united motorcycle project report

UNITED AUTO INDUSTRIES (Pvt.) Ltd.

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Presented To : Mr Tauqir Ghauri

Presented By : Saif (6), Sufyan (8),

Mateen (1), Umer majeed (10)

Program : BBA (Hons) 3rd semester

Department : Management sciences

The Islamia University Of Bahawalpur

Bahawalnagar Campus


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PREFACE

Assignments, Term reports and Internship programs are the vital

teaching techniques of The Islamia University of Bahawalpur

B.B.A (hons) program.

The aim of such activities is to develop a knowledge gain

approach in students along with their studies.

In order to fulfill this purpose department assigned us project of

UNITED AUTO INDUSTRIES (Pvt) Ltd Lahore being the

private largest private Company in Pakistan

We have tried our best to make this report comprehensive to

provide information about the strategic and functional areas of

UNITED AUTO INDUSTRIES (Pvt) Limited.


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DEDICATION:-DEDICATED TO ALL THOSE WHO

LOVE ALLAH OUR RESPECTED

PARENTS OUR RESPECTED

TEACHERS AND OUR CLASSMATES.


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Table of Contents

1. Acknowledgement

2. Introduction

3. Vision & Mission

4. Aims & Objective

5. Management of United

6. Managerial Roles which is apply at UNITED

7. Management Functions that is performed at

UNITED

8. Bibliography

9. Marketing of United

10. STP

11. Marketing Mix

12. Bibliography


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AcknowledgementAll praise to Allah Almighty, who created the universe and bestowed mankind and

gave us strength and abilities to complete this project.

We express our gratitude from the very inner core of our heart to the Holy Prophet Hazrat

Muhammad (peace be upon him)

who enable us to recognize our creator and he is forever a torch of guidance and knowledge

for entire human being .

we would like to submit our deepest gratitude to our parents, whose prayers always supported

in every task of our life and our teachers,

who really guided us to enhance our knowledge in UNITED AUTO INDUSTRIES (Pvt.) Ltd.

Lahore.

To accomplish whatever we have done in our project, there were many people along the way

who have been responsible for guiding us, advising us, encouraging us.

To them, we deeply grateful and would like to take this opportunity to offer we heartfelt

appreciation.


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IntroductionUnited Auto Industries Pvt Ltd. came into existence in 1999. In begning we introduced the

Rikshaw body with the Brand name UNITED.

In 2001We have introduced durable and economical 4-stroke motorcycles with the brand name

of UNITED.

Our manufacturing & assembling plant is situated at 1-km off Kot Radha Kishan road, Multan

road, Bhai Pheru Lahore, Pakistan.

At present our production capacity is 200,000 units per year. by the grace of Almighty Allah, our

products got a very favorable response in the market.

Our Factory is accommodated on a land measuring 720,000 Sq Ft and covered area of the factory

is about 156,000 Sq Ft.

We have a team of professionals in all departments such as marketing & sales, quality control,

production and finance & Accounts.

We have a comprehensive network of sales, service and spare parts in almost all over the Pakistan

which is

increasing day by day.In Plant we have 300 Employees working in one shift 8 hours and 1000

bikes assembled.


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Vision Statement

Our vision is to see the world as wonder full place to live, where technological

wonders may help mankind to enjoy peaceful life. UNITED AUTO INDUSTRIES

(Pvt.) Ltd. Must be a partner to the technological advancement for the delight of

mankind.

Mission Statement

Our mission is to establish Hi-Tech base to develop capability enough to adopt latest

technology for innovation and production of sophisticated products of international

standards at affordable price to serve local and global market.

Quality Policy

Excellence in quality is the core value of UNITED philosophy. TQM is in place in

all of our manufacturing processes from acquisition of raw material to delivery of the

product and follow-up until the consumption professionals from each field are

committed to ensure quality, precision and efficiency.


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Aims & Objectives:

To provide high level of customer service through:

1. Continuous improvement in plant to ensure better quality of products.

2. Continuous training of staff to develop more customer oriented marketing Attitude.

3. Well-Developed dealership network and very efficient logistics system to ensure

prompt delivery of products to the intermediaries and end user.

Core Values:

Integrity : Capability with honesty.

Excellence : Production, Marketing, Delivery.

Respect : Employees, Customers, Intermediaries, Stakeholders.

Enablers : Capacity building of employees through creating positive

Environment, Training.

Empowerment: Responsibility with compatible authority.

Societal : Contributors for well being a society.

Obeying the LawUNITED Limited is committed to comply with the laws and regulations of Pakistan.


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Management

of

United


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Managerial Roles which is apply at UNITED

•Interpersonal roles:

•International & local experienced employees.

•Informational Roles:

•Vast experience of relevant fields.

•Decisional Roles:

•Positive & timely decision

Managerial Skills at UNITED

•Technical Skills

•Every manager has a knowledge and proficiency in a specific field.

