NIDA FINAL PROJECT

TABLE OF CONTENT

DEDICATION………………………………………………………….2 INTRODUCTION…………………………………………………….4

SLOGAN………………………………………………………………5LOGO………………………………………………………………….5COMPANY INFORMATION……………………………………….6ABOUT HONDA MOTORS…………………………………………7HISTORY OF HONDA………………………………………………8HONDA AS A RESPONSIBLE MEMBER OF SOCIETY………11BUSINESS PRINCIPLES…………………………………………..12HONDA ATLAS CARS…………………………………………….12OPERATING PRINCIPLES……………………………………….14IMPORTANCE OF CIVIC TO HONDA SUCCESS……………..15MARKETING STRATIGIES………………………………………16MARKETING POSITIONING…………………………………….174P’s……………………………………………………………………18SITUATIONAL ANAYLSIS…………………………………….....22i) INTERNAL ANAYLSIS………………………………………….22

SWOT analysis………………………………………………..22ii) EXTERNAL ANAYLSIS………………………………………..26

PEST analysis…………………………………………………26COMPITETOR ANAYLSIS…………………………………….....28RESOURCE IDENTIFICATION………………………………….30CUSTOMER ANAYLSIS…………………………………………..31HONDA INTERIOR DESIGN……………………………………..32HONDA ENVIRONMENT STATEMENT………………………..33PROBLEM STATEMENT………………………………………….34RECOMMENDATION……………………………………………..35SLIDES……………………………………………………………….36QUESTIONNAIREREFERENCES

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DEDICATION

We want to dedicate this project to our respected teacher Ms.SAIMA NASEER for her grand cooperation and to our beloved parents; this project could not be possible without their help.

“Power Of Dreams” 2

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SLOGAN OF HONDA CIVIC

“The Power of Dreams”

LOGO OF HONDA CIVIC


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HISTORY

In October 1946, Soichiro Honda established the Honda Technical Research Institute in Hamamatsu, Japan, to develop and produce small 2-cycle motorbike engines. Two years later, Honda Motor Company, Ltd. was born, and in 1959 Honda opened its first storefront in Los Angeles with six industrious employees.


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History of Honda industry in Pakistan

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 groundbreaking 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. President of Pakistan, Sardar Farooq Ahmad Khan Leghari, did official inauguration. 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 till March31, 2005, the company has produced and sold over 77,500 cars. All dealerships are constructed in accordance with


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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 they are offering 8 different models of Honda CIVIC and CITY cars in wide range of colors with unique technological and other features.

SHOW ROOMS OF HONDA CIVIC COMPANY

IN PAKISTAN


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Honda Civic is one of the most selling brands by Honda Company based in Japan and America. Honda’s network in Pakistan consists of Atlas Honda limited. The distribution network in Pakistan has been established through different dealer all over the Pakistan. Honda Atlas car Pakistan limited started its production in 1994 and engaged in marketing through its distribution channel all over the Pakistan. Showrooms of its precious products are available in all big cities. Since in Pakistan the demand for cars has increased during past few years Honda has also decided to double its production in coming years.

FAISLABAD Honda Faisalabad

GUJRANWALA Honda Gujranwala

HYDERABAD Honda Palace

ISLAMABAD Honda Classic

Honda Classic Lounge

Honda Defence

KARACHI

Honda Drive-In

Honda Quaideen

Honda Sharah-e-Faisal

.


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Honda S.I.T.E.

Honda South

Honda City Sales

LAHORE

Honda Fort

Honda Fort Lounge

MIRPUR A.K Honda Empire

MULTAN Honda Breeze

PESHAWAR Honda North

SIALKOT Honda Falcon


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COMPANY INFORMATION

INTRODUCTION OF AUTO MARKET

The auto market is one of the largest segments in world trade. The annual size ofAutomotive export trade in the world has grown to a massive level of over US$ 600 billion, which accounts for about 10 per cent of the world export. Changing models, improving fuel efficiency, cutting costs and enhancing user comfort without compromising quality are the most important challenges of the auto industry in a fast globalizing world. Hence there is a need for exploring the industrial complementarities in the region for better quality, favorable costs, and fuel efficiency and attractive designs. Therefore, the requirement of information exchange in the region is much more pronounced now than ever before for keeping the auto industry afloat and competitive. The objective should not be only to understand each other’s comparative advantage but also to explore mutual complementarities as well as to build an early warning system on the trends in industry and changes in user preference to brace for the challenges confronting the auto industry. Mutual consultation among the countries of the region therefore assumes the proportion of an abiding imperative for regional capacity-building and preparing the countries to meet the requirements of the new economy through research, advisory services, information dissemination and exchange of country experiences, besides joint ventures and technology tie-ups.

