CHAPTER I INTRODUCTION 1.

Background The dynamics of globalization and technological revolution that is sweeping the world today is certainly going to affect our competitive business world and patterns drastically. From the assumption that business people and executives will be required to be able to predict and create a good alternative strategy to the changes. One is in the development of the automotive industry especially in the increasingly competitive auto industry is marked by numerous companies in the automotive field that offers various types of car types and prices are varied, so that this can lead to increasingly fierce competition. For example, the company Astra International as an authorized dealer of Toyota Motor issued a type of car with the type of Avanza, then other companies also issued a similar type of automobile that is Xenia with a cheaper price. This resulted in a decrease in purchases for the type of Toyota Avanza, then to win the competition companies must have a strategy to compete better in order to increase its sales volume. One company will perform product development and expand its market share is branded automotive company Toyota and Land Rover. Of each company competitive in the face of competition with each other by using each strategy.

2. Problems From the description above, we can make formulation of the problem in this research is how the product development strategy of the company's Land Rover (England - Europe) and the company Toyota (Japan - Asia).

3. Purpose The purpose of this paper is to investigate and compare the company's product development strategy between the Land Rover and the Toyota Company.

CHAPTER II REVIEW REFERENCES 1. Product Development As we all know, marketing has four main components namely: product development, pricing, promotion and extension. This component is also known as the 4 P or the marketing mix. In general there are three approaches that may be firm in its efforts to develop a product. The first approach is ethnocentric approach is the approach commonly used. With this approach, companies do not need to adapt products and do not need to adjust their products to the needs and desires of consumers country of destination. Companies also do not need to do market research to find out what kind of products suitable for consumers in those markets. Companies simply develop products around the world in a way, form or method similar to that used in the country. Thus, companies can save on expenses to conduct market research and product prices are expected to be more competitive. The second approach is polycentric approach is the opposite of the first approach. This approach places great emphasis on the ability of companies to adapt their products to the needs and desires of consumers in the destination country. Thus the company's products will vary around the world because it adapted to the destination market. The third approach is geocentric approach is an approach similar to the first approach. In this approach, the company also conducts standardization around the world in terms of the marketed product is the same all over the world. What distinguishes this approach is not necessarily the company using methods such as product development in the country in the world because in this approach the company will choose a method of development which he is best and then apply it all over the world. So in this approach, the company considers there is a way of development that can be applied throughout the world and not necessarily the same as that used in the country. The stages in the development of products according to Swastha (1997: 184-186): a. Filtering phase

Filtering phase is done after a wide range of ideas about the product becomes available. In this stage is the selection of a number of ideas from various sources. As for the information or ideas derived from the manager of the company, competitors, experts including consultants, suppliers, customers, or other institutions. b. Business Analysis Phase At this stage each idea is analyzed in terms of business to determine how far these ideas can make a profit. c. Development phase At this stage, the ideas that have been analyzed to be developed because these ideas are considered more profitable. This development must be in accordance with the company's capabilities. d. Testing phase Testing phase is a continuation of the development stage, include: 1. Testing of the concept of product 2. Testing of consumer preferences 3. Research laboratory 4. Test the use of 5. Pilot plant operation 6. Stage Commercialization This stage is the final stage of a series of new product development. At this stage all the facilities have been prepared both production facilities and marketing facilities. All activities must work together despite having different objectives.

Some of the factors that influence the development of products according to Swastha (1997: 187): 1. No stable competitive position With the increasing number of similar products offered by the increasingly sharp competition situation, let alone the kind of entrepreneur who has been improving for more customized products. 3

2. The emergence of competition An item that sold well in the market and can generate profits, will encourage other entrepreneurs to produce goods being sold is even with better quality. 3. Many variations of use of goods With the increasing number of variations in the use of a product then this will encourage companies to develop their products, so the product will have a variety of uses. 4. Effective utilization of production capacity Other factors carry out product development is to utilize the production capacity, since most companies have not been producing at full capacity.

