honda pakistan

Principles of marketing

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University of Lahore

Department of Computer science

&Information Technology

Principles of Marketing

Term project: Honda

Submitted To: Mr. Hashim Awais Butt


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Acknowledgment

In the Name of Allah, the Most Beneficent and Merciful

We are highly grateful to our course instructor Mr Hashim Awais who

taught us with great affection and whose supervision enabled us to

complete our Project. We hope this Project will fulfill the requirements

of our teacher.

UMAR IKRAM MIT01103015

M WASEEM ISHAQ MIT01103001


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Contents

Acknowledgement-----------------------------------------------------2

History------------------------------------------------------------------4

Brand--------------------------------------------------------------------5

Honda’s mission statement------------------------------------------6

Products and services------------------------------------------------6

Honda Competitors---------------------------------------------------9

Strategic goals--------------------------------------------------------10

o Official goals---------------------------------------------10

o Operative goals------------------------------------------11

Vision------------------------------------------------------------------11

Portfolio Analysis----------------------------------------------------11

Human Resource Policies-------------------------------------------14

Organizational Structure-------------------------------------------15

Technology------------------------------------------------------------17

Dealer’s network-----------------------------------------------------22

Ethical Values--------------------------------------------------------23

Environment----------------------------------------------------------24

Culture----------------------------------------------------------------25

Conclusion------------------------------------------------------------26


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HISTORY

Honda Motor Company grows a short time later to be the world's largest

manufacturer of motorcycles by 1964.

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.

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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Brand

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.

Honda’s driving force

The expectations and appreciation of people around the world for our dreams. People see

Honda as pursuing its dreams and always remaining a step ahead of the world. This image and

the people’s appreciation of our outlook will continue to be the driving force of the Honda brand.

Honda’s Goal in Branding

To create a brand that is supported by people’s expectations and appreciation.

Global brand slogan

Honda’s slogan is

“The power of dreams”

Honda has never used its slogan to sell its products, but it was MR Honda’s belief that well built

products sell themselves.

http://en.wikipedia.org/wiki/File:Honda.svg


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Honda’s Mission statement

We see the “power of dreams” as the way of thinking that guides us and pushes us

forward. The strength of our company comes from this philosophy which is based on the

visionary principles of our founder Soichiro Honda. We see the world not as it is,but as it could

be. We see the world through the eyes of dreamers, because we are a company founded by the

dreamer, and we are a company built on dreams.

We see the pursuit of impossible dreams as an empowering force, capable of producing

revolutionary ideas. Dreams inspire us to create innovative products that enhance human

mobility and benefit society. Honda encourages all of its associates to pursue their dreams. And

it’s our mission to share these dreams with others and to make them a reality.

Products and services

Honda is one of the best companies in the world. In Pakistan Honda is contributing a lot towards

welfare of people. Honda has various products and special services for its customers. Honda is

manufacturing following products:

Automobiles

o Accord

o Civic

o City and etc

Motorcycles

Power equipments

Water pumps

Power engines

Here we are discussing only automobiles that are Honda atlas. The company has provided many

comforts and specifications in its cars. Honda is offering many different models of Honda cars.


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o Automobiles

Accord

Accord is a graceful car with a comfortable driving with various and unique specifications .

A bold exterior presence with a luxury air, yet a sporty youthful feeling. An expansive upper-

class cabin with comfortable travel space for five adults and panoramic visibility.it has the

best driving force and powerful expansion. Accord represents a distinct status upgrade for

the sedan. A true prestige vehicle, it is designed for a sophisticated and dynamic drive. The

Accord doesn't yell, it speaks with quiet authority.

Civic:

In Pakistan the bestselling car is Honda civic. It is best among mediocre and almost 65 % of

the people prefer this car over others. Its driving is too soft with best expansion and less

consumption of fuel due to effective engine and central control system. The air flows


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smoothly over the front under spoiler and angled windshield to the sharply cutoff rear; it

passed the sides’ undisturbed thanks to reduced wheel arch clearance: and it streams beneath

the chassis with minimal turbulence from the smoother and flattened under panels.

City:

It is the most sensitive car among other models of Honda with a stylish and attractive body. It

is the first euro 3 complaint car in Pakistan. Hondas affirmative answer is the revolutionary

new city.

