BRAND AUDIT

Group Members: Irshad Basra

Hafeez ur Rehman

Nadeem Sarwar

Muhammad Furqan

Muhammad Waqas

Class: MMKT (2015-2017)

Date: 02-08-2017

Submitted to: Sir Rashid jahangiri

Company Description

Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company
Limited Japan, and the Atlas Group of Companies, Pakistan. The HACPL was established on
November 04, 1992 and joint venture agreement was signed on August 05, 1993.HACPL is
offering the four cars as its products. Two of them Honda City and Honda Civic are being
manufactured (assembled) in Pakistan and the other two Honda Accord and Honda CR-V are
being sold as Completely Built Unit (CBU) import and are available on confirmed order basis
for the customers.

The Civic is Hondas largest selling model globally and is now sold in approximately 160
nations and regions worldwide. Honda Civic was first launched in Pakistan on January 10-11,
1996. The new model of Honda Civic was introduced on September 18, 2012 with enhanced
aerodynamics, elegant simplicity of exterior design, and enriched ergonomically designed
sophistication of the new interior. The new civic brings with it an armoury of innovative
features. Intelligent Multi Information Display (i-MID), Steering wheel with audio and cruise
control functions, Automatic climate control air conditioning, ECON mode for fuel
efficiency, immobilizer with alarm security system and a unique jack-knife key with trunk
opening function are salient.New Civic is available in 4 variants i-VTEC (MT), i-VTEC
(PT), VTI ORIEL (MT) & VTI ORIEL (PT). It features 16-Valve SOHC i-VTEC 4-Cylinder
engine.

Honda Civic is like the MaathayKaJhoomer for HACPL. It is playing a leading role for
HACPL portfolio. Because it is the car for which Honda is mostly known in the auto-market
of Pakistan. HACPL itself says about Honda Civic as: Taking the lead and Civic has
always been at the forefront of innovative ideas and advanced technology.

Strategic Focus of the Company

Mission

To develop forward-thinking technologies that anticipates and satisfies the needs of people in the
future.
Vision Statement

Striving to be a company that society wants to exist by sharing joys with people throughout
the world creating products that maximize the joy of customers, with speed, affordability and
low CO2.

Goals

To improve energy efficiency: For this they have developed gas-electric hybrid
vehicles that achieve ultra-high fuel economy. Developing vehicles that use
sustainable energy sources is perhaps the ultimate direction.
To achieve No .1 Customer satisfactions: It is their aim to be No.1 in customer
satisfaction in all three S, Sales, Service and Spare Parts.
To meet customer expectations, and to provide good value for money.
"Safety for Everyone" As a leader, Honda looks beyond government regulations,
studying real world situations to develop new safety technologies.
Blue Skies for Our Children HACPL is also committed to the global environment
through this slogan. Itexpress its commitment to the realization of this environmental
vision through expanded environmental initiatives.

Core Competence

Innovation is the core competence / strategic advantage of HACPL. "Do Not Imitate." The
instruction of Soichiro Honda echoes in the minds and hearts of everyone at Honda. At
Honda, they are constantly challenging themselves to seek out new initiatives and stay at the
forefront of innovation. Honda's research and development operations are the creative heart
and soul of their efforts to meet the needs of their customers. Honda's R&D Centres are
responsible for the development of a variety of innovative models. The stylists and engineers
listen to the customers and dealers to create products for an increasingly diverse range of
needs and interests.
IFE

IFE Matrix
Key internal factors Weight Rating Weighted Score
Strengths
1. Brand image 0.07 4 0.28
2. Advanced technology 0.12 4 0.48
3. Customer loyalty 0.06 3 0.18
4. Strong R&D 0.08 4 0.32
5. Greater fuel efficiency 0.1 3 0.30
6. Environment friendly cars 0.11 4 0.44
7. Safety 0.08 4 0.32
8. Quality 0.06 3 0.18
Weaknesses
1. Small Dealership network 0.1 2 0.20
2. Costly spare parts & maintenance 0.07 1 0.07
3. Limited product line 0.04 2 0.08
4. Less capacity utilization 0.06 2 0.12
5. High maintenance cost 0.05 1 0.05
Total 1 3.02

