Report 1
Report 1
Report 1
Aminah Tariq
Program: MBA
August 16, 2014
Executive summary……………………………………………………….. 6
Acknowledgement…..…………………………………………………….. 7
History…………………………………………………………………….. 8
Milestone………………………………………………………………….. 10
Group Companies…...…………………………………………………….. 13
Board of Directors…..…………………………………………………….. 14
Overview………………………………………………………………….. 15
Vision …………………………………………………………………….. 17
Mission……………………………………………………………………. 17
Strategic Goals…………………………………………………………….. 18
AHL culture……………………………………………………………….. 19
Organizational hierarchy………………………………………………….. 22
Internship plan…………………………………………………………….. 23
Departments……………………………………………………………….. 24
1. Production …………………………………………………………….. 25
2. Finance………….…………………………………………………….. 27
3. Quality Assurance…………………………………………………….. 27
4. Logistics………...…………………………………………………….. 28
5. Human Resource …………………………………………………….. 29
6. Marketing …………………………………………………………….. 41
i. Sales department………………………………………………….. 43
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ii. Institutional sales department …………………………………….. 50
iii. Spare parts department……...…………………………………….. 55
iv. Business development department……………………………….. 59
i. Product……...…………………………………………………….. 65
ii. Price …………………………………………………………….. 82
iii. Place …………………………………………………………….. 84
iv. Promotion…...…………………………………………………….. 86
SWOT Analysis……..…………………………………………………….. 88
Recommendations…..…………………………………………………….. 91
Assignment…..……………………………………………………………. 94
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Executive summary
This report is about my internship I have under gone at Atlas Honda limited. The main purpose of
internship is to learn by working in a practically scenario and to apply the knowledge acquired
during studies I have stayed there as an intern for 6 weeks and learnt a lot of things which I cannot
learn without the exposure in the real world. I have put my efforts to show how all departments
are working and how they are interlink with each other my report focuses on giving an insider
view of the organization its systems and workings and also of the customers. It also highlights the
differences and the similarities between the real world and the academic world.
Atlas Honda is one of the leading and most growing Automobile (Two wheeler) company of Atlas
Group. Due to absence or very poor infrastructure of mass transit and public transport, motorcycle
has now become necessity of life for a large segment of urban and rural population as well. The
company’s objective is to maximize profit through providing high quality motorcycles and through
gaining the high level of customer satisfaction. In this report company’s vision and mission
statement is clearly defined. Then company’s strategic goals, quality policy, and core values are
described. In addition company’s SWOT analysis are also included in this report. After that
organization’s different functions of the departments are discussed. The company’s cultural values
are also described and at the end of the report some suggestions are recommended.
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Acknowledgment
All praise to the gracious, the greatest ALMIGHTY ALLAH who blessed me with the courage
and made my efforts fruitful for the completion of this internship.
I would like to give my gratitude to all AHL staff, friends, and my family who have always been
there for me who held my hopes when I could do so no longer. I am also thankful to all those
people, events and circumstances which led me to the completion of this report without which
this work could not have been possible
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HISTORY
Mr. Yousaf H. Shirazi, the chairman Atlas Honda, established an investment company, Shirazi
Investment (Private) Limited, in 1962 with an initial capital of Rs.500000. The company that was
first came into existence in 1963 was Atlas Auto Limited, as a result of agreement with Honda
Motor Co. with its manufacturing facility located in Karachi. Later in 1979, manufacturing plant
at Sheikhupura (Panjdarya Limited) was established.
In 1991, merger of Panjdarya and Atlas Autos Limited takes place and the name of new merged
company was changed to Atlas Honda Limited. Atlas group has more shares than Honda. That is
why its name is Atlas Honda. Its head office is in Karachi. Its registered regional offices are in
Lahore, Rawalpindi, Rahim Yar Khan, and Multan, and these are all reporting to Karachi Head
Office. Over the years, the company has enjoyed tremendous success and today it is considered
the benchmark and flag bearer of the motorcycle industry in Pakistan because of its high quality
products, largest dealership network, after sales services and manufacturing facilities.
Karachi Plant
Company mother plant is based in the city of lights and provincial capital of Sindh, the Karachi
city. Atlas Group signed technical agreement with Honda in 1963 and plant started commercial
production subsequently. Plant spread over an area of 5 acres. In 1964, production began with 7
motorcycles per day. Now plant production has reached to 300 units in a day. It takes only 30
seconds/ motorcycle to manufacture. Karachi plant manufactures CD 70 only.
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Sheikhupura Plant
Another plant is situated in Sheikhupura city, Punjab. The plant was built in 1979 and spread over
an area of 27 acres with the establishment of modern and synchronized 500K plant in 2006. The
plant manufactures all four models i.e. CD 70, Pridor, CG 125 and CG 125 Deluxe.
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MILESTONES
The company is engaged in the manufacturing and marketing of motorcycles and auto parts.
Since its inception the company has experienced an unprecedented growth in its operations
from a small manufacturing company to the leading motorbike manufacturer of Pakistan.
Following is the chronological order of the major events in the company’s history:
2013 Atlas Honda Limited won the coveted “Best Corporate Report Award – 2012”
2013 Atlas Honda Limited’s Environmental Report ranked best in ACCA – WWF
Awards 2012
2010 SAFA Award for Best Corporate governance disclosures in annual report 2008
2010 Best Corporate report award by Joint Committee of ICAP & ICMAP
2007 Successfully implemented SAP ERP to its business process, all over Pakistan
2005 The Company crosses the 250,000 units’ barrier by selling 287,184 units.
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2004 Top 25 company award by KSE
2003 Best Corporate Report award by joint committee of ICAP & ICMAP
2002 Deletion level reached to 87% and 80% for CD70 & CG125 respectively
2002 Best Corporate Report award by joint committee of ICAP & ICMAP
2001 Concept of 5S dealership – Sales, Service, Spare Parts, Second hand exchange and
Special (Credit) sales launched
1995 Export Agreement signed with Honda Motor Company Limited Japan
1995 Company makes its first exports to Bangladesh, Nepal, Sri Lanka, Middle East and
Central Asia.
1994 Mr. Kawamoto President, Honda Motor Company Limited, visited AHL
1988 Joint Venture agreement signed with Honda Motor Company Limited
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1981 Commercial Production started at Panjdarya Limited
1979 Incorporation of Panjdarya Limited as Joint Venture with Honda Motor Company
Limited
1962 Technical Assistance Agreement signed with Honda Motor Company Limited
Japan
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Group companies:
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Board of Directors
Kazuhisa Hirota
Hiromitsu Takasaki
Hisao Kobayashi
Sanaullah Qureshi
Tariq Amin
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Overview:
Atlas Honda Limited is a joint venture between the Atlas Group and Honda Motor Co. Japan. The
company started with name of Atlas Autos at KHI in 1963. Atlas Autos later merged with
Panjdarya, Sheikhupura to form Atlas Honda in 1991. Both these motorcycle manufacturing
concerns were established by the Atlas Group. In addition, a third concern, Atlas East Pak Ltd.
was taken over by the Government of Bangladesh after the fall of Dhaka in 1971. However Atlas
Honda didn’t stop its voyage towards excellence.
