24337762 Marketing Mix of Toyota India

MARKETING MIX OF TOYOTA INDIA

1AMITY GLOBAL BUSINESS SCHOOL CHANDIGARH

SUBMITTED TO :PROF. SHIVALI DHINGRA

SUBMITTED BY:MEGHA JAINNEHA RANINIMRAN DHALIWALRAJAT VERMASUNIRA MALIKVARUN GUPTA

INTRODUCTION

AMITY GLOBAL BUSINESS SCHOOL CHANDIGARH 2

INTRODUCTION

• Toyota Motor Corporation, commonly known simply as Toyota, is a multinational corporation headquartered in Japan, and the world’s largest automaker by sales. Toyota employs approximately 320,808 people worldwide.


HISTORY

• The company was founded by KIICHIRO TOYODA in 1937 as a spinoff from his father’s company Toyota Industries to create automobiles. Three years earlier in 1934, while still a department of Toyota Industries, it created its first product, the type a engine and in 1936, its first passenger car, the Toyota AA.


TOYOTA - INDIA

• In India, Toyota Motor Corporation entered in a joint venture with Kirloskar Group.

• Toyota Kirloskar Motor Private Limited(TKM) aims to play a major role in the development of the automotive industry and the creation of employment opportunities.


MISSION

• Practice ethics and transparency in business operations.

• Touch the heart of customers by providing products and services of superior quality at a competitive price.

• Create an eco-friendly company in harmony with nature and society.


GROWTH

• TKM’s growth since inception can be attributed to one simple, yet important aspect of its business philosophy-”PUTTING CUSTOMER FIRST”. While managing growth , TKM has maintained its commitment to provide quality products at a reasonable price and has made every effort to meet changes in customer needs.


PRODUCTPRODUCT


PRODUCT

Product is anything that can be offered to the market to satisfy a want or need including

Physical goods ,Services , Experiences,Events,Person, Organization, Information and ideas.


PRODUCT MIX

Product length


SEDAN

COROLLA ALTISCOROLLA ALTIS SPORTCAMRY

SUV/MUV

TOYOTA INNOVAFORTUNERPRADO LAND CRUISER

PRODUCT WIDTH- No product width as such.

PRODUCT DEPTH


TOYOTA INNOVA

INNOVA 2.0 G1,1998 CC.(PETROL)INNOVA 2.0 GX 1998 CC,(PETROL)INNOVA 2.0 VX,1998 CC,.(PETROL) INNOVA 2.5 EV MS, 2494 CC,(DIESEL)INNOVA 2.5 G1,(DIESEL)INNOVA 2.5 VX,(DIESEL)

COROLLA ALTISCOROLLA ALTIS 1.8 J MANUAL.COROLLA ALTIS 1.8 GCOROLLA ALTIS 1.8 SPORT COROLLA ALTIS 1.8 V (AUTOMATIC)

PRODUCT LIFE CYCLE


TKM IS IN BETWEEN THE GROWTH AND MATURITY STAGE .Toyota decided to replace Qualis because of two reasons.

Qualis was a major success among the tour operator segment but was not popular at the individual/home segment.

Second reason was the increased competition from Chevrolet Tavera which was perceived to be a more refined upmarket SUV.

Toyota also wanted to bring in the latest products in the Indian market. Qualis was only a test product.

Further, Toyota wanted to appeal to the individual/home users rather than the commercial segment.

BRAND Name , term , sign ,symbol, or design , or a combination to

identify the goods or services of one seller or group of sellers and to differentiate form those of competitors.

TOYOTA• Well known brand in Japan and throughout the world.• Historically , word crown has been a linguistic taxonomy for

Toyota cars.• Corolla which is a Latin for small crown and Camry which is

an English articulation of the word kanmuri meaning crown are all part of carefully prescribed family of names that revolved around the metaphor of royalty.


BRANDING

• Is endowing products and services with the power of brand.

Branding -• Helps consumer organize their knowledge

about products & services in a way that clarifies their decision making .


BRANDING STRATEGY

• Reflects the number & nature of both common & distinctive brand element it applies to the product it sells.


TKM uses LINE EXTENSION as its BRANDING STRATEGY .like they have come up with different variants in corolla,new being SPORTS model.multibrandingDifferent brands available like Camry, corolla, innova, land cruiser, Prado. Eg. Introduction of FORTUNER in its line of SUV’s

LABELLING• The label may be a simple tag /logo attached to the

product . Might carry a brand name or a great deal of information.


In Toyota , the label is the mark which consist of 3 ovals :2 perpendicular ovals represent a relationship of mutual trust between customer and the company . The bigger oval implies global expansion of toyota’s technology and unlimited potential for future.

