FINAL PROJECT         MARKETING STRATEGY      AND COMPETITIVE POSITIONINGMETALHEADSHonda‟s Car Protection Facility     MAR...
2|Page
ACKNOWLEDGEMENTI thank the Almighty for giving me the strength and vision to complete this report on time andhopefully err...
EXECUTIVE SUMMARYMetalHeads (Honda‟s car protection facility) is a subsidiary of Honda that provides armoredservices in Pa...
Table of Contents:Acknowledgements ..........................................................................................
COMPANY SUMMARYWhat we want to offer is something which would satisfy the second level of need for those whoare seeking sa...
SERVICESMetalHeads would provide armoring vehicle service according to the international protectioncriteria. MetalHeads wo...
•   Testing of the car which includes waterproofing, checking the weight instability due           to ballistic steel plat...
MARKET ANALYSIS SUMMARYArmored car service is a business that has become a necessity for those who belong to the upperand ...
SWOT ANALYSISThe SWOT analysis of MetalHeads is discussed below:Strengths             Honda is a reliable and well establi...
PEST ANALYSISPolitical Situation   • Political situation in Pakistan currently is uncertain. Such projects might face reta...
MARKET SEGMENTATIONOn the basis of demographical, geographical, psychographic and behavioral factors we havesegmented our ...
MARKETING STRATEGYIn order to market our services we will send brochures to the government offices, armed forcesand other ...
SALES FORECASTDirect unit costs reflect direct costs in producing the items but do not including labor and otherexpenses f...
Rs. 1,824,400Table: 2                                        Sales ForecastUnit Sales                      Year 1         ...
MANAGEMENT SUMMARYMetalHeads would be comprised of 20 employees out of which five would be responsible for thecomplete man...
BUDGETINGStart-up FundingStart-up Expenses to Fund                   Rs. 390,000Start-up Assets to Fund                   ...
REFERENCESHigh Protection Company 2011, USA, Build your own armored car, viewed 12 April 2011,       < http://www.highprot...
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Honda armoring

  1. 1. FINAL PROJECT MARKETING STRATEGY AND COMPETITIVE POSITIONINGMETALHEADSHonda‟s Car Protection Facility MARKETING PLAN By: Sadiq 110034
  2. 2. 2|Page
  3. 3. ACKNOWLEDGEMENTI thank the Almighty for giving me the strength and vision to complete this report on time andhopefully error free. I dedicate this work to my Friends, who have always been inspiring figures in my life. 3|Page
  4. 4. EXECUTIVE SUMMARYMetalHeads (Honda‟s car protection facility) is a subsidiary of Honda that provides armoredservices in Pakistan. Initially the company will serve customers owning Honda Accord andHonda Civic. As the company mature with time it will offer the services to a broad range ofmodels. The services provided at MetalHeads are of high quality, providing the customer‟s safe,secure and comfortable journey by building a fort around their car i.e. by making their cars bulletproofed.The armored industry has not yet been introduced in Pakistan. People import armored vehiclefrom international markets and pay huge sums of money. There is a high demand for armoredvehicles due to the growing terrorism and personal rivalries among the elite and upper socialclasses. As there are no other companies offering these services in Pakistan, hence, there will beno competition for MetalHeads in Pakistan. Due to this monopoly high profit margins can becharged.The vision of the company is to expand its workshop facilities to 22 major cities in Pakistan,establish a research and development department which will search and develop new compositematerials which would be lighter in weight and more economical. MetalHeads also aims tomanufacture its own raw material required for the armoring vehicles. 4|Page
  5. 5. Table of Contents:Acknowledgements ....................................................................................................................................... 4Executive Summary ...................................................................................................................................... 5Company Summary ...................................................................................................................................... 7Services ......................................................................................................................................................... 8Objectives ..................................................................................................................................................... 9Mission.......................................................................................................................................................... 9Keys to Success............................................................................................................................................. 9Market Summary Analysis ......................................................................................................................... 10SWOT ......................................................................................................................................................... 11PEST ........................................................................................................................................................... 