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Replica of the Toyota Model AA, the first production model of Toyota in 1936
Organizations are increasingly interested in retaining existing customers while targeting non-customers; measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organization's products. Because satisfaction is basically a psychological state, care should be taken in the effort of quantitative measurement, although a large quantity of research in this area has recently been developed. Work done by Berry, Brodeur between 1990 and 1998 defined ten 'Quality Values' which influence satisfaction behavior, further expanded by Berry in 2002 and known as the ten domains of satisfaction. These ten domains of satisfaction include: Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Interdepartmental Teamwork, Front line Service Behaviors, Commitment to the Customer and Innovation. These factors are emphasized for continuous improvement and organizational change measurement and are most often utilized to develop the architecture for satisfaction measurement as an integrated model. Work done by Parasuraman, Zeithaml and Berry between 1985 and 1988 provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. This provides the measurer
with a satisfaction "gap" which is objective and quantitative in nature. Work done by Cronin and Taylor propose the "confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures (perception and expectation of performance) into a single measurement of performance
according to expectation. According to Garbrand, customer satisfaction equals perception of performance divided by expectation of performance. The usual measures of customer satisfaction involve a survey with a set of statements using a Likert Technique or scale. The customer is asked to evaluate each statement and in term of their perception and expectation of the performance of the organisation being measured. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.
“Customer satisfaction, a business term, is a measure of how products and services
supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard.”
Customer Satisfaction in 7 Steps
It's a well known fact that no business can exist without customers. In the business of Website design, it's important to work closely with your customers to make sure the site or system you create for them is as close to their requirements as you can manage. Because it's critical that you form a close working relationship with your client, customer service is of vital importance. What follows are a selection of tips that will make your clients feel valued, wanted and loved.
1. Encourage Face-to-Face Dealings
This is the most daunting and downright scary part of interacting with a customer. If you're not used to this sort of thing it can be a pretty nerve-wracking experience. Rest assured, though, it does get easier over time. It's important to meet your customers face to face at least once or even twice during the course of a project.
My experience has shown that a client finds it easier to relate to and work with someone they've actually met in person, rather than a voice on the phone or someone typing into an email or messenger program. When you do meet them, be calm, confident and above all, take time to ask them what they need. I believe that if a potential client spends over half the meeting doing the talking, you're well on your way to a sale.
2. Respond to Messages Promptly & Keep Your Clients Informed
This goes without saying really. We all know how annoying it is to wait days for a response to an email or phone call. It might not always be practical to deal with all customers' queries within the space of a few hours, but at least email or call them back and let them know you've received their message and you'll contact them about it as soon as possible. Even if you're not able to solve a problem right away, let the customer know you're working on it. A good example of this is my Web host. They've had some trouble with server hardware which has caused a fair bit of downtime lately. At every step along the way I was emailed and told exactly what was going on, why things were going wrong, and how long it would be before they were working again. They also apologised repeatedly, which was nice. Now if they server had just gone down with no explanation I think I'd have been pretty annoyed and may have moved my business elsewhere. But because they took time to keep me informed, it didn't seem so bad, and I at least knew they were doing something about the problems. That to me is a prime example of customer service.
3. Be Friendly and Approachable
A fellow SitePointer once told me that you can hear a smile through the phone. This is very true. It's very important to be friendly, courteous and to make your clients feel like you're their friend and you're there to help them out. There will be times when you want to beat your clients over the head repeatedly with a blunt object - it happens to all of us. It's vital that you keep a clear head, respond to your clients' wishes as best you can, and at all times remain polite and courteous.
4. Have a Clearly-Defined Customer Service Policy
This may not be too important when you're just starting out, but a clearly defined customer service policy is going to save you a lot of time and effort in the long run. If a customer has a problem, what should they do? If the first option doesn't work, then what? Should they contact different people for billing and technical enquiries? If they're not satisfied with any aspect of your customer service, who should they tell?
There's nothing more annoying for a client than being passed from person to person, or not knowing who to turn to. So make sure your customer service policy is present on your site -- and anywhere else it may be useful.
5. Attention to Detail (also known as 'The Little Niceties')
Have you ever received a Happy Birthday email or card from a company you were a client of? Have you ever had a personalised sign-up confirmation email for a service that you could tell was typed from scratch? These little niceties can be time consuming and aren't always cost effective, but remember to do them. Even if it's as small as sending a Happy Holidays email to all your customers, it's something. It shows you care; it shows there are real people on the other end of that screen or telephone; and most importantly, it makes the customer feel welcomed, wanted and valued.
6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out
Sometimes this is easier said than done! However, achieving this supreme level of understanding with your clients will do wonders for your working relationship. Take this as an example: you're working on the front-end for your client's exciting new ecommerce endeavour. You have all the images, originals and files backed up on your desktop computer and the site is going really well. During a meeting with your client he/she happens to mention a hard-copy brochure their internal marketing people are developing. As if by magic, a couple of weeks later a CD-ROM arrives on their doorstep complete with high resolution versions of all the images you've used on the site. A note accompanies it which reads: "Hi, you mentioned a hard-copy brochure you were working on and I wanted to provide you with large-scale copies of the graphics I've used on the site. Hopefully you'll be able to make use of some in your brochure." Your client is heartily impressed, and remarks to his colleagues and friends how very helpful and considerate his Web designers are. Meanwhile, in your office, you lay back in your chair drinking your 7th cup of coffee that morning, safe in the knowledge this happy customer will send several referrals your way.
