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PARENT COMPANY

TOYOTA MOTOR CORPORATION, JAPAN

The Toyota Motor Co. Ltd was first established in 1937 as a spin-off
from Toyoda Automatic Loom Works, one of the world's leading
manufacturers of weaving machinery. The Toyoda Automatic Loom
Works was then headed by Japan's "King of Inventors" Sakichi
Toyoda. The patent rights to one of his machines had been sold to
Platt Brothers (UK) and provided the seed-money for the
development and test-building of Toyota's first automobiles.

August 1997 marked the 60th anniversary of TMC. The fledgling


company founded by Kiichiro Toyoda, Sakichi's son, has since
blossomed into the leader that it is today. In 1950 the company
experienced its one and only strike. Labor and management emerged
from this stoppage firmly committed to the principles of mutual trust
and dependence, and that corporate philosophy still guides growth
today.

Production systems were improved in the late 1950s, culminating in


the establishment of the 'Toyota Production System.' It became
known as TPS in 1970 but was established much earlier by Taiichi
Ohno. Based on the principles of Jidoka, Just-in-time and Kaizen, the
system is a major factor in the reduction of inventories and defects in
the plants of Toyota and its suppliers, and it underpins all our
operations across the World. Toyota launched its first small car (SA
Model) in 1947. Production of vehicles outside Japan began in 1959
at a small plant in Brazil, and continued with a growing network of
overseas plants. Toyota believes in localizing its operations to
provide customers with the products they need where they need
them; this philosophy builds mutually beneficial long-term
relationships with local suppliers and helps the company fulfill its
commitments to local labor.

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.

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In every community in which the company operates, Toyota strives to
be a responsible corporate citizen; close relationships with people
and organizations in the local community are essential contributors to
mutual prosperity. Across the world, Toyota participates
enthusiastically in community activities ranging from the sponsorship
of educational and cultural programmes to international exchange
and research.

Today, Toyota is the world's third largest manufacturer of


automobiles in unit sales and in 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.

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HOW IT STARTED
1918: Sakichi Toyoda establishes Toyota spinning and weaving
Co. ltd.

1926: Toyoda Automatic loom works ltd. Established.

1936: Production of model AA passenger cars begins.

1937: Toyota motor co. ltd. Established.

1962: Toyota motor co. Thailand established.

1964: Toyota Canada established.

1965: Toyota ltd. Established in United Kingdom.

1971: Toyota Deutschland established in Germany.

1972: Toyota manufacturing Australia ltd. Begins operation in


Australia.

1984: NUMMI begins operation in the US.

1992: Toyota motor manufacturing (UK) ltd. Begins operation.

1996: Toyota motor manufacturing North America established.

1997: Toyota Kirloskar motor pvt. Ltd. (TKM) established in


India.

2000: Launched Toyota quails in India.

2002: Toyota Camry launched in India.

2003: TKM launches Toyota Corolla in India.

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INDIAN ARM
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED

As a joint venture between Kirloskar Group and Toyota Motor


Corporation, Toyota Kirloskar Motor Private Limited (TKM) aims to
play a major role in the development of the automotive industry and
the creation of employment opportunities, not only through its dealer
network, but also through ancillary industries.

TKM's growth since inception can be attributed to one simple, yet


important aspect of its business philosophy - "Putting Customer
First".While managing growth, TKM has maintained its commitment
to provide quality products at a reasonable price and has made every
effort to meet changes in customer needs.

TKM firmly believes that the success of this venture depends on


providing high quality products and services to all valued customers
through the efforts of its team members.

TKM, along with its dedicated dealers and suppliers, has adopted the
"Growing Together" philosophy of its parent company TMC to create
long-term business growth. In this way, TKM aims to further
contribute to progress in the Indian automotive industry, realise
greater employement opportunities for local citizens, improve the
quality of life of the team members and promote robust economic
activity in India.

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Empowering employees.... to achieve perfection
TKM firmly believes that employees are the main source of strength
for the organisation. The human resources management in Toyota
seeks to create a corporate culture where values such as
"Continuous Improvement" and "Respect for People" are fully
reflected in all actual corporate and individual activities . The
company takes maximum care to ensure stability of employment and
strives to improve working conditions. To develop human resources
and improve the technical skills of its employees, TKM's young team
members are regularly sent to Japan, Indonesia and Taiwan for
training programs. More than 400 team members have benefited from
such programs at various Toyota plants worldwide. TKM also
believes in continuously improving its products and practices. Every
team member is encouraged to give suggestions to improve the
product, efficiency of processes or working conditions. They are also
appropriately rewarded for the same. Thus TKM seeks to progress by
empowering its employees.

