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Honda Vs Suzuki Bikes
Submitted to: prof. miss Arooj Chudhary
Submitted by:
Wajeeh ul Hassan Hashmi
Asma tanveer
Najeeb ur Rehman
Rabia anwar
Faisal anwar
Dedication
“We dedicate this project to our Parents, Family Members, and Teachers and to
each group member”. Because; whatever we are it’s becauseof our parents and
Family Member. Our teacher makes us able to face different challenges and win
those challenges. Last but not least group members, who supportus a lot and
contribute their full effort to make this project possible.
Acknowledgement
We are grateful to ALLAH ALMIGHTY, for enabling us to fulfill this tiring,
but interesting job for the completion of our report. The present project is
submitted to Mam Arooj We express our deep sense of indebtedness for her
valuable advices and encouragement and for giving us very useful information that
helped us a lot in completing this project. We also want to pay a bundle of thanks
to each and every person who has put indeed effort to make this project possible. It
is also our duty to pay thanks to our parents for the moral and financial support.
Executive Summary
Honda bikes
Honda Motor Company Limited is perhaps best known as an automaker--it is the
third largest automaker in Japan--but the company has its roots in motorcycles, and
is the world's top motorcycle manufacturer. Its best market is in the United States,
where the majority of its sales are generated. Honda's automobile productline
accounts for approximately 90 percent of its sales, and includes well-known U.S.
top-sellers such as the Accord, Legend, Civic, Prelude, and the luxury Acura.
The Accord is the second mostpurchased car in the United States, although it
actually ranks first on the country's list of most stolen (and thus, "in demand")
vehicles. Honda also produces motorcycles such as the Super Cub, Foresight, and
Shadow 750.
Suzuki bikes
Macho Suzuki founded Suzuki LoomWorks,a privately owned loommanufacturing
company,in 1909 in Hamamatsu, Japan. In1952, the company began manufacturing and
marketing a2-cycle, 36cubiccentimeter (cc) motorcycle,which becamesopopularthat in
1954 the company introducedasecondmotorcycleandchangedits name toSuzuki Motor
Company,Ltd.(Suzuki). In1985, American Suzuki openedits automotive division and wasthe
first manufacturer in the United Statescompactutility Vehicle.
Suzuki has over 45,000 employees worldwide and has about 35 main production
facilities in 23 countries and 133 distributors in 192 countries. Suzuki was
producing 6,000 motorcycles per month and had officially changed its name to
Suzuki Motor Co., Ltd.
Mission
 Honda a dynamic growth oriented company through leadership, excellence
in quality and service.
 Commitment to provide high quality motorcycles & parts.
 Suzuki Provide a platform where our stakeholders passionately contribute,
invest and excel.
 Strive to market value packed products that meet customer’s expectations.
Vision
 Honda become leader in motorcycle industry emerging as a global
competitive of production and exports.
 Suzuki recognized as a leading organization that values customer’s needs
and provides motoring solutions with strong customer care.
Objectives
 To deliver high quality products to maintain customer satisfaction.
 To strive excellence to the limit of its resources, develop its manpower
resource to its full potential.
 Provide employment opportunities.
 To develop a deep sense of loyalty, teamwork and commitment among
employees.
 Suzuki wants to become the lowest –costproducerin the industry.
 Provide employment opportunities to the people.
 Deliver those products that create customers satisfaction.
Slogan
For Honda to remain Honda, and for everyone to realize their aspirations, we
Must believe in “The Powerof Dreams’’
For Suzuki “Way of Life!”
SwotAnalysis of Honda
SWOT
STRENGHTS WEAKNESSES OPPORTUNITIES THREAD
Strengths:
 Qualified and well trained staff
 Biggest sale network
 Best productionplant in the world
 Financial Strong
 Biggest market share
 People Trusted Products
 High Quality Products
 ISO Certified
 Resale value
 Customer Care
 Customized products
 Brand Image
 Availability of Spare parts
 Best delivery system (Transportations)
Weaknesses
 High Price of Products
 Political instability
 Low per capita income of public
 Less overhead rates of competitors
 Increasing Prices of Oil
 Rising inflation
Opportunities
 Industry expansion
 Technology upgrading
 Strong Position
 Market Integration opening up
 Opportunity growing in other countries
 Newly developed Areas/Markets (e.g. Gawader)
 Favorable govt. policies
 Big Market
 Economy is expanding
Threats
 Chinese cheaper products challenges
 Free Trade & WTO
 Strong competition from competitors in near future
 Instability of Government
 High rate of Taxation
 Bad infrastructure
Swotanalysis of Suzuki
SWOT
STRENGHTS WEAKNESSES OPPORTUNITIES THREAD
Strength:
 Highest Market Share
 Lo w P ric e Vehic les
 Resale of Local Assembled Cars
 Large Distribution Channels
 Rising per capita income with changing demographic distribution
 Highly maintained supply chain
 Well Managed and highly competitive staff
 Complete understand between Distributors
 Easy available of spare parts.
