atlas honda feasibility report

5/25/2018 Atlas Honda Feasibility Report

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Atlas Honda Motorcycle Company BRMReport

INTRODUCTION

Atlas Auto Limited manufactures and markets Honda Motorcycle under a technicalassistance agreement with Honda Motorcycle Company LTD. Of Japan. An epoch-makingevent in the history of the company cementing of Atlas Honda relation with HondaMotorcycle Company LTD. Of Japan becoming as equity-holder in Atlas in 1988.

Due to the suitability wide range and high quality of the product, Honda motorcycles are byfor the best selling motorcycle in the country. Turnover has risen from Rs. 2.5 million in1965 to Rs. 830 million in1987.

Pakistans motorcycle market size is still relatively quite small Nevertheless. Atlas hasundertaken to develop local manufacturing capabilities to the highest-level economicallyfeasible while a major role in localization has been assigned to vendor industries. Atlas hasinvested Rs. 197 million in fixed assets between 1983 and1987 to develop the country largestin house manufacturing capacity in the industry. By end of 1988 local component will goupto 70% of Atlas product.

Atlas management is strivings to modernize company operation by adapting applicableaspects of research and theory and more especially Hondas philosophy and practices to therealities of Pakistani Conditions Company management structure and processes are beingtransferred to meet challenges of growth and change.

Effort are being made to develop genuine participation of all levels of personnel in decisionmaking; substantial and effective delegation has been established at all level variousparticipation programmes, such as Alaymayar quality circles movement launched in 1985are supported to encourage constructive self expression and team work. The companytraining and development programmes encourage each member to develop himself to hisfull potential.

To support the production facilities the company has established a R&D wing and toolmaking facilities which are set to grow rapidly in size and function.

Atlas is playing a pioneering role in creating conditions for easy and confident use of

motorcycle all over the country. A vast network of motorcycle, service and share partsdealers has been established to provide dependable service to every motorcycle user. Toback up this system, Atlas has set up a permanent motorcycle technical training center inLahore which provide several courses of varying duration and complexity for motorcyclemechanics user each year. Mobile training facilities take the latest know how on technologyand maintenance of motorcycles to major rural centers around the country.

ORGANIZATION HISTORY


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The established year of Atlas Autos Limited in 1963. In 1964 Atlas entered into technicalassistance agreement with Honda Motorcycle Company of Japan for manufacturing andassembly of Honda Motorcycle in Pakistan. It is the only Public Limited Company in theindustry of Pakistan. Atlas Autos Limited operate two plants one at Panjdarys SheikhpuraRoad Lahore. Both Plants are franchises and have relationship of technical collaboration.

MANAGEMENT OF ATLAS AUTOS

In 1964 Atlas autos started business as assembler of Honda Motorcycle, than they came intothe business of import Honda spare parts.

The organization set up of Atlas is as follows:-

A Board of Director consists of 7 members, elect a chairman, chairman has all managerialauthority.

Chairman is selected out of directors and It is the responsibility of chairman to conduct the

business on a satisfactory line and maximize the profit.

After the chairman then comes C.E.O (Chief executive officer). Then for assistance ofchairman and C.E.O personal manager, accounts manager, production manager andmarketing manager are selected.

Seven managers are working under C.E.O each manager is responsible for respectivefunction.

There are two sales managers one for North Zone and one for south Zone. In the every zonetwo provinces.

In the North Zone come Punjab, NWFP and Azad Kashmir. In south zone Sindh andBaluchistan. In north zone there are three regions.

1- Lahore

2- Multan

3- Rawalpindi

The head of every region is regional manager.

RESEARCH OBJECTIVES

The main purpose of my research is:-

v To Visualize and identify these factors that contribute to the demand of Honda Motorcyclein Multan city (Punjab, Pakistan).


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v To recommend suggestion to increase the demand of Honda Motorcycle and getting muchmarketing share.

RESEARCH DESIGN

Research design is the arrangement to condition for collection and analysis of data in amanner that aims to combine the relevance to research purpose with economy in procedure.

Measurement

For the measurement of attitude of people, We used open-ended questions as well as fixedalternative questions in our questionnaire.

Sampling

The basic idea in sampling is that the analysis of some of the element in the populationprovide useful informations about entire population. An element is the subject on which the

measurement is being taken. It can be called as the unit of study. Population is the totalcollection of element about which we wish to make increase.