Pursuing the greater good Recognition


At TKM, they look to continuously improve not only products but also
processes and service. Their obsession with perfection has been
recognized by various institutions such as JD Power and NFO, as
well as automotive publications like Overdrive, as the reason for the
success of Toyota products in India and across the globe.

Corporate social responsibilities


At TKM, every effort is made to contribute to society. A residential
school at Bidadi, reconstructed by Toyota, now houses 75 students,
mainly belonging to backward communities. In the aftermath of the
tragic earthquake in Gujarat, TKM and its dealers played a major role
in distributing food, clothing and relief in remote affected area. TKM
also takes a lead role in contributing to the community, distributing
books and bags in local school etc.

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MODE OF OPERATION

Date Of Establishment October 6, 1997

Chairman Mr. Akira Okabe

Vice Chairman Mr. Vikram S.Kirloskar


Managing Director Mr. A. Toyoshima

Mr. K. K. Swamy
Deputy MD's
Mr. Masatoshi Seki

Paid-In Capital Rs. 7 billion

Toyota Motor Corporation


(89% equity)
Shareholders
Kirloskar Group
(11% equity)

Toyota Kirloskar Motors is 100% privately owned company by Toyota


Motor Corporation and Kirloskar group holding 89% and 11% equity
shares respectively.
Toyota Kirloskar Motors is not listed in either BSE or NSE as it does
not have any public holdings.

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TKMs Vision

1. Contribute to Indian industry and economy through technology


transfer, human resource development and vehicles that meet
global standards at competitive price.
2. Contribute to the well-being and stability of team members.

Contribute to the overall growth for our business associates and the
automobile industry.

TKMs Mission

“mission is to design, manufacture and market automobiles in


India and overseas while maintaining the high quality that meets
global Toyota quality standards, to offer superior value and
excellent after-sales service. We are dedicated to providing the
highest possible level of value to customers, team members,
communities and investors in India.”

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PRODUCT
TOYOTA COROLLA - WORLD’S NO.1 BESTSELLER
The Toyota Corolla is the best selling car in the world (counting all
years). It offers peppy acceleration, agile handling, excellent fuel
economy, and a smooth, comfortable ride. For most people, the
Corolla is about as good as it needs to get.

As an added bonus, the Corolla often tops J.D. Power's reliability


ratings for small cars - beating the Civic, Focus, and Neon by a pretty
good margin. Meanwhile, the Corolla tends to best all small cars in
Consumer Reports' surveys. Last time we looked (in 2001), the
Honda Civic was down there...below average...below the Neon... why
do people buy Civics when the Corolla has a better standard engine,
nicer and quieter ride, and uncontestable quality? In India, Toyota
Corolla falls in the Premium Midsize Car Segment popularly
known as the C++ Segment.

A corolla is the outer envelope or crowning portion of a flower. (The


new Scion line is named after another flower term.)

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PRODUCT LINE OF TOYOTA COROLLA
1966
The first generation Corolla blossomed way back
in 1966 in Japan as a Toyota dream to produce a
people's car. This rear wheel drive Toyota
Corolla was an instant hit - an outstanding
compact car that coupled striking appeal with the
highest standards of performance.
1st Generation COROLLA

1970
Four years later, in 1970 a new Toyota Corolla
emerged, bringing with it a larger 1.2 litre
engine. This second generation Corolla actually
became the second best selling import car in
1970.

2nd Generation COROLLA


1974
The year 1974 saw the third generation Toyota
Corolla, a masterpiece of engineering that grew
on to become the best-selling vehicle in the
world between 1974 and 1977.

3rd Generation COROLLA

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1979
Never content with success, the Toyota dream
surged on, and 1979 saw the advent of the fourth
1984 generation Toyota Corolla, still with a rear wheel
drive.
1984 was the year that saw significant changes
in the Toyota Corolla. This fifth generation
Corolla came with a front wheel drive, and a
4th Generation COROLLA coupe version - the GT-S, with a 16-valve engine.

