TOYOTA

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TOYOTA

HISTORY:
Toyota Motor Co. was established as an independent and separate company in 1937. Although the founding family's name is Toyoda, the company name was changed because the name Toyota is considered to be luckier than Toyoda in Japan because eight is regarded as a lucky number, and eight is the number of strokes it takes to write Toyota in katakana. After World War II, Japan experienced extreme economic difficulty. Commercial passenger car production started in 1947 with the model SA. The company was on the brink of bankruptcy by the end of 1949, but the company eventually obtained a loan from banks In June 1950, the company produced only 300 trucks and was on the verge of going out of business. The management announced layoffs and wage reductions, and in response the union went on a strike that lasted two months. The strike was resolved by an agreement that included layoffs and

pay reductions but also the resignation of the president at the time, Kiichiro Toyoda. Toyoda was succeeded by Taizo Ishida, who was the chief executive of the Toyoda Automatic Loom Company. The first few months of the Korean War resulted in an order of over 5,000 vehicles from the US military, and the company was revived. Ishida was credited for his focus on investment in equipment. One example was the construction of the Motomachi Plant in 1959, which gave Toyota a decisive lead over Nissan during the 1960’s In 1950, a separate sales company, Toyota Motor Sales Co., was established (which lasted until July 1982). In April 1956, the Toyo pet dealer chain was established. In 1957, the Crown became the first Japanese car to be exported to the United States. Toyota began to expand in the 1960s with a new research and development facility, a presence in Thailand was established, the 10 millionth model was produced, a Deming Prize, and partnerships with Hino Motors and Daihatsu were also established. The first Toyota built outside Japan was in April 1963, at Melbourne, Australia. By the end of the decade, Toyota had established a worldwide presence, as the company had exported its one-millionth unit. In 2010, Toyota employed 317,734 people worldwide, and was the world's largest automobile in 2010 by production. In 2010, the Toyota ranked first in units produced globally, with 8.6 million units. President of Toyota Motor Industries is Rizaburo Toyoda and the present CEO is Akio Toyoda.

Vision and Mission

Vision

To be the most respected and successful enterprise, delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology".

Mission To provide safe & sound journey. Toyota is developing various new technologies from the perspective of energy saving and diversifying energy sources. Environment has been first and most important issue in priorities of Toyota and working toward creating a prosperous society and clean world.

Marketing Mix
We would be focusing on the marketing mix of Toyota’s top selling product in Pakistan “Corolla”
Since 2003, Toyota has taken over to become the world's number two carmaker and they are not very far behind GMC, the number on US carmaker. With their consistency in innovating designs and over a billion dollars spent in advertisement a year, Toyota has become an attraction in the eyes of many auto consumers worldwide. Toyota has built its reputation not only by producing high quality vehicles at affordable prices, but the brand and marketing skills they use through tactful pricing strategies. Toyota has differentiated their prices from the traditional pricing set up of many of the other automobile makers. However, it is their effectiveness in targeting consumers' needs and wants that has pushed them to the top.

Product:
Toyota’s top selling product in Pakistan is Corolla. Toyota has introduced six different models of Corolla in Pakistan according to social class and has targeted the Middle and Upper class with its following product models. Corolla XLI, Corolla GLI, Corolla 2.0D, Corolla Altis for the middle class. Corolla 2.0D Saloon and Corolla Altis (Sun roof) for the Upper class.

Price:
Toyota has priced its products differently in different regions. The cost of the car is same but the insurance and road tax rates differ in different regions. Similar to its product strategy Toyota has priced its products according to the social class. The Corolla models for the middle class are sold in the range of 1,400,000-1,700,000 and for the upper class the range is 1,700,000-2,000,000.

Place:
Toyota has a total of 25 dealers in different big cities of Pakistan. • Karachi

• • • •


Lahore Multan Quetta Sialkot Bahawalpur Di khan Peshawar Azad Kashmir Faisalabad Sargodha Mardan Islamabad Rawalpindi

• • • • • • • •

Promotion:
Modern marketing demand more than just developing a good product , pricing attractively making it available to target consumer. So Toyota total marketing communication program consist of advertising, personal selling and promotion and after sale services.