Atlas Honda Limited manufactures and markets eight different models of Honda motorcycles in
collaboration with Honda Motor Company. The Company also manufactures various hi-tech
components in-house in collaboration with leading parts manufacturers like Showa and Toyo
Denso. Honda motorcycles are by far the best selling motorcycles in the country with an
unmatched reputation for high quality, reliability and after-sales-service. Atlas has undertaken to
develop local manufacturing capabilities to the highest, economically feasible level. While a major
role in localization has been assigned to vendor industries, Atlas has the country's largest in-house
manufacturing capability in the country at its Karachi and Sheikhupura plants. To support the
production facilities, the company has established an R&D wing and tool making facilities through
CAD/CAM which are growing rapidly in size and function as the company expands. Atlas has
managed to execute 12 Joint Venture and Technical Assistance Agreements between local vendors
and foreign manufacturers for transfer of technology besides Atlas has directly executed 9 Joint
Venture and Technical Assistance Agreements other than with Honda Motor company.
Atlas Honda is playing a pioneering role in creating conditions for easy and confident use of
motorcycles all over the country. Atlas has set up Technical Training Centers in Karachi and
Lahore which provide several courses of varying duration and complexity for motorcycle
mechanics and users each year. Mobile training facilities take the latest know-how, technology
and maintenance of motorcycles to major rural and urban centers around the country.
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Market share:
Market share of AHL is analyzed by estimating that how many motorcycles are registered. Then
registration of AHL bikes is compared with major 7-8% competitors in percentage and units. The
market share of Atlas Honda Limited is 48%. The profits are high due to advance payment given
to AHL by their dealers.
Production capacity
Authorized Capital, 1.5 Billion (rupees) and Paid up Capital is Rs. 1,034.066 Million.
Exports
Atlas Honda exports its motorcycles to Bangladesh, Afghanistan and Srilanka. Main focus is on
Bangladesh and Afghanistan. Approximately 1000 bikes are exported annually. Spare parts are
manufactured in own plants and some are being purchased from vendors and nearly 1300-1400
parts are imported from Japan, Thailand and Malaysia.
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VISION
“Market leader in the motorcycle industry, emerging as a global competitive centre of production
and exports.”
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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Strategic goals:
Customers
Our customer 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
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
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.
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Quality policy
AHL Culture
Atlas Honda Ltd. operates under the basic principles of “Respect for the individual” and “The
Three Joys” commonly expressed as
“Respect for the individual” reflects its desire to respect the unique character and ability of each
individual person, trusting each other as equal partners in order to do best in every situation.
Based on the foundation of “Respect for the individual”, “The Three Joys” expresses belief and
desire that each person working in, or coming into contact with the company, directly or through
its products, should share a sense of joy through that experience.
In line with these basic principles, since its establishment AHL has remained on the leading edge
by creating new value by providing products of the highest quality at a reasonable price for the
customer’s satisfaction. In addition, the Company has conducted its activities with a commitment
to protecting the environment and enhancing safety in a mobile society
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Main Products
Deluxe
CD-70
CG-125
CBR 150
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CD Dream
Pridor
Spare parts
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Organizational Structure
Shareholders
Board of Directors
CEO
Internal Audit
Operations Support
Engineering &
Projects
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Internship Plan
I worked five weeks in the marketing department in the regional office of Atlas Honda Limited,
Lahore and one week in the HR department, Sheikhupura plant. I was given a proper internship
schedule. There I worked in sales, institutional sales, business development and spare parts
department for the first 5 weeks. I worked on different tasks that were assigned to me which will
be described later.
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Departments:
Production Department
Marketing Department
Human Resource Department
Finance Department
Logistics Department
Quality Assurance Department
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Production Department:
The production department includes
1. Assembly plant:
Four shops are located under the assembly plant
Frame assembly shop
Paint shop
Welding shop
Press shop
Frame assembly shop:
It has two departments.
Main assembly
Under main assembly, frame is taken on belt and step wise all the final shapes of the motorbikes
are established from seat attachment to lights, wheels, cushions, mudguards and etc. It is a process
where bike is total assembled.
Sub Assembly
Under this parts are joined and segregated properly and supplied to main assembly. Some parts
need attachments before sending to main assembly.
Paint shop:
Here heavy machines are installed to paint the fuel tanks. Tanks, under the process, pass from the
machine and are being painted. Then they are sent to label shop for label sticker attachment.
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Welding shop:
Here parts like frame body for CD70, CD100 and CG125 and fuel tank are welded. Welding plant
has the facility of:
Mig welding
Tig welding
Spot welding
Gas welding
Press Shop
Here machine heats bike’s parts to make them ready for use.
Heavy mechanical devices related to press and welding with bulk capacity and automatic
standardized quality control are under one roof at Sheikhupura plant.
2. Engine plant
It has three sections
1. Heat treatment plant
2. Crankshaft Manufacturing plant
3. Gear manufacturing plant
3. Casting plant
Section managers and assistant managers head this department. Here process of low-pressure die-
casting, high-pressure die-casting of cylinders and parts are made. Shock/ cushion manufacturing
under the casting plant.
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Finance Department
This department consists of two divisions.
1. Finance Department.
2. Account Department.
Finance Division:
Its core responsibilities are to handle,
Sales tax.
Other taxes.
Fixed asset purchase.
Payroll system.
All type of general ledger transaction.
Accounts Division:
It is responsible to
Maintain inventory flow.
Machine tools cost.
Inventory control, which include costing of machine spare and costing of motorcycle parts
import.
Overhead and a/c payable local is also maintained by cost department.
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Logistics Department
Under vendor improvement Program, Company ensures timely supply of raw materials; reduce
rejection in parts and ensures quality under the assistance of quality assurance department.
Improve the sourcing of vendor to make them company strength.
Purchase
Purchase department control all purchases other than auto (bike) like stationary, kitchen items,
office supplies and all type of purchase but not motor bike or parts related. .
Vendor Procurement
Vendor procurement department purchase parts and other auto related parts from local, head office,
and from I import. 500 parts are purchase through local and foreign vendors. They get 92% parts
from local vendor and 8% from import. Some parts are manufacture through in-house facility of
AHL as frame body, paint, hub, fuel tank, cylinder head casting, and shocks of bike in Sheikhupura
plan
Dispatch of Finished goods
Fourth area under logistics is dispatch or delivery of finished goods (motor bike) to the market as
required by marketing department. Under this logistic department control and handle the mobility
and transition of company product through company transport (trucks).
