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Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota

A COMPARATIVE STUDY

ON THE EFFECT OF MARKETING TECHNIQUES OF

VOLKSWAGEN & TOYOTA

A Project Report Submitted inPartial Fulfilment of the Requirement for the Degree inBachelors of Business AdministrationByPranshu Sahni3032TY-A08020621181February 2011Symbiosis Centre for Management Studies (UG)Symbiosis International University Pune

Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 2

Acknowledgments

The concepts learnt in academics are of no importance until they arepractically applied. In today¶s world it is imperative for the students of anyUnder- Graduate course to keep pace with the changing technologyinnovations taking place across the world. In alignment with this, Iprepared a Research Project Report after my 5th semester of BBA.I am heartily thankful to my Project Guide, Mrs. Ahuti Mishra whose encouragement,guidance and support from the initial to the final level enabled me to develop anunderstanding of the subject. I express my thanks to the Director of Symbiosis Centre

for Management Studies for allowing me to work on this project.I wish to express my deep sense of gratitude to the Sales Managers of bothVolkswagen andToyota for their support and guidance. I would also thank my Institution and my facultymembers without whom this project would have been a distant reality. I also extend myheartfelt thanks to my family and well wishers.Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 3

CERTIFICATE

This to certify that the Research work incorporated in the report

----------------------------------------------------------------------------------------------------------------is a bonafide work done by Mr. / Ms.---------------------------------------------------------.It was carried out by the candidate under my guidance and supervision. The materialsfromother sources have been duly acknowledged by him / her in the research report. Thiswork issubmitted in partial fulfilment of the requirement for the degree Bachelor of BusinessAdministration in the academic year 2010-2011.



Dr. Anupama SureshDirector, SCMS (UG) Project GuidePlace:Date:Project Report Symbiosis Centre For Management Studies (UG)

A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 4STUDENTS UNDERTAKING

I Mr. / Ms.______________________________________hereby certify that theResearchwork incorporated in the report_____________________________________________________ __________________________is a bonafide work done by me. The materials fromother sources have been duly acknowledged by me in my research report. This work issubmitted inpartial fulfilment of the requirement for the degree Bachelor of Business Administration

inthe academic year 2010-2011.Signature : __________________________________ Name of the student: __________________________________ Division : __________________________________ Exam Seat No. :___________________________________ Date : __________________________________ Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 5

Abstract

The Indian Automobile Industry is on overdrive. The rapid urbanization, coupled with an

overwhelming growth in the middle class population, has created an Indian market thatisextremely conducive for the automobile industry to flourish. Indian automobile industryrecorded a growth of 16.07% in 2006-2007.Automobile industry contributes 4% of thenational GDP and accounts for 5% of the industrial output in India. It is moreover, amajor employment generator in the country. The Indian automobile industry providesemploymentto around 13 million people directly or indirectly at present, a number that is likely todoubleby 2016.

The following report is a comparative study of two automobile giants tries to establishtheir respective brands of cars in the minds of the Indian Consumer. The Purpose of thestudy iseffect of their marketing campaigns on the Indian consumer which tries to find value for their money. Volkswagen being who entered the Indian Market in the year 2005 with itsbrand



Skoda had lot success in the recent years. Toyota has a partnership with Kirloskar andenteredthe Indian Market in the year 1997 and is able to establish their name in the IndianMarket.As both of these companies have already launched their specialised cars for the Indian

Consumer, it would be interesting to find which manufacturer is able to understand theIndianconsumer completely.Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 6

Table of Contents

Chapter No. Contents Page no.1. Introduction.................................................. 81.1 Introductory Paragraphs................................. 81.1.1 State of Indian Economy...................................... 91.1.2 Current State of Indian Auto Market................... 9

1.1.2.1 Small Vehicle Market............................................ 101.1.2.2 Indian Exports........................................................ 101.2 Statement of Problem.............................................121.2.1 Market Strategy and Consumer Behaviour....................121.3 Objectives................................................................141.4 Significance of the Study.......................................141.5 Hypothesis...............................................................152. Background..........................................................162.1 Literature Review......................................................162.1.1 Volkswagen.............................................................. 162.1.1.1 History of Volkswagen............................................. 18

2.1.2.1 Volkswagen in India.................................................. 302.1.2.2 Volkswagen marketing India.............................. 322.2.1 Toyota.................................................................... 37Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 7

3. Methodology3.1 Research and Design................................................. 60.3.2 Research Process...................................................... 603.3 Exploratory Research............................................... 613.3.1 Primary Data.............................................................. 613.3.2 Secondary Data......................................................... 61

3.3.3 Data Collection........................................................... 613.2 Population and Sampling.............................................. 623.2.1 Sample Size.....................................................................623.3 Time Frame...................................................................623.4 Validity and Reliability.................................................633.4.1 Questionnaire error..................................................... 633.5 Assumptions............................................................... 634 Finding Interpretation and Conclusion



4.1 Conclusion.................................................................... 844.2 Hypothesis Testing........................................................845 Limitations and Recommendations............................ 85Bibliography.................................................................. 86Annexure.................................................................... 87


Chapter I ± Introduction1.1 Introductory Paragraphs

India ranks just behind China with the world¶s second largest population at over 1 billionpeople. Less than 1 percent of the population currently owns automobiles, which is amuchsmaller proportion than the rest of the Southeast Asia region. For example, the regionalaverage of ownership is 16.45 percent. Nonetheless, sales of passenger vehicles inIndia havemore than doubled since 2001 to over 1.5 million units. India also has one of the fastest

growing economies, and many U.S. companies view India as a potentially lucrativemarket.It is expected that the automotive industry will play an important role in helping theeconomyto continue this growth. Not only are domestic sales expected to grow dramatically, butIndiawill play a significant role in the global automotive market. The world¶s topmanufacturers,General Motors, Ford, Toyota, Honda, and others, have a significant share of alreadyestablished manufacturing bases. These manufacturers hope to not only capture anemerging

market, but also to use these bases as export hubs to serve the region and the globalmarket. .Though not to the same extent as the telecom sector, the automobile and auto-componentindustry has also emerged as one of the recent success stories. As in all other countries, theIndian automobile industry is one of the key drivers of industrial growth and employmentwhich will further gain in importance in the coming years. Its recent record of rapidoutputgrowth, productivity improvements and expanding share in global markets has perhapsnot

been so well documented. This study fills that gap. The study will help us understandhow theindustry¶s success is quite directly linked to the trade and industrial policy reformsinitiated inthe early 1990s. More importantly, the study will identify the critical constraints thatpreventthe industry from further expansion in the global share and emerge as one of the major



production and export hubs in the coming years. This analysis is based on acomprehensivereview of secondary literature and an extensive fieldwork which covered the major automobile assemblers and understanding of their marketing techniques across all thethree

tiers so as to cover the largest and the smallest component producers. This has allowedus tomake some specific policy recommendations which have been discussed with theindustryrepresentatives more than once. These recommendations, if accepted andimplemented, couldcontribute to India¶s emergence as one of the major automobile producing economies intheProject Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 9

world. Given our domestic demand and the entrepreneurial talent, this would be anaturaloutcome.1.1.1 State of the Indian Economy

India¶s economy has experienced a continued high level of growth in recent years.Somepredictions are that India¶s rapidly expanding economy will soon be the world¶s thirdlargest.While growth is expected to slow this year, it is still expected that India will continue tobeone of the fastest-expanding economies. Foreign direct investment (FDI) in India tripledfrom $4.7 billion to $15.7 billion from FY2005/06 (April 2005-March 2006) to FY2006/07(April 2006-March 2007).The automotive industry is one of the leading industries inIndia for FDI, and the U.S. automakers have made considerable investments since the early-1990s.According to statistics from the Government of India, FDI in the transportation sector,thefourth largest sector in India, totalled $3.5 billion from August 1991 through December 2006.India embarked on this economic liberalization plan in 1991 in the hopes of spurringeconomic growth. These reforms included opening up India to FDI. In 2002, 100 percentforeign ownership was permitted. Growing at 8.7 percent for 2007-08, India has one of thefastest expanding economies in the world and the second fastest in Asia, and it has thepotential for a sustained growth of 8-10 percent for the next several years. India¶s GDPis$1.16 trillion, which equates to $4,139 per capita for 2007-08. With a population of over onebillion people, India provides potentially lucrative opportunities for U.S. businesses in a



number of fields, as reflected by the growth in U.S. investments. With a large andgrowingmiddle class estimated to be in the hundreds of millions, along with a small wealthysubpopulation,the Indian population provides a largely untapped opportunity for growth in the

automotive sector .1.1.2 Current State of the Indian Auto Market

The Indian auto market is currently small with potential for dramatic growth. While the regionalaverage is for 16.45 percent of the population to own a car, less than 1 percent of the Indianpopulation owns one. Given the large size of the middle class with increasing purchasing power andthe youthful population (over half the population is less than 25 years of age and India has thehighestproportion of population below 35), there is the potential to penetrate a largely untapped market.Also, given the availability of cheap, skilled labor, India has the potential to serve as a regionalexporthub for manufacturers in the Asia-Pacific region.


