History

In October 1946, Soichiro Honda established the Honda Technical Research Institute in Hamamatsu, Japan, to develop and produce small 2-cycle motorbike engines. Two years later, Honda Motor Company, Ltd. was born, and in 1959 Honda opened its first storefront in Los Angeles with six industrious employees.

Honda Foundations
Each year, the American Honda Foundation (AHF) and Honda of America Manufacturing. Foundation provide grants to non-profit organizations to build bridges to the future, the community and youth in the United States. Throughout the years, each Foundation has provided grants to organizations, including those that offer unique approaches to teaching and developing youth in minority and underserved communities. They also provide a significant amount of funds to programs that address the need to expose youth to science and technology. Please note: The American Honda Foundation provides grants on a national level, whereas the Honda of America Manufacturing Foundation funds only in the specific hiring areas surrounding the Honda plant in Marysville, Ohio.

Honda in Pakistan

Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company Limited Japan, and the Atlas Group of Companies, Pakistan.

The company was incorporated on November --, 1992 and joint venture agreement was signed on August ---, 1993. The groundbreaking 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 Inauguration Ceremony 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) Pitstops network in all major cities of Pakistan. Since the commencement of productionin 1994 till March31, 2005, the company has produced and sold over 77,500 cars.

Rolling Out Ceremony

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.

We always strive to give outstanding service to our 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 our customers absolute confidence in our 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. Currently we are offering 8 different models of Honda CIVIC and CITY cars in wide range of colors with unique technological and other features.

Honda's Honda's Environment Statement

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 also for the entire world.

We should pursue our daily business interest under the following principles:

We will make efforts to recycle materials and conserve resources and energy at every stage of our products life cycle from 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. 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. 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.

Honda Atlas Cars (Pakistan) Limited ENVIRONMENTAL POLICY

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

The Concept: Civic

The VTEC edge Distractingly good looking

Theres a lot to love about the Civic: it's reliable, economical and remarkably fuel-efficient. And have you seen the Civic up close and personal? 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.

Comfort

Trend should conform to climate, weather and conditions. Honda beige, pragmatically selected to stay clean and spotless for years.

Civic Sophistication. Feel the difference!!

Generous amounts of legroom, courtesy of Honda's flat rear floor

Ten disc CD Changer with flip front stereo & remote control on all models.

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

Generous luggage space.

Large innovative colored meters for easy reading.

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

Safety

Real World Crash Test Facility. Honda is committed to resolving the complex issue raised by real-worldcrash research.

When braking hard or on slippery surfaces, Honda ABS automatically lends expert braking assistance to help driver retain steering contro

A sub frame in the shortened nose efficiently absorbs impact energy.

Driving Performance

Civic model feature Honda's VTEC technology for greatly reduced emissions and higher fuel economy. Employing many refinements in the interest of cleaner combustion, VTEC technology is based on Honda's VTEC variable valve-timing system, which promotes efficient, lean combustion at mid- and high rpm.

VTEC raises fuel economy while maintaining high power.

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Prices
Models Available Ex-Factory Price (Pak Rs.)

EXi -Manual Transmission

Rs:

996,000.00

EXi Prosmatec Transmission

Rs:

1,036,000.00

VTi - Manual Transmission

Rs:

1,141,000.00

VTi - Manual Transmission with Leather Seats

Rs:

1,181,000.00

VTi Prosmatec Transmission

Rs:

1,231,000.00

VTi - Prosmatec Transmission with Leather Seats

Rs:

1,271,000.00

VTi Oriel - Manual Transmission VTi Oriel - Manual Transmission with Leather Seats

Rs:

1,191,000.00

Rs:

1,231,000.00

VTi Oriel - Prosmatec Transmission

Rs:

1,281,000.00

VTi Oriel - Prosmatec Transmission with Leather Rs: Seats

1,321,000.00

Note: These all prices are exclusive of the freight charges.

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External Macroenvironment Forces

The following external forces have considerable influence on any organizations marketing opportunities and activities are they are macroenvironmental forces: Demographics Economic Conditions Competition Social and Cultural forces Political and legal forces Technology

Demographics:
Demographics refer to the characteristics of populations, including such factors as size, distribution, and growth. There are some factors to which Honda affects very affectively that are:

i.

Age:

Honda civic is made for the peoples of age from 20 plus because some of the young people buy this car and make it look like a fancy car and the old peoples buy this car for comfort and to look like executives.

ii.

Marital status:

Honda civic is the car which can be used by single person and also by married. It is not compulsion that only single person can buy this kind of car, everyone can buy this car whether he or she is single or married.

iii.

Rapid Growth:

Another demographic trend is the rapid growth of minority markets and their buying power. In past, the buying power of minorities expanded more than did the size of this population segment. As now more and more people are buying Honda civic and the buying power of the consumers is increasing day by day.

Economic Conditions:
People alone do not make a market. They must have money to spend and be willing to spend it. The economic environment is a significant force that affects the marketing activities of just about any organization. As Honda company is investing more and more money to make their market position more stronger and stronger.