IFE score for HACPL is 3.02 which is above the average of 2.5 which shows that the
company is internally strong.
EFE

EFE Matrix
Key External factors Weight Rating Weighted Score
Opportunities
1. Expansion of 3S network 0.05 3 0.15
2. Introduction of hybrid and more fuel efficient 0.08 3 0.24
vehicles
3. Introduction of new and advanced technologies 0.12 4 0.48
4. Changing lifestyle of people 0.02 2 0.04
5. Introduction of below 1.3L category car 0.07 1 0.07
Threats
1. Adverse market conditions 0.10 1 0.10
2. WTO (World trade Order) opening local 0.05 2 0.10
markets for global competition
3. Entry of reconditioned cars 0.11 2 0.22
4. New model launch by any competitor 0.07 3 0.21
5. Energy crises 0.08 1 0.08
6. Increase in Petroleum and steel prices 0.09 2 0.18
7. Volatile Prices 0.09 2 0.18
8. Natural Disasters 0.07 2 0.14
Total 1 2.19

EFE score for HACPL is 2.19 which is below the average of 2.5 which shows that the
company is externally weak.
INDUSTRY ANALYSIS

Growth Engines

The high economic and job multiplier effect of automobile industry and its deep
forward and backward linkages in allied industries, make the auto industry a key
player in the national economy.
The economic survey of Pakistan 2010-11(Finance Division Government of Pakistan)
in its report states that the growth in automobile industry also depends heavily on
economic growth and availability of financing from financial institution at favourable
terms.
Innovation is also one of the major factors which are influencing the growth of
automobile industry in Pakistan. For example, innovative technologies like new type
and fuel efficient engines, GPS technology, hybrid technology, new safety features
like G-Con technology, SRS System, ABS and also the sporty & luxurious looks.

Trends

The automobile industry of Pakistan has been growing since the deregulation policies of
1990s.this was the time when the country opened doors for foreign manufacturers to enter
the local scene and to this date they continue to reap returns from a lucrative market.
Presently 3 major players dominate the market and include Pak Suzuki, Indus Motors and
Honda Atlas Motors. Pak Suzuki has an almost complete monopoly in the small car segment
as it faces almost no competition .In the Subcompact Sedan segment Toyota Corolla, Honda
Civic, Honda City, and the Nissan Sunny are currently the only cars in production.

In assessing the current scenario of the sector there are 3,200 units of automotive industry
with the investment of Rs92 billion, employing 1.8 million people and producing annually
1.8 million motorcycles and 200,000 vehicles. The magnitude of this industry can further be
judged by its contribution to the national exchequer which is nearly 50 billion which is
roughly 3% of the GDP. The sector provides employment to 3.5 million people and plays a
pivotal role in sustaining a blossoming vendor industry.

Honda in automobile industry

From the sales and production data we see that the Honda Company is successfully surviving
in the hard economic times. Overall, there have been timely increases in Honda Civic sales
over quarters of last 3 years. However, the era from mid 2011-12 saw a down fall. This can
be accounted for bad economic times not only in Pakistan but worldwide. Also, Japan
suffered an earthquake due to which the manufacturing facility was greatly affected.

The new Civic brings with it an armoury of innovative features. Intelligent Multi Information
Display (i-MID), Steering wheel with audio and cruise control functions, Automatic climate
control air conditioning, ECON mode for fuel efficiency, immobilizer with alarm security
system and a unique jack-knife key with trunk opening function are salient.

Trajectory
Thus, we can safely say that Honda civic is growing with a considerate rate. Both the
automobile industry and Honda company are heading in the same direction i.e. growth.

For Honda, we can say its a growing company in a growing industry.