7. Honour Your Promises
The most common example here is project delivery dates. Heskett. The purpose of this article is to support the assertion of the customer satisfaction and employee satisfaction connection and to illustrate Digital’s approach towards acting on this connection. and Leonard A.It's possible this is the most important point in this article. Clients don't like to be disappointed. deliver. Sometimes. Jr. members of the Harvard Business School faculty and service-management interest group. Loveman. While there are a number of studies which link customer satisfaction with profit. or you might miss a deadline through no fault of your own. “Putting the Service-Profit Chain to Work” by James L. Gary W. and their continued success is sustained. like any aspect of business. Digital became interested in this connection in 1994. Schlesinger. Earl Sasser. something may not get done. What would you want from your business if you were the client? How would you want to be treated? Treat your customers like your friends and they'll always come back Employee Satisfaction + Customer Satisfaction = Sustained Profitability “When companies put employees and customers first. an internal study of customer satisfaction. their employees are satisfied. is a practiced art that takes time and effort to master. W. The simple message: when you promise something. their profits increase. there are few studies which add employee satisfaction into the profit formula. Projects can be late. Based on this interest. . Thomas O. In this case a quick apology and assurance it'll be ready ASAP wouldn't go amiss. All you need to do to achieve this is to stop and switch roles with the customer. technology can fail and sub-contractors don't always deliver on time. Jones. employee satisfaction and operating measures was conducted. Conclusion Customer service.” This is the conclusion of a recent Harvard Business Review article. their customers are loyal.
and productivity on “the value of products and services delivered so that managers can build customer satisfaction.When describing the service profit chain. and MCI.” The tool used to examine the relationship between service and profit is called the Service-Profit Chain. focus on the impact of employee satisfaction. .” The authors note. The techniques used. USAA. Taco Bell. customer loyalty and employee satisfaction. Southwest Airlines. The links in the chain are as follows: • Profit and growth are stimulated primarily by customer loyalty. They stress that the correlation of putting employees and customers first with profits has necessitated new ways of managing and measuring success..the lifetime value of a loyal customer can be astronomical. the authors discuss the experience and success of companies that include Banc One. Service Master. The Service-Profit Chain “The service-profit chain establishes relationships between profitability. loyalty. Intuit Corporation. especially when referrals are added to the economics of customer retention and repeat purchases of related products. loyalty and productivity.. loyalty and assess the corresponding impact on profitability and growth. “.
“Tie the Corporate Knot: Gaining Complete Customer Commitment. Customer commitment may develop at two tiers: strategic and organizational. understandable. we are more likely to act on the information and visit the restaurant. The strategic tier includes products . when we hear from many people whose opinions we value that a restaurant offers good food or services. “Psychologists have identified two major principles that help determine how individuals develop commitment: information and behavior.” Building Commitment through Employee and Customer Engagement Practices Dr. they are more apt to take action that demonstrates commitment to the firm.” makes a strong point of connecting customer satisfaction and employee satisfaction.• Loyalty is a direct result of customer satisfaction. • Value is created by satisfied. in turn. Providing credible information is a first principle of creating commitment. Complete customer commitment flows from the same two principles of information and behavior. For example. Information does not sustain commitment without the second principle. When customers receive more information about the firm. they engage in activities consistent with the information. and credible information. results primarily from high-quality support services and policies that enable employees to deliver results to customers. When individuals have access to extensive. behavior. • Employee satisfaction. loyal and productive employees. • Satisfaction is largely influenced by the value of services provided to customers. David Ulrich in his article.
“Effective measurement. can’t take the place of having a solid core product or service to begin with. .. Creating unity with customers through human resource practices ensures complete customer commitment because customers receive information and participation not only on strategic activities. no company can assess its progress or adjust to changes in customer expectations”... where firms build commitment by sharing information about how products have been adapted to meet customer criteria and by encouraging customer is to participate in the design and delivery of products.. writes.” “Market-In and Product-Out Measures” It was used as part of the Product Quality Taskforce report issued in 1994 within Digital Equipment Corporation. Partial customer commitment focuses exclusively on the strategic tier.but. William Davidow from Total Customer Service: The Ultimate Weapon.. It reflects the relationship of the “Market-In” versus “Product-Out” measures. but on organizational ones as well.. nor is it a substitute for strategy.and services. The organizational tier includes firm practices that translate strategies into action. The concept of Market-In rather than Product-Out is the basis of one of the four revolutions in management thinking taught by the Center for Quality of Management..lacking good measures.