5th Generation COROLLA

1988
Through the years the Toyota Corolla grew in
terms of likeability and performance, and 1988
saw the arrival of the sixth generation Toyota
Corolla.

6th Generation COROLLA

1993
The seventh generation 1993 Corolla is one that
looks familiar. That's when it moved to its current
compact size. This 1993 Toyota Corolla is also
famous for picking up a whole host of awards
along the way.

7th Generation COROLLA

1998
1998 was a landmark year for the Toyota Corolla.
It saw the arrival of the eighth generation Corolla
that carried the awesome 1.8 litre engine under
its hood. And what you see before you is the
culmination of advanced styling, advanced
comfort and advanced performance - the ninth
generation Toyota Corolla.
8th Generation COROLLA

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2003
In its soul the Toyota Corolla carries a destiny -
to stand for everything that represents perfection
in the compact sedan category. A destiny that's
reflected in the 3 Crore Corollas manufactured in
over 150 countries across 14 factories, making it
the world's highest selling car.
9th Generation COROLLA
The Toyota Corolla, presently manufactured in India, is the 9th
generation state-of-art best selling sedan in the world. A few
interesting facts from its history read as follows:

1. The Corolla was born in 1966 in Japan as a rear wheel drive


compact car.

2. By 1969, it became the best selling car in Japan, a position it has


held for most of the past four decades.

3. It established itself as a world best seller between 1974 and 1977.

4. In March 1983, the Corolla led a historic achievement of 10 million


units production within a record period of 16 years since its launch.

5. In 1984, the Corolla was re-introduced as a front-wheel drive with


spacious interiors.

6. The year 1998 saw the introduction of the powerful 1.8L engine in
the Corolla.

7. The 9th generation Corolla has set a benchmark in styling, comfort


and performance in the automobile industry. The latest design was a
result of intense competition between Toyota design centres in
Toyota City, Tokyo, Europe and the United States. This was a
reinforcement of Toyota's commitment to provide the customer a truly
global vehicle

8. Today the Corolla is present in 142 countries across the world, and
is manufactured in 13 countries other than Japan.

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DISTRIBUTION NETWORK

TKM has a total strength of 52 Dealers across 38 Cities.

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The Marketing Distribution Channel of Toyota Kirloskar
Motor India, the Manufacturer of Corolla, is a Single
Level Channel depicted as under:

Manufacturer-TKM India, Bangalore

Toyota Flagship Dealer

Consumer

TRAINING OF THE DEALERS

The interface between the consumers and the company are the
Dealers. As they act as a window for the company, the company
provides extensive training to its Dealers for marketing and selling its
products. The training programs are very extensively designed to
meet the specific needs of the dealer and the area which that
particular dealer caters to.

MOTIVATING THE DEALERS

The company views the dealers in the same way as its customers or
end users. It very keenly understands the Dealers’ specific needs and
problems. It provides the dealers with all kind of possible support it
can. It also provides marketing and sales promotion assistance to its
dealers which acts as a motivator for the dealers. The dealerships
have to meet pre defined standards for Cleanliness, Appearance and
Service.

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EVALUATION OF DEALERS

The company periodically evaluates its dealers’ performance against


certain specified standards like
1.Sales 2.Inventory levels 3.Customer Delivery time 4.Customer
Satisfaction Index.
Time to time, Dealerships’ Surveys are conducted by company
officials and then rankings are given to the dealers.

“The dealers having high ranking are given incentives. The


underperformers are provided with customized counseling, training
and motivation.”

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PROMOTIONAL STRATEGIES
The Promotion for Toyota Corolla consists of a blend of activities
making its Promotion Mix. Its Promotion Mix consists of almost all the
possible techniques of Promotion used for any other product. Some
of the major elements of Promotion Mix of Toyota Corolla are listed
as under:

Advertising
Brochure
Posters/Leaflets
Print Advertisements
TV Commercials
Bill Boards
Display Signs
POP Displays
Symbol/Logo
Sales Promotion
Fairs and trade Shows
Public Relations
Annual Reports
Seminars
Charitable Donations
Community Relation
Personal Selling
Individual Sales
Corporate Sales
Sales Presentations
Fair and trade Shows
Direct Marketing
Catalogs
Mailings
Telemarketing

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Advertising
It uses many different techniques of Advertisement as a part of its
Advertising Strategy.