Honda Civic
4000
3500
3000
2500
2000
1500
1000
500
Honda Civic
0
 Competitors

Competitors of Honda Civic are Toyota Corolla Altis 1.6 and Toyota Corolla Gli Dual VVTI.
The detailed comparison is as follows:

Body Comparison

Honda Civic Toyota Corolla Toyota Corolla

VTi 1.8 Altis 1.6 1.6 Gli
i-VTEC Dual VVTi
Overall Length (mm) 4540 4540 4540

Overall Width(mm) 1755 1760 1760

Overall Height (mm) 1435 1480 1480

Mileage Overall (km/liter) N/A N/A N/A

Technical Comparison

Honda Civic Toyota Corolla

Toyota Corolla
VTi 1.8 1.6 Gli
Altis 1.6
i-VTEC Dual VVTi

Displacement (cc) 1799 1598 1598

Transmission Type Manual Manual Automatic

Gear/Speeds Synchromes 4 N/A

Minimum Turning
2.67 5.3 m N/A
Radius(meter)

Valve Mechanism 16-Valve SOHC, i-VTEC N/A N/A

No of Cylinders (cylinder) 4 4 4

Cylinder Configuration In-Line 1.8-litre 1 Z-FE, VVT-i N/A

Fuel Type Petrol Petrol Petrol

Fuel System Multi-Point Fuel Injection EFI with VVTI N/A

Transmission Type Manual Manual Automatic

Gears/Speeds Synchromes 4 N/A

Control -Link McPherson

Front Suspension McPherson strut MacPherson Strut
Strut

Reactive-Link Double
Rear Suspension Torsion Beam Torslon Bearn
Wishbone

Power Assisted Yes Electric P N/A

Front Brakes Disc Ventilated Discs Ventilated Discs

Rear Brakes Disc Solid Discs Solid Discs

Wheel Type Steel Alloy Rims Simple

Wheel Size 15 X 6 J 15-inch 15-inch

 Compare Features

Air Conditioner

Power Windows

Power Steering

Anti-Lock Braking
System

Air-Bags (Driver |
| | |
Passenger)

Leather Seats

CD Player

Power Door Locks

Traction Control

Immobilizer

Alloy Wheels

Tubeless Tyres

Central Locking

Remote Boot/Fuel-Lid

Steering Adjustment
Tachometer

Rear Defroster

Defogger (Rear)

Customer Analysis

Product Market Focus

Corporate Philosophy
1. Dynamic manufacturing and marketing of prestigious products to the entire
satisfaction of customers
2. Create ideal working environment for continuous development of product and
personnel
3. Provide adequate return to shareholders and fulll corporate civic obligations
Management Policy
1. Respect for all man has priority over others
2. Man is the key in controlling i.e. machines, methods and materials.
3. Follow 3S spirit i.e. small, smart and speed.
4. Believe in 3A Hands on Approach i.e. be on Actual Spot, look at the Actual Spot
and confront the Actual Situation.
5. Be a good corporate citizen; assume a responsible role in community.
Priority Standards of Conduct
1. Safety: There can be no production without safety.
2. Quality: To achieve complete customer satisfaction by focusing on smart team work,
meeting all applicable legal and regulatory requirements & continually improving our
strategies and goals.
3. Productivity: With safety and quality each of us will strive to excel the performance in
all elds of our activities i.e. Production Divisions, Marketing & Planning, After Sales
Service, Finance, Import, Purchase & Logistics and Human Resources &
Administration etc.
 Quality Policy

We, at Honda Atlas Cars (Pakistan) Limited, strive for supplying top quality Honda Cars to
get complete Customer Satisfaction.

We accomplish this by:

Smart Team Work

Meeting all applicable legal and regulatory requirements
Continually improving our strategies and goals
Environment Policy

Honda Atlas Cars (Pakistan) Limited, being responsible member of the society considers the
preservation of the global environment as a crucial concern.

