Marketing Nirvana Session on Branding Toyota Motors

1. MARKETING NIRVANA
Putting Customer First
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED
Hitarth Saini Marketing & Adverting Club
Rakesh Rajendran Vinod Gupta School of Management
IIT Kharagpur

2. INTERESTING FACTS
 5th largest car maker in India after Maruti Suzuki, Hyundai, Tata
and Mahindra
 Joint venture between Toyota Motor Corporation and Kirloskar
group
 Entered India in 1997
 TKMPL's current plant at Bidadi, Karnataka is spread across 432
acres and has a capacity of 90,000 vehicles per annum
 Second manufacturing plant on the outskirts of
Bangalore, Karnataka has a capacity of 120,000 vehicles per
annum. Both plants have a combined capacity of 210,000
vehicles per annum.
 The company is investing Rs 898 crore in Bidadi to increase
production capacity by nearly 50 per cent to 310,000 vehicles a
year by March 2013

3. INTERESTING FACTS
 Toyota announced that Etios sedan and the
Liva hatchback has posted sales of over one
lakh units, hence Toyota is all set for giving
its production a big boost.
 Plans to hike the production of Etios series
models by 75% by early 2013.

4. PLANTS OVERVIEW
TKMPL 1st plant
October 1997 (start of production: December
Established
1999)
Location Suburb of Bangalore, Karnataka State
Innova, Fortuner manufactured in India.
Products
Prado, Land Cruiser and Prius imported models.
Annual production capacity Approx. 90,000 units
TKMPL 2nd plant
On the site of Toyota Kirloskar Motor Private
Location Limited (on the outskirts of Bangalore, Karnataka
State)
Products Corolla Altis, Etios, Etios Liva, New Camry
Start of production December 2010
Annual production capacity 1,20,000 units

5. KNOW THE BOSS
HIROSHI NAKAGAWA

6. GLOBAL PRESENCE
TOYOTA MOTOR CORPORATION

7. GLOBAL PRESENCE
 Toyota Motor Corporation abbreviated
TMC, is a Japanese multinational automaker
headquartered in Toyota, Aichi, Japan.
 World’s biggest car maker by the number of
units sold.
 Ninth largest company in the world by
revenue.
 In July 2012 the company reported that it had
manufactured its 200 millionth vehicle.
 Toyota is popularly known as "丰田
"(pronounced as "Fēngtián" in Mandarin
Chinese ).

8. INDIAN PERSPECTIVE
TOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED

9. TARGET MARKETS
 Passenger cars market
 Multi utility vehicle market

10. MARKET SHARE
 Toyota's share in the last financial year was
6.12 per cent, with a high dependence on
one model - its Innova multi-utility
vehicle, which accounts for 38 per cent of its
revenues.
 Toyota employs more than 6000 people in
India.
 Toyota targets 10 percent market share in
next five years.

11. THE SUCCESS FACTOR
 TKM, along with its dedicated dealers and suppliers,
has adopted the “Growing Together ” philosophy of its
parent company, TMC, to create long-term business
growth.
 Toyota’s success in India has been due to several
factors –
 a renowned brand
 world-class manufacturing processes and practices
 in-depth market analysis
 superior product quality
 committed employees.

12. MARKETING STRATEGY
The managing director Hiroshi Nakagawa says
“Quality is our top priority and, at the same
time, the Indian customer is very keen on cost and
price. We have taken a lot of initiatives with
(component) suppliers for a technical
breakthrough, like how to reduce the weight of
iron while maintaining its strength.”
http://www.youtube.com/watch?v=fuh_OwGjW
eU

13. MARKETING STRATEGY
"Our goal is 100 per cent localisation, but no
manufacturer has ever achieved that," says
Nakagawa. "You will still require some
advanced material like a sensor or chip." He
adds that planning is necessary to adjust
production. "But there is no stability in auto fuel
policy. That is a cause for concern."

14. CHALLENGES
 Localisation
 Waiting Period
 Cost reduction-Rupee slide against dollar
 Established rivals
 Auto fuel policy
78 percent of Toyota’s annual revenue comes
from the diesel variants of
Etios, Corolla, Fortuner and Innova.

15. MANUFACTURING

16. TPS HALLMARKS
 Lean Manufacturing
 JIT production
 In process Quality Assurance
 Toyota’s world class research and development
has made possible technological advancements in
quality manufacturing, safety, efficiency and
environment preservation, all of which contribute
to
enhancing customer satisfaction.

17. FUTURE PLANS

18. FUTURE PLANS
 Toyota plans to increase its market share in the
MUV and car markets, alongside increasing
productivity.
 Toyota expects to produce 1 million cars a year
by 2020.
 Toyota also plans to continue working with
component manufacturers to guide them on
quality, cost and delivery.
 Toyota is preparing itself and its dealers and
vendors for growth by stepping up training at all
levels

19. THANK YOU
PREPARED BY
HITARTH SAINI
RAKESH RAJENDRAN
MARKETING & ADVERTISING
CLUB
VGSOM, IIT KHARAGPUR