STARTED AS TOYOTA
MOTOR COMPANY IN
1937 BY KILCHIRO
IN 1957, TOYOTA’S
FIRST EXPORT OF
CAR ‘CROWN’ TO THE
WORLDWIDE WITH 53
COMPANIES IN 28
Car of the Future
Time, you continuously improve ..
The Company Today…
GLOBALLY – 9.2%
IT IS THE LARGEST CAR
MANUFACTURER IN THE
Product Differentiation on the basis of Reliability,
Maintenance and Quality
They have a car for all.
The company stands for Quality,
The company offers great
Toyota has mastered the art of
manufacturing multiple models at
the same time.
THEY UNDERSTOOD THE CORE BENFITS REQUIRED BY
THE CUSTOMER AND ACCORDINGLY DESIGNED THEIR
THEY REGULARLY INVEST A LOT ON R&D TO GAIN
FOR EXAMPLE : TOYOTA COROLLA AND
CORONA WERE INTRODUCED DURING
THE OIL CRISIS OF 1973’S WHEN
CONSUMERS WANTED SMALLER, MORE
FUEL EFFICIENT AUTOMOBILES.
Value For Money… What all of us want
World of choices
As per your wish
Peace of mind with
Quality in heart
Largest Dealer Network
01 Choice of purchase
Options – Mobile,
02 Genuine Parts
03 A Toyota
Strategy Which Helped
The Toyota Way
Gained customer loyalty
Increased their market
share and augmented
03 It increased their
Toyota converts its biggest recalls into
For instance, the major car recall of 2009-10
deeply affected sales of Toyota automobiles in
all segments, but the way they responded to
it and helped regain customer loyalty.
What did we learn
“Differentiation on the basis
of customisation. Lean
on the basis of
and equality. …”
of core benefit
After having had a look at the pst and present state of the company let us move on to the first question of the case study
This case study aims to understand toyot’s product setting strategy. Given above are the four pillars on which Toyota’s success is based. I will dicuss these ponts further in the presentation. These pillars have helped them in achieveing customer delight.
Moving to the first point of configuration. They model their products on the core benefits that customers of each segement desire.
Modelling products around the core benefits that customers desire helped in increasing their market share. The company also hanged its products according to the country. For example in Usa luxury means comfort while in Europe luxury means attention to detail and brand heritage
Heres an another advertisement where the company shows that they care about their customers core need and wants.
Lets shift our focus to the next point of quality .Toyota’s automobiles are infamous for their quality, the same point is reiterated too by the company in their advertisements
Moving on to reliability. TOYOTA AUTOMOBILES HAVE CONSTANTLY RECEIVED HIGH RANKING ON CONSISTENCY AND QUALITY.
EVEN AFTER THE MAJOR RECALL OF 8 MILLION CARS, THE COMPANY WAS ABLE TO REBUILD ON ITS PROMISE OF ”QDR”.
THEY ARE FAMOUS FOR THE WARRANTY AND GUARANTEE PROVIDED ON THEIR PRODUCTS.
Heres an example of how Toyota used customisation, to capture a market share in the young adults consumer segmrnt. They even created a separate brand for the same.
To become the biggest manufacturer of automobiles a company also requires demand. Toyata has solved the problem by creating a car for every micro segement. To maintain exclusisvity the company create ddiffernt brands wherever required.
Product length refer to the Total Number of items in theproduct line, . Their product life is also long. Heres an interesting fact 80% of the cars manufactured in 1995 are still in use in the US
Moving to the last point of lean manufacturing. Toyota follows many principles, a popular one being the “Just in time” principle. It is an inventory strategy, which helps them in enhancing their efficiency.
We can now answer the second question in the case study
I strongle feel that this strategy was beneficial for the company. everybody knows about Toyota, which increased their comnsumer loyalty, every averge American buys a Toyota for his first car. The huge surge in demand from difeernt segments enhanced their profitability, this strategy also helped in increasing their market share.
Toyota has the ability to convert their threats into opportunities, the way they handled their recalls are a testament to that.
To recall, in this presentation we tried to understand product setting strategies of Toyota using the principles for the same. Toyata’s practices known as The Toyota way have become the industry norm for quality, great service and marketing excellence
Lastly, I would like to take this opportuniyty to thank Professor samerr Mathur for giving me chance to present this case study.