United Auto Industries (PVT.) LTD.: Motorcycles

UNITED AUTO INDUSTRIES (Pvt.) Ltd.
Motorcycles
Motorcycles
Presented To : Mr Tauqir Ghauri
Presented By : Saif (6), Sufyan (8),

Mateen (1), Umer majeed (10)
Program : BBA (Hons) 3rd semester
Department : Management sciences
The Islamia University Of Bahawalpur

Bahawalnagar Campus
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PREFACE
Assignments, Term reports and Internship programs are the vital
teaching techniques of The Islamia University of Bahawalpur
B.B.A (hons) program.
The aim of such activities is to develop a knowledge gain
approach in students along with their studies.
In order to fulfill this purpose department assigned us project of
UNITED AUTO INDUSTRIES (Pvt) Ltd Lahore being the
private largest private Company in Pakistan
We have tried our best to make this report comprehensive to
provide information about the strategic and functional areas of
UNITED AUTO INDUSTRIES (Pvt) Limited.
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DEDICATION:-
DEDICATED TO ALL THOSE WHO
LOVE ALLAH OUR RESPECTED
PARENTS OUR RESPECTED
TEACHERS AND OUR CLASSMATES.
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Table of Contents
1. Acknowledgement
2. Introduction
3. Vision & Mission
4. Aims & Objective
5. Management of United
6. Managerial Roles which is apply at UNITED
7. Management Functions that is performed at
UNITED
8. Bibliography
9. Marketing of United
10. STP
11. Marketing Mix
12. Bibliography
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Acknowledgement
All praise to Allah Almighty, who created the universe and bestowed mankind and
gave us strength and abilities to complete this project.
We express our gratitude from the very inner core of our heart to the Holy Prophet Hazrat
Muhammad (peace be upon him)
who enable us to recognize our creator and he is forever a torch of guidance and knowledge
for entire human being .
we would like to submit our deepest gratitude to our parents, whose prayers always supported
in every task of our life and our teachers,
who really guided us to enhance our knowledge in UNITED AUTO INDUSTRIES (Pvt.) Ltd.
Lahore.
To accomplish whatever we have done in our project, there were many people along the way
who have been responsible for guiding us, advising us, encouraging us.
To them, we deeply grateful and would like to take this opportunity to offer we heartfelt
appreciation.
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Introduction
United Auto Industries Pvt Ltd. came into existence in 1999. In begning we introduced the
Rikshaw body with the Brand name UNITED.
In 2001We have introduced durable and economical 4-stroke motorcycles with the brand name
of UNITED.
Our manufacturing & assembling plant is situated at 1-km off Kot Radha Kishan road, Multan
road, Bhai Pheru Lahore, Pakistan.
At present our production capacity is 200,000 units per year. by the grace of Almighty Allah, our
products got a very favorable response in the market.
Our Factory is accommodated on a land measuring 720,000 Sq Ft and covered area of the factory
is about 156,000 Sq Ft.
We have a team of professionals in all departments such as marketing & sales, quality control,
production and finance & Accounts.
We have a comprehensive network of sales, service and spare parts in almost all over the Pakistan
which is
increasing day by day.In Plant we have 300 Employees working in one shift 8 hours and 1000
bikes assembled.
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Vision Statement
Our vision is to see the world as wonder full place to live, where technological
wonders may help mankind to enjoy peaceful life. UNITED AUTO INDUSTRIES
(Pvt.) Ltd. Must be a partner to the technological advancement for the delight of
mankind.
Mission Statement
Our mission is to establish Hi-Tech base to develop capability enough to adopt latest
technology for innovation and production of sophisticated products of international
standards at affordable price to serve local and global market.
Quality Policy
Excellence in quality is the core value of UNITED philosophy. TQM is in place in
all of our manufacturing processes from acquisition of raw material to delivery of the
product and follow-up until the consumption professionals from each field are
committed to ensure quality, precision and efficiency.
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Aims & Objectives:

