FINAL REPORT

Submitted to: Sir Santosh Kumar

Group members: Hajra Javaid

Haris Hassan

Faisal Hayat

Atif Mateen

Mahwish Sultana

Section: BBA 2C

Subject: Marketing Management

Date of submission: 8-01-2011

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ACKNOWLEDGMENT

All glory and honor is for Allah, the Supreme Being who bestowed profound perseverance and ability on us to accomplish this work.

We express our profound and cordial gratitude to offer thanks to our learned, kind and experienced teacher, HONOURABLE SIR SANTOSH

KUMAR, for his valuable guidance, constructive comments and continuous encouragement throughout the research.

DEDICATED TOWe dedicated our work to our honorable

Parents, respectable teachers and

Group Exalters specially ALI ABBAS, whose

Magnificent cooperation and

Support encourages us to achieve this.

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TABLE OF CONTENTS

ABSTRACT……………………………………………………...1

INTRODUCTION……………………………………………..2

ORGANOGRAM……………………………………………..5

MARKETING MANAGEMENT APPLICATION………………………………………………….6

RECOMMENDATION……………………………………..21

CONCLUSION………………………………………………..21

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ABSTRACTWe group falcons of BBA 2C visited Atlas Honda LTD and had a meeting with marketing manager SIR SAIM. We collected information about all the products, services, and marketing strategies. They cooperated with us a lot and helped us out to collect and analyze the data.

We have provided the introduction along with the brief history of company then organization chart of marketing department of atlas Honda. After that we gave all the strategic marketing implied by company on products, services and all the promotional and competitive activities.

We had a great time over there enjoyed a lot environment was very friendly and they helped us in a very cooperative manner.

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INTRODUCTIONAUTOMOBILE INDUSTRYThe auto market is one of the largest segments in world trade. The annual size of automotive export trade in the world has grown to a massive level of over US$ 600 billion, which accounts for about 10 per cent of the world export. Changing models, improving fuel efficiency, cutting costs and enhancing user comfort without compromising quality are the most important challenges of the auto industry in a fast globalizing world. Hence there is a need for exploring the industrial complementarities in the region for better quality, favorable costs, fuel efficiency and attractive designs. Therefore, the requirement of information exchange in the region is much more pronounced now than ever before for keeping the auto industry afloat and competitive.

Automobile Industry of PakistanThe existing population of automotive vehicles in Pakistan is 3.9 million. The annual demand is estimated at 300,000, two thirds of which is being met from local sources and imports and the remaining one third is left unmet. The market value of automotive vehicles in dollar terms is estimated at more than 1 billion, out of which import constitutes around US$ 200 million. The aftermarket of auto parts is estimated at US$ 500 million, imports and local production taken together.

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ATLAS HONDA LTD.

BRIEF HISTORYAtlas Honda Limited (AHL) is a joint venture between the Atlas Group and Honda Motor Co. Ltd., Japan. The company was created by the merger of Panjdarya Limited and Atlas Autos Ltd. in 1988. Both these motorcycle manufacturing concerns were established by the Atlas Group. In addition, a third concern, Atlas Epak Ltd. was taken over by the Government of Bangladesh in 1971 after the fall of Dhaka. AHL manufactures and markets Honda motorcycles in collaboration with Honda Motor Company. Honda motorcycles are by far the largest selling motorcycles in the country with an unmatched reputation for high quality, reliability and after-sales-service.

Mission A dynamic growth oriented company through market leadership, excellence in quality and service and maximizing export, ensuring attractive returns to equity holders, rewarding associates according to their ability and performance, fostering a network of engineers and researchers ensuing unique contribution to the development of the industry, customer satisfaction and protection of the environment by producing emission friendly green products as a good corporate citizen fulfilling its social responsibilities in all respects.

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Quality Policy Commitment to provide high quality motorcycles & parts Right work in first attempt and on time Maintain and continuously improve quality Training of manpower and acquisition of latest technology Safe, clean and healthy environment Market leadership and prosperity for all.

AHL BOARDChairman Yusuf H. Shirazi

Chief Executive Officer Saquib H. ShiraziDirectors Masahiro Takedagawa

Nurul HodaSanaullah QureshiSherali MundrawalaHisao Kobayashi Koji Takamatsu

Company Secretary Rashid Amin

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MARKETING MANAGEMENT APPLICATION

STPD OF ATLASSEGMENTATIONAtlas Honda LTD is segmenting the market according to mobility needs of customers. Better convenience along with safety ride these are basic need of today`s customer in terms of transportation. Atlas Honda is focusing to segment the market according to these needs.

