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Company Secretary
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2.1 COMPANY
Atlas Honda Limited (AHL) is a joint venture between the Atlas Group and Honda Motor Co. Ltd., Japan. The company was created by the merger of Panjdarya Limited and Atlas Autos Ltd. in 1988. Both these motorcycle manufacturing concerns were established by the Atlas Group. In addition, a third concern, Atlas Epak Ltd. was taken over by the Government of Bangladesh in 1971 after the fall of Dhaka. AHL manufactures and markets Honda motorcycles in collaboration with Honda Motor Company. The Company also manufactures various hitech components in-house in collaboration with leading parts manufacturers like Showa Atsumitech, Nippon Denso and Toyo Denso. Honda motorcycles are by far the largest selling motorcycles in the country with an unmatched reputation for high quality, reliability and after-sales-service. AHL has undertaken to develop local manufacturing capabilities to the highest, economically feasible level. While a major role in localization has been assigned to vendor industries, Atlas has the countrys largest in-house manufacturing capability at its Karachi and Sheikhupura plants. To support the production facilities, the company has established an R&D wing and tool making facilities through CAD/CAM which are growing rapidly in size and function as the company expands. Atlas has managed to execute 12 Joint Venture/Technical Assistance Agreements between local vendors and foreign manufacturers for transfer of technology. Besides, Atlas has directly executed 9 Joint Venture/Technical Assistance Agreements other than Honda. AHL management is striving to modernize company operations by adapting applicable aspects of research and theory and more specifically, Hondas unique philosophy of hard/soft technologies to the realities of Pakistani conditions. Company management structure, Roll No. 06-129 Page 5 of 94
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systems and processes are changed according to the demands of the customer, growth and new technology. Efforts are being made to develop participation at all levels of personnel in decision-making and a substantial and effective delegation has been established at levels where applicable. Various participation programs such as Ala Mayar Quality Circles movement, launched in 1985, are strongly encouraged to allow constructive self-expression and teamwork. The Company training and development programs encourage all members to develop themselves and contribute to their full potential. AHL is playing a pioneering role in creating conditions for easy and confident use of motorcycles all over the country. A vast and growing network of over 1600 sales service and spare parts dealers has been established. In order to back up this system, Atlas has set up Warranty & Training Centers (WTC) in Karachi and Lahore which provide several courses of varying duration and complexity for motorcycle mechanics and users each year. Mobile training facilities take the latest know-how, technology and maintenance of motorcycles to major rural and urban centers around the country. Annual Production Capacity: Authorized Capital: Paid Up Capital: 600,000 1 Billion (rupees) 472.985 Million
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2.1.3 Export
Bangladesh Afghanistan
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2.3 VISION
Market leader in the motorcycle industry, emerging as a globally competitive centre of production and exports.
2.4 MISSION
A dynamic growth oriented company through market leadership, excellence in quality and service and maximizing export, ensuring attractive returns to equity holders, rewarding associates according to their ability and performance, fostering a network of engineers and researchers ensuing unique contribution to the development of the industry, customer satisfaction and protection of the environment by producing emission friendly green products as a good corporate citizen fulfilling its social responsibilities in all respects.
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2.6 BRAND
2.6.1 What is Honda?
Honda is an entity that realizes the dreams of individuals and spreads joy to people. Honda's philosophy, unique corporate culture, pursuit of challenges that fulfill individuals' dreams and variety of products and activities born of challenges will remain the foundation of the Honda brand. We will continue building on our history of realizing people's dreams.
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with next? We will continue creating exciting products and realizing peoples dreams and expectations. Our slogan For Honda to remain Honda, and for everyone to realize their aspirations, we must believe in "The Power of Dreams".
