Atlas Honda Limited (AHL) is a joint venture between the Atlas Group and Honda Motor Co. Ltd. Japan. AHL came into existence in 1988 by the merger of Atlas Autos and Pnjdarya Limited. The manufacturing and marketing of Honda motorcycles done by AHL is through Honda Motor Company. Various components are also manufactured in-house with the collaboration of leading parts manufacturers like Nippon Dense, Toyo Denso and Showa Atsumitech. It is said that Honda Motorcycles are the largest selling motorcycles in the country and have good reputation for high quality and after sales services.

Vision

“To be a market leader in the motorcycle industry, emerging as a globally 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.

Quality Policy

Commitment to provide high quality motorcycles & parts

Right work in first attempt and on time

Maintain and continuously improve quality

Training of manpower and acquisition of latest technology

Safe, clean and healthy environment

Market leadership and prosperity for all” [i] 

Production Facilities

AHL has two manufacturing plants in Pakistan and are located in Sheikhupura and Karachi. AHL has made a number of ventures/technical assistance agreements between local and foreign manufacturers to enhance its production facilities.

Exports:

AHL does exports but at a limited level in limited countries. The exports are made to:

Bangladesh

Afghanistan

Culture:

The culture in Honda is based upon 3 Rs i.e.

Respect

Recognition

Reward

Marketing Department:

Marketing department at Honda Atlas is divided into six regions:

Lahore

Rawalpindi

Faisalabad

Multan

Raheemyaar Khan (Central Region)

Karachi

Departments under Marketing:

Marketing department consists of 5 sub-departments i.e.

Sales

Dealer Development

Service and customer care.

Parts

Institutional Sales and Exports (also handles Advertisement department)

The hierarchy is a blend of horizontal and vertical structure. GM is the head of all the marketing sections. (Sales, parts, service etc). Every section has its own National Manager (e.g. Each for Sales, Parts, and Service etc). Each NM has different Regional Managers representing different.

Concept of “S”:

The word “S” stands for ‘Service’. This term is used to identify the nature and type of services a dealer is providing.

3S concept:

‘3S’ is used for a dealer who is providing any 3 services under one roof. i.e. Sales, Service and Parts.

5S concept:

To make the product more affordable and attractive, Honda upgraded the 3S concept to 5S concept. In this new concept, 2 more service elements were introduced i.e. Leasing and Exchange system. This structure also requires enhanced area for the shop.

Exclusive Installment Dealer:

It includes dealers dealing in lease only. Such dealers do not take any advance, and charge around 35% on leasing.

Smart Point of Sales:

Customers who are equidistant from 2 dealers can go to either. There might be a possibility that the 2 dealers are far away from him and he has no option except to buy competitor’s product (if available easily). Honda has coped it by opening a branch of a nearby dealer in that area. The reason might also be unavailability of a new investor in that particular area. Honda probably will not look for a 5S or any other new dealer as if there is not much potential in the market but Honda won’t let the untapped market go for the competitors.

Institutional Sales:

Institutional sales section is made for looking after sales for institutions (mostly Government). The exports are also headed by this department.

Service Network:

Service Dealer: Process the service cards given to customers.

Antenna dealer: Antenna Dealer is above service dealer. He handles the claim.

4 Stroke Mechanics: Below service dealers, there are 4 stroke mechanics. These are simple mechanics, Honda picked them and arrange training camps to train them and named them ‘4 stroke mechanics’.

Furthermore, Honda urges its dealers to upgrade and invest in their shops by giving certain incentives.

Sales Forecasting:

Sales department do the forecasting monthly, yearly, 5 yearly and 10 yearly and is flexible enough to cater any change. It has many factors to consider (+ alpha, – alpha) as Pakistani market is very uncertain.

Customer Care and Safety:

It is a part of service department. This department often takes different safety steps to promote Honda e.g.

Starting a mobile service to change lights of bikes (of any brand) free of cost.

Training of all traffic wardens is done by Honda.

Antenna Dealer:

Antenna dealers are also called warrantee dealers. Warrantee claims are done through these dealers. If any bike is in warrantee and causing any problem or have breakage, the customer can claim the warrantee to the antenna dealers who then process the warrantee to Honda by checking the part and ensure that claim is valid. Then replace the part, entering the nature of the problem in the SAP and send the defected part to training and warrantee centre that then send it to the quality department. These dealers are experienced, educated and exclusively trained.

Antenna dealers are of 2 types i.e. Exclusive Antenna Dealers (Only for warrantee claims. Where many more dealers are also present e.g. in Lahore) and 5S warrantee dealers (those dealers who are the only dealer in town)

Corporate Social Responsibility:

AHL has put a strong focus on responsibility towards the society. AHL have a feeling that it is its duty to protect the environment so it’s all production facilities and departments are environment friendly. Also, the company is highest tax payer in Pakistan.