Market-In and Product-Out Measures .
the trucks had only one headlight on the center of the hood. Toyota Motor Co. was established (which lasted until July 1982). During the Pacific War the company was dedicated to truck production for the Imperial Army.REVIEW OF LITERATURE Replica of the Toyota Model AA. Soon thereafter. Although the founding family name is Toyoda. Fortunately for Toyota. which was used in the first Model A1 passenger car in May 1935 and the G1 truck in August 1935. Although the Toyota Group is most well known today for its cars. the war ended shortly before a scheduled allied bombing run on the Toyota factories in Aichi. In April 1956 the Toyopet dealer chain was established. Commercial passenger car production started in 1947 with the model SA. where eight is regarded as a lucky number. the first production model of Toyota in 1936 The story of Toyota Motor Corporation began in September 1933 when Toyoda Automatic Loom created a new division devoted to the production of automobiles under the direction of the founder's son. and eight is the number of strokes it takes to write Toyota in Katakana. military trucks were kept as simple as possible. the division produced its first Type A Engine in 1934. of course). the company name was changed to: • • • Signify the separation of the founders' work life from home life. Because of severe shortages in Japan. Kiichiro Toyoda. and electric sewing machines which are available worldwide. it is still in the textile business and still makes automatic looms (fully computerized. and Give the company an auspicious beginning. In 1950 a separate sales company Toyota Motor Sales Co. Toyota is considered luckier than Toyoda in Japan. Production of the Model AA passenger car started in 1936. . was established as an independent company in 1937. For example. Simplify the pronunciation.
bottom customer satisfaction .Above diagram show the financial comparison of top vs.
Japan .COMPANY PROFILE The Headquarters of Toyota in Toyota City.
Indonesia. including its most popular model. manufacturing or assembling vehicles for local markets. Australia. Canada. Turkey. Cars from these plants are often exported to other countries. Toyota also builds and sells cars in China in a joint venture with Tianjin Xiali. France. when it switched to importing cars from Japan and Australia. South Africa. the Corolla. Argentina and Czech Republic. Toyota has manufacturing or assembly plants in the United States. Board of directors Chairman and Representative Director Vice Chairman and Representative Director President and Representative Director Executive Vice President and Representative Director Fujio Cho Katsuhiro Nakagawa Katsuaki Watanabe Tokuichi Uranishi Kazuo Okamoto Kyoji Sasazu Mitsuo Kinoshita Takeshi Uchiyamada Masatami Takimoto Akio Toyoda Senior Managing Director Yukitoshi Funo Takeshi Suzuki Atsushi Niimi Hiroshi Takada . Brazil.ASSEMBLY PLANTS OVER THE WORLD Toyota has factories all over the world. and more recently India. Poland. Toyota New Zealand assembled vehicles until 1998. the United Kingdom.
while in the United States. Toyota was engaged in a variety of projects designed to solidify its foundations while continuing to grow. a key vehicle in Toyota’s North American lineup.On the product front. In November.In manufacturing. Inc. emphasizing the importance of this best-selling car. In Japan. Lexus launched its new flagship model. several new projects were started around the world. Toyota Motor Kyushu. the Kentucky plant. which in October celebrated 20 years of production. began full-scale operations at its engine factory. and the new global Camry went on sale.Teiji Tachibana Shinichi Sasaki Akira Okabe Yoichiro Ichimaru Shoji Ikawa Koichi Ina Takeshi Yoshida Shinzo Kobuki Akira Sasaki Hiroshi Kawakami Tadashi Arashima Mamoru Furuhashi Satoshi Ozawa Honorary Chairman Senior Advisor Shoichiro Toyoda Hiroshi Okuda DETAIL STUDY OF TOYOTA In 2006. In May. In Japan. manufacture of the Camry began in Guangzhou. the LS. a new Corolla range was introduced. started manufacturing the first Toyota hybrid vehicle to be made in North America. while . the Texas plant began producing the new Tundra truck. the Camry Hybrid. China.
increased its manufacturing capacity. In addition. Toyota established the North American Production Center in the U. 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. Corporate Data .” and in accordance with the infrastructure and customer needs of each region. following the establishment of the Asia Pacific Global Production Center in Thailand in August 2005. In R&D. in February. safety and energy.. Toyota will continue to promote efforts to develop environmentally friendly technology and vehicles. with trainees passing on what they learn to team members on their return to their plants. Established as branches of the Global Production Center in Japan. In human resources development. The centers educate trainers for local manufacturing plants in all regions. and the European Global Production Center in the United Kingdom in March. at the right time.Toyota Motor Tohoku Co. in 2007 Toyota plans to introduce a flex fuel vehicle* in the Brazilian market that will run on 100% bio-ethanol fuel. as part of Toyota’s efforts to respond to the diversification of energy. based on the philosophy of providing “the right car. From this point on. in the right place. Ltd. and has worked on R&D relating to plug-in hybrid. It made a special effort in the area of the environment by expanding its lineup of hybrid vehicles. Toyota focused its efforts on three key areas: environment.S.
Nakamura-ku.Company Name Head Office Toyota Motor Corporation 1 Toyota-Cho. Tokyo 112-8701. Respect the culture and customs of every nation and contribute to economic and social development through corporate activities in the communities. 1937 Establishment Since its foundation. Japan Phone: (03)3817-7111 Nagoya Office 4-7-1 Meieki. Create and develop advanced technologies and provide outstanding products and services that fulfill the needs of customers worldwide. Aichi Prefecture 471-8571. Dedicate ourselves to providing clean and safe products and to enhancing the quality of life everywhere through all our activities. Nagoya City. Toyota City. . 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. Bunkyo-ku. Foster a corporate culture that enhances individual creativity and teamwork value. Aichi Prefecture 450-8711. Japan Phone: (0565)28-2121 Tokyo Head Office 1-4-18 Koraku. we will reinforce our measures designed to return to our core principle. On the occasion of Toyota’s 70th anniversary. Japan Phone: (052)552-2111 August 28. 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. 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.
inquisitiveness and pursuit of improvement. long-term growth and mutual benefits. and show gratitude for things great and small in thought and deed. in faithfully fulfilling your duties. Be at the vanguard of the times through endless creativity. Toyota Percepts Be contributive to the development and welfare of the country by working together. Pursue growth in harmony with the global community through innovative management. Work with business partners in research and creation to achieve stable. Be practical and avoid frivolity. while keeping ourselves open to new partnerships. Be kind and generous.while honoring mutual trust and respect between labor and management. Locations of Toyota Facilities . Be reverent. homelike atmosphere. regardless of position. strive to create a warm.