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Company Secretary
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1995 Export Agreement signed with Honda Motor Company Limited Japan
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1994 Mr. Kawamoto President, Honda Motor Company Limited, visited AHL 1992 Change of name to Atlas Honda Limited (AHL) 1991 Inauguration of CG125 Engine Project at Sheikhupura Factory 1989 Export of built up motorcycles to Nepal 1988 Merger of Panjdarya Limited into Atlas Autos Limited Production capacity expansion III Joint Venture agreement signed with Honda Motor Company Limited 1987 Inauguration of CD70 Engine Project at Karachi Factory 1981 Commercial Production started at Panjdarya Limited 1981 Production capacity expansion II 1979 Incorporation of Panjdarya Limited as Joint Venture with Honda Motor Company Limited 1976 Production capacity expansion I Public offering of Shares 1964 Commercial Production started 1963 Technical Assistance Agreement signed with Honda Motor Company Limited Japan Incorporation of Atlas Autos Limited Roll No. 06-129 Page 15 of 94
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2.9.2 Quality
To ensure that our products and services meet the set standards of excellence.
2.9.4 Technology
To develop and maintain distinct business advantages through continuous induction of improved hard and soft technologies.
2.9.5 Shareholders
To ensure health and viability of business and thus safeguarding shareholders interest by maximizing profit. Payments of regular satisfactory dividends and adding value to the shares.
2.9.6 Employees
To enhance and continuously up-date each member's capabilities and education and to provide an environment which encourages practical expression of the individuals potential in goal directed team efforts and compensate them attractively according to their abilities and performance.
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Atlas Group
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commitment that what has come from the society should be shared with the society. Atlas Foundation has been established in order to focus on community's growth particularly through health care and education.
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The group aims to strive for excellence in the areas of endeavors, to make each company in the group highly profitable, a provider of high quality goods and services, an attractive organization to work for, and a reliable business partner and associate.
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Secretary
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Products
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4.1 CD 70
Honda CD 70 is the No. 1 choice in motorcycles. In addition to its established superiority in terms of durability and fuel economy, the Honda CD 70 is presented with special features. The new attractively designed CD 70 is right there at the top, with its aerodynamic shape, super econopower, a smoke-free 4-Stroke engine and the special Honda 12-volt CDI technology. The new eye-catching graphics, front and rear mud-flaps, comfortable seat and the new utility box have made Honda CD 70 an ideal combination of elegance and durability. Because of its high resale value, Honda CD 70 is an asset in your life. Its excellent petrol average makes it greatly economical, and its easily available spare parts and trained mechanics ensure trouble-free companionship
Key Features
Big and Comfortable Seats New Beautiful Graphics Petrol Tank with 9 Liter Capacity Super Econo Power, 4-Stroke Engine New Mud Flap Strong Side Cover with Lock New Utility Box
Specification CD-70
Engine air Displacement Bore & Stroke Compression Ratio Clutch Transmission Starting Frame Dimension(LxWxH) Ground Clearance Roll No. 06-129 4-Stroke OHC single cylinder cooled by 72 cm3 47.0 x 41.4 mm 8.8:1 Multiple wt plates continuous 4 speed mash Kick start Backbone type 1900 x 760 x 995 mm 140 mm Page 24 of 94
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4.2 CD 100
Honda Motorcycles are defined by Quality, Performance, Speed, Economy Petrol and Re-sale Value. All these have managed to successfully bag your trust on the New Honda CD100. It is a stunning result of advanced Japanese technology and right up there as an outstanding performer representing all the qualities that make Honda motorcycles so special.
Key Features
Strong Footrest Fuel Guage Indicator Multi Reflector Head Light Winning Style Econo Power 4-Stroke Engine Double Cradle Strong Tubular Frame Strong Suspension Wider Tyre & Strong Road Grip Crankcase Emission Control System Bigger Brake Drum with Non-Asbestose Brake Shoe Element Air Cleaner (Foam Type) Utility Box
Specification CD-100
Engine Displacement Bore & Stroke Compression Ratio Clutch Transmission Starting Frame Dimension(LxWxH) Ground Clearance Tyre at Front 4-Stroke OHC cooled by air 97.1 cm3 50 x 49.5 mm 9.0:1 Weight contains different plates Continuous 4 speed mesh Kick start Double craddle tubular type 1983 x 735 x 1045 mm 160 mm 2.75 - 18 4 PR Page 26 of 94
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4.2 CG 125
Honda Motorcycles are defined by Quality, Performance, Speed, Economy Petrol and Re-sale Value. All these have managed to successfully bag your trust on the New Honda CG125. It is a stunning result of advanced Japanese technology and right up there as an outstanding performer representing all the qualities that make Honda motorcycles so special. The 125 cc 4-stroke engine generates 11-Horse Power with low fuel consumption. It is ideal for high speed, long runs and rough pathways. Honda CG125 has a CDI Ignition System and a 12-volt battery (instead of 6-volt). The headlight and indicators are brighter, with an easy starting-up of the engine.
