EXECUTIVE SUMMARY

Atlas Honda is the market leader in the motorcycle industry and its efficient working
shows this position can be maintained and improved even further in the years to come. Its nearest
competitors have still a long way to reach Atlas. The reasons behind this are the quality
standards at Atlas, its committed workforce and ample chances of growth at all levels in the
organization.

Atlas Honda has this exemplary tradition of orientation which gives its new recruits a clear
picture of the industry and production employed at the industry. I would like to appreciate Atlas Honda
on their efforts and wish them future success (Amen).
 ATLAS HONDA – COMPANY PROFILE

Atlas Honda Limited is a joint venture between the Atlas Group and Honda Motor Co. Japan.

The company was created by the merger of Panjdarya Limited, Sheikhupura successor to Atlas
Epak Ltd., Dhaka since taken over by the Government of Bangladesh and Atlas Autos Ltd. in
1991. Both these motorcycle manufacturing concerns were established by the Atlas Group. Atlas
Honda Limited manufactures and markets Honda motorcycles in collaboration with Honda
Motor Company. The Company also manufactures shock absorbers under a Technical Assistance
Agreement with Showa of Japan, world leaders in shock absorber technology.

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 capacity in the industry at its Karachi and Sheikhupura plants. To support the
production facilities, the company has established an R&D wing and tool making facilities,
which are growing rapidly in size and functions as the company expands.

Atlas has managed to execute 9 Joint Venture/Technical Assistance Agreements between local
vendors and foreign manufacturers for transfer of technology. Atlas management is striving to
modernize company operations by adapting applicable aspects of research and theory and more
specially, Honda's unique philosophy of hard/soft technologies to the realities of Pakistani
conditions. Efforts are being made to develop participation of all levels of personnel in decision-
making and substantial and effective delegation has been established at levels where applicable.
Various participation programmes such as 'Ala Mayar' Quality Circles movement, launched in
1985, are strongly encouraged to allow constructive self-expression and teamwork. The
Company training and development programme encourages each member to develop himself and
contribute to his full potential.
Atlas Honda is playing a pioneering role in creating conditions for easy and confident use of motorcycles
all over the country.

A vast and growing network of over 1500 motorcycles sales service and spare parts dealers has been
established. To back up this system, Atlas has set up Technical Training Centers in Karachi, Lahore and
Faisalabad, 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.

Need It Satisfy
Need of transport

Value Proposition
Its resale value
 SWOT Analysis
STRENGTHS
Atlas Honda Ltd. has following strengths.

Quality Product
Atlas Honda Ltd. has quality products, which is one of its major strengths.
Intensive Distribution Network
Company has intensive distribution network (dealers) through out the country which is it
strength.
Availability Of Parts
The Spare Parts OF the motorcycles are easily available all over the country which is
another strength of the company.
Largest Service Network
The company has the largest service network throughout the country.

WEAKNESSES
High Price
The price of Honda motorcycle is relatively higher than others.
Lack Of New Model
Company has not introduces any new model with major changes from a long time.
Lesser Promotional Activities
Company has lesser promotional activities. Usually it do not use electronic media to
promote the motorcycle but now company is adopting the strategy to use the electronic media as
well for promotion.

OPPORTUNITIES
“5S” Concept
 New concept of “5S” is an opportunity for company to develop. With this new concept
company has introduced two new “S” other than sales, spare parts and service. These are special
sales and second hand sale. According to this new idea dealers will help the customers to replace
their second hand motorcycle with new one and customers can get motorcycle on credit as well.
Poor Quality Of Chinese Brands
Chinese brands that are available in the market are not comparable with HONDA
motorcycle in quality terms. So the poor quality of Chinese brands is an opportunity for the
company as the company believes that people using Chinese brand will eventually switch back
towards HONDA because of relatively poor quality of Chinese brands.
Government Rule Of Localization
Recently government of Pakistan has passed a rule for the motorcycle industry in
Pakistan. According to this rule, within few years only that motorcycle company will be able to
sell their brands which will localize its production at a rate of 5% to 10 % each year. HONDA
has localized its production up to 89% till now. So the company is leading the industry in this
regard. This is an opportunity for company as it has more government support because of this
reason (localization).