Toyota Manufacturing Subsidiaries and Affiliates .
Ipsum. SIENTA Dyna.. Estima Hybrid. Land Cruiser. Toyota Industries Corp.. bB. Porte." Toyota aims to communicate its support for athletes who. continually push themselves further in pursuit of the ultimate goal. Probox. Corolla Fielder."Beyond Limits. Isis. Through the sponsorship and a global advertising campaign with the tagline. Townace. Voxy. Start of operations Harrier. Passo. Corolla hatchbacks Gifu Auto Body Industry Hiace Co. Belta. Ltd. Ltd. Scion xB.. Toyota Auto Body Co. Liteace. the Official Partner to the 11th IAAF World Championships in Athletics. LX470 Century. SC. Kanto Auto Works.. Harrier Hybrid. Alphard. ES Toyota Motor Hokkaido. Ltd.Ltd. Coaster. Kluger. Daihatsu Motor. Crown. Prius. drivetrain parts. Succeed. RAV4 Toyota continued its support of the ideals and spirit embodied in athletics by becoming. BLADE Raum. Kluger Hybrid. Ltd. Alphard Hybrid. held in Osaka. Ltd. aluminum wheels. Ltd. Toyota Motor Tohoku Co. Inc.Co. Transmissions. August 25th-September 2nd. Townace. for the third time since 2003. Hilux Surf Vitz. Toyoace. Japan. Corolla Spacio. Central Motor Co. Noah. Corolla Axio. Liteace. Regiusace.Toyota also supported a program to encourage new world records for women's events by becoming the official women's bib sponsor . FJ Cruiser. A part from providing a fleet of 220 cars for use as official vehicles at this year's championships. Inc. like Toyota. Estima. transfers. Auris.Main products Toyota Motor Kyushu. Rush. IS. etc. Hino Motors.. Mechanical and electronic parts Hiace. MR-S.
held May 31st-June 3rd in the archipelago's central islands. The introduction of the two models in Brazil. (TDB) launched Toyota's first-ever flex fuel vehicle (FFV). given the overwhelming response from the children and parents who have so far participated. further boosting the popularity of IMVs in the market." IMC looks to expand the program to other schools in Karachi and later to other cities. Island Adventure Members of the Philippine motoring press had a wet and wild time at the Toyota Road Trek 3. at a line-off ceremony at its Indaiatuba Plant in São Paulo on May 29th. Toyota accounted for almost 33. This year. Fortuner and Hilux vehicles. Twenty schools in Karachi and around 18. the annual road trip is conducted by Toyota Motor Philippines Corp. where bioethanol is widely used as fuel and FFVs represent 83% of newly registered vehicles in the market. which is part of IMC's comprehensive corporate social responsibility initiative with the slogan. to demonstrate the toughness and versatility of its IMVs. firmly demonstrates Toyota's belief in listening to its customers. . ethanol or any combination of the two.000 children have already benefited from the program. In the first semester of the year. A Way to Learn Road safety Dedicated to promoting activities that help minimize traffic accidents in Pakistan. Indus Motor Company Limited (IMC) in January launched a Toyota School Road Safety Program. the locally produced Corolla Flex and Corolla Fielder Flex are the first marketed Toyota models that can run on 100% bioethanol. Bringing media representatives to a variety of well-known destinations across the country.Toyota’s First FFV Toyota do Brasil LTDA. water-related activities made it a truly challenging and fun trip that encouraged teamwork. camaraderie and friendship among all attendees. "Concern Beyond Cars. Through music concerts.000 of the more than one million vehicles sold in Brazil during that period. skits by clowns and quizzes in schools. enabling them to fully test the exceptional capabilities of the Innova. the pilot program aims to educate children about road safety in a fun and memorable way. a vehicle which runs on gasoline. the event took over 40 participants on an islandhopping adventure. A series of competitive. The event was prominently featured in major newspapers and magazines. Representing Toyota's commitment to developing environmental technologies.
375(SE) $33. They are focusing on the very segment of the market not only particular segment.875 $19.Main Report Analysis Marketing Strategies of Toyota Products: Avalon Camry Camry Salora Corolla Matrix Prius 4runner Highrunner Land Cruiser Sequoia Sienna Price:As far as pricing strategy of Toyota is concerned.815 $22. Basically they are focusing on official and business class people Product Line Avalon Camry $26.545(LE) $31.795(XLE) .445(standard) $28.625 $18.075 $20.
