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-1Indus Motor Company Ltd.
To be the most respected and successful enterprise, delighting customers with a wide range of products and solutions in the
automobile industry with the best people and the best technology.
-2Indus Motor Company Ltd.
TOYODA LOOMS: It all started back in 1926 when Mr. Sakichi Toyoda founded this corporation as one of the leading company in Japan as TOYODA AUTOMATIC LOOM WORKS Ltd. Mr. Sakichi Toyoda was born in 1867 and up till 1900, he became one of the very well known industrialists. Than in September 1933 Automobile department was established within TOYODA AUTOMATIC LOOM WORKS and in September 1934, this automobile department of the company manufactured its first Type A engine and based on this engine first prototype MODEL A1 passenger car was completed. TOYOTA Motors Corporation: Then in August 1937 TOYODA separated its automobile department as another company named TOYOTA MOTORS COMPANY Ltd. I must mention here that Mr. Kiichiro Toyoda, son of Mr. Sakichi Toyoda, established TOYOTA motor company. Within the 10th year of its establishment, TOYOTA started production of Model AA passenger car. During 1956, TOYOTA entered industrial vehicle field by marketing its one of the very popular Model LA forklift. As the company is now in its 66th year its has been a smooth journey of ideal management. In 1950 the company faced its one and only strike that was controlled easily. In late 1950s, production system of the company was improved that is considered one of the most effective production systems during those times. Expansion: In late 1970s, TOYOTA motors established TOYOTA metal Co. It is TOYOTA’s own recycling plant. In 1975, TOYOTA entered prefabricated housing industry by starting operations at kinuura plant. These activities are continued and managed by TOYOTA at a regular pace.
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It must be worth mentioning here that TOYOTA has produced its 100,000,000th domestic vehicle of Japan in October 1999. Over and above manufacturing, TOYOTA also has a global network of ‘design’ and ‘Research and Development’ facilities, embracing the three major car markets of Japan, North America and Europe. Variety: When it comes to talks of producing a wide variety, TOYOTA has its name on top. TOYOTA is producing a range of automobiles ranging from a highspeed sports car like SUPRA to a grand luxury saloon like LEXUS. COROLLA is one of the most popular brands of TOYOTA in different countries of world. Globalization: Production of vehicles outside Japan began in 1959 at a small place in Brazil and continued with a growing network of overseas plants. TOYOTA believes in localizing its operations to provide customers with the product they need where they need them; this philosophy builds mutually beneficial long-term relationship with local suppliers and local labors and off course customers. Global TOYOTA is a dream and mission of TOYOTA Motor Corporation. Since its beginning TOYOTA has planned to be a world wide automobile company and for this very reason TOYOTA has established a network of production in many countries of world. At the time TOYOTA is producing vehicles in 118 countries of world; one of the largest manufacturing network in automobile industry. It took a long time to reach at this mark and the process has been done step by step. Here is some information regarding start of manufacturing activity of TOYOTA in some important countries:
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Name of Country Taiwan Taiwan South Africa New Zealand Indonesia France Australia United States Germany
Year of start of production 1949 1959 1961 1966 1970 1971 1977 1984 1988
These are some of the highlights of start of TOYOTA manufacturing in different countries. It will need dozens of pages to give you details of this activity.
TOYOTA is the world’s third largest manufacturer of automobiles in unit sales and net sales. It is by far the largest Japanese automotive manufacturer, producing more than 5.5 million vehicles per year, equivalent to one every six seconds. In the time it has taken you to read this paragraph, TOYOTA will have produced at least another three or four cars!
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TOYOTA IN PAKISTAN
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WELCOME TO INDUS MOTOR COMPANY Ltd.
