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SUMMER TRAINING PROJECT REPORT

TOYOTA KIRLOSKAR MOTOR LIMITED

MARKETING STRATEGIES

TRAINING SUPERVISOR SUBMITTED BY


MANISH GARG SHWETANK SHARMA
MARKETING MANAGER ENROLLMENT NO: 0892061709

SESSION: 2007-2010

TRINITY INSTITUTE OF PROFESSIONAL STUDIES, DWARKA,


DELHI (AFFILIATED FROM
GURU GOBIND SINGH INDRAPRASTHA
UNIVERSITY, NEW DELHI.)

PREFACE

As a part of course curriculum of Bachelor of business administration we were asked to


undergo 6 weeks summer training in any organisation so as to give us exposure to practical
management to get us familiar with various activities taking place in the organisation.

I have put my sincere efforts to accomplish my objectives within the stipulated time. Despite
all limitations, obstructs, hurdles and hindrances, I have toiled and worked to my optimum
potential to achieve desired goals. Being neophytes in the highly competitive world of
business. I came across some difficulties to make my objective a reality. Anyhow with the
kind of help and genuine interest and the guidance of my supervisor. I am presenting this
hand carved effort. I tried my level best to conduct a research to gain a thorough knowledge
about the project on topic, “Study of marketing strategies of Toyota”. I put the best of my
efforts and have also tried to be justice with available. If anywhere something is found
unacceptable or unnecessary to the theme; you are welcomed with your valuable suggestions.

Thanks and regards

Yours sincerely
Shwetank Sharma
ACKNOWLEDGEMENT

I would like to thank Toyota Motors Corporation, for constant guidance to


conduct the present arduous project and untiring cooperation which they
extended to me throughout the duration of my summer training.

Getting a project ready requires the work and effort of many people. I would
like all those who have contributed in completing this project. First of all, I
would like to send my sincere thanks to MR. MANISH GARG for his helpful
hand in the completion of my project.

I would like to take an opportunity to thank all the people who helped me in
collecting necessary information and making of the report. I am grateful to all of
them for their time, energy and wisdom.

(SHWETANK SHARMA)
CONTENTS

Chapter 1 – Introduction 1
1.1. Overview of Industry as a whole
1.2. Profile of the Organization
1.3. Growth of the Organization
1.4. S.W.O.T Analysis of the Organization
1.5. Competition Information

Chapter 2 - Objective & Methodology


41
2.1. Significance
2.2. Managerial usefulness of the study
2.3. Objectives
2.4. Scope of the study
2.5. Methodology

Chapter 3 – Conceptual Discussion (Theoretical


47
Backdrop & Literature Review) -

Chapter 4 - Data Analysis 55

Chapter 5 - Findings and Recommendations 66

ANNEXURES: Include the following details in this section 68


BIBLIOGRAPHY 71

CHAPTER 1 - INTRODUCTION

1.1. OVERVIEW - INDIAN AUTOMOBILE INDUSTRY


Over a period of more than two decades the Indian Automobile industry has been driving
its own growth through phases. The entry of Suzuki Corporation in Indian passenger car
manufacturing is often pointed as the first sign of India turning to a market economy.
Since then the automobile sector witnessed rapid growth year after year. By late-90's the
industry reached self reliance in engine and component manufacturing from the status of
large scale importer.

With comparatively higher rate of economic growth rate index against that of great global
powers, India has become a hub of domestic and exports business. The automobile sector
has been contributing its share to the shining economic performance of India in the recent
years.

With the Indian middle class earning higher per capita income, more people are ready to own
private vehicles including cars and two-wheelers. Product movements and manned services
have boosted in the sales of medium and sized commercial vehicles for passenger and goods
transport. Side by side with fresh vehicle sales growth, the automotive components sector has
witnessed big growth. The domestic auto components consumption has crossed rupees 9000
crores and an export of one half size of this figure
Overview Of Automobile Industry
The Indian automobile industry is going through a technological change where each firm is
engaged in changing its processes and technologies to sustain the competitive advantage
and provide customers with the optimized products and services. Starting from the two
wheelers, trucks, and tractors to the multi utility vehicles, commercial vehicles and the
luxury vehicles, the Indian automobile industry has achieved tremendous amount of
success in the recent years.

As per Society of Indian Automobile Manufacturers (SIAM) the market share of each
segment of the industry is as follows:.

The market shares of the segments of the automobile industry

The automobile industry had a growth of 15.4 % during April-January 2007, with the average
annual growth of 10-15% over the last decade or so. With the incremental investment of $35-
40 billion, the growth is expected to double in the next 10 years.

Consistent growth and dedication have made the Indian automobile industry the second-
largest tractor and two-wheeler manufacturer in the world. It is also the fifth-largest
commercial vehicle manufacturer in the world. The Indian automobile market is among the
largest in Asia.
The key players like Hindustan Motors, Maruti Udyog, Fiat India Private Ltd, Tata Motors,
Bajaj Motors, Hero Motors, Ashok Leyland, Mahindra & Mahindra have been dominating
the vehicle industry. A few of the foreign players like Toyota Kirloskar Motor Ltd., Skoda
India Private Ltd., Honda Siel Cars India Ltd. have also entered the market and have catered
to the customers’ needs to a large extent.

Not only the Indian companies but also the international car manufacturing companies are
focusing on compact cars to be delivered in the Indian market at a much smaller price.
Moreover, the automobile companies are coming up with financial schemes such as easy EMI
repayment systems to boost sales.

There have been exhibitions like Auto-expo at Pragati Maidan, New Delhi to share the
technological advancements. Besides, there are many new projects coming up in the
automobile industry leading to the growth of the sector.

The Government of India has liberalized the foreign exchange and equity regulations and has
also reduced the tariff on imports, contributing significantly to the growth of the sector.
Having firmly established its presence in the domestic markets, the Indian automobile sector
is now penetrating the international arena. Vehicle exports from India are at their highest
levels. The leaders of the Indian automobile sector, such as Tata Motors, Maruti and
Mahindra and Mahindra are leading the exports to Europe, Middle East and African and
Asian markets.

The Ministry of Heavy Industries has released the Automotive Plan 2006-2016, with the
motive of making India the most popular manufacturing hub for automobiles and its
components in Asia. The plan focuses on the removal of all the bottlenecks that are inhibiting
its growth in the domestic as well as international arena.
Top Ten Players in Indian Automobile Sector

The domestic players as well as the foreign players dominate the Indian automobile sector.
The key players contributing to the growth of the sector are discussed below.

Top Ten Players in Indian Automobile Sector

• Maruti Suzuki India


• Hero Motors Limited
• Tata Group
• Bajaj Auto Limited
• Mahindra Group
• Ashok Leyland
• Yamaha Motor India
• Hyundai Motors India Limited
• Toyota Kirloskar Motor Private Limited

• Honda Siel Cars India Limited


1.2. COMPANY PROFILE

The story of Toyota Motor Corporation began in September 1933 when Toyota

Automatic Loom created a new division devoted to the production of automobiles under

the direction of the founder's son, Kiichiro Toyota. Soon thereafter, the division produced

its first Type A Engine in 1934, which was used in the first Model A1 passenger car in May
1935 and the G1 truck in August 1935. Production of the Model AA passenger car started in
1936.

Although the Toyota Group is most well known today for its cars, it is still in the textile
business and still makes automatic looms (fully computerized, of course), and electric sewing
machines which are available worldwide.

Toyota Motor Co. was established as an independent company in 1937. Although the
founding family name is Toyoda, the company name was changed to:

 Signify the separation of the founders' work life from home life;

 Simplify the pronunciation, and

 Give the company an auspicious beginning. Toyota is considered luckier than Toyoda
in Japan, where eight is regarded as a lucky number, and eight is the number of
strokes it takes to write Toyota in Katakana.

During the Pacific War the company was dedicated to truck production for the Imperial
Army. Because of severe shortages in Japan, military trucks were kept as simple as possible.
For example, the trucks had only one headlight on the center of the hood.
Commercial passenger car production started in 1947 with the model SA. In 1950 a separate
sales company Toyota Motor Sales Co. was established (which lasted until July 1982). In
April 1956 the Toyota dealer chain was established.

Replica of the Toyota Model AA, the first production model of Toyota in 1936
HEADQUARTERS: TOYOTA CITY, JAPAN

ASSEMBLY PLANTS OVER THE WORLD

Toyota has factories all over the world, manufacturing or assembling vehicles for local
markets, including its most popular model, the Corolla. Toyota has manufacturing or
assembly plants in the United States, Australia, Canada, Indonesia, Poland, South Africa,
Turkey, the United Kingdom, France, Brazil, and more recently India, Argentina and Czech
Republic. Toyota also builds and sells cars in China in a joint venture with Tianjin Xiali.
Toyota New Zealand assembled vehicles until 1998, when it switched to importing cars from
Japan and Australia. Cars from these plants are often exported to other countries.
Toyota Car Model:

Innova

Camry

Avalon

Matrix
Corolla

Prius

TRUCKS:

Tacoma

Tundra

SPORTS UTILITY VEHICLES( SUVs):

4runner
Land cruiser

OVERVIEW

In 2006, Toyota was engaged in a variety of projects designed to solidify its foundations while
continuing to grow.