Most of the Print Ads of Toyota Corolla are individually targeted at


one of these factors such as Comfort, Performance, Styling, Power,
Leg Room, Design, Driving Pleasure. One most common feature of
almost all the Ads is that in every Advertisement, the fact that it is the
World’s Largest Selling Car and its presence across 160 countries is
present. This is done to because the company wants to differentiate
the product in terms of its Reliability that it is an entrusted brand of 30
Million people across the globe. The fact that it is present in 160
countries proves that it is a Global Car.

There are 6 TV Commercials of this Car in India. The Commercials


show that this Car is targeted mainly at the Indian youth and young
Executive. It has been positioned as a little sportier, which is the main
reason that it is for young people and is also like by them too.

The Brochures, Posters/Leaflets are such designed that shows that


Corolla is a car for people who demand Performance, Style, Power
and Sheer Driving Pleasure. The car being a perfect combination of
these factors makes it a huge success across its segment.

The Other Sources of Advertisement include Bill Boards, Display


Signs, POP, Displays, Symbol/Logo. The company does the
Advertising of Corolla by displaying Bill Boards and Display Signs at
various target places where it feels that prospective buyer will come
across it. At the showroom also, there are huge amount of Point Of
Purchase Displays and also Symbols/Logo which add to it.

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Sales Promotion
One of the major sources of Sales Promotion is Trade Fairs like
AUTO EXPO, MOTOR SHOW etc. The company used to take part in
these types of fairs and used it for its Sales Promotion. But now the
trend is shifting because the company thinks that if they want to
launch a product on a National Level, then there is no need for such
kind of shows as now there are various other powerful sources of
media available to them. Moreover the cost spent on these kind of
fairs was not justified. So therefore the company is now keeping away
from fairs.

Some other Sales Promotion technique used by the company is the


Festival Season Offers it introduces in the market at the time of
Diwali, New Year, Christmas, Navratri etc to boost short term sales.

Public Relations and Community Building Excercise

• Contribution to Tsunami
• Toyota Kirloskar Motor wins Best Ornamental Garden award for
its landscape
• Toyota Kirloskar signs MoU with Bangalore University for
promotion of Japanese Language
• Toyota observes earth day by supporting local schools
• Organizing Drawing/Painting Competition on ‘Me and my
Environment’ for kids from Govt. Schools.

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Personal Selling
Personal Selling largely takes place at the Dealers’ End. The way the
customer is attended depends mainly on the Dealer as he acts as an
interface between the company and the Consumer.

The various cases in which Personal Selling takes place is Individual


Sales, Corporate Sales, Sales Presentations, Fair and trade Shows.
Mostly in case of Individual Sales the Customer goes to the
showroom and takes a look at the product. There he is attended to by
the Sales Personnel of the Dealership. Sometimes the Senior Sales
Executive has to make Sales Presentation to Corporate Buyers.
Personal Selling is also practiced at Trade Fairs and Auto Shows
wherein the Company appointed Sales Personnel attend prospective
customers and also book their orders.

Direct Marketing
In the case of Direct Marketing the Company Officials directly contact
the Prospective buyers with the information available through various
sources. For example in case of Road Shows, Trade Fairs, Auto
Shows etc. Sometimes the existing customers also provide
references of prospective buyers such as their friends or relatives.

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PRICING

There’s a new segment emerging in the Indian market. It’s so new


that we haven’t thought of a name for it yet. Call it the premium mid-
size or the compact luxury class, it’s the hot new niche that sits bang
in between the Honda City-Baleno-Lancer gang and the upper crust
Accords, Camrys and Mondeos. Not long ago, it was just the Skoda
Octavia which ruled this Rs 10 lakh roost; then came the Corolla,
which knocked the Octavia off its perch with an aggressive price and
a badge that works wonders anywhere in the world.

GM India has jumped into the fray with its newly launched Chevrolet
Optra. It knows that however good the Optra may be, the only way
to combat the Toyota badge is by winning the metal-for-money fight.
The Optra undercuts both the Corolla and Octavia by a substantial
margin, but does your money go as far in this Korean-built car?
Does the Corolla’s Toyota badge come with tangible benefits that
helps justify its higher price? Or is the Czech-built Octavia the most
substantial car of this lot?