For the selection of sample, we used the stratified sampling. We divide the Mutlan city into4 regions which are given as under:

1. Gulgasht

2. Hussain Agahi

3. Shah Rukan Alam

4. Cantt

After dividing the Multan city into different region. The we used random sampling andselect 25 respondents from evry region. Our target respondents are the customers anddealers of Honda Motor Cycle.

Sample Size

Dealers and customers of Honda Motor Cycle are easily available, so it is easy to select a bigsample size. For the purpose of our research We selected a sample of 100 customers and 3dealers of Honda Motor Cycle, because of the time constraint thats why we selected thesecustomers and dealers.

Data Collection Method

The report is based on primary data. Information are directly taken form the customers anddealers of Honda Motor Cycle for the particular purpose. For that purpose we developed twoquestionnaire ( for customers and dealers ).


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We have conducted personal survey method. The main qualities of this survey method areas fellows:

1. The most important features of this method is that it leads towards high participation.Moreover, in personally interview the interview can carry with additional informations.

2. The props and visual aids can also enhance the vision of knowledge of interviewer. Theinterviewer has more control over the personal interview than other interrogation types.

3. The greatest value of this method is the depth and detail of information that can besecured. It for exceeds in volume and quality, the information we can usually secure fromtelephone and mail survey.

4. The interview can do more things to improve the quality of the information received thanwith other methods.

Respondent motivation is heavily in the hand of the interviewer. Studies of reaction to a

number of surveys indicate that respondents can be motivated to participate in personalinterviews.

Medium of Communication

All the users of Honda Motor Cycle are not educated. So we adopt different style.

For educated persons we use the same questionnaire.

But for uneducated persons we translate the questionnaire for them.

Questionnaire

For

Consumers

Q.1: What is your Occupation?

REPONSES % AGE

Student 15 15%

Govt. Employee 40 40%

Business man 20 20%Others 25 25%

Total 100 100%


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Conclusion:

In our respondents 15 persons are students, 40 are Govt.Employee, 20 business man and 25are related to other occupation. From this result we can say the users of Honda Motorcycleare Govt.Employee and Other occupation.

Q.2: What is your Income Group?

REPONSES % AGE

5000-10000 30 30%

11000-15000 40 40%

16000-20000 20 20%

21000-25000 8 8%

26000-above 2 2%

Total 100 100%

Conclusion:

The respondents whose income is 5000 to 10000 are 30, 11000 to 15000 are 40, from16000 to 20000 are 20, from 21000 to 25000 are 8 and finally 26000 and above are only 2.So we can say that the user of Honda Motorcycle is middle family people so it is bike ofeconomical people.


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Q.3: What is your preference?

RESPONSES % AGE

Yamaha 0 0%

Honda 100 100%

Suzuki 0 0%Total 100 100%

Conclusion:

We have interviewed just those persons who are driving Honda Motor Cycle so preferencefor this sample comes to 100%.

Q.4: You yourself purchased it?

RESPONSES % AGEYes 92

No 8

Total 100

Conclusion:


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Out of a sample of 100 respondent 92 were of the view that they personally purchased thebike and 8 said that is give to them by their company. So it means that 92% people havepurchased the bike personally which 8% people got it from their company.

Q.5: When did you purchase Honda Motorcycle?

RESPONSES % AGE

Before 1984 0 0%

1985-1990 10 10%

1991-1995 20 20%

1996-2000 25 25%

After 2000 45 45%

Total 100 100%

Conclusion:

When we asked this question to respondent, out of 100, 10 were those who purchasedduring 1985-1990, 20 were those who purchased during 1991-1995, 25 were those whopurchased during 1996-2000 and finally 45 were those who purchased after 2000 so we cansay that the market or demand of latest model is more than others.

Q.6: Why you purchase Honda Motorcycle? Because of

RESPONSES % AGE

Fuel consumption 58 58%

Less Noisy 0 0%

Parts Availability 0 0%All of the above 42 42%

Total


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Conclusion:

Out of 100 respondents, 58 persons said that they preferred Honda Motorcycle due to fuelconsumption, and 42 persons say that they purchase Honda motorcycle because of all thesequalities which mention are present in the motorcycle. So we can say mostly peoplepurchase Honda motorcycle because of Fuel consumption.

Q.7: have you used any other brand of Motorcycle?