On the product front, Lexus launched its new flagship model, the LS, and the new global Camry went
on sale. In Japan, a new Corolla range was introduced, emphasizing the importance of this best-
selling car.

In manufacturing, several new projects were started around the world. In May, manufacture of the
Camry began in Guangzhou, China, while in the United States, the Kentucky plant, which in
October celebrated 20 years of production, started manufacturing the first Toyota hybrid vehicle to be
made in North America, the Camry Hybrid. In November, the Texas plant began producing the new
Tundra truck, a key vehicle in Toyota’s North American lineup. In Japan, Toyota Motor Kyushu, Inc.
began full-scale operations at its engine factory, while Toyota Motor Tohoku Co., Ltd. increased its
manufacturing capacity.

In human resources development, following the establishment of the Asia Pacific Global Production
Center in Thailand in August 2005, Toyota established the North American Production Center in the
U.S. in February, and the European Global Production Center in the United Kingdom in March.
Established as branches of the Global Production Center in Japan, these were created to spread
Toyota’s manufacturing knowledge and skills throughout the world in pace with the rapid growth of
Toyota’s overseas manufacturing. The centers educate trainers for local manufacturing plants in all
regions, with trainees passing on what they learn to team members on their return to their plants.

In R&D, Toyota focused its efforts on three key areas: environment, safety and energy. It made a
special effort in the area of the environment by expanding its lineup of hybrid vehicles, and has
worked on R&D relating to plug-in hybrid. In addition, as part of Toyota’s efforts to respond to the
diversification of energy, in 2007 Toyota introduced a flex fuel vehicle* in the Brazilian market that will
run on 100% bio-ethanol fuel. From this point on, based on the philosophy of providing “the right car,
in the right place, at the right time,” and in accordance with the infrastructure and customer needs of
each region, Toyota will continue to promote efforts to develop environmentally friendly technology
and vehicles.

CORPORATE DATA

Company Name Toyota Motor Corporation

Established August 28, 1937

Tokyo Head Office 1-4-18 Koraku, Bunkyo-ku, Tokyo 112-8701, Japan


Phone: (03)3817-7111

Nagoya Office 4-7-1 Meieki, Nakamura-ku, Nagoya City, Aichi Prefecture 450-
8711, Japan
Phone: (052)552-2111

Head Office Toyota-Cho, Toyota City , Aichi Prefecture 471-8571 ,


Japan
Phone : (03)3817-7111

Since its foundation, Toyota has conducted business with “contributing to the development of a prosperous
society through the manufacture of automobiles” as a guiding principle. When I became president two years ago,
I called on all employees to work with me in returning to our origins and asking earnestly whether Toyota is truly
contributing to society and whether we are doing everything we should be doing. On the occasion of Toyota’s
70th anniversary, we will reinforce our measures designed to return to our core principle, which is to "repay the
earth and society through technological innovation (and contribute to enhancing the quality of life everywhere.
GUIDING PRINCIPLES

 Honor the language and spirit of the law of every nation and undertake open and fair corporate activities to be
a good corporate citizen of the world.
 Respect the culture and customs of every nation and contribute to economic and social development through
corporate activities in the communities.
 Dedicate ourselves to providing clean and safe products and to enhancing the quality of life everywhere
through all our activities.
 Create and develop advanced technologies and provide outstanding products and services that fulfill the needs
of customers worldwide.
 Foster a corporate culture that enhances individual creativity and teamwork value, while honoring mutual trust
and respect between labor and management.
 Pursue growth in harmony with the global community through innovative management.
 Work with business partners in research and creation to achieve stable, long-term growth and mutual benefits,
while keeping ourselves open to new partnerships.

PERCEPTS

 Be contributive to the development and welfare of the country by working together, regardless
of position, in faithfully fulfilling your duties.

 Be at the vanguard of the times through endless creativity, inquisitiveness and pursuit of
improvement.

 Be practical and avoid frivolity.


 Be kind and generous; strive to create a warm, homelike atmosphere.

Be reverent, and show gratitude for things great and small in thought and deed

MANAGERIAL INFORMATION

1. Executives

1) Board of Directors (26 people)


Name Title

Fujio Cho* Chairman

Katsuhiro Nakagawa Vice Chairman


Katsuaki Watanabe President

Tokuichi Uranishi Executive Vice President

Kazuo Okamoto Executive Vice President

Kyoji Sasazu Executive Vice President

Mitsuo Kinoshita Executive Vice President

Yoshimi Inaba Executive Vice President

Takeshi Uchiyamada Executive Vice President

Masatami Takimoto Executive Vice President

Akio Toyoda Executive Vice President

Tetsuo Hattori Senior Managing Director

Yukitoshi Funo Senior Managing Director

Takeshi Suzuki Senior Managing Director

Atsushi Niimi Senior Managing Director

Hajime Wakayama Senior Managing Director

Hiroshi Takada Senior Managing Director

Teiji Tachibana Senior Managing Director

Shinichi Sasaki Senior Managing Director

Shin Kanada Senior Managing Director

Akira Okabe Senior Managing Director

Yoshio Shirai Senior Managing Director

Yoichiro Ichimaru Senior Managing Director

Shoji Ikawa Senior Managing Director

Shoichiro Toyoda Honorary Chairman


Senior Advisor, Member of the
Hiroshi Okuda**
Board
*Promoted, **Changed

2) Corporate Auditors (7 people)


Name Title

Hideaki Miyahara Corporate Auditor

Chiaki Yamaguchi Corporate Auditor

Masaki Nakatsugawa* Corporate Auditor

Yasutaka Okamura Corporate Auditor (external)

Yoichi Kaya Corporate Auditor (external)

Yoichi Morishita* Corporate Auditor (external)

Akishige Okada* Corporate Auditor (external)


*Newly appointed

3) Managing Officers (49 people)


Name Title

Koichi Ina Managing Officer

Yoshikazu Amano Managing Officer

Takeshi Yoshida Managing Officer

Shinzo Kobuki Managing Officer

Akira Sasaki Managing Officer

Hiroshi Kawakami Managing Officer

Iwao Nihashi Managing Officer


Tadashi Arashima Managing Officer

Masamoto Maekawa Managing Officer

Mamoru Furuhashi Managing Officer

Satoshi Ozawa Managing Officer

Seiichi Sudo Managing Officer

Yasuhiko Ichihashi Managing Officer

Tadashi Yamashina Managing Officer

Takashi Hata Managing Officer

James E. Press Managing Officer

Gary L. Convis Managing Officer

Wahei Hirai Managing Officer

Tatehito Ueda Managing Officer

Takashi Shigematsu Managing Officer

Yuzo Ushiyama Managing Officer

Yasumori Ihara Managing Officer

Takahiko Ijichi Managing Officer

Toshio Furutani Managing Officer

Tetsuo Agata Managing Officer

Senta Morioka Managing Officer

Hironobu Inoue Managing Officer

Kazuhiko Takarada Managing Officer

Masayuki Nakai Managing Officer

Toshiki Hayama Managing Officer


Takahiro Iwase Managing Officer

Akihito Tsuji Managing Officer

Yoshihiko Masuda Managing Officer

Nobuo Kobayashi Managing Officer

Yoshimasa Ishii Managing Officer

Tatsuya Kaneko Managing Officer

Takeshi Shirane Managing Officer

Masanao Tomozoe Managing Officer

Katsunori Itasaka Managing Officer

Tokuyuki Takahashi Managing Officer

Real (Ray) Tanguay Managing Officer

Ryoichi Sasaki* Managing Officer

Seiho Kawakami* Managing Officer

Yasuhiro Yokoi* Managing Officer

Takahiro Fujioka* Managing Officer

Masanobu Kawase* Managing Officer

Yukio Nishikawa* Managing Officer

Hirofumi Muta* Managing Officer

Thierry Dombreval* Managing Officer


*Newly appointed

As a result of the above changes, TMC now has, 1 chairman, 1 vice chairman, 1
president, 8 executive vice presidents, 13 senior managing directors, 1 honorary
chairman, 1 senior advisor, member of the board, 7 auditors and 49 managing
officers, for a total of 82 executives.

