SUMMARY

Indian Economy has undergone a radical transformation in the last three decades. The discoveries and
invention in various fields of life is perhaps being the reasons for this transformation. The marketing
strategy in India which was practiced in the olden days has either been changed or been refined so as to
adjust with this dynamic world. If we consider the early years of development of our economy, It is observed
that the producer’s consumers as well as production and consumption is becoming more and more complex
and specialized.

The present emphasis is one matters of providing a complete ‘comfort’ or ‘status’ to the customers every
walk of life. In the light of the present marketing scenario, through this project, How TOYOTA MOTOR
INDIA LTD. can increase its market share in “automobile industry” emphasis on marketing.

Authentic marketing is not the art of selling what you make but knowing what to make. It is the art of
identifying and understanding customer needs and creating solutions that deliver satisfaction to the
customers, profits to the producers and benefits for the stakeholders. - Philip Kotler

This Project report tries to take a look on various aspects on Marketing and study of Marketing strategies
adopted by Toyota Motors India Limited (TML) with a special focus on Toyota. We settled for TML because
at the time of its entry in Indian Market back in 2007, it was taken as another foreign car maker entering
Indian Passenger car market. But the way in which TML has achieved a constant growth rate of around 30%
in past 8 years and the way has emerged as the market leader in B-segment is all due to its fierce Marketing
program. Hence a detailed study at the marketing strategies adopted by TML for gives us an excellent
opportunity to apply our classroom learning in analyzing real life situations.

1
TABLE OF CONTENTS

S.No. Topic
Chapter 1. Introduction - 1-9
 Indian Automobile Industry
 Objectives
 Porters Five Force Model

 History of Indian Automobile Industry

 Trends In Indian Automobile Industry

 Key Developments in the Industry

 Key Demand Drivers

Chapter 2. Objectives 10

Chapter 3. Segment Analysis 11-13

Chapter 4. Toyota Motors India Limited 14-20

 An Overview Of The Company

 New Milestones
 Awards And Recognition
 Product

Chapter 5. Research Methodology 21

 Data Collection
 Sample Size
 Statistical Tools

Chapter 6. Analysis Of The Marketing Strategy With Focus To 22-33

Toyota
 STP – Segmentation, Targeting, Positioning
 Porter 5 Force Model

 SWOT Analysis
 P’s Of Toyota Motor India Ltd. With Focus On Toyota

Chapter 7. Findings And Analysis 34-42

Chapter 8. Recommendations 75-76

Chapter 9. Conclusion 77

2
Questionnaire 78-79

References 80

Bibliography 81

3
INTRODUCTION
INDIAN AUTOMOBILE INDUSTRY
A market is never saturated with a good product, but it is very quickly saturated with a bad one. - Henry
Ford. The automotive industry is one of the largest industries worldwide and in India as well. The
automotive sector is a vital sector for any developed economy. It drives upstream industries like steel, iron,
aluminum, rubber, plastics, glass and electronics, and downstream industries like advertising and marketing,
transport and insurance.
The automotive industry can be divided into five sectors:-
1) Passenger Cars
2) Multi- Utility Vehicles (MUVs)
3) Two- and Three- Vehicles
4) Commercial Vehicles - Light Commercial Vehicles (LCVs) / Medium and Heavy Commercial
Vehicles (MHCVs)
5) Tractors
Despite a head start, the passenger car industry in India has not quite matched up to the performance of its
counterparts in other parts of the world. The primary reason has been the all-pervasive regulatory
atmosphere prevailing till the opening up of the industry in the mid-1990s. The various layers of legislative
Acts sheltered the industry from external competition for a long time. Moreover, the industry was considered
low-priority as cars were thought of as ‘unaffordable luxury’.

The following table presents a comparative view of the extent of motorization in India vis-à-vis certain other
countries in the world.
Country Passenger Cars in Use Two-Wheelers in Use
per Thousand Persons per Thousand Persons
Developed Countries
U.S.A 478 14
United Kingdom 373 12
Japan 395 115
Germany 508 36
Emerging Economies
China 3 8
Indonesia 14 62
Philippines 10 14
South Korea 167 59
India 5 27

OBJECTIVES

Some of the Objectives which are focused upon in this report are:
 A comprehensive analysis of Indian Automobile Industry.

 To study the Marketing Strategies of TML wit focuses on.

 To focus on Marketing Mix of Toyota.

 To study the consumer satisfaction level with focus to Toyota.

 Special emphasis on Promotional activities of and how TML has been able to reposition it in recent
times.

 Milestones achieved by TML.

 Recommendations and observations regarding TML.

 Porter Five Forces Model in the Indian Automobile Industry

Threat from New Players: Increasing

 Most of the major global players are present in the Indian Market; a few more are expected to
enter.
 Financial strength assumes importance as high investments are required for building capacity.
 Access to distribution network is important. Although important for all segments, having a
distribution network in rural areas is vital for two-wheeler makers.
 Lower tariffs in the post-World Trade Organization era may expose Indian companies to threat of
imports (however, the threat may be mitigated by non-tariff barriers that may still exist).
Market Strength of Suppliers: Low
 A large number of automotive component suppliers are present in the Indian automotive industry.
 Automotive players are rationalizing their vendor base to achieve consistency in quality.

Rivalry within the Industry: High

 There is keen competition in select segments (such as the Compact and Mid-size segments in passenger
cars, and the motorcycle segment in two-wheelers).
 New multinational players may enter the market.

Market Strength of Consumers: Increasing

 Increases awareness among consumers has raised expectations. Thus, the ability to innovate
(technology being the enabler) is critical.
 Product Differentiation via new features, improved performance and after sales support is critical.
 Increases competitive intensity has limited the pricing power of manufacturers.

Threat from Substitutes:

Low-Medium
 With consumer preferences changing, inter-product substitution is taking place (scooters are being
replaced by motorcycles, and Mini cars by Compact Mid-size cars.
 HISTORY OF INDIAN AUTOMOBILE INDUSTRY
Initially, in the post-liberalization period, the automotive sector, especially the passenger car segment, saw a
boom, derived primarily from economic vibrancy, changes in Government policies, increase in purchasing
power, improvement in life styles, and availability of car finance. The passenger car industry was finally
deregulated in 1993. However, the automobile industry, which contributed substantially to the industrial
growth in FY1996 failed to maintain the same momentum between FY1997 and FY1999. The overall
slowdown in the economy and the resultant slowdown in industrial production, political uncertainty and
inadequate infrastructure development were some of the factors responsible for the slowdown experienced.
In FY2007, the sector experienced a turnaround and witnessed the launch of many new models. Two things
that stunted growth of this industry in the past have been low demand and lack of vision on the part of the
original equipment manufacturers (QEMs). However, the demand picked up after the liberalization of the
regulatory environment, and global QEMs- who enjoy scale economies both in terms of manufacturing and
research and development (R&D) - entered the Indian market. This has resulted in a big shift in the way
business is conducted by suppliers, assemblers and marketers.

