthiness on company and Indus Motors Company is

27
very conscious to maintain Brand loyalty in customers mind. Same as Indus Motors
Company (Pakistan) is very closely look after and maintain its other 2S (service and Spare
parts). These three factors are play a vital role in maintain brand position in customers’ mind.

Toyota Corolla has been positioning by some other related specification and technical
aspects, according to this, the car is available in five model trim levels including Standard,
LE, XLE, S, and the XRS. Two powertrain options are available for all models. The 1.8-liter
four-cylinder engine capable of pumping out 132 hp at 6,000 rpm and 128 lb.-ft. of torque at
4,400 rpm; and the 2.4-liter four-cylinder engine with 158 hp @ 6,000 rpm and 162 lb.-ft. of
torque @ 4,000 rpm. The engines are equipped with powertrain including like fuel pumps
(like Volvo fuel pump). Both engines are also combined with either five-speed manual or
five-speed automatic transmissions.

The 2009 Toyota Corolla retained some of the design and functional characteristics of the
previous model. Of course, the car also comes with a host of new features inside and out. For
the 2009 model, the Corolla sedan features a wide low profile developed by Toyota Design.
The S and XRS model trims feature a standard body kit, which includes front underbody
spoiler, fog lamps, rocker moldings, upper and lower rear spoilers, and engine under covers.

Inside, all 2009 Toyota Corolla models offer a sporty and comfortable interior features. The
2009 Corolla retained the interior dimensions like the headroom, legroom and shoulder room.
The interior also features a wide range of functional amenities including center console side
pockets, storage box, front and rear door pockets, console box with a large-capacity main
tray, overhead console, and a rear-seat center armrest with drink holder. Toyota won't
compromise the safety of its customers. The interior also features an extensive list of safety
equipments to provide the best occupant protection. These include standard driver and front
passenger airbags, front seat-mounted side airbags, two-row side curtain airbags, and active
headrests on the front seats.

Toyota also offers Anti-lock Braking System (ABS) and Vehicle Stability Control (VSC)
with Traction Control (TRAC) on all 2009 Toyota Corolla models as an additional safety
feature.

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 .a Pricing Strategies:
Indus motors company has a mission to give good quality (Toyota corolla as it is our target)
cars, achieve price-quality leadership overall the Pakistan. The pricing strategy is as they
targeted that Cost + Profit = Price. IMC is very crucial in this aspect as well because as the
standard of quality they do not perceive to give burden of high price at customer or IMC does
not low or below the price as they producing Quality car and value as customer perceive in
this aspect.

.a Advertising and Promotion:

Indus Motors Company (IMC) has a modest program of marketing its services that include
the following:

1. Newspaper and magazines ads

2. Press releases and magazines articles
3. Car shows
4. Website
5. Calendars

Each of these marketing approaches has the advantage of being low cost and creating service
awareness. The company is also make possible of having a grand opening program that
would sponsorship, charity, social walk, donations, exhibition, functions, display in the large
market (i.e. few month ago did advertise in Pak Tower. Karachi). and other promotional
ideas.

IMC feel that the company website is one of our best marketing strategies. It is linked to top
listed web sites like Google.com and many other classic car restoration oriented websites and
portals. The site has news about IMC business, answers to FAQ's and pictures of cars
restored and the process of the restoration.

4. Distribution Strategies:
There is no specific demographical location for potential customers. Indus motors are located
all over the Pakistan. They send their cars to whom and where they feel will do the best job,
based on reputation not only this IMC providing the opportunity to customer that they can
buy the Toyota corolla from authorized Dealers. These dealers are located in over all

29
Pakistan to facilitate the customers in Karachi city IMC’s almost Seven Dealers are engaged
with customers. In location aspect the aim of IMC is to make product possible in reach of
customers so this reputation comes largely from "value of customer". This will not only
increase the number of potential customers for Indus Motors Company in the leadership
phase, also have been providing a valuable word-of-mouth reputation for them.

.a SWOT ANALYSIS OF INDUS MOTORS:

Strength:

Investment by Toyota factory in Pakistan profits tremendously rise against the other
competitors in motor industry trend. Net profits rose 0.8% to 1.17 trillion yen ($11bn;
£5.85bn), while sales were 7.3% higher at 18.55 trillion yen. Commentators argue that this is
because the company has the right mix of products for the markets that it serves. This is an
example of much focused segmentation, targeting and positioning in a number of countries.

In 2003 Toyota knocked its rivals Ford into third spot, to become the World's second largest
carmaker with 6.78 million units. The company is still behind rivals General Motors with
8.59 million units in the same period. Its strong industry position is based upon a number of
factors including a diversified product range, highly targeted marketing and a commitment to
lean manufacturing and quality. The company makes a large range of vehicles for both
private customers and commercial organizations, from Hiace. The company uses marketing
techniques to identify and satisfy customer needs. Its brand is a household name. The
company also maximizes profit through efficient manufacturing approaches (e.g. Total
Quality Management).

Weaknesses:

Being big has its own problems. The Pakistan market for cars is in a condition of over supply
and so car manufacturers need to make sure that it is their models that consumers want.
Toyota markets most of its products in the all over the Pakistan. Therefore it is exposed to
fluctuating economic and political conditions this markets. Movements in exchange rates
could see the already narrow margins in the car market being reduced.

The company needs to keep producing cars in order to retain its operational efficiency. Car
plants represent a huge investment in expensive fixed costs, as well as the high costs of

30
training and retaining labour. So if the car market experiences a down turn, the company
could see over capacity. If on the other hand the car market experiences an upturn, then the
company may miss out on potential sales due to under capacity i.e. it takes time to
accommodate. This is a typical problem with high volume car manufacturing.

Opportunities:

Honda and Toyota now have a reputation for manufacturing environmentally friendly
vehicles. Honda has City hybrid, and Toyota has Corolla. Both are based upon advance
technologies developed by the organization. Rocketing oil prices have seen sales of the new
hybrid vehicles increase. Toyota has also sold on its technology to other motor
manufacturers; such moves can only firm up Toyota's interest and investment in hybrid
R&D.

Threats:

Product recalls are always a problem for vehicle manufacturers. In 2005 the company had to
recall 88000 private and commercial sports utility vehicles due to faulty front suspension
systems. Indus Motors did not give details of how much the recall would cost. The majority
of affected vehicles were sold in the Karachi while the rest were sold in overall other cities of
Pakistan.

As with any car manufacturer, Indus Motors faces tremendous competitive rivalry in the
Pakistan car market. Competition is increasing almost daily, with new entrants coming into
the market from within the Pakistan like China. The company is also exposed to any
movement in the price of raw materials such as rubber, steel and fuel.

4. CHAPTER# 4

a. Introduction of Competitor:

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

31
months, construction and erection of machinery was completed. 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. The Dealerships
Network has expanded and now the company has sixteen 3S (Sales, Service and Spare Parts)
Pit stops network in all major cities of Pakistan.

Since the commencement of production in 1994, the company has produced and sold more
than 150,000 cars till Oct, 2008.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. the
statement of Honda atlas “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
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. Currently we are offering 8 different
models of Honda CIVIC and CITY cars in wide range of colors with unique technological
and other features.

Company Performance:

The Company earned Profit before tax of Rs.55.2 million as against Rs.30.9 million in the
same period last year. This was possible due to control on overheads, among others. The
administrative and selling expenses remained constant at 1.9% of total sales. The other
income increased from Rs. 36.6 million to Rs. 55.2 million including from higher return on
the bank deposits. Since the last year, the company focused to improve liquidity through
reduced short term and long term loans which resulted in Rs. 0.5 billion at the end of the
quarter as against Rs. 2 billion in June, last year. This positive result was in spite of the
reduced sales at Rs. 3,706.6 million during the quarter ended June 2008 against Rs. 4,535.6

32
million in the same quarter last year, and the reduced gross profit to Rs. 94.5 million from
last year’s Rs. 156.7 million - due to increase in material cost and depreciation of currency.
We look forward to improved results, quarter after quarter, due to traditional Honda approach
- Quality, Cost, Delivery and Management - QCDM. Your company is constantly in process
of re-evaluating its products and processes. Relying on its international resource of R&D and
global experience, the Honda product line up is in a constant process of evolution. Honda is
proud to have introduced pioneering products in Pakistan. We will continue our tradition of
innovativeness and offer our valued customer global technology and quality, year after year.

Vision: Market leader in the motorcycle industry, emerging as a globally competitive centre
of production and exports.

Mission: A dynamic, profitable and growth oriented company through market leadership,
maximizing export and excellence in quality and service; to ensure attractive returns to
equity holders; reward employees according to their ability and performance; to foster a
network of researchers and engineers ensuing unique contributions to the development of the
industry; customer satisfaction and protection of the environment by producing emission
friendly green products and to remain a good corporate citizen fulfilling its social
responsibilities in all respects.

Quality:
A dynamic, profitable and growth oriented company through market leadership, maximizing
export and excellence in quality and service; to ensure attractive returns to equity holders;
reward employees according to their ability and performance; to foster a network of
researchers and engineers ensuing unique contributions to the development of the industry;
customer satisfaction and protection of the environment by producing emission friendly
green products and to remain a good corporate citizen fulfilling its social responsibilities in
all respects.

.a Honda Atlas Marketing Objective:

Honda Atlas Pakistan Limited as well established automobile companies in Pakistan they
always keep focus on that mission and vision in the same direction HACPL does target of
goal achievement. The standard of the HACPL according to marketing is very high, as

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Honda atlas and Indus motors are Japanese companies, those marketing strategy
approximately same. HAPL existence and central point of Honda Atlas to sell dream Car
because in Honda point of view “Power of Dreams” itself attracting the customer for that
need to build unique product it will sell themselves.

Somehow, HACPL has similar marketing objective to Indus motors company both
companies have been targeting in terms of provide satisfied customer service, make possible
to keep in reach the product, strive to give outstanding service to 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 both companies
customers’ absolute confidence in those cars, clearly evident from the ever increasing sale
volumes. Although Honda atlas has a selling advantage of other product line in which
generators and vacuum cleaner in Pakistan perspective.