725 $27. Each of the three options are considered within the context of two aspects of the competitive environment: Sources of competitive advantage .530 $14.625 $56.625 $21. or are they the lowest cost producer in an industry? Competitive scope of the market .590 $23.110 $21. They outline the three main strategic options open to organization that wish to achieve a sustainable competitive advantage.820 $23.635 $34.are the products differentiated in any way. or does it focus on a very narrow.215 $19.942 $17.Michael Porter (1980) Generic strategies were used initially in the early 1980s.025 $15.Camry Salora Corolla Matrix Prius 4runner Highrunner Land Cruiser Sequoia Sienna $19.780 Generic Strategies .115 $32.050 $16.100 $26. niche market? .does the company target a wide market. and seem to be even more popular today.005 $15.405 $15.
such as Toyota. Toyota differentiates its product and service. Where an organization can afford neither a wide scope cost leadership nor a wide scope differentiation strategy. Focus or Niche strategy The focus strategy is also known as a 'niche' strategy. labor is recruited and trained to deliver the lowest possible costs of production.' However. low cost does not always lead to low price. Differentiation. These costs must be offset by the increase in revenue generated by sales. Some organization. A company could use either a cost focus or a differentiation focus. Cost Leadership The low cost leader in any market gains competitive advantage from being able to many to produce at the lowest cost. Costs must be recovered. There is also the chance that any differentiation could be copied by competitors. The differentiating organization will incur additional costs in creating their competitive advantage. 'cost advantage' is the focus. generating a higher than average price. Focus. exploiting the benefits of a bigger margin than competitors. defined segment of a market. 1. For example. Costs are shaved off every element of the value chain. Factories are built and maintained. specialist niches could disappear in . and 3. are very good not only at producing high quality autos at a low price. With a cost focus a firm aims at being the lowest cost producer in that niche or segment. Cost leadership. a niche strategy could be more suitable. The benefits of differentiation require producers to segment markets in order to target goods and services at specific segments. Differentiation Differentiated goods and services satisfy the needs of customers through a sustainable competitive advantage. Here an organization focuses effort and resources on a narrow. Products tend to be 'no frills.The generic strategies are: 1. but have the brand and marketing skills to use a premium pricing policy. With a differentiation focus a firm creates competitive advantage through differentiation within the niche or segment. This allows companies to desensitize prices and focus on value that generates a comparatively higher price and a better margin. 2. 3. Producers could price at competitive parity. Therefore there is always an incentive to innovated and continuously improve. A niche strategy is often used by smaller firms. Small. There are potentially problems with the niche approach. Competitive advantage is generated specifically for the niche. 2.
the change of leadership in Toyota's Indian division is important. "Competition is intense in the Indian market for domestic and foreign companies.2 million units by 2005." "In the last one year. the company has evolved a new strategy to capture 15 per cent market share in the Indian automotive segment. Toyota Motor Corporation. We will continue to meet the ever-challenging customer expectations and will come out with innovative marketing strategies. indicating a more important role for the company's manufacturing base in Bangalore. Atsushi Toyoshima.. said. The multi utility vehicle segment has also grown at double-digit levels. the Toyota Quails notched sales of 25." Yoshio Ishizaka. Effective from January 1. Second. "Bangalore is an ideal location to meet all of Toyota's needs." Mr. Toyoshima said According to the managing director of Toyota Kirloskar Motor. Executive Vice-President. Toyota has taken many initiatives. which has made Innova the most successful product. including auto components. Last year. Cost focus is unachievable with an industry depending upon economies of scale e. Toyota's strategy to corner a significant chunk of the Indian market involves "superior product offering and dedicated technology". First.g. over the last five years. Toyota sold 3. the decision to introduce Innova here (India) was based on three factors.8 million units overseas. The Indian market is important for Toyota with potential to aid its growth strategy. Their dealers have also worked hard to provide their high levels of customer support. the Indian consumer wants to take his vehicle for long drives . In this context.segment (between Rs 5 lakh to Rs 10 lakh) of the car market has grown by 20 per cent every year. manufacturing six million vehicles at 56 plants in 25 countries. Innova has successfully become a category creator. the C. telecommunications. With a change of guard at Toyota Kirloskar Motor Ltd. In India. Atsushi Toyoshima has been appointed Managing Director of the company. replacing Sachio Yamazaki. the Indian market would touch annual sales of 1. he said.000 units since its launch last year. According to analysts. Customer satisfaction Toyota's believes in putting the customer first and aims to provide the best levels of customer satisfaction as its main marketing strategy.the long term. with an improving lifestyle and better roads.
to seek attributes like greater interior space and overloading ability. We have introduced or demonstrated new power train technologies in the past year that will make Toyotas run cleaner and greener than ever. Growth of Toyota Lasting growth for Toyota will depend on aligning our interests with the larger interests of customers and the community. it actually could save money for car owners. . Photos and text on the following pages introduce some of the technologies we are developing to position Toyota as an environmental leader Priorities for Toyota in the 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. Toyota Kirloskar Motor has described it as the first three-row seating passenger car in the Indian market. We must be a company where people think seriously about the role and responsibility of their company in the world. So.with friends and family. That is when we will put a hybrid-electric passenger car onto the market in Japan. as we globalize our operations... there is a latent desire of customers. as well as improving vehicular safety. By the end of 1997. we will introduce the world's first new-energy transport that is commercially competitive with conventional automobiles. Third. Innova brings together the space and fuel economy of an MPV with the style. Another way to align our interests with the larger interests of the community is through technology. the value of its potential fuel savings could prove greater than its cost premium over conventional vehicles. It is twice as fuel-efficient as conventionally powered vehicles of comparable size and performance. Equally important. Survival and growth in our industry will hinge on developing technologies for reducing environmental impact of our products and operations. agility and power of a sedan. Our hybrid-electric car will have a gasoline engine to generate electricity or provide supplementary power to the wheels. Those technologies include. including those owning MPVs. Our economic and industrial contribution in each region grows. for example. while passenger car buyers look for better styling and improved riding comfort.
