Toyota Project New
Toyota Project New
Toyota Project New
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PARENT COMPANY
TOYOTA MOTOR CORPORATION, JAPAN
The Toyota Motor Co. Ltd was first established in 1937 as a spin-off
from Toyoda Automatic Loom Works, one of the world's leading
manufacturers of weaving machinery. The Toyoda Automatic Loom
Works was then headed by Japan's "King of Inventors" Sakichi
Toyoda. The patent rights to one of his machines had been sold to
Platt Brothers (UK) and provided the seed-money for the
development and test-building of Toyota's first automobiles.
August 1997 marked the 60th anniversary of TMC. The fledgling
company founded by Kiichiro Toyoda, Sakichi's son, has since
blossomed into the leader that it is today. In 1950 the company
experienced its one and only strike. Labor and management emerged
from this stoppage firmly committed to the principles of mutual trust
and dependence, and that corporate philosophy still guides growth
today.
Production systems were improved in the late 1950s, culminating in
the establishment of the 'Toyota Production System.' It became
known as TPS in 1970 but was established much earlier by Taiichi
Ohno. Based on the principles of Jidoka, Just-in-time and Kaizen, the
system is a major factor in the reduction of inventories and defects in
the plants of Toyota and its suppliers, and it underpins all our
operations across the World. Toyota launched its first small car (SA
Model) in 1947. Production of vehicles outside Japan began in 1959
at a small plant in Brazil, and continued with a growing network of
overseas plants. Toyota believes in localizing its operations to
provide customers with the products they need where they need
them; this philosophy builds mutually beneficial long-term
relationships with local suppliers and helps the company fulfill its
commitments to local labor.
Over and above manufacturing,Toyota also has a global network of
design and 'Research and Development' facilities, embracing the
three major car markets of Japan, North America and Europe.
HOW IT STARTED
1918: Sakichi Toyoda establishes Toyota spinning and weaving
Co. ltd.
1926: Toyoda Automatic loom works ltd. Established.
1936: Production of model AA passenger cars begins.
1937: Toyota motor co. ltd. Established.
1962: Toyota motor co. Thailand established.
1964: Toyota Canada established.
1965: Toyota ltd. Established in United Kingdom.
1971: Toyota Deutschland established in Germany.
1972: Toyota manufacturing Australia ltd. Begins operation in
Australia.
1984: NUMMI begins operation in the US.
1992: Toyota motor manufacturing (UK) ltd. Begins operation .
1996: Toyota motor manufacturing North America established.
1997: Toyota Kirloskar motor pvt. Ltd. (TKM) established in
India.
2000: Launched Toyota quails in India.
2002: Toyota Camry launched in India.
2003: TKM launches Toyota Corolla in India.
INDIAN ARM
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED
As a joint venture between Kirloskar Group and Toyota Motor
Corporation, Toyota Kirloskar Motor Private Limited (TKM) aims to
play a major role in the development of the automotive industry and
the creation of employment opportunities, not only through its dealer
network,
but
also
through
ancillary
industries.
TKM's growth since inception can be attributed to one simple, yet
important aspect of its business philosophy - "Putting Customer
First".While managing growth, TKM has maintained its commitment
to provide quality products at a reasonable price and has made every
effort
to
meet
changes
in
customer
needs.
TKM firmly believes that the success of this venture depends on
providing high quality products and services to all valued customers
through the efforts of its team members.
TKM, along with its dedicated dealers and suppliers, has adopted the
"Growing Together" philosophy of its parent company TMC to create
long-term business growth. In this way, TKM aims to further
contribute to progress in the Indian automotive industry, realise
greater employement opportunities for local citizens, improve the
quality of life of the team members and promote robust economic
activity in India.
MODE OF OPERATION
Date Of Establishment
October 6, 1997
Chairman
Vice Chairman
Managing Director
Mr. A. Toyoshima
Deputy MD's
Mr. K. K. Swamy
Mr. Masatoshi Seki
Paid-In Capital
Rs. 7 billion
Shareholders
TKMs Vision
TKMs Mission
mission is to design, manufacture and market automobiles in
India and overseas while maintaining the high quality that meets
global Toyota quality standards, to offer superior value and
excellent after-sales service. We are dedicated to providing the
highest possible level of value to customers, team members,
communities and investors in India.
PRODUCT
TOYOTA COROLLA - WORLDS NO.1 BESTSELLER
The Toyota Corolla is the best selling car in the world (counting all
years). It offers peppy acceleration, agile handling, excellent fuel
economy, and a smooth, comfortable ride. For most people, the
Corolla is about as good as it needs to get.
As an added bonus, the Corolla often tops J.D. Power's reliability
ratings for small cars - beating the Civic, Focus, and Neon by a pretty
good margin. Meanwhile, the Corolla tends to best all small cars in
Consumer Reports' surveys. Last time we looked (in 2001), the
Honda Civic was down there...below average...below the Neon... why
do people buy Civics when the Corolla has a better standard engine,
nicer and quieter ride, and uncontestable quality? In India, Toyota
Corolla falls in the Premium Midsize Car Segment popularly
known as the C++ Segment.
A corolla is the outer envelope or crowning portion of a flower. (The
new Scion line is named after another flower term.)
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1979
1984
1988
Through the years the Toyota Corolla grew in
terms of likeability and performance, and 1988
saw the arrival of the sixth generation Toyota
Corolla.
1998
1998 was a landmark year for the Toyota Corolla.
It saw the arrival of the eighth generation Corolla
that carried the awesome 1.8 litre engine under
its hood. And what you see before you is the
culmination of advanced styling, advanced
comfort and advanced performance - the ninth
generation Toyota Corolla.
8th Generation COROLLA
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2003
In its soul the Toyota Corolla carries a destiny to stand for everything that represents perfection
in the compact sedan category. A destiny that's
reflected in the 3 Crore Corollas manufactured in
over 150 countries across 14 factories, making it
the world's highest selling car.
9th Generation COROLLA
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DISTRIBUTION NETWORK
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Consumer
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EVALUATION OF DEALERS
The company periodically evaluates its dealers performance against
certain specified standards like
1.Sales 2.Inventory levels 3.Customer Delivery time 4.Customer
Satisfaction Index.
Time to time, Dealerships Surveys are conducted by company
officials and then rankings are given to the dealers.
The dealers having high ranking are given incentives. The
underperformers are provided with customized counseling, training
and motivation.
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PROMOTIONAL STRATEGIES
The Promotion for Toyota Corolla consists of a blend of activities
making its Promotion Mix. Its Promotion Mix consists of almost all the
possible techniques of Promotion used for any other product. Some
of the major elements of Promotion Mix of Toyota Corolla are listed
as under:
Advertising
Brochure
Posters/Leaflets
Print Advertisements
TV Commercials
Bill Boards
Display Signs
POP Displays
Symbol/Logo
Sales Promotion
Fairs and trade Shows
Public Relations
Annual Reports
Seminars
Charitable Donations
Community Relation
Personal Selling
Individual Sales
Corporate Sales
Sales Presentations
Fair and trade Shows
Direct Marketing
Catalogs
Mailings
Telemarketing
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Advertising
It uses many different techniques of Advertisement as a part of its
Advertising Strategy.
Most of the Print Ads of Toyota Corolla are individually targeted at
one of these factors such as Comfort, Performance, Styling, Power,
Leg Room, Design, Driving Pleasure. One most common feature of
almost all the Ads is that in every Advertisement, the fact that it is the
Worlds Largest Selling Car and its presence across 160 countries is
present. This is done to because the company wants to differentiate
the product in terms of its Reliability that it is an entrusted brand of 30
Million people across the globe. The fact that it is present in 160
countries proves that it is a Global Car.
There are 6 TV Commercials of this Car in India. The Commercials
show that this Car is targeted mainly at the Indian youth and young
Executive. It has been positioned as a little sportier, which is the main
reason that it is for young people and is also like by them too.
The Brochures, Posters/Leaflets are such designed that shows that
Corolla is a car for people who demand Performance, Style, Power
and Sheer Driving Pleasure. The car being a perfect combination of
these factors makes it a huge success across its segment.
The Other Sources of Advertisement include Bill Boards, Display
Signs, POP, Displays, Symbol/Logo. The company does the
Advertising of Corolla by displaying Bill Boards and Display Signs at
various target places where it feels that prospective buyer will come
across it. At the showroom also, there are huge amount of Point Of
Purchase Displays and also Symbols/Logo which add to it.
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Sales Promotion
One of the major sources of Sales Promotion is Trade Fairs like
AUTO EXPO, MOTOR SHOW etc. The company used to take part in
these types of fairs and used it for its Sales Promotion. But now the
trend is shifting because the company thinks that if they want to
launch a product on a National Level, then there is no need for such
kind of shows as now there are various other powerful sources of
media available to them. Moreover the cost spent on these kind of
fairs was not justified. So therefore the company is now keeping away
from fairs.
