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 TO
We 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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 ABSTRACT
We 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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 INTRODUCTION
AUTOMOBILE INDUSTRY
The 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 Pakistan

The 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 HISTORY
Atlas 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 BOARD
Chairman Yusuf H. Shirazi
Chief Executive Officer Saquib H. Shirazi
Directors Masahiro Takedagawa
Nurul Hoda
Sanaullah Qureshi
Sherali Mundrawala
Hisao Kobayashi
Koji Takamatsu
Company Secretary Rashid Amin

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 MARKETING MANAGEMENT
APPLICATION
STPD OF ATLAS
SEGMENTATION
Atlas 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.

TERGETING
Atlas 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.

POSITIONING
The 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`S
PRODUCTS
Company is offering four products in market:

 CD 70
 CD 100
 CG 125
 CG 125 DELUXE

SERVICES
They 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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PRICE
ATLAS 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.

PROMOTION
Atlas 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.

PLACEMENT
Its 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 SHARE
Right 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 NETWORK
Atlas 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 ANALYSIS
STRENTHS
Atlas 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.

WEAKNESSES
Other 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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OPPORTUNITIES
Opportunities they look into market for improvement and gaining
market share are:

 Growing population
 Growing volume
 Lost market share

THREATS
Major 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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 COMPETITION
MAJOR COMPETITORS
Nowadays 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

ORIENTED
Atlas 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 STRATEGIES
Atlas 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 CYCLE
INTRODUCTION
PRODUCT
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

GROWTH
PRODUCT
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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MATURITY
PRODUCT
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

DECLINE
PRODUCT
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 STRATEGIES
Atlas 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 SYSTEM

Atlas 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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 RECOMMENDATIONS
If 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.

CONCLUSION
Atlas 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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