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Human Resource Department:
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Hierarchy
Executive
AM HR (12)
GM HR Karachi
NM HR (8) Executive
(6)
AM HR (12) MT
AM HR (12) MT
GM HR Lahore
NM HR (8) M HR (9) AM HR (12)
(6)
Executive HR (13)
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HR objective:
HR department is responsible for recruitment, development, for evaluation, to maintain and retain
right people and right number of people on job. This department is responsible to achieve
company’s objective and provide company with appropriate work force.
HR functions:
AHL firmly believe in recruitment on merit regardless of sex, cast or religion. It is an equal
opportunity employer.
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Forecasting of vacant Advertisement of vacant positions/
positions Direct contact with institutions
After forecasting of vacant positions, company analyzes job description that what will be the tasks
assigned to and responsibilities of the person and to whom the person will report and specifications
such as qualification or skills needed by the person in the job or salary range etc.
Age:
Qualification:
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Grades:
After analyzing job description and specification, company give advertisement of vacant positions
in the newspaper and if company has direct link with universities then they call candidates. Then
the department receives applications and complete details of candidates. When a pool of candidates
is built then department do short listing of applicants. After that written test is conducted,
candidates with 50% marks are selected to appear in 1st interview. GM of concerned department
and Manager HR take the 1st interview. Then 2nd interview is taken by CEO, GM HR & Admin,
and Manager Admin. Whoever passes the interview is subjected to complete medical test and after
clearance candidate is selected as a probation employee at AHL. The probation period (6 months)
of that employee is analyzed to evaluate what is his performance and at the end confirmation letter
is issued to that employee.
AHL strongly believes in long term sustainability of its employees. It has sizable majority of those
employees, who have been working with AHL for more than two or three decades.
Training purpose
To transfer employee from one position to other/ change responsibilities and tasks
For improvement in his performance
For future development
AHL is committed to excellence in training and development of its manpower appropriate to their
duties & responsibilities. AHL key executives are sent to business schools such as Harvard,
Wharton, Stanford, IMD and LUMS. Every year company sends two employees for EMBA
(Executive MBA) to LUMS. Moreover, various employees are being sent for Atlas Diploma in
Business Management to LUMS. For continuous learning from in house resources, Human
Resource Department conducts in-house training sessions.
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Management Trainee Program
AHL attracts talented individuals for management trainee program designed to provide fast track
career growth for entry level individuals. This program helps qualified, skilled and talented
individuals to achieve high career growth with in the short span. After completion of successful
management training period individuals are placed as Assistant Manager in their respective fields.
Training process
The HR department arranges training programs for new employees. After analyzing performance
of individual by his boss, and if he is performing bad then supervisor identifies gap in his
performance, and report to manager HR then he suggests training need assessment (TNA).
The HR department also gives job rotation training after analyzing performance appraisal and
probation review of that employee.
Training institutes:
PIM
Octara
Terrabiz
Softax
Karachi IBA
LUMS
Staff training institute
Hiba
Insead France
Harvard university
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Performance Appraisal
Procedure:
Preparation &
dissemination of
performance appraisal
activity plan
Arrangement of objective
setting & performance
appraisal workshop
Distribution of
forms
• Form filling
Self appraisal by • Preliminary discussion
appraisee • Set objectives for next
year
Appraiser
form filling
Approval
Post Appraisal
interview
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Objective setting
This is the first step in performance evaluation. The company decides about what targets to
achieve by the employee.
Self-Assessment of performance
HR department takes self-assessment test from employees in which employees have to do self-
evaluation of themselves and measure the achievement of objectives.
Personal competency assessment also taken from employees based on current knowledge, skills,
abilities and personal qualities gained through experience.
After evaluating performance of employee, and if performance is low then concern department
give recommendations for training and motivate for hard work and if performance is high then
employees are encouraged by rewarding the deserving employees.
Motivation:
Employees are given rewards on the basis of their individual performance. The benefits are
different for employees of different grades. However, the general facilities provided to employees
are as follows.
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Life insurance
Medical insurance
The company pays an amount of 300000 for medical insurance of an assistant manager in a year.
Car facility
CEO Accord
General manager Honda civic automatic
National manager Honda civic
Manager Citi
Section manager Cultus
Assistant manager Mehran
Loan Facility
Loan facilities are also provided by the company to its employees. The company uses this formula
to provide loan.
The installments must be paid by the employee from the next month from when he takes loan. The
loan is deducted in 24 equal installments.
Motorcycle facility
The company provides motorcycle facility to all its employees. Motorcycle facility is provided to
employees with grade 12 and 13. For example, to AM’s and 13th grade executives, company
gives CG-125 motorcycle. For employees with grade 15 or above, 10% of total cost is paid by
the employee in 4 years. The motorcycle remains in the ownership of company.
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Bonus
Entitlements
If business tour is for abroad, then allowances are given by the company (e.g. AM’s are given
$300 as daily allowance). The tour is arranged for 2 to 3 weeks.
As a responsible corporate citizen AHL functions in a manner that save the environment and
protect the health of the people. The company believes in environment friendly production with
reduction of waste and pollution. They have comprehensive health, safety and environment
programs in which they train employees, reduce injuries and illnesses, eliminate hazards, conduct
fire fight drills etc. They practice efficient resource management in which they specially focus on
effective use of electricity and promoting recycling and reusing techniques. They have been
constantly improving environment, health and safety.
5S activities:
5-S is a Japanese technique that is used in AHL to ensure clean and pleasant work environment.
All associates perform 5-S activities at their respective workplaces.
Sort out: Defected and wasteful parts should be kept separately for more availability of space
Put in order: To reduce operation time and increase efficiency and for easily distinguishable.
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Neat & Tidy: Employees need to keep themselves and their clothes neat, clean and tidy
Discipline: The employees follow standards and correct practices that increases consciousness
and level of control
HR department of the company promotes uniformity in every function. For the uniform
appearance, it provides white uniforms that becomes a symbol to identify AHL associate in first
look. Moreover; for the ease of the employees, it provides all necessary tools and knowledge to
every employee, which makes them capable to perform well. Our system and procedures spell out
great details what every employee need to meet company’s standards and policy.
Company Picnic
To enjoy summer season, HR arranges picnic for all employees that brings staff together for fun
and food.
To faster team work and strengthen employees’ integration, HR organizes family day every year,
in which all level of staff members and their families get an opportunity to meet each other.
Security
For security, employees must have to wear their company issued ID cards. The guests are not
allowed to enter in the plant. Gate inspection of employees is also done. Keys are handed over to
the security guards, fire protection securities are also provided and employees are given
instructions and use of company vehicles for business trip only is recommended.
Attendance punctuality
The company strictly forces to be punctual and take legal actions if employees or workers do not
follow the rules and policies.
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If an employee is 4 times late in a month (e.g. less than 30 minutes late each time) then it will be
considered 1 full leave of an employee.
