MINOR PROJECT REPORT ON (MARKETING STRATEGIES OF TOYOTA)

SUBMITTED BY (HARSH VARDHAN ) 16819201711 STUDENT OF BBA III SEMESTER

!INGAYA"S !A!ITA DEVI INSTITUTE OF MANAGEMENT # SCIENCES

MANDI ROAD$ NE% DE!HI 1100&7

FOR THE PARTIA! FU!FI!!MENT OF BACHE!OR IN BUSINESS MANAGEMENT UNDER THE SUPERVISION OF M'(PRANAV MISHRA (P')*+,- I.,/0'1+) SUBMITTED TO

GURU GOBIND SINGH INDRAPASTHA UNIVERSITY DE!HI$ INDIA

1

CERTIFICATE

Certified that this project report 2MARKETING STRATEGIES OF TOYOTA3 is the bonafide work of HARSH VARDHAN3 who carried out the project work under the supervision of MR(PRANAV MISHRA(

SIGNATURE HEAD OF THE DEPARTMENT

SIGNATURE P')*+,- I.,/0'1+

DEC!ARATION
I hereby declare that the project work entitled MARK !I"#

$!RA! R#I $ %& !%'%!A C%M(A"') sub*itted to the

#+R+ #%,I"- $I"#. I"-RA(RA$! +"I/ R$I!'0 " 1 - 2.I0 I"-IA 0 is a record of an ori3inal work done by *e under the 3uidance of MR4(RA"A/ MI$.RA0 5.%-60 2I"#A'A7$ 2A2I!A - /I I"$!I!+! %& MA"A# M "! %& $CI "C $0 MA"-I R%A-0" 1 - 2.I81199:;0 and this project work has not perfor*ed the basis for the award of any -e3ree to the best of *y knowled3e4

.AR$. /AR-.A" 1<=1>291;11

?$I#"A!+R %& $!+- "!@

ACKNO%!EDGEMENT
I owe a 3reat *any thanks to a 3reat *any people who helped and supported *e durin3 the writin3 of this report4 My deepest thanks to 2ecturer0 Mr4(RA"A/ MI$.RA5the #uide of the project for 3uidin36 for correctin3 various docu*ents of *ine with attention and care4 .e has taken pain to 3o throu3h the project and *ake necessary correction as and when needed4 I eBpress *y thanks to the hod of ,,A for eBtendin3 his support4 My deep sense of 3ratitude to ?KK #AR#@ support and 3uidance4 !hanks and appreciation to the helpful people at !%'%!A C%M(A"' for their support4 I would also like to thank *y Institute and *y faculty *e*bers without who* this project would have been a distant reality4

TAB!E OF CONTENTS
CHAPTER NO( NO( CONTENTS CERTIFICATE DEC!ARATION AKNO%!DGEMENT PAGE 2 4 &

CHAPTER 15 COMPANY PROFI!E INTRODUCTION MODE!S 11 OVERVIE% COPERATE DATA GUIDING PRINCIP!ES PERCEPTS BOARD OF DIRECTORS 17 !OCATION MANUFACTURING SUBSIDIARIES # AFFI!IATES 24 GRO%TH 26 OBJECTIVE OF STUDY 29 CHAPTER 25 MARKETING STRATEGIES MARKETING MI7 STRAGIC FOCUS AND P!AN 4& CHAPTER &5 FINDINGS AND ANA!YSIS && !IMITATIONS OF STUDY

68 10 12 14 1& 16 16 18 19 2& 27

29 40

&0 &6

CHAPTER 65 CONC!USION # RECOMMENDATIONS &8

&6

BIB!IOGRAPHY

60

<

COMPANY PROFI!E

T/+ H+089:0'-+'; )< T)=)-0 >. T)=)-0 C>-=$ J0?0.

INTRODUCTION ASSEMB!Y P!ANTS OVER THE %OR!D

!oyota has factories all over the world0 *anufacturin3 or asse*blin3 vehicles for local *arkets0 includin3 its *ost popular *odel0 the Corolla4 !oyota has *anufacturin3 or asse*bly plants in the +nited $tates0 Australia0 Canada0 Indonesia0 (oland0 $outh Africa0 !urkey0 the +nited Kin3do*0 &rance0 ,raDil0 and *ore recently India0 Ar3entina and CDech Republic4 !oyota also builds and sells cars in China in a joint venture with !ianjin Eiali4 !oyota "ew Fealand asse*bled vehicles until 1>>=0 when it switched to i*portin3 cars fro* Gapan and Australia4 Cars fro* these plants are often eBported to other countries4

>

T)=)-0 C0' M)8+@;5

I..)A0

C0B'=

AA0@).

M0-'>C

C)')@@0

P'>:;

19

T':,D;5

T0,)B0

T:.8'0

V0.;5

&':..+'

!0.8 ,':>;+

11

OVERVIE%
In 299<0 !oyota was en3a3ed in a variety of projects desi3ned to solidify its foundations while continuin3 to 3row.
%n the product front0 2eBus launched its new fla3ship *odel0 the 2$0 and the new 3lobal Ca*ry went on sale4 In Gapan0 a new Corolla ran3e was introduced0 e*phasizing the importance of this best-selling car. In *anufacturin30 several new projects were started around the world4 In May0 *anufacture of the Camry began in Guangzhou, China, while in the United States, the Kentucky plant, which in %ctober celebrated 29 years of production0 started *anufacturin3 the first !oyota hybrid ehicle to be made in !orth "merica, the Camry #ybrid. $n !o ember, the %e&as plant began producing the new %undra truck, a key ehicle in %oyota's !orth "merican lineup. $n (apan, %oyota )otor Kyushu, $nc. began full-scale operations at its engine factory, while %oyota )otor %ohoku Co., *td. increased its manufacturing capacity. In hu*an resources develop*ent0 followin3 the establish*ent of the Asia (acific #lobal (roduction Center in !hailand in Au3ust 299C0 !oyota established the "orth A*erican (roduction Center in the +4$4 in &ebruary0 and the uropean #lobal (roduction Center in the +nited Kin3do* in March4 stablished as branches of the #lobal (roduction Center in Gapan0 these were created to spread !oyota7s *anufacturin3 knowled3e and skills throu3hout the world in pace with the rapid 3rowth of !oyota7s overseas *anufacturin34 !he centers educate trainers for local *anufacturin3 plants in all re3ions0 with trainees passin3 on what they learn to tea* *e*bers on their return to their plants4