Competition:
A companys competitive environment obviously is a major influence on its marketing program. There can be Brand Competition and substitute products satisfy the same need. Brand Competition comes from marketers of directly similar products.

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As Honda is providing the same product which is provided by the other automobiles companys. The main competitor of the Honda Civic is Toyota Corolla and some of the small competitor is like Chevrolet Optra.

Social and cultural forces:

The task facing marketing executives is becoming more complex because our sociocultural patterns-lifestyles, values, and beliefs-are changing much more quickly then they used to. As Honda and Toyota introduced, respectively, Insight and prius hybrid autos that combine traditional gas-powered engines with electric motors. In mid 2002, Honda was the first automaker to receive certification to introduce a car powered by a hydrogen fuel cell.

Political and legal forces:

Every companys conduct is influenced by the political and legal processes in our society. As Honda corporation is legally registered and they are selling their cars legally in the market.

Technology:
Technology has a tremendous impact on our lifestyles, our consumption patterns, and our economic well being. As Honda is introducing more and more new technologies to their cars to fulfill the need of their consumers and to maintain their market position.

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Marketing Research Carried Out and Methods used to collect information

Marketing research consists of all the activities that enable an organization to obtain the information it needs to make decisions about its environment, marketing mix, and present or potential customers. The data from the research projects comes from the primary sources and secondary sources. Primary sources include surveys like personal interview, telephone surveys, mail surveys. Secondary sources include: Libraries Government documents Private business firms

Primary data is gathered using:

Surveys
Surveys are conducted to launch a new product in the market as Honda Company used several research methods for the launching of the Honda Civic they conducted:

Personal Interview:
As Honda company did personal interviews including face-to-face interview. They went to more and more people to ask them about the features or shape would they like in the civic. They went to their old customers and to the dealers to know the need of the customers that what they require. It also consists of the focus group discussion. Several people sat together and they discussed about the Honda civic that what is needed and what is not needed they tried to fulfill the need of their customers.

Telephone surveys
The Honda Company also used a facility of the telephone surveys. They called to their dear customers and to the related dealers to know about the need of people that what kind of car they want us to launch, what feature should be in the car to make it more productive for the consumers.

Mail surveys
The Honda Corporation also used another facility that is of the mail surveys. They mailed to more and more people to know about the knowledge of the people that what kind of the car they love. They prepared different questionnaires and mailed

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them to more and more people and then people replied to their questionnaires and replied them back.

Test Marketing has also some problems faced while doing surveys as Honda did different research techniquies those problems are: Time consuming Expensive Cannot keep a secret from competitor Lack of control

Dealership Network

3S Dealership (Sales, Service, Spare Parts) 2S Dealership (Service, Spare Parts)

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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.

Segmentation Strategy used by Honda Civic

The segmentation strategy used by the Honda Civic is Multiple Segmentation Strategy because two or more different groups of potential customers are identified as target markets. A separate marketing mix is developed to reach each targeted segment. In a multiple segment strategy, a seller frequently will develop a different version of the basic product fro each segment. The different segments of Honda civic are as under: Civic Civic Civic Civic Civic Civic EXI EXI VTI VTI VTI VTI Manual Transmission Automatic Transmission Manual Transmission Manual Transmission with Sunroof Prosmatec Transmission Prosmatec Transmission with Sunroof

In Honda civic every model has different features in it with the liking of their customers because they first target to their customers. As all of the features are written above. Multiple segments can provide benefits to an organization, but the strategy has some merits and demerits with respect to costs and market coverage. One of the most important advantages of Honda Civic is that it is profitable and is earning profit all over the world. In the demerit first of all it comes that it is expensive in both in the production and marketing of the products. Even with todays advances in production technology, it is obviously less expensive to produce mass quantities of one model and one color than it is to produce a variety of models, colors. Another demerit of Honda civic is that it is very much expensive due to advertisement. Distribution costs are likely to increases as efforts are made to make products available in the market.

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Positioning Of Honda Civic

Honda civic is now available at the factory price from the dealers. Positioning of Honda Civic in the market is like that it is more durable than other cars like corolla, which is the major competitor of Honda Civic. Civic is more comfortable than the corolla as it is all mentioned above. The shape of Honda Civic looks like executive car, it is equipped with modern technology like alloy rims, V-Tec engine, tires and different variety of colors. Honda Civic has a very high status because most of the business executives buy this kind of a car.

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Brand & Labeling: Design, Color and Quality

Brand and its Importance
The importance of brand name puts a heavy influence on the success of a product of a company. Same is the case with Honda Civic. The company gave this facility that clearly shows that this product is packaged under the supervision of Honda Corporation for the following reasons: 1. Honda Company has a reputed recognition in the business market of Pakistan. The brand of this company plays an important role in the success of Honda Civic as it is well reputed so more and more peoples are attracted towards Honda Civic. 2. Due to the strong brand name whenever a new car is launched by the Honda Corporation it is strongly recommended by the consumers. They love to see that car and buy just because of its brand name and it would have high quality.

