toyota project
TRANSCRIPT
“AN ERA OF ESTEEM”
-1-Indus Motor Company Ltd.
Our vision
To be the most respected and successful
enterprise, delighting customers with a wide
range of products and solutions in the
automobile industry with the best people and the
best technology.
-2-Indus Motor Company Ltd.
TOYODA LOOMS: It all started back in 1926 when Mr. Sakichi Toyoda founded
this corporation as one of the leading company in Japan as TOYODA
AUTOMATIC LOOM WORKS Ltd. Mr. Sakichi Toyoda was born in 1867 and up
till 1900, he became one of the very well known industrialists. Than in September
1933 Automobile department was established within TOYODA AUTOMATIC
LOOM WORKS and in September 1934, this automobile department of the
company manufactured its first Type A engine and based on this engine first
prototype MODEL A1 passenger car was completed.
TOYOTA Motors Corporation: Then in August 1937 TOYODA separated its
automobile department as another company named TOYOTA MOTORS
COMPANY Ltd. I must mention here that Mr. Kiichiro Toyoda, son of Mr. Sakichi
Toyoda, established TOYOTA motor company. Within the 10th year of its
establishment, TOYOTA started production of Model AA passenger car. During
1956, TOYOTA entered industrial vehicle field by marketing its one of the very
popular Model LA forklift. As the company is now in its 66 th year its has been a
smooth journey of ideal management. In 1950 the company faced its one and
only strike that was controlled easily. In late 1950s, production system of the
company was improved that is considered one of the most effective production
systems during those times.
Expansion: In late 1970s, TOYOTA motors established TOYOTA metal Co. It is
TOYOTA’s own recycling plant. In 1975, TOYOTA entered prefabricated housing
industry by starting operations at kinuura plant. These activities are continued
and managed by TOYOTA at a regular pace.
-3-Indus Motor Company Ltd.
It must be worth mentioning here that TOYOTA has produced its 100,000,000 th
domestic vehicle of Japan in October 1999.
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.
Variety: When it comes to talks of producing a wide variety, TOYOTA has its
name on top. TOYOTA is producing a range of automobiles ranging from a high-
speed sports car like SUPRA to a grand luxury saloon like LEXUS. COROLLA is
one of the most popular brands of TOYOTA in different countries of world.
Globalization: Production of vehicles outside Japan began in 1959 at a small
place in Brazil and continued with a growing network of overseas plants.
TOYOTA believes in localizing its operations to provide customers with the
product they need where they need them; this philosophy builds mutually
beneficial long-term relationship with local suppliers and local labors and off
course customers. Global TOYOTA is a dream and mission of TOYOTA Motor
Corporation. Since its beginning TOYOTA has planned to be a world wide
automobile company and for this very reason TOYOTA has established a
network of production in many countries of world. At the time TOYOTA is
producing vehicles in 118 countries of world; one of the largest manufacturing
network in automobile industry. It took a long time to reach at this mark and the
process has been done step by step. Here is some information regarding start of
manufacturing activity of TOYOTA in some important countries:
-4-Indus Motor Company Ltd.
Name of Country Year of start of production
Taiwan 1949
Taiwan 1959
South Africa 1961
New Zealand 1966
Indonesia 1970
France 1971
Australia 1977
United States 1984
Germany 1988
These are some of the highlights of start of TOYOTA manufacturing in different
countries. It will need dozens of pages to give you details of this activity.
TOYOTA is the world’s third largest manufacturer of automobiles in unit sales
and 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. In the time it has taken you to read this paragraph, TOYOTA will have
produced at least another three or four cars!
-5-Indus Motor Company Ltd.
TOYOTA IN PAKISTAN
-6-Indus Motor Company Ltd.
WELCOME TO
INDUS MOTOR COMPANY Ltd.
Our Core Values
Product Quality
-7-Indus Motor Company Ltd.
Customer Satisfaction
Team Work
Employee Care
Ethical & Honest Practices
In Pakistan TOYOTA has started its manufacturing activity in July 01, 1990 with
the name of Indus Motor Company Ltd. Indus Motor Company Ltd. Is a joint
venture between the ‘House of Habib’, ‘TOYOTA Motor Corporation Japan
(TMC)’, and ‘TOYOTA Tsusho Corporation Japan’ for assembling, progressive
manufacturing and marketing of TOYOTA vehicles in Pakistan. Indus Motor
Company Ltd. Is engaged in sole dealership of TOYOTA and Daihatsu Motor
Company Ltd. Vehicles in Pakistan through its dealership network.
