Honda Atlas Motors

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 agreements signed between the two sponsors are for technical collaborations for
development parts and systems for manufacture of HONDA CARS in Pakistan. Pakistani and
Japanese cultures have blended exceptionally well to form a professional team of
Institute of Business Administration 1

dedicated specialist.
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) Pit shops 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 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.
HONDA always strives to give outstanding service to their 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 customers absolute
confidence in HONDA 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. In 1996 the full model
change of HONDA CIVIC introduced, after just one and half year of commencement of
production. Three models in Civic VTI, EXI and LXI with 1.6L and 1.5L engines were
introduced in VTI and EXI models respectively. In 1997 Honda CITY 1.3L car in Et and EX
models and Honda City EXI with 1.5L were launched.

VISION STATEMENT:
HONDA vision to position itself in Auto industry is stated by
management as follows:
Focusing on “satisfaction” (customer’,

associates’ and shareholders’) with
challenging spirit and flexibility, we
are dedicated to supplying latest
generation cars with advanced tech-
-nology, greater fuel efficiency and
competitive prices, along with friendly
and efficient after sales back up,
maintaing “quality” as core of

all activities.”
HONDA'S ENVIRONMENT STATEMENT:

HONDA environment policy established and announced in June 1992.
As a responsible member of society whose task lies in the preservation of the global
environment, company will make every effort to contribute to human health and the
preservation of the global environment in each phase of its corporate activity.
Only in this way will we be able to count on a successful future not only for our company,
but for the entire world.
We should pursue our daily business interest under the following principles:

BUSINESS PRINCIPLES OF HONDA ATLAS
CARS (PAKISTAN) LIMITED:
ENVIRONMENTAL POLICY:
• We will make efforts to recycle materials and conserve and energy at

every stage of our products’ life cycle fro research, design, production and
sales, to services and disposal.
• We will make every effort to minimize and find appropriate methods to

dispose of waste and contaminants that are produced through the use of
our products, and in every stage of life cycle of these products.
• We will consider the influence that our corporate activities have on the
regional environment and society, and endeavor to improve the social
standing of the company.
• As both a member of the company and of society, each employee will focus
on the importance of making efforts to preserve human health and the
global environment, and will do his or her part to ensure that the company
as a whole acts responsibly.

HONDA ATLAS CARS (PAKISTAN) LIMITED, being responsible member of society
considers the preservation of the global environment as a crucial concern reviewed on 30th
June, 2004.
Our environmental philosophy is firmly based on the following guidelines.
• Recognize the impacts of the significant aspects on the environment resulting

from our activities, products and services.
• Formulate objectives and targets for pollution prevention, environmental

impacts mitigation and resource conservation as far as technically feasible.
• Operate in compliance with relevant environmental laws, regulations and other

requirements that apply to our activities.
• Create environment friendly attitude among associates.

• Commitment to continual improvement of the environmental performance and
review of the environmental management system to ensure its suitability,
adequacy and effectiveness.
QUALITY POLICY :
At HONDA we are committed to focus all are activities leading to:
• Manufacturing high quality products.
• Customer satisfaction.
• Service to society.
• Maintain market leadership.
HONDA ATLAS CARS PAKISTAN LIMITED is a quality conscious company. That’s why
HONDA ATLAS CARS PAKISTAN LIMITED is the first automobile company in Pakistan
who has achieved “ISO 9002” certification.

OTHER BUSINESS PRINCIPLES OF
HONDA:
Following are different policies &principles of Honda namely:
• MANAGEMENT POLICY:(respect, man power

importance, 3s spirit, 3A “hand on approach”, be a corporate citizen).
• HONDA ATLAS CARS (PAKISTAN)

LIMITED CORPORATE POLICY: (ideal
working environment , adequate return to share holders, dynamic
marketing &manufacturing).
• PRIORITY STANDARDS OF
CONDUCT:(safety ,quality ,productivity).

• HUMAN RESOURCE AND
SUCCESSION PLAN:(hiring competent associates
,providing opportunities for internal mobility through personal training
and development, enabling them to take higher position).
• SAFETY ,HEALTH AND

ENVIORMENT:(comply with applicable Govt.
requirements, avoid risks to human health ).
• OPERATING PRINCIPLES:(always keep the

dead line, never make excuses, team work).
COMPANY INFORMATION:

THE BOARD OF DIRECTORS
Mr. Yosuf h. shirazi

(Chairman)
Mr. Satoshi okamoto

(President / ceo)
Mr. Amir h shirazi
Mr. Motohide sudo
Mr. Hiromi mizutani
Mr. Jawad iqbal Ahmad
Mr. Takashi otsuki
COMPANY SECRETARY
Mr. Raffat iqbal

AUDITORS
A. F. Ferguson & co.

Chartered accountants accountants
LEGAL ADVISORS
Cornelius lane & mufti
BANKERS
Abn amro bank
Habib bank ltd.
Askari commercial bank
Citi bank n.a.
Deutsche bank

Muslim commercial bank
The bank of Tokyo –Mitsubishi

LTD.
REGISTERED OFFICE
1 – MCLEOD ROAD,
LAHORE
PH : (042) 7225015 – 17
FAX : (O42) 7233518
FACTORY
43 KM, MULTAN ROAD,

MANGA MANDI, LAHORE.
PH : (042) 5750011 – 17
FAX : (042) 5750020, 5765071
E-MAIL: honda@brain.net.pk
Web site : www.honda.com.pk

CHRONICLE OF EVENTS:
Date Year Events

Aug 05 1992 Joint venture agreement signed with Honda Motor Co. Japan.
Nov 04 1992 Incorporation of Honda Atlas Cars (Pak) Ltd.
Feb 10 1993 Certificate of Commencement of Business.
Apr 17 1993 Ground breaking ceremony.
July 1993 Rupee devalued by 70%.
Completion of civil work and installation of Plant
Mar 31 1994
&Equipment.
Technical Assistance Agreement signed with Honda Motor
Apr 01 1994
Japan
May 26 1994 First car rolling out ceremony held.
Mr. N. Kawamoto, President Honda Motor Co., Japan,
July 13 1994
visited.
July 13 1994 Inauguration by President of Pakistan.
July 16 1994 Commercial production started.
Oct 10 1994 Public issue of shares.
June 22 1995 New ware housing facility added.
July 20 1995 5,000th car rolling out ceremony held.
Oct 29 1995 Rupee devalued by 7%.
Jan 10 1996 New Civic ’96 launched at Karachi & Lahore.
Aug 11 1996 10,000th car rolling out ceremony held.
Sep 10 1996 Rupee devalued by 3.65%.
Oct 22 1996 Rupee devalued by 8.5%.
Dec 30 1996 10% cash dividend approved at 4th AGM.
Jan 22 1997 Honda City launched at Karachi & Lahore.
Mar 28 1997 Sales Tax reduced from 18% to 12.5%.
Oct 15 1997 Rupee devalued by 8.7%.
Dec 15 1997 5% bonus shares approved at 5th AGM.
June 26 1998 Rupee devalued by 4.4%.
Oct 1-6 1998 Honda Motor Company’s 50th anniversary.
Dec 01 1998 Sales Tax increased from 12.5% to 15%.
Dec 08 1998 10% cash dividend approved at 6th AGM.
Jan 28 1999 VTi Oriel lunched at Lahore.
Apr 13 1999 ISO 9002 Certification achieved.
Oct 20 1999 20% cash dividend proposed by the Board of Directors.

COMPANY OPERATIONS FOR THE YEAR 2004-
2005:
In this year company recorded highest ever production of the cars i.e.20,040 units -72.9%
increase & highest ever sales of cars i.e. 20,056 units -70.6% increase.
In this year production capacity has enhanced to 30,000 units per annum. Company has also
started double shifts in present year.
Paint shops extended with capital investment of Rs.185 million.10th Anniversary of

HONDA ATLAS CARS (PAKISTAN) LIMITED celebrated.
Number of employees increased by 65.1% and reached to 1,032.Free engine tune-up and
A.C check up campaign conducted at all Honda 3S dealers and Pit stops.
Surveillance Audit of ISO 9001& ISO 14001 held successfully. 5th South-West Asia
Environment Meeting held. Renovation and up-gradation work started at 3S Dealerships
and Pit shops.

Marketing mix:
“The set of marketing tools that the firm uses

to pursue its marketing objective in target market.”
4 P’s OF MARKETING MIX by

(McCarthy):
The “Marketing Mix” is probably the most famous phrase in marketing.
• There are literally dozens of marketing mix tools.

• McCarthy popularized a four factor classification of
these
tools called the four P’s.
Product, Place, Promotion and Price. These components are called marketing decision
variables because a marketing manager can vary the type and amount of each element. One
primary goal is to create and maintain a marketing mix that satisfies consumer’s needs for a
general product type. Marketing mix often is viewed as “controllable” variables because
they can be changed. However, there are no limits to how much these variables can be
altered. They are not totally controllable.

WEB VIEW OF 4 P’s OF MKT MIX:
Product Price
Marketing
Mix
Product Promotion

EXPLANATION OF FOUR P’s
ACCORDING TO
( WILLIAM J STANTON):
PRODUCT:
“It is a set of attributes assembled in an identifiable form.”
OR
It can be defined as every want satisfying attribute a consumer receives in making an

exchange, including psychological as well as physical benefits. It includes product planning,
product research and development; product testing; and the service accompanying the
product.
PRICE:
“Price is amount of money and /or other items with utility

needed to acquire a product.”
OR
It is the value that one puts on the utility that one receives of goods and services. It includes
price determination; pricing policies; and specific pricing strategies.

PLACE:
It is the making available of products in quantity desired to as many customers as possible
and to hold the total inventory, transportation and storage costs as low as possible. It includes
selection. Coordination and evaluation of channels; transportation; warehousing; and
inventory control.
OR
A channel of distribution comprises a set of institutions which perform all of the activities
utilized to move a product and its title from production to consumption.
Bucklin - Theory of Distribution Channel Structure (1966)
Place is also known as channel, distribution, or intermediary. It is the mechanism through

which goods and/or services are moved from the manufacturer/ service provider to the user
or consumer.
PROMOTION:
It is the element in an organization’s marketing mix that serves to inform, persuade and
remind the market of a product and/or the organization selling it, in hopes of influencing the
recipient’s feelings, beliefs or behaviors.
OR
It is used to facilitate exchanges by informing one or more groups of people about an

organization and its products. Promotion includes such areas as sales management; personal
selling; advertising sales promotional programs and all other forms of marketing
communications.