In the constant endeavor of Honda Atlas and Indus motors company to achieve No .1
Customer satisfactions with respect to loyalty of brand. Honda Atlas and Indus Motors
Company have been committed to meet customer expectations, and to provide good value for
money.

.a Honda Atlas Marketing Mix:

Marketing mix elements or 4p’s strategy of marketing is the essence of any business same
like this strategy of marketing mix apply in top listed automobile company overall the world
Honda atlas these key elements of marketing mix make the difference between Honda atlas
and Indus Motors Company in this aspect Honda atlas also comes up with a strategy to figure
out which strategy is best for them given the objectives and resources. They must also
consider the strengths and weaknesses of the company as well as opportunities and threats.
To enhance the aptitude of the companies, a marketing mix strategy is introduced. The
marketing strategy will create lucrative marketing mixes for defined target markets.

As we know the marketing mix is composed of four key elements to execute or examine for
marketing campaigns. Honda atlas has been enhancing their outcomes and marketing value
by implementing the right combination of the four P’s. But in Pakistan aspect the marketing

34
mix strategy different to Indus Motors Company. The “Four P’s” of marketing are: product,
price, placement, and promotion.

Toyota Indus Motors Company marketing Mix elements almost fulfill the requirement Four
P’s of marketing mix but Honda atlas is much below as compare to Toyota Company. In
marketing Mix aspect we will discuss little awhile about 4p’s, then it will be much easily
understandable and analyze that what factor make the difference between both companies?
Also which one company has been getting success as compare to other one? These
identifications will make a bright picture for analysis about Indus Motors Company and
Honda Atlas Company. Customer loyalty exists because of these four elements and these
elements are the basic fundamental of success. These four elements (Product Price, Palace,
and Promotion) are implying here simultaneously for comparison by Indus Motors Company:

Product:

Honda Atlas has competitive edge to Indus Motors Company in term of product line. The
Indus Motors Company has been producing and doing business of vehicle in Pakistan but
Honda Atlas has been producing wide variety of product. Honda Atlas’ product line is
divided by manufacturing of bikes, generators, Water pumps, brush cutters, petrol engines.
These all product are in number of series like in bikes series they manufacturing Honda
CDI70, Honda CD100, Honda CG125, and Honda Delux125. This large series in bike
products has been giving competitive edge over Indus Motors Company. In bikes segment
Honda at No. 1 position. Same as other product line except in car manufacturing.

The comparison by product between our main target area of Toyota Corolla and Honda City,
Indus Motors has been maintaining good position in Pakistan. Toyota Corolla has been
positioning in consumers’ mind by providing features, reliability and upgrading. Loyal brand
series of Corolla is XLI, GLI, 2.OD, and ALTIS Cruisetronic is top positioning in the
customers’ mind. Although, the Honda atlas has also one of the product line in car series is
Honda City…….--------, Toyota Corolla and Honda City Offering features in many aspects
as I have been discussed before in which I found result that features of both company brand
has been taking place in customers’ mind by brand loyalty.

Price:

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As our target of research is Brand loyalty comparison of Toyota Corolla and Honda City.
Comparison by price of Indus motors brands (Toyota Corolla) and Honda Atlas Brand
(Honda City) have become an attraction in the eyes of many auto Pakistani customers.
Toyota Corolla has differentiated their prices from the traditional pricing set up as Honda
Atlas. Indus Motors Company is very conscious about Price and Quality; they built its
reputation not only by producing high quality vehicles also at affordable prices. Toyota
Corolla (GLI) current price is Rs. 1,389,000 and Honda City (AT) current Price is Rs.
1,439,000. At this point we can easily understand that the price of Honda city is higher than
Toyota Corolla means Honda City is an expensive car more than Toyota Corolla. However, it
is Indus Motors Company’s effectiveness in targeting consumers' needs and wants that has
pushed them to the top.

Toyota believes the role of purchasing is through long term and stable production of quality
products at the lowest price in a fast and timely manner. The main objective of administering
prices within Honda Atlas is profitability and to consistently increase efficiency in their
product line. The traditional pricing strategy of Honda Atlas is formulated into the cost +
profit = selling price. The reason behind this strategy is that When Honda Atlas makes
changes and improvements, cost of production increases causing the selling prices to go
higher. Honda Atlas does not want to cut their targeted return and therefore the costs are
passed on to the consumer to maintain their profit margin. Mean that Toyota (Corolla)
Pricing Strategy slightly different approach with a sale - oriented objective. Although the
variables are the same, the formula is adjusted strategically into the selling price - cost =
profit. Toyota firmly believes that its markets and consumers is what determine the selling
price. Waste elimination is given top priority which reduces cost and by continuously
reducing these types of costs, it will result in persevering the company's profit growth.

Place / Physical Distribution:

The next important part to comparison is the place or Physical Distribution. It is the way of
facilitate customers and make more convenient for customers Indus Motors Company and
Honda Atlas applying selling strategy by authorized Dealers. Both companies are not taking
responsibilities from any unauthorized or local Dealers.

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Honda Atlas Network of dealership has expanded and now company has sixteen 3S (Sales,
Service and Spare Parts) and thirty 2S (Service and Spare Parts) Pitstops network in all major
cities of Pakistan. But the network of Indus Motors Company is much expanded than Honda
atlas, Indus Motors dealership has expanded by Twenty Eight 3S (Sales, Service and Spare
Parts) all over the major cities of Pakistan. In Karachi Aspect, Honda Atlas has four Dealers
of car market rather, Indus Motors Company has Seven Dealers existing, and another
differentiation is that Toyota Dealers Provide facilities of 2S at same time and same place. In
this aspect Toyota Dealer doing more facilitates to loyal customer because, customer has no
need to take pain of go another specify location. Indus Motors much committed to customer
satisfaction as Customers’ wants to take service or Spare parts.

Promotion:

Indus Motors Company and Honda Atlas (Pakistan) always strive to give outstanding service
to valued customers. In addition to providing regular service to customers, companies also
regularly conducts Service Campaigns, to facilitate customer's need for service. This has
given to customers’ absolute confidence in Toyota Corolla and Honda City cars. Honda also
participates in promotion of that product. But as Honda Atlas has a wide Verity of Product
line, they rapidly and quickly promote products more than Indus Motors. Promotion of
Honda products has been depend on nature of product because Honda Atlas as we know that
a wide range and variety of products as we discussed about the series, for example Honda
wants to promote its bike product for that company may use Publicity like street banners,
showroom display, announcement in newspapers, catalog, broachers, public market display,
and many other option may applicable.

.a Marketing Operations/ Function of Marketing Department:

Marketing operation functions is the very essential tool and it is excellent essence of any
business same as this strategy imply by Honda Atlas Company to its authorized Dealer. It is
dealing with brand loyalty of Honda products my concern exists between dealers and
customers. Honda Atlas also depends on 3S as Indus Motors Imply its strategy in market
operations but also Honda Atlas has been facilitating with separately 2S as well (Service and
Spare Parts). This offer of facilities Honda Atlas Motor compares to the Total Quality
Management style of Honda Atlas Itself. These 3S and 2S always monitor by Honda Atlas

37
itself that what’s going on in which Direction? These 3S and 2s has been facilitating through
Dealers. Let we discuss these three elements simultaneously:

Sales:
According in all aspects of sales our main concern is regarding Toyota Corolla and Honda
City but somewhere we have to understand which Way of sales of Honda Atlas Motors is
quite well standard to Indus Motors. The HACPL’s Sales Deals by its authorized Dealers.
The dealers engaged in providing facilities the customer to buy Honda Brand(s). Honda Atlas
Company has given dealership authority approximately sixteen Dealers (cars), Twelve
hundred and fourteen (1214) Bikes Dealers, and more than hundred has been working and
dealing with Power Products in all over Pakistan. But Indus Motors Company just Deals in
Vehicle sector that’s why Toyota Company has twenty eight Dealers network regarding
Vehicle sector but in other ways, Indus Motors has no choice to compare by other Honda
products. Note that it is the highest number of dealers’ categories regarding bikes and Power
Product sector just in the Karachi city Honda Atlas has four dealers have been dealing in Car
Sector and hundred Dealers deal in Bike segment. All of the sales strategies followed by
Honda Atlas Itself and it are directly involve and time by time Honda Atlas keep attached
with each sector, do analysis the sales, performance of the dealers most importantly after
sales, customer satisfaction report. Sales facilities part of Honda Atlas is to facilitate its loyal
customer and overcome customer’s ambiguity, buying conflict and provide them maximum
information before purchase. Honda Atlas is also very conscious in sales as well as
Customers Satisfaction.

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, Honda
Atlas has 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.

Services

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The product sold is not means that close the window for customer now, it is beyond that
further after sales customer has largely engaged to deal in service and Spare parts aspect.
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 Product.
Honda Atlas considers purchase of any product as the beginning of relations with customers.
To prolong this relationship and encourage the customers to keeps on coming to the dealers,
providing customer service the reason for this facility is to stress on the importance of
periodic maintenance. Periodic maintenance is essential for every existing 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..

HACPL is providing regular trainings to the dealers' technicians. The trainings cover all
aspects of the cars and related Products 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.

Indus Motors Company Gain competitive edge that they providing service more closely as
they have twenty eight 3S network engaged all over in Pakistan. This issue is very critical,
Indus motors company makes possible the product should in reach of customer, Honda Atlas
customers facing problem regarding Service sector as well because as they thought to go
service center most of the time they take pain to go on long distance service center. Some
customer get hyper just by think to concern with service center and this may become time
consuming, in other side Indus Motors Company make it easy in reach of customer and more
facilitate.