To provide high level of customer service through:
1. Continuous improvement in plant to ensure better quality of products.
2. Continuous training of staff to develop more customer oriented marketing Attitude.
3. Well-Developed dealership network and very efficient logistics system to ensure
prompt delivery of products to the intermediaries and end user.
Core Values:
Integrity : Capability with honesty.
Excellence : Production, Marketing, Delivery.
Respect : Employees, Customers, Intermediaries, Stakeholders.
Enablers : Capacity building of employees through creating positive
Environment, Training.
Empowerment: Responsibility with compatible authority.
Societal : Contributors for well being a society.
Obeying the Law

UNITED Limited is committed to comply with the laws and regulations of Pakistan.
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Management
of
United
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Managerial Roles which is apply at UNITED

•Interpersonal roles:
•International & local experienced employees.
•Informational Roles:
•Vast experience of relevant fields.
•Decisional Roles:
•Positive & timely decision
Managerial Skills at UNITED

•Technical Skills
•Every manager has a knowledge and proficiency in a specific field.
•Every manager has an ability to work well with other people.
•Conceptual skills
•Every manager has an ability to think creatively, analyzing complex situations,
understanding issues and soling problems concerning the organization.
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.Management challenges which is faced by UNITED

•Uncertain economical situation.
•Unstable political environment.
•Energy crisis.
•Devaluation of currency.
•Highly competitive market
Culture of UNITED
•Values and beliefs are shared
•Low employee turnover.
•Culture is properly descriptive.
Management view of UNITED

•UNITED management believes in Omnipotent view of management.
Managers are directly responsible for UNITED’s success or failure
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Management Functions that is performed at UNITED.

•PLANING
Setting organizational goals and established strategies for achieving those Goals, UNITED
Also established strategic and operational plan for achieved the goals.
Goals of UNITED
Quality
To ensure that our products and services meet the set standards of excellence.
Technology
To develop and maintain distinct business advantages through continuous induction of
improved hard and soft technologies
Why UNITED do Plan?
Because they believe planning provide direction, it can reduce uncertainty, Planning minimize
waste and redundancy, and finally due to controlling they control.
Two types of Plans are used by UNITED:
Strategic Plans : Plans that apply to the whole organization. UNITED also use Strategic level
plans for the success of UNITED AUTO INDUSTRIES.
They Set the targets and use strategic plan to achieve them. Strategic Plans involves in Long
term Objectives that UNITED wants to achieve. Capture more 10% share in market in next
year.
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Operational Plans : plan that encompass particular area of the organization. Every
department in UNITED work on Separate plan, Every department have different task for
achieving those organizational goals, so they work on operational level.
Approaches to setting goals:
In UNITED set the traditional goals by top managers and flow down the organization and
become sub goals for each organizational area. They believe top managers know what best
because they see Big Picture.
FUTURE planings:
In 2015 5 lakh unit sold
150cc bike launched near
INSHAALLAH Launched commercial car till 2016.
Parts department.
Strategic Management:
Strategic management is what top management do for organizational strategies.
Its very important for UNITED because they’re plans for how the organization will do
whatever it’s in business to do, how it will complete successfully. Who should decide what it
took to finish.
UNITED Use the corporate level strategy because every year they decide to what types of
product that company is in or want to be in.
So in corporate level they use growth strategy.
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SWOT Analysis
Strengths:
•Strong brand image.
•Strong dealer network..
•Strong after sales service.
Weaknesses:
•Lack of advertisement.
•System variations.
•Lack of product planning.
•Low income of people
Opportunities:
•Increase in product range.
•Export opportunity.
•Rising population.
•Strong positioning
Threats
•Increase in competitor
•Increase Taxes by Govt.
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United auto industries overall place at Questioned mark because his growth is rapidly increase but
Less market share then HONDA. They have many opportunities for become market leader by
increasing his investment.
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•Organizing
Managers create the structure of working
relationship between organizational members that
best allow the to work together and achieve goals.
In united they set the structure of organization after
planning for achieving those goals.
Organizational hierarchy of United:-

Managing
Director
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Director Director Plant