4 percent U. Japan's largest automaker. Toyota. which it can consider to launch in the Indian market. director (marketing). "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. 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.• • • • a direct-injection system that makes gasoline engines more efficient hybrid-electric systems that double fuel efficiency and reduce noxious emissions pure electric. T Ino.S. Toyota is very much interested in launching a small car here in the segment currently dominated by Maruti Suzuki and Hyundai. grabbed more U. 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. and Passo. 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. in early November and it was less than one share point behind General Motors Corp. Toyota plans to enter small car segment in India World’s second largest automaker wants to get offensive in the Indian domestic auto market. Platz. They also plan to invest around Rs 130 crores during the current year to enhance efficiency. Some of these are Vios. retail market share a year earlier. had a 15. Tata also has a decent presence in the market with their Indica range of diesel vehicles. Toyota has a variety of interesting models in its global lineup. retail market share than Ford Motor Co.. which suits its requirement. They have had an incredible success with their stopped Qualis model and are selling Toyota Innova in large numbers. . Toyota also plans to open up another manufacturing plant here in India and is currently looking for a location.S.
In 1986. which enabled Hyundai Motor Company to have a large scale production base.S." possible. In just ten years. in 1976 Hyundai began to export to the world market. which . the "Pony. Hyundai Motor Company began its fledgling efforts at automobile manufacturing by entering into a technology transfer agreement with Ford of Great Britain. we entered the U. and the founding of HM Canadian Corporation. all of which made the production of our first model car.COMPETITORS • Hyundai Motors India Limited (HMIL) A decade after the Korean War and during the period of reconstruction. receiving design and styling from Ital Design of Italy. Upon expansion of our Ulsan plant. market establishing the Excel as a new contender among small cars and promoting the image of the Korean automobile industry. and assembling technology from both England and Japan.
established Hyundai throughout North America. to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. This was due not only to their undisputed leadership in small cars but also to their commitment to actively bring to MUL contemporary technology and Japanese management practices (which had catapulted Japan over USA to the status of the top auto manufacturing country in the world). No other automobile company can boast of these figures over such a short time span. We also poured our efforts in creating concept cars such as the HCD-I. breaking records in a short span of time. Production of fuel-efficient vehicles to conserve scarce resources. we produced a record 10 million cars and exported over 4 million. followed by the HCD-II and III. constantly keeping in mind its customer-oriented mottoes: "Customer Satisfaction" and "Create Value for Customers. . Suzuki Motor Company was chosen from seven prospective partners worldwide. and high technology hybrid cars that will bear fruit in the future with their low pollution emissions. and environmentally-friendly recyclable components. A license and a Joint Venture agreement were signed between Govt of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982. Hyundai Motor Company is committed to its growth as a mature company. electric cars. From Pony to Equus." • Maruti Udyog Limited (MUL) It was established in Feb 1981 through an Act of Parliament. safety features. The objectives of MUL then were: Modernization of the Indian Automobile Industry. Production of large number of motor vehicles which was necessary for economic growth.
These are as follows. To serve the customer through channel of distribution To face the keen competition • • . • 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).Research Methodology Objective of the 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.
Secondary source • • • • Balance sheet of the company Company website Books Internet Statistical and Presentation Tools Used SECONDARY DATA is represented: In the form of tables. By the way of BAR GRAPHS and SUBDIVIDED BAR GRAPHS (Graphical presentation). .• • • • 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 Type of data This project depends upon the primary as well as secondary sources which are as follows.
£5.59 million units in the same period. In 2003 Toyota knocked its rivals Ford into third spot. It is possible that the information supplied by the informants may be incorrect. was difficult to presume.78 million units. the study may lack accuracy.85bn).Limitations of the Study Since the road to improvement is never ending.8% to 1.17 trillion yen ($11bn. while sales were 7. Some of them are as follows: Because of illiteracy. to become the World's second largest carmaker with 6.3% higher at 18. so this study also suffers from certain limitations. against the worldwide motor industry trend. The company is still behind rivals General Motors with 8. targeting and positioning in a number of countries.55 trillion yen. it was a time consuming method in which continuous guidance was required. So. This is an example of very focused segmentation. Net profits rose 0. Its strong industry position is based . Cooperation on the part of informants. Commentators argue that this is because the company has the right mix of products for the markets that it serves. in some cases. DATA ANALYSIS SWOT Analysis Toyota Strengths New investment by Toyota in factories in the US and China saw 2005 profits rise. Questionnaire method involves some uncertainty of response.