In RH-0 !oyota focused its efforts on three key areasI environ*ent0 safety and ener3y4 It *ade a special effort in the area of the environ*ent by eBpandin3 its lineup of hybrid vehicles0 and has worked on RH- relatin3 to plu38in hybrid4 In addition0 as part of !oyota7s
efforts to respond to the di ersification of energy, in +,,- %oyota plans to introduce a fle& fuel ehicle. in the /razilian market that will run on 0,,1 bio-ethanol fuel. 2rom this point on, based on the philosophy of pro iding 3the right car, in the right place, at the right time,4 and in accordance with the

12

infrastructure and customer needs of each region, %oyota will continue to promote efforts to de elop en ironmentally friendly technology and ehicles.

CORPORATE DATA
C)B?0.= N0B+
H+08 O<<>,+

T)=)-0 M)-)' C)'?)'0->). 1 T)=)-0 C/)$ T)=)-0 C>-=$ A>,/> P'+<+,-:'+ &71 8671$ J0?0.
P/).+5 (0666)28 2121

T)D=) H+08 O<<>,+

1 & 18 K)'0D:$ B:.D=) D:$ T)D=) 112 8701$ J0?0.

P/).+5 (04)4817 7111

N01)=0 O<<>,+

& 7 1 M+>+D>$ N0D0B:'0 D:$ N01)=0 C>-=$ A>,/> P'+<+,-:'+ &60 8711$ J0?0.
P/).+5 (062)662 2111

E;-0E@>;/B+.-

A:1:;- 28$ 1947

$ince its foundation0 !oyota has conducted business with contributin3 to the develop*ent of a prosperous society throu3h the *anufacture of auto*obiles) as a 3uidin3 principle4 1hen I beca*e president two years a3o0 I called on all e*ployees to work with *e in returnin3 to our ori3ins and askin3 earnestly whether !oyota is truly contributin3 to society and whether we are doin3 everythin3 we should be doin34 %n the occasion of !oyota7s ;9th anniversary0 we will reinforce our *easures

1A

desi3ned to return to our core principle0 which is to Jrepay the earth and society throu3h technolo3ical innovation 5and contribute to enhancin3 the Kuality of life everywhere

GUIDING PRINCIP!ES
.onor the lan3ua3e and spirit of the law of every nation and undertake open and fair

corporate activities to be a 3ood corporate citiDen of the world4

Respect the culture and custo*s of every nation and contribute to econo*ic and social develop*ent throu3h corporate activities in the co**unities4

-edicate ourselves to providin3 clean and safe products and to enhancin3 the Kuality of life everywhere throu3h all our activities4

Create and develop advanced technolo3ies and provide outstandin3 products and services that fulfill the needs of custo*ers worldwide4

&oster a corporate culture that enhances individual creativity and tea*work value0 while honorin3 *utual trust and respect between labor and *ana3e*ent4

(ursue 3rowth in har*ony with the 3lobal co**unity throu3h innovative *ana3e*ent4

1ork with business partners in research and creation to achieve stable0 lon38ter* 3rowth and *utual benefits0 while keepin3 ourselves open to new partnerships4

1:

TOYOTA PERCEPTS
,e contributive to the develop*ent and welfare of the country by

workin3 to3ether0 re3ardless of position0 in faithfully fulfillin3 your duties4

,e at the van3uard of the ti*es throu3h endless creativity0

inKuisitiveness and pursuit of i*prove*ent4

,e practical and avoid frivolity4

,e kind and 3enerousL strive to create a war*0 ho*elike

at*osphere4

,e reverent0 and show 3ratitude for thin3s 3reat and s*all in thou3ht

and deed4

BOARD OF DIRECTORS
C/0>'B0. 0.8 F:*>) C/)
1C

R+?'+;+.-0->A+ D>'+,-)' V>,+ C/0>'B0. 0.8 R+?'+;+.-0->A+ D>'+,-)' P'+;>8+.- 0.8 R+?'+;+.-0->A+ D>'+,-)' K0-;:/>') N0D010F0 K0-;:0D> %0-0.0E+

EC+,:->A+ V>,+ P'+;>8+.- T)D:>,/> U'0.>;/> K0G:) OD0B)-) 0.8 R+?'+;+.-0->A+ K=)*> S0;0G: D>'+,-)'
M>-;:) K>.);/>-0 T0D+;/> U,/>=0B080 M0;0-0B> T0D>B)-) AD>) T)=)80

S+.>)' M0.01>.1 D>'+,-)' Y:D>-);/> F:.)