Labeling of the Honda Corporation

Labeling palys an important role in luring a customer to toward the Honda corporation. The type of label used by Honda Company for its cars is Brand Label. Such labels are used by Brand-Oriented and well reputed companies, since they know that they have succeeded in creating a brandconscious class within the customers, that trust the company so much that they would prefer to buy anything being sold in the market under that label.

Importance of Design:
The label of Honda company is designed in a way that its gives a attractive look to their consumers. Only a sign of H represents a very heavy brand name and the consumers love the design of the Honda Company and they want more and more cars under this design.

Importance of Color:
Companies these days have become so brand-aware that they have chosen certain colors to represent their products. In this way, customers easily recognize the company that is selling the product, and immediately make a decision accordingly. As Honda company have different colors for their different kind of cars and the consumers buy the car according to their own perception.

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Importance of Quality:
Of course appearance itself does not determine the success of the product, it only lures a customer into Trying the product or service. What makes a customer out of an innovator is quality. In this case, quality means that how well Honda is launching their new cars and is booking of a new car delivered on right time.

Price Determination
Factors Influencing Price Determination
1. Estimated Demand: Estimated demand of the cars directly puts an influence on the pricing of car leasing. This is so, because depending on the demand of vehicles in the country, the government sets a criteria of the percentage of the original value of the car that banks can charge for their leasing services. Hence, banks are bound to change the price with a change in this criteria, which is directly dependant on the demand of the cars. 2. Competitive Reactions: Even if the government sets the sector within which banks can charge the interest on value of the car, still the changes within that sector also greatly depend on what the banks competitors have to offer. Since car leasing is a very competitive market in Pakistan. Customers are very eager to deal with a bank that charges them with minimum charges on the original value of the car. Hence, other than estimated demand, what the competitors are offering for customers also puts a heavy influence on the determination of price.

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3.

Cost of the Cars: One interesting fact about car leasing service is, that it is highly dependant on the original value of the cars. Fact is, setting the prices of the cars is in the hands of the manufacturer, not the bank. Thus, the cars will be made available to the customer n prices that are only greater than its original value. Hence, the interest charged by banks on these cars is highly dependant on the base value of these cars.

Non-Price Competition
The car financing & leasing services are majorly based on non-price competition. The reason is, that unlike early 1990s, people are willing to spend even more than the original value of it on cars if they are dealt with properly and the car reaches them on time. Nowadays, when the demand of cars far exceeds supply, people seek car leasing as an attractive way to get hold of a car in a smaller time than the booking method. Price does count as a m\ajor influence, but it comes only after this factor of responsible dealing and quick delivery. Bank Alfalah puta major influence in the advertising campaigs on that fact that car lkeasing is an easier and quicker way to get a car.

Market Entry Strategy

The strategy attained by Bank Alfalah on entering the mrket was market-skimming strategy. This was so, because after the success of Citi Bank in this sector, it was now clear and evident that car leasing facility had a lot of potential to become a successful business in Pakistan. This was so because the demand for cars was now rapidly increasing and the supply was starting to fall short. So, people were automatically starting to get convinced that car leasing was the best way to get a car quickly without having to pay the hefty black (ON) prices on the car altogether.

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S.W.O.T. Analysis
Strengths:
Following are the strengths we noticed in the banks car leasing facility: 1. The Bank Alfalah Car Leasing Facility has a reputed brand name supporting it. This adds to creating the good will amongst customers that is required for a business to flourish. 2. The bank is seen as a financial institution that has a repute and acceptance all over the Islamic world. People in Pakistan are willing to do business with banks that generally are seen as acceptable in Islamic world. 3. The car leasing department has a workforce that is very welcoming and marketing-oriented towards its customers. 4. The bank has a very attractive brand label that compels a potential customer to inquire more about its services. 5. The bank is also known for its delivery of cars to its customers on time.

Weaknesses:
Other than its strengths, the bank has some areas in which it has room for improvement. They are: 1. The banks network is not as fast-developing as its biggest rival Citi bank. 2. The recent offer launched by one of the banks competitors to exchange a car for a newer model is proving to be a big success. It stands at a position to greatly effect the sales of Bank Alfalah car leasing services.

Oppurtunities:
1. The car leasing services are being now very rapidly acquired by customers because it has now become one of the most quickest way of acquiring a car. 2. With the passage of time, the doubt in peoples mind about this service being religiously compatible is now starting to drift away. By exploiting this opportunity, the bank defenately stands a chance of creating more and more customers. 3. Compared to the economic conditions of the pre-90s, Pakistan has greatly developed as far as economic trends are concerned. With new businesses opening all over the country, they also require more and more transportation means. Hence, the bank can benefit a lot by introducing a special incentive on vehicles that are bought for commercial purposes.

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Threats:
1. The recent notice by government of Pakistan to increase the rate charged by banks on cars will give a set back to the demand of car leasing country-wide. 2. Now that manufacturers have announced to enlarge their plants and more companies are investing in automotive sector of Pakistan, it might be possible that the average wait on cars via booking will get so small, that people will consider booking as a cheaper way to acquire a car.

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Reference:
www.honda.com.pk www.honda.com
Zeeshan Liaquat Executive Honda City Sales (Pvt.) Ltd. Text book

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