2. Retiring Corporate Auditors and Managing Officers (10 people)


Yoshiro Hayashi (Appointed as Advisor)

Hiroshi Okabe (Appointed as Advisor)

Tadashi Ishikawa (Appointed as Advisor)

Hitoshi Nishiyama (Appointed as Advisor)

Alan J. Jones –

Yoshikatsu Tanaka (Appointed as Advisor)

Nobuyoshi Hisada (Appointed as Advisor)

Mitsuhisa Kato (Appointed as Advisor)

John H. Conomos –

Takis J. Athanasopoulos –

3. Executives' Areas of Responsibility and Titles

1) Executive Vice Presidents and Senior Managing Directors


Name New Former

Tokuichi Executive Vice President Executive Vice President


Uranishi -Global Planning Operations -Overseas
-Overseas (Overseas Planning Americas,
(Americas, Europe & Africa, Asia, Europe & Africa, Asia, Oceania &
Oceania & Middle East) Middle East)
-The Americas Operations Group -Europe & Africa Operations
(Chief Officer) Group
-Europe & Africa Operations (Chief Officer)
Group
(Chief Officer)

Kazuo Executive Vice President Executive Vice President


Okamoto -Research & Development -Research & Development
(R & D Management, Technical (R & D Management, Technical
Administration, Design, Product Administration, Design, Product
Development, Vehicle Development, Vehicle
Engineering, Motor Sports) Engineering, Motor Sports)
-Technical Administration Group -Design Group (Chief Officer)
(Chief Officer)
-Design Group (Chief Officer)
-Motorsport Business
Management Dept.
-Motor Sports Div.

Kyoji Executive Vice President Executive Vice President


Sasazu -Global Planning Operations -Domestic Sales Operations
-Japan Sales Operations

Mitsuo Executive Vice President Executive Vice President


Kinoshita -Corporate Planning -Corporate Planning
-General Administration & Human -General Administration & Human
Resources Resources
-Accounting -Finance & Accounting
-Information Systems -Information Systems
-Business Development -Business Development
-Government & Public Affairs -Government & Public Affairs
-Housing -Housing
-General Administration & Human -Global Audit Div.
Resources Group (Chief Officer) -Corporate Planning Div.
-Global Audit Div. -Research Div.
-Corporate Planning Div.

Yoshimi Executive Vice President Executive Vice President


Inaba -Overseas (China) -Overseas (China)
-Customer Service -Customer Service
-China Operations Group (Chief -China Operations Group (Chief
Officer) Officer)
-China Office

Takeshi Executive Vice President Executive Vice President


Uchiyamada -Production -Production
-TQM -TQM
-Environmental Affairs -Environmental Affairs

Masatami Executive Vice President Executive Vice President


Takimoto -Quality -Quality Control
-Research & Development -Research & Development
(Power Train, Future Project) (Power Train, Future Project)
-Fuel Cell System Development -Fuel Cell System Development
-Power Train Development Group -Power Train Development Group
(Chief Officer) (Chief Officer)
-Fuel Cell System Development -Fuel Cell System Development
Group Group
(Chief Officer) (Chief Officer)
-Future Project Div.

Akio Executive Vice President Executive Vice President


Toyoda -Product Management -Product Management
-IT & ITS -IT & ITS
-Purchasing -Purchasing
-Quality -IT & ITS Group (Chief Officer)
-IT & ITS Group (Chief Officer) -e-TOYOTA Div.
-e-TOYOTA Div.

Tetsuo Senior Managing Director Senior Managing Director


Hattori -Vehicle Engineering Group (Chief -Quality Group (Chief Officer)
Officer) -Vehicle Engineering Group (Chief
-Environmental Affairs Div. Officer)
-Future Project Div.
-Motor Sports Div.

Yukitoshi Senior Managing Director Senior Managing Director


Funo -Toyota Motor North America, Inc. -The Americas Operations Group
-Toyota Motor Sales, U.S.A., Inc. (Chief Officer)
-Toyota Motor Sales, U.S.A., Inc.

Takeshi Senior Managing Director Senior Managing Director


Suzuki -Business Development Group -Finance & Accounting Group
(Chief Officer) (Chief Officer)
-Accounting Group (Chief Officer) -Information Systems Group
(Chief Officer)

Atsushi Senior Managing Director Senior Managing Director


Niimi -Strategic Production Planning -Production Control & Logistics
Group Group
(Chief Officer) (Chief Officer)
-Manufacturing Group (Chief -Manufacturing Group (Chief
Officer) Officer)
-TQM Promotion Div. -TQM Promotion Div.

Hajime Senior Managing Director Senior Managing Director


Wakayama -Purchasing Group (Chief Officer) -Business Development Group
(Chief Officer)
-Purchasing Group (Chief Officer)

Hiroshi Senior Managing Director Senior Managing Director


Takada -Global Planning Operations -Overseas Planning Operations
Group Group
(Chief Officer) (Chief Officer)
-Product Management Div. -Product Management Div.

Teiji Senior Managing Director Senior Managing Director


Tachibana -Government & Public Affairs -General Administration & Human
Group Resources Group (Chief Officer)
(Chief Officer) -Housing Group (Chief Officer)
-Housing Group (Chief Officer)
-Legal Div.

Shinichi Senior Managing Director Senior Managing Director


Sasaki -Quality Group (Chief Officer) -Toyota Motor Europe NV/SA
-Toyota Motor Engineering &
Manufacturing Europe NV/SA

Shin Senior Managing Director Senior Managing Director


Kanada -Information Systems Group -Government & Public Affairs
(Chief Officer) Group
-Research Div. (Chief Officer)
-Global External Affairs Div.

Akira Senior Managing Director Senior Managing Director


Okabe -Asia, Oceania & Middle East -Asia, Oceania & Middle East
Operations Group(Chief Officer) Operations Group (Chief Officer)
-Taiwan Office

Yoshio Senior Managing Director Senior Managing Director


Shirai -Product Development Group -Technical Administration Group
(Chief Officer) -Product Development Group
-R&D Management Div. -Environmental Affairs Div.
-TOYOTA Development Center 2 -R&D Management Div.
(General Manager)

Yoichiro Senior Managing Director Senior Managing Director


Ichimaru -Japan Sales Operations Group -Domestic Sales Operations
(Chief Officer) Group
-Customer Service Operations (Chief Officer)
Group -Customer Service Operations
(Chief Officer) Group
(Chief Officer)

Shoji Senior Managing Director Senior Managing Director


Ikawa -Production Engineering Group -Production Engineering Group
(Chief Officer) (Chief Officer)
2) Managing Officers (Only those with new responsibilities or those newly
appointed listed)
Name New Former

Koichi -Miyoshi Plant (General Manager) -Takaoka Plant (General Manager)


Ina -Myochi Plant (General Manager) -Tsutsumi Plant (General
-Operations Management Manager)
Consulting Div. -Vehicle Planning & Production
-Global Strategic Production Engineering Div.
Planning Div. -Stamping Production Engineering
-Production Control Div. Div.
-Project Planning & Management -Body Assembly Engineering Div.
Div. -General Assembly Engineering
-Global Production Center Div.
(General Manager)

Akira -China Div. -Toyota Technical Center, China


Sasaki -Toyota Technical Center, China

Iwao -TQM Promotion Div. -Customer Relations Div.


Nihashi -Technical Service Div. -Quality Div.
-Customer Relations Div. -Customer Quality Engineering
-Quality Div. Div.
-Customer Quality Engineering -Fuel Cell Production Engineering
Div. Div.
-Fuel Cell Production Engineering
Div.

Tadashi -Toyota Motor Europe NV/SA -Toyota Motor Europe NV/SA


Arashima -Toyota Motor Europe NV/SA
(TMME Company)

Masamoto -Japan Sales Planning Div. -Domestic Sales Planning Div.


Maekawa -Japan Marketing Div. -Domestic Marketing Div.
-Toyopet channel Operations Div. -Toyopet channel Operations Div.

Satoshi -Secretarial Div. -Corporate Planning Div.


Ozawa -General Administration Div. -Research Div.
-Human Resources Div. -Product Management Div.
-Labor Relations Div.
-Toyota Institute
-Nagoya General Administration
Div.
-Toyota Technical Skills Academy
-Medical Support Div.

Seiichi -Toyota Motor Engineering & -Toyota Motor Manufacturing North


Sudo Manufacturing North America, America, Inc.
Inc**
Yasuhiko -Toyota Motor Engineering & -Toyota Technical Center, U.S.A.,
Ichihashi Manufacturing North America, Inc.
Inc**

Tadashi -Motorsport Business Management -Technical Administration Div.


Yamashina Dept -TOYOTA Development Center 1
-Engineering Data Control & (General Manager and Executive
Management Div. Chief Engineer)
-Motor Sports Div. -Engineering Data Control &
-Technical Administration Div. Management Div.

Takashi -Corporate Planning Div. -Affiliated Companies Finance


Hata -Research Div. Division
-Product Management Div. -Accounting Division
-LEXUS Product & Marketing -Finance Division
Planning Div.

James -Toyota Motor North America, Inc. -Toyota Motor Sales, U.S.A., Inc
E. Press -Toyota Motor North America, Inc.

Gary -Toyota Motor Engineering & -Toyota Motor Manufacturing North


L. Convis Manufacturing North America, America, Inc.
Inc**

Tatehito -Future Project Div. -Environmental Affairs Div.


Ueda -Intellectual Property Div. -Future Project Div.
-Higashifuji Technical -Intellectual Property Div.
Administration Div. -Higashifuji Technical
-Power Train Engineering Div. 2 Administration Div.
-Power Train Management -Power Train Engineering Div. 2
Engineering Div. -Power Train Management
Engineering Div.

