honda final project
TRANSCRIPT
Table of ContentsVision Statement..........................................................................2
Company profile..........................................................................3
PLACEMENT...........................................................................12
PRICING...................................................................................17
PROMOTION............................................................................19
COMPANY’S ANALYSIS.......................................................21
Conclusion.................................................................................26
APPENDIX A............................................................................27
APPENDIX B............................................................................30
1
Vision Statement
Focusing on “satisfaction” (customers’, associates’ and shareholders’)
With challenging spirit and flexibility, we are dedicated to supplying latest
Generation cars with advanced technology, greater fuel efficiency and
Competitive prices, along with friendly and efficient after sales back up,
Maintaining “quality” as core of all activities.
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Company profile
Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company Limited
Japan, and the Atlas Group of Companies, Pakistan.
The company was incorporated on November --, 1992 and joint venture agreement was signed
on August ---, 1993. The ground breaking ceremony was held on April 17, 1993 and within a
record time of 11 months, construction and erection of machinery was completed. The first car
rolled off the assembly line on May 26, 1994. Official inauguration was done by President of
Pakistan, Sardar Farooq Ahmad Khan Leghari. Mr.Kawamoto, President of Honda Motor
Company Limited Japan was also present to grace the occasion. The company is listed on
Karachi, Lahore and Islamabad Stock Exchanges.
On July 14, 1994, car bookings started at six dealerships in Karachi, Lahore, and Islamabad.
Since then the Dealerships Network has expanded and now the company has sixteen 3S (Sales,
Service and Spare Parts) and thirty 2S (Service and Spare Parts) Pitstops 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.
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.
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PRODUCT REVIEW
Following are the products provided by HACPL. However, we are going to be focusing on
Honda Civic as our product of interest.
Honda Civic
All it takes is a single glance. You stop in your tracks. The elegant silhouette draws you forward
for a closer look. You peer into the sporty cockpit and your pulse races with excitement Your
instincts are aroused and your feel driven to grab the controls.
Performance
Honda heightens your driving enjoyment with a rare combination of spirited engine response and
exceptional fuel efficiency. This ideal balance is achieved by Honda's next-generation 1.8-liter
SOHC i-VTEC engine - the first entirely new Civic power plant in 17 years. Through Honda's
advanced i-VTEC (Intelligent Variable Valve Timing and Lift Electronic Control) system and
DBW (Drive By Wire) technology, it performs like two types of engines in one compact unit. At
high engine loads, such as when starting from a standstill or stepping on the accelerator, DBW
fully opens the throttle while VTEC optimizes intake valve timing to generate 2.0-liter-
equivalent power. At low engine loads, such as during high-speed cruising, DBW narrows the
throttle opening while VTEC delays valve closing to achieve 1.5-liter-equivalent fuel efficiency.
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Settings are intelligently switched in a seamless manner to ensure smooth, linear response at all
revolutions
Engine
Type Water-cooled, In-Line 4-Cylinder
Valve Train 16-Valve SOHC i-VTEC
Fuel Supply System Multi-Point Fuel Injection
Throttle System Drive-by-Wire
Bore / Stroke (mm) 81.0 X 87.3
Displacement (cubic cm) 1,799
Compression Ratio 10.5 : 1
Maximum Horsepower (bhp @ rpm) 140 @ 6,300
Maximum Torque (lb.-ft @ rpm) 128 @ 4,300
Ignition System Direct Ignition System with Immobilizer