Our environmental philosophy is rmly based on the following principles:

1. Recognize the impacts of our activities, products and services on environment;

2. Formulate objectives and targets for pollution prevention, environmental impacts
mitigation and resource conservation as far as technically feasible;
3. Operate in compliance with applicable legal & other requirements with the
commitment to preserve global environment;
4. Create awareness and understanding about environmental issues among our
associates;
5. Commitment to continual improvement of the environmental performance and review
of the environmental management system to ensure its suitability, adequacy and
eectiveness;
6. Keep public and other interested parties informed on our environmental performance,
if deemed necessary.
Safety, Health and Environment

Honda Atlas Cars (Pakistan) Limited conducts its business responsibly and in a way to make
sure health, safety and protection from environmental aspects of its associates and the
society. We implement and maintain the programs that provide reasonable assurance that the
business will do the following:

1. To comply with all applicable government and internal health, safety and
environmental requirements
 2. Design facilities and conduct operations in a way that avoids risk to human health,
safety and the environment
3. To examine and communicate the known hazards of operations with relevant health,
safety and environmental protection information to potentially aected persons.
Operating Principles
1. Always keep the deadline
2. Never make excuses
3. Teamwork

Product Objectives

About Honda Civic, HACPL has an objective of remaining the Market Leader by keeping the
market share of above 70% and by the help of investment and focus on Innovation and
Customer Satisfaction. It is evident from the fact that HACPL is the only producer of 1.8L
category car in Pakistan with unique engine technology, safety standards and emission
standards.

Target Market

Geographically HACPL is targeting the urban customers of Pakistan.

Demographically Honda in Pakistan has segmented the market mainly on the basis of income level. It
is targeting the two segments of market at a time. Following are the two different segments which are
being served by the Honda:

1. Middle Income Class 2. Elite Class

Honda Civic 1.8L is being targeted to the Elite class.

Unique Selling Proposition (USP)

Honda is providing more safe, technological and environment friendly cars as compared to its
competitors.

Points of Difference

Unique Safety Features: Honda enjoys the advantage of delivering the more safe and
comfortable cars to Pakistani market as compared to its competitors. Anti-Lock-
Braking system (ABS) which is the technology that helps the driver maintaining
steering control while braking. Supplement Restraint System (SRS), Airbags designed
 to help reduce the likelihood of head and chest injury in the event of collision.
Hondas original G-Force control technology (G-CON): Controls various forces that
are generated upon impact and helps reduce injury.
Unique Environmental Friendly Features: Emission standards limit the amount of
pollution that can be released into the atmosphere. They regulate the amount of
Carbon Monoxide (CO), Oxides of Nitrogen (NOx), Sulfur, Hydrocarbons and
particulate matter (PM) that can be released. Carbon Monoxide and other chemicals
are reduced by modifying engines to completely burn fuel and by using catalytic
converters to convert the chemicals into less noxious compounds. The Euro-4
emission standards are applicable in the Europe from the year 2004, they are
considered to be the strictest standards worldwide. All Honda models/variants are
Euro-4 compliant.
Only Producer of 1.8L category car: In Pakistan only Honda produces the 1.8L or
1800 cc category car. It is Civic (i-VTEC/VTI Oriel). Previously Toyota in Pakistan
was also producing Corolla Altis in 1.8L category but it discontinued the production
and has shifted to the 1.6L category Corolla Altis.
Unique Technology: Honda has developed and introduced the i-VTEC engine. It is
for high performance, low fuel consumption and clean running. Honda has advantage
of being the only provider of this type of engine in Pakistan.

PRODUCT STRATEGY

Portfolio

HACPL is offering the four cars as its products. Two of them Honda City and Honda Civic
are being manufactured (assembled) in Pakistan and the other two Honda Accord and Honda
CR-V are being sold as Completely Built Unit (CBU) import and are available on confirmed
order basis for the customers. Following are the details:
 Honda Atlas Cars (Pakistan)
Limited

Honda Honda Honda Honda

City Civic Accord CR-V

Honda City

Honda City was first launched by HACPL on January 22-23, 1997. Honda's all-new Third
Generation Honda City was launched in January 31 2009. HACPL also introduced Honda
City Aspire on May 02, 2012. It comes with a completely new design, new engine, and
roomy cabin and equipped with various active and passive safety features. The company has
also launched the 1.3L MT & AT versions of the City. The new Honda City features SOHC,
16 valve 4-Cylinder i-VTEC engine.