The other products of Honda include:

o Motorcycles:

Honda motorcycles are the no#1 choice among people of Pakistan. 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.

o Honda power equipments:

Honda power equipments offers a complete line of generators for

commercial and consumer applications. Compact, fuel-efficient Honda

generator models provide smooth, clean power for recreation, construction,

rental, emergency and home use. All Honda Generators meet or exceed EPA

(Environmental Protection Agency) emission standards.

o Water pumps:


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Honda water pumps are known for their durable construction, quality

engines and easy portability. These features apply to all categories of pumps that

are offered by Honda.

o Power engines:

Honda is the world’s largest manufacturer of engines and has

earned its reputation for unsurpassed quality, performance and

reliability.

Honda competitors

Honda is one of the best companies of automobiles among various challenging

companies. In Pakistan the competitors of Honda are:

Toyota

Suzuki and etc

Toyota stresses on increasing the sales volume and brand name image.


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Suzuki stresses on price.

Honda always stresses on dreams so there is a war between sales, prices and

dreams.

Goals and strategies

o Official goals

Customers

Our customers are the reason and the source of our business. It is our joint aim with

our dealers to ensure that our customers enjoy the highest level of satisfaction from use of

Honda Motorcycles.

Quality

To ensure that our products and services meet the set standards of excellence.

Local Manufacturing

To be the industry leader in indigenization of motorcycles parts.

Technology

To develop and maintain distinct business advantages through continuous induction of

improved hard and soft technologies.

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.

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.

Corporate Citizens


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To comply with all government laws and regulation, to maintain high standard of ethics

in all operations and to act as a responsible members of the community.

o Operative goals:

1. To maintain the repute of Honda in the market.

2. To introduce latest safety tools in car industry.

3. To introduce new design including exterior and interior of automobiles.

4. To create fully automatic function replacing manual function.

5. To Increase the profit of current year as compared to last year.

6. To protect environment by introducing smokeless engines.

Vision

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.

Portfolio Analysis

BCG matrix

SWOT analysis

Strategic business unit

Automobiles

Motor cycles

Generators


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Water pumps

Jet engines

o BOSTONS’ CONSULTANT GROUP MATRIX

Relative Market Share

(Cash Generation)

High Low

STARS

AUTOMOBILES

QUESTION MARKS

JET

ENGINES

CASH COWS

GENERATORS

BIKES

DOGS


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High

Market growth

Rate

Low

o SWOT Analysis

Strengths

Brand name image

Smoother drive as compared to competitors

Efficient performance

Quality- ISO certification

WATER PUMPS


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Highly loyal ,committed ,motivated employees

Hardworking ,experienced and qualified staff

Bonuses and reward system for employees

Technology

Stay close to customers

Understand their needs

Exceed their expectations

Weaknesses

Honda in Pakistan has lower sales value than Suzuki and Toyota

Its distribution centers are less

People of lower class are because of its image as high status car

Honda’s are expensive to buy and maintain than its counterpart rivals

It faces a long road in gaining the interest and making ways to remove the

image that Honda’s are unreliable cars

Opportunities

Growing motor cycle market

Customers realizing quality matters, as problems are already coping up in

new entrants models

Initiatives and proposals in process for coping with increased demand of

bikes

Newer segments introduced with entry of new models ,design which still

have huge potential for growth

Karachi, a segment which has tremendous potential for growth and

profitability.

Threats

Crucial economic conditions of Pakistan can lead to the decreased sale

WTO(world trade order) opening local market for global competition

Competitors launching newer model with stress on reduced price for our

price-sensitive economy proving serious threats in near future

The biggest threat of Honda is Toyota

Honda rivalry is becoming more intense by BMW & Chevrolet which are

opening up industries


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HUMAN RESOURCE POLICIES

Human Resource policy is to hire young, fresh energetic and active associates to meet the

existing and future workforce requirements and providing its associates maximum opportunities

for internal mobility through personal training and development to enable them to take higher

positions. Human Resource Division has to have succession plan for each key job/area to make

sure the continuity of operations in the relevant division and to fill the temporary/ permanent

vacancy.

o Employer characteristics

1. There are 800 employees in this organization.

2. There are 20 female performing in management.

3. In this way the male workers Are 96%, while 4 % are female.

4. The minimum education required for managerial post is bachelor in

Management & so on, while in production related diploma holders and

specialized people are preferred. In Production

5. The Maximum Employer belongs to 25-35 age, while in Managerial staff max

people are of 35+ ages.

