main objective of the study is to discuss the international marketing
strategies used by Honda Group to enter into Pakistani Automotive Car Market
from 1992 to 2016 and the retrospective recommendations of what international
marketing mix strategies to be applied by the company especially after non
growing trend in their market share and upcoming threat of new international
entrants into the market.
The automotive industry of Pakistan is a growing industry controlled
by Japanese manufacturers, namely, Toyota, Suzuki, and Honda all
have assembly plants and all co-owned with local partners. By a large margin, Honda is the preeminent engine maker in
the world with an output of more than 20 million internal combustion
motors annually; Honda vehicles are the most durable and long-lasting of
any automaker, with 75% of its cars and trucks sold in the last 25 years
still on the road (Rothfeder 2014).
Honda Atlas Cars is a joint venture between Honda
Motor Company Limited, Japan and the Atlas Group, Pakistan.
The company was incorporated in 1992 and since then, the company has developed
twenty five 3S dealers (Sales, Service and Spare Parts) fifteen 2S dealers
(Service and Spare Parts) and six 1S dealers (Spare Parts) network in all major
cities of Pakistan (Business Recorder 2017).
Honda has always looked to international markets as
opportunities which have helped the company to plan its production and
technology from the start and viewed the rest of the world as potential
customer base. While entering into the Pakistani market, the company targeted
the growing middle class and upper class section of the population with high
income earnings along with premium and market skimming price settings.
In terms of Automotive Car Market, Suzuki (33%) and Toyota (28%)
have grown faster and have high market shares than Honda (25%) (Hembel,nd).
Honda, being a Global company and being a steady grower in local Pakistani
Automotive Car Market is facing the threat of decreasing market share from
existing competitors and from new international entrants. Likewise, in terms of Pakistani Automotive
Motorcycle Market, Honda has turned the tables and has a growing market share
of more than 50%, leading the motorcycle industry with the adaption of more localized
marketing strategy, wider target market and different market mix strategy.
In view of this, this term
paper will bring a case study about the
challenges and opportunities faced by the Honda Motor Co. while entering into
the Local Pakistani Car Market and adopting to the public, different
internationalization strategies applied by the company to enter and gain stable competitive position in this market
during 1992-2016, and finally the recommended International Marketing Mix Strategies
that should have been applied retrospectively by the company to become the growing
company in Pakistan’s Automotive Car Market.
There were many challenges and opportunities faced
by the company when it was entering the Pakistani Automotive Market starting
from 1992. I will briefly discuss some of the salient features below:
2a. Macro and Micro Analysis
Following are the external challenges
faced by the company before entering the local market and how Honda
strategically converted them for their benefit: