Professional Documents
Culture Documents
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.
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In every community in which the company operates, Toyota strives to
be a responsible corporate citizen; close relationships with people
and organizations in the local community are essential contributors to
mutual prosperity. Across the world, Toyota participates
enthusiastically in community activities ranging from the sponsorship
of educational and cultural programmes to international exchange
and research.
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HOW IT STARTED
1918: Sakichi Toyoda establishes Toyota spinning and weaving
Co. ltd.
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INDIAN ARM
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED
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.
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Empowering employees.... to achieve perfection
TKM firmly believes that employees are the main source of strength
for the organisation. The human resources management in Toyota
seeks to create a corporate culture where values such as
"Continuous Improvement" and "Respect for People" are fully
reflected in all actual corporate and individual activities . The
company takes maximum care to ensure stability of employment and
strives to improve working conditions. To develop human resources
and improve the technical skills of its employees, TKM's young team
members are regularly sent to Japan, Indonesia and Taiwan for
training programs. More than 400 team members have benefited from
such programs at various Toyota plants worldwide. TKM also
believes in continuously improving its products and practices. Every
team member is encouraged to give suggestions to improve the
product, efficiency of processes or working conditions. They are also
appropriately rewarded for the same. Thus TKM seeks to progress by
empowering its employees.
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MODE OF OPERATION
Mr. K. K. Swamy
Deputy MD's
Mr. Masatoshi Seki
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TKMs Vision
Contribute to the overall growth for our business associates and the
automobile industry.
TKMs Mission
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PRODUCT
TOYOTA COROLLA - WORLD’S 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.
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PRODUCT LINE OF TOYOTA COROLLA
1966
The first generation Corolla blossomed way back
in 1966 in Japan as a Toyota dream to produce a
people's car. This rear wheel drive Toyota
Corolla was an instant hit - an outstanding
compact car that coupled striking appeal with the
highest standards of performance.
1st Generation COROLLA
1970
Four years later, in 1970 a new Toyota Corolla
emerged, bringing with it a larger 1.2 litre
engine. This second generation Corolla actually
became the second best selling import car in
1970.
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1979
Never content with success, the Toyota dream
surged on, and 1979 saw the advent of the fourth
1984 generation Toyota Corolla, still with a rear wheel
drive.
1984 was the year that saw significant changes
in the Toyota Corolla. This fifth generation
Corolla came with a front wheel drive, and a
4th Generation COROLLA coupe version - the GT-S, with a 16-valve engine.
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.
1993
The seventh generation 1993 Corolla is one that
looks familiar. That's when it moved to its current
compact size. This 1993 Toyota Corolla is also
famous for picking up a whole host of awards
along the way.
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
The Toyota Corolla, presently manufactured in India, is the 9th
generation state-of-art best selling sedan in the world. A few
interesting facts from its history read as follows:
6. The year 1998 saw the introduction of the powerful 1.8L engine in
the Corolla.
8. Today the Corolla is present in 142 countries across the world, and
is manufactured in 13 countries other than Japan.
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DISTRIBUTION NETWORK
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The Marketing Distribution Channel of Toyota Kirloskar
Motor India, the Manufacturer of Corolla, is a Single
Level Channel depicted as under:
Consumer
The interface between the consumers and the company are the
Dealers. As they act as a window for the company, the company
provides extensive training to its Dealers for marketing and selling its
products. The training programs are very extensively designed to
meet the specific needs of the dealer and the area which that
particular dealer caters to.
The company views the dealers in the same way as its customers or
end users. It very keenly understands the Dealers’ specific needs and
problems. It provides the dealers with all kind of possible support it
can. It also provides marketing and sales promotion assistance to its
dealers which acts as a motivator for the dealers. The dealerships
have to meet pre defined standards for Cleanliness, Appearance and
Service.
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EVALUATION OF DEALERS
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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.
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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.
• Contribution to Tsunami
• Toyota Kirloskar Motor wins Best Ornamental Garden award for
its landscape
• Toyota Kirloskar signs MoU with Bangalore University for
promotion of Japanese Language
• Toyota observes earth day by supporting local schools
• Organizing Drawing/Painting Competition on ‘Me and my
Environment’ for kids from Govt. Schools.
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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.