Organizational Structure

Mechanistic and organic organizations are two organizational decision designs.

Is Honda mechanistic or organic?

Its decision making style is mechanistic.

o Structural dimensions

Formalization

Centralization

Specialization


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Employee empowerment

Narrow span of control

Formalization

Honda Company is formalized but in some cases its level of formalization is normal.

There are clear-cut rules for the employees, detailed description and information is available and

manuals are also given to employees in which rules and regulations are clearly defined.

Employees have no freedom to make decisions. But employees can give opinions and then up to

the management.

Centralization

Honda Company is a little bit low in centralization. Decisions are made by upper level

management but the lower level employees can give their opinions to their subordinates and

managers.

Specialization

Honda Company is highly specialized because all the work is divided into particular

specialized employees. There is a visible division of jobs.

Employee empowerment

In Honda Company employee empowerment is low. Somehow employees have a little

authority of giving opinions.

Span of control

Span of control is low in Honda worldwide. Specific number of employees works under

one supervisor. Wider span is effective and efficient in terms of cost but efficiency may suffer.


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TECHNOLOGY

Honda believes that the engine plays an all-important role, even in hybrid power plants.

A variety of hybrid systems are in use in automobiles today. Honda’s lightweight and

simple design features a parallel system in which the motor assists the engine as required.

Since in a parallel system the engine serves as the main power source, Honda has further refined

the engine, developing a new i-VTEC engine around the core of its original valve-control

technology. In addition to achieving both powerful torque and high fuel economy, the new

engine optimizes efficiency with such innovations as deactivating all cylinders during

deceleration for improved regenerative braking. These results in outstanding environmental

performance combined with impressive acceleration.

Motor-alone and cylinder-Idle modes provide improved fuel efficiency and increased

driving pleasure.

The electric motor provides ample power to allow low-speed cruising under motor power alone.

Moreover, The i-VTEC engine controls valve operation to permit deactivating of all four

cylinders, for improved regenerative braking efficiency during deceleration.

Vehicle stationary

Idle stop


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Startup and acceleration

Motor assist

Low-speed cruising/gentle acceleration

All 4 cylinders deactivated, the vehicle is powered by the motor alone

High-speed cruising

Vehicle powered by engine alone


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Rapid acceleration

Motor assist

Deceleration

All 4 cylinders are deactivated and energy is recovered through regenerative braking

UPDOWN

Slim and compact, the motor of the Honda Hybrid System is no larger than the flywheel of

a conventional engine.

In a conventional car there is a flywheel between the engine and the transmission, serving to

smooth out fluctuations in engine torque for smooth engine operation. The electric motor in the

Honda Hybrid System is slim and compact enough to fit into the space usually taken up by the

flywheel. And the rotor in the electric motor serves as the flywheel. This is why the Honda

Hybrid System fits in to existing vehicles as is. Honda is hard at work on further hybrid

technology development to make hybrid cars even more a part of our lives.

http://world.honda.com/automobile-technology/IMA/detail/#n1



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UP

o Hybrid Technology

A hybrid vehicle is an automobile powered by an engine assisted by an electric motor.

UP

DOWN

In a Hybrid vehicle, the electric motor assists the engine to help reduce fuel consumption in

standing starts and accelerations.

This means that compared to a regular car of the same size, a hybrid is cheaper to run.

Furthermore, electric motors deliver maximum torque from zero rpm for powerful, exhilarating

standing starts and added power for acceleration.

Combining fuel efficiency, and driving performance with environmental performance through

reduced fuel consumption and reduced CO2 emissions: that is what hybrid vehicles are all about.

Honda chose the simple parallel hybrid design in which the engine is the main power

source.


http://world.honda.com/automobile-technology/IMA/#n1

http://world.honda.com/automobile-technology/IMA/#n2


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Since the parallel hybrid design is simpler, it can be made lighter.

Lower weight in turn helps improve vehicle performance and fuel efficiency.

Since the engine serves as the main power source, engine power and electric motor power can be

transmitted to the wheels directly for a sportier, more enjoyable driving experience.


