Project on Toyota Motors

Name : Pandya Swarup (Roll No. 16) & Patel 27)

Class : Marketing Management(Semester: III )

Karan (Roll No.

Submitted to : Mr.Maulik Prajapati Date : 8thAugust,2011

History of Toyota
Towards the end of the nineteenth century, Sakichi Toyoda invented Japan's first power loom, revolutionizing the country's textile industry. January 1918 saw him create the Toyoda Spinning and Weaving Company, and with the help of his son, Kiichiro Toyoda, Sakichi fulfilled his lifelong dream of building an automatic loom in 1924. The establishment of Toyoda Automatic Loom Works followed in 1926. Kiichiro was also an innovator, and visits he made to Europe and the USA in the 1920s introduced him to the automotive industry. With the 100,000 that Sakichi Toyoda received for selling the patent rights of his automatic loom, Kiichiro laid the foundations of Toyota Motor Corporation, which was established in 1937. One of the greatest legacies left

by Kiichiro Toyoda, apart from TMC itself, is the Toyota Production System. Kiichiro's "just- intime" philosophy - producing only precise quantities of already ordered items with the absolute minimum of waste - was a key factor in the system's development. Progressively, the Toyota Production System began to be adopted by the automotive industry across the world. Rising from the ashes of industrial upheaval in post-war Japan, Toyota has become the largest vehicle manufacturer in Japan with over 40% market share. Toyota began to make inroads into foreign markets in the late 1950s. The first Crown models arrived in the USA in 1957, and by 1965, with models such as the Corolla, Toyota began to build its reputation and sales to rival those of domestic producers. The first Toyota imported into Europe was via Denmark in 1963. Toyota has con-tined to grow in Europe's sophisticated and complex market, and in 2000 the company delivered its ten millionth cars to a customer in Germany. In fact, growth is currently one of the main words in Toyota's European vocabulary, and the com-pony plans to reach annual sales of 800,000 in Europe by 2005. Toyota is number one for customer satisfaction in the majority of European countries and has built an excellent reputation across Europe for reliability and customer service. This enviable reputation, along with the support of a network of more than 25 distributors and 3,500 sales outlets, are important factors in supporting Toyota's European sales growth in the coming years.

Vision :
Delight our customers through innovative products, by utilizing advanced technologies and services. Ensure growth to become a major player in the Indian auto industry and contribute to the Indian economy by involving all stakeholders. Become the most admired and respected company in India by following the Toyota Way. Be a core company in global Toyota operations.

Mission :
Practice ethics and transparency in all our business operations.

Touch the hearts of our customers by providing products and services of superior quality at a competitiv price. Cultivate a lean and flexible business model throughout the value chain by continuous improvement. Lead the Toyota global operations for the emerging mass market.

Create a challenging workplace which promotes a sense of pride, ownership, mutual trust and teamwor Create an eco-friendly company in harmony with nature and society.

Different Products of Toyota :

MODEL
Toyota Corolla Altis CNG Toyota Corolla Altis Diesel Toyota Land Cruiser Toyota Lexus Toyota Lexus ES 350 Toyota Etios Toyota Prado Diesel Toyota Camry 2.4 L (A/T) Toyota Corolla Corolla 1.8 E

TYPE
Sedan Cars Sedan Cars SUV Sedan Cars Sedan Cars Sedan Cars SUV Premium Premium

Corolla 1.8 J Corolla Altis SUV

Toyota Innova Innova E

Innova E 2.0L Petrol Innova E 2.5L Diesel Innova G1 2.0L Petrol Innova G2 2.5L Diesel

Innova G

Innova V

Innova V 2.0L Petrol Innova V 2.5L Diesel SUV SUV SUV

Toyota Prado Toyota Qualis Toyota Fortuner

Toyota Innova 2.5 EV MS

Detailed information on the Innova 2.5 EV MS - 8-Seater of Toyota in India. This page gives information on the technical features of Toyota's Innova model and its 2.5 EV MS - 8-Seater variant. Toyota Innova 2.5 EV MS - 8-Seater is powered by a 2494 cc Diesel Engine and it offers an overall milage of. The price of Toyota Innova 2.5 EV MS - 8Seater Diesel model in India is around Rs. 840000 /-*. Continue reading to know about the technical specifications of Toyota Innova 2.5 EV MS - 8-Seater Car.