Our Core Values
Product Quality Customer Satisfaction
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Team Work Employee Care Ethical & Honest Practices
In Pakistan TOYOTA has started its manufacturing activity in July 01, 1990 with the name of Indus Motor Company Ltd. Indus Motor Company Ltd. Is a joint venture between the ‘House of Habib’, ‘TOYOTA Motor Corporation Japan (TMC)’, and ‘TOYOTA Tsusho Corporation Japan’ for assembling, progressive manufacturing and marketing of TOYOTA vehicles in Pakistan. Indus Motor Company Ltd. Is engaged in sole dealership of TOYOTA and Daihatsu Motor Company Ltd. Vehicles in Pakistan through its dealership network. Incorporation: The Company was incorporated in Pakistan as a public limited company in December 1989 and started commercial production in May 1993. In addition, since than it has become the largest manufacturer of cars in Pakistan. The shares of company are quoted on the stock exchanges of Pakistan. Toyota Motor Corporation and Toyota Tsusho Corporation have 25 % stake in the company equity. The majority shareholder is the House of Habib with 50 % of the equity. -8Indus Motor Company Ltd.
Plant: Indus Motor Company Ltd.'s production facilities are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres. It must be worth mentioning here that Indus Motor Company’s plant here in Karachi is the only manufacturing site in the world where both Toyota and Daihatsu brands are being manufactured. Heavy investment was made to build its production facilities based on state of art technologies. World-renowned Toyota Production Systems are implemented to ensure highest level of productivity. Company Information: Indus Motor Company Ltd. is operating in Pakistan under the guidance of TOYOTA motor corporation Japan. Here is some information about management of company.
Board of Directors Mr. Ali S. Habib Executive Directors Mr. Yutaka Arae Mr. M. Allays Sure Non-Executive Directors Mr. Farhad Zulfiqar Mr. A. Okabe Mr. K. Furubayashi Mr. Muhammad Ali R. Habib Chief Executive Officer Vice Chairman Chairman
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Mr. Mazhar Valjee Company Secretary Mr. Qasim Pervaiz Audit Committee Member Mr. Muhammad Ali R. Habib Mr. Farhad Zulfiqar/Mr. Kersi Kapadia (Alternative) Mr. K Furubayashi/ Mr. M Takeda (Alternative) Environmental Policy: Environment is a major concern of TOYOTA and Indus Motor Company Ltd. And that is why Indus Motor Company Ltd. Have defined an environmental policy and is strictly following that. As stated by Indus Motor Company Ltd. WE AS A TEAM INDUS MOTOR ARE COMMITTED TO CONTINUOUSLY IMPROVE OUR ENVIRONMENTAL MANAGEMENT SYSTEM TO:
IDENTIFY AND AVOID/MITIGATE THOSE ENVIRONMENTAL ASPECTS WHICH HAVE NEGATIVE ENVIRONMENTAL IMPACTS.
COMPLY WITH ALL APPLICABLE LEGAL, REGULATORY AND OTHER REQUIREMENTS.
ASSIST SOCIETY BY MAKING THE ENVIRONMENT FRIENDLIER.
Environment is primary issue when determining the policies of TOYOTA and related, that is the reason for defining an environmental policy that is very directive and pointed to the main aim. TOYOTA executive summarize this environmental policy in one sentence as “Safer and Cleaner Environment for All”
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Indus Motor Company Ltd. Is the first passenger car manufacturer in Pakistan automobile industry to acquire ISO 14001 which in itself shows Indus Motor Company Ltd.’s commitment and concern establishment of an effective management system? Another achievement of Indus Motor Company Ltd. in regards of environment was the changing over of all hot water generators and ovens to natural gas. This was another initiative that Indus took towards reduction of pollution.
The All New COROLLA 2003
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Break into Style
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New COROLLA Debut!
Enjoy the Excellence of Z-Generation!