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DEALERS’ NETWORK


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ETHICAL VALUES

Since recently the organization’s major ethical focus is on maintaining a global viewpoint

i.e Honda is delicated to supplying products of the highest quality yet at a reasonable

price for worldwide customer satisfaction.To achieve the No.1 customer satisfaction, HONDA

is trying to supplying the prestigious products of highest quality through smart team work

defined by the regulatory parameters. Continually improving strategies and goals for better

performance. Honda Atlas Cars (Pakistan) Limited, being responsible member of the society

considers the preservation of the global environment as a crucial concern. The change that the

organization is trying to brought is:

1) Recognizing the impacts of the significant aspects on the environment resulting

from activities, products and services.

2) Formulating objectives and targets to control the effects of activities on local

environment as for as technically feasible.

3) Trying to operate in compliance with relevant environmental laws, regulations and

other requirements that apply to our activities.

4) Creating environment friendly attitude among associates.

5) Totally committed to continual improvement of the environmental performance and

reviewing the environmental management system to ensure its suitability, adequacy

and effectiveness.


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ENVIRONMENT

Honda has always targeted mass-market models in order to have the greatest impact on

clean air and fuel economy. To this end, we work to improve existing technologies while using

The Power of Dreams philosophy to envision and develop the vehicles of the future.

We believe it is important to invest in the continued advancement of internal combustion engine

technology. Honda has introduced a new generation of gasoline engines around the world that

provide extremely low emission levels and increased fuel efficiency while still improving driving

performance.

Further in pursuit of our goal to improve energy efficiency, we have developed gas-electric

hybrid vehicles that achieve ultra-high fuel economy. This includes the Civic Hybrid, the first

mass-market car with hybrid power.

Developing vehicles that use sustainable energy sources is perhaps the ultimate direction.

Hydrogen-powered fuel cell vehicles have great potential for the future. Honda has developed

the first fuel cell electric vehicle in the world to be certified by both the U.S. EPA and the state

of California.

Honda is working to further develop its technology to reconcile the issues of global climate

change and growing demand for mobility, aiming to manufacture products with the lowest in-use

CO2 emissions.

Honda continues to prioritize cleaner exhaust emissions from gasoline vehicles, working to

reduce the levels of Carbon monoxide (CO), Hydrocarbons (HC) and Nitrogen Oxides (NOx)

contained in exhaust emissions.


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CULTURE

HONDA Company has an Adaptability Culture, with flexibility the need of the organization

and strategic focus being external. The organization has a clear vision, with the goal of increasing

growth, profitability, and market share. The employees are paid for performance. The individual

employees are made responsible for contributing in gaining the organization's goal, and in return they

are rewarded with incentives thus keeping the employees motivated. The organization has Award

Functions, as a part of the organization's culture.

o MOTIVATING EMPLOYEES

At Honda we believe that a skilled, motivated and diversified workforce is the key

to success in today's global market. The Power of Dreams is alive at Honda. Our belief is

that the best people produce the best products. That's why Honda is constantly on the

lookout for bright, ambitious team players who have a strong commitment to improving

society, the environment, even themselves.

Honda offers exciting and challenging careers with competitive pay, excellent

benefits and exceptional advancement opportunities. With our international presence in

almost 200 countries and continued success within Pakistan market, a career at Honda

Atlas Cars can be both rewarding and stimulating


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Conclusion

HONDA Company has an adaptability culture, with flexibility the need of the organization

and strategic focus being external.

The organization has a clear vision, with the goal of increasing growth, profitability, and

market share. Since recently the organization’s major ethical focus is on maintaining a global

viewpoint i.e Honda is delicate to supplying products of the highest quality yet at a reasonable

price for worldwide customers sati Human Resource policy is to hire young, fresh energetic and

active associates to meet the existing and future workforce requirements and providing its

associates maximum opportunities for internal mobility through personal training and

development to enable them to take higher positions faction. To develop and maintain distinct

business advantages through continuous induction of improved hard and soft technologies.

Human Resource policy is to hire young, fresh energetic and active associates to meet the

existing and future workforce requirements and providing its associates maximum opportunities

for internal mobility through personal training and development to enable them to take higher

positions.

honda pakistan

Engineering

history honda motor

honda world

honda competitors

president of pakistan

dealerships network

official goals

major cities of pakistan

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