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
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
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.
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
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
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.
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.
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.
 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
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
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
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
Advertisement Strategy 2017-18 for Innova Crysta and Avanza
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.

Marketing Program Design- Toyota Kirloskar

  • 1.
    Marketing Program Design SectionD 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 ofPassenger 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 inIndia 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 inIndia 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:  Toyotaenjoys 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 andTargeting: 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 firstgeneration 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 inthe 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 websitesare 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 MediaStanding 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 anew 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 2017-18for Innova Crysta and Avanza
  • 14.
    Advertisement Strategy 2017-18for 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.