MARKETING NIRVANA Putting Customer First TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITEDHitarth Saini Marketing & Adverting ClubRakesh Rajendran Vinod Gupta School of Management IIT Kharagpur
INTERESTING FACTS 5th largest car maker in India after Maruti Suzuki, Hyundai, Tata and Mahindra Joint venture between Toyota Motor Corporation and Kirloskar group Entered India in 1997 TKMPLs current plant at Bidadi, Karnataka is spread across 432 acres and has a capacity of 90,000 vehicles per annum Second manufacturing plant on the outskirts of Bangalore, Karnataka has a capacity of 120,000 vehicles per annum. Both plants have a combined capacity of 210,000 vehicles per annum. The company is investing Rs 898 crore in Bidadi to increase production capacity by nearly 50 per cent to 310,000 vehicles a year by March 2013
INTERESTING FACTS Toyota announced that Etios sedan and the Liva hatchback has posted sales of over one lakh units, hence Toyota is all set for giving its production a big boost. Plans to hike the production of Etios series models by 75% by early 2013.
PLANTS OVERVIEW TKMPL 1st plant October 1997 (start of production: DecemberEstablished 1999)Location Suburb of Bangalore, Karnataka State Innova, Fortuner manufactured in India.Products Prado, Land Cruiser and Prius imported models.Annual production capacity Approx. 90,000 units TKMPL 2nd plant On the site of Toyota Kirloskar Motor PrivateLocation Limited (on the outskirts of Bangalore, Karnataka State)Products Corolla Altis, Etios, Etios Liva, New CamryStart of production December 2010Annual production capacity 1,20,000 units
GLOBAL PRESENCE Toyota Motor Corporation abbreviated TMC, is a Japanese multinational automaker headquartered in Toyota, Aichi, Japan. World’s biggest car maker by the number of units sold. Ninth largest company in the world by revenue. In July 2012 the company reported that it had manufactured its 200 millionth vehicle. Toyota is popularly known as "丰田 "(pronounced as "Fēngtián" in Mandarin Chinese ).
INDIAN PERSPECTIVETOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED
TARGET MARKETS Passenger cars market Multi utility vehicle market
MARKET SHARE Toyotas share in the last financial year was 6.12 per cent, with a high dependence on one model - its Innova multi-utility vehicle, which accounts for 38 per cent of its revenues. Toyota employs more than 6000 people in India. Toyota targets 10 percent market share in next five years.
THE SUCCESS FACTOR 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. Toyota’s success in India has been due to several factors – a renowned brand world-class manufacturing processes and practices in-depth market analysis superior product quality committed employees.
MARKETING STRATEGYThe managing director Hiroshi Nakagawa says“Quality is our top priority and, at the sametime, the Indian customer is very keen on cost andprice. We have taken a lot of initiatives with(component) suppliers for a technicalbreakthrough, like how to reduce the weight ofiron while maintaining its strength.”http://www.youtube.com/watch?v=fuh_OwGjWeU
MARKETING STRATEGY"Our goal is 100 per cent localisation, but nomanufacturer has ever achieved that," saysNakagawa. "You will still require someadvanced material like a sensor or chip." Headds that planning is necessary to adjustproduction. "But there is no stability in auto fuelpolicy. That is a cause for concern."
CHALLENGES Localisation Waiting Period Cost reduction-Rupee slide against dollar Established rivals Auto fuel policy78 percent of Toyota’s annual revenue comesfrom the diesel variants ofEtios, Corolla, Fortuner and Innova.
TPS HALLMARKS Lean Manufacturing JIT production In process Quality Assurance Toyota’s world class research and developmenthas made possible technological advancements inquality manufacturing, safety, efficiency andenvironment preservation, all of which contributetoenhancing customer satisfaction.
FUTURE PLANS Toyota plans to increase its market share in the MUV and car markets, alongside increasing productivity. Toyota expects to produce 1 million cars a year by 2020. Toyota also plans to continue working with component manufacturers to guide them on quality, cost and delivery. Toyota is preparing itself and its dealers and vendors for growth by stepping up training at all levels
THANK YOU PREPARED BY HITARTH SAINI RAKESH RAJENDRAN MARKETING & ADVERTISING CLUB VGSOM, IIT KHARAGPUR