TOPIC PROPOSAL

Section: BSBA3 OM4

Name of Researchers:
De Leon, Daverick E.
Rivera, Rolen
Gernan, Patricia
Cartago, Jaybenedict
Number 3:

Proposed Title:

An Analysis of Toyota Company's Product Development and Establishment of

Customer Satisfaction

Problem Statement: To determine the product development, establishment of customer

satisfaction of Toyota’s company

Research Objective:
1. To know how Toyota keeps their customer satisfied and how they adapt to the
endless wants of customer.
2. To know how Toyota developed throughout the years and how they maintain their
position and brand name known to the world considering the amount of rivals in their
industry.
3. To find out what kind of service and management practice does Toyota provide for
their customers to get their loyalty and trust.
4. To determine the product development of Toyota’s company and what kind of
innovation can add to their product.

Literature:

As stated in an article entitled “Toyota is highest-ranking automotive brand for

customer satisfaction” by Matt de Prez (2020), Toyota has been perceived as the most
elevated positioning auto brand in the most recent UK Customer Satisfaction Index from
the Institute of Customer Service. The Japanese vehicle producer places nineteenth in
general and is one of just three vehicle brands to highlight in the main 50 positioning.
Individual Japanese brand Nissan positioned 31st, while Ford was the main other
vehicle producer to be perceived, putting 47th. Toyota has risen 20 spots since the July
2019 client care file.

Its fruitful presentation remembers the most elevated scores for four out of the five file
segments:
 Experience (counting reach and nature of items and administrations,
correspondences, lucidity, staff accommodation and ability)
 Client Ethos (how a business really focuses on its clients, stays faithful to its
commitments and plans its encounters around the client)
 Passionate Connection (clients trust the business and feel consoled)
 Morals (business notoriety, receptiveness and straightforwardness and great
business practice for workers and society)
Robin Giles, Toyota (GB) client administrations chief, remark: “The latest index results
are a great reward for the huge efforts invested by everyone at Toyota, particularly by
the teams working across our national network. Achieving complete customer
satisfaction is central to what we do as a business, but it isn’t a fixed target. Instead, we
have to constantly improve and adapt the way we work to make sure we keep perfectly
aligned with customer preferences and expectations.”
Through its Best Retailer around drive, Toyota has made huge interest in abilities,
specialized capacities and client dealing with across its UK organization. The necessary
norms for new vendors currently incorporate client taking care of and the manner by
which retailers will take responsibility for to determine any issues expeditiously and to
the consumer loyalty's. To speed up issues with least deferral, retailers have likewise
been offered degree to self-approve altruism to clients.

Reference:

De Prez, M., (2020). Toyota is highest-ranking automotive brand for customer

satisfaction. AM magazine: Newspress Awards' Automotive Business.

Peterborough, UK

https://www.am-online.com/news/car-manufacturer-news/2020/08/05/toyota-is-highest-
ranking-automotive-brand-for-customer-satisfaction

Base on a study conducted Nishtha Shaktawat entitled “A STUDY ON

CUSTOMER SATISFACTION OF TOYOTA CAR WITH SPECIALREFERENCE TO OM
TOYOTA KOTA”, the findings of this study in terms of:
Satisfaction level of the owner of car regarding following factors
 Performance of the car (Larger part of the respondents (90) were happy with the
exhibition of the vehicle)
 Maintenance Cost (Larger part of the respondents (72) were happy with the upkeep
cost)
 Driving Comfort (Larger part of the respondents (90) were happy with the driving solace)
 Fuel Consumption (Larger part of the respondents (66) were happy with the fuel
utilization)

Customer satisfaction regarding service provided by the sales executive

 Perception regarding attitude of the sales executive (Larger part of the respondents (72)
discovered deals leader disposition great)
 Satisfaction level as per delivery time (Larger part of the respondents (80) were fulfilled
by conveyance time)
 Perception regarding complaints noted and attended (Larger part of the respondents
(74) found that their grumblings is noted and gone to by the help in control)