PASSENGER CAR INDUSTRY IN INDIA: HIGHLIGHTS

 Passenger car sales are expected to increase at a compound annual growth rate (CAGR) of 8% over the
period FY2006-2007. The six broad segments in the car market today are- Mini, Compact, Midrange,
Executive, Premium and Luxury. In the medium term, growth in the Indian passenger car industry is
expected to be led largely by the Compact and Mid-range Segments.
 The critical success factor has changed from price to price value.
 In terms of engine capacity, the Indian passenger car market is moving towards cars of highest capacity.
 With the launch of new models from FY2007 onwards, the market for MUVs has been redefined in India,
especially at the upper end. Currently, the higher-end MUVs, commonly known as Sports Utility
Vehicles (SUVs), occupy a niche in the urban market. With the success of SUVs, the line of distinction
between passenger cars and MUVs in the Indian market is getting increasingly blurred.
 Domestic car manufacturers are now venturing into areas such as car financing, leasing, and fleet
management, and used-car reconditioning /sales, to complement their mainstay-business of selling new
cars.
 Trends in the Indian Passenger Car Industry

Distribution Systems: Product technology: Entry of Foreign

Changing relationship of MPFI; CRDi; diesel Manufacturers
manufacturers with system
dealers and suppliers Manufacturing
Technologies:
Auto finance: Indian Flexible
Better/ cheaper schemes Passenger Car Manufacturing
Systems
Components:
Regulatory Industry
Tyres;
framework:
Tyres: Radials,
Deregulation;
Structure of Retreading
De licensing; Materials: Low
demand:
Removal of QRs; weight; Synthetic
Change in industry
Introduction of strict Composites
segmentation
Emission norms

KEY DEVELOPMENTS IN THE INDUSTRY

DOMESTIC SALES MARKET SHARE

APR-AUG APR-AUG APR-AUG APR-AUG

COMPANY NAME 2006 2007 GROWTH 2006 2007
Daimler Chrysler India Pvt Ltd 633 662 4.6 0.2 0.2
Fiat India Automobiles Pvt Ltd 2907 635 -78.2 0.9 0.2
Ford India Ltd 8852 6944 -21.6 2.8 2.1
General Motors India Ltd 7179 4981 -30.6 2.3 1.5
Hindustan Motors Ltd 5610 5626 0.3 1.8 1.7
Honda Siel Cars India Ltd 13813 17560 27.1 4.4 5.3
Toyota Motor India Ltd 48299 63140 30.7 15.3 19
Maruti Udyog Ltd 162007 169606 4.7 51.4 51.1
Skoda Auto India Ltd 3003 3439 14.5 1 1
Tata Motors Ltd 58548 55536 -5.1 18.6 16.7
Toyota Kirloskar Motor Ltd 4519 4030 -10.8 1.4 1.2
 Total Passenger Car Sales 315370 332159 5.3 100 100

The passenger car sales in India at 332159 units, marked a growth of 5.3%over the previous year. The
growth in the domestic sales of passenger cars was led by strong growth in volumes reported by compact
and mid – size segments. While the share of mini and executive segments declined in the period under study,
the share of other segments increased. For instance, the share of compact segment in the domestic car sales
increased from 59.7% in April – August 2007 to 64.9% in April – August 2007, mid – size segment from
20.5% to 22%, and the share of Premium segment was stagnant at 0.7% in the same period. New variants
launches, easy availability of finance at relatively lower interest rate and price discounts offered by the
players have played an important role in driving the sales growth in the domestic passenger car industry.
Among the top three manufacturers, TOYOTA reported a strong growth in sales of its compact and mid –
size car models and increased its market share in April – August 2007 vis-a–vis corresponding previous. For
Maruti Udyog Ltd, a marginal growth in sales volumes allowed it to maintain its market share during the
first five months of FY2006 while the market share of Tata Motors declined in the same period.

Key Demand Drivers

Disposable income was perceived as the key factor driving passenger car demand. But over time, other
factors that are known to have an impact on demand have emerged. These include the need for greater
mobility, development of the used-car market, introduction of new technologically superior models,
increasing levels of urbanization and changing consumer profiles.

High degree of correlation between PER CAPITA

INCOME and demand for cars, increase in the
There is a high degree number of people crossing the income threshold,
Segment
of correlation Analysis
between and CHANGING CONSUMER PROFILE are
the demand for cars and likely to increase and change the structure of
ECONOMIC demand.
The Central Government’s
GROWTH.
AUTO POLICY
EXECUTIV PREMIUon excise
LUXUR
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Availability of NEW MINI COMPACT MID-SIZE Eand customsM Y
is an important
MODELS is likely to <3400m DEMAND 4701-
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change the m 3401-4000 4001-4500 4501-4700 5000 >5000
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structure of demand. Omni Zen Baleno
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Maruti Udyog Ltd Versa A mature USED CAR
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PRICING AVAILABILITY OF CHEAP MARKET would, on one hand,
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FINANCE is a key determinant getz sonata
encourage consumers to trade in
market share, demand as most cars (around their cars faster, and on the other,
especially in the small 60%) purchased in India are eat well into the share of new
 Ambassado
r Contessa
Mitsubishi
Hindustan Motors Ltd Lancer
Palio Siena
Fiat India Automobile
Uno adventure
Ltd Weekend
Corsa Sail Opel Corsa Opel Vectra
Opel Astra
General Motors India Opel
Ltd Swing
Honda Siel India Ltd City Accord
Ford India Ltd Ikon Mondeo
TELCO Indica Indigo
Mercedes
Benz C Mercedes Mercede
DalmierChrysler India Class,M Benz E s Benz S
Ltd Class,SL Class Class
Skoda India Ltd Octavia
Toyota Kirlosker Motor
Ltd Corolla Camry
The credit for growing the Indian Compact Segment, and in fact, the Indian Passenger car industry goes
partly to the Korean manufacturers (TML and the erstwhile Daewoo) and the Indian player Tata Motors. The
TML was launched in September 2006 and created a sensation on account of its aggressive pricing at Rs.2,
99,000. It became successful as TML, it had the price –value equation just right. While Daewoo’s Matiz
picked up only seven months after its launch, the car was selling more than 3000 units a month only 2
months after its launch. TML had infact, planned its entry into the Indian market with the 1495cc Fortuner
but later opted in favour of the smaller car. At the time the was launched, both the options available in the
segment- Fiat Uno and the Zen-had been around in the Indian Market for quite some time and lacked
novelty. Was not only cheaper but also incorporated a multi-point fuel injection (MPFI) system that offered
superior fuel economy to Zen’s carburetor system.
The Matiz was launched in November 2006. Its 800cc engine immediately encouraged comparisons with
Maruti 800. The initial launch price of Matiz at Rs. 3, 55,000 was significantly higher than Rs, 2, 99,000.
Given that the Matiz was smaller than the Zen and the, the initial impact was not so strong. In May 2007,
Daewoo launched stripped-down variants. The launch of the cheaper versions saw the sales of Matiz
reaching almost 2006 units in May 2007 and recording an average monthly sale of 3123units in FY2007.
However, the financial crisis faced by the parent, Daewoo Motor Corporation affected the performance of
the Indian subsidiary (that was reporting net loss and had significant borrowings). Subsequently, the Indian
subsidiary halted production.
The 1061cc Wagon R is available in four manual transmission variants (LX, LXi, VX and VXi) and one
automatic transmission variant (AX). Since its introduction in February 2007, Wagon R has been selling in
the 1500-3000units per month range as against 5000-8000units per month range for the. The presence of the
already well-established Matiz meant that the novelty factor did not work too well for Wagon R.
The other cars in the compact segment to have made an immediate dent in the market with their launch are
the Palio of Fiat India and the improved version Indica V2 of Tata Motors. Indica was the third largest
selling car in FY2006 in this segment, after and Zen. On the other hand, Palio was launched at the time
when the passenger car industry was witnessing a slump but the model cut across the barriers and was able
to create a market for itself. However, the success of this model was short-lived and the sales declined
thereafter. Nevertheless, launches of new variants helped sales recover marginally.

The size of the compact segment has increased as a result of the high growth rate attained by the models in
this segment. The changing price-value equation, coupled with the declining interest rates and easy
availability of finance, has prompted consumers to move towards the compact car segment from the mini
segment. The high rate of growth achieved by the compact segment has attracted the attention of other
players also; including GM. GM has entered the compact segment with the launch of its Opel Corsa Sail in
May 2007.
 Toyota Motors India Limited

An Overview

Toyota Motor India Ltd (TML) is a wholly owned subsidiary of the Toyota Motor Company Korea, a part of
the Toyota Motor Group comprising Toyota Motor Company, Toyota Mobis and other affiliated companies,
with a combined turnover of over US$ 50 Billion. The Toyota Motor Group with a presence in over 185
countries and combined annual sales of over 3 million units is one of the fastest growing auto manufacturers
in the world.

