PROJECT REPORT

ON

TOYOTA KIRLOSKAR MOTOR LIMITED

For the partial fulfilment of 3 year full time course

BACHELOR OF BUSINESS ADMINISTRATION

2010-2011

Submitted to--- Submitted by---

DAV COLLEGE,CHANDIGARH PANCHAM GAUR

ROLL NO.6747

PUPIN NO.-17508000768

PREFACE

As a part of course curriculum of Bachelor of business administration we were asked to

prepare a project report on a company and its marketing strategies.

I have put my sincere efforts to accomplish my objectives within the stipulated time. Despite

all limitations, obstructs, hurdles and hindrances, I have toiled and worked to my optimum

potential to achieve desired goals. Being neophytes in the highly competitive world of

business. I came across some difficulties to make my objective a reality. Anyhow with the

kind of help and genuine interest and the guidance of my supervisor. I am presenting this

hand carved effort. I tried my level best to conduct a research to gain a thorough knowledge

about the project on topic, “Study of marketing strategies of Toyota”. I put the best of my

efforts and have also tried to be justice with available. If anywhere something is found

unacceptable or unnecessary to the theme; you are welcomed with your valuable suggestions.

Thanks and regards

Yours sincerely

Pancham Gaur

ACKNOWLEDGEMENT

I would like to thank Toyota Motors Corporation, for constant guidance to

conduct the present arduous project and untiring cooperation which they

extended to me throughout the duration of my summer training.

Getting a project ready requires the work and effort of many people. I would

like all those who have contributed in completing this project. First of all, I

would like to send my sincere thanks to MR. MANISH GARG for his helpful

hand in the completion of my project.

I would like to take an opportunity to thank all the people especially my

TEACHERS AND PARENTS who helped me in collecting necessary

information and making of the report. I am grateful to all of them for their time,

energy and wisdom.

(PANCHAM GAUR)

CONTENTS

Chapter 1 – Conceptual Discussion (Theoretical 5

Backdrop & Literature Review) -

Chapter 2 – Introduction

13

1.1. Overview of Industry as a whole

1.2. Profile of the Organization

1.3. Growth of the Organization

1.4. S.W.O.T Analysis of the Organization

1.5. Competition Information

Chapter 3 - Objective & Methodology

51

2.1. Significance

2.2. Managerial usefulness of the study

2.3. Objectives

2.4. Scope of the study

2.5. Methodology

Chapter 4 - Data Analysis 57

Chapter 5 - Findings and Recommendations 68

ANNEXURES: Include the following details in this section 70

BIBLIOGRAPHY 73

CHAPTER 1 – CONCEPTUAL DISCUSSION

MARKETING

What is marketing?

There are many different definitions of marketing. Consider some of the following alternative

definitions:

“The all-embracing function that links the business with customer needs and wants in order to

get the right product to the right place at the right time”

“The achievement of corporate goals through meeting and exceeding customer needs better

than the competition”

“The management process that identifies, anticipates and supplies customer requirements

efficiently and profitably”

“Marketing may be defined as a set of human activities directed at facilitating and

consummating exchanges”

Which definition is right? In short, they all are. They all try to embody the essence of

marketing:

• Marketing is about meeting the needs and wants of customers;

• Marketing is a business-wide function – it is not something that operates alone from other

business activities;

• Marketing is about understanding customers and finding ways to provide products or

services which customers demand

To help put things into context, you may find it helpful to often refer to the following

diagram which summarises the key elements of marketing and their relationships:

Figure 1.2

MARKETING CONCEPT AND ORIENTATION

It is a fundamental idea of marketing that organisations survive and prosper through meeting

the needs and wants of customers. This important perspective is commonly known as the

marketing concept.

The marketing concept is about matching a company's capabilities with customer wants. This

matching process takes place in what is called the marketing environment.

Businesses do not undertake marketing activities alone. They face threats from competitors,

and changes in the political, economic, social and technological environment. All these

factors have to be taken into account as a business tries to match its capabilities with the

needs and wants of its target customers.

An organisation that adopts the marketing concept accepts the needs of potential customers as

the basis for its operations. Success is dependent on satisfying customer needs.

What are customer needs and wants?

A need is a basic requirement that an individual wishes to satisfy.

People have basic needs for food, shelter, affection, esteem and self-development. Many of

these needs are created from human biology and the nature of social relationships. Customer

needs are, therefore, very broad.

Whilst customer needs are broad, customer wants are usually quite narrow.

A want is a desire for a specific product or service to satisfy the underlying need.

Consider this example:

Consumers need to eat when they are hungry.

What they want to eat and in what kind of environment will vary enormously. For some,

eating at McDonalds satisfies the need to meet hunger. For others a microwaved ready-meal

meets the need. Some consumers are never satisfied unless their food comes served with a

bottle of fine Chardonnay.

Consumer wants are shaped by social and cultural forces, the media and marketing activities

of businesses.

This leads onto another important concept - that of customer demand:

Consumer demand is a want for a specific product supported by an ability and willingness to

pay for it.

For example, many consumers around the globe want a Mercedes. But relatively few are able

and willing to buy one.

Businesses therefore have not only to make products that consumers want, but they also have

to make them affordable to a sufficient number to create profitable demand.

Businesses do not create customer needs or the social status in which customer needs are

influenced. It is not McDonalds that makes people hungry. However, businesses do try to

influence demand by designing products and services that are

• Attractive

• Work well

• Are affordable

• Are available

Businesses also try to communicate the relevant features of their products through advertising

and other marketing promotion.

MARKETING MIX

The marketing mix is generally accepted as the use and specification of the four Ps describing

the strategic position of a product in the marketplace. One version of the origins of the

marketing mix starts in 1948 when James Culliton said that a marketing decision should be a

result of something similar to a recipe. This version continued in 1953 when Neil Borden, in

his American Marketing Association presidential address, took the recipe idea one step

further and coined the term 'Marketing-Mix'. A prominent marketer, E. Jerome McCarthy,

proposed a 4 P classification in 1960, which would see wide popularity. The four Ps concept

is explained in most marketing textbooks and classes.