Product Information:

AHL is engaged in manufacturing two types of products, which are

Motorcycle

Spare Parts

AHL has introduced elegant and durable 4 models with 4 strokes. Currently AHL produces:

Honda CD70

Honda CD100

Honda CG125

Honda CG125 Deluxe

Project description:

We have selected this project with the consent of Honda Management. This is a research based project. First phase of this project is a Thorough Market research. Honda CD-70 is well known brand in market and contributing major share to the company. Honda CD-100 and CG-125 Deluxe are the models, which are not performing at desired level. Through this market research, we measured the perception and awareness of customers about Honda CD-100, CG-125 and CG-125 Deluxe. And after getting insights from this research, we have developed an integrated marketing communication plan for the company to promote these models in order to increase the sales and market share in their respective categories.

1. Problem definition and Research Objectives:

Problem Statement:

Atlas Honda’s more than 50% sales come from Honda CD-70. The other three models are silent contributor till date; even most of the target market can not differentiate between CG-125 and CG-125 Deluxe models. We want to find the basic reason behind that, as well as to propose a detailed communication plan.

Objectives of the Study:

Market Research through customer survey to study the awareness level of customers regarding CD-100, CG-125 and CG-125 Deluxe.

Integrated marketing communication plan for creating and enhancing awareness about these models.

Significance of the Study:

It will help the readers to know the consumer awareness level and perception about different brands of Atlas Honda.

The report will also highlight the positive as well as negative points of Honda bikes as well as of some other brands and competitors and will show the reasons behind preferring a particular bike.

Company has assigned a portion of their budgets for advertising but they are not getting the response of the same magnitude. Hence this study will help the company to determine their weaknesses in capturing the minds of customers.

Communication plan which we are going to propose will help the company to create awareness about different models of Atlas Honda motorcycles among their target customers.

2. Research Plan:

Data Sources:

Primary sources: Questionnaire survey and Focus Group

Secondary sources: Company data and interviews from the dealers

Research Approaches:

We are aiming to measure the awareness level and perception about Atlas Honda motorcycles therefore this study is qualitative in nature and we have undertaken surveys and focus groups as well.

Qualitative method helped to gather opinions of respondents about their awareness and perception about Honda motorcycles and some other brands also; it has also generated ideas regarding the improvements that should be made in order to make their bikes better in the minds of target audience.

Research Instrument:

The research instrument for the survey is

Questionnaire (included open-ended as well as close-ended questions)

Focus groups.

Questionnaire is interviewer filled. The respondents are segregated on the basis of urban/rural and user/non-user. Through first question, respondents are asked about the brand and model they are currently using. In second question, interviewer lists down the names of models of Honda motorcycle about which respondent have knowledge. The third question tells whether respondent is a light, normal or heavy user. In the fourth question, interviewer asks about various attributes to rank among models for which respondents have the knowledge. The fifth question tells the important attributes that are considered for bike purchase. The sixth question check which groups/factors influence the buying decision of respondent. And finally the questionnaire checks the media consumption habits of the respondents.

The focus group is included to get insight about different models of Honda motorcycles, that how people perceive about these models, what terms they regularly use for different attributes of motorcycles and what problems are they facing from various models of motorcycles.

For focus group, we invited some motorcycle users to be the part of our focus group. One focus group is conducted in Faisal town, Lahore, and the other one is at Honda service dealer, Sheikhupura.

Sampling Plan:

The non Probability multistage sampling has been adopted for the research purposes. First with Convenient Sampling method we conveniently selected Lahore city and its surrounding rural areas. Then we put a quota of 50 percent for urban motorcycles and 50 percent for rural users.

Sampling Unit:

The sample is divided on the following basis:

Urban/Rural

User/Non User

Sample Size:

We have selected a sample size of 200 for this survey.

Sampling Procedure:

Implimentation:

The research is conducted in the region of Lahore, and surrounding regions of Gujranwala, Sheikhupura and Kasur. The details are as follows:

Lahore: Garhi Shahu, Shalimar Town, Faisal Town, Punjab University, Islampura, Cantt, Samanabad, Maragzar, Iqbal Town, GT Road, Gulberg 2.

Gujranwala surroundings: Hafizabad Road, Joiyyan Wala Morr, Laddhiyan wala, Noshera Virkha Road, Qila Miyan Singh, Phatomand Pind, Mureedke.

Sheikhupura surroundings: Fransisabad, Sheikhupura bypass, Sheikhupura Lahore Road).

Kasur surroundings: Kahna nu, Kasur Road, Mustafa Abad.