Incorporation: The Company was incorporated in Pakistan as a public limited
company in December 1989 and started commercial production in May 1993. In
addition, since than it has become the largest manufacturer of cars in Pakistan.
The shares of company are quoted on the stock exchanges of Pakistan. Toyota
-8-Indus Motor Company Ltd.
Motor Corporation and Toyota Tsusho Corporation have 25 % stake in the
company equity. The majority shareholder is the House of Habib with 50 % of the
equity.
Plant: Indus Motor Company Ltd.'s production facilities are located at Port Bin
Qasim Industrial Zone near Karachi in an area measuring over 105 acres. It must
be worth mentioning here that Indus Motor Company’s plant here in Karachi is
the only manufacturing site in the world where both Toyota and Daihatsu brands
are being manufactured.
Heavy investment was made to build its production facilities based on state of art
technologies. World-renowned Toyota Production Systems are implemented to
ensure highest level of productivity.
Company Information: Indus Motor Company Ltd. is operating in Pakistan
under the guidance of TOYOTA motor corporation Japan. Here is some
information about management of company.
Board of Directors
Mr. Ali S. Habib Chairman
Executive Directors
Mr. Yutaka Arae Vice Chairman
Mr. M. Allays Sure
Non-Executive Directors
Mr. Farhad Zulfiqar
Mr. A. Okabe
-9-Indus Motor Company Ltd.
Mr. K. Furubayashi
Mr. Muhammad Ali R. Habib
Chief Executive Officer
Mr. Mazhar Valjee
Company Secretary
Mr. Qasim Pervaiz
Audit Committee Member
Mr. Muhammad Ali R. Habib
Mr. Farhad Zulfiqar/Mr. Kersi Kapadia (Alternative)
Mr. K Furubayashi/ Mr. M Takeda (Alternative)
Environmental Policy: Environment is a major concern of TOYOTA and Indus
Motor Company Ltd. And that is why Indus Motor Company Ltd. Have defined an
environmental policy and is strictly following that. As stated by Indus Motor
Company Ltd.
WE AS A TEAM INDUS MOTOR ARE COMMITTED TO CONTINUOUSLY
IMPROVE OUR ENVIRONMENTAL MANAGEMENT SYSTEM TO:
IDENTIFY AND AVOID/MITIGATE THOSE ENVIRONMENTAL ASPECTS
WHICH HAVE NEGATIVE ENVIRONMENTAL IMPACTS.
COMPLY WITH ALL APPLICABLE LEGAL, REGULATORY AND OTHER
REQUIREMENTS.
ASSIST SOCIETY BY MAKING THE ENVIRONMENT FRIENDLIER.
Environment is primary issue when determining the policies of TOYOTA and
related, that is the reason for defining an environmental policy that is very
-10-Indus Motor Company Ltd.
directive and pointed to the main aim. TOYOTA executive summarize this
environmental policy in one sentence as
“Safer and Cleaner Environment for All”
Indus Motor Company Ltd. Is the first passenger car manufacturer in Pakistan
automobile industry to acquire ISO 14001 which in itself shows Indus Motor
Company Ltd.’s commitment and concern establishment of an effective
management system? Another achievement of Indus Motor Company Ltd. in
regards of environment was the changing over of all hot water generators and
ovens to natural gas. This was another initiative that Indus took towards
reduction of pollution.
-11-Indus Motor Company Ltd.
The All New
COROLLA 2003
Break into Style
-12-Indus Motor Company Ltd.
Trend
Setters
-13-Indus Motor Company Ltd.
New COROLLA
Debut!
Enjoy the Excellence of Z-Generation!
-14-Indus Motor Company Ltd.
”It took us seven years to plan its design, its style, its launch and every thing”
says Mr. Asif Aleem of Indus Motor Company Ltd. Regional office at Islamabad.
After a long period of 9 years, TOYOTA decided to change its model in Pakistan.