Leave entitlement
Leave for 26 working days is allowed to each employee, and privilege leave 1 year may be
accumulated up to 78 days only.
Maternity leave
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Marketing Department:
Marketing department of Atlas Honda plays an important role in achieving targets and increasing
revenues of the company. The general manager, Mr. Javed Iqbal Afghani heads the marketing
department. This department is sub-divided into following departments.
Sales
Institutional Sales
Service
Spare Parts
Business Development
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Marketing Department Hierarchy:
Chairman
CEO
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1. Sales Department:
It is an important division of marketing department and profit centre of the company. This
department is headed by National manager, Mr. Zafar Iqbal. The department is responsible to
sell products of the company, forecasting of sale, managing the payment, and managing the
dealership network.
Price control through self-purchase of motorcycle and parts at low cost and punish dealer who
sell bike at low price
Institutional sale
The company provides motorcycles to the institutions mainly Police departments, CSD (Canteen
Store Department), Govt. institutions and many other private businesses.
Individual sale
In individual sale, AHL sell its products through its dealers to prospective customers.
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Exports
Company also exports approximately 1000 motorcycles annually to Sri Lanka, Afghanistan and
Bangladesh. But the company’s main focus is on Afghanistan and Bangladesh to increase sales.
Lahore region
Gujranwala region
Faisalabad region
Rawalpindi region
Multan region
Central region
South region
Karachi region
There are total 29 territories of these 8 regions and each region is controlled by regional manager
whereas each territory is supervised by territory incharge. There are total 650 sale dealers, 1250
Service dealers, 300 warranty dealers and 5500 Honda Mechanics in all over Pakistan. The
increase in sales is more through dealership than institution. Last year, sales through dealers were
of 600000 units and through institutions were 60000 units.
Sales forecasting:
Sales are forecasted by analyzing the trends, sales growth and last month/ year’s targets and
achievements.
B2B System:
In marketing department, B2B (i.e. business to business) IT system is being used. This system
provides a leading edge to AHL in motorcycle industry. This system provides the following
information.
Booking information
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Information of each customer (i.e. to whom motorcycle is sold by dealer)
SAP:
SAP is an IT system for order processing and recording. It was purchased in 2006 by AHL, and is
used in almost all departments of the company.
Excise department
B2B upgradation Sale to customer
registration
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Booking
At Atlas Honda, dealers give advance payment to company to purchase motorcycles at booking
price and booking procedure of motorcycles starts when an authorized dealer makes an order slip
(includes quantity, model, color, and price) along with Demand Draft; enters his booking into B2B
portal, and then sends to respective regional office. After receiving by the company, orders are
delivered to SAP for entering booking of dealers. Then daily sheet is generated that shows booking,
delivery and pending orders. Dealers can view its entry in B2B portal.
Delivery
This process starts when territory incharges get information of stock from the plants (Sheikhupura
and Karachi) and then distribute available motorcycle stock to respective regional managers who
distribute the stock territory wise and then territory incharges distribute it to specific dealer by
keeping in view market demand, pending, dealer’s stock and sales performance. The territory
incharges report to logistic department for delivery of motorbikes. Delivery order is generated and
then motorcycles delivered at the doorstep of dealers physically from the plant. After delivery,
B2B system is upgraded to get updates anytime by AHL and dealers. The dealer then sale
motorcycles to customers and registration procedure of motorcycles takes place in the excise
department.
Registration of motorcycles:
For registration of motorbikes, a registration letter is required along with sales invoice, charges are
paid by customer, an application from dealers’ side to the company, affidavit, and customer’s
CNIC number. The customer also have to give ad in the newspaper to register motorcycle. Then
after checking by AHL and dealer that there is no defect in the motorcycle, company gives sticker
of Honda to paste on the motorbike.
Sales tax is 17%, excise duty 1% which is paid by the company and exempt to dealers.
Sales to customers:
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Credit sales (44%)
Short term credit sales (53%)
Long term credit sales (41%)
Exchange sales (6%)
Sales Dealer:
Dealers are appointed according to the demand of particular city or town by AHL. AHL includes
following type of dealers.
5-S dealers
3-S dealers
Authorized/ 1-S dealers
Smart sales point (SSP)
5-S Dealer:
A dealer that facilitates with not only sales but also with service, spare parts, second hand exchange
and safety to its customers is a 5-s dealer.in 5-S dealership, there is high investment and
showrooms are constructed as per company’s standards.
3-S Dealer:
A dealer that facilitates with after sale services and spare parts along with sales to its customers.
Authorized Dealer:
Sales
Lease
Sale & Service
Sale & Spare parts
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SSP Dealer:
Small towns where competitors have the access to serve. AHL appointed dealers with some lesser
investment to serve the areas and compete with competitors to not lose 20-30% customers. There
are less dealers and small showrooms in these areas.
It contains dealer wise data i-e booking, opening stock, delivery, stock, retail sale (motorcycles
sold to customers by dealers) and investment to monitor weekly dealer’s sales.
2. Monthly report:
It contains territory wise, model wise and dealer wise data i-e booking, delivery, pending, stock,
and retail sales and competitor’s sales.
3. 5-S report:
4. Japan report:
It is a monthly report that consists of target, booking, delivery, pending, stock, retail sales, and
prices of AHL and competitors of all regions.
A monthly report that contains all marketing activities (promotional activities, advertising through
electronic & print media, free checkups, dealers’ training and safety riding training) of Honda and
their competitors.
6. Dealer’s profile:
It contains all information of dealers such as dealers’ name, dealership establishing year, dealers’
area/city, dealer’s booking target and achievement month wise.
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7. Target report:
8. 7-Pages report:
The report contains booking, delivery, pending, stock, retail sale and investment at national,
regional and territory level.
Half year presentations are prepared by marketing department on region wise and presented to
CEO. These presentations at mid of financial year and consist of following characteristics;
Yearly Presentation
Similarly to half year, regional wise yearly presentations are also prepared by marketing
department and presented to CEO. These presentations are prepared at the end of financial year
(i.e. March) and have following characteristics;
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Institutional Sales Department:
The procedure of sales of is different from sales department. This department is headed by Mr.
Tauqeer Ahmed. The department is responsible for sales to different institutions as its customers.
The objective of this department is to serve corporate customers and remain market leader in
Government, semi Govt., Public, Private, Police, Armed Forces, Banks, etc. Government firms
include CSD, police etc. Private firms include Metro, DIDF, and Engro, Nestle, Mobilink, Fauji
cement and PTCL etc. Banks include HBL, ABL, MCB and Mezan etc. The main customers of
AHL from institutes are CSD and then Metro on the basis of its sales. More than 65% of sales are
to CSD. CSD is just like a dealer as it sale bikes to customers after buying from the company.
Last year, in 2013 sales were of 65000 units to institutions.