1.1.2.1 Small Vehicle Market

The Indian market is dominated by small, low-cost vehicles (two wheelers such as scooters andmotorcycles make up about 75 percent of the market share). Approximately 75 percent of passenger car sales in India are small cars. Tata Motors has introduced the Nano, which is both fuel-efficient(about 50 miles per gallon) and cheap ($2,500). Tata is expecting to launch sales of the Nano in2008.A number of other manufacturers have already announced plans to develop small cars in asimilar

price range in order to compete effectively in this market.1.1.2.2 Indian Exports

Currently, Asia and Africa are India¶s largest export markets, but the European markethasseen recent growth as well. Exports of passenger vehicles nearly tripled from 72,005 in2002-03 to 198,478 units in 2006-07.According to the Society of Indian AutomotiveManufacturers (SIAM), approximately 1.4 million passenger vehicles were sold inFY06/07.The top India manufacturers, in descending order, are Maruti Suzuki, Hyundai, TataMotors,Honda, Ford, India, General Motors India, Hindustan Motors, Skoda Auto India, Toyota

Kirloskar Motor, Volkswagen and Fiat India. Most of these manufacturers are alreadycalculating how to further expand production and sales in India. For example, Marutiplansto produce 1 million cars annually by 2010. Nissan, in a joint venture with Renault andMahindra & Mahindra, plans to open a plant in 2009 with a 400,000 unit productioncapacity.By the end of 2008, Honda will double its production capacity to 100,000 units, with a



Philip Kotler Quotes ³The most important thing is to forecast where customers and

be in

front of them.

Driving the most luxurious car has been made possible by the stiff competition in theautomobile industry in India, with overseas players gathering the same momentum as

thedomestic participants. Every other day, we have been hearing about some newlaunches,some low cost cars ± all customized in a manner such that the common man is not leftbehind. In 2012, the automobile industry is expected to see a growth rate of around15%, withthe disclaimer that the auto industry in India has been hit badly by the global financialcrisis.As it has been predicted that India would be the 11 th biggest market by 2013.Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 12

1.2 Statement of Problem

³To understand the Indian Consumer psychology on cars as well as what to expect frombigcar manufacturers such as Toyota and Volkswagen in the near future, in order toimpress theIndian Consumers.´All of us are consumers. We consume things of daily use; we also consume and buytheseproducts according to our needs, preferences and buying power. These can beconsumablegoods, durable goods, speciality goods or, industrial goods. What we buy, how we buy,where and when we buy, in how much quantity we buy depends on our perception, self

concept, social and cultural background and our age and family cycle, our attitudes,beliefsvalues, motivation, personality, social class and many other factors that are bothinternal andexternal to us. While buying, we also consider whether to buy or not to buy and, fromwhichsource or seller to buy. In some societies there is a lot of affluence and, these societiescanafford to buy in greater quantities and at shorter intervals. In poor societies, theconsumer canbarely meet his barest needs. The marketers therefore try to understand the needs of

differentconsumers and having understood his different behaviours which require an in-depthstudy of their internal and external environment, they formulate their plans for marketing.Consumer behaviour is a complex, dynamic, multidimensional process, and all marketing decisionsare



based on assumptions about consumer behaviour. Marketing strategy is the game planwhichthe firms must adhere to, in order to outdo the competitor or the plans to achieve thedesiredobjective. In formulating the marketing strategy, to sell the product effectively, cost-

benefitanalysis must be undertaken. There can be many benefits of a product, for example, for owning a motor bike one can be looking for ease of transportation, status, pleasure,comfortand feeling of ownership. The difference between this total benefit and total costconstitutesthe customer value. The idea is to provide superior customer value and this requires theformulation of a marketing strategy. The entire process consists of market analysis,whichleads to target market selection, and then to the formulation of strategy by juggling theproduct, price, promotion and distribution, so that a total product (a set of entire

characteristics) is offered. The total product creates an image in the mind of theconsumer,who undergoes a decision process which leads to the outcome in terms of satisfactionor dissatisfaction, which reflect son the sales and image of the product or brand. Theprocess of decision-making varies with the value of the product, the involvement of the buyer andtherisk that is involved in deciding the product/service. Consumer is also influenced by theProject Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 13

marketing activities and efforts of the marketer. All these factors lead to the formation of attitudes and needs of the consumer.1.2.1Marketing Strategy and Consumer Behaviour

(i) Marketing Analysis(a) Consume(b) Company(c) Competition(d) Condition(ii) Marketing Segmentation(e) Identify product related needs(f) Group customers with similar need sets

(g) Describe each group(h) Select target market(iii) Marketing Strategy(i) Product(j) Price(k) Distribution(l) Communication(m) Service



(iv) Consumer Decision Process(n) Problem recognitionProject Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 14

(o) Information search²internal, external

(p) Alternative evaluation(q) Purchase(r) Use(s) Evaluation(v) Outcomes(t) Customer satisfaction(u) Sales(v) Product/Brand image1.3 Purpose/Objectives

1) To find out the consumer preference and reasons for buying a particular brand of Car.

2) To study the strategy behind Volkswagen and Toyota and consumers outlooktowards thatstrategy.1.4 Significance of the Study

The significance of the study is the market analysis, of two automobile giants ToyotaandVolkswagen. Market analysis requires an understanding of the 4-Cs which areconsumer,conditions, competitor and the company. A study is undertaken to provide superior customer value, which is the main objective of the company. For providing better customer value

weshould learn the needs of the consumer, the offering of the company, vis-a-vis itscompetitorsand the environment which is economic, physical, technological, etc... A consumer isanyonewho engages himself in physical activities, of evaluating, acquiring, using or disposingof goods and services¶ customer is one who actually purchases a product or service fromaparticular organisation or a shop. A customer is always defined in terms of a specificproduct

or company. However, the term consumer is a broader term which emphasises not onlytheactual buyer or customer, but also its users, i.e. consumers. Sometimes a product ispurchasedProject Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 15

by the head of the family and used by the whole family, i.e. a refrigerator or a car. Thereare



some consumer behaviour roles which are played by different members of the family1.5 Hypothesis

Toyota and Volkswagen made the right moves in the Indian Market and are able

to

establish their brand which is well recognised in India.


Chapter-2

Background2.1 Literature Review

2.1.1 Volkswagen

Type: Public Company

Headquarters: Germany

Industry: Automotive

Products: Cars, Trucks

Revenue: ¼113.8 billion (2008)

Operating income: ¼6.61 billion (2008)

Profit: ¼4.68 billion (2008)

Employees: 369,928(2008)

Vehicle brand companies

AudiBentley motors ltd.Bugatti automobileSubsidiaries: Lamborghini

Seat

Skoda autoProject Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota

INTRODUCTION TO VOLKSWAGEN

Type: Subsidiary of Volkswagen group

Founded: May 28, 1937

Founders: Ferdinand Porsche, Adolf Hitler

Headquarters: Wolfsburg, Germany

Area served: Worldwide

Key people:

M (Chairman of board of

Christian kingler:(board of management of the Volkswagen passanger cars)

ScaniaVolkswagen passenger car Volkswagen commercials vehicles



Martin Winterkornmanagement)

Ferdinand piech:(chairman of Volkswagen supervisory board

Page 17


Worldwide location of various Volkswagen plants

In German, Volks pronounced as (folks), means people and Wagen means

Car.

