CERTIFICATE

This is to certify that Mr. Vikas Kumar Joon, student of MBA “Management
education and research institute” has completed his summer internship project
report on “Marketing Strategies of Toyota” in the year 2017-2019 in final
fulfillment of MBA. He has successfully completed the project under my
constant guidance and support.

1
 DECLARATION

I hereby declare that the summer internship project report titled “Marketing
Strategies of Toyota” is my original work and has not been published or
submitted for any degree, diploma or other similar titles elsewhere. This has
been undertaken for the purpose of partial fulfillment of MBA at
Management Education and Research Institute

Date: VIKAS KUMAR JOON

MBA 3RD SEM
Roll No. 41915103917
Batch: 2017-2019

2
 ACKNOWLEDGEMENT

I express my gratitude to my esteemed faculty guide, MS. PARMINDER KAUR for

his/her valuable critiques, assistance and encouragement, which enabled me to carry on
my dissertation report successfully.

I attribute my honors in showing my feelings, indebtedness and thankfulness to my

parents for giving their valuable inputs and time.

VIKAS KUMAR JOON

MBA 3RD SEM
Roll No. 41915103917
Batch: 2017-2019
 TABLE OF CONTENTS
CONTENT PAGE NO.

EXECUTIVE SUMMARY 07

INTRODUCTION 09

➢ CAR MODELS

➢ OVERVIEW

➢ CORPORATE DATA

➢ GUIDING PRINCIPLES

➢ PERCEPTS

➢ BOARD OF DIRECTORS

➢ LOCATION

➢ MANUFACTURING SUBSIDIARIES & AFFILIATES

➢ GROWTH

➢ MARKET SHARE

➢ COMPETITORS

LITERATURE REVIEW 30

RESEARCH METHODOLOGY 44

➢ OBJECTIVE

➢ TYPE OF DATA

➢ SAMPLE SIZE AND AREAS COVERED

➢ STATISTICAL AND PRESENTATION TOOLS USED

➢ LIMITATIONS OF STUDY

GRAPHICAL DATA INTERPRETATION 46

4
FINDINGS AND ANALYSIS 57

SWOT ANALYSIS 58

QUESTIONNAIRE 61

RECOMMENDATIONS 64

CONCLUSION 65

BIBLIOGRAPHY 66

5
Replica of the Toyota Model AA, the first production model of Toyota in 1936

6
 EXECUTIVE SUMMARY

The success of any business entity solely depends on how effectively does it utilizes its optimum
resources and how soon does it make arrangements for the removal of the customer’s grievances.
Moreover, the company should always be ready to make necessary changes according to the
requirement in order to attract more customers so as to maintain a substantial growth in the
market.

I have tried to put my best efforts to complete this task on the basis of skill that I have achieved
during my studies in the institute.

I have tried to put my maximum effort to get the accurate statistical data. If there is any error or
any mistake in collecting the data, please ignore it.

The story of Toyota Motor Corporation began in September 1933 when Toyoda Automatic
Loom created a new division devoted to the production of automobiles under the direction of the
founder's son, Kiichiro Toyoda. Soon thereafter, the division produced its first Type A Engine in
1934, which was used in the first Model A1 passenger car in May 1935 and the G1 truck in
August 1935. Production of the Model AA passenger car started in 1936.

Although the Toyota Group is most well known today for its cars, it is still in the textile business
and still makes automatic looms (fully computerized, of course), and electric sewing machines
which are available worldwide.

Toyota Motor Co. was established as an independent company in 1937. Although the founding
family name is Toyoda, the company name was changed to:

➢ Signify the separation of the founders' work life from home life;

➢ Simplify the pronunciation, and

7
 ➢ Give the company an auspicious beginning. Toyota is considered luckier than Toyoda in
Japan, where eight is regarded as a lucky number, and eight is the number of strokes it
takes to write Toyota in Katakana.

During the Pacific War the company was dedicated to truck production for the Imperial Army.
Because of severe shortages in Japan, military trucks were kept as simple as possible. For
example, the trucks had only one headlight on the center of the hood.

Commercial passenger car production started in 1947 with the model SA. In 1950 a separate

sales company Toyota Motor Sales Co. was established (which lasted until July 1982). In April

1956 the Toyopet dealer chain was established.

8
 INTRODUCTION

The Headquarters of Toyota in Toyota City, Japan

9
 ASSEMBLY PLANTS OVER THE WORLD

Toyota has factories all over the world, manufacturing or assembling vehicles for local markets,
including its most popular model, the Corolla. Toyota has manufacturing or assembly plants in
the United States, Australia, Canada, Indonesia, Poland, South Africa, Turkey, the United
Kingdom, France, Brazil, and more recently India, Argentina and Czech Republic. Toyota also
builds and sells cars in China in a joint venture with Tianjin Xiali. Toyota New Zealand
assembled vehicles until 1998, when it switched to importing cars from Japan and Australia.
Cars from these plants are often exported to other countries.

10
TOYOTA PRODUCTS & SERVICES

Innova

Camry

Avalon

Matrix

Corolla

Prius

Trucks:

11
Tacoma

Tundra

Vans:

4runner

Land cruiser

12
In 2006, Toyota was engaged in a variety of projects designed to solidify its foundations while
continuing to grow.

On the product front, Lexus launched its new flagship model, the LS, and the new global Camry
went on sale. In Japan, a new Corolla range was introduced, emphasizing the importance of this
best-selling car.

In manufacturing, several new projects were started around the world. In May, manufacture of
the Camry began in Guangzhou, China, while in the United States, the Kentucky plant, which in
October celebrated 20 years of production, started manufacturing the first Toyota hybrid vehicle
to be made in North America, the Camry Hybrid. In November, the Texas plant began producing
the new Tundra truck, a key vehicle in Toyota’s North American lineup. In Japan, Toyota Motor
Kyushu, Inc. began full-scale operations at its engine factory, while Toyota Motor Tohoku Co.,
Ltd. increased its manufacturing capacity.

