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University of Lahore
Department of Computer science
&Information Technology

Principles of Marketing

Term project: Honda

Submitted To: Mr. Hashim Awais Butt

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Acknowledgment

In the Name of Allah, the Most Beneficent and Merciful

We are highly grateful to our course instructor Mr Hashim Awais who

taught us with great affection and whose supervision enabled us to
complete our Project. We hope this Project will fulfill the requirements
of our teacher.

 UMAR IKRAM MIT01103015

 M WASEEM ISHAQ MIT01103001

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Contents

 Acknowledgement-----------------------------------------------------2
 History------------------------------------------------------------------4
 Brand--------------------------------------------------------------------5
 Honda’s mission statement------------------------------------------6
 Products and services------------------------------------------------6
 Honda Competitors---------------------------------------------------9
 Strategic goals--------------------------------------------------------10
o Official goals---------------------------------------------10
o Operative goals------------------------------------------11
 Vision------------------------------------------------------------------11
 Portfolio Analysis----------------------------------------------------11
 Human Resource Policies-------------------------------------------14
 Organizational Structure-------------------------------------------15
 Technology------------------------------------------------------------17
 Dealer’s network-----------------------------------------------------22
 Ethical Values--------------------------------------------------------23
 Environment----------------------------------------------------------24
 Culture----------------------------------------------------------------25
 Conclusion------------------------------------------------------------26

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HISTORY

Honda Motor Company grows a short time later to be the world's largest
manufacturer of motorcycles by 1964.
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 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) Pitstops network in all major cities of Pakistan.
Since the commencement of production in 1994, the company has produced and
sold more than 150,000 cars till Oct, 2008.
All dealerships are constructed in accordance with the standards defined by Honda
World over.

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.

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Brand

What is Honda?

Honda is an entity that realizes the dreams of individuals and spreads joy to people.
Honda’s philosophy, unique corporate culture, pursuit of challenges that fulfill individuals’
dreams and variety of products and activities born of challenges will remain the foundation of
the Honda brand. We will continue building on our history of realizing people’s dreams.

Honda’s driving force

The expectations and appreciation of people around the world for our dreams. People see
Honda as pursuing its dreams and always remaining a step ahead of the world. This image and
the people’s appreciation of our outlook will continue to be the driving force of the Honda brand.

Honda’s Goal in Branding

To create a brand that is supported by people’s expectations and appreciation.

Global brand slogan

Honda’s slogan is

“The power of dreams”

Honda has never used its slogan to sell its products, but it was MR Honda’s belief that well built
products sell themselves.

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Honda’s Mission statement

We see the “power of dreams” as the way of thinking that guides us and pushes us
forward. The strength of our company comes from this philosophy which is based on the
visionary principles of our founder Soichiro Honda. We see the world not as it is,but as it could
be. We see the world through the eyes of dreamers, because we are a company founded by the
dreamer, and we are a company built on dreams.

We see the pursuit of impossible dreams as an empowering force, capable of producing

revolutionary ideas. Dreams inspire us to create innovative products that enhance human
mobility and benefit society. Honda encourages all of its associates to pursue their dreams. And
it’s our mission to share these dreams with others and to make them a reality.

Products and services

Honda is one of the best companies in the world. In Pakistan Honda is contributing a lot towards
welfare of people. Honda has various products and special services for its customers. Honda is
manufacturing following products:

 Automobiles
o Accord
o Civic
o City and etc
 Motorcycles
 Power equipments
 Water pumps
 Power engines

Here we are discussing only automobiles that are Honda atlas. The company has provided many
comforts and specifications in its cars. Honda is offering many different models of Honda cars.

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o Automobiles
Accord

Accord is a graceful car with a comfortable driving with various and unique specifications .
A bold exterior presence with a luxury air, yet a sporty youthful feeling. An expansive upper-
class cabin with comfortable travel space for five adults and panoramic visibility.it has the
best driving force and powerful expansion. Accord represents a distinct status upgrade for
the sedan. A true prestige vehicle, it is designed for a sophisticated and dynamic drive. The
Accord doesn't yell, it speaks with quiet authority.

Civic:

In Pakistan the bestselling car is Honda civic. It is best among mediocre and almost 65 % of
the people prefer this car over others. Its driving is too soft with best expansion and less
consumption of fuel due to effective engine and central control system. The air flows

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smoothly over the front under spoiler and angled windshield to the sharply cutoff rear; it
passed the sides’ undisturbed thanks to reduced wheel arch clearance: and it streams beneath
the chassis with minimal turbulence from the smoother and flattened under panels.