The department explores and take advantage of various opportunities across Pakistan by utilizing
its own and dealer as resources. The department peruse and work together with Banks and
leasing companies to offer easy installment plans for Corporate Customers to make Honda
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affordable. Currently the company has leasing facility from Mezan & Tameer Bank. Customized
motorcycles are also be produced according to the needs and requirements of the corporate client
i.e. Police, Armed Forces and courier companies.
Metro give their own invoice and then attach quote receive from logistics department. Some
institutions give tender to the company then quote is required by them. In this department, the
company responds to tender given in the newspaper, then it initiate its quotation for models to
the concerning institution that includes
Price
Quantity
Model
Name of customer
Validity of quotation
Payment
Delivery
Warranty
Taxes and duties etc.
The difference between police bike and other bikes’ quotation is in option, price and validity. If
police motorcycle is customized then price will be high. Validity of quotation for government
sectors is more than other sectors as government sectors are busy. The process needs to start
again if they don’t consider quotation. So company increases the validity period.
After the quotation is approved, the institution puts its order & the department on the receipt of
pay order, book motorcycles and forwards it to the concerned dealer for the delivery. In the end,
the required numbers of units are transferred to the customer (Institution). Different organization
purchase bike directly from AHL and dealer and retail price it depend on MOU sign by
organization. Each organization enjoys 1/5 tax relaxation on GST which is 17% if organization is
registered with government. To create image of the company institutions are given incentives.
The company gives bikes to CSD and Metro on credit that give bikes to customers on retail sale
price and company gives bikes to other institutions on advance payment. There is direct delivery
of motorcycles to CSD and Metro and other sales involve dealers. Banks are also customers of
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AHL that provide personal loan for customers to purchase motorcycles of Honda. Banks also
give the facility of staff financing to employees to buy motorbikes. CD-70, CG1-125 and CG-
125 with accessories are the most selling models to institutions. Customized motorcycles are
being purchased by Pizza Hut, TCS etc. Police bike is of model Deluxe and CG-125.
Institution • PO+Payment
• Enquiry &
Sales Dealer PO+Payment
• Purchase Order
entry & transfer
Sales the order
Department form,DD & PO
Accounts • DO approval
Department
Logistics
Department
Allocation
Motorcycle
Delivery
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Institutional Sales Department Hierarchy:
Vice President
Marketing
General Manager
Marketing
National Manager
Regional Manager
Assistant Manager
(4)
Executives
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Reports:
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Spare Parts Department:
Spare parts section is an important division of marketing department but company does not
consider it as a profitable business rather consider it as a supportive business to produce better
customer service. It is an after sales service. Both motorcycle and spare parts business is revenue
generating. The market share of spare parts business is 7-8%.
External Responsibilities:
To create the parts dealers network in the market for the support of Sales dealer’s network for
motorcycle sales as well as to coordinate the service network in providing better services to
the Honda motorcycle users.
To procure the booking orders from the market as needed to support company’s on road
motorcycle population.
To satisfy customers parts requirement to the highest extent so as to make him a loyal Honda
Customer.
To manage market demand with the parts supply in such a way to maximize company’s
profitability as well as ensuring the dealers return on investment.
Internal Responsibilities:
Coordination with the accounts department for dealers’ payment collection against their
respective orders.
Coordinate with the vendor procurement department for procurement of parts supplies by the
vendors.
Coordinate with the PPC department to get the supplies against the market based forecasting.
Coordinate with the Commercial department for the imported parts supplies.
Spare parts department consists of two teams.
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Marketing team
Operational team
Marketing team is responsible for selling products and operational team deal with internal
processes such ordering, purchasing material, vendor dealing etc. Operational team of this
department is in Karachi head office.
Approximately there are 1300 spare parts of motorcycles. AHL has highest range of spare parts
as compared to crown (competitor) that has only 500 parts.
In-house parts
AHL manufactures many parts in-house like engine, gears & cram shafts according to demand.
Approximately 2200 parts are manufactured in-house.
It also takes some parts from vendors. 60% production is in-house and 40% parts are imported
from Japan (oil, battery, filters). Most of imports came through Karachi port that’s why most
vendors are in Karachi and production of spare parts is also more as compared to Sheikhupura
plant. Is parts are imported, then order lead time is 3 months and delivered after 3 months.
From booking to delivery, standard lead time for parts is 3 days to 7 days and it takes 20-25 days
in delivery and for the batteries it is 48 hours lead time. In the parts section Back Order (BO) is
used in place of pending.
1. Original equipment manufacturing: These are actual parts that are used for the first time in
motorcycle manufacturing.
2. Spare part manufacturing: These parts are used when the actual/ original parts become
damage.
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Dealers
There are approximately 900 spare part dealers all over Pakistan and 255 in Lahore region. There
are 6 spare parts dealer categories.
5S dealer
MSP (Motorcycle service parts)
MP (Motorcycle and parts)
SP (Service and parts)
P (Parts)
Antenna dealers
If sales increases, company gives incentives to dealers e.g. Dubai/Turkey visit. Last year, sales
were of 816 Million (4 Billion on national level)
Competitors
Manually
Dealers send ordering form to the concerned department that contains quantity, delivery
period along with Demand Draft (advance payment). Then the department do entry in SAP
system and then SAP posted number is send to finance department. When payment becomes
clear, then demand is send to marketing department of spare parts to ensure delivery of parts
to dealers and parts are shifted to store rooms.
There are two main stores of AHL where parts are dispatched (Karachi where process
starts/allocation takes place and other is near Sagyan pul). After allocation, packing and
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dispatching of parts take place. AHL uses TCS service for delivery to Rawalpindi, Lahore,
Multan, Central, South, and Karachi.
Exports
AHL export spare parts to Afghanistan only. There are no 5S dealers anywhere and still need to
expand network.
Hierarchy
Packing, Delivery,
Store manager Assistant managers Executives Dispatching
employees
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Business Development Department:
This department was previously known as the Dealer Development department. It is headed by
National Manager Business Development, Mr. Adeel Safdar. The main objectives of this
department are:
Business Development department is responsible for expansion and development of AHL Sales
Dealer Network. The main role of the department is Market expansion to ensure organization’s
growth and its continuity for a longer period of time and the department is concerned with
representing a standard image of AHL to public through AHL dealers. On the other hand, dealers
are attracted towards Honda for long term dealership because Chinese companies do not have any
backup system, warranty, quality is low, resale value is very less and product range is also very
short as compared to Atlas Honda. Business Development department’s responsibility is to co-
ordinate with all other departments. If dealer’s sales goes down due to any reason then the
department provides guidelines to the sales, service, or spare parts department wherever the
problem occurs. The department takes only technical assistance (warranty/ fuel related issues)
from the service department. It is also concerned with data analysis and the training of the sales
dealers to increase sales. Total network of AHL is 593 but 160 dealers don’t have service and parts
facility.
BD Department takes following points under consideration prior to decide about the development
of dealers.