Technical Specification
Technical features, safety and security features, performance and other details about the Toyota Innova 2.5 EV MS - 8-Seater.

Body

Overall Length (mm) Overall Width (mm) Overall Height (mm) Wheel Base (mm) Ground Clearance (mm) Front Track (mm) Rear Track (mm) Kerb Weight (Kg) Gross Vehicle Weight (kg) No of Doors

4555 1770 1755 2750 176 1510 1510 1660 2300 5

Fuel Economy
Mileage - Highway (km/l) Mileage - City (km/l) Mileage - Overall (km/l) 14 10.6 11.28

Capacities
Seating Capacity Fuel Tank Capacity 8 55

Performance
0-100kmph 1/4 Mile 17.6 seconds 20.5 seconds

Engine
Engine Type/Model Displacement (cc) Power (PS @ rpm) Torque (Nm @ rpm) Valve Mechanism No of Cylinders Cylinder Configuration Valves per Cylinder Fuel Type Fuel System 2.5 Liter, 4-cylinder, 16 valve, DOHC, Turbo 2494 102 @5600 200 @1400 DOHC 4 In-line 4 Diesel Common Rail

Transmission
Transmission Type Final Reduction gear ratio Manual 5

Suspension
Front Suspension Rear Suspension Independent, Coil Spring, Double Wishbone, with Stabilizer 4-link, Coil Springs

Steering

Steering Type Minimum Turning Radius (m)

Rack & Pinion 5.4

Brakes
Front Brakes Rear Breaks Ventilated Disc Leading-trailing Drum

Wheels & Tyres

Wheel Type Wheel Size Tyres Tubeless tyres 15 inch 205/65 R 15 Tubeless

Price Grade
Ex-Showroom Price
2.5 EV MS (DIESEL) 2.0 G (PETROL) 2.5 EV PS (DIESEL)2.5 G (DIESEL)2.0 GX (PETROL) 2.5 GX (DIESEL)Rs. 8,12,261 Rs. 8,45,217 Rs. 8,62,835 Rs. 9,31,713 Rs. 9,53,932 Rs. 10,14,854

2.0 VX (PETROL)2.5 VX (DIESEL)-

Rs. 11,31,718 Rs. 11,90,606

Toyota Etios J

Detailed information on the Etios J of Toyota in India. This page gives information on the technical features of Toyota's Etios model and its J variant. Toyota Etios J is powered by a 1496 cc Petrol Engine and it offers an overall mileage of . The price of Toyota Etios J Petrol model in India is around Rs. 504000 /-*. Continue reading to know about the technical specifications of Toyota Etios J Car.

Technical Specification
Technical features, safety and security features, performance and other details about the Toyota Etios J.

Body

Overall Length (mm)

4265

Overall Width (mm) Overall Height (mm) Wheel Base (mm)

1695 1510 2550

Boot Space (l) No of Doors

595 4

Engine
Displacement (cc) Power (PS @ rpm) Torque (Nm @ rpm) No of Cylinders Valves per Cylinder Fuel Type 1496 90 5600 13,23,000 4 4 Petrol

Steering
Minimum Turning Radius (m) 4.9

Capacities
Seating Capacity Fuel Tank Capacity 5 45

Fuel Economy

Mileage - Highway (km/l) Mileage - City (km/l) Mileage - Overall (km/l)

17 13 15

Transmission
Transmission Type Manual

Wheels & Tyres

Wheel Size Tyres 14 Inch 175/65 R14

Price
Grade
J G G SP* V VX

Ex-Showroom Price
5,14,181 5,66,631 6,18,031 6,67,879 7,13,879

 Toyota

Corolla Altis 1.8 J

Detailed information on the Corolla Altis 1.8 J of Toyota in India. This page gives information on the technical features of Toyota's Corolla Altis model and its 1.8 J variant. Toyota Corolla Altis 1.8 J is powered by a 1794 cc Petrol Engine and it offers an overall mileage of . The price of Toyota Corolla Altis 1.8 J Petrol model in India is around Rs. 10, 45,000 /-*.