MARKETING VARIABLE UNDER EACH “P”

Product is the first element among the four elements of marketing
mix that are called as 4P’s of Marketing Mix. Product is meant to
meet customer needs and satisfaction. Product is actually the key
element in the marketing offering. The beginning of the marketing
mix is to formulate an offering in order to make the customer’s need
satisfied.

DEFINITION:-
“Product is anything that can be offered to market for attention, acquisition, use or
consumption that might satisfy a want or need of the person. It includes physical objects,
services, person, places, organization, events, properties, information and ideas.”
It is said that product is much more than the physical attributes
Pro
PRODUCT
TANGIBLE INTANGIBLE
ATTRIBUTES ATTRIBUTES
duct contains both tangible and intangible components, predominantly tangible products are
called as goods and intangible products are called as services.
Being working on HONDA ATLAS CARS we have to basically deal with a product that is
luxury vehicles for the customers. Being a motor vehicle organization HONDA has
established a complete brand name in the motor vehicles industry.

PRODUCTS OFFERED BY HONDA ATLAS
CARS PAKISTAN :
Honda basically offers the consumers and business products both to facilitates the consumer.
PRODUCTS
OFFERED BY
HONDA
ATLAS CARS
PAK LTD
CONSUMER AS WELL AS
BUSINESS VEHICLES
HONDA HONDA
CIVIC CITY

HONDA CIVIC:

HONDA CITY:

PRODUCT STRATERGIES OF HONDA
ATLAS ARS PAKISTAN:
• New product strategy

• Development process
• Product mix
• Position strategy
• Product life cycle
• Branding strategy
• Product features
• Product parts
• Services
• Product quality
• Product design

NEW PRODUCT STRATEGY:
As we know the product innovation is of three types
 Products those are really innovative.
 Replacement those are significantly different from the existing

product.
 Imitative products that are new t company but not new to market.
HONDA falls in 1ST category .HONDA ATLAS CARS is providing vehicles to the customer
that is really new to customers & relatively different from the existing ones. The strategy of
HONDA ATLAS CARS is to attract the customer with the unique characteristics of the
vehicles. As the automobile industry in PAKISTAN has diversity. So the main aim of
HONDA ATLAS CARS is to capture the market share by introducing the new in existing
available vehicles. The core element behind their strategy is to introduce their vehicle in
order to strengthen their reputation in the eyes of consumers.

DEVELOPMENT PROCESS ADOPTED BY
HONDA:
The development strategy regarding product of HONDA is being dealt by the HONDA
MOTOR COMPANY JAPAN. As we know that the HONDA is made to deal with the
requirement of the local customers. The following steps are taken by HONDA regarding
development:
Step # 01: Generation of new idea

Step # 02: Screening of idea
Step # 03: concept development and testing
Step # 04: Marketing strategy
Step # 05: Business analysis
Step # 06: product development
Step # 07: test marketing
Step # 08: commercialization

1. GENERATION OF IDEA:
HONDA always thinks about something new to meet the requirement of the customers.
HONDA ATLAS CARS is authorized in PAKISTAN to generate the ideas about
improvement in their vehicles. On the other hand, to remain leading in automobile industry
it’s the trend to give new features to the existing vehicles.
2. IDEA SCREENING:
All the new ideas cannot be implemented so HONDA screens the pool of ideas in order to
refine them, for this purpose HONDA has some experts who analyze and guide the company
to proceed.
3. BUSINEES ANALYSIS:
HONDA experts’ team estimates the market demand, competition, and cost of adding new
feature to the vehicles.
4. TEST MARKETING:
After the analysis a survey is conducted from the target market by telling the introducing
features of so that profitability of that project can be evaluated.
5. COMMERCIALIZATION:
Now the HONDA is in the position to launch a model with introducing features.

PRODUCT MIX OF HONDA ATLAS
CARS (PAKISTAN) LIMITED:
A product mix is set of all products offered for sale by a company. The structure of a product
mix has both breath and depth.
PRODUCT MIX OF
HONDA ATLAS
CARS
Breadth (No of Depth (Variety

product line) of sizes, colors
offered by models) Offered
Honda by Honda

BREADTH:
It is measured by the number of the product lines carried. The following are the product line
of HONDA:
1. Honda civic
2. Honda city
3. Honda motorcycles
4. Honda generators
5. Honda boats
DEPTH:
It is expressed by the variety of sizes, colors and models offered within each product line.
Attributes offered by HONDA in various product lines are:
1. COLOUR
2. MODEL
3. SPECIFICATION
The product mix of HONDA ATLAS CARS would be explained below:

HONDA CIVIC:
1.COLOUR:
Colors that change your

Life.
DIFFERENT COLORS OFFERED IN HONDA

CIVIC
Cyprus Blue Pearl

Grantic Verde Metallic
Cappuccino Brown Pearl
Charcoal Grey Pearl

Shalimar Rose Mist
Vogue Silver Metallic
Frost White

Grenada Black Pearl
Canyon Stone Silver Metallic
2.MODELS:
• Exi (MT)
• Exi (PT)
• VTi (MT)
• VTi (PT)
• VTi Oriel (MT)
• VTi Oriel (PT)

3.SPECIFICATION:
The Dream Comes True HONDA CIVIC Specifications.

Type EXi VTi
ENGINE
Type Water-cooled 4-stroke SOHC
16-valve in-line 4-cylinder
Transversely Mounted
PGM - FI (Programmed Fuel
Fuel Supply System (mm) PGM - FI + VTEC - III
Injection)
Bore / Stroke (mm) 75.0 X 84.5 75.0 X 90.0
Displacement (cubic cm) 1,493 1,590
Maximum horsepower
81 (110) / 5,800 96 (130) / 6,600
(KW (PS) / RPM)
Maximum torque
135 (13.8) / 4,500 146 (14.9) / 5,000
(N.M (KGM) / RPM)
TRANSMISSION
Manual Synchromesh five forward speed, one reverse
Prosmatec 4 - speed fully automatic (Progressive Shift Management Technology)
STEERING SYSTEM
Gear Type Rack & pinion, Power assisted
DIMENSIONS
Overall length (mm) 4455
Overall width (mm) 1720
Overall height (mm) 1455
Wheel base (mm) 2620
Tread (Front / Rear) (mm) 1470 / 1470
Ground clearance (mm) 170
SUSPENSION SYSTEM
Front New McPherson Strut front suspension
Rear New rear double wishbone suspension
BRAKING SYSTEM
4 - wheel disc ABS
Type 4- wheel disc brakes
(Anti-Lock Braking System)
Electronic Brake force Distribution (EBD) X O
TIRE / WHEELS
Tire Size 185 / 65 R 14 (86H) 185 / 65 R 15 (88H)
Wheel Size 14 X 5 JJ 15 X 6 JJ

HONDA CITY:
1.COLOURS:
Colors that change your

Life.
DIFFERENT COLOURS OFFERED IN HONDA

CITY:
Following are the different colors that are offered in HONDA CITY.

Granada Black Pearl Frost White
Cyprus Blue Pearl Silver Grey Pearl
Vogue Silver Metallic Canyon Stone Silver Metallic

Shalimar Rose Mist Charcoal Grey
Pearl
2.MODELS:
• Exi
• Exi – s
• Exi – s (AT)
• Neo 1.5
• VARIO

3.SPECIFICATION:
The NEW HONDA CITY Specification

Type EXi-S VARIO
ENGINE
Type iDSI (Intelligence Dual & Sequencial Ignition)
Fuel supply system PGMF-I Programmed Fuel Injectioni
Displacement 1300
Compression ratio 10.5
Maximum horsepower (KW(PS)RPM) 57 (78) / 5,800
Maximum torque (N.M(KGM)RPM) 105 (10.8) / 3,000
TRANSMISSION
Manual Synchromesh five forward, one reverse ----
Continuously Variable Transmission

Automatic ---- 6 position (CVT)
STEERING SYSTEM
Gear Type Rack and pinion, power assisted
DIMENSIONS
Overall length (mm) 4310
Overall width (mm) 1690
Overall height (mm) 1510
Wheel base (mm) 2450
Tread Front (mm) 1454
Tread Rear (mm) 1445
Ground clearance 160
SUSPENSION SYSTEM
Front / Rear Independent Strut / H-shaoe Torsion Beam
BRAKING SYSTEM
Front Ventilated discs
Rear Leading / trailing shoe drums
TIRE / WHEELS
Tire Size 165/BO R13
Wheel Size 13X5J

POSITION STRATEGY:
“Market positioning is arranging for a product to occupy a clear,

distinctive and desirable place in the minds of the customers relative to
completing products.”
In this way product is defined by consumer on important attributes. The management of
HONDA has planned a position that distinguishes their vehicles from their competitor’s
ones. It’s the shinning point of HONDA that after analyzing their positioning strategy they
conclude that they provide maximum satisfaction to their consumers.
To make good position in the automobile industry the HONDA first identifies the possible
advantages about its vehicles. In order to have the competitive advantage, HONDA offer
great value to choose target segments by offering more benefits and luxury accessories to
justify their prices.
VARIOUS STRATEGIES OF HONDA:
In order to better position the vehicles HONDA is tend to adopt the following strategies:
1.POSITIONING IN RELATION TO
COMPETITORS:
As we know that HONDA has a solid differential advantage on its vehicles. To fend of its
rival that is TOYOTA over here, HONDA has brought out successful models that are
meeting the customers need so well.

2.POSITIONING IN RELATION TO PRODUCT
ATTRIBUTES:
Under this strategy the HONDA management has more concern because the consumers of
these luxuries vehicle are more intended towards the product attributes. HONDA has been
continuously working to give more accessories to their vehicle in order remain alive in the
minds of their target market.
3.POSITIONING BY PRICE AND QUALITY:
HONDA has been very successful in positioning its vehicle in relation to the price and
quality. The strategy is to have no compromise over the quality of its vehicles in regard to the
parts.
PRODUCT LIFE CYCLE:
“The product life cycle consists of the aggregate demand over an extended
period of time for all brands comprising a generic product category.”
The product life cycle consists of four stages:
• Introduction
• Growth
• Maturity
• Decline

1.INTRODUCTION:
During this stage, a product is launched into market in a full-scale marketing program. It is
also called the pioneering stage.
2.GROWTH:
In this stage, sales and profits rise, frequently at a rapid rate. It is also called market-
acceptance stage.
3.MATURITY:
During the first part of this stage, sales continue to increase, but at a decreasing rate. During
the other part of this stage, marginal producers, those with high costs or no differential
advantage, drop out of the market.
4.DECLINE:
In this stage, sales are decreasing because of these three reasons:
• A better or less expensive product is developed to meet the same need.