In human resources development, following the establishment of the Asia Pacific Global
Production Center in Thailand in August 2005, Toyota established the North American
Production Center in the U.S. in February, and the European Global Production Center in the
United Kingdom in March. Established as branches of the Global Production Center in Japan,
these were created to spread Toyota’s manufacturing knowledge and skills throughout the world
in pace with the rapid growth of Toyota’s overseas manufacturing. The centers educate trainers
for local manufacturing plants in all regions, with trainees passing on what they learn to team
members on their return to their plants.

In R&D, Toyota focused its efforts on three key areas: environment, safety and energy. It made a
special effort in the area of the environment by expanding its lineup of hybrid vehicles, and has
worked on R&D relating to plug-in hybrid. In addition, as part of Toyota’s efforts to respond to
the diversification of energy, in 2012 Toyota plans to introduce a flex fuel vehicle* in the
Brazilian market that will run on 100% bio-ethanol fuel. From this point on, based on the
philosophy of providing “the right car, in the right place, at the right time,” and in accordance
with the infrastructure and customer needs of each region, Toyota will continue to promote
efforts to develop environmentally friendly technology and vehicles.

13
 CORPORATE DATA

Company Name Toyota Motor Corporation

Head Office 1 Toyota-Cho, Toyota City, Aichi Prefecture 471-8571,

Japan
Phone: (0565)28-2121

Tokyo Head 1-4-18 Koraku, Bunkyo-ku, Tokyo 112-8701, Japan

Office Phone: (03)3817-7111

Nagoya Office 4-7-1 Meieki, Nakamura-ku, Nagoya City, Aichi

Prefecture 450-8711, Japan
Phone: (052)552-2111

Establishment August 28, 1937

Since its foundation, Toyota has conducted business with “contributing to the development of a
prosperous society through the manufacture of automobiles” as a guiding principle. When I
became president two years ago, I called on all employees to work with me in returning to our
origins and asking earnestly whether Toyota is truly contributing to society and whether we are
doing everything we should be doing. On the occasion of Toyota’s 70th anniversary, we will
reinforce our measures designed to return to our core principle, which is to "repay the earth and
society through technological innovation (and contribute to enhancing the quality of life
everywhere

14
 GUIDING PRINCIPLES

➢ Honor the language and spirit of the law of every nation and undertake

open and fair corporate activities to be a good corporate citizen of the

world.

➢ Respect the culture and customs of every nation and contribute to

economic and social development through corporate activities in the

communities.

➢ Dedicate ourselves to providing clean and safe products and to

enhancing the quality of life everywhere through all our activities.

➢ Create and develop advanced technologies and provide outstanding

products and services that fulfill the needs of customers worldwide.

➢ Foster a corporate culture that enhances individual creativity and

teamwork value, while honoring mutual trust and respect between labor

and management.

➢ Pursue growth in harmony with the global community through

innovative management.

➢ Work with business partners in research and creation to achieve stable,

long-term growth and mutual benefits, while keeping ourselves open to

new partnerships.

15
 TOYOTA PERCEPTS

➢ Be contributive to the development and welfare of the country by working together,

regardless of position, in faithfully fulfilling your duties.

➢ Be at the vanguard of the times through endless creativity, inquisitiveness and pursuit of

improvement.

➢ Be practical and avoid frivolity.

➢ Be kind and generous; strive to create a warm, homelike atmosphere.

➢ Be reverent, and show gratitude for things great and small in thought and deed.

16
 BOARD OF DIRECTORS
Chairman and Representative Fujio Cho
Director
Vice Chairman and Katsuhiro Nakagawa
Representative Director
President and Representative Katsuaki Watanabe
Director
Executive Vice President and Tokuichi Uranishi
Representative Director
Kazuo Okamoto

Kyoji Sasazu

Mitsuo Kinoshita

Takeshi Uchiyamada

Masatami Takimoto

Akio Toyoda
Senior Managing Director Yukitoshi Funo

Takeshi Suzuki

Atsushi Niimi

Hiroshi Takada

Teiji Tachibana

Shinichi Sasaki

Akira Okabe

Yoichiro Ichimaru

Shoji Ikawa

Koichi Ina

Takeshi Yoshida

17
 Shinzo Kobuki

Akira Sasaki

Hiroshi Kawakami

Tadashi Arashima

Mamoru Furuhashi

Satoshi Ozawa

Honorary Chairman Shoichiro Toyoda

Senior Advisor Hiroshi Okuda

18
LOCATION OF TOYOTA FACILITIES

19
 TOYOTA MANUFACTURING
SUBSIDARIES AND AFFILIATES

Start of
Main products
operations
Harrier, Harrier Hybrid,
Toyota Motor Kyushu, Inc. Kluger, Kluger Hybrid, IS,
ES
Transmissions, transfers,
Toyota Motor Hokkaido, Inc. aluminum wheels, drivetrain
parts, etc.
Toyota Motor Tohoku Co., Mechanical and electronic
Ltd. parts
Hiace, Liteace, Voxy, Noah,
Estima, Prius, Land Cruiser,
Alphard, Ipsum, Townace,
Toyota Auto Body Co.,Ltd.
Regiusace, Coaster, Estima
Hybrid, Alphard Hybrid,
LX470
Century, Crown, Corolla
Kanto Auto Works, Ltd. Spacio, Corolla Fielder, Isis,
Belta, SC, Auris, BLADE
Raum, MR-S, Scion xB,
Central Motor Co., Ltd. Corolla Axio, Corolla
hatchbacks
Gifu Auto Body Industry
Hiace
Co., Ltd.
Rush, Passo, Probox, Succeed,
Daihatsu Motor,Co., Ltd.
bB, Porte, SIENTA

20
 SUPPORTING SPIRIT OF ATHLETICS - TOYOTA

Toyota continued its support of the ideals and spirit embodied in athletics by becoming, for the

third time since 2003, the Official Partner to the 11th IAAF World Championships in Athletics,

held in Osaka, Japan, August 25th-September 2nd. Through the sponsorship and a global

advertising campaign with the tagline ,"Beyond Limits," Toyota aims to communicate its support

for athletes who, like Toyota, continually push themselves further in pursuit of the ultimate goal.