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”It took us seven years to plan its design, its style, its launch and every thing” says Mr. Asif Aleem of Indus Motor Company Ltd. Regional office at Islamabad. After a long period of 9 years, TOYOTA decided to change its model in Pakistan. For this they started planning since 1997. Actually back in 1997, TOYOTA launched a model of COROLLA, with round lights and it was small in size too, in 15 countries. TOYOTA Indus Motor Company Ltd. Was also gave the option of getting this model for production but Indus Motor Company Ltd. Refused. “The image of COROLLA in Pakistan is of a big, heavy, comfortable and a luxury car and we did not want to disturb it by introducing a small and sports looking COROLLA” says Mr. Asif Aleem. COROLLA is a status symbol in Pakistan and for this reason Indus Motor Company Ltd. Opted for the model of COROLLA to be launched in year 2002. Simultaneously in Japan research was going on for this model and after a four year research TOYOTA Motor Corporation Japan produced its first prototype of the car. Then TOYOTA Japan invited all its progressive customers for survey and in 2001 TOYOTA Motor Corporation Japan started production of COROLLA S model. Launch in Pakistan: Here in Pakistan Indus Motor Company Ltd. has planned three years for the launch of new car. During the past 9 years, Indus Motor Company Ltd. has introduced many innovations in COROLLA but the shape and design was same. On March 2, 2002, the company launched New TOYOTA COROLLA in Pakistan in a ceremony held in Karachi. Initially COROLLA is launched in six different categories
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COROLLA XLI 1.3 EFI COROLLA GLI 1.3 EFI COROLLA SE Saloon 1.6 EFI Manual COROLLA SE Saloon 1.6 EFI Auto COROLLA 2.0D COROLLA 2.0D Saloon Apart from Karachi it was launched in all the country at COROLLA dealer’s outlet and almost every dealer held ceremonies at this occasion. “We arranged a fifteen day festival at our showroom and kept open till late hours during the first fifteen days” says Ms. Lubna N. Malik sales executive of Rawal Motors Rawalpindi. TOYOTA Multan Motors Multan’s official says, “We have never seen such a rush of people at TOYOTA and the important thing is that, whoever is coming to visit our showroom, he or she is going back satisfied and majority of the visitors are buyers”. Many of the dealers are providing test drive to their visitors. Jump Start: Since its launch in 2002 the new COROLLA has achieved a tremendous response and is all set to achieve No. 1 market share in its class. Indus Motor Company Ltd. Management being conscious of the strong desire of the customers to own and drive the new COROLLA has responded by enhancing production of the New COROLLA by 35%.
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Since its start back in 1990, Indus Motor Company Ltd. has enjoyed the status of leader because the name it is reproducing is of TOYOTA. Market of automobile in Pakistan is well established and it clearly states the self-actualization need of Pakistani consumers. Before Indus Motor Company Ltd.’s launch TOYOTA has a well-built network of sales that was overtaken by Indus Motor Company Ltd. Pakistani automobile market consist of Manufacturer like Indus Motor Company Ltd. Honda Atlas Motors and Pak Suzuki Motors and Importer that are wide spread in country in shape of dealers. To lead in this environment Indus Motor Company Ltd. has extended its product line of COROLLA to six and is operating a product mix of three categories. Our most target markets are upper middle class, upper class, upper class, government and resellers. They are executives, managers, businessmen, landlords, politicians, dealers, government offices and armed forces. Here are some details of market segments: Government offices: Pakistani government is an important customer that is known for their bulk purchase. Although government purchase almost all the brands present in Pakistani automobiles but its attention towards Indus Motor Company Ltd. has caused us to give special attendance to the government.
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Armed Forces: Pakistani army has set a tradition of giving a TOYOTA vehicle to its officers who cross the rank of Colonel. Before the launch of new COROLLA, TOYOTA CORONA has served Pakistan Army for almost 20 years but now Armed forces are purchasing COROLLA for this purpose. Consumers: Our largest segment of market is consumers. Indus Motor Company Ltd. is well aware of this fact that this is the segment that gives feedback and value to our product because they are the ultimate buyers. Pakistan is a developing country and that’s why consumers of TOYOTA are upper middle class, upper class and upper class. These are executives, managers, businessmen landlords and politicians. To meet the needs of middle class Indus Motor Company Ltd. has acquired the production of DAIHATSU Company and is producing CUORE that is proving to be another successive step of Indus Motor Company Ltd. Business Buyers: last but not the least is our business buyer who buys the product for the sake of profit. “It never disappointed us” says a dealer. Market Needs: Pakistan is developing a vast market of automobile that needs proper placement of product. When someone enters in competition with Indus Motor Company Ltd. they have to build quality products like COROLLA, HILUX and CUORE, they have to establish a dealer’s network all over the country like that of Indus Motor Company Ltd.’s and have to care for the customers. These are the ingredients that have helped Indus Motor Company Ltd. to meet market needs.