Steering
Gear Type Rack & pinion, Power assisted
Steering Wheel Turns (Lock-to-Lock) 2.67
Braking System
Type 4 - Wheel Disc ABS
Electronic Brake force Distribution
(EBD)O
Tires / Wheels
Tire Size 195 / 65 R 15
Wheel Size 15 X 6 JJ
Wheel TypeSteel Wheel with Full
Cover
5-Spoke Aluminum
Alloy
Interior / Convenience
Interior color Grey & Beige Grey & Beige
Sun - roof X O
Steering Wheel 3 - spokes 3 - spokes
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Speaker System 4 - speakers 4 - speakers
Seat Cover Material Tri cots High Grade
Safety
Supplement Restraint System
(Airbags)
(Driver & Front Seat Passenger)
X O
Seatbelts - Front O Pre-pensioner with EA
Rear O O
Adjustable Shoulder Anchor (Front) O O
High Mount Stop Lamp O O
Fog Lamps X O
Door Beams O O
High-tension Steel O O
Crumple Zones O O
G - CON O O
Honda City
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The New Honda CITY
TYPE MT VARIO Steermatic1.5L VTEC
ENGINE
TypeiDSI (Intelligence Dual & Sequential
Ignition)
SOHC, 4-Cylinder 16
valve-VTEC
Fuel supply system PGMF-I Programmed Fuel InjectionPGMF-I (Programmed
Fuel Injection)
Displacement 1300 1497
Compression ratio 8.8:1 10.1:1
Maximum horsepower
(KW(PS)RPM)57 (78) / 5,800 81(110) / 5,800
Maximum torque
(N.M(KGM)RPM)106 (10.8) / 3,000 143(14.6) / 4,800
Transmission TypeSynchromesh five
forward, one
reverse
Continuously
Variable
Transmission
6 Position (CVT)
Steermatic (CVT + 7
speed mode)
STEERING SYSTEM
Gear Type Rack and pinion, power assisted
Overall length (mm) 4390
Overall width (mm) 1690
Overall height (mm) 1485
Wheel base (mm) 2450
Tread Front (mm) 1455
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Tread Rear (mm) 1455
Ground clearance 160
SUSPENSION SYSTEM
Front / RearMcPherson strut with coil spring & stabilizer / H-shape Torsion
Beam
BREAKING SYSTEM
Front Ventilated discs
Rear Leading / trailing shoe drums
TYPES / WHEELS
Tire Size 165/80 R13 185/55 R15
Wheel Size 13X5J 15X6J
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Honda Accord
Enter the cockpit of the New Accord and bask is satisfaction. It engages the senses and attends of
the Driver's needs. With an array of innovative feathers, it offers superior comfort and
convenience.
Type Water-cooled, In-Line 4-Cylinder
Engine Block Aluminum Alloy
Valve Train 16-Valve SOHC i-VTEC
Fuel Supply System Multi-Point Fuel Injection
Throttle System Drive-by-Wire
Bore / Stroke (mm) 81.0 X 87.3
Displacement (cubic cm) 1,799
Compression Ratio 10.5 : 1
Maximum Horsepower (bhp @
rpm)140 @ 6,300
Maximum Torque (lb.-ft @
rpm)128 @ 4,300
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Ignition System Direct Ignition System with Immobilizer
Transmission
Manual Synchromesh 5 forward speed - 1 reverse
ProsmatecCompact 5- Speed Automatic (Progressive Shift
Management Technology)
Steering
Gear Type Rack & pinion, Power assisted
Steering Wheel Turns (Lock-
to-Lock)2.67
Dimensions
Overall Length (mm) 4,540
Overall Width (mm) 1,755
Overall Height (mm) 1,435
Wheel Base (mm) 2,700
Tread (Front / Rear) (mm) 1,500 / 1,530
Ground Clearance (mm) High Road Clearance
Suspension
Front Control-Link McPherson Strut Suspension
Rear Reactive-Link Double Wishbone Suspension
Braking System
Type 4 - Wheel Disc ABS
Electronic Brake force
Distribution (EBD)O
Tires / Wheels
Tire Size 195 / 65 R 15
Wheel Size 15 X 6 JJ
Wheel TypeSteel Wheel with
Full Cover5-Spoke Aluminum Alloy
Others
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Fuel tank (Liters) 50 L
Interior color Grey & Beige Grey & Beige
Steering Wheel 3 - spokes 3 - spokes
Speaker System 4 - speakers 4 - speakers
Seatbelts - Front O Pre-tensioned with EA
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PLACEMENTMarket Review.
Looking at the following figure, it shows the distribution of Honda cars. These cities which have
been pin pointed out are cities. Some of these areas provide 3S dealerships which basically
means sales, service and spare parts on the other hand a few just provide 2S dealership which is
service and spare parts.
Let us list the names of the stores which are available in these areas.
FAISALABAD Faisalabad Honda Classic Lounge
Main Canal Bank Road,
Pak Plaza,Blue Area 1019 Fazal Haq
Rd.
