Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
003030707
Rev.: 30/03/2009
TOYOTA AVANZA
THE ROLLOUT
Harni Winara, the Head of Marketing Planning & Analysis Department of Toyota Astra
Motor (TAM) Jakarta, Indonesia, identified a market opportunity in All Purposes Vehicle
(APV) low 4x2 segment in Indonesia. The figure was compelling and she was convinced
that TAM had the capability to capture the market. However, she ought to carefully lay out
a marketing strategy that upheld the Toyota image and customer expectation. She only had
a couple of months before meeting with the VP of Marketing in April 2003.
F. +6222-2504249 or
e-mail to ibcc@sbm-itb.ac.id
Version: 07-05-30
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As shown in Exhibit 1a, Indonesian automotive market showed a positive growth trend,
indicating a recovering market after the economic crisis. The total volume of cars sold in the
market was rising steadily. Composition of this growing market was depicted in Exhibit 1b,
describing the Indonesian automotive market that was dominated by Japanese
manufacturers such as Toyota, Mitsubishi, Suzuki, Daihatsu and Honda. In 2002, Toyota
gained the most shares by 26.5 percent of total market followed by Mitsubishi (23.7%),
Suzuki (20%), Isuzu (8.3%), Daihatsu (6.4%), and Honda (4%). Additionally, Exhibit 1b also
shows that Toyota had managed to stay on top of the competition until 2002 with a
progressive increase in its market share.
The composition of the overall market had dynamically evolved in the past several years,
specifically in the 4x2 class 2. Exhibit 2a depicts the significant growth in 4x2 class in the
Indonesian automotive industry. During 2000-2002, 4x2 vehicles led the market share.
Although the market share had dropped in 2001, the trend was projected to rise in the next
several years. It was expected to reach 57.7percent in 2005, with a sales volume estimation
of 174,000 units in 2002 and 219,000 units in 2005 (See Exhibit 2a).
Generally, the 4x2 class was divided into three subclasses based on engine capacity. 4x2 high
class had engine in range of 2000-3000cc, 4x2 medium in range of 1500-2500cc and 4x2 low in
range of 1000-1600cc (for more detail, see exhibit 1c). Market for 4x2 class was then
distributed among these three subclasses with their own respective market shares. The
medium 4x2 segment started its dominance in 2002-2003. The demand for low 4x2 segment,
however, was expected to grow significantly in 2004 and continued to grow in 2005. This
growing taste for 4x2 class offering performance and comfort comparable to sedan but with
a much higher flexibility in space and more suitable for most road conditions in Indonesia
had reduced the demand for sedan (Exhibit 2a showed that demand for sedan had
decreased during 2000-2002). In general, the data in Exhibits 2a & 2b described a promising
future for 4x2 vehicles market, due to the vehicles suitability for Indonesian current market
condition.
Toyota did not initially manufacture any product in the low 4x2 segments, but instead it
manufactured Kijang model in the medium 4x2 class. Kijang had been very popular and
had captured a large market share in Indonesia ever since it was first introduced. The
demand growth for low 4x2 segment caused Toyota to launch its first product in this
segment. Given the high quality of products, Toyota quickly gained a large market share.
Yet, the new market and the fierce competition in low 4x2 market with dominating old
players like Suzuki brought considerable challenge for Toyota as a new industry player.
For the above circumstance, Harni Winara was called upon top management exactly two
months ago. As Indonesian partner of Toyota Motor Corporation, PT. Toyota-Astra Motor
(TAM) intended to capture this emerging market by launching a new low 4x2 model not
only to compete but also to conquer the market. However, launching a new car in a
competitive market needed a lot of calculations. Those calculations had to be carefully
prepared, analyzed, discussed, and presented to provide guidance for top management in
making accurate decisions. The task was to be due within 5 weeks, and her boss was
stressing deadline.
Class of vehicle non sedan that has 2 wheel drive system, further divided by engine capacity and type (for
more detail, see Exhibit 1c)
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Harni Winara wondered how Toyota new product could be segmented, positioned and
delivered into market. As the task had been given to her, it was in her hands and her team to
bring future competition in low 4x2 markets, and of course her future credibility in the
company.
She gathered all her senior staff and analysts to appoint a task force team on the same day.
She wanted a lifestyle survey (product preparation survey), i.e. a more specific market
research in 4x2 market, specifically in low 4x2 market. The research would include the
general and specific markets trends, growth, composition, competition, and buyers profiles
including reasons for buying a car, demographic, actual users, and demand trend for the
next 2 to 5 years.
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market in mid 1970s. This popularly called Toyota Hardtop was a sport-utility vehicle
highly reputable not only in Indonesia, but also in the world. This car was not only used for
individual purposes, but also for industrial and military purposes. Specifically for
commercial purposes, Toyota launched Toyota Dyna and Toyota Hiace; the latter was now
discontinued. All of these models had been highly acceptable in the Indonesian market in
the previous 26 years, but the story of Toyotas real success in Indonesia started in 1977
when the first Kijang was launched in Jakarta. This multi-utility car was known for its easy
and low-cost maintenance and was later become a legend in the Indonesian automotive
market.
The first generation of Kijang sold only 1.168 units during 1977, but a year later drastically
increased to 4.629 units, four times than before. The number continued to rise during the
next several years. The second generation was launched in 1981 with a production volume
of 19.323 units in 1985. The third generation was later introduced in 1986 and sold 82.687
units in 1987, the largest sale ever in Kijangs history. Half of million Kijang had been sold
in Indonesia until 1995. In 2003, it was expected to reach the first million. No car had
previously been as successful as Kijang in Indonesian market before.