Yasumori -Environmental Affairs Div. -e-TOYOTA Div.


Ihara -Service Parts Administration Div. -Business Development Div.
-Logistics Planning Div. -Marine Business Div.
-Production Parts Logistics Div. -Biotechnology & Afforestation
-Vehicle Logistics Div. Business Div. (General Manager)
-Service Parts Logistics Div. -IT & ITS Planning Div.
-IT & ITS Sales Div.

Takahiko -Affiliated Companies Finance Div. -Secretarial Division


Ijichi -Accounting Div. -General Administration Div.
-Cost KAIZEN Div. -Human Resources Div.
-Labor Relations Div.
-Toyota Institute
-Nagoya General Administration
Div.
-Toyota Technical Skills Academy
-Medical Support Division
Toshio -Motorsport Business Management -Overseas Planning Div.
Furutani Dept. -Overseas Marketing Div.
-Global Planning Div.
-Global Marketing Div.

Tetsuo -Toyota Motor Europe NV/SA -Honsha Plant (General Manager)


Agata (R&D/Manufacturing Company) -Environmental Affairs Div.
-Global Strategic Production
Planning Div.
-Production Control Div.
-Project Planning & Management
Div.
-Service Parts Administration Div.

Kazuhiko -Motomachi Plant (General -Global Production Center


Takarada Manager) (General Manager)
-Kinuura Plant (General Manager) -Motomachi Plant (General
Manager)

Masayuki -Motorsport Business Management -Environmental Affairs Div.


Nakai Dept. -Corporate Citizenship Div.
-Corporate Citizenship Div. -Global External Affairs Div.
-Global External Affairs Div. -Public Affairs Div.
-Public Affairs Div. -Government & Industrial Affairs
-Government & Industrial Affairs Div.
Div. -Corporate Public Relations Div.
-Corporate Public Relations Div.

Toshiki -Production Engineering Planning -Production Engineering Planning


Hayama Div. Div.
-Production Engineering -Production Engineering
Development Div. Development Div.
-Partner Robot Development Div. -Partner Robot Development Div.
-Instrumentation Engineering Div. -Instrumentation Engineering Div.
-Production & Logistics Systems -Fundamental Production
Engineering Div. Engineering Div.
-Fundamental Production -Power Train Prototype
Engineering Div. Engineering Div.
-Power Train & Chassis Prototype -Engine Production Engineering
Production & Engineering Div. Div.
-Engine Production Engineering -Drive Train Engineering Div.
Div. -Chassis Production Engineering
-Drive Train Engineering Div. Div.
-Chassis Production Engineering -HV Power Train Production
Div. Engineering Div.
-HV Power Train Production
Engineering Div.
-Teiho Plant (General Manager)
-Teiho Plant Machinery & Die
Engineering Administration Div.
-Mechatronics Systems Div.
-Stamping Die & Tool Div.
-Die & Mold Div.

Takahiro -Kamigo Plant (General Manager) -Kamigo Plant (General Manager)


Iwase -Shimoyama Plant (General -Shimoyama Plant (General
Manager) Manager)
-Tahara Plant (General Manager)

Katsunori -Dealer Human Resources -Dealer Human Resources


Itasaka Development Div. Development Div.
-Japan Fleet Sales & Conversion -Toyota channel Operations Div.
Vehicle Div.
-Toyota channel Operations Div.

Real -Toyota Motor Engineering & -Toyota Motor Manufacturing North


C. Tanguay Manufacturing North America, America, Inc.
Inc* -Toyota Motor Manufacturing
Canada, Inc.

Ryoichi -Asia, Oceania & Middle East -Toyota Motor Thailand Co., Ltd.
Sasaki* Project Div.
-Toyota Motor Asia Pacific PTE Ltd
(Singapore)
-Toyota Motor Asia Pacific Co., Ltd
(Thailand)
-Toyota Motor Thailand Co., Ltd

Seiho -TOYOTA Development Center 2 -General Manager, Chassis


Kawakami* (Deputy General Manager) Engineering Div. 2

Yasuhiko -Used Car Business Div. -General Manager, LEXUS


Yokoi* -LEXUS Domestic Sales & Domestic Sales & Marketing Div.
Marketing Div.

Takahiro -Takaoka Plant (General Manager) -Senior Executive Director, Toyota


Fujioka* -Tsutsumi Plant (General Motor Manufacturing (UK) Ltd.
Manager)

Masanobu -TOYOTA Development Center 1 -Project General Manager,


Kawase* (General Manager) Technical Administration Div.

Yukio -e-TOYOTA Div. -Project General Manager, Tokyo


Nishikawa* -Business Development Div. Secretarial Div.
-Marine Business Div.
-Biotechnology & Afforestation
Business Div.
-IT & ITS Planning Div.
-IT & ITS Sales Div.

Hirofumi -Honsha Plant (General Manager) -General Manager, Production


Muta* -Vehicle Planning & Production Engineering Planning Div.
Engineering Div.
-Stamping Production Engineering
Div.
-Body Assembly Engineering Div.
-General Assembly Engineering
Div.
-Hirose Plant (General Manager)
-Hirose Plant Electronic
Components Engineering Div.
-Hirose Plant Electronic
Components Manufacturing Div.

Thierry -Toyota Motor Europe NV/SA -Toyota Motor Europe NV/SA


Dombreval* (TMME Company) (TMME Company)

* Newly appointed
**On April 1, 2006, Toyota Motor Engineering and Manufacturing North America, Inc.
was established by integrating the functions of Toyota Technical Center, U.S.A., Inc.
and Toyota Motor Manufacturing North America, Inc.

4. Organizational Changes

1) Domestic Sales Operations Group and Overseas Planning Operations Group


- The Domestic Sales Operations Group and the Overseas Planning Operations Group
have been reorganized.
- Sales and planning functions, which were divided by region, i.e. domestic and
overseas, have been integrated.

Purpose
As a global business management function of Toyota's global headquarters, to allow
close coordination between TMC and various regions, including Japan, and to
implement the "most-suitable growth strategy from a global perspective" though
product, price and supply-and-demand strategies

2) Government & Public Affairs Group / General Administration & Human Resources
Group
- The transfer of some divisions/departments of the General Administration & Human
Resources Group to the Government & Public Affairs Group, have taken place as
follows:

After Changes Before Changes


Government & Public Affairs Group General Administration & Human
Resources Group
- Public Affairs Administration
- Public Affairs Administration Dept. (transfer)
Dept.
- Tokyo Secretarial Div. (transfer) - Tokyo Secretarial Div.
- Tokyo General Administration Div. - Tokyo General Administration
(transfer) Div.

Purpose
To optimize the structural organization and distribution of human resources by
consolidating the divisions and departments relevant to government & public affairs

3) Production Control & Logistics Group


- The name of the Production Control & Logistics Group has changed.

After Change Before Change


Strategic Production Planning
Production Control & Logistics
Group
Group
(name changed)

Purpose
To create a name that reflects a strengthened stance toward planning that considers
the actual situation of global production activities

4) Housing Group (Housing Company)


- The name of the Housing Group (Housing Company) has changed.

After Change Before Change


Housing Group (name changed) Housing Group (Housing Company)

Purpose
To reflect the achievement of the original objective to reinforce operational structures
through the introduction of the "company" system

5) Divisions/departments not belonging to a group; Asia, Oceania & Middle East


Operations Group; China Operations Group
- The transfer of some divisions/departments to relevant groups.
After Changes Before Changes
Asia, Oceania & Middle East Operations Divisions/departments not
Group belonging to a Group
- Taiwan Office (transfer) - Taiwan Office
China Operations Group
- China Office (transfer) - China Office

Purpose
To clarify the chain of command and to optimize the structural organization and
distribution of human resources
As a result of the above changes, the number of divisions has increased from 228 to
229.

GROWTH

Lasting growth for Toyota will depend on aligning our interests with the larger interests of
customers and the community. We must be a company where people think seriously about
the role and responsibility of their company in the world.

Our economic and industrial contribution in each region grows, for example, as we globalize
our operations. Another way to align our interests with the larger interests of the community
is through technology.

By the end of 1997, we will introduce the world's first new-energy transport that is
commercially competitive with conventional automobiles. That is when we will put a hybrid-
electric passenger car onto the market in Japan. Our hybrid-electric car will have a gasoline
engine to generate electricity or provide supplementary power to the wheels. It is twice as
fuel-efficient as conventionally powered vehicles of comparable size and performance.
Equally important, the value of its potential fuel savings could prove greater than its cost
premium over conventional vehicles. So, it actually could save money for car owners.

Survival and growth in our industry will hinge on developing technologies for reducing
environmental impact of our products and operations, as well as improving vehicular safety.
Photos and text on the following pages introduce some of the technologies we are developing
to position Toyota as an environmental leader.