Spare Parts:
The Spare parts element is heavily concern and involved with brand loyalty of Toyota
Corolla and Honda City because cost of spare parts also consider when customer want to buy

39
the car, customers are also price conscious, availability of spare parts and as well as quality
of spare parts. Indus Motors company offer affordable price as per luxuriousness of car and
its availability is easy in reach; every dealer is able to provide the spare parts in 24 hours and
its quality is fulfill by standard of parts as well as Indus Motors Company offer warranty (its
depend on nature of auto part). IMC is not guaranteed if customer buy spare part from local
market and spare parts price is much cheaper than Honda Atlas.

Honda Atlas always follow those strategies which they can gain customer most attention to
its brands. Honda Atlas always make possible to be genuine and look genuine. Honda attract
its customer in under the statement that “Buy Honda genuine parts from Honda dealers and
enjoy 6 month's Honda Warranty, the Honda warranty can vary product to product and
contribute to the country’s economy and enjoy the satisfaction of using 100% genuine Honda
Parts. But if customers buy the parts from open market; most probably is that customer may
be buying smuggled parts and thus committing a moral crime and robbing your country from
precious revenue, customer may unable to claim but if customer buy from Honda authorized
Dealer so the part will be 100% genuine, customer has no need to buy from open market, the
trust between customer and Honda Dealers become long lasting etc. It is the Honda Atlas’
aim to be No.1 in customer satisfaction in all three S, Sales, Service and Spare Parts and two
S in the same time.

.a MARKETING STRATEGIES:
.a Market Segmentation Strategy:

Indus motors company segment the market only in vehicle aspect but Honda Atlas is very
conscious about to make lower and middle class customers they also make possible
opportunity for both class customer, because Honda Atlas Believe that “one cent taken care
a rupee and a rupee will take care itself” so the product for lower and middle class is a
competitive edge on Indus Motor company, so for making low and middle class customer.
Honda Atlas has been producing bikes series of CDI 70, Honda 100, CG 125 and CG deluxe
125, the price range from 68,000 to 85,000, bike riders have been much delighted by Honda
bike series not only this the Honda Bikes are the No. 1 Quality in Pakistan and this price
range is affordable, means Honda bikes are still well worth in Pakistan. Honda atlas has other

40
wide range of products variety in Pakistan, the target market of Honda atlas is sub divided
by, generator , Water pumps, brush cutters, petrol engines these all products are available in a
wide range of series. Honda Atlas has been segment the market by those customers who have
these types of needs. The target customers for these products are those who will have an
income in the range of approximately Rs. 100000 to 400000 per year. This income range is
applicable for average type of product in all categories means that the income level may be
varied depending on series nature.

so, in the target market Indus motors company has limited opportunity for target rather,
Honda atlas has a wide range of varieties for target customers here we can say that in this
aspect Honda has a competitive advantage to make profit and customers because if a
customer delighted by one product of Honda like generator, bike etc so brand positioning of
Honda may be encourage to use Honda car (Honda City).

.a Target marketing strategy:

The Honda Atlas has been targeting the customer often targeting Indus Motors Company, so
need to know and understand this issue that who will be interested in the services of Honda
City? For male and female HACPL wants to produce and sell friendly and softly use of car
for both (comparison by cars only), The age range from 25 to 65 years is the most average
age car driver in Pakistan. The target customers are those who will have an income in the Rs.
50,000 and up range. Some customers in the lower income ranges are interested in specific
services, interior restoration, or paint work and parts sales rather than full restorations. Honda
atlas has a big opportunity in term of target market because Honda atlas has wide range of
different product line as compare to Indus motors Company, Indus motors company deal
with vehicle sector only but Honda Atlas has been dealing in Cars collection as well as in,
generator, Water pumps, brush cutters, petrol engines. The income range of customer for
these products (except Car Brands) lies in Rs. 100,000 to 200,000.

Honda Atlas has been offering different variety of products and IMC’s target market is
limited rather than Honda atlas has opportunity to target large volume of customers in
Pakistan with product line.

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 .a Brand(s) positioning:
Honda calls the design concept of the new Honda City the “arrowshot”. The car seems to
concentrate all its forces on a point at a front, while the rear has a raised deck lid for a more
upright stance. This makes the City look like its ready to release energy even when it is
static. As with the Honda Accord, there are some hints of BMW-like design with the new
City.

According to Honda Atlas Brand positioning Strategy, it is quite similar to Indus Motors
Company it is also based on provide quality products but as we know that Honda atlas has
wide variety of brands and product but our main concern with Toyota Corolla and Honda
City comparison in car competition of brand loyalty is purely based on the quality as well as
price more over brand loyalty most concern with the 3S and 2S of Honda, if we talk about
the sales, Honda atlas positioning its brand through simple and straight forward method of
sales service, provide detail information to customers, luxuriousness, durability and
reliability of Honda City, detail information about features of car, provide technical and
functional information regarding car, take care of customers when they engaged in deal, for
customer satisfaction Honda Atlas always keep in mind the needs and wants of customers.
Honda atlas sell quality but reliable City car and they are offer quality and valued brand for
which the brand has long been known.

Honda Atlas positioning strategy also exist in quality sales, in simple words, a sale that done
through well set standard format set by company in which give fair value to customer, avoid
ambiguity, irretentiveness, provide full level of information, deal must based on make long
term relationship not deal by selling product and many more characteristics involved in
selling quality sales.

The brand positioning of Honda Atlas, to provide quality, and reliable products to customer
those fulfill the customers’ needs, demand and satisfaction. More over Honda atlas logo is
enough to make understand us that how much they involved to make position in customers’
mind that is “The Power of Dreams”. Honda atlas always tries to stretch customers mind and
make it possible as much as customer’s dream come true. Honda Atlas is very always busy in
maintain Brand loyalty in customers mind same as Indus Motors Company (Pakistan). Honda

42
Atlas is doing deeply analysis to compete Indus Motors Company in brand positioning aspect
as well for that hey has been doing hard work in its 3S and 2S.

.i Pricing Strategy:
Honda Atlas Company Pakistan has a mission to give good quality cars, achieve product-
quality leadership overall the Pakistan. The pricing strategy has been applying by this
formula that Cost + Profit = Price. Honda Atlas is very crucial in the providing Quality
product to customers. The perception behind that brand make as it talk itself and then
customer will attain and will not as such consider price. IMC’s perception is that quality is
the initial attraction of customers and the pricing is the strong support of product and IMC
using pricing strategy as compliment part of success achievement. The standard of quality
they do not perceive to give burden of high price at customers.

.a Advertising and Promotion:

Indus Motors Company (IMC) has a modest program of marketing its services that include
the following:

1. Newspaper and magazines ads

2. Press releases and magazines articles
3. Car shows
4. Website
5. Calendars

Each of these marketing approaches has the advantage of being low cost and creating service
awareness. The company is also make possible of having a grand opening program that
would sponsorship, charity, social walk, donations, exhibition, functions, display in the large
market (i.e. few month ago did advertise in Pak Tower. Karachi). and other promotional
ideas.

IMC feel that the company website is one of our best marketing strategies. It is linked to top
listed web sites like Google.com and many other classic car restoration oriented websites and
portals. The site has news about IMC business, answers to FAQ's and pictures of cars
restored and the process of the restoration.

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 .a Distribution strategies:

The Honda Atlas has been applying its distribution strategy by nature of product as company
producing wide chain of different products. As we discussed in Market segmentation
strategy, Honda Atlas distribution Divided in many ways like Honda cars, Bikes, and Power
products, in distribution of Honda cars Honda Atlas has sixteen Dealers network in all over
Pakistan and Four dealer exist in Karachi, for Bike Distribution twelve hundred and fourteen
(1214) found as per research, and for power product, company has Eighty seven Dealers exist
in Pakistan. Honda Atlas cars car plant established in Punjab and supply to supply to all over
Pakistan’s distributors so, there is no specific demographical location for potential customers.
Honda Atlas providing the opportunity to customer that they can buy Honda atlas Products
from authorized Dealers. In distribution aspect, Honda Atlas has mission to make convenient
and provide valued product to customers.

SECTION II

5. CHAPTER# 5

.a FEATURES OF TOYOTA COROLLA AND HONDA CITY

.a Brand Loyalty of TOYOTA COROLLA:

Now we are in a position to differentiate Toyota

Corolla and Honda City customer loyalty at this
stage we will try to understand that what the reasons
behind great Success are? In the customer
perspective I found the conclusion or result that
customers are mostly focused on three basic things
through they create difference between Toyota
Corolla and other Cars. The basic differentiated key elements are Interior, Exterior, and
engine Performance of the car. The Toyota Corolla is one of the best selling cars in the world
and in Pakistan perspective they are well mind reader of the customers. It gets good gas

44
mileage, has high scores for reliability, and yet is still affordable by most new car buyers. But
of course, the Corolla hasn't gotten where it is by sitting on its laurels and the 2009 model is
no different. And for the first time, Toyota offers a navigation system as an option on all
models. Leather upholstery is an option that is available on the Toyota chain of models.

In terms of driving; the Corolla's handling is solid. The ride is smooth and fairly quiet, even
when confronted with dips and bounces. It has a tight turning radius and excellent brake-
pedal modulation. That being said, the Corolla isn't intended for avid "driving enthusiasts",
although the XRS is a definite step up in performance.

Interior controls are well laid out, easy to locate and easy to read. The seating is comfortable,
outward visibility is good and the roominess is adequate given this is a compact car. The gas
mileage for the new Corolla is one of its most coveted attributes. The 4-speed automatic is
EPA rated at 27 mpg city and 35 mpg highway while the 5-speed automatic gets 22 mpg city
and 30 mpg highway, due to its larger engine size. The standard 5-speed manual is rated at
27 mpg city and 35 mpg highway. While it appears there are some major challenges for
carmakers for the 2009 model year and sales have already slowed considerably, the new
Toyota Corolla again looks well suited for those buyers who need a new car this year. The
Corolla's compact size, reliable history, excellent gas mileage performance and affordable
pricing could make this star shine even more brightly.