DEFINITION

Although some marketers[who?] have added other Ps, such as personnel and packaging, the

fundamentals of marketing typically identifies the four Ps of the marketing mix as referring

to:

Product -An object or a service that is mass produced or manufactured on a large scale with a

specific volume of units. A typical example of a mass produced service is the hotel industry.

A less obvious but ubiquitous mass produced service is a computer operating system. Typical

examples of a mass produced objects are the motor car and the disposable razor.

Price – The price is the amount a customer pays for the product. It is determined by a number

of factors including market share, competition, material costs, product identity and the

customer's perceived value of the product. The business may increase or decrease the price of

product if other stores have the same product.

Place – Place represents the location where a product can be purchased. It is often referred to

as the distribution channel. It can include any physical store as well as virtual stores on the

Internet.

Promotion – Promotion represents all of the communications that a marketer may use in the

marketplace. Promotion has four distinct elements - advertising, public relations, word of

mouth and point of sale. A certain amount of crossover occurs when promotion uses the four

principal elements together, which is common in film promotion. Advertising covers any

communication that is paid for, from television and cinema commercials, radio and Internet

adverts through print media and billboards. One of the most notable means of promotion

today is the Promotional Product, as in useful items distributed to targeted audiences with no

obligation attached. This category has grown each year for the past decade while most other

forms have suffered. It is the only form of advertising that targets all five senses and has the

recipient thanking the giver. Public relations are where the communication is not directly paid

for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade

fairs and events. Word of mouth is any apparently informal communication about the product

by ordinary individuals, satisfied customers or people specifically engaged to create word of

mouth momentum. Sales staff often plays an important role in word of mouth and Public

Relations (see Product above).

Broadly defined, optimizing the marketing mix is the primary responsibility of marketing. By

offering the product with the right combination of the four Ps marketers can improve their

results and marketing effectiveness. Making small changes in the marketing mix is typically

considered to be a tactical change. Making large changes in any of the four Ps can be

considered strategic. For example, a large change in the price, say from $19.00 to $39.00

would be considered a strategic change in the position of the product. However a change of

$131 to $130.99 would be considered a tactical change, potentially related to a promotional

offer.

CRITICISMS

Peter Doyle claims that the marketing mix approach leads to unprofitable decisions because it

is not grounded in financial objectives such as increasing shareholder value. According to

Doyle it has never been clear what criteria to use in determining an optimum marketing mix.

Objectives such as providing solutions for customers at low cost have not generated adequate

profit margins. Doyle claims that developing marketing based objectives while ignoring

profitability has resulted in the dot-com crash and the Japanese economic collapse. He also

claims that pursuing a ROI approach while ignoring marketing objectives is just as

problematic. He argues that a net present value approach maximizing shareholder value

provides a "rational framework" for managing the marketing mix.

Some people claim the four Ps are too strongly oriented towards consumer markets and do

not offer an appropriate model for industrial product marketing. Others claim it has too strong

of a product market perspective and is not appropriate for the marketing of services.

An expanded system based on Seven Ps stresses the importance of Place, Product, Price,

Promotion, People, Process, and Physical evidence

MARKET RESEARCH

Market research is for discovering what people want, need, or believe. It can also involve

discovering how they act. Once that research is complete it can be used to determine how to

market your specific product. MR-Anywhere is a very good platform for market research and

analysis

For starting up a business there are a few things that are important:

Market information

Market information is making known the prices of the different commodities in the market,

the supply and the demand. Information about the markets can be obtained in several

different varieties and formats.

Examples of market information questions are:

Who are the customers?

Where are they located and how can they be contacted?

What quantity and quality do they want?

When is the best time to sell?

Market segmentation

Market segmentation is the division of the market or population into subgroups with similar

motivations. Widely used bases for segmenting include geographic differences, personality

differences, demographic differences, use of product differences, and psychographic

differences.

Market trends

The upward or downward movements of a market, during a period of time. The market size is

more difficult to estimate if you are starting with something completely new. In this case, you

will have to derive the figures from the number of potential customers or customer segments.

[Ilar 1998]

But besides information about the target market you also need information about your

competitor, your customers, products etc. A few techniques are:

Customer analysis

Choice Modelling

Competitor analysis

Risk analysis

Product research

Advertising research

CHAPTER 2 - INTRODUCTION

2.1. OVERVIEW - INDIAN AUTOMOBILE INDUSTRY

Over a period of more than two decades the Indian Automobile industry has been

driving its own growth through phases. The entry of Suzuki Corporation in Indian

passenger car manufacturing is often pointed as the first sign of India turning to a market

economy. Since then the automobile sector witnessed rapid growth year after year. By

late-90's the industry reached self reliance in engine and component manufacturing from

the status of large scale importer.

With comparatively higher rate of economic growth rate index against that of great

global powers, India has become a hub of domestic and exports business. The

automobile sector has been contributing its share to the shining economic performance

of India in the recent years.

With the Indian middle class earning higher per capita income, more people are ready to

own private vehicles including cars and two-wheelers. Product movements and manned

services have boosted in the sales of medium and sized commercial vehicles for passenger

and goods transport. Side by side with fresh vehicle sales growth, the automotive

components sector has witnessed big growth. The domestic auto components consumption

has crossed rupees 9000 crores and an export of one half size of this figure

Overview Of Automobile Industry

The Indian automobile industry is going through a technological change where each firm

is engaged in changing its processes and technologies to sustain the competitive

advantage and provide customers with the optimized products and services. Starting from

the two wheelers, trucks, and tractors to the multi utility vehicles, commercial vehicles

and the luxury vehicles, the Indian automobile industry has achieved tremendous amount

of success in the recent years.

As per Society of Indian Automobile Manufacturers (SIAM) the market share of each

segment of the industry is as follows:.

The market shares of the segments of the automobile industry

The automobile industry had a growth of 15.4 % during April-January 2007, with the average

annual growth of 10-15% over the last decade or so. With the incremental investment of $35-

40 billion, the growth is expected to double in the next 10 years.

Consistent growth and dedication have made the Indian automobile industry the second-

largest tractor and two-wheeler manufacturer in the world. It is also the fifth-largest

commercial vehicle manufacturer in the world. The Indian automobile market is among the

largest in Asia.