THREATS
Market Conditions of Karachi
Karachi is most populated city of Pakistan. So it is a huge market for the company. But
now a days snatching of new HONDA motorcycle is very common in Karachi. Because of this
reason people are reluctant to buy new motorcycle. So it is a great threat for the company.
New Chinese Brands
There are more than 20 Chinese brands of motorcycle available in the market. These are
competing HONDA in price terms very badly. So it is a threat for the company.
Threats of Copy Products
Various chinese brand not only competing with Honda in prices but also in copying its
design.
 MARKETING MIX
There are four elements of marketing
 Product
 Price
 Place
 Promotion
PRODUCT
Atlas Honda has two basic products
 Honda CD 70
 Honda CG 125
Both of them are the four stroke motorcycles. Both the products have a good repute in the market
and that is the reason that Honda has approximately 63% market share now a days.
The basic reason of the success is the quality maintained by the company throughout its career.
These two models of HONDA are being manufactured in Sheikhupura and Karachi. Each plant
has a capacity to produce 250 motorcycles per day, but still the market demand is not being
fulfilled.
In order to increase market share marketing department perform following activities
 New model
 Changes in design
 In-house production
New Model
In order to get more market share atlas Honda has been introducing new models over the time.
The latest model was launched by company in 1992-93. Previously there was a small fuel tank
but in the new model company introduced a large fuel tank as compared to the previous one. But
the company always maintained the quality of its motorcycle.

Changes In Design
There was a great demand from the customers to launch a new model but it is a difficult job to
launch a new model so in order to fulfill the customer wants the company has a policy to change
the stickers of fuel tank and side covers and some other nominal changes in indicators headlights
etc. time by time, in order to satisfy customers needs. But the engine and other main accessories
are the same.

Inhouse Production
At the outset of company 90-95% parts were imported from Japan and were assembled in
Pakistan. With the passage of time company introduced the concept of localization. Company
encouraged the local vendors and suppliers to produce the parts of motorcycle according to the
level of Honda international. So in order to maintain the quality, the parts made by local vendors
were approved by the Honda international and then they were used in local production. So now
Atlas Honda has managed to localize almost 89% of the parts. Still 11% parts are being imported
from Japan. Atlas Honda also provides assistance to their vendors to maintain high quality. They
send their engineers to check the quality and to train the vendors in order to produce the required
qualitative product. This all is done under the head of marketing department.
 PRICE
Atlas Honda has two products and their prices are as under
Honda CD70 Rs. 58500
Honda CG 125 Rs. 73000
The company uses the single price strategy. It means the product has the same price all over the
Pakistan.
Initially Atlas Honda was the only producer of qualitative four-stroke motorcycle in Pakistan. So
they were taking the advantage of this monopolistic situation and using the price skimming
strategy and were charging higher prices.
Till 17th may 2003 company had the high prices for its motorcycles. Due to these high
prices the competitors found a gap and entered into the market with low prices and start
capturing market share. After the intense research work Atlas Honda was in a position to reduce
prices. The major objective to reduce the prices was to increase the market share and to utilize
full production capacity. So company has reduced Rs. 10,000 in HONDA CD70 and almost Rs.
5000 in CG 125.

PROMOTION
Promotion mix is
 Advertisement
 Sales promotion
 Personal selling
 Publicity

Advertisement
Atlas Honda uses the print media as well as electronic media for advertisement. In print media
the company gives advertisements in newspapers and it also uses billboards on the road side for
the promotion of the product.
On electronic media, company gives their advertisement on GEO channel during hourly news.
Company has a contract with AdCom (advertising agency) for all of its advertising activities.
Sales Promotion
Atlas Honda also promotes its product through different sales promotional activities.
 Company sponsors different functions and activities in main cities.
 Company provides rewards and incentives to their dealers on achieving targets. Company
send their successful dealers to different trips all over the world.
Personal Selling
The company does personal selling as well, not to individuals but to institutional customers.

PLACE
Atlas Honda gained good market share due to its strong distribution network. For distribution
atlas Honda has divided the whole country into two regions.
1. South region
2. North region

South Region
It includes following territories
 Karachi
(Karachi region covers whole Sindh province)
 Quetta
(This covers whole Baluchistan province)

North Region
It includes following three territories
 Multan
(Its includes all lower Punjab cities)
 Lahore
(It covers cities from upper Punjab)
 Rawalpindi
(It covers Islamabad and NWFP.)
“5S” DEALERS
This is a new emerging trend set by atlas Honda. Now days the company is emphasizing on “5S”
facilities to their customers through “5S dealers”.
5s stands for the following five facilities
1. Sale
2. Service
3. Spare parts
4. Special sale
5. Second hand sales

Sale
It includes only the sale of new motorcycles.

Service
It includes after sale service to the customers like Warranty claims, Tuning of motorcycles,
Repair of motorcycles etc.

Spare parts
Company provides spare parts facility to their customer
.
Special Sale
It deals with the credit facility. In special sale, the dealer provides the customer with credit
facility at his own behalf. Atlas Honda does not provide any support for credit sale.

Second Hand Sale