Rocketing oil prices have seen sales of the new hybrid vehicles increase. If on the other hand the car market experiences an upturn. The company has launched its new Aygo. then the company may miss out on potential sales due to under capacity i. Perhaps that is why the company is beginning to shift its attentions to the emerging Chinese market. The company needs to keep producing cars in order to retain its operational efficiency. it takes time to accommodate. Threats .upon a number of factors including a diversified product range. 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. Therefore it is exposed to fluctuating economic and political conditions those markets. The vehicle itself is a unique convertible. Both are based upon advance technologies developed by the organisation. The company makes a large range of vehicles for both private customers and commercial organisations. Total Quality Management). Toyota has also sold on its technology to other motor manufacturers. from the small Yaris to large trucks. Such moves can only firm up Toyota's interest and investment in hybrid R&D. the company could see over capapacity.e. Toyota markets most of its products in the US and in Japan. as well as the high costs of training and retaining labour. and Toyota has it Prius. So if the car market experiences a down turn.g. Its brand is a household name. Car plants represent a huge investment in expensive fixed costs. Opportunities Lexus and Toyota now have a reputation for manufacturing environmentally friendly vehicles. Weaknesses Being big has its own problems. Toyota is to target the 'urban youth' market. for example Ford has bought into the technology for its new Explorer SUV Hybrid. Movements in exchange rates could see the already narrow margins in the car market being reduced. 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. This is a typical problem with high volume car manufacturing. with models extending at their rear! The narrow segment is notorious for it narrow margins and difficulties for branding. The company also maximizes profit through efficient manufacturing approaches (e. highly targeted marketing and a commitment to lean manufacturing and quality. Lexus has RX 400h hybrid. The company uses marketing techniques to identify and satisfy customer needs.
These economic factors are potential threats for Toyota . The company is also exposed to any movement in the price of raw materials such as rubber. Europe and Australia. steel and fuel. As with any car manufacturer. Toyota's believes in putting the customer first and aims to provide the best levels of customer satisfaction as its main marketing strategy. Toyota did not give details of how much the recall would cost.g. Findings The strong industry position of toyota is based upon a number of factors including a diversified product range. Total Quality Management). The key economies in the Pacific. The company(Toyota) uses marketing techniques to identify and satisfy customer needs. highly targeted marketing and a commitment to lean manufacturing and quality. Their dealers have also worked hard to provide their high levels of customer support.00 sports utility vehicles and pick up trucks due to faulty front suspension systems. The majority of affected vehicles were sold in the US. Its brand is a household name. The company also maximizes profit through efficient manufacturing approaches (e. the US and Europe also experience slow downs. Competition is increasing almost daily. South Korea and new plants in Eastern Europe. Toyota faces tremendous competitive rivalry in the car market. Toyota is to target the 'urban youth' market. with new entrants coming into the market from China. In 2005 the company had to recall 880. The company has launched its new Aygo.Product recalls are always a problem for vehicle manufacturers." . 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. while the rest were sold in Japan.
While Suzuki-Maruti. GM and Ford are fighting each other for the sixth position. The Indian market is important for Toyota with potential to aid its growth strategy. Competition is intense in the Indian market for domestic and foreign companies. They have had an incredible success with their stopped Qualis model and are selling Toyota Innova in large numbers. Honda. Hyundai. Tata Motors. FINDINGS BASED ON QUESTIONNAIRE . Mahindra & Mahindra and Toyota command the top five positions in the domestic passenger vehicle segment.
OW NERS OF TOYOTA YES 24% NO 76% YES NO INFERENCE: 24% of the respondents were owners of Honda City .
CUSTOMER SATISFACTION 17% SATISFIED DISSATISFIED 83% 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. .
INTERNET .PREFERENCES OF BUYING A NEW CAR 40 30 20 10 0 TOYOTA HYUNDAI MARUTI HONDA INFERENCE: 18% of the respondents would prefer to buy a Toyota car against its competitors. 37% of respondents preferred for Maruti. INFORMATION ABOUT TOYOTA 12% 20% 55% 13% DEALERS PRINT MEDIA T. 21% and 24% respectively preferred for Hyundai & Honda.V.
F UE L E F F IC IE NC Y O F T O YO T A 100 80 60 40 20 0 78 22 Y ES NO INFERENCE: 78% of the respondents felt that Toyota has the most fuel efficiency. and Dealers for providing the information. . While 22% felt it isn’t the most fuel efficient.V.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.
. 10% thought it was very good and 12% felt satisfactory about the features.FEATURES OF TOYOTA 12% 8% GOOD 10% VERY GOOD NOT SO GOOD 70% SATISFACTORY INFERENCE: • 70% of the respondents felt that the features of the Toyota are good. • While 8% of respondents thought it was not so good.
INTERIORS OF TOYOTA 3% 16% 7% GOOD VERY GOOD NOT SO GOOD 74% SATISFACTORY .FEATURES THAT BEST DESCRIBES TOYOTA 40 30 20 10 0 HANDLING FUEL EFFICIENCY DESIGN COM FORT 15 18 38 29 INFERENCE: Toyota is best known for its design & comfort. Then comes Handling and Fuel Efficiency.
WHAT SHOULD BE DONE TO IMPROVE TOYOTA 13% 15% 72% MAKE IT MORE AFFORDABLE CHEAPER SPARE PARTS MORE SERVICE STATIONS INFERENCE: If Toyota is made more affordable then it would win more customers. . • 16% said it was very good.INFERENCE: • The interiors of Toyota are very good according to 74% of the respondents. 15% and 13% respectively want cheaper spare parts and more service stations. 7% said it was satisfactory and 3% felt it was not so good. a theory which was backed by 72% of the respondents.
