TOYOTA MOTORS

PREPARED BY: S. QURRAT-UL-AIN KAZMI

REG ID: 4494

2
TOYOYA MOTORS

CLASS ID: 9316

SUBMITTED TO: SIR SHAKEEL BAIG
DATE: 01 March 2010

MISSION STATEMENT
Toyota seeks to create a more prosperous Society through automotive manufacturing

VISION STATEMENT
Toyota aims to achieve long-term, stable growth in harmony with the environment, the global
economy, the local communities it serves, and its stakeholders

OBJECTIVES
Supporting One Another in Life and Living
We aspire toward the realization of a society in which each individual can live with dignity and
hope. To this end, we support efforts to activate the wisdom found in everyday life and to build a
good society through mutual support and collaboration among neighbors.

Searching for the Art of Living Better

In today's globalized world, nature is on the verge of crisis, while culture is undergoing a rapid
transformation. We wish to contribute to the creation of a beautiful environment and dynamic
local culture by nurturing relationships with the people of the world and learning from nature's
wisdom, so that everyone can enjoy a compassionate and fulfilling coexistence.

Toward a Fulfilling Future

We support initiatives to enrich the lives and minds of young people, with the aim of fostering
the next generation, on whom the future depends. We hope that this will enable the next
generation to respect each other's cultures from a broader perspective and to forge a path to the
achievement of lasting peace.

3
TOYOYA MOTORS

SWOT ANALYSIS
Strengths:

New investment by Toyota in factories in the US and China saw 2005 profits rise.
Diversified product range, highly targeted marketing and a commitment to lean
manufacturing and quality.
In 2003 Toyota knocked its rivals Ford into third spot, to become the World's second
largest carmaker with 6.78 million units. Many are now saying that Toyota may become
the largest automaker surpassing General Motors by next year.
Uses marketing techniques to identify and satisfy customer needs, and as emphasized by
the case video, on customer relationships.

Weaknesses:

Manufacturers need to make sure that it is their models that consumers want versus
competitors.
Most products targeted to the US and Japan only - shifting attention to the Chinese
market
Movements in exchange rates could see the already narrow margins in the car market
being reduced.
Company needs to cautiously keep producing cars in order to retain its operational
efficiency, especially in the case of the Prius, which the case study states had a backorder dating back six months.

Opportunities:

Lexus and Toyota now have a reputation for manufacturing environmentally friendly
vehicles.
Lexus has RX 400h hybrid, and Toyota has it Prius.
Rocketing oil prices have seen sales of the new hybrid vehicles increase.
Toyota has also sold on its technology to other motor manufacturers, for example Ford
has bought into the technology for its new Explorer SUV Hybrid.
Toyota is to target the 'urban youth' market. The company has launched its new Aygo,
which is targeted at the streetwise youth market.

Threats:

In 2005 the company had to recall 88,000 SUVs and pickup trucks due to faulty front
suspension systems.

4
TOYOYA MOTORS

Toyota faces tremendous competitive rivalry in the car market. Competition is increasing
almost daily, with new entrants coming into the market from China, South Korea and
new plants in Eastern Europe.

STRATEGIES
Offensive Strategy
Toyota aggressively marketed their cars to Americans as being fuel-efficient environmentally
friendly small size and having better build quality than other Brands.
In the 1980's they had people tell the story of hitting 100,000 miles in their Toyota while other
different cars were died at 80,000 miles. Toyota found that many of their cars were going
200,000 miles. That was a huge marketing success and it didn't even cost much money. (Building
a Quality Brand Strategy).
Now TOYOTA team is improving by concentrating on being a "green" company that cares
about the environment.
Diversity in their products which maximize market share, profitability of the company as all
the society sectors (Youth, Men/Women, rich) are being served with products that are under their
convenience.

Defensive Strategy
Overseas production for reducing labor cost.
Building a Huge Dealers network overall the world, thats made their products reachable for all
around the world.
Built the best system (TOYOTA Production system-TPS) that organizes manufacturing and
logistics for their automobile manufacturer, including interaction with suppliers and customers.
Their system has proven its effectiveness through the past and present. And Now TPS system
being studied & followed by other automakers.
After many years of the excellence TOYOTA brand become known in selling a high quality,
low maintenance, reliable and fuel efficient vehicles with widely available spare parts.
By the excellent reputation that TOYOTA has built through the past, their cars have got the best
resale value. This participates in Captives Customer and maximizes customer retention, market
share, profitability and maximizes Net marketing contribution.

5
TOYOYA MOTORS

In the past TOYOTA MOTOR COMPANY has lunched Scion for youth market, because the
younger customer has a greater "lifetime value" to the company. (The younger person has more
car purchases in his future than does the older one).

