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