• The need of the product disappears, often because of another product development.
• People simply grow tired of a product.

HONDA’S PRODUCT LIFE CYCLE:
HONDA lies in the early stage where sales continue to increase and profits are maximum. So
HONDA tries its level best to maintain this present situation.

BRANDING STRATEGY ADOPTED BY
HONDA:
It is common view that consumes view a brand name as an important part of the product and
no doubt branding ads to the value of the product.
Branding is actually:
“A name, term, sign, symbol, or a design

or a combination of these intended to
identify the goods and services of one
seller to differentiate them with the
products and services of their competitors.”
HONDA BRAND NAME:

BRAND DECISION MADE BY HONDA:
Brand decision of HONDA is based on the fact that it is most popular perceived by the
customer as luxurious vehicle. HONDA brand name has strong consumer loyalty but only in
a specific target segment of the whole society.
BRANDING STRATEGY:
HONDA has struggled a lot to keep its brand being remain in minds of consumers. Under
this regard the main strategy is to add the valuable features to vehicles to keep the brand
loyalty.
BRAND PERSONNA:
Every brand of HONDA has its own branding strategy. HONDA ATLAS CARS PAKISTAN
LIMITED builds brand persona for each brand. Pricing, Promotion, Distribution and future
products development follow brand persona.
BRAND MESSAGE PERSONA
CIVIC DISTRACTINGLY FOR THE STYLISH,

GOOD LOOKING GOOD LOOKING
PEOPLE
CITY EXTREME FOR THE
PERFECTION LUXURIOUS
VEHICLE LOVERS

PRODUCT FEATURE:
To get a superior market share the product must have the salient features in it. HONDA has
adopted the same strategy that it has been continuously adding features to its vehicles.
Let have a look vehicles offered by HONDA ATLAS CARS (PAKISTAN.) LIMITED in
regard to their features
Honda Civic:
The shinning features of Honda civic would be elaborated as follows:
EXTERIOR:
Distractingly good looking:

New Civic has an exciting new style. It’s the car for people who know what’s happening.
Who shape the time?
There’s a lot to love about the Civic:
It's reliable, economical and remarkably fuel-efficient.
It's now equipped with new headlights, bumpers and grille, so you'll have a tough
time concentrating on anything except its stylish good looks.

INTEROR:
Comfort, convenience and luxury with style:

Trend should conform to climate, weather and conditions. HONDA beige, pragmatically
selected to stay clean and spotless for years.
Feel the difference!

CIVIC SOPHISTICATION:
GENEROUS AMOUNTS OF LEGROOM,

COURTESY OF HONDA'S FLAT REAR FLOOR:

AUDIO SYSTEM:
Ten disc CD Changer with flip front stereo & remote control on all models.
OPEN MOON ROOF:

Oriel - tilt & slide open moon roof with daylight shutter.

GENEROUS LUGAGGE SPACE:
METERS:
Large innovative colored meters for easy reading.
ELECTRICALLY RETRACTABLE DOOR

MIRRORS:
Redesigned electrically retractable door mirrors reduces wind noise and can fold easy
parking.

REAL WORLD CRASH TEST FACILITY:
HONDA is committed to resolving the complex issue raised by real-world crash research.
When braking hard or on slippery surfaces, HONDA ABS automatically lends
expert braking assistance to help driver retain steering control
Every door is equipped with two steel door beams that lend solid passenger
protection in the event of a collision from either side.
A sub frame in the shortened nose efficiently absorbs impact energy.

Honda's G-CON technology moderates the force of impact and helps maintain
around you and your passengers. Innovative front side frame, crumples upon impact, then
bend like a joint to absorb maximum energy in a frontal collusion.
HONDA CITY: THE SPIRIT
EXTREME PERFECTION:
Is there a better way to build a compact sedan? HONDA'S affirmative answer is the
revolutionary new CITY. Through innovative engineering and leading advances like as
i-DSI engine and exclusive chassis platform.
The future takes form in

The new HONDA CITY

The NEW HONDA CITY provides spaciousness & functionality. Interior styling prioritizes
the driver and is emphatically sporty and personal in its appeal.
The City unites a lower floor with a usually spacious cabin and luggage area.

SAFETY:
Aiming for the world-class safety performance. Great peace of mind in a

compact body.
HONDA'S original G-Force Control technology provides all- around protection in the event
of and accident. This safety technology is designed to control and absorb collision impact,
maintaining the structural integrity of the passenger space.

Through relentless crash testing at various speeds and angles, the City supplies protection
that meets the world’s strict governmental safety standards.
PERFORMANCE:
i – DSI
Intelligence Dual & Sequential ignition
Dramatically efficient fuel economy. Greater driving range on the same amount of fuel.
Plus plenty of torque whenever you need it.
HONDA'S unique new i-DSI engine uses two spark plugs per cylinder for maximum fuel
efficiency. Leading friction reducing technology used in i-DSI engine provides ample power
for enhanced Driving Pleasure.

Honda City's novel transmission "Vario" allows smooth step less power transfer from the
engine to the wheels to match the mood.
ENUINE PARTS
HONDA GENUINE PARTS:

But if you buy the HONDA genuine parts from HONDA DEALERS and enjoy 6 month's
HONDA Warranty, contribute to the country’s economy and enjoy the satisfaction of using
100% genuine HONDA Parts
But if you buy the parts from open market;
1) Most probably you will be buying smuggled parts and thus committing a moral crime and
robbing your country from precious revenue.
2) You will enjoy no warranty.

3) You can never be sure about the genuineness of the parts you have purchased from the
open market.
By using Honda Genuine Parts;

1) You can increase the life of your car.
2) You can enjoy safe & satisfactory drive.
3) You can increase the resale value of the car.
It is our aim to be No.1 in customer satisfaction in all three S, Sales, Service and Spare
Parts. Your help can go a long way to help achieve our goal.
For buying HONDA GENUINE ACCESSORIES please contact your nearest authorized
HONDA Dealership.
Sugoi Parts Center has started on 2nd July, 2001 with the objective to provide the
Genuine HONDA Spare Parts to our valuable customers.

GENUINE PARTS
They’re part of the whole picture.

Only Genuine HONDA Parts are made to HONDA specifications to maintain the
Quality, Reliability and Performance - Making them easy choice every time.
• When you install Genuine HONDA Parts you are getting a HONDA
WARRANTY that you won't get anywhere else.
• Genuine HONDA Parts maintain original operation specifications which can
keep your vehicle on the road longer and retain resale.
• Quality, Reliability and Performance attributes that have come to describe HONDA
vehicle and also reflected in the Parts from which that are built.
• Each Genuine HONDA Part is precisely design and rigorously tested not only
for it's individual performance but also it's interaction with the entire vehicle as well.
This process helps ensure that each Genuine HONDA Part will function as its
optimum.
• HONDA MOTOR vehicles are equipped with many unique automotive system
which require special care to maintain their high levels of Performance and

Reliability, that's why we have created a range of Genuine Fluids and
Lubricants specifically for your HONDA. Each of the Genuine Fluids and
Lubricants is designed to perform a specific task, which is crucial to well being of
your HONDA. If it carries the HONDA Logo you can be assured of it is of
superior quality.
PRICES OF PARTS & ACCESSORIES OF ONDA

CIVIC:

GENUINE BODY PARTS
Model Part Name Price (Pak Rupee)
Front Bumper
99-00 7,000
2001~ 5,500
Rear Bumper
99-00 7,000
2001~ 5,500
Head Light, Right / Left
99-00 6,000
2001 3,800
Back Light, Right / Left
99-00 3,000
2001 2,200
2003~ 2,800
Tail Light, Right / Left
99-00 2,500
2001 2,200
2003~ 2,800
Bonnet
99-00 9,500
2001~ 11,000
Mudguard (Fender) R/L
99-00 7,000
2001~ 4,500
Complete Trunk
99-00 9,000
2001~ 11,000
Mirror Assembly R/L
99-00 4,500
2001~ 5,000
Molding Front Windshield
99-00 2,300
2001~ 1,000
Base Front Grill
99-00 1,700

PRICES OF MAINTANCE PARTS OF HONDA
CIVIC:
GENUINE MAINTENANCE PARTS
Oil Filter
99~ 150
Air Filter
VTi 99-00 700
EXi 99-00 450
2001~ 450
Fuel Filter
99~ 1,300
Clutch Plate
99~ 2,500
Pressure Plate
99-00 3,800
EXi 2001~ 3,800
VTi 2001~ 3,100
Timing Belt
99-00 1,000
2001~ 1,000
Timing Bearing
99-00 1,200
2001~ 1,600
Spark Plug
99~ 150
Front Disk Pads

(4 Pieces, R/L)
99-00 2,200
2001~ 2,500
Rear Disk Pads
(4 Pieces, R/L)
99~ 2,200
Rear Break Shoe
(4 Pieces, R/L)
99-00 1,600
2001~ 1,200
Horn High / Low
99~ 600
Bonnet Cable
99-00 700
2001~ 300
PRICSE OF PARTS & ACCESSORIES OF

HONDA CITY:
GENUINE BODY PARTS
Front Bumper
97-99 5,000
2000~ 5,500
Rear Bumper
97-99 6,000
2000~ 5,500
Head Light, Right / Left
97~ 3,800
Back Light, Right / Left
97~ 2,500
Bonnet
97-99 10,500
2000~ 9,000
Mirror Assembly R/L
EXi 97~ 3,000
EXi-S 97~ 4,000
Molding Front Windshield
97~ 1,500

Base Front Grill
97-99 1,600
2000~ 850
Molding Front Grill
97-99 1,200
2000~ 1,400
*Prices are effective from Oct 1st, 2002 to onward.