Weakness:
 Scarcity of raw material
 Bargaining power of supplier is low
 Lack of coordination and linkage with Government/semi
government supporting
 Less Technical Training Institute
 Less distribution channels in sub urban
Opportunities:
 Increasing Demand for Bikes
 Effic ient Eli engine
 Large Market size to operate
 Global spare part market
 Spacesaving Small size CNG cylinders
Threats:
 Local Competitors like Toyota, and Honda
 Foreign Investment and setup production facilities
 Smuggling of Auto Parts
 Inflation rate
 Heavy Taxes
 Competition from import bikes
 Increase of Fuel Price
Market analysis including market segmentation
The marketing process starts by segmenting the market, selecting and
then positioning the service producton the mind of consumers within the
selected segment and then providing and communicating the service or
productin order to succeed in today’s competitive market. strong
marketing strategy should be put in place using the right principle and
this is what suzuki did.
Principal:
 Undifferentiating superiority
 To be inspirational to the individual
 To behave like a luxury brand
The integrated marketing mix for services can be summarized using the 4 p’s
model, which consist of product, price, promotion, place.below is how suzuki
considered each part, with regard to the segmentation, targeting and positioning
(STP)process.
Product strategy
 Suzuki bike segregates its product as Suzuki hayabusa bike and Suzuki
euro.
 honda always first to offer every class of community its provide to all like
cd70 and cd125.
Price strategy
 suzuki using skimming pricing strategy which is to offer a higher price
that what other bikes companiesoffer in the market offer.
 honda has a marketing penetration strategy so as to increase the market
share in Pakistan. if the company can deliver the same product at the
same price as compared to Suzuki bike company it has chances of
achieving its break even as its target.
Place strategy
 Suzuki bikes is popular all around in the world and its branches
spread around the world
 Honda bikes is not spread in the world it is in some selected
countries.
Promotion strategy
 By taking part in the racing events the Suzuki bikes spread direct word-to
mouth marketing which has been a matter of great appreciation.
 Honda have advertising in newspapers that mostly attract this segment like
mai ta Honda he lay sa in cheap magazines.
Level of Product
CORE PRODUCT  Bike
ACTUAL PRODUCT  daily usage
 Eye catching design
 bestracing bike
 Luxury product
 Racing bike
AUGUMENTED PRODUCT  National carrier of rider
 National carrier of racing events
Competitor’s comparison
Particulars Suzuki bike Honda bike
Year of establishment 1952 1962
Product Luxurious Basic needs
Price skimming strategy penetration strategy
Place almost 250 countries Almost 100 countries
Promotion  Indirect marketing
 Printed Adds
 Websites
 Racing events
 indirect marketing
 printed adds
 Events
 intermediars
People Professional racer Every class
Competitors Analysis
Although competing with these established market leaders is going to be very
difficult suzuki should be confident to gain the market share and achieve good
profit. Competitor’s analysis is an important part of the strategic setting up method.
As we have see in the previous analysis, the direct competitors of Suzuki bikes is a
international dealer. As far as its other europian competitors are concerned also
poses a big threat. The biggest of all is Suzuki bike .As far as indirect competitors
are concerned with Honda bike, customers receive larger value for it being more
than 10 years old in the industry, this is because of its costleadership strategy
while the other competitors offer same value as others. There is need some change
of strategy by the company.
KSF Analysis
The bikes manufacturing business is an extremely competitive marketplace. And
every company has to some key success factors (KSF). Key SuccessFactors are
those functions, activities or business practices, defined by the market and as
viewed by the customers that are critical to the vendor/customer relationship. Key
SuccessFactors are defined by the market and by the customer, not by the
company. They revolve around skills, processesand systems.