TML has emerged as the second largest and the fastest growing car manufacturer in India. TML presently
markets over 26 variants of passenger cars in six segments. The in the B segment, Camry in the B+
segment, the Fortuner in the C segment, the Etios in the D segment, the Corolla in the E segment and the
Tucson and Terracan in the SUV segment.

The company recorded combined sales of 215,630 during calendar year 2006 with a growth of 43% over
year 2007. TML is India's fastest growing car company having rolled-out over 700,000 cars in just over 70
months since its inception and is the largest exporter of passenger cars with exports of over Rs. 1,700 crores.
TML has recorded a staggering growth of 149% in exports over the year 2007.

TML’s fully integrated state-of-the-art manufacturing plant near Chennai boasts some of the most advanced
production, quality and testing capabilities in the country. In continuation of its investment in providing the
Indian customer global technology, TML has announced plans for its second plant, which will produce
150,000 units per annum, raising TML’s total production capacity to 400,000 per annum by 2007.

The plant will be built on a 2.1 million square meter site adjacent to the existing facility with an investment
of $450-$500 million on its new integrated facility. TML is investing to expand capacity in line with its
positioning as HMC’s global export hub for compact cars. Apart from expansion of production capacity,
TML plans to expand its dealer network, which will be increased from 146 to 180 this year. And with the
company’s greater focus on the quality of its after-sales service, TML’s service network will be expanded to
over 1,000 in 2007.

TML has many awards in its bouquet. It was declared “The Star Company” amongst unlisted companies by
Business Standard this year. Camry got the coveted “Car of the Year 2007” award twice over. It was declared
a winner by both Business Standard Motoring and CNBC-TV18 Autocar Auto awards. Toyota Etios won the
CNBC-TV18 Autocar “Best Value for Money” Car Award.
TML was also the “Manufacturer of the Year” two years in a row in 2006 and 2007. ICICI Overdrive Awards
declared Toyota as the “Car Maker of the Year” in 2007. Toyota products with state of the art technology
have also been winning many accolades over the year’s bagged top honours in JD Power Asia Pacific for
three years. Fortuner was ranked No. 1 in J D Power Asia Pacific APEAL for two years and also got
Business Standard Motoring Jury award for its CRDi model.

TML has also been awarded the benchmark ISO 14001 certification for its sustainable environment
management practices.

Here is a chronology of key events and milestones in Toyota's history:

1933 - Automobile department established within textile loom maker Toyoda Automatic Loom Works
1935 - First vehicle, the Model G1 truck, built. First Toyota dealership established
1936 - Production starts of its first car, the Model AA
1957 - Crown becomes first passenger car made in Japan to be exported to the United States
1962 - First overseas vehicle plant, in Brazil
1964 - First Asian vehicle plant outside Japan, in Thailand
1972 - Cumulative production in Japan reaches 10 million vehicles
1984 - Toyota's first U.S. car assembly plant, a joint venture with General Motors Corp, opens in California
1989 - Toyota launches luxury Lexus brand in North America
1992 - First European car plant begins production in Britain
1997 - Prius, the first mass-produced hybrid car, launched
1998 - Toyota takes majority stake in mini vehicle maker Daihatsu Motor Co
1999 - 100 millionth Toyota vehicle produced in Japan
2001 - Toyota takes majority stake in truck maker Hino Motors Ltd
2003 - Toyota makes 6.78 million vehicles and overtakes Ford Motor
2005 - Toyota takes minority stake in Fuji Heavy Industries
2006 - Toyota's group global sales of 8.808 million vehicles exceeds GM's by 128,000

NEW MILESTONES
The Indian passenger car market is a highly competitive market. Although its growth has been hi in past
several years, profitability has been impacted because of rising costs, change in excise policies and intense
price competition. With the developed countries like USA and UK having 350 as an average no of cars per
thousand persons it is very low in India (5). So in future, the arena of competition is most likely to be shifted
to developing countries like India and that too in a highly competitive segment like B-Segment.

With the opening of economy and reformation norms by government, the market has started witnessing the
entry of new global players like Toyota, Honda and GM in the Indian market, pointing to further
intensification of competition in future. With the consumer attaching higher value to the features and
economy in case of car buying, the players are likely to focus more on product development (to incorporate
advanced features in their designs) and advertisements (to set up their own positions in a consumer mind).

TML is emerging as a major player in Indian passenger car market. Its products are and Fortuner are
success stories in themselves. But the buck does not stop here only. Its parent company HMC is focusing
upon TML as a base to integrate its production and R & D facilities across Asia Pacific. For that TML is
planning to increase its present production capacity of 2.5 lakh cars per year to 4 lakh cars per year by 2007.

Exports are also another front which is giving TML an intense opportunity to expand. For the first six
months of this fiscal TML has exported cars worth Rs. 1,325 crores and targeting an overall export of over
Rs. 2,700 crores in this fiscal up from Rs. 1,700 crores in 2006-07.

TML has sold a total of 236,878 vehicles in the Calendar Year 2007 so far, achieving a growth of 21% over
the January-November sales in 2007. While domestic sales in January-November, 2007, were 148,515 - a
growth of 16.6% over the previous year, overseas sales during the period stood at 88,363 units - a growth of
29%.

In November, 2007, HMI sold a total of 21,725 units - 14,010 vehicles in the domestic market and 7,715 cars
in the overseas market.

Over the years, TML has been focusing on effective brand building and consumer strategy. This has
contributed towards enhancing their bottom line. A significant contribution in this success is of the
advertisement strategy adopted by TML. It has changed its advertisements time and again. Now TML has
started a new initiative under which they have started their own in house advertising agency known by the
name of Innocean which will handle its all promotions.

With the new initiatives, TML is all set to achieve its ambitious growth of 30% in sales over last year. Thus,
Toyota motors India limited is all set to conquer the Indian passenger car industry.
 AWARDS & RECOGNITIONS

As one of the fastest growing automobile companies in India, Toyota has many accomplishments to its credit.

Business Standard - “Star Company” Award to Toyota Motor India

JD Power Asia Pacific

 Toyota has topped the JD Power Asia Pacific Initial Quality Study (IQS) that measures product
quality for three years in a row (Years 2007, 2006 and 2007)

 Toyota has topped the JD Power Asia Pacific APEAL study that measures customer satisfaction
for three years in a row (Years 2006, 2007 and 2008)

 Toyota Fortuner has topped the JD Power Asia Pacific IQS for 2007 and the APEAL study for 2006
and 2007.

Business Standard Motoring

 Toyota Camry is BS Motoring's 'Car of the Year' 2007

 BS Motoring – BS 1000 – Company of the year 2007– Toyota Motor India Limited

 Toyota is BS Motoring's 'Car of the Year' for 1999

CNBC

 Toyota Camry is the CNBC Autocar Car of the Year 2007

 Toyota Etios – Best Value for Money Car of the Year 2007

 Company – Awards – CNBC Autocar India – Toyota has been the manufacturer of the year for two
years in row.