Apart from providing a fleet of 220 cars for use as official vehicles at this year's championships,

Toyota also supported a program to encourage new world records for women's events by

becoming the official women's bib sponsor.

TOYOTA’S FIRST FFV

Toyota do Brasil LTDA. (TDB) launched Toyota's first-ever flex fuel vehicle (FFV), a vehicle

which runs on gasoline, ethanol or any combination of the two, at a line-off ceremony at its

Indaiatuba Plant in São Paulo on May 29th. Representing Toyota's commitment to developing

environmental technologies, the locally produced Corolla Flex and Corolla Fielder Flex are the

first marketed Toyota models that can run on 100% bioethanol. The introduction of the two

models in Brazil, where bioethanol is widely used as fuel and FFVs represent 83% of newly

registered vehicles in the market, firmly demonstrates Toyota's belief in listening to its

customers. In the first semester of the year, Toyota accounted for almost 33,000 of the more than

one million vehicles sold in Brazil during that period.

21
ISLAND ADVENTURE

Members of the Philippine motoring press had a wet and wild time at the Toyota Road Trek 3,

held May 31st-June 3rd in the archipelago's central islands. Bringing media representatives to a

variety of well-known destinations across the country, the annual road trip is conducted by

Toyota Motor Philippines Corp. to demonstrate the toughness and versatility of its IMVs. This

year, the event took over 40 participants on an island-hopping adventure, enabling them to fully

test the exceptional capabilities of the Innova, Fortuner and Hilux vehicles.

A series of competitive, water-related activities made it a truly challenging and fun trip that

encouraged teamwork, camaraderie and friendship among all attendees. The event was

prominently featured in major newspapers and magazines, further boosting the popularity of

IMVs in the market.

A WAY TO LEARN ROAD SAFETY

Dedicated to promoting activities that help minimize traffic accidents in Pakistan, Indus Motor

Company Limited (IMC) in January launched a Toyota School Road Safety Program. Through

music concerts, skits by clowns and quizzes in schools, the pilot program aims to educate

children about road safety in a fun and memorable way. Twenty schools in Karachi and around

18,000 children have already benefited from the program, which is part of IMC's comprehensive

corporate social responsibility initiative with the slogan, "Concern Beyond Cars." IMC looks to

expand the program to other schools in Karachi and later to other cities, given the overwhelming

response from the children and parents who have so far participated.

22
CROWN BAMBOO CONCERT

As part of its 2012 campaign for the Crown with the theme, "Playing out your life with

intelligence," FAW Toyota Motor Sales Co., Ltd. held its Crown Bamboo Concert at the famous

Anji bamboo forest in Zhejiang province, China, on August 18th. The classical music concert

successfully communicated the flagship model's philosophy of harmony to the guests present,

and was extensively featured in various media across China.

DREAMING ABOUT FUTURE

Toyota Motor Corporation got a glimpse of the future through the eyes of children across Asia

and China when it held the Dream Car Art Contest from October to January. Giving school

students aged 15 years and younger the exciting challenge of drawing their ideal car, the annual

contest generated greater awareness of the Toyota brand in the region. By means of a website,

ads in Reader's Digest magazine and promotions at local dealerships, Toyota successfully raised

public consciousness about the contest, drawing over 20,000 entries from 12 countries - an

eightfold increase from the number of designs submitted at the first contest in 2004.

TOYOTA TURNS 40

Toyota AG (TAG), Toyota's distributor in Switzerland, celebrates its 40th anniversary with year-

long promotions and a series of activities for its customers and partners. Kicking off its

commemorative year with an elaborate Auris media launch on February 16th, TAG has since

initiated a comprehensive advertising campaign that creates awareness of its special promotion

packages for customers as well as Toyota's successful history in Switzerland. In March, a

23
birthday gala dinner for 900 associates, dealers and partners served to thank everyone within the

TAG Family for their support and encouragement throughout the distributor's four decades in the

country.

GROWTH OF TOYOTA

Lasting growth for Toyota will depend on aligning our interests with the larger interests of

customers and the community. We must be a company where people think seriously about the

role and responsibility of their company in the world. Our economic and industrial contribution

in each region grows, for example, as we globalize our operations. Another way to align our

interests with the larger interests of the community is through technology.

By the end of 1997, we will introduce the world's first new-energy transport that is

commercially competitive with conventional automobiles. That is when we will put a hybrid-

electric passenger car onto the market in Japan. Our hybrid-electric car will have a gasoline

engine to generate electricity or provide supplementary power to the wheels. It is twice as fuel-

efficient as conventionally powered vehicles of comparable size and performance. Equally

important, the value of its potential fuel savings could prove greater than its cost premium over

conventional vehicles. So, it actually could save money for car owners.

24
 PRIORITIES FOR TOYOTA IN THE GROWTH STRATEGY

➢ Fortifying our product line

➢ Asserting a competitive edge in technology

➢ Accelerating globalization

➢ Reclaiming market share in Japan

➢ Cultivating demand in new business sectors

Measures for asserting a competitive edge in technology have centered on environmental themes.
We have introduced or demonstrated new power train technologies in the past year that will
make Toyotas run cleaner and greener than ever. Those technologies include...

➢ A direct-injection system that makes gasoline engines more efficient

➢ Hybrid-electric systems that double fuel efficiency and reduce noxious emissions

➢ Pure electric, "zero emission" vehicles that alleviate urban pollution

➢ Fuel-cell systems that could transform the automobile in the 21st century.

25
 MARKET SHARE OF TOYOTA

Toyota Motor Corp. grabbed more U.S. retail market share than Ford Motor Co. in early

November and it was less than one share point behind General Motors Corp., Toyota, Japan's

largest automaker, had a 15.4 percent U.S. retail market share a year earlier. Toyota plans to

enter small car segment in India, World’s second largest automaker wants to get offensive in the

Indian domestic auto market. Toyota is very much interested in launching a small car here in the

segment currently dominated by Maruti Suzuki and Hyundai. Tata also has a decent presence in

the market with their Indica range of diesel vehicles.

