A Project On

Marketing Mix decisions of TOYOTA COROLLA in India and

PAKISTAN

In the Partial fulfillment of PGDM

Subject : IMM

Prepared by

NAGARJUNA VENKATA

1

Roll no: DM-04-024

CONTENTS

1. Introduction to the Product: _______________________ 1

2. Chapter-1_______________________________________ 3

3. Chapter-2_______________________________________9

4. Chapter-3_______________________________________20

5. Chapter-4_______________________________________25

6. Bibliography____________________________________ 31

2

CHAPTER-1

1.1 Introduction to the Product:

Toyota Corolla is the market leader in its class. Toyota Corolla is manufactured both in

Diesel and Petrol engines i.e. 2000cc diesel and 1300cc and 1600cc petrol versions. Its

main attributes are:

Competitive pricing.

High reliability.

Easy availability of spare-parts.

High goodwill.

Aggressive styling.

After sales services.

Swift distribution channels.

High resale value.

Decent safety features.

1.2 Product Hierarchy and classification:

First generation (E10) The first Corolla generation was introduced in October 1966 with the new 1100

cc K pushrod engine. The Corolla Sprinter was introduced as the fastback version in

1968.

3

Second generation (E20)

In May 1970, the E20 was restyled with a more rounded body and the 1400 cc T and

1600 cc 2TOHV engines were added to the range. The now mutually exclusive Corolla

and Sprinter names were used to differentiate between two slightly different treatments

of sheet metal and trim. The Corolla Levin and Sprinter True no names were introduced

as the twin cam version of the Corolla and Sprinter respectively.

Third generation (E30, E40, E50, E60)

April 1974 brought rounder, bigger and heavier Corollas and Sprinters. The range was

rounded out with the addition of a 2 door lift back. The Corollas were given E30 codes

while the Sprinters were given E40 codes. A facelift in March 1976 saw most Corolla

E30 models replaced by equivalent E50 models and most Sprinter E40 models were

replaced by equivalent E60 models.

Fourth generation (E70)

A major restyle in March 1979 brought a square edged design. The Corollas had a

simpler treatment of the grill, head lights and tail lights while the Sprinter used a slightly

more complex, sculptured treatment. The new A series engines were added to the

range as a running change. This was the last model to use the K "hicam" and T series

engines.

Fifth generation (E80)

A sloping front bonnet and a contemporary sharp-edged, no-frills style was brought in

during May 1983. The new 1839 cc 1C diesel engine was added to the range with the

E80 Series. From 1985, re-badged E80 Corollas were sold in the U.S. as the fifth

generation Chevrolet Nova.

Most models now used the front wheel drive layout except the AE85 and AE86, which

were to be the last Corollas offered in the rear wheel drive or FR layout. The AE85

and AE86 chassis codes were also used for the Sprinter. This model was identical to

the Corolla, differing only by minor body styling changes such as pop-up headlights.

4

Sixth generation (E90)

A somewhat more rounded and aerodynamic style was used for the E90 introduced in

May 1987. Overall this generation has a more refined feel than older Corollas and other

older subcompacts. Most models were now front wheel drive, along with a few 4WD All-

Trac models. Many engines were used on a wide array of trim levels and models,

ranging from the 1.3 liter 2E to the 165 horsepower (123 kW) supercharged 4A-GZE.

The E90 Corolla was also rebadged and sold as the Geo Prizm(US) or Holden

Nova (Australia).

Seventh generation (E100)

in June 1991 Corollas received a redesign to be larger, heavier, and have the

completely rounded, aerodynamic shape of the 1990s. The Corolla was now in the

compact class, rather than subcompact, and the coupe still available known as Corolla

Levin AE101. Refinement reached new levels, as development chief Dr. Akihiko Saito

strove to create a "mini-Lexus

Eighth generation (E110)

May 1995 saw a complete redesign for the Corolla. External differences from the E100

series were obvious. Evolutionary technological improvements continued, however, and

in 1998, for the first time, some non-Japanese Corollas received the new 1ZZ-

FE engine. The new engine was the first in a Toyota to have an aluminum engine block

and aluminum cylinder heads, which made this generation lighter than the E100 Corolla.

The model range began to change as Toyota decided styling differences would improve

sales in different markets. In North America, the E110 had front and rear styling unique

to its home country, whilst Europe and Australasia received versions of their own as

well.

Ninth generation (E120, E130)

In November 2000 the ninth generation Corolla was introduced in Japan, with edgier

styling and more technology to bring the nameplate into the 21st century. It is also

5

called the Corolla Altis in the ASEAN region. The station wagon model is called the

(Japanese: Corolla Fielder) in Japan.

Tenth generation (E140, E150)

The tenth generation of the Corolla was introduced in October 2006. Japanese markets

called it the Corolla Axio, with the Asian markets retaining the Altis branding. The station

wagon retains the Corolla Fielder name. The Corolla Altis and Corolla Axio have a

different appearance.

1.3 PRODUCT:

The Toyota Corolla is a line of subcompact/compact cars manufactured by

the Japanese automaker Toyota, which has become very popular throughout the world

since the nameplate was first introduced in 1966. In 1997, the Corolla became the best

selling nameplate in the world, with over 35 million sold as of 2007.Over the past 40

years, one Corolla car has been sold on average every 40 seconds.The series has

undergone several major redesigns.

The name Corolla is part of Toyota's naming tradition of using the name Crown for

primary models: the Corona, for example, gets its name from

the Latin for crown; Corolla is Latin for small crown; and Camry is an Anglicized

pronunciation of the Japanese for crown, kanmuri.

Corollas are manufactured in Japan and in Brazil (Indaiatuba, São

Paulo), Canada(Cambridge,Ontario), China (Tianjin), India, Indonesia, Malaysia, Pakist

an, Philippines,South Africa, Taiwan, Thailand, Turkey,the United Kingdom (Derbyshire)

and Venezuela. Production has previously been made in Australia (Victoria). Production

in the United States(Fremont, California) is scheduled to end in March 2010.

The Corolla's chassis designation code is "E", as described in Toyota's chassis and

engine codes.

1.4 COUNTRY OF ORIGIN:

6

Toyota Motor Corporation,commonly known simply as Toyota, is a multinational

corporation headquartered in Japan. At its peak, Toyota employed approximately

320,000 people worldwide. It is the world's largest automobile maker by sales.

The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his

father's company Toyota Industries to create automobiles. Three years earlier, in 1934,

while still a department of Toyota Industries, it created its first product, the Type A

engine, and, in 1936, its first passenger car, the Toyota AA. Toyota also owns and

operates Lexus and Scion brands and has a majority shareholding stake

in Daihatsu and Hino Motors, and minority shareholdings in Fuji Heavy Industries, Isuzu

Motors, Yamaha Motors, and Mitsubishi Aircraft Corporation. The company includes

522 subsidiaries.

Toyota is headquartered in Toyota City, Aichi and in Tokyo.In addition to manufacturing

automobiles, Toyota provides financial services through its division Toyota Financial

Services and also builds robots. Toyota Motor Corporation (including Toyota Financial

Services) and Toyota Industries form the bulk of the Toyota Group, one of the largest

conglomerates in the world.

Toyota Corolla is the market leader in the 1300cc and higher engines.

In an effort to appeal more to the Young at Heart people, the New Corolla is aimed at

offering the Customer with World-size Wheelbase and Height to achieve more interior

space, luxury and a sporty look. We call it NCV."NewCenturyVehicle”.

Cool, Sleek styling and bigger dimensions for an improved sense of luxury. Many things

in our life get bigger as society and the environment change, or smaller as technology

advances. Toyota Engineers designed the Corolla by setting aside conventional ideas

such as, "This class of car must be this size". Making the Corolla bigger was a natural

consequence of today's trends.

Capturing Tomorrow's Values: Comfort and Luxury. Toyota Engineers reviewed

every possible angle to ensure total luxury: from the concept of interior space to how the

7

quality and texture of materials appeal to the eye and to the touch. Today's users are

not wiling to be satisfied with the status quo. We are determined to offer a level of

comfort that goes beyond even what the users seek.

Integrating today's leading-edge technology:

Society and specially the car's role are definitely changing, as seen in cars attaining

higher performance. At Toyota, we integrated today's leading edge technology to reflect

those changes.

Indus Motor’s sales during FY06 stood at 40,961 units, portraying 17 per cent upsurge

compared to 34,983 units last year. The company’s Toyota Corolla sales depicted 33

per cent increment to 30,527 units with market share at 46 per cent in the 1300cc and

higher engine cars. Toyota Corolla is considered to be the most successful car in its

segment.

8

CHAPTER-2

2.MARKETING MIX:

 Basic Corolla Sedan

 1.3L

XLi

1.3L

GLi

1.8L Manual

Transmissio

n

1.8L

Automatic

Transmissio

n

2.0D2.0D

Saloon

             

 Exterior- L x W X H

(mm)4530 x 1705 x 1480

 Exterior- L x W x H

(mm)1915 x 1430 x 1230

 Wheelbase (mm) 2600

 Minimum Turning

Radius4.9 m

 Engine Type 2NZ-FE 1 ZZ-FE 2C

 Engine Displacement

(cc)1299 1794 1975

 Fuel System EFI VVTi Fuel Injection

Max.Output (SAE-NET) 60K KW @ 6000

rpm 100kw@6000 rpm 53 kw @4600 rpm

Max.Torque (SAE-NET)119 Nm @4400

rpm 171 Nm @4200 rpm 131 Nm@ 2800rpm

 Transmission 5 M/T 5 M/T4 A/T W /

OD5 M/T

9

ECT Switch X X X 0 X X

 Brakes (FR/RR)Ventilated

Disc/DiscABS with Brake Assist

Ventilated

Disc/Disc

ABS with

Brake

Assist

 Suspension (FR/RR)Leading Arm, McPherson Strut Coil Spring/ETA Torsion Beam,

McPherson Strut Coil Spring

 Stabilizer Bar Front/Rear

 Steering System Power

 Tires 175/70 R14 185/65 R14175/70

R14

185/65

R14

 Fuel Cut System X X 0 0 X 0

 Exterior  

 Antenna Glass Embedded Print Antenna

 Bumpers Coloured

 Front Head Lamps 4 Lamp Multi-reflector

 Rear Lamps LED (Light Emitting Diode) Type

 Door Mirrors Manual Power (Colored) ManualPower

(Colored)

 Door Sash Black 0 0 0 0 0 0

 Front Wipers Intermittent Var-IntermittentIntermitten

t

Var-

Intermitten

t

Fog Lamps X X 0 0 X 0

 High-mounted Stop X 0 0 0 X 0

10

Lamp

 Laminated/ tinted

Windscreen0 0 0 0 0 0

 Mud Flaps (FR/RR) Black Colored (RR only) BlackColored

(RR only)

 RR Garnish Colored

 Side Impact Bars 0 0 0 0 0 0

 Side Protection Molding Black Chrome Black Chrome

 Side skirts X X 0 (Colored) X0

(Colored)

 Wheel Caps full

 Wheel Rim Steel

 Interior  

 Air Conditioner 0 0 0 0 0 0

 Cassette Player

 W/AM/FM Radio

 (Remote Control)

0 00

(with Mp3 CD Player)0

0

(with Mp3

CD Player)

 Central Door Locking   X 0 0 0 X 0

 Digital Clock 0 0 0 0 0 0

 Digital Trip Meter 0 0 0 0 0 0

 Door Trim Semi Fabric

 Foot Rest 0 0 0 0 0 0

 Heater 0 0 0 0 0 0

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 Key Reminder Warning 0 0 0 0 0 0

 Leather Gear Shift

KnobX X 0 0 X 0

 Light on Warning 0 0 0 0 0 0

 Optitron Meter X X 0 0 X 0

 Power Windows X 0 0 0 X 0

 Reverse Gear Warning X X X 0 X X

 RR Seat Arm Rest

(Center)X X 0 (with Cup Holder) X

0

(with Cup

Holder)

 RR Console Box W/Lid W/Lid W/2 Level Lid (F) W/LidW/2 Level

Lid (F)

 RR Head Rest Adjustable

 Roof Lining Molded

 Seat Belt (FR) 3 Point ELR x 2 (W / Adjustable Anchorage)

 Seat Belt (RR) X

3 point

ELR x 2,

Lap Type

x1

3 Point ELR x 2,

Lap Type x 1X

3 Point

ELR x 2 ,

Lap Type

x 1

 Seat Material Fabric

 Shift Position Indicator X X X 0 X X

 Speaker 2 4 6 2 6

 SRS Air Bag (Drive) X X 0 (Electronic) 0 0

(Electronic

12

)

 Steering Wheel 3 Spoke 4 Spoke Leather 3 Spoke4 Spoke

Leather

 Sun visor D + P W/Mirror and Card Holder

 Tachometer 0 0 0 0 X 0

 Tilt Steering  0 0 0 0 0 0

 Trunk Lamp 0 0 0 0 0 0

 Wood Grain Finish X X 0 0 X 0

 Wood Grain Finish on

Arm RestX X 0 0 X 0

2.1 Product Portfolio (India)

COROLLA ALTIS 1.8 J MANUAL.

COROLLA ALTIS 1.8 G

COROLLA ALTIS 1.8 SPORT

COROLLA ALTIS 1.8 V (AUTOMATIC)

2.2 Product length (INDIA)

13

2.3 PRODUCT DEPTH

COROLLA ALTIS

COROLLA ALTIS 1.8 J MANUAL.

COROLLA ALTIS 1.8 G

COROLLA ALTIS 1.8 SPORT

COROLLA ALTIS 1.8 V (AUTOMATIC)

TOYOTA INNOVA

INNOVA 2.0 G1,

INNOVA 2.0 GX

1998 CC,(PETROL)

INNOVA 2.0 VX,

1998 CC,.(PETROL)

INNOVA 2.5 EV MS,

INNOVA 2.5 G1,(DIESEL)

INNOVA 2.5 VX,(DIESEL)

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SEDAN

COROLLA ALTISCOROLLA ALTIS SPORTCAMRY

SUV/MUV

TOYOTA INNOVAFORTUNERPRADO LAND CRUISER

2.4 Product Line (Pakistan)

Products Market segment

Corolla Xli, 1.3L Lower level

Corolla Gli, 1.3L Lower level

Corolla 2.0D Middle upper level

Corolla 2.0D Saloon Upper level

Corolla Altis M/T 1.8L Middle upper level

Corolla Altis A/T 1.8L(Sun Roof) Upper level

2.5 Analysis of marketing of Toyota :

Toyota manufactures cars, which has a wide coverage from economic minibus to

luxurious cars, SUV. The brand on sell includes Crown, Reiz, Vios, Corolla, Coaster and

Prius. And Prius is the brand or car that Toyota has made a significant success in

American market. It is a hybrid vehicle.

Toyota has made its way to America. In 1957, Toyota exported to America at the first

time and established the selling company. In 1984, a joint venture was established with

General motor. Co. And in 1997, Prius was first in production and had a launch in

America. It was such a great success that Toyota conquered American market.

It is well known fact that American love cars so much. And due to oil crisis, Americans

changed the need structure for cars, converting their needs to oil saving cars. While

American car manufactures lacked producing such cars, then Toyota caught that

opportunity and tried to occupy this niche market.

15

2.6 Global vision 2005 (1996 –2005):

Cho decided to focus more on localization - he believed that by doing so, Toyota would

be able to provide its customers with the products they needed, where they needed

them. This was expected to help build mutually benefiting, long-term relationships with

local suppliers and fulfill Toyota's commitments to local labor and communities. Cho

defined globalization as 'global localization.' Therefore, besides focusing on increasing

the number of manufacturing centers and expanding the sales networks worldwide,

Toyota also focused on localizing design, development and purchasing in every region

and country.

It’s implemented Kaizen and many philosophies. A new concept of just in time (JIT) also

innovated. Also they adopted few western management practices in addition to the

traditional Japanese ones. All practices gave ample of improvement as its Kentucky

plant won four ‘Gold plant quality award’ from JD power and Association.

2.7 Global vision 2010 (2002 – 2010):

In April 2002, Toyota announced another corporate strategy to boost its

globalization efforts.

This initiative, termed the '2010 Global Vision' was aimed at achieving a 15%

market share (from the prevailing 10%) of the global automobile market by early

2010, exceeding the 14.2% market share held by the leader GM.

The theme of the new vision was 'Innovation into the Future,' which focused on four

key components: Recycling Based Society; Age of Information Technology;

Development of Motorization on a Global Sale; and Diverse Society.

Considering the extremely competitive global market scenario and the nearly saturated

demand in its core automobile markets (US and Japan ). Do you think Toyota will be

able to achieve its goal of attaining a 15% market share by 2010 ? Justify your stand.

Also suggest some measures that could help the company achieve its global targets.

16

Toyota hopes that the 21st century will be truly prosperous for society, and aims to grow

as a company together with its stakeholders, including customers, shareholders,

business partners, and employees, through making things and making automobiles,

while seeking harmony with people, society, the global environment and the world

economy.

In order to put these management principles into practice, the "Guiding Principles at

Toyota Motor Corporation" were established as the fundamental management policy.

These principles were adopted in 1992 to codify the business spirit handed down since

the company's foundation, and revised in 1997 to add the stipulation of legal

compliance. Each of the seven items is a cornerstone of Toyota's business activities.

With 2010 as the turning point, in April 2002 Toyota adopted the Global Vision 2010

which proposes the corporate image for which Toyota should strive . Centered on the

basic theme of "Innovation into the Future — A Passion to Create a Better Society," and

with a view toward what society is expected to be like in the medium to long term, the

Vision sets the course for the multi-faceted roles to be played by Toyota about society,

people and the Earth.

The fundamental thinking for Global Vision 2010 has three elements:

1) To step beyond "harmonious growth" and demonstrate our responsibilities as a world

leader

2) To benefit society through monozukuri (manufacture of value-added products) and

"technological innovation"; and

3) To share prosperity with our employees.

17

In order for each employee to realize the image that Toyota is striving to achieve in the

future, without complacency, it is important to undertake a paradigm change from the

following three perspectives:

(1) Technology development / Product development;

(2) Management; and

(3)Profit structures.

In June 2003, Toyota introduced a new management system that features, among other

enhancements, a streamlined board of directors and the new position of non-board

managing officer, aimed at speeding up operations by making the decision-making

structure less vertical. At the same time, the system hopes to strengthen corporate

auditing efforts by increasing the number of outside corporate auditors. With global

competition growing evermore severe, Toyota is striving to achieve the objectives

outlined in Global Vision 2010 by boosting its competitiveness.

But it is very tough to achieve the goal of attain its 15% market share. The reasons

behind it are as follows-

Under previous presidents, Toyota Motor Corp. had set a goal of reaching 15 per cent

global market share in global vehicle sales sometime after 2010. Until last year's

financial crisis, which sent sales crashing, it had been steadily expanding production

toward that goal.

The executive, who spoke on condition of anonymity because he spoke to select

reporters, said the automaker will still use numbers in their business plans, but "the

vision" had changed under President Akio Toyoda.

Toyoda, who took office in June, wasn't comfortable with racing toward numbers, and

instead wanted to return to the old-fashioned "Toyota Way" of understanding customer

needs and developing products to fill them, the executive said.

"Our president doesn't like numbers or documents," he said.

18

But the executive made clear Toyota remains bullish on sales, especially in emerging

markets, which now make up half of the global auto market.

A recovery in the U.S. auto market must come with bigger sales in China, South

America, the Middle East and other emerging markets to work as the "two engines" of

growth for a recovery, he said.

Toyota is hoping to sell more than 2 million vehicles in emerging markets this year,

which will make up about a third of its overall vehicle sales, the executive said.

Earlier this week, Toyota raised its vehicle sales forecast for the fiscal year through

March 2010, to 6.6 million vehicles from its initial forecast for 6.5 million vehicles.

The appointment of Toyoda, the grandson of Toyota's founder, has been viewed as a

morale boost for workers, dealers and suppliers as the maker of the Prius hybrid and

Lexus luxury car fights for a recovery.

Toyota racked up its worst loss in its seven-decade history for the fiscal year ended

March, and is expecting to stay in the red for the fiscal year through March 2010.

Speaking on the New United Motor Manufacturing Inc., or NUMMI, plant in Fremont,

California, a joint venture with U.S. automaker General Motors Corp., the executive said

Toyota will make a decision by the end of August. Details on what to do must be worked

out, he said without elaborating.

So this situation shows that it is the tough time for Toyota and tough to attain the15%

market share.

19

Chapter-3

3.1 Marketing Strategies (India)

In developing country like India ,corolla and Camry are taken to be in PREMIUM car

segment .

Eg . In india all the high court judges provided corolla as they give executive look

unlike Honda civic and Skoda Laura which have sporty look.

Urban & rural areas:

More of Toyota car in urban areas then rural areas because of difference in

Infrastructure, purchasing power ,literacy rates etc.

3.2 PRICES (INDIA)

PRICE (Rs.) CAR DETAILS

10,18,800 COROLLA ALTIS 1.8 J, SEDAN TYPE, 5 SEATER,1794

CC, 5 SPEED MANUAL. (PETROL)

11,65,600 COROLLA ALTIS 1.8 G, 5 SEATER, 1794 CC, 5 SPEED

MANUAL. (PETROL)

12,02,300 COROLLA ALTIS 1.8 SPORT SEDAN TYPE, 5 SEATER,

1794 CC, 5 SPEED MANUAL. (PETROL)

13,93,900 COROLLA ALTIS 1.8 V SEDAN TYPE, 5 SEATER, 1794

CC, 4 SPEED AUTOMATIC. (PETROL)

3.3 Warranties and Service contracts :

20

The company provides 3 year or 1 lakh Km (whichever earlier) warranty on all repairs

using Toyota genuine parts.

3.4 Differentiated Pricing :

Location Pricing : Toyota cars are priced differently in different states. Car cost remains

the same across the country but the road tax and insurance rates differ in different

states.

PRICES (PAKISTAN)

MODELPRICE (PKR)

Corolla Xli, 1.3L 1,269,000

Corolla Gli, 1.3L 1,384,000

Corolla 2.0D 1,317,000

Corolla 2.0D Saloon 1,754,000

Corolla Altis M/T 1.8L 1,754,000

Corolla Altis A/T 1.8L(Sun Roof) 1,839,000

3.5 Place (Pakistan)

Dealers are in the following cities:

Karachi (7), Quetta (1), Multan (2), Lahore (6), Faisalabad (1), Sargodha (1), Mirpur AK

(1), Rawalpindi (1), Islamabad (2), DI Khan (1), Peshawar (1), Mardan (1), 25 Dealers in

14 Cities.

3.6 Place (INDIA)

21

3.6 Packages and Options

Power tilt/slide moonroof with sunshade

16-in. alloy wheels with P205/55R16 steel-belted radial tires

22

Cruise control

Rear deck spoiler

JBL® AM/FM 6-disc in-dash CD changer, MP3/WMA playback capability

with XM Satellite Radio enabled [4], hands-free phone capability via Bluetooth

wireless technology and eight speakers in six locations (440-watt maximum power) with

steering wheel-mounted audio and hands-free controls

AM/FM 6-disc in-dash CD changer with MP3/WMA playback capability, satellite

radio capability [4] and six speakers

Touch-screen DVD navigation system [8,9] with AM/FM CD player with

WMA/MP3 playback capability and satellite radio capability [4] with six speakers

All-Weather Guard Package

• Heavy-duty heater with rear heater duct

• Anti-chipping tape

• Heated power remote-controlled outside mirrors

Power Package

• Power windows with driver-side one-touch down

• Remote keyless entry system with in-key transmitter

Sport Package

• 16-in. alloy wheels with P205/55R16 steel-belted radial tires

• Rear deck spoiler

• Power windows with driver's-side one-touch down

• Remote keyless entry system with in-key transmitter

Leather Trim Package

• Leather-trimmed seats and headrests

• Molded leather door trim, shift knob [10]

• Leather-covered center console with sliding armrest and front seat heaters

S Extra Value Package (savings up to $1,140)

• 16-in. alloy wheels with P205/55R16 steel-belted radial tires

LE Packages and Options

23

Remote keyless entry system with in-key transmitter

Cruise control

Power tilt/slide moonroof with sunshade [1]

16-in. alloy wheels with P205/55R16 steel-belted radial tires

AM/FM 6-disc in-dash CD changer with MP3/WMA playback capability, satellite radio

capability [4] and six speakers

All-Weather Guard Package

• Heavy-duty heater with rear heater duct

• Anti-chipping tape

• Heated power remote-controlled outside mirrors

LE Extra Value Package (savings up to $395)

• Cruise control

• Remote keyless entry system with in-key transmitter

Corolla Packages and Options

Cruise control

AM/FM 6-disc in-dash CD changer with MP3/WMA playback capability, satellite radio

capability [4] and six speakers

All-Weather Guard Package

• Heavy-duty heater with rear heater duct

• Anti-chipping tape

• Heated power remote-controlled outside mirrors

24

Chapter 4

4.1 Promotion (Pakistan)

Above the line

Advertising $24 million

Targeted at urban male consumers

Most was spent in radio and newspaper

Below the line

Promotion and Merchandising $12 million

Cricket tournament

4.2 Promotion (India)

Above the line

Advertising $64 million

Targeted at urban male consumers

Half was spend on tv

Others was spent in radio and newspaper

Below the line

Promotion and Merchandising $48 million

Tennis tournament

Workers in specific building

4.3 SEGMENTATION (INDIA)

25

4.3.1 Geographic segmentation

In developing country like India ,corolla and Camry are taken to be in PREMIUM car

segment .

Eg . In india all the high court judges provided corolla as they give executive look unlike

Honda civic and Skoda Laura which have sporty look.

More of Toyota car in urban areas then rural areas because of difference in

Infrastructure, purchasing power ,literacy rates etc.

4.3.2 Demographic segmentation

Family size:

Large family size and population as in India would Increase opportunities for growth in

sales of Corolla .

Income:

People falling in category of upper middle high income group and who have ability and

willingness to buy, would go in for Toyota cars like Corolla.

4.3.3 Psychographic segmentation

Social class:

People who belong to upper middle class and higher social strata would opt for

SUVs /MUV’s or sedan like Camry etc.

Personality:

People who are in sporty attitude having unique style statement would settle for Toyota

altis sport model or fortuner which would exhilarate their senses.

4.3.4 Behavioral segmentation

26

Occasions:

Festive seasons like DIWALI,NEW YEAR because of low interest financing and

discount people go in for purchase of cars. so more growth.

Benefits:

On purchase of a car , customer would also look for various benefits adjoined with the

main product like Bluetooth connectivtiy.HID headlamps, cruise control etc.

Attitude:

Person desiring an executive look ,would surely settle for corolla or Camry ,whereas

people desiring for sturdy yet sporty look would rather go for fortuner as it redefines

the way you move with art of power.

4.5 PROMOTION (Pakistan)

Modern marketing demand more than just developing a good product,pricing

attractively, making it available to target consumer.So, Toyota's total marketing

communication program also consist ofadvertising, personal selling, ales promotion and

public relation tools.

4.6 ADVERTISING

Since company has develop the market of its product to such extent that they have not

to advertise to the extent the competitors do. They are extending their market through

electronic media, newspaper banners and boarding.

4.7 PERSONAL SELLING

Indus Motors company has appointed very trained experienced sales people in a large

number so they can observe the needs of customer and make quick adjustment.

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4.8 AFTER SALE SERVICE

After sale service is very important aspect of the Toyota Motors.Toyota Motors

continued the dealership and fun within the company. The establishment of a "customer

relation tell" and the ongoing programmer for training to their dealership, staff have

resulted in improved service to their customer the uninterrupted availability of spare

parts at reasonable prices throughout the country contributed in Toyota vehicles

commanding a higher resale value which in turn attracts rate value which in turn attracts

repeat sales and customer loyalty thus achieving their objective of an increase market

share for Toyota.

In recognition of their achieving a higher standard of "after sale service" in Pakistan

Toyota Motor corporation of Japan has presented the company its "Good performance

award" which places Pakistan in the highest category.

4.9 FAVORABLE LOCATION

A favorable location indicates the strength of an organization, the essence of favorability

is that whether the plant is located at a place which is near to the supplier (or not).

The Indus plant is located at very favorable place; the port is near to it. The general

Tyre Company is near to it from which it gets the tires for its cars and save

transportation cost. Though some of vendors are also located in Lahore. But most of its

vendors are located in Karachi.

4.10 REGULATIONS:

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4.11 Toyota philosophy

Toyota's management philosophy has evolved from the company's origins and has been reflected in the terms "Lean Manufacturing" and Just In Time Production, which it was instrumental in developing.

The Toyota Way has four components:

1. Long-term thinking as a basis for management decisions. 2. A process for problem-solving. 3. Adding value to the organization by developing its people. 4. Recognizing that continuously solving root problems drives organizational

learning

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Bibliography

www.Google.com

Autoexpo magazine

www.Toyotabharat.com

www.Driveinside.com

www.Carwale.com

www.hailianz.com

www.foxitsoftware.com

www.allfreeessays.com

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