Overall satisfaction level of customers

 Satisfaction level regarding service provided by Toyota (Greater part of the respondents
(75) were happy with the administrations given by the Toyota)
 Preference for purchase of next car from Toyota (Greater part of the respondents (72)
might want to buy one more vehicle from Toyota)
  Suggesting to friends and family (Greater part of the respondents (88) might want to
recommend their loved ones to purchase a vehicle from Toyota)

The conclusion of this study stated that the general deals fulfillment list from the
review uncovers that the organization is performing very well and clients purchasing are
tremendously happy with the help given to them.
The main a few issue saw are:
 A portion of the clients have grievances about the after deals administration gave by the
showroom. Despite the fact that the protests are minor, the display area need to
determine the client's after deals administration issues to accomplish full consumer
loyalty.
 A portion of the clients have additionally griped about the leeway in the conveyance
process and timings. Along these lines, this is the region which I prescribe to the display
area to focus a smidgen more. It needs to further develop its conveyance interaction
and time. Need to become little speedy and quick.
 More staff is needed as clients needed to stand by in top season.

Reference
Shaktawat, N., (2016). Summer internship project report: A study on customer satisfaction of

Toyota car with special reference to OM Toyota, Kota. pp 54-57

https://www.scribd.com/embeds/391730691/content?
start_page=1&view_mode=scroll&access_key=key-fFexxf7r1bzEfWu3HKwf

The article is written by Simon Mainwering discussing about "Purpose At Work:

How Toyota Is Driving Growth, Innovation and Impact". As stated in the article, today's
consumers want to support brands that positively impact the world and enable them to
live a better life. Additionally, the rapid pace of technological progress coupled with
highly competitive markets requires business innovation and brand differentiation. As a
result, companies that provide mission-oriented products and services shape consumer
demand while generating measurable social impact and promoting goodwill and
purchasing. The Technology is changing the way we move and making the world more
connected. People are used to electric vehicles and carpooling, while autonomous
vehicles are being adopted on a large scale. This connectivity has changed consumer
beliefs about asset ownership and sharing. It has also set the bar for environmental
standards and technology. Toyota is a great example of a company that combines this
technology with design and purpose. The automaker has set itself the task of paving the
way to the "future of mobility." This mission acts as a compass and influences key
strategic decisions in the areas of branding, product innovation, partnerships, and more.
This commitment to active mobility reflects its mission and humanizes its brand. Toyota
promotes itself as a partner in moving the world and expanding into new areas by
focusing on mobility. Toyota's innovation is driven by a clear vision and the necessity to
compete in the automotive market. Toyota's experience may teach purpose driven
company leaders how to gain a competitive advantage. Toyota’s drives innovation and
impact by first, expanding its markets, the determined companies use their business to
tackle a challenge that affects the world. By developing products that help solve a
problem, you can open up opportunities in new markets that suit your purpose. Mobility
goes beyond cars. Ridesharing apps and transportation solutions like Lyft, Uber, Bird,
and others make it easy for people to get around unconditionally. The high price and
rapid obsolescence of today's automotive market can discourage consumers from
buying a new car. Not to mention insurance, DMV registration, and maintenance. 4,444
people are moving differently now and Toyota is lining up to meet the demand. The
company introduces the so-called KINTO, the “popular new car subscription service for
individuals”. In a pilot project scheduled for Tokyo in 2019, Toyota will launch a monthly
flat-rate subscription that will allow people to use a variety of vehicles indefinitely. As
consumer preferences change, Toyota hopes to wake up the car fanatic. With KINTO,
customers can choose their mode of transportation according to their needs and
eliminate the responsibility for maintenance, registration and other tasks associated with
owning a car. Customers can also test different cars and enjoy greater freedom in terms
of mobility. KINTO will also honor Good Samaritans who practice safe and
environmentally friendly transportation. With a focus on mobility, Toyota expands its
business to car sharing. The lesson here is that to innovate on purpose, you need to find
out what people need, what is holding them back, and how your business can help
others lead better lives. Second is having new partnerships, by working for a higher
purpose, you can increase opportunities to partner with other organizations working
toward a similar goal. To drive innovation to promote mobility, Toyota partners with
SoftBank. SoftBank, specializing in artificial intelligence, and Toyota, with a long history
in transportation solutions, will form a joint venture called Monet Technologies Corp. to
establish. The partnership will focus on delivery services, portable medical treatments,
on-demand vehicles, and data analytics. They also plan to offer autonomous delivery
services by 2020.