Hence:

Volkswagen means "people's car" in German, in which it is pronounced

[fDlksvaDn].Its current tagline or slogan is Das Auto (in English The Car). Its previous

German tagline was Aus Liebe zum Automobil, which translates to: Out of Love for

the

Car, or, For Love of the Automobile, as translated by VW in other languages.2.1.1.1History of Volkswagen

Adolf Hitler had a keen interest in cars even though he did not like to drive. In1933,shortly after taking over as leader of Germany, he teamed up with Ferdinand Porsche

tomake changes to Porsche's original 1931 design to make it more suited for the workingman.Hans Ledwinka discussed his ideas with Ferdinand Porsche, who used many Tatradesignfeatures in the 1938 "KdF-Wagen", later known as the VW Käfer²or Volkswagen

Beetle.When Chrysler brought out the 1934 DeSoto Airflow coupe, its design enabled Mr.

Porsche

to finalize his design of the Beetle. On 22 June 1934, Dr. Ferdinand Porsche agreed to

create the "People's Car" for Hitler's mother. After some time, they planned tochangeProject Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 19

some features regarding various aspects. These changes included better fuel efficiency,reliability, ease-of-use, and economically efficient repairs and parts. The intention was

thatordinary Europeans would buy the car by means of a savings scheme ("Save five

Marks a

week, if you want to drive your own car"), which around 336,000 people eventually

paidinto. The VW car was just one of many KdF programmes which included things such astours



and outings. The prefix "Volks" ("People's") was not just applied to cars, but also toother products in Europe; the "Volksempfänger" radio receiver for instance. On 28 May 1937,theGesellschaft zur Vorbereitung des Deutschen Volkswagens was established by the

Deutsche Arbeitsfront. It was later renamed "Volkswagenwerk" on 16 September 1938.VW Type 82EErwin Komenda, the longstanding Auto Union chief designer, developed the car body of

theprototype, which was recognizably the Beetle we know today. It was one of the first to

beevolved with the aid of a wind tunnel; unlike the Chrysler Airflow, it would be a success.New factory startedThe building of the new factory started 26 May 1938 in the new town of KdF-Stadt, nowcalled Wolfsburg, which had been purposely built for the factory workers. This factory

onlyproduced a handful of cars by the time war started in 1939. None were actuallydelivered toany holder of the completed saving stamp books, though one Type 1 Cabriolet waspresentedto Hitler on 20 April 1938 (his 49th birthday).At the times of 1st world War, VolkswagenWar meant production changed to military vehicles, the Type 82 Kübelwagen ("Bucket

car")

utility vehicle (VW's most common wartime model), and the amphibiousSchwimmwagenwhich were used to equip the German forces. By 1946 the factory was producing 1,000cars amonth, a remarkable feat considering it was still in disrepair. Due to roof and windowdamage, rain stopped production and steel to make the cars had to be bartered for newvehicles.Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 20

Volkswagens were first exhibited and sold in the United States in 1949, but

only sold

two units in America that first year. On its entry to the U.S. market, the VW was

brieflysold as a "Victory Wagon". Volkswagen of America was formed in April 1955 tostandardizesales and service in the United States. Production of the Type 1 Volkswagen Beetleincreaseddramatically over the years, the total reaching one million in 1955.Sales soared ² duein partto the famous advertising campaigns by New York advertising agency Doyle, Dane



Bernbach. Led by art director Helmut Krone, and copywriters Julian Koenig and Bob

Levinson, Volkswagen ads became as popular as the car, using crisp layouts and wittycopyto lure the younger, sophisticated consumers with whom the car became associated.Despite

the fact it was almost universally known as the Beetle (or the Bug), it was never officiallylabeled as such by the manufacturer, instead referred to as the Type 1. The firstreference tothe name Beetle occurred in U.S. advertising in 1968, but not until 1998 and the Golf-basedNew Beetle would the name be adopted by Volkswagen.Volkswagen was in serious trouble by 1973. Beetle sales had started to decline rapidlyinEuropean and North American markets. The company knew that Beetle production hadtoend one day, but the conundrum of replacing it had been a never-ending nightmare.

VW'sownership of Audi / Auto Union proved to be the key to the problem - with its expertiseinfront-wheel drive, and water-cooled engines which Volkswagen so desperately neededtoproduce a credible Beetle successor. Audi influences paved the way for this newgenerationof Volkswagens, known as the Polo, Golf and Passat.Volkswagen Golf, sold as the rabbits in USAWhile Volkswagen's range of cars soon became similar to that of other large Europeanautomakers, the Golf has been the mainstay of the Volkswagen line up since its

introduction,and the mechanical basis for several other cars of the company. There have been sixgenerations of the Volkswagen Golf, the first of which was produced from the summer of 1974 until the end of 1983 (sold as the Rabbit in the United States and Canada and astheProject Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota

Caribe in Latin America). It would be produced in the United States as the Rabbit untilthespring of 1984. The second-generation Golf hatchback/Jetta sedan ran from late 1983

to late1991, and a North American version produced in Penns1985 model year.In the 1980s, Volkswagen's sales in the United States and Canada felldramatically, despite the success of models like the Golf elsewhere. The Japanese andtheAmericans were able to compete with simStates were 293,595 in 1980, but by 1984 they were down to 177,709.Volkswagen had entered the super



and spacious three-door hatchback designed byGermany and most of the rest of Western Europe, being one of the first foreign smallcars toprove popular in Britain. The second generation model, launched in 1981 and sold as ahatchback and "coupe" (with the hatchb

similar to a conventional hatchback), was an even greater success for Volkswagen. Itwasfacelifted in 1990 and was still selling well after 15 years, when it was replaced by thethirdgeneration Polo in 1994.The Volkswagen New Beetle concept, especially in North America.In 1994, Volkswagen unveiled thewith a resemblance to the original Beetle but based on the Polo platform. Its genesiswassecret and in opposition to VW management, who felt it was too backwardManagement could not deny the positive pu

green-light to its development as theGolf rather than the Polo, because the Polo frame was too small for the car to passcrash testPennsylvania went on sale at the start of thesimilar products at lower prices. Sales in the Unitedsuper-mini market in 1976 with the Volkswagen Polo

Bertone. It was a strong seller in West

hatchback resembling a small estate car and the coupe beingJ-mays-designed Concept One, a "retro"public response to the concept car and gave theNew Beetle. The production car would be based on the

Page 21ylvania ilar Polo, a stylish

. ack retro"-themed car backward-looking.blic .Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 22

standards in the U.S. It has been quite popular in the North America and is now gainingin theEU.Volkswagen group ² the Volkswagen Bora (the sedan, still called Jetta in the USA),

NewBeetle, SEAT Toledo, SEAT León, Audi A3, Audi TT and Skoda Octavia. However, itwasbeaten into third place for the 1998 European Car of the Year award by the winning AlfaRomeo 156 and runner-up Audi A6.In the late 90s Volkswagen acquired the three luxury brands Lamborghini (through

Audi),



A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota

The 2003 VW Gol 1.6 Total Flex was the first full flexiblecapable of running on any blend of gasoline and ethanol (E100).Volkswagen Group owns nine

� Audi : 99.55% ownership; the Audi marque is the sole active brand of the

former Auto Union, bought from� Automobili Lamborghini

in June 1998.� Bentley Motors Limited

the time known as Rollsfrom Vickers, but did not include the 'marquee was subsequently restarted byRoyce plc.flexible-fuel vehicle launched in Brazil,active automotive companies:

, Daimler-Benz on 30 December 1964.

Lamborghini:, 100% ownership by Audi AG; company was boughtLimited,: 100% ownership by Volkswagen AG; the company (at

Rolls-Royce & Bentley Motors Ltd.) was bought on 28 July 1998, Rolls-Royce' brand name. The RollsBMW who had licensed the brand fromPage 24

' Rolls-RoyceRollsProject

Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota

� Bugatti Automobiles

VWAG, Bugatti Automobiles SAS was created after Volkswagen purchased the rightto the Bugatti marque.� SEAT, :- Initially cooperation agreement with Audi AG, 51% (1986) and 100%

ownership by the VW Group since 1990, and was the first foreign subsidiary in theVW Group.� koda Auto,:- 100% ownership since 1999.