The newest Corolla has again been upgraded with more available power, more standard
safety features, and fresh styling. For 2009 Corolla offers five trim levels versus the three for
the 2008 model year. Base, LE, new XLE, and sporty S models are equipped with a 132-
horsepower 1.8-liter 4-cylinder engine, replacing the 126-hp 1.8-liter 4-cylinder. The top-line
XRS model gets a 158-horsepower, 2.4-liter 4-cylinder. While a manual transmission is
standard, the optional automatic transmission is a 4-speed on all the Corollas except the XRS,
which gets a 5-speed. The XRS also gets 17-inch wheels and 4-wheel disc brakes. The other
models get either 15 or 16-inch wheels and rear drum brakes. Available safety features
include anti-lock brakes, an anti-skid system, traction control, front side airbags, and curtain
side airbags.

45
 .a Toyota Corolla Characteristics, Features and performance:

EXTERIOR:
First element of the customer and Toyota
perspective is the exterior in which the shape of the
car is most importantly count in customer
perspective admiration is a compliment that every
eye will carry when it looks up to customer. Be in
command of a vehicle that inspires customer to go far
ahead of prevalent standards of pride & prestige. The new ALTIS Cruisetronic follows a
new ‘Wide & Low’ design concept, with a significantly wider body, wider tread, and a
bolder look. The dynamic proportions and the deeply contoured body refine the
aerodynamics and overall stability of the car. Innovative press lines and sweep cut pillars
bring motion in the car even while it is parked. The sporty front headlamps express
assertiveness, and the tail lamps blend in with the bumper conveying balance in design.

INTERIOR:

Toyota corolla manufacturing has been always

very conscious in customer perception as I
mentioned above that they always try to capture
customer’s perception than convert it into reality
one of the factor is the Interior. The desire to challenge convention, stretch our own confines
& move ahead of everything that limits us is natural to you. Take the seat that gives you a
sense of unrestricted freedom.

The interior of the Altis Cruisetronic is based in a new Grege color scheme, which conveys a
sense of balance and harmony. Ergonomically designed, the interior promises maximum
comfort during travel. Subtle but significant refinements in the Altis Cruisetronic delight you
from the moment you enter the car. Illuminated entry, plush leather seats, flat rear floor and
electric power steering are to name just a few of these refinements. The console and door
trim is silhouetted in silver, and the wooden paneling and wooden shift lever express your
sophistication.

46
Toyota corolla air-conditioning system is available with both manual and automatic controls.
Toyota corolla has been achieving its success by this element because its Air Conditioning
system has not tripped when this car going on long drive (out side from the city) rather its
cooling system will be constant from starting point. The air conditioning blowers have their
noise reduced by 5dB while increasing airflow capacity by 23%. Center dash area looks
significantly better and more concise for seating capacity with the automatic controls are the
design of the manual controls end up making the dash look cheap.

Performance:

Overall system also includes the touch of

excellence goes down to every piston & ring to
deliver a performance worthy of everything else
this vehicle offers & give the Altis Cruisetronic a
might of its own. The Altis Cruisetronic is
equipped with a powerful 1.8 liter, 4 cylinders
DOHC, 16 valve VVTi engine. With a
maximum output of 130 horsepower, the Altis Cruisetronic propels you with a might of its
own. The variable valve timing with intelligence and the super ECT functions optimize
acceleration and fuel efficiency providing you with the power and economy at all speeds.

As we know that consumer does not have much information about the background function
of the product like in this situation customer does not know about the technicality,
functionality and other aspects which they may measure the engine performance but Toyota
Corolla given them sophisticated value as they wants and satisfied.

Customer may measure the engine performance through Driving it’s the best way to identify
for customer suppose to long distance driving like wise From Karachi to Lahore etc than here
mean to say that the performance is based on maximum driving. The most of the
characteristic of Toyota Corolla engine is that it is support constantly in long driving
somewhere other cars does not fully support to the car mean as much as car driving the
engine cooling system do not support at last but in the system of Toyota corolla its cooling

47
system of engine durably and continuously support to the engine and car Speed will be
constant as much as customer can drive.

.a Brand Loyalty of HONDA CITY:

The Honda City is another aspect of my

research due to comparison of brand loyalty of
Customer. Honda City is the 2nd one high
market shareholder in Pakistan automobile
market note that we are compare 1300cc car.
Honda City and Toyota Corolla have been
surviving in very tough competition. In Pakistan perspective Toyota Corolla has higher
market share than Honda City. Honda City is now in its third generation, now it has been
launched in Pakistan. In line with the global economic outlook as well as global fuel prices,
manufacturers have been downsizing their cars and the New City makes a perfect compact in
Honda line-up slotted in under the Civic for world markets. It is considered to be a world car.
Now, as it has also been recently revealed that the Honda City will also be sold in Europe.
Look after the jump for an in-depth look at the new City.

.a HONDA CITY Characteristics, Features and performance:

Exterior:

The exterior element of the Honda City also important aspect to achieve success the design
concept of the new Honda City the “arrowshot”, as we can see from the sketch above. The
car seems to concentrate all its forces on a point at a front, while the rear has a raised deck lid
for a more upright stance. This makes the City look like its ready to release energy even
when it is static. As with the Honda Accord, there are some hints of BMW-like design with
the new City, especially with the rear end and that Hoffmeister kink at the C-pillar. The front
end of the car looks like it was lifted off the European Civic hatchback, with the grille from
the Honda FCX Clarity. It looks quite concept-car-like, and I would say Honda was quite
brave to have pulled this one off. I think there will be quite a few people who will be turned

48
off by the Optimum Prime futuristic look on the front end - but they can look at the
aftermarket “solution providers” if they dislike it. I think the rest of the car looks good - the
roofline does not flow as sleekly as the Civic, but it’s a huge improvement over the previous
City. As for the wheels, you get either a 5-spoke wheel for the 15 inch size, or those funky Y-
shaped 5-spokers for the 16 inch size. For markets that call for a low-cost City. The Honda
City series has an exterior design that unites the beauty of form and function to express the
City's advanced driving performance. Its low front nose and close-clipped rear deck
complement the powerful wedge shape, while contrasting areas on the sides form strong
character lines that convey a sense of speed. The shortened roof and boldly slanted rear
window offer a sporty proportion. The sculpted panels of the hatchback area support
exceptional capacity and ease of loading while further emphasizing spottiness.

Performance:

As other’s, Engine is another base element for

customers as I mentioned that customers’ are very
conscious about the value and price they always
want to gain more value instead of those money so
companies always make it possible to make loyal
customer. Honda City also fulfills the requirement of customers. They producing well
performance engine cars as compare to others in new model of Honda city they introduced
new 1.5L i-VTEC Engine The new L-Series SOHC i-VTEC engine in the. This change of
technology is not our target but need to little introduction here that It produces 120 PS at
6,600rpm and 145Nm of torque at 4,800rpm, making it one of the most powerful 1.5 liter
units today. Unlike the SOHC VTEC unit in the previous Honda City VTEC which only
switched between opening and closing 1 of 2 intake valves per cylinder, the new i-VTEC
engine actually varies the valve timing and valve lift, though this is not a continuously.
Honda actually acknowledges this and claims the torque dip provides a smoother drive,
whatever that means! The good news is this engine is compatible with fuel which should
allow customers to save on them fuel bills a little.

49
 .a Conclusion of TOYOTA COROLLA and HONDA CITY Brand Loyalty:

The reason of understand above elements is that we must need to separately analysis that
which factors make them different to other, these elements are perceived by customer which
customer get more close to Brand but in the same time some of the technical specification
involved in differentiation, those elements are not mostly customer easily understand.
Technical specifications are those elements which a company should follow to achieve
competitive edge so I mentioned technical specification in the bibliography.

SECTION II

6. CHAPTER# 6

Methodology:

.a Data Collection Sources:

According to chosen project I decided to find out the raw information and data regarding
topic for that most of the time I discussed with Deputy manager of Indus Motors Company’s
Dealer (Southern Motors), and Manager of Honda Atlas Dealer (area name) they have been
providing me raw information regarding customers’ dealing because my entire project based
on Brand and Customers, although it is a key combination of loyalty. In other words,
Satisfaction and benefit + Customer =Brand loyalty.

As discussion on Brand loyalty I described about companies way of surviving both

companies offer three key elements of Sales, Service and Spare Parts, base on these elements
I also discussed with Toyota Corolla and Honda city Owners, as well as thanks for the
technology that really curious, and helping out in finding of raw information which I visited
to web sites of Indus Motors Company and Honda Atlas.

.a Data Collection Tools:

There are two sources for the data collection, primary and secondary sources:

Primary Source:

50
Primary sources are original works of research or raw data without interpretation or
pronouncement that represents an official opinion or position. Our primary research will be
based on interviews conducted and information gathered through questionnaires. As per my
requirement to know about the Brand loyalty of Toyota corolla and Honda City brands I have
been conducting Open ended questions and close ended Questions those will allow us to
understand and making bright picture of brand loyalty.

Secondary Sources:

Secondary sources are interpretations of primary data. Secondary research includes

information from magazines, internet, encyclopedia, books, newspaper articles, etc. We have
conduct secondary research from Internet, Journals, magazines, newspaper, etc.