T0D+;/> S:G:D> A-;:;/> N>>B> H>');/> T0D080 T+>*> T0,/>E0.0 S/>.>,/> S0;0D> AD>'0 OD0E+ Y)>,/>') I,/>B0': S/)*> ID0F0 K)>,/> I.0 T0D+;/> Y);/>80 S/>.G) K)E:D> AD>'0 S0;0D> H>');/> K0F0D0B> T080;/> A'0;/>B0 M0B)': F:':/0;/> S0-);/> OG0F0

H).)'0'= C/0>'B0. S+.>)' A8A>;)'

S/)>,/>') T)=)80 H>');/> OD:80

1<

!OCATIONS OF TOYOTA FACI!ITIES

1;

TOYOTA MANUFACTURING SUBSIDIARIES AND AFFI!IATES

M0>. ?')8:,-;
T)=)-0 M)-)' K=:;/:$ I.,(

S-0'- )<
)?+'0->).;

H0''>+'$ H0''>+' H=E'>8$ K@:1+'$ K@:1+' H=E'>8$ IS$ ES T'0.;B>;;>).;$ -'0.;<+';$ 0@:B>.:B F/++@;$ 8'>A+-'0>. ?0'-;$ +-,( M+,/0.>,0@ 0.8 +@+,-').>, ?0'-; H>0,+$ !>-+0,+$ V)C=$ N)0/$ E;->B0$ P'>:;$ !0.8 C':>;+'$ A@?/0'8$ I?;:B$ T)F.0,+$ R+1>:;0,+$ C)0;-+'$ E;->B0 H=E'>8$ A@?/0'8 H=E'>8$ !7&70 C+.-:'=$ C')F.$ C)')@@0 S?0,>)$ C)')@@0 F>+@8+'$ I;>;$ B+@-0$ SC$ A:'>;$ B!ADE R0:B$ MR S$ S,>). CB$ C)')@@0 AC>)$ C)')@@0 /0-,/E0,D; H>0,+ R:;/$ P0;;)$ P')E)C$ S:,,++8$ EB$ P)'-+$ SIENTA

T)=)-0 M)-)' H)DD0>8)$ I.,(

T)=)-0 M)-)' T)/)D: C)($ !-8(

T)=)-0 A:-) B)8= C)($!-8(

K0.-) A:-) %)'D;$ !-8(

C+.-'0@ M)-)' C)($ !-8(

G><: A:-) B)8= I.8:;-'= C)($ !-8(

D0>/0-;: M)-)'$C)($ !-8(

TOYOTA TODAY
1=

SUPPORTING SPIRIT OF ATH!ETICS

!oyota continued its support of the ideals and spirit e*bodied in athletics by beco*in30 for the third ti*e since 299A0 the %fficial (artner to the 11th IAA& 1orld Cha*pionships in Athletics0 held in %saka0 Gapan0 Au3ust 2Cth8$epte*ber 2nd4 !hrou3h the sponsorship and a 3lobal advertisin3 ca*pai3n with the ta3line0
5/eyond *imits,5 %oyota aims to communicate its support for athletes who, like %oyota, continually push themsel es further in pursuit of the ultimate goal. Apart fro* providin3 a fleet of 229 cars for use as official vehicles at this yearMs cha*pionships0 %oyota also supported a program to encourage new world records for women6s e ents by becoming the official women6s bib sponsor.

TOYOTA"S FIRST FFV

!oyota do /razil *%7". 8%7/9 launched %oyota6s first-e
er fle& fuel ehicle 822:9, a ehicle which runs on gasoline, ethanol or any combination of the two, at a line-off ceremony at its $ndia tuba ;lant in S<o ;aulo on )ay +=th. >epresenting %oyota6s commitment to de eloping en ironmental technologies, the locally produced Corolla 2le& and Corolla 2ielder 2le& are the first marketed %oyota models that can run on 0,,1 bioethanol. %he introduction of the two models in /razil, where bioethanol is widely used as fuel and 22:s represent ?@1 of newly registered ehicles in the market, firmly demonstrates %oyota6s belief in listening to its customers. $n the first semester of the year, %oyota accounted for almost @@,,,, of the more than one million ehicles sold in /razil during that period.

IS!AND ADVENTURE
1>

Me*bers of the (hilippine *otorin3 press had a wet and wild ti*e at the !oyota Road !rek A0 held May A1st8Gune Ard in the archipela3oMs central islands4 ,rin3in3 *edia representatives to a variety of well8known destinations across the country0 the annual road trip is conducted by !oyota Motor (hilippines Corp4 to de*onstrate the tou3hness and versatility of its IM/s4 !his year0 the event took over :9 participants on an island8hoppin3 adventure0 enablin3 the* to fully test the eBceptional capabilities of the Innova0 &ortuner and .iluB vehicles4
A series of co*petitive0 water8related activities *ade it a truly challen3in3 and fun trip that encoura3ed tea*work0 ca*araderie and friendship a*on3 all attendees4 !he event was pro*inently featured in *ajor newspapers and *a3aDines0 further boostin3 the popularity of IM/s in the *arket4

A %AY TO !EARN ROAD SAFETY

-edicated to pro*otin3 activities that help *ini*iDe traffic accidents in (akistan0 Indus Motor Co*pany 2i*ited 5IMC6 in Ganuary launched a !oyota $chool Road $afety (ro3ra*4 !hrou3h *usic concerts0 skits by clowns and KuiDDes in schools0 the pilot pro3ra* ai*s to educate children about road safety in a fun and *e*orable way4 !wenty schools in Karachi and around 1=0999 children have already benefited fro* the pro3ra*0 which is part of IMCMs co*prehensive corporate social responsibility initiative with the slo3an0 JConcern
/eyond Cars.5 $)C looks to e&pand the program to other schools in Karachi and later to other cities, gi en the o erwhelming response from the children and parents who ha e so far participated.

29

CRO%N BAMBOO CONCERT

As part of its 299; ca*pai3n for the Crown with the the*e0 J(layin3 out your life with intelli3ence0J &A1 !oyota Motor $ales Co40 2td4 held its Crown ,a*boo Concert at the fa*ous Anji ba*boo forest in Fhejian3 province0 China0 on Au3ust 1=th4 !he classical *usic concert successfully co**unicated the fla3ship *odelMs philosophy of har*ony to the 3uests present0 and was eBtensively featured in various *edia across China4

DREAMING ABOUT FUTURE

!oyota Motor Corporation 3ot a 3li*pse of the future throu3h the eyes of children across Asia and China when it held the -rea* Car Art Contest fro* %ctober to Ganuary4 #ivin3 school students a3ed 1C years and youn3er the eBcitin3 challen3e of drawin3 their ideal car0 the annual contest 3enerated 3reater awareness of the !oyota brand in the re3ion4 ,y *eans of a website0 ads in
>eader6s 7igest magazine and promotions at local dealerships, %oyota successfully raised public consciousness about the contest, drawing o er +,,,,, entries from 0+ countries - an eightfold increase from the number of designs submitted at the first contest in +,,A.

TOYOTA TURNS &0

!oyota A# 5!A#60 !oyotaMs distributor in $witDerland0 celebrates its :9th anniversary with year8lon3 pro*otions and a series of activities for its
21

custo*ers and partners4 Kickin3 off its co**e*orative year with an elaborate Auris *edia launch on &ebruary 1<th0 !A# has since initiated a co*prehensive advertisin3 ca*pai3n that creates awareness of its special pro*otion packa3es for custo*ers as well as !oyotaMs successful history in $witDerland4 In March0 a birthday 3ala dinner for >99 associates0 dealers and partners served to thank everyone within the !A# &a*ily for their support and encoura3e*ent throu3hout the distributorMs four decades in the country4

GRO%TH OF TOYOTA
2astin3 3rowth for !oyota will depend on ali3nin3 our interests with the lar3er interests of custo*ers and the co**unity4 1e *ust be a co*pany where people think seriously about the role and responsibility of their co*pany in the world4 %ur econo*ic and industrial contribution in each re3ion 3rows0 for eBa*ple0 as we 3lobaliDe our operations4 Another way to ali3n our interests with the lar3er interests of the co**unity is throu3h technolo3y4

,y the end of 1>>;0 we will introduce the worldMs first new8ener3y transport that is co**ercially co*petitive with conventional auto*obiles4

22

!hat is when we will put a hybrid8electric passen3er car onto the *arket in Gapan4 %ur hybrid8electric car will have a 3asoline en3ine to 3enerate electricity or provide supple*entary power to the wheels4 It is twice as fuel8efficient as conventionally powered vehicles of co*parable siDe and perfor*ance4 Kually i*portant0 the value of its potential fuel savin3s could prove 3reater than its cost pre*iu* over conventional vehicles4 $o0 it actually could save *oney for car owners4

$urvival and 3rowth in our industry will hin3e on developin3 technolo3ies for reducin3 environ*ental i*pact of our products and operations0 as well as i*provin3 vehicular safety4 (hotos and teBt on the followin3 pa3es introduce so*e of the technolo3ies we are developin3 to position !oyota as an environ*ental leader4

PRIORITIES FOR TOYOTA IN THE GRO%TH

2A

&ortifyin3 our product line Assertin3 a co*petitive ed3e in technolo3y Acceleratin3 3lobaliDation Reclai*in3 *arket share in Gapan Cultivatin3 de*and in new business sectors

Measures for assertin3 a co*petitive ed3e in technolo3y have centered on environ*ental the*es4 1e have introduced or de*onstrated new power train technolo3ies in the past year that will *ake !oyotas run cleaner and 3reener than ever4 !hose technolo3ies include444

A direct8injection syste* that *akes 3asoline en3ines *ore efficient

.ybrid8electric syste*s that double fuel efficiency and reduce noBious e*issions

(ure electric0 JDero e*issionJ vehicles that alleviate urban pollution

2:

&uel8cell syste*s that could transfor* the auto*obile in the 21st century4

OBJECTIVE OF THE STUDY

!he object of report is not only to focus on co*petitors but also to 3et the co*petitive position in the national as well as international *arket throu3h custo*er satisfaction4 !hese are as follows4

!o discover and translate the needs and desire of custo*er into products and services so as to create the de*and of the product 5throu3h plannin3 and producin3 planned product64

!o serve the custo*er throu3h channel of distribution4

2C

 !o face the keen co*petition4

!o know about the *arketin3 strate3ies used by !oyota4

!o know about the *arketin3 strate3ies of the co*petitors of !oyota4

!o find out the *arket share of !oyota4

RESEARCH METHODO!OGY

TYPE OF DATA CO!!ECTED

!his project depends upon the pri*ary as well as secondary sources which are as follows4

(ri*ary $ourceI %bservation Bperi*ent

2<

 !alkin3 with distributors0 retailers and so on $econdary $ourceI ,alance sheet of the co*pany Co*pany website

SAMP!E SIHE # AREAS COVERED

A custo*er8based survey was conducted in which 199 people were asked to fill the Kuestionnaire in which C9 people belon3 to cities of -elhi and #+R#A%"4 ,ecause it was not possible to consider each and every person of those cities or of villa3es so0 (R%,A,I2I!' $AM(2 or RA"-%M $AM(2 was taken4

2;

PRESENTATION AND ANA!YSIS

MARKETING

MI7

!his consists of the four *arketin3 *iB ele*ents that are desi3ned to fit the *arket in ter*s of their needs and ability to access such products and services4

1( PRODUCT STRATEGY
!he Co*pany is believed to be *ovin3 with a strate3y of *ass production of which it has enabled it to sell widely in the 3lobal *arket4 It has also included the strate3y of hybrid product0 where it can double the a*ount of production for the arisin3 needs in the *arket4

2( PRICE STRATEGY
!he reputation of the Co*pany has been developed by producin3 hi3h Kuality vehicles that can be bou3ht at a reasonable price4 !he Co*pany has also been usin3 tactful pricin3 strate3ies throu3h price differentiation so that they are different fro* other auto*obile producers4

4( !OCATION STRATEGY

2=

,ein3 a 3lobal producer and supplier of !oyota auto*obiles and their co*ponents0 !oyota Co*pany has positioned itself all over the world 3ivin3 it a clear cut within the *arket4 1ithin three years to co*e0 it is workin3 towards the achieve*ent of about AC percent of the *arket share0 and this will *ake it to be best and top supplier of auto*obile products4

&( PROMOTION STRATEGY

!he Co*pany is deter*ined to use a pricin3 *echanis* that will 3ive it a co*petitive ed3e over its *ain co*petitors4 !his is a *echanis* that it is usin3 to *arket itself so that it can 3et hold of *arket share that will see it better in achievin3 the hi3hest level in the *arket4

STRATEGIC FOCUS AND P!AN

!here are three aspects of the eBistin3 corporate strate3y that are developed in relation to their overall i*pacts caused to the *arketin3 plan of !oyota Co*pany4 !hese areL

1(MISSION STATEMENT OF THE COMPANY

!oyota seeks to create a *ore prosperous society throu3h auto*otive *anufacturin3 5.iroshu0 299A64 !herefore0 the Co*pany is ai*ed at achievin3 a stable and lon38ter* 3rowth in future0 and this is supposed to be in synchroniDation with a nu*ber of factorsI the si3nificant

2>

environ*ent0 3lobal econo*y0 local co**unities served0 and the Internal nviron*ent of stakeholders

2( THE COMPANY"S GOA!S

!he co*pany has co**itted itself to offerin3 of hybrid alternatives for every *odel that is sold in the *arket4 !his is ai*ed at enablin3 the Co*pany to *ake a total sale of 1 *illion hybrid vehicles within a year0 and this 3oal has been set to have been achieved by the year 29124 !oyota Co*pany has i*proved its 2911 nviron*ental Action (lan and it is co**itted in siB different key areas0 which areI the Mana3e*entL chan3es in nviron*ental ner3y and Cli*ateL the Nuality of AirL

concerned $ubstancesL the aspects of Recyclin3 and I*proved Resource utiliDationL and $ocietal Cooperation4 !he Co*pany is co**itted to reduce carbon dioBide e*ission and it is believed to take co*bined actions of ensurin3 that the environ*ent is kept clean all the ti*e by observin3 the stated fuel econo*y values4

4( CORE COMPETENCY AND SUSTAINAB!E COMPETITIVE ADVANTAGE

!oyota Co*pany is workin3 towards the achieve*ent of a better and *ore sustainable econo*y by havin3 a stable 3lobal *arket4 1ith advance*ent in new technolo3y and other related *atters0 the Co*pany is investin3 in various strate3ies that will enable it to realiDe its set 3oals and objectives over a period of ti*e4 !he Co*pany has a well developed and eKuipped network of eBpertise that are into research and develop*ent over

A9

aspects that are to keep the Co*pany on top in product and service delivery to its 3lobal *arket4 Also it has a wide ran3e of distribution network allover the world and this has enabled it to reach a portion of the *arket that is seein3 it throu3h to 3reater levels4

MARKET SHARE OF TOYOTA

!oyota Motor Corp4 3rabbed *ore +4$4 retail *arket share than &ord Motor Co4 in early "ove*ber and it was less than one share point behind #eneral Motors Corp40 !oyota0 GapanMs lar3est auto*aker0 had a 1C4: percent +4$4 retail *arket share a year earlier4 !oyota plans to enter s*all car se3*ent in India 1orld7s second lar3est auto*aker wants to 3et offensive in the Indian do*estic auto *arket4 !oyota is very *uch interested in launchin3 a s*all car here in the se3*ent currently do*inated by Maruti ran3e of diesel vehicles4 !oyota is at the *o*ent carryin3 out a feasibility study for launchin3 such a vehicle in the do*estic *arket where it has *odels like the Innova and Ca*ry a*on3st others4 !hey have had an incredible success with their stopped Nualis *odel and are sellin3 !oyota Innova in lar3e nu*bers4 ! Ino0 director 5*arketin360 !oyota Kirlos kar Motor (vt 2i*ited has
A1

$uDuki and

.yundai4 !ata also has a decent presence in the *arket with their Indica

eBpressed that the Indian auto *arket is a hu3e one and has the capacity to involve *ore players in the s*all car se3*ent4 !oyota has a variety of interestin3 *odels in its 3lobal lineup0 which it can consider to launch in the Indian *arket4 $o*e of these are /ios0 (latD0 and (asso4 !he co*pany also eBpects to break even here in India this year with all the accu*ulated losses were eBpected to be wiped out durin3 299C4 !hey also plan to invest around Rs 1A9 crores durin3 the current year to enhance efficiency4
!oyota plans to open up another *anufacturin3 plant in India and is currently lookin3 for a location0 which suits its reKuire*ent4

STRATEGIC FOCUS AND P!AN

!here are three aspects of the eBistin3 corporate strate3y that are developed in relation to their overall i*pacts caused to the *arketin3 plan of !oyota Co*pany4 !hese areL

1( MISSION STATEMENT OF THE COMPANY(

!oyota seeks to create a *ore prosperous society throu3h auto*otive *anufacturin3 5.iroshu0 299A64 !herefore0 the Co*pany is ai*ed at achievin3 a stable and lon38ter* 3rowth in future0 and this is supposed to be in synchroniDation with a nu*ber of factorsI the si3nificant environ*ent0 3lobal econo*y0 local co**unities served0 and the Internal nviron*ent of stakeholders4
A2

2( THE COMPANY"S GOA!S

!he co*pany has co**itted itself to offerin3 of hybrid alternatives for every *odel that is sold in the *arket4 !his is ai*ed at enablin3 the Co*pany to *ake a total sale of 1 *illion hybrid vehicles within a year0 and this 3oal has been set to have been achieved by the year 29124 !oyota Co*pany has i*proved its 2911 nviron*ental Action (lan and it is co**itted in siB different key areas0 which areI the nviron*ental Mana3e*entL chan3es in ner3y and Cli*ateL the Nuality of AirL concerned $ubstancesL the aspects of Recyclin3 and I*proved Resource utiliDationL and $ocietal Cooperation4 !he Co*pany is co**itted to reduce carbon dioBide e*ission and it is believed to take co*bined actions of ensurin3 that the environ*ent is kept clean all the ti*e by observin3 the stated fuel econo*y values4

4( CORE COMPETENCY AND SUSTAINAB!E COMPETITIVE ADVANTAGE

!oyota Co*pany is workin3 towards the achieve*ent of a better and *ore sustainable econo*y by havin3 a stable 3lobal *arket4 1ith advance*ent in new technolo3y and other related *atters0 the Co*pany is investin3 in various strate3ies that will enable it to realiDe its set 3oals and objectives over a period of ti*e4 !he Co*pany has a well developed and eKuipped network of eBpertise that are into research and develop*ent over aspects that are to keep the Co*pany on top in product and service delivery to its 3lobal *arket4 Also it has a wide ran3e of distribution

AA

network allover the world and this has enabled it to reach a portion of the *arket that is seein3 it throu3h to 3reater levels4

COMPETITORS

HYUNDAI MOTORS INDIA !IMITED (HMI!)

A decade after the Korean 1ar and durin3 the period of reconstruction0 .yundai Motor Co*pany be3an its fled3lin3 efforts at auto*obile *anufacturin3 by enterin3 into a technolo3y transfer a3ree*ent with &ord of #reat ,ritain0 receivin3 desi3n and stylin3 fro* Ital -esi3n of Italy0 and asse*blin3 technolo3y fro* both n3land and Gapan0 all of which *ade the production of our first *odel car0 the J(ony0J possible4 In just ten years0 in 1>;< .yundai be3an to eBport to the world *arket4 In 1>=<0 we entered the +4$4 *arket establishin3 the Bcel as a new contender a*on3 s*all cars and pro*otin3 the i*a3e of the Korean auto*obile industry4

+pon eBpansion of our +lsan plant0 which enabled .yundai Motor Co*pany to have a lar3e scale production base0 and the foundin3 of .M

A:

Canadian Corporation0 which established .yundai throu3hout "orth A*erica0 we produced a record 19 *illion cars and eBported over : *illion0 breakin3 records in a short span of ti*e4 "o other auto*obile co*pany can boast of these fi3ures over such a short ti*e span4 1e also poured our efforts in creatin3 concept cars such as the .C-8I0 followed by the .C-8II and III0 electric cars0 and hi3h technolo3y hybrid cars that will bear fruit in the future with their low pollution e*issions0 safety features0 and environ*entally8friendly recyclable co*ponents4 &ro* (ony to Kuips0 .yundai Motor Co*pany is co**itted to its 3rowth as a *ature co*pany0 constantly keepin3 in *ind its custo*er8oriented *ottoesI JCusto*er $atisfactionJ and JCreate /alue for Custo*ers4J

MARUTI UDYOG !IMITED (MU!)

It was established in &eb 1>=1 throu3h an Act of (arlia*ent0 to *eet the 3rowin3 de*and of a personal *ode of transport caused by the lack of an efficient public transport syste*4 $uDuki Motor Co*pany was chosen fro* seven prospective partners worldwide4 !his was due not only to their undisputed leadership in s*all cars but also to their co**it*ent to actively brin3 to M+2 conte*porary technolo3y and Gapanese *ana3e*ent practices 5which had catapulted Gapan over +$A to the status of the top auto *anufacturin3 country in the world64
AC

A license and a Goint /enture a3ree*ent were si3ned between #ovt of India and $uDuki Motor Co*pany 5now $uDuki Motor Corporation of Gapan6 in %ct 1>=24

GENERIC STRATEGIES MICHAE! PORTER (1980)

#eneric strate3ies were used initially in the early 1>=9s0 and see* to be even *ore popular today4 !hey outline the three *ain strate3ic options open to or3aniDation that wish to achieve a sustainable co*petitive advanta3e4 ach of the three options are considered within the conteBt of two aspects of the co*petitive environ*entI $ources of co*petitive advanta3e 8 are the products differentiated in any way0 or are they the lowest cost producer in an industryO Co*petitive scope of the *arket 8 does the co*pany tar3et a wide *arket0 or does it focus on a very narrow0 niche *arketO

A<

1( COST !EADERSHIP
!he low cost leader in any *arket 3ains co*petitive advanta3e fro* bein3 able to *any to produce at the lowest cost4 &actories are built and *aintainedL labor is recruited and trained to deliver the lowest possible costs of production4 Mcost advanta3eM is the focus4 Costs are shaved off every ele*ent of the value chain4 (roducts tend to be Mno frills4M .owever0 low cost does not always lead to low price4 (roducers could price at co*petitive parity0 eBploitin3 the benefits of a bi33er *ar3in than co*petitors4 $o*e or3aniDation0 such as !oyota0 are very 3ood not only at producin3 hi3h Kuality autos at a low price0 but have the brand and *arketin3 skills to use a pre*iu* pricin3 policy4

A;

2( DIFFERENTIATION
-ifferentiated 3oods and services satisfy the needs of custo*ers throu3h a sustainable co*petitive advanta3e4 !his allows co*panies to desensitiDe prices and focus on value that 3enerates a co*paratively hi3her price and a better *ar3in4 !he benefits of differentiation reKuire producers to se3*ent *arkets in order to tar3et 3oods and services at specific se3*ents0 3eneratin3 a hi3her than avera3e price4 &or eBa*ple0 !oyota differentiates its product and service4 !he differentiatin3 or3aniDation will incur additional costs in creatin3 their co*petitive advanta3e4 !hese costs *ust be offset by the increase in revenue 3enerated by sales4 Costs *ust be recovered4 !here is also the chance that any differentiation could be copied by co*petitors4 !herefore there is always an incentive to innovated and continuously i*prove4

4( FOCUS OR NICHE STRATEGY

!he focus strate3y is also known as a MnicheM strate3y4 1here an or3aniDation can afford neither a wide scope cost leadership nor a wide scope differentiation strate3y0 a niche strate3y could be *ore suitable4 .ere an or3aniDation focuses effort and resources on a narrow0 defined se3*ent of a *arket4 Co*petitive advanta3e is 3enerated specifically <)' -/+ .>,/+( A niche strate3y is often used by s*aller fir*s4 A co*pany could use either a cost focus or a differentiation focus4 1ith a cost focus a fir* ai*s at bein3 the lowest cost producer in that niche or se3*ent4 1ith
A=

a differentiation focus a fir* creates co*petitive advanta3e throu3h differentiation within the niche or se3*ent4 !here are potentially proble*s with the niche approach4 $*all0 specialist niches could disappear in the lon3 ter*4 Cost focus is unachievable with an industry dependin3 upon econo*ies of scale e434 teleco**unications4

S%OT ANA!YSIS TOYOTA STRENGTHS

"ew invest*ent by !oyota in factories in the +$ and China saw 299C profits rise0 a3ainst the worldwide *otor industry trend4 "et profits rose 94=P to 141; trillion yen 5Q11bnL RC4=Cbn60 while sales were ;4AP hi3her at 1=4CC trillion yen4 Co**entators ar3ue that this is because the co*pany has the ri3ht *iB of products for the *arkets that it serves4 !his is an eBa*ple of very focused se3*entation0 tar3etin3 and positionin3 in a nu*ber of countries4 In 299A !oyota knocked its rivals &ord into third spot0 to beco*e the 1orldMs second lar3est car*aker with <4;= *illion units4 !he co*pany is still behind rivals #eneral Motors with =4C> *illion units in the sa*e
A>

period4 Its stron3 industry position is based upon a nu*ber of factors includin3 a diversified product ran3e0 hi3hly tar3eted *arketin3 and a co**it*ent to lean *anufacturin3 and Kuality4 !he co*pany *akes a lar3e ran3e of vehicles for both private custo*ers and co**ercial or3anisations0 fro* the s*all 'aris to lar3e trucks4 !he co*pany uses *arketin3 techniKues to identify and satisfy custo*er needs4 Its brand is a household na*e4 !he co*pany also *aBi*iDes profit throu3h efficient *anufacturin3 approaches 5e434 !otal Nuality Mana3e*ent64

%EAKNESSES
,ein3 bi3 has its own proble*s4 !he 1orld *arket for cars is in a condition of over supply and so car *anufacturers need to *ake sure that it is their *odels that consu*ers want4 !oyota *arkets *ost of its products in the +$ and in Gapan4 !herefore it is eBposed to fluctuatin3 econo*ic and political conditions those *arkets4 (erhaps that is why the co*pany is be3innin3 to shift its attentions to the e*er3in3 Chinese *arket4 Move*ents in eBchan3e rates could see the already narrow *ar3ins in the car *arket bein3 reduced4 !he co*pany needs to keep producin3 cars in order to retain its operational efficiency4 Car plants represent a hu3e invest*ent in eBpensive fiBed costs0 as well as the hi3h costs of trainin3 and retainin3 labour4 $o if the car *arket eBperiences a down turn0 the co*pany could see over

:9

capapacity4 If on the other hand the car *arket eBperiences an upturn0 then the co*pany *ay *iss out on potential sales due to under capacity i4e4 it takes ti*e to acco**odate4 !his is a typical proble* with hi3h volu*e car *anufacturin34

OPPORTUNITIES
2eBus and !oyota now have a reputation for *anufacturin3 environ*entally friendly vehicles4 2eBus has RE :99h hybrid0 and !oyota has it (rius4 ,oth are based upon advance technolo3ies developed by the or3aniDation4 Rocketin3 oil prices have seen sales of the new hybrid vehicles increase4 !oyota has also sold on its technolo3y to other *otor *anufacturers0 for eBa*ple &ord has bou3ht into the technolo3y for its new Bplorer $+/ .ybrid4 $uch *oves can only fir* up !oyotaMs interest and invest*ent in hybrid RH-4 !oyota is to tar3et the Murban youthM *arket4 !he co*pany has launched its new Ay3o0 which is tar3eted at the streetwise youth *arket and captures 5or atte*pts to6 the nature of dance and -G culture in a very co*petitive se3*ent4 !he vehicle itself is a uniKue convertible0 with *odels eBtendin3 at their rearS !he narrow se3*ent is notorious for it narrow *ar3ins and difficulties for brandin34

THREATS
:1

(roduct recalls are always a proble* for vehicle *anufacturers4 In 299C the co*pany had to recall ==9099 sports utility vehicles and pick up trucks due to faulty front suspension syste*s4 !oyota did not 3ive details of how *uch the recall would cost4 !he *ajority of affected vehicles were sold in the +$0 while the rest were sold in Gapan0 urope and Australia4 As with any car *anufacturer0 !oyota faces tre*endous co*petitive rivalry in the car *arket4 Co*petition is increasin3 al*ost daily0 with new entrants co*in3 into the *arket fro* China0 $outh Korea and new plants in astern urope4 !he co*pany is also eBposed to any *ove*ent in the price of raw *aterials such as rubber0 steel and fuel4 !he key econo*ies in the (acific0 the +$ and urope also eBperience slow downs4 !hese econo*ic factors are potential threats for !oyota 4

COMPETITIVE ANA!YSIS

STRENGTH
In an era when ownin3 a car was a distant drea* for a vast *ajority of Indians0 M+2 rolled out its first car0 the M=994 !he co*pany labeled it a peopleMs car0 with a ;><cc A8cylinder en3ine that delivered A>4Cbhp at an affordable price of Rs4 <C09994 !he first vehicle was released for sale in -ece*ber 1>=A4 Initially0 the car was criticiDed for its di*inutive siDe0 but it proved to be spacious enou3h to carry four adults4 ,etter technolo3y and an affordable price due to a hi3her level of indi3eniDation helped M+2

:2

achieve a do*inant position in the Indian passen3er car *arket4

%EAKNESS
M+2 reduced the price difference between these two *odels positionin3 the* on an al*ost eKual platfor*0 which resulted in confusion in the *inds of consu*ers and industry analysts4

THREAT
M=99 had ruled the passen3er car *arket as the only car in the entry8level se3*ent in the Indian auto*obile industry and was now facin3 the dan3er of cannibaliDation fro* one of its own fa*ily *e*bers0 Alto &or the first few *onths of 299:0 M=99 perfor*ed well0 sellin3 1C0A91 units in Ganuary0 1A0C1= units in &ebruary and 1C0C:9 in March4 ,ut 3radually Alto0 another M+2 product0 be3an eatin3 into M=99Ms share4 Alto reported sales of =0A>> units0 =0A2: and >0911 units in Ganuary0 &ebruary and March respectively4 In April0 its sales increased to >0AC9 units and in May 299:0 Alto took over M=99Ms position as the lar3est sellin3 car with sale of 190A;A units0 sli3htly over M=99Ms sales of 19091< units4 Analysts felt that Alto had taken the top spot because of its price reduction in $epte*ber 299A by Rs4 2A0999 followed by the launch of the non8AC Alto for Rs4 942A *n in the first week of April 299:4

:A

!IMITATIONS OF THE STUDY

$ince the road to i*prove*ent is never endin30 so this study also suffers fro* certain li*itations4 $o*e of the* are as followsI ,ecause of illiteracy0 it was a ti*e consu*in3 *ethod in which continuous 3uidance was reKuired4 Nuestionnaire *ethod involves so*e uncertainty of response4 Co8 operation on the part of infor*ants0 in so*e cases0 was difficult to presu*e4 It is possible that the infor*ation supplied by the infor*ants *ay be incorrect4 $o0 the study *ay lack accuracy4

::

CONC!USION AND RECOMMENDATIONS

CONC!USION
1hile $uDuki8Maruti0 !ata Motors0 .yundai0 Mahindra H Mahindra and !oyota co**and the top five positions in the do*estic passen3er vehicle se3*ent0 .onda0 #M and &ord are fi3htin3 each other for the siBth position4 Incidentally0 in the first five *onths of the fiscal 5Apr8Au3 79:6 $koda has *oved to the tenth position0 overtakin3 Italian *ajor &iat4 Maruti +dyo3 5M+260 which has been the *arket leader in the *ini0 co*pact and *id8siDe se3*ents0 retains its leadership position with sales
:C

of 14> lakh units0 followed by !ata Motors with ;90922 units0 .yundai Motor India with :=0A<9 units0 Mahindra with 2=0CA9 units and !oyota with 1>0;>; units4

Co*petitive pricin3 and a better value offerin3s were drivin3 the sales of *ost auto *ajors for the past few *onths4 -espite a co*petitive business environ*ent0 *ost of the car *ajors were able to hold on to their *arket shares in the April to Au3ust 79: period4 !he eBceptions were .yundai0 Mahindra H Mahindra0 .industan Motors and &iat0 who saw their *arket shares fall *ar3inally4

!he *arket is slow and there are visible si3ns of discountin30 particularly in the hi3her end of the car se3*ent4 .owever0 since entry level and co*pact cars are volu*e se3*ents0 the slowdown7s effect is *ore visible here4

&or *any auto*obile co*panies0 it was a double wha**y in Au3ust 79:4 !he truckers7 strike and adhik*as 5inauspicious period6 last *onth affected dispatches of *ost car co*panies0 includin3 Maruti +dyo30 #eneral Motors and !ata Motors0 resultin3 in lower sales4 !he eBceptions were .onda $iel Cars India0 &ord India and !oyota Kirloskar 4

:<

RECOMMENDATION
!oyota should adopt the defensive *arketin3 strate3y because as bein3 the second lar3est car producer in the international *arket0

!oyota *ust at the *o*ent carry out a feasibility study for launchin3 a vehicle in the do*estic *arket where it has *odels like the Innova and Ca*ry a*on3st others4

!oyota should conduct *arket survey in Indian *arket for Kuails in order to know the perception of Indian consu*ers4

!oyota should adopt an offensive *arketin3 strate3y for enterin3 in the s*all car se3*ent4 !his *arket is do*inated by Maruti $uDuki and .yundai in the Indian do*estic auto *arket4

:;

 !oyota *ust plan out an ideal *arketin3 producin3 capacity 0becaue it faces the proble* of over and under capacity in case of upturn and downturn of the *arket4

BIB!IOGRAPHY

,ooks referredI 8
Marketin3 Mana3e*ent A9th editon Marketin3 Mana3e*ent 299C Marketin3 Mana3e*ent 299< 8 (hilip Kotler 8 !4 "4 Chabra 8 C4 ,4 #upta

1eb $itesI 8 #oo3le search en3ine

www4toyota private li*ited4co*

www4yahoo4co*

:=

:>

C9