Volkswagen Passenger Cars

� Volkswagen Commercial Vehicles

(VWN) (German) ²

: 100% ownership via the Volkswagen France subsidiary of

Cars,:- 100% ownership.(VWCV) or 'Volkswagen Nutzfahrzeuge'100% ownership; started operations as an independent entity inPage 25


1995. VWCV/VWN is in charge of allGroup and has control over



� Scania AB,:- 70.94% of voting rights as at 27 February 2009 .Current Volkswagen models

Europe Caddy Life� Eos� Fox�

Golf Mk6� Golf Plus� Golf Variant� Jetta Mk5� Multivan� New Beetle� New Beetle Convertible� Passat Mk6� Passat CC� Phaeton� Polo Mk4F�

Scirocco� Sharan� Touran� Tiguan� Touaregcommercial vehicle developments within theScania and is a shareholder in MAN AG.Page 26


Achievements of Volkswagen

In 1980, Volkswagen competed in the Paris-Dakar Rally with the Audi-developed Iltis,placing 1st, 2nd, 4th and 9th overall.Volkswagen enlists Dakar Champion Jutta Kleinschmidt, the first female to win theDakar in2001, to help design and compete a Dakar Racer.

In 2003, VW replaced the ADAC Volkswagen Lupo Cup with the newly released Polo,tobecome the ADAC Volkswagen Polo Cup.In 2004, Volkswagen Commercial Vehicles enter the European Truck Racing series

with theVolkswagen Titan series truck - it became back-to-back champions for the 2004 and

2005series.In 2003, the Hannover based team starts with a 2WD buggy named Tarek. It places 6th

outright but took 1st in the 2WD and Diesel class.In 2004, VW enters the newly developed Race-Touareg T2, finishing 6th overall and

2nd inthe Diesel class.



In 2005, an updated Race-Touareg with slightly more power is entered, with driver BrunoSaby, finishing in 3rd overall and 1st in the Diesel class!In 2006, Volkswagen released the most powerful Race-Touareg yet: the Race-Touareg

2.

Five vehicles enter, with driver Giniel de Villers finishing in 2nd place overall, and 1st intheDiesel class.In 2009, Volkswagen won the 2009 Dakar Rally held in Argentina. VW's Touareg racemodels finished 1st and 2ndWinner of numerous international awards and accolades worldwide.

2008

� February 20, 2008 - Volkswagen Tiguan is voted SUV of the year by "OFF ROAD"magazinereadersProject Report Symbiosis Centre For Management Studies (UG)

A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 28� January 29, 2008 - Volkswagen receives award for increasing shareholder value� January 29, 2008 - Value champions 2008: Volkswagen Tiguan and Golf Estate� January 24, 2008 - Golf GTI is one of ³10 Best Cars of 2008´� January 18, 2008 - What Car? Award 2008: Double for Volkswagen� January 17, 2008 - Prize for TSI and DSG: ³Yellow Angel 2008´ Award for Volkswagen¶s LatestHigh-End Technologies2007

� May 16, 2007 - Volkswagen models voted ³Company Cars of the Year´� April 20, 2007 - Volkswagen wins 10 gold at Fleet Awards 2007� March 27, 2007 - Multiple awards for Volkswagen advertising� March 26, 2007 - "Innovation of reason" 2007: Award for high temperature fuel cellfromVolkswagen� January 4, 2007 - Volkswagen unveiled the cleanest ever TDI engine.2006

� September 12, 2006 - Volkswagen Ranks First in J.D. Power Environmental Study� September 12, 2006 - Aerodynamic package makes Volkswagen Passat an eye-catcher -� June 20, 2006 - Volkswagen receives environmental award from Federation of German

Industries -� March 2, 2006 - Auto1 Award- The Passat is Europe¶s Number One -� January 20, 2006 - Passat Awarded Renowned What Car Trophy as Best Family Car � January 19, 2006 - The Passat is Germany's Favourite Car 2006-ADAC readersawardVolkswagen the 'Gelber Engel' prize -2005 and 2004



� May 23, 2005 - The Passat - receives five star rating - top result in the Euro NCAPcrash test� April 8, 2005 - The Golf - more than 25 awards worldwideProject Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 29

�

March 23, 2005 - Volkswagen Phaeton moving ahead� February 16, 2005 - The new Passat launched with four different engines� January 30, 2004 - The Volkswagen Touareg ± an outstanding off-road vehicle -Internationalexperts award prizes to the Volkswagen SUV -Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 30

2.1.2Volkswagen in India

With its headquarters in Pune, Maharashtra (India), the Volkswagen Group isrepresented bythree brands in India: Volkswagen, Audi and Skoda. The Volkswagen Group is

completing10 years of its India journey which began with the entry of the Skoda brand in 2001,Audibrand and Volkswagen brand in 2007. Each brand has its own character and operatesas anindependent entity in the market. Volkswagen Group India is a part of Volkswagen AG,which is globally represented by 9 brands- Audi, Bentley, Bugatti, Lamborghini, Scania,Seat, Skoda, Volkswagen Commercial Vehicles (Volkswagen Nutzfahrzeuge) andVolkswagen Passenger Cars. The product range extends from low-consumption smallcars toluxury class vehicles and trucks. The Group operates 60 production plants around the

world.In total more than 370,000 employees produce more than 26,600 vehicles or areinvolved invehicle-related services each working day. The highest volume brand of the Group isVolkswagen. Europe¶s most successful car brand has made successful inroads into theIndianmarket. Volkswagen presents itself in a variety of segments as a premium manufacturer of high-volume models. As a first step, the Volkswagen brand launched the globallysuccessfulPassat in 2007. To expand its portfolio and cater to the mid segment, Volkswagenlaunchedone of the brand¶s bestselling models, the Jetta, in India in July 2008. Both the sedansarebeing assembled locally. The iconic New Beetle and the high-end SUV Touareg wereintroduced in December 2009. Also available is the high-end automobile Phaeton.From December 12, 2009 the new Pune plant has started rolling-out the hatchbackversion of



the Volkswagen Polo. The made-in-India Polo was presented to the general public for thevery first time at the Auto Expo 2010. The launch of this premium hatchback in March,brought access to one of the Indian passenger car segments with the highest-volumeunit

sales.Skoda entered the Indian market in 2001. Its plant in Aurangabad, which assembles atotal of eight models including the Audi A6 and Audi A4 as well as the Volkswagen Passat andVolkswagen Jetta, has been instrumental in this achievement. For Indian customers, thenameof Skoda stands for high-quality, robust yet affordable cars in the compact, lower mid-sizeProject Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 31

and mid-size ranges. In terms of models, the Skoda product offering in India rangesfrom theFabia through the Octavia, the Laura to the Superb. Skoda lifted the veil off itsinternationalbestseller SUV Yeti for the first time in India at the Auto Expo 2010.Audi offers high-end models of interest to Indian customers. With the A8 and the Q7,the A6,the A4 and not forgetting the R8, the TT and the recently introduced Q5, Audi offerstopquality,technically brilliant cars with an exclusive flair in the relevant luxury segments.Audi¶s positioning as a leading manufacturer of such high-class vehicles, bothassembled inIndia and imported through Audi India, will be systematically pursued in future. At AutoExpo 2010, Audi also unveiled the Audi Sportback Concept ± a five-door model offeringaglimpse into Audi's future design vocabulary.Recognizing the importance of an extensive dealer network towards scripting a long-termsuccess story, the brands of the Volkswagen Group are setting up dealerships spanningtheentire country with Volkswagen, Skoda and Audi having in total around 120 dealershipsacross the country today. They are not only laying the foundation for a substantialincrease insales but also doing the groundwork for offering a first-class all-round service, takingcustomer satisfaction to the highest level. Keeping this in mind they launched their firstGroup Logistics Service facility recently that would help make their dealer networkbecomemore efficient and smoothen the entire process of service. In the period betweenJanuary2009 and December 2009, the three brands of the Volkswagen Group have together sold



around 19,000 vehicles in India, an increase of 1.4% over 2008 in a year marked byrecessionin the auto industry.A crucial element of the Volkswagen¶s strategy is to establish a long-term presence inIndia

is the Group¶s production facility near Pune in the Chakan Industrial Park. Theinvestmentwith a total sum of around INR 3,800 crore (580 million Euros) is the biggest investmentof aGerman company realized in India so far. The plant, one of the most modern in theVolkswagen Group has a high level of vertical integration ± not least attributable to thehighshare of local suppliers. The recruitment is of some 2,500 employees at the end of 2010,primarily from the region itself. With the investment, the vertical integration of suppliersand

the employment of people Volkswagen will thus demonstrate its commitment to the newsite.Simultaneously Volkswagen contributes to a positive development of the economy of theregion and of Maharashtra at the same time.Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 32