.a Questionnaire Analysis
1. WHAT ARE THE FACTORS YOU PERCIEVE IN A CAR WHICH LIES IN
THE PRICE RANGE OF PKR 10, 000, 00 – 1500,000?
Analysis:

According to response about Toyota Corolla, Just over those respondents who
loyal to Toyota Corolla said that they perceive in car would (19%"probably")
Performance and reliability of the Toyota Corolla, this factor is very high in
customers’ perspective more than half of the customers has been delighted by
factor and also wants to purchase the Toyota Corolla next time they when they
will in the market (34.3% "probably", 7.1% "definitely"). A little over one fourth
(26.9%) were not inclined to perceive by factors because they are loyal with other
Brand (12.9% "probably not", 14.0% "definitely not"). See fig1

51
 Fuel Consumption
status symbol
effeciency
performance and reliability
maintenance
spare parts
luxury
preferred company

0 5 10 15 20 25 30 35

Toyota Corolla Honda City

• WHAT ARE THE FACTORS YOU PERCIEVE IN A CAR WHICH LIES IN

THE PRICE RANGE OF PKR 10, 000, 00 – 1500,000?
According to response about Honda City, the loyal customer said that they
perceive in car would "probably" luxuriousness of Honda City, they perceive that
the luxuriousness of Honda City is quite well in comparison to Toyota Corolla
and customers has widely been delighting in this aspect and they willing to buy
next edition just because of this factor the percent of respondent wants to (34.3%
"probably", 7.1% "definitely"). A little over one fourth (26.9%) were not inclined
to purchase again from the same store (12.9% "probably not", 14.0%
"definitely not").
The above factor as we see that a Toyota Corolla customer has been perceived by
the Performance and reliability factor, is the most highly appreciated in Toyota
Corolla customers’ perspective, and Honda City customers has delighting by
Luxuriousness of the Honda City. Toyota Corolla and Honda City, difference
which has been given a considerable weightage. There is a contradiction in the
response itself which is depicted in which respondents gave more weightage in
those perspectives see in above chart.

52
 2. IF YOU ARE A TOYOTA COROLLA USER, HOW OFTEN DO YOU GO TO
THE WORKSHOP FOR REPAIRS AND DO YOU PERCIEVE IN YOUR
SATISFACTION LEVEL?
TimeOfRepairsOf ToyotaCorolla

13% 4%
13%

40% 30%

onceaw eek 1or2tim esamonth onceinthreemonths

onlyinaproblem Idon’t haveCorolla

Analysis:

In the light of Toyota Corolla respondents, The 34.3% "Not at all”, 7.1% "A
little" customers has been concerned in repair aspect which showing those
satisfaction level, A little over (26.9%) were shown “moderate”, and (1% "A
lot", 0% "Completely” definitely not") satisfied with repairs of car.
The analysis of this question in Toyota Corolla aspect, clearly depicts the picture
currently prevailing in the automobile market in which people are just talking
about things which they have the first hand experience and they have well
awareness about the Toyota Corolla also the reach of the workshop repair is much
convenient for him.

• IF YOU ARE A HONDA CITY USER, HOW OFTEN DO YOU GO TO THE

WORKSHOP FOR REPAIRS AND DO YOU PERCIEVE IN YOUR
SATISFACTION LEVEL?

53
 Time of Repair Of Honda CIty

13% 4%
13%

40% 30%

once a week 1 or 2 times a month once in three months

only in a problem I don’t have Corolla

But in Honda City aspect, the 34.3% "Not at all”, 7.1% "A little" customers has
been concerned in repair aspect which showing those satisfaction level, A little
over (26.9%) were shown “moderate”, and (1% "A lot", 0% "Completely”
definitely not") satisfied with repairs of car. The analysis of this question clearly
depicts the picture currently prevailing in the automobile market in which people
are just talking about things which they don’t have the first hand experience. So,
we may conclude Honda City not to be a manufacturing failure but a marketing
failure only, the brand loyalty in this aspect showing differentiation or comparison
in the above Graph.

3. DO YOU THINK TOYOTA COROLLA LUXURIOUSNESS FULFILL YOUR

EXPECTATION, AND, UPTO WHAT PERCENTAGE THE WORDS
“LUXURY” AND “TOYOTA” CAN BE ASSOCIATED TO EACH OTHER?
Associationof luxury and Toyota Corolla

20% 10%

0%

15% 35%

20%

100% 75% 50% 25% 0% No idea

Analysis:

54
According to level of luxuriousness of Toyota Corolla aspect, the 34.3% "Not at all”, 7.1%
"A little", (26.9%) “Moderate”, and (1% "A lot", 0% "Completely” think about the
luxuriousness of car.

The response shows that the main reason with Toyota Corolla being successful in
the market is Toyota motors’ association to the cars manufactured and targeted
mainly towards the middle class and upper class.

• DO YOU THINK HONDA CITY LUXURIOUSNESS FULFILL YOUR

EXPECTATION, AND, UPTO WHAT PERCENTAGE THE WORDS
“LUXURY” AND “TOYOTA” CAN BE ASSOCIATED TO EACH OTHER?
Association of luxury and Honda City

5%

33% 24%

0%
14% 24%

100% 75% 50% 25% 0% No idea

Analysis:

According to respond level of luxuriousness of Honda City aspect, the 34.3%

"Not at all”, 7.1% "A little", (26.9%) “Moderate”, and (1% "A lot", 0%
"Completely” think about the luxuriousness of car.
The response shows that the Honda City has being in competition, the main
problem with Honda City being not successful in the market is not much
consideration the demand according to Toyota Corolla off course, the cars
manufactured and targeted mainly towards the middle class and upper class as
well.

55
 4. DO YOU PERCIEVE ADDITIONAL BENEFITS OF TOYOTA COROLLA
AND WHAT ARE THE ADDITIONAL BENEFITS YOU SEE IN TOYOTA
COROLLA AS COMPARED TO HONDA CITY 1300CC CARS?
Additional Benefits of Toyota Corolla

company, IMC. price performance reliability

luxury maintenance spare parts availability
effeciency status symbol no idea
5% 2% 11%
11% 6%

14%

17%

8%

26%

Analysis:

According to respond level additional benefits of Toyota Corolla, the 34.3% "Not at all”,
7.1% "A little", (26.9%) “Moderate” and (1% “A lot”, “0% completely” thinks about
additional benefits of Toyota Corolla.

The additional benefit for Toyota Corolla is providing more over the competitors,
i.e. they are easier and less costly to maintain as compare to Honda City. Another
conclusion that can be drawn from this questions analysis is that people are taking
Toyota Corolla as Toyota’s another middle class targeted car, which is not the
case

• DO YOU PERCIEVED ADDITIONAL BENEFITS OF HONDA CITY AND

WHAT ARE THE ADDITIONAL BENEFITS YOU SEE IN TOYOTA
COROLLA AS COMPARED TO TOYOTA COROLLA 1300CC CARS?

56
 Additional Benefit of Honda City

company, HACPL. price performance reliability

luxury maintenance spare parts availability
effeciency status symbol no idea
13% 11%
8% 8%

16%
18%

10% 3% 13%

Figure 1
Analysis:
According to respond level additional benefits of Honda City, the 34.3% "Not at
all”, 7.1% "A little", (26.9%) “Moderate” and (1% “A lot”, “0% completely”
thinks about additional benefits of Toyota Corolla.
In this aspect of response The additional benefit for Honda City is more over in
the aspect of fuel consumption same as the other 1300cc cars of Honda Atlas
Company have, i.e. they are less fuel consumption and much reliable at long
drive.
5. DO YOU SATISFIED WITH TOYOTA COROLLA AND WILL YOU EVER
ADVISE SOMEONE TO BUY TOYOTA COROLLA?
Advice to buy Toyota Corolla

35%

65%

yes no

Analysis:
According to respond level, the Advise about to buy Toyota Corolla is, the 34.3%
"Not at all”, 7.1% "A little", (26.9%) “Moderate” and (1% “A lot”, “0%
completely” thinks about to encourage people to buy Toyota Corolla.
The respond of this question regarding Toyota Corolla is highly committed to the
brand loyalty and they become a trustworthy of this brand because they have

57
 word of mouth and self experience to drive Toyota Corolla and they wish to
encourage others to buy Toyota Corolla also its customers are communication
tool for Toyota Corolla. The reason is that they are very careful in marketing to
segment its Toyota Corolla brand as per middle and upper class.
• DO YOU SATISFIED WITH HONDA CITY AND WILL YOU EVER ADVISE
SOMEONE TO BUY HONDA CITY?
Advice to buy Honda City

40%

60%

yes no

Analysis:

According to respond level, the Advise about to buy Honda City is, the 34.3% "Not at all”,
7.1% "A little", (26.9%) “Moderate” and (1% “A lot”, “0% completely” thinks about to
encourage people to buy Honda City.

The response to this question points out the main marketing mistake done by the company
itself. It is obvious from the graph that middle and upper class are a bit puzzled towards the
targeting; either it is middle class targeted, or the upper class. Say for instance, if it is middle
class targeted, then the CIVIC is also a middle class targeted, and if for upper class targeted,
then the name of Honda itself is not associating the name with the upper class. Moreover
people are having a problem to perceive their unconscious demand for Honda City, and this
statement is proved from the responses to the last questions.

6. HOW MUCH YOU PERCIEVED FULFILLMENT OF COMPANY’S

PROMISE AS THEY COMITTED TO PROVIDE A QUALITY SERVICE?

58
 IMC's Commitment In3S

Sales Service SpareParts Don’t know

10% 20%

25%

45%

Analysis:

According to respond level, the commitment of quality regarding Toyota Corolla

is, the 34.3% "Not at all”, 7.1% "A little", (26.9%) “Moderate” and (1% “A
lot”, “0% completely” about the providing quality service for Toyota Corolla.
The response to this question is regarding 3S (Sales, Service, and spare part) that
Toyota have wide range of dealership which they providing 3S services by quality
and these are easily reachable, Conveniently available and follow the just in time.
• HOW MUCH YOU PERCIEVED FULFILLMENT OF COMPANY’S
PROMISE AS THEY COMITTED TO PROVIDE A QUALITY SERVICE?
HACPL's Commitment In3S
Sales Service Spare Parts Don’t know

10% 20%

25%

45%

Analysis:
According to respond level, the commitment of quality regarding Honda City is,
the 34.3% "Not at all”, 7.1% "A little", (26.9%) “Moderate” and (1% “A lot”,
“0% completely” about the providing quality service for Honda City.
The respond results shown that the company providing 3S (Sales, Service and
Spare Parts) as well as separately 2S services (sales and Services) available, that
are more beneficial and efficient by quality.

59
7. WHAT ARE YOUR EXPECTATIONS ABOUT TOYOTA CORLLA AND IN
COMPARISON TO HONDA CITY, WHICH FACTOR YOU FIND IT
DIFFERENT?

