Toyota Innova

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Toyota Innova TOYOTA INNOVA Sujit Nair Pragnesh Dave Devesh Dubey Suvarna Thasale Sneha Poojari AWARDS WON BY TOYOTA INNOVA 1)J. D. power asia pacific; IQS 2011 award MUV/MPV segment 2)Auto Build: Consumer favourite large family car 2010 3)Business standard motoring: MPV of the year (2006) 4)Overdrive: UV of the year 2006 5)Business standard motoring: Best MUV 2005 6)TNS awards-Total consumer satisfaction studies : Best MUV 2005 7)NDTV –Car Awards Best MPV of the year 2006 OBJECTIVE • Toyota Innova is an interesting brand, because it redefined the MUV segment in India and also it replaced the famous Toyota Qualis when the sales of Qualis was at its peak. Toyota decided to replace Qualis because of two reasons: • Qualis was a major success among the tour operator segment but was not popular at the individual/home segment. • Second reason was the increased competition from Chevrelot Tavera which was perceived to be a more refined upmarket SUV. • Toyota also wanted to bring in the latest products in the Indian market. Qualis was only a test product. Further, Toyota wanted to appeal to the individual/home users rather than the commercial segment. INTRODUCTION COMPANY ANALYSIS • The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father’s company Toyota Industries to create automobiles. and, in 1936, its first passenger car, the Toyota AA.. • Toyota is the second largest automobile manufacturer in 2010 by production. Toyota is the ninth largest company in the world by revenue. • In July 2012 the company reported that it had manufactured its 200 millionth vehicle. INDUSTRIAL ANALYSIS • The MUV segment consists of vehicles that are suited to both rural and urban areas. In rural areas where the roads are usually bad, these vehicles are used as goods carriers and also for public transportation. • There are three segments of buyers for MUVs: the private market, Government, and the Defence. Until the 1990s, the Government and Defence segments accounted for the largest share of the market. The reduction in Government and defence spending since the 1990s has substantially reduced sales to these two segments. This has pushed private sector purchases into greater prominence. • There are three sub-segments of the UV / MUV segment: the hard-top, soft-top and pick-up. The hard-top version consists of the higher-end Sports Utility Vehicles (SUVs) that have been present in the Indian markets since FY1999. Following the success of the higher-end SUVs, the share of the hard top segment in total MUV sales has registered an increase. • That apart, soft-top sales have also been affected by a decline in rural income, increase in sales tax in some states, increase in diesel prices, enforcement of strict emission control norms, and restraints on the issue of licences to use soft-top vehicles as rural taxis. SWOT ANALYSIS STRENGTH WEAKNESS •MARKET •HIGH •LIMITED •LITTLE PENETRATIO BRAND PRESENCE IN STORAGE N NAME EUROPE AND SPACE AMERICAS •HUGE •HIGHEST DIFFICULT LOW MARKET IN MARKET FOR IN CITY INTERIOR INDIA SHARE TRAFFIC QUALITY OPPORTUNITY THREATS CHANGE IN BIGGEST NEWLY LAUNCHED CUSTOMER COMPETITOR WAS CARS PREFERNCE TO LAUNCHED IN 2005 MUV LABOUR ISSUES LOWER PRICES LABOR ISSUES IN OF MARUTI. MARUTI FACTORIES. TOYOTA KIRLOSKAR MOTORS • Toyota Kirloskar Motor Private Limited (TKM) was established in 1997 as a joint venture between Toyota (89%) and Kirloskar Group (11%). • TKM manufactures a line of Toyota vehicles, including the Corolla Altis, Fortuner, and Innova models, and imports the Camry, Prado, Land Cruiser, and Prius models. TOYOTA INNOVA • Toyota Innova is the most popular MUV (Multi Utility Vehicle) in the Indian market. • In India, the MPV replaced Toyota Qualis. • In the Indian auto market Toyota Innova is available with twelve variants. • It has a market share of 38% in the MPV segment. It is currently at an all-time high list of 7th place. COMPETITORS • Tata Safari • Mahindra XUV500 • Chevrolet Tavera • Maruti Ertiga 3.9% market share • Nissan Evolio MARKETING MIX • Product - Toyota Innova has an accommodation capacity for 8 people. • The Innova differs from the straight designs of Tata Sumo and Qualis and is instead more of a curved design. The interior of this car are designed keeping comfort in mind with spacious interiors. • Price - Toyota Innova is priced somewhere at 8-12 lacs. The pricing is definitely competitive with the extra features and comfort which Toyota Innova has at its disposal. • Place - Toyota Innova is available for distribution across the country through its dealership network and retail outlets. • Place - Toyota Innova is available for distribution across the country through its dealership network and retail outlets. • Promotion - The brand ambassador of Toyota Innova was none other than Aamir Khan, probably one of the most effective brand ambassadors in India. MARKETING STRATEGY Good Product: Innova'-ted for customers, which means it’s one of the best 2500 CC engine for the price offered. Brand Ambassador: Innova has effectively used the charisma of Aamir Khan to promote it and make it trendy and upmarket. Different from competitor: Innova distanced itself from the Qualis, its successful predecessor which is just a popular Taxi nowadays. Innovative acquisition of customers: Toyota offered 1% interest on loans for Innova buyers for very small amount of time to get the car on road. SALES FIGURE • May 2012 - New Toyota Innova 2012 sold whooping 6710 units which is higher by 127% over 2961 units sold in May 2011. • June 2012 - Toyota Innova, the bestselling compact MPV showcased a hike of 45 percent, shooting up from 4,665 units sold in June 2011 to 6,785 units sold in the last month. • July 2012 - A 39% of growth was seen in the sales of Toyota Innova as compared to the sales figures of July 2011. BCG MATRIX BCG matrix aka Boston matrix is a chart that had been created by Bruce Henderson for the Boston Consulting Group in 1970 to help corporations with analyzing their business units or product lines. The BCG matrix method is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business unit. Stars – Fortuner Question mark – Prius Cash cows - Innova Dogs – Camry Star: Toyota Fortuner falls into the category of stars. It generates large amount of cash because of its market share.but also consumes large amount of cash because of its high growth rate;therefore he cash in each direction approximately nets out. Cash cows: In case of Toyota company, innova is the cash cow for the company which generates a lot of cash for the company and the company utilizes this cash to run its future units like Toyota Fortuner etc. Question mark: According to BCG matix a question mark is such a business unit about which you are not about the success or the failure. In case of toyota their product prius falls in the category of question mark. Dogs: Toyota camry falls under this category. This category includes the product that has no market share and that consumes large amount of cash. The company want to dissolve this kind of product. .
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