For this they started planning since 1997. Actually back in 1997, TOYOTA
launched a model of COROLLA, with round lights and it was small in size too, in
15 countries. TOYOTA Indus Motor Company Ltd. Was also gave the option of
getting this model for production but Indus Motor Company Ltd. Refused. “The
image of COROLLA in Pakistan is of a big, heavy, comfortable and a luxury car
and we did not want to disturb it by introducing a small and sports looking
COROLLA” says Mr. Asif Aleem. COROLLA is a status symbol in Pakistan and
for this reason Indus Motor Company Ltd. Opted for the model of COROLLA to
be launched in year 2002. Simultaneously in Japan research was going on for
this model and after a four year research TOYOTA Motor Corporation Japan
produced its first prototype of the car. Then TOYOTA Japan invited all its
progressive customers for survey and in 2001 TOYOTA Motor Corporation Japan
started production of COROLLA S model.
Launch in Pakistan: Here in Pakistan Indus Motor Company Ltd. has planned
three years for the launch of new car. During the past 9 years, Indus Motor
Company Ltd. has introduced many innovations in COROLLA but the shape and
design was same.
On March 2, 2002, the company launched New TOYOTA COROLLA in Pakistan
in a ceremony held in Karachi. Initially COROLLA is launched in six different
categories
-15-Indus Motor Company Ltd.
COROLLA XLI 1.3 EFI
COROLLA GLI 1.3 EFI
COROLLA SE Saloon 1.6 EFI Manual
COROLLA SE Saloon 1.6 EFI Auto
COROLLA 2.0D
COROLLA 2.0D Saloon
Apart from Karachi it was launched in all the country at COROLLA dealer’s outlet
and almost every dealer held ceremonies at this occasion. “We arranged a fifteen
day festival at our showroom and kept open till late hours during the first fifteen
days” says Ms. Lubna N. Malik sales executive of Rawal Motors Rawalpindi.
TOYOTA Multan Motors Multan’s official says, “We have never seen such a rush
of people at TOYOTA and the important thing is that, whoever is coming to visit
our showroom, he or she is going back satisfied and majority of the visitors are
buyers”. Many of the dealers are providing test drive to their visitors.
Jump Start: Since its launch in 2002 the new COROLLA has achieved a
tremendous response and is all set to achieve No. 1 market share in its class.
Indus Motor Company Ltd. Management being conscious of the strong desire of
the customers to own and drive the new COROLLA has responded by enhancing
production of the New COROLLA by 35%.
-16-Indus Motor Company Ltd.
MARKET OVERVIEW
Since its start back in 1990, Indus Motor Company Ltd. has enjoyed the status of
leader because the name it is reproducing is of TOYOTA. Market of automobile
in Pakistan is well established and it clearly states the self-actualization need of
Pakistani consumers. Before Indus Motor Company Ltd.’s launch TOYOTA has a
well-built network of sales that was overtaken by Indus Motor Company Ltd.
Pakistani automobile market consist of Manufacturer like Indus Motor Company
Ltd. Honda Atlas Motors and Pak Suzuki Motors and Importer that are wide
spread in country in shape of dealers. To lead in this environment Indus Motor
Company Ltd. has extended its product line of COROLLA to six and is operating
a product mix of three categories.
Our most target markets are upper middle class, upper class, upper class,
government and resellers. They are executives, managers, businessmen,
landlords, politicians, dealers, government offices and armed forces. Here are
some details of market segments:
Government offices: Pakistani government is an important customer that is
known for their bulk purchase. Although government purchase almost all the
brands present in Pakistani automobiles but its attention towards Indus Motor
Company Ltd. has caused us to give special attendance to the government.
-17-Indus Motor Company Ltd.
Armed Forces: Pakistani army has set a tradition of giving a TOYOTA vehicle to
its officers who cross the rank of Colonel. Before the launch of new COROLLA,
TOYOTA CORONA has served Pakistan Army for almost 20 years but now
Armed forces are purchasing COROLLA for this purpose.
Consumers: Our largest segment of market is consumers. Indus Motor
Company Ltd. is well aware of this fact that this is the segment that gives
feedback and value to our product because they are the ultimate buyers.
Pakistan is a developing country and that’s why consumers of TOYOTA are
upper middle class, upper class and upper class. These are executives,
managers, businessmen landlords and politicians. To meet the needs of middle
class Indus Motor Company Ltd. has acquired the production of DAIHATSU
Company and is producing CUORE that is proving to be another successive step
of Indus Motor Company Ltd.
Business Buyers: last but not the least is our business buyer who buys the
product for the sake of profit. “It never disappointed us” says a dealer.