Targeted Customers
Individuals overall the world

SCION - Youth market (16-30) College degree, median income $30,000-$50,000 per
year.
TOYOTA - Medium class (25 and up), college degree, median income $40,000 and up
LEXUS - Toyota's luxury division (35 and up), college degree, median income $65,000
and up.
Companies.
Manufactories.
Institutions.

BRANDS
Following are the current Toyota Brands
Cars
Yaris
Corolla
Matrix
Camry
Camry Solara
Prius
Venza
Avalon
Trucks

Tacoma
Tundra
Hilux (VIGO)

SUVs and Vans

6
TOYOYA MOTORS

Rav4
FJ Cruiser
Highlander
Sequoia
4Runner
Land Cruiser
Sienna

Hybrids

Prius
Camry Hybrid
Highlander Hybrid

THE MARKETING MIX

PRODUCT
Corolla is a goods and service combination that Toyota offers to the consumers. It comes in
various models like 1300 cc Xli and Gli, 1800 cc Altis and Diesel 2.0D Saloon. The 1.8 Liter
VVTi Altis and 1.3 Liter VVTi Xli and Gli are suited for roads of Pakistan. The car comes in
choice of 9 metallic and matte finished colors. Various options like Automatic/Manual
transmission and sunroof are available according to choice of the customer. Safety goes beyond
the structural designs to ensure maximum passenger protection. Included are SRS airbag,
whiplash injury protection system, seat belts with pretension force limiter, ABS with Brake
assist, and LED lamps. Diesel models are also available.

PRICE
Toyota Corolla has always had a lower price tag as compared to most of its competitors. The new
base model Corolla is available for Rs 1,269,000 as compared to Rs 1,525,000 Honda Civic. The
price is considerably higher than Rs 1,070,000 Suzuki Liana and Rs 1,050,000 Honda City. But
Corolla has always proved to be worth every rupee.

PLACE
Toyota's corporate philosophy revolves around customer satisfaction, which is symbolized in the
3S Concept. Toyota is the Pioneer in the 3S System, which offers Sales, Service and Spare Parts
all from the same facility. Toyota has 30 dealers all over Pakistan, including major cities of

7
TOYOYA MOTORS

Islamabad, Lahore Karachi, Multan, Quetta, Peshawar and other cities like Hyderabad, Sialkot,
Dera Ismail Khan, Faisalabad, Gujranwala, Mardan, Mirpur Azad Kashmir, Rahimyar Khan
Rawalpindi, Abbotabad and Sargodha. Indus Motor Corporation and its service Department has
undertaken extensive training of its dealer' service staff by conducting over 30 specialized course
a year for service managers/service advisors, service Engineers and Technicians. Over 200 mandays are devoted each year to Service Training.

PROMOTION
Extensive promotion of Corolla is carried out through TV commercials, newspapers, broachers,
websites and banners. Dealership salespeople assist potential buyers and persuade them that
Corolla is the best car for them. Indus Motor Corporation is also running a Toyota Club program
to create community of Toyota Corolla owners.

Segmentation
Toyota Corolla uses multiple segmentation techniques to segment the Pakistan market.
Corolla segments the Pakistan market demographically according to income:
Upper Class
Upper Middle Class
Lower Middle Class
Lower Class
It also segments the market according to company loyalty. Corolla has been in Pakistan for
decades and has a huge following of Corolla fans that prefer a Toyota Corolla over anything else.
Toyota Corolla segments the market geographically as well and along with major cities, also
concentrated on rural areas where there are no dealerships of its competitors.

Target Market
About a decade ago, the major target segments of Toyota Corolla were Upper Class and Upper
Middle Class. But with introduction of consumer finance and property boom, the target segments
changed. As the upper class moved to more distinguished vehicles like BMW, Mercedes Benz or
likes of Honda Accord and Toyota Camry, Toyota Corolla targeted the Lower Middle Class. This
is a much bigger segment as compared to Upper class and thus the sales increased from 4,761 in
1995-96 to 35,762 in 2006-07. It targeted the income segment which could afford a lesser priced
car in the past and persuaded them to purchase a Toyota Corolla through financing from a bank.

Positioning
Over the years Toyota Corolla has positioned itself as a multi-dimensional vehicle in the minds
of consumers. It is a work horse with durability and very easy access to spare parts and repair.
Companies which need fleets of cars like Rent a Car, Huge Corporations or Radio Cab

8
TOYOYA MOTORS

companies prefer Toyota Corolla over anything else. The major reason is lower price as
compared to other vehicles, low maintenance cost, durability and resale value. At the same time,
Corolla is also positioned as a luxury sedan, a status symbol. In the status conscious market of
Pakistan, this positioning played in the favor of Toyota Corolla as Lower Middle Class looked to
purchase luxurious cars.

KEY SUCCESS FACTOR

Quality of parts used.

Best quality control to monitor manufacturing process to ensure there are no
manufacturing defects.
Better customer service to facilitate customers.
Reduction in prices.