Toyota is at the moment carrying out a feasibility study for launching such a vehicle in the

domestic market where it has models like the Innova and Camry amongst others. They have had

an incredible success with their stopped Qualis model and are selling Toyota Innova in large

numbers. T Ino, director (marketing), Toyota Kirloskar Motor Pvt Limited has expressed that the

Indian auto market is a huge one and has the capacity to involve more players in the small car

segment.

Toyota has a variety of interesting models in its global lineup, which it can consider to launch in

the Indian market. Some of these are Vios, Platz, and Passo. The company also expects to break

even here in India this year with all the accumulated losses were expected to be wiped out during

2017-18. They also plan to invest around Rs 130 crores during the current year to enhance

efficiency.

Toyota plans to open up another manufacturing plant in India and is currently looking for a

location, which suits its requirement.

26
 COMPETITORS

HYUNDAI MOTORS INDIA LIMITED (HMIL)

A decade after the Korean War and during the period of reconstruction, Hyundai Motor

Company began its fledgling efforts at automobile manufacturing by entering into a technology

transfer agreement with Ford of Great Britain, receiving design and styling from Ital Design of

Italy, and assembling technology from both England and Japan, all of which made the production

of our first model car, the "Pony," possible. In just ten years, in 1976 Hyundai began to export to

the world market. In 1986, we entered the U.S. market establishing the Excel as a new contender

among small cars and promoting the image of the Korean automobile industry.

Upon expansion of our Ulsan plant, which enabled Hyundai Motor Company to have a large

scale production base, and the founding of HM Canadian Corporation, which established

Hyundai throughout North America, we produced a record 10 million cars and exported over 4

million, breaking records in a short span of time. No other automobile company can boast of

these figures over such a short time span. We also poured our efforts in creating concept cars

such as the HCD-I, followed by the HCD-II and III, electric cars, and high technology hybrid

cars that will bear fruit in the future with their low pollution emissions, safety features, and

environmentally-friendly recyclable components. From Pony to Equus, Hyundai Motor

Company is committed to its growth as a mature company, constantly keeping in mind its

customer-oriented mottoes: "Customer Satisfaction" and "Create Value for Customers."

27
 MARKETING STRATEGIES ADOPTED BY
HYUNDAI MOTORS

Products:

Sonata Embera

Tucson

Getz

Elantra

Terracan

Santro Xing

Accent
28
 PRICING STRATEGY OF HYUNDAI MOTORS

In August 2004, a leading business newspaper reported that Hyundai Motors India Limited

(HMIL), an Indian subsidiary of the South Korea- based Hyundai Motors Company (HMC) was

expected to reduce the price of its flagship car - Santro - by as much as Rs 40,000. Industry

experts were expecting a reduction in Santro's price in response to the price war being waged by

the market leader in India - Maruti Udyog Limited (MUL), which had reduced the price of its

largest selling car in the B segment - Alto - by Rs 58,000 in two price cuts starting from

September 2010. This move had resulted in Alto replacing Santro as the largest selling car in the

B segment in the period January to June 2017.

Rebutting the report on price cuts, HMIL's managing director, BVR Subbu (Subbu) said, "We

are not cutting prices on the Santro. We have allowed our competitors the prerogative of cutting

prices." Several dealers of HMIL also felt that the company would not reduce Santro's price as it

had not adopted such tactics earlier.

Santro had been the most successful product of HMIL and was also the largest selling car in the

B segment till the fiscal year 2017-18. Introduced in late 1998, Santro had emerged as the second

largest selling car in India after MUL's M800 and had retained its position till March 2011 (Refer

Exhibit II for the total units and value sales of the top eleven car models in India). In mid 2011,

HMIL with its four models, Santro, Accent, Sonata and Elantra, was the second largest car

company in India with 19% market share in the industry. The company was planning to launch

another model, 'Getz', in September 2011.

29
 COMPETITIVE ANALYSIS

STRENGTH OF HYUNDAI

Volumes has been 2 other promotional itme of my choosing.

Brand Strategy

Hyundai-Kia Automotive Group today announced the launch of its new global brand

management strategy, in which Kia and Hyundai will pursue differentiated brand images as a

means of boosting the Group’s overall market share and increasing the value of the two brands.

In accordance with the new strategy, Hyundai and Kia will be promoted under two separate

brand slogans. The Hyundai slogan - "Drive your way" - is designed to communicate the

company’s ‘refined and confident’ brand attributes, while the slogan - "The Power to Surprise" -

is aimed at embodying the ‘exciting and enabling’ values of the Kia brand.

30
 MARUTI UDYOG LIMITED (MUL)

It was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a

personal mode of transport caused by the lack of an efficient public transport system.

Suzuki Motor Company was chosen from seven prospective partners worldwide. This was due

not only to their undisputed leadership in small cars but also to their commitment to actively

bring to MUL contemporary technology and Japanese management practices (which had

catapulted Japan over USA to the status of the top auto manufacturing country in the world).

A license and a Joint Venture agreement were signed between Govt of India and Suzuki Motor

Company (now Suzuki Motor Corporation of Japan) in Oct 1982.

The objectives of MUL then were:

➢ Modernization of the Indian Automobile Industry.

➢ Production of fuel-efficient vehicles to conserve scarce resources.

➢ Production of large number of motor vehicles which was necessary for economic

growth.

31
 PRODUCTS & SERVICES MARUTI UDYOG LTD.

Products:

Maruti 800

Maruti versa

Omni

Gypsy

Zen

Wagnor

Esteem

Baleno
32
 GrandVitara-xl7

Swift

Alto

33
 COMPETITION (MARUTI)

Since 1985, Maruti Udyog Limited (MUL) has been the market leader in the passenger car
industry in India. Its flagship product - M800 had the distinction of being the largest selling car
model in India since its launch in December 1983. Positioned as people's car, M800 ruled the
Indian passenger car market and remained unchallenged ever since it occupied the top slot, five
months after its introduction. In March 2011, MUL sold 20,687 units of M800, the highest ever
sales by any single model in a month. It was also the highest sales since M800 debuted,
surpassing its previous monthly high of 18,735 units in August 1999.