•Every manager has an ability to work well with other people.

•Conceptual skills

•Every manager has an ability to think creatively, analyzing complex situations,

understanding issues and soling problems concerning the organization.


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.Management challenges which is faced by UNITED

•Uncertain economical situation.

•Unstable political environment.

•Energy crisis.

•Devaluation of currency.

•Highly competitive market

Culture of UNITED

•Values and beliefs are shared

•Low employee turnover.

•Culture is properly descriptive.

Management view of UNITED

•UNITED management believes in Omnipotent view of management.

Managers are directly responsible for UNITED’s success or failure


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Management Functions that is performed at UNITED.

•PLANING

Setting organizational goals and established strategies for achieving those Goals, UNITED

Also established strategic and operational plan for achieved the goals.

Goals of UNITEDQualityTo ensure that our products and services meet the set standards of excellence.

TechnologyTo develop and maintain distinct business advantages through continuous induction of improved hard and soft technologiesWhy UNITED do Plan?

Because they believe planning provide direction, it can reduce uncertainty, Planning minimize

waste and redundancy, and finally due to controlling they control.

Two types of Plans are used by UNITED:

Strategic Plans : Plans that apply to the whole organization. UNITED also use Strategic level

plans for the success of UNITED AUTO INDUSTRIES.

They Set the targets and use strategic plan to achieve them. Strategic Plans involves in Long

term Objectives that UNITED wants to achieve. Capture more 10% share in market in next

year.


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Operational Plans : plan that encompass particular area of the organization. Every

department in UNITED work on Separate plan, Every department have different task for

achieving those organizational goals, so they work on operational level.

Approaches to setting goals:

In UNITED set the traditional goals by top managers and flow down the organization and

become sub goals for each organizational area. They believe top managers know what best

because they see Big Picture.

FUTURE planings:

In 2015 5 lakh unit sold

150cc bike launched near

INSHAALLAH Launched commercial car till 2016.

Parts department.

Strategic Management:

Strategic management is what top management do for organizational strategies.

Its very important for UNITED because they’re plans for how the organization will do

whatever it’s in business to do, how it will complete successfully. Who should decide what it

took to finish.

UNITED Use the corporate level strategy because every year they decide to what types of

product that company is in or want to be in.

So in corporate level they use growth strategy.


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SWOT Analysis

Strengths:

•Strong brand image.

•Strong dealer network..

•Strong after sales service.

Weaknesses:

•Lack of advertisement.

•System variations.

•Lack of product planning.

•Low income of people

Opportunities:

•Increase in product range.

•Export opportunity.

•Rising population.

•Strong positioning

Threats

•Increase in competitor

•Increase Taxes by Govt.


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United auto industries overall place at Questioned mark because his growth is rapidly increase but

Less market share then HONDA. They have many opportunities for become market leader by

increasing his investment.


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•OrganizingManagers create the structure of working

relationship between organizational members that

best allow the to work together and achieve goals.

In united they set the structure of organization after

planning for achieving those goals.

Organizational hierarchy of United:-


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Managing Director

Director Marketing and sales

sales and marketing manager

Lahore Regional


Multan Regional

sales and marketing

manager

Karachi Regional


Rawalpindi

Director Finance

Finance manaager

Lhr. Regional

finance manager

Multan Regnional

finance manager

Karachi

Finance manager

rwp region

Director Plant

Production Manager


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Organization Structure:

United auto industries develop the organizational structure

that contains lines of authority and responsibility for

members that also shows who’s report to whom. They think

this structure coordinate and motivates employees so that

they work together to achieve UNITED goals.

Organizational Design of UNITED:

•Work specialization

Work specialization is High in UNITED because they hire

specialized worker for each department to maintain the

quality of product. In plant where assembling of parts every

person specialized his work. UNITED believes work

specialization is best way to improve efficiency.


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•Departmentalization

UNITED divided whole organization in different departments for

efficiency. They divided into :-

•Functional Departmentalization(Finance, Marketing, Production)

•Geographical Departmentalization (Lahore region, Multan

Region, Karachi Region, Rwp region)

•Process Departmentalization (Inventory, Production, Finished

Goods, Paint shop)

•Customer Departmentalization(They deal with only Dealers).

In UNITED they using Cross Functional Team when they required.

At AGM all cross functional team members together and established

strategies for next years.


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•Chain of Command

UNITED set the lines of authorities extending from upper organizational

to lower level. That show shows who have authorities and who have

responsibilities.

•Span of control

Narrow span of control because 4-6 people work under the one Lower

level manager. And there is no concepts of dual bosses because each

person report only his managers and manager report to upper level.

•Centralization VS Decentralization

High centralization because top management best to known whats best

for UNITED. UNITED is very large organization lower level managers

do not want a say in decisions. But Some of middle level management

Also a part of decision making.