10% wanted it to have a retro look and 15% wanted to give it a concept car look. . 15% of the respondents thought it should be made more sporty.WHAT SHOULD BE DONE TO MAKE TOYOTA THE BEST CAR 15 10 15 60 MAKE IT MORE FUTURISTIC MAKE IT MORE SPORTY GIVE IT A RETRO LOOK GIVE IT A CONCEPT CAR LOOK 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% were unhappy with Toyota due to poor after sales services provided by them. .HAPPY WITH AFTER SALES SERVICES PROVIDED BY TOYOTA 15% HAPPY UNHAPPY 85% INFERENCE: Overall 85% of the respondents were happy with the after sales service provided by Toyota.
QUESTIONNAIRE FOR CONSUMER A) NAME B) ADDRESS C) CONTACT NUMBER D) INCOME GROUP _________15. THEN ARE YOU HAPPY WITH THEIR CHARGES AND TIMELY DELIVERY THEY WERE OFFERING? (i)HAPPY (ii) UNHAPPY .000-25.000 _________Above 75. 000-50. HOW SATISFIED ARE YOU WITH THE SERVICES OFFERED BY TOYOTA ? (i)SATISFIED (ii) DISSATISFIED 3. THEN WHICH ONE? (i)TOYOTA (ii) HYUNDAI (iii) MARUTI 2.000 _________50.000-75.000 1. DO YOU OWN A CAR? (i)YES (ii) NO IF YES. IF SATISFIED.000 _________25.
DO YOU THINK TOYOTA (I)YES HAS THE MOST FUEL EFFICIENCY (ii) NO 7. IF GIVEN A CHOICE TO CHOOSE A CAR COMPANY. HOW DO YOU FIND THE INTERIORS OF TOYOTA ? (I)GOOD (iii)SATISFACTORY (ii) VERY GOOD (IV) NOT SO GOOD . (ii) PRINT MEDIA (iv)INTERNET 6. WHICH OF THESE QUALITIES DO YOU THINK BEST DESCRIBES TOYOTA ? (I)HANDLING (iii)DESIGN (ii) FUEL EFFICIENCY (iv) COMFORT 9. HOW DO YOU FIND THE FEATURES OF TOYOTA COMPARED TO OTHER CARS? (I)GOOD (iii)NOT SO GOOD (ii) VERY GOOD (IV) SATISFACTORY AS 8.4.V. WHICH COMPANY WOULD YOU CHOOSE? (i) TOYOTA (ii) MARUTI (iii) HYUNDAI 5. WHERE DO YOU MANAGE TO FIND INFORMATION ABOUT TOYOTA ? (I)DEALERS (iii)T.
10. 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. ACCORDING TO YOU WHAT SHOULD BE DONE TO TOYOTA ? (I) MAKE IT MORE AFFORDABLE (ii) CHEAPER SPARE PARTS (iii)MORE SERVICE STATIONS IMPROVE 11. ARE YOU HAPPY WITH THE AFTER SALES SERVICES PROVIDED BY TOYOTA ? (I)HAPPY (ii) UNHAPPY .
Conclusions & .
The exceptions were Hyundai. Competitive pricing and a better value offerings were driving the sales of most auto majors for the past few months.022 units. Incidentally. the slowdown’s effect is more visible here. Mahindra with 28.Recommendations CONCLUSION While Suzuki-Maruti. followed by Tata Motors with 70. Mahindra & Mahindra. Hyundai Motor India with 48. Hindustan Motors and Fiat. most of the car majors were able to hold on to their market shares in the April to August ’04 period. Tata Motors. Maruti Udyog (MUL).360 units. . Despite a competitive business environment.530 units and Toyota with 19. Hyundai. in the first five months of the fiscal (Apr-Aug ’04) Skoda has moved to the tenth position. which has been the market leader in the mini. since entry level and compact cars are volume segments. particularly in the higher end of the car segment. Mahindra & Mahindra and Toyota command the top five positions in the domestic passenger vehicle segment.9 lakh units. However. retains its leadership position with sales of 1. The market is slow and there are visible signs of discounting. who saw their market shares fall marginally. overtaking Italian major Fiat. compact and midsize segments. Honda.797 units. GM and Ford are fighting each other for the sixth position.
3. General Motors and Tata Motors. 5. 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. 4. The truckers’ strike and adhikmas (inauspicious period) last month affected dispatches of most car companies. 2. it was a double whammy in August ’04. This market is dominated by Maruti Suzuki and Hyundai in the Indian domestic auto market. Ford India and Toyota Kirloskar.For many automobile companies. resulting in lower sales. . Toyota should adopt an offensive marketing strategy for entering in the small car segment. RECOMMENDATION 1. The exceptions were Honda Siel Cars India. Toyota should conduct market survey in Indian market for quails in order to know the perception of Indian consumers.becaue it faces the problem of over and under capacity in case of upturn and downturn of the market. Toyota should adopt the defensive marketing strategy because as being the second largest car producer in the international market. Toyota must plan out an ideal marketing producing capacity . including Maruti Udyog.
C. Chabra . N. Gupta Web Sites: Google search engine www.toyota private limited. B.T.BIBLIOGRAPHY: Books referred: Marketing Management 30th editon Marketing Management 2005 Marketing Management 2006 .com .Philip Kotler .