The new plant was inaugurated by The Honourable Governor of Maharashtra, HisExcellencyShri. S. C. Jamir, and Prof. Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen Aktiengesellschaft with responsibility for µGroup Production¶ end of March2009 and has begun building the Skoda Fabia compact car in May 2009. The launch of Polo,the hatchback car, is a visible testimony to Volkswagen¶s vision of ³Mobility - Made inIndia´. By mid of 2010 the hatchback version will be followed by a sedan, also based onthenew generation of the Polo but entirely different to the hatch.In recognition of its effortsinIndia, Volkswagen India won the coveted µAutomotive Company of the Year 2010¶award atthe Inaugural Golden Steering Wheel Awards India presented by the leading automotivemagazine, Auto Bild India.2.1.2.1Volkswagen Marketing IndiaVolkswagen, who? That's the common question the bosses at the world's third largestcar maker faced every time they made a marketing pitch in India .While its two sister brands--Audi and Skoda Auto -- had a high recall value, very few were aware of the VW brandname



here. Not anymore. Look at the long queue for the German car maker's latest offering --Polo-- launched in India just two months back. Consumers are willing to wait three to four monthsProject Report Symbiosis Centre For Management Studies (UG)

A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 33for the hatchback priced at Rs 4,55,000 (ex-Mumbai), although cheaper models of other manufacturers are being offered off-the-shelf.VW claims it has confirmed orders for about 6,500 units for Polo, while 500 have beendelivered already. Neeraj Garg, director, Volkswagen Passenger Cars, VolkswagenGroupSales India, says VW indeed had a very low brand recall in India. To correct that, Gargsays,"The Company opted for a continuous activity in the market because brand awarenessalwayshas a shelf life. We need to improve our brand awareness; we need to improve our reach. Thefact that we have been successful in being different from others in the market is what isgoingto work for us". VW is taking the 'continuous activity' part quite seriously.Polo was the latest in a chain of six models ranging from compact cars to big sedans togiantsports utility vehicles launched in the last two years. The company produces/assemblesthePolo, Jetta and Passat in India while it imports the Phaeton, Touareg and Beetle. WhilePolois manufactured in the company's 110,000 units per year capacity Chakan plant, thePassatand Jetta are assembled at Skoda's Aurangabad plant. And there's more to come. VWisgearing up to launch a sedan in the mass market segment later this year. The new car in themid-level category will compete against models such as Maruti's SX4, Fiat's Linea,Hyundai'sVerna and Ford's Fiesta.It is also working on a car that would replace Polo in the entry-level segment. VW hopesthiswill generate almost double the volumes compared to Polo, which will remain itsflagshippremium, yet volume generating car. All these initiatives are expected to increase theVWgroup's share in India from the current 1 per cent to 10 per cent in the next five years.What makes VW's game plan in India all the more interesting is its decision inDecember lastyear to pick a significant minority stake in Suzuki.Though the details are sketchy, there has been intense speculation in industry circlesthat the



tie-up will lead to joint development activities in India -- a country where Maruti makesonein two cars sold.With so much at stake in India, VW figured out that it needed to make a huge noiseabout its

challenger status in India.So when it launched Touareg and the New Beetle Sedan late last year, VW did themostexpensive print advertising campaign in India with a multi-crore roadblock campaignacrossall editions of The Times of India.Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 34

Roadblock refers to an advertiser paying a premium to black out all other advertisers.Mumbaikars also saw other initiatives such as a giant banner in the sky displaying thenewBeetle and the VW logo -- a first such campaign for any automobile manufacturer.The company is now looking at more innovative ways for taking its brand forward in atoughmarket, which is controlled by only three manufacturers -- Maruti Suzuki, HyundaiMotorsand Tata Motors with combined sales of well over 1.4 million units (as of March 31,2010).Lutz Kothe, chief general manager, marketing and public relations, Volkswagen GroupSalesIndia, says innovation is the way to go."Our cars carry innovation and so our marketing campaign should also carry innovation.Wehad to do something which could make India talk about us. We had a significant doubledigitjump in sales after the campaign," Kothe says.But will good cars and innovative campaigns be enough for a late entrant like VW totake onthe established leaders in areas of technology, distribution and reach?The jury is out on this. While many point to the uphill task that a late entrant like VW hasinbuilding its brand in India, VW executives are confident."The loyalty factor for auto brands", says Kothe, "is quite low in India compared to other markets. This means customers are looking for newer things in their cars. We do notsee asituation where we have to pull customers, they are and will readily come to us".Adds Garg: "The Indian car market is going to grow to three million units from 1.7 millionunits in another three to four years time. That gives enough opportunity to all players for expansion".VW has also been building distribution. It presently has about 25 stand-alone dealersandintends to take it up to 40 in India as the company does not want to utilise the dealer



resources of its sister brands for distribution.There will be gradual ramp-up in thenumber later with the next phase of expansion planned for areas outside the main cities.Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 35

2.1.2.3 SWOT Analysis VolkswagenTable 2.5.1

Internal Strengths: Internal Weaknesses:

1. Strong R & D andEngineering1. Heavy Reliance on One

ProductVolkswagen Matrix 2.Strong Sales and Service

Network(Although Several LessSuccessful

3.EfficientProduction/AutomationModels were Introduced)Capabilities 2.Rising Costs in India

3.No Experience With U.S.Labor Unions if Building Plant inthe U.S.External Opportunities: SO: WO:(Also Consider Risks)1. Develop and Produce

Multiproduct1. Develop Compatible

Models for 1.Growing Affluent MarketDemandsLine with Many Options, inDifferentDifferent Price Levels(Ranging fromMore Luxurious Cars with

ManyPrice Classes (Dasher,Scirocco, Rabbit,Rabbit to Audi Line) (O1W1)OptionsAudi Line) (O1S1S2)2.To Cope with Rising Costs

in



2.Attractive Offers to Buildan2.Build Assembly Plant Using

R & D,Germany, Build Plant in

U.S., HiringAssembly Plant in U.S. Engineering, and U.S. Managers withExperience in3.Chrysler and AmericanMotors NeedProduction/AutomationExperience (O2Dealing with U.S. Labor Unions (O2Small Engines S1S3) W2W3)Project Report Symbiosis Centre For Management Studies (UG)

A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 363.Build Engines for Chrysler

and AMC(O3S3)External Threats: ST: WT:

1. Exchange Rate:

1. Reduce Effect of Exchange

Rate byA. Overcome Weaknesses by

MakingDevaluation of Dollar inRelation toBuilding a Plant in the U.S.(T1T2S1S3)Them Strengths (MoveToward OSDeutshe Mark (DM) 2.Meet Competition with

AdvancedStrategy)2.Competition from Japanese

and

Design Technology - e.g.Rabbit (T2T31.Reduce Threat of

Competition byU.S. AutomakersS1S2)Developing Flexible ProductLine (T2



3. Fuel Shortage and Price 3.Improve Fuel ConsumptionThroughW1)Fuel Injection and DevelopFuel Efficient

Diesel Engines (T3S1) B. Possible Options not Exercised by VW:1.Engage in Joint Operation

withChrysler or AMC2.Withdraw From U.S.