ICICI Bank

 Toyota Motor India was adjudged the ‘Car Maker of the year’ at the ICICI Bank – Overdrive
awards 2006

TML has also been awarded the benchmark ISO 14001 certification for its sustainable environment
management practices.
 PRODUCT TOYOTA

The car was launched on September 23rd 1998 in the Indian market and the company sold around 17000
units in first five months. The ‘Tall Boy’ concept was well taken by the Indian Customer. Since its
inception’s sales has been achieving an annual growth rate of about 20% on an average. An advertising
campaign starring Virat kohli, and A R Rahman was unleashed to further boost the sales and this has
certainly proven to be effective. As a result of which has now become a market leader in its own Segment
(B-Segment) leaving earlier market leader Maruti Zen and Tata Indica. Repositioned from being a family car
to an individual’s first car, within a short span of time & has been able to capture the hearts and minds of the
consumers.

The following table gives the ex-showroom prices of all the variants of:

Models
XK Non AC (Solid)
XK Non AC (Metallic)
XK AC (Solid)
XK AC (Metallic)
XL (Solid)
XL (Metallic)
XO (Solid)
XO (Metallic)
INNOVA AT (Solid)
INNOVA AT (Metallic)
 RESEARCH METHODOLOGY

As the purpose of study is analyze the marketing strategies of Toyota motor India ltd. with focus to Toyota.

Data Collection
Data collection is the process through data is collected, it is basically done through 2 main sources i.e.
primary source and secondary source. From these sources data is compiled i.e. primary data and secondary
data. In this project both primary data and secondary data are used.

Primary Data
Primary data is the data which is collected through surveys and questionnaires.

Secondary Data
Secondary data is the data which is collected through internet, magazines, newspapers, journals, broachers,
television etc.

Sample Size
In this project questionnaire was prepared and multiple choices and the pattern of questions was given to 50
respondents. With every question, multiple choices were given.

Type of approach: The type of approach followed is descriptive approach. In descriptive approach cross
sectional design is used. Cross sectional design is used because it is concerned with a sample of population
of interest.
 MARKETING STRATEGY

Strategy and timing are the Himalayas of marketing. Everything else is the Catskills. - Al Ries

TML has been successful in capturing the car market because of the excellent product it has produced. The
market research conducted by Toyota showed that Indian cars were overcrowded, with turbans and sarees to
be accommodated. The idea was to create a voluminous compact car. The “tall boy’ model was taken from
the Atoz and it was redesigned to meet Indian conditions. Thus, the company was born. The is available in
a number of versions and has a number of new built-in mechanisms---power windows, power steering,
central locking, side impact beams, frontal crumple zone, child safety locks, seat belts, multi-point fuel
injection systems and CFC-free air-conditioners. The car is available in nine new colours. The car also gives
high mileage. The engine delivers adequate torque i.e. the ability to pull loads even at very low speeds---this
proves to be very essential for slow and traffic-heavy Indian conditions. The most important is the seating,
which is, high and gives “road command”.

Toyota was competing with Maruti in the small car segment and it offered technology that other car makers
thought was too advanced for the slow growing Indian market. Toyota has now built up a reputation such
that it is the first preference of anybody who has driven or ridden in it.

The marketing strategy employed by Toyota for the can be studied with insights into their STP analysis and
Marketing Mix.

PEST ANALYSIS
In order to understand the conditions under which the car was launched in the Indian market, it’s necessary
to analyze the factors that influenced its effectiveness.

Political Conditions

 Toyota entered India when liberalization was at its peak. As a result, everyone was very open to the
idea of foreign companies setting up base in India.
 The government insisted on the Companies using 70% local content in the manufacture of the cars as
they would have generated tremendous revenue for India. Toyota achieved this in a very short time.
 Change in government policies in recent times like opening of FDI in various segments has given a
thrust to Toyota initiatives in India like opening of its R & D center in Chennai.
  A positive EXIM policy also has helped TML to boost its topline with Exports of two other
countries.

Economic Conditions

 The economic conditions during the launch of Toyota were very relaxed and liberal. Toyota was
launched when the country had just opened its doors to liberalization. So there were no strict norms
or bylaws that the company had to adhere by.
 The resources available in India were utilized by the multinationals, which generated considerable
revenue for the government.
 A booming banking sector and a phenomenal growth in Auto Loans market has made more
affordable.

Social Conditions

 A rise in Middle class and concept of small nuclear families has propelled a demand of B-Segment
cars. Toyota provides an exact choice for this demand leading to its high growth.
 An average Indian was bored with the same Maruti 800 as his first car and’s positioning as one’s first
car has led to Toyota’s success.

Technological conditions

 Toyota is a fairly new company in India. As a result when it started out in India it started out with the
best of machinery. So, the quality of products was several times better than what was available at that
time. This resulted in the acceptance of Toyota as a technologically superior company in the minds of
the people.
 Since Toyota manufacturers everything from the smallest of screws to the biggest of machines in its
factory it is able to maintain the efficiency of the machines. Toyota therefore manufactures cars under
best of conditions with the best of machinery. As a result, the cars manufactured are of top quality.
 STP – SEGMENTATION, TARGETING, POSITIONING

Marketing is not an event, but a process . . . It has a beginning, a middle, but never an end, for it is a process.
You improve it, perfect it, change it, even pause it. But you never stop it completely.
- Jay Conrad Levinson

Segmentation
Segmentation is based upon considerable evidence that a single marketing approach or formula will not
work for all members of the community to be served.

Geographic
The region of interest of TML for is whole India with special focus on Type A and fast growing Type B
cities across India.

Demographic
Age – Anybody of age between 20 – 40 yrs.
Income – Anybody with an income of over 4 lakh p.a.
Occupation – Millennials employed as professionals, managers and those want to buy their first car.
Social Class – Middle class, Upper middle, Lower Upper and Upper uppers.

Psychographic
Personality – Dreamers, those who want to achieve big, ambitious, price conscious, took their first step
towards success and value driven.

Behavioral
Benefits – Quality, Style, Price (economical)
User status – Potential users and first time users
Buyer – Readiness Stage – Those who are aware, informed, interested and intend to buy

Targeting
In evaluating the market segments Toyota has looked at two factors - The segments overall attractiveness
and the companies resources. As is very clearly seen Toyota has opted for a selective specialization kind of
targeting. Toyota has selected a number of segments each objectively attractive and appropriate. There is
minimal synergy among the segments but each is a cash cow. This multi segment strategy has had the effect
of diversifying the firm’s risk.
Having Virat kohli, to endorse the paid off for Toyota. Virat kohli as a brand ambassador targets two sections
of the society. Firstly, his glamorous and sophisticated image appealed to the elite effecting their purchase
decisions. Secondly, his adorable persona appealed to the middle class buyers who wanted a good car for the
‘big’ investment they were making and for people who were graduating from the Maruti and the second hand
car.

Toyota was first launched in September 1998. At that time the cars which were prevailing in B-Segment
was led by Maruti Zen. With a price tag of only Rs. 2.99 lakh was targeted as the best available alternative
for Zen and was described as “The complete Family Car”.

The low price tag of initiated a price war among all companies and forced Tata Indica to pre-pone its
launch. The initial low price tag and strengthened by a solid marketing initiatives in form of print
advertisements provided a solid foundation for in India which showed in its sales of 17000 units in just 5
months. With that started a journey of whose sales grew at an average of 30% every year to emerge as the
No. 2 car in B- Segment giving the established leader Zen sleepless nights.
Toyota has identified its target market based on its pricing strategy. Aims to be the price leader in B-
Segment cars. It has always priced its base model lower than Zen or Indica giving all the features which they
give in their higher models. With a constant change in its positioning strategy, Toyota has succeeded in
identifying its target market every time and emerging as the fastest selling car in its own segment. With the
invent of INNOVA, Toyota is looking towards entire new segment of consumers and all set to target it to
emerge as the market leader in B- Segment cars.

POSITIONING
Since its inception, has undergone a lot of changes in terms of its positioning. First it was, then Zip drive,
then came Zip Plus and finally INNOVA as the latest model.