All Prices are inclusive of Sales Tax.
PRICES OF MAINTENANCE PARTS OF HONDA

CITY:
GENUINE MAINTENANCE PARTS
Oil Filter
97~ 150
Air Filter
97-99 500
2000~ 450
Fuel Filter
97-99 300
2000~ 1,300
Clutch Plate
97~ 3,000
Pressure Plate
97~ 3,600
Timing Belt
97~ 1,000

Timing Bearing
99-99 1,200
2000~ 950
Spark Plug
97~ 150
Front Disk Pads
(4 Pieces, R/L)
97~ 2,200
Rear Break Shoe
(4 Pieces, R/L)
97~ 1,400
Horn High / Low
97~ 850
Bonnet Cable
97~ 140
Bonnet Rubber
97~ 850
Antenna
97~ 2,000
Steering G/Box Rack End
97-99 2,100
2000~ 1,500
Emblum Front Center
97-99 220
2000~ 150
SERVICE FACILITIES:
CUSTOMER SERVICE CENTERS:
All the authorized dealerships in Pakistan are a source of customer satisfaction. The after
sales are supported by the immaculate service and the availability of spares at competitive
prices for every car sold. To facilitate the customers for any assistance they require, we have
a separate department, called Customer Relations, at the head office. This department is
supported by the subsequent Customer Relations Officers at all dealerships. The
purpose of Customer Relations Department and Customer Relations Officers is to enable our
customers in getting any sort of help required by them.

FREE SERVICES:
HACPL is a customer service conscious company, for which it is always looking for avenues
to develop further relations with the customers who have already purchased the cars. We
consider purchase of car as the beginning of relations with customers. To prolong this
relationship and encourage the customers to keep on coming to the dealership, to get theirs
cars maintained the HONDA way we provide three FREE CHECK-UP SERVICES
to our customers.
These are basically three periodic check-ups at 1,000 Km, 5,000 Km and 10,000 Km
mileage which are normally done after 1 month, 3 months and 6 months of running
the car. Other than providing service to customers another reason for this facility is to stress
on the importance of periodic maintenance. Periodic maintenance is essential for every car
and if this is performed regularly as per the maintenance schedule the car is trouble free and
life of car increases by many years. For these free services the labor is not charged, where as
the customer has to pay for only the consumable like engine oil, oil filter, etc..
REPAIR AND MAINTENANCE:
HACPL is providing regular trainings to the dealers' technicians. The trainings cover all
aspects of the cars including the periodic maintenance, diagnostics, trouble shooting and
repairs according to HONDA standards. From this we want to facilitate the customers in
maintaining their cars in top-most condition and enjoying the comfort and performance of the
luxury vehicles they own. It is our endeavor to have uniform service standards made
available at all dealerships in accordance with the international Honda standards. We
consider the properly maintained vehicles not only to be a source of satisfaction to our
customers; they also increase the sale value of their car.

WARRANTY CONDITIONS & ADVANTAGES:
WARRANTY PERIOD:
The warranty of the vehicle is valid for 12 months or 20,000 kilometers whichever
comes first from the date vehicle is sold and is transferable.
WARRANTY COVERAGE:
HONDA ATLAS CARS warrants that it will repair or replace Free of Charge any part it
supplies (excluding tires, batteries and other items which are warranted separately by their
respective local manufacturers) found to be defective either in materials or workmanship, or
both with the exceptions indicated in the Warranty Exclusions here under, provided that the
manufacturer's recommended and required preventive maintenance services and repairs are
strictly followed and the vehicle is utilized under normal condition.
HONDA ATLAS CARS (PAKISTAN) LTD. (HACPL) reserves the sole rights to the final
decision in all warranty matters.
WARRANTY EXCLUSIONS:
The Warranty shall not be applicable in the following cases,
• Any damages which result from neglect of the periodic maintenance specified by
HACPL.
• Any damage which results from repair or maintenance operations by methods other
than those specified by HACPL.
• Any damage which results from use of non genuine parts, or of fuel, lubricant or fluid
not recommended by HACPL.
• Any damage which results from operation other than as specified in the Owner's
Manual, whether intentionally or by mistake.
• Any repair or adjustment performed by persons other than Dealer, or any damage
resulting there from.

• The vehicle which is not registered with the competent government authority.
FEED BACK:
HACPL believe the essence of real service is when a customer feels proud to say "I am
glad to have bought a HONDA" -- mainly because of HACPL quality service. For
customers to become impressed with us HONDA need their continuous feedback to improve
him selves for product and after sales service.
PRODUCT QUALITY:
HONDA ATLAS CARS LIMITED is quality conscious company. That’s why HONDA
ATLAS CARS PAKISTAN LIMITED is the first automobile company in PAKISTAN who
has achieved “ISO 9002” certificate.
PRODUCT DESIGN:
HONDA is a multinational company which operates in different countries. The models that
are introduced in one country are exactly the same in other country. This is because the
design and the technology used to make these cars are set by the Research & Development
Department of HONDA JAPAN, which is the in of HONDA.
Designing process is some through out in the world. In PAKISTAN only the assembling
process is done 42% of the parts are manufactured locally and the remaining 52% parts are
being import from JAPAN.

“The amount of money charged for a product or a service, or the sum of
values that consumers exchange for benefits of having or using the
product.”
One of the four major elements of the marketing mix is price. Pricing is an important
strategic tool because it is related to product positioning. Furthermore pricing affects other
marketing mix elements such as product features, channel decisions and promotion. Pricing
is highly important for an organization because it is the price which the consumers pay in the
end to buy a particular product. So in order to draw money put of consumer’s pockets,
effective pricing should be adopted.
PRICING APPROACHES USED BY HONDA:

HONDA sets its prices based on two pricing approaches.
• Cost- Based Pricing

• Competition-Based Pricing
COST-BASED PRICING:
This pricing approach suggests adding a standard mark up to the cost of the product.
Price of HONDA CARS is fixed and are not negotiable, as they have been devised on certain
rules of cost based pricing by HONDA INTERNATIONAL and HONDA PAKISTAN is
supposed to adhere to those prices strictly.
COMPETITION- BASED PRICING:

It means rate pricing. HONDA sets the prices based largely on its competitor Toyota. So
price settings by HONDA tend to react to the changes in prices of TOYOTA products.
DETAILS OF PRICES BY HONDA:

HONDA offers its variants in different prices. Prices tend to change with the change in
accessories supplemented with any particular model of HONDA CAR. Prices are dependent
on the mode of purchase as well. Outright purchase and leasing have their respective effect
on prices set by HONDA. Prices thus are characterized as:
LEASING PRICES:
We can define leasing as,
“Leasing is a financial instrument enabling the utilization of a given fixed

asset without possessing its ownership.”
Major parties and some brief definitions in leasing are as follows;
LESSEE:
The party that purchases the usage rights of the equipment in leasing transactions against the
rentals determined in advance with the contract, that is the buyer of the owner.
LESSOR:
The party that possesses the legal ownership of the equipment subject to leasing and that
transfers the usage of the equipment to the Lessee against the rentals determined in advance
with a contract that is the intermediary bank involved.
SUPPLIER:

Manufacturer or marketing company providing the equipment subject to the leasing contract
that is HONDA MOTORS.
DETERMINATION OF PRICE:
Price is the only element that produces revenue, all other channels present cost. A company’s
pricing decision is effective by both internal and external factors.
STEP BY STEP PROCESS OF DETERMINING

PRICE:
When we talk of determining the price, a step by step process is undertaken to set the price of
any car by HONDA. We can elaborate on those steps as follows:
1. Develop marketing strategy- marketing analysis is performed, target market is

established and product is positioned.
2. Make marketing mix decisions- the product, distribution and promotional tactics are
determined.
3. Estimate the demand curve- quantity demanded variation with price is studied.
4. Calculate cost- all fixed and variable costs are accounted for.
5. Understand environmental factors- competitors and their competing products are
evaluated and other legal conditions are taken into consideration.
6. Set pricing objectives- for example profit maximization, revenue maximization or
price stabilization.
7. Determine pricing- using information collected in the above steps, a pricing method is
selected and a pricing structure is developed.
Currently for HONDA PAKISTAN all these steps are performed by JAPAN where the head
office of HONDA lies.

PRICING METHODS:
PRICING APPROACH
Cost Based Buyer Based Competition Based
Mark- up Pricing Target Return Pricing

PRICING OBJECTIVES:
HONDA’S pricing objectives are identified in order to determine the most favorable pricing.
Common objectives include the following:
PRICING
OBJECTIVES
PROFIR SALES ORIENTED STATUS-QUO

ORIENTED ORIENTED
TARGET MAXIM. MAX. MAX. STABILIZE MEET

RETURN PROFITS SALES MARKET SALES COMPETITION
VOLUME SHARE

HONDA follows the objectives of:
Current profit maximization- seeks to maximize current profit, taking into account
revenues and costs. It seeks to achieve maximum profits and notable ratio of return on the
capital employed.
Maximize Market Share- HONDA wants to maximize its market share in auto industry
and that is the goal followed by it while setting the price.
FACTORS AFFECTING THE PRICES OF

HONDA CARS:
Certain factors affect the prices set by HONDA from time to time. These may include
• Changes in Yen Rate

• Changes in prices by Toyota
• Increase or decrease in demand- leading to unstable prices in the
market
CHANGES IN YEN RATE:
As the Indus motor company is the subsidiary of HONDA MOTOR CORPORATION

JAPAN and prices are negotiated and settled with the consultation of the parent company, so
they are settled in terms of Japanese currency Yen and then converted into Pakistani Rupee.
So whenever there is a fluctuation in the rate of Yen, the prices of HONDA vehicles change.