MarketProject Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 37

2.2.1 Toyota

History

Sakichi Toyoda, a prolific inventor, created the Toyoda Automatic Loom company basedonhis ground breaking designs, one of which was licensed to a British concern for 1 millionyen; this money was used to help found Toyota Motor Company, which was supportedby theJapanese government partly because of the military applications. The Japanese reliedonforeign trucks in the war in Manchuria, but with the Depression, money was scarce.Domesticproduction would reduce costs, provide jobs, and make the country more independent.By

1936, just after the first successful Toyoda vehicles were produced, Japan demandedthat anyautomakers selling in the country needed to have a majority of stockholders from Japan,along with all officers, and stopped nearly all imports.Toyoda's car operations were placed in the hands of Kiichiro Toyoda, Sakichi Toyoda¶sson;they started experimenting with two cylinder engines at first, but ended up copying theChevrolet 65-horsepower straight-six, using the same chassis and gearbox with stylingcopiedfrom the Chrysler Airflow. The first engine was produced in 1934 (the Type A), the firstcar

and truck in 1935 (the Model A1 and G1, respectively), and its second car design in1936 (themodel AA). In 1937, Toyota Motor Company was split off.From 1936 to 1943, only 1,7,57 cars were made ± 1,404 sedans and 353 phaetons(modelAB), but Toyoda found more success building trucks and busses. (Some of these earlydetailsare The Toyota KB, a 4x4 produced starting in 1941, was a two-ton truck similar to the



prewar KC; it had a loading capacity of 1.5 tons and could run up to about 43 mph. TheGBwas based on the peacetime, 1.5 ton G1 truck, which in turn was based on the ModelA1 cars.The first Toyoda truck was roughly a one-ton to one and a half-ton design, conventional

innature, using (after 1936) an overhead valve six-cylinder engine that appears to havebeen aclone of the Chevrolet engine of the time: indeed, a large number of parts wereinterchangeable, and Toyoda trucks captured in the war were serviced by the Allies withChevrolet components. There was also a forty-horsepower four cylinder model, verysimilar to the six cylinder in design but rather underpowered for a truck with a full ton of capacity.Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 38

An era of rapid expansion: post-war Toyota history

In December 1945, Toyota was given permission by the United States military to start-up uppeacetime production. Toyota Motor Corporation had learned from the American War Department¶s industrial training program, which worked on process improvement andemployee development; the program, abandoned in 1945 by the United States, lived oninJapan as Taiichi Ohno built kaizen and lean manufacturing around it. After World War II,Toyota was kept busy making trucks, but by 1947 it began making the Model SA, calledtheToyopet, a name to stay with Toyota for decades, albeit attached to different cars. The

Toyopet was not powerful and had a low top speed ± 55 mph from a 27 horsepower engine ±but it was designed to be cheap, and to handle the rough roads of post-war Japan. Inthe fiveyears the SA Toyopet was made, 215 were made. The SD may have been moresuccessful;this taxi version saw 194 copies in just two years. The SF Toyopet was the first trulypopular Toyota car, with a modified engine (still putting out 27 horsepower) and a taxi version.AnRH model with a 48 horsepower engine came out shortly after By 1955, Toyota wasmaking8,400 cars per year; by 1965, 600,000 cars per year.In addition to all these cars, Toyota started producing a civilian truck named the LandCruiser. Styled like Jeeps, the original Land Cruisers were, according to Schreier, basedheavily on the legendary Dodge half-ton weapons carrier as well as the Bantam(predecessor of the Jeep) They used a bigger engine than the Jeep (their Chevrolet-clone six) and asize



and configuration more like the Dodge weapons carrier, whose capacity it shares (onehalf ton).Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 39

Starting in 1955, Toyota produced its first luxury car, the Crown, powered by a four cylinder,1.5-liter engine with a three-speed column shift, followed by the 1-liter Corona; only 700carsper month were made in 1955, but this rose to 11,750 in 1958, and 50,000 per month in1964.The start of Toyota's international sales

Toyota set up a headquarters in Hollywood in 1957; the first Toyota car registered in theUnited States was a 1958 Toyopet, sold in 1958; the California license plate wasinstalled byToyota Motor Sales (USA) president Shotaro Kamiya himself, in front of the California

DMV. Two vehicles were imported, the Land Cruiser and Toyopet. Neither sold well; theToyopet was withdrawn while Toyota designed a car specifically modified for theAmericanmarket ± a strategy which later gave us the Avalon and Camry. Alan wrote: ³I am thegrandson of the first Toyota dealer in the US. It all started in Larkspur California (SanFrancisco Bay area). Only two vehicles were available, the Toyopet sedan and theLand. SanFrancisco was where the first distribution centre was set up.The highlight of my grandfather's pioneer Toyota dealership was a personal visit to hishomeand showroom from Mr Toyoda, the president of the company. His visit was to thank

him for his being the first dealer in the US. He presented my grandfather with two Seikowatcheswhich I still possess. I still have all the original ads, dealer licence plate frames, andmanyphotos of the dealership. The dealership came to a close in 1968 with the passing of mygrandfather. In addition to being the first dealer he also possessed the largest classiccar collection west of the Mississippi. He had over 100 classics including Hup mobiles,Packards,Reos, Dodges, Franklins, Marlots, Plymouths, Grahams, etc.In 1959, the company opened its first plant outside Japan - in Brazil. From that point on,Toyota maintained a philosophy of localizing both production and design of its products(thatis, adapting vehicles to the places they will be used, as well as building them there).Thisbuilds long-term relationships with local suppliers and local labour. Part of this alsomeans



that Toyota does not merely build vehicles overseas, but also designs them there, withanetwork of both design and R&D facilities in North America and Europe.The first Americanized Toyota ² the Tiara, otherwise known as the Toyota CoronaPT20 ²

came out in 1964. The six-passenger car had a 90 gross-horsepower engine (probablyabout60-70 bhp net); it could reach 90 miles per hour, and was comfortable inside. One year later,Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 40

the Corona was added at under $2,000; it offered an automatic and factory air asoptions, veryunusual in imported small cars at the time (as was the engine's horsepower rating).Sales hit6,400 in 1965, and reached 71,000 by 1968, nearly doubling each year until by 1971Toyotawas selling over 300,000 vehicles per year, a far cry from 1964's 2,000. Toyota itself wasvery small in the late 1950s by world standards, and in 1963 was the 93rd largest non-American corporation in the world ² but in 1966 was already 47th (in that time it wentfrombeing the 9th largest Japanese corporation to the 6th largest, and for that matter thetenthlargest auto manufacturer in the world ² it would steadily move up to the #3 positionandwill soon challenge Ford for #2). In 1967, the Corona sold for a reasonable $1,760 - alittlebelow the smallest Big Three sedans ² with a good balance of performance, gasmileage,and comfort.By 1967, Toyota had become well established in the United States, albeit as a nicheplayer.The Corona four-door sedan was seen as competing mainly against the VolkswagenBeetle,though this was hardly fair to the modern Corona, with its relatively large interior spaceandrelatively comfortable ride. The Corona was known from its early days for quality as wellasa low price, though rust was a serious problem until the late 1970s, causing more thanoneCorona to simply rust in half before it became old enough to have mechanical problems.Toyota introduced another new car to the US in 1967: the Crown, available as a wagonor asedan. The semi-luxury car boasted a brand new 137 cubic inch in-line six-cylinder engine



delivering 115 horsepower (gross) at 5,200 rpm; that is a bit more than the biggestPlymouthslant six but less than the smallest American V8. The engine was small but had sevenmainbearings, tuned induction, semi-hemispherical heads, and was built with lightweight

alloys.The Crown came with a four-speed manual (at the time three speeds were normal) or atwospeedautomatic (though most Americans were used to three speed automatics). One unusualfeature was standard three-point seat belts, not to mention reclining bucket seats. TheCrownwas never a big seller but it certainly did better than many foreign cars in the segment;thesedan sold for $2,635, the wagon for $2,785. (Torque was 127 lb-ft at 3,600 rpm, boreandstroke 2.95 x 3.35, 8.8:1 compression, single two-barrel carburettor. The Plymouth slant

sixstarted at 170 cubic inches by comparison, and delivered 115 hp with 155 lb-ft of torque; the225 cubic inch slant six put out 145 hp, 215 lb-ft.) The Crown was noted for its roadmanners, smooth ride, and quiet interior. Soon, Toyota brought to the US the famousbut rare2000GT, which resembled a British sports car with a massive hood and nearly no cabinor Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 41

trunk. The car had set 16 world speed and endurance records by 1966, with a dualoverheadcam six-cylinder engine (150 hp, 121 cid) and five-speed manual transmission. Aspeciallymade convertible version was featured in Y ou only live twice. The 2000 GT hadsurprisinglyslow 0-60 times of over 10 seconds, but cornering apparently made up for it, and thequartermilewent by in a decent enough 15.9 seconds (about the same as a 1995 Neon). Not quiteamuscle car, but it probably handled better than the best Detroit had to offer. Toyota alsohad avariety of trucks for sale in the late 1960s, as detailed in our various truck pages (seethe topof-page menu).The Corolla, to be America¶s favourite small car, was first imported in 1969, two yearsafter its first Japanese production, followed by small pickups that earned a strong reputationfor reliability and durability. It was the first Toyota built in the United States, starting in 1985,at



the New United Motor Manufacturing (NUMMI) facility in Fremont, California ² a jointventure with General Motors.Lexus luxury cars join the Toyota stable