When it was initially launched it was positioned as “The Complete Family Car”. Since was launched in B-
Segment, it had Maruti Zen and Tata Indica as its biggest competitors in that segment. The stylish ‘Tall Boy’
Design of together with its slogan helped it to position itself as one of the cars to look upon.
With a constant change in its positioning, Toyota always tried to keep alive the buzz associated with. The Zip
drive and Zip plus positioning of helped to portray its position as the car which changes with time and
giving its owners something extra.
With the invent of INNOVA in 2007, which came with some design changes too, Toyota repositioned as
“Sunshine Car (smart car for young people)” from earlier “complete family car”. This was done because the
competitors were coming out with similar products and then Toyota started what they call as ‘Emotional
Positioning’. This repositioning of also helped it to target the segment of first time car buyers. Even the
print ads at this time were designed in a way to project as the first car for the fastest growing consumer
segment of India at that time, The Young Professionals, of the service industry that combined with various
loan facilities were too eager to buy their first car. This led to a phenomenal growth in its sales and further
strengthening its position as a brand in consumer mind. Thus the repositioning of gave it an edge over its
competitors and also to emerge as a tough rival to Maruti 800 as ‘The First Car’.
 6.3 PORTERS FIVE FORCES MODEL
Barriers to Entry
High capital investment required
Strong distribution network of
existing players
Strong Brands existing
Economies of Scale

Bargaining power of Rivalry among existing firms

Bargaining power of
Suppliers Exit barrier
Buyers
No substitute for critical Inputs Industry Growth
Availability of many brands
Switching cost from one Industry Concentration
Price sensitivity
supplier to other is high Diversity of rivals
Buyer Information
Supplier integrating forward Price competition
Product differentiation
for higher prices and margins Product differences

Threat of Substitutes
Switching Cost to substitute is very
low
Price – performance Trade off of
substitutes
Brand loyalty does not exist
 SWOT ANALYSIS

Strengths Weakness

Brand Name Lack of in house R & D

Large Distribution Network New model introduction limited
Wide product offering at different to only cosmetic changes
price points Dominance mainly at lower level
Cheapest Cars in corresponding only ( )
segments
Encouraging exports
Awarded many awards
Economy with technology

Opportunity Threats

Rise of Indian middle class and Many players fighting for the
small cities same cake
A booming economy Entry of new players
Rising exports Cannibalism

Strength
1. Brand Name: ‘’ has emerged as a strong brand name in recent times. Backed with the parent company
Toyota this is recognized as a strong player in worldwide automotive market, has definitely a value
associated with it any individual will like associated with.
2. Large Distribution Network: With a strong dealer network of around 300 dealers al around the country,
Toyota has made its presence felt in each and every corner of India. Cheapest cars in respective
segments: Toyota has always followed an aggressive pricing policy. As a result it has its cars priced at
lowest possible rates in respective segments.
3. Encouraging Exports: Backed by a strong production and a global setup at Chennai plant, Toyota is
exporting a lot. An export of worth Rs. 1,325 crores has been achieved in last six months.
4. Awarded Many Awards: Toyota has been awarded with many awards and recognitions like “The Star
Company” amongst unlisted companies by Business Standard this year. Its various models like Camry
and Etios too has achieved many awards, thereby increasing the brand vale of the company.
5. Economy with technology: Toyota’s cars have always seen as a company producing cars blending
economy with technology. ’s initiative of putting a 16-bit microprocessor on board has proved as one of
the major reasons for its success and that too for the lowest price in its segment.

Weaknesses
1. Lack of in house R & D: TML do not have a comprehensive R & D department in India and all the major
design changes are sent by its parent company HMC.
2. New model introduction to only cosmetic changes: There is no major design changes incorporated in
since its inception. Only some cosmetic changes have been made.
3. Dominance mainly at lower level: TML dominance in Indian market is only at its lower level segments
like in B-Segment and Fortuner in C-Segment. It has to focus on its upper segment models to strengthen
its position in Indian car industry.

Opportunities
1. Rise of Indian middle class and small cities: As a phenomenal growth is seen in recent times in
Indian middle class and the purchasing power of working class individuals. Also a rise in small cities
across the country has given a great opportunity to Toyota for achieving a higher growth rate in
coming times.
2. A Booming Economy: Indian economy is growing at a rate of on an average of 7% every year
thereby giving an opportunity of larger sales in each and every segment.
3. Rising exports: With an export of Rs. 1,325 crores in last six months, TML has a great opportunity of
achieving an export target of Rs. 2,700 crores in this fiscal year.

Threats
 1. Many players fighting for the same cake: There are many major players in the B-Segment and since
the size of market is not expanding rapidly, TML has a major threat in form of tough competition.
2. Entry of new players: with coming of Fiat Palio and other players planning to come out with much
more models in B-Segment, the competition is just getting hotter.
3. Cannibalism: to some extent the Camry is affecting because of its price. Thus TML has to focus more
on its positioning strategy of Camry.

P’s of Toyota Motor India Ltd. With focus to Toyota

First ‘P’ - The Product
A New Shining Dawn - Here Comes the Sun Again
Ever since its launch in 1998 the has proved to be the best compact car in India, thanks to its excellent
design and extensive testing for over 100,000 kilometers in real Indian road and climate conditions. It is
clever design that gives cars this touch of practical beauty. Toyota has come up with a vehicle that surprises
with its ability to utilize space extraordinarily well. The Toyota is probably the first of the `big-small' cars
that hit Indian roads. Set between the B and C segments in terms of size and price, the attempts to offer trim
quality, interior space and build quality on a par with the pricey sedans. First it was. Then it got renamed as
Zip Drive. After a while, Zip Drive got replaced by Zip Plus. And then came its new ‘global' car,
INNOVA. Yes, INNOVA is the new avatar of the Zip Plus. However, this time it is not just a change in the
name; the new avatar also looks different from its predecessor. The INNOVA comes in five versions,
including automatic transmission, and has a new sporty exterior with safety features which meet European
standards. The INNOVA is available in nine colours viz., Ebony Black, Noble White, Satin Grey, Fairy
Leaf, Forest Dew, Husky Blue, Mystic Lavender, Passion Red and Bright Silver. The colours present a
varied choice to consumers in picking a car that most closely defines their personality. Consumers can have a
feel of the color right from their homes by logging on to the website of INNOVA. INNOVA comes with
all new looking feel exterior and interior styling. That, coupled with new advanced features, offers the best
comfort & luxury in the favorite compact car. New bigger & brighter clear headlamps, smiling radiator
grille, power operated rear windows with child lock and lots of other smart features like the seat under tray
are the hallmarks of your Sunshine Car. Is being produced exclusively in India and the Indian INNOVA will
now drives the World. The idea was to create a constant hype around to give it that competitive edge and
make it the truly “sunshine car”.

NICE AND CLEAN

Toyota calls a Euro-styled, premium hatchback. If simple straight lines and a practical, consistent design
theme are indicative of pronounced European-styling, then the car belongs to that class. European or not, the
is a good-looking car that is also upfront about its focus on practicality, with marginal excesses in design, a
trait that could not be associated with Toyota's first car for the Indian market — the .

Its exterior styling gives it a sort of dual personality. The large format, clear lens-type headlamp cluster
dominate the car's frontal view. The short, sloping bonnet and the single-slat grille seem to visually add some
more measure to the already class-leading width. These features as well as the broad front bumper and the
sharply raked windscreen make it look very sedan-like, when viewed from the front. The muscular shoulder
flanks and the prominent, flaring wheel arches give its well-planted, aggressive profile.

However, viewed from the back, it seems to acquire a new, squat and wider appearance. The short-hatch
door, the raised position of the thickset bumper and the relatively smaller combination lamps make the rear
seem more compact. The wrap-around style tail-lamps are positioned mid-way, instead of lower and closer
to the bumpers as in older hatches or high up on the C-pillar as in the case of the newer small cars such as
the Tata Indica and the Suzuki Wagon-R.