Market Needs: Pakistan is developing a vast market of automobile that needs
proper placement of product. When someone enters in competition with Indus
Motor Company Ltd. they have to build quality products like COROLLA, HILUX
and CUORE, they have to establish a dealer’s network all over the country like
that of Indus Motor Company Ltd.’s and have to care for the customers. These
are the ingredients that have helped Indus Motor Company Ltd. to meet market
needs.
-18-Indus Motor Company Ltd.
We have customers who trust us for reliability, performance, safety, status,
functionality and care. They understand the fact that it is not possible to get all
these things at the same time from some one else.
-19-Indus Motor Company Ltd.
PRODUCT STRATEGY
Worldwide acceptance of TOYOTA is proof of its best quality products. Indus
Motor Company Ltd. has stepped in this race in 1991 by producing COROLLA
XE. Then it has continued innovations like COROLLA GL, Gli and 2.0D. At the
same time it acquired the ownership of manufacturing facility from DAIHATSU
and started the production of CUORE. The third category of production is of
carriage van that Indus Motor Company Ltd. is engaged with by producing
HILUX.
Idea: it is hard to tell that from where the idea has came but it is for sure that it
was generated seven years ago. As we have already mentioned its idea was
established in Japan and TOYOTA Motor Corporation Japan started the process
of idea generation, screening and testing somewhere in 1995.
Prototype Development: First prototype of COROLLA 2002 was developed in
1997 in TOYOTA Motor Corporation Japan. Than TOYOTA Motor Corporation
-20-Indus Motor Company Ltd.
invited its customer for survey and testing and after progressive tests they started
its production in 2001 in Japan.
Worldwide Distribution: After start of its production in Japan, TOYOTA Motor
Corporation started the process of worldwide distribution and new COROLLA is
now being produced in 65 countries of world. As already mentioned, Indus Motor
Company Ltd. has got these rights in 2002.
Testing and Survey: There are 28 dealers in Pakistan of Indus Motor Company
Ltd., of these provided test drive to their customers and for this they sent formal
invitations. TOYOTA Multan Motors Multan’s official says, “We have never seen
such a rush of people at TOYOTA and the important thing is that, whoever is
coming to visit our showroom, he or she is going back satisfied and majority of
the visitors are buyers”.
Quality: “Our name is the assurance of quality” says Indus Motor Company Ltd.
Officials. The company pays foremost attention to the quality of its products and
to its manufacturing processes and has therefore acquired ISO 9002 certification
back in the year 1999 and the certificate has been further renewed for three
years in august 2002.
WE AS A TEAM AT INDUS MOTOR ARE COMMITTED TO FOCUS ALL OUR
ACTIVITIES LEADING TO:
MANUFACTURING HIGH QUALITY PRODUCTS.
CUSTOMER SATISFACTION.
SERVICE TO SOCIETY.
MAINTAIN MARKET LEADERSHIP.
-21-Indus Motor Company Ltd.
Standard Features: Following are some important features provided in COROLLA
2002
BasicCOROLLA Sedan
Specification 1.3L XLI 1.3L GLI 1.6LSE Saloon
1.6L SE Saloon A/T
2.0D 2.0D Saloon
Exterior- L*W*H (mm) 4530*1705*1480
Interior- L*W*H (mm) 1915*1430*1230Wheel Base (mm) 2600Minimum Turning Radius 4.6mEngine Type 2NZ-FE 3ZZ-FE 2CEngine Displacement cc 1299 1598 1975Fuel System EFI Fuel InjectionTransmission 5 M/T 4 A/T (ECT) 5 M/TBrakes FR/RR Ventilated Disc/DiscSuspension FR/RR Leading Arm, Machpherson Strut Coil Spring/ETA Torsion BeamStabilizer Bar Front/RearSteering System PowerTires 175/70 R14 175/70 R14 185/65 R14 185/65 R14 175/70 R14 185/65 R14Fuel Cut System No No Yes Yes No Yes
ExteriorAntenna Manual Pillar TypeBumpers ColoredCrystal Headlight 4 Lamp Multi-reflectorDoor Mirrors Manual Power (Colored) Manual PowerDoor Sash Back YesFront Wiper Intermittent Var-Intermittent Intermittent Var-
IntermittentHigh Mounted Stop Lamp No Yes Yes Yes No Yes
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Tinted Windscreen YesMud Flaps FR/RR Black Black Colored Black Black ColoredRR Garnish ColoredSide Impact Bars YesSide Protection Molding Black Colored Black ColoredSideskirts No Colored No ColoredWheel Caps Full No FullWheel Rims Steel Alloy Steel