Toyota Corolla Factors Comparison

Interior Exterior Fuel Consumption
Engine performance Don’t Know

15% 25%

25%
15%
20%

Analysis:
In the light of this respond, the expectations about Toyota Corolla is, the 3%
"Not at all”, 7.1% "A little", (26.9%) “Moderate” and 43.6% “A lot”, “%
completely” thinks about to encourage people to buy Toyota Corolla

According to respond, people like the Toyota Corolla by consistent performance

of the engine, interior and exterior, the performance of Toyota Corolla is highly
appreciated, in comparison Toyota Corolla has charming and out class exterior,
design/ shape, light interior color scheme is feeling brightness, and engine
performance keep constant on driving for long drive i.e. traveling one city to
another city.

• WHAT ARE YOUR EXPECTATIONS ABOUT HONDA CITY AND IN

COMPARISON TO TOYOTA COROLLA, WHICH FACTOR YOU FIND IT
DIFFERENT?

60
 Honda City Factors Comparison

Interior Exterior Fuel Consumption

Engine performance Don’t Know

20% 20%

15% 15%

30%

Analysis:
Now In the light of same question to Honda City, the respondent expectation
about Toyota Corolla is, the 34.3% "Not at all”, 7.1% "A little", (26.9%)
“Moderate” and (1% “A lot”, “0% completely” thinks about to encourage people
to buy Toyota Corolla.
According to this respond, the answer almost same but respondent perception
changed by black interior color scheme that feeling cool, “Arrow shot” shape of
exterior, shape/ design and fuel consumption as per issue of economy
8. WHAT DO YOU FEEL ABOUT TECHNOLOGY ENHANCEMENT AND
YOUR LOYAL CAR’S PERFORMANCE?

61
 Technology Enhancement in Toyota Corolla

Speed Fuel Consumption engine consistency I Don’t have

20%
35%

30%
15%

Analysis:

According to respond brand loyalty level, the performance of Toyota Corolla is,
the 34.3% "Not at all”, 7.1% "A little", (26.9%) “Moderate” and (1% “A lot”,
“0% completely” loyal by the Toyota Corolla performance.

Usually speed and pick of the car is also a considerable era which consumer wants
much more effective in this aspect due to the addition of high performance
technological enhancement in Toyota Corolla VVTi 1.8 engine provide high level
of performance and consistency. The VVTi technology based engine especially
design and addition for 1300cc or plus in Toyota Corolla series. This shows that
the car users are conscious to this factor but at the same time they are also very
much concerned with the Performance.

• WHAT DO YOU FEEL ABOUT TECHNOLOGY ENHANCEMENT AND

YOUR LOYAL CAR’S PERFORMANCE?

62
 Technology Enhancement in Honda

15%
30%

35%
20%

Speed Fuel Consumption engine consistency I Don’t have

Analysis:

In the light of same question to respond, the performance of the brand loyalty of
Honda City is, the 34.3% "Not at all”, 7.1% "A little", (26.9%) “Moderate”
and (1% “A lot”, “0% completely” loyal by the Honda City performance.
The respond on this question, the technological addition in Honda City is now much more
reliable as well as fuel consumption aspect also considerable during its performance the
Honda City has technological advancement by iVTEC 1.5 engine it is more supportable and
fuel consumption control ability because of economical factor exist and much considerable in
Honda City buy aspect

.a Interview analysis

We have taken an interview session with Mr. Jamil Ahmed, Director Corporate Planning
Division.

4.3 Interview From IMC Dealer

Q1. Tell something about yourself?

A. My name is Mazher Ghauri and I am Deputy Manager of Southern Motors (IMC).

Q2. About your organization?

63
A. We have dealership of Indus Motors Company which we have been dealing Toyota
vehicles range comprises of TOYOTA COROLLA, CAMRY, COURE and HILUX. They
are having capacity of 150000 units. We have good growth since last 5 to6 years now there is
a decline in sales. There are some reasons behind it, the main reason is the increase of
interest rate, control of SBP monetary policy. Now the sales are stagnant after so many years
of good growth. Anyways the highest level of sales in 1300cc cars is Toyota Corolla and in
850cc car is Coure is top of the list.

Q3. What most of buyers require or demand to you about Toyota Corolla?

A. According to requirements of customers they perceive that money in term of benefits like
superior quality, reliability, performance and its cost. We assure to provide them Toyota
Corolla in customers point of view because Indus Motors Company is very conscious to
provide its product at the level of brand loyalty for its customers.

Q4. How much of you spent your time on customer to briefing about the Toyota Corolla?

Regarding Toyota Corolla, this 1300cc brand has well worth and well known overall in
Pakistan. Mostly we do not need to briefing about Toyota Corolla, customers just came to
dealer and purchase its loyal Toyota Corolla car in either cases they have word-of-mouth
information and personal experience. Off course, we just provide information regarding new
addition or technological enhancement in the car.

Q5. From year 2005, the ban was lifted from imported cars. So the sales of Suzuki cars got
affected?

A. Not changed because the main reason was that we can not produce more as well as we
continued our other imported car i.e. PRADO.

Q6. There is a concern about the quality of Toyota Corolla cars. What do you say about it?

A. I’ll not accept it with as far as any car is concern of Toyota. The reason is that our
customers are very sensitive. Our customers are middle and upper class persons who are very
conscious about that vehicle. So for our vehicle segment they are very much focused and
mostly customers are well known about the Toyota Corolla related concern. If you talk about

64
quality our record is world over. But sometimes something happens .We have market share
of around 62% so lots of people are talking obviously! The car comes to the dealer and is
being repaired there and customer doesn’t know what happens with it.

Q7. How do you maintain Brand loyalty of Toyota Corolla?

This is really critical part of our customers because if any customer get clue regarding its
satisfaction so the result will go opponent to us for that we have to very careful to deal and
maintain our Brand (Toyota Corolla) positioning in customers mind. For that instance, we
provide them 3S (Sales, Service and Spare Parts) very effectively and efficiently. Our aim is
to get close more and more to customer.

Q8. How do you compare your Toyota Corolla that, it is better than Honda City?

Usually customers are not well aware regarding identify difference between Toyota Corolla
and Honda City for that instance, we also provide them technical specification information
which customer may come to understand easily.

Q9. For improve/maintain brand loyalty of Toyota Corolla, what does Indus Motors
Company do?

Indus Motors Company has a mission to provide quality brand and customer satisfaction. For
that IMC directly involved in every aspect and monitor all activities that engaged with the
customer, the monitoring system is very straightforward and fair in which they does not
compromise in any situation. We periodically asked to our customers and encourage them to
feel free complaint, and appreciating those suggestion and comments.

Analysis

Mr. Jamil is a very experienced candidate and he is an employee at PSMCL since 1988. He
provided very handful information for us. Although he didn’t speak against PSMCL, but he
tried to prove his point. The sale actually had gone down mainly due to the fact that the
economy had shattered. And the de valuation of currency had increased the prices of cars. He
declined that the quality of the cars are going down as he told us that the vendor’ are the

65
same and the quality of parts are not been tolerated. He said more that Liana is not having the
expected result as they still haven’t achieved the goals of it. If Mr. Jamil had talked against
PSMCL as well, he might have provided a great knowledge. But still, his interview provided
good information.

4.3 Interview From IMC Dealer

Q1. Tell something about yourself?

A. My name is Mazher Ghauri and I am Deputy Manager of Southern Motors (IMC).

Q2. About your organization?

A. We have dealership of Indus Motors Company which we have been dealing Toyota
vehicles range comprises of TOYOTA COROLLA, CAMRY, COURE, HIACE and HILUX.
They are having capacity of 150000 units. We have good growth since last 5 to6 years now
there is a decline in sales. There are some reasons behind it, the main reason is the increase of
interest rate, control of SBP monetary policy. Now the sales are stagnant after so many years
of good growth. Anyways the highest level of sales in 1300cc cars is Toyota Corolla and in
850cc car is Coure is top of the list.

Q3. What most of buyers require or demand to you about Honda City?

A. According to requirements of customers they perceive that money in term of benefits like
superior quality, reliability, performance and its cost. We assure to provide them Toyota
Corolla in customers point of view because Indus Motors Company is very conscious to
provide its product at the level of brand loyalty for its customers.

Q4. How much of you spent your time on customer to briefing about the Honda City?

Regarding Toyota Corolla, this 1300cc brand has well worth and well known overall in
Pakistan. Mostly we do not need to briefing about Toyota Corolla, customers just came to
dealer and purchase its loyal Toyota Corolla car in either cases they have word-of-mouth
information and personal experience. Off course, we just provide information regarding new
addition or technological enhancement in the car.

66
Q5. From year 2005, the ban was lifted from imported cars. So the sales of Honda City cars
got affected?

A. Not changed because the main reason was that we can not produce more as well as we
continued our other imported car i.e. PRADO.

Q6. There is a concern about the quality of Honda City cars. What do you say about it?

A. I’ll not accept it with as far as any car is concern of Toyota. The reason is that our
customers are very sensitive. Our customers are middle and upper class persons who are very
conscious about that vehicle. So for our vehicle segment they are very much focused and
mostly customers are well known about the Toyota Corolla related concern. If you talk about
quality our record is world over. But sometimes something happens .We have market share
of around 62% so lots of people are talking obviously! The car comes to the dealer and is
being repaired there and customer doesn’t know what happens with it.

Q7. How do you maintain Brand loyalty of Honda City?

This is really critical part of our customers because if any customer get clue regarding its
satisfaction so the result will go opponent to us for that we have to very careful to deal and
maintain our Brand (Toyota Corolla) positioning in customers mind. For that instance, we
provide them 3S (Sales, Service and Spare Parts) very effectively and efficiently. Our aim is
to get close more and more to customer.

Q8. How do you compare your Honda City that, it is better than Toyota Corolla?