The overall design of the tail-lamps and the circular reverse indicator integrated into it may remind the
casual observer of the Daewoo Matiz. The rear spoiler with the integrated high-mounted stop lamp and the
chunky, profiled external rear-view mirrors add a touch of exclusivity to the. While visibility at the front is
ample for the driver, thanks to the panoramic windscreen and the large windows for the front doors, the
thick, wrap around body panels on the C-pillar limits the driver’s rear visibility, especially while backing the
car into a cramped parking slot.

SIMPLE INTERIORS
The interiors of the wear a fresh and simple look. The finish quality is good and dimensional accuracy of
dashboard and door panels rival those of a few C-segment cars. The soft feel plastic used for the dashboard
panels adds a touch of class, but the dimpled finish may be a bit difficult to clean and maintain in Indian
conditions.

There are ample storage options, including the deep glove box, the removable ashtray cup, bottle and cup
holders at the front and rear, seat side pockets, coin storage on the door handles, bag hook at the rear of the
front passenger seat and the 60:40 split, folding rear seats that go on to more than treble the boot storage
space. The instrument cluster is housed in a simple semicircular dashboard panel and features two rounds,
chrome-lipped gauges for the rpm meter and speedometer. The cluster also features a digital clock and trip
meter. Power and tilt-adjustable steering is standard.

The center console features a brushed aluminum slap-on panel and houses rotary type controls of the HVAC
(air-conditioning) system and positive type controls for the rear defogger, hazard lights and fog lamps. The
dual adjusting air-conditioner louvers look sophisticated and add to the’s up market image. The dashboard
extends more than a foot into the cabin. While this gives the driver even more open storage space on the flat
faced top, at the bottom, after the dashboard tapers off, the driver and co-passenger get loads of recessed leg
space.

ENGINE & TRANSMISSION

The had been brought in with Toyota's new 1,341cc, in-line, four-cylinder, SOHC engine that develops a
maximum power of 82.9PS at 5,500 rpm and a peak torque of 11.8 gm. at 3,200 rpm. With the peak torque
kicking at a low 3,200 rpm, you will not have to rev the engine up to a grunt to get the best out of it.
However, as the’s engine is mapped for economy, there is a mild lag before the torque kicks in the first three
gears. The other side of this slightly slow, but steady rise in torque is that this powerful 1.3-litre engine is
surprisingly tolerant of lower speeds in every gear slot.

As a result, knocking is minimal obviating frequent shifts to a lower gear. So, while the delivers a lively
performance in city traffic, the lull before peak torque kicks in may be only a tad bothersome on the
highway. But once you are past 3,000 rpm, it zips.

The five-speed manual transmission that the car comes with is one of the smoothest in its class. The short
throw, short-talked gearshift stick is a delight to use. The suspension set-up features McPherson-type struts
in the front and coupled torsion beam axle and gas-filled shock absorbers at the rear. This configuration,
coupled with the rigid chassis, gives the car excellent handling dynamics.

VALUE FOR MONEY

This is the first of the large sub-compacts that made their way into the Indian market. This cusp segment is
likely to find more buyers as the market matures and as the expectations of customers in the small-car
segment increase. For Indian car buyers looking for a good value for money proposition in the high-end B-
segment category, the car with its new and exciting variations is an attractive choice. With a fuel economy of
about 10 kmpl in city and about 15 kmpl on highway, it attempts to keep running costs relatively low.

KEY TECHNICAL SPECIFICATIONS AND FEATURES

INNOVA
Dimension and Weight Overall Length (mm) 3565
Overall Width (mm) 1525
Overall Height (mm) 1590
Wheelbase (mm) 2380
Min. Turning Radius 4.4 m
Engine Number of cylinders 4
Number of valves 12
Engine Displacement(cc) 1086
Performance Maximum Output 63@5500
(ps@rpm)

Maximum Torque 9.1 / 4000

(kgm@rpm)

Tyres Size 155/70 R 13 Radial

THE SECOND ‘P’ – THE PRICE

Using money as a magnet to attract customers kills loyalty, mangles margins and encourages defections. But
Unique Selling Price is undoubtedly one of the roads to success in the intensely competitive automobile
business. Ceteris Paribus, the purchase decision of the first-time buyer is influenced by four factors---Price,
Price, Price and Price. The first is the price of acquisition.

The second is the price of finance or the rate of interest on the loan. The third is the price of maintenance,
which includes the cost of fuel, service and spare parts. And the fourth is the price of disposal or the resale
value of the car.
High indigenization stood Toyota in good stead when it came to its entry pricing. Toyota surprised its
competitors with a under Rs.3 lakh (ex-factory) price, slightly below the Maruti Zen (Rs.3.2 lakh).
Competitors and analysts criticized Toyota for predatory pricing, but Toyota maintained that the low price is
a result of high indigenization level and effective differentiation. This gave Toyota a strong foot-hold as its
production costs were lower. Toyota ensured cost competitiveness through tie-up between Lumax (well
known supplier of lighting systems) with Toyota’s Korean vendor Samlip, to form Lumax-Samlip Industries.
This was because they were operating on much better overhead absorption, being suppliers to other
manufacturers in India. Also, they already had a grasp of technology because they had partnerships with
Japanese, European or American companies.

Toyota offers a comprehensive range of finance packages to suit all budgets, including Toyota Finance which
as an affiliated finance company offers complete financing packages tailored to individual requirements.
Toyota also has tie ups with banks like ICICI, Bank of America, KPML etc. to offer loans to buyers.

The following table gives the ex-showroom prices of all the variants of:
Models Ex-Showroom Price (in Rs.)
XK Non AC (Solid) 2,78,999
XK Non AC (Metallic) 2,82,973
XK AC (Solid) 3,32,999
XK AC (Metallic) 3,36,972
XL (Solid) 3,55,999
XL (Metallic) 3,59,972
XO (Solid) 3,81,999
XO (Metallic) 3,85,975
INNOVA AT (Solid) 4,24,324
INNOVA AT (Metallic) 4,24,298

70% of the cost of a car over its lifetime goes in maintenance. Accordingly, in Toyota, pre-delivery
inspection takes place at three stages---one, after the car rolls off the assembly line, the next when it is
loaded into the auto compound and finally, at the dealer’s premises before it is handed over to the customers.
This increases the time between services for. For instance, Maruti recommends services after every 5,000
kilometers; whereas Toyota recommends it after every 10,000 kilometers. Similarly, the engine oil, filter
assembly for the car is priced lower than that for the Maruti Zen. This low-cost proposition for spares offers
an added advantage when a buyer compares running costs.

Toyota realized the difficulty to compete in the car markets and decided to go for a sharp differentiation
strategy. In order to avoid the price game, it decided to reinforce the individualistic positioning of the brand
and tried to match the customer’s perception that the car is a commodity using other differentiators. Toyota
opted against the drop in prices, one reason being the fact that, buyers are shopping for brand associations
and customers are unlikely to let their decisions be swayed by savings of a few thousands.

THE THIRD ‘P’ – THE PLACE

Toyota has spent time studying dealer networks. It found that dealers were inconveniently located, their
behavior towards customers left much to be desired, and there was a lack of transparency in dealer
operations. So the Toyota outlook towards dealership is compact dealership instead of a mammoth network.
The emphasis is on a dealer-customer relationship where each customer is given time. The company insists
on a one-to-one relationship to build a long lasting association. To this end, the company insists on
ownership and operation of dealerships resting on one person, thus reducing absenteeism and promoting
immediate decisions.

