HONDA CIVIC

By: Faiza Tariq Sidrah Kaleem

TABLE OF CONTENTS HISTORY HONDA CIVIC'S HISTORY FACTORY VISION STATEMENT Mission statement HONDA'S GOALS COLOURS AVAILABLE ENVIRONMENTAL POLICY CLAUSES OF THE ENVIRONMENTAL POLICY ORGANIZATION STRUCTURE COST OF PRODUCTION: 2000-2006 SALES: 2000-2006 PROFIT: 2000-2006 DIRECT AND INDIRECT VARIABLES AFFECTING SALES OF HONDA CIVIC CONSUMERS' PERCEPTION PRODUCTS' IMAGE QUALITY, INNOVATION, R&D, ENVIRONMENT-FRIENDLY THE FOUR PS 4 Ps-PRICE PRICE LIST 2006 PRICE LIST 2006-REBORN 4 Ps-PROMOTION PROMOTION-LEASING SCHEMES PROMOTION-ADVERTISEMENTS PROMOTION-DISTRIBUTION PROMOTION-DISTRIBUTION-MAP PORTERS FIVE FORCES AFTERSALES SPARE PARTS SITUATION ANALYSIS (SWOT) SWOT:STRENGTH SWOT:WEAKNESS SWOT:OPPORTUNITY SWOT:THREAT RECOMMENDATIONS CONCLUSION REFERENCES

Striving to Become a Company that People Will Want to Exist

HISTORY
The Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company Limited, Japan and the Atlas Group, Pakistan. The company was incorporated on November, 1992 and joint venture agreement was signed on August, 1993. The company is listed on Karachi, Lahore and Islamabad Stock Exchanges. On July 14, 1994, car bookings started at six dealerships in Karachi, Lahore and Islamabad. Since then the company has 16 3S(Sales, Service and Spare Parts) and 30 2S(Service and Spare Parts) Pit stops network in all major cities of Pakistan.

The Honda Civic is an automobile manufactured by Honda.

It was introduced in July 1972.

First generation (1972-1979) Second generation (1980-1983)

Third generation (1984-1987)

Fourth generation (1988-1991) Fifth generation (1992-1995) Sixth generation (1996-2000) Seventh generation (2001-2005) Eighth generation- CIVIC REBORN (2006)

Factory & Head Office: 43-KM, Multan Road, Manga Mandi, Lahore.

VISION STATEMENT
Focusing on satisfaction (customers, associates and shareholders) with challenging spirit and flexibility, we are dedicated to supplying latest generation cars with advanced technology, greater fuel efficiency and competitive prices, along with friendly and efficient after sales back up, maintaining quality as core of all activities.

Mission statement
To be a dynamic, profitable and growth oriented company through market leadership, excellence in quality and service adding value to the shares and maximizing exports. To give attractive return to business associates, shareholders as per their expectations and market value and employees according to their abilities and performance, and to be good corporate citizen to fulfill its social responsibilities.

HONDA believes that each person working, or coming in touch with our company directly or through our products, should share a sense of joy through the experience. This feeling is expressed as Three Joys. HONDAS goal is to provide joys to those who: Buy their Products. Sell their Products. Produce their Products.

COLOURS AVAILABLE
Green Metallic (NEW) Cool Red (NEW) Granite Verde Metallic Cyprus Blue Pearl Charcoal Grey Pearl Vogue Silver Metallic Frost White Grenada Black Pearl Canyon Stone Silver

ENVIRONMENTAL POLICY
HONDA ATLAS CARS (PAKISTAN) LIMITED, being responsible member of society considers the preservation of the global environment as a crucial concern.

Our environmental philosophy is firmly based on the following guidelines. Recognize the impact of our activities, products and services on environment. Formulate objectives and targets for pollution prevention, environmental impacts mitigation and resource conservation as far as technically feasible. Operate in compliance with relevant environmental laws, regulations and other requirements that apply to our activities. Create awareness and understanding about environment issues among our associates. Commitment to continual improvement of the environmental performance and review of the environmental management system to ensure its suitability, adequacy and effectiveness.

Keep public and others interested parties informed on our environment performance, if deemed necessary.

YEAR 2000

COST (Rs.) 5389786000 4583768000 4356892000 5747659000 8602391000 16304182000 24471184000

COST OF PRODUCTION
30000000000 20000000000 10000000000 0 2000 2001 2002 2003 2004 2005 YEARS
RUPEES

2001 2002 2003 2004 2005 2006

SALES
30000000000 25000000000
SALES

YEAR 2000 2001 2002 2003 2004 2005 2006

SALES (Rs.) 7985868000 5859894000 5878904000 6519069000 9358369000 16587217000 25638698000

20000000000 15000000000 10000000000 5000000000 0 2000 2001 2002 2003 2004 2005 2006 YEARS

YEAR

PROFIT (Rs.)