Lets see what the prices of these cars have to say:

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PRICE COMPARISON

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CHEVROLET OPTRA
List price Rs 8.2-10.1 lakh
Top
191 kph
speed
0-100kph 11.11 sec
Kpl 9.6 (overall)
For Interiors, comfort, value for
money
Against Unexciting to drive

TOYOTA COROLLA
List price Rs 9.9-12.0 lakh
Top speed 195 kph
0-100kph 9.07 sec
Kpl 12.5 (overall)
For Performance, comfort, fuel
efficiency
Against Suspension, feels built
to a price

SKODA OCTAVIA
List price Rs 10.3-11.9 lakh
Top speed 185 kph
0-100kph 11.96 sec
Kpl 8.9 (overall)
For Solid build, ride comfort,
huge boot 22
Against Lacks luxury feel,
cramped rear seats
PRICE LIST FOR TOYOTA CORLLA

Sl. No. Grade Model showroom Price Rs.


1 H1 1.8J 988,570

2 H1 Metallic 1.8J 993,570

3 H2 1.8E 1,084,480

4 H2 Metallic 1.8E 1,089,480

5 H3 1.8G 1,146,860

6 H3 Metallic 1.8G 1,151,860

7 H4 1.8G 1,210,170

8 H4 Metallic 1.8G 1,215,170

9 H5 1.8E 1,148,010

10 H5 Metallic 1.8E 1,153,010

11 H6 Limited Edition 1.8E 1,129,700

12 H6 Metallic 1.8E 1,134,700

13 HE 1.8J 892,100

14 HE Metallic 1.8J 897,110

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TARGET CUSTOMER

Corolla Owners’ Profile

• Age : 25-45
• Occupation : Business Class or High Level Service
Executives
• Social Class : These people (Lower Upper to Higher
Upper Class) generally have an existing C
segment car before they purchase Corolla.
• Areas : Urban/ Sub Urban, major Cities/Towns
• Income Level: More than Rs. 2 lacs p.m.

TARGET SEGMENT

The Corolla should be targeted at the Youth Market. It is a car for


people who like to drive the car themselves. Corolla gives overall
driving pleasure to the owner. It is for those people who are young
and trendy. It should be positioned as a little sporty car for trendy
people. People having an Average Monthly Income of 2 lacs and
aged between 25-45 years form the target market. These people
already have 2 or more cars in their family and this is generally
their upgrade. These people are modern in their outlook and live in
urban and sub urban cities/towns.

MARKET POSITIONING
The car is to be positioned as a Global Car, which has been there
for so many years and is a huge success worldwide. It should be
positioned as a Sporty Car, which can be used for Office as well

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as family use. Its quality can be defined by the seal of Toyota,
which is the World’s Third Largest Automaker.

USP

LOW FUEL CONSUMPTION

Toyota corolla is worldwide known for its better fuel efficiency.

COMPANY MODEL MILEAGE


TOYOTA COROLLA 12.5 kpl
CHEVROLET OPTRA 9.6 kpl
SKODA OCTAVIA 8.9kpl

Figures above show that Toyota corolla’s performance is better on


the mileage scale than its competitors.

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MARKET SURVEY REPORT
A Market survey was conducted on Toyota Corolla. The objective of
the survey was to find out the Consumer Tastes and Preferences,
Consumption Pattern and changes in Lifestyle Dimension after the
purchase of Corolla.

The survey shows the following results:

THE MOST PREFFERED BRAND


OF CARS

12%

29%
MERCEDES
18%
BMW
LEXUS
OTHERS

41%

Source: corolla.com (july2006)

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PEOPLE'S DREAM CAR

19%
25%
MERCEDES
6% BMW
LEXUS
AUDI
OTHERS
25% 25%

Source: corolla.com (july2006)

WHAT PEOPLE LOOK IN FOR, WHEN


THEY BUY A CAR

23%
26%

LOOKS
PERFORMANCE
TECHNOLOGY
3% SAFETY
BRAND
25%
23%

Source: corolla.com (july2006)

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PEOPLE BOUGHT COROLLA
BECAUSE OF ITS

35%
39% PERFORMANCE
BUILT QUALITY
RATINGS
BRAND

9%
17%

Source: corolla.com (july2006)

PEOPLE USUALLY CHANGE THEIR


CAR IN
7%
20%
LESS THAN 1 YEAR

BETWEEN 1-3 YRS.