InteriorAir Conditioner YesCentral Door Locking No Yes Yes Yes No YesDigital Clock YesDigital Trip Meter YesDoor Trim Vinyl Fabric Vinyl FabricFoot Rest YesHeater YesKey Reminder Warning YesLeather Gear Shift Knob No No Yes Yes No YesLight On Warning YesOptitron Meter No No Yes Yes No YesPower Windows No Yes Yes Yes No YesReverse Gear Warning No No No Yes No NoRR Console Box W/Lid W/Lid W/2 Level Lid (F) W/Lid W/2 Level Lid RR Head Rest AdjustableRoof Lining MouldedSeat Belt (FR) 3 Point ELR x 2 (W/ Adjustable Anchorage)
Seat Belt (RR) No3 Point ELR x 2
Lap Type x 1 3 Point ELR x 2 Lap Type xSeat Material FabricShift Position Indicator No No No Yes X XSpeakers 2 4 6 2 6SRS Air Bag (Driver)
No Electronic No Electronic
Steering Wheel 3 Spoke 4 Spoke Leather 3 Spoke4 Spoke Leather
Sunvisor D + P W/Mirror and Card HolderTachometer No Yes Yes Yes No YesTilt Steering YesTrunk Lamp Yes
Wood Grain Finish Centre Console No No Yes Yes No Yes
Wood Grain Finish Arm Rest No No Yes Yes No Yes
-23-Indus Motor Company Ltd.
New COROLLA Design Concept: In an effort to appeal more the Young at
Heart people, the New Corolla is aimed at offering the Pakistani Customer with
World-size Wheelbase and Height to achieve more interior space, luxury and a
sporty look. We call it NCV. “New Century Vehicle” Many things in our life get
bigger as society and the environment change, or smaller as technology
advances. Toyota Engineers designed the Corolla by setting aside conventional
ideas such as, "This class of car must be this size". Making the Corolla bigger
was a natural consequence of today's trends. Toyota used large dimensions
everywhere, and created an entirely new and attractive styling for all people to
love.
Performance: Designed for style, engineered for performance, the new Corolla
offers all the technology for an outstanding performance. A dynamic new Z-
Generation Twin Cam engine for more power and control. Innovative new front
and rear suspensions that are even stronger and more flexible. Just turn the key
and take off on the best on ride of your life. ZZ-engine DOHC Mechanism Twin
Cam Technology Advantage New Z-Generation Lightweight DOHC High
Mechanism Twin Cam EFI Engine delivers greatly increased power and torque
throughout low to medium rpm for quick acceleration, enhanced performance
and better fuel economy. A High Engine demands a high-speed transmission.
Toyota is proud to introduce the ECT, an advanced technology, lightweight,
compact 4-speed automatic transmission. A shift lock mechanism is incorporated
to minimize the possibility of incorrect operation of the automatic transaxle.
-24-Indus Motor Company Ltd.
Break into Style: Inspired by Toyota passion for driving and rich Corolla
heritage, and fuelled by our ambition to create a new generation. Corolla that
would set the standards in its class, the New Corolla does just that. Sleek, sporty
looks, an exciting new driving style. It’s the car for people who know what’s
happening. Who shape the time? People like you. Break into style with the new
corolla. Sheer Style, anyway you look at it.
Branding: Indus Motor Company Ltd. has a license of production from TOYOTA
Motor Corporation Japan. Although it is not mentioned in its financial statements
but according to an estimate TOYOTA has brand equity equivalent to $29
billions. In 2002 Indus Motor Company Ltd. has extended its product line by
starting the production of COROLLA 2002. To extend its product’s life cycle
Indus Motor Company Ltd. has been introducing innovations in last model of
COROLLA but after a long period of 9 years it was now needed that Indus Motor
Company Ltd. may introduce a new model. Also because Honda Atlas introduced
its CIVIC Prosmetic last year, the need for a new car was boasted.
Product Line: Corolla’s product line consists of six products. It will be worth
mentioning that Indus Motor Company Ltd. started the production of all these six
models at the same time. Corolla’s product line is as follows:
COROLLA XLI 1.3 EFI
COROLLA GLI 1.3 EFI
COROLLA SE Saloon 1.6 EFI Manual
COROLLA SE Saloon 1.6 EFI Auto
COROLLA 2.0D
-25-Indus Motor Company Ltd.