The all new Honda City is a car with the closer look of future with the bold exterior and
innovation that embodies remarkably strong yet relaxing qualities.
Honda Civic

The Civic is Hondas largest selling model globally and is now sold in approximately 160
nations and regions worldwide. Honda Civic was first launched in Pakistan on January 10-11,
1996. The new model of Honda Civic was introduced on September 18, 2012 with enhanced
aerodynamics, elegant simplicity of exterior design, and enriched ergonomically designed
sophistication of the new interior.

The new civic brings with it an armoury of innovative features. Intelligent Multi Information
Display (i-MID), Steering wheel with audio and cruise control functions, Automatic climate
control air conditioning, ECON mode for fuel efficiency, immobilizer with alarm security
system and a unique jack-knife key with trunk opening function are salient.New Civic is
available in 4 variants i-VTEC (MT), i-VTEC (PT), VTI ORIEL (MT) & VTI ORIEL (PT).
It features 16-Valve SOHC i-VTEC 4-Cylinder engine.
Honda Accord

The Honda Accord was first introduced as a Completely Built Unit (CBU) import in Pakistan
on August 11, 2005. HACPL launched the new model of Honda Accord on July 20, 2008.
The Honda Accord is available in 2.4L engine. It is available on confirmed order basis for the
customers

The All-new Accord comes with 5-speed Automatic transmission. The AT now has Shift
Holding System which avoids unnecessary gear shifting on winding roads and helps in the
hassle free drive. The Honda Accord comes with Electric Sunroof and additional luxury
features for enhanced exterior styling. The 2.4L Honda Accord features DOHC, 16-Valve 4-
Cylinder i-VTEC engine.
Honda CR-V

The Honda CR-V is sold as a Completely Built Unit (CBU) import and is available on
confirmed order basis for the customers. The Honda CR-V was first introduced in Pakistan in
2005. The all new refreshed version of CR-V was introduced on March 01, 2012 which
offered its customers a distinctive combination of the comfort of a sedan with the thrills of a
SUV. The new Honda CR-V offers its customers a distinctive combination of refined styling
and high quality. The Honda CR-V is available in 2.4L MT with Real-time 4WD. Honda CR-
V features i-VTEC DOHC 4-stroke in-line 4 cylinder engine.

Role of Honda Civic in Portfolio

Honda Civic is like the MaathayKaJhoomer for HACPL. It is playing a leading role for
HACPL portfolio. Because it is the car for which Honda is mostly known in the auto-market
of Pakistan. HACPL itself says about Honda Civic as: Taking the lead and Civic has
always been at the forefront of innovative ideas and advanced technology.(Honda Civic
Brochure)

Market Size Estimation

We have estimated the market size with the help of sales data of Honda Civic and the
competing cars in the same category. Through graphs and other data it is evident that the
market size of Honda Civic is increasing.

There are gradual and continuous increases in the number of cars sold per quarter. The
estimated market Honda Civic will capture is 3000 above cars per quarter (according to the
recent data.) Honda Civic market share in its category is 70%(Haider, 2013).

SWOT Analysis
Strengths:

Features Honda civic Toyota Altis

Euro-4 standards Yes NO
Mileage-City (kmpl) 10.8 10.5
Mileage-Highway (kmpl) 15.5 14.5
Handling and feel More effective A bit underpowered
Engine and feel Best power shifting. Good
Ride quality Best Good
High customer satisfaction More Less than Honda

Weakness:

Features Honda civic Toyota Altis

Fuel Tank Capacity (liters) 50 55
Warranty Distance 40,000kms 100,000 kms
Acceleration (0-100 kmph) 9.6 Sec 10.42 Sec
Diesel version No Yes
Segmentation Middle and upper Mature users, seeking
refinement and comfort
Maintenance cost High Low

Opportunities
 1. High purchasing power of people.
2. Due to increased interest from consumers into more fuel efficient and lower pollution
cars,Honda can use its strength in high R&D to develop these kind of cars to suit
consumer needs.
3. An emerging market is one of the best opportunity for Honda Civic.productivity for
the company. (Critical success factor: Localization and flexibility are key
components for gaining market share.)
4. Fuel efficiency is nowadays termed as one of the best opportunity which can result in
the best productivity for the company.
5. One push starts.

Threats

Perceived to be a brand for the rich.