33%

BETWEEN 3-5 YRS.

MORE THAN 5 YRS.


40%

Source: corolla.com (july2006)

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PEOPLE'S LEVEL OF
SATISFACTION WITH COROLLA
7%

EXTREMELY
SATISFIED
FAIRLY
40% 53% SATISFIED
AVERAGE
SATISFIED

Source: corolla.com (july2006)

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CURRENT SITUATION OF THE MARKET

Present Market Share Of the Segment


MARKET SHARE OF THE C++
3.8
SEGMENT
2.2 1
15
5.1 A1
LOWER A2
14 UPPER A2
LOWER A3
UPPER A3
MISC
13.9 A4/C++
45 A5-A6

Source: corolla.com (july2006)

THE OVERALL PICTURE

Model Overall A4/C++


Market Share Segment
Share
Toyota 1.2% 34.1%
Corolla
Chevrolet 1.1% 23.6%
Optra
Skoda 0.8% 22.6%
Octavia
Hyundai 0.6% 19.7%
Elantra

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LIBERALIZATION IMPACT

The Government of India started the economic liberalization policy in


1991. Major benefit of the liberalization era has been the shift in the
pattern of exports from traditional items like clothes, tea and spices to
automobiles, steel, IT etc.

1991 - Under the Govt.'s new National Industrial Policy, the license
raj was dispensed with, and the automobile industries were allowed
to expand freely.
1997 – TKM invested nearly Rs. 1500 crores in its plant at Bidadi,
employing over 2,400 people. The plant started production in
December 1999 and has a capacity of producing 60,000 units
annually. TKM sold nearly 42,820 vehicles in FY 2004-05 increasing
its sales revenue. Toyota switched to Indian market because of its
young crowd. As company is targeting this segment with its product
like Corolla and Camry. Toyota is a successful brand in India as its all
products are market leaders in their respective segments.

0.8

1.8

2.1
2.1
3.1

3.9 MARUTI
TATA
HYUNDAI
17.3
HONDA
51 FORD
GM
TOYOTA
HM
17.3 FIAT

Source: jdpower (2006)

Current standing of Indian automobile sector after liberalization.

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MARKET PLAN

INDUSTRY TREND

India’s 25% growth in passenger vehicles in calendar ’05 puts it right


on top of the world auto growth heap. Outstripping China’s estimated
15% growth in ‘05; India’s 1,044,597-unit tally makes it the fastest
growing volume market for passenger vehicles. While the saturated
developed markets of the US, Europe and Japan continue to remain
flat, auto analysts say India’s chances of staying ahead of the pack in
the new year are bright, given that China’s government mandated
interest curbs will likely dampen demand there. The trends were
visible in the first six months of calendar ’05. According to the OICA
study on car production, India’s 32% growth was second only to
China’s 39% increase among volume markets.

PRESENT TREND

December wholesales were fair considering the usual deferment of


sales to the new financial year and because of several plants shut
downs for maintenance. At this rate the annual domestic sales should
exceed 800,000 units with exports of an additional 160,000 units.

Over the past three years, the share of the A1 segment has declined
by 44% while the larger A2 hatchbacks are up by 35.4%, the A3
segment increased by 41.8% while the A4-6 segments increased by
109%. Hatchbacks accounted for 88% of India’s sales.

Maruti as the top seller with a 51% market share. Tata Motors had a
share of 17.3%, Hyundai also of 17.3%, Honda of 3.9%, Ford of
3.1%, GM of 2.1%, Toyota of 2.1%, HM of 1.8% and Fiat of 0.8%.

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PLC

GROWTH STAGE
Toyota Corolla comes under the growth stage of PLC. As Toyota
has sold more than 7600 units of the corolla from January - October
2005. Sales have increased as more customers became aware of the
product and its benefits and additional market segments are targeted.
Corolla has been proven a success and customers begin asking for it,
sales will increase further as more retailers are interested in carrying
it.

