TOYOTA AVANZAMARKETING PLAN AND PRODUCT DEVELOPMENT

SPAIN GROUP Ogy Bungzio Juris Eko Amy - Ivan

Product Profile

Mini MPV produced and designed in Indonesia It was launched in 2003 and sold over 100,000 units that year Today, Toyota Avanza is still the best selling car in Indonesia

5Cs Marketing Analysis1. Customer Analysis o Customer needs : Good performance, Comfort compared to sedan, Higher flexibility in space, More suitable for most road conditions in Indonesia. 2. Company Analysis o Strength : Toyota brand image (well known for its quality and durability), Vast network of sales dealers and after-sales services in Indonesia, Advanced manufacturing facilities in Indonesia, The Toyota Way. o Weakness : Inexperienced to enter low 4x2 market

5Cs Marketing Analysis3. Competitor Analysis o Low MPV model : Carry (the incumbent market leader), Zebra and T-120. o City Car model : Karimun, Visto, Atoz. 4. Collaborator Analysis o Direct : local supplier, dealers, Toyota Motor Corp (Japan) o Indirect : customers 5. Context Analysis o Economic environment : Demand growth for low 4x2 segment after economic crisis

S-T-P-D ImplementationSegmentation Demographic : young family, middle income, higher education degree. Psychographic: active person who enjoy lifestyle and individual activities Purchase purpose : for basic transportation usage Preference : economical, road performance, socially oriented, luxury. Targetting Young family who just started their career or business. Experienced employee or businessman with lower education Young students from wealthier family. Positioning & Differentiation Superior brand image Product design : advanced & modern styling, fun to drive & ride, economical, multipurpose car and minivan body concept

Marketing MixProduct Avanza 1.3 DLX and 1.3 GL Place 5 main dealers operating 142 sales outlets and 101 after sales outlets Price Between IDR 70 110 million (approx. US$ 7,700 12,200) Promotion Using media advertising to build awareness Price oriented program and reward Direct marketing Build community between users

Operation Strategy

Product Development Process Marketing : Identify customer needs and competitive products R&D : Develop product concept and build experimental prototypes Manufacturing : Estimate manufacturing cost Marketing : Develop plan for product option and set sales price point R&D : Generate alternatives product architectures Mnfg. : Identify main supplier and set target costs Marketing : Develop marketing plan R&D : Provide detail design (material, geometry, tolerances) Mnfg. : Define production and quality assurances process

Marketing : Develop promotion and launch materials

R&D : Product testing (reliability, life & performance) and design changes 4th STAGE Mnfg. : Refine production & QA process, train workforces

PRODUCT CONCEPTCustomer Requirement Capacity Road Performance Comfortability Product Concept and Design Compact size for 7 adults comfortably Unitary Frame Chassis for maximum strength Superb engine performance (acceleration) Suitable ground clearance still confidence in bad road & flood Air conditioner (single & blower) Mc Pherson Strut for front suspension and 5 Link with Coil Spring for rear suspension to get better comfortability and stability Long wheel base good maneuverability The best fuel economy in its segment (CEMS feature) Affordable price at IDR 75 95 millions Advanced, modern, and stylish interior and exterior design Complete safety features (superb breaking, side impact beam, child lock protector, collapsible steering wheel, etc)

Economic Style Safety