City:

It is the most sensitive car among other models of Honda with a stylish and attractive body. It
is the first euro 3 complaint car in Pakistan. Hondas affirmative answer is the revolutionary
new city.

The other products of Honda include:

o Motorcycles:

Honda motorcycles are the no#1 choice among people of Pakistan. Honda Motorcycles
are defined by Quality, Performance, Speed, Economy Petrol and Re-sale Value. All these have
managed to successfully bag your trust on the New Honda CD100. It is a stunning result of
advanced Japanese technology and right up there as an outstanding performer representing all the
qualities that make Honda motorcycles so special.

o Honda power equipments:

Honda power equipments offers a complete line of generators for

commercial and consumer applications. Compact, fuel-efficient Honda
generator models provide smooth, clean power for recreation, construction,
rental, emergency and home use. All Honda Generators meet or exceed EPA
(Environmental Protection Agency) emission standards.

o Water pumps:

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Honda water pumps are known for their durable construction, quality
engines and easy portability. These features apply to all categories of pumps that
are offered by Honda.

o Power engines:

Honda is the world’s largest manufacturer of engines and has

earned its reputation for unsurpassed quality, performance and
reliability.

Honda competitors
Honda is one of the best companies of automobiles among various challenging
companies. In Pakistan the competitors of Honda are:

 Toyota
 Suzuki and etc

Toyota stresses on increasing the sales volume and brand name image.

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Suzuki stresses on price.

Honda always stresses on dreams so there is a war between sales, prices and
dreams.

Goals and strategies

o Official goals

Customers
Our customers are the reason and the source of our business. It is our joint aim with
our dealers to ensure that our customers enjoy the highest level of satisfaction from use of
Honda Motorcycles.

Quality
To ensure that our products and services meet the set standards of excellence.

Local Manufacturing
To be the industry leader in indigenization of motorcycles parts.

Technology
To develop and maintain distinct business advantages through continuous induction of
improved hard and soft technologies.

Shareholders
To ensure health and viability of business and thus safeguarding shareholders interest
by maximizing profit. Payments of regular satisfactory dividends and adding value to the
shares.

Employees
To enhance and continuously up-date each member’s capabilities and education and to
provide an environment which encourages practical expression of the individuals potential in
goal directed team efforts and compensate them attractively according to their abilities and
performance.

Corporate Citizens

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To comply with all government laws and regulation, to maintain high standard of ethics
in all operations and to act as a responsible members of the community.

o Operative goals:
1. To maintain the repute of Honda in the market.
2. To introduce latest safety tools in car industry.
3. To introduce new design including exterior and interior of automobiles.
4. To create fully automatic function replacing manual function.
5. To Increase the profit of current year as compared to last year.
6. To protect environment by introducing smokeless engines.

Vision

Focusing on “satisfaction” (customers’, associates’ and 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.

Portfolio Analysis

 BCG matrix
 SWOT analysis

Strategic business unit

 Automobiles
 Motor cycles
 Generators

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 Water pumps
 Jet engines

o BOSTONS’ CONSULTANT GROUP MATRIX

Relative Market Share

(Cash Generation)

High Low

STARS QUESTION MARKS

AUTOMOBILES JET
ENGINES

CASH COWS DOGS

GENERATORS
BIKES

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WATER PUMPS

High

Market growth

Rate

Low

o SWOT Analysis

Strengths

 Brand name image

 Smoother drive as compared to competitors
 Efficient performance
 Quality- ISO certification

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 Highly loyal ,committed ,motivated employees

 Hardworking ,experienced and qualified staff
 Bonuses and reward system for employees
 Technology
 Stay close to customers
 Understand their needs
 Exceed their expectations

Weaknesses
 Honda in Pakistan has lower sales value than Suzuki and Toyota
 Its distribution centers are less
 People of lower class are because of its image as high status car
 Honda’s are expensive to buy and maintain than its counterpart rivals
 It faces a long road in gaining the interest and making ways to remove the
image that Honda’s are unreliable cars

Opportunities
 Growing motor cycle market
 Customers realizing quality matters, as problems are already coping up in
new entrants models
 Initiatives and proposals in process for coping with increased demand of
bikes
 Newer segments introduced with entry of new models ,design which still
have huge potential for growth
 Karachi, a segment which has tremendous potential for growth and
profitability.