However, the impact of economic crisis leading to a higher price of an average car, and the
entrance of many lower 4x2 models threatened Kijangs sales performance. Kijang as a
medium 4x2 vehicles had greater performance than low 4x2 vehicles, and was priced higher
than its counterpart. Potential market for Kijang and Toyota in general could easily be lost
to low 4x2 if the opportunity was not seized by Toyota, and thus TAM. TAM must realized
the potential of the low 4x2 segment and seized it by introducing a new car for this market
while sustaining Kijang existence by improving its quality and marketing areas.
Facilities
With the intention of establishing an integrated plant, TAM established a new
manufacturing plant together with by parts and engine manufacturing plants. Currently,
TAM was supported by two centers of production (Sunter and Karawang) and one parts
center, the largest in Indonesia, which had been computerized since 1982 and was directly
on line with Toyotas parts center in Haruhi, Japan. The Sunter plant was designed for the
productions of commercial vehicles (Kijang and Dyna) while the one in Karawang was
specialized in producing sedans (Corolla, Soluna and Camry). Factory in Karawang (first
operated in 1998 with total investment Rp 462.2 million) was considered to be one of the
most advanced in Indonesia, built in 100 acres land with a test course and modern
installation for environmental safety purposes.
Main Dealers
TAM had built a vast network of sales dealers and after-sales services throughout Indonesia.
The company had networks of 5 main dealers operating 142 sales outlets and 101 after sales
outlets. TAM also supported by 126 highly and modern equipped registered repair stations
which diverse throughout Indonesia. With this wide network, TAM was succeeded in
gaining the most number of sales in automotive industry for the last few years. For an
example, in the year 2000, TAM sold 90,148 units, with an increase of market shares from
28.8% to 30.2% from the preceding year.
There were five main dealers with their respective geographical areas:
Auto 2000, main dealer for Toyota in Jakarta, West Java, East Java, East Nusa Tenggara,
Bali, Kalimantan and some parts of Sumatera.
PT New Ratna Motor, main dealer for Toyota in Central Java and Yogyakarta.
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NV Hadji Kalla Trd Co, main dealer for Toyota in South Sulawesi and South-East
Sulawesi.
PT Hasjrat Abadi, main dealer for Toyota in North Sulawesi, Central Sulawesi,
Gorontalo, Maluku, Ternate and Papua.
PT Agung Automall, main dealer for Toyota in Bali, Riau, Jambi, Bengkulu and Batam.
Toyota Way
Toyota Way was a management philosophy 3 adopted by the Toyota corporation that
included the Toyota Production System. The four main ideas with 14 principles guided
Toyota to become a high quality organization of the future, by learning how to think long
term, to have a process for solving problems, to add value to the organization by developing
its people, and to recognize that continuously solving root problems drives organizational
learning.
In the first principle of thinking long term, decisions must be based upon long-term
philosophy, even at the expense of short-term financial goals. Second idea was to have a
process for solving problems that basically based upon philosophy that a right process will
produce the right result. This idea was implied in seven principles: creating a continuous
process flow to bring problems to the surface, using a pull system to avoid overproduction,
leveling out the workload, building a culture of stopping to fix problems and getting quality
right the first time, and standardizing tasks and processes, are the foundation for continuous
improvement and employee empowerment, using visual control so no problems are hidden,
and using only reliable and thoroughly tested technology that serves people and processes.
Third idea was to add value to the organization by developing people was mainly designed
to improve human resources quality. This idea was implied through three principles: to
grow leaders who thoroughly understand the work, live the philosophy and teach it to
others, and to develop exceptional people and teams who follow your companys
philosophy. Lastly, to respect your extended network or partners and suppliers by
challenging them and helping them improve. Fourth idea was to continuously solving root
problems drives organizational learning was intended a learning oriented organization. This
would be achieved by implementing three principles, go and see for yourself to thoroughly
understand the situation (where managers are expected to go-and-see operations). Make
decisions slowly by consensus, thoroughly considering all options and implement decisions
rapidly. Become a learning organization through relentless reflection and continuous
improvement.4
Marketing Research
When four weeks had passed, Harni Winara held a meeting with her senior officers in the
department. They thought long and hard about the results of the marketing survey. Generic
market data and 4x2 market data were enclosed in the reports. In general, the growth of the
market had attracted the car makers to develop new products and win the market, or at the
least gain considerable market shares - A condition considered as challenging opportunity
for TAM and Toyota. As a market leader in the market, PT TAM wanted to capture the most
potential segments and provided them with the best car offered in the market. The task was
clear for Mr. Basuki and his team: To target the chosen segment, analyze and understand
3
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their characteristics and needs, and provide them with the best product available in the
market. These decisions would be based upon the marketing reports in their hands.
4x2 Market Growths and Composition
4x2 vehicle was a two-wheel-drive vehicle, either using rear-end or front-end wheels. The
low 4x2 had 1000cc engine for mini class and priced below IDR 105 million, while Multi
Purpose Vehicles (MPV) and Sport Utility Vehicles (SUV) types had 1300 -1500cc engines
(MPV and SUV were differentiate by models) and priced between IDR 105 200 million. As
for the medium 4x2, the mini class had 1500cc engine, while the MPV and SUV types had
1500 2000cc engines.