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Faisalabad. Islamabad.
Tel: (041) 731741-3 Tel:(051) 2278553, 2278528
Fax: (041) 731741 Fax:(051) 2278553
Gujranala Karachi
Honda Gujranwala Honda Defence
G T Road, 67/1, Korangi Road,
Gujranwala. Near HINO Circle, Karachi.
Tel:(0431) 893481-2 Tel: (021) 5805291-4
Hadraaba Honda Drive-In
Honda Palace 118-C, Rashid Minhas Road,
Shahbaz Town, Karachi.
Jamshoro Road Tel: (021) 4992832-7
Hyderabad. Fax: (021) 4992823
Tel: (0221) 641178-9 Email: [email protected]
Fax: (0221) 641519
Islamabad Honda Quaideen
Honda Classic 2,33-A-2, PECHS
Plot 179, I 10/3, Industrial Area, Karachi.
Islamabad. Tel: (021) 4556071-3
Tel:(051) 4438801-02 Fax: (021) 4554644
Fax:(051) 2278553 E-mail: [email protected]
Honda Sharah-e-Faisal Honda Fort
13, Banglore Town, Sharah-e-
Faisal, 32 Queen's Road,
Karachi. Lahore.
Tel: (021) 4527070, 454 Tel: (042) 6314162-3
Fax: (042) 6361076
Honda S.I.T.E. Email: [email protected]
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C-1, Main Manghopir Road
S.I.T.E, Karachi. Honda Yakata
Tel: (021) 2577411-2 202-Y Commercial Area,
Fax: (021) 2577412 DHA Lahore.
Email: [email protected] Tel: (042) 2122200-3, 8444491-94
Fax: (042) 5892437
Honda South
1B, Sector 23, Korangi Honda Point
Industrial Area Karachi. Main Defence Road,
Tel: (021) 5050251-4 Lahore Cantt.
Fax: (021) 5064599) 4526758 Tel: (042) 5700994-95
Email: [email protected] Fax: (042) 5700993
Lahore Mir pur
Honda City Sales Honda Canal
75 B, Block L,
13-B, K Block, Shokat Khanum
Bypass
Ferozpur Road Gulberg III
Lahore. Johar Town, Lahore.
Tel: (042) 5881881-3 Tel: (042) 5314168
Fax: (042) 5831147 Fax: (042) 5314169
Honda Empire Sargodha
Mian Muhammad Road, Honda Citrus Field
Quaid-e-Azam Chowk, 7 KM, Lahore Road,
Mirpur Azad Kashmir. Sargodha.
Tel: (058610) 51500,51502-03
Tel: (048)
3226067,3226290,3226089
Fax: (048) 3226196
Multan
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Honda Breeze Sialkot
63, Abdali Road Honda Falcon
Multan. Pakki Koli, Daska Road,
Tel: (061) 588871-3 Sialkot.
Fax: (061) 588874
Email: [email protected]
Peshwar Rawlapindi
Honda North Honda Center
Main University Road, 300- Peshawar Road,
Peshawar. Rawalpindi.
Tel: (091) 854901 Tel: (051) 5564525-28
Fax: (091) 854753 Fax: (051) 5564524
Market Segmentation.
As we are talking about the market of Honda civic, we would also tend to talk about how the
product is segmented and we would be looking at the segmentation as following.
Geographical Segmentation:
If we divide Pakistan into different geographical units we will see that this car is best for smooth
roads like high ways and commercial purpose. However, such cars are not fit for rugged terrains
like we come across in Balochistan or North Pakistan. That is such cars are usually found in
plain area lands not mountainous areas where four wheel drive is needed.
Demographic Segmentation:
This type of car is basically for all gender types as for females the automatic transmission has
been introduced, making it more convenient for them to drive. The company basically targets the
age bracket of 20 – 40 and people who are basically from upper middle income brackets are
targeted. This is basically a family car.
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Psychographic Segmentation:
This car is basically suitable for people who go for comfort with style and class and they are
usually upper class people.
Behavioral Segmentation:
When it comes to buying such cars they will always go for complete car information their
specifications to justify their buying. Apart from that the benefits that the company provides is
comfort level and the luxury along with a smooth drive. The car is not only specified for students
but as well as people from the working class due to its family use.