While Toyota built good near-luxury cars, sales of the Cressida and Crown were notespecially strong, especially given the brisk trade in Corollas and Camrys. In the 1980s,

whenToyota seriously looked at its lagging luxury sales, Lincoln and Cadillac had both fallenfromgrace; Lincoln was relegated to the limousine and car-service trade, and Cadillac haddestroyed its reputation with the 4-6-8 engine and the barely-disguised Cavalier clone,theCimarron. Chrysler had started to plunge downmarket in the 1970s, and Lee Iaccocawasalready erasing any prestige the brand had by making thinly disguised Chrysler versionsof entry-level Plymouths. Mercedes' quality was fairly low, Audi was suffering from the

"unintended acceleration" debacle, and, in short, the competition was in tatters. It wastimefor Toyota to create both a luxury car and a luxury brand to sell it with ² the luxurybrandmainly because Americans had become accustomed to brands with relatively narrowranges(GM had no less than five brands to reach different markets; Ford and Chrysler bothhadthree.)In the early 1980s, the F1 Project and assigned to an engineering team of 1,400engineers,

2,300 technicians, 60 designers, and 220 support people under the leadership of ShoijiJimboand Ichiro Suzuki. Market research for the Lexus name in the United States started in1985,with Shoiji Jimbo attending focus groups and interviewing dealers. The first runningProject Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 42

prototype appeared in July 1985, with an astounding 450 running prototypes built asLexusspared no expense to beat Mercedes and other luxury marques - which it did,decisively. In1986, tests were conducted on public roads in the US and Germany. Finally, in 1987,the finaldesign was approved after eight presentations to management.The LS400, the first Lexus, finally appeared in 1989. It was an immediate hit thanks toitshigh levels of luxury and reliability, at a lower cost than Mercedes' far less reliable andluxurious models; the low ebb of the competition also helped Lexus to make a splash.Lexus



would remain the leader in passenger car comfort and reliability through to the 21stcentury,though sales of other models - particularly the IS - lagged.Modern times

Toyota instituted a three year, 36,000 mile bumper to bumper warranty starting in 1988,

thesame year the first Toyota-owned American factory started producing Camrys inKentucky,to join the Corollas built in California. In 1999, Toyota Motor Corporation started listingitsshares under the symbol TM on the New York Stock Exchange.Scion was begin in the early 2000s, starting with three cars based off the platform of theoldEcho (but brought up to date and refined), with two engines - a small one for the xA andxB,and a 2.4 with an added 50 or so horsepower for the sporty tC. Scion sales were

immediatelystrong in the early-introduction states, leading to a nationwide (United States) launchthat,with very little advertising, was still remarkably successful. Like most cars aimed atyounger people, the Scions did not attract the younger buyers Toyota was hoping for, at least notin aslarge numbers as they wanted; but it still brought in a more youthful mix than Toyota or Lexus. Analysts suggested that Scion was brought in mainly because Toyota buyersweregrowing older, on average, with new Toyotas meant to attract younger audiences

(MR2, Celica, Matrix) largely failing to achieve the goal of transforming Toyota's imageas avendor of dull but reliable and comfortable Camrys and Corollas.Today, Toyota is one of the world's largest manufacturers of automobiles in both unitsalesand in net sales. In the United States, Toyota has roughly double the sales of Hondaand isbattling GM and Ford for #1. It produces over 5.5 million vehicles per year, equivalent tooneevery six seconds. Toyota has tried, partly through sponsorship of numerous events,participation in many racing venues (including NASCAR), public relations around its

(largelyProject Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 43

non union and Southern) American assembly plants, and other means, to position itself as justanother American company, though no Americans appear to participate in seriousdecisionmakingat the Japan headquarters.



While German automakers tend to use symbols and numbers, and Americans tend tothrowaway names frequently, Toyota sticks by a name as long as a car is successful, anddoesn'ttoss names onto cars that don't fit them. The Land Cruiser started in 1950; the Corolla

in1966; the Celica in 1970; the Camry in 1983; the 4Runner in 1984. Notable "dropped"namesinclude the Corona (with its tendency to die from severe rust), Cressida (dropped for theintroduction of Lexus in the US), unpopular pickups (T100, HiLux, Compact Pickup),andminivans (Van, Previa).Mergers and acquisitions

In 1966, Toyota acquired Hino, which built trucks; commercial trucks from Toyota stillcarrythe Hino name. Hino is currently gaining in popularity in Europe, and is the sales leader

for medium and heavy-duty diesel trucks in Japan. After building its first truck as far backas1913 (when it was part of Tokyo Gas), what had been the truck division of Tokyo Gas(andwhich was now called Diesel Motor Industry Company) split off its commercial truck anddiesel engine division into Hino; the remaining part of the company would becomeIsuzu.Hino did build standard cars for a time, using designs licensed from Renault, butstopped in1967 to concentrate on heavy trucks (and avoid competing with the rest of Toyota).

Hinocurrently makes a wide variety of heavy trucks and buses, and was involved indesigningand/or producing the Tacoma, T100, 4Runner (HiLux Surf), Sequoia, and Tundra. In1967,Toyota took control of Daihatsu (founded in 1907 as Hatsudoki Seizo Co., Ltd), butToyotadid not actually buy the whole company until 1999. Daihatsu sold cars in the US from1988to 1992, with their Charade and Rocky making almost no impact; when Toyota boughtinto

the company, it made a three-wheeled car and military four-wheel-drive vehicles.Daihatsusold vehicles based on Toyotas, along, possibly, with its own designs; their small carsandfour wheel drive vehicles have a following. Daihatsu supplies vehicles and major componentsto other automakers, and appears to be popular in South America. Denso was notacquired,



� Fujio Cho, President. Born in 1937 - not long after Toyota itself - Fujio Cho helpedto speed Toyota's decision-making but cutting the number of board members in half,appointing three non-Japanese managing officers, and generally streamlining themanagement structure. He graduated from the University of Tokyo in 1960 andbecame a production specialist, mentored by none other than Taiichi Ohno. He

opened the first Toyota-owned factory in America in 1988. He is a third dan in kendo.� It is worth noting the martial arts experience of the two top Toyota leaders. Martialarts require discipline, patience, and study; American leaders tend to be lawyers andaccountants with experience in obfuscation and penny-watching.Some past leaders:� Eiji Toyoda (president, 1967-1982), who kept Toyota on a low profile even as the

company rapidly expanded and dramatically increased its quality and its rustproofingcapabilities� Shoichiro Toyoda (president, 1982-1992), who spread Toyota's manufacturing plants

through the world and brought Toyota¶s technology to the forefront, surpassingHonda and just about every other automaker, while increasing reliability even further

History of Toyota City Toyota City sprung from Koromo Town, a thriving silkworm center in the late 1800s andearly 1900s. As the demand for raw silk fell, the city declined, until in 1934 it invited thenewly formed Toyota to center there. The name was changed from Koromo to Toyota in1959. The population is now 25 times its 1930 level, at 350,000.Toyota and the environment Toyota is fairly well known for having the best-designed hybrid-electric car, the Prius,whichformer Chrysler engineer Evan Boberg claimed in 2004 was the only car that actuallysavedfuel because of its hybrid design rather than coincidental features (such as lighter

weight,Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 46

efficient tires, and such). But Toyota's commitment goes much further. Their Australianunit'sEarth Charter notes four principles:� Contribution towards a prosperous 21st century: Aim for growth that is in

harmony with the environment, and to challenge achievement of zero emissionsthroughout all areas of business activities and set as a challenge the achievement of zero emissions throughout all areas of business activity.� Pursuit of environmental technologies: Pursue all possible environmental

technologies, developing and establishing new technologies to enable the environmentand economy to coexist harmoniously.� Voluntary actions: Develop a voluntary improvement plan, not only based onthorough preventative measures and compliance laws, but one that addressesenvironmental issues on the global, national and regional scales, and promotescontinuous implementation.� Working in co-operation with society: Build close and cooperative relationshipswith a spectrum of individuals and organizations involved in environmental



preservation including governments, local municipalities as well as with relatedcompanies and industries.No environmental statement is meaningful unless it is actually followed - which is onereasonwhy many are so angry at Ford, which made many promises, yet continued to push gas

mileage downwards and fought even slight changes in fuel economy requirements. InAustralia, Toyota has a balanced scorecard which notes specific outcomes andmeasures of environmental action, and uses a plan-do-check-act cycle to carry them out.Toyota India was engendered in October 1997. The initial capital investment was of Rssevenbillion. The Toyota Motor Company of Japan has 89% of equity shares and the Kirloskar Group of India has 11% equity shares in their JV called "Toyota Kirloskar Motor (TKM)."Toyota Motor Company