Advertising:
Since company has develop the market of its product to such extent that they have not to advertise to the extent the competitors do. They are extending their market through electronic media and newspapers and boarding

Personal Selling:
Indus Motor Company has appointed very trained experienced sales people in large number so they can observe the needs of customers and make adjustments.

Favorable Location:

Favorable location indicates the strength of an organization and the essence of favorability is that whether the plant is located at a place which is near to supplier or not. Their plants at located near to the suppliers place. General Tyre Company is near to it from which it gets the tires for its cars and save transportation cost. Some of vendors are also located in Lahore but most of its vendors are located in Karachi.

Product Mix:
Toyota Industries puts its technology and rich know-how to work developing and manufacturing a variety of other products that excel in functionality and quality, Toyota's entire product line-up is to be reviewed to better focus its offerings to each global region, the firm's new president said today. Akio Toyoda, grandson of the founder of the Toyota Motor Corporation said he will put customers and the rank-and-file first to steer the car-maker out of its worst crisis since it was founded. At his first news conference as president, he said each of his executive vice presidents will oversee a global region - North America, Europe, Japan and emerging markets, to be more nimble and answer consumer needs. He said Toyota will focus on some auto sectors while pulling out of others, depending on the region. He did not give details, though he said hybrid technology was an example of Toyota strength.

Products in Pakistan:
In Pakistan their products are 1. Camry 2. Corolla

3. Cuore 4. Hilux As in this report we are mainly focusing on Toyota Corolla so these are the products under this category:

Corolla XLI and GLI:
Engine Capacity 1.3L. Engine capacity of both Xli and GLI is same and the engine specifications are same in both products. Specifications and safety system are same.

Interior Updated Features in new Models: • • Digital TFT LCD screen Bluetooth Connectivity

• • • •

3d Display graphical user interface Ipod Connectivity Usb connectivity GPS tracking System

COROLLA Model
XLi GLi

Price
1,474,000 1,604,000

Corolla Ecotec Xli and GLI:
Engine capacity 1.3L

Corolla ecotec is the first Toyota Corolla which has factory fitted CNG system with Safety and Performance as per Toyota standards in 1.3 L grades. The vehicle has been specifically designed and approved by Toyota Motor Corporation for Pakistan. The development of this variant was in response to high consumer demand for factory fitted CNG in Toyota Corolla. "Corolla ecotec" features a 2 Year or 50,000km warranty with Toyota standards. It is also features driving comfort as rear coil springs are reinforced to handle the additional CNG load.

Advanced Technology:
"Corolla ecotec" is 16 Bit ECU based technology with i-spark advancer which monitors VVT-I engine for better performance. This variant contains a Bi-fuel system which gives the driver the option of driving on either petrol or gas. Safety First:
• • Gas Inlet located near fuel inlet with especially designed rubber shield to protect fuel or other liquid from entering luggage compartment. Gas Tank protector for effective use of space, good appearance and safety.

• • •

Gas Tank with built in support to avoid gas tank shaking and leakage. Automatic Solenoid Valve to prevent gas leakage in high pressure tube. Refill Valve to avoid flow back of gas for safety.

Intelligent Performance: • • • • Sequential Injection System to Control CNG injection by ECU to provide optimum vehicle performance. Engine Cylinder Head designed by Toyota especially for CNG to improve durability. Gas Tank 60 Liters made from Chromium Molybdenum Steel and is capable of receiving high pressure. High Pressure Tube COROLLA Model
XLi ECOTEC GLi ECOTEC

Price
1,599,000 1,729,000

Corolla Altis:
The New Corolla Altis features the latest and most innovative technology which focuses on improving fuel economy and driving efficiency. The New Dual VVT-I Engine has been introduced first time in Pakistan for 12% better fuel efficiency. The new Backlit Optritron Meter creates an elegant appearance and enhanced visibility. The Manual Transmission Corolla Altis feature 6 Speed Gear Shift which creates a dynamic driving experience and balanced performance. The Automatic Transmission Corolla Altis consists of the Eco-Meter which monitors driving style to improve fuel efficiency.

New Features Added:

• • • • • • • •

Digital TFT LCD screen Bluetooth Connectivity 3d Display graphical user interface Ipod Connectivity Usb connectivity GPS tracking System Dual vvt-i ZR engine Full Navigation System

COROLLA Altis Model
1.6 Corolla GLi A/T 1.6 Corolla Altis M/T 1.6 Corolla Altis M/T SR 1.6 Corolla Altis A/T 1.6 Corolla Altis A/T SR Toyota Corolla - 2.0D Toyota Corolla - 2.0D SN Toyota Corolla - 2.0D SN SR

Price
1,769,000 1,839,000 1,929,000 1,929,000 2,019,000 1,604,000 1,809,000 1,914,000

Advanced Technology:
Because of dual VVT-I technology it gives • • • Higher performance and low fuel consumption Low friction Comfort and balance on high dimension

Promotion Mix :
• • • • Personal selling Sales promotion Publicity events Advertising

Product Specifications
Toyota corolla products specifications are

XLI and GLI specifications:
Both of these products have same engine capacity 1.3L. But XLI Differs from GLI on the basis of • • • • • Central Locking Power windows ABS brake system (Anti lock breaking system) Speaker system Electronic break force.

Few Corolla Altis specifications:
Model GLI/AT ALTIS/MT Altis crulsetonic 1.6L 1 4 speed 1 Altis/MT sunroof 1.6L 1 6 speed 1 Altis crulsetonic sunroof 1.6L 1 4 speed 1

Engine capacity Fuel Cut system Transmissio n Air Bag

1.6L 0 4 speed 0

1.6L 1 6 speed 1

Factors of Strong Growth Period
In 2007 toyota makes the best market presence in china. They sold about 499000 vehicles in that year more then every other automobile company in the world. This was a strong growth period for the Toyota. In 2010, Toyota employed 317,734 people worldwide, and was the world's largest automobile in 2010 by production. In 2010, the Toyota ranked first in units produced globally, with 8.6 million units. U.S. sales went from 1.6 million in 2000 to 2.6 million in 2007 and that this involved, as already noted, an expanded product line, new electronics, and greater use of common parts. The increased use of common parts arose from the stepped up pressure to cut costs. All this put enormous stress on existing development systems and supplier networks. It is a testimony to the strength of the Toyota production system (for example team-based design) that more problems did not occur earlier.

Strengths:
1. Toyota has become the generic name in the market. Whenever the company launches the new car in the market it has always the great support of the already market orientation so the car introduced by it easily covers the introduction stage. People have a lot of trust for their name and this is why Toyota is the leader in automobile industry. 2. Toyota has a great strength for its 2.OD car, Toyota is the hot selling diesel engine car in Pakistan and is the only company offering the diesel engine in this category of cars. 3. The important edge over the company editors are the ample availability of the spare parts in the markets. The price of spare parts is comparatively low and availability all over the country has proved to be beneficial for the company. 4. Toyota is a financially strong company. This can be seen by analysis of the financial reports of the previous years.

5. Toyota vehicles have got a much stronger resale value than other. This is why people prefer to buy a Toyota. 6. Toyota vehicles are made according to the environment of the region where they want to sale out their product. No doubt the other cars are available but Toyota has an edge because it has learnt. 7. Toyota has an edge over others because it is the only automobile company in Pakistan, while offers many variants of its vehicles. Also Toyota offered many variants of colors. 8. Toyota is proud to have a successful team of competent managers and skilledworkers. Extensive training has enabled the employees to performout standingly. 9. Toyota is the only company having the most sophisticated network of dealerships where customers are treated by professional dealers. There are seventeen dealers in Pakistan where sales, service and spare parts are offered, leading to convenience for the customers. So these are the factors which are makes them successful in the markets of world. Because of their strategies they are getting high value of the customers.

Factors of Decline
Toyota's quality reputation had already shown signs of fraying before the recent recalls. In a startling announcement, Consumer Reports (CR) reported in its April 2008 issue that three of their models were being dropped from its 2008 recommended list. Whereas 100% of Honda's tested vehicles made CR's recommended list, Toyota's recommended percentage fell to 73%, down from 85% the previous year. U.S. sales of Toyota vehicles declined nearly 9 percent in February 2010, the first full month since the Japanese automaker suspended sales and recalled 8.5 million cars for accelerator problems. Although the concerns about the safety of Toyota's vehicles are likely to benefit Toyota's rivals, analysts say when the dust finally settles, Toyota, the world's largest automaker is likely to remain just that. Despite one of the largest auto recalls in history, several congressional hearings, and more than 50 accidental deaths linked to sudden acceleration.

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