WARRANTIES Are the formal statements of expected product performance by

the manufacturer .products under warranty can be returned to the manufacturer or repair centers for replacements or refunds.


In Toyota's case company provides:3 year or 1 lakh kms (whichever is earlier )Warranty on all repairs using Toyota genuine parts thus providing quality service to customers.

SEGMENTATION A market segment consist of a group of customer who

share a similar set of wants.Geographic segmentation


Country:In developing country like India ,corolla and Camry are taken to be in PREMIUM car segment .Eg . In india all the high court judges provided corolla as they give executive look unlike Honda civic and Skoda Laura which have sporty look.

Urban & rural areas:

More of Toyota car in urban areas then rural areas because of difference in Infrastructure, ,

purchasing power ,

literacy rates etc.

Demographic segmentation


Family size:Large family size as in India would Increase opportunities for groth in sales of Innova or Fortuner .

Income:People falling in category of upper middle high income group and who have ability and willingness to buy ,would go in for Toyota cars like land cruiser,prado,camry,etc.

Psychographic segmentation


Social class:

people who belong to upper middle class and higher social strata would opt for SUVs /MUV’s or sedan like camry etc.

Personality:People who are in sporty attitude having unique style statement would settle for Toyota altis sport model or fortuner which would exhilarate their senses.

Behavioral segmentation


Occasions:Festive seasons like DIWALI,NEW YEAR because of low interest financing and discount people go in for purchase of cars. so more growth.

Benefits:On purchase of a car , customer would also look for various benefits adjoined with the main product like Bluetooth connectivtiy.HID headlamps, cruise control etc.

Attitude :Person desiring an executive look ,would surely settle for corolla or Camry ,whereas people desiring for sturdy yet sporty look would rather go for fortuner as it redefines the way you move with art of power.

PRICEPRICE


• Value – Driven Pricing method

Customers

Value

Price

Cost

Product

The customers are given value in terms of several elements like warranty, quality, customer support etc. The company thus wins loyal customers by charging a fairly low price for a quality offering. Thus, the company reengineers its operations to become a low–cost producer without sacrificing quality, to attract a large number of value-conscious customers.


Pricing StrategyPricing Strategy

• Optional-Feature Pricing : e.g. an Innova customer can order mud flaps, side steppers or other accessories.

• Promotional Pricing : Low Interest financing : This technique is for

short period and is mainly used in festive seasons. Longer Payment Terms : The company stretches

loans over longer periods and thus lowers the monthly payments.


• Warranties and Service contracts : The company provides 3 year or 1 lakh Km (whichever earlier) warranty on all repairs using Toyota genuine parts.

• Differentiated Pricing : Location Pricing : Toyota cars are priced

differently in different states. Car cost remains the same across the country but the road tax and insurance rates differ in different states.


LIST OF PRICES OF VARIOUS MODELSLIST OF PRICES OF VARIOUS MODELS

PRICE (Rs.) CAR DETAILS10,18,800 COROLLA ALTIS 1.8 J, SEDAN TYPE, 5

SEATER,1794 CC, 5 SPEED MANUAL. (PETROL)

11,65,600 COROLLA ALTIS 1.8 G, 5 SEATER, 1794 CC, 5 SPEED MANUAL. (PETROL)

12,02,300 COROLLA ALTIS 1.8 SPORT SEDAN TYPE, 5 SEATER, 1794 CC, 5 SPEED MANUAL. (PETROL)

13,93,900 COROLLA ALTIS 1.8 V SEDAN TYPE, 5 SEATER, 1794 CC, 4 SPEED AUTOMATIC. (PETROL)


PRICE (Rs.) CAR DETAILS8,43,600 INNOVA 2.0 G1, MUV TYPE, 8

SEATER, 1998 CC, 5 SPEED MANUAL.(PETROL)

9,39,500 INNOVA 2.0 GX, SUV/MUV TYPE, 8 SEATER, 1998 CC, 5 SPEED MANUAL.(PETROL)

11,22,000 INNOVA 2.0 VX, SUV/MUV TYPE, 8 SEATER, 1998 CC, 5 SPEED MANUAL.(PETROL)

8,03,600 INNOVA 2.5 EV MS, MUV TYPE, 8 SEATER, 2494 CC, 5 SPEED MANUAL.(DEISEL)

9,15,700 INNOVA 2.5 G1, 8 SEATER, MANUAL(DEISEL)

11,84,800 INNOVA 2.5 VX, 8 SEATER, MANUAL(DEISEL)


PRICE (Rs.) CAR DETAILS

19,32,700 TOYOTA FORTUNER

22,42,300 TOYOTA CAMRY

45,33,400 TOYOTA LAND CRUISER PRADO

86,29,500 TOYOTA LAND CRUISER


PROMOTIONPROMOTION


TOYOTA

• TOYOTA uses many different techniques of advertising as most of Print advertisement of TOYOTA COROLLA are individually targeted at factors like comfort, performance, styling, power, leg room and driving pleasure.