This is a central point in the history of transportation. The market is changing,

with automakers and technology companies vying for the top spot in autonomous
vehicles and related services, as well as shared and electric vehicles. Partnerships that
transform mobility in the 21st century and beyond will create competitive advantage and
contribute to humanity. Essentially, you can achieve more in terms of innovation and
significant impact through partnerships that accelerate your mission and increase your
competitive advantage. Third is to achieve both social impact and bottom line, you need
to build purpose into product development. Toyota has been innovating for years,
introducing Hybrid Synergy Drives technology and the Prius, which set the standard for
hybrid cars and has been continually innovating ever since. In a recent targeted
initiative, Toyota combined a mission-driven campaign with product innovation to
showcase both its technological capabilities and social impact. As part of the partnership
with the International Olympic Committee and the International Paralympic Committee.

Reference:
Mainwaring, S., (2018). Purpose At Work: How Toyota Is Driving Growth, Innovation

And Impact., Forbes, Jersey City

https://www.forbes.com/sites/simonmainwaring/2018/11/13/purpose-in-action-how-
toyota-is-driving-growth-innovation-and-impact/?sh=2117192647fb

As reported by the Manila Times (2018), they are inviting and praising Toyota
Motors Philippines (TMP) for revealing on Thursday its all-new Vios, the 2019 model and
the first to be fabricated completely in the organization's rambling Sta. Rosa, Laguna
branch under the public authority's Comprehensive Automotive Resurgence Strategy
(CARS) program. The program expects to rejuvenate the country's vehicle producing
industry.

The occasion connotes more than the presentation of another vehicle model. It
implies both accomplishment and aspiration. It means first the steps that Toyota has
taken to spike its vehicle producing exercises in the Philippines and recharge its
obligation to the country's vehicle fabricating program. In a more aspiring manner, this
occasion makes show the earnestness of the Philippines in its longing to turn into a
vehicle producing center point in Asia through its assembling resurgence program.

As Trade and Industry (DTI) Secretary Ramon Lopez has clarified, this divulging
is an achievement in a long excursion. He said “The CARS program is at the heart of our
Manufacturing Resurgence Program. With MRP, we will rebuild the existing capacity of
our local industries, strengthen new ones and maintain their competitiveness. More
importantly, this program – among the many initiatives under the Duterte administration
– will help us create more jobs and income opportunities for our people.”

Under CARS, car producers who enlist under the program will be allowed $200
million in charge and monetary motivations in every one of the taking an interest
programs. Each member will be needed to deliver 200,000 units of the selected model
inside six years. The organization, Lopez said, is pushing for development of the
homegrown assembling area through "confinement" of supply sources, which would
produce more positions and give better freedoms too little and-medium undertakings
(SME). This isn't only a yearning; this is an advancement currently really taking shape.
The Philippine assembling area is one of the principle drivers of the nation's momentum,
solid development. It contributed fundamentally to the 6.8 percent GDP (total national
output) development in 2017 and the principal quarter this year.

It is reasonable for trust that Toyota Philippines will endeavor to surpass the 50%
least nearby part necessity under CARS. With the help of the 2017 Investment Priorities
Plan (IPP), the MRP could prevail with regards to shutting the holes in the business
inventory network by giving admittance to unrefined components and grow the nearby
business sectors and commodities for privately made items. None of us, obviously,
ought to fail to remember the barriers to making the Philippines a center of vehicle
producing. The street is covered with vulnerabilities emerging from the better than
expected swelling rate, also the street blockage factor coming about because of the
vehicle business' development. Consider too the effect of the Tax Reform for
Acceleration and Inclusion or TRAIN law, which directed vehicles deals in June by 21.7
percent and brought about a 12.5 percent drop year-to-date. The record is
overwhelming.

The Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and

Truck Manufacturers Association (TMA) have shown five months of sequential deals
stoop over last year and this year. In a different report, the Association of Vehicle
Importers and Distributors (AVID) said deals of imported car vehicles in the main half
dropped 11% to 43,138 units from 48,344 units in the 2017 period. These difficulties
won't vanish for the time being, however we should likewise accept that the country's
vehicle interest and-supply circumstance is a moving objective. The way that the
Philippine populace has developed past 105 million of for the most part youthful
residents, and has a quickly developing working class, is justification behind mindful
idealism. Toyota Philippines is without a doubt right in accepting that its new Vios model
will assist the organization with recuperating deals after the market rectification in the
second 50% of the year.

TMP President Satoru Suzuki is all in all correct to pronounce proudly, "A lot of
this model is gladly made in the Philippines, an aggregate of 352 individual parts, 22%
higher than in the past Vios. This limitation is the aftereffect of P5.53 billion in
speculations by TMP and nearby providers, which addresses our aggregate commitment
to the nation's drawn out monetary development." We believe that the organization's
pride will be coordinated by the certainty of the Philippine market.

Reference
Manila Times, (2018). Toyota’s brave commitment to growth of PH car manufacturing.

https://www.manilatimes.net/2018/07/23/opinion/editorial/toyotas-brave-commitment-to-
growth-of-ph-car-manufacturing/422413

As reported in an article written by Rowan Philp entitled “How Toyota is Again

Embracing “Kaikaku” Innovation to Transform New and Used Car Markets”, Toyota
Australia is supplementing the brand's popular gradual advancement way with
troublesome techniques, in a vital sign to the worldwide auto market. Barry Money, GM
of Retail Development at Toyota, Australia, has let BPI know that the Japanese idea of
"kaikaku" - or revolutionary advancement – is progressively basic for the business,
especially in utilized vehicles, and inside business sectors where new vehicle purchaser
numbers have arrived at level.

The idea of disturbance will turn out to be more predominant in the customary car
market, regardless of whether it's finished by us, the establishments, or by any
semblance of Elon Musk at Tesla or other keen business visionaries, he said. “For us,
the ability to understand and continually connect with loyal customers, and with at-risk
customers – that is the focus.”

Toyota is additionally exploring the utilization of personalization innovations –

while multiplying down with the rest of their personal effects to-individual way of thinking,
with a joining program among deals and administration experts. Cash said substitute
procedures inside the kaikaku theory – made popular by Toyota – were being utilized by
rival establishments, for example, Subaru's work to sell its vehicles straightforwardly to
clients on the web, and the extreme quality improvement methodologies utilized by
Korean producers.

EXTERNAL CATALYSTS FOR INNOVATION

Utilizing the Japanese idea of "yokoten" – or" best-work on sharing", Money says
the Australian dedication crusade was at first roused by the achievement of the Toyota
Exchange program in the US, driven by vendor networks like the Penske bunch. He said
even developments by Toyota in Russia – which is utilizing new innovations to normalize
the exchange interaction – were rousing novel thoughts somewhere else. However,
Money said customers themselves stayed the essential impetuses for development. So
the veteran auto leader will hold ideation studios straightforwardly with clients, "so we
can get a sense from them the sort of advances they need to find in the inquiry to visit
stage".

The trade-in vehicle division is actually the last boondocks of advancement – we

need to significantly improve there; decreasing the dependence on the private deal
channel and advancing the advantages of the Toyota seller network is one of the
difficulties. He said “In Australia, the highest percentage of our used vehicle transactions
are private to private – but there are problems there. Obviously, as a private seller you
want to hide the defects. But also – the brokers who facilitate those sales take no
responsibility as to quality or debts on the vehicle or other aspects. We were going to do
kind of a boring documentary to highlight these perils – but then I thought: Australians
love their humor, so lets do something different - we needed to get back to humor as a
great way to connect to the brand. We won a bunch of awards for that campaign - we hit
a million views in 5 weeks, which is pretty good for Australia. Now we’re seeing some
customers telling our dealers they’ll never buy from private sellers again as this
campaign has resonated with some of their worst experiences buying used cars.”

Reference
Philp, R., (2021). How Toyota is Again Embracing “Kaikaku” Innovation to Transform

New and Used Car Markets, BPI network views & commentary

https://www.bpinetwork.org/thought-leadership/views-commentary/401/
how_toyota_is_again_embracing_kaikaku_innovation_to_transform_new_and_used_car
_markets