Toyota-February 13, 2006-Arunesh Chand Mankotia

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Toyota-February 13, 2006-Arunesh Chand Mankotia


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Case Study-Toyota :

Case Study-Toyota Arunesh Chand Mankotia February 13, 2006

Introduction-Company Profile:

Introduction-Company Profile Established in 1937 as a spin-off from Toyoda Automatic Loom Works Headed by Japan’s “King of Inventors” Sakichi Toyoda Launched first car (SA Model) in 1947 One and only strike in 1950. It became Toyota Production System in 1970

Company Profile:

Company Profile World’s Third Largest manufacturer of automobiles in unit and net sales. It is by far the largest Japanese automotive manufacturer, producing more then 5.5 million vehicles per year, equivalent to every 6 seconds.

Market Mix:

Market Mix The right combination of the 4 P’s Product Price Place Promotion


Product H1 H2 H3 H4 H5


Price H1: 10,71,972 H2: 11,75, 205 and 11,79,551 H3: 12,39,120 and 12,43,467 H4: 13,07,232 and 13,11,578 H5: 12,43,574 and 12,47,911


Place 12 Toyota Plants in and around Toyota City and Aichi Prefecture. Established 3 other domestic manufacturing companies in-Kyushu, Hokkaido & Tohuko Duo Sales outlets, which sell Volkswahen 295* Toyota dealers with different channels Toyota Dealers Toyopet Dealers Toyota Corolla Dealers Netz Dealers




Promotion Across the world, Toyota participates enthusiastically in community activities ranging from the sponsorship of educational and cultural programs to international exchange and research. Authorized dealers for their car segments.


Strengths Devotion towards a community project Caters to all the segments of the community First priority are the customers and the environment Provide a choice to the customers for customizing their own cars. Strong belief in fulfilling its corporate responsibility.


Strengths Strong financial standing Customer loyalty Supports various programs focused on the improvement of the community Policy of producing cars near its local markets.

Weakness :

Weakness Needs to improve the design Needs to retain operational efficiency Exterior styling Habit of committing mistakes twice Non-Committed dealers

Threats :

Threats Young buyers getting attracted to Suzuki, Hyundai Exposed to fluctuations in economic and political conditions in US, Japan General motors still being the world’s largest carmaker. Demand in economies like U.S and Europe has become static.

Opportunities :

Opportunities Needs to a marketing strategy that caters to the young generation. Needs to come up with small segment cars. Needs top focus on fuel efficiency cars rather than producing thousands of hybrid cars.

Key Success Factors:

Key Success Factors Innovation. Diversity. Very well understanding the needs of different countries. Manufacturing speed and flexibility. Caters to the requirements of all the age groups. Marketing strategy appeals to individuality and creativity.


Recommendations Better Design : Give a heavier look Tires are not that good Working out some good deals for dealers or may be some contest to boost some sales Changing the target segment Working out some cheaper price to attract the young crowd


Conclusion… In 2000, the first hybrid electronic gasoline car made Toyota a leader; Toyota wants to be known for environmental friendly car; Toyota offers wide range of cars: from family sedans, sport utility vehicles, trucks & minivans; Toyota is more Customer focused; Marketing Strategies for different cars;


Cont… Reason for Toyota's Success: its Manufacturing unit; Leads to increase in productivity & market responsiveness; In 2003, Toyota’s sale rose to $140 billion that it edged Ford Motors; It became the 2 nd largest car-maker; Market cap of $110billion is more than GM & Daimler Chrysler (Combined); Toyota’s Goal: Surpass GM & be World leader in Automobile;

Reasons why Toyota was vulnerable:

Reasons why Toyota was vulnerable Only luxury segment cars are launched in India. Sales satisfaction is a weakness due to the longer waiting time for new car delivery. Customers still lag in appreciating the global warning. Thus the marketing strategies should emphasis on the value of fuel efficiency. Cars like Lexus and Celica have niche market.

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