1. People
2. Products & Servicr communicative skills and crisis management
 Introduction of “iachieve” a performance based pay
2. Products & Services:this is another important key success factorfor Suzuki
bike. And honda dealing in a production industry identifying its key success factors
in the field of productand services are very important factor for attaining a better
competitive advantage. Honda KSF in productservice have been identified as:
 Spare parts available in the market
 Easy available
 Low consumption of petrol
PESTAL ANALYSIS
Uncontrollable environment are those external factors which can prohibit us or can
create hurdles between us and our business. It is also called pest analyses
which are as follow:
PoliticalEnvironment
Pakistan has to face lots of ups and down since its independence. So
many governments have been broken down by military authority and
most of the time marsh law applied on Pakistan. In this scenario no
entrepreneur was willing to invest in Pakistan except few. Due
to this market environment
was n’ ts o go o d in P akis tan. Anyho w P akis tani go vernment n
ever b eentrustworthy for any investor.
LegalEnvironment
As all countries, Pakistan also has some legislation about each sector. But like
developing countries it is hardly being imposed by authorities. Only due
to corruption government encourage smuggling and black
marketing. When anyone supported by government or give more commission to
Govt. get inside in the market and they have very soft behavior by
government for any legal action. Such unethical activities destroy all law and
legislation.
Economic Environment
Pakistan, an impoverished and underdeveloped country, has suffered fro
m decade of internal political disputes and external ongoing conflict with India.
However, IMF approved the governmentpolicies, encourages by diffe
rent foreign assistance and renewed access to global market since 2001.By
following these policies government succeed to reverse the situation
of economy during last five years
.
Socio-Culture Environment
P akis tan has s tro ng c ulture b ac kgro und and it has b een fo ll
o w in s o me particular region of Pakistan strictly. But with the passage of time
it is going to change. Thoughts of people, choices, taste and style has been
totally changed.If we talk about the transportation source in Pakistan
, People use buses, pickups etc for journey. They also have their own as well
e.g. cycle; bikes etchant lots of people are pedestrian. But now the people who
haven’t any source of transportation they also want something for their
convenience because they wants to save their time as much as they can. People
want to use such vehicle which looks beautiful and also affordable.
Technological Environment
T ec hno lo gic al fac to r als o very imp o rtant and we haven’ t c o
ntro l o n it. Technology is grooming with the passage of time. People
also want that the productthat they have is full of technology. We never control
on technology for example you launched the product last year and your
sale volume on that time is very high but after sometime due to latest invention a
lots of substitute exist in market which affect on your business

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Honda Vs Suzuki Bikes

  • 1. Honda Vs Suzuki Bikes Submitted to: prof. miss Arooj Chudhary Submitted by: Wajeeh ul Hassan Hashmi Asma tanveer Najeeb ur Rehman Rabia anwar Faisal anwar
  • 2. Dedication “We dedicate this project to our Parents, Family Members, and Teachers and to each group member”. Because; whatever we are it’s becauseof our parents and Family Member. Our teacher makes us able to face different challenges and win those challenges. Last but not least group members, who supportus a lot and contribute their full effort to make this project possible. Acknowledgement We are grateful to ALLAH ALMIGHTY, for enabling us to fulfill this tiring, but interesting job for the completion of our report. The present project is submitted to Mam Arooj We express our deep sense of indebtedness for her valuable advices and encouragement and for giving us very useful information that helped us a lot in completing this project. We also want to pay a bundle of thanks to each and every person who has put indeed effort to make this project possible. It is also our duty to pay thanks to our parents for the moral and financial support. Executive Summary Honda bikes Honda Motor Company Limited is perhaps best known as an automaker--it is the third largest automaker in Japan--but the company has its roots in motorcycles, and is the world's top motorcycle manufacturer. Its best market is in the United States, where the majority of its sales are generated. Honda's automobile productline accounts for approximately 90 percent of its sales, and includes well-known U.S. top-sellers such as the Accord, Legend, Civic, Prelude, and the luxury Acura.
  • 3. The Accord is the second mostpurchased car in the United States, although it actually ranks first on the country's list of most stolen (and thus, "in demand") vehicles. Honda also produces motorcycles such as the Super Cub, Foresight, and Shadow 750. Suzuki bikes Macho Suzuki founded Suzuki LoomWorks,a privately owned loommanufacturing company,in 1909 in Hamamatsu, Japan. In1952, the company began manufacturing and marketing a2-cycle, 36cubiccentimeter (cc) motorcycle,which becamesopopularthat in 1954 the company introducedasecondmotorcycleandchangedits name toSuzuki Motor Company,Ltd.(Suzuki). In1985, American Suzuki openedits automotive division and wasthe first manufacturer in the United Statescompactutility Vehicle.