2000
2001

889845000
875678000

2002
2003

703698000
656154000

2004
2005

620193000
258629000

2006

1133704000

PROFIT
1500000000 1000000000 500000000 0 2000 2001 2002 2003 2004 2005 2006 YEARS

RUPEES

SALES
AFTER SALES SERVICES CONSUMER PERCEPTION THE FOUR Ps PRODUCT PORTERS 5 FORCES

QUALITY

INNOVATION R&D

PLACE

CUSTOMER SATISFACTION

PROMOTION

LEASING SCHEMES

PRICE DISTRIBUTION ADVERTISEMENTS

THE THE INTENSITY BARGAINING OF POWER COMPETITIVE OF RIVALRY SUPLIERS

THE THREAT OF SUBSTITUE PRODUCT

BARGAINING POWER OF CUSTOMERS

THE THREAT OF NEW ENTRANTS

CONSUMER PERCEPTION From 1972 to 1974, the Civic was awarded "Car of the Year Japan." In 1973, the Civic ranked third in Europes "Car of the Year" awards. It also took the top prize among imported vehicles in the U.S. Road Test magazines "1974 Car of the Year. The Civic was Motor Trend's Import Car of the Year for 1980[4] as well as its 2006 Car of the Year . The Civic has been on Car and Driver magazine's annual Ten Best list six times, in 1985, 1988 through 1991, and 1996. The Civic GX, a natural gas version of the vehicle was named Greenest Car of 2005 by the American Council for an Energy Efficient Economy. In November 2006, the Civic received the prestigious "Car of The Year" award from Brazilian magazine Auto Esporte. FIRMS IMAGE IN PUBLIC

STATUS SYMBOL MAINLY A SPORTS CARUSED FOR RACING MOSTLY YOUNG GENERATION HAS A TASTE FOR IT WITH EXCEPTIONS, OF COURSE.

QUALITY INNOVATION R & D DEPARTMENT Environment friendly products

THE FOUR PS
PRICE PROMOTION
LEASING SCHEMES ADVERTISEMENT DISTRIBUTION

PRODUCT PRICE

PRICE

PRICE LIST : 2006 HONDA CIVIC (PREVIOUS MODEL) MODEL CIVIC VTI MT (UG) CIVIC VTI MT SR CAPACITY 1590 CC SPECIFICATIONS Programmed fuel injection with VTECH engine, adjustable steering, power windows, flat floor, 10 CD changer, keyless door entry, retractable door mirrors, full leather interior, back head rest, 4-wheel disk brakes with ABS (Anti Lock Braking System), Dunlop Radial Alloy wheels with 185/15 Programmed fuel injection with VTECH engine, adjustable steering, power windows, flat floor, 10 CD changer, keyless door entry, retractable door mirrors, full leather interior, back head rest, 4-wheel disk brakes with ABS (Anti Lock Braking System), Dunlop Radial Alloy wheels with 185/15, SUN ROOF VTI with PROSMATEC transmission (Progressive Shift Management Technology) With PROSMATEC TRANSMISSION, programmed fuel injection with VTECH engine, adjustable steering, power windows, flat floors, 10 CD changer, keyless door entry, retractable door mirrors, back head rest, sunroof, 4-wheel disc brakes with ABS (Anti Lock Braking System), Dunlop Radial Alloy Wheels with 185/15 Programmed Fuel Injection with VTECH Engine, PROSMATEC Transmission, Adjustable Steering, Power Windows, Flat Floor, 10 CD Changer, Keyless Door Entry, Retractable Door Mirrors, 4 Wheel Disc Brakes with ABS (Anti Lock Braking System), Sun Roof, Map light and Driver Seat Height Adjuster PRICE (Rs.) 1182500

1590 CC

1192500

CIVIC VTI PT CIVIC VTI PT SR

1590 CC

1232500

1590 CC

1282500

CIVIC VTI PT SR

1800 CC

1282500

HONDA CIVIC (REBORN) MODEL CAPACITY SPECIFICATIONS PRICE (Rs.) 1330500

CIVIC i-VTEC (MT)

1800 CC

SOHC i-VTEC Engine, Telescopic 3 Spoke Steering, Flat Blade Wipers, Multiplex Meter, Organ Type Accelerator, Sliding Arm Rest, Z-Arm Parking Lever, Driver Seat Height Adjustment, ABS with EBD (Electronic brake force distribution)

CIVIC i-VTEC (PT) VTI ORIEL (MT) VTI ORIEL (PT)

1800 CC

i-VTEC with Prosmatec Transmission (Progressive Shift Management Technology)

1370500

1800 CC

i-VTEC with sunroof, Indecated Retractable door Mirrors, Keyless Door Entry, 10 CD Changer, SRS (Air Bags), Fog Lights, Alloy Wheels with 195/65 R 15 VTI ORIEL with Prosmatec Transmission (Progressive Shift Management Technology)