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We have customers who trust us for reliability, performance, safety, status, functionality and care. They understand the fact that it is not possible to get all these things at the same time from some one else.
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Worldwide acceptance of TOYOTA is proof of its best quality products. Indus Motor Company Ltd. has stepped in this race in 1991 by producing COROLLA XE. Then it has continued innovations like COROLLA GL, Gli and 2.0D. At the same time it acquired the ownership of manufacturing facility from DAIHATSU and started the production of CUORE. The third category of production is of carriage van that Indus Motor Company Ltd. is engaged with by producing HILUX. Idea: it is hard to tell that from where the idea has came but it is for sure that it was generated seven years ago. As we have already mentioned its idea was established in Japan and TOYOTA Motor Corporation Japan started the process of idea generation, screening and testing somewhere in 1995. Prototype Development: First prototype of COROLLA 2002 was developed in 1997 in TOYOTA Motor Corporation Japan. Than TOYOTA Motor Corporation
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invited its customer for survey and testing and after progressive tests they started its production in 2001 in Japan. Worldwide Distribution: After start of its production in Japan, TOYOTA Motor Corporation started the process of worldwide distribution and new COROLLA is now being produced in 65 countries of world. As already mentioned, Indus Motor Company Ltd. has got these rights in 2002. Testing and Survey: There are 28 dealers in Pakistan of Indus Motor Company Ltd., of these provided test drive to their customers and for this they sent formal invitations. TOYOTA Multan Motors Multan’s official says, “We have never seen such a rush of people at TOYOTA and the important thing is that, whoever is coming to visit our showroom, he or she is going back satisfied and majority of the visitors are buyers”. Quality: “Our name is the assurance of quality” says Indus Motor Company Ltd. Officials. The company pays foremost attention to the quality of its products and to its manufacturing processes and has therefore acquired ISO 9002 certification back in the year 1999 and the certificate has been further renewed for three years in august 2002. WE AS A TEAM AT INDUS MOTOR ARE COMMITTED TO FOCUS ALL OUR ACTIVITIES LEADING TO:
• • •
MANUFACTURING HIGH QUALITY PRODUCTS. CUSTOMER SATISFACTION. SERVICE TO SOCIETY.
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MAINTAIN MARKET LEADERSHIP.
Standard Features: COROLLA 2002
Following are some important features provided in
Specification Exterior- L*W*H (mm) Interior- L*W*H (mm) Wheel Base (mm) Minimum Turning Radius Engine Type Engine Displacement cc Fuel System Transmission Brakes FR/RR Suspension FR/RR Stabilizer Bar Steering System Tires Fuel Cut System
Basic COROLLA Sedan 1.3L XLI 1.3L GLI 1.6L 1.6L SE 2.0D 2.0D SE Saloon Saloon A/T Saloon 4530*1705*1480 1915*1430*1230 2600 4.6m 2NZ-FE 3ZZ-FE 2C 1299 1598 1975 EFI Fuel Injection 5 M/T 4 A/T (ECT) 5 M/T Ventilated Disc/Disc Leading Arm, Machpherson Strut Coil Spring/ETA Torsion Beam Front/Rear Power 175/70 R14 175/70 R14 185/65 R14 185/65 R14 175/70 R14 185/65 R14 No No Yes Yes No Yes
Exterior Antenna Bumpers Crystal Headlight Door Mirrors Manual Pillar Type Colored 4 Lamp Multi-reflector Power (Colored)
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Door Sash Back Front Wiper High Mounted Stop Lamp Tinted Windscreen Mud Flaps FR/RR RR Garnish Side Impact Bars Side Protection Molding Sideskirts Wheel Caps Wheel Rims No
Intermittent Yes Black Black No Full Steel
Yes Var-Intermittent Yes Yes Colored Colored Yes Colored Colored No Alloy Yes Black
Intermittent No Black Black No
VarIntermittent Yes Colored Colored Colored