Threat from other luxury car makers.
Declining buyer consideration, an outdated inventory system and a sliding reputation
among younger car shoppers
Declining economic growth in global scale.

Critical Success Factors

Reliability
Good quality
Bluetooth
Warranty
Price
G-force technology
Crash compatible design
Fuel efficiency performance
Security (Air-Bag)

PRICING STRATEGY
The amount of money charged for a product or services or the sum of values consumer
exchange for benefit of using the product is called pricing.

Pricing is an important strategic tool because it relates to Product features, Product

positioning, Channel decision and Promotions.

Honda offers combination of pricing model

Premium Pricing

This approach capitalizes on society's generally accepted belief that the higher the price paid,
the greater the quality received in return. Most often, the premium price is accompanied by
other suggestions of superiority to justify the inflated sticker price.

In case of Honda it is charging premium price in Pakistan due to its brand image and precived
quality of its product and it is consider a superioer quality car amoung the all its competitor
that are manufacturing in Pakistan.

Tiered Pricing

Honda offer enhanced customer tool build your Honda

Honda offers various civic models acting as a price fence different features are offered at
different prices.

There is always the base model, good but with very few bells and whistles. There is a middle
level, with a few of the upgraded options and features and a premium level thats decked out
with all the features and special options.

Competition pricing

Price is set or adjusted based on competitor prices. Auto industry is very competitive and
before setting the price company have to consider the competitor price as well. So price
setting by Honda tend to react to the change in the price of the Toyota products.

The process of determining the price

Step by step process are undertaken to set the price of any Honda car which are as follow.

1) Developed marketing strategy, target market is established and product is positioned.

2) Make marketing mix decision the product, distribution and promotional tactics are
determined.
3) Estimate the demand curve. Quantity demand variation with price is studed.
4) All fixed and variable cost is determined.
5) Understand environmental factors, Competitors and competition products are
evaluated and other legal conditions are taken into account.
6) Set pricing objective.
Like maximizing the profit, stabilizing the sale.
7) Price is determined using information in the above steps and pricing model is
selected.

Pricing objectives

Profit Oriented

Target returns

Maximize the profit

Sales Oriented

Maximize Sales Volume

Maximize market share

Status-Quo Oriented

Stabilize sales.

Meet Competitions.

PROMOTION STRATEGY
 1. Advertising:

We are going to promote by 3 different ways.

1. Billboards
2. Newspaper Advertisements
3. Facebook Promotions

Billboards

Rate for the billboards vary from location to location. We choose 3 different spots for the
advertisement of the H-phone Service with the Honda Civic

a) Billboard opposite to Fortress Stadium

b) Billboard opposite to ShaukatKhanam Hospital
c) Billboard opposite PSO pump on Jail Road

The Prices for each billboard are as follow:

Fortress Stadium PKR 82,000 per day

Opposite ShaukatKhanam PKR 28,000 per day
Jail Road PKR 76,000 per day

We are going to advertise it in three different sessions.

Firstly in the most of launch i.e. June, the company is going to display the banner for 15 days
on all the 3 sides mentioned above. Then the company will be advertising in the month of
Sept for 7 days and lastly the billboard advertisement will be in the month of Jan 2014 and it
will also be advertised for the 7 days. The total cost the company have to face will be
1,328,170.20 .

Newspaper Advertisement

Newspaper advertisement will be always on the Sunday paper.

The schedule for the advertisement will be :

a. June 2013 fortnight for 2 times

b. July & August 2013 once a month
c. October, December 2013 for one Sunday each
 d. March, June, Sept, Dec 2014 for one Sunday

Then the newspaper advertisement will be not as much and it will be once every two months
for the next 6 months.

The advertisement will be the half pager 54 cm and 8 columns. This will be advertise in the
most selling brand i.e. The Jang Lahore. The cost for back half pager advertisement with 54
cm and 8 columns for a single day all over Pakistan is 4 million.

Facebook Promotions

Facebook promotions will be through the Facebook Honda Civic Page. This feature will not
cost the company much but this will help in promoting.