The parts of the cars are brought from JAPAN to assemble cars here in PAKISTAN so the
change in rate of Yen affects the cost of these parts and thus the price of the car tends to react
to that.
CHANGES IN PRICES BY TOYOTA:
TOYOTA is the major competitor of HONDA. The change in marketing strategies by

TOYOTA in every dimension forces HONDA to react. One major reaction towards changes
is the reaction towards changes in prices by TOYOTA. HONDA and TOYOTA are thus seen
in price related actions and reactions from time to time.
INCREASE OR DECREASE IN DEMAND:
The demands of cars of HONDA tend to remain unfulfilled in comparison with the supply of
the vehicles. This leads to the unstable prices in market. Prices are announced by company
management and they are supposed to be fixed and non- negotiable unless done so by the
HONDA itself. Yet when we go to the market to buy a HONDA CAR, the situation is
entirely different. We find that prices in the market tend to fluctuate and grow unstable with
the change in demand of consumers.
The consumers buying directly from the authorized dealers of HONDA get the car delivered
to them in 6 months of time after the order processing and payment of the amount. The
consumers who want the car immediately or on a short notice are not able to get the car from
the authorized dealers of HONDA so that they are forced to get the car at a price higher than
the company rate. This can be called in market terms as Premium on prices or ON for the
cars.
The premium on HONDA CARS has become an uncontrollable variable these days.
HONDA has tried every possible means to put an end to this market disturbing factor by
activating a Registration Law, demanding more information from the buyer and finally the
imposition on National Tax Number (NTN).But all these efforts seem to go down the drain
so far and the prices of HONDA vehicles seem to fluctuate largely in the market and cars are

being sold in the market on premium of more than Rs.100000 to Rs.2000000 above the
original company price.
TERMS AND CONDITIONS OF PRICES BY

HONDA:
There are few terms and conditions which need to be known while studying the pricing
procedure of HONDA. Consumers also need to know these conditions as these conditions
directly affect their purchase dealing with HONDA. These conditions can be elaborated as
follows:
• RIGHT OF CHANGING PRICES:

HONDA reserves the right of changing the prices of its vehicles at any time without any
prior notice to its customers.
• CHANGES IN PRICE AFFECTS CURRENT

ORDERS:
HONDA makes the transaction of sale of its cars under the condition that any change in price
at any time would affect the transaction as well. That is, the orders which are already
executed and payment is already made by the buyer and the delivery of the car is yet to be
done and prices change meanwhile the buyer is bound to pay the excess amount if the price
has increased or if the price has decreased he would be refunded the excess amount.

• INTEREST PAID BY HONDA ON THE
AMOUNT:
HONDA facilitates its buyers when it pays the purchase price amount to HONDA and waits
6 months to get the car. This can be perceived as a static amount of money as he hasn’t yet
received the car and money is his but he cannot use it. The buyer could have invested it
somewhere and earn a return on it. So HONDA offers interest payment on this amount after
2 months, from the 61st day, on the current bank rate for the next 4 months so buyer is
facilitated.
• NO RIGHT OF OBJECTION ON PRICES TO

THE BUYER:
The buyer has not been given any right to object on the pricing policies, payment schedule
and fluctuations in prices of HONDA. The buyer has to accept all the terms and conditions
“as is, given and stated by HONDA”

PLACE:
“A distribution channel is the set of people and firms

involved in the transfer of title from producer to
ultimate consumer or business user. While placing
the product the management has to face the many
critic marketing decisions. A company’s channel
decision directly effects every other marketing
decision. For the development of the organization,
proper marketing channel is very necessary.”
OR
Place is the making available of products in quantity desired to as many customers as

possible and to hold the total inventory, transportation and storage costs as low as possible. It
includes selection. Coordination and evaluation of channels; transportation; warehousing;
and inventory control.HONDA sees its distribution system as a key resource. Since it takes
years to build, and it is not easy to change. HONDA’S corporate philosophy revolves around
customer satisfaction which is symbolized in the dealer’s concept:
• Sales
• Services
• Spare Parts

CHANNELS:
Honda uses one level channel for selling its cars. This is done mainly through the dealers that
are of two types:
 2-S
 3-S
2-S Dealers:
These kinds of dealers provide only service and spare parts of HONDA.
3-S Dealers:
These dealers in addition to services and spare parts also offer cars for sale. Their are 18
authorized 3-S dealers all over Pakistan.
LOCATION:
Generally, where 3-S dealers are located 2-S dealers are not designated for that area .It is
only in Lahore that there are both kind of dealer’s .The 3-S dealer is located in Garden Town
where as the2-S dealer is located in Defense Housing Society. The reason for 2-S dealers
arises because in certain smaller cities like Multan, Faisalabad, Peshawar, Larkana, Sargodha
etc there are no centers providing such mechanical and technical services. So this has kind of
negative effect on the sales of the company.

DISTRIBUTION CHANNEL USED BY
HONDA:
The distribution channel used by HONDA is an Indirect Marketing Channel.
It is the marketing channel having one or more intermediaries is called indirect marketing
channel. There is no mark up pricing by the authorized dealers. HONDA sells cars to its
customers by using by the following 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 niches of the interest of the company.
INDIRECT MARKETING CHANNEL OF

HONDA:
HONDA
ASSEMBLING
UNIT
HONDA’S
AURTHORIZED
DEALERS
FINAL
CONSUMER

CHANNEL FUNCTIONS AND FLOWS:
The channel composed of corporate authorized dealers is aimed at performing the following
key functions.
• Development and dissemination of persuasive communications in order

to stimulate purchasing.
• Reach agreement on price.
• Place production requisitions, based on the orders, with the factory.
• They provide for buyer’s payment of bill through banks.
• They assumed risk connected with carrying out channel work.
• They gather information about potential and current customers,
competitors and the other forces in the marketing environment.
CHANNEL FLOWS:

The five channel flows are commonly used.
Practicing in
Channels Flows
HONDA
Yes
Physical flow
Yes
Title flow
Yes
Payment flow
Yes
Information flow
Yes
Promotion flow
CUSTOMER CONVENIENCE
STRATEGIES:
HONDA has evolved some customer convenience strategies like:
• Showroom visit facility for potential buyers: HONDA arranges to give

opportunity to feel and experience the car at their showrooms.
• Complimenting the cars sales, sale of spare parts and auto-servicing are
a part of the authorized dealer’s outlet.

CHANNEL MANAGEMENT DECISIONS:
As explained earlier the distribution for HONDA vehicles is corporate authorized so in order
to keep a check on the efficiency of the channel the company has the following authorities to
exercise and keep the process in track with the organizational objective.
HONDA reserves the right to withdraw a resource or terminate a relationship if any

component of the channel is not working efficiently. It gives extra benefits to distributors and
particularly its sales personnel if their performance is notably excellent.
DEALERSHIP NETWORK:

3S Dealership (Sales, Service, Spare Parts)

2S Dealership (Service, Spare Parts)
Honda Atlas 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.
DETAILS OF 3-S DEALERS:
The 3-S dealers are present in different cities.
Faisalabad Honda Faisalabad (Main Canal Bank Road)
Gujranwala Honda Gujranwala (G. T. Road)
Hyderabad Honda Palace (Shahbaz Town, Jamshoro Road)
Islamabad Honda Classic (Plot 179, I 10/3, Industrial Area)
Honda Classic Lounge (Pak Plaza, Blue Area 1019 Fazal Haq Rd)
Honda Defence (67/1, Korangi Road, Near HINO Circle)
Honda Drive-In (118-C, Rashid Minhas Road)
Karachi Honda Quaideen (2, 33-A-2, PECHS)
Honda Sharah-e-Faisal (13, Banglore Town, Sharah-e-Faisal)
Honda S. I. T. E. (C-1, Main Manghopir Road)
Honda South (1B, Sector 23, Korangi)
Honda City Sales (75B, Block L, Ferozpur Road Gulberg III)

Lahore Honda Fort (32 Queen’s Road)
Honda Fort Lounge (169Y, Commercial Area, Defence)
Mirpur A. K. Honda Empire (Mian Muhammed Road, Quaid-e-Azam Chowk, Mirpur
Azad Kashmir)
Multan Honda Breeze (63, Abdali Road)
Peshawar Honda North (Main University Road)
Sialkot Honda Falcon (112, Azia Shaheed Road)
DETAILS OF 2-S DEALERS:
The 2-S dealers present in different cities. Following are names of these cities.
• Abbottabad
• Bahalwalpur
• Burewala
• Faisalabad
• Karachi
• Azad Kashmir
• Islamabad
• Khanewal
• Gujrat
• Lahore
• Mardan
• Okara

• Rahim Yar Khan
• Rawalpindi
• Sahiwal
• Sargodha
• Sukkar
• Vehari
TRANSPORTATION:
The company does not own trucks so it signs contracts with transport companies for the
delivery of cars. Normally the cars are driven to Lahore but sometimes they are transported
through trailers. The company charges different prices for the delivery of its cars keeping in
view the distance of the place from the factory. The rate list is as follows:
DESTINATIO FREIGHT
N
LAHORE 1500
FAISALABAD 3200
GUJRAWALA 3200
SIALKOT 3200
ISLAMABAD 4500
PESHAWAR 5500
MULTAN 4200
MIRPUR 4500
(AZAD
KASHMIR)
KARACHI 6000
HYDERABAD 5500

INVENTORY:
The level of inventory at any outlet is up to the dealer and it is he, who has to decide about
the number of cars present in the showroom. This decision is based on a number of factors
such as sales, location and distance from the factory. Normally there are 15-20 cars always
present in the stock of the dealer.
WAREHOUSES:
The company itself doesn’t own any warehouses; the cars are kept in the factory. It is the
dealers who own warehouses and they have to decide the number of warehouses required
based on the inventory of the stock.
MARKET SHARE:
Market share means the number of shares a company has in its market as compared to its
competitors. HONDA ATLAS CARS PAKISTAN LIMITED covers a large number of
shares in Pakistani market.

