Toyota

Strategy

Toyota Kijang

• “Kijang” – an Indonesian word for DEER or MUNTAC

• Minibus manufactured by Toyota Astra Motors

• Innova or Tamaraw in the Philippines

• Produced since 1977 up to present• There are already six generations of

Toyota Kijang• High seating capacity, high ground

clearance, rugged suspension, and ideal for poor roads and extended families

Toyota in ASEAN

STRATEGYFoundation: Preparing the automobile industry

infrastructure and finding/growing suppliersReasons:• Large families• Business and family transport• Unpaved roadsGoal: Produce items locally

Toyota Tamaraw Philippines (1976)

Toyota Kijang Indonesia (1977)

Growth of Toyota in ASEAN

• ASEAN Free Trade AgreementCountry based to regional productionTariff exemptions Mass Production

Development of Toyota

• IMV projectCost-reductionQuality exportsCut in Japanese car parts importsSupport of government and local communities

Tactic: ASEAN Approaches• LOCALIZATION

“...thorough localization is necessary to making further progress in intra- and extraregional exports. We therefore are maximizing local R&D functions, and seek to achieve local/regional procurement rates of 100% at the earliest possible stage”

Strategy

Tactic: ASEAN Approaches• IMV PROJECT

“...we will follow the IMV project by strengthening our production and supply bases for compact vehicles in Asia, move toward thorough localized procurement, and ensure and enhance our cost competitiveness”

Tactic: ASEAN Approaches• DEFINING “ASIA”

“...does not include China, India, Pakistan, Bangladesh, and Japan...expected to recover from the impact of the Thailand floods, with demand rising above that of 2011

Strategy

Value: PERCEPTION• Three Ovals logo

“...three ellipses symbolizing the heart of the customer; the product and the great advancements in the technology the company has made...”

• “...red and white, both speaking of their own beauty. The ellipses are made in either red with a white background or seen as metallic; sequentially giving the Toyota logo a sleek and an elegant look...”