According to Kotler (1998: 274) the factors that contribute in hindering the development of new products are: a. Lack of new product ideas that are important in certain areas (perhaps only a few remaining ways to fix some basic products). b. The market is divided (the fierce competition led to fragmented market). Companies should direct their new products on the market sekmen smaller, and this means that sales and lower profits for each product. c. Social constraints and the government (the new product must meet criteria such as security and environmental balance). d. The high cost of new product development process (a company generally must create a lot of new product ideas to find only one is feasible to be developed). e. Lack of capital (some companies with good ideas can not collect the necessary funds to do research). f. Shorter development time (many competitors may get the same idea at the same time, and victory is often achieved by the most nimble). g. Shorter product cycle (when a new product is successful, competitors quickly imitate).

CHAPTER III DISCUSSION A. History 1. History of Land Rover Land Rover is a brand of vehicles 4 4 (all-terrain vehicle) Legendary British-made original. Land Rover appeared shortly after the Jeep, which was produced by famous Americans as a vehicle that is very tough. The term "Land Rover" was originally used to name one specific type of vehicle models for agricultural purposes and civil versatile and can be used on all types of road conditions. Land Rover's design was first designed in 1948, by Maurice Wilks (chief designer at the Rover car company) in England. Precisely at his private farm in Newborough, Anglesey island, off the coast of Wales. Some opinions expressed Maurice Wilks probably inspired by the Standard Motor Company, which produces Ferguson TE20 tractor very successful, in their shadow factory in Coventry. But Maurice Wilks himself admits, that the Land Rover design was inspired by the Jeep. When Maurice Wilks was on vacation during the summer, there's a used Jeep car to get around.

2. History of Toyota Toyota Motor Corporation was founded in September 1933 as a division of Toyoda Automatic Weaving Factory car. Division of company cars are then separated on August 27, 1937 to create the Toyota Motor Corporation as at present. Departing from the textile industry, a company that produces car every 6 seconds is found to have used more because of Toyota's naming mention more comfortable than wearing a surname founder, Toyoda. Here are some interesting milestone trip Toyota. Toyota is the world's largest car manufacturer in unit sales and net sales. Japan's largest manufacturer produces 8 to 8.5 million cars worldwide each year. Compared with other automotive industries that use the name of its founder as a trademark such as Honda, founded by Soichiro Honda, Daimler-Benz (Gottlieb Daimler and Karl Benz), Ford (Henry Ford), Toyoda name is not used as a brand. Since the departure from simple ideas and visions that time, the mention of Toyoda less pleasant and not so familiarly known spoofed into a Toyota. 5

B. Product Development Associated with product development, companies can perform two major approaches, namely Standardization and customization. Standardization is a strategy where by firms equate their products worldwide. This strategy is two ethnocentric approach and geocentric approach. The difference, ethnocentric approach refers to the country of origin while the geocentric approach refers to a product that is received in each country. Customization is a strategy where the company created a product that suits your needs and tastes of the target market, because it's their product varies in each country. This strategy is also called a polycentric approach.

1. Product Development of Land Rover These products are marketed throughout the world land rover is the same. This means that products are marketed in Europe are also marketed in Asia, Africa, America, Australia and in other parts of the world. Land Rover has only four brands marketed around the world that range rover, Discovery, Freelander and Defender. The shape of each car brand is the same in every country. Range Rover sold in Indonesia are the same as the range rover is marketed in the UK, or Freelander sold in America is the same as the Freelander is marketed in Africa. In other words, Land Rover uses a strategy of standardization. When viewed from the aspect of culture then this is in accordance with the character of English people are conservative and rigid. But related to this product development, Land Rover has a strategy called personalized strategy. This strategy allows the consumer to buy a land rover products with certain specifications in accordance with the wishes of consumers are concerned. In other words, consumers can order a car to suit his taste. Personalization is limited to the completeness of supporting auto-completion, such as alloy wheels, audio systems, exterior, seats, carpets, dashboards, and interior and not to change the shape of the car as a whole. Consumers can choose the size of the rim according to his wishes, sizes available ranging from 18, 19 to 20 inches. Consumers can also choose completeness audio systems such as TV, the number of loudspeakers, or a CD slot. The exterior can be selected such that the glass with rain sensor, wiper lights, park distance control (PDC). 6