OVERALL MARKET SHARE:
If we consider only the market share of HONDA with its main competitor TOYOTA and
others, the market share is as follows:
COMPANY NAME MARKET SHARE

HONDA 45%-50%
TOYOTA 30%-35%
OTHERS 20%-25%
This market share is for the cars, which are above 1300 cc. But if we consider only the petrol
cars, then according to the recent survey, the share of HONDA is greater than 80%. Others
company like SUZUKI, NISSAN, HYUNDAI and KIA they constitute the 20% of the
market share. But they are below 1300 cc.
BEST SELLING SPOT:

Best selling spot for HONDA CARS is Karachi. The overall percentages of market share of
HONDA in different cities are as follows:
City Name Market Share

Karachi 48%
Lahore 38%
Islamabad 18%-20%
Multan, Faislabad, Sialkot,
7%-8%
Hyderabad

Lahore is the second best selling spot for the HONDA. Low share in other cities like
Multan, Faislabad is because low class resides in these cities. The target market of HONDA
is upper class, that’s why the share is high in big cities and low in small cities.
COMPETITORS:
HONDA is currently facing the three biggest competitors in its class. They compete with
HONDA because of their successful product in the market before the commencement of
HONDA ATLAS in PAKISTAN. These three main competitors are
 TOYOTA
 NISSAN
 SUZUKI
1.TOYATA:
TOYOTA is considered to be the main competitor of HONDA because it is only one

company, which has enough market shares that will directly influence the share of HONDA.
This is because of the fact that TOYOTA has been manufacturing cars much before HONDA
in PAKISTAN and the cars they have been manufacturing since 1993 are much
environmental friendly than any other car manufactured in PAKISTAN, before. Firstly
TOYOTA introduced GLi in both transmission categories i.e. manual and automatic. This
category car having 1600 horse power is the direct competitor of HONDA CIVIC not only
in the technique but also in luxury that they provide and the other facilities and add-ons.
In 1.3 liter car’s TOYOTA can be considered as the market leader before, as it is producing
three different models in this category i.e. GL, XE and XEG. But now with the introduction

of new HONDA CITY 2000, TOYOTA is no longer a leader in the market because of the
Luxury and style provided by the HONDA CITY 2000.
2.NISSAN:
NISSAN is not a direct competitor of HONDA because this company produces 1.4 liter and
2.0 liter fuel & Diesel cars respectively. But because of the big giants like TOYOTA and
HONDA in the market this company cannot compete in the market and loses its share. But
now few months back they launched their new models in the market at low prices as
compared to HONDA and TOYOTA.
3.SUZUKI:
SUZUKI introduced its 1.6-liter car a few years back with the name of Baleno. They
introduced two models GLi and GXi in the market having fuel injection system in the
category of 1.3 liter in competition with HONDA CITY. But HONDA has no fear of them
because of the fact that, HONDA is already the market leader in 1.6-liter class & 1.3 liter
class. According to the recent survey the graph of Baleno 1.6 & 1.3 is continuously declining
because of their competitors like TOYOTA and HONDA.

Promotion is one of the four P’s of marketing mix. Simply stated, promotion is intended
to make a product more attractive to the prospective buyer. A company uses promotion to
provide information for the decision maker’s buying decision process, to assist in
differentiating its products, and to persuade potential buyers. From a marketer’s
perspective, promotion serves three essential roles
It informs
Persuade and
Remind prospective buyers about the company and its products.
Promotion is key ingredient in the product success consists of a diverse collection of

incentive tools, mostly short terms, designed to stimulate quicker and greater purchase of
products or services by consumer or the trade. Through promotional activities, consumer
gets all available products in the market.

PROMOTION MIX:
An effective promotional mix is the critical part of virtually all marketing strategies.
Designing an effective promotional involves a number of strategic decisions as target
audience, objectives of company’s promotion effort, nature of the product, stages in the
product lifecycle and amount of money available for promotion. So, the promotion mix is
the organization’s combination of the following elements which help the company to
achieve its marketing objectives.
Sales force
Sales promotion
Advertisement
Public relations
Direct marketing

THE COMMUNICATION MIX:
The promotion mix of the company is also called the communication mix. In front
of HONDA ATLAS CARS there is a new view of communications as an
interactive dialogue between the company and its customers that takes place pre-
selling, selling, consuming and post-consuming stages. In deciding of the
marketing communication mix, marketers at HONDA must examine the distinct
advantages and cost of each promotional tools and the company’s market rank.
They must also consider the type of the product market in which they are selling,
how ready consumers are to make a purchase, and the product stage in the product
life cycle. Measuring the marketing communications mix’s effectiveness involve
asking members of the target audience whether they recognize or recall the
message, how many messages, and their previous and current attitudes toward the
product and the company.

PROMOTION STRATEGIES OF
HONDA:
PUSH STRATEGY:
The HONDA MOTOR COMPANY is using the promotion program aimed
primarily at middleman. In HONDA the product is push through the channel. The
HONDA MOTOR COMPANY heavily promotes the distributors among different
countries in order to facilitate the customer.
STRATEGY IMPLEMENTATION:
HONDA MOTOR COMPANY

LIMITED JAPAN
HONDA ATLAS CARS

(PAKISTAN) LTD.
DISTRIBUTOR
NETWORK
END CONSUMER

PROMOTION METHODS:
In HONDA, all methods as sales promotion, advertising, public relations, and direct
marketing are used to influence the customer choices.
PROMOTION OBJECTIVES:
The promotional efforts of the HONDA ATLAS CARS are aimed to induce the customer to
buy the product. At first the awareness in the shape of the knowledge about the product
features and facilities is to be provided. Then the customer liking is developed. Preference is
created by distinguishing among other brands through the astonishing features of the
automobiles. Resultantly, strong conviction leads the buyer to purchase the product.
PROMOTION BUDGET:
Establishing promotional budget is extremely challenging job. In HONDA ATLAS CARS
the promotional budget is determined as 25-30% of sales. Dealers or Distributors are also
determined their own promotional budgets (particularly at their outlets) for the promotion of
the company, its product and the outlet as well.
REGULARIZED PROMOTION:
The HONDA ATLAS CARS is doing its promotional activities with the help of 18
authorized dealers all over the country. The dealers are independently working in their own
set ups but they are following the company’s policies and strategies.

SALES FORCE AT HONDA:
The sales representatives are the company to many of its customers. It is the sales reps
that bring back much needed information about the customer. Therefore the company
needs to carefully consider issues in sales force design.
The sales force is regularly trained and different training programs are arranged for them
here in PAKISTAN. Whereas for some highly specialized staff, training programs are
arranged in JAPAN. Their sales force training is conducted on “FABE”.
F= feature
A=advantage
B=benefit
E=evidence
The sales force personnel have to tell the prospective buyers that what are the features of the
product they are offering, what are the advantages and benefits its offering and finally
present evidence of the claims?
STRATEGIES AND OBJECTIVES:

HONDA’S corporate philosophy revolves around customer satisfaction, which is symbolized
in the 3-s concept. HONDA is the pioneer in the 3-s system, which offers sales, services and
spare parts all from the same facility. So taking into account the 3-s concept the human
resource department recruits the sales force and trains them according to the specifications.
The responsibilities and the targets are assigned them on order to be fulfilled .In case if the
performance standards are not met then the workers are to be fired.
The important tasks, which performed by the sales force for the AGC, are as follows:

 Communicating
 Selling
 Servicing
 Information gathering
 Allocating
The sales managers form promotion policies and advise the sales force according to it. The
order taker takes the provisional booking orders. These provisional booking orders numbers
are assigned to the customers to ensure the delivery of the products at the promised right time
to the right customer.
SALES FORCE TRAINING:

The training sessions, courses, papers and presentations are arranged in which the new sales
techniques are introduced to enhance the knowledge of the employees in order to make them
familiar with the contemporary happenings.
The company trains the dealers each month. The lectures are held in Lahore and Karachi; the
dealers from Singh and Baluchistan attend lectures in Karachi whereas dealers from Punjab
and Peshawar are trained in Lahore. HONDA also organizes competitions among the
dealers to measure their performances.
A new technique offered in JAPAN and the managers were invited to learn more.
SALES FORCE STRUCTURE:

The sales force strategy at HONDA has implications for the sales force structure. The
company comprise of three types of sales force structures:
 A strategic market sales force composed of technical, applications and quality

engineers and service personnel assigned to major accounts.

 A distributor’s sales force calling on and coaching HONDA distributors.
 An inside force doing telemarketing and taking orders via phone and fax.
THE STRUCTURE OF HONDA’S SALES

DEPARTMENT:
Sales Manager
Deputy Sales Manager
Assistant Sales Manager
Manager Corporate Sales
Sales Executive
Correspondents of Leasing
Companies

SALES PROMOTION:
Sales promotion is considered as
“Incentive to buy”
And can be described as
“It is a verity of short term incentives to encourage trial or purchase of

a product or service.”
Sales promotion is a key ingredient in HONDA’S marketing campaigns. As it consists of a

diverse collection of incentive tools, mostly short term, designed to stimulate quicker or
greater purchase of products by customers.
BENEFITS OF SALES PROMOTION:

There are three benefits, which the HONDA ATLAS CARS derives from the use of the sales
promotional tools.
1. Communication
2. Incentives
3. Invitation
MAJOR CONSUMER PROMOTIONAL

TOOLS:
In HONDA major promotional tools are as follows:
 Product warranties
 Point of purchase displays and demonstrations
 Adequacy of repair facility

 Customer service follow ups
 Service packages for customers
 Events related to customer prizes
 Free check-up campaigns on regular basis
The warranty is normally given for one year or on 20,000 kilometers drive, which
comes earlier. This warranty is based on the parts replacement.
The demonstrations are also given to the customer in order to aware about the product’s
exclusive features.
ADVERTISING:
Advertising means
“Reasons to buy”
And can be described as:
“Advertising is non personal presentation and promotion of ideas, goods

or services by an identified sponsor.”
The marketing department of the distributors holds HONDA’S advertising. Every distributor
is responsible for its own advertising program.Advertising plays a very significant role in the
promotion of new product. It’s usually more attractive then the other promotional campaigns.
There are different forms of advertisements that a company performs according to the nature
of the target market. The purpose of advertising is to introduce the customer by the new
product and to give the information about the existing product.

FEATURES OF ADVERTISING:
The features of HONDA’S advertising are as follows:
1. Public presentations (advertising’s public nature confers a kind of legitimacy on

the product and also suggest the standardized offerings)
2. Pervasiveness (permits the sellers to repeat a message many times)
3. Amplified expressions (advertising provides opportunities for dramatizing the

company and its products through the artful use of print, sound and color.)
4. Impersonality (the audience does not feel obligated to pay attention or respond to
advertising.)
FIVE M’s OF ADVERTISING:

The marketing force at HONDA make the five major decisions about the advertising
program which they want to develop and execute in order to make familiar the customer with
the company’s product.These major five decisions are called as five M’s of advertising.
Mission
Money
Message
Media
Measurement

MISSION:
The advertising mission normally comprises of the sales and advertising objectives.
“An advertising goal is a specific communication task and achievement

level to be accomplished with the specific audience in a specific period of
time.”
HONDA’S ADVERTISING MISSION:

The company’s advertising mission is stated as follows:
“Focusing on the “satisfaction” (customers, associates and the

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.”
This is based upon the company’s policy that whether the company wants to inform,
persuade, remind or reinforce the customer about its products.
MONEY:
The authorized dealers of HONDA spend almost 10% of their sales for the advertising of
their outlets, product of the company and the company itself.