Key Features
Comfortable Seat with Rear Grip New Beautiful Petrol Tank with Graphics Strong 4-Stroke Smoke Less Engine Stylish Speedometer with Economy Zone Elegant Front Light New Shape For Back Light
Specification CG-125
Engine Bore & Stroke Wheel Base Starting Transmission Dimension(LxWxH) Height of Seat Ground Clearance Petrol Capacity Tyre at Front Roll No. 06-129 4-Stroke OHV cooled by air 56.5 x 49.5 mm 1200 mm Kick start Continuous 4 speed mesh 1911 x 731 x 1017 mm 743 mm 137 mm 9.2 Liter 2.50 - 18 4 PR Page 28 of 94
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Atlas Honda Limited 3.00 - 17 6 PR 96.5 KG Telescopic Forke 103 mm Travel Swing Arm 68 mm Travel Roller Chain
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Key Features
Attractive Fuel Tank with modern graphics Speedometer with trip meter Tachometer with Fuel Guage Indicator Black painted silencer with stylish cover Front hydrolic disc brakes Back light with aerodynamic cowl Stronger and adjustable cushion Euro2 Technology now with ASV (Air Section Walve) Due to 5- Gear Transmission more Power on Low RPM
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Information
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policies plaster individual path to upside in management ladder through performance and attitude. Management Trainee Program AHL attracts talented individuals for management trainee program designed to provide fast track career growth for entry level individuals. This program helps qualified, skilled and talented individuals to achieve high career growth with in the short span. After completion of successful management training period individuals are placed as Assistant Manager in their respective fields.
Quality Circles
In order to maintain continuous improvement in good management and manufacturing techniques, company operates Quality Circles; which has local translation "ALA MAYAR". These circles encourage participative management in employees and make them feel contributory member in the company success. AHL views quality circles as the vital medium for continuous improvement. The aim of Quality Circles (ALA MAYAR) is to build an environment that makes company "Best Among All" in the automotive industry and to retain the status of market leadership. Every year company holds competition to pick top three quality circles among employees and vendor industry. Competition winner Roll No. 06-129 Page 34 of 94
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among employees goes to participate Asia Oceania Block while runnersup go to Sheikhupura plant for study tour.
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Company Picnic
To enjoy summer season, every year company arrange picnic for all employees that brings staff together for fun and food.
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Dealers
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Lahore
1 Name: Zubair Autos Contact To: M. Afzal, Mr. Agha Moazam Services: 5S Dealer Contact#: 042-37571304, 37538372 Email: Cell#: 0300-4180969, 0323-4276154 Address: 139 - Multan Road, P.O. Iqbal Town. Lahore 2 Name: Madni Honda Contact To: Mr. Arfat Butt, Mr. Shakeel Services: 5S Dealer Contact#: 042-37415453, 37460145 Email: Cell#: 0333-4419433 Address: 38 -A, Multan Road, Lahore 3 Name: Lahore Honda Contact To: Mr. Shahid Sarwar, Asif Sarwar Services: 5S Dealer Contact#: 042-38551694, 37151584 37158486 Email: Cell#: 0300-4516166, 0300-4448875 Address: 67-Outfall road, Corporation Chowk, Lahore 4 Name: Honda Super King Contact To: Mr. Mehmood, Mr. Waheed Services: 5S Dealer Contact#: 042-5755401, 5760041 Email: Cell#: 0300-9427040 Address: 43-D Block N Industrial Area Gulberg II. Lahore 5 Name: Bhatti Auto Track Contact To: Mr. Tahir, Mr. Sheeraz Services: 5S Dealer Contact#: 042-35840493, 35844403-4 Email: Cell#: 0300-8491955 Address: Link Road, Model Town, (Mcleod, 6367259), Lahore 6 Name: Imam Din Autos Contact To: Mr. Malik Iqbal Services: 5S Dealer Contact#: 042-35827401-2 Email: Cell#: 0300-4777670, 0300-8450916 Address: 15-Ferozepur Road, Near General Hospital.
