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By: Zainab Ali Asghar Huma Hina Samad Baig Atiya Mateen Muslim Zareen

21270 22884 21294 22337 23024

Company Introduction:
Indus Motor Company (IMC) is a joint venture between the House of Habib

IMC was incorporated in Pakistan as a public limited company in December 1989 and started commer production in May 1993

Toyota Motor Corporation and Toyota Tsusho Corporatio have 37.5% stake in the company equity.

Company Introduction:
The manufacturing facility and offices are spread over 105 acres at Port Bin Qasim, Karachi. The company invests heavily in training its 2,000 strong workforce of team members and management employees The company has played a major role in the development of the entire value chain of the local auto industry and is proud to have contributed in poverty alleviation at the grass root level by nurturing localization

Company Introduction:
Vision: To be the most respected and successful enterprise, delight customers with a wide range of products and solutions in the automobile industry with the best people and best technology.

Company Introduction:
Mission: Mission of Toyota is to provide safe & sound journey. Toyota is developing various new technologies from the perspective of energy saving and diversifying energy sources. Environment has been first and most important issue in priorities of Toyota and working toward creating a prosperous society and clean world.

Company Introduction:
Slogan: ACT#1: Actions, Commitment and Teamwork to become No.1.

Company Introduction:
Senior General Director General Manager Manager Marketing & Marketing Marketing Sales Manager Marketing Passenger Vehicle AM PV Management Trainee Management Trainee AM CV Management Trainee Management Trainee

Manager Marketing Commercial Vehicle

Marketing Mix 4Ps


Product Type: Passenger Vehicle Doors: 5 Seating Capacity: 7 Engine: 2000CC + Category: SUVs

Marketing Mix 4Ps


Price Ex Factory Price: *18% GST & 10% FED**: Place Available all over Pakistan at their 35 exclusive distributers PKR. 5,742,000/PKR. 5,791,000/-

Marketing Mix 4Ps


Promotion Promotion of Toyota Fortuner has been done via following Channels: TV Commercials Magazines Newspapers Billboards Online, Social Media, Facebook, and Twitter

Marketing Mix Strategies 4Ps


Product Strategy:
Machine Model Brand: Toyota Brand: Honda Brand: Suzuki Coure, Alto, 800 CC Mehran 1000 CC 1300 CC 1600 CC 1800 CC 2000 CC + Corolla Xli Corolla Gli Corolla Gli New Hilux & Vigo (CV) Civic Prosmatic Civic Vti Civic Atlas, Orial Civic Accord Cultus Swift Baleno Aerio

Marketing Mix Strategies 4Ps


Pricing Strategy:
Car Names Land Cruiser New Average Price 130 to 170 Million Car Names Civic Atlas MT New Average Price 20 Million

Parado New
Land Cruiser Used Parado Used Civic Accord New

110 to 150 Million


80 Million 70 Million 75 Million 5 Seated G A P

Corolla Gli New


Corolla Xli New Suzuki Swift New Suzuki Cultus New Suzuki Coure, Alto Suzuki Mehran New

18 Million
15 Million 11 Million 10 Million 9 Million 7 Million

Civic Atlas AP New

24 25 Million

Marketing Mix Strategies 4Ps


Pricing Strategy:
PRICE INFLATION & PURCHASING POWER:

Car Price Min


Year 2006 Year 2013 55 Million 80 Million

Car Price Max


75 Million 150 Million

Marketing Mix Strategies 4Ps


Pricing Strategy:
ANALYZING MARKET POTENTIAL:

Total Market Car Sales Figure


2500 2000 2000 1500 1000 1000 500 0 2006 2007 2008 2009 2010 2011 2012 2013 800 1800 2000

700
500 500

Marketing Mix Strategies 4Ps


Placement Strategy:

They have launched their model in 2013 1st Quarter, practically on 8th of March 2013 to all over the Pakistan. According to the research the demand of cars are high in the first Quarter of every year and then it reduces gradually. 4th Quarter is seemed to become the off season of buying cars. They have sent 2 models of Fortuner to their 35 dealer in Pakistan before commercialization.

Marketing Mix Strategies 4Ps


Placement Strategy:
Place Islamabad Days in Delivery from March 1, 2013 7 Dispatch Date 1 Mar 13

Lahore
Multan Rawalpindi Quetta Hyderabad Karachi

6
5 4 2-3 1 Same Day

2 Mar 13
3 Mar 13 4 Mar 13 5 Mar 13 6 Mar 13 7 Mar 13

Marketing Mix Strategies 4Ps


Placement Strategy:

Sneak Previews Strategy: Sneak Preview is basically inviting selected potential customer to a place for giving demo of the product.

Indus Motors have run their Sneak Previews in 3 major cities in Pakist at following stations followed by Hi-tea.