Technical Specification :
Technical features, safety and security features, performance and other details about the Toyota Corolla Altis 1.8 J.

Body

Overall Length (mm) Overall Width (mm) Overall Height (mm) Wheel Base (mm) Ground Clearance (mm) Boot Space (l) Kerr Weight (Kg) No of Doors

4540 1760 1480 2600 176 475 1180 4

Engine
Displacement (cc) Power (PS @ rpm) Torque (Nm @ rpm) Valve Mechanism No of Cylinders Cylinder Configuration Valves per Cylinder Fuel Type Fuel System 1794 132 @6000 170 @4200 DOHC 4 Inline 4 Petrol Electronic Fuel Injection

Steering
Steering Type Minimum Turning Radius (m) Rack and Pinion, Power-assisted, Speed-sensing 5.3

Capacities
Seating Capacity Fuel Tank Capacity 5 55

Fuel Economy
Mileage - Highway (km/l) Mileage - City (km/l) Mileage - Overall (km/l) 14.4 10.7 11.44

Performance
Maximum Speed 197 Km/Hour

Transmission

Transmission Type Final Reduction Gear Ratio

Manual 5

Suspension
Front Suspension Rear Suspension Macpherson strut Torsion beam

Brakes
Front Brakes Rear Breaks Ventilated Disc Solid Disc

Wheels & Tyres

Wheel Type Wheel Size Tyres Alloy 15 inch 195/65 R15 Tubeless Radials

Sl. No.
1 2 3 4

Model
1.8J 1.8G 1.8GL 1.8VL

Ex-Showroom Price
10,72,917 12,58,571 14,04,366 14,98,109

Toyota Fortuner 3.0 MT

Detailed information on the Fortuner 3.0 MT of Toyota in India. This page gives information on the technical features of Toyota's Fortuner model and its 3.0 MT variant. Toyota Fortuner 3.0 MT is powered by a 2982 cc Diesel Engine and it offers an overall mileage of. The price of Toyota Fortuner 3.0 MT Diesel model in India is around Rs. 20, 52,802 /-*.

Technical Specification :

Technical features, safety and security features, performance and other details about the Toyota Fortuner 3.0 MT.

Body

Overall Length (mm) Overall Width (mm) Overall Height (mm) Wheel Base (mm) Ground Clearance (mm) Kerr Weight (Kg) No of Doors

4695 1840 1850 2750 225 2720 5

Engine
Displacement (cc) Power (PS @ rpm) Torque (Nm @ rpm) Valve Mechanism Cylinder Configuration Valves per Cylinder Fuel Type Fuel System 2982 286 @3600 650 @1600 DOHC Inline 4 Diesel Common Rail

Steering
Minimum Turning Radius (m) 5.9

Capacities
Seating Capacity Fuel Tank Capacity 7 80

Fuel Economy
Mileage - Highway (km/l) Mileage - City (km/l) Mileage - Overall (km/l) 10.8 8 8.56

Transmission
Transmission Type Final Reduction Gear Ratio Manual 6

Suspension
Front Suspension Rear Suspension Double Wishbone 4-Link with Lateral Rod

Brakes
Front Brakes Rear Breaks Ventilated Disc Ventilated discs

Wheels & Tyres

Wheel Size Tyres 18 Inch 285/60 R18

Sl. No.
1

Grade
FA

Transmission
Manual

Ex-Showroom Price
20,52,802

Toyota Etios Liva J

Detailed information on the Etios Liva J of Toyota in India. This page gives information on the technical features of Toyota's Etios Liva model and its J variant. Toyota Etios Liva J is powered by an 1197 CC Petrol Engine and it offers an overall mileage of. The price of Toyota Etios Liva J Petrol model in India is around Rs. 3, 99, 000 /-*.