Lahore 7 Name: Rahat Traders Contact To: Mr. Zulfiqar Ali, Mr. Ishfaq Services: 5S Dealer Contact#: 042-37511402, 37512205 Roll No. 06-129 Page 38 of 94
Atlas Honda Limited Cell#: 0333-4228871, 0300-8086316 Chowk Tohkar Niaz Baig, Multan Road, Lahore
Name: Khan Sons Contact To: Mr. Raheel, Mr. Waqas Services: 5S Dealer Contact#: 042-35891606 Email: Cell#: 0322-6012163 Address: Baidian road, Near Haji Park, Lahore Cantt.
Lahore
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dust Analysis
In ry
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Political
There is significant political pressure on Honda Industry in Pakistan. This pressure mostly arises from a high rate of taxes. This extremely high taxation rate greatly deters the players in the industry from charging the premium prices for perceived value addition. Another political factor that impacts the industry, this time negatively is the governments policy of increasing excise duty on all imports, Honda imports a lot of its parts (finished material) used in different products from other country. Increase in custom duty became a reason for increase in prices. Demand for this product decreases due to increased prices.
Economic
There are several implications of the economic situation of Pakistan. The adverse performance was attributed to economic slowdown. Input cost has increased substantially. The tariff on imported products has also been reduced and because of these, there was an increased competition due to availability of chemical industry in Pakistan. Such Economic factors have a resounding impact on related industry and although most companies in the industry have switched from chemical ingredients to herbal ingredients.
Socioculture
A major trend in the urban areas of Pakistan has been a changed, for education and jobs, girls and women need to have their own convince on which they can travel on less expenses and save money from other Traveling expenses. Now-a-days, females want to drive their own vehicles from a simple SCOTTY to a luxury car.
Technological
Technology plays a Primary role in this industry, as it is heavily dependent on technological advancements like the consumer electronic industry or the software industry because Scotty is heavily based on technology in nature; technological in this industry is therefore unlimited to function as to improve production capacities, high mileage of Scotty, Roll No. 06-129 Page 41 of 94
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Strengths
Atlas Honda is a big multinational. Enjoying economies of scale. Good will in the market. Strong financial position. Strong distribution channel in Pakistan. Well brand image & brand name. Strong and healthy relationships with distributors and retailers. Management of product is familiar with the psychographics and demographic of the consumers.
Weakness
Strong competition. Substitute products. Lack of control in the Market. Lack of Reliability of data, Plans predictability. Lack of Competitive Strength.
Opportunities
Changing customers needs & wants as life style change. Increasing the volume of the Production. Rapid market growth. To create relation with society on the social marketing basis. Niche Target Market. Technology development and Innovations. The target market is educated professionals and belongs to premium and middle class.
Threats
Political effects. Economic Crisis. Legislative effects. Roll No. 06-129 Page 43 of 94
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Brand Switchers. Increases in prices due to fuel prices (For distribution purpose)
Market Research
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Questionnaire Design
(Consumer Survey)
By Atlas Honda
Name_______________________ Occupation___________________ Age: (15-20) (21-25) (26-30) Gender_________________
1. Do you have your own vehicle for traveling? a) Yes b) No 2. Do you want to save your time for traveling? a) Yes b) No c) To Some Extent 3. You prefer what while purchasing? a) Price b) Quality c) Both 4. What do you prefer in a vehicle? a) Mileage b) Speed 5. Do you feel that Females and Children should have their own Scotty? a) Yes b) No c) Dont Know 6. Do you want a Scotty which save your time and Fuel? a) Yes b) No c) To Some Extent 7. Who is your Favorite Vehicle manufacturer? a) Honda b) Yamaha c) Suzuki d) Toyota 8. What type of Scotty will you prefer? a) 50 CC b) 40 CC 70 Km/Liter 80 Km/Liter 9. What do think about the success of this idea? a) 20%-40% b) 41%-60% c) 61%-80% 10. Kindly state suggestion related to this product d) Above 80% e) Others
Thanks for your Cooperation Regards, Muhammad Jawad Asif Roll No. 06-129 Page 45 of 94
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70 60 50 40 30 20 10 0 Y es No Q# 1 : 4 2 58