• The commercials mainly target at Indian youth and young executives.


ADVERTISING • ADVERTISING is a

form of communication used to influence individuals to purchase products.

• It is any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor.


BROCHURES• The Brochures, Posters,

Leaflets showcase that Toyota Corolla, Innova, land Cruiser, Prado are all for the people who demand performance, style, power and sheer driving.


INNOVA" All you desire "• Very few actors in Bollywood possess the

international standards of expertise that Aamir Khan does. Aamir managed to carve out a niche for himself among the superstars as well as changed his persona in tune with the character he was playing incase of “Toyota Innova”.

• It is precisely this characteristic of this talented actor

• that is sought to be celebrated in • the Toyota Innova advertisement.


OTHER SOURCES

• The other sources of advertisement includes Bill Boards, Display signs, bulletins and broad cast advertisement. The company does the advertising of corolla and Innova by placing billboards at various expressway and highways.


SALES PROMOTIONSales Promotion includes tools

for :• Toyota Company uses major

sources of sales promotion such as Trade fairs, like auto expo, motor shows.

• In these fairs, the company showcase its various varieties of car. These fairs help customers to draw comparison between different cars on the basis of color, features etc.


PUBLIC RELATION• Toyota company

contributed to public relation’s in the following manner ;

1. It contributed to Tsunami

2. Toyota Kirloskar signs MOU with Bangalore University for promotion of Japanese language.

3. Toyota observes earth day by supporting local schools.


PERSONAL SELLING Personal selling involves

two-way, personal communication between sales people and other customers.

Personal selling largely takes place at the dealer’s end. The way the customer is attended depends mainly on the dealer as he acts as an interface between the company and the customer.


Mostly in case of individual sales the customer goes to the showroom and takes a look at the product. There he is attended by the sales personnel of the dealership. Personal selling is also practised at trade fairs wherein the company appointed sales personnel prospective customers and also book their orders.


DIRECT MARKETING• Direct marketing is the

use of consumer-direct channels to reach and deliver goods and services to customers without using marketing middlemen.

• The company officials directly contact the prospective buyers with the information available through various sources ;


Pioneer Toyota website


PLACEPLACE


Selection and management of channels and product flow to consumers

Represents the location, where the product can be purchased


Vertical Marketing System

ManufacturerManufacturer

Dealer

End Consumers45AMITY GLOBAL BUSINESS SCHOOL

CHANDIGARH

FUTURE PLANS & OPPORTUNITY


FUTURE PLANS• Toyota Kirloskar Motor Pvt. Ltd (TKM)

announced that it will display 14 production and concept vehicles at the 10th Auto Expo in Delhi to be held at Pragati Maidan from January 5 to 11, 2010. Toyota Kirloskar Motor will launch its small car by the end of 2010 from its Bangalore plant.

• New cars that can be seen on the Indian roads are: Prius and Yaris

• Plans to bring Toyota Financial Services in India which is already operational in more than 30 countries.


PRIUS HYBRID• Toyota Prius can run on electric

power for approximately 20mph and after the car is temporarily stopped the engine shuts down.

• Prius will come in various combination offers ranging from

* back-up camera * keyless entry/start Smart Key

system * Bluetooth wireless


YARIS• Entrance into hatchback

segment• Competition to Skoda Fabia,

Honda Jazz* Defroster-linked CFC-free air

conditioning* Multi-reflector halogen

headlights* Automatic rain sensor * Climatronic


OPPORTUNITY


Toyota can also introduce more SUVs, MUVs, cars and trucks in India namely

CARS TRUCKS• MATRIX * TACOMA•VENZA * TUNDRA•AVALON

SUVs & VANS HYBRIDS• RAV 4 * CAMRY •FJ CRUISER * HIGHLANDER•HIGHLANDER•4RUNNER•SIENNA

Bibliography


www.Google.com

Autoexpo magazine

www.Toyotabharat.com

www.Driveinside.com

www.Carwale.com

http://www.google.com/

http://www.toyotabharat.com/

http://www.driveinside.com/

http://www.carwale.com/

THANK YOU 52AMITY GLOBAL BUSINESS SCHOOL CHANDIGARH

24337762 Marketing Mix of Toyota India

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