ABOUT HONDA MOTORSHonda Motor Co., Ltd. is one of the leading manufacturers of automobiles and power products and the largest manufacture of motorcycles in the world. Honda has always sought to provide genuine satisfaction to people worldwide. The result is more than 120 manufacturing facilities in 30 countries worldwide, producing a wide range of products, including motorcycles, ATVs, generators, marine engines, lawn and garden equipment


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and automobiles that bring the company into contact with over 19 million customers annually.

The Group's principal activities are to manufacture automobiles, motorcycles and power products. The Group develops and manufactures a wide variety of products, ranging from small general-purpose engines to specialty sports cars that incorporate their internal combustion engine technology. The Group also provides financing for the sale of its motorcycles, automobiles and power products. The Group has got 319 subsidiaries and affiliates. The Group operates in the following four segments: Motorcycle business, Automobile business, financial services and Power product and other businesses. The Group's major trademarks includes HONDA, ACURA, ACCORD, CIVIC, FIT, ODYSSEY, CR-V, PILOT, MOBILIO, ELEMENT, STEP WGN, MDX, STREAM, LIFE, ACTY, VAMOS, THAT'S, CUB, WAVE and GOLD WING. The Group has subsidiaries throughout the world including North America, Pakistan, the Philippines, India, South America and Europe .

Chairman Yoshihide Munekuni

President Takeo Fukui

Sector Automotive

Industries Aerospace; Automotive

Established 1948

Employees 27,187

Homepage world.honda.com

Honda to Double Automobile Production Capacity in Pakistan

Tokyo, Japan, Sept 5, 2005- Honda Atlas Cars (Pakistan) Ltd. (HACPL), Honda's automobile production and sales joint venture in Pakistan, today held a Manufacturing Capacity Expansion ceremony of its auto plant. Dignitaries and guests including Pakistan Prime Minister Shaukat Aziz, Federal Minister for Industries and Production and Special Initiatives Jahangir Khan Tareen, and high-ranking state government officials attended ceremony.


http://world.honda.com/

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To meet ever-increasing demand for automobiles in Pakistan, where economic growth continues, HACPL will increase production capacity by expanding plant facilities and upgrading welding and painting equipment. The annual production capacity will be doubled from the current 25,000 units to 50,000 units by the end of 2006. Total investment for this expansion is expected to be approximately 1.67 billion rupee (approximately 2.9 billion yen/1 rupee = 1.74yen).

"Honda has been building a long-term partnership with Pakistan ever since we began motorcycle business here in 1960s, and Honda would like to continue making a contribution to the economy and society of Pakistan," said Mr. Satoshi Toshida, chief operating officer of Asia/Oceania Regional Operations for Honda Motor Co., Ltd.

MANAGEMENT POLICY1) Proceed always with ambition and youthfulness.2) Respect sound theory, develop fresh ideas, and make the most effective use of time.3) Enjoy your work and encourage open communications.4) Strive constantly for a harmonious flow of work.5) Be ever mindful of the value of research and endeavor.


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PRIORITY STANDARDS OF CONDUCT

1) Safety: There can be no production without safety.2) Quality: To achieve the No.1 customer satisfaction, we are dedicated to supply the prestigious products of Honda’s highest quality, through our smart team work.3) Productivity: With safety and quality each of us will strive to excel the performance in all fields of our activities i.e. Production Divisions, Marketing & Planning, After Sales Service, Finance, Import, Purchase & Logistics and Human Resource & Administration etc.

QUALITY POLICYTo achieve the No.1 customer satisfaction, we are dedicated to supplying the prestigious products of Honda’s highest quality through our smart team work defined by the regulatory parameters. Continually improving our strategies and goals for better performance.

OPERATING PRINCIPLES

1) Always keep the deadline.2) Never make excuses.3) Teamwork.


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SWOT ANALYSIS

SWOT analysis is Strengths, Weaknesses, Opportunity and Threats.


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Strengths

Strengths of HONDA CIVIC are;

Exotic interior

Unique aerodynamic shape

Developed after continuous R&D with the latest technology

Various models targeting various customer segments.

Honda FCX is the first fuel cell car in the world

Fuel efficient

Revolutionary engine technology

Comfortable

Road grip

o Honda Civic Sedan


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o Honda Civic Hybrid Sedan

o Honda Civic Coupe

o Honda Civic Si Coupe


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o

o Honda Civic NX NGV titles Cleanest car on the earth

Weaknesses

Use of Cutting edge technology gives rise to problems

Interior design

Civic models cause confusion for the customer


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Opportunities

There is an upsurge of interest in environmentally friendly vehicles, and Honda’s

R&D focus means that it is well poised to capitalize on its expertise in this

industry. Honda Civic has various models that differ in emission ratings, Honda

civic GX NGV is termed as the Cleanest car on Earth as far as internal

combustion engines are concerned

In addition, Honda is a major player in the emerging markets like Pakistan.

Car leasing in Pakistan is an opportunity for Honda civic to become more

widespread.

Various civic models that target different customer segments.

Threats

Rising oil and raw material prices in the world market can lead to decreased

demand for automotive vehicles. In addition, increased costs have led to

decreased consumer spending and the competitive rivalry is very high in this

industry.