Yes No Total
Frequency 42 58 100%
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2. Do you want to save your time for traveling? a) Yes b) No c) To Some Extent
80 70 60 50 40 30 20 10 0
75
Q# 2 : 2 0 5 Y es No To S e om Ex tent
Frequency 75 5 20 100%
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60 50 40 30 20 10 0
52 40
Q# 3 :
Price
Quality
Both
Frequency 52 40 08 100%
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90 80 70 60 50 40 30 20 10 0
80
Q #: 4 20
Speed
Mileage
Frequency 80 20 100%
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5. Do you feel that Females and Children should have their own Scotty? a) Yes b) No c) Dont Know
60 50 40 30 20 10 0
57
3 5 Q# 5 :
Y es
No
D on't K now
Frequency 57 08 35 100%
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6. Do you want a Scotty which save your time and Fuel? a) Yes b) No c) To Some Extent
8 0 7 0 6 0 5 0 4 0 3 0 2 0 1 0 0
75
Q# 6 : 20 5 Y es No To S e om Ex tent
Frequency 75 05 20 100%
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e) Others
60 50 40 30 20 10 0
53
Q# 7 : 12 15 18
Frequency 53 12 15 18 02 100%
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80 70 60 50 40 30 20 10 0
7 5
Q# 8 : 25
50 C C
4 C 0 C
50 CC 40 CC Total
Frequency 75 25 100%
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9. What do think about the success of this idea? a) 20%-40% b) 41%-60% c) 61%-80%
d) Above 80%
72
Q# 9 :
Frequency 08 15 72 08 100%
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Proposed Project
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SMART SCOTTY
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My proposed product is SMART SCOTTY. Now-a-days, there is a huge a trend that Females and Children want to have their own vehicle to go on their jobs, schools or colleges. At this time, there is no any manufacturer or producer of Scotty is present in Pakistan, but Atlas Honda is going to launch its SMART SCOTTY. If Atlas Honda launches this Scotty, then it can get a competitive advantage of manufacturing Scotty first time ever in the history of Pakistan. SMART SCOTTY is offering Market Penetration Pricing in which prices are set to low and to survive into the Market. As this Product is new, so, it should adopt this type of Pricing Strategy. Initially, the SMART SCOTTY is offering in 2 different colors, which are: 1) 2) Blue Red But Atlas Honda has enough capacity to launch this Scotty in some other colors according to the needs and wants of the target market. Market Potential As you know, prices of petrol is increasing day-by-day, so at this time, people of Pakistan need such a vehicle which can be fit according to the budget of the jobbing persons. SMART SCOTTY has 50 horse powers which can run 70 kilo meter in 1 liter Patrol. Now-a-days, this is the time of fast moving people having a lot of tasks in a single time. So, if Females and Children use this scotty, then they can easily save their time as well as convince expenses. Females dont need to wait for buses and vans on bus stops.
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From its unique and limitless advantages, SMART SCOTTY is a cost effective and time saving product, especially for Females and Children.
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Marketing Strategies
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10.1.1
Idea Generation
Every product starts as an idea. Here is an idea generates SMART SCOTTY because the companies or competitors present in the market dont have any Scotty in their product line. The new idea came in to mind is that to launch such a vehicle which also eligible for both Males and Females (But here, our major concern is with Females and Children are of age 10 and above). There are certain points which support the success of this idea. Like is cost effectiveness and time saving product. Idea was generated in two ways; Internally and Externally, In Internal ways idea is generated by Board of Directors, Marketing Managers etc. In External way, idea is checked through market survey. There are 2 new product ideas given by internal committee. Smart Scotty Low weight motorbike (50 CC)
10.1.2
Idea Screening
In this process we check the efficiency and effectiveness of our ideas. By analyzing our ideas we came to know that this idea (Smart Scotty) is very profitable, there is low level of risk because the product is new and quality oriented. The main purpose of idea screening is that to find the best product from our 3 recommended options. We make a survey for this purpose. We get opinions if many people and most of the people choose our 1st product Smart Scotty. Because it is a new idea and it is very cost effective.