At growth stage Toyota’s goal is to gain consumer preference and


increase sales. The marketing mix may be modified as follows:

• Price - Maintained at a high level if demand is high, or reduced


to capture additional customers.
• Distribution - Distribution becomes more intensive. Trade
discounts are minimal if resellers show a strong interest in the
product.
• Promotion - Increased advertising to build brand preference.

By 2010 Toyota is aiming to gain a substantial market share of 10%


in premium mid size cars segment.

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BCG

STAR (=high growth, high market share)

Toyota Corolla falls under star category of BCG matrix as it is using


large amounts of cash and is leader in its respective segments. TKM
is also generating large amounts of cash from its business.
Toyota has so far invested Rs. 1,400 crores in the Indian market.
Actual sales began in the year 2000, though the company was set up
in 1997. And Toyota is seriously considering to expand its present
dealership network.
If the company balances on net cash flow the rewards will be a cash
cow if market share is kept.

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OPPORTUNITY ANALYSIS
Passenger vehicles are doing well and UV’s and MPV’s now account
for 23% of domestic sales. At this rate, the sales for the full year
should exceed 1.1 million units.
Perhaps most impressive has been the rapid growth of exports that
now accounts for 16% of passenger vehicles of which A4-A6
segments increased by 109%, 8.5% of commercial vehicles, and 6%
of 2-wheeler sales.

This huge increase in the A4-A6 i.e. 109% clearly shows that this
segment is really growing at a huge pace and there exists a huge
potential in this segment in the future. This segment is going to grow
at a much faster pace in the near future as the trend in our country is
shifting towards upgradation of cars. Those in the A2 segment are
moving towards Lower A3 or Upper A3 segment, from Lower/Upper
A3 movement can be seen towards A4 and so on. This is mainly due
to Overall Higher Economic Growth. There is an Overall Growth in
the Automotive Sector in our country. Also many new Players are
entering our Market at high rate. We can see that companies like
Nissan, BMW, and Mercedes have entered our Price Conscious
Indian Market with their Very Highly Priced Products. And their
products are also selling in the market. This shows that there is a
place for Expensive Cars in our highly price conscious Indian Market.
New Global Majors like Audi, Ferrari, and Lamborghini etc. are very
soon entering our market with their highly expensive products.
Indians have started to buy expensive products and are upgrading
their Standard of Living.

The A4/ C++ Segment is going to grow big in the coming years. The
segment is expected to double its size by the end of next fiscal.

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SUGGESTIONS
Currently the Corolla is the Market Leader in the A4/C++ Segment.
The car has also been rated highest in terms of Overall Quality and
Customer Satisfaction not only in its own segment alone but the
across all the segments by JD Power Asia Pacific.

• The Objective for the next 2 years should be to strengthen the


position as a Market Leader through properly designed
Marketing Strategy and Product Improvement Strategy.
• As the Segment is expected to double the size by the end of
next year, the strategy should be to increase the production
output.
• Also, in the study it has been found out that the competitors like
Skoda is going to recently give a facelift to their Octavia model
which may possibly will result in increased sales for Octavia. So
a proactive counter strategy should be readied before time.
• As the No.4, i.e. Hyundai Elantra in the segment is not doing
well; the strategy should be to attack its market share through
aggressive comparison advertising with it.
• The main competitor i.e. Chevy Optra is very bullish player. It
also has a lower Engine Displacement model available for
under 8 Lacs. If it is possible, a model with lower engine
displacement and fewer features should be introduced soon to
attack Optra 1.6.
• As the car has won so many prestigious Awards in Customer
Satisfaction and Overall Quality from World’s Most Reputed
Survey Agency JD Power Asia Pacific, the stress should be
given on using this as a powerful tool in the Marketing Strategy.
• News is also there that Honda is bringing its World famous
Civic Model in the Indian Market in the same segment in which
Corolla exists. So there will be the entry of this new player,
therefore a proactive strategy is to be made for the same.
• Also we know that the Corolla sold in India is a 9th Generation
Model of Corolla but Worldwide in most of the countries, the
10th Generation model has already been launched, 10th
Generation model can also be started to be manufactured in
India.

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REFERENCES

www.corollabharat.com
www.corollaworld.com
www.jdpower.com
www.brandreporter.com
www.netmba.com
www.wikipedia.com
www.thehindu.com
www.agencyfaqs.com
www.kpmg.com
www.delloit.com
www.mckincey.com

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