STAGE IN PRODUCT LIFE CYCLE:
This budgeting is based upon the stage in the product life cycle as the ATLAS COMPANY’S
products like HONDA is in the stage of early maturity so the distributors are spending this
much amount of sales money for the advertising purposes.
MARKET SHARE AND CONSUMER BASE:

As high market share brands usually require less advertising expenditure as a percentage of
sales to maintain share. On a cost per impression basis, it is less expensive to reach
consumers of a widely used brand than to reach consumer of low share brand. HONDA has
already gained a market share of 48%.
MESSAGE:
Another important aspect of advertising is message communication for which an advertising
agency puts all its efforts. The procedure of message communication is completed through
several different steps.
DEVELOPMENT OF A CREATIVE STRATEGY:

Steps followed:
1. Message generation
2. Message evaluation and selection
3. Message execution
4. Social responsibility review

STEP 1(Message Generation):
The advertising agency uses a deductive framework for generating advertising messages.
This agency decides the number of alternative ad themes to be created before making a
choice. The more ads that are independently created, the higher the probability of finding an
excellent one. The more time spend by the advertising agency tends towards higher costs.To
cut down the costs the ad agency prepares the feasibility report through market research in
which the company’s expenditure and consumer responses are analyzed.
STEP 2(Message Evaluation And Selection):

Messages can be rated on desirability, exclusiveness and believability. The ads agency after
finding an effective appeal prepares a “creative brief.”It is an elaboration of the positioning
statement and includes key message, target audience, communication objectives, benefits to
promise and the media to be used.
OBJECTIVES OF AN EFFECTIVE MESSAGE:

 To do
 To know
 To believe

STEP 3(Message Execution):
The message’s impact is not only depends upon what is said but often more important on
how it is to be said. Effective ads are positioned in two ways:
EFFECTIVE POSITIONING
Rational Emotional
Positioning Positioning
These both two methods of positioning are used for executing messages by the ads agency,
which works for the HONDA ATLAS CARS.
STEP 4(Social Responsibility Review):

The HONDA ATLAS CARS are ensuring the safe promotion of its product through their
advertising agency and assuring not to harm social and legal norms.
MEDIA SELECTION:
The media planner in the company uses both the electronic and print Medias in order to
communicate the promotion message to the prospects. No yellow journalism is there.
According to the different surveys this method has quite good effects on the sales of
HONDA. Now-a-days company uses all these Medias for the promotional purposes by time
to time.

The following Medias are covered under the pre-described two categories:
TYPES OF MEDIA
Electronic Media Print Media
Electronic media includes:
Television
Direct mail
Internet
Print media includes:
Newspaper
Magazine
Brochures
Newsletters
COMMUNICATION MEDIUM:
The media preferred by HONDA is news papers especially the English one. This is due to the
fact that mostly the buyers are not PTV watchers .It does not advertise on satellite, as the
advertising cost is much too high, they would prefer to cut down the prices instead of
spending millions of rupees on ads. At one time they used to advertise on prime time. The
timings were 7:40 pm & 9:40 pm because maximum people are watching television at these
times.

MEASUREMENT AND EVALUATION OF
EFFECTIVE ADVERTISING:
The company makes both the communication effects research and sales effect research in
order to determine the message’s impact. The most important measure of the company’s
effective message evaluation is CONSUMER FEED BACK. The questions which are
asked by the company are as follows:
1. What is the main message you get from this ad?

2. What do you think they want you to know, believe or do?
3. What works well in the ad and what works poorly?
4. How does the ad make you feel?
5. How likely is it that this ad will influence you to undertake the

implied action?
HONDA’S ADVERTISING MESSAGE:
“THE POWER OF DREAMS”

Or
“REALIZING YOUR DREAMS”

PUBLIC RELATIONS:
Public relation involves
“A variety of programs designed to promote or protect a company’s

image or its individual products.”
At HONDA the PR department monitors the attitude of the organization’s public relations
and distributes information to build good will. The PR departments spend time counseling
top management to adopt positive programs and to eliminate questionable practices so that
negative publicity does not arise in the first place. The PR department established by the
distributors receives complaints from the customers and then these complaints are transferred
to the HAC head office so that suitable actions are taken by the company in order to resolve
customer’s problems. HONDA ATLAS is engaged in different programs to promote the sales
through public relations. For public relations they participate in different types of programs
to increase the interest of public and to introduce their now product via these promotional
campaigns.
FEATURES OF PUBLIC RELATION:

The appeal of public relation is based on three distinctive qualities:
1. High credibility
2. Ability to catch buyers off guard
3. Dramatization

FUNCTIONS PERFORMED BY PUBLIC
RELATION (PR) DEPARTMENT AT HONDA:
They perform the following functions:
Corporate communication
Press relation
Product publicity
Counseling
MAJOR TOOLS IN PR:

The major tools which are used in establishing public relations as follows
TOOLS IN PR
Newsletters Annual Report
In this regard they are also following the strategies of Relationship Marketing. It can be
described as:
“Building mutually satisfying long term relations with key parties”

DIRECT MARKETING:
Direct marketing is the consumer direct channel to reach and deliver goods and services to
consumer without using marketing middlemen. These channels include direct mail, websites,
catalogs, interactive TV and mobile devices. The HONDA ATLAS CARS is using all the
astonishing elements of this fastest growing avenue of consumer servicing. The company
seeks the measurable response; typically a consumer’s order that why this is some times
called direct-order marketing.
DISTINCTIVE CHARACTERISTICS OF
DIRECT MARKETING:
HAC shares four distinctive features of direct marketing:
1. Nonpublic (the message is normally addressed to a specific person.)
2. Customized (the message can be prepared to appeal to the addressed individual)
3. Up-to-date (a message can be prepared very quickly)
4. Interactive (the message can be changed depending on the person’s response)
CHANNELS OF DIRECT MARKETING

ADOPTED BY HONDA:
1. Direct mail
2. Websites
3. Catalog marketing

DIRECT MAIL:
The company involves in direct mail marketing i-e sending an offer, announcement, reminder
or other item to the consumer through fax mail, e-mails, and voice mail.
WEBSITES:
The websites of the company are also used in enhancing the customer’s view about the
product, as the complete information of features and facilities is available on the Internet.
One of the websites is as follows:
www.honda.com.pk
It is regularly updated and maintained according to the specification.
CATALOG MARKETING:
In this regard the company sends full line product catalogs usually in print form but also
sometimes as CD’s, videos or online.
EVENTS:
Different events are arranged from time to time for the promotion of sales of HONDA
CARS. Like in FEBRUARY 2003 a basant festival had been arranged on the rooftop of
PEARL CONTINENTAL, where they provided all the beverages, kites, food etc. It was such
a success that in the month of MAY it was booked by the counterparts of HONDA for the
next basant.
A rally from Islamabad to Bhurban was also arranged by HONDA in which any car of
1300cc and above (only HONDA) was allowed to participate. The idea behind this rally was
to promote the safety of motorists. The theme of the rally was “wear seat belts---your
family loves you”. Fashion shows are also held from time to time for the promotion of

HONDA. All these are the “Model Launch Event” and the “Brand Building
Event”.
ANNUAL SURVEYS:
HONDA ATLAS CARS PAKISTAN LIMITED arranges the annual surveys in which
different activities are done:
1. Customer Satisfaction
2. Market Share
3. Customer Choice
a. Reading Habits
b. TV Watching Habits
4. Brand Survey
5. Social Group
6. Education Level
7. Market Trend

FINANCIAL ANALYSIS:
BALANCE SHEET:
AS AT MARCH 31, 2005
2005 2004
Rupees Rupees
EQUITY AND LIABILITIES:
SHARE CAPITAL AND RESERVES:
Capital
Authorized
750,000,000 750,000,000
75,000,000 Ordinary shares of Rs.10 each
Issued, subscribed and paid up 420,000,000 420,000,000

Reserves 1,579,500,000 1,512,000,000
Unappropriated profit 94,914,000 178,735,000
2,094,414,000 2,110,735,000
LONG-TERM Liabilities:
Staff Retirement Benefits - -
CURRENT LIABILITIES:
Finances under mark-up arrangements-secured - -
Creditors, accrued and other Liabilities 9,693,653,000 4,884,388,000
Dividends 4,716,000 4,037,000
9,698,369,000 4,888,425,000
CONTIGENCIES AND
COMMITMENTS:
11,792,783,00
6,999,160,000
0

2005 2004
Rupees Rupees
ASSETS:
FIXED CAPITAL EXPENDITURE:
Property, Plant and Equipment 649,244,000 492,329,000
Intangible Assets 15,927,000 33,656,000
665,171,000 525,985,000
Capital Work-in-progress 28,832,000 73,685,000
694,003,000 599,670,000
OTHER LONG TERM ASSETS: - -
Long Term Investments 758,419,000 750,000

Long Term Loans and Deposits 36,060,000 25,229,000
Deferred Tax Assets 17,814,000 44,604,000
812,293,000 70,583,000
CURRENT ASSETS:
Stores and Spares 22,878,000 19,546,000
Stock-in-trade 3,159,153,000 1,708,539,000
Trade Debts - -
Loans, Advances, Deposits, Prepayments and other
1,230,469,000 1,085,913,000
Receivables
Cash and Bank Balances 5,873,987,000 3,514,909,000
10,286,487,000 6,328,907,000
11,792,783,00
6,999,160,000
0

PROFIT AND LOSS ACCOUNT:
FOR THE YEAR ENDED MARCH 31, 2005
2005 2004
Rupees Rupees
Sales 16,587,217,000 9,358,369,000
Cost of Goods Sold 16,304,182,000 8,602,391,000
Gross Profit 283,035,000 755,978,000
Administration and Selling expenses 199,495,000 160,968,000
Operating Profit 83,540,000 595,010,000
Other Operating Income 197,190,000 73,083,000
280,730,000 668,093,000
Other Operating Expense 16,145,000 45,612,000

264,585,000 622,481,000
Finance Cost 5,956,000 2,288,000
Profit before taxation 258,629,000 620,193,000

Taxation 96,450,000 211,510,000
Profit after taxation 162,179,000 408,683,000
Earnings per share-basic and diluted (rupees) 3.86 9.73