TML has established a start-up network of 70 dealer workshops (now close to 150), equipped with the latest
technology machines and international quality press, body and paint shops, across the country. These dealer
workshops include company owned outlets called ‘Toyota Motor Plaza’, that provide a Toyota customer a
one-stop shop for meeting all needs.

In place of large showrooms and workshops, Toyota decided that the workshop should be ideally 10,000 sq.
Feet, which could be worked in three shifts and the showrooms it preferred were 1,600-1,800 sq. Feet.
Dealers who already had land would have to invest Rs.1.5 crores for the rest. With this infrastructure dealers
can handle 200-250 cars a month, which gives them adequate time to establish rapport with customers.
The company has also cut expenses of its dealers by keeping inventories low. Toyota’s dealers are given
limited stock. This does not mean that car’s spares come late. On the contrary, the car’s parts are available
within 24 hours.

The dealer network is established with the objectives of providing the customer the very best through a 24
hour hotline system, round the clock workshop services, roadside services with tow away facilities, round
the clock helpline services, etc.
 THE FOURTH ‘P’ – THE PROMOTION
If you're trying to persuade people to do something, or buy something, it seems to me you should use their
language, the language in which they think. - David Ogilvy

Strapped with the tagline ‘Smarter people drive’ Toyota hit the Indian roads nearly a decade back. Toyota
being a much admired lifestyle brand was launched in nine colors with a colorful and jazzy advertising
campaign developed by its advertising agency Saatchi and Saatchi. Toyota set aside as high as Rs 5 crore for
advertising and promotions each month. Effective advertising can add immense value to brands, even in the
small car segment, where the typical customer is far more informed and aware of the product behind the
brand.

Toyota Motor India Ltd (TML) realized Indian consumers' penchant for unique designs soon after their entry
into India. With the runaway success of the, TML was right with its promotion strategy and came up with a
winning campaign. Toyota has come a long way from its original version to  zip drive moving on to
zip plus and now to the newer and refreshed  INNOVA, employing a different tag-line and promotional
approach each time.

The first version of was launched with much vigor as India’s very first “big small car” and India’s very
own “family car”. Being the first of its kind in the small car segment Toyota positioned itself well in the eyes
of the consumer encouraging them to buy the car. The earlier platform of Zip Drive suggested USP of power
steering. "The Zip Drive positioning was successful at a time when air conditioners were seen as brand
differentiators," Toyota hoped that in a market where power steering accounts for over three-fourth of B
segment sales (was one of the early power steering campaigners), and air conditioning had more or less
become an integral part of car purchases, the focus on Zip Plus with a new brand positioning of ‘More
Power, More Fun' will be a critical differentiator. Toyota contended that the Zip Plus positioning aimed at
suggesting that something critical had been added to the brand's current avatar. Toyota was very generous in
promoting its new INNOVA model, promoting it as the “sunshine car” and roping in Bollywood actress as
the brand ambassador. Intense competition in the B-category from Fiat Palio, the Maruti trio of Zen, Wagon
and Alto, and Tata Indica forced Toyota to keep the excitement about alive encouraging the fresh new
positioning and attitude with INNOVA, promoting it as a “new age car” targeted at stylish individuals.
GROUND PROMOTIONS
To promote its new offering, Toyota chalked out a strategy which included press ads, television campaign,
outdoor media and internet advertising. In addition, the company is in the process of rolling out a slew of
marketing initiatives to promote its launch. In a bid to reach out to a wider target audience, Toyota has
recently extended its dealership to 133 across the country. To support its mass media advertising, the
company is now focusing on ground promotions. It sponsored many shows and musical events like the MTV
Style Awards in order to increase visibility.

They are hosting dance competitions at discos and night clubs in major metros across the country. As it’s a
new age car, it has also launched a slew of internet ad campaigns to promote the brand online.’ For this
purpose, the company has tied up with portals like Rediff and Yahoo! India Toyota is giving its four-year old
small car a new and fresh positioning, and has roped in young and vibrant Bollywood actress A R Rahman
for promotions worth Rs 5 crore.

PRINT PROMOTION

Toyota was the top Car brand on Print in 2007 accounting for nearly 10% of the advertising spends. Toyota
Motor India unveiled a hard-hitting print campaign to announce the emergence of as the country’s No. 1
Small Car. Ingredients of the campaign are comparative ratings, which points to certain superiority over
other B class rivals. Virat kohli, being the brand ambassador was mainly featured in the print ads. It’s said
that Virat kohli, ad has been the ad with the highest recall value with as high as seven people out of ten being
able to remember him and connecting him with. Over time as excitement fizzed out Toyota roped in actress
A R Rahman with Virat kohli , giving birth to the ‘sunshine’ giving a bubbly and youthful feel to the entire
campaign to revive some amount of brand fatigue. While sticking to the ‘complete family car' positioning,
‘Sunshine' created new interest for the brand in the consumer's .Since the buyer is young was then
promoted as a car that can change the life of a young person mind .Since the buyer is young was then
promoted as a car that can change the life of a young person.
CELEBRITY ENDORSEMENTS
Toyota has greatly benefited from its TV ad campaigns. Thanks to their brand ambassador Virat kohli, ads
have the distinction of having the highest recall value. With A R Rahman adding more “INNOVA” to the
campaign the run-away success speaks for itself.

More than the ad’s it is the positioning strategy of the needs to be complemented. They have positioned the
car as the consumer’s first choice while buying a car for the first time in his life as al the first things in his
life are special.

The initial ad aired featured Virat kohli with a certain Mr. Kim, who also became an instant hit with the
masses. Of interest is the fact that by the time (Virat kohli), came around and ‘agreed' to an endorsement
contract, Mr. Kim had told Indian consumers a few things about Toyota (the company) and the (the car).

It might even be argued that it was the fictitious Mr. Kim - and not brand ambassador Virat kohli , - who first
appealed to the left-brain of Indian consumers by selling brand Toyota, which went some way in later
establishing the as a standard in the ‘B' segment of the Indian passenger car market. That, of course, was
five years ago. Since then, Virat kohli has been regularly endorsing the its many variants, while Mr. Kim
dignifiedly withdrew into anonymity, his job done.

Well, after a five-year interregnum, gentleman Kim is back in the 's communication - though, at first glance,
he doesn't come across as being particularly gentlemanly any longer. Quite the opposite, he is rather curt -
even boorish - in the way he stops the cheerful Virat kohli (driving a ) in the middle of nowhere and tells
him to hand over the car's keys, explaining that his contract for the Zip Plus is ‘over'.

He virtually dumps Virat kohli by driving away with the car, leaving the nonplussed endorser stranded on the
highway. (Incidentally, this ‘teaser' interlude is part one of a two-part communication.) If Mr Kim's
behaviour is at odds with his earlier warm, gracious persona, everything is soon explained - in the second
part of the communication. As Virat kohli walks down the lonely road, a car draws up to him. And out steps
Mr Kim.

An understandably angry Virat kohli demands an explanation, and Mr Kim readily offers one: the new
INNOVA, from which he has just exited. ‘Your contract for INNOVA begins now,' he smiles genially at
Virat kohli, handing him the keys of the new car.

This was a smart move on Toyota’s part as the consumer could easily relate to the new and improved version
of “ INNOVA” the earlier zip plus. It was during this time that Toyota promoted it as the “sunshine car”
and came out with the print and TV campaign featuring A R Rehman.
This promotional campaign was successful in imparting a youthful and bubbly feel to the brand. She is the
‘physical embodiment' of the ‘sunshine' that supposedly brings to the lives of its customers. To keep the
excitement alive, they have aired the ad’s with a storyline which has been broken up into four parts.

The first ad was the teaser that introduced the concept of ‘sunshine’ (without actually showing A R Rahman).
In the second part, we get a glimpse of A R Rahman. It is only in the third part that the love between Virat
kohli, and A R Rahman blossoms.