PRICING
HONDA CIVIC does pricing on the basis of many factors:
1. Exchange rates
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2. Production cost
3. Government regulations
4. Local parts and imported parts bought
5. Dealer commission
6. Competitive pricing
Talking about exchange rates, they effect the final pricing of the car a lot and the same has
happened to Honda civic, due to change in exchange rates and Pakistani money devaluating price
of civic has increased to 16.5 lakhs The dollar price was Rs.70 before and now its Rs.84. Yen
was Rs.0.64 before and now its Rs.0.92 which clearly shows the devaluation of Pakistani
Rupees, thus, adding to the costs as 70% of the parts are imported and 30% are locally made with
the assembly done here. Along with increasing prices of imported parts they have to pay import
taxes and for the exporting company to pay royalties to the importing company.
Talking about government regulations it asks for FED fedral excise duties in which the
government charges the manufactures a percentage on the cost which goes to the former. So
manufacturers feel this FED as a cost they have to pay.
Talking about production costs, the company adds the cost of the processes, labour, services and
all operational work done in making the car. For assembling electricity is required and due to the
ever rising prices of electricity it adds up to the cost of making the product including the
overheads and fuel charges. So production cost increases where production cost is initial cost+
profit margin.
The pricing is done by adding cost of importing the parts from abroad like Thailand and japan
and parts from local suppliers. Quality is Honda civic first priority so importing 70% of the parts
is an essential element in the car production. Miss Maria said “we are highly dependent on
imported parts”. Honda just can not let go off its quality and is ready to pay any extra costs to
keep its standards high.
The dealers of the company, who have been authorized, are not allowed to keep commission
until and unless the company legalizes it. However, there are also unauthorized dealers who
charge a certain percentage on the sale of cars which effects company sales
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Honda intended to have a competitive based pricing for Honda civic when it was launched where
Ms Maria (executive manager of marketing and planning division) said “reborn was priced first
by keeping in mind the competitive prices. But the other factors follow eventually”. However,
the sales of Honda has fallen and to over come it they increased the prices along with the
increasing cost so that they can over come the loss incurred by the company. However, they
could not have a high price change because this change would lead to people shifting their
brands from Honda civic to Toyota Altis.
Even though these factors contribute towards the pricing strategies, consumer income is kept in
mind and the way the product is being placed along with raw materials as key factors that
decides the price. The company doesn’t provide any discounts on Honda Civic and the
authorized dealer margin is added in the final price of the car which is upto,30,000 to 40,000.
PROMOTION
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Advertisement is basically done by any company who wants to promote its services and
products. And the name given to such a process where companies promote and let its potential
customers know of the products outstanding features and qualities.
As we all are familiar with the 4P’s, which consist of
1. Product
2. Price
3. Placement
4. Promotion
We should also know that each P has an important role to play in a company’s making or
breaking. Promotion is of utmost importance in a company’s strategy, and same is the case with
our case. Honda relies heavily on product promotion, done in the right manner because if a
product lacks proper promotion which means that the potential buyers wont have any idea of the
product, leaving the product no better than an alien in the market, which no one knows about,
therefore no one would have the crave to buy it.
There are a lot of contemporary and old styled promotional activities which our company,
Honda, relies on for its product Honda Civic.
Such activities include the following
1. Print Media ( Newspapers, Broachers, Catalogues )
2. Electronic Media ( Internet, Television Broadcasting, Using electronic Billboards set up
on important crossings and buildings)
3. Using an eminent personality to promote your product
4. Ads on the Radio
5. During Movie Intervals
Honda’s marketing managers’ rely heavily on simpler, more effective techniques such as print
media, through newspapers and magazines, and sometimes through electronic media such as
television ads and commercials. The advertising is only done only when the time of the launch is
near, as the product is launched their advertising only goes on for a minimal period of time and
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then they stop doing it, excessively. Also time after time they intend to remind their customers
about Honda, just at Ms Maria says “HONDA CIVIC mostly goes for print media. Giving adds
in newspaper along with the detailed information about the new launch, car, dealers and the
company. They take help of electronic media to like giving advertisements on the most popular
channels. The idea of advertisement for HONDA CIVIC after a certain period of time is like a
‘wake up call’ to let them know that the brand still exists. The lack of regular promotion is due to
the nature of the product. People take time to make decision about buying a car and so everyday
advertisements are not a necessity.”
