HONDA

Company Profile
Atlas Honda Limited Honda Atlas Cars (Pakistan) Limited Honda Atlas Power Product (Pvt.) Limited

Atlas Honda Limited

Joint venture between Atlas Group and Honda Motor Co. Ltd., Japan. Largest selling motorcycles in the country: high quality, reliability and after-sales-service. Mother plant: Sheikhupura, Punjab. Other plants: Karachi, Sindh.

Marketplace
Consumer needs, wants and demands: cheap and easy mode, high mileage. Marketing offers: CD 70, Pridor (CD 100), CG 125, and Deluxe. Value and Satisfaction: high perceived value, Honda customers feel proud

Selecting Customer and Creating Value

Marketing Orientations Production Concept Selling Concept Product Concept Marketing Concept Societal Marketing Concept

Marketing Mix
Product CD 70 Pridor CG 125 Deluxe Place Plants situated in Sheikhupura and Karachi. Largest dealership network Operating in 119 cities of Pakistan

Marketing Mix
Price:
MODEL CD 70 Pridor PRICE Rs.67,500 Rs.83,000

CG 125
Deluxe

Rs.96,500
Rs.116,500

Marketing Mix
Promotion: Mein tay Honda hei lein saa Meetings and buffet dinners for the promotion of dealers In external programs print media and television advertisements are used. Pridor: Park it at the entrance so customers gets a first glance at Pridor. "Facebook" page. Donation: 1% of preceding year's profit before tax each year to an approved charitable institution.

 Vision Statement: Market leader in the motorcycle industry, emerging as a global competitive center of production and exports.
Mission Statement: 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 enjoinment by producing emission friendly green products as a good corporate citizen fulfilling its social responsibilities in all respects.

Partner Relationship Management

Supply Chain Management Suppliers Procurement Port Assembling Warehouse Assembly/ Manufacturing Dealers Customers

Capturing Value from Customers

Satisfied Customers Extended 2 years Warranty

Loyal customers

Marketing Landscape
Challenges: Globalization Imports (China)

Strategic Planning
Goals and Objectives Market To remain market leader in two-wheeler industry. Socio-Political Situation To operate in a stable market with least volatility and low occurrence of unforeseen variables. Technology To produce the best and highest quality product that meets international standards of fuel efficiency, comfort and reliability.

Strategic Planning
Goals and Objectives Operations To ensure continuity of operations without any disruptions in supply and minimizing idle time. Human Resource To recruit the best available people and ensure their adequate training in order to maintain quality in work. Health and Safety To ensure health and safety of the employees in workplace.

Strategic Planning
Goals and Objectives Environment To ensure environment friendly product and production processes. Finance To maintain a strong financial position of the Company and produce financial performance which is reflective of Company's scale of operations, availability of resources and efforts of employees.

Business Portfolio
Three strategic business units: Honda Atlas Power Product (Pvt.) Limited Honda Atlas Cars (Pakistan) Limited Atlas Honda Limited Honda Atlas Cars (Pakistan) Limited: Honda Civic, Honda City, Honda Accord, and CR-V

Business Portfolio
Atlas Honda Limited: CD 70, CD 100 (Pridor), CG 125 and Deluxe. Honda Atlas Power Product (Pvt.) Limited: Generators, engines, water pumps and brush cutters

BCG growth-share matrix

Product/market expansion grid

Market Penetration Market Development: Bangladesh, Afghanistan & Iran. Potential export market Central Asia, and Africa.

SWOT ANALYSIS
Strengths Quality Qualified and well-trained Employees SAP system software Environment Management System Advanced Technology Promoted corporate governance Strong distribution network Brand Image People Trusted Product Variety of products

SWOT ANALYSIS
Weaknesses Price is higher than other companies in competition in the market High costs Complex structure Expenses related to the post-retirement benefits for employees Lack of new model: there has not been a significant change in the variability of the product design

SWOT ANALYSIS
Opportunities Growing automotive market Technology upgrading Development of new areas or markets creates more opportunities for the company. Favorable government policies Economy expanding (increasing rural to urban immigration)

SWOT ANALYSIS
Threats Rising inflation Rising oil prices Bad infrastructure The shortages of power may cause disruption in operations. Increase in material prices may increase input costs. Devaluation of Pakistani Rupee Growing competition in the automotive market Rising tax rates Changes in government policies

Marketing Environment
Microenvironment: The company

Marketing Environment
Microenvironment Marketing Intermediaries Customers Competitors Publics Macro-environment Demographic Economic Technological Political and Social Cultural

Market Segmentation
Demographic segmentation: Income Occupation Psychographic segmentation: Lifestyle Social Class Upper-middle class Lower-middle class

Target Market
Differentiated or segmented marketing strategy Middle class comprising students, professionals and employees. Rural population: Punjabi slogan "Mai te Honda hi laisan Positioning The market leader The positioning strategy based on the different product attributes and the brand image More benefits for more prices

Positioning Statement
Our slogan For Honda to remain Honda, and for everyone to realize their aspirations, we must believe in "The Power of Dreams."

Type of Consumer Product Specialty Product Decisions Individual Product Product Line Line Stretching (CD 70, CD 125, Pridor, Deluxe) Line Filling (Colors) Product Mix Width (Cars, Motorcycles, Power Products) Depth (Accord, Civic, CD70, CD125, Generators)

Product Life Cycle

Maturity stage : peak sales and high profits. Declining competition Brand differences and benefits Distribution of the product is intensive

Factors affecting price

1. 2. 3. 4. 5. 6. 7. 8. 9. Costs The nature of market and demand Needs and wants of the customer base Industry standards Experience Business strategy Service Competitors strategies Customers perception

Factors affecting price

10. Marketing mix, strategies, objectives 11. Consumer perception of price and value 12. Economic conditions

Pricing
Value based pricing: Attaching value-added feature and services to differentiate a company's offers and charging higher prices Strong brand image

Product Mix Pricing Strategy

Product Line Pricing Price-Adjustment Strategies Price Changes

Marketing channels
Number of channels 2 Channel behavior Conventional Distribution system Marketing Logistics Major Logistic Functions

Effective Communication
"The power of Dreams "Ek litre mein 70km Personal as well as non-personal communication Word-of-mouth Pakistan Auto parts Show 2011-12

Promotion Mix Strategies

Push strategy: Forced dealers to keep a Pridor (CD-100) bike Package to the dealers that for every certain amount of CD 70 or CG 125 sold, the dealers had to take a certain amount of the new CD 100 to sell to customers

References
Atlas Honda. (2012, 11). Company. Retrieved 11 2012, from Atlas Honda: http://www.atlashonda.com.pk Honda. (2012). Annual Report. Atlas Honda. Pakistan Automotive Manufacturers Association. (2012, 11). Historical data. Retrieved 11 2012, from Pakistan Automotive Manufacturers Association: http://www.pama.org.pk

Thank you