Toyota Corolla
Toyota Corolla
Toyota Corolla
producing more than 5.5 million vehicles per year, equivalent to one every six
seconds
October 6, 1997
Mr. Akira Okabe
Mr. Vikram S Kirloskar
Mr. A. Toyoshima
Mr. K. K. Swamy
Mr. Masatoshi Seki
Rs. 7 billion
Toyota Motor Corporation (99% equity)
Kirloskar Group (1% equity)
PRODUCT
TOYOTA COROLLA - WORLDS NO.1 BESTSELLER
WHAT IS TOYOTA COROLLA?
The Toyota Corolla is the best selling car in the world (counting all years), and no
wonder. It offers peppy acceleration, agile handling, excellent fuel economy, and
a smooth, comfortable ride. For most people, the Corolla is about as good as it
needs to get.
As an added bonus, the Corolla often tops J.D. Power's reliability ratings for
small cars - beating the Civic, Focus, and Neon by a pretty good margin.
Meanwhile, the Corolla tends to best all small cars in Consumer Reports'
surveys. Last time we looked (in 2001), the Honda Civic was down there...below
average...below the Neon... why do people buy Civics when the Corolla has a
better standard engine, nicer and quieter ride, and uncontestable quality? In
India, Toyota Corolla falls in the Premium Midsize Car Segment popularly known
as the C++ Segment.
A corolla is the outer envelope or crowning portion of a flower. (The new Scion
line is named after another flower term.)
1966
The first generation Corolla blossomed way
back in 1966 in Japan as a Toyota dream to
produce a people's car. This rear wheel drive
Toyota Corolla was an instant hit - an
outstanding compact car that coupled striking
appeal with the highest standards of
performance.
1st Generation COROLLA
1970
Four years later, in 1970 a new Toyota Corolla
emerged, bringing with it a larger 1.2 litre
engine. This second generation Corolla actually
became the second best selling import car in
1970.
2nd Generation COROLLA
1974
The year 1974 saw the third generation Toyota
Corolla, a masterpiece of engineering that grew
on to become the best-selling vehicle in the
world between 1974 and 1977.
Technical Specification
Transmission Type
H1
1.8 J
Dimensions
Overall
5 Speed Manual
H2
H5
1.8 E
length (mm)
Width (mm)
Height (mm)
4 Speed Automatic
H3
H4
1.8 G
4,530
1,705
1,490
2,600
Wheelbase (mm)
Tread
Front (mm)
Rear (mm)
Min. Turning Radius (m)
Fuel Tank Capacity (Ltr)
Boot Space (Ltr)
Weights
Kerb Weight (Kg)
Gross Vehicle Weight (Kg)
1,480
1,460
5.1
50
430
1160
1600
1185
1600
ENGINE
Type
Valve Train
Displacement (cc)
Bore & Stroke (mm)
Compression Ratio
EFI
92 kW @ 6000 rpm/125 Ps @ 6000 rpm
158 Nm @ 4200 rpm/16.1kg-m @ 4200rpm
CHASSIS
Suspension
Front
Rear
Brakes
Front
Rear
Ventilated disc
Solid disc with ABS
Radial 195 / 60 R15
Dry single plate
Tyres
Clutch Type
SAFETY
SRS Air Bags (Driver +
Passenger)
Front Fog Lamps
ABS
Hydraulic
H1
H2
H5
H3
H4
EXTERIOR
Power Retractable Outside Rear
View Mirror
INTERIOR
Fully Automatic Air Conditioner
with Heater
Woodgrain finish on Center
Cluster
Audio
AM/ FM Radio
Cassette Player
In-Dash 6 CD Player
Speakers (Nos)
Seat Material
Driver Seat Height adjustment
60:40 Split Foldable Rear Seat
4
Fabric
6
Fabric-High
6
Leather
6
6
Fabric-High Leather
POWER FEATURES
Power Steering
Power Window
Driver Side One touch Up/Down
with jam Protection
PRICE
You cant get by on a smile and a good price in this new class: cars need
all-round talent as well as that extra, special something. We know the
Octavia and the Corolla have it, but can the new Chevrolet Optra get a grip
on what it takes?
Theres a new segment emerging in the Indian market. Its so new that we
havent thought of a name for it yet. Call it the premium mid-size or the compact
luxury class, its the hot new niche that sits bang in between the Honda CityBaleno-Lancer gang and the upper crust Accords, Camrys and Mondeos. Not
long ago, it was just the Skoda Octavia which ruled this Rs 10 lakh roost; then
came the Corolla, which knocked the Octavia off its perch with an aggressive
price and a badge that works wonders anywhere in the world.
GM India has jumped into the fray with its newly launched Chevrolet Optra. It
knows that however good the Optra may be, the only way to combat the Toyota
badge is by winning the metal-for-money fight. The Optra undercuts both the
Corolla and Octavia by a substantial margin, but does your money go as far in
this Korean-built car? Does the Corollas Toyota badge come with tangible
benefits that helps justify its higher price? Or is the Czech-built Octavia the
most substantial car of this lot? Lets see what the prices of these cars have to
say:
Price List
Sl. No.
Grade
Model
Ex-Showroom
Price Rs.
H1
1.8J
997,010
H2
1.8E
1,092,510
H2 Metallic
1.8E
1,096,520
H3
1.8G
1,152,010
H3 Metallic
1.8G
1,156,030
H4
1.8G
1,199,500
H4 Metallic
1.8G
1,203,520
H5
1.8E
1,140,010
H5 Metallic
1.8E
1,144,020
CHEVROLET OPTRA
List price Rs 8.2-10.1 lakh
Top speed 191 kph
0-100kph
11.11 sec
Kpl
9.6 (overall)
For Interiors, comfort, value
for money
Against Unexciting to drive
TOYOTA COROLLA
List price
Rs 9.9-12.0 lakh
Top speed 195 kph
0-100kph
9.07 sec
Kpl
10.5 (overall)
For Performance, comfort,
fuel efficiency
Against Suspension, feels
built to a price
SKODA OCTAVIA
List price Rs 10.3-11.9 lakh
Top speed 185 kph
0-100kph 11.96 sec
Kpl
8.9 (overall)
For Solid build, ride comfort,
huge boot
Against Lacks luxury feel,
cramped rear seats
Prices ex-showroom, Mumbai
PLACE
Consumer
PROMOTION
The Promotion for Toyota Corolla consists of a blend of activities making its
Promotion Mix. Its Promotion Mix consists of almost all the possible techniques
of Promotion used for any other product. Some of the major elements of
Promotion Mix of Toyota Corolla are listed as under:
Advertising
Brochure
Posters/Leaflets
Print Advertisements
TV Commercials
Bill Boards
Display Signs
POP Displays
Symbol/Logo
Sales Promotion
Fairs and trade Shows
Public Relations
Annual Reports
Seminars
Charitable Donations
Community Relation
Personal Selling
Individual Sales
Corporate Sales
Sales Presentations
Fair and trade Shows
Direct Marketing
Catalogs
Mailings
Telemarketing
Advertising
Sales Promotion
One of the major sources of Sales Promotion is Trade Fairs like AUTO EXPO,
MOTOR SHOW etc. The company used to take part in these types of fairs and
used it for its Sales Promotion. But now the trend is shifting because the
company thinks that if they want to launch a product on a National Level, then
there is no need for such kind of shows as now there are various other powerful
sources of media available to them. Moreover the cost spent on these kind of
fairs was not justified. So therefore the company is now keeping away from fairs.
Some other Sales Promotion technique used by the company is the Festival
Season Offers it introduces in the market at the time of Diwali, New Year,
Christmas, Navratri etc to boost short term sales.
Contribution to Tsunami
Toyota Kirloskar Motor wins Best Ornamental Garden award for its
landscape
Toyota Kirloskar signs MoU with Bangalore University for promotion of
Japanese Language
Toyota observes earth day by supporting local schools
Organizing Drawing/Painting Competition on Me and my Environment for
kids from Govt. Schools.
Personal Selling
Personal Selling largely takes place at the Dealers End. The way the customer is
attended depends mainly on the Dealer as he acts as an interface between the
company and the Consumer.
The various cases in which Personal Selling takes place is Individual Sales,
Corporate Sales, Sales Presentations, Fair and trade Shows. Mostly in case of
Individual Sales the Customer goes to the showroom and takes a look at the
product. There he is attended to by the Sales Personnel of the Dealership.
Sometimes the Senior Sales Executive has to make Sales Presentation to
Corporate Buyers. Personal Selling is also practiced at Trade Fairs and Auto
Shows wherein the Company appointed Sales Personnel attend prospective
customers and also book their orders.
Direct Marketing
In the case of Direct Marketing the Company Officials directly contact the
Prospective buyers with the information available through various sources. For
example in case of Road Shows, Trade Fairs, Auto Shows etc. Sometimes the
existing customers also provide references of prospective buyers such as their
friends or relatives.
PEOPLE
There are various types of people in any Organization. The various types of
people in case of Toyota can be classified as Customers, Sales Executives,
Society, Government, Competitors, Media.
The most important out of these is our Customers. A customer can be any person
who purchases the product, he may or may not use that product for himself. A
consumer is one who actually uses the product himself. For example a father
purchases Corolla for his son. In this case the father will be the Customer and
son will be the Consumer. The main people involved in the purchase decision of
the car are the Family Members. In a recent study conducted, it was found out
that these days children play a major role in deciding which car to buy for the
family. The company has to seriously take into consideration all these factors.
Also the factors that whether one uses the car for traveling, office, shopping or
family/personal etc.
As this car falls into a segment where price range is between 9-11 Lacs, so the
company has to target those people who not only have the ability to spend that
much amount of money but are also willing to spend that much amount of money.
Data regarding the purchasing power of different classes of people is also very
necessary. Customers tastes and preferences have to be taken into
consideration.
Next comes the Sales Executives who deal with the final customers and finish
the sales call. The Sales Executives play a major role. As the people of the
organization they are a window through which the customers interact with the
company. They have to be trained properly through customized modules
designed especially for them taking into consideration the various factors.
Corolla Owners Profile
Age
: 25-45
Occupation
: Business Class or High Level Service Executives
Social Class
: These people (Lower Upper to Higher Upper Class)
generally have an existing C segment car before they purchase Corolla.
Areas
: Urban/ Sub Urban, major Cities/Towns
Income Level
: More than Rs. 2 lacs p.m.
PHYSICAL EVIDENCE
The Physical Evidence is created by displaying physically the product. Along with
that creating an atmosphere for the customers where in they feel the presence of
product. Toyota creates a powerful physical evidence for its customers through
its Showrooms, Hoardings, Logo etc. All the showrooms are designed on a
common platform. The interiors of all the showrooms across India are the same.
The designs for the same are created by a team of Professionals in this field. The
designs are prepared very carefully keeping into consideration various factors
such as customers tastes and preferences, likes and dislikes etc. You will always
find a Toyota showroom having the Toyota Bill Board outside with white base and
red foreground. This creates a physical presence and people can feel the
product.
TOYOTA LOGO
COROLLA LOGO
PROCESS
The various processes involved in getting available the product from the
manufacturer to the end consumer are to be efficiently performed by the
company.
The processes start when the customer is contacted by the Sales Personnel of
the Dealership or the customer contacts the Dealership if he is interested to buy
a Corolla. The data regarding the various customers can be had from various
sources of data available through different agencies which specialize in providing
data. After the call is made, an appointment is fixed. The Sales Executive
prepares for the meet. He collects all the possible information which would be
needed for the meeting i.e. data about the customer, details about the car,
maximum permissible discount structure, finance options, delivery terms, free
accessories which will be provided to the customer.
The sales personnel will find out that what is the present vehicle used by the
customer, his present buying power, satisfaction level, seriousness in buying etc.
Along with that he will also find out his exact needs, desired level of satisfaction,
lifestyle patterns etc. Sales personnel also asks certain questions through which
he comes to know about the various factors he wants to know. He asks both
open as well as closed ended questions. With the help of these questions, he
can come to know the various reasons due to which he is buying that car. These
can be Performance, Safety, Comfort, Driving Pleasure, Appearance etc.
These processes either lead to completion of sales call or sometimes
unfortunately leads to unsuccessful sales call which could not be competed.
MARKET PLAN
INDUSTRY TREND
Indias 25% growth in passenger vehicles in calendar 04 puts it right on top of
the world auto growth heap. Outstripping Chinas estimated 15% growth in 04,
Indias 1,044,597 unit tally makes it the fastest growing volume market for
passenger vehicles. While the saturated developed markets of the US, Europe
and Japan continue to remain flat, auto analysts say Indias chances of staying
ahead of the pack in the new year are bright, given that Chinas government
mandated interest curbs will likely dampen demand there. The trends were
visible in the first six months of calendar 04. According to the OICA study on car
production, Indias 32% growth was second only to Chinas 39% increase among
volume markets.
PRESENT TREND
December wholesales were fair considering the usual deferment of sales to the
new financial year and because of several plant shut downs for maintenance. At
this rate the annual domestic sales should exceed 800,000 units with exports of
an additional 160,000 units.
Over the past three years, the share of the A1 segment has declined by 44%
while the larger A2 hatchbacks are up by 35.4%, the A3 segment increased by
41.8% while the A4-6 segments increased by 109%. Hatchbacks accounted for
88% of Indias sales.
Maruti as the top seller with a 51% market share. Tata Motors had a share of
17.3%, Hyundai also of 17.3%, Honda of 3.9%, Ford of 3.1%, GM of 2.1%,
Toyota of 2.1%, HM of 1.8% and Fiat of 0.8%.
Toyota Corolla
Chevrolet Optra
Skoda Octavia
Hyundai Elantra
Overall Market
Share
1.2%
1.1%
0.8%
0.6%
A4/C++ Segment
Share
34.1%
23.6%
22.6%
19.7%
OPPURTUNITY ANALYSIS
The charge of Indias auto industry continues. During the nine months of the
current financial year the sales of all sectors has been impressive. Commercial
vehicles led the charge with 26% growth though it was the goods vehicles that
actually drove the growth. Actually this growth rate is higher because India is now
producing a higher ratio of multi-axle vehicles and vehicles with bigger engines.
This seems to reflect not only the health of the economy but the impact of better
highways.
Passenger vehicles are also doing well and UVs and MPVs now account for
23% of domestic sales. At this rate, the sales for the full year should exceed 1.1
million units. Two-wheelers seem to have recovered their velocity and should
exceed 6.25 million units during the year.
Perhaps most impressive has been the rapid growth of exports that now
accounts for 16% of passenger vehicles of which A4-A6 segments
SUGGESTIONS
Currently the Corolla is the Market Leader in the A4/C++ Segment. The car has
also been rated highest in terms of Overall Quality and Customer Satisfaction not
only in its own segment alone but the across all the segments by JD Power Asia
Pacific.
MARKETING STRATEGY
Target Segment The Corolla should be targeted at the Youth Market. It is a
car for people who like to drive the car themselves. Corolla gives overall
driving pleasure to the owner. It is for those people who are young and trendy.
It should be positioned as a little sporty car for trendy people. People having
an Average Monthly Income of 2 lacs and aged between 25-45 years form the
target market. These people already have 2 or more cars in their family and
this is generally their upgrade. These people are modern in their outlook and
live in urban and sub urban cities/towns.
Market Positioning The car is to be positioned as a Global Car which has
been there for so many years and is a huge success worldwide. It should be
positioned as a Sporty Car which can be used for Office as well as family use.
Its quality can be defined by the seal of Toyota, which is the Worlds Third
Largest Automaker.
ACTION PROGRAM