2. Creative Selling:

The creative selling process consists of eight steps, none of which is less important than any
other if the process is to be effective. It should be emphasized to all employees that all steps
are vital to the achievement of effective selling.
1. Pre-Customer Contact
2. Prospecting
3. Initial Contact
4. Presentation of Merchandise
5. Handling Objections
6. Closing the Sale
7. Suggestion Selling
8. Sales Follow-Up

DISTRIBUTION STRATEGY
Honda civic is distributed under trademarks of Honda.

Honda uses both direct and indirect modes of distribution.

Implication: The logic behind doing this is to provide customer with maximum ease and
access to the company. Also, to penetrate the market and have larger number of access points,
Honda has applied both means of distribution.

Distribution Channel:

Honda Cars Pakistan Limited has Dealership Network covering all of Pakistan, and
Dealership are equipped with all the facilities a modern dealership should have. The facilities
include Sale, Service and Spare parts. Sales of Honda civic in Pakistan are made through one
level channel. Hondas products are sold to consumers primarily by independent retail
dealers.

Direct: Customer can directly place the order with the company on the website. After
he has selected and build his choice in a vehicle, he will be presented with a complete
list of choices, as well as the vehicle's suggested retail price. He will also be
forwarded a quote to a local Honda dealer for further contact. If he chooses to utilize
this service, he will be asked to provide the company with his name, home and email
address, and home and/or business telephone number. Although not required to do so,
he may also provide the company with further information such as what time of day
he wishes to be contacted, his vehicle trade-in information as well as any additional
information or special requests.
Indirect: Customer can also contact the nearest dealer and place his order/ booking
through him with all the specifications and requirements.

. Dealers are of three types;

1-S
These types of dealers provide only spare parts.
2-S
These types of dealers provide both services and spare parts.
3-S
These dealers in addition to services and spare parts also offer cars for sale. There are
18-authorized 3-S dealers in Pakistan.
Market coverage:

For market coverage the company use intensive distribution system by authorizing several
distributor to sell Honda civic in a given market segment. They have their showrooms as
well. They are setting up or expansion their channel where necessary and they also have more
than one show room in some of the areas.

Approach:

Honda is using indirect marketing Approach. There is no marked up pricing by the authorized
dealers. Honda sells cars to its customers by using by the indirect channel.

All the authorized dealers and their outlets are well established in the immediate vicinity of
the target market segments and particularly in the niche of the interest of the company.

Roles of Distributors:

Distributors play the following roles:

1. Relationship building with the customer.

2. Ease of access to customer and better understanding of what the customer wants.

These distributors come in direct contact with the customers and brief them about the features
and specifications and guide them to get a better car for themselves. Thus, customers feel
attached and feel the importance due to the personal attention they get. Therefore, they add to
the value of the car.

Also, customers dont have to bother about the paper work, the legal issues and other such
stuff, dealers are responsible for all this. Thus, the choice of distribution channels adds to the
value delivery process.

Incentives:

The dealer incentives for Honda on average change from month to month. The incentives are
mostly factory to dealer, which are not usually advertised and the dealer can keep as profit or
show as a discount to the customer and factory to consumer which are normally advertised.
 Factory to dealer incentives are deals that happen behind the scenes between the dealerships
and the manufacturers of the vehicles. These incentives serve to reduce the actual cost a
dealership has to pay for the vehicles it buys from the factory.

Other incentives include Manufacturer to Customer Incentives. They are more commonly
offered on slower-selling vehicles and are offered nationally and regionally. But for CIVIC,
Honda relies more on factory to dealer incentives.

These incentives are both of financial and non financial nature.

Financial: These include higher mark-ups and commissions.(from manufacturer)

Non-financial: These include appreciation awards and more future collaborations.

