Beruflich Dokumente
Kultur Dokumente
Of
Marketing Management
On
Marketing Plan to launch a
C-Segment Car
Submitted By
Submitted To
Aamir Khan
Mr.Krishan Gopal
Roll no :- RT1901A61
Regd. No :- 10907135
Section :- T1901
Lovely Professional
University ‘Punjab’
Acknowledgement
Aamir Khan
MBA-
1st Sem.
Table of content
Introduction of TOYOTA
Marketing Plan of Toyota Launch a
“PRIUS”
Objectives
SWOT analysis
Competitor
Target Market
Production System
Conclusion
Bibliography
Introduction of Toyota
Toyota is one of the best car selling companies in the world.
TMC (Toyota Motor Corporation) was established in Tokyo,
Japan. The company was founded in the year 1937 by a
successful businessman - Mr. Kiichiro Toyoda.
The company is a corporation in the Toyota City in Tokyo
Today, there are more than 317,000 people working in this
company as its dedicated employees The company did not
stop creating anything and they kept on creating more and
more powerful things without stopping. In the year 1936,
Toyota created a history by introducing a new passenger car-
Toyota AA. Toyota also has other brands which are very
famous worldwide and are known as Scion and Lexus. These
cars have great deals and they have majority of their
shareholdings in Daihatsu and Hino Motors.
Toyota selling over 8.8 million models in 2006¹ on all five continents. A Top
10 Fortune Global 500² enterprise, Toyota ranks among the world's leading
global corporations and is proud to be the most admired automaker³, an
achievement the company believes stems from its dedication to customer
satisfaction.Toyota has been shaped by a set of values and principles that
have their roots in the company's formative years in Japan.
Besides making cars, the company also has its wings in other sectors such as
financial sector. The name of this branch is Division Toyota Financial
Services. This company also plays a crucial role in financial sector and gives
loans and financial assistance to the people who are in need of capital. Toyota
Group is the largest group of industries in the world. Toyota motors limited
has seen a huge loss of about 5 billion US dollars due to internal issues. After
the financial crisis that happened due to American people, Toyota lost a lot of
shares and stakes and money between the years 2007-2009. The recession
that happened in the world was mainly due to Americans who did not pay
their loans and taxes back to the country.
Internal strengths:
Toyota is the world’s third largest car manufacturer. As such Toyota has
production facilities in more than 25 countries and can achieve benefits from
economies of scale. Toyota was one of the first manufacturers to introduce
the concept of “Just in Time” production that allows to reduce operating cost
and overheads and to respond to customer demand quicker.
The yearly budget for R&D is set at £1.5 billion for various research centres
around the world, the highest amongst car manufacturers. This willingness to
invest has brought Toyota an innovative image and created products such as
the Prius, “the world’s first mass produced hybrid” (Toyota)
Products
When people think of Toyota products, they usually think of a product that
lasts forever. That is exactly what Toyota set out to do, build a quality
vehicle, and after fifty years of building cars and trucks they are number one.
For the first time in history GM is not number one, Toyota surpassed both of
the top American auto companies, Ford and GM by selling 4.7 million
automobiles in the first half of 2007. Company spokesman Paul Nolasco said,
"We simply want to be the best in quality. After that,sales will take care of
year.Toyota currently offers seven different cars, seven vans/suvs, two trucks,
and three different hybrids vehicles. When they first started they had two
models total, the Toyopet Crown and the Land Cruiser. They have come a
long way in the last fifty years. Last year Toyota produced 358,544 of the
number one selling Camry, 4,249 of the Camry Hybrid, 100,014 of the
Avalon, and 41,078 of the Solara, all of which were made at the Georgetown,
Toyota also produces vehicles at some of their other plants located in Canada
and Mexico. Over the past three decades Toyota has been a presence in the
motor sports world by producing vehicles for all forms of competitive racing.
From Rally Cars, Formula racing, and NASCAR just to name a few. Over the
past ten years they created the TRD (Toyota Racing Development) to R&D
racing parts for both racing vehicles and standard production vehicles. The
TRD presence could be seen in vehicles such as the Celica and the Tacoma
pickup.