RESPONSES %AGE

Yes 45 45%

No 55 55%

Total 100 100%

Conclusion:

When we asked this question, 45 respondents said that they used other brand of motorcyclewhile 55 persons told us that they never used any other brand of Motorcycle.

Q.8: If yes then what is the reason of change?

RESPONSES %AGE

Fuel consumption 40 88.888%


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Spare part availability 0 0%

Any other mention 5 11.111%

Total 45 100%

Conclusion:

In response to this question 40 respondent said that they have change previous motorcyclewith Honda motorcycle because petrol average per liter of previous motorcycle is very low ascompared to Honda motorcycle and 5 respondent said that any other mention like theremachines are not easily available and etc.

Q.9: What is average coverage of your Motorcycle per liter?

RESPONSES %AGE

40-50 15 15%

51-60 60 60%61-70 25 25%

71-80 0 0%

Total 100 100%

Conclusion:


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In the regard of this question, 15 person said that their bike cover 41-50 km per litter while60 respondents said 51-60,and 25 respondent said 61-70. So I can say it is a main factor ofHonda bike.

Q.10: Do the spare parts easily available?

RESPONSES %AGE

Yes 100 100%

No 0 0%

Total 100 100%

Conclusion:

When I asked this question, response to this question is 100% in favor. The respondentssaid they have to never face any problem because the spare parts of Honda Motorcycle areeasily available. So it is also a main cause that Honda motorcycle has an edge on other

Motorcycle.

Q.11: Do you think that fuel consumption affect your purchase decision?

RESPONSES %AGE

Yes 91 91%

No 9 9%

Total 100 100%


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Conclusion:

In the response of this question all respondent said that fuel consumption affect theirpurchasing decision. They said we can save our money. Because expense of this motorcycleis less as compare to other motorcycle.

Q.12: If Yes then how much?

RESPONSES %AGE

Very much 60 65.94%

High 20 21.98%

Low 0 0%

Normal 11 12.1%

Total 91 100%

Conclusion:

Out of 100 respondent 60 said that fuel consumption affect their decision very much while20 said that it is high affect on their decision. While 11 said that fuel consumption hasnormal affect on their decision.

Q.13: Do you think the price of motorcycle affect your buying decision?


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RESPONSES %AGE

Yes 56 56%

No 44 44%

Total 100 100%

Conclusion:

In the response of this question, 56 respondent are those said that price affect theirpurchasing decision while other 44 respondent told that price does not affect theirpurchasing decision.

Q.14: If yes than up to what extent?

RESPONSES %AGE

High 32 57.15%

Normal 22 39.29%Low 2 3.58%

Total 56 100%

Conclusion:


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Out of 56 respondents are those who said that price affect their purchasing decision, 32persons said price has high affect while 22 respondent said that price has normal affect andfinally 2 respondent said that it has low affect on their buying decision.

Q.15: Do the mechanics easily available for the repair of Motorcycle?

RESPONSES %AGE

Yes 100 100%

No 0 0%

Total 100 100%

Conclusion:

When we asked this question the entire respondent said that mechanics are easily availablefor the repair of Honda Motorcycle. So it is also a main factor that Honda Motorcyclecaptured the market and spread all over the country.

Q.16: What is the resale value of Honda motorcycle after four years?

RESPONSES %AGE

More then half price 70 70%

Equal to half price 29 29%

Less than half price 1 1%

Total 100 100%


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Conclusion:

Honda Motorcycle is a cash deposit bike. You can cash it at any time. When we asked aboutthe resale value all respondent said that they preferred Honda Motorcycle because it will besold more than half price. Some respondent said that they sold Honda motorcycle more

than their original price. So it is an important factor of Honda Motorcycle.

Q.17: What is the performance of its shocks?

RESPONSES %AGE

Very good 25 25%

Good 55 55%

Normal 20 20%

Bad 0 0%

Very Bad 0 0%

Total 100 100%

Conclusion:

In response to this question, 25 respondent said V.Good, 55 said Good and 20 people saidthe performance of shocks is normal. So we can say that the over all performance of shocksis good.


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Q.18: What is the performance of its engine?

RESPONSES %AGE

Very Good 25 25%

Good 70 70%

Normal 5 5%Bad 0 0%

Very Bad 0 0%

Total 100 100%

Conclusion:

25 respondents said that performance of engine is V.Good 70 respondent said good while 5

person said normal. So it is a main cause due to which Honda Motorcycle captured themarket.