Air Conditioner Central Door Locking Digital Clock Digital Trip Meter Door Trim Foot Rest Heater Key Reminder Warning Leather Gear Shift Knob Light On Warning Optitron Meter Power Windows Reverse Gear Warning RR Console Box RR Head Rest Roof Lining Seat Belt (FR) Seat Belt (RR) Seat Material Shift Position Indicator Speakers SRS Air Bag (Driver) Steering Wheel Sunvisor Tachometer Tilt Steering Trunk Lamp Wood Grain Finish Centre Console Wood Grain Finish Arm Rest Yes No Yes Yes Yes Yes Fabric Yes Yes Yes No No Yes No W/Lid Yes Yes No No No W/Lid Yes Yes No Yes Yes Yes No Yes No Yes No No W/2 Level Lid (F) W/Lid W/2 Level Lid Adjustable Moulded 3 Point ELR x 2 (W/ Adjustable Anchorage) 3 Point ELR x 2 Lap Type x 1 3 Point ELR x 2 Lap Type x Fabric No No Yes X X 4 6 2 6 Electronic No Electronic 4 Spoke Leather Yes Yes Yes No Yes
No No 2 No 3 Spoke No
4 Spoke Leather 3 Spoke D + P W/Mirror and Card Holder Yes Yes No Yes Yes Yes Yes Yes Yes No No
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New COROLLA Design Concept: In an effort to appeal more the Young at Heart people, the New Corolla is aimed at offering the Pakistani Customer with World-size Wheelbase and Height to achieve more interior space, luxury and a sporty look. We call it NCV. “New Century Vehicle” Many things in our life get bigger as society and the environment change, or smaller as technology advances. Toyota Engineers designed the Corolla by setting aside conventional ideas such as, "This class of car must be this size". Making the Corolla bigger was a natural consequence of today's trends. Toyota used large dimensions everywhere, and created an entirely new and attractive styling for all people to love. Performance: Designed for style, engineered for performance, the new Corolla offers all the technology for an outstanding performance. A dynamic new ZGeneration Twin Cam engine for more power and control. Innovative new front and rear suspensions that are even stronger and more flexible. Just turn the key and take off on the best on ride of your life. ZZ-engine DOHC Mechanism Twin Cam Technology Advantage New Z-Generation Lightweight DOHC High Mechanism Twin Cam EFI Engine delivers greatly increased power and torque throughout low to medium rpm for quick acceleration, enhanced performance and better fuel economy. A High Engine demands a high-speed transmission. Toyota is proud to introduce the ECT, an advanced technology, lightweight,
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compact 4-speed automatic transmission. A shift lock mechanism is incorporated to minimize the possibility of incorrect operation of the automatic transaxle. Break into Style: Inspired by Toyota passion for driving and rich Corolla heritage, and fuelled by our ambition to create a new generation. Corolla that would set the standards in its class, the New Corolla does just that. Sleek, sporty looks, an exciting new driving style. It’s the car for people who know what’s happening. Who shape the time? People like you. Break into style with the new corolla. Sheer Style, anyway you look at it. Branding: Indus Motor Company Ltd. has a license of production from TOYOTA Motor Corporation Japan. Although it is not mentioned in its financial statements but according to an estimate TOYOTA has brand equity equivalent to $29 billions. In 2002 Indus Motor Company Ltd. has extended its product line by starting the production of COROLLA 2002. To extend its product’s life cycle Indus Motor Company Ltd. has been introducing innovations in last model of COROLLA but after a long period of 9 years it was now needed that Indus Motor Company Ltd. may introduce a new model. Also because Honda Atlas introduced its CIVIC Prosmetic last year, the need for a new car was boasted. Product Line: Corolla’s product line consists of six products. It will be worth mentioning that Indus Motor Company Ltd. started the production of all these six models at the same time. Corolla’s product line is as follows: COROLLA XLI 1.3 EFI COROLLA GLI 1.3 EFI
