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Marketing Program Design- Toyota Kirloskar
- 1. Marketing Program Design Section D Group 8 Deepesh Kohli Deven Agarwal Sachin Mandot Shrey Bhatnagar Sneha Singh Yash Kejriwal Marketing Plan and New Product Launch for FY 2017-18 IMT Ghaziabad PGDM 2016-18
- 2. Current Market of Passenger Vehicles in India Chart 1: Sales of Passenger Car Segment in India 2501.542 2629.839 2665.015 2503.509 2601.236 2789.678 2350 2400 2450 2500 2550 2600 2650 2700 2750 2800 2850 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Passenger Car Sales (in '000 units) Passenger Car Sales in '000 units -10.00 -5.00 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Growth Rate in % over previous year Growth Rate in % over previous year Chart 2 : Y-o-Y growth of Passenger Car Segment in India from 2010 - 2016 Chart 3: Passenger Car Sales Region Wise Chart 4 : Share of sales across different segments of passenger vehicles
- 3. MUV sales in India Chart : Dealer Network of Major Players in India 1800 512 291 265 311 213 376 1450 276 212 170 200 140 209 46.7 17.38 8.27 6.88 5.36 4.77 2.87 0 200 400 600 800 1000 1200 1400 1600 1800 2000 MARUTI SUZUKI HYUNDAI MAHINDA AND MAHINDRA HONDA TATA MOTORS TOYOTA FORD No. of Dealers comparison Market Share in Percent Number of cities Number of Dealers • Toyota Kirloskar which entered market after 17 years after Maruti has far lower number of dealers and network. • We can infer that dealership network is also related with the market share that company captures.
- 4. Toyota Portfolio in India Toyota motor corporation is a global automobile giant founded in Japan. Toyota motors started its operations in India in 1997 by means of joint venture with Kirloskar group. Kirloskar group is a minority shareholder with 11% in the JV, 89% lies with Toyota. At present India contributes near to 1.3% of total worldwide sales of Toyota. Toyota Kirloskar earned a net profit of Rs 529 Cr in FY 2014-15 Portfolio in India • Etios Liva • Platinum Etios • Etios Cross • Innova Crysta • Corolla Altis • Fortuner • Camry • Land cruiser Prado • Land Cruiser
- 5. SWOT Toyota Strengths: Toyota enjoys a strong brand image in global automotive industry Organizational culture of Toyota facilitates rapid innovation A wide and diversified car portfolio in multiple segments Brand is synonymous to durability, comfortability, reliability and value for money Strong human resource with 346,219 skilled employees across the globe Capability of producing 10 million cars/year Weaknesses: • Less number of dealers and service centers as compared to Indian competitors • Toyota lags in segments like hatchback and entry level sedans • Product recalls in past years impacted financials as well as the brand image • Connect to Indian people is less compared to competitors Opportunities: • Expanding Hybrid, Electric, CNG & LPG auto market • Attraction of Indian youth towards foreign cars • Increasing purchasing power of people due to economic growth • Emerging on-the go taxi market like Ola and Uber • Improving country’s infrastructure is raising demand for cars Threats: • Government regulations on diesel/petrol vehicles • Intense competition in every car segment • Lower price vehicles from competitors gaining market share • Labor union issues
- 6. STP Toyota Segmentation and Targeting: Toyota has segmented the market based on Demographics Psychographics In demographic segmentation, Toyota targeted urban families of upper middle income group and having a family size greater than 4. Young executives and businessmen are targeted, who travel frequently and require comfort and luxury In psychographic segmentation, Toyota targeted people interested in sporty, masculine, aesthetically appealing and yet comfortable car. Target customers included people who travel in groups. Positioning: A multi premium vehicle car which provides comfort, performance and reliability for a individual and his family.
- 7. Brand Identity The first generation Innova launched in 2005 was positioned as a compact MUV, having a car-like structure, providing a differentiation from the existing MUVs like Bolero and Sumo in the market. With the new Innova Crysta, Toyota has created an image of the vehicle being more sporty, youthful and masculine with a modern cultural outlook. The design is more of an edgy car, i.e., at the forefront of trends, with the aesthetics of a more personal belonging than only being a transport medium for all.
- 8. Product •Premium features •Reliable engine •After Sales service •Spacious interiors Price •Priced in the premium segment •Varies with model type Promotion •Television commercial •Newspaper ads •Tag line "Luxury meets power" •Online promotion Place •Available at dealerships Marketing Mix Innova Crysta advertisement in the newspaper gives detailed information about the vehicle, specifications, dealerships in the region. The Ad depicts the powerful engine and luxury that comes along with Innova Crysta.
