1. Case Study-Toyota
Arunesh Chand Mankotia
February 13, 2006

2. Introduction-Company Profile
 Established in 1937 as a spin-off from
Toyoda Automatic Loom Works
 Headed by Japan’s “King of Inventors”
Sakichi Toyoda
 Launched first car (SA Model) in 1947
 One and only strike in 1950.
 It became Toyota Production System in
1970

3. Company Profile
 World’s Third Largest manufacturer of
automobiles in unit and net sales.
 It is by far the largest Japanese
automotive manufacturer, producing
more then 5.5 million vehicles per year,
equivalent to every 6 seconds.

4. Market Mix
 The right combination of the 4 P’s
 Product
 Price
 Place
 Promotion

5. Product
 H1
 H2
 H3
 H4
 H5

6. Price
 H1: 10,71,972
 H2: 11,75, 205 and 11,79,551
 H3: 12,39,120 and 12,43,467
 H4: 13,07,232 and 13,11,578
 H5: 12,43,574 and 12,47,911

7. Place
 12 Toyota Plants in and around Toyota City
and Aichi Prefecture.
 Established 3 other domestic manufacturing
companies in-Kyushu, Hokkaido & Tohuko
 Duo Sales outlets, which sell Volkswahen
 295* Toyota dealers with different channels
 Toyota Dealers
 Toyopet Dealers
 Toyota Corolla Dealers
 Netz Dealers

8. Place

9. Promotion
 Across the world, Toyota participates
enthusiastically in community activities
ranging from the sponsorship of
educational and cultural programs to
international exchange and research.
 Authorized dealers for their car segments.

10. Strengths
 Devotion towards a community project
 Caters to all the segments of the community
 First priority are the customers and the
environment
 Provide a choice to the customers for
customizing their own cars.
 Strong belief in fulfilling its corporate
responsibility.

11. Strengths
 Strong financial standing
 Customer loyalty
 Supports various programs focused on the
improvement of the community
 Policy of producing cars near its local
markets.

12. Weakness
 Needs to improve the design
 Needs to retain operational efficiency
 Exterior styling
 Habit of committing mistakes twice
 Non-Committed dealers

13. Threats
 Young buyers getting attracted to Suzuki,
Hyundai
 Exposed to fluctuations in economic and
political conditions in US, Japan
 General motors still being the world’s
largest carmaker.
 Demand in economies like U.S and Europe
has become static.

14. Opportunities
 Needs to a marketing strategy that caters
to the young generation.
 Needs to come up with small segment
cars.
 Needs top focus on fuel efficiency cars
rather than producing thousands of hybrid
cars.

15. Key Success Factors
 Innovation.
 Diversity.
 Very well understanding the needs of
different countries.
 Manufacturing speed and flexibility.
 Caters to the requirements of all the age
groups.
 Marketing strategy appeals to individuality
and creativity.

16. Recommendations
 Better Design : Give a heavier look
 Tires are not that good
 Working out some good deals for dealers
or may be some contest to boost some
sales
 Changing the target segment
 Working out some cheaper price to attract
the young crowd

17. Conclusion…
 In 2000, the first hybrid electronic
gasoline car made Toyota a leader;
 Toyota wants to be known for
environmental friendly car;
 Toyota offers wide range of cars: from
family sedans, sport utility vehicles, trucks
& minivans;
 Toyota is more Customer focused;
 Marketing Strategies for different cars;

18. Cont…
 Reason for Toyota's Success: its Manufacturing
unit;
 Leads to increase in productivity & market
responsiveness;
 In 2003, Toyota’s sale rose to $140 billion that it
edged Ford Motors;
 It became the 2nd largest car-maker;
 Market cap of $110billion is more than GM &
Daimler Chrysler (Combined);
 Toyota’s Goal: Surpass GM & be World leader in
Automobile;

19. Reasons why Toyota was
vulnerable
 Only luxury segment cars are launched in
India.
 Sales satisfaction is a weakness due to the
longer waiting time for new car delivery.
 Customers still lag in appreciating the
global warning. Thus the marketing
strategies should emphasis on the value of
fuel efficiency.
 Cars like Lexus and Celica have niche
market.