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HONDAS INTERIOR DESIGN

Trend should confirm to climate, weather end condition Honda pragmatically selected to stay clean and spotless for years.


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Civic Sophistication. Feel the difference!!

Generous amount of leg room, courtesy of Honda’s flat rear floor

Overall the interior layout is very smart and refreshingly different. The exterior has the same good looks overall with the attention to detail styling features such as the hidden rear door handles, triangular exhaust tailpipes and the self cleaning rear tailgate window with built in mid height spoiler.

The handling is sharp too. A torsionally stiff bodyshell with compliant suspension and a fast response steering system gives the Civic pin-point accuracy in handling, it is such a more pleasing and rewarding car to drive than the current model.

PROBLEM STATEMENT


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The problem that Honda faces right now, which could hurt the company’s overall profits, is that consumers are not well educated and informed about the benefits that this hybrid technology can offer. In other words, the positive features of a HEV have not been marketed well enough to change buyers’ outlook on transportation options and train them to look beyond the price premium (of up to $5,000) and buy a hybrid car. According to a large-sample survey of recent car buyers, the top three factors that were identified as being most important when purchasing a car were:

1. Reliability2. Value for the money3. Well-made vehicle.

Similarly, auto dealers stated that buyers routinely ranked these three important factors when shopping for a car.

1. Functionality2. Safety3. Price

Factors, such as “gas mileage”, “technical innovation” and “environmentally friendly” were also listed, but were all ranked well below the top five. Therefore, Honda is faced with the obstacle of teaching buyers to consider other aspects when purchasing its new Civic hybrid model.

COMPETITOR ANALYSIS

HONDA CIVIC

VS

TOYOTA COROLLA


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Thanks to its frugal and clean engines, spunky performance and reputation for excellent reliability and durability, the Honda Civic has been a consistent benchmark for the economy car class ever since its introduction in 1973. In reviews that compare the Toyota corolla and Honda Civic, the Honda civic usually gets the nod. We can say that the Honda civic is more comfortable, and more fun to drive than the Toyota corolla. One member of The Car Family says that the Toyota "looked like every other car," while the civic was more distinctive.

Honda has completely redesigned the Civic for 2006. Highlights include a more powerful and fuel-efficient 1.8-liter engine, new exterior styling, an advanced interior design and more premium features. The company has also improved the gas-electric IMA system for the Civic Hybrid and restored the Civic Si trim's potency with a 197-hp engine and a sportier coupe body style.

Most experts don’t like the Honda Civics’ hybrid technology as much as the more sophisticated system in the Toyota corolla. Many people says that, "we think Honda would have done better by starting with a blank slate," referring to the addition of an electric motor to the existing gas engine. Although the Honda Civic hybrid does get better fuel economy than the standard Civic, it is criticized for being slow and underpowered. The Civics’ gas engine doesn't produce enough torque at low engine speeds, even with the assistance of the electric motor.

Although the Civics’ zero to sixty time of 12.1 seconds does not compare favorably to the Toyota corolla (which can accelerate to sixty miles per hour in 10.3 seconds), but it drives well on the highway at speed, and that's where it gets the best gas mileage.

Since the Honda Civic is a 4-door sedan, with a trunk compromised by storage of the battery pack, cargo capacity is another point where the Civic Hybrid does not compare favorably to the corolla. Trunk capacity of the Civic Hybrid is about 10.0 cubic-feet vs. the 16.1 cubic-foot cargo area of the hatchback corolla. Honda Civic has 2.5-inches more leg room in the back seat area than the Toyota corolla

While Toyota claims its Corolla sedan has been designed to attract younger buyers, it actually looks like a shrunken Camry. Available as a base CE, luxury LE or somewhat sporty S, the new Corolla rides on a 102.4-inch wheelbase, which is more than five inches longer than the Corolla it replaces, and just 0.7 inch shorter than the current Honda Civic sedan. But 178.3 inches in overall length, it's 3.7 inches longer than the Civic. In fact, this new Corolla has exactly the same wheelbase as the original 1983 Camry and stretches out 2.7 inches longer than that car. The engine is an evolutionary development of the all-aluminum 1.8-liter, DOHC, 16-valve engine from the previous Corolla and is now rated at 130 horsepower.

In case of Honda all DX, LX and EX models are powered by a SOHC 1.8-liter, inline four-cylinder engine with Honda's i-VTEC system. It makes 140 hp and 128 lb-ft of torque.


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REFERENCES

Websites:

www.hondacivic.comwww.google.comwww.hondaworld.comwww.cars.comwww.findfast.comwww.honda.com.pk

Market Research:


http://www.honda.com.pk/

http://www.findfast.com/

http://www.cars.com/

http://www.hondawold.com/

http://www.google.com/

http://www.hondacivic.com/

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Visited Honda showroom


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NIDA FINAL PROJECT