SPRIORITIES OF TOYOTA IN GROWTH STRATEGY

 Fortifying our product line


 Asserting a competitive edge in technology
 Accelerating globalization
 Reclaiming market share in Japan
 Cultivating demand in new business sectors

Measures for asserting a competitive edge in technology have centered on environmental


themes. We have introduced or demonstrated new power train technologies in the past year
that will make Toyotas run cleaner and greener than ever. Those technologies include...

 A direct-injection system that makes gasoline engines more efficient


 Hybrid-electric systems that double fuel efficiency and reduce noxious
emissions
 Pure electric, "zero emission" vehicles that alleviate urban pollution
 Fuel-cell systems that could transform the automobile in the 21st century.

MARKET SHARE OF TOYOTA


Toyota Motor Corp. grabbed more U.S. retail market share than Ford Motor Co. in early
November and it was less than one share point behind General Motors Corp.,
Toyota, Japan's largest automaker, had a 15.4 percent U.S. retail market share a year earlier.
Toyota plans to enter small car segment in India
World’s second largest automaker wants to get offensive in the Indian domestic auto market.
Toyota is very much interested in launching a small car here in the segment currently
dominated by Maruti Suzuki and Hyundai. Tata also has a decent presence in the market with
their Indica range of diesel vehicles.
Toyota is at the moment carrying out a feasibility study for launching such a vehicle in the
domestic market where it has models like the Innova and Camry amongst others. They have
had an incredible success with their stopped Qualis model and are selling Toyota Innova in
large numbers. T Ino, director (marketing), Toyota Kirloskar Motor Pvt Limited has
expressed that the Indian auto market is a huge one and has the capacity to involve more
players in the small car segment.
Toyota has a variety of interesting models in its global lineup, which it can consider to launch
in the Indian market. Some of these are Vios, Platz, and Passo. The company also expects to
break even here in India this year with all the accumulated losses were expected to be wiped
out during 2005. They also plan to invest around Rs 130 crores during the current year to
enhance efficiency.

PRODUCTS (GLOBAL):

1. AVALON
2. CAMRY
3. CAMRY SALORA
4. COROLLA ALTIS
5. MATRIX
6. PRIUS
7. 4RUNNER
8. HIGH RUNNER
9. LAND CRUISER
10.SEQUOIA
11.SIENNA

PRICE:-

As far as pricing strategy of Toyota is concerned. They are focusing on the very segment of
the market not only particular segment. Basically they are focusing on official and business
class people

CAR MODELS EX- SHOWROOM (MUMBAI)

(INDIA) AMOUNT IN INR.

INNOVA 8,01,738

COROLLA ALTIS 11,31,900

CAMRY 22,84,800

PRADO 42,27,300
Table 1.1

FUTURE PLANS

India's car population may be growing but the growth is mainly concentrated in the small car
sector, and not without reason. With increasing interest rates making buying cars costlier and
the government slapping new duties on larger vehicles in addition to the existing favorable
tax regime for smaller cars, even premium players are wading into the small-car scene.

Indian passenger car sales rose by 11.79 per cent between April 2007 and March 2008 to 1.2
million units. Competition in the small car segment is set to increase in 2009, with planned
launches by Maruti Suzuki (A-Star and Splash), Honda (Jazz) and as yet unnamed models
from Ford, GM and Volkswagen.

Japanese carmaker Toyota, all set to surpass General Motors as the world's largest, is the
latest entrant when it made its intentions clear on the occasion of the laying of the foundation
stone for its second factory in India.
The decade-old Indian joint venture of the Japanese automaker, Toyota Kirloskar, is building
its second plant at Bidadi, about 40 kilometers from India's IT hub of Bangalore, with an
upfront investment of Rs14,000 crore ($329 million) to manufacture a range of passenger
cars and multi-utility vehicles. Toyota is the majority partner with an 89-per cent stake with
Kirloskar owning the rest.

Karnataka chief minister B S Yeddyurappa unveiled the foundation stone for the new plant
that will have a test track and additional space for suppliers and other vendors. The ceremony
was attended by Toyota senior managing director Akira Okabe, chairman Ryoichi Sasaki,
vice-chairman Vikram Kirloskar and managing director Hiroshi Nakagawa.

The modular plant, to be commissioned by 2010, will have an installed capacity of 100,000
units annually and will employ about 2,400 people. Top officials confirmed that the company
will soon be introducing its newly designed compact car in the Indian market.

The factory will be ready by mid-2010 and we are yet to finalize the launch date of the new
car. We have basic concept of the new car ready and very shortly we will finalize the design
of the car.''

The plant which is being set up will see an initial investment of Rs1400 crore. But this initial
investment won't include certain other costs like installing robots and other automation
equipment.

The arrangement of this additional amount required for the plant would be worked out later.
A new test track will be included in the second plant, which is expected to be spread over 130
acres of land.

Though the new compact car has been designed for the Indian market, the initial design
features indicate that it can be exported to other markets in Asia. Daihatsu, Toyota's group
company, will not be involved in designing the compact new car, though it may be included
in future plans.

However, Tata Motors and Bajaj Auto can rest easy for the time being. Although Okabe
confirmed that the new product will be the cheapest in the Toyota stable, indications are that
it maybe priced higher than its Indian competitors.
Vikram Kirloskar said as much when he commented, ''We are working on the new design.
The model is yet to be finalized. We plan to have petrol as well as diesel versions. The small
car will not compete with the upcoming Nano of Tata Motors, touted to be the world's
cheapest car.''
GENERIC STRATEGIES

Generic strategies were used initially in the early 1980s, and seem to be even more popular
today. They outline the three main strategic options open to organization that wish to achieve
a sustainable competitive advantage. Each of the three options are considered within the
context of two aspects of the competitive environment:

Sources of competitive advantage - are the products differentiated in any way, or are they the
lowest cost producer in an industry? Competitive scope of the market - does the company
target a wide market, or does it focus on a very narrow, niche market?

Figure 1.1

The generic strategies are: 1. Cost leadership, 2. Differentiation, and 3. Focus.

1. Cost Leadership

The low cost leader in any market gains competitive advantage from being able to many to
produce at the lowest cost. Factories are built and maintained; labor is recruited and trained to
deliver the lowest possible costs of production. 'cost advantage' is the focus. Costs are shaved
off every element of the value chain. Products tend to be 'no frills.' However, low cost does
not always lead to low price. Producers could price at competitive parity, exploiting the
benefits of a bigger margin than competitors. Some organization, such as Toyota, are very
good not only at producing high quality autos at a low price, but have the brand and
marketing skills to use a premium pricing policy.

2. Differentiation

Differentiated goods and services satisfy the needs of customers through a sustainable
competitive advantage. This allows companies to desensitize prices and focus on value that
generates a comparatively higher price and a better margin. The benefits of differentiation
require producers to segment markets in order to target goods and services at specific
segments, generating a higher than average price. For example, Toyota differentiates its
product and service. The differentiating organization will incur additional costs in creating
their competitive advantage. These costs must be offset by the increase in revenue generated
by sales. Costs must be recovered. There is also the chance that any differentiation could be
copied by competitors. Therefore there is always an incentive to innovated and continuously
improve.

3. Focus or Niche strategy

The focus strategy is also known as a 'niche' strategy. Where an organization can afford
neither a wide scope cost leadership nor a wide scope differentiation strategy, a niche strategy
could be more suitable. Here an organization focuses effort and resources on a narrow,
defined segment of a market. Competitive advantage is generated specifically for the niche. A
niche strategy is often used by smaller firms. A company could use either a cost focus or a
differentiation focus. With a cost focus a firm aims at being the lowest cost producer in that
niche or segment. With a differentiation focus a firm creates competitive advantage through
differentiation within the niche or segment. There are potentially problems with the niche
approach. Small, specialist niches could disappear in the long term. Cost focus is
unachievable with an industry depending upon economies of scale e.g. telecommunications.
1.4 S.W.O.T ANALYSIS

Strengths

New investment by Toyota in factories in the US and China saw 2005 profits rise, against the
worldwide motor industry trend. Net profits rose 0.8% to 1.17 trillion yen ($11bn; £5.85bn),
while sales were 7.3% higher at 18.55 trillion yen. Commentators argue that this is because
the company has the right mix of products for the markets that it serves. This is an example
of very focused segmentation, targeting and positioning in a number of countries.

In 2003 Toyota knocked its rivals Ford into third spot, to become the World's second largest
carmaker with 6.78 million units. The company is still behind rivals General Motors with
8.59 million units in the same period. Its strong industry position is based upon a number of
factors including a diversified product range, highly targeted marketing and a commitment to
lean manufacturing and quality. The company makes a large range of vehicles for both
private customers and commercial organisations, from the small Yaris to large trucks. The
company uses marketing techniques to identify and satisfy customer needs. Its brand is a
household name. The company also maximizes profit through efficient manufacturing
approaches (e.g. Total Quality Management).
WEAKNESS

Being big has its own problems. The World market for cars is in a condition of over supply
and so car manufacturers need to make sure that it is their models that consumers want.
Toyota markets most of its products in the US and in Japan. Therefore it is exposed to
fluctuating economic and political conditions those markets. Perhaps that is why the company
is beginning to shift its attentions to the emerging Chinese market. Movements in exchange
rates could see the already narrow margins in the car market being reduced.