  • 4. Suzuki has over 45,000 employees worldwide and has about 35 main production facilities in 23 countries and 133 distributors in 192 countries. Suzuki was producing 6,000 motorcycles per month and had officially changed its name to Suzuki Motor Co., Ltd. Mission  Honda a dynamic growth oriented company through leadership, excellence in quality and service.  Commitment to provide high quality motorcycles & parts.  Suzuki Provide a platform where our stakeholders passionately contribute, invest and excel.  Strive to market value packed products that meet customer’s expectations. Vision
  • 5.  Honda become leader in motorcycle industry emerging as a global competitive of production and exports.  Suzuki recognized as a leading organization that values customer’s needs and provides motoring solutions with strong customer care. Objectives  To deliver high quality products to maintain customer satisfaction.  To strive excellence to the limit of its resources, develop its manpower resource to its full potential.  Provide employment opportunities.  To develop a deep sense of loyalty, teamwork and commitment among employees.  Suzuki wants to become the lowest –costproducerin the industry.  Provide employment opportunities to the people.  Deliver those products that create customers satisfaction. Slogan For Honda to remain Honda, and for everyone to realize their aspirations, we Must believe in “The Powerof Dreams’’ For Suzuki “Way of Life!” SwotAnalysis of Honda SWOT
  • 6. STRENGHTS WEAKNESSES OPPORTUNITIES THREAD Strengths:  Qualified and well trained staff  Biggest sale network  Best productionplant in the world  Financial Strong  Biggest market share  People Trusted Products  High Quality Products  ISO Certified  Resale value  Customer Care  Customized products  Brand Image  Availability of Spare parts  Best delivery system (Transportations) Weaknesses  High Price of Products  Political instability
  • 7.  Low per capita income of public  Less overhead rates of competitors  Increasing Prices of Oil  Rising inflation Opportunities  Industry expansion  Technology upgrading  Strong Position  Market Integration opening up  Opportunity growing in other countries  Newly developed Areas/Markets (e.g. Gawader)  Favorable govt. policies  Big Market  Economy is expanding Threats  Chinese cheaper products challenges  Free Trade & WTO  Strong competition from competitors in near future  Instability of Government  High rate of Taxation  Bad infrastructure Swotanalysis of Suzuki
  • 8. SWOT STRENGHTS WEAKNESSES OPPORTUNITIES THREAD Strength:  Highest Market Share  Lo w P ric e Vehic les  Resale of Local Assembled Cars  Large Distribution Channels  Rising per capita income with changing demographic distribution  Highly maintained supply chain  Well Managed and highly competitive staff  Complete understand between Distributors  Easy available of spare parts. Weakness:  Scarcity of raw material  Bargaining power of supplier is low  Lack of coordination and linkage with Government/semi government supporting  Less Technical Training Institute  Less distribution channels in sub urban Opportunities:  Increasing Demand for Bikes  Effic ient Eli engine  Large Market size to operate
  • 9.  Global spare part market  Spacesaving Small size CNG cylinders Threats:  Local Competitors like Toyota, and Honda  Foreign Investment and setup production facilities  Smuggling of Auto Parts  Inflation rate  Heavy Taxes  Competition from import bikes  Increase of Fuel Price Market analysis including market segmentation The marketing process starts by segmenting the market, selecting and then positioning the service producton the mind of consumers within the selected segment and then providing and communicating the service or productin order to succeed in today’s competitive market. strong marketing strategy should be put in place using the right principle and this is what suzuki did. Principal:  Undifferentiating superiority  To be inspirational to the individual  To behave like a luxury brand The integrated marketing mix for services can be summarized using the 4 p’s model, which consist of product, price, promotion, place.below is how suzuki
  • 10. considered each part, with regard to the segmentation, targeting and positioning (STP)process. Product strategy  Suzuki bike segregates its product as Suzuki hayabusa bike and Suzuki euro.  honda always first to offer every class of community its provide to all like cd70 and cd125. Price strategy  suzuki using skimming pricing strategy which is to offer a higher price that what other bikes companiesoffer in the market offer.  honda has a marketing penetration strategy so as to increase the market share in Pakistan. if the company can deliver the same product at the same price as compared to Suzuki bike company it has chances of achieving its break even as its target. Place strategy  Suzuki bikes is popular all around in the world and its branches spread around the world  Honda bikes is not spread in the world it is in some selected countries. Promotion strategy  By taking part in the racing events the Suzuki bikes spread direct word-to mouth marketing which has been a matter of great appreciation.