Technical Specification :
Technical features, safety and security features, performance and other details about the Toyota Etios Liva J.

Body
Body Segment Hatch back B

Brakes
Front Brakes Rear Breaks Ventilated Disc Drum

Engine
Displacement (cc) No of Cylinders Power (PS @ rpm) Torque (Nm @ rpm) Engine Type/Model Fuel System Fuel Type 1197 CC 4 80 PS 104 nm 3NR-FE, Gasoline Electronic Fuel Injection (EFI) Petrol

Fuel Economy
Mileage - City (km/l) Mileage - Highway (km/l) 14.1 16.2

Weight & Dimension

Gross Vehicle Weight (kg) Boot Space (l) Ground Clearance (mm) Kerb Weight (Kg) Overall Height (mm) Overall Length (mm) Overall Width (mm) Wheel Base (mm) 890 Kg. 595 liters 170 mm 890 kg 1510 mm 3775 mm 1695 mm 2460 mm

Performance
0-100kmph 0-60 km Maximum Speed 18.08 7.26 150

Steering
Power Steering No

Suspension
Front Suspension Rear Suspension Macpherson Strut Torsion Beam

Transmission
Gear Box Type Transmission Type Manual 5 Speed Manual

Capacities
Fuel Tank Capacity Seating Capacity 45 liters 5

Comfort and Convenience Features

Air Conditioner Power Steering Power Windows Tachometer Yes No No No

Safety and Security Features

ABS ABS with EBD Airbags Fog Lamps No No No No

Sl. No.
1 2 3 4

Grade
J G G SP* V

Ex-Showroom Price
5,14,181 5,66,631 6,18,031 6,67,879

Toyota

Camry W1 (MT)

Detailed information on the Camry W1 (MT) of Toyota in India. This page give information on the technical features of Toyota's Camry model and its W1 (MT variant. Toyota Camry W1 (MT) is powered by a 2362 cc Petrol Engine and it

 Promotion
Promotion Strategies:
A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organizations promotional strategy can consist of:

Advertising: Is any non personal paid form of communication using any form of mass media? Public Relations: Involves developing positive relationships with the organization media public. The art of good public relations is not only to obtain favorable publicity within the media, but it is also involves being able to handle successfully negative attention. Sales Promotion: Commonly used to obtain an increase in sales short term. Could involve using money off coupons or special offers. Personal Selling: Selling a product service one to one. Direct Mail: Is the sending of publicity material to a named person within an organization. There has been a massive growth in direct mail campaigns over the last 5 years. Spending on direct mail now amounts to 18 a year representing 11.8% of advertising expenditure (Source: Royal Mail 2000). Organizations can pay thousands of pounds for databases, which contain names and addresses of potential customers. Direct mail allows an organization to use their resources more effectively by allowing them to send publicity material to a named person within their target segment. By personalizing advertising, response rates increase thus increasing the chance of improving sales. Listed below are links to organization who's business involves direct mail.

Message & Media Strategy An effective communication campaign should comprise of a well thought out message strategy. What message are you trying to put across to your target audience?. How will you deliver that message? Will it be through the appropriate use of branding? logos or slogan design?. The message should reinforce the benefit of the product and should also help the company in developing the positioning strategy of the product. Companies with effective message strategies include: Toyota: The car in front is a Toyota. Media strategy refers to how the organization is going to deliver their message. What aspects of the promotional mix will the company use to deliver their message strategy. Where will they promote? Clearly the company must take into account the readership and general behavior of their target audience before they select their media strategy. What newspapers does their target market read? What TV programmers do they