The company needs to keep producing cars in order to retain its operational efficiency. Car
plants represent a huge investment in expensive fixed costs, as well as the high costs of
training and retaining labour. So if the car market experiences a down turn, the company
could see over capapacity. If on the other hand the car market experiences an upturn, then the
company may miss out on potential sales due to under capacity i.e. it takes time to
accommodate. This is a typical problem with high volume car manufacturing.

OPPURTUNITIES

Lexus and Toyota now have a reputation for manufacturing environmentally friendly
vehicles. Lexus has RX 400h hybrid, and Toyota has it Prius. Both are based upon advance
technologies developed by the organization. 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. Such moves can only firm up Toyota's interest and investment in hybrid R&D.

Toyota is to target the 'urban youth' market. The company has launched its new Aygo, which
is targeted at the streetwise youth market and captures (or attempts to) the nature of dance
and DJ culture in a very competitive segment. The vehicle itself is a unique convertible, with
models extending at their rear! The narrow segment is notorious for it narrow margins and
difficulties for branding.
THREATS

Product recalls are always a problem for vehicle manufacturers. In 2005 the company had to
recall 880,00 sports utility vehicles and pick up trucks due to faulty front suspension systems.
Toyota did not give details of how much the recall would cost. The majority of affected
vehicles were sold in the US, while the rest were sold in Japan, Europe and Australia.

As with any car manufacturer, 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. The company is also exposed to any
movement in the price of raw materials such as rubber, steel and fuel.

1.5 COMPETITVE S.W.O.T ANALYSIS

STRENGTH

In an era when owning a car was a distant dream for a vast majority of Indians, MUL rolled
out its first car, the M800. The company labeled it a people's car, with a 796cc 3-cylinder
engine that delivered 39.5bhp at an affordable price of Rs. 65,000. The first vehicle was
released for sale in December 1983. Initially, the car was criticized for its diminutive size, but
it proved to be spacious enough to carry four adults. Better technology and an affordable
price due to a higher level of indigenization helped MUL achieve a dominant position in the
Indian passenger car market
WEAKNESS

MARUTI SUZUKI’s biggest weakness, is the lack of product design capability. In the
coming years, they should focus on acquiring product design and lean production know-how
(as the Korean firms did in the eighties and early nineties. Also the Research and
developments headquarters for engine development of Maruti Suzuki are in Japan which is a
major weak point. Maruti Suzuki also needs to invest in capacity and research and
development in India to stay abreast of competition.

THREAT

M800 had ruled the passenger car market as the only car in the entry-level segment in the
Indian automobile industry and was now facing the danger of cannibalization from one of its
own family members, Alto For the first few months of 2004, M800 performed well, selling
15,301 units in January, 13,518 units in February and 15,540 in March. But gradually Alto,
another MUL product, began eating into M800's share. Alto reported sales of 8,399 units,
8,324 and 9,011 units in January, February and March respectively. In April, its sales
increased to 9,350 units and in May 2004, Alto took over M800's position as the largest
selling car with sale of 10,373 units, slightly over M800's sales of 10,016 units. Analysts felt
that Alto had taken the top spot because of its price reduction in September 2003 by Rs.
23,000 followed by the launch of the non-AC Alto for Rs. 0.23 mn in the first week of April
2004.
CHAPTER 2 OBJECTIVE AND METHODOLOGY

2.1 SIGNIFICANCE

Toyota's believes in putting the customer first and aims to provide the best levels of customer
satisfaction as its main marketing strategy. Their dealers have also worked hard to provide
their high levels of customer support."

"In the last one year, Toyota has taken many initiatives, which has made Innova the most
successful product. Innova has successfully become a category creator.

We will continue to meet the ever-challenging customer expectations and will come out with
innovative marketing strategies.

With a change of guard at Toyota Kirloskar Motor Ltd., the company has evolved a new
strategy to capture 15 per cent market share in the Indian automotive segment. Effective from
January 1, Atsushi Toyoshima has been appointed Managing Director of the company,
replacing Sachio Yamazaki. "Competition is intense in the Indian market for domestic and
foreign companies. The Indian market is important for Toyota with potential to aid its growth
strategy," Yoshio Ishizaka, Executive Vice-President, Toyota Motor Corporation, said.

According to analysts, the Indian market would touch annual sales of 1.2 million units by
2005. Last year, Toyota sold 3.8 million units overseas, manufacturing six million vehicles at
56 plants in 25 countries. In India, the Toyota Quails notched sales of 25,000 units since its
launch last year, he said. Toyota's strategy to corner a significant chunk of the Indian market
involves "superior product offering and dedicated technology". In this context, the change of
leadership in Toyota's Indian division is important, indicating a more important role for the
company's manufacturing base in Bangalore.

"Bangalore is an ideal location to meet all of Toyota's needs, including auto components,"
Mr. Toyoshima said
According to the managing director of Toyota Kirloskar Motor, Atsushi Toyoshima, the
decision to introduce Innova here (India) was based on three factors. First, over the last five
years, the C- segment (between Rs 5 lakh to Rs 10 lakh) of the car market has grown by 20
per cent every year. The multi utility vehicle segment has also grown at double-digit levels.
Second, with an improving lifestyle and better roads, the Indian consumer wants to take his
vehicle for long drives with friends and family. Third, there is a latent desire of customers,
including those owning MPVs, to seek attributes like greater interior space and overloading
ability, while passenger car buyers look for better styling and improved riding comfort.
Innova brings together the space and fuel economy of an MPV with the style, agility and
power of a sedan. Toyota Kirloskar Motor has described it as the first three-row seating
passenger car in the Indian market

2.2 MANAGERIAL USEFULLNESS

The marketing department can use this study to enhance their marketing strategies for better
sales. This report helps the marketing department in taking decisions to what change in
distribution channels and what should be done so that marketing problem could be sorted out
and how to sell their range of product in the competitive market.

The very essence of every project related to marketing is providing a view to management
for chalk out the organization, so that they can maintain a viable fit between the
organizational objectives, skills and resources and its changing market opportunities. also
give a proper shape to company's target profit and growth. it provides feedback to the
organization about their sales, sales schemes and what impact does it has on the dealers and
consumers. every market research provides useful suggestions to the organization. marketing
research helps the firm in every component of the total marketing task. it helps the firm
acquire a better understanding of the buyer, the competition and the marketing environment.
it also aids the formulation of the marketing mix. product. distribution and pricing needs. it
also helps in taking the information of competitor's strategies and their impact on the buyer.
the study reveals the fact that may have come up during the project and these facts can either
be used a opportunities in exploring and expanding the business as well as can be used as
safeguard against threats by competitors to prepare an effective marketing strategy. Every
market research proves useful to the organization. Marketing research helps the firm in every
component of total marketing task.

2.3 OBJECTIVES OF STUDY

The object of report is not only to focus on competitors but also to get the competitive
position in the national as well as international market through customer satisfaction. These
are as follows.

 To discover and translate the needs and desire of customer into products and services
so as to create the demand of the product (through planning and producing planned
product).
 To serve the customer through channel of distribution.
 To face the keen competition.
 To know about the marketing strategies used by Toyota.
 To know about the marketing strategies of the competitors of Toyota.
 To find out the market share of Toyota.
 To know where Toyota stands as far as the BCG –matrix models concerned.
2.4 SCOPE OF THE STUDY

These are some of the scope of the study :

1. The present study can be extended to access the present marketing condition of Indian
automobile sector.
2. The study can be used to design a proper product, price, place and promotional
strategy for the market.
3. From the present study we can know the market share of different products and
accordingly formulated strategy to enhance it.
4. The result of marketing success can be interpreted to assess the rate of employee
satisfaction in various departments.
5. This study can be applied to find out an effective distribution channel to enhance the
sale of various products of Toyota motors.

2.5 RESEARCH METHODOLOGY

This project depends upon the primary as well as secondary sources which are as follows.

Primary Source:

 Observation
 Experiment
 Talking with consumers,retailers and distributors.

Secondary Source:

 Balance sheet of the company


 Company website
SAMPLE SIZE AND AREAS COVERED

A customer-based survey was conducted in which 100 people were asked to fill the
questionnaire in which 50 people belong to cities of Delhi and GURGAON.

Because it was not possible to consider each and every person of those cities or of villages so,
PROBABILITY SAMPLE or RANDOM SAMPLE was taken.

STATISTICAL AND PRESENTAION TOOLS

PRIMARY DATA is represented:


 First classified i.e. grouped qualitatively and quantitatively according to the situation
or the type of the data which was collected.
 After classifying is represented in the form of tables i.e. systematically arranged in
columns and rows.
 Some of the data is also graphically represented in the form of PIE DIAGRAM.