TERGETINGAtlas Honda is targeting three types of segments:

Middle aged group with average income who wants convenient family bikes.

Youngsters who want adventurous bikes. High class youngsters who want classy looks bikes.

POSITIONINGThe basic position of Atlas Honda in the mind of customers is branding. Brand name is important for strong positioning and atlas is successful in creating a strong brand. Second thing due to which atlas is considered

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as market leaders of bikes is quality. They provide better quality that`s why when it comes to bikes the first name strike in mind is Atlas Honda.

DIFFERENTIATION

The basic difference point of atlas is of quality they provide best quality. And along with product after sale service also proved their plus point of gaining customer`s attention. Other then this they are targeting all the groups of bikers due to which they are capable of capturing high market share.

MARKETING MIX….4P`SPRODUCTSCompany is offering four products in market:

CD 70 CD 100 CG 125 CG 125 DELUXE

SERVICESThey provide after sale services including:

1 year engine warranty 6 months parts warranty

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1. HONDA CD 70 HONDA CD 70 is a family bike for middle aged average income group of people. It’s a largest share gaining bike with long term durability and reliability.

KEY FEATURES

» Big and Comfortable Seats » New Beautiful Graphics» Petrol Tank with 9 Liter Capacity» Super Economy Power, 4-Stroke Engine» New Mud Flap» Strong Side Cover with Lock» New Utility Box

2. HONDA CD 1OO HONDA CD 100 is a centre of two products i-e CD 70 and CG 125..but this product didn’t proved to be the best of Honda.

KEY FEATURES

» Strong Footrest » Fuel Gauge Indicator» Multi Reflector Head Light» Winning Style» Economy Power 4-Stroke Engine

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3. HONDA CG 125 CG 125 is an adventurous bike for enthusiastic youngsters. With its unique and captivating looks along with high speed gained attention of many youngsters.

KEY FEATURES

» Comfortable Seat with Rear Grip » New Beautiful Petrol Tank with Graphics» Strong 4-Stroke Smoke Less Engine» Stylish Speedometer with Economy Zone» Elegant Front Light» New Shape For Back Light

4. HONDA CG 125 DELUXE HONDA CG 125 is an outgoing premium bike newly introduce by atlas Honda. This product proved best of all at introduction stage and gained niche of 5%.

KEY FEATURES

» Attractive Fuel Tank with modern graphics » Speedometer with trip meter » Tachometer with Fuel Gauge Indicator » Black painted silencer with stylish cover » Front hydraulic disc brakes

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PRICEATLAS HONDA always used one pricing strategy i-e

HIGH QUALITY & HIGH COST = PREMIUM STRATEGY

The prices of their products are as follows:

CD 70: 64500 CD 100: 71900 CG 125: 87500 CG 125 DLX: 109900

But price strategy of atlas is not considered as a good working strategy. Discount and allowances are not included in company`s policy. One fixed price is setup at the time of manufacturing of product and that is not altered afterwards it remains fixed.

Atlas bikes are also selling on credits by distributors and mainly 80% to 70% sales are done on credits.

PROMOTIONAtlas is not up to mass advertisement. They only promote product at introduction stage after that advertisement level decreases.

SALES PROMOTION

They are not doing massive sales promotion. No direct marketing and no personal selling technique is used by atlas. Only advertisement is done at small scale.

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ADVERTISMENT

Advertisement strategies are used when product is at introduction stage. Following are some methods use for advertisement:

Cable ads Newspapers Hoardings Bannerings Leaflets Test riding

Other than these dealers promote products by using different strategies. Most effective part of their advertising is that they use all languages Sindhi, Panjabi, Urdu etc in order to gain market share of all rural areas as well.

PLACEMENTIts placement is mostly in rural areas. The two factories are at:

Karachi factory Sheikhupura factory

Other than these factories main offices are at:

Multan office Rahimyar khan office Rawalpindi office Warranty office at Karachi

And except this there are thousands of showrooms and a lot of dealer

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MARKET SHARERight now atlas is holding 53% of total market share and are leaders in this market. From this share 70% of share is of rural areas.

In last 2 to 3 years atlas lost its 20% of share due to wrong pricing strategy. Still holding 53% out of which major chunk of 70% sales are from CD 70, 5% niche of CG 125 deluxe and 25% from CG 125. CD 100 is not proved a strong product.

DISTRIBUTION NETWORKAtlas has a vast network of distribution. They are having almost 350 plus sales dealer, service dealers, mechanics dealers and spare parts dealers.

They use 5s dealing system that includes:

Sales Service Spare parts Second hand Safety

That means separately dealing all the mechanics and factors for customer convenience.

