GROUP MEMBERS

Sadaf Noor Zunaira Khan Iqra Maqbool Aqsa Mushtaq MB2E-12-12 MB2E-12-37 MB2E-12- 03 MB2E-12-13

INTRODUCTION
Mr. Soichiro Honda is founder of Honda Company
Honda started in 1930 and established as a company on 24th September 1948 Honda Motor Company limited is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles with its network in 30 countries worldwide. Honda has been the world's largest motorcycle manufacturer since

1959
Honda is the seventh largest automobile manufacturer of the world

Honda is also world's largest manufacturer of Internal Combustion Engines. Honda is the second-largest Japanese automobile manufacturer Honda is headquartered in Minato, Tokyo, Japan.

Honda Motor Co., Ltd. operates under the basic principles of "Respect for the Individual" and "The Three Joys. These Joys are commonly expressed as The Joy of Buying The Joy of Selling The Joy of Creating

First Generation (1972-1979)

Second Generation (1980-1983)

Third Generation (1984-1987)

Fourth Generation (1988-1991)

Fifth Generation (1992-1995)

Sixth Generation (1996-2000)

Seventh Generation (2001-2005)

Eighth Generation (2006-2010)

HONDA PAKISTAN
Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company Limited Japan, and the Atlas Group of Companies, Pakistan
Company Joint

was incorporated on November

venture agreement was signed on August 05, 1993 ceremony was held on April 17, 1993

Ground-breaking The

first car rolled off the assembly line on May 26, 1994

The

company is listed in Karachi, Lahore and Islamabad Stock

Exchanges

HONDA PAKISTAN

The Operating Principle of Honda Pakistan is

Always keep the deadline Never make excuses Teamwork

Now, Dealerships Network has expanded Company has sixteen 3S (Sales, Service and Spare Parts) and thirty 2S (Service and Spare Parts) Pit stops network in all major cities of Pakistan

Honda Atlas Cars (Pakistan) Limited is offering different types of products with unique features. The strategic business units of Honda in Pakistan are:

AUTOMOBILES

MOTOR CYCLES

GENERATORS

JET ENGINES

WATER PUMPS

HONDA PAKISTAN

In Automobile sector, at present Honda is manufacturing following Cars in Pakistan in wide range of colors with advanced technological features.
Honda Accord Honda CR-V Honda Civic Honda City

Image of Company:
No.1 customer satisfaction Fair rules Profitable organization Self-reliant, exceeding the goal Open and frank atmosphere Believe in originality Encourage localization Environment friendly products

Iqra Maqbool MB2E-12-03

PROJECT BACKGROUND
Analyze

declining sales of Honda as compared Toyota in Pakistan. Competitors of Honda. Common Perception about Toyota and Honda Cars. Comparison of Honda and Toyota. Reasons of declining sales in Honda. Recommendations

HONDA COMPATITORS
Suzuki Toyota

Mitsubishi
Mercedes BMW

PRODUCTION CAPACITY COMPARISON

COMPANY UNIT PRODUCTION CAPACITY PER YEAR

PAK SUZUKI MOTORS TOYOTA INDUS MOTORS HONDA ATLAS CARS GANDHARA NISSAN

150,000 50,000 35,000 6,000

COMPARISON OF HONDA AND TOYOTA CARS

COMPARISON
Price Suitability for Local Conditions Customer Satisfaction Production Capacity Performance Durability Safety Road Grip Fuel Economy

HONDA
More Less Yes Less Satisfactory More More More More

TOYOTA
Less More Yes More Satisfactory Less Less Less Less

COMPARISON
Dealership Centres

HONDA
Less
Expensive

TOYOTA
More
Economical

. Maintenance
Spare Parts
Spare Parts Availability Sales Local Marketing Stylish

Expensive
Difficult Less Less More

Economical
Easy More More Less

Luxurious
Reliability Resale Value

More
More Less

Less
Less More

COMPARISON
Interior Beauty

HONDA
More Less Less Less More

TOYOTA
Less More More More Less

Models Availability Affordability Brand Loyalty Engine Efficiency

Promotions
Ads Environment Friendly Attractive

Less
Less More More

More
More Less Less

SALES OF HONDA AGAINST TOYOTA

MARKET SEGMENTATION OF HONDA

HONDA has segmented its market in following way

ACCORD &CR-V is for Elite Class. HONDA CIVIC is for Upper Middle Class HONDA CITY is for only Middle Class.