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•Formalization

In united Formalization is very high because tightly controlled by

Top management and defines rules, policy and procedure for

every work activities. In rules and policies UNITED set the limits

and boundries for lower level management and set the procedure

each and every work.

Mechanistic Versus Organic:

In mechanistic high specialization, rigid departmentalization, clear

chain of command, narrow spans of control, Centralization, High

Formalization.

In Organic Cross functional team, cross hierarchal team, Free flow

of information, wide span of control, Decentralization, Low

Formalization.

In beginning UNITED is Organic But with the passage of time its

became Mechanistics.


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Flow of communication at UNITED

Upward and downward flow

•In UNITED, the flow of information is strictly

downward.

•The decision at upper level is implemented

throughout the company.


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•Leading• Proper vision & directions of team leader.

•Working with and through people to accomplish goals.

•Head office mainly leads all departments regarding their function. All

the sub ordinate department officers lead the related department and

employees and loyal to the head office for their working. There is check

and balance situation for every department.

• Head office mainly leads all the related department of the split units.

Trading department is mainly the leader in split unit case for importing it

and direct reliable to the head office. For leading it also give its

requirement to its head office for finance and for the quality control of

the product.

•UNITED believes the outcome of the Leading is a level of motivation.


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•Controlling

•Monitoring, comparing and correcting work

•Due to controlling managers of UNITED evaluate how well the

organization is achieving its goals and targets and take corrective action

to improve performance. Managers will also take action to increase

performance as required.

•Managers of UNITED think Controlling is the main functions after

making the previous steps. Managers of the each department control its

own department working and are liable to the managing director.

•There is check and balance situation. In controlling, monthly and

annual basis analysis are made. •In controlling of the split units, trading department mainly control the

import of the split units. It checks the quantity of the units and quality

control department checks the quality of the split units before launching

it in the market.


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Marketing

of

United


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Segmentation and Targeted Customers of UNITED:

• Age life style

• Income Low income

• Geographic Ruler & Urban Areas

• Target Males

• Classes Lower class

Niche Marketing:

Launching special person bike is a part of niche marketing.

Positioning Strategy

The UNITED perceptually positioned itself as a brand of price

competitive and quality products. The physical positioning of

UNITED US70cc bike is on low price.


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Competitive Advantages:

UNITED offering consumers greater value, either through

lower prices or by providing more benefits that justify higher

prices.

Selecting overall positioning strategy:-

THE SAME FOR LESS:

UNITED offering the same for less can be powerfull value

proposition everyone likes a good deal then other HONDA

70cc bike price is 72000 PKR UNITED 70cc Bike price is

40000 PKR in market.


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4p,s of UNITED :

•Product

Anything that offer to the customer is product or

services.

UNITED Auto Industries offer Bikes and Auto

Rikshaw to his customers and also offer services after

sales for customers.

Now we see the all products of UNITED that offer to

market.Products of UNITED:

•70cc Motorcycle Euro2

Specially for youngsters that want to fullfil their basic transport need.


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•125cc Motorcycle Euro2Specially for Those people who loved to fly


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•100 cc Motorcycle Rikshaw4 stroke rikshaw affordable for driver then other

rikshaws good quality of body.

•200cc CNG Auto RikshawSpecially for unemployed and rikshaw driver and CNG

because it can save money of drivers and more profitable

for them.


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•70cc Motorcycle for special

personsSpecially for those person who are not able to

drive because united is carefull for whole people

that lived in community.


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We choose UNITED Bikes.

Product line:Here are bikes that UNITED offer.

•70cc euro2

•100cc

•125cc euro2

•70cc for special person

Market share:UNITED holds 30% share in Pakistan.

UNITED is market challenger. But they are try to become Market leader so their future plan is

capture more 10% share.

Product classificationIt is a Shopping Product because consumers didn’t frequently purchase and planning & effort also

involve at the time of purchasing.

Three Levels f UNITED Products and services:Core benefit: Transport

Actual product: Good Quality of product, high feature and attractive design to more satisfy the

customers need.

Augmented Product: After sale services , warranty and installation that more satisfy customers.


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Product Services and decisionsProduct attributes:UNITED provide Quality of product and also Concentrate on providing good design, style and

competitive features.

Branding:Brand is name , term, symbol that identifies the product. Name of UNITED and its symbol is

very unique.

Logo of UNITED:-

Packaging

Packaging provide protection. In UNITED we used different covers that provides the

protection to parts of bikes.

Product support services:

Customer services is another element of product strategy. UNITED offer usually

includes some support services likes free tuning , warranty , and free check up

campaigns.


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Idea screeningIdea Generation Business analysisMarket Development strategy

commercialization

product development

The new product development process in UNITED


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•Idea Generation:

They use internal and external sources to identify what type of model

required in market and what want to be launched in future. Mostly they

collect ideas from his dealers. Because they are touch with markets needs

every time.