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SWOT ANALYSISSTRENTHSAtlas Honda is re known bikes manufacturing company. Major strengths they hold are:

Brand image is most strong points. Atlas is specially known because of strong brand name which also helped in building strong positioning in mind of customers.

Quality is strength of Honda. They provide best quality among all its competitors.

Re-sale is also a strong point of atlas.

WEAKNESSESOther than strengths Honda also have some weaknesses due to which they lost 20% of market share.

Price factor and strategy is a weak point due to which they lost a great chunk of market.

Less promotional activities and low advertisement is also a major factor.

They are unable to attract major part because of less attractive features as compare to competitors. Chinese products gained share just because of attraction.

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OPPORTUNITIESOpportunities they look into market for improvement and gaining market share are:

Growing population Growing volume Lost market share

THREATSMajor threats for Honda in the market are:

Ultimately growing market share of competitors because of price If growth slows down that would be a threat Price sensitive buyers Disposability factor in Chinese product

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COMPETITIONMAJOR COMPETITORSNowadays in the market there are many competitors but major competitor is Suzuki due to which they lost 20% of market share.

Others are Yamaha, Pak hero, Star by Dewan group, Challenger by Baweja group etc. more than 50 brands are offered in market by all these competitors.

CUSTOMER ORIENTED OR COMPETITOR ORIENTEDAtlas Honda is basically customer oriented company but sometimes they also became competitor oriented but because of unadjusted strategies they restrict themselves as customer oriented.

Atlas believes in satisfying customers with convenience and solution to their problems not striving for a larger market share.

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COMPETITIVE STRATEGIESAtlas is market leader today and being a leader they compete with competitors using different strategies

ATTACKS

Atlas didn’t attack many competitors and nowadays they are not up to any kind of attacking strategy.

But in previous some years they used aggressive attacks on Suzuki Company and were successful in gaining 58% to 50% of their share.

Other than this atlas indirectly attacked and gained share by:

Moving towards un ventured areas Penetrating same market Increasing product range

DEFENSIVE STRATEGY

When atlas was being directly hit by Suzuki because of pricing strategy and they lost their 20% share then atlas used defensive strategies i-e distributors started crediting and leasing so as to protect the remaining share.

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PRODUCT LIFE CYCLEINTRODUCTIONPRODUCT

CG 125 DELUXE lies in introduction stage because it is newly introduce and is not stable.

STRATEGIES IMPLIED

Mass promotion Awareness of bike in the whole market Added features Strong pricing strategy to hold customers

GROWTHPRODUCT

CG I25 is in growth stage because of growing sales and growing number of buyers and will be helpful in generating profit.

STRATEGIES IMPLIED

Market penetration Introduce in new market Product modification Product preference advertising

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MATURITYPRODUCT

CD 70 is in maturity stage because of peak sales and stable number of buyers. It’s a product that is earning 70% of total profit.

STRATEGIES IMPLIED

Expand buyers and motivate them Entering new market Attacking competitor`s customer Improving quality and features High placement with effective price strategy

DECLINEPRODUCT

CD 100 is in declining stage because of less number of buyers and low sales generating less profit.

STRATEGIES IMPLIED

Invest more and take a risk If it not worked then lower down investment and generating

revenues from loyal customer to balance the cost And lastly if also didn’t work divest the product

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FUTURE STRATEGIESAtlas Honda is focusing on following future strategies:

Tools and products option Leasing option Capturing villages under stressed areas Entering into swat, Baluchistan, Turbot and interiors of provinces Market development in above areas Market penetration in existing areas Gaining lost sale segment

CUSTOMER FEEDBACK SYSTEMAtlas serves their customer best and they remain up to date with customer activities and for this purpose they have developed some strategies of obtaining customer feedback:

Collecting customer profile from each distributor in order to gain information and access to them

Online system of feedback is newly introduced still needs some improvements

B 2 B system is introduced i-e business 2 business for monitoring of daily sales and customer dealing

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RECOMMENDATIONSIf atlas follows some effective strategies they can lead the market they should follow these points:

They should change their pricing strategy because major drawback due to which they were unable to attract youngster was price.

They should try to capture share of price sensitive buyers. Frequent advertisement is necessary. They should adopt different marketing strategies to expose their

product. Should bring new variety.

CONCLUSIONAtlas Honda is a combine venture of atlas group and Honda Company of Japan. It’s a leader in bikes market they still have 53% share in the market but they can gain their lost market share by just setting an effective price strategy. If they overcome their weaknesses and focus on their strengths they can capture a great amount of market share.

According to atlas:

"We provide premium quality at reasonable prices"

Or

"We do not sell a product serve the service also"

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