The key players like Hindustan Motors, Maruti Udyog, Fiat India Private Ltd, Tata Motors,

Bajaj Motors, Hero Motors, Ashok Leyland, Mahindra & Mahindra have been dominating

the vehicle industry. A few of the foreign players like Toyota Kirloskar Motor Ltd., Skoda

India Private Ltd., Honda Siel Cars India Ltd. have also entered the market and have catered

to the customers’ needs to a large extent.

Not only the Indian companies but also the international car manufacturing companies are

focusing on compact cars to be delivered in the Indian market at a much smaller price.

Moreover, the automobile companies are coming up with financial schemes such as easy EMI

repayment systems to boost sales.

There have been exhibitions like Auto-expo at Pragati Maidan, New Delhi to share the

technological advancements. Besides, there are many new projects coming up in the

automobile industry leading to the growth of the sector.

The Government of India has liberalized the foreign exchange and equity regulations and has

also reduced the tariff on imports, contributing significantly to the growth of the sector.

Having firmly established its presence in the domestic markets, the Indian automobile sector

is now penetrating the international arena. Vehicle exports from India are at their highest

levels. The leaders of the Indian automobile sector, such as Tata Motors, Maruti and

Mahindra and Mahindra are leading the exports to Europe, Middle East and African and

Asian markets.

The Ministry of Heavy Industries has released the Automotive Plan 2006-2016, with the

motive of making India the most popular manufacturing hub for automobiles and its

components in Asia. The plan focuses on the removal of all the bottlenecks that are inhibiting

its growth in the domestic as well as international arena.

Top Ten Players in Indian Automobile Sector

The domestic players as well as the foreign players dominate the Indian automobile sector.

The key players contributing to the growth of the sector are discussed below.

Top Ten Players in Indian Automobile Sector

Maruti Suzuki India

Hero Motors Limited

Tata Group

Bajaj Auto Limited

Mahindra Group

Ashok Leyland

Yamaha Motor India

Hyundai Motors India Limited

Toyota Kirloskar Motor Private Limited

Honda Siel Cars India Limited

1.2. COMPANY PROFILE

The story of Toyota Motor Corporation began in September 1933 when Toyota

Automatic Loom created a new division devoted to the production of automobiles under

the direction of the founder's son, Kiichiro Toyota. 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

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 Toyota dealer chain was established. 

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

HEADQUARTERS: TOYOTA CITY, JAPAN

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.

Toyota Car Model:

Innova

Camry

Avalon

Matrix

Corolla

Prius    

TRUCKS:

Tacoma

Tundra 

SPORTS UTILITY VEHICLES( SUVs):

4runner

Land cruiser

OVERVIEW

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 2007 Toyota introduced 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.

CORPORATE DATA

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.

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,

Company Name Toyota Motor Corporation

Established August 28, 1937

Tokyo Head Office1-4-18 Koraku, Bunkyo-ku, Tokyo 112-8701, Japan

Phone: (03)3817-7111

Nagoya Office 4-7-1 Meieki, Nakamura-ku, Nagoya City, Aichi Prefecture 450-

8711, Japan

Phone: (052)552-2111

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

Japan

Phone : (03)3817-7111

while keeping ourselves open to new partnerships.

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

MANAGERIAL INFORMATION

1. Executives

1) Board of Directors (26 people)

Name Title

Fujio Cho* Chairman

Katsuhiro Nakagawa Vice Chairman

Katsuaki Watanabe President

Tokuichi Uranishi Executive Vice President

Kazuo Okamoto Executive Vice President

Kyoji Sasazu Executive Vice President

Mitsuo Kinoshita Executive Vice President

Yoshimi Inaba Executive Vice President

Takeshi Uchiyamada Executive Vice President

Masatami Takimoto Executive Vice President

Akio Toyoda Executive Vice President

Tetsuo Hattori Senior Managing Director

Yukitoshi Funo Senior Managing Director

Takeshi Suzuki Senior Managing Director

Atsushi Niimi Senior Managing Director

Hajime Wakayama Senior Managing Director

Hiroshi Takada Senior Managing Director

Teiji Tachibana Senior Managing Director

Shinichi Sasaki Senior Managing Director

Shin Kanada Senior Managing Director

Akira Okabe Senior Managing Director

Yoshio Shirai Senior Managing Director

Yoichiro Ichimaru Senior Managing Director

Shoji Ikawa Senior Managing Director

Shoichiro Toyoda Honorary Chairman

Hiroshi Okuda**Senior Advisor, Member of the Board

*Promoted, **Changed

2) Corporate Auditors (7 people)

Name Title

Hideaki Miyahara Corporate Auditor

Chiaki Yamaguchi Corporate Auditor

Masaki Nakatsugawa* Corporate Auditor

Yasutaka Okamura Corporate Auditor (external)

Yoichi Kaya Corporate Auditor (external)

Yoichi Morishita* Corporate Auditor (external)

Akishige Okada* Corporate Auditor (external)

*Newly appointed

3) Managing Officers (49 people)