As stated earlier, the 1998 economic crisis had caused cars prices to soar. Prices for medium
4x2 vehicles jumped beyond reach for the majority of working class. For that reason, people
inclined to purchase the lowest class or the low 4x2 segment. Although, the price of low 4x2
segment increased as well, it was still affordable by most customers. Low 4x2 segment
naturally attracted buyers who were in the medium 4x2 potential markets, because low 4x2
provided similar characteristics as medium 4x2 but with considerably lower price. Market
for high 4x2 did not change much as it targeted a higher-end consumer market.
The marketing reports showed a consistent data as above discussion. The market was
composed of high 4x2, medium 4x2 and low 4x2 with the medium one carried out the most
sales (78% in 2000), but this composition had slightly changed in 2001 and 2002 and would
continue change in coming years, where demand for low 4x2 were rising and firmly took
more portion in market share, pressed down the share that used to be belonged to medium
4x2. Market forecast also indicated that in 2005, while the medium class still the market
leader, low 4x2 share had significantly growth with just 18.3% in 2000 to reach 37.4% in 2005,
predicted to push down medium classs share to just 57%. Market for high 4x2 was not very
much changed, as it had a specific own market, the forecast also predicted that the share
would unlikely to significantly change in the future. Situation above clearly showed that the
automotive industry, especially for low 4x2 market were grew in line with economic
recovery as working class of people strongly growth in Indonesia (See Exhibit 4a).
The low 4x2 private market composition was consisted of private usage with 70 % and
public transportation usage with normal condition of 30 %. In public transportation market,
low 4x2 was represented by chassis type of low 4x2 MPV (Carry & T 120) (See Exhibit 4c).
4x2 Market Distribution
Geographically, 35% of low 4x2 users domiciled in Jakarta and surrounding areas and 65 %
were living outside Jakarta, of which 51.5% were in other parts of Java, and the remaining
were living in Sumatera (7.4%), Kalimantan (1.7%) and Sulawesi (2.5%). It was evident that
Java market was central to low 4x2 segment contributing almost 90% of national sales. In
Java, Jakarta was still the largest market, followed by West Java (29.4%) and East Java
(14.2%) (See Exhibit 5a).
For the medium 4x2 regional market, 37.7% of market was inside Jakarta areas with the
remaining 62.3 % comprised of 39.4% in other parts of Java, and the remaining in Sumatera
(12%), Kalimantan (3.8%) and Sulawesi (4.3%). Likewise, Java was also vital for medium 4x2
segment contributing nearly 80% of national sales. Jakarta was still the largest market,
followed by West Java (19.9%) and East Java (13.1%) (See Exhibit 5b).
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Data further showed that the markets for low 4x2 and medium 4x2 were increasing in all
areas, and were concentrated in Jakarta, followed by West Java and East Java. Economic
growth in some parts of Indonesia also triggered the explosion of working class population.
This circumstance served as incubation for the lower-price car market for potential
expansion. On the other hand, the booming of low 4x2 new models between 2000 2001
had shrunk the medium 4x2 market composition where they had been overtaken by low 4x2
segment. However, the medium market was stable in 2002 as market was already adjusting
back to early composition. Markets of 4x2 high and Premium were in considerably stable
condition, with an average range of 3 - 7% in all areas except for Jakarta with more than 10%.
4x2 Market Competition
A further analysis of the 4x2 market competition did not end Mr. Basukis analysis on a high
note. Even when it was evident that low 4x2 had a constant growth for the past several
years and was showing an increasing future trend, yet, the prospect of low 4x2 market had
attracted numerous brands to compete in the market. Furthermore, the pressure also came
from upper class segment (medium 4x2) anxiously attempting to take back its portion of
market that had previously been taken by low 4x2 during the past several years. Therefore,
tight market competition was projected for low 4x2 in the near future.
Challenge for future Toyotas new low 4x2 car in market would come from direct competitor
of Suzuki, the incumbent market leader. Competition in low 4x2 markets had been strongly
controlled by Suzuki over the years. With its two models, Carry and Karimun, Suzuki had
been dominating the market. In low 4x2 MPV market, Carry succeeded in maintaining its
leadership with market share exceeding 80%. Market intelligence estimated that Carry
Futura would have a new model in 2004 but still with the existing cab-over model with
three-row seating. However, the entries of many new city car models in 4x2 low market had
negatively impacted Suzukis share. Specifically in city car market, Suzuki had also
dominated the market through its Katana model, but it had significantly lost its domination
since many new models entered this segment. Katana which led the market in 1998 with
almost 90 % of market shares, currently was experiencing a slump to 13.1 % in 2002, ranking
as one of the lowest in market share among others such as Atoz and Visio. Many of the new
comers in city car models were Korean made. Fortunately for Suzuki, the arrival of another
Suzuki model called Katana with its city car model was a big success defending Suzukis
domination in the market. Suzuki had secured its leadership in the market since they
launched Karimun that remained a market leader until 2002 in spite of a highly competitive
market. The market competition concluded that Suzuki was dominant in both 4x2 city car
model and 4x2 MPV (See Exhibit 6a).
In the regional market, Suzuki dominated the low 4x2 market for all regions during the
period of 2000-2002, both in city car market and low 4x2 private/MPV market with Carry
and Karimun being on the first and second place respectively. In Jakarta, Suzuki captured
70% of total low 4x2 market, while in the rest of Java, Suzuki acquired an average of 62% of
the market. Similar depiction occurred in Sumatera and Sulawesi by an average of 61% of
the market. The data also showed that, despite a market share decline in a few provinces
during particular period, Suzukis share had grown larger in most provinces. The remaining
shares were distributed among Visto, Atoz, Katana, Zebra, and T-120 respectively (See
Exhibit 6b).