COROLLA 2.0D Saloon
Indus Motor Company Ltd. has kept lengthening its product line throughout the
years. In 1993 it introduced COROLLA XE and in 1994 COROLLA GL. Than in
1995 Indus Motor Company Ltd. introduced COROLLA GLi and 1996 was the
year of introduction of COROLLA 2.0D that proved to be the most successful
model for Indus Motor Company Ltd. Than apparently management called for a
halt in product line and kept their product alive by eventually introducing
innovations like crystal lights, colored bumpers, power transmission etc.
Product Mix: Indus Motor Company Ltd. is operating 3 product mixes
simultaneously; first is TOYOTA COROLLA that includes 6 models, second is
TOYOTA HILUX that includes 1 model of carriage van and the Third one is
DAIHATSU CUORE that includes 2 models of small economy cars. Indus Motor
Company Ltd.’s product lines are consistent in so for as they are consumer
products that go through the same distribution channel and they perform same
functions for the buyer.
Support Services: Less expensive after sales services and high resale value
are considered the main augmentation of COROLLA. Indus Motor Company Ltd.
has a dealer’s network of 28 dealers spread throughout Pakistan with 3S (Sales,
Service, Spare Parts) network making the after sales services in reach of every
customer where ever they are. Indus Motor Company Ltd. offer a free checkup
and tuning during 1000 miles of purchase and a complete warranty of 1 year or
20,000 (which ever comes first)
-26-Indus Motor Company Ltd.
-27-Indus Motor Company Ltd.
TOYOTA’S
PRICING STRATEGY
As already mentioned, target market of Indus Motor Company Ltd. is upper
middle class, upper class, upper class, government and resellers. Pricing plays a
vital role in success of any product. It should be reasonable enough to meet the
-28-Indus Motor Company Ltd.
requirements of target customers and not reasonable enough to cut the profit of
manufacturers.
Strategy: Internationally TOYOTA is using a pricing strategy that is a blend of
general pricing approaches i.e. cost based, value based and competition based
pricing. But the important and main approach is cost based pricing. Indus Motor
Company Ltd. charges their customer a price that is based on these three things;
Manufacturing cost
Taxes imposed by Government
Profit
Manufacturing cost is determined by company, taxes are imposed by
Government and profit is determined by the buyer’s value (determined by
surveys). It is worth mentioning here that high taxes from government of Pakistan
also cause the price to accelerate.
While launching a new product Indus Motor Company Ltd. comes into market
with a premium strategy + penetrating price with respect to its major competitors.
There is a difference of almost 100,000 in TOYOTA COROLLA 2.0D Saloon and
HONDA CIVIC VTI ORIEL Prosmetic. This surely gives TOYOTA a competitive
edge upon its competitors of same category. As we know that price is the most
flexible P of Marketing but this is not applicable in case of COROLLA, because
Indus Motor Company Ltd. keeps its prices same and the change in prices
occurs only due to the change in some government policy.
In Pakistan Indus Motor Company Ltd. is in operation with an FOB-origin Pricing. Along
with the Ex-Factory price customer is supposed to pay the freight charges from factory
-29-Indus Motor Company Ltd.
that is located at Port Qasim Karachi to their destination. Indus Motor Company Ltd. has
priced its product line of COROLLA according to the quality they offer in different
models. Following are the prices of COROLLA 2002.
Model Price *
1.3L XLI 849,000
1.3L GLi 939,000
1.6L SE Saloon 1,079,000
1.6L SE Saloon A/T 1,169,000
2.0D 999,000
2.0D Saloon 1,189,000
*= Ex-factory price. Subject to change without prior notice. Does not include freight charges.
-30-Indus Motor Company Ltd.
PROMOTION STRATEGY
Name of TOYOTA is as much established that it does not require much efforts in
promotions. But Indus Motor Company Ltd. has tried to change its promotional
plan for COROLLA 2002 from “prestige and luxury” to “passion and style”.
“Passion is the major emphasis of our promotional plan for this car. If you have
passion, you deserve this car” says Mr. Asif Aleem of Indus Motor Company Ltd.
regional office Islamabad.