FINANCIALS:

2013
 1st Quarter (April- 2nd Quarter (July- 3rd Quarter (Oct- 4th Quarter (Jan-
June) Sept) Dec) March)

Sales Sales Remains constant Sales go up by 10 % Past Result shows Sales increase by
for First 3 Months and in again as the product that there is always 2.5%
June there is increse of has recently launched Decrease in the
10% in the sales and is being Sales So sales go
advertised down by 10%
Cost of From Past Data, We came to know on average the Cost of Sales is 95% of Sales
Sales

Distribution On Average the Past Data shows the Distribution & Marketing Cost is 48453.33 plus the
& additional marketing expense and additional 5%increase every year
Marketing
Cost
Admin Average Admin Expenses from the Past record are 47973 with 5 % increase each year
Expenses
Other From Last Year Data we can assume that the Other Operating Income is 34365 with 5% increase
Income each year
Other from Last Year Data we can assume that the Other Operating Expense are 134642 with 5%
expense increase each year

2014
1st Quarter (April-June) 2nd Quarter (July- 3rd Quarter (Oct- 4th Quarter (Jan-
Sept) Dec) March)
Sales Sales increase by 2.5% in Sales go up by 10 % Past Result shows Sales increase by 7%
the sales again as the product has that there is always
recently launched and Decrease in the Sales
is being advertised So sales go down by
10%
Cost of From Past Data, We came to know on average the Cost of Sales is 95% of Sales
Sales
Distribution On Average the Past Data shows the Distribution & Marketing Cost is 48453.33 plus the additional
& marketing expense and additional 5%increase every year
Marketing
Cost
Admin Average Admin Expenses from the Past record are 47973 with 5 % increase each year
Expenses
Other From Last Year Data we can assume that the Other Operating Income is 34365 with 5% increase each
Income year
Other from Last Year Data we can assume that the Other Operating Expense are 134642 with 5% increase each
expense year

2015
1st Quarter (April- 2nd Quarter (July- 3rd Quarter (Oct- 4th Quarter (Jan-
June) Sept) Dec) March)

Sales Sales increase by 2.5% Sales go up by 10 % Past Result shows Sales increase by 7%
in the sales again as the product that there is always
has recently launched Decrease in the
and is being Sales So sales go
advertised down by 10%
Cost of From Past Data, We came to know on average the Cost of Sales is 95% of Sales
Sales

Distribution On Average the Past Data shows the Distribution & Marketing Cost is 48453.33 plus the
& additional marketing expense and additional 5%increase every year
Marketing
Cost
Admin Average Admin Expenses from the Past record are 47973 with 5 % increase each year
Expenses
Other From Last Year Data we can assume that the Other Operating Income is 34365 with 5% increase
Income each year
Other from Last Year Data we can assume that the Other Operating Expense are 134642 with 5%
expense increase each year

EXECUTION PLAN

This section of the plan is focusing on how and when all the planned activities will take place
and how much time and human resource are allocated for every particular activity within the
plan.
Timeline Year 1
Activities Jan Feb Mar April May June July Aug Sep Oct Nov Dec

Pre Launch
study and
activites
Luanch

BillBoards

Newspaper
Advertisment
Facebook
Page Run &
Feedback
Sales
Promotion
Evaluation of
Programs

Description Of Timeline.

In the first year we plan different activities whose details is as follow:

In the first three months which include planning of the materials and resources required and
cost estimation for launching of the new product along with the car that increases the value
for the customer and bring the paradigm shift in the automobile industry.

The officially launch of the car in the month of June.

Billboard will be display for the fortnight of the lunch month and for different days of the
next upcoming month after lunch at different locations.

Newspaper advertisement will be given for the fortnight of the lunch month and at different
schedule after the lunch months like on Sunday news paper.

Facebook page will be maintained for the whole year. Which will enable company to get the
feed back directly from the customers.
Sales and promotion campaign will be started in the July and August in which different
facilities will be provided by the company to facilitate the customers.

Evaluation of the Project will be done quarterly of the year. To supervise and check all the
activities.

Allocation of Human Resource

Siddique
Awais
Asad
Sara
Rubeela

Marketing manager is Sara Hassan who will be responsible for supervising all the activities
performed properly and accordingly in launching of the New product.

Prelaunch study and activities will be conducted by Awais Khurshid .

Launch will be conducted by the whole team and supervised by the Manager.

Purchase Manager is Rubeela Ali.

Sales promotion will be conducted by Asad Tariq.

Finance Manager will be Siddique Ahmed who will also do the quarterly evaluation to
check the progress.