1460500

1800 CC

1500500

PROMOTION

LEASING SCHEMES UNION BANK (NO PROMO/REGISTRATION FEES) UNITED BANK LIMITED BANK AL-HABIB HABIB BANK LIMITED PRIME BANK ASKARI LEASING BANK SAUDI PAK LEASING BANK MUSLIM COMMERCIAL BANK CITI BANK DOWN PAYMENTS: MINIMUM 10% NO. OF INSTALLMENTS: MONTHLY (FROM 1yr-7yrs) INTEREST RATES: FROM 12.49% TO 15.49% INSURANCE:
EFU COMPANY: 4% AIG COMPANY: 3.95% ADAMJEE COMPANY: 3.92%

ADVERTISEMENTS
BILLBOARDS: KALMA CHOWK, LAHORE PROMOS ON INTERNATIONAL CHANNELS BEFORE AND IN THE START OF LAUNCH

IT WILL REVERSE YOUR THINKING. ALL IT TAKES IS A SINGLE GLANCE. YOU STOP IN YOUR TRACKS. THE ELEGANT SILLHOUETTE DRAWS YOU FORWARD FOR A CLOSER LOOK. YOU PEER INTO THE SPORTY COCKPIT AND YOUR PULSE RACES WITH EXCITEMENT. YOUR INSTINCTS ARE AROUSED AND YOUR FEEL DRIVEN TO GRAB THE CONTROLS. TAKING THE LEAD. HONDA CREATED A SMOOTH, CONTOURED BODY THAT SLIPS THROUGH THE AIR WITH MINIMAL RESISTANCE. THE HIGHLY PRACTICAL RESULTS ARE GREATER STABILITY AT HIGH SPEEDS, IMPROVED OVERALL FUEL EFFICIENCY AND LOWER WIND NOISE. THE AIR FLOWS SMOOTHLY OVER THE FRONT UNDERSPOILER AND ANGLED WINDSHIELD TO SHARPLY CUT OFF REAR; IT PASSED THE SIDES UNDISTURBED THANKS TO THE REDUCED WHEEL ARCH CLEARANCE: AND IT STREAMS BENEATH THE CHASSIS WITH MINIMAL TURBULENCE FROM THE SMOOTHER AND FLATTENED UNDERPANELS.

DISTRIBUTION
FOR EXAMPLE ONLY TWO AUTHORIZED DEALERS IN LAHORE: HONDA CITY SALES HONDA FORD

PORTERS FIVE FORCES

AFTER SALES
Customer Service Centers FREE SERVICES three FREE CHECK-UP SERVICES Repair and Maintenance WARRANTIES SPARE PARTS

HONDA GENUINE PARTS Buy Honda genuine parts from Honda dealers and enjoy 6 month's Honda Warranty, contribute to the countrys economy and enjoy the satisfaction of using 100% genuine Honda Parts. But if you buy the parts from open market; 1) Most probably you will be buying smuggled parts and thus committing a moral crime and robbing your country from precious revenue. 2) You will enjoy no warranty. 3) You can never be sure about the genuineness of the parts you have purchased from the open market. By using Honda Genuine Parts; 1) You can increase the life of your car. 2) You can enjoy safe & satisfactory drive. 3) You can increase the resale value of the car. It is our aim to be No.1 in customer satisfaction in all three S, Sales, Service and Spare Parts. Your help can go a long way to help achieve our goal.

SITUATION ANALYSIS (SWOT)

STRENGTH
HONDA CULTURE HONDA CAPACITY UTILIZATION SUPERIOR TECHNOLOGY SKILLED LABOUR FORCE DIFFERENTIATED PRODUCTS SOUND CAPITAL STRUCTURE TYPICAL JAPANESE MANAGEMENT STYLE INNOVATION: SEPARATE R&D DEPARTMENT

WEAKNESS
SHORT PRODUCT RANGE LATE ENTRY EXPENSIVE SPARE PARTS LIMITED PRODUCTION CAPACITY

OPPORTUNITY
RISING DEMAND FOR LUXURIOUS CARS LACK OF COMPETITIVE RIVALRY BAN ON RECONDITIONED CARS

THREAT
CHANGE IN THE POSITIONING OF TOYOTA POLITICAL INSTABILITY DERIVED DEMAND ELASTIC DEMAND IN SHORT RUN

RECOMMENDATIONS
MUST INCREASE PRODUCTION; LOWER PRICES FURTHER (a fractional decrease) increased purchasing power of higher middle class may boost sales A bit more ACTIVE advertisement campaign.

CONCLUSION
Number of Variables affecting sales. Higher demand must be met with higher supply. More active ad campaign. Environment-friendly products positive image of the firm in public Status symbol luxury product/superior good.

REFERENCES
http://research.cars.com/go/crp/buyingGuides/Story.jsp?year=New&section=Passenger& subject=Passenger&story=compact&aff= www.honda.com.pk http://en.wikipedia.org/honda_civic General Manager, Honda Atlas Cars Pakistan Limited and his team.