On reducing the gap between its bread and butter model M800 and its compact car Alto, MUL
said it had "long term" plans for M800. Commenting on Alto's pricing strategy, Jagdish Khattar
(Khattar), managing director of MUL, said, "The new price positioning of the Alto would
cannibalize existing A1 segment product the M800 which is also considered an old model. But,
the cannibalization will remain within the Maruti family and the bigger numbers will help Maruti
depreciate Alto faster. Net M800 sales may be less but we would be pushing more Alto and the
more we sell the Alto the faster it will depreciate." Though industry analysts said this move
would boost MUL's profits, they also expressed their views that MUL's long-term plan might be
to discontinue M800 and replace the entry segment with Alto. However, Khattar clarified that
MUL's pricing strategy was not meant to replace M800 with Alto. He said, "Now, we have two
cars in entry-level. Maruti 800 is still a dream of Indians, how can I replace it?"

34
 COMPETITIVE ANALYSIS

STRENGTH

In an era when owning a car was a distant dream for a vast majority of Indians, MUL rolled out
its first car, the M800. The company labeled it a people's car, with a 796cc 3-cylinder engine that
delivered 39.5bhp at an affordable price of Rs. 65,000. The first vehicle was released for sale in
December 1983. Initially, the car was criticized for its diminutive size, but it proved to be
spacious enough to carry four adults. Better technology and an affordable price due to a higher
level of indigenization helped MUL achieve a dominant position in the Indian passenger car
market

WEAKNESS

MUL reduced the price difference between these two models positioning them on an almost
equal platform, which resulted in confusion in the minds of consumers and industry analysts.

THREAT

M800 had ruled the passenger car market as the only car in the entry-level segment in the Indian
automobile industry and was now facing the danger of cannibalization from one of its own
family members, Alto

35
 COMPETITIVE ANALYSIS
MARKETING STRATEGIES OF TOYOTA

• Products:

• Avalon

• Camry

• Camry Salora

• Corolla

• Matrix

• Prius

• 4runner

• Highrunner

• Land Cruiser

• Sequoia

• Sienna

36
PRICE

As far as pricing strategy of Toyota is concerned. They are focusing on the very segment of the

market not only particular segment. Basically they are focusing on official and business class

people

Product Line
Avalon $26,625 $28,875 $31,075 $33,815
Camry $18,445(standard) $19,545(LE) $20,375(SE) $22,795(XLE)
Camry Salora $19,530 $21,025 $23,405 $26,942
Corolla $14,005 $15,050 $15,215 $17,780
Matrix $15,110 $16,590 $19,100
Prius $21,725
4runner $27,635
Highrunner $34,625
Land Cruiser $56,115
Sequoia $32,820
Sienna $23,625

37
 LITERATURE REVIEW

Generic strategies were used initially in the early 1980s, and seem to be even more popular

today. They outline the three main strategic options open to organization that wish to achieve a

sustainable competitive advantage. Each of the three options are considered within the context of

two aspects of the competitive environment:

Sources of competitive advantage - are the products differentiated in any way, or are they the

lowest cost producer in an industry? Competitive scope of the market - does the company target

a wide market, or does it focus on a very narrow, niche market?

38
The generic strategies are: 1. Cost leadership, 2. Differentiation, and 3. Focus.

1. Cost Leadership

The low cost leader in any market gains competitive advantage from being able to many to

produce at the lowest cost. Factories are built and maintained; labor is recruited and trained to

deliver the lowest possible costs of production. 'cost advantage' is the focus. Costs are shaved off

every element of the value chain. Products tend to be 'no frills.' However, low cost does not

always lead to low price. Producers could price at competitive parity, exploiting the benefits of a

bigger margin than competitors. Some organization, such as Toyota, are very good not only at

producing high quality autos at a low price, but have the brand and marketing skills to use a

premium pricing policy.

2. Differentiation

Differentiated goods and services satisfy the needs of customers through a sustainable

competitive advantage. This allows companies to desensitize prices and focus on value that

generates a comparatively higher price and a better margin. The benefits of differentiation

require producers to segment markets in order to target goods and services at specific segments,

generating a higher than average price. For example, Toyota differentiates its product and

service. The differentiating organization will incur additional costs in creating their competitive

advantage. These costs must be offset by the increase in revenue generated by sales. Costs must

be recovered. There is also the chance that any differentiation could be copied by competitors.

Therefore there is always an incentive to innovated and continuously improve.

39
3. Focus or Niche strategy

The focus strategy is also known as a 'niche' strategy. Where an organization can afford neither a

wide scope cost leadership nor a wide scope differentiation strategy, a niche strategy could be

more suitable. Here an organization focuses effort and resources on a narrow, defined segment of

a market. Competitive advantage is generated specifically for the niche. A niche strategy is often

used by smaller firms. A company could use either a cost focus or a differentiation focus. With a

cost focus a firm aims at being the lowest cost producer in that niche or segment. With a

differentiation focus a firm creates competitive advantage through differentiation within the

niche or segment. There are potentially problems with the niche approach. Small, specialist

niches could disappear in the long term. Cost focus is unachievable with an industry depending

upon economies of scale e.g. telecommunications.

40
 CUSTOMER SATISFACTION OF FOUR WHEELERS

Toyota's believes in putting the customer first and aims to provide the best levels of customer

satisfaction as its main marketing strategy. Their dealers have also worked hard to provide their

high levels of customer support."

"In the last one year, Toyota has taken many initiatives, which has made Innova the most

successful product. Innova has successfully become a category creator.

We will continue to meet the ever-challenging customer expectations and will come out with

innovative marketing strategies.