Competitors Data
Low 4x2 vehicles came in a variety of models. One of them was a city car model. This model
featured an advance-style, better engine performance with economic fuel, modest size, more
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utilities, fairly-good maneuverability, and safety features including child protection. City
car model captured 29% of low 4x2s targeted segment with a slightly high percentage of
women users and families with children, and trend-conscious customers. Such cars
included Karimun (positioning itself as The real city car), Visto, and Atoz. Karimun was
preferred mostly for economic, family use, performance, brand credibility, price, and parts
availability reasons. Visto (with tagline Style over mind) was known mostly for up-todate model, driving convenience and ease, brand credibility, price, small size, and trendy
style. Additionally Atoz (with tagline Perfect car, all needs can be fulfilled) was fancied
for up-to-date model, performance, brand credibility, and for exterior appearance.
The second model was the MPV model including Carry, Zebra, and T-120. Consumers
prefer Carry (The real van) for economic, family use, performance, brand credibility, price,
and parts availability reasons. Zebra (As sophisticated as Sedan) was purchased mostly
for the same reasons as Carry, while with T-120, they mainly purchased the car for
maintenance cost reason.
As mentioned above, pressures for low 4x2 segment came from the upper class model. One
of the strongest competitors came from medium 4x2 used such as Toyota Kijang and Kuda
(although they were priced higher). These models had better durability, more stylish, with
child protection feature, fairly large capacity with better maneuverability, fuel-efficient with
good engine performance and less trouble. These cars were mostly owned by people with
family, trend-conscious, and those concerned with economic fuel efficiency and road
performance. Kijang (The most trusted family car) was chosen for economic, family use,
performance and brand credibility purposes and for price/parts availability and resale value
reasons. Kuda was preferred for its trendy model, complete equipment and luxurious
purposes, and parts availability and styling as well as passenger capacity reasons. For the
new medium 4x2, survey reported that Kijang would have a new model launch in the
second semester of 2004, but standard model would be pulled from the market. Mitsubishi
Kuda was also predicted to launch its new model in the middle of 2004 (See Exhibit 7).
Low 4x2 Buyers Profile
Based on 2001 survey on previously-owned car market on Minicab and Kijang, it was found
that most of the customers inclined to purchase a bonnet minivan due to the safety image
and model. This model has similar utility to Kijang in terms of passenger capacity and
loading. Customers also preferred to have performance car (PC) like driving, comfort, and
the current new Kijang was out of their price range. As low 4x2 cars were priced between
IDR 70 110 million (approx.US$7,700-12,200), potential customers of low 4x2 were those
willing to purchase cars in that range. Demographically, they were married men from
working class Social Economic Status (SES) with income of IDR 4-8 million/month (US$450900/month), fairly young (median age of 32.5 years old) with higher education degree
(university). Specifically for low MPV users, they had same percentage of university &
senior high school, and most of them small business owner & staff.
In psychographic profile, 4x2 low users were mostly those who value relationship with
others, enjoyment and future goals with lifestyle activities, more individual-oriented
activities such as reading, watching TV, computer, etc. In purchasing cars, they demanded
functional benefits of economical (i.e., economic fuel consumption) and road performance
(i.e., convenience in driving). For emotional reasons, they preferred benefits such as
luxurious (i.e., credible brand) and socially oriented (demand a family car type). Their car
ownership profiles showed that generally, they were identified as first-time car purchaser,
only having one car in the household and were intending to purchase Kijang as their second
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car, mainly due to its economic value (price, economic fuel, low maintenance cost, resale
value). For them, a car was purchased for basic transportation usage (i.e. for commuting to
work and/or school)
Research results also showed that Toyotas brand image was strong among this 4x2 low
segment, especially among low MPV and Kijang previously-owned users (in terms of
trustworthy, after sales service guarantee, and resale value). However, among the city car
users, Toyota was considered weak in fulfilling emotional benefit (especially aesthetic
factor).
Furthermore, the potential car buyers could be divided into three segments based on their
life stages that differentiate their characteristics and also requirement/need towards cars. In
the first group were young people who just started their career as staff or owned a small
business (age median of 30 years old), married with a young family, mainly first car buyer
with much concerned on economic, style, and road performance. In the second group, older
people who were less likely to improve their social economic status in the near future,
worked as staff/manager or owned a small business (age median 43 years old) with lower
education, and family with kids age more than 6 years old. They usually bought car as
replacement for the one they owned, much concerned in capacity and economic. Thirdly,
young students from wealthier family where they still depended on (age median 23 years
old), bought car as addition for the one they already had in the house, main concerned on
styling and road performance.
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due to long wheel base while still maintaining good maneuverability with minimum turning
radius 4.7m (exceed both Taruna short & long and also Karimun).
Chassis
It uses adoption of Unitary Frame Chassis (semi monocoque like Carnival & Trajet) to
achieve maximum strength and stability.
Suspension
Adoption of McPherson Strut for front suspension and 5 Link with Coil Spring for rear
suspension to get better comfort ability and stability compare to competitors. It will be
admirable driving experience.
Engine
Adoption of the most advanced engine compare to competitors 1.3L 4Cylin-line 16 valves
Double Over Head Camshaft with Computerized Engine Management System that control
both fuel and ignition system to achieve superb performance and good fuel economy. Has
acceleration performance by good power to weight ratio. This engine had the best power
output per liter displacement which means this engine is the most efficient one. Fuel
economy level is the best among its competitors.