Threats
 Crucial economic conditions of Pakistan can lead to the decreased sale
 WTO(world trade order) opening local market for global competition
 Competitors launching newer model with stress on reduced price for our
price-sensitive economy proving serious threats in near future
 The biggest threat of Honda is Toyota
 Honda rivalry is becoming more intense by BMW & Chevrolet which are
opening up industries

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HUMAN RESOURCE POLICIES

Human Resource policy is to hire young, fresh energetic and active associates to meet the
existing and future workforce requirements and providing its associates maximum opportunities
for internal mobility through personal training and development to enable them to take higher
positions. Human Resource Division has to have succession plan for each key job/area to make
sure the continuity of operations in the relevant division and to fill the temporary/ permanent
vacancy.

o Employer characteristics
1. There are 800 employees in this organization.
2. There are 20 female performing in management.
3. In this way the male workers Are 96%, while 4 % are female.
4. The minimum education required for managerial post is bachelor in
Management & so on, while in production related diploma holders and
specialized people are preferred. In Production
5. The Maximum Employer belongs to 25-35 age, while in Managerial staff max
people are of 35+ ages.

Organizational Structure

Mechanistic and organic organizations are two organizational decision designs.

Is Honda mechanistic or organic?
Its decision making style is mechanistic.

o Structural dimensions
 Formalization
 Centralization
 Specialization

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 Employee empowerment
 Narrow span of control

Formalization

Honda Company is formalized but in some cases its level of formalization is normal.
There are clear-cut rules for the employees, detailed description and information is available and
manuals are also given to employees in which rules and regulations are clearly defined.
Employees have no freedom to make decisions. But employees can give opinions and then up to
the management.

Centralization

Honda Company is a little bit low in centralization. Decisions are made by upper level
management but the lower level employees can give their opinions to their subordinates and
managers.

Specialization

Honda Company is highly specialized because all the work is divided into particular
specialized employees. There is a visible division of jobs.

Employee empowerment

In Honda Company employee empowerment is low. Somehow employees have a little

authority of giving opinions.

Span of control

Span of control is low in Honda worldwide. Specific number of employees works under
one supervisor. Wider span is effective and efficient in terms of cost but efficiency may suffer.

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TECHNOLOGY

Honda believes that the engine plays an all-important role, even in hybrid power plants.

A variety of hybrid systems are in use in automobiles today. Honda’s lightweight and
simple design features a parallel system in which the motor assists the engine as required.

Since in a parallel system the engine serves as the main power source, Honda has further refined
the engine, developing a new i-VTEC engine around the core of its original valve-control
technology. In addition to achieving both powerful torque and high fuel economy, the new
engine optimizes efficiency with such innovations as deactivating all cylinders during
deceleration for improved regenerative braking. These results in outstanding environmental
performance combined with impressive acceleration.

Motor-alone and cylinder-Idle modes provide improved fuel efficiency and increased
driving pleasure.

The electric motor provides ample power to allow low-speed cruising under motor power alone.
Moreover, The i-VTEC engine controls valve operation to permit deactivating of all four
cylinders, for improved regenerative braking efficiency during deceleration.

Vehicle stationary

Idle stop

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Startup and acceleration

Motor assist

Low-speed cruising/gentle acceleration

All 4 cylinders deactivated, the vehicle is powered by the motor alone

High-speed cruising

Vehicle powered by engine alone

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Rapid acceleration

Motor assist

Deceleration

All 4 cylinders are deactivated and energy is recovered through regenerative braking

Slim and compact, the motor of the Honda Hybrid System is no larger than the flywheel of
a conventional engine.

In a conventional car there is a flywheel between the engine and the transmission, serving to
smooth out fluctuations in engine torque for smooth engine operation. The electric motor in the
Honda Hybrid System is slim and compact enough to fit into the space usually taken up by the
flywheel. And the rotor in the electric motor serves as the flywheel. This is why the Honda
Hybrid System fits in to existing vehicles as is. Honda is hard at work on further hybrid
technology development to make hybrid cars even more a part of our lives.

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o Hybrid Technology

A hybrid vehicle is an automobile powered by an engine assisted by an electric motor.

In a Hybrid vehicle, the electric motor assists the engine to help reduce fuel consumption in
standing starts and accelerations.

This means that compared to a regular car of the same size, a hybrid is cheaper to run.

Furthermore, electric motors deliver maximum torque from zero rpm for powerful, exhilarating
standing starts and added power for acceleration.

Combining fuel efficiency, and driving performance with environmental performance through
reduced fuel consumption and reduced CO 2 emissions: that is what hybrid vehicles are all about.