12Market Segmentation .................................................................................................................................. 13Target Market Segmentation ....................................................................................................................... 13Competitive Edge........................................................................................................................................ 13Marketing Strategy...................................................................................................................................... 14Sales Strategy .............................................................................................................................................. 14Sales Forecast......................................................................................................................................... 15-16Management Summary ............................................................................................................................... 17Personnel Summary .................................................................................................................................... 17Budgeting .................................................................................................................................................... 18References ................................................................................................................................................... 19 5|Page
  6. 6. COMPANY SUMMARYWhat we want to offer is something which would satisfy the second level of need for those whoare seeking safety in the current unsafe environment around us. It is merely impossible to havean upper need satisfied without the satisfaction of lower level of needs. Safety, it is somethingwhich every individual looks forward to; no matter the class or the income level, it is humantendency to work hard to achieve a secured environment around him. He tries to protect himselfalong with his love ones to the extreme of his capacities. MetalHeads would provide completeservice of bullet proofing of selected vehicles to a B6 ballistic protection.At the start of the firm these services are restricted to certain models but as the company growsthe services would be applicable to more models. Currently, there is a huge market for thisbusiness since there is no firm providing such services in Pakistan. There are many businesspeople and executives who demand such services constantly for their big fleet of vehicles.MetalHeads has a future vision of making these services affordable. MetalHeads would dedicateits resources for research and development department to seek for new technology of compositematerial. The Vision is also to have 180 degree vertical integration to be self-sufficient in all theraw material required and with R&D advance the technology to make it more efficient andeffective.COMPANY OWNERSHIPMetalHeads would be a privately owned limited liability company working as a subsidiary ofHonda. The company would be administrated and owned by Honda and profits would be sharedequally among the partners and shareholders in terms of dividends. 6|Page
  7. 7. SERVICESMetalHeads would provide armoring vehicle service according to the international protectioncriteria. MetalHeads workshop facility would be established near Tarnol on Fateh Jang road. Theprotection service would be a complete transformation to ballistic proof vehicle. At the initialstage MetalHeads would provide the services to only two selected vehicles. The two models ofvehicle include Honda Accord and Honda Civic. The complete armoring services include thefollowing tasks which would be provided by MetalHeads as a complete Package. 1. Engine bay protection including battery, radiator and reengineered air scoop. 2. Interior floor bomb blast protection and ballistic armored walls. 3. Bullet proof and ballistic windows. 4. Reinforced door hinges and alignment supports. 5. Run-flat wheel inserts to keep vehicle moving under attack. 6. Complete ballistic armored firewall which provides maximum protection for vehicle occupants. 7. Large ballistic armored firewall which provide maximum protection during assault. Overlaps upholstered to match vehicle interior. 8. Suspension system reinforcement necessary to compensate for the additional weight.MetalHeads would take 30 days to complete the services.MetalHeads would follow the following plan for the specified 30 days to render the completearmoring service: • Striping of the interior of each car would take four days. • Chassis analysis and kit assembly would take eight days. • Fitting of kit inside the car would take five days. • Fitting of the car interior would be completed in four days. • Shocks and tires would be installed in one day. 7|Page
  8. 8. • Testing of the car which includes waterproofing, checking the weight instability due to ballistic steel plates and welding tested through Ultraviolet light will complete in two days. • Adjustments to the car‟s weight would be done in a two days time period.OBJECTIVES 1. MetalHeads aims to provide high quality armoring services to its customers and to maintain long term profitable relationship. 2. MetalHeads looks forward to constantly grow the sales with time and maintain direct and indirect costs. 3. After three years MetalHeads would offer armored service which would be applicable to many vehicles.MISSIONAlways striving to fulfill our clients and employees needs through clear communication,teamwork and integrity, with the desire to provide superior quality, technologically advancedprotection and safety services.KEYS TO SUCCESSKeys to success for the company will include: 1. Maintaining a reputable and untarnished reputation in the community. 2. Quality care. 3. Competitive pricing. 4. After sales services. 5. Technologically advanced methods. 6. Skilled workforce. 8|Page