Complete Exterior Features
Multi reflector headlamp, fog lamps (GL), alloy wheel 14 for GL grade and steel wheel with
wheel cap for DLX grade, electric outer mirror (GL), rear spoiler with high mount stop lamp
(GL), rear wiper, multi reflector rear combination lamp, lift up type back door.
Complete Interior Features
Double air conditioning for GL and single air conditioning for DLX, 3 spokes urethane
steering wheel, molded door trim, power window and power door lock, 1 DIN audio with 4
speakers (GL), stylish & modern meter combination design, 3 row seat with front face 3rd
row seat, 3rd row seat can be folded to provide luggage space, abundant storage places.
Complete Safety Features
GOA (Global Outstanding Assessment) body as a Toyota high acclaimed standard of safety,
side impact beam to reduce impact of side collision, safety belt for front and rear seat no.1
(GL), collapsible steering wheel for driver safety, child lock protector, 14 front disc and rear
drum brake will provide superb breaking performance (See Exhibit 8).
These all capabilities and advantages would produce a new value of global compact
minivan. The Toyota low 4x2 car concept was designed to appeal working class and used
car owners given its affordable price. Targeted price would be in the range of IDR 75 95
millions, well below the price range of all types of new Kijang, above Zebra and T-120 and
around same price level with Carry Futura, Atoz, and Karimun. The new Toyota was to be
the runner-up to Kijang in terms of sales volume in order for Toyota to maintain the number
one position in Indonesian automotive market. Secondly, to grasp Kijang pre-crisis users
that now could not afford to buy one. Thirdly, to absorb working class growth demand for
low price car (IDR 70-110 mil) with multipurpose type.
Marketing Challenge
As all the above data was collected and analyzed by Harni Winara and her team, it was time
to create a marketing plan for this new product. Furthermore, the top management had
specifically set a high target. They wanted the new Toyota to be the market leader and to
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gain at least 30% market share. The above objective was to be accomplished by absorbing
potential demand of city cars (Atoz, Visto, Kaarimun, and Katana), low 4x2 cab-over models
(Carry, Zebra, and T-120) and medium 4x2 Standard (Taruna and Kijang) as well as by
absorbing potential previously-owned car market (Kijang, Taruna. Kuda, and Panther) (See
Exhibit 9).
The new Toyota was to be named Avanza. It had to be properly packaged to gain
competitive advantages in the market. Considering the tight competition in the low 4x2
markets and strong opponent like Suzuki with Carry and Karimun models leading the
market, the new Toyota had to be carefully and effectively launched, while at all times
avoiding any possible market failures. Therefore, the marketing plan had to be carefully
prepared, taken consideration factors such as potential segments, target segments, and
product positioning. Harni Winara and her team would now decide the marketing plan and
strategy for the new Toyota. The package would include the product, price, place, and
promotion activities.
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Exhibit 1a
Forecast of Total Market Volume
(In Average Unit/ Month)
44,494
Units in Thousands
40,274
29,543
26,484
2002
2003
2004
2005
YEAR
Exhibit 1b
Total Market Shares
TOYOTA
26.5
28.5
29.4
21.7
18.5
34.2
MITSUBISHI
23.7
DAIHATSU
HONDA
ISUZU
Others
Percentage
SUZUKI
20.0
19.8
6.4
4.1
8.3
6.1
6.1
5.6
17.0
16.7
38.8
14.7
16.3
14.0
9.9
9.1
10.4
9.6
10.1
9.4
4.7
5.2
4.9
19.3
17.8
15.6
13.5
12.7
2002
2003
2004
2005
2006
YEAR
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Exhibit 1c
Segmentation of Indonesian Automotive
Type
Toyotas
Product
Vios
Class
Mini
Starlet
-
Suzuki
Baleno,
Hyundai
Accent, Honda City
Honda
Civic,
Mitsubishi
Lancer
Honda Accord, Mercedes CClass, BMW 3 series, Jaguar XType
Audi A6, Mercedes E-Class,
BMW 5 series, Jaguar S-Type
Audi A8, Mercedes S-Class,
BMW 7 series, Jaguar XJ
Mercedes CLK
BMW Z-Class
Suzuki Karimun, Atoz, Visto
Suzuki Carry, T-120, Hi-Jet
Suzuki Katana
Corolla
Small
Camry
Medium
Sedan
Crown
Luxury
Premium
Coupe
Sports
Low
4x2
(2 Powered
Wheels)
Medium
High
Premium
Low
4x4
(4 Powered
Wheels)
2 Ton
(Commercial)
Medium
High
Premium
Mini 1000cc
MPV
1300 1600cc
SUV
1300 1600cc
Mini 1500cc
MPV
1500 2500cc
SUV
1500 2500cc
Mini 1800cc
MPV
2000 3000cc
SUV
2000 3000cc
Others Product
Kijang
VW Golf
VW Caravell, Previa
KIA Sportage
Ford Escape/Everest, Daihatsu
Taft/Rocky
Land Rover, Cheerokee
Range Rover
Benz MB, Elf, Dutro
Land Cruiser
Dyna
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Exhibit 2a
Total Market Composition & Forecast of Sedan, 4x2, 4x4 and Commercial Vehicles
15.8
8.4
8.5
8.5
8.4
54.8
55.6
56.8
57.7
0.4
0.4
0.5
0.5
33.2
36.4
35.5
34.3
33.4
2001
2002
2003
2004
2005
11.7
Sedan
54.4
Percentage
4x2
59.3
4x4
0.7
0.5
24.5
Commercial
2000
YEAR
Exhibit 2b
Total Market Composition & Forecast of 4x2 and All Other Types
8.4
11.0
17.1
15.1
34.3
31.5
Sedan
4x2 MED
4x2 Hi+Pr
4x4
Percentage
4x2 LOW
6.6
5.5
25.7
27.7
32.4
25.8
28.9
3.4
5.8
19.6
19.7
20.1
14.6
14.8
13.3
2.2
1.9
2002
2003
2 TON
5 TON
8.4
4.6
27.8
4.6
3.3
19.5
18.2
10.7
1.7
10.4
1.8
2004
2005
2006
2.0
YEAR
14
INDONESIABUSINESSCASECENTER
003030707
Exhibit 3
ORGANIZATIONAL STRUCTURE AND ITS BUSINESS FUNCTION OF EACH UNIT COMPANYS SCHEME
ToyotaMotorCorporation
PT.AstraInternational,Tbk.