Market potential of the area with reference to market size and share
Geographical location of existing dealers
Committed current investment of existing dealers
Performance, behavior and loyalty of existing dealers
Competitor dealership network in the area
Future threat to product
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Changing market conditions
Network expansion:
BD department focuses on unserved areas where there are no dealers present in the market/ the
market where dealers are not performing well/ where there are competitors present and AHL is not
and then BD staff go in search to appoint a new dealer for business expansion.
For new Dealership, there is a requirement of area profiling which means that they look in the
market if there is a need for the new dealer or not and applicant profiling as a standard procedure.
For this, there is proper selection of dealers. Interviews are taken to evaluate willingness or
competency of a dealer to become a part of AHL business. Other than this, dealer’s education,
experience & background that the applicant should have experience in automobile industry like
installment business (electronics/ motorcycles) or second hand motorcycle business, financial
strength (dealer should have sufficient financial resources to run business smoothly), legal status
is also considered before dealership approval.
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approved agency. Atlas Honda policy is that dealers can display AHL products and parts only and
non-authorized dealers are prohibited to sell Honda products. Violation of rules is subjected to
cancellation of dealership.
BD department also focuses on an increase in the dealership network of AHL. The department
performs sales gap analysis and when there is a gap in the market the department go on to search
for new dealers in the respective area. The department also works for the retention/deletion which
means that the department decides which dealers to delete (who are non-performer) and who will
stay (who can be improved/ performing well). They are also involved in the retaining of those
dealers who want to leave but are performing well. The department retains them. In the past years
the department deleted 47 dealers and added 57 dealers in the network.
Dealer Training:
National/
Territory Showroom
Regional Employees Dealers
Incharge Staff
manager
Following type of training is given to new dealers in which company’s SOP’s, procedures and
systems are explained by AHL.
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Sales Dealer Successor Training
The company gives training to the successors of the dealers.
Sales Dealer Staff Training
This training is given to the staff of the showroom free of cost.
The BD department team also gives training to the AHL marketing team. Training is provided
on-job.
After selection, training and development, dealers are hand over to the sales department.
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Business Development Department Hierarchy:
Majid Shami
Mgr. BD (Lhr + Grw)
Javed Afghani Adeel Safdar
GM- Marketing NM Dealer
Wadood Ahmed
Development
Mgr. BD (Faisalabad)
Khadim Raza
Mgr. BD (Multan + Central)
Ahmed Javed
AM. BD (Lahore)
Imtiaz Sheikh
Mgr. BD (South + Karachi)
M. Younus
Mgr. BD (Rawalpindi)
Amanat Ali
Officer BD
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Marketing mix
Product
Price
Place
Promotion
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Product:
CD 70
CD Dream
CG 125
Pridor
Deluxe
CBR 500
CBR 150
Spare parts
Generators
The classical models are CD 70 (70cc) and CG 125 (125cc) and modern series include CD
Dream (70cc), CG Dream (125cc), Pridor (100cc), and CG 125 (125cc). The heavy bikes are
CBR 150 and CBR 500.
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CD 70:
Honda CD 70 is the first choice in motorcycles. The New CD 70 gives a perfect blend of
Japanese technology along with charismatic design, in addition to its established superiority in
terms of durability and fuel economy.
Further, 2 years engine warranty not only provides peace of mind to its valuable customers but
also the best value for their money.
New CD 70 is an ideal combination of attractive design with super econo-power and smoke-free
4-Stroke engine, which promises you the most economical ride of your life. The new eye-
catching graphics, comfortable new seat design and aerodynamic shape have made Honda CD 70
best choice and a perfect partner. Further, high resale value of Honda CD 70 proves to be a life
time asset for its customers. Atlas Honda’s extensive dealership network makes the motorcycle
and its parts, available at your doorstep and its countrywide warranty facilitates provide you
trouble free companionship.
Colors available
Features
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2 Year Engine Warranty
Technical specifications
Displacement 72 cm3
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CD Dream:
A new motorcycle regime has arrived. The Honda CD Dream Making every dream of the youth
come true Sleek, sporty, stylish design all with an amazing feeling of individuality Powered by a
superior and durable Econo power engine that’s engineered with technology, delivering
exceptional fuel efficiency and is environment friendly. Strong rear wheels and a comfortable
seat ensures a thrilling driving experience.
Colors available
Features
Technical specifications
Displacement 72 cm3
Dry Weight 82 KG
Pridor
For people who admire modern style, Honda presents its latest product Pridor. Due to its
dependable OHC Econo-Power Engine with a double cradle frame and strong suspension, this
motorcycle is the best possible travel partner on all sorts of terrain. This is the reason why Pridor
is the choice of the adventurous. Because of its aerodynamic design and sleek style every rider
wants Pridor.
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Colors available
Features
New carburetor, immediate start with stable idling and optimum acceleration
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Technical Specifications
Engine 4-Stroke OHC air-cooled single cylinder
Dry Weight 96 KG
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CBR 150
Colors available
Features
Year 2013
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Ground Clearance 190 mm
Weight 138 KG
CG-125
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 CG125. 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.
The 125 cc 4-stroke engine generates 11-Horse Power with low fuel consumption. It is ideal for
high speed, long runs and rough pathways.
Honda CG125 has a CDI Ignition System and a 12-volt battery (instead of 6-volt). The headlight
and indicators are brighter, with an easy starting-up of the engine.
Colors available
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Features
Technical specifications
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Ground Clearance 140 mm
Dry Weight 99 KG
CBR 500
Colors available
Features
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Year 2013
Engine 471 cc DOHC 4 Stroke 2 Cylinder (in line)
Bore & Stroke 67.0 x 66.8 mm
Compression Ratio 10.7:1
Starter Self Starter
Transmission 6-Speed Constant Mesh
Dimension(LxWxH) 2075 x 740 x 1145 mm
Ground Clearance 140 mm
Fuel Tank Capacity 15.5 Ltrs
Weight 194 KG
Deluxe
The Deluxe is the unique combination of power & style, a new addition in the company as 125
cc. The new power up 4 stroke engine gives same fuel economy as CG 125. An ideal model for
youth and high income segment.
Honda Deluxe has heavy duty front absorbers and 130 mm brake drum with environment
friendly non-asbestos brake shoes, Elegant contoured seat for better riding posture.
Colors available
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Features
Technical specifications
Engine 4-Stroke OHV cooled by air
Displacement 124.1 cm3
Bore & Stroke 56.5 x 49.5 mm
Compression %age 9.0 : 1
Wheel Base 1278 mm
Starting Kick start
Ground Clearance 136 mm
Petrol Capacity 12 Liter
Tyre at Front 2.75 - 18 42P
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Tyre at Back 90/90 - 18 51S
Dry Weight 112 KG
Transmission Continuous 5 speed mesh
Frame Diamond Type Steel
Dimension(Lxwxh) 2032 x 758 x 1097 mm
CG Dream
Modern design, comfortable seat, solid and unique seat bar
Contoured and sleek fuel tank with beautiful graphics and large self-locking cap
Taillight with reflector for extra glow; sporty and solid rust-free rear fender
Modern dashboard design; unique dial with textured casing
Large key, combination switch and handle lock together; lockable in both directions
Multi-reflector headlight with halogen bulb for enhanced illumination; long lasting with two tone
visor
Tried and tested, high-tech OHV design engine with unmatchable power and phenomenal
performance.