  9. 9. MARKET ANALYSIS SUMMARYArmored car service is a business that has become a necessity for those who belong to the upperand upper middle social class. In Pakistan due to the high terrorism rate the selected marketsegment is becoming more prone towards uncertain situations and has created a demand forarmored cars. The selected segment includes the rich people who are willing to pay a lot for theirsecurity. There is no other firm which is providing these services in Pakistan the people whodemand these services have no option other than to import armored vehicles which costs them220 to 250 percent more than what MetalHeads has forecasted. This would create a lot demandfor our services. We did a survey in HIT (heavy industries Taxila) as they are providingarmoring services to only the Government. The managing Director of HIT mentioned thatcurrently they are only armoring government vehicles and that there are many armed forcesvehicles listed in the waiting list of HIT to get bullet proofed. They do not entertain civilianshence the businessmen, civilians, foreigners living in Pakistan and others have to import bulletproof cars from Dubai and other countries around the world which costs them more then what weare offering here at MetalHeads.As there is no other company in Pakistan providing such services so MetalHeads would have amonopoly and no competition in Pakistan. This will increase the growth and profit margins ofMetalHeads and allow it to achieve maximum forecasted sales in the coming years. 9|Page
  10. 10. SWOT ANALYSISThe SWOT analysis of MetalHeads is discussed below:Strengths Honda is a reliable and well established brand name in Pakistan. First company in Pakistan to offer armoring services. Offered services are highly cost effective for customers. Low bargaining power of customers.Weaknesses Lack of trust due to no previous experience. No brand loyalty. High dependency on suppliers.Opportunities High demand rate. Cheap skilled labor availability. High growth in terrorism rate.Threats Government regulation. High bargaining power of suppliers. HIT may start civil vehicle armoring. 10 | P a g e
  11. 11. PEST ANALYSISPolitical Situation • Political situation in Pakistan currently is uncertain. Such projects might face retaliation from government institutions e.g. Heavy Industries Taxila is backed by the government and that might serve as barrier for MetalHeads to easily break into the armoring services, as these services are being provided by HIT but on limited basis.Economic Situation • Economic condition of Pakistan faces many difficulties. High dependency on foreign aid and weak industrial output has brought the Pakistan‟s rupee worth down drastically. Commodity prices are therefore rising on daily basis and imports are imposed with heavy taxes. In this situation MetalHeads will have to find out ways to acquire raw material from within the country to cut extra costs on imports.Social Situation • Investment in car armoring services should not be facing any hurdles from the country‟s social classes. But it could create inferiority complex among the classes who would not be able to afford such expensive services. Secondly, it might raise issues related to the environment and therefore environmentalists might take some action. MetalHeads will have to portray itself as a company which provides protection, not just to the elite of the country but in fact it is working to minimize the costs of such services (through R&D) so that majority of the people could take afford such services.Technological Situation • Pakistan lacks proper infrastructure for such services to be fully operational. A lot of training for the professionals would be necessary to work on such a project. 11 | P a g e
  12. 12. MARKET SEGMENTATIONOn the basis of demographical, geographical, psychographic and behavioral factors we havesegmented our market into following segments:There are no geographical boundaries to our segmentation but initially we will be focusing onPakistan only.Area: PakistanOccupation: Businessmen, politicians, armed forces personals.Life style: Landlords, VIP‟sSocial class: Upper middle, upper and elite.TARGET MARKET SEGMENT STRATEGYThe target market for MetalHeads is all those who want to travel by road safe and secure andthose who are willing and able to get their cars bullet proofed. For the first three years the targetmarket is restricted to those who want to buy the services for Honda Accord and Honda Civic.The target market chunk would be increased after three years when MetalHeads would offer theservices which would be applicable to many other models.COMPETITIVE EDGEIn a myopic view MetalHeads is a monopoly for Pakistan. But in the broader vision thecompletion lies with the international market. The primary competitive edge that MetalHeads hasis its affordable prices further more since it is established in Pakistan it would provide completeafter sales services for the targeted customers. MetalHeads will also provide life time warrantyfor its services. 12 | P a g e