  • 11.  Honda have advertising in newspapers that mostly attract this segment like mai ta Honda he lay sa in cheap magazines. Level of Product CORE PRODUCT  Bike ACTUAL PRODUCT  daily usage  Eye catching design  bestracing bike  Luxury product  Racing bike AUGUMENTED PRODUCT  National carrier of rider  National carrier of racing events Competitor’s comparison Particulars Suzuki bike Honda bike Year of establishment 1952 1962
  • 12. Product Luxurious Basic needs Price skimming strategy penetration strategy Place almost 250 countries Almost 100 countries Promotion  Indirect marketing  Printed Adds  Websites  Racing events  indirect marketing  printed adds  Events  intermediars People Professional racer Every class Competitors Analysis Although competing with these established market leaders is going to be very difficult suzuki should be confident to gain the market share and achieve good profit. Competitor’s analysis is an important part of the strategic setting up method. As we have see in the previous analysis, the direct competitors of Suzuki bikes is a international dealer. As far as its other europian competitors are concerned also poses a big threat. The biggest of all is Suzuki bike .As far as indirect competitors are concerned with Honda bike, customers receive larger value for it being more than 10 years old in the industry, this is because of its costleadership strategy while the other competitors offer same value as others. There is need some change of strategy by the company. KSF Analysis The bikes manufacturing business is an extremely competitive marketplace. And every company has to some key success factors (KSF). Key SuccessFactors are those functions, activities or business practices, defined by the market and as
  • 13. viewed by the customers that are critical to the vendor/customer relationship. Key SuccessFactors are defined by the market and by the customer, not by the company. They revolve around skills, processesand systems. 1. People 2. Products & Servicr communicative skills and crisis management  Introduction of “iachieve” a performance based pay 2. Products & Services:this is another important key success factorfor Suzuki bike. And honda dealing in a production industry identifying its key success factors in the field of productand services are very important factor for attaining a better competitive advantage. Honda KSF in productservice have been identified as:  Spare parts available in the market  Easy available  Low consumption of petrol PESTAL ANALYSIS Uncontrollable environment are those external factors which can prohibit us or can create hurdles between us and our business. It is also called pest analyses which are as follow: PoliticalEnvironment Pakistan has to face lots of ups and down since its independence. So many governments have been broken down by military authority and most of the time marsh law applied on Pakistan. In this scenario no entrepreneur was willing to invest in Pakistan except few. Due to this market environment was n’ ts o go o d in P akis tan. Anyho w P akis tani go vernment n ever b eentrustworthy for any investor. LegalEnvironment As all countries, Pakistan also has some legislation about each sector. But like developing countries it is hardly being imposed by authorities. Only due to corruption government encourage smuggling and black marketing. When anyone supported by government or give more commission to Govt. get inside in the market and they have very soft behavior by
  • 14. government for any legal action. Such unethical activities destroy all law and legislation. Economic Environment Pakistan, an impoverished and underdeveloped country, has suffered fro m decade of internal political disputes and external ongoing conflict with India. However, IMF approved the governmentpolicies, encourages by diffe rent foreign assistance and renewed access to global market since 2001.By following these policies government succeed to reverse the situation of economy during last five years . Socio-Culture Environment P akis tan has s tro ng c ulture b ac kgro und and it has b een fo ll o w in s o me particular region of Pakistan strictly. But with the passage of time it is going to change. Thoughts of people, choices, taste and style has been totally changed.If we talk about the transportation source in Pakistan , People use buses, pickups etc for journey. They also have their own as well e.g. cycle; bikes etchant lots of people are pedestrian. But now the people who haven’t any source of transportation they also want something for their convenience because they wants to save their time as much as they can. People want to use such vehicle which looks beautiful and also affordable. Technological Environment T ec hno lo gic al fac to r als o very imp o rtant and we haven’ t c o ntro l o n it. Technology is grooming with the passage of time. People also want that the productthat they have is full of technology. We never control on technology for example you launched the product last year and your sale volume on that time is very high but after sometime due to latest invention a lots of substitute exist in market which affect on your business