Director Marketing Finance
and sales
Finance
Production
manaager
Manager
Lhr. Regional
sales and marketing
manager
Lahore Regional
finance manager
Multan Regnional
sales and marketing
manager
Multan Regional
finance manager
sales and marketing
Karachi
manager
Karachi Regional
sales and marketing

manager Finance manager
Rawalpindi rwp region
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Organization Structure:
United auto industries develop the organizational structure
that contains lines of authority and responsibility for
members that also shows who’s report to whom. They think
this structure coordinate and motivates employees so that
they work together to achieve UNITED goals.
Organizational Design of UNITED:
•Work specialization
Work specialization is High in UNITED because they hire
specialized worker for each department to maintain the
quality of product. In plant where assembling of parts every
person specialized his work. UNITED believes work
specialization is best way to improve efficiency.
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•Departmentalization
UNITED divided whole organization in different departments for
efficiency. They divided into :-
•Functional Departmentalization(Finance, Marketing, Production)
•Geographical Departmentalization (Lahore region, Multan

Region, Karachi Region, Rwp region)
•Process Departmentalization (Inventory, Production, Finished

Goods, Paint shop)
•Customer Departmentalization(They deal with only Dealers).

In UNITED they using Cross Functional Team when they required.
At AGM all cross functional team members together and established
strategies for next years.
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•Chain of Command
UNITED set the lines of authorities extending from upper organizational
to lower level. That show shows who have authorities and who have
responsibilities.
•Span of control
Narrow span of control because 4-6 people work under the one Lower
level manager. And there is no concepts of dual bosses because each
person report only his managers and manager report to upper level.
•Centralization VS Decentralization
High centralization because top management best to known whats best
for UNITED. UNITED is very large organization lower level managers
do not want a say in decisions. But Some of middle level management
Also a part of decision making.
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•Formalization
In united Formalization is very high because tightly controlled by
Top management and defines rules, policy and procedure for
every work activities. In rules and policies UNITED set the limits
and boundries for lower level management and set the procedure
each and every work.
Mechanistic Versus Organic:
In mechanistic high specialization, rigid departmentalization, clear
chain of command, narrow spans of control, Centralization, High
Formalization.
In Organic Cross functional team, cross hierarchal team, Free flow
of information, wide span of control, Decentralization, Low
Formalization.
In beginning UNITED is Organic But with the passage of time its
became Mechanistics.
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Flow of communication at UNITED

Upward and downward flow
•In UNITED, the flow of information is strictly
downward.
•The decision at upper level is implemented
throughout the company.
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•Leading
• Proper vision & directions of team leader.
•Working with and through people to accomplish goals.
•Head office mainly leads all departments regarding their function. All
the sub ordinate department officers lead the related department and
employees and loyal to the head office for their working. There is check
and balance situation for every department.
• Head office mainly leads all the related department of the split units.
Trading department is mainly the leader in split unit case for importing it
and direct reliable to the head office. For leading it also give its
requirement to its head office for finance and for the quality control of
the product.
•UNITED believes the outcome of the Leading is a level of motivation.
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•Controlling
•Monitoring, comparing and correcting work
•Due to controlling managers of UNITED evaluate how well the
organization is achieving its goals and targets and take corrective action
to improve performance. Managers will also take action to increase
performance as required.
•Managers of UNITED think Controlling is the main functions after
making the previous steps. Managers of the each department control its
own department working and are liable to the managing director.
•There is check and balance situation. In controlling, monthly and
annual basis analysis are made.
•In controlling of the split units, trading department mainly control the
import of the split units. It checks the quantity of the units and quality
control department checks the quality of the split units before launching
it in the market.
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Marketing
of
United
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Segmentation and Targeted Customers of UNITED:

• Age life style
• Income Low income
• Geographic Ruler & Urban Areas
• Target Males
• Classes Lower class
Niche Marketing:
Launching special person bike is a part of niche marketing.
Positioning Strategy
The UNITED perceptually positioned itself as a brand of price
competitive and quality products. The physical positioning of
UNITED US70cc bike is on low price.
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Competitive Advantages:
UNITED offering consumers greater value, either through
lower prices or by providing more benefits that justify higher
prices.
Selecting overall positioning strategy:-
THE SAME FOR LESS:
UNITED offering the same for less can be powerfull value
proposition everyone likes a good deal then other HONDA
70cc bike price is 72000 PKR UNITED 70cc Bike price is
40000 PKR in market.
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4p,s of UNITED :
•Product
Anything that offer to the customer is product or
services.
UNITED Auto Industries offer Bikes and Auto
Rikshaw to his customers and also offer services after
sales for customers.
Now we see the all products of UNITED that offer to
market.
Products of UNITED:
•70cc Motorcycle Euro2
Specially for youngsters that want to fullfil their basic
transport need.
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•125cc Motorcycle Euro2