Some other Sales Promotion technique used by the company is the
Festival Season Offers it introduces in the market at the time of
Diwali, New Year, Christmas, Navratri etc to boost short term sales.
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Personal Selling
Personal Selling largely takes place at the Dealers End. The way the
customer is attended depends mainly on the Dealer as he acts as an
interface between the company and the Consumer.
The various cases in which Personal Selling takes place is Individual
Sales, Corporate Sales, Sales Presentations, Fair and trade Shows.
Mostly in case of Individual Sales the Customer goes to the
showroom and takes a look at the product. There he is attended to by
the Sales Personnel of the Dealership. Sometimes the Senior Sales
Executive has to make Sales Presentation to Corporate Buyers.
Personal Selling is also practiced at Trade Fairs and Auto Shows
wherein the Company appointed Sales Personnel attend prospective
customers and also book their orders.
Direct Marketing
In the case of Direct Marketing the Company Officials directly contact
the Prospective buyers with the information available through various
sources. For example in case of Road Shows, Trade Fairs, Auto
Shows etc. Sometimes the existing customers also provide
references of prospective buyers such as their friends or relatives.
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PRICING
Theres a new segment emerging in the Indian market. Its so new
that we havent thought of a name for it yet. Call it the premium midsize or the compact luxury class, its the hot new niche that sits bang
in between the Honda City-Baleno-Lancer gang and the upper crust
Accords, Camrys and Mondeos. Not long ago, it was just the Skoda
Octavia which ruled this Rs 10 lakh roost; then came the Corolla,
which knocked the Octavia off its perch with an aggressive price and
a badge that works wonders anywhere in the world.
GM India has jumped into the fray with its newly launched Chevrolet
Optra. It knows that however good the Optra may be, the only way
to combat the Toyota badge is by winning the metal-for-money fight.
The Optra undercuts both the Corolla and Octavia by a substantial
margin, but does your money go as far in this Korean-built car?
Does the Corollas Toyota badge come with tangible benefits that
helps justify its higher price? Or is the Czech-built Octavia the most
substantial car of this lot?
Lets see what the prices of these cars have to say:
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PRICE COMPARISON
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CHEVROLET OPTRA
List price Rs 8.2-10.1 lakh
Top
191 kph
speed
0-100kph 11.11 sec
Kpl
9.6 (overall)
For Interiors, comfort, value for
money
Against Unexciting to drive
TOYOTA COROLLA
List price
Rs 9.9-12.0 lakh
Top speed 195 kph
0-100kph
9.07 sec
Kpl
12.5 (overall)
For Performance, comfort, fuel
efficiency
Against Suspension, feels built
to a price
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SKODA OCTAVIA
List price
Rs 10.3-11.9 lakh
Top speed 185 kph
0-100kph
11.96 sec
Kpl
8.9 (overall)
For Solid build, ride comfort,
huge boot
Against Lacks luxury feel,
cramped rear seats
TARGET CUSTOMER
Corolla Owners Profile
Age
: 25-45
Occupation : Business Class or High Level Service
Executives
Social Class : These people (Lower Upper to Higher
Upper Class) generally have an existing C
segment car before they purchase Corolla.
Areas
: Urban/ Sub Urban, major Cities/Towns
Income Level: More than Rs. 2 lacs p.m.
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TARGET SEGMENT
The Corolla should be targeted at the Youth Market. It is a car for
people who like to drive the car themselves. Corolla gives overall
driving pleasure to the owner. It is for those people who are young
and trendy. It should be positioned as a little sporty car for trendy
people. People having an Average Monthly Income of 2 lacs and
aged between 25-45 years form the target market. These people
already have 2 or more cars in their family and this is generally
their upgrade. These people are modern in their outlook and live in
urban and sub urban cities/towns.
MARKET POSITIONING
The car is to be positioned as a Global Car, which has been there
for so many years and is a huge success worldwide. It should be
positioned as a Sporty Car, which can be used for Office as well
as family use. Its quality can be defined by the seal of Toyota,
which is the Worlds Third Largest Automaker.
USP
LOW FUEL CONSUMPTION
Toyota corolla is worldwide known for its better fuel efficiency.