- 9. Websites Automobile websites are very image driven and Toyota site is no exception. It is heavy on high resolution pictures as well as videos. Toyota’s website requires much scrolling down to reach important sections. Requires some design changes to make it more user adaptable. Landing page consists of too much content, hence needs to be streamlined. Toyota parts connect First OEM in the Indian automobile industry to sell genuine spare parts online through its portal www.toyotapartsconnect.in Current Online Marketing Toyota website landing page
- 10. Current Social Media Standing Firm Wise Facebook Likes Facebook Trending on 17 October Twitter TOYOTA 793793 481 53300 MARUTI SUZUKI 318888 149 45200 HYUNDAI 7330773 18888 165000 MAHINDRA&M AHINDRA 809157 60 248000 MUV wise Facebook Likes Twitter Followers Facebook Trend Toyota Innova 356929 3217 89759 MARUTI SUZUKI Ertiga 357198 20000 88407 Renault Lodgy No separate FB page No separate Twitter handle 1000 • On Facebook, there isn’t a separate page for Toyota Innova Crysta • Twitter handle is named after Innova. Maruti Suzuki Ertiga has handles by its name. • Renault Lodgy doesn’t have a page on Facebook or twitter handle on its name, Renault brand has its page and twitter handle
- 11. Objectives for 2017-18 1. Sales Volume – Sale of 1,01,683 MPVs Assumptions : • Growth rate of around 8 % in the passenger car sales • Increase in market share of MPV segment to 15 % of total passenger cars • Increase in Toyota’s share of MPV sales to 25% from 20.05 % 2. Advertisement & Promotions – Budget to be within the industry standards (1.2 – 1.5 % of Revenue) Maintain the leadership of Innova brand 3. Increase in Social Media presence 4. Increase in Dealer Network Total car sales till Sep 2016 Expected passenger car sales in 2017 ( @8%) MPV sales (15% of tot) No of cars to be sold by Toyota 2789678 3012852 451927.8 101683
- 12. Launch of a new MUV in a low price segment Base Model (Model 1) Model 2 Model 3 Model 4 Airbags front Double din Music system Airbags backseat Automatic rain sensing wipers ABS with EBD Stereo controls on steering wheel Projector headlamps Automatic Climate control Central Locking Fog lamps Cruise control Engine start stop button Single-din music system Alloy Wheels 16” Alloy Wheels 17” Touchscreen music system with GPS navigation Wheel rims 16” Leather Seats Auto-folding ORVMs Keyless entry Black coloured door- handles Body coloured door- handles Auto headlamps • Entry level price segment MUV launch • 7-seater MUV with premium features • Target customer – families having 3 or more members • Diesel and petrol variants • Price range : 6-10 lakhs ex-showroom New vehicle details Feasibility Avanza is designed and produced for Toyota by Daihatsu in Indonesia, which implies R&D is already complete. Toyota Kirloskar has strong infrastructure in place in India to adapt with the changes needed in India for Avanza. Strategy for 2017-18
- 13. Advertisement Strategy 2017-18 for Innova Crysta and Avanza
- 14. Advertisement Strategy 2017-18 for Innova Crysta and Avanza Physical Advertisement • Promotional budget for New launch of Toyota avanza should be Rs 50 crore. • For Innova Crysta it should be around Rs 20 crore. • As the product launch for Avanza is scheduled in April-May 2017, It will be first displayed at Auto Expo which would be held in period of January to March of 2017, Their expense would be not be added in FY 2017-18 marketing expenses. • Automotive magazines should cover the stories on MUVs Innova Crysta and to be launched avanza. This activity doesn’t involve cost but PR should be able to communicate value effectively. • Avanza would be positioned as Entry level MUV for family customers, TVCs should translate the same message of being an integral to the family. Online Promotions Strategy • Firm should focus on Content based advertisement for online promotion rather than promoting its posts by paid means. • It should sponsor web based shows based on Family like ‘Tata Tiago TVF Tripling’ which involves vehicle as a central theme. • Increasing likes and reach on Facebook, Twitter by means of Online competitions. • Including feature like 360-degree view on website for products, which will facilitate virtual reality like view. • Current website Alexa rank is 6308 in India, Whereas the same for Maruti is 1714. Through better SEO tools Alexa rank should be increased in range of 4500 in 1 year. • Car portals like CarDekho, Carwale should display Images of MUVs of Toyota in HD with all details and car experience should be published on website. This activity is PR based and shouldn’t be cost intensive.