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COROLLA SE Saloon 1.6 EFI Manual COROLLA SE Saloon 1.6 EFI Auto COROLLA 2.0D COROLLA 2.0D Saloon Indus Motor Company Ltd. has kept lengthening its product line throughout the years. In 1993 it introduced COROLLA XE and in 1994 COROLLA GL. Than in 1995 Indus Motor Company Ltd. introduced COROLLA GLi and 1996 was the year of introduction of COROLLA 2.0D that proved to be the most successful model for Indus Motor Company Ltd. Than apparently management called for a halt in product line and kept their product alive by eventually introducing innovations like crystal lights, colored bumpers, power transmission etc. Product Mix: Indus Motor Company Ltd. is operating 3 product mixes simultaneously; first is TOYOTA COROLLA that includes 6 models, second is TOYOTA HILUX that includes 1 model of carriage van and the Third one is DAIHATSU CUORE that includes 2 models of small economy cars. Indus Motor Company Ltd.’s product lines are consistent in so for as they are consumer products that go through the same distribution channel and they perform same functions for the buyer. Support Services: Less expensive after sales services and high resale value are considered the main augmentation of COROLLA. Indus Motor Company Ltd. has a dealer’s network of 28 dealers spread throughout Pakistan with 3S (Sales, Service, Spare Parts) network making the after sales services in reach of every customer where ever they are. Indus Motor Company Ltd. offer a free checkup
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and tuning during 1000 miles of purchase and a complete warranty of 1 year or 20,000 (which ever comes first)
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TOYOTA’S PRICING STRATEGY
As already mentioned, target market of Indus Motor Company Ltd. is upper middle class, upper class, upper class, government and resellers. Pricing plays a vital role in success of any product. It should be reasonable enough to meet the
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requirements of target customers and not reasonable enough to cut the profit of manufacturers. Strategy: Internationally TOYOTA is using a pricing strategy that is a blend of general pricing approaches i.e. cost based, value based and competition based pricing. But the important and main approach is cost based pricing. Indus Motor Company Ltd. charges their customer a price that is based on these three things;
• • •
Manufacturing cost Taxes imposed by Government Profit
Manufacturing cost is determined by company, taxes are imposed by Government and profit is determined by the buyer’s value (determined by surveys). It is worth mentioning here that high taxes from government of Pakistan also cause the price to accelerate. While launching a new product Indus Motor Company Ltd. comes into market with a premium strategy + penetrating price with respect to its major competitors. There is a difference of almost 100,000 in TOYOTA COROLLA 2.0D Saloon and HONDA CIVIC VTI ORIEL Prosmetic. This surely gives TOYOTA a competitive edge upon its competitors of same category. As we know that price is the most flexible P of Marketing but this is not applicable in case of COROLLA, because Indus Motor Company Ltd. keeps its prices same and the change in prices occurs only due to the change in some government policy. In Pakistan Indus Motor Company Ltd. is in operation with an FOB-origin Pricing. Along with the Ex-Factory price customer is supposed to pay the freight charges
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from factory that is located at Port Qasim Karachi to their destination. Indus Motor Company Ltd. has priced its product line of COROLLA according to the quality they offer in different models. Following are the prices of COROLLA 2002. Model 1.3L XLI 1.3L GLi 1.6L SE Saloon 1.6L SE Saloon A/T 2.0D 2.0D Saloon Price * 849,000 939,000 1,079,000 1,169,000 999,000 1,189,000
*= Ex-factory price. Subject to change without prior notice. Does not include freight charges.