With a change of guard at Toyota Kirloskar Motor Ltd., the company has evolved a new strategy

to capture 15 per cent market share in the Indian automotive segment. Effective from January 1,

Atsushi Toyoshima has been appointed Managing Director of the company, replacing Sachio

Yamazaki. "Competition is intense in the Indian market for domestic and foreign companies. The

Indian market is important for Toyota with potential to aid its growth strategy," Yoshio Ishizaka,

Executive Vice-President, Toyota Motor Corporation, said.

According to analysts, the Indian market would touch annual sales of 1.2 million units by 2012.

Last year, Toyota sold 3.8 million units overseas, manufacturing six million vehicles at 56 plants

in 25 countries. In India, the Toyota Quails notched sales of 25,000 units since its launch last

year, he said. Toyota's strategy to corner a significant chunk of the Indian market involves

"superior product offering and dedicated technology". In this context, the change of leadership in

Toyota's Indian division is important, indicating a more important role for the company's

manufacturing base in Bangalore.

41
"Bangalore is an ideal location to meet all of Toyota's needs, including auto components," Mr.

Toyoshima said

According to the managing director of Toyota Kirloskar Motor, Atsushi Toyoshima, the decision

to introduce Innova here (India) was based on three factors. First, over the last five years, the C-

segment (between Rs 5 lakh to Rs 10 lakh) of the car market has grown by 20 per cent every

year. The multi utility vehicle segment has also grown at double-digit levels. Second, with an

improving lifestyle and better roads, the Indian consumer wants to take his vehicle for long

drives with friends and family. Third, there is a latent desire of customers, including those

owning MPVs, to seek attributes like greater interior space and overloading ability, while

passenger car buyers look for better styling and improved riding comfort. Innova brings together

the space and fuel economy of an MPV with the style, agility and power of a sedan. Toyota

Kirloskar Motor has described it as the first three-row seating passenger car in the Indian market.

42
 RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY

➢ To analyze the marketing strategies adopted by Toyota Motors Ltd.

➢ To analyze the marketing strategies adopted by small cars companies.

➢ To analyze the competitive analysis of small cars companies.

DATA COLLECTED METHODS

This project depends upon the primary as well as secondary sources which are as follows.

Primary Source:

➢ Observation
➢ Experiment
➢ Talking with distributors, retailers and so on

Secondary Source:

➢ Books & Journals

➢ Magazines & Newspapers
➢ Websites

SAMPLE SIZE & AREAS COVERED

A customer-based survey is conducted in which 100 people were asked to fill the questionnaire

in which 50 people belong to cities of Delhi and NCR.

Because it is not possible to consider each and every person of those cities or of villages so,

PROBABILITY SAMPLE or RANDOM SAMPLE is taken.

43
STATISTICAL AND PRESENTATION TOOLS USED

PRIMARY DATA is:

➢ First classified i.e. grouped qualitatively and quantitatively according to the situation or the

type of the data which was collected.

➢ After classifying is represented in the form of tables i.e. systematically arranged in columns

and rows.

➢ Some of the data is also graphically represented in the form of PIE DIAGRAM.

SECONDARY DATA is represented:

➢ In the form of tables.

➢ By the way of BAR GRAPHS and SUBDIVIDED BAR GRAPHS (Graphical presentation).

44
 GRAPHICAL DATA INTERPRETATION

OWNERS OF TOYOTA

YES
24%
YES
NO
NO
76%

INFERENCE:

➢ 24% of the respondents were owners of Honda City

45
 CUSTOMER SATISFACTION

17%

SATISFIED
DISSATISFIED

83%

INFERENCE:
➢ 83% of the Respondents were satisfied with their cars and the services of

TOYOTA

➢ However 17% of the Respondents were dissatisfied at the same time.

46
 PREFERENCES OF BUYING A NEW CAR

40
30
20
10
0
TOYOTA HYUNDAI MARUTI HONDA

INFERENCE:
➢ 18% of the respondents would prefer to buy a Toyota car against its
competitors.

➢ 37% of respondents preferred for Maruti.

➢ 21% and 24% respectively preferred for Hyundai & Honda.

47
 INFORMATION ABOUT TOYOTA

12%
DEALERS
20%
PRINT MEDIA
T.V.
55%
INTERNET
13%

INFERENCE:
➢ Information through Internet and Print media accounts for more than half or
75% of the information shared with the masses.

➢ Rest 25% was shared by T.V. and Dealers for providing the information.

48
 FUEL EFFICIENCY OF TOYOTA
100 78
80
60
40 22
20
0
YES NO

INFERENCE:
➢ 78% of the respondents felt that Toyota has the most fuel efficiency.

➢ While 22% felt it isn’t the most fuel efficient.

49
 FEATURES OF TOYOTA
12%

8%
GOOD
10% VERY GOOD
NOT SO GOOD
70% SATISFACTORY

INFERENCE:
➢ 70% of the respondents felt that the features of the Toyota are good.

➢ While 8% of respondents thought it was not so good, 10% thought it was

very good and 12% felt satisfactory about the features.

50
 FEATURES THAT BEST
DESCRIBES TOYOTA
38
40
29
30
18
20 15
10
0
HANDLING FUEL DESIGN COMFORT
EFFICIENCY

INFERENCE:
➢ Toyota is best known for its design & comfort.

➢ Then comes Handling and Fuel Efficiency.

51
 INTERIORS OF TOYOTA

7%
3%
GOOD
16%
VERY GOOD
NOT SO GOOD
SATISFACTORY
74%

INFERENCE:
➢ The interiors of Toyota are very good according to 74% of the respondents.

➢ 16% said it was very good, 7% said it was satisfactory and 3% felt it was not
so good.

52
 WHAT SHOULD BE DONE TO
IMPROVE TOYOTA
13%
MAKE IT MORE
15% AFFORDABLE
CHEAPER SPARE
PARTS
72% MORE SERVICE
STATIONS

INFERENCE:
➢ If Toyota is made more affordable then it would win more customers, a theory
which was backed by 72% of the respondents.

➢ 15% and 13% respectively want cheaper spare parts and more service stations.