Advertising: For the first time in Pakistan Indus Motor Company Ltd. has
launched an ad on Television. This ad too supports the statement of Mr. Asif
Aleem. Purpose of this ad was just to give the viewer an idea that TOYOTA has
produced something new and to establish curiosity in viewer’s mind. A
newspaper is another media Indus Motor Company Ltd. is using for the
-31-Indus Motor Company Ltd.
promotion of COROLLA 2002. Indus Motor Company Ltd.‘s annual report states
that it has increased the budget for advertising by almost 30% during 2002 to
meet the requirement of launching a new product. For the year 2001 advertising
and sale promotion’s budget figure was 38 million that became 48 million in
2002.
Sales Promotion: Normally no sales promotions are done by Indus Motor
Company Ltd. because TOYOTA has established a widespread community of its
customers who are loyal to it. At the time of purchase, customer is given a survey
form that is to be filled by customer and sent directly to Indus Motor Company
Ltd. By doing this customer are entitled an entry in the draw of free services
worth Rest. 5000.
Public Relations : Quality of TOYOTA causes its customer to be loyal to the
brand. When our team surveyed the consumers, no one has produced such
remarks that may be supposed negative. Every of its customer appreciated the
qualities offered in COROLLA 2002.
Launch : At the time of launching of COROLLA 2002 Indus Motor Company Ltd.
and its dealers took some exclusive steps for promotion of new car. On March
02, 2002 it was launched in Karachi in a ceremony held by Indus Motor Company
Ltd. Apart from this all the dealers arranged a 15 day festival at their outlets for
the promotion. They collected data of all the customers during past 7 years and
issued invitations to them. During those 15 days every dealer in Pakistan
provided test drive to the visitors. Some of the dealers in Pakistan are still
providing test drive to their visitors.
-32-Indus Motor Company Ltd.
-33-Indus Motor Company Ltd.
PLACING STRATEGY
Indus Motor Company Ltd. has the strongest network of dealership in Pakistan. It
has 28 dealers throughout Pakistan who perform all the functions of distribution
-34-Indus Motor Company Ltd.
channels i.e. Information, Promotions, Contact, Matching and Negotiations. Indus
Motor Company Ltd. delivers the product to consumers using an indirect channel
of distribution which is as under:
Indus Motor Company Ltd. Dealers Customers
During the year 2001 some 148,000 vehicles were serviced at dealers outlets
and this number increased to 185,000 in year 2002. Through its strong dealer’s
network, Indus Motor Company Ltd. has made the availability of genuine spare
parts possible all over the country at a controlled price.
Following is the
distribution of dealers all
over the country:
Area Number of Dealers
Sindh 8
Punjab 12
N.W.F.P 3
Balochistan 1
Islamabad (Capital) 2
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Azad Kashmir 1
For physical distribution Indus Motor Company Ltd. has developed a Logistic
system that performs the following functions as an attempt to maximize customer
satisfaction.
Order Processing
Warehousing
Transportation
Indus Motor Company Ltd. and dealers perform these functions for customers.
-36-Indus Motor Company Ltd.
SWOT ANALYSIS
Strengths:
-37-Indus Motor Company Ltd.
1. Price
2. Dealer’s network
3. Safety
4. Sporty Look
5. 1 year/20000 mile warranty
6. Resale Value
7. Status Symbol
Weaknesses:
1. Full Payment on Booking
2. Long time of Delivery
3. Payment of Delivery Charges by customers
4. Change of Price applicable to Undelivered Vehicle
Opportunities and Threats:
1. Competition Opportunity/threat
2. Economy of Country Threat
3. Availability of Imported vehicles Threat
4. Decrease of Taxes by government on imported vehicles Threat
5. Acquisition of DAIHATSU Opportunity
6. Incorporation of Made in Pakistan Automobiles Threat
7. Leasing facility Opportunity
8. Customer loyalty Opportunity
-38-Indus Motor Company Ltd.
People’s view: Image of TOYOTA is of a companion in its customer’s minds.
People say that we do not buy this car because of its durability, status, safety or
reliability; we buy it because of TOYOTA. Simply saying, people of Pakistan trust
TOYOTA to a degree that if TOYOTA launches a cart, people will buy it without
hesitation. Availability of cars all over the country, less maintenance expenses,
resale value and status representation are some values that are helping
TOYOTA to build such a long lasting relationship with its customers.
-THE END-
-39-Indus Motor Company Ltd.
-40-Indus Motor Company Ltd.