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
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 Corolla’s 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?
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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
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 22
Against Lacks luxury feel,
cramped rear seats
PRICE LIST FOR TOYOTA CORLLA
3 H2 1.8E 1,084,480
5 H3 1.8G 1,146,860
7 H4 1.8G 1,210,170
9 H5 1.8E 1,148,010
13 HE 1.8J 892,100
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TARGET CUSTOMER
• 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.
TARGET SEGMENT
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
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as family use. Its quality can be defined by the seal of Toyota,
which is the World’s Third Largest Automaker.
USP
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MARKET SURVEY REPORT
A Market survey was conducted on Toyota Corolla. The objective of
the survey was to find out the Consumer Tastes and Preferences,
Consumption Pattern and changes in Lifestyle Dimension after the
purchase of Corolla.
12%
29%
MERCEDES
18%
BMW
LEXUS
OTHERS
41%
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PEOPLE'S DREAM CAR
19%
25%
MERCEDES
6% BMW
LEXUS
AUDI
OTHERS
25% 25%
23%
26%
LOOKS
PERFORMANCE
TECHNOLOGY
3% SAFETY
BRAND
25%
23%
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PEOPLE BOUGHT COROLLA
BECAUSE OF ITS
35%
39% PERFORMANCE
BUILT QUALITY
RATINGS
BRAND
9%
17%
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PEOPLE'S LEVEL OF
SATISFACTION WITH COROLLA
7%
EXTREMELY
SATISFIED
FAIRLY
40% 53% SATISFIED
AVERAGE
SATISFIED
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CURRENT SITUATION OF THE MARKET
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LIBERALIZATION IMPACT
1991 - Under the Govt.'s new National Industrial Policy, the license
raj was dispensed with, and the automobile industries were allowed
to expand freely.
1997 – TKM invested nearly Rs. 1500 crores in its plant at Bidadi,
employing over 2,400 people. The plant started production in
December 1999 and has a capacity of producing 60,000 units
annually. TKM sold nearly 42,820 vehicles in FY 2004-05 increasing
its sales revenue. Toyota switched to Indian market because of its
young crowd. As company is targeting this segment with its product
like Corolla and Camry. Toyota is a successful brand in India as its all
products are market leaders in their respective segments.
0.8
1.8
2.1
2.1
3.1
3.9 MARUTI
TATA
HYUNDAI
17.3
HONDA
51 FORD
GM
TOYOTA
HM
17.3 FIAT
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MARKET PLAN
INDUSTRY TREND
PRESENT TREND
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 India’s 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%.
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PLC
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.
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BCG
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OPPORTUNITY ANALYSIS
Passenger vehicles are doing well and UV’s and MPV’s now account
for 23% of domestic sales. At this rate, the sales for the full year
should exceed 1.1 million units.
Perhaps most impressive has been the rapid growth of exports that
now accounts for 16% of passenger vehicles of which A4-A6
segments increased by 109%, 8.5% of commercial vehicles, and 6%
of 2-wheeler sales.
This huge increase in the A4-A6 i.e. 109% clearly shows that this
segment is really growing at a huge pace and there exists a huge
potential in this segment in the future. This segment is going to grow
at a much faster pace in the near future as the trend in our country is
shifting towards upgradation of cars. Those in the A2 segment are
moving towards Lower A3 or Upper A3 segment, from Lower/Upper
A3 movement can be seen towards A4 and so on. This is mainly due
to Overall Higher Economic Growth. There is an Overall Growth in
the Automotive Sector in our country. Also many new Players are
entering our Market at high rate. We can see that companies like
Nissan, BMW, and Mercedes have entered our Price Conscious
Indian Market with their Very Highly Priced Products. And their
products are also selling in the market. This shows that there is a
place for Expensive Cars in our highly price conscious Indian Market.
New Global Majors like Audi, Ferrari, and Lamborghini etc. are very
soon entering our market with their highly expensive products.
Indians have started to buy expensive products and are upgrading
their Standard of Living.
The A4/ C++ Segment is going to grow big in the coming years. The
segment is expected to double its size by the end of next fiscal.
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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
Customer Satisfaction not only in its own segment alone but the
across all the segments by JD Power Asia Pacific.
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REFERENCES
www.corollabharat.com
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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