AYGO LAUNCHING IN VIETNAM

Business & Marketing Planning Group 2

I. Company description
Establishment: September 5, 1995 (official opening in October 1996) Investment capital: $US 89.6 million Business field: Producing, assembling and selling Toyota vehicles Repairing, maintaining and selling Toyota genuine parts Exporting auto parts Products: Hiace, Camry, Corolla Altis, Innova, Vios and Fortuner Land Cruiser, Hilux, Yaris, Land Cruiser Prado (Imported models Employees: more than 1,500 employees (including seasonal members)

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II. Vision/Mission/Objective
Vision Rewarded with a smile by exceeding your expectations Lead the way to the future of mobility, enriching lives around the world with the safest and most responsible ways of moving people. Aim to exceed expectations and be rewarded with a smile through commitment to quality, constant innovation and respect for the planet . Meet challenging goals by engaging the talent and passion of people, who believe there is always a better way. Mission Mission of Toyota is to provide safe & sound journey Toyota is developing various new technologies from the perspective of energy saving and diversifying energy sources. Environment has been first and most important issue in priorities of Toyota and working toward creating a prosperous society and clean world. Objective Be the leading joint venture automaker with prestigious brand name to Vietnamese consumers by offering: Customers satisfaction; Active contributions to Vietnams automobile industry and to Vietnam society.
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KEY SUCCESS FACTORS

Target segment: Vietnamese young people/families (A-B class) Key success factors: Prestigious brand: Quality, Design & Innovation, which are core values of the Toyota have already been engraved in customers mind Yago is an appealing choice: Engage exciting driving experience in the urban environment: clever design, small, convenient, fuel-efficient, driverfriendly but still enjoyable and fully-equipped) Supporting points: Affordable price with a variety of supporting financial schemes for firsttime buyers Require one of the lowest cumulative maintenance times in its class Reliable nationwide maintenance services

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PORTER 5 FORCES

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BCG MATRIX
In mini car segment, Thaco Truong Hai is currently the 1st dominant with Kia series. The increased market share comes from the success of Kia series has helped Thaco Truong Hai surpass Toyota in term of total market share in Vietnam car market.

High High
Market growth
STAR

Relative market share

Low

QUESTION MARK Invest to grow market share

Family car
SUV

Mini car

Low

CASH COW

DOG

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THE DIRECTIONAL POLICY MATRIX

High
Mini-car Attractiveness Growth Profitability Size Vulnerability Competition Total Weight 35 30 15 5 15 100 Score 8 7 7 7 6 Total 2.8 2.1 1.05 0.35 0.9 7.2 Family car Score 7 8 8 8 7 Total 2.45 2.4 1.2 0.4 1.05 7.5 SUV, 4X4 Score 6 7 4 7 6 Total 2.1 2.1 0.6 0.35 0.9 6.05

Business strength

Low

Market attractiveness High

Family car
SUV

Mini-car

KSFs Price Mini-car Brand Design Service Total Family car Price Brand Design Service Total SUV, 4x4 Price Brand Design Service Total

Weight 30 20 30 20 100 40 30 20 10 100 25 35 30 10 100

Score

Toyota Total 7 8 8 9 7 5 8 7 7 5 8 7

Score 2.1 1.6 2.4 1.8 7.9 2.8 1.5 1.6 0.7 6.6 1.75 1.75 2.4 0.7 6.6

Kia Total 8 7 6 7 8 7 6 7 5 5 5 7

Score 2.4 1.4 1.8 1.4 7 3.2 2.1 1.2 0.7 7.2 1.25 1.75 1.5 0.7 5.2

Ford Total 6 6 7 8 6 7 6 7 8 7 7 7

Relative score 1.8 1.2 2.1 1.6 6.7 2.4 2.1 1.2 0.7 6.4 2 2.45 2.1 0.7 7.25

=7.9/7.9 1.00 =6.6/7.2 0.92 =6.6/7.25 0.91

Low

Strategy
Mini-car: Invest and develop Family car: Invest and develop SUV: Maintain (for the moment)

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SWOT
STRENGTH Strong brand imaged based on quality Nationwide distribution system *Good product of a Prestigious brand at Affordable price and excellent customer service WEAKNESS Toyota is not the leader, just the follower, in the segment of mini-car.

OPPTUNITIES The market of mini-car is big and very potential. Vietnams economy is growing rapidly (6.78% in 2011) and number of consumers who want own a car is increasing, which is obviously an unavoidable trend in near future (Ministry of Transportation forecast 2010 - 2020: 1,4 cars/1,000 people over the population of 87 million people)

THREAT Potential entrants (VW, Mazda, Huyndai) might jump in increasing competitive pressure. Fluctuation of exchange rates affect profits

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STRATEGIC AXES

Affordable to buy, fun to run, cheap to do maintenance, well-equipped and stylish to own

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BUSINESS OBJECTIVE
Increase market share. Toyota Aygo will become the Best Choice in mini-car segment in one year after launching. Achieve the average sale volume 433 cars/month (10% higher than the market leader Kia morning: 429 cars/month (Updated Aug 2011)

Business & Marketing Planning Group 2

MARKETING PLAN - Price

Compared with competitors of the same segment, Aygo will have the highest price, which depends on model ranging from $18,000 to $19,000 * Price Strategy: Aggressive price for sales volume and share but still at a premium image
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MARKETING PLAN - Product

A super-compact that is sporty, youthful and highly economical on fuel (61.4 mpg) and has a great engine, low running costs, 'cheeky' styling and solid quality Product: Ayo, Aygo+, latest revised version Aygo Blue, Aygo Black in three or five-door body styles; Engine 1.0 litre WT-I petrol unit, 5 speed manual *Product strategy: Fuel efficient, clever design, greater performance and less impact on the environment
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MARKETING PLAN - Place

Distributed through nationwide Dealer Network

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MARKETING PLAN - Promotion

Intense Communication: Aygo Hunt competition; Aygo Charm competition for ladies; Driving test; TVC; Ads targeting young consumers at cinema, shopping center, magazine Offer some free gifts for buyers Offer special maintenance packages Supporting Financial scheme: Offer car purchase loans at low interest rate and free insurance package *Aggressive marketing
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PLANNING PROCESS Operating Plan

Milestone Project Mission Strategy Phase Mission statement Big ideas Task Clarified and communicate mission Situation Analysis, project objective, strategy selection Issue Project statement & Sheet, Project kick-off Dept. CEO Owner CMO

CEO

CMO

Implement Implement ation ation of selected strategy Business Plan

CEO

CMO

Action plan Consolidation of approved idea into plan and communicate to related dept.
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CEO

CMO

PLANNING PROCESS KPI

The growth of sale volume Percentage increase of market share Brand image Profitability

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