Team 225ers Balajee Rao

Bineet Kumar Chaturvedi

Toyota Etios Q Class

We are the world's second-fastest growing market, Accounts for 5% ofthe global auto production.

Cars (A, B, C, D & E segments) (Hatchbacks, Sedans, Notchbacks, StationWagons & Saloons) ,Utility Vehicles (Multi- & Sports Utility)

Large variety of products & choice for the customer -13manufacturers, 50+ Models

Customer preference driven by value for money and cost of ownershipconsiderations rather than image, performance and power. 80% of carssold are priced below USD 12000.

The passenger car penetration in India is at 8.5 vehicles per thousandpeople absolute terms.

India’s passenger vehicle production projections :

In 2010 – 2.6 million Vehicles

By 2015 – 5.1 million Vehicles

The 2011 Figure:

Passenger Cars recorded de-growth at (-) 1.36 percent in April- Sept2011.

The design concept for the car is Bold Simplicity which is referred toaffordable luxury and functionality in one machine.

The company will produce around 70K units of the car per year. Withits small car Toyota Etios, the company intends to grab a 10 per centmarket share in Indian compact cars segment by the end of thecurrent year.

The Etios is currently available with four variants and is pricedbetween Rs.5.5 lakhs and 7.84 lakhs. The fuel economy figures forthe Etios are 11.8kmpl and 16.8kmpl for city and highways.

The Etios has been appreciated for its performance and Exteriorfinish.

Space ,Comfort

Ride Quality & Handling : Excellent ride quality andhandling, steering is a beauty.

Exterior The car in black looks big and awesome, the front grill isa beauty.

Engine Performance, Fuel Economy and Gearbox : This is whereEtios scores 150 upon 100. Excellent engine, very peppy, you willbe running number one in the highway. Excellent responsiveengine.

Safety without any compromise making a world of a difference.

Manufacturing through Total Quality management-maximizesprofit

Dated, plain-vanilla styling. Lacks contemporariness

Missing equipment (climate control, height adjustable seat, electricORVMs etc.)

Economy-grade interior quality & unconventional dashboard

Cost-cutting glaringly evident in many areas.

Buzzy engine over 4,500 rpm.

Opportunities in front: Rise of Indian Middle class Low car density in Indian Market Government Investing on Infrastructure like roads and parking.

Where we can concentrate: Rising interest rates on car loansCompetitors competing on prices rather on features.

Investing in R&D on hybrid vehicles, owing to the sky rocketing oilprices.

Market evolution from Mini cars to Hatchbacks to Compact Sedans nowevident.

Increasing customer emphasis on aesthetics and comfort. Shrinkingproduct life-cycles.

Low car penetration of 8.5 per thousand.

Rising fuel prices

Global Recession, gloomy manufacturing outlook, increased costof borrowing capital

Environmental regulations, associated level of carbonemissions, increased sensitivity towards environmentalprotection globally.

Competition from other players, market saturation and forcefulmarketing campaigns

Increased commodity prices

Memories of recall of faulty vehicles still fresh in customermemory- repositioning of the brand

Total car registrations in 2010 was 2 million.

Total B segment car is 38% of the Indian market pie. Toyota Etios will have tocompete with the likes of Maruti Swift Dzire, Hyundai Verna, TataIndigo, Ford Fiesta.

Toyota Etios certainly wins on the basis of looks.

The Tata Manza price ranges from Rs 5,47,000 to Rs. 6,13,000. The MarutiDzire ranges from Rs 4,62,354 to Rs. 5,97,502. The Toyota Etios starts fromRs 4.96 lakhs and goes up to Rs 6.87 lakhs.

Project the car as “ My first Car” for the age group 25-30 years. Primaryobjective should be to become a part of the personal sphere of the customer.

Benefits : Leveraging the demographics of India, where the average is25-26 years. Targeting the segment with highest population.

Cost Structure : Advertising cost

Tie ups with a local financial institution to provide a favorable interest capitalfor purchase.

Benefits : Customers with insufficient funds will not hesitate to grabthis opportunity. This move is aimed at the lower and the average middleclass. Higher revenue generation.

Cost Structure : A small hit in profit, Transaction cost, administrationcost.

In order to have a major chunk of the market pie in a multichannelenvironment, we need to identify the role of each channel and the audience it istargeted at.

Benefits : Social networking is the buzz word nowadays.Television, paper media and mobile and radio(fm) advertisements canbe used effectively in spreading the brand awareness.

Cost Structure : Advertising costs, Sponsorships, Rentals.

Set aside an optimum number of machines to be given on lease for afortnight.

Rolling of the vehicles only after proper documentation, verification andsurety.

Taking proper action in accordance with the customer feedback.

Incentives and goodies can be given for referrals by loyal customers

Benefits : Higher conversion rate of showroom visit to sales, may result inpositive word of mouth (WoM) advertising, brand repositioning, buildcustomer equity

Cost Structure : Maintenance & servicing cost, cost of recruiting the rightpersonnel