10.1.3
Concept Development
A product idea is a possible product the company might offer to the market. In contrast, a product concept is an elaborated version of the idea expressed in meaningful consumer terms. A product idea can be turned into several concepts by asking: Who will use this product? What primary benefit should this product provide? When
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will people consume or use this product? By answering such questions, a company can often form several product concepts, select the single most promising concept, and create a product-positioning map for it. Next, the product concept has to be turned into a brand concept. To transform the concept of a low-cost instant breakfast drink into a brand concept, the company must decide how much to charge and how calorific to make its drink.
Concept Testing
Concept testing involves presenting the product concept to appropriate target consumers and getting their reactions. The concepts can be presented symbolically or physically. However, the more the tested concepts resemble the final product or experience, the more dependable concept testing is. In the past, creating physical proto types was costly and time-consuming, but computer-aided design and manufacturing programs have changed that. Today firms can design a number of prototypes via computer and then create plastic models to obtain feedback from potential consumers. Companies are also using virtual reality to test product concepts.
10.1.4
Business Analysis
In this stage, the company evaluates the proposed new products business attractiveness by preparing sales, cost, and profit projections to determine whether these satisfy company objectives. If they do, the product concept can move to the product-development stage. Note that this cannot be a static process: As new information emerges, the business analysis must be revised and expanded accordingly. Estimating Total Sales Estimating Costs and Profits
10.1.5
Product Planning
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This stage of the process involves several steps. We develop the Scotty Project and responsibility for the project is assigned to a project team. The proposal of Smart Scotty is analyzed in term of Production, Marketing, Financial and Competitiveness factors. A development budget is approximately Rs.50,00,000/- is established and some preliminary marketing and technical research is undertaken. Smart Scotty features and components specifications are outlined. Finally, a project plan of this product is written up, which includes estimate of future development, production and marketing costs along with capital requirements and improvements and manpower needs. Project proposal is given to top management for a go or no-go decision.
10.1.6
Product Development
At this stage, out planning is completed and we start development phase. We choose the most appropriate plan and then start working on it. The plan we selected is the best among all available and meets the most of requirements. A development report to management is prepared that spells out in fine detail: 1. Results of the studies; 2. Required plan design; 3. Production facilities design; 4. Tooling requirements; 5. Marketing Test plan; 6. Financial program survey.
10.1.7
Test Marketing
Up until now product has been company secrets. Now company goes outside the company and submits the product candidate for customers approved. Test Marketing is a controlled experiment in a limited geographic area to test the product or in some cases certain aspects of the marketing strategy, such as designing 0or advertisement. The main goal of the test market is to evaluate and adjust the general marketing strategy to be used and the appropriate Marketing Mix. Roll No. 06-129 Page 64 of 94
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Throughout the test market process, findings are being analyzed and forecasts of volume developed. Upon completion of a successful test market phase, the marketing plan can be finalized and the product prepared for launch.
10.1.8
Commercialization
This is the launching step in which the firm commits to introducing the product into the marketplace. During this stage, heavy emphasis is placed on the organization structure and management talent needed to implement the marketing strategy. Emphasis is also given to following up on such things as errors in the design, production costs, quality control and inventory requirements. Quality level: Consumers consider that the level of the product quality when purchase decisions are both new and existing products. At minimum, buyers want product that will perform the functions they are supposed to and do so reasonably well. Some customers are willing to accept lower quality if product use is not demanding and the price are lower. In designing new products, marketers must consider what criteria potential customers use to determine their perception of quality. Eight general criteria are:
Product Design:
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Many well-design products are easy to us as intended and pleasing to the senses. Designing new products with both ease of use and aesthetic appeal can be difficult, but it can clearly differentiate a new product from competitors. Good design can add great value to a new product.
Product Safety: Clearly, new products must have a reasonable level of safety. Safety is both an ethical and practical issue. Ethically, customers should not be using harmed by using product as intended. The practical issue is that when users get harmed by a product, they may stop buying, tell others about their experience or sue the company.
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10.2.3
1.