SECONDARY DATA is represented:


 In the form of tables.
 By the way of BAR GRAPHS and SUBDIVIDED BAR GRAPHS (Graphical
presentation).
2.6 LIMITATIONS OF THE STUDY

Since the road to improvement is never ending, so this study also suffers from certain
limitations. Some of them are as follows:

 Because of illiteracy, it was a time consuming method in which continuous


guidance was required.
 Questionnaire method involves some uncertainty of response. Co-operation on
the part of informants, in some cases, was difficult to presume.
 It is possible that the information supplied by the informants may be incorrect.
So, the study may lack accuracy.
CHAPTER 3 – CONCEPTUAL DISCUSSION

MARKETING

What is marketing?

There are many different definitions of marketing. Consider some of the following alternative
definitions:

“The all-embracing function that links the business with customer needs and wants in order to
get the right product to the right place at the right time”

“The achievement of corporate goals through meeting and exceeding customer needs better
than the competition”

“The management process that identifies, anticipates and supplies customer requirements
efficiently and profitably”

“Marketing may be defined as a set of human activities directed at facilitating and


consummating exchanges”

Which definition is right? In short, they all are. They all try to embody the essence of
marketing:

• Marketing is about meeting the needs and wants of customers;


• Marketing is a business-wide function – it is not something that operates alone from other
business activities;
• Marketing is about understanding customers and finding ways to provide products or
services which customers demand

To help put things into context, you may find it helpful to often refer to the following
diagram which summarises the key elements of marketing and their relationships:
Figure 1.2
MARKETING CONCEPT AND ORIENTATION

It is a fundamental idea of marketing that organisations survive and prosper through meeting
the needs and wants of customers. This important perspective is commonly known as the
marketing concept.

The marketing concept is about matching a company's capabilities with customer wants. This
matching process takes place in what is called the marketing environment.

Businesses do not undertake marketing activities alone. They face threats from competitors,
and changes in the political, economic, social and technological environment. All these
factors have to be taken into account as a business tries to match its capabilities with the
needs and wants of its target customers.

An organisation that adopts the marketing concept accepts the needs of potential customers as
the basis for its operations. Success is dependent on satisfying customer needs.

What are customer needs and wants?

A need is a basic requirement that an individual wishes to satisfy.

People have basic needs for food, shelter, affection, esteem and self-development. Many of
these needs are created from human biology and the nature of social relationships. Customer
needs are, therefore, very broad.

Whilst customer needs are broad, customer wants are usually quite narrow.

A want is a desire for a specific product or service to satisfy the underlying need.

Consider this example:

Consumers need to eat when they are hungry.


What they want to eat and in what kind of environment will vary enormously. For some,
eating at McDonalds satisfies the need to meet hunger. For others a microwaved ready-meal
meets the need. Some consumers are never satisfied unless their food comes served with a
bottle of fine Chardonnay.

Consumer wants are shaped by social and cultural forces, the media and marketing activities
of businesses.

This leads onto another important concept - that of customer demand:

Consumer demand is a want for a specific product supported by an ability and willingness to
pay for it.

For example, many consumers around the globe want a Mercedes. But relatively few are able
and willing to buy one.

Businesses therefore have not only to make products that consumers want, but they also have
to make them affordable to a sufficient number to create profitable demand.

Businesses do not create customer needs or the social status in which customer needs are
influenced. It is not McDonalds that makes people hungry. However, businesses do try to
influence demand by designing products and services that are

• Attractive
• Work well
• Are affordable
• Are available

Businesses also try to communicate the relevant features of their products through advertising
and other marketing promotion.
MARKETING MIX

The marketing mix is generally accepted as the use and specification of the four Ps describing
the strategic position of a product in the marketplace. One version of the origins of the
marketing mix starts in 1948 when James Culliton said that a marketing decision should be a
result of something similar to a recipe. This version continued in 1953 when Neil Borden, in
his American Marketing Association presidential address, took the recipe idea one step
further and coined the term 'Marketing-Mix'. A prominent marketer, E. Jerome McCarthy,
proposed a 4 P classification in 1960, which would see wide popularity. The four Ps concept
is explained in most marketing textbooks and classes.

DEFINITION

Although some marketers[who?] have added other Ps, such as personnel and packaging, the
fundamentals of marketing typically identifies the four Ps of the marketing mix as referring
to:
Product -An object or a service that is mass produced or manufactured on a large scale with a
specific volume of units. A typical example of a mass produced service is the hotel industry.
A less obvious but ubiquitous mass produced service is a computer operating system. Typical
examples of a mass produced objects are the motor car and the disposable razor.
Price – The price is the amount a customer pays for the product. It is determined by a number
of factors including market share, competition, material costs, product identity and the
customer's perceived value of the product. The business may increase or decrease the price of
product if other stores have the same product.
Place – Place represents the location where a product can be purchased. It is often referred to
as the distribution channel. It can include any physical store as well as virtual stores on the
Internet.
Promotion – Promotion represents all of the communications that a marketer may use in the
marketplace. Promotion has four distinct elements - advertising, public relations, word of
mouth and point of sale. A certain amount of crossover occurs when promotion uses the four
principal elements together, which is common in film promotion. Advertising covers any
communication that is paid for, from television and cinema commercials, radio and Internet
adverts through print media and billboards. One of the most notable means of promotion
today is the Promotional Product, as in useful items distributed to targeted audiences with no
obligation attached. This category has grown each year for the past decade while most other
forms have suffered. It is the only form of advertising that targets all five senses and has the
recipient thanking the giver. Public relations are where the communication is not directly paid
for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade
fairs and events. Word of mouth is any apparently informal communication about the product
by ordinary individuals, satisfied customers or people specifically engaged to create word of
mouth momentum. Sales staff often plays an important role in word of mouth and Public
Relations (see Product above).
Broadly defined, optimizing the marketing mix is the primary responsibility of marketing. By
offering the product with the right combination of the four Ps marketers can improve their
results and marketing effectiveness. Making small changes in the marketing mix is typically
considered to be a tactical change. Making large changes in any of the four Ps can be
considered strategic. For example, a large change in the price, say from $19.00 to $39.00
would be considered a strategic change in the position of the product. However a change of
$131 to $130.99 would be considered a tactical change, potentially related to a promotional
offer.
CRITICISMS

Peter Doyle claims that the marketing mix approach leads to unprofitable decisions because it
is not grounded in financial objectives such as increasing shareholder value. According to
Doyle it has never been clear what criteria to use in determining an optimum marketing mix.
Objectives such as providing solutions for customers at low cost have not generated adequate
profit margins. Doyle claims that developing marketing based objectives while ignoring
profitability has resulted in the dot-com crash and the Japanese economic collapse. He also
claims that pursuing a ROI approach while ignoring marketing objectives is just as
problematic. He argues that a net present value approach maximizing shareholder value
provides a "rational framework" for managing the marketing mix.

Some people claim the four Ps are too strongly oriented towards consumer markets and do
not offer an appropriate model for industrial product marketing. Others claim it has too strong
of a product market perspective and is not appropriate for the marketing of services.

An expanded system based on Seven Ps stresses the importance of Place, Product, Price,
Promotion, People, Process, and Physical evidence

MARKET RESEARCH
Market research is for discovering what people want, need, or believe. It can also involve
discovering how they act. Once that research is complete it can be used to determine how to
market your specific product. MR-Anywhere is a very good platform for market research and
analysis

For starting up a business there are a few things that are important:
Market information
Market information is making known the prices of the different commodities in the market,
the supply and the demand. Information about the markets can be obtained in several
different varieties and formats.
Examples of market information questions are:
Who are the customers?
Where are they located and how can they be contacted?
What quantity and quality do they want?
When is the best time to sell?
Market segmentation
Market segmentation is the division of the market or population into subgroups with similar
motivations. Widely used bases for segmenting include geographic differences, personality
differences, demographic differences, use of product differences, and psychographic
differences.
Market trends
The upward or downward movements of a market, during a period of time. The market size is
more difficult to estimate if you are starting with something completely new. In this case, you
will have to derive the figures from the number of potential customers or customer segments.
[Ilar 1998]

But besides information about the target market you also need information about your
competitor, your customers, products etc. A few techniques are:

Customer analysis
Choice Modelling
Competitor analysis
Risk analysis
Product research
Advertising research
CHAPTER 4 - DATA ANALYSIS

4.1 PERCENTAGE OF TOYOTA OWNERS

OW NERS OF TOYOTA

YES
24%
YES
NO
NO
76%

Figure 1.3

INFERENCE:

 24% of the respondents were owners of Honda


 76% of the respondents were owners of Toyota
4.2 CUSTOMER SATISFACTION RATING

CUSTOMER SATISFACTION

17%

SATISFIED
DISSATISFIED

83%

Figure 1.4

INFERENCE:

 83% of the Respondents were satisfied with their cars and the services of TOYOTA

 However 17% of the Respondents were dissatisfied at the same time.