Customer Retention
After gaining a major chunk of the market share, the company’s next motive is to retain its
customers.
To do so the company must always follow * The Customer is Always Right * policy, and try to
please its customers as much as they could. Because the managers at Honda believe that if they
are not giving their customers the right amount of attention, the customers would always tend to
sway towards what the competitors have to offer, in case of Honda Civic 1.8 Reborn, Toyota
Corolla Altis.
When a customer buys the Honda Civic Reborn, he gets to enjoy not only the pleasure given by
the car but also the after sales services which come free with the car. It is a great peace of mind
to know that no matter what happens, the customer care personnel would take care of it. When
you buy the Civic, along comes a warranty which includes any production damages or defects to
be repaired free of cost, 10,000 km road driving warranty, free periodic tests, free first wash and
polish, free oil change, free diagnostic check of any problems related to the ECU of the car and
the V-TEC system
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COMPANY’S ANALYSIS
Swot analysis
Swot analysis basically deals with internal and external factors of a company and it intends to tell
the company they “Strengths, Weaknesses, Opportunities and Threats”. Where “Strengths and
Weaknesses” are the internal factors and “opportunities and Threats” the external factors.
Strengths are what the company is good at and helps the company in attaining its goals on the
other hand weaknesses are hindrances which tends to stop the company in attaining it goals and
giving an opportunity for its competitors to take advantage in improving their company’s image,
sales. On the other hand opportunities are the chances that the company tends to get for the
advantage of their economy. Threat as the word says it all is basically the problems and issues
that the company might have to face.
STRENGTHS
Honda has high goodwill. No one would say that they don’t know what Honda is. People will
always intend to know and indentify the logo and the name. Thus, showing that the company has
a well known brand image between people. The car (Honda civic) is spacious and comfortable,
where the interior is made in such a way which gives increases the comfort level of the driver
and other passengers. The new style of Honda civic is an added advantage. The car apart from
being comfortable and attractive is better in terms of aerodynamics which results in better fuel
economy. Apart from this the company has used high quality product in their interior products
and have high safety rankings. The company uses the best and up to date technology for the
assembly of its cars. Thus, the car does not have any assembly issue, plus these cars are
environmental friendly where Honda civic falls under Euro 4 cars include include the most strict
standards limiting the permission to pollute.
WEAKNESS
The main weakness of Honda civic is its high price. If we compare the price of Honda civic to
Indian Honda there is a lot of difference. Prices in India tend to be cheaper. Apart from this if we
look at Honda advertisements we will notice that we rarely see advertisements of Honda on
television or newspaper which would tend to be a drawback because time to time advertisement
21
is important. Apart from this when it comes to the exterior body of Honda civic, it isn’t strong,
along with times when the production is not up to the mark where there are paint defects and
times when their abs brakes don’t work. Just like the first batch of the new Honda civic, people
who bought them faced problems during raining seasons as water used to slide through mirrors.
OPPORTUNITY
Honda is look into the industry has many opportunities such as they are already in the car
industry so they can go about expanding their product like through the production of jeeps and
provision for 4 wheel drive cars which would be for rigid terrain. Apart from this they can
modify the car for racing purposes and provide a navigation system for its customers along with
modification of the interior with up to date gadgets and design.
THREATS
As mentioned in the weaknesses of Honda that the prices of Honda are quite high, this would
intend to limit the purchasing power of low income people as they will not be able to afford it.
This would lead to a decrease in the sales of Honda and people with low income would shift their
interest towards its competitors who would cater to their needs. However, there was a time when
such people could lease the cars but due to government strict policies against leasing and the
finishing of leasing creates problems. While we are talking about the government we need to
consider the government’s unstable policies due to political unsuitability. Such as recently the
government asked car companies to decrease their prices by 30 thousand. If the company already
has a low mark up then this would lead to them unable to reach break even. Also if the import
duties are lifted, importing cars would be cheaper as compared to buying local cars. Thus, Honda
civic sales will fall.