49%
51%
Note:
ToyotaAstraMotor
Finance
Components
CBUs
ProductionGroup
CastingPlant
EnginePlant
StampingPlant
Scraps
CKDComponents
FromJapan
AssemblyPlant
CBUs
SupplierofLocally
Manufactured
Components
MarketingGroup
OverseasMarket
Vehicle(Brunei,PNG)
Engine(Malaysia,Taiwan,Philippines)
CylinderBlock(Japan)
Export
Dealers
DomesticMarket
Customers
15
INDONESIABUSINESSCASECENTER
003030707
Exhibit 4a
Total Market Composition & Forecast of 4x2 Vehicles
18.3
27.3
4x2 Medium
Percentage
4x2 Low
78.0
65.8
31.3
31.1
62.4
63.1
35.2
37.4
59.1
57.0
6.9
6.3
5.8
5.7
5.7
2000
2001
2002
2003
2004
2005
YEAR
Exhibit 4b
Comparison and Forecast in Total Market Volumes
(Total Volumes/ year)
355
Units in Thousands
Total Volume
(Sedan, 4x2, 4x4,
Commercial)
301
179
300
318
325
164
174
181
45
55
56
2001
2002
380
2003
202
71
2004
219
82
2005
YEAR
16
INDONESIABUSINESSCASECENTER
003030707
Exhibit 4c
4x2 Low Private versus Public Compositions
Percentage
Private
72
88
71
82
91
Public
Transportation
28
1998
29
18
12
1999
2000
2001
2002
YEAR
Exhibit 5a
Contribution of Each Area in Low 4x2 Private Market In 2002
4x2
Low
Private
Market
1998
1999
2000
2001
2002
Contribution
DKI
West
Java
Central
Java
1,342
2,160
8,035
9,978
10,948
34,0
1,785
1,587
5,271
8,010
9,387
29,4
1,140
831
2,204
2,890
2,514
7,9
East
Java
1,333
1,236
3,341
4,523
4,538
14,2
Sumatera
Kalimantan
796
498
1,876
2,130
2,351
7,4
290
209
317
578
530
1,7
Sulawesi
306
349
405
886
802
2,5
National
7,999
7,774
22,253
30,037
31,950
100,0
Contribution
Kalimantan, 1.70%
Sulawesi, 2.50%
DKI
Sumatera, 7.40%
DKI, 34.30%
East Java, 14.20%
Central Java, 0.00%
West Java
Central Java
East Java
Sumatera
Kalimantan
Sulawesi
17
INDONESIABUSINESSCASECENTER
003030707
Exhibit 5b
Contribution of Each Area in Medium 4x2 Market In 2002
1998
1999
Medium
2000
2001
2002
Contribution
4x2
DKI
West
Java
Centra
l Java
East
Java
11,441
17,968
51,993
40,925
38,113
37,7
4,291
6,112
20,880
19,463
20,102
19,9
2,221
3,080
9,174
7,014
6,442
6,4
5,094
5,342
16,990
14,730
13,230
13,1
Sumatera
3,926
4,732
14,782
12,685
12,172
12,0
Kalimantan
1,228
1,132
3,443
3,967
3,868
3,8
Sulawesi
2,226
1,536
4,444
3,957
4,330
4,3
National
32,690
42,151
124,762
106,157
101,214
100,0
Contribution
DKI
Sumatera, 12.00%
West Java
DKI, 37.70%
Central Java
East Java
Sumatera
West Java, 19.90%
Kalimantan
Sulawesi
18
INDONESIABUSINESSCASECENTER
003030707
Exhibit 6a
Market Shares Competition & Growth of 4x2 Low
Carry
38
Karimun
42
47
58
67
Atoz
Katana
Percentage
Visto
13
16
12
22
13
15
11
Zebra
15
12
6
7
25
16
T120
1998
12
10
1999
10
6
2
2000
2001
2002
YEAR
Exhibit 6b
