THE WORLDS NO.

1 BEST SELLER IS NOW

INDIAS BEST CAR ACROSS ALL

SEGMENTS

a market survey report by chirag arora, pgdbm-fb, div: A, roll

no.: 04

ABOUT THE PARENT COMPANYTOYOTA MOTOR CORPORATION, JAPAN

The Toyota Motor Co. Ltd was first established in 1937 as a spin-off from Toyoda
Automatic Loom Works, one of the world's leading manufacturers of weaving
machinery. The Toyoda Automatic Loom Works was then headed by Japan's
"King of Inventors" Sakichi Toyoda. The patent rights to one of his machines had
been sold to Platt Brothers (UK) and provided the seed-money for the
development and test-building of Toyota's first automobiles.
August 1997 marked the 60th anniversary of TMC. The fledgling company
founded by Kiichiro Toyoda, Sakichi's son, has since blossomed into the leader
that it is today. In 1950 the company experienced its one and only strike. Labor
and management emerged from this stoppage firmly committed to the principles
of mutual trust and dependence, and that corporate philosophy still guides our
growth today.
Production systems were improved in the late 1950s, culminating in the
establishment of the 'Toyota Production System.' It became known as TPS in
1970 but was established much earlier by Taiichi Ohno. Based on the principles
of Jidoka, Just-in-time and Kaizen, the system is a major factor in the reduction
of inventories and defects in the plants of Toyota and its suppliers, and it
underpins all our operations across the World. Toyota launched its first small car
(SA Model) in 1947. Production of vehicles outside Japan began in 1959 at a
small plant in Brazil, and continued with a growing network of overseas plants.
Toyota believes in localizing its operations to provide customers with the products
they need where they need them; this philosophy builds mutually beneficial longterm relationships with local suppliers and helps the company fulfill its
commitments to local labor.
Over and above manufacturing,Toyota also has a global network of design and
'Research and Development' facilities, embracing the three major car markets of
Japan, North America and Europe.
In every community in which the company operates, Toyota strives to be a
responsible corporate citizen; close relationships with people and organizations
in the local community are essential contributors to mutual prosperity. Across the
world, Toyota participates enthusiastically in community activities ranging from
the sponsorship of educational and cultural programmes to international
exchange and research.
Today, Toyota is the world's third largest manufacturer of automobiles in unit
sales and in net sales. It is by far the largest Japanese automotive manufacturer,

producing more than 5.5 million vehicles per year, equivalent to one every six
seconds

ABOUT THE INDIAN ARMTOYOTA KIRLOSKAR MOTOR PRIVATE LIMITED

As a joint venture between Kirloskar Group and Toyota Motor Corporation, Toyota
Kirloskar Motor Private Limited (TKM) aims to play a major role in the
development of the automotive industry and the creation of employment
opportunities, not only through its dealer network, but also through ancillary
industries.
TKM's growth since inception can be attributed to one simple, yet important
aspect of its business philosophy - "Putting Customer First".While managing
growth, TKM has maintained its commitment to provide quality products at a
reasonable price and has made every effort to meet changes in customer needs.
TKM firmly believes that the success of this venture depends on providing high
quality products and services to all valued customers through the efforts of its
team members.
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. In this way, TKM aims to further contribute to progress in the Indian
automotive industry, realise greater employement opportunities for local citizens,
improve the quality of life of the team members and promote robust economic
activity in India.
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. In this way, TKM aims to further contribute to progress in the Indian
automotive industry, realise greater employement opportunities for local citizens,
improve the quality of life of the team members and promote robust economic
activity in India
Empowering employees.... to achieve perfection
TKM firmly believes that employees are the main source of strength for the
organisation. The human resources management in Toyota seeks to create a
corporate culture where values such as "Continuous Improvement" and "Respect
for People" are fully reflected in all actual corporate and individual activities . The
company takes maximum care to ensure stability of employment and strives to
improve working conditions. To develop human resources and improve the
technical skills of its employees, TKM's young team members are regularly sent
to Japan, Indonesia and Taiwan for training programs. More than 400 team
members have benefited from such programs at various Toyota plants worldwide.
TKM also believes in continuously improving its products and practices. Every

team member is encouraged to give suggestions to improve the product,

efficiency of processes or working conditions. They are also appropriately
rewarded for the same. Thus TKM seeks to progress by empowering its
employees.
Pursuing the greater good Recognition
At TKM, we look to continuously improve not only our products but also our
processes and service. Our obsession with perfection has been recognized by
various institutions such as JD Power and NFO, as well as automotive
publications like Overdrive, as the reason for the success of Toyota products in
India and across the globe.
Local Community Development
At TKM, every effort is made to contribute to society. A residential school at
Bidadi, reconstructed by Toyota, now houses 75 students, mainly belonging to
backward communities. In the aftermath of the tragic earthquake in Gujarth, TKM
and its dealers played a major role in distributing food, clothing and relief in
remote affected area. TKM also takes a lead role in contributing to the
community, distributing books and bags in local school etc.
Toyota Kirloskar Motor Pvt. Ltd.
Date Of Establishment
Chairman
Vice Chairman
Managing Director
Deputy MD's
Paid-In Capital
Shareholders

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.

3rd Generation COROLLA

1979
Never content with success, the Toyota dream
surged on, and 1979 saw the advent of the
fourth generation Toyota Corolla, still with a rear
wheel drive.
4th Generation COROLLA
1984
1984 was the year that saw significant changes
in the Toyota Corolla. This fifth generation
Corolla came with a front wheel drive, and a
coupe version - the GT-S, with a 16-valve
engine.
5th Generation COROLLA
1988
Through the years the Toyota Corolla grew in
terms of likeability and performance, and 1988
saw the arrival of the sixth generation Toyota
Corolla.
6th Generation COROLLA
1993
The seventh generation 1993 Corolla is one

current compact size. This 1993 Toyota Corolla

is also famous for picking up a whole host of
awards along the way.
7th Generation COROLLA

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

Gasoline, 4 cylinder inline

DOHC, VVT-i (Variable Valve Timing - intelligent)
1,794
79.0*91.5
10.0 : 1

Fuel Supply System

Max. Output
Max.Torque (kg-m / rpm)

EFI
92 kW @ 6000 rpm/125 Ps @ 6000 rpm
158 Nm @ 4200 rpm/16.1kg-m @ 4200rpm

CHASSIS
Suspension
Front
Rear

MacPherson Strut Type with Stabiliser

ETA Beam type with Stabiliser

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

PRICE COMPARISON WITH COMPETITORS

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

The Marketing Distribution Channel of Toyota Kirloskar Motor India, the

Manufacturer of Corolla, is a Single Level Channel depicted as under:

Manufacturer-TKM India, Bangalore

Toyota Flagship Dealer

Consumer

TKM has a total strength of 42 Dealers across 38 Cities.

TRAINING OF THE DEALERS
The interface between the consumers and the company are the Dealers. As they
act as a window for the company, the company provides extensive training to its
Dealers for marketing and selling its products. The training programs are very
extensively designed to meet the specific needs of the dealer and the area which
that particular dealer caters to.
MOTIVATING THE DEALERS
The company views the dealers in the same way as its customers or end users.
It very keenly understands the Dealers specific needs and problems. It provides
the dealers with all kind of possible support it can. It also provides marketing and
sales promotion assistance to its dealers which acts as a motivator for the
dealers. The dealerships have to meet pre defined standards for Cleanliness,
Appearance and Service.
EVALUATION OF DEALERS
The company periodically evaluates its dealers performance against certain
specified standards like Sales, Inventory levels, Customer Delivery time,
Customer Satisfaction Index. Time to time, Dealerships Surveys are conducted
by company officials and then rankings are given to the dealers. The dealers
having high ranking are given incentives. The underperformers are provided with
customized counseling, training and motivation.

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

Its uses many different techniques of Advertisement as a part of its Advertising

Strategy.
Most of the Print Ads of Toyota Corolla are individually targeted at one of these
factors such as Comfort, Performance, Styling, Power, Leg Room, Design,
Driving Pleasure. One most common feature of almost all the Ads is that in every
Advertisement, the fact that it is the Worlds Largest Selling Car and its presence
across 160 countries is present. This is done to because the company wants to
differentiate the product in terms of its Reliability that it is an entrusted brand of
30 Million people across the globe. The fact that it is present in 160 countries
proves that it is a Global Car.
There are 3 TV Commercials of this Car in India. The Commercials show that this
Car is targeted mainly at the Indian youth and young Executive. It has been
positioned as a little sportier which is the main reason that it is for young people
and is also like by them too.
The Brochures, Posters/Leaflets are such designed that shows that Corolla is a
car for people who demand Performance, Style, Power and Sheer Driving
Pleasure. The car being a perfect combination of these factors makes it a huge
success across its segment.
The Other Sources of Advertisement include Bill Boards, Display Signs, POP,
Displays, Symbol/Logo. The company does the Advertising of Corolla by
displaying Bill Boards and Display Signs at various target places where it feels
that prospective buyer will come across it. At the showroom also, there are huge
amount of Point Of Purchase Displays and also Symbols/Logo which add to it.

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.

Public Relations and Community Building Excercise

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

SHOWROOM INTERIOR AND EXTERIOR

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 SURVEY REPORT

A Market survey was conducted on Toyota Corolla. The objective of the survey
was to find out the Consumer Tastes and Preferences, Consumption Pattern and
changes in Lifestyle Dimension after the purchase of Corolla.
The survey shows the following results:

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%.

CURRENT SITUATION OF THE MARKET

Present Market Share Of the Segment

TO SUM UP, THE OVERALL PICTURE

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

increased by 109%, 8.5% of commercial vehicles, and 6% of 2-wheeler

sales.
This huge increase in the A4-A6 i.e. 109% clearly shows that this segment is
really growing at a huge pace and there exists a huge potential in this segment in
the future. This segment is going to grow at a much faster pace in the near future
as the trend in our country is shifting towards upgradation of cars. Those in the
A2 segment are moving towards Lower A3 or Upper A3 segment, from
Lower/Upper A3 movement can be seen towards A4 and so on. This is mainly
due to Overall Higher Economic Growth. There is an Overall Growth in the
Automotive Sector in our country. Also many new Players are entering our
Market at high rate. We can see that companies like Nissan, BMW, and
Mercedes have entered our Price Conscious Indian Market with their Very Highly
Priced Products. And their products are also selling in the market. This shows
that there is a place for Expensive Cars in our highly price conscious Indian
Market. New Global Majors like Audi, Ferrari, and Lamborghini etc. are very soon
entering our market with their highly expensive products. Indians have started to
buy expensive products and are upgrading their Standard of Living.
The A4/ C++ Segment is going to grow big in the coming years. The segment is
expected to double its size by the end of next fiscal.

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.

The Objective for the next 2 years is to strengthen the position as a

Market Leader through properly designed Marketing Strategy and Product
Improvement Strategy.
As the Segment is expected to double the size by the end of next year, the
strategy is to increase the production output.
Also, in the study it has been found out that the competitors like Skoda is
going to recently give a facelift to their Octavia model which may possibly
will result in increased sales for Octavia. So a proactive counter strategy
should be readied before time.
As the No.4, i.e. Hyundai Elantra in the segment is not doing well; the
strategy should be to attack its market share through aggressive
comparison advertising with it.
The main competitor i.e. Chevy Optra is very bullish player. It also has a
lower Engine Displacement model available for under 8 Lacs. If it is
possible, a model with lower engine displacement and less features
should be introduced soon to attack Optra 1.6.
As the car has won so many prestigious Awards in Customer Satisfaction
and Overall Quality from Worlds Most Reputed Survey Agency JD Power
Asia Pacific, the stress should be given on using this as a powerful tool in
the Marketing Strategy.
News is also there that Honda is bringing its World famous Civic Model in
the Indian Market in the same segment in which Corolla exists. So there
will be the entry of this new player, therefore a proactive strategy is to be
made for the same.
Also we know that the Corolla sold in India is a 9 th Generation Model of
Corolla but Worldwide in most of the countries, the 10 th Generation model
has already been launched, 10th Generation model can also be started to
be manufactured in India.

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

Consolidate the Position as the Market Leader through well designed

Marketing Strategy and Product Improvement Strategy.
Developing Proactive Strategies for counter acting Increasing
Competition from Existing Players Like Octavia, Optra and threat of
new entrants like Honda Civic.
Developing Strategy to take on Hyundai Elantra aggressively. Its has
not been received well in the market and could only survive because of
recent price cuts.
Introduction of a Stretched Down version of Corolla to take on Optra
1.6.
To cash on the various prestigious Awards won by Corolla and its
global presence in 160 countries.
Introduce Corolla 10th Generation in India by the end of next year.