Boston consulting group (BCG) method.
Usually companies have business portfolio which is the collection of businesses and products
that make up a company and the process by which the management evaluates the products and
business is known as the portfolio analysis. One of the ways of analyzing is the BCG method
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which analysis the strategic business unit with respect to relative market share and market
growth rate.
Honda civic falls under the category of stars because such products require heavy investment to
finance their market growth. They need continuous investment for keeping their product up to
date due to changes in technology and design.
Competitor’s analysis.
Firstly we need to indentify our competitors. Looking at the overall automobile industry we find
that
Suzuki
Toyota
Mitsubishi
Mercedes
BMW
Basically if we talk generally we can say that competition is based on the following few factor
such as
Profit
Accessible technology
Globalization
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However, we are going to talk about Toyota and Suzuki where Suzuki is the biggest competitor
when it comes to sales and Toyota when it comes to quality.
Lets talk about Suzuki first. Suzuki is basically from Japan and is a low budget car. If we look at
the business portfolio we will be able to see that the products that are under Suzuki are as follows
Bolan
Mehran
Jeep
Vitara
Liana
All these cars if we look at them are cheap as compared to Honda and if we look at their
quality, it is not comparable to the quality which Honda provides. Even though if we look at
the business portfolio that the company has is far much larger then Honda and intends to be
the cash cow in the BCG growth-share matrix.
On the other hand Toyota tends to be comparable as a competitive company when quality
comes in. Toyota. As a competitor Toyota has the following products in their business
portfolio
Camry
Altis
Hilux
Vigo
So these are the competitors of Honda however, as per the interview we took from Ms. Maria the
executive of marketing and planning division of Honda told us that Toyota is giving them a
tough time as a competitor due to its production efficiency.
Questionnaire analysis
We have taken a sample of 15 for our basic questionnaire. We have compared the two questions
here and showed the result in a bar chart which shows that most of the Honda owners lie in the
income bracket of 40 thousand to 60 thousand.
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Here we are looking at the comparison between the questions “If you were given a choice between these two Honda Civic 1.8, Toyota Altis 1.8 which one would you buy?” and “Q3. What do you actually look for in a car?” which shows that all of the Toyota Altis go for luxury and comfort where as in case of Honda civic 3 of them go for its resale value.
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Conclusion
Looking at the conditions of Honda civic we can see that the product is quiet profitable and
stable. However, there is always room for improvement. As we are comparing Honda civic with
Toyota Altis, the company should analyze the weakness of the car and over come its weaknesses,
one of them which is not strong enough exterior. They should work on it along with high prices
that they charge. Even though we came to know that the prices are due to the fact that most of
the parts are imported but still they should be at a reasonable level. On the other hand the
company now should expand its distributions and promote its product. Even though Ms. Maria
said the product doesn’t need much promotion as people intend to take time in thinking,
however, they need to consider that they should also promote the brand itself so that people who
are not such a fan of Honda would create interest in its products. They need to promote that their
cars are environmental friendly. Apart from this, the company should keep on modifying the car
interior and exterior every now and then in such a way which attracts customers.
Thus, to retain market share the company needs to take corrective actions and create good
competition for its product. As the product is at its maturity stage the company needs to bring
changed to keep it going till their sales decline.
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APPENDIX A
Interview
We went to take an interview from , Ms Syeda MARIA kazmi, the executive in marketing and planning division in HONDA CIVIC. She provided us the authentic information on the several questions we asked her along with pricing strategies, product life cycle and SWOT analysis of the company, HONDA CIVIC, for REBORN.
Qs:1 what type of advertisements you prefer and why?
Ans: she answered saying that HONDA CIVIC mostly goes for print media. Giving adds in newspaper along with the detailed information about the new launch, car, dealers and the company. They take help of electronic media to like giving adds on the most watched channels by the population. The idea of advertisement for HONDA CIVIC after a certain period of time is like a ‘wake up call’ as per miss maria, to let them know that the brand still exsists. The lack of regular promotion is due to the nature of the product. People take time to make decision about buying a car and so everyday adds are not a necessity.
Marketing is done even through dealers, lucky draws. Most importantly billboards are used to. They are put on places where the maximum amount of traffic flows so that people and large amount of population passes from an area so that the billboard is a constant reminder.