Usually customers are not well aware regarding identify difference between Toyota Corolla
and Honda City for that instance, we also provide them technical specification information
which customer may come to understand easily.

Q9. For improvement/ maintain brand loyalty of Honda City, what does Indus Motors
Company do?

Indus Motors Company has a mission to provide quality brand and customer satisfaction. For
that IMC directly involved in every aspect and monitor all activities that engaged with the
customer, the monitoring system is very straightforward and fair in which they does not

67
compromise in any situation. We periodically asked to our customers and encourage them to
feel free complaint, and appreciating those suggestion and comments.

Analysis

Mr. Jamil is a very experienced candidate and he is an employee at PSMCL since 1988. He
provided very handful information for us. Although he didn’t speak against PSMCL, but he
tried to prove his point. The sale actually had gone down mainly due to the fact that the
economy had shattered. And the de valuation of currency had increased the prices of cars. He
declined that the quality of the cars are going down as he told us that the vendor’ are the
same and the quality of parts are not been tolerated. He said more that Liana is not having the
expected result as they still haven’t achieved the goals of it. If Mr. Jamil had talked against
PSMCL as well, he might have provided a great knowledge. But still, his interview provided
good information.

.a Summery
Pakistani Automobile Sector Consist of four main players in the domestic market and their
cumulative share is about 95% of the total car Markets these includes Pak Suzuki, Motors
Company, Indus Motors Corporations, Honda Atlas, Dewan Farooque Motors Limited and
5% of other car brand in which include china branded cars, imported cars etc. Among the
above four Pak Suzuki enjoys the position as a market leader (62%) than by the Indus motors
(27%) followed by Honda Atlas (9%) & Dewan motors (2%) respectively.

The entire discussion has been surrounding in Pakistan environment. Now we are in a
position to differentiate Toyota Corolla and Honda City’s Brand loyalty at this stage we are
able to understand the reasons behind great Success. In the customer perspective we found
the result that customers are mostly focused on three basic things through they create
difference between Toyota Corolla and Honda City.

68
In Brand loyalty of 1300cc cars, TOYOTA Corolla and Honda City Honda City are highly
competing in Pakistan. These companies have been offering 3S (Sales, Services and Spare
parts) but similar to each other. Both have an extremely high reputation within the restoration
community. They currently have doing more and more hard work for brand loyalty. They are
still taking new customers from 1300cc car market.

Toyota Corolla is one of the best selling cars in Pakistan. It gets good gas mileage, has high
scores for reliability, and yet is still affordable by most new car buyers. But of course, the
Corolla hasn't gotten where it is by sitting on its laurels. and the 2009 model is no different.
The newest Corolla has again been upgraded with more available power, more standard
safety features, and fresh styling.

The basic differentiated key elements are Interior, Exterior, and engine Performance of the
car. The Toyota Corolla is one of the best selling cars in the world and in Pakistan
perspective they are well mind reader of the customers. We discussed in detail about both
brands we found that both companies way of business is different Indus motors wants to
achieve price quality leadership besides Honda atlas want to achieve product quality
leadership and both companies’ profitability formula also has a big difference and these two
factors makes the difference between both companies.

The Indus motors company has been maintaining the product by pricing and brand. This
factor is most critical part of IMC because it’s the mission of company that they want to
leadership in the automobile industry of Pakistan for that they mostly consider the price and
quality of the car.

The Honda Atlas adopting the strategy which they think as its slogan “Power of Dream” in
this aspect they wants to produce unique and innovative car but obiviously the high cost
existing there, in Honda Atlas point of view make the product, it will sell itself means all
are in the circular of differentiation. Honda Atlas has been charged its car price due to its aim
of quality.

Indus Motors Company’s slogan, "Concern Beyond Cars", has been a message which they
covered most of the social responsibilities. Indus Motor Company has contributed over Rs
100 million in the past 5 years for health, education, welfare, environment and road safety

69
projects, thus playing a significant role in the communities where it operates. This theme of
slogan is much to attract the customer which the customer feels that as they are social
responsible they may be provides as much satisfaction as customers’ wants.

Toyota Corolla is one of the best selling cars in Pakistan. It gets good gas mileage, has high
scores for reliability, and yet is still affordable by most new car buyers. But of course, the
Corolla hasn't gotten where it is by sitting on its laurels. and the 2009 model is no different.
The newest Corolla has again been upgraded with more available power, more standard
safety features, and fresh styling.

The Dividend pay out ratio of Indus Motor is between 30% to 45 % and the dividend that

Indus motor pays shows an increasing trend annually although Indus Motors is planning to
expand their annual capacity but it does not effect on the dividend because of the strong cash
flows and we are expecting Rs 14.30 dividend for the year of 2007-08.

The market value of Indus Motor has been moving in a growing pattern year by year. In 2007
the market value of IMC share is 305.5 compare to the price of 72.25 in 2003 with the
growth of 322% in the last five-year this shows a tremendous growth potential in the
organization.

Both companies follow its success through continuous improvement this is known as
KAIZEN (continuous improvement), and it is very much common in both companies. The
individual makes a proposal for the improvement in productivity and quality, by adopting
this technique they makes create the difference in its brand.

Brand loyalty, resale value, after sales service and spare parts availability were major
considerations that kept customers preference skewed towards local cars both 1300cc Car
demand has still very high and customers are delighted by those choice of brand which they
selected.

7. CHAPTER# 7

.a CONCLUSION:
The reasons that can be given to provide justification to our conclusion are as follows:

70
In present society and living way, the Brands not only represent the symbol of the company
or product but to a larger extent define the general life of a person. What the person uses can
reflect his taste of life, his status in the society, his economic background and many other
things. This makes a deep connection between the company and its brand, with the
consumer. In this two way relation both are dependent on each other for various different
reasons.
Customers purchase the specific brand things just due to the brand name. Customers believe
that brand name is a symbol of quality.
I came to the conclusion that when consumer purchases a car, brand names influence his
choice. Customers choose the well known car brand.
The study shows that Toyota Corolla and Honda City brands have a great place in consumer
mind, when customers go for purchasing a car, they prefer by that creative perception.
Honda City is less loyal to customer due to its high cost, low reliability, low performance,
and lack of 3S availability, high cost of maintenance and Spare Parts and shape as compare
to Toyota Corolla.
Honda City model of 2005 was highly drop down because the car shape was did not
appreciated in Pakistan moreover it was also failed in specific duration because of side mirror
of the car the reason was that the side mirror was resisted by pillar of front quarter window
which customer felt uncomfortable when he/she viewed back side. These problem had been
shifted from the loyal brand.
If a Customers delighted by Toyota Corolla he/she does not want to try Honda City car
because they have no much information about it and vise versa.
I feel that the purpose of this study has been fulfilled to some extant. The theory describe that
brand name has a power, which attracts the customers towards branded products. The reason
is that customer gets special connection with specific brands product and become the loyal
with brand.

• Recommendation:
• In the light of entire project I would like to highlight some recommendation I
found that in the light of brand loyalty Toyota Corolla and Honda City gaining
more and more competitive advantage because it purely involved according to the

71
 Pakistan environment but Honda City has some weaknesses which Indus Motors
Company has to keep on focusing in the customers’ point of view like

• The shape of car as customer perceive

• Interior of the car in black, which mostly people of Pakistan do not much like,
instead, as they admired by soft and light color.

• The Honda Atlas Company has to facilitate customers more than Indus Motors
Company in term of addition of dealership, Make possible to facilitate customer
by 3S, if possible, addition of 2S as well as they providing 2S service for other
products.

• Indus Motors Company has to establish 2S for compete the Pak SUZUKI because
Pak Suzuki is the largest automobile company in Pakistan and its cars are highly
appreciated because of economical price.

• Honda Atlas Company has to improve its quality sales, service because the brand
loyalty is sustained by truth, fairness, good dealing, and friendly attachment with
loyal customer.

SECTION III

8. CHAPTER# 8

.a Student Introduction:
Student Bio-Data

Roll No: mc070400252

Name: MUHAMMAD USMAN
Father Name AKHTAR ALI
Postal Address R-775 Sector No# 9. North
Karachi, Karachi
Postal Code 75850
Career Objective: To become innovative person

72
 Area of specialization Marketing

ACADEMIC RECORDS

EXAMINATION YEAR INSTITUTION %AGE

BS (cS) 2002 Petroman Training Ins. 64.68%

DAE 1996 Jinnah Polytechnic Ins 78.82%

Organization’s name: Smz Enterprises

Designation: -------------------------

Experience (in years): 2 years.

.a Appendices

Fig 2
Production Capacity in 2007-08 Sales of locally Produced cars
and LCV's
160000
140000 250000
120000
200000
100000
80000 150000
60000
100000
40000
20000 50000
0
0
Toyota Company HondaCompany. Pak Suzuki 2004-05 2005-06 2006-07 2007-08

Market Share of Four Major Players P a rt o f C a k e

Figure

9% 2% Pak Suzuki
t o t a l N o . o f u n it s
27% Toyota Motors
T o y o t a M o t o rs
62% HondaCompany.
Dewan Motors

Figure Figure
Sales Analysis Comparison

60,000
50,000
40,000
TOYOTA COROLLA
30,000
HONDA CITY
20,000
10,000
0
year 2005-06 year 2006-07 year 2007-08

73
Figure

Figure 8 Honda City Technical Specification:

Engine
Water-cooled 4cycle,L4 Cylinder Gasoline
Type Engine

Combustion chamber type BOWL-IN TYPE

Valve train Chain drive SOHC,4VLV per Cylinder

Displacement (cc (cm3)) 1,300

Bore and Stroke(mm) 73 x 80

Compression ratio 10.5

Fuel supply system Electronic Fuel Injection

Emission system EURO-4

Maximum Power(kw/rpm) 73/6,000

Transmission
Clutch type Single plate dry, diaphragm spring

Transmission type Synchronized, 5-speed forward, 1 reverse

Gear ratios
1st 3.307
M/T 2nd 1.75
3rd 1.171
4th 0.923
5th 0.767
reverse 3.307
final reduction ratio 4.625
Clutch type 3-element torque converter with lock-up clutch
Electronically controlled automatic, 5-speed
Transmission type forward, 1 reverse
Gear ratios
1st 2.995
A/T 2nd 1.678
3rd 1.066
4th 0.76
5th 0.551
reverse 1.956
final reduction ratio 4.562
Dimensions & Weight
Overall Length(mm) 4,395
Width(mm) 1,695