PROMOTION STRATIGIES OF HONDA

Billboards Ads TV Sponsoring Sports Events Customer Service Environment Friendly Cars

Aqsa Mushtaq MB2E-12-13

Problem statement
WHY TOYOTA SHARE IS MORE THAN THE SHARE OF HONDA?

Problem statement
Highest sales of Honda, Toyota and Suzuki Sales

2007(PPP) downturn of economy

Policy graph 1998

2005

2012

Problem statement
Sales Toyota

Suzuki Honda

Reasons
Variation Segmentation First initiator Trend setter Service rate Product line

Discussion Questions:

In your view what single word describes the problem Honda facing in sales??
(clue not money)

Discussion Question What you think about the strength and Weakness of Honda Pakistan??

Discussion Questions
Have you ever drive Honda? In case of comparison what you say about that?
Have you ever seen Honda commercial ad on national TV?

Consumer perception about Honda

Positive: Long engine life Good breaking system Comfort drive Luxury car Price

Consumer perception about Honda

Negative Expensive spare parts Durability Target large cities Facilities available at large cities Poor performance in rural areas

Facts about Honda:

Dealership Sales Services available in large cities Preferences by Honda Not all parts are expensive Advertising ads No commercial ads Dont focus on corporate selling

Noor

Sadaf Sadaf Noor MB2E-12-12

MB2E-12-12

Future Strategies
Honda is going to launch many new variants of cars to capture more market share. Its focus is to target different income level people. Honda is going to launch cars of lower engine capacity and hi capacity cars to meet the needs of different customers at the same time.

Future Strategies
It is extending its product line downwards by launching 1000 CC car that will not be a sedan i.e. without dicci. Further, in the same line more luxurious cars will also available in 1200 CC.

Future Strategies
Agreement with Pakistan Navy and Air Force is completed Projects with Mobilink and Telenor are in process

Future Strategies
They are planning to launch a car like Vitz, as we know that Vitz is an imported car and it comes in running condition from abroad but Honda is planning to manufacture such type of car in Pakistan. Good opportunity for company to launch such a car.

Suggestions:

What suggestion do you want to give to Honda???

RECOMMENDATIONS
Honda Company facilitate the customers in term of addition of dealership, possible to facilitate customers by 5S, 3S and also through 2S. Because major competitors Pak Suzuki and Toyota deals with 5S dealership.

RECOMMENDATIONS

According to record, Honda cars are more admired than Toyota vehicles, so Honda should cash there products through extensive marketing.

RECOMMENDATIONS
Company should create awareness through campaign that: Honda parts are not expensive. Honda vehicle are more durable, reliable and very successful in rural areas also.

RECOMMENDATIONS

Honda 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

RECOMMENDATIONS
They should show their famous cogad and animated ad in Pakistan also. Change their promotional strategies

Promotion:
In future ad campaign in Pakistan, they must focus on the following things: Honda vehicles are more fuel efficient due to EFI system, ECON system. Honda vehicles are meeting Euro 4 environmental standards. Honda vehicles are strong, durable and also successful in rural areas.

Target market through:

Marketing strategy plan should be revised develop according to the nation culture Market segmentation according to high or low context culture Tackle market by manufacturing more low-emission CO2 vehicles and offering more motor vehicles model (diesel cars)

Change their positioning:

Positioned itself as a customer friendly company with products for common man, as a company that develops innovative products, as a company with quality products with low price, in terms of value for money.