Colors available
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Features
Technical specifications
Engine 4-Stroke OHV air-cooled
Bore & Stroke 56.5 x 49.5 mm
Starting Kick Starter
Transmission 4-Speed constant mesh
Final Drive Roller Chain
Measurement 1964 x 747 x 1044 mm
Seat height 766 mm
Ground clearance 135 mm
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Fuel tank capacity 9.2 liters (reserve 2 liters)
Wheel Base 1197 mm
Tyre at Front 2.50 - 18 4 PR
Tyre at Back 3.0 - 17 6 PR
Suspension at front Telescopic Fork 103 mm travel
Suspension at back Swing arm 68 mm travel
Dry Weight 99 KG
Spare Parts
Atlas Honda Limited offers state of the art OEM standard Parts with precision technology for
replacement market of all Honda Models produced indigenously. These spare parts are perfectly
coordinated with one another and give safety, reliability and performance of optimum level.
Atlas Honda genuine Oil best suits all types of engines based on Japanese technology and is
blended and formulated for maximum performance of your bike.
Petrol generators:
All Honda power generators are equipped with its renowned 4 stroke engines, which have big
advantages of durability and cleanness. HONDA offers wide range of 1 kVA to 5 kVA models,
suitable for leisure, houses, office and construction. The annual sales of generator are 1508 units.
Generators are imported from Thailand, Japan, India, and China. EP2500 is the most selling
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generator of the company whereas EU Series sales are very low due to high prices. That’s why
company is launching new model of EP2500 with low price.
EM650Z
EP1000
EB1000
EP1800C
EP2000GN
EB2200
EP2500CX
EB3000S
EU30I
EG4000CX
EM6000GN
EG5000CX
EG6500CXS
EM10000
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Price
AHL is known for its reliability and quality products. Company’s commitment is not to sell
products only and make products but is to improve quality of products as well to increase
customer satisfaction. That is why prices of AHL products are very high as compared to its
competitors. AHL sell its motorcycles to dealers, institutions, and its staff at different prices.
The company uses single price strategy which means that AHL products have same price all over
Pakistan. AHL sell motorcycles to dealers at booking price whereas to institutions at retail price.
CD 70 69900/-
CD Dream 73500/-
Pridor 86000/-
CBR 150 660000/-
CG 125 102500/-
CBR 500 1250000/-
Deluxe 124000/-
CG Dream 105900/-
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Spare Parts Prices:
There are total 1300 spare parts of all motorcycle models. Prices of all these parts are according
to its features. Company sells and delivers parts to its dealers at company rates and then dealers
sell them at market price.
Generator prices:
Prices of all AHL generators are very high as compared to competitors.
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Place
Head Office: AHL head office is located in Karachi. Other offices are located in Lahore,
Production Plants: AHL has two plants in Karachi and Sheikhupura. All bikes and parts are
manufactured at and dispatched from these plants except battery and oil. Battery and oil are
dispatched from shell, Atlas battery limited and total atlas lubricants limited in Lahore, Multan
and Karachi.
Training and Warranty Centers: There are training and warranty centers located in
Lahore, Karachi and Faisalabad. Mechanics are given training here that how to repair the bike.
AHL has a vast network of its dealers and Honda Mechanics throughout the whole country,
which help AHL to wholesale its products to ultimate consumers. Atlas Honda gained good
market share due to its strong distribution network. In case of normal sales, the company sell its
products through authorized dealers to ultimate customers. In case of institutional sales, the
company sell motorcycles to institutions directly and then institutions sell the motorcycles to
customers or through dealers to institutions also.
AHL sells its products in 8 regions of Pakistan and every region is further divided into 29
territories:
1. Lahore region
2. Gujranwala region
3. Faisalabad region
4. Rawalpindi region
5. Multan region
6. Central region
7. South region
8. Karachi region
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“5S” Dealers
Now a days the company is emphasizing on “5S” facilities to their customers. 5s stands for
the following five facilities.
1. Sale
2. Service
3. Spare parts
4. Special sale
Sale
Service
It includes after sale service to the customers like Warranty claims, Tuning of motorcycles,
Repair of motorcycles etc.
Spare parts
Special sale
In special sale, the dealer provides the customer with credit facility on his own behalf.
Atlas Honda does not provide any support for credit sale.
Dealer also deals in second hand Honda motorcycles as the company wants that the customer
might not switch to other brand even in second hand purchasing of motorcycles.
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Promotion:
The company focuses on several internal and external programs to increase its sales. It is mostly
focusing on push strategy to promote its products. AHL promotional activities include:
Advertisement
AHL uses ATL activities like print media (newspapers) and television commercials and
BTL activities such as pamphlets, brochures, billboards on the road sides for advertisement.
For brand promotion, ads are given on different TV channels like Ten Sports.
For generators advertisement, company gives newspaper ads, cable ads, and also promote
through banners.
Promotional activities for spare parts are very low and not on media as it is a supportive
business. The company is giving awareness of their spare parts through posters, pads,
pamphlets, and brochures.
Sales promotion
Company arranges different functions i-e in Kinnaird College for awareness and test drives.
AHL gives rewards and incentives to the dealers on achieving targets such as arranges events
in PC for dealers’ competition who get more orders from customers and it sends successful
dealers to different trips such as Thailand, Indonesia etc.
For promotion of spare parts company arranges dealers or mechanics get together for new
parts awareness and motivational activities and give promotional gifts like Keychain,
ballpoints, cologne and to general mechanics (working on roads) gives shadow umbrella,
shirts, caps, oil stands etc. The company arranges oil incentive scheme ceremony. other than
this company provides incentives to dealers such as if dealers target is that 60% growth is
achieved then company arranges 5days Turkey/ 2days Dubai visit for them. It’s a 5 month
scheme from June to onward.
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Personal selling
The company also does personal selling, not to individuals but to institutional customers.
For Institutional sales, company arranges events in Pakistan post office. On achieving targets,
the dealers are also given incentives like free oil and motorcycle helmets.
CSD is given free oil scheme.
The company also provides door step service for promotion of its products such as
generators.
Training
For promotion of its products, the company has established business development department
that trained its dealers and mechanics. These mechanics not only provide services but also
promote products of company by word of mouth to make people aware.
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SWOT Analysis
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Strengths
Weaknesses
Opportunities
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Weak transportation infrastructure
Rising fuel prices
Competitors weak brand image
Females segment should be targeted
Threats
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Recommendations
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AHL promotional activities are very low as compared to competitors. So there should be more
TV commercials or advertising through print or electronic media and it should also focus and
show the target market in their ads.