Q.19: How is its electric system (cdi) ?

RESPONSES %AGE

Very Good 14 14%

Good 40 40%

Normal 45 45%

Bad 0 0%

Very Bad 0 0%

No (cdi system) 1 1%Total 100 100%


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Conclusion:

14% respondent said V.Good, 40% said good and 45% respondent said Normal electricsystem and 1 respondent said that he has no cdi system I his motorcycle. So over all we cansay that Honda electric system of Honda Motorcycle is good.

Q.20: How is the pick up of Honda Motorcycle?

RESPONSES %AGE

Very Good 5 5%

Good 20 20%

Normal 75 75%

Bad 0 0%

Very Bad 0 0%

Total 100 100%

Conclusion:

5% people said that pick up of Honda Motorcycle power sV.Good, 20% saidgood and 75% respondent said its pickup is normal. From this result weconclude that Honda motorcycle is economical bike for the people.

Q.21: Is it a balanced bike?


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RESPONSES %AGE

Yes 100 100%

No 0 0%

Total 100 100%

Conclusion:

From 100 respondent all the respondent said that it is a Balanced Bike. So we can concludethat it is balanced bike.

Q.22: Have you seen any Advertise of Honda Motorcycle on TV or any other media likeNewspaper, journal etc?

RESPONSES %AGE

Yes 80 805No 20 205

Total 100 100%

Conclusion:


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Out of 100 respondents 80 says that they have seen the advertisement of Honda motorcycleand 20 says that they havent seen it. So we can say that most of the people have seen theadvertisement of Honda Motorcycle.

Q.23: Whether the advertisement of Honda Motorcycle is Impressive?

RESPONSES %AGE

Yes 30 37.5%

No 50 62.5%

Total 80 100%

Conclusion:

In the response of this question 37.5% respondent said that advertisement of Honda CD 70is impressive while 62.5% said that it is negative. So, we can conclude that advertisement isnot good of Honda motorcycle.

Q.24: Do you thing the advertisement affect your purchasing decision?

RESPONSES %AGE

Yes 10 12.5%

No 70 87.5%

Total 80 100%


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Conclusion:

Out of 80 respondent 10 said that advertisement affect their purchasing decision while 70

said advertisement has no affect on their buying decision.

Q.25: Do you think the market value affect your purchasing decision?

RESPONSES %AGE

Yes 95 95%

No 5 5%

Total 100 100%

Conclusion:

95% respondent said that market value affect their purchasing decision while 5% said in No.Honda motorcycle is such motorcycle which we can sell it at any time. So it is a main causeHonda motor has an edge on other motorcycle.

Q.26: Are you satisfied with company after sales service?


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RESPONSES %AGE

Yes 75 75%

No 25 25%

Total 100 100%

Conclusion:

In the regard of this question 75 respondents said that they are satisfied with after salesservice while 25 respondents said that they are not satisfied.

Q.27: Have you any suggestion about motor cycle to the company?

RESPONSES %AGE

Yes 30 30%

No 70 70%

Total 100 100%

Conclusion:


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30 respondents give different suggestion they said that company make it heavy, Improve theequality make it innovative reduces the prices of spare parts etc. while 70 respondents giveno suggestion.

Q.28: What is your education?

RESPONSES %AGE

Metric 10 10%

F.A. 30 30%

B.A. 40 40%

Masters 20 20%

Uneducated 0 0%

Total 100 100%

Conclusion:

In our respondent 10 are Metric, 30 are F.A. 40 B.A. and 20 respondents are in masters. Sowe can say educated people mostly used it.

Questionnaire

For

Dealers

Q.1: Why you preferred the dealership of Honda Motorcycle?

RESPONSES %AGE

Incentive to dealers 0 0%

Easily dealership available 0 0%

Much sale 3 100%

Total 3 100%


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Conclusion:

Out of 3 dealers, all of them preferred the dealership of Honda motorcycle because its sale ismore than other motorcycle.

Q.2: How is the security requirement for its dealership?

RESPONSES %AGE

High 1 33.333%

Low 0 0%

Normal 2 66.667%

Total 3 100%

Conclusion:

1 respondent said that its security requirement is high, while 2 respondent said that securityrequirement is normal.

Q.3: How much the incentive given to you?


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RESPONSES %AGE

Very much 2 66.667%

Much 0 0%

Normal 0 0%

Less 1 33.333%

Total 3 100%

Conclusion:

2 dealers said that for its dealership a very much security is required and while 1 say thatless security is required for its dealership.