Low sales High cost per customer High cost per customer Negative Negative Create product awareness Create product awareness and trial and trial Offer a basic product Offer a basic product Use cost-plus Use cost-plus Build selective distribution Build selective distribution Build product awareness among Build product awareness among early adopters and dealers early adopters and dealers
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2.
Rapidly rising sales Average cost per customer Rising profits Maximize market share Offer product extensions, service, warranty Price to penetrate market Build intensive distribution Build awareness and interest in the mass market
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3.
Peak sales Low cost per customer High profits Maximize profit while defending market share Diversify brand and models Price to match or best competitors Build more intensive distribution Stress brand differences and benefits
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4.
Declining sales Low cost per customer Declining profits Reduce expenditure and milk the brand Phase out weak items Cut price Go selective: phase out unprofitable outlets Reduce to level needed to retain hard-core loyal customers
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DEMOGRAPHIC SEGMENTATION
Age Gender Occupation Family size Family income 10 years and above Both Males and Females One earning member usually the male Normal (Small) family size A & B class
PSYCHOGRAPHIC SEGMENTATION
Social class Opinions Personality Lifestyle Upper and Middle class They are aware that they have to look good and socially conscious Authoritarian Strivers and Achievers
BEHAVIOURAL SEGMENTATION
Purchase Occasion Benefit sought User status Usage rate Readiness stage Attitude towards product All occasion Fit for traveling and Time Saving Regular user, Non user, Potential user Heavy user Aware, Interested and Intending to buy Positive
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Already our target market is to cater both the genders so no other segment is left to think on that section. Occupation: We cater the people of good income so students and professionals but we cater our labor-class and those college students who are really conscious about their Time and money. Income Level: We catering income of people Rs.20,000+ but we can move downwards as we have different Promotion campaigns. Life Style: All those who are strivers, achievers and strugglers (it helps to maintain style) Personality: Its compulsive for gregarious and social persons, who are ambitious and want to do something all those who really care about their Health conscious.
10.4 POSITIONING
Determine positioning: we determine our products position in the market. By this analysis we came to know that where our product stands in market and how much it compete with other competitors already in the market. We can make this analysis by checking our: Sales Number of Customers Market share Reputation Product positioning is how a product is positioned in the mind of the customers. Positioning begins with a difference in the Product that is worth establishing to the extent that it is improved, distinctive, superior, communicable, pre-emptive, affordable and profitable. Roll No. 06-129 Page 73 of 94
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Companies can improve its distribution strategies by: Mapping your products to the end user Determining customers channels preferences and comparing these preferences with actual availability. Recommendating new channels. Examining competitors strategies and comparing them and their effectiveness with your own.
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10.10
ADVERTISING STRATEGIES
A products particular advertising strategy also depends on the level of competition involved with each procduct. Atlas Honda evaluates the products present position in the market, the promotion objectives it wants to achieve and the level of competition involved while setting the advertising strategy for a product. Another way to success of any product is to use IMC (Integrated Maketing Communication), in which the seller or producer of the product take up one voice throughout all the Promotional tools (i.e. Advertising, Sales Promotion, Personal Selling, Direct Marketing, Public Relation).
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10.11
BCG MATRIX
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AHL products (Bikes and other spare parts) in has strong market position in Pakistan because of their evergreen selling nature throughout the year thats why it has large market share and its products has till very strong potential to grow and penetrate not only in local market but also in foreign markets. Therefore, according to BCG Matrix, a products line of Atlas Honda Limited lies in Stars due to large market share and high potential to grow.