The final ad in the series would delve into ‘the chemistry' between the two. It is therefore, rightfully said that
Toyota has been very smart in perceiving the consumers interest and thus coming out with a campaign which
is both visually pleasing and is successful in putting it’s point across.
 TOYOTA ROAD SHOW "WORLD OF WHEELS"
Toyota has by hosting and participating in auto car shows believes in increasing its visibility all across.
Toyota Motor India's second road show, the "World of Wheels" (WOW), began its four-month long journey
across the country on December 2, 2006, with a grand display of nine cars from the Toyota stable.
The "World of Wheels" will drive into 34 non-metro cities, beginning with Ludhiana in Punjab and then
move to other cities in the Northern region. In each of the cities, covering all the four regions, the road show
would be a three-day event, with a special press preview on the inaugural day. All the seven Toyota brands
currently sold in India will be on display at the exhibitions. As a special attraction, Toyota has shipped from
Korea two premium Toyota cars which are yet to be launched in India - the super-luxury sedan Azera and the
sports coupe Tuscani. This is for the first time that the two cars would be displayed all over India.

The World of Wheels will not only showcase the sophistication of Toyota's technological advancement and
design capabilities, but also give the people an opportunity to book their vehicles at the venues. The road
show in each city promises to be an exciting affair with special offers and a "WOW package" of goodies for
people who book their cars at the venue. The event will also have its share of fun and entertainment - with
game-shows, contests and exciting prizes.

The country wide road show is part of Toyota Motor India's continuing effort to connect with and reach out
to the customer directly. The event will give our customers in non-metro cities a first-hand experience of the
entire range of Toyota cars in India and some which may enter India in the near future.
 FINDINGS AND ANALYSIS

Ques1
Total income

Below 1 lakh 5

1 lakh – 1.5 lakhs 10

1.5 lakhs – 3 lakhs 22

Above 3 lakhs 13

This doughnut graph represents the income level of the respondents. Under this category as we can see that a
lion share of respondents i.e. 44% belongs to middle group that is with income between 1.5 lakhs to 3 lakhs.
Ques 2
For how many years you are using Toyota

1 year 5

2 year 15

3 year 20

More than 3 year 10

This pie graphs shows the experience of number of respondents who are using Toyota. As we can see that
40% respondents are using Toyota from last 3 years.
Ques 3
Do you like Toyota?

Yes 42

No 8

This bar graphs represents responds of respondents about their likings for Toyota. And as we can see that 84% of
respondents like Toyota, which is a very good sign of consumer satisfaction.
Ques 4
What were the factors which influence you to buy Toyota?

Brand name 13

Style 2

Fuel efficiency 15

Comfort 10

Performance 5

Any other 5

This doughnut graphs represents the factors that influenced the respondents to buy Toyota. As we can see that 30
% of respondents buy their Toyota for fuel efficiency and 26% of respondents for brand name.
Ques 5
Are you satisfied with your Toyota?

Yes 38

No 12

This bar graph represents the consumer satisfaction for Toyota. As we see that 76% of respondents are
satisfied with their Toyota.
Ques 6
What you don’t like about Toyota
After sales services 20
Air conditioner 5
Comfort 8
Fuel efficiency 2
Performance 9
Any other 6

This bar graph represents disliking about their Toyota. This shows that 40% of respondents are not satisfied
with after sales services.
Ques7
What you like about Toyota

After sales services 8

Air conditioner 12

Comfort 10

Fuel efficiency 15

Performance 5

Any other 0

This bar graph represents likings about their Toyota. This shows that 30% of respondents are satisfied with
fuel efficiency of the car.
Ques 8
Did advertisement influenced your Toyota buying decision

Yes 39

No 11

This bar graph represents the advertisement influence in the buying decision of Toyota. This shows that
advertisements influenced 78% of respondents for buying Toyota.
Ques 9
Toyota to you

Just a car 5

More than a car 15

The sunshine car 10

The family car 20

This doughnut graph represents the emotional bonding of the respondents with Toyota. This shows that for 40%
of respondents, Toyota is not just a car but a Family Car.
 Observations & Recognitions

 Today, in India there are only 5 cars among 1000 people so there is a huge market to exploit.

 According to Recent Sales Satisfaction survey Toyota lies at the second last position.

Indian Sales Satisfaction Index (SSI)

HM/Mitsubishi
Honda Siel
114 114 Ford India
114
M&M
112 110 Dawood Motors
109
110 Hyundai
MUL
108 105
106
SSI Scores
104 102 102
102
100
98
96
Companies

Thus Toyota should train their technical staff to deal with customer who is in the workshop to get their
cars serviced/repaired. No doubt it is hard to manage and handle such a big network but the company has
to handle it properly to satisfy its customers. We should always remember that loyal and satisfied
customer gives a chain of new customers.

 Toyota should emphasis on after sales services.

 Toyota should launch the CNG variant of its models used for public transport.

 Toyota dealer network is still small as compared to segment it is targeting. So it has to expand its dealer
network to keep up with its rising sales.

 The comprehensive promotional campaign of Toyota should continue giving it more brand visibility.

 Toyota should take this fact into consideration that the demand for passenger cars in the long run will be
burst due to rising income levels and also due to rise in Indian middle class.

 TML can also focus on exports as this is one area which is having the largest share in its Top line growth.

CONCLUSION
This project was conducted on marketing strategies of Toyota motor India ltd. with focus on Toyota. In this
project questionnaire was prepared to know the consumer satisfaction level of respondents and the conclusion is
based on the same.

Few years ago, on September 23rd 1998 the company launched Toyota in the Indian market. The company was
new in the market but still the company sold around 17000 units in first five months. The company has already
created their market share till now and can be differentiated from other brands.

From findings and analysis we can conclude that the consumers are very much satisfied from their Toyota. For
them Toyota is not just a car but for them it’s a family car, that is the company has already created their
emotional bindings with their consumers.

As Toyota is a middle segment car so its main focus is to give more fuel efficiency, and according to
respondents, the company has given them what they want, that is most of the respondents are satisfied from fuel
efficiency of the car. But the company also lies behind in some fields like few respondents were not happy when
after a sales service is taken into account.

“Success will largely be determined to the extent a company can differentiate itself in terms of intangibles

that go with a car”. Thus, success could well hinge on the best of bundle of services that a carmaker can

provide.
 QUESTIONNAIRE

Name ____________________________________
Address ____________________________________
Age ____________________________________
Occupation ____________________________________

Ques1
Total income
A) Below 1 lakh B) 1 lakh – 1.5 lakhs
C) 1.5 lakhs – 3 lakhs D) above 3 lakhs

Ques 2
For how many years you are using Toyota
A) 1 year B) 2 year
C) 3 year D) more than 3 year

Ques 3
Do you like Toyota?
A) Yes B) no

Ques 4
What were the factors which influence you to buy Toyota?
A) Brand name B) style
C) Fuel efficiency D) comfort
E) Performance F) any other

Ques 5
Are you satisfied with your Toyota?
A) Yes B) no

Ques 6
What you don’t like about Toyota
A) After sales services B) air conditioner
C) Comfort D) fuel efficiency
E) Performance F) any other
Ques7
What you like about Toyota
A) After sales services B) air conditioner
C) Comfort D) fuel efficiency
E) Performance F) any other

Ques 8
Did advertisement influenced your Toyota buying decision
A) Yes B) no

Ques 9
Toyota to you
A) Just a car B) more than a car
C) The sunshine car D) the family car
 BIBLIOGRAPHY

 Marketing Management by Phillip Kotler

 Brand positioning by Subroto sengupta
 Positioning: The Battle for your mind by Al Ries & Jack Trout

Newspapers, Journals & Magazines

 Business World
 The Economist
 Economic Times
 Autocar India