Q2: what is the average cost of the billboard?
Ans: ‘it depends on the time and place of the year’
Q3: detailed managerial hierarchy?
Ans: HONDA CIVIC has 3 teams: sales and processing, dealership department and branding.
Dealership department indulges in sales and supporting sales. The entire departments inside the company share the same hierachial plan
GM- SENIOR MANAGER-MARKETING MANAGER-DEPUTY MANAGER(two deputy managers)-ASSISTANT MANAGER –EXECUTIVE.( this is the vertical chain of command.
QS:4 Do you produce or just assemble your cars in Pakistan?
Ans:they mostly do the assembling. 30%are the local parts used in the car, where as 70% are imported parts from japan and Thailand. Talking further about reborn, 70% parts are imported from Thailand and japan but seats,tyres are taken from the local market.
Qs:5 are your products environment friendly?
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Ans:’definitely’, as per miss maria. The cars Honda provies, like city ,civic are EURO 4 CARS. Where as the rest competitor cars are euro 2 cars. Euro 4 emissions include the most strict standards limiting the permission to pollute. Our branding includes: style,quality and environment friendly.
QS:6 who are your competitors accrding to your company?
Ans:Suzuki and Toyota Honda. According to the 1800 categories civic is the major player in pkaistan.
QS:7 have your sales decresed? Why? And what are you doing to cover it?
Do you think Toyota is leading the market and giving Honda a tough time?
Ans: Toyota is giving a tough time as a competitor.toyota being an umbrella brad has production efficiency.sales have decreased due to the increase in prices and Pakistani rupee falling down.
PRODUCT LIFE CYCLE:
As per miss maria, she told us that reborn is at the maturity stage with the maximum level of acceptance from the people who are the potential customers. in order to extend the time of this product in maturity, COSMETIC CHANGES are made, that are little changes in the model like the change in the lights, the grills of the car. But this is happening internationally and not in Pakistan.
In Pakistan there is a change in the entire model of the car after 5 to 6 years. With every model change there is an increase in price upto 10% to 20%. There are various reasons for this price change, few being: technological advancements, brings in the need to use new machines, which needs investment and some of the cost is passed on to the customers. Another reason being by focusing customer needs HONDA CIVIC sees the fact that now consumers need CLASS AND QUALITY side by side this generally increases the cost as imported high quality inputs are used. Another reason for price change that the cost for new product launch is covered only on by increasing the price with every new model launched.
SWOT ANALYSIS:
STRENGHTS:
Brand name Efficient technology advancements and cooperation within different company
departments After sales suppport
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WEAKNESSES:
Due to new technological advancements happening all the time the cost of providing it to the customers increase car costs.
Product life cycle is smaller Frequent model changes leave people difficulty in saving. Market size has recently shrunk for automobiles
OPPORTUNITIES: There should be flexible government regulations Weaknesses can be capitalized and worked on by studying competitors
THREATS
Imported cars are threat in the market Strange govt regulation are a threat like govt can make the car price to further
increase
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APPENDIX BHONDA OR TOYOTA?
This is a questionnaire for our project based on HONDA CIVIC.
Q1. If you were given a choice between these two Honda Civic 1.8, Toyota Altis 1.8 which one would you buy?
HONDA CIVIC 1.8 TOYOTA ALTIS 1.8
Q2. Which car is a better value for money?
HONDA CIVIC 1.8 TOYOTA ALTIS 1.8
Q3. What do you actually look for in a car?
Luxury & Comfort Resale
Q4. Which of the two models have better luxury and comfort level as well as a decent resale value?
HONDA CIVIC 1.8 TOYOTA ALTIS 1.8
Q5. Which car is more popular in youth?
HONDA CIVIC 1.8 TOYOTA ALTIS 1.8
Q6. Would the level of advertisement by Honda Civic and Toyota lead you to change your mind in buying one of the options?
YES NO
Q7. Which age bracket do you belong to?
18 - 25 26 - 40 40 - above
Q8. What is your martial status?
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Single Married
Q9. What is your monthly income?
40000 – 60000 60000 – 80000 80000 – 100000 100000 – above
Q10. Your sex?
Male Female
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