Name Title

Koichi Ina Managing Officer

Yoshikazu Amano Managing Officer

Takeshi Yoshida Managing Officer

Shinzo Kobuki Managing Officer

Akira Sasaki Managing Officer

Hiroshi Kawakami Managing Officer

Iwao Nihashi Managing Officer

Tadashi Arashima Managing Officer

Masamoto Maekawa Managing Officer

Mamoru Furuhashi Managing Officer

Satoshi Ozawa Managing Officer

Seiichi Sudo Managing Officer

Yasuhiko Ichihashi Managing Officer

Tadashi Yamashina Managing Officer

Takashi Hata Managing Officer

James E. Press Managing Officer

Gary L. Convis Managing Officer

Wahei Hirai Managing Officer

Tatehito Ueda Managing Officer

Takashi Shigematsu Managing Officer

Yuzo Ushiyama Managing Officer

Yasumori Ihara Managing Officer

Takahiko Ijichi Managing Officer

Toshio Furutani Managing Officer

Tetsuo Agata Managing Officer

Senta Morioka Managing Officer

Hironobu Inoue Managing Officer

Kazuhiko Takarada Managing Officer

Masayuki Nakai Managing Officer

Toshiki Hayama Managing Officer

Takahiro Iwase Managing Officer

Akihito Tsuji Managing Officer

Yoshihiko Masuda Managing Officer

Nobuo Kobayashi Managing Officer

Yoshimasa Ishii Managing Officer

Tatsuya Kaneko Managing Officer

Takeshi Shirane Managing Officer

Masanao Tomozoe Managing Officer

Katsunori Itasaka Managing Officer

Tokuyuki Takahashi Managing Officer

Real (Ray) Tanguay Managing Officer

Ryoichi Sasaki* Managing Officer

Seiho Kawakami* Managing Officer

Yasuhiro Yokoi* Managing Officer

Takahiro Fujioka* Managing Officer

Masanobu Kawase* Managing Officer

Yukio Nishikawa* Managing Officer

Hirofumi Muta* Managing Officer

Thierry Dombreval* Managing Officer

*Newly appointed

As a result of the above changes, TMC now has, 1 chairman, 1 vice chairman, 1 president, 8 executive vice presidents, 13 senior managing directors, 1 honorary chairman, 1 senior advisor, member of the board, 7 auditors and 49 managing officers, for a total of 82 executives.

2. Retiring Corporate Auditors and Managing Officers (10 people)

Yoshiro Hayashi (Appointed as Advisor)

Hiroshi Okabe (Appointed as Advisor)

Tadashi Ishikawa (Appointed as Advisor)

Hitoshi Nishiyama (Appointed as Advisor)

Alan J. Jones –

Yoshikatsu Tanaka (Appointed as Advisor)

Nobuyoshi Hisada (Appointed as Advisor)

Mitsuhisa Kato (Appointed as Advisor)

John H. Conomos –

Takis J. Athanasopoulos –

3. Executives' Areas of Responsibility and Titles

1) Executive Vice Presidents and Senior Managing Directors

Name New Former

TokuichiUranishi

Executive Vice President

-Global Planning Operations-Overseas(Americas, Europe & Africa, Asia, Oceania & Middle East)

-The Americas Operations Group(Chief Officer)

-Europe & Africa Operations Group(Chief Officer)

Executive Vice President

-Overseas(Overseas Planning Americas, Europe & Africa, Asia, Oceania & Middle East)

-Europe & Africa Operations Group(Chief Officer)

KazuoOkamoto

Executive Vice President

-Research & Development(R & D Management, Technical Administration, Design, Product Development, Vehicle Engineering, Motor Sports)

-Technical Administration Group (Chief Officer)

-Design Group (Chief Officer)-Motorsport Business Management Dept.

-Motor Sports Div.

Executive Vice President

-Research & Development(R & D Management, Technical Administration, Design, Product Development, Vehicle Engineering, Motor Sports)

-Design Group (Chief Officer)

KyojiSasazu

Executive Vice President

-Global Planning Operations-Japan Sales Operations

Executive Vice President

-Domestic Sales Operations

MitsuoKinoshita

Executive Vice President

-Corporate Planning-General Administration & Human

Executive Vice President

-Corporate Planning-General Administration & Human

Resources-Accounting-Information Systems-Business Development-Government & Public Affairs-Housing-General Administration & Human Resources Group (Chief Officer)

-Global Audit Div.-Corporate Planning Div.

Resources-Finance & Accounting-Information Systems-Business Development-Government & Public Affairs-Housing-Global Audit Div.-Corporate Planning Div.-Research Div.

YoshimiInaba

Executive Vice President

-Overseas (China)-Customer Service-China Operations Group (Chief Officer)

Executive Vice President

-Overseas (China)-Customer Service-China Operations Group (Chief Officer)

-China Office

TakeshiUchiyamada

Executive Vice President

-Production-TQM-Environmental Affairs

Executive Vice President

-Production-TQM-Environmental Affairs

MasatamiTakimoto

Executive Vice President

-Quality-Research & Development(Power Train, Future Project)

-Fuel Cell System Development-Power Train Development Group(Chief Officer)

-Fuel Cell System Development Group(Chief Officer)

-Future Project Div.

Executive Vice President

-Quality Control-Research & Development(Power Train, Future Project)

-Fuel Cell System Development-Power Train Development Group(Chief Officer)

-Fuel Cell System Development Group(Chief Officer)

AkioToyoda

Executive Vice President

-Product Management-IT & ITS-Purchasing-Quality-IT & ITS Group (Chief Officer)-e-TOYOTA Div.

Executive Vice President

-Product Management-IT & ITS-Purchasing-IT & ITS Group (Chief Officer)-e-TOYOTA Div.

TetsuoHattori

Senior Managing Director

-Vehicle Engineering Group (Chief Officer)

-Environmental Affairs Div.

Senior Managing Director

-Quality Group (Chief Officer)-Vehicle Engineering Group (Chief Officer)

-Future Project Div.-Motor Sports Div.

YukitoshiFuno

Senior Managing Director

-Toyota Motor North America, Inc.-Toyota Motor Sales, U.S.A., Inc.

Senior Managing Director

-The Americas Operations Group(Chief Officer)

-Toyota Motor Sales, U.S.A., Inc.

TakeshiSuzuki

Senior Managing Director

-Business Development Group (Chief Officer)

-Accounting Group (Chief Officer)

Senior Managing Director

-Finance & Accounting Group (Chief Officer)

-Information Systems Group (Chief Officer)

AtsushiNiimi

Senior Managing Director

-Strategic Production Planning Group(Chief Officer)

-Manufacturing Group (Chief Officer)

-TQM Promotion Div.

Senior Managing Director

-Production Control & Logistics Group(Chief Officer)

-Manufacturing Group (Chief Officer)

-TQM Promotion Div.

HajimeWakayama

Senior Managing Director

-Purchasing Group (Chief Officer)

Senior Managing Director

-Business Development Group (Chief Officer)

-Purchasing Group (Chief Officer)

HiroshiTakada

Senior Managing Director

-Global Planning Operations Group(Chief Officer)

-Product Management Div.

Senior Managing Director

-Overseas Planning Operations Group(Chief Officer)

-Product Management Div.

TeijiTachibana

Senior Managing Director

-Government & Public Affairs Group(Chief Officer)

-Housing Group (Chief Officer)-Legal Div.

Senior Managing Director

-General Administration & Human Resources Group (Chief Officer)

-Housing Group (Chief Officer)

ShinichiSasaki

Senior Managing Director

-Quality Group (Chief Officer)

Senior Managing Director

-Toyota Motor Europe NV/SA-Toyota Motor Engineering & Manufacturing Europe NV/SA

ShinKanada

Senior Managing Director

-Information Systems Group (Chief Officer)

-Research Div.-Global External Affairs Div.

Senior Managing Director

-Government & Public Affairs Group(Chief Officer)

AkiraOkabe

Senior Managing Director

-Asia, Oceania & Middle East Operations Group(Chief Officer)

Senior Managing Director

-Asia, Oceania & Middle East Operations Group (Chief Officer)

-Taiwan Office

YoshioShirai

Senior Managing Director

-Product Development Group (Chief Officer)

-R&D Management Div.-TOYOTA Development Center 2(General Manager)

Senior Managing Director

-Technical Administration Group-Product Development Group-Environmental Affairs Div.-R&D Management Div.

YoichiroIchimaru

Senior Managing Director

-Japan Sales Operations Group(Chief Officer)

-Customer Service Operations Group(Chief Officer)

Senior Managing Director

-Domestic Sales Operations Group(Chief Officer)

-Customer Service Operations Group(Chief Officer)

ShojiIkawa

Senior Managing Director

-Production Engineering Group(Chief Officer)

Senior Managing Director

-Production Engineering Group(Chief Officer)

2) Managing Officers (Only those with new responsibilities or those newly appointed listed)

Name New Former

KoichiIna

-Miyoshi Plant (General Manager)-Myochi Plant (General Manager)-Operations Management Consulting Div.

-Global Strategic Production Planning Div.

-Production Control Div.-Project Planning & Management

-Takaoka Plant (General Manager)-Tsutsumi Plant (General Manager)

-Vehicle Planning & Production Engineering Div.

-Stamping Production Engineering Div.

-Body Assembly Engineering Div.

Div.-Global Production Center (General Manager)

-General Assembly Engineering Div.

AkiraSasaki

-China Div.-Toyota Technical Center, China

-Toyota Technical Center, China

IwaoNihashi

-TQM Promotion Div.-Technical Service Div.-Customer Relations Div.-Quality Div.-Customer Quality Engineering Div.

-Fuel Cell Production Engineering Div.

-Customer Relations Div.-Quality Div.-Customer Quality Engineering Div.

-Fuel Cell Production Engineering Div.

TadashiArashima

-Toyota Motor Europe NV/SA-Toyota Motor Europe NV/SA (TMME Company)

-Toyota Motor Europe NV/SA

MasamotoMaekawa

-Japan Sales Planning Div.-Japan Marketing Div.-Toyopet channel Operations Div.

-Domestic Sales Planning Div.-Domestic Marketing Div.-Toyopet channel Operations Div.

SatoshiOzawa

-Secretarial Div.-General Administration Div.-Human Resources Div.-Labor Relations Div.-Toyota Institute-Nagoya General Administration Div.

-Toyota Technical Skills Academy-Medical Support Div.

-Corporate Planning Div.-Research Div.-Product Management Div.

SeiichiSudo

-Toyota Motor Engineering & Manufacturing North America, Inc**

-Toyota Motor Manufacturing North America, Inc.

YasuhikoIchihashi

-Toyota Motor Engineering & Manufacturing North America, Inc**

-Toyota Technical Center, U.S.A., Inc.

TadashiYamashina

-Motorsport Business Management Dept

-Engineering Data Control & Management Div.

-Motor Sports Div.-Technical Administration Div.

-Technical Administration Div.-TOYOTA Development Center 1(General Manager and Executive Chief Engineer)

-Engineering Data Control & Management Div.

TakashiHata

-Corporate Planning Div.-Research Div.

-Affiliated Companies Finance Division

-Product Management Div.-LEXUS Product & Marketing Planning Div.

-Accounting Division-Finance Division

JamesE. Press

-Toyota Motor North America, Inc. -Toyota Motor Sales, U.S.A., Inc-Toyota Motor North America, Inc.

GaryL. Convis

-Toyota Motor Engineering & Manufacturing North America, Inc**

-Toyota Motor Manufacturing North America, Inc.

TatehitoUeda

-Future Project Div.-Intellectual Property Div.-Higashifuji Technical Administration Div.

-Power Train Engineering Div. 2-Power Train Management Engineering Div.

-Environmental Affairs Div.-Future Project Div.-Intellectual Property Div.-Higashifuji Technical Administration Div.

-Power Train Engineering Div. 2-Power Train Management Engineering Div.

YasumoriIhara

-Environmental Affairs Div.-Service Parts Administration Div.-Logistics Planning Div.-Production Parts Logistics Div.-Vehicle Logistics Div.-Service Parts Logistics Div.

-e-TOYOTA Div.-Business Development Div.-Marine Business Div.-Biotechnology & Afforestation Business Div. (General Manager)

-IT & ITS Planning Div.-IT & ITS Sales Div.

TakahikoIjichi

-Affiliated Companies Finance Div.-Accounting Div.-Cost KAIZEN Div.

-Secretarial Division-General Administration Div.-Human Resources Div.-Labor Relations Div.-Toyota Institute-Nagoya General Administration Div.

-Toyota Technical Skills Academy-Medical Support Division

ToshioFurutani

-Motorsport Business Management Dept.

-Global Planning Div.-Global Marketing Div.

-Overseas Planning Div.-Overseas Marketing Div.

TetsuoAgata

-Toyota Motor Europe NV/SA(R&D/Manufacturing Company)

-Honsha Plant (General Manager)-Environmental Affairs Div.-Global Strategic Production Planning Div.

-Production Control Div.-Project Planning & Management Div.

-Service Parts Administration Div.

KazuhikoTakarada

-Motomachi Plant (General Manager)

-Kinuura Plant (General Manager)

-Global Production Center(General Manager)

-Motomachi Plant (General Manager)

MasayukiNakai

-Motorsport Business Management Dept.

-Corporate Citizenship Div.-Global External Affairs Div.-Public Affairs Div.-Government & Industrial Affairs Div.

-Corporate Public Relations Div.

-Environmental Affairs Div.-Corporate Citizenship Div.-Global External Affairs Div.-Public Affairs Div.-Government & Industrial Affairs Div.

-Corporate Public Relations Div.

ToshikiHayama

-Production Engineering Planning Div.

-Production Engineering Development Div.

-Partner Robot Development Div.-Instrumentation Engineering Div.-Production & Logistics Systems Engineering Div.

-Fundamental Production Engineering Div.

-Power Train & Chassis Prototype Production & Engineering Div.

-Engine Production Engineering Div.

-Drive Train Engineering Div.-Chassis Production Engineering Div.

-HV Power Train Production Engineering Div.

-Teiho Plant (General Manager)-Teiho Plant Machinery & Die Engineering Administration Div.

-Mechatronics Systems Div.-Stamping Die & Tool Div.-Die & Mold Div.

-Production Engineering Planning Div.

-Production Engineering Development Div.

-Partner Robot Development Div.-Instrumentation Engineering Div.-Fundamental Production Engineering Div.

-Power Train Prototype Engineering Div.

-Engine Production Engineering Div.

-Drive Train Engineering Div.-Chassis Production Engineering Div.

-HV Power Train Production Engineering Div.

TakahiroIwase

-Kamigo Plant (General Manager)-Shimoyama Plant (General Manager)

-Tahara Plant (General Manager)

-Kamigo Plant (General Manager)-Shimoyama Plant (General Manager)

KatsunoriItasaka

-Dealer Human Resources Development Div.

-Japan Fleet Sales & Conversion Vehicle Div.

-Toyota channel Operations Div.

-Dealer Human Resources Development Div.

-Toyota channel Operations Div.

RealC. Tanguay

-Toyota Motor Engineering & Manufacturing North America, Inc*

-Toyota Motor Manufacturing North America, Inc.

-Toyota Motor Manufacturing Canada, Inc.

RyoichiSasaki*

-Asia, Oceania & Middle East Project Div.

-Toyota Motor Asia Pacific PTE Ltd (Singapore)

-Toyota Motor Asia Pacific Co., Ltd (Thailand)

-Toyota Motor Thailand Co., Ltd

-Toyota Motor Thailand Co., Ltd.

SeihoKawakami*

-TOYOTA Development Center 2(Deputy General Manager)

-General Manager, Chassis Engineering Div. 2

YasuhikoYokoi*

-Used Car Business Div.-LEXUS Domestic Sales & Marketing Div.

-General Manager, LEXUS Domestic Sales & Marketing Div.

TakahiroFujioka*

-Takaoka Plant (General Manager)-Tsutsumi Plant (General Manager)

-Senior Executive Director, Toyota Motor Manufacturing (UK) Ltd.

MasanobuKawase*

-TOYOTA Development Center 1(General Manager)

-Project General Manager, Technical Administration Div.

YukioNishikawa*

-e-TOYOTA Div.-Business Development Div.-Marine Business Div.-Biotechnology & Afforestation Business Div.

-IT & ITS Planning Div.-IT & ITS Sales Div.

-Project General Manager, Tokyo Secretarial Div.

HirofumiMuta*

-Honsha Plant (General Manager)-Vehicle Planning & Production Engineering Div.

-Stamping Production Engineering Div.

-Body Assembly Engineering Div.-General Assembly Engineering Div.

-Hirose Plant (General Manager)-Hirose Plant Electronic Components Engineering Div.

-Hirose Plant Electronic Components Manufacturing Div.

-General Manager, Production Engineering Planning Div.

ThierryDombreval*

-Toyota Motor Europe NV/SA (TMME Company)

-Toyota Motor Europe NV/SA (TMME Company)

* Newly appointed**On April 1, 2006, Toyota Motor Engineering and Manufacturing North America, Inc. was established by integrating the functions of Toyota Technical Center, U.S.A., Inc. and Toyota Motor Manufacturing North America, Inc.

4. Organizational Changes

1) Domestic Sales Operations Group and Overseas Planning Operations Group

 - The Domestic Sales Operations Group and the Overseas Planning Operations Group

have been reorganized.

 - Sales and planning functions, which were divided by region, i.e. domestic and

overseas, have been integrated.

 PurposeAs a global business management function of Toyota's global headquarters, to allow close coordination between TMC and various regions, including Japan, and to implement the "most-suitable growth strategy from a global perspective" though product, price and supply-and-demand strategies

2) Government & Public Affairs Group / General Administration & Human Resources Group

 - The transfer of some divisions/departments of the General Administration & Human Resources Group to the Government & Public Affairs Group, have taken place as follows:

After Changes   Before Changes

Government & Public Affairs Group   General Administration & Human Resources Group

- Public Affairs Administration Dept. (transfer)- Public Affairs Administration Dept.

- Tokyo Secretarial Div. (transfer) - Tokyo Secretarial Div.

- Tokyo General Administration Div. (transfer)- Tokyo General Administration Div.

 PurposeTo optimize the structural organization and distribution of human resources by consolidating the divisions and departments relevant to government & public affairs

3) Production Control & Logistics Group  -  The name of the Production Control & Logistics Group has changed.

After Change   Before ChangeStrategic Production Planning Group(name changed)

Production Control & Logistics Group

 PurposeTo create a name that reflects a strengthened stance toward planning that considers the actual situation of global production activities

4) Housing Group (Housing Company)  -  The name of the Housing Group (Housing Company) has changed.

After Change   Before ChangeHousing Group (name changed) Housing Group (Housing Company)

 PurposeTo reflect the achievement of the original objective to reinforce operational structures through the introduction of the "company" system

5) Divisions/departments not belonging to a group; Asia, Oceania & Middle East Operations Group; China Operations Group  -  The transfer of some divisions/departments to relevant groups.

After Changes   Before ChangesAsia, Oceania & Middle East Operations Group

 Divisions/departments not belonging to a Group

- Taiwan Office (transfer) - Taiwan OfficeChina Operations Group    - China Office (transfer) - China Office

 PurposeTo clarify the chain of command and to optimize the structural organization and distribution of human resources

As a result of the above changes, the number of divisions has increased from 228 to 229.

GROWTH  

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.

 

Survival and growth in our industry will hinge on developing technologies for reducing

environmental impact of our products and operations, as well as improving vehicular safety.

Photos and text on the following pages introduce some of the technologies we are developing

to position Toyota as an environmental leader.

SPRIORITIES OF TOYOTA IN 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.

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 2005. They also plan to invest around Rs 130 crores during the current year to

enhance efficiency. 

PRODUCTS (GLOBAL):

1. AVALON

2. CAMRY

3. CAMRY SALORA

4. COROLLA ALTIS

5. MATRIX

6. PRIUS

7. 4RUNNER

8. HIGH RUNNER

9. LAND CRUISER

10.SEQUOIA

11.SIENNA

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 

CAR MODELS

(INDIA)

EX- SHOWROOM (MUMBAI)

AMOUNT IN INR.

INNOVA 8,01,738

COROLLA ALTIS 11,31,900

CAMRY 22,84,800

PRADO 42,27,300

Table 1.1

FUTURE PLANS

India's car population may be growing but the growth is mainly concentrated in the small car

sector, and not without reason. With increasing interest rates making buying cars costlier and

the government slapping new duties on larger vehicles in addition to the existing favorable

tax regime for smaller cars, even premium players are wading into the small-car scene.

Indian passenger car sales rose by 11.79 per cent between April 2007 and March 2008 to 1.2

million units. Competition in the small car segment is set to increase in 2009, with planned

launches by Maruti Suzuki (A-Star and Splash), Honda (Jazz) and as yet unnamed models

from Ford, GM and Volkswagen.

Japanese carmaker Toyota, all set to surpass General Motors as the world's largest, is the

latest entrant when it made its intentions clear on the occasion of the laying of the foundation

stone for its second factory in India.

The decade-old Indian joint venture of the Japanese automaker, Toyota Kirloskar, is building

its second plant at Bidadi, about 40 kilometers from India's IT hub of Bangalore, with an

upfront investment of Rs14,000 crore ($329 million) to manufacture a range of passenger

cars and multi-utility vehicles. Toyota is the majority partner with an 89-per cent stake with

Kirloskar owning the rest.

Karnataka chief minister B S Yeddyurappa unveiled the foundation stone for the new plant

that will have a test track and additional space for suppliers and other vendors. The ceremony

was attended by Toyota senior managing director Akira Okabe, chairman Ryoichi Sasaki,

vice-chairman Vikram Kirloskar and managing director Hiroshi Nakagawa.

The modular plant, to be commissioned by 2010, will have an installed capacity of 100,000

units annually and will employ about 2,400 people. Top officials confirmed that the company

will soon be introducing its newly designed compact car in the Indian market.

The factory will be ready by mid-2010 and we are yet to finalize the launch date of the new

car. We have basic concept of the new car ready and very shortly we will finalize the design

of the car.''

The plant which is being set up will see an initial investment of Rs1400 crore. But this initial

investment won't include certain other costs like installing robots and other automation

equipment.

The arrangement of this additional amount required for the plant would be worked out later.

A new test track will be included in the second plant, which is expected to be spread over 130

acres of land.

Though the new compact car has been designed for the Indian market, the initial design

features indicate that it can be exported to other markets in Asia. Daihatsu, Toyota's group

company, will not be involved in designing the compact new car, though it may be included

in future plans.

However, Tata Motors and Bajaj Auto can rest easy for the time being. Although Okabe

confirmed that the new product will be the cheapest in the Toyota stable, indications are that

it maybe priced higher than its Indian competitors.

Vikram Kirloskar said as much when he commented, ''We are working on the new design.

The model is yet to be finalized. We plan to have petrol as well as diesel versions. The small

car will not compete with the upcoming Nano of Tata Motors, touted to be the world's

cheapest car.''

GENERIC STRATEGIES

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?

Figure 1.1

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.

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.  

1.4 S.W.O.T 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).  

WEAKNESS

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 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.

OPPURTUNITIES

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.  

THREATS

Product recalls are always a problem for vehicle manufacturers. In 2005 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.

1.5 COMPETITVE S.W.O.T 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 

MARUTI SUZUKI’s biggest weakness, is the lack of product design capability. In the

coming years, they should focus on acquiring product design and lean production know-how

(as the Korean firms did in the eighties and early nineties. Also the Research and

developments headquarters for engine development of Maruti Suzuki are in Japan which is a

major weak point. Maruti Suzuki also needs to invest in capacity and research and

development in India to stay abreast of competition.

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 2004, 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 2004, 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 2003 by Rs.

23,000 followed by the launch of the non-AC Alto for Rs. 0.23 mn in the first week of April

2004.

CHAPTER 3 OBJECTIVE AND METHODOLOGY

3.1 SIGNIFICANCE

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

2005. 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.

"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

3.2 MANAGERIAL USEFULLNESS

The marketing department can use this study to enhance their marketing strategies for better

sales. This report helps the marketing department in taking decisions to what change in

distribution channels and what should be done so that marketing problem could be sorted out

and how to sell their range of product in the competitive market.

The very essence of every project related to marketing is providing a view to management

for chalk out the organization, so that they can maintain a viable fit between the

organizational objectives, skills and resources and its changing market opportunities. also

give a proper shape to company's target profit and growth. it provides feedback to the

organization about their sales, sales schemes and what impact does it has on the dealers and

consumers. every market research provides useful suggestions to the organization. marketing

research helps the firm in every component of the total marketing task. it helps the firm

acquire a better understanding of the buyer, the competition and the marketing environment.

it also aids the formulation of the marketing mix. product. distribution and pricing needs. it

also helps in taking the information of competitor's strategies and their impact on the buyer.

the study reveals the fact that may have come up during the project and these facts can either

be used a opportunities in exploring and expanding the business as well as can be used as

safeguard against threats by competitors to prepare an effective marketing strategy. Every

market research proves useful to the organization. Marketing research helps the firm in every

component of total marketing task.

3.3 OBJECTIVES OF STUDY

The object of report is not only to focus on competitors but also to get the competitive

position in the national as well as international market through customer satisfaction. These

are as follows.

To discover and translate the needs and desire of customer into products and services

so as to create the demand of the product (through planning and producing planned

product).

To serve the customer through channel of distribution.

To face the keen competition.

To know about the marketing strategies used by Toyota.

To know about the marketing strategies of the competitors of Toyota.

To find out the market share of Toyota.

To know where Toyota stands as far as the BCG –matrix models concerned.

3.4 SCOPE OF THE STUDY

These are some of the scope of the study :

1. The present study can be extended to access the present marketing condition of Indian

automobile sector.

2. The study can be used to design a proper product, price, place and promotional

strategy for the market.

3. From the present study we can know the market share of different products and

accordingly formulated strategy to enhance it.

4. The result of marketing success can be interpreted to assess the rate of employee

satisfaction in various departments.

5. This study can be applied to find out an effective distribution channel to enhance the

sale of various products of Toyota motors.

3.5 RESEARCH METHODOLOGY

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

Primary Source:

Observation

Experiment

Talking with consumers,retailers and distributors.

Secondary Source:

Balance sheet of the company

Company website

SAMPLE SIZE AND AREAS COVERED

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

questionnaire in which 50 people belong to cities of CHANDIGARH and MOHALI.

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

PROBABILITY SAMPLE or RANDOM SAMPLE was taken.

STATISTICAL AND PRESENTAION TOOLS

PRIMARY DATA is represented:

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).

3.6 LIMITATIONS OF THE STUDY

Since the road to improvement is never ending, so this study also suffers from certain

limitations. Some of them are as follows:

Because of illiteracy, it was a time consuming method in which continuous guidance

was required.

Questionnaire method involves some uncertainty of response. Co-operation on the part

of informants, in some cases, was difficult to presume.

It is possible that the information supplied by the informants may be incorrect. So, the

study may lack accuracy.

CHAPTER 4 - DATA ANALYSIS

4.1 PERCENTAGE OF TOYOTA OWNERS

OWNERS OF TOYOTA

YES24%

NO76%

YES

NO

Figure 1.3

INFERENCE:

24% of the respondents were owners of Honda

76% of the respondents were owners of Toyota

4.2 CUSTOMER SATISFACTION RATING

CUSTOMER SATISFACTION

83%

17%

SATISFIED

DISSATISFIED

Figure 1.4

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.

4.3 PREFERENCES OF BUYING A NEW CAR

0

10

20

30

40

TOYOTA HYUNDAI MARUTI HONDA

PREFERENCES OF BUYING A NEW CAR

Figure 1.5

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.

4.4 WHERE DO YOU MANAGE TO FIND INFORMATION ABOUT

TOYOTA

INFORMATION ABOUT TOYOTA

12%

20%

13%

55%

DEALERS

PRINT MEDIA

T.V.

INTERNET

Figure 1.6

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.

4.5 TOYOTA CARS HAS THE MOST FUEL EFFICIENCY

FUEL EFFICIENCY OF TOYOTA

78

22

020406080

100

YES NO

Figure 1.7

INFERENCE:

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

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

4.6 THE FEATURES OF TOYOTA AS COMPARED TO OTHER CARS

FEATURES OF TOYOTA

70%

10%

8%

12%

GOOD

VERY GOOD

NOT SO GOOD

SATISFACTORY

Figure 1.8

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.

4.7 THE QUALITIES THAT BEST DESCRIBES TOYOTA

FEATURES THAT BEST DESCRIBES TOYOTA

1518

38

29

0

10

20

30

40

HANDLING FUELEFFICIENCY

DESIGN COMFORT

Figure 1.9

INFERENCE:

Toyota is best known for its design & comfort.

Then comes Handling and Fuel Efficiency.

4.8 HOW DO YOU FIND THE INTERIORS OF TOYOTA

INTERIORS OF TOYOTA

74%

16%

3%7%

GOOD

VERY GOOD

NOT SO GOOD

SATISFACTORY

Figure 1.10

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.

4.9 WHAT SHOULD BE DONE TO IMPROVE TOYOTA ?

WHAT SHOULD BE DONE TO IMPROVE TOYOTA

72%

15%

13%MAKE IT MOREAFFORDABLE

CHEAPER SPAREPARTS

MORE SERVICESTATIONS

Figure 1.11

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.

4.10 WHAT SHOULD BE DONE TO MAKE TOYOTA THE BEST

CAR

WHAT SHOULD BE DONE TO MAKE TOYOTA THE BEST CAR

6015

10

15MAKE IT MOREFUTURISTIC

MAKE IT MORESPORTY

GIVE IT A RETROLOOK

GIVE IT ACONCEPT CARLOOK

Figure 1.12

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.

4.11 ARE YOU HAPPY WITH THE AFTER SALES SERVICES PROVIDED

BY TOYOTA

HAPPY WITH AFTER SALES SERVICES PROVIDED BY TOYOTA

85%

15%

HAPPY

UNHAPPY

Figure 1.13

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.

CHAPTER 5 – FINDINGS AND RECOMMENDATIONS

5.1 FINDINGS

76% of the respondents were owners of Toyota

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

18% of the respondents would prefer to buy a Toyota car against its competitors

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

78% of the respondents felt that Toyota has the most fuel efficiency

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

Toyota is best known for its design & comfort. Then comes Handling and Fuel

Efficiency.

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.

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.

5.2 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.

ANNEXURE

QUESTIONNAIRE FOR CONSUMER

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?

o YES 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

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

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)YES (ii) NO

(iii) HAPPY BUT IT CAN BE BETTER

BIBLIOGRAPHY

Books:

Kotler Philips, Marketing Management: 30th Edition

Chabra T.N., Marketing management 2005

C.B. Gupta, Marketing management 2006

MagazinesBusiness standard Motoring May 2008 edition

Internet:

www.google.com

www.toyota .com

www.yahoo.com

www.domain-b.com

www.wikipedia.com