4.3 PREFERENCES OF BUYING A NEW CAR

PREFERENCES OF BUYING A NEW CAR

40
30
20
10
0
TOYOTA HYUNDAI MARUTI HONDA

Figure 1.5

INFERENCE:

 18% of the respondents would prefer to buy a Toyota car against its competitors.

 37% of respondents preferred for Maruti.

 21% and 24% respectively preferred for Hyundai & Honda.


4.4 WHERE DO YOU MANAGE TO FIND INFORMATION ABOUT
TOYOTA

INFORMATION ABOUT TOYOTA

12%
DEALERS
20%
PRINT MEDIA
T.V.
55%
INTERNET
13%

Figure 1.6

INFERENCE:

 Information through Internet and Print media accounts for more than half or 75% of
the information shared with the masses.

 Rest 25% was shared by T.V. and Dealers for providing the information.
4.5 TOYOTA CARS HAS THE MOST FUEL EFFICIENCY

F UE L E F F IC IE NC Y O F T O YO T A
1 00 78
80
60
40 22
20
0
Y ES NO

Figure 1.7

INFERENCE:

 78% of the respondents felt that Toyota has the most fuel efficiency.

 While 22% felt it isn’t the most fuel efficient.


4.6 THE FEATURES OF TOYOTA AS COMPARED TO OTHER CARS

FEATURES OF TOYOTA
12%

8%

GOOD
10% VERY GOOD
NOT SO GOOD
70% SATISFACTORY

Figure 1.8

INFERENCE:

• 70% of the respondents felt that the features of the Toyota are good.

• While 8% of respondents thought it was not so good, 10% thought it was very good
and 12% felt satisfactory about the features.
4.7 THE QUALITIES THAT BEST DESCRIBES TOYOTA

FEATURES THAT BEST


DESCRIBES TOYOTA
38
40
29
30
18
20 15
10
0
HANDLING FUEL DESIGN COMFORT
EFFICIENCY

Figure 1.9

INFERENCE:

 Toyota is best known for its design & comfort.

 Then comes Handling and Fuel Efficiency.


4.8 HOW DO YOU FIND THE INTERIORS OF TOYOTA

INTERIORS OF TOYOTA

7%
3%
GOOD
16%
VERY GOOD
NOT SO GOOD
SATISFACTORY
74%

Figure 1.10

INFERENCE:

• The interiors of Toyota are very good according to 74% of the respondents.

• 16% said it was very good, 7% said it was satisfactory and 3% felt it was not so good.
4.9 WHAT SHOULD BE DONE TO IMPROVE TOYOTA ?

WHAT SHOULD BE DONE TO


IMPROVE TOYOTA
13%
MAKE IT MORE
15% AFFORDABLE
CHEAPER SPARE
PARTS
72% MORE SERVICE
STATIONS

Figure 1.11

INFERENCE:

 If Toyota is made more affordable then it would win more customers, a


theory which was backed by 72% of the respondents.

 15% and 13% respectively want cheaper spare parts and more service
stations.
4.10 WHAT SHOULD BE DONE TO MAKE TOYOTA THE BEST

CAR

WHAT SHOULD BE DONE TO MAKE


TOYOTA THE BEST CAR
MAKE IT MORE
15 FUTURISTIC

MAKE IT MORE
10 SPORTY

GIVE IT A RETRO
60 LOOK
15
GIVE IT A
CONCEPT CAR
LOOK

Figure 1.12

INFERENCE:
 To make it the best car in its class it should be made more futuristic which
was felt by 60% of the respondents.

 15% of the respondents thought it should be made more sporty.

 10% wanted it to have a retro look and 15% wanted to give it a concept car
look.

4.11 ARE YOU HAPPY WITH THE AFTER SALES SERVICES PROVIDED

BY TOYOTA

HAPPY WITH AFTER SALES


SERVICES PROVIDED BY TOYOTA

15%
HAPPY
UNHAPPY

85%

Figure 1.13

INFERENCE:

 Overall 85% of the respondents were happy with the after sales service
provided by Toyota.
 15% were unhappy with Toyota due to poor after sales services provided by
them.
CHAPTER 5 – FINDINGS AND RECOMMENDATIONS

5.1 FINDINGS

 76% of the respondents were owners of Toyota

 83% of the Respondents were satisfied with their cars and the services of TOYOTA,

However 17% of the Respondents were dissatisfied at the same time

 18% of the respondents would prefer to buy a Toyota car against its competitors

 Information through Internet and Print media accounts for more than half or 75% of

the information shared with the masses. Rest 25% was shared by T.V. and Dealers for

providing the information

 78% of the respondents felt that Toyota has the most fuel efficiency

 70% of the respondents felt that the features of the Toyota are good. While 8% of

respondents thought it was not so good, 10% thought it was very good and 12% felt

satisfactory about the features

 Toyota is best known for its design & comfort. Then comes Handling and Fuel

Efficiency.

 If Toyota is made more affordable then it would win more customers, a theory which

was backed by 72% of the respondents.15% and 13% respectively want cheaper spare

parts and more service stations.

 To make it the best car in its class it should be made more futuristic which was felt by

60% of the respondents.15% of the respondents thought it should be made more

sporty.10% wanted it to have a retro look and 15% wanted to give it a concept car

look.
5.2 RECOMMENDATIONS

 Toyota should adopt the defensive marketing strategy because as being the second
largest car producer in the international market,

 Toyota must at the moment carry out a feasibility study for launching a vehicle in the
domestic market where it has models like the Innova and Camry amongst others.

 Toyota should conduct market survey in Indian market for quails in order to know the
perception of Indian consumers.

 Toyota should adopt an offensive marketing strategy for entering in the small car
segment. This market is dominated by Maruti Suzuki and Hyundai in the Indian
domestic auto market.

 Toyota must plan out an ideal marketing producing capacity ,becaue it faces the
problem of over and under capacity in case of upturn and downturn of the market.
ANNEXURE

QUESTIONNAIRE FOR CONSUMER

A) NAME

B) ADDRESS

C) CONTACT NUMBER

D) INCOME GROUP

_________15,000-25,000 _________25, 000-50,000

_________50,000-75,000 _________Above 75,000

1. DO YOU OWN A CAR?

o YES NO

IF YES, THEN WHICH ONE?

(i)TOYOTA (ii) HYUNDAI (iii) MARUTI

2. HOW SATISFIED ARE YOU WITH THE SERVICES OFFERED BY TOYOTA

(i)SATISFIED (ii) DISSATISFIED


3. IF SATISFIED, THEN ARE YOU HAPPY WITH THEIR CHARGES AND

TIMELY DELIVERY THEY WERE OFFERING?

(i)HAPPY (ii) UNHAPPY

4. IF GIVEN A CHOICE TO CHOOSE A CAR COMPANY, WHICH COMPANY

WOULD YOU CHOOSE?

(i) TOYOTA (ii) MARUTI (iii) HYUNDAI

5. WHERE DO YOU MANAGE TO FIND INFORMATION ABOUT TOYOTA ?

(i)DEALERS (ii) PRINT MEDIA

(iii)T.V. (iv)INTERNET

6. DO YOU THINK TOYOTA HAS THE MOST FUEL EFFICIENCY (i)YES

(ii) NO

7. HOW DO YOU FIND THE FEATURES OF TOYOTA AS COMPARED TO

OTHER CARS?

(i)GOOD (ii) VERY GOOD

(iii)NOT SO GOOD (iv) SATISFACTORY

8. WHICH OF THESE QUALITIES DO YOU THINK BEST DESCRIBES

TOYOTA ?
(i)HANDLING (ii) FUEL EFFICIENCY

(iii)DESIGN (iv)COMFORT

9. HOW DO YOU FIND THE INTERIORS OF TOYOTA ?

(i)GOOD (ii) VERY GOOD

(iii)SATISFACTORY (iv) NOT SO GOOD

10. ACCORDING TO YOU WHAT SHOULD BE DONE TO IMPROVE

TOYOTA ?

(i) MAKE IT MORE AFFORDABLE

(ii) CHEAPER SPARE PARTS

(iii)MORE SERVICE STATIONS

11. ACCORDING TO YOU WHAT SHOULD BE DONE TO MAKE TOYOTA

THE BEST CAR?

(i)MAKE IT MORE FUTURISTIC

(ii)MAKE IT MORE SPORTY

(iii)GIVE IT A RETRO LOOK

(iv)GIVE IT A CONCEPT CAR LOOK


12. ARE YOU HAPPY WITH THE AFTER SALES SERVICES PROVIDED BY

TOYOTA ?

(i)YES (ii) NO

(iii) HAPPY BUT IT CAN BE BETTER

BIBLIOGRAPHY

Books:

Kotler Philips, Marketing Management: 30th Edition

Chabra T.N., Marketing management 2005

C.B. Gupta, Marketing management 2006

Magazines
Business standard Motoring May 2008 edition

Internet:

www.google.com
www.toyota .com

www.yahoo.com

www.domain-b.com

www.wikipedia.com