There should be more hoardings and billboards of Atlas Honda motorcycles in major areas of
different cities.
The prices should be affordable for the customers to purchase a motorcycle without affecting
the quality.
Office computers are a bit problematic and software are not up to date. The computer system
should be efficient such as B2B system, Oracle, Portal, Lotus etc. All the software must be up
to date that is major problem in the company at present.
The company should give training to dealers how to use B2B system so that they can keep all
their records on a proper online system and no need to do it manually.
Stationary should be provided to each department weekly or monthly for some emergency
work requirement.
There should be a mosque inside the plant for males to offer prayer and a girl’s prayer room
as well.
The newly manufactured motorcycles are placed in large quantity as an inventory outside in
an open area. It can cause damage to motorcycles and reduces quality. There should be a proper
and large inventory storeroom to hold inventory there.
Company needs to upgrade the website. Job advertisement along with its specifications and
descriptions and other details should also be given on AHL website and provide people with
the system to apply and submit resume online on their website for jobs.
There should be proper room arranged for newly hired candidates test, interview, orientation,
selection and for training etc.
Although company is doing a lot of effort but there is still need to improve dealership network
by AHL. There is need to educate them and motivate them. The dealers should be given
incentives by the company which is not been given to them currently.
There is need to develop liaison with intellectuals and higher authorities to ensure different
suitable type of recruitment. For this, company needs to arrange different seminars in
universities, offer internships, arrange job fairs to recruit students by conducting interviews
and tests.
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All the managers of relevant department should contribute to prepare an appropriate formal
and standard written test for the candidates.
At present, Reward System of AHL is annually based. It should be quarterly to keep employees
motivated throughout the year on their high performances.
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Assignment#1
Sales:
Services:
Spare parts:
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Assignment#2
Motorcycle CD-70 and CD-Dream, both have same features then how can we
increase sales of CD-Dream that are less as compared to CD-70?
The promotional activities for CD-dream are less as compared to CD-70. CD- Dream should
be advertised more and focus on a particular segment of the population. Advertising campaigns
should be broadcasted that involves a well-known person using their fame to help promote the
product (celebrity endorsement) such as television ads and launch event appearances, in the
marketing of CD-Dream.
Events should be arranged and CD-Dream motorcycle should be given for test drive to
youngsters in schools, colleges and universities to enable prospective customers to determine
the suitability of the vehicle to their driving style, drivability, or roadworthiness, and general
operating state.
Dealers should be pushed or given incentives to promote motorcycle on their behalf and force
customers to try this model also, even when they come to buy other models at the showroom.
Because in the sales, dealers are playing a major role. If dealer is not working well, then sales
cannot be increase.
For this, selling technique training should be provided to dealers. Dealers should educate
customers and guide them about features of the model and its advantages.
Do after sales oriented promotion to remind customers of the product
Price of CD-Dream should be increased by adding some new and different features as this
model is targeting youngsters, educated people and people with high status. So there should be
more gap between prices of CD-70 and CD-Dream. Both have features and almost same prices.
That is why sale of CD-Dream is less as compared to CD-70.
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Work done by me: (Six weeks)
My first week was at sales department. There I was received by Mr. Zafar Iqbal (national sale
Manager on the first day and initially I was given orientation of the department by Mr. Imran
Siddique (Assistant sales manager) who explained me about overall procedure of sales
department.
In the 1st week I have learned SAP Software from Mr. Khuram (system officer) which is
basically starting point of sales department. Every order of motor bike received in sales
department from sales dealer is recorded in SAP software and bikes allocation are made on
number of sales order and pending basis. Moreover sometimes it depends on demand of bikes.
I have learned about different reports that are made in sales department.
Monthly Report
5-S Report
Japan Report:
Marketing Activities Report
Dealer’s Profile
Target Report:
7 pages report
I have prepared reports regarding how much booking of motorcycles is done, how much
dealer’s stock is pending and delivered, retail stock, retail sales, dealer’s investment and then
committed versus actual investment is calculated.
I also learnt how B2B system is used that basically connect AHL dealer with Honda. It include
how to make entry when dealer receives bikes, order status report that is submitted by dealer
and saved on portal and registered on SAP, ‘ok check form’ that how much motorcycles are
received by dealer, daily retail sale or record if any damage/ shortage claim sent by logistic
department. I have also prepared and viewed the travel plan on B2B system for local visit etc.
I have checked the sales customer list report. I have prepared daily information sheet that how
much booking is done today.
Demand sheet is also prepared region wise of all models that which model has more demand.
Delivery order number, chasse number is added to system when bike receive.
From all that record sale department make their report like 7 pages and monthly reports.
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I also learnt about the factors that affects sales of the company such as GDP, CPI, Currency,
Import, Export, Gold, Wheat, Sugar and Taxes (personal & sales tax) etc.
I learnt about sales forecasting by analyzing the trends and last year sales and last month’s
sales growth. With the help of sales forecasting, company meets the market demand and
reduces inventory.
I also prepared town wise sales review for two quarters and then analysis is done. This shows
how many dealers are working or not.
I was also assigned to do segmentation of Honda wave 110, the new product that is not still
launched. It is basically for females and for males with age more than 30. I have also done
4p’s of this motorcycle. For pricing, its cost should be estimated first then selling price should
be decided. For promotion, the company should focus on push strategy. The company should
force and train dealers to sale the bike.
I also compared Honda bikes registration with its competitors to analyze the market share.
I have analyzed the difference between Honda and Chinese motorbikes resale value. The
report contains actual price of CD70 model of Honda and competitors and then its value after
1 and 2 year after deducting depreciation and then compared it with competitor ones. The
resale value of Honda is more as compared to Chinese.
I have learned about different spare parts
I have also visited the ware house of spare parts. There I observed oil for generators/ engines
and filters in stock. 1000 parts approximately are delivered daily or within 48 hours. I
observed there are number of employees in the warehouse, so the timing from dispatch to
delivery is very less. The spare parts move from packing area then placed as model wise
stock, after this it is transferred to dispatch area and at the end delivered to dealers or stores
through TCS service. I also observed that deliveries are still late because of less production
of spare parts or vendor supply parts late to SPD & production department and lead time
increases.
I learned about different clients of AHL like Bank, CSD, police, army and different
organization
I learned how what are the procedure of new dealership, after and before approval process,
what are document needed to enter into new dealership
I have learned about lot of thing about new model show room which are newly built.
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In HR department, I have prepared a TNA recommended training sheet by checking
performance appraisals of the employees. There are 93 types of trainings given to employees
of AHL from different departments. I have used the oracle software in which there is
detailed information of all employees of AHL.
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References
http://atlashonda.com.pk/
http://atlashonda.com.pk/investor-relations/financial-reports/
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