Q.5: Do you advise your family members, friends to purchase it?

RESPONSES %AGEYes 3 100%

No 0 0%

Total 3 100%

Conclusion:


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When we asked this question from dealers, the response is 100%. They said that which thingthey sale they must advertise for it.

Q.6: Why people purchase it? Because of

RESPONSES %AGEFuel consumption 2 66.667%

Spare parts availability 0 0%

Four stroke 0 0%

All of above 1 33.333%

Total 3 100%

Conclusion:

In response to this question, 2 dealers said that people purchase it due to fuel consumption,and 1 dealer said that people preferred it because all these qualities are in this motorcycle. Itis a four stroke, spare parts easily available and also fuel consumption is less as compare toother motorcycle.

Q.7: Do you check the bike before its sale?

RESPONSES %AGE

Yes 3 100%

No 0 0%

Total 3 100%


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Conclusion:

In response to this question all dealers said that they check the bike before its sale.

Q.8: How much are your monthly Sale?

RESPONSES %AGE

1-10 0 0%

11-20 0 0%

21-30 3 100%

Total 3 100%

Conclusion;

In reply to this question all the dealers said that their monthly average sale is between 21-30.

Q.9: How much profit you get on the sale of a bike?

RESPONSES %AGE

1000-2000 0 0%


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2001-3000 3 100%

More than 3000 0 0%

Total 3 100%

Conclusion;

All the dealers said that there profit is between 2001-3000 from the sale of each motorbike.

Q.10: What is the behavior of its user about it?

RESPONSES %AGE

Good 0 0%

Very Good 3 100%

Normal 0 0%

Total 3 100%

Conclusion:

All the dealers said that the behavior of customers is very good towards Honda Motorcycle.

Q.11: What step you have taken for its promotion?


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RESPONSES %AGE

Not taking steps for

its promotion

0 0%

Motivating the

people & suggestion

to the company

3 100%

Total 3 100%

Conclusion:

We are taking too many steps. We are increasing sales promotion effort. We are alsoincreasing the advertisement of Honda Motorcycle. We are also tried to motivate the peopleto purchase it. We held seminars with the help of company and also use P.R and tell thepeople its advantage.

Conclusion

Conclusion

After conducting the research we can say that Honda motorcycle is successful and popularin people because of the following reasons:

Spare Parts Availability:

The spare parts of Honda motorcycle is easily avilavble in the market. If some fault occursand due to that fault customers has to replace a particular parts, Which is easily available in

the market, so customer has to face no problem. It is a main factor due to which Hondamotorcycle is too much popular.

Resale Value:

The customers are strongly satisfied with the resale value of Honda motorcycle. The usercan easily sale it more that half price at which he purchased. Some time the user of Honda


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Motorcycle sale it greater that price at which they purchased so it is a fact users agree withits resale value.

Petrol Average:

The petrol average of Honda motorcycle is also very good. In the beginning its average isvery good and more than 70 km per litter. After some time its average decrease but not toomuch. The minimum petrol average of Honda motorcycle is 50 according to our survey. It isa very good petrol average.

Service And Maintenance:

The mechanics are easily available for the repair of motorcycle and they also trained in theirwork. So consumers have to

Face no problem of service and maintenance.

After Sale Service:

The company gives free service after sale of motorcycle. Due to this customers are satisfiedwith its after sales services.

Pick up:

The pick up power of Honda Motorcycle is good. The pick up power of other motorcycle isvery low as compare to Honda Motorcycle.

4Strokes:

This quality of Honda Motorcycle make this product different from others motorcycle. It isonly 4 stroke motorcycle.

Electric System:

The electric system of Honda Motorcycle is also to much affective.

Design:

The management of Honda motorcycle changes the design of motorcycle at the time. HondaCompany introduced or replaced 113 models of motorcycle with in 18 months, othercompanies are not able to introduce new model so quickly. Due to this factor Hondamotorcycle is popular.

Others:

When we asked questions to the customers about the bike, most people said that it is abalanced bike. They showed satisfaction on the meter performance, shocks reliability andspeed.


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One more factor we felt during our survey is that mostly students and Govt. servant likeHonda motorcycle and it is more popular in highly educated person the age group 20-25

years and income Rs3000 to 5000.
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atlas honda feasibility report

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