watch? Effective targeting of their media campaign could save the company on valuable financial resources. Push & Pull Strategies Communication by the manufacturer is not only directed towards consumers to create demand. A push strategy is where the manufacturer concentrates some of their marketing effort on promoting their product to retailers to convince them to stock the product. A combination of promotional mix strategies are used at this stage aimed at the retailer including personal selling, and direct mail. The product is pushed onto the retailer, hence the name. A pull strategy is based around the manufacturer promoting their product amongst the target market to create demand. Consumers pull the product through the distribution channel forcing the wholesaler and retailer to stock it, hence the name pull strategy. Organizations tend to use both push and pull strategies to create demand from retailers and consumers. Communication Model - AIDA AIDA is a communication model which can be used by firms to aid them in selling their product or services. AIDA is an Acronym for Attention, Interest, Desire, Action.. When a product is launched the first goal is to grab attention. Think, how can an organization use it skills to do this? Use well-known personalities to sell products? Once you grab attention how can you hold Interest, through promoting features, clearly stating the benefit the product has to offer? The third stage is desire, how can you make the product desirable to the consumer? By demonstrating it? The final stage is the purchase action; if the company has been successful with its strategy then the target customer should purchase the product. Promotion through the Product lifecycle As products move through the four stages of the product lifecycle different promotional strategies should be employed at these stages to ensure the healthy success and life of the product. Stages and Promotion Strategies Employed. When a product is new the organizations objective will be to inform the target audience of its entry. Television, radio, magazine, coupons etc may be used to push the product through the introduction stage of the lifecycle. Push and Pull Strategies will be used at this crucial stage. Growth as the product becomes accepted by the target market the organization at this stage of the lifecycle the organization works on the strategy of further increasing brand awareness to encourage loyalty. Maturity At this stage with increased competition the organization take persuasive tactics to encourage the consumers to purchase their product over their rivals. Any differential advantage will be clearly communicated to the target audience to inform of their benefit over their competitors.

Decline as the product reaches the decline stage the organization will use the strategy of reminding people of the product to slow the inevitable. Internet Promotion The development of the world wide web has changed the business environment forever. Dot com fever has taken the industry and stock markets by storm. The e-commerce revolution promises to deliver a more efficient way of conducting business. Shoppers can now purchase from the comfort of their home 24 hours a day 7 days a week. However, particularly in the UK the e-commerce revolution is hindered by two factors. Firstly the cost of logging on to the net. Consumers are still weary of the time-spent surfing, the high cost is slowing down the take-up. The number of homes that are linked to the web in the UK is only 25% of all house owners. If e-commerce businesses are to succeed the home penetration rate of internet access must also increase. Secondly, most homes are linked to modems of 56K. As the growth of people signing on-line grows the access speed slows down. In America most consumers only spend 10 seconds browsing on a web page, before they change sites, within the UK it is 2 minutes. The future seems to be with ADSL networks which will speed up access to the Internet dramatically running at 512K per second. However, again whether this format is adapted depends much on the cost. Owning a website is a now a crucial ingredient to the marketing mix strategy of an organization. Consumers can now obtain instant information on products or services to aid them in their crucial purchase decision. Sony Japan took pre-orders of their popular Placation 2 console over the net, which topped a 1 million after a few days, European football stars are now issuing press releases over the web with the sites registered under their own names. Hit rates are phenomenal.

Toyota: Demand Chain Management

In addition to the four major distribution channels, Toyota has two small channels: Volkswagen and Rental. The Volkswagen channel was set up by Toyota as part of the efforts by the Japanese government to show that the Japanese distribution market is not closed to foreign cars. Toyota handles the physical distribution and order management of Volkswagen to their dealers, acting like a distributor.

 Toyota applies the Toyota Way to manage dealers, based on three basic principles:

1. Independence of dealers as outside investors: Dealers are free to make independent

decisions, and Toyota can only help them to invest in the right things to improve. Such a strategy motivates dealers to be more proactive.