This is going to be a tough 2008-09 for C-segment cars, which fall in the
price range of Rs 5.5 lakh to 8.5 lakh. This is a list that includes mid-size cars
like the Suzuki SX4, Honda City, Ford Fiesta (and Ikon), Logan, Hyundai
Accent and Verna, etc.
It was bad enough for them coping with a differential excise duty structure for
two years when the finance minister decreed in 2006 that small cars be levied
a lower 16 per cent. The latest Budget has only increased the gap and today
large cars continue to attract 24 per cent which is twice as much as small cars
whose levels are further down to 12 per cent.
More than the traditional A and B-segment offerings like the Maruti 800,
Alto, Santro and Indica or the more recent Zen Estilo and i-10, it is the B-plus
products (Swift, Getz and Palio) that are the real threats to the C-segment
range. This is because they have emerged the best option for the Santro and
Indica customer keen on graduating to the next category of products.
Objectives
Objectives are important to clarify and set an objective set of targets that
ought to be achieved by the
planned actions. Objectives exist on three levels; Corporate, marketing and
communication.
Corporate objective can be summarized as shareholder wealth maximisation
and is ultimately achieved through higher profits and increased sales.
Marketing objectives are the successful introduction of a new car to the
market. However, in the first place the Prius was not expected to be a profit
generating commercial car. In fact in the USA the Prius is sold under its
production cost. The Prius was derived from a research project and its
conversion to a mass produced car might be more with the intend to improve
Toyota’s image, a kind of practical socially responsibility report, showcasing
Toyota’s engineering capabilities at the same time.
Marketing communication activities are a vital part in achieving the above
two and have to be coordinated with all other company activities (production,
sales, purchasing).
Strengths Weaknesses
Opportunities Threats
Toyota believes the role of purchasing is through long term and stable
production of quality products at the lowest price in a fast and timely manner.
(Toyota Co. sustainability report 2006). The main objective of administering
prices within any company in the automobile industry is profitability and to
consistently increase efficiency in their product line. The traditional pricing
strategy is formulated into the cost + profit = selling price. When auto
companies make changes and improvements , cost of production increases
causing the selling prices to go higher. Companies normally do not want to
cut their targeted return and therefore the costs are passed on to the consumer
to maintain their profit margin. Toyota takes on slightly different approach
with a sales - oriented objective. Although the variables are the same, the
formula is adjusted strategically into the selling price - cost = profit. Toyota
firmly believes that its markets and consumers is what determine the selling
price. Waste elimination is given top priority which reduces cost and by
continuously reducing these types of costs, it will result in persevering the
company's profit growth.
Competitors
• Honda Insight, a compact which emphasizes affordability.
Honda Insight, billed as the cheapest gas-electric hybrid
on the market, ranked as the top-selling vehicle in Japan
for April 2009—the first time a hybrid has clinched that
spot. When the Prius launched in May 2009 it took
Japan's top spot while Insight sales fell to third. Features
such as 15" alloy wheels, 6-speaker audio, cruise control
and electronic stability control while standard on the US-
spec Prius II (MSRP $22,000) are optional on the Insight.
"The cost benefit of hybrids is becoming more apparent with climbing gas
prices," said Jim Lentz, TMS executive vice president. "We anticipate
combined sales of Toyota and Lexus hybrids of a quarter million units in
the U.S. during calendar year 2007."
Despite earlier concerns that decreased tax credits from the IRS would
dampen hybrid demand, Toyota continues to post record hybrid sales.
Calendar-year-to-date hybrid sales for TMS totaled 119,154 units, an
increase of 75 percent over the same period last year.
In May, TMS posted sales of 36,101 hybrid vehicles, up 102 percent over
last May. Toyota Division posted sales of 34,174 hybrids, up 121 percent
over the same period last year. Lexus Division posted sales of 1,927
hybrids.
BIBLIOGRAPHY
• www.google.com
• www.wikipedia.com
• www.ask.com
• Magazines ,