53
 WHAT SHOULD BE DONE TO MAKE
TOYOTA THE BEST CAR
MAKE IT MORE
15 FUTURISTIC

MAKE IT MORE
10 SPORTY

GIVE IT A RETRO
60 LOOK
15
GIVE IT A
CONCEPT CAR
LOOK

INFERENCE:
➢ To make it the best car in its class it should be made more futuristic which was
felt by 60% of the respondents.

➢ 15% of the respondents thought it should be made more sporty.

➢ 10% wanted it to have a retro look and 15% wanted to give it a concept car
look.

54
 HAPPY WITH AFTER SALES
SERVICES PROVIDED BY TOYOTA

15%
HAPPY
UNHAPPY

85%

INFERENCE:
➢ Overall 85% of the respondents were happy with the after sales service
provided by Toyota.

➢ 15% were unhappy with Toyota due to poor after sales services provided by
them.

55
 FINDINGS & ANALYSIS

➢ The strong industry position of Toyota is based upon a number of factors including a
diversified product range, highly targeted marketing and a commitment to lean
manufacturing and quality.

➢ The Toyota uses marketing techniques to identify and satisfy customer needs. Its brand
is a household name. The company also maximizes profit through efficient
manufacturing approaches (e.g. Total Quality Management).

➢ Toyota is to target the 'urban youth' market. The company has launched its new Aygo,
which is targeted at the streetwise youth market and captures (or attempts to) the
nature of dance and DJ culture in a very competitive segment.

➢ Toyota's believes in putting the customer first and aims to provide the best levels of
customer satisfaction as its main marketing strategy. Their dealers have also worked
hard to provide their high levels of customer support."

➢ Competition is intense in the Indian market for domestic and foreign companies. The
Indian market is important for Toyota with potential to aid its growth strategy,

➢ They have had an incredible success with their stopped Qualis model and are selling
Toyota Innova in large numbers.

➢ While Suzuki-Maruti, Tata Motors, Hyundai, Mahindra & Mahindra and Toyota
command the top five positions in the domestic passenger vehicle segment, Honda,
GM and Ford are fighting each other for the sixth position.

56
 SWOT ANALYSIS

STRENGTHS

New investment by Toyota in factories in the US and China saw 2005 profits rise, against the

worldwide motor industry trend. Net profits rose 0.8% to 1.17 trillion yen ($11bn; £5.85bn),

while sales were 7.3% higher at 18.55 trillion yen. Commentators argue that this is because the

company has the right mix of products for the markets that it serves. This is an example of very

focused segmentation, targeting and positioning in a number of countries.

In 2003 Toyota knocked its rivals Ford into third spot, to become the World's second largest

carmaker with 6.78 million units. The company is still behind rivals General Motors with 8.59

million units in the same period. Its strong industry position is based upon a number of factors

including a diversified product range, highly targeted marketing and a commitment to lean

manufacturing and quality. The company makes a large range of vehicles for both private

customers and commercial organisations, from the small Yaris to large trucks. The company uses

marketing techniques to identify and satisfy customer needs. Its brand is a household name. The

company also maximizes profit through efficient manufacturing approaches (e.g. Total Quality

Management).

WEAKNESSES

Being big has its own problems. The World market for cars is in a condition of over supply and

so car manufacturers need to make sure that it is their models that consumers want. Toyota

markets most of its products in the US and in Japan. Therefore it is exposed to fluctuating

economic and political conditions those markets. Perhaps that is why the company is beginning

57
to shift its attentions to the emerging Chinese market. Movements in exchange rates could see

the already narrow margins in the car market being reduced.

The company needs to keep producing cars in order to retain its operational efficiency. Car

plants represent a huge investment in expensive fixed costs, as well as the high costs of training

and retaining labour. So if the car market experiences a down turn, the company could see over

capapacity. If on the other hand the car market experiences an upturn, then the company may

miss out on potential sales due to under capacity i.e. it takes time to accommodate. This is a

typical problem with high volume car manufacturing.

OPPORTUNITIES

Lexus and Toyota now have a reputation for manufacturing environmentally friendly vehicles.

Lexus has RX 400h hybrid, and Toyota has it Prius. Both are based upon advance technologies

developed by the organization. Rocketing oil prices have seen sales of the new hybrid vehicles

increase. Toyota has also sold on its technology to other motor manufacturers, for example Ford

has bought into the technology for its new Explorer SUV Hybrid. Such moves can only firm up

Toyota's interest and investment in hybrid R&D.

Toyota is to target the 'urban youth' market. The company has launched its new Aygo, which is

targeted at the streetwise youth market and captures (or attempts to) the nature of dance and DJ

culture in a very competitive segment. The vehicle itself is a unique convertible, with models

extending at their rear! The narrow segment is notorious for it narrow margins and difficulties

for branding.

58
THREATS

Product recalls are always a problem for vehicle manufacturers. In 2015 the company had to

recall 880,00 sports utility vehicles and pick up trucks due to faulty front suspension systems.

Toyota did not give details of how much the recall would cost. The majority of affected vehicles

were sold in the US, while the rest were sold in Japan, Europe and Australia.

As with any car manufacturer, Toyota faces tremendous competitive rivalry in the car market.

Competition is increasing almost daily, with new entrants coming into the market from China,

South Korea and new plants in Eastern Europe. The company is also exposed to any movement

in the price of raw materials such as rubber, steel and fuel. The key economies in the Pacific, the

US and Europe also experience slow downs. These economic factors are potential threats for

Toyota .

59
 COMPETITIVE ANALYSIS

STRENGTH

In an era when owning a car was a distant dream for a vast majority of Indians, MUL
rolled out its first car, the M800. The company labeled it a people's car, with a 796cc 3-
cylinder engine that delivered 39.5bhp at an affordable price of Rs. 65,000. The first
vehicle was released for sale in December 1983. Initially, the car was criticized for its
diminutive size, but it proved to be spacious enough to carry four adults. Better
technology and an affordable price due to a higher level of indigenization helped MUL
achieve a dominant position in the Indian passenger car market

WEAKNESS

MUL reduced the price difference between these two models positioning them on an
almost equal platform, which resulted in confusion in the minds of consumers and
industry analysts.