Contribution of Medium 4x2 Market In Each Area
4x2 Medium
4x2 High &
Premium
percentage
4x2 Low
13
20
24
78
69
65
12
11
2000
2001
2002
year
19
INDONESIABUSINESSCASECENTER
003030707
2000
37%
23%
6%
13%
9%
10%
2%
Carry
Karimun
Visto
Atoz
Katana
Zebra
T-120
2001
45%
13%
13%
14%
5%
8%
2%
2002
49%
16%
12%
10%
5%
5%
2%
4x2 Low
4x2 Medium
4x2 High &
Premium
percentage
37
46
73
59
50
2000
2001
2002
year
2000
48%
17%
0%
8%
4%
10%
14%
Carry
Karimun
Visto
Atoz
Katana
Zebra
T-120
2001
48%
10%
1%
11%
4%
10%
17%
2002
52%
10%
5%
8%
3%
9%
13%
4x2 Low
4x2 Medium
4x2 High &
Premium
percentage
23
25
80
70
68
2000
2001
2002
year
20
INDONESIABUSINESSCASECENTER
003030707
2000
58%
20%
0%
5%
5%
7%
4%
Carry
Karimun
Visto
Atoz
Katana
Zebra
T-120
2001
59%
11%
5%
11%
5%
8%
2%
2002
53%
9%
12%
2%
5%
7%
1%
4x2 Medium
4x2 High &
Premium
percentage
4x2 Low
19
28
30
79
66
64
1
2000
2001
2002
year
2000
50%
25%
0%
0%
5%
11%
9%
Carry
Karimun
Visto
Atoz
Katana
Zebra
T-120
2001
53%
10%
8%
9%
4%
10%
5%
2002
48%
10%
13%
9%
4%
9%
6%
Sumatera (10% )
4x2 Medium
4x2 High &
Premium
percentage
4x2 Low
14
22
29
84
75
67
2000
2001
2002
year
21
INDONESIABUSINESSCASECENTER
003030707
2000
49%
21%
0%
7%
5%
7%
11%
Carry
Karimun
Visto
Atoz
Katana
Zebra
T-120
2001
47%
11%
1%
16%
4%
10%
10%
2002
48%
10%
3%
14%
3%
11%
10%
Sulawesi (3% )
9
4x2 Medium
4x2 High &
Premium
percentage
4x2 Low
31
29
65
66
2000
2001
2002
89
year
Carry
Karimun
Visto
Atoz
Katana
Zebra
T-120
2000
54%
5%
0%
1%
9%
25%
6%
2001
59%
2%
6%
4%
4%
22%
3%
2002
65%
0%
6%
2%
3%
19%
5%
22
INDONESIABUSINESSCASECENTER
003030707
Exhibit 7a
Specification Comparison with Competitors
Overall Length
Overall Width
Overall Height
Wheel Base
Ground Clearance
Min. Turning Radius
Curb Weigth (Kg)
Displacement (L)
Engine Type
Fuel System
Max. Output (PS)
Max. Torque (kgm)
Power to weight Ratio (kg/PS)
Power / Liter / E/G Displacement
Fr. Suspension
Fr. Spring
Rr. Suspension
Rr. Spring
Chassis
Fuel Consumption ratio (km/L)
Grade
GL
Avanza
Taruna "C/F
4,070
4.175/4.425
1,630
1,620
1,680
1,710
2,655
2.500/2.750
170
195
4.7
4.9/5.3
1,091
1,140
1.3
1.5
16V DOHC
16V SOHC
EFI
EFI
84
86.1
11.8
11.8
13.0
13.2
64.6
57.4
MacPherson strut
Coil
5 Link
Coil
Unitary frame Monocoque
12
Engine
1.3 L
DLX
Carry 1.5
3,875
1,570
1,915
1,970
187
4.2
1,050
1.5
8V SOHC
Carb.
77
11.2
13.6
51.3
Rigid Axle
Leaf
Chassis
9.8
Trans
AT*
MT
Zebra 1.5
3,835
1,560
1,860
2,080
187
4.2
1,050
1.5
16V SOHC
EFI
86.1
11.8
12.2
57.4
Chassis
Atoz/Visto
3,495
1,495
1,615
2,380
160
4.4
820
1.0
12V SOHC
EFI
55
8.4
14.9
55.0
Karimun
3,410
1,575
1,705
2,335
160
4.8
865
1.0
8V SOHC
Carb.