2. Winning jointly: Both the dealers and Toyota must prosper jointly. 3. Encouraging competition among the channels: Competition is a means to improve. Toyota measures the performance of dealers periodically, using both a ranking system and a recognition system. The dimensions of evaluation include: 1. Sales of new and used cars (units and market share) 2. Sales from after-sales service (units and market share) 3. Customer satisfaction 4. Number of showrooms, service shops and staff 5. Profitability
Criteria 1 and 2 above constitute around 50 percent of the weight in the evaluation. The normal contract term with dealers is three years. Dealers who performed poorly in the above evaluation are given a one-year contract term. After this one year, if the dealer continues to perform poorly, then the dealer may be asked to reduce the primary marketing area it is responsible for; or another dealer could be added on to this same primary marketing area. These dealers have to submit plans for improvements to be evaluated by Toyota. So far, no dealers have been terminated due to continual poor performance. The Toyota National Dealers Advisory Council, made up of Toyota dealers nationwide, exists as an advisory group to interface with TMC and to foster dealer friendship. Dealers are encouraged to invest in improving their showrooms and facilities. Dealers have invested a total of 80 billion annually for such improvements, excluding advertising budgets. Advertising is planned by the dealers and Toyota. Toyota is primarily responsible for product- level advertising to create and promote brand image, while dealers are responsible for local sales campaigns. The main competition among dealers involves after-sales service and customer handling.

Domestic Vehicle Ordering and Inventory Management System:

In Japan, the customer order process runs like a pull process, with customers placing orders with the dealers, who then transfer the orders onto Toyota. It is not a pure pull process, as dealers! the larger ones in particular! also get stocks based on forecast, so that they could serve their customers better with shorter response time. In the latter

case the delivered cars are stocked at a stocking point where the dealers can inspect and install options when the actual customer orders .

Distribution
Toyotas automotive sales distribution network is the largest in Japan. As of May 31, 2010, this network consisted of 2694 dealers employing approximately 40,000 sales personnel and operating more than 8,000 sales and service outlets. Toyota owns 24 of these dealers and the remainder is independent. In addition, at March 31, 2010, Daihatsus sales distribution network consisted of 64 dealers employing approximately 7,300 sales personnel and operating approximately 10,000 sales and service outlets. Daihatsu owns 36 of these dealers and the remainder is independent. Toyota believes that this extensive sales network has been an important factor in its success in the Japanese market. A large number of the cars sold in Japan are purchased from salespersons who visit customers in their homes or offices. In recent years, however, the traditional method of sales through home visits is being replaced by showroom sales. The percentage of automobile purchases through showrooms has been gradually increasing, particularly in the minivan and recreational vehicle segments. Toyota expects this trend to continue, and accordingly plans to review all aspects of its sales activities, including its customer service model at showrooms, with a view toward improving customer satisfaction and operational efficiency.

Places of Manufacturing
Toyota has factories in most parts of the world, manufacturing or assembling vehicles for local markets. Toyota has manufacturing or assembly plants in Japan, Australia, India, Sri Lanka, Canada, Indonesia, Poland, South Africa, Turkey, Colombia, the United Kingdom, the United States, France, Brazil, Portugal, and more recently, Argentina, Czech Republic, Mexico, Malaysia, Thailand, Pakistan, Egypt, China, Vietnam, Venezuela, the Philippines, and Russia.

Toyota initiated the "Innovative International Multi-purpose vehicle" project (IMV) to optimize global manufacturing and supply systems for pickup trucks and multipurpose vehicles, and to satisfy market demand in more than 140 countries worldwide. IMV called for diesel to be made in Thailand, gasoline engines in Indonesia and manual transmissions in India and the Philippines, for supply to the countries charged with vehicle production. For vehicle assembly, Toyota would use plants in Thailand, Indonesia, Argentina and South Africa. These four main IMV production and export bases supply Asia, Europe, Africa, Oceania, Latin America and the Middle East with three IMV vehicles: The Toyota Helix (Vigo), the Fortuner, and the Toyota Innova.

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