Seating and carpet colors to choose from, among others, parchment, aspen, navy, charcoal, ivory, sand. Dashboard are available such as cherry wood, foundry finish, and burr walnut wood. And interior fittings to choose from include a heated steering wheel and cruise control, a slide glass sunroof, heated seats and others.

2. Product Development of Toyota These products are marketed Toyota vary around the world. Toyota to adjust its products to the conditions and consumer tastes that exist in a country. Or in other words using strategies Toyota customization. When viewed from the cultural aspect of the selection of such a strategy is consistent with the character of Japanese people who always keep harmony with the environment. Harmony is important in Japanese business culture. In harmony is important to maintain a harmony with the environment and avoiding conflicts of any nature. For that we need to do an adaptation and adjustment to the environment and customization strategy was used. Toyota cars sold in Indonesia there are three types of CBU (completely build up), CKD (completely knock down) and domestic production. Some products are marketed in Indonesia Toyota like vios, crowns and camry. These cars were imported from the Toyota factory in Thailand. There's that are imported CKD or in component form and then assembled in the country, such as Avanza. Assembly process is done at a Toyota plant in Sunter. But there are also products that Toyota has been produced in the country of Deer. Deer production process takes place at the Toyota plant in Karachi. Deer as one of Toyota's flagship product is in high demand by consumers in addition because the price is competitive as well as its capacity to make a lot of passengers. When viewed from the aspect of culture, Indonesian people love a car like this because in accordance with a collective character and is very familiar. Toyota's products are marketed in Indonesia who are CBU and CKD was designed in Japan. Before designing a product, Toyota's first do some research about the shape of a car that will demand roughly one country. Consumer preference about the form of cars in each state vary, so Toyota's products are marketed in every state also varies. While Deer are produced in the country designed by designers in the country because

domestic designers supposed to understand right about consumer tastes Indonesia car. So Toyota is using ethnocentric approach when developing products. Selection of the location of the Toyota factory in Thailand for several brands like Vios and Camry, in the background backs on some of the considerations that a stable political situation, the workers and the availability of cheap raw materials. Countries Compared with other Southeast Asian, Thailand does have a relatively stable political conditions in the system of democratic government. This will reduce the business risk associated with political issues such as riots, demonstrations, nationalization, currency fluctuations and others. Industry-industries in Thailand are also supporting the Toyota plant there in terms of raw materials. The components to make the car can be obtained cheaply in Thailand, plus labor and relatively inexpensive. Thus, Toyota uses a cost leadership strategy. Toyota not only use this strategy in developing its products. Toyota products are also intended for the upper classes like camry and crowns, therefore Toyota also uses a differentiation strategy to expand its portfolio. These premium products can be found in every country worldwide with standardization strategy. Thus, Toyota not only reach the consumers of the middle class but also from the upper classes.

CHAPTER IV CONCLUSION From the foregoing discussion can be concluded that the product development strategy of both companies are very different. Toyota uses customization company strategy, in which Toyota products tailored to market conditions taking into account the tastes of consumers, so the Toyota products are marketed in every country is always different. While the company Land Rover uses standardization strategy. With this strategy Land Rover products are marketed throughout the State are the same. With such a strategy, so that the company emphasizes the quality aspect of their product because it's resale value. It is certainly corroborated by the existing brand image in the minds of consumers. Consumers Indonesia and international consumers generally assume that Land Rover is a car with world-class taste and high prestige.