Specially for Those people who loved to fly
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•100 cc Motorcycle Rikshaw

4 stroke rikshaw affordable for driver then other
rikshaws good quality of body.
•200cc CNG Auto Rikshaw

Specially for unemployed and rikshaw driver and CNG
because it can save money of drivers and more profitable
for them.
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•70cc Motorcycle for special

persons
Specially for those person who are not able to
drive because united is carefull for whole people
that lived in community.
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We choose UNITED Bikes.

Product line:
Here are bikes that UNITED offer.
•70cc euro2
•100cc
•125cc euro2
•70cc for special person
Market share:
UNITED holds 30% share in Pakistan.
UNITED is market challenger. But they are try to become Market leader so their future plan is
capture more 10% share.
Product classification
It is a Shopping Product because consumers didn’t frequently purchase and planning & effort also
involve at the time of purchasing.
Three Levels f UNITED Products and services:
Core benefit: Transport
Actual product: Good Quality of product, high feature and attractive design to more satisfy the
customers need.
Augmented Product: After sale services , warranty and installation that more satisfy customers.
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Product Services and decisions

Product attributes:
UNITED provide Quality of product and also Concentrate on providing good design, style and
competitive features.
Branding:
Brand is name , term, symbol that identifies the product. Name of UNITED and its symbol is
very unique.
Logo of UNITED:-
Packaging
Packaging provide protection. In UNITED we used different covers that provides the
protection to parts of bikes.
Product support services:
Customer services is another element of product strategy. UNITED offer usually
includes some support services likes free tuning , warranty , and free check up
campaigns.
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The new product development process in UNITED
commercializati
Market Development Business analysis product development
Idea Generation Idea screening on
strategy
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•Idea Generation:
They use internal and external sources to identify what type of model
required in market and what want to be launched in future. Mostly they
collect ideas from his dealers. Because they are touch with markets needs
every time.
•Idea screening:
in idea screening they reduce ideas and drop poor ideas and test the idea
in different ways it can profitable for company or not. Did UNITED have
resources to develop.
•Concept Development:
Is the new product is meaning of target customers. For example
UNITED special person Bikes is how special how benefits for special
person and what characteristic of new bike.
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•Market Development strategy:

Design market strategy for new product what outcome till one year and
how.
•Business Analysis:
did UNITED have resources to develop and is this profitable for
company and did UNITED set the affordable price for new product
after the cost.
•Product Development
After screening they develop the new model in physical model in
ordered to ensure that the product idea can be turned into a workable
product. In UNITED no need to test and concept testing because they
believes that new model they launched it will satisfy the customers.
•Commercialization:
After development they introduce new model in market at large scale
and organize seminars for product and also free test ride programs are
arranged by UNITED.
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Product Life Cycle according to 2014 Models

and Present position.
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Product Development : stage when company invest money and not

gain profit
Introduction: in introduction stage no earn profit 70cc speial person
rikshaw are place at introduction stage because it launched in 2014.
Growth: it is profitable time for company in this 100cc is going on
growth and generate a profit.
Maturity: now 70cc is place at maturity because it gave UNITED Huge
amount of profit and now enter in maturity but in 2014 after launching
the new modle of 70cc its begin with ne PLC.
Decline: united 125 place at decline and that passed away from Fad
period.
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•Price
Price is charged for a product or services to customers. Price is
competitive tools for UNITED.
UNITED sold his product line items at different prices.
70cc euro 2 40000PKR
New product Pricing Strategies
Market penetration prices:
UNITED follow the penetration strategy for new product. Because
when they launched new model set the low price to attract the customer.
They adopt penetration pricing strategy according to quality & features
of their product.
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Product Mix pricing strategies:

Product line pricing:
setting price steps between product line items. UNITED do not follow
this. Because its all product line items sold on different products.
Optional Price:
Pricing optional products sold with the main product. UNITED charged
different price if optional thing sold with main product For example
UNITED sold Rikshaw body for 70cc.
Captive-product pricing:
United set the minimum price of product that use with main product for
example Fuel tank of united charged at 1200PKR, head Lights charged at
450 PKR.
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Price Adjustment strategies

Discount and Allowance Pricing:
UNITED gave the promotional allowance to Channel members and charged less if they
ordered 30 bikes and also gave to his dealers incentives.
Segmented Pricing:
There is no segmented price for any customer each and every customer pay same price
on 70cc.
Promotional Pricing:
Temporarily reduce prices for Limited offer when launched new product.
Geographical Pricing:
UNITED adjusted different prices to the geographical location of customers. In Lahore
70cc 38500PKR , Southren Punjab 39500 PKR, Multan region 70cc 40000 PKR.
In which they use zone pricing.
International Pricing:
UNITED exports his bikes to South africa and Bangladesh and set the different prices to
them so in international trade they use different pricing because here many factor
involve for to do trade.
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•Place
Channel of distribution:
Well UNITED has a great supply chain. Which is also a unique plus point of it.
UNITED has about 190 Dealers in Pakistan so UNITED is serving in all over the
country.
Indirect Market Channel:

It is a channel with one or more intermediary level. The general public can
buy UNITED products through distributors. UNITED has been network Regional
sales force is connected with distributors.They offer them incentives, schemes for
cost sales and always adopt policies in response to competitors. In United only one
channel member Between UNITED and cutomer. Because they do Business to
Business Marketing.
.
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Number of marketing channel members:

Intensive marketing system used by united because they want
to stocking the product in as many cities of different areas as
possible.
Responsibilities of channel member:

•Follow the conditions for sale
•Agree on price policies
•Care full about new resellers
•Work in territory
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which Logistics function used by UNITED?

Transportation :
The choice of transportation carries affects the pricing of products,
delivery performance and condition of goods when they arrive all of
which affect the customer satisfaction. Truck transportation use by
UNITED in Pakistan. They also used Intermodal Transportation in which
they use Air + Truck for Bangladesh and south Africa.
Integrated Logistics Management:
Third party logistics:
UNITED have no its own supply chain they use 3PL.
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•Promotion
Promotion Mix
•Advertising:
The objectives of advertising are:
To increase sales.
To increase recall of products.
To restore message in consumer’s mind
They use sign boards, tv media for advertising.
•Sales promotion:
UNITED believes short term incentives encourage to dealer
purchase more bikes. It Also increase company sales.
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Bibliography
Head Office Lahore
75-E Maulana Shaukat Ali Road,
Johar Town, Lahore - Pakistan.
Tel: 0092-42-35201881-3
Fax: 0092-42-35201884
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UNITED AUTO INDUSTRIES (Pvt.) Ltd.

Presented To : Mr Tauqir Ghauri

Presented By : Saif (6), Sufyan (8),

Program : BBA (Hons) 3rd semester

Department : Management sciences

The Islamia University Of Bahawalpur

Aims & Objectives:

Obeying the Law

Managerial Roles which is apply at UNITED

Managerial Skills at UNITED

.Management challenges which is faced by UNITED

Management view of UNITED

Management Functions that is performed at UNITED.

Organizational hierarchy of United:-

Director Director Plant

sales and marketing

•Geographical Departmentalization (Lahore region, Multan

•Process Departmentalization (Inventory, Production, Finished

•Customer Departmentalization(They deal with only Dealers).

Flow of communication at UNITED

Segmentation and Targeted Customers of UNITED:

•125cc Motorcycle Euro2

•100 cc Motorcycle Rikshaw

•200cc CNG Auto Rikshaw

•70cc Motorcycle for special

We choose UNITED Bikes.

Product Services and decisions

The new product development process in UNITED

•Market Development strategy:

Product Life Cycle according to 2014 Models

Product Development : stage when company invest money and not

Product Mix pricing strategies:

Price Adjustment strategies

Indirect Market Channel:

Number of marketing channel members:

Responsibilities of channel member:

which Logistics function used by UNITED?

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