THREAT

M800 had ruled the passenger car market as the only car in the entry-level segment in the
Indian automobile industry and was now facing the danger of cannibalization from one of
its own family members, Alto For the first few months of 2016, M800 performed well,
selling 15,301 units in January, 13,518 units in February and 15,540 in March. But
gradually Alto, another MUL product, began eating into M800's share. Alto reported
sales of 8,399 units, 8,324 and 9,011 units in January, February and March respectively.
In April, its sales increased to 9,350 units and in May 2018, Alto took over M800's
position as the largest selling car with sale of 10,373 units, slightly over M800's sales of
10,016 units. Analysts felt that Alto had taken the top spot because of its price reduction
in September 2015 by Rs. 23,000 followed by the launch of the non-AC Alto for Rs. 0.23
mn in the first week of April 2017.
60
 QUESTIONNAIRE

A) NAME

B) ADDRESS

C) CONTACT NUMBER

D) INCOME GROUP

_________15,000-25,000 _________25, 000-50,000

_________50,000-75,000 _________Above 75,000

1. DO YOU OWN A CAR?

(i)YES (ii) NO

IF YES, THEN WHICH ONE?

(i)TOYOTA (ii) HYUNDAI (iii) MARUTI

2. HOW SATISFIED ARE YOU WITH THE SERVICES OFFERED BY TOYOTA?

(i)SATISFIED (ii) DISSATISFIED

3. IF SATISFIED, THEN ARE YOU HAPPY WITH THEIR CHARGES AND

TIMELY DELIVERY THEY WERE OFFERING?

(i)HAPPY (ii) UNHAPPY

61
4. IF GIVEN A CHOICE TO CHOOSE A CAR COMPANY, WHICH COMPANY
WOULD YOU CHOOSE?

(i) TOYOTA (ii) MARUTI (iii) HYUNDAI

5. WHERE DO YOU MANAGE TO FIND INFORMATION ABOUT TOYOTA?

(i)DEALERS (ii) PRINT MEDIA

(iii)T.V. (iv)INTERNET

6. DO YOU THINK TOYOTA HAS THE MOST FUEL EFFICIENCY (i)YES

(ii) NO

7. HOW DO YOU FIND THE FEATURES OF TOYOTA AS COMPARED TO

OTHER CARS?

(i)GOOD (ii) VERY GOOD

(iii)NOT SO GOOD (iv) SATISFACTORY

8. WHICH OF THESE QUALITIES DO YOU THINK BEST DESCRIBES

TOYOTA ?

(i)HANDLING (ii) FUEL EFFICIENCY

(iii)DESIGN (iv)COMFORT

9. HOW DO YOU FIND THE INTERIORS OF TOYOTA?

(i)GOOD (ii) VERY GOOD

(iii)SATISFACTORY (iv) NOT SO GOOD

62
10. ACCORDING TO YOU WHAT SHOULD BE DONE TO IMPROVE
TOYOTA?

(i) MAKE IT MORE AFFORDABLE

(ii) CHEAPER SPARE PARTS

(iii)MORE SERVICE STATIONS

11. ACCORDING TO YOU WHAT SHOULD BE DONE TO MAKE TOYOTA

THE BEST CAR?

(i)MAKE IT MORE FUTURISTIC

(ii)MAKE IT MORE SPORTY

(iii)GIVE IT A RETRO LOOK

(iv)GIVE IT A CONCEPT CAR LOOK

12. ARE YOU HAPPY WITH THE AFTER SALES SERVICES PROVIDED BY
TOYOTA ?

(i)HAPPY (ii) UNHAPPY

63
 RECOMMENDATIONS

➢ Toyota should adopt the defensive marketing strategy because as being the second largest

car producer in the international market,

➢ Toyota must at the moment carry out a feasibility study for launching a vehicle in the

domestic market where it has models like the Innova and Camry amongst others.

➢ Toyota should conduct market survey in Indian market for quails in order to know the

perception of Indian consumers.

➢ Toyota should adopt an offensive marketing strategy for entering in the small car

segment. This market is dominated by Maruti Suzuki and Hyundai in the Indian domestic

auto market.

➢ Toyota must plan out an ideal marketing producing capacity ,becaue it faces the problem

of over and under capacity in case of upturn and downturn of the market.

64
 CONCLUSION

It is concluded that Suzuki-Maruti, Tata Motors, Hyundai, Mahindra & Mahindra and Toyota

command the top five positions in the domestic passenger vehicle segment, Honda, GM and Ford

are fighting each other for the sixth position. Incidentally, in the first five months of the fiscal

(Apr-Aug ’12) Skoda has moved to the tenth position, overtaking Italian major Fiat.

Competitive pricing and a better value offerings were driving the sales of most auto majors for

the past few months. Despite a competitive business environment, most of the car majors were

able to hold on to their market shares in the April to August ’04 period. The exceptions were

Hyundai, Mahindra & Mahindra, Hindustan Motors and Fiat, who saw their market shares fall

marginally.

The market is slow and there are visible signs of discounting, particularly in the higher end of

the car segment. However, since entry level and compact cars are volume segments, the

slowdown’s effect is more visible here.

For many automobile companies, it was a double whammy in August ’04. The truckers’ strike

and adhikmas (inauspicious period) last month affected dispatches of most car companies,

including Maruti Udyog, General Motors and Tata Motors, resulting in lower sales. The

exceptions were Honda Siel Cars India, Ford India and Toyota Kirloskar.

65
 BIBLIOGRAPHY:

Books referred: -

➢ Marketing Management 3rd Edition - Philip Kotler

➢ Marketing Management 2017 - T. N. Chabra
➢ Marketing Management 2016 - C. B. Gupta

MAGAZINES & NEWSPAPERS

➢ Business World
➢ Business Today
➢ The Times of India
➢ The Hindustan Times
➢ The Hindu Business Standard Line

WEB SITES

➢ www.toyota.co.in
➢ www.mul.com
➢ www.fourwheelers.com
➢ www.smallcars.com
➢ www.googlesearchengine.com

66