A Japanese Multinational Company, Toyota Motor Company second in the list of largestmanufacturer of the world. A manufacturing behemoth, Toyota can potentially challenge

tochallenge the American counterparts-Honda Motor and Nissan.Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 47

2.2.1Toyota Kirloskar MotorThe Toyota Kirloskar Motor (TKM) is of the opinion that they would contribute to thegrowth of the Indian economy by contributing in the automobile sector, technological upgradation and human resource management. They want to manufacture and saleautomobilesin India and make India an export hub as well. They also want to maintain their globalstandards here with the help of as many as

Toyota centres in India. The most important policy of TKM has been the implementationof the Philosophy of "Putting Customer First".Another very important policy of TKM is to motivate their employees to achieveperfection.They believe that employees are the backbone of the organization and to achieveperfection,the employees must be motivated to work and improve continuously. That is why theymaintain corporate culture and ensures maximum stability for their employees. TheTKM isalso into social service, as they understand their responsibility towards society very well.

They are also continuously trying to ensure the betterment of their products andservices. Asthey believe that, the path to their success is by providing better services and goods.One of their main aims is to help the Indian economy develop by creating employmentopportunities.2.2.2Toyota Cars in IndiaToyota Etios



Toyota Corolla AltisToyota InnovaToyota Fortuner Toyota Land Cruiser Toyota Camry

Marketing and StrategyToyota has become a global company, with 51 manufacturing companies in 26countries.Their vehicles are sold in more than 170 countries. Toyota¶s primary markets are Japan,North America, Europe and Asia.Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota

From April 2009 to March 2010 vehicle sale result in Japan is 2,163,000 units a5,074,000 units. Vehicles sold by Daihatsu and Hino are included in the vehicle unitsalesfigures set forth below.

Toyota has high percentage of market share in their primary markets. In Japan, which isthecenter of its global operations,manufacturer for more than 40 years. It held a domestic market share on a retail basisof 45.8% in fiscal 2007, 45.6% in fiscal 2008 and 46.0% in fiscal 2009. The Toyota¶smarketshare is showed in the figures below:Toyota has maintained its position as the largest automobilePage 48

and oversea is


Company Financial:The following table shows the company spends its time and money from 2006 to 2010:The total number of Toyota employees was 320,590 at March 31, 2010,320,808 atMarch 31,2009 and 316,121 at March 31, 2008.In 2009, with the bad economic climate Toyota has loss 436,937 million yen. However,in2010 it has made profit by 209,456 million yen.Vision and Mission

Mission of Toyota is to provide safe & sound journey. Toyota is developing variousnew technologies from the perspective of energy saving and diversifying energysources.Environment has been first and most important issue in priorities of Toyota and workingtoward creating a prosperous society and clean world.Vision is to be the most respected and successful enterprise, delighting customers

with a wide range of products and solutions in the automobile industry with the bestpeople



and the best technology.Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 50

Toyota¶s Strategy Toyota¶s corporate goal is to achieve continuous growth and enhance its corporate

value bycontributing to society and gaining customers¶ enduring trust through global operationsandthrough products reflecting Toyota¶s advanced technology that target the local demandineach market.In order to achieve this corporate goal, Toyota strives to further enhance its technology,supply capability and marketing, supported by improvements in quality control,strengtheningof cost-competitiveness and personnel development.In particular, Toyota has been dedicated to addressing environmental issues, and asenvironmental awareness continues to grow in the market, Toyota strives to further improvetechnology, including its unique hybrid technology, in order to developenvironmentallyfriendlyproducts.Toyota current positioning strategy:� Toyota does business in more than 170 countries globally; that¶s more countriesthan McDonald¶s with restaurants in over 100 countries. (2009) (Toyota facts)� Toyota ranked 3rd on the ³World¶s Most Admired´ list, behind only Apple andBerkshire Hathaway. (Feb. 27, 2009)� Toyota Motor Sales became the best-selling retail automaker in the U.S. (2009)(Toyota facts)� Toyota has more hybrids on the road than all other automakers. (TMS newsrelease on New Product Leadership, Sept. 21, 2009. Based on R.L. Polk & Co.U.S. Vehicles in Operation as of Jan. 1, 2009.) (Toyota facts)� Toyota was first in five of the 10 vehicle categories in C onsumer Reports¶ annualrankings, the most of any automaker: Toyota Highlander, Prius, RAV4 andSienna, and Lexus LS 460. (April 2009) (Toyota facts)� Toyota has the highest owner loyalty of any automaker. Toyota ranked #1 byhaving the greatest percentage of households return to purchase or lease another Toyota vehicle. (R.L. Polk & Co., Jan. 13, 2010)Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 51

Toyota SWOT AnalysisStrengths:

Strong Financial . The automotive operations

segment is Toyota¶s largest operatingsegment by net revenues. Net revenue for theautomotive segment in 2009 is ¥5,612.6billion.



Having high commitment and truly believein their company. Toyota is known to be oneof many companies that are committed tobuilding a strong relationship with itsemployees. Everything is based on trust and

commitment. The company believes that itgrows as the employees grow. One way tomake this happen is by giving education as amotivation to its employees.Toyota is also known for its TPS (ToyotaProduction System) program. This programkeeps the company to stand strong when itcomes to efficiency compare to itscompetitors. After all these years, Toyota hasdone a really good job in eliminating wasteand time in making its products.

The company has been doing well when it comes to building strong relationships withits customers. The company is known tosatisfy its customers. Knowing the kind of demand that comes from the customers isanother strength, which the company holds.Weaknesses:

Toyota is a wholly owned overseas firm. ItsCEO lives in Japan, who¶s not yet completelyknowledgeable about global business. Hemight be great when it comes to doing

business in his own country, but he¶s not ashandy when it comes to ethics, marketing,management, etc abroad.Loss control quality of product. It leads tothe large numbers of recall vehicles.The large numbers of product are made inJapan which place has high cost.It is not successful in the European market .It can¶t seem to provide what¶s demanded bythe European market which seeks smaller cars and high performance vehicles. Neither

of which are Toyota¶s forte.Greatly affected by economic and political conditions of markets in the US and inJapan. Toyota markets most of its productsin those markets. Perhaps that is why thecompany is beginning to shift its attentions tothe emerging Chinese market.Exchange rates. Movements in exchange



rates could see the already narrow margins inthe car market being reduced.Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 52

By having this information, the company is

then able to create cars that can satisfy itscustomers.The company holds three brands of cars, all manufactures by Toyota. These are Toyotaitself, Scion and Lexus. All these brands aretargeted for different social classes, whichmakes it possible for the company to offer great vehicles for all people.The company holds environment friendly products: Hybrid, electric vehicles.

Opportunities:

Lexus and Toyota now have a reputation for manufacturing environmentally friendly

vehicles. Lexus has RX 400h hybrid, andToyota has it Prius. Both are based uponadvance technologies developed by theorganization. Rocketing oil prices have seensales of the new hybrid vehicles increase.Toyota has also sold on its technology toother motor manufacturers, for example Fordhas bought into the technology for its newExplorer SUV Hybrid. Such moves can only

firm up Toyota's interest and investment inhybrid R&D.The development of new innovative productsas well as increasing technologies which canbe used to create different models to suit thechanges in consumer tastes.The company seems to be doing well inThreats:Product recalls are always a problem for vehicle manufacturers. In 2009, Toyotaissued a recall affecting 3.8 million Toyotaand Lexus vehicles.The developing of competitors: Honda,Nissan, GM, Hyundai. Moreover, soonToyota will also have to compete with China,which has announced that it will beginexporting vehicles in 2010. Surely, China isknown to be able to produce cheaper products. Hence, this will come to a threat in



price competition, which Toyota has to facein the near future.Increasing raw material prices leading todecrