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Toyota February 13, 2006 Arunesh Chand Mankotia

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Toyota February 13, 2006 Arunesh Chand Mankotia

  1. 1. Case Study-Toyota Arunesh Chand Mankotia February 13, 2006
  2. 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. 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. 4. Market Mix The right combination of the 4 P’s  Product  Price  Place  Promotion
  5. 5. Product H1 H2 H3 H4 H5
  6. 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. 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. 8. Place
  9. 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. 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. 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. 12. Weakness Needs to improve the design Needs to retain operational efficiency Exterior styling Habit of committing mistakes twice Non-Committed dealers
  13. 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. 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. 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. 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. 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. 18. Cont… Reason for Toyotas 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. 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.

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