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Name of TOYOTA is as much established that it does not require much efforts in promotions. But Indus Motor Company Ltd. has tried to change its promotional plan for COROLLA 2002 from “prestige and luxury” to “passion and style”. “Passion is the major emphasis of our promotional plan for this car. If you have passion, you deserve this car” says Mr. Asif Aleem of Indus Motor Company Ltd. regional office Islamabad. Advertising: For the first time in Pakistan Indus Motor Company Ltd. has launched an ad on Television. This ad too supports the statement of Mr. Asif Aleem. Purpose of this ad was just to give the viewer an idea that TOYOTA has produced something new and to establish curiosity in viewer’s mind. A newspaper is another media Indus Motor Company Ltd. is using for the promotion of COROLLA 2002. Indus Motor Company Ltd.‘s annual report states that it has increased the budget for advertising by almost 30% during 2002 to
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meet the requirement of launching a new product. For the year 2001 advertising and sale promotion’s budget figure was 38 million that became 48 million in 2002. Sales Promotion: Normally no sales promotions are done by Indus Motor Company Ltd. because TOYOTA has established a widespread community of its customers who are loyal to it. At the time of purchase, customer is given a survey form that is to be filled by customer and sent directly to Indus Motor Company Ltd. By doing this customer are entitled an entry in the draw of free services worth Rest. 5000. Public Relations: Quality of TOYOTA causes its customer to be loyal to the brand. When our team surveyed the consumers, no one has produced such remarks that may be supposed negative. Every of its customer appreciated the qualities offered in COROLLA 2002. Launch: At the time of launching of COROLLA 2002 Indus Motor Company Ltd. and its dealers took some exclusive steps for promotion of new car. On March 02, 2002 it was launched in Karachi in a ceremony held by Indus Motor Company Ltd. Apart from this all the dealers arranged a 15 day festival at their outlets for the promotion. They collected data of all the customers during past 7 years and issued invitations to them. During those 15 days every dealer in Pakistan provided test drive to the visitors. Some of the dealers in Pakistan are still providing test drive to their visitors.
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Indus Motor Company Ltd. has the strongest network of dealership in Pakistan. It has 28 dealers throughout Pakistan who perform all the functions of distribution channels i.e. Information, Promotions, Contact, Matching and Negotiations. Indus Motor Company Ltd. delivers the product to consumers using an indirect channel of distribution which is as under:
Indus Motor Company Ltd.
During the year 2001 some 148,000 vehicles were serviced at dealers outlets and this number increased to 185,000 in year 2002. Through its strong dealer’s network, Indus Motor Company Ltd. has made the availability of genuine spare parts possible all over the country at a controlled price. Following is the distribution of dealers all over the country: Area Sindh Punjab N.W.F.P Balochistan Islamabad (Capital) Azad Kashmir Number of Dealers 8 12 3 1 2 1
For physical distribution Indus Motor Company Ltd. has developed a Logistic system that performs the following functions as an attempt to maximize customer satisfaction.
• • •
Order Processing Warehousing Transportation -34Indus Motor Company Ltd.
Indus Motor Company Ltd. and dealers perform these functions for customers.
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Strengths: 1. Price 2. Dealer’s network 3. Safety 4. Sporty Look 5. 1 year/20000 mile warranty 6. Resale Value 7. Status Symbol Weaknesses: 1. Full Payment on Booking 2. Long time of Delivery 3. Payment of Delivery Charges by customers 4. Change of Price applicable to Undelivered Vehicle Opportunities and Threats: 1. Competition 2. Economy of Country 3. Availability of Imported vehicles Opportunity/threat Threat Threat Threat
4. Decrease of Taxes by government on imported vehicles 5. Acquisition of DAIHATSU Opportunity Threat
6. Incorporation of Made in Pakistan Automobiles 7. Leasing facility 8. Customer loyalty Opportunity Opportunity
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People’s view: Image of TOYOTA is of a companion in its customer’s minds. People say that we do not buy this car because of its durability, status, safety or reliability; we buy it because of TOYOTA. Simply saying, people of Pakistan trust TOYOTA to a degree that if TOYOTA launches a cart, people will buy it without hesitation. Availability of cars all over the country, less maintenance expenses, resale value and status representation are some values that are helping TOYOTA to build such a long lasting relationship with its customers.
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