•Idea screening:

in idea screening they reduce ideas and drop poor ideas and test the idea

in different ways it can profitable for company or not. Did UNITED have

resources to develop.

•Concept Development:

Is the new product is meaning of target customers. For example

UNITED special person Bikes is how special how benefits for special

person and what characteristic of new bike.


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•Market Development strategy:

Design market strategy for new product what outcome till one year and

how.

•Business Analysis:

did UNITED have resources to develop and is this profitable for

company and did UNITED set the affordable price for new product

after the cost.

•Product Development

After screening they develop the new model in physical model in

ordered to ensure that the product idea can be turned into a workable

product. In UNITED no need to test and concept testing because they

believes that new model they launched it will satisfy the customers.

•Commercialization:

After development they introduce new model in market at large scale

and organize seminars for product and also free test ride programs are

arranged by UNITED.


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Product Life Cycle according to 2014 Models

and Present position.


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Product Development : stage when company invest money and not

gain profit

Introduction: in introduction stage no earn profit 70cc speial person

rikshaw are place at introduction stage because it launched in 2014.

Growth: it is profitable time for company in this 100cc is going on

growth and generate a profit.

Maturity: now 70cc is place at maturity because it gave UNITED Huge

amount of profit and now enter in maturity but in 2014 after launching

the new modle of 70cc its begin with ne PLC.

Decline: united 125 place at decline and that passed away from Fad

period.


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•PricePrice is charged for a product or services to customers. Price is

competitive tools for UNITED.

UNITED sold his product line items at different prices.

70cc euro 2 40000PKR

New product Pricing Strategies

Market penetration prices:

UNITED follow the penetration strategy for new product. Because

when they launched new model set the low price to attract the customer.

They adopt penetration pricing strategy according to quality & features

of their product.


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Product Mix pricing strategies:

Product line pricing:

setting price steps between product line items. UNITED do not follow

this. Because its all product line items sold on different products.

Optional Price:

Pricing optional products sold with the main product. UNITED charged

different price if optional thing sold with main product For example

UNITED sold Rikshaw body for 70cc.

Captive-product pricing:

United set the minimum price of product that use with main product for

example Fuel tank of united charged at 1200PKR, head Lights charged at

450 PKR.


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Price Adjustment strategiesDiscount and Allowance Pricing:

UNITED gave the promotional allowance to Channel members and charged less if they

ordered 30 bikes and also gave to his dealers incentives.

Segmented Pricing:

There is no segmented price for any customer each and every customer pay same price

on 70cc.

Promotional Pricing:

Temporarily reduce prices for Limited offer when launched new product.

Geographical Pricing:

UNITED adjusted different prices to the geographical location of customers. In Lahore

70cc 38500PKR , Southren Punjab 39500 PKR, Multan region 70cc 40000 PKR.

In which they use zone pricing.

International Pricing:

UNITED exports his bikes to South africa and Bangladesh and set the different prices to

them so in international trade they use different pricing because here many factor

involve for to do trade.


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•Place

Channel of distribution:Well UNITED has a great supply chain. Which is also a unique plus point of it.

UNITED has about 190 Dealers in Pakistan so UNITED is serving in all over the

country.

Indirect Market Channel:

It is a channel with one or more intermediary level. The general public can

buy UNITED products through distributors. UNITED has been network Regional

sales force is connected with distributors.They offer them incentives, schemes for

cost sales and always adopt policies in response to competitors. In United only one

channel member Between UNITED and cutomer. Because they do Business to

Business Marketing.

.


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Number of marketing channel members:

Intensive marketing system used by united because they want

to stocking the product in as many cities of different areas as

possible.

Responsibilities of channel member:

•Follow the conditions for sale

•Agree on price policies

•Care full about new resellers

•Work in territory


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which Logistics function used by UNITED?

Transportation :

The choice of transportation carries affects the pricing of products,

delivery performance and condition of goods when they arrive all of

which affect the customer satisfaction. Truck transportation use by

UNITED in Pakistan. They also used Intermodal Transportation in which

they use Air + Truck for Bangladesh and south Africa.

Integrated Logistics Management:

Third party logistics:

UNITED have no its own supply chain they use 3PL.


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•Promotion

Promotion Mix•Advertising:The objectives of advertising are:

To increase sales.

To increase recall of products.

To restore message in consumer’s mind

They use sign boards, tv media for advertising.

•Sales promotion:

UNITED believes short term incentives encourage to dealer

purchase more bikes. It Also increase company sales.


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Bibliography

Head Office Lahore75-E Maulana Shaukat Ali Road, Johar Town, Lahore - Pakistan.Tel: 0092-42-35201881-3Fax: 0092-42-35201884


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