Marketing Mix Strategies 4Ps


Placement Strategy:
Cities Targeted In Pakistan Location where the Event was organized

Karachi Lahore

PC 250 Customers have attended PC 300 Customers have attended Holiday / Hospitality Inn 210 Customer have

Islamabad

attended the event.

Marketing Mix Strategies 4Ps


Placement Strategy:

BTL Below the Line; 2nd Strategy (to be approved): Marketing team has a plan to display Fortuner at malls (during this Eid festival) so that Customers will get aware about this new SUV 7 seated luxury car.

Marketing Mix Strategies 4Ps


Placement Strategy:

BTL Below the Line; 3rd Strategy (to be implemented in the stage of maturity): a.To make costumed car

b.Implement CNG
c.Arrange in different colors

d.Manual Gear System as per the requirement of the Customer

Advertising Campaign:
In their Ad Campaigns they have focused prestige and high profile 1. First Campaign was launched as SNEAKS PREVIEW which was just before the launch 2. Secondly, they have advertized via billboard in 3 major cities Karachi, Lahore and Islamabad in Pakistan for mass marketing 3. Then, they have advertize on TV Commercials for mass marketing their media partners have advised the timings for the Ad 4. With the TV Commercials they have also used newspaper print media

In the end they have run radio campaign of FM 105, 101 and 89

Commercial Ad

Product Life Cycle: Tentative Data:


Description Investment Sales in Nos. 0 800 (already sold) + Introduction - Year 1 800 Growth - Year 2 Maturity - Year 3 & 4 Decline - Year 5 Total: 12000 Forecast 16650 Forecast 8000 Forecast 38000 Units 5000 13000 2000 20,000 in Million 500 Profit in Millions -500

Product Life Cycle:


18000 16000 14000 12000 10000 8000 6000 4000 2000 0 -2000 Planning Investment Introduction Growth - Year 1 Year 2 Maturity - Decline Year 3 & 4 Year 5 Sales Profit

Market Segmentation Demographics: Size, Age and Occupation

Target Marketing Demographics: Upper class population, above 25 years of age and executive class

Positioning Product and Services Toyota is providing brand new SUV with comparatively low price 100% imported spare parts have been used Assembling is as per the quality standard of Toyota Japan They have Japanese team to control and train the SOPs Toyota is providing 2 years Service and spare parts warranty Channel Only through Distributer via 3S (sales, service and spare parts) People

Psychographics Upper social class, Life Style, Personality Traits Economic Factor

Psychographics Upper Social Class, who are having large families, prestige Economic Factor

Price factor and competition


Political Factor Inflation analysis and purchasing power CPI

Less price for new car and there is no direct competition


Political Factor Willingness to buy new car at 57 million instead of used car at 70 million

They have targeted all upper class executives above 25 years of age
Image To give a feeling of luxury and high prestige.

SWOT Analysis
H E L P F U L I N T 1. 2. Strength Highly experienced and trained staff Employees Training has been done every 2 years 1. 2. H A R M F U L Weakness Production Constraint Lack of Expertise in Localization

E
R N A L

3.
4. 5. 6. 7. 8. 9.

99.99% Quality Assurance 6 Sigma


Brand Equity of Toyota QDR (Quality, Durability and Reliability) In house Manufacturing Facility (Art of the State) After Sales Service Dealership Network No direct competitor so far

3.

Demand and Supply Gap is + 15%

SWOT Analysis
Opportunities
E X T E R N A L 4. 3. 1. 2. Market Expansion 60% duties on the import of spare parts instead of 200% duty of import of Cars Export: a. b. India Bangladesh 1. 2. 3. Used Car Policy Foreign Exchange Import Duties

Threats

New Product variants and enhancements.

Sales Report
Sales
Year 2013
Mar-13 Apr-13 Unit Sold 100 100 Amount in Million 5700 5700

Cost
Amount in Millions 4800 4800

Revenue
In Millions 900 900

May-13
Jun-13 Jul-13 Total

200
250 150

11400
14250 8550 45600

9600
12000 7200 38400

1800
2250 1350 7200

Sales Report from Mar 2013


16000 14000 12000 In Millions 10000 8000 6000 4000 2000 0 Amount in Million Amount in Millions

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Market Share of Toyota Fortuner From Mar 2013 to Date


Land Cruiser - Used 3%

Market Share

Parado Used 6%

Sales

Units

M.S.
Fortuner Parado - Used

Fortuner Parado Used Land cruiser Used

800 58 24

91% 7% 3%
Fortuner 91%

Land Cruiser Used

Conclusion
Product Mix Hybrid Pricing

Product

Price

Target Market
Place Geographic Promotion All tools

Conclusion:
Toyota should prioritize production plan and improve their capacity, investment is required. Reduce supply and demand gap by implementing DMS (Distributer Management System). Used improved technology and highly trained staff to manufacture majority spare parts locally

Any Questions ?