COMPANY
MODEL
MILEAGE
TOYOTA
CHEVROLET
SKODA
COROLLA
OPTRA
OCTAVIA
12.5 kpl
9.6 kpl
8.9kpl
25
26
26%
LOOKS
PERFORMANCE
TECHNOLOGY
SAFETY
BRAND
3%
25%
23%
35%
39%
PERFORMANCE
BUILT QUALITY
RATINGS
BRAND
9%
17%
27
33%
PEOPLE'S LEVEL OF
SATISFACTION WITH COROLLA
7%
40%
53%
EXTREMELY
SATISFIED
FAIRLY
SATISFIED
AVERAGE
SATISFIED
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3.8
2.2
15
A1
5.1
14
13.9
45
LOWER A2
UPPER A2
LOWER A3
UPPER A3
MISC
A4/C++
A5-A6
Overall
A4/C++
Market Share Segment
Share
1.2%
34.1%
1.1%
23.6%
0.8%
22.6%
0.6%
19.7%
LIBERALIZATION IMPACT
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0.8
1.8
2.1
2.1
3.1
3.9
17.3
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17.3
MARUTI
TATA
HYUNDAI
HONDA
FORD
GM
TOYOTA
HM
FIAT
MARKET PLAN
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PRESENT TREND
December wholesales were fair considering the usual deferment of
sales to the new financial year and because of several plants shut
downs for maintenance. At this rate the annual domestic sales should
exceed 800,000 units with exports of an additional 160,000 units.
Over the past three years, the share of the A1 segment has declined
by 44% while the larger A2 hatchbacks are up by 35.4%, the A3
segment increased by 41.8% while the A4-6 segments increased by
109%. Hatchbacks accounted for 88% of Indias sales.
Maruti as the top seller with a 51% market share. Tata Motors had a
share of 17.3%, Hyundai also of 17.3%, Honda of 3.9%, Ford of
3.1%, GM of 2.1%, Toyota of 2.1%, HM of 1.8% and Fiat of 0.8%.
PLC
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GROWTH STAGE
Toyota Corolla comes under the growth stage of PLC. As Toyota
has sold more than 7600 units of the corolla from January - October
2005. Sales have increased as more customers became aware of the
product and its benefits and additional market segments are targeted.
Corolla has been proven a success and customers begin asking for it,
sales will increase further as more retailers are interested in carrying
it.
At growth stage Toyotas goal is to gain consumer preference and
increase sales. The marketing mix may be modified as follows:
BCG
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SUGGESTIONS
Currently the Corolla is the Market Leader in the A4/C++ Segment.
The car has also been rated highest in terms of Overall Quality and
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Customer Satisfaction not only in its own segment alone but the
across all the segments by JD Power Asia Pacific.
The Objective for the next 2 years should be to strengthen the
position as a Market Leader through properly designed
Marketing Strategy and Product Improvement Strategy.
As the Segment is expected to double the size by the end of
next year, the strategy should be to increase the production
output.
Also, in the study it has been found out that the competitors like
Skoda is going to recently give a facelift to their Octavia model
which may possibly will result in increased sales for Octavia. So
a proactive counter strategy should be readied before time.
As the No.4, i.e. Hyundai Elantra in the segment is not doing
well; the strategy should be to attack its market share through
aggressive comparison advertising with it.
The main competitor i.e. Chevy Optra is very bullish player. It
also has a lower Engine Displacement model available for
under 8 Lacs. If it is possible, a model with lower engine
displacement and fewer features should be introduced soon to
attack Optra 1.6.
As the car has won so many prestigious Awards in Customer
Satisfaction and Overall Quality from Worlds Most Reputed
Survey Agency JD Power Asia Pacific, the stress should be
given on using this as a powerful tool in the Marketing Strategy.
News is also there that Honda is bringing its World famous
Civic Model in the Indian Market in the same segment in which
Corolla exists. So there will be the entry of this new player,
therefore a proactive strategy is to be made for the same.
Also we know that the Corolla sold in India is a 9 th Generation
Model of Corolla but Worldwide in most of the countries, the
10th Generation model has already been launched, 10 th
Generation model can also be started to be manufactured in
India.
REFERENCES
www.corollabharat.com
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www.corollaworld.com
www.jdpower.com
www.brandreporter.com
www.netmba.com
www.wikipedia.com
www.thehindu.com
www.agencyfaqs.com
www.kpmg.com
www.delloit.com
www.mckincey.com
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