CASH FLOW STATEMENT:
FOR THE YEAR ENDED MARCH 31, 2005
2005 2004
Rupees Rupees
Cash flow from operating activities
Cash generated from operations 3,893,225,000 3,097,056,000
Financial charges paid (5,960,000) (2,280,000)
Long term deposit (784,000) 100,000
Income tax paid (155,142,000) (316,122,000)
Staff gratuity paid (5,110,000) (4,014,000)
3,468,976,00
Net cash Inflow from operating activities 2,638,566,000
0
Cash flow from investing activities
Fixed capital expenditure – tangible (269,233,000) (243,361,000)
Fixed capital expenditure – intangible (3,282,000) (22,684,000)
Sale proceeds of fixed assets 8,213,000 1,921,000
Interest received 84,337,000 47,323,000
Net cash Outflow from investing activities (932,077,000) (240,473,000)
Cash flow from financing activities
Dividend paid (177,821,000) (146,160,000)
Net cash (Outflow) from financing activities (177,821,000) (146,160,000)
2,359,078,00
Net Increase in cash and cash equivalents 2,251,933,000
0
Cash and cash equivalents at beginning of 3,514,909,00

1,262,976,000
the year 0
5,873,987,00
Cash and cash equivalents at end of the year 3,514,909,000
0

SWOT ANALYSIS:
SWOT analysis is a simple framework for generating strategic alternatives from a situation
analysis. It is applicable to either the corporate level or the business unit level and frequently
appears in marketing plans. SWOT stands for Strengths, Weaknesses, Opportunities and
Threats. The SWOT framework was described in the late 1960’s by Edmund P. Learned, C.
Roland Christiansen and William D. Guth in business policy. The general electric growth
council used this form of analysis in the 1980’s. Because it concentrates on the issues that
potentially have the most impact, the SWOT analysis is useful when a limited amount is
available to address a complex strategic situation.
STRENGTHS:
• The image of the company is well established.
• HONDA is offering comfort, power and style with its vehicle.
• It delivers the genuine parts with the 6 month unique warranty.
• It uses latest technology and luxurious interior in the vehicles.
WEAKNESESS:
• The booking procedure is too long, as it takes done 6 months to get the orders
delivered.
• If the cars are required at a short notice then the distributors or the intermediaries
involved take a considerable amount of premium on the actual price.

OPPORTUNITIES:
• The HONDA Company can expand the network of its distributors all over Pakistan.
• The company can enhanced its image at international level through the provision of
more sophisticated facilities in their product.
• Through the annual dinners and other ceremonies arranged by the company the
distributors are able to interact their more and more prospective customers.
THREATS:
• A threat is in the form of premium which the distributor are taking from the
customers and thus disturbing credibility of Honda about stability of prices.
• The economic environment is characterized by more uncertainty and it respond more

to the international scenarios.

PEST ANALYSIS:
A Pest analysis is an analysis of the external macro-environment that affects all firms.
“P.E.S.T. is an acronym for the Political, Economic, Social, and

Technological factors of the external macro-environment.”
Such external factors usually are beyond the firm’s control and sometimes present
themselves as threats. For this reason, some way that “PEST” is an appropriate term for these
factors. However, a change in the external environment also creates new opportunities and
the letters sometimes are rearranged to construct the more optimistic term of step analysis.
POLITICAL ANALYSIS:
POLITICAL STABILITY:
The political stability in the past years has been below the desired level. The developmental
policies formulated by one government are replaced by the next government before they are
implemented.
TRADE REGULATIONS AND TARIFFS:

There have been quotas, tariffs and high restrictions on the foreign trade. With effect from
January 2005 the trade is expected to grow very rapidly.

ECONOMIC ANALYSIS:
TYPE OF ECONOMIC SYSTEM IN THE

COUNTRIES OF OPERATIONS:
There is a mixed economic system prevailing in PAKISTAN.
GOVERNMENT INTERVENTION IN THE FREE

MARKET:
Government is intervening only in a limited industries and the remaining are run under the
free market mechanism.
EFFICIENCY OF FINANCIAL MARKETS:

The efficiency of the financial markets is improving over the last two decades and is believed
to improve much fast in next few years.
BUSINESS CYCLE STAGE:

Business cycle stage in PAKISTAN is the mirror reflection of that in other advanced
countries like USA. After the 9-11 crisis there was a recession in USA which started
spreading its effects on Pakistan also just in the hours. So the business cycle stage is
recession.

ECONOMIC GROWTH RATE:
The growth rate according to the federal bureau of statistics can be viewed by measuring
GDP growth. The GDP growth was 6%.
SOCIAL ANALYSIS:
DEMOGRAPHICS:
The official sources say that the population of Pakistan is growing at the rate of 2.1% per
annum and the population for the year 2003 is estimated to be 149 million.
HEALTH:
The present health infrastructure with 906 hospitals. The availability of 101.6 thousand
doctors 98.204 thousands hospitals beds in the country which in term of population-doctor
ratio works out to be 1466 persons per doctor and 1517 persons per hospital bed so much
more efforts need to done to improve health care and preventive services.
TECHNOLOGICAL ANALYSIS:
RECENT TECHNOLOGICAL DEVELOPMENTS:

The government is according higher priority to the information technology (IT) sector. Core
IT policy strategies have been proposed for many focus areas.

TECHNOLOGY’S IMPACT ON PRODUCT
OFFERING:
As the technology is changing the buying behavior of the prospects changes and also the
changes in the product mix and promotion mix take place.
We can say that the number of macro-environmental factors is practically infinite. In
practical terms, HONDA must prioritize and scrutinize those factors that influence its
industry. Even so, it may be difficult to conjecture future trends with an acceptable level of
accuracy. In this regard, HONDA may turn to various techniques to deal with high levels of
uncertainty in the important macro-environmental variables.

OVER VIEW AND SUMMARY OF THE
HONDA ATLAS CARS PAKISTAN
LIMITED:
HONDA ATLAS CARS COMPANY is a joint venture between HONDA MOTOR
COMPANY JAPAN and ATLAS GROUP OF COMPANIES PAKISTAN LIMITED. In
HONDA ATLAS CARS COMPANY PAKISTAN, HONDA MOTOR COMPANY
LIMITED JAPAN has 51% shares in this joint venture, so the main profit shares as well as
designing, development ideas and costs are bear by HONDA MOTOR COMPANY JAPAN
LTD.
Where as in another joint venture b/w these two companies ATLAS GROUP OF
COMPANIES have 51% shares. This joint venture is for the manufacturing of HONDA
MOTORCYCLES. ATLAS GROUP of companies receives more % of profits.
In all over the world, engines of almost of all kinds of product HONDA is a “GIANT”
manufactures in the engine industry. HONDA produces boats also.

PRODUCT LINE OF HONDA
JOINT VENTURE B/W

Honda (51%) &atlas
Joint venture b/w Honda
Honda &Atlas (51%) Japan
CARS
Honda Honda Honda

Generators Boats
Civic City motorcycles

OUR ANALYSIS:
HONDA ATLAS CARS COMPANY PAKISTAN LIMITED is really well known motor
vehicle company. We found no contradiction when we compare the statement of HONDA
staff with general dealers and customers.
HONDA ATLAS CARS, especially consumer’s cars, sells due to brand name of HONDA.
So HONDA is enjoying a sound reputation in the market. HONDA cars regarded as # 1 due
to high quality engines and several other features. Where as, the most efficient cars (diesel
cars) are being produced by HONDA’S important competitor “TOYOTA”.
HONDA has contributed a lot in gas efficient cars, by introducing the HONDA CIVIC
HYBRID, stand at # 2 after the TOYOTA in gas efficient cars. The prices of the few models
of HONDA ATLAS CARS are lower as compared to the prices of their competitors.
HONDA ATLAS CARS maintains quality standards. Most of the depreciation is
computerized. Products are manufactured according to scientific standards.
HONDA ATLAS CARS gives priority to consumer satisfaction and it is the constant
endeavor of the HONDA ATLAS CARS OF PAKISTAN is to
“Achieve the # 1 customer satisfaction”
HONDA made heavy engine cars, 1600 cars first introduced by the HONDA (JAPAN).

SUGGESTIONS:
After visiting this organization and go through our analysis we are at the position to give
some suggestions:
 HONDA ATLAS CARS should add more product line because it can cash its
reputation.
 HONDA ATLAS CARS should explore new market.
 HONDA ATLAS CARS should work on the more improvement in its product
line .i.e. cars (both city and civic), generators, and boats.
 HONDA ATLAS CARS should restructure its policies.
 HONDA ATLAS CARS should improve in producing the gas efficient cars.
 HONDA ATLAS CARS conducts its business responsibly in a way to make

sure Health, Safety and Protection from the environmental aspects of its
associates and the society.


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HONDA ATLAS CARS PAKISTAN LIMITED is a joint venture between HONDA

Institute of Business Administration 1

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It is the constant endeavor of HONDA ATLAS CARS (PAKISTAN) LIMITED to achieve

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HONDA vision to position itself in Auto industry is stated by

Focusing on “satisfaction” (customer’,

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HONDA'S ENVIRONMENT STATEMENT:

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• We will make efforts to recycle materials and conserve and energy at

• We will make every effort to minimize and find appropriate methods to

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Our environmental philosophy is firmly based on the following guidelines.

• Recognize the impacts of the significant aspects on the environment resulting

• Formulate objectives and targets for pollution prevention, environmental

• Operate in compliance with relevant environmental laws, regulations and other

• Create environment friendly attitude among associates.

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• Manufacturing high quality products.

• Maintain market leadership.

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• MANAGEMENT POLICY:(respect, man power

• HONDA ATLAS CARS (PAKISTAN)

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• SAFETY ,HEALTH AND

• OPERATING PRINCIPLES:(always keep the

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Mr. Yosuf h. shirazi

Mr. Satoshi okamoto

Mr. Amir h shirazi

Mr. Motohide sudo

Mr. Hiromi mizutani

Mr. Jawad iqbal Ahmad

Mr. Takashi otsuki

Mr. Raffat iqbal

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A. F. Ferguson & co.

Cornelius lane & mufti

Abn amro bank

Habib bank ltd.

Askari commercial bank

Citi bank n.a.

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The bank of Tokyo –Mitsubishi

43 KM, MULTAN ROAD,

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Date Year Events

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Paint shops extended with capital investment of Rs.185 million.10th Anniversary of

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“The set of marketing tools that the firm uses

4 P’s OF MARKETING MIX by

• There are literally dozens of marketing mix tools.

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“It is a set of attributes assembled in an identifiable form.”

It can be defined as every want satisfying attribute a consumer receives in making an

“Price is amount of money and /or other items with utility

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Bucklin - Theory of Distribution Channel Structure (1966)