55
10.2
15.7
55.0
Kijang Short
4,270
1,670
1,770
2,400
185
4.9
1,300
1.8
8V OHC
EFI
84
14.6
15.5
46.7
23
INDONESIABUSINESSCASECENTER
003030707
Exhibit 7b
Competitors Buyers Profile
USED
KIJANG
Mostly
married man
(31.4yo)
ATOZ
VISTO
KARIMUN
ZEBRA
CARRY
T 120
KUDA
TARUNA
Majority
single male
(28yo)
Married male
(34.4yo)
Married male
(32.6yo)
Married male
(34.4yo)
Married male
(35.7yo)
Married male
(34.6yo)
Married male
(31.5yo)
OCCUPATION
Mostly
entrepreneur
Mostly
entrepreneur
Mostly
entrepreneur
Mostly
entrepreneur
Mostly
entrepreneur
Mostly
entrepreneur
& student
Mostly
entrepreneur
& student
MEDIAN
INCOME/ IDR
4.5 million
/month
Mostly
student/
entrepreneur
& staff
6 million
/month
Same portion
of
male/female
&
single/marrie
d (30.9yo)
Mostly
entrepreneur
& student
6.88 million
/month
4.74 million
/month
6.25 million
/month
4.74 million
/month
5.6 million
/month
7.5 million
/month
8.4 million
/month
EDUCATION
Mostly have
university
education
Mostly have
university
education
Mostly have
university
education
Have senior
high school
education
Well
educated
people
(university)
Mostly have
senior high
school
education
Mostly have
university
education
background
Mostly have
university
education
background
REASON TO
BUY
Parts
availability &
resale value
Exterior style,
fuel economy
& price
Style, small
size & price
Price, parts
availability &
resale value
Parts
availability &
price
Price, parts
availability &
resale value
Almost same
portion
university &
senior high
school
education
Parts
availability &
maintenance
cost
Parts
availability &
price
PREFERENCE
E/G
performance,
resale value,
credible
brand &
family car
E/G
performance,
quality &
credible
brand
Up to date
model,
convenient to
drive,
credible
brand & easy
to drive
Economic
fuel, family
car, E/G
performance
& credible
brand
Economic
fuel, family
car, E/G
performance
& credible
brand
Economic
fuel, family
car, E/G
performance
& credible
brand
Parts
availability &
styling while
also need
passenger
capacity
Style,
complete
equipment &
luxurious
MARITAL
STATUS/ AGE
MEDIAN
(1US$ = IDR9400 in
September 2007)
Economic
fuel, E/G
performance,
credible
brand, family
car & good
quality
Styling, E/G
performance &
young
24
INDONESIABUSINESSCASECENTER
003030707
Exhibit 7c
4 X 2 Models Comparisons
4 x 2 Med Used (45%)
Characteristics
Selling Point
22.30%
S
e
g
m
e
n
t
1
1. Profile almost
1. Young Family
1. Young Family
1. Better durability
2. High Education
2. More stylish
3. Safety : GOA,
with more
different need
complete
4. Income 4-8
mil/month
5. Just start work or
starts small business
6. Need : Value for
money, road
performance &
capacity
child protection
4. Quite big capacity
5. Economic fuel
2. Need : Less
trouble & less
concerned with
performance
complete
equipment
equipment)
2. Safety : GOA,
child protection
3. Fairly large
2. Slightly lower
education
3. Mostly first
car buyers
4. Income IDR 48 mil/month
5. Small
1. Bonnet type
(safety & easy
maintenance)
2. Economic fuel
1. Advance styling
2. A bit high
2. Better engine
percentage of
performance with
women
economic fuel
3. High education
performance
5. Income 4-8
& maneuverability
mil/month
entrepreneur
6. Majority as staff
maneuverability
business
& practical
6. Lived at
remote area
7. Need :
economic &
capacity
25
INDONESIABUSINESSCASECENTER
003030707
Exhibit 7c (Cont.)
4 X 2 Models Comparisons
4 x 2 Med Used (45%)
Characteristics
Selling Point
15.30%
S
e
g
m
e
n
t
2
1.
2.
3.
Family with
2. Less trouble
A bit lower
education
with better
Mostly as
maneuverability
replacement
4.
5.
6.
4. Economic fuel
Income 4-8
consumption
mil/month
with good
Work as staff or
engine
manager
performance
Need :
1.
2.
Less trouble
2. Slightly lower
3.
with better
3. As replacement car
maneuverability
4. Income 4-8mil/month
Economic fuel
5. Work as staff or
1. Family with
education
3. Mostly as
replacement
4. Income 4-
4.
consumption with
8mil/month
good engine
5. Work as staff or
performance
manager
6. Need : economic,
manager
6. Need :
economic, style
economic,
good engine
economic, style
& capacity
performance
& capacity
trouble
26
INDONESIABUSINESSCASECENTER
003030707
Exhibit 7c (Cont.)
4 X 2 Models Comparisons
4 x 2 Med Used (45%)
Characteristics
Selling Point
7.40%
S
e
g
m
e
n
t
1.
Car bought by
1.
Advance styling
parents
2.
Less trouble
2.
Additional car
3.
Economic fuel
fuel consumption
3.
Mostly student
consumption with
trouble,
or just start
good engine
capacity, style
working &
performance
& also
economic fuel
depend on
4.
1.
Advance styling
parents
2.
Less trouble
2.
Additional car
3.
Economic fuel
3.
Mostly student or
consumption
good engine
with good
performance
performance
& depend on
engine
2. More economic
money (complete
purchase
comfortably
equipment with
A bit wealthier
1.
Car bought by
1. Advance styling
family
5.
4.
1. Same profile
affordable price)
4. Not too big but
5.
med used
1. Advance styling
2. More economic fuel
consumption while
performance
money (complete
equipment with
A bit wealthier
can carry 7
affordable price)
family
adults
Need : style,
comfortably
purchase
4.
Need : style,
capacity &
capacity &
seat
economic fuel
4.
economic fuel
27
INDONESIABUSINESSCASECENTER
003030707
Exhibit 8
Avanza Product Line
ITEM
Radiator Griller
Fr Fog Lamp (Multi)
Door Mirror
Wheel
Rr Spoiler
Seat Upholstery
Head Rest Upholstery
Sun Visor
Audio
Rr Console Box
Air Conditioner
1.3 DLX
Colored
W/O
Pivot, Colored
Full wheel cap + Steel
W/O
Fabric A (Med)
Fabric A (Med)
With (D & P)
W/O
W/O
Single
1.3 GL
Chromed List
With
Electric, Colored
Aluminum
With (With High Mounted Stop Lamp)
Fabric B (High)
Fabric B (High)
With (D & P), With Mirror
Radio Cassette + 4 speakers
With
Double
Exhibit 9
Potential Demand
4x2 Med
Std, 17%
4x2 Low
MPV, 9%
4x2 Med
Used,
45%
City Car,
29%
28