Honda chose the simple parallel hybrid design in which the engine is the main power
source.

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Since the parallel hybrid design is simpler, it can be made lighter.

Lower weight in turn helps improve vehicle performance and fuel efficiency.

Since the engine serves as the main power source, engine power and electric motor power can be
transmitted to the wheels directly for a sportier, more enjoyable driving experience.

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DEALERS’ NETWORK

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ETHICAL VALUES

Since recently the organization’s major ethical focus is on maintaining a global viewpoint
i.e Honda is delicated to supplying products of the highest quality yet at a reasonable
price for worldwide customer satisfaction.To achieve the No.1 customer satisfaction, HONDA
is trying to supplying the prestigious products of highest quality through smart team work
defined by the regulatory parameters. Continually improving strategies and goals for better
performance. Honda Atlas Cars (Pakistan) Limited, being responsible member of the society
considers the preservation of the global environment as a crucial concern. The change that the
organization is trying to brought is:

1) Recognizing the impacts of the significant aspects on the environment resulting

from activities, products and services.

2) Formulating objectives and targets to control the effects of activities on local

environment as for as technically feasible.

3) Trying to operate in compliance with relevant environmental laws, regulations and

other requirements that apply to our activities.

4) Creating environment friendly attitude among associates.

5) Totally committed to continual improvement of the environmental performance and

reviewing the environmental management system to ensure its suitability, adequacy
and effectiveness.

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ENVIRONMENT

Honda has always targeted mass-market models in order to have the greatest impact on
clean air and fuel economy. To this end, we work to improve existing technologies while using
The Power of Dreams philosophy to envision and develop the vehicles of the future.

We believe it is important to invest in the continued advancement of internal combustion engine

technology. Honda has introduced a new generation of gasoline engines around the world that
provide extremely low emission levels and increased fuel efficiency while still improving driving
performance.

Further in pursuit of our goal to improve energy efficiency, we have developed gas-electric
hybrid vehicles that achieve ultra-high fuel economy. This includes the Civic Hybrid, the first
mass-market car with hybrid power.

Developing vehicles that use sustainable energy sources is perhaps the ultimate direction.
Hydrogen-powered fuel cell vehicles have great potential for the future. Honda has developed
the first fuel cell electric vehicle in the world to be certified by both the U.S. EPA and the state
of California.

Honda is working to further develop its technology to reconcile the issues of global climate
change and growing demand for mobility, aiming to manufacture products with the lowest in-use
CO2 emissions.

Honda continues to prioritize cleaner exhaust emissions from gasoline vehicles, working to
reduce the levels of Carbon monoxide (CO), Hydrocarbons (HC) and Nitrogen Oxides (NOx)
contained in exhaust emissions.

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CULTURE

HONDA Company has an Adaptability Culture, with flexibility the need of the organization
and strategic focus being external. The organization has a clear vision, with the goal of increasing
growth, profitability, and market share. The employees are paid for performance. The individual
employees are made responsible for contributing in gaining the organization's goal, and in return they
are rewarded with incentives thus keeping the employees motivated. The organization has Award
Functions, as a part of the organization's culture.

o MOTIVATING EMPLOYEES
At Honda we believe that a skilled, motivated and diversified workforce is the key
to success in today's global market. The Power of Dreams is alive at Honda. Our belief is
that the best people produce the best products. That's why Honda is constantly on the
lookout for bright, ambitious team players who have a strong commitment to improving
society, the environment, even themselves.

Honda offers exciting and challenging careers with competitive pay, excellent
benefits and exceptional advancement opportunities. With our international presence in
almost 200 countries and continued success within Pakistan market, a career at Honda
Atlas Cars can be both rewarding and stimulating

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Conclusion

HONDA Company has an adaptability culture, with flexibility the need of the organization
and strategic focus being external.
The organization has a clear vision, with the goal of increasing growth, profitability, and
market share. Since recently the organization’s major ethical focus is on maintaining a global
viewpoint i.e Honda is delicate to supplying products of the highest quality yet at a reasonable
price for worldwide customers sati Human Resource policy is to hire young, fresh energetic and
active associates to meet the existing and future workforce requirements and providing its
associates maximum opportunities for internal mobility through personal training and
development to enable them to take higher positions faction. To develop and maintain distinct
business advantages through continuous induction of improved hard and soft technologies.
Human Resource policy is to hire young, fresh energetic and active associates to meet the
existing and future workforce requirements and providing its associates maximum opportunities
for internal mobility through personal training and development to enable them to take higher
positions.

Principles of marketing