  13. 13. MARKETING STRATEGYIn order to market our services we will send brochures to the government offices, armed forcesand other political figures. We will also advertise in “Pakistan and gulf Economist” and otherbusiness magazines to communicate our unique services to our target market. We will also usedirect marketing through our contacts and word-of-mouth marketing.SALES STRATEGYMetalHeads would sell their services by using the direct sale approach. The owners of thecompany would personally contact all the customers in the target market to achieve theforecasted sales. The heads would also use their personal contacts to communicate theadvantages to create awareness among the customers. Furthermore a selling department wouldprovide all the necessary information in the market and create long term profitable relationshipwith the existing customers and attract new ones to achieve long term sales growth. 13 | P a g e
  14. 14. SALES FORECASTDirect unit costs reflect direct costs in producing the items but do not including labor and otherexpenses for providing the service. The direct unit cost (only raw material) which will beincurred by MetalHeads for the two initially selected models is as below. 1. Honda AccordSr. No Part description Unit Price Quantity Total Price1 Armox 500 B6 Armored steel Rs. 350,100 4 Rs. 1,400,400 plates ( size 5x2 meter )2 Armass B6 bullet proof glass - Complete set Rs. 1,100,0003 Bilstein heavy duty Shocks Rs. 17,500 4 Rs. 70,0004 Firestone Run flat tires Rs. 15,000 4 Rs. 60,0005 Firestone Run flat inserts Rs. 7,000 4 Rs. 28,000 Rs. 2,65,8400Table: 1 2. Honda CivicSr. No Part description Unit Price Quantity Total Price1 Armox 500 B6 Armored steel Rs. 220,100 4 Rs. 880,400 plates ( size 5x2 meter )2 Armass B6 bullet proof glass - Complete set Rs. 800,0003 Bilstein heavy duty Shocks Rs. 14,000 4 Rs. 56,0004 Firestone Run flat tires Rs. 15,000 4 Rs. 60,0005 Firestone Run flat inserts Rs. 7,000 4 Rs. 28,000 14 | P a g e
  15. 15. Rs. 1,824,400Table: 2 Sales ForecastUnit Sales Year 1 Year 2 Year 3Honda Accord 35 37 40Honda Civic 18 21 23Total Unit Sales 53 68 63Unit Prices Year 1 Year 2 Year 3Honda Accord Rs. 2,658,400 Rs. 2,658,400 Rs. 2,658,400Honda Civic Rs. 1,824,400 Rs. 1,824,400 Rs. 1,824,400Sales Year 1 Year 2 Year 3Honda Accord Rs. 93,044,000 Rs. 98,360,800 Rs. 106,336,000Honda Civic Rs. 32,839,200 Rs. 38,312,400 Rs. 41,961,200Total Sales Rs. 1,258,832,00 Rs. 1,366,732,00 Rs. 14,829,7200Direct Unit Costs Year 1 Year 2 Year 3Honda Accord Rs. 2,000,000 Rs. 2,000,000 Rs. 2,000,000Honda Civic Rs. 1,000,000 Rs. 1,000,000 Rs. 1,000,000Direct Cost of Sales Year 1 Year 2 Year 3Honda Accord Rs.70,000,000 Rs.74,000,000 Rs.80,000,000Honda Civic Rs. 1,800,000 Rs. 2,100,000 Rs. 2,300,000Subtotal Direct Cost Rs. 71,800,000 Rs. 76,100,000 Rs. 82,300,000of SalesTable: 3 160,000,000 140,000,000 120,000,000 100,000,000 80,000,000 Honda Civic 60,000,000 Honda Accord 40,000,000 20,000,000 0 Year 1 Year 2 Year 3 Graph: 1 „Sale by Yea 15 | P a g e
  16. 16. MANAGEMENT SUMMARYMetalHeads would be comprised of 20 employees out of which five would be responsible for thecomplete management of the company. Four managers who are also the owners of the companywould dedicate their 50 percent of time to the administrative matters and in the future it would bereduced after forming a complete Administrative department. The last manager would be themanager of sales department with team of three employees working under the sales manager.Most of the sales would be through personal selling and the sales manager would be responsiblefor making the forecasted sales. Other employees include two automobile fitters, five welders,two mechanics and one electrician all these employees would be professional technicians; theyare responsible for converting an ordinary vehicle into armored protected vehicle and theseemployees would be supervised in detail by two Techtronic Engineers.PERSONNEL PLANFor the first year all of the operations and administrative issues would be handled by the ownersof the company. All the experience acquired in the first year would be recorded and with the helpof all those experiences an administration department would be established in the 2nd year withproper job descriptions. After establishing the administration department the administrativeburden would decrease from the owners and will allow them to focus on creating sales for thecompany.The production employees would be supervised and closely monitored by two supervisors toensure the quality of the services. All the employees and the owners of the company would workfor 48 hours a week. 16 | P a g e
  17. 17. BUDGETINGStart-up FundingStart-up Expenses to Fund Rs. 390,000Start-up Assets to Fund Rs. 17,640,000Total Funding Required Rs. 18,030,000AssetsNon-cash Assets from Start-up Rs. 20,640,000Cash Requirements from Start-up Rs. 2,000,000Additional Cash Raised Rs. 1,970,000Cash Balance on Starting Date Rs. 3,970,000Total Assets Rs. 24,610,000Liabilities and CapitalLiabilitiesCurrent Borrowing Rs. 0Long-term Liabilities Rs. 0Other Current Liabilities (interest-free) Rs. 0Total Liabilities Rs. 0CapitalPlanned InvestmentOwners (Honda) Rs. 20,000,000Investor Rs. 0Additional Investment Requirement Rs. 0Total Planned Investment Rs. 20,000,000Loss at Start-up (Start-up Expenses) (Rs. 390,000)Total Capital Rs. 19,610,000Total Capital and Liabilities Rs. 19,610,000Total Funding Rs. 20,000,000 17 | P a g e
  18. 18. REFERENCESHigh Protection Company 2011, USA, Build your own armored car, viewed 12 April 2011, < http://www.highprotectioncompany.com/>Honda Motors 2011, Pakistan, viewed on 12 April 2011, <http://www.honda.com.pk/> 18 | P a g e

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