74
 Height(mm) 1,480
Wheelbase(mm) 2,550
Front(mm) 1,492
Tread
Rear(mm) 1,475
Ground Clearance(mm) 160
Max. Permissible Weight (ibs(us)/kg) 1,450
Seating Capacity 5
(iv) Chassis
Front Mcpherson Strut
Suspension
Rear Torsion beam axle
Front(mm) 19
Stabilizer bar type / size Rear(mm) 11
Front DISK
Brake
Rear with ABS DRUM
Parking Brake Type Mechanical
Front(mm) 262
Disc Diameter
Rear with ABS(mm) 200
Type Rack & Pinion
Steering system Overall ratio 15.89
Turns, lock to lock 3.29
Turning Radius At Body (ft/m ) 5.3
Fuel Tank Capacity(liters) 42
Front 175/65R15
Tire Size
Rear 175/65R15
Battery capacity(V-Ah) 24（5）

Figure 9 Toyota Corolla Technical Specification:

DIMENSIONS

ALTIS
CRUISE 2.0D
ALTIS ALTIS ALTIS TRONIC 2.0D Saloon
Xli Gli M/T CRUISETRONIC M/T SR SR 2.0D Saloon Sunroof

Exterior: L x
W x H (mm) 4540 x 1760 x 1480

Interior: L x
W x H (mm) 1890 x 1450 x 1195

Wheel Base
(mm) 2600

Minimum
Turning
Radius (m) 5.3 m

ENGINE SPECIFICATIONS

Engine Type 2NZ-FE 1 ZZ-FE 2C

75
 Engine
Displacement
(cc) 1299 1794 1975

EFI with
Fuel System VVTI EFI with VVTI Fuel Injection

Max.
Output(SAE- 63(84)/60
NET) 00 97 kW(130hp)/6000 rpm 53(71)/4600

Max.
Torque(SAE-
NET) 121/4400 170 Nm/4200 rpm 131/2800

PERFORMANCE

4 Speed
AT with
4 Speed AT with 5 Speed Switchtr
Transmission 5 Speed MT Switchtronic MT onic 5 Speed M/T

Super ECT
(Electronic
Controlled
Transmission) No No Yes No Yes No YES

Front Ventilated Disc

Brakes
Rear Solid Disc

ABS + Brake
Assist +
Electronic
Brake Force
Distribution No YES No YES

Front MacPherson Strut

Suspension
Rear Torsion Beam

Stabilizer Bar Front/Rear

Steering System Electric Power Steering System

195/65 195/65
R15 R15 195/65 R15 Alloy
Tire and Wheel Steel 195/65 R15 Alloy Rims Steel Rims

Fuel Tank Capacity 55 Liters

Fuel Cut System Yes

EXTERIOR

Antenna Glass Embedded Print Antenna

Front Head
Lamps 4 Lamps Multi-reflector

76
Rear Lamps LED (Light Emitting Diode) Type

Windshield
Intermittent with Diffusing Washer Type Nozzle
Wipers

High Mount
Stop Lamp YES

Windshield Green Laminated with Top Shade

Mud Guard Body Color

Rear Garnish Body Color

Side Impact
Bars With

Side
Protection
Moulding Body Color

Rocker
Side Skirts Moulding Extended

15 Inch
Full Cap Alloy
Wheel 15" 15 Inch Alloy Rims Full Cap 15" Rims

INTERIOR

Interior Color
Scheme Greg

Sunroof No Yes No Yes

Fabric
High
Seats Fabric Fabric High Grade Leather Package Fabric Grade Leather

Rear Cabin
Flat Floor Yes

Keyless Entry No Yes No Yes

Illuminated
Entry System 4 Spoke Urethane

Steering Tilt and Telescopic

Multi
Information
Display Yes

Meter
Illumination
Control Yes

Speedometer Positron km/h

Tachometer Yes

77
 Gate
Type
lever
Leather
Gate Type lever + Wood
Leather + Sequenti
Gear Shift Leath Sequential al
Lever Standard er (Silver) Leather (Silver) Standard Leather

Wood Grain
Finish No Yes No Yes

2 DIN audio with High

1DIN 2 DIN audio with Player/ 1DIN 1DIN
Audio Player/ AM-FM/ Mp3 Grade
Audio AM-FM/ Mp3 Audio Audio
(High Grade) 2Audio

Speaker 2 4 6 2 6

Driver+Passenger
Sun visor NO Driver + Passenger (with Vanity mirror) No
(with Vanity mirror)

Rear Seat
Armrest with No Yes No Yes
Cupholders

Center
Console Box with Lid with Lid + 2 Step with Lid with Lid + 2 Step

rear Headrest Separate*3 + Leather

Central Door
Locking No Yes No Yes

Power
Windows No Yes No Yes

Digital Clock Yes

Safety

Key Reminder
Warning Yes

Light on
Warning Yes

Reverse Gear
Warning No No No Yes No Yes No

Driver + Driver +
Driver: 3 Point, with
Passeng Passeng
Driver: 3 Point, with Pretensioner and Force Limiter Pretensioner and
er: 3 er: 3
Passenger Force Limiter
Seat Belt Point Point
Passenger
Front ELR ELR

Rear 2 Passenger: 3 Point ELR Center Passenger: Non Retractable

78
 yes
SRS Air Bag
(Driver side)
No Yes No Yes

Figure 10 Comparison by Technical Specification and Price:

Xli Gli New Honda How Corolla Is

Specs New City MT City AT Better?
Honda City is
PKR PKR PKR
expensive
Price PKR 1,269,000 1,389000 1,319,000 1,439,000
Dimentsions
Exterior: L x W x H
(mm) 4540 x 1760 x 1480 14395 x 1695 x1480
Interior: L x W x H
(mm) 1890 x 1450 x 1195
Wheel Base (mm) 2600 2550 Bigger wheel Base
Ground Clearance Better Ground
(mm) 180 160 Clearance
Minimum Turning
Radius (m) 5.3 m 5.3
Wheel Size 15 15 x 5J
ENGINE
SPECIFICATIONS
Better Fuel Efficient
DOHC (twin cam) 2NZ-FE 4-Cylinder SOHC (single over head Cam) engine with low mid-
Engine Type VVTi 16 Valve 4 Cylinder i-VTEC Torque
Fuel System EFI with VVTI EFI (electronic Fuel injection)
Max. Output(SAE-
NET) 63(84)/6000 73(100)/6000
Max. Torque(SAE-
NET) 121/4400 128/6000
electronically
Controlled
Automatic 5
Synchronized 5 speed 1
Speed forward forward
Transmission 5 Speed MT 1 Reverse reverse electroni
Basic
Tire and Wheel 195/65 R15 Steel 175/65 R15
Brakes (Front/
Rear) Ventilated / Solid Disk / Drum
Gli Gives Electronic
ABS + Brake Brake Force
Assist + distribution (EBD)
ABS with BA (with14" Disk)
Electronic With ABS and BA.
Brake Force Give Better Brake
Brake Type 15" Solid Disk Brakes Distribution than City
Suspension (Front) MacPherson Strut
Suspension (Rear) Torsion Beam
Fuel Tank Capacity 55 Liters 42 liters More Fuel Capacity
EXTERIOR
Antenna Glass Embedded Print Antenna Micro
Door mirrors with
side turn signal Body Color
lamps Black (Electric) (electric) non
Mud Guard Black (FR &RR) (FR &RR)
LED (Light Emitting Diode) Type Stop Multi Reflecting Crystal Tail
Rear Lamps Lamps Lights Better rear Lamps
Intermittent with Diffusing Washer Type
Non
Windshield Wipers Nozzle
Bumper Body Color Body Color

79
 Black, White,
gun metallic,
shim green, Black, white, A-Silver, D-Blue, 7 colors available in
Black , white.
strong blue, Grey polished Metal Gli
jarama beige,
Available Colors Silver.
INTERIOR
Interior Color
Scheme Grege Black
Illuminated Entry
System Yes No
Air Conditioner Yes Yes
CD Player & AM/FM
Radio Single CD Player Single CD Player
Central Door
Locking No Yes Yes
Power Windows No Yes Yes
Better Sound More
Speaker 2 4 2 (Front) Speaers in Gli

Tilt electronic Power Steering Tilt and telescopic

Steering type Tilt and Telescopic Steering
Rear Cabin Flat
Floor Flat Floor Normal
Keyless Entry No Yes
Illuminated Entry
System Yes No
Tilt and telescopic
Steering Tilt and Telescopic Tilt electronic Power Steering Steering
Meter Information Multi Information
Display Multi Information Display LCD Info meter Display Dispay
Rear Seat
Armrest with No Yes No No Rear Arm Aet in Gli
Cupholders
Safety
Emission Standard Euro- 2 Euro- 4
(2FR/2R) 3 Point ELR + 1rear center non Seat Belts For Each
Seat Belt 3 Point ELR Seatbelts
retractable Pessenger

800 vendors...............................................2 Karachi......................................................3

automobile sector......................................1 Model AA.................................................4

Automotive industry in Pakistan...............1 Pakistan Automotive Manufacturers

Association............................................3
components manufacturing.......................2
PAMA.......................................................3
first Model.................................................4
PAMA objective.......................................4
founder’s son.............................................4
time period................................................3
IMC Training Center.................................5
TMC..........................................................4
Indus Motors.............................................5
Company Philosophy...............................4
Indus Motors Company.............................3

80
Toyota Corolla and Honda ..................2, 3 Toyota/Honda...........................................2

Toyota Motors..........................................4 Type A engine..........................................4

81