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Financial Plan
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Q = Break-even point (Unit of production) FC = Fixed cost Up = Unit Price Vc = Variable cost per unit Therefore: Break-even point Q = Fixed Cost / (Unit Price - Variable Unit Cost) If Fixed Cost = Rs. 300,000 Unit Price = Rs. 55,000 Variable Unit Cost = Rs. 30,000 Break-even Point Q Q = = = Fixed Cost (Unit Price - Variable Unit Cost) Rs.300,000 (Rs.55,000 Rs.30,000) Rs.300,000 (Rs25,000)
= 12 Units
Our Breakeven point (Q) is 12 Units, which means we must sale out 12 units per month, if we sale less than 12 units than we have to face the loss and vive versa. Roll No. 06-129 Page 81 of 94
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Atlas Honda Limited Proposed Income Statement For the year ended on 31st December.. Description Sales (-) C.G.S Gross Profit (-)Operating Expense =Operating Profit Before Tax (-)Taxation Profit After Tax 20010 Rs. 79,20,00 0 31,68,00 0 47,52,00 0 9,50,400 38,01,60 0 (6%) 35,73,50 4 2011 Rs. 92,,40,000 34,84,800 57,55,200 10,64,448 46,90,752 (7%) 43,62,399 2012 Rs. 99,00,000 39,02,976 59,97,024 12,24,115 47,72,909 (8%) 43,91,076 2013 Rs. 1,05,60,000 45,27,452 60,32,548 14,07,732 46,24,816 (9%) 42,08,583 2014 Rs. 11,2,20,000 53,42,393 58,77,607 16,3,29,69 42,44,638 (10%) 3,82,0,174
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Atlas Honda Limited Common Size Income Statement For the year ended on 31st December, 2010
Description Sales (-) C.G.S Gross Profit (-)Operating Expense =Operating Profit Before Tax (-) Tax Profit After Tax
Common Size Income Statement % 100% 40% 60% 12% 48% 06% 42%
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Atlas Honda Limited Common Size Income Statement For the year ended on 31st December, 2011
Description Sales (-) C.G.S Gross Profit (-)Operating Expense =Operating Profit Before Tax (-) Tax Profit After Tax
Common Size Income Statement % 100% 38% 62% 12% 50% 07% 43%
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Atlas Honda Limited Common Size Income Statement For the year ended on 31st December, 2012
Description Sales (-) C.G.S Gross Profit (-)Operating Expense =Operating Profit Before Tax (-) Tax Profit After Tax
Common Size Income Statement % 100% 39% 61% 13% 48% 08% 40%
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Atlas Honda Limited Common Size Income Statement For the year ended on 31st December, 2013
Description Sales (-) C.G.S Gross Profit (-)Operating Expense =Operating Profit Before Tax (-) Tax Profit After Tax
Common Size Income Statement % 100% 43% 57% 13% 44% 09% 35%
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Atlas Honda Limited Common Size Income Statement For the year ended on 31st December, 2014
Description Sales (-) C.G.S Gross Profit (-)Operating Expense =Operating Profit Before Tax (-) Tax Profit After Tax
Common Size Income Statement % 100% 47% 53% 15% 38% 10% 28%
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Recommendation
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12.1 RECOMMENDATIONS
To achieve its mission, AHL will have to: Give highest priority to Health, Safety, Environment and Ethical matters. Ensure our Products deliver maximum value to customers by maintaining dependable supply, consistent quality and reliability. Uphold excellent service levels to foster long-term relationships with customers and suppliers. Achieve the highest possible operating efficiencies and lowest costs and expand the business through selective capacity increase and new products launches. Have a close look on their competitors and having flexible strategies. Never compromise with quality which is major strength of AHL. Maintain financial strength and make good financial structure. More and more innovation. Maximum entrance in potential and emerging.
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Conclusion
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13.1 CONCLUSION
With improved competitiveness of Atlas Hondas product lines, the company is now well positioned to grow the market and its share. After a year of re-structuring, there is renewed confidence in the ability of the associates, the product and production capability to deliver quantity and quality at affordable prices. With the arrival of the banking sector as a financing partner for the motorcycle consumers, the market will soon cross the 1 million barriers. In the 45 years, that AHL Pakistan Limited has existed, it has taken any impact of all its operations seriously. With this effort it is also commencing a candid dialogue, a dialogue that helps it to understand how its businesses can perform better, more sustainable with greater 290o value creation. These are initial steps to a new beginning and in fact some of you helped it through journeyas we align our structures for a better-flowing sustainability reporting capabilities. Integrity and honesty have been its forteas you, its stakeholders tell it. The sustainabilityrelated expectations in Pakistans emerging market environment can be generous and forgiving. But it understands that it must be positioned for tomorrows opportunities. Today, it has worked hard and its been a long road.
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References
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WEBSITE
www.honda.com.pk www.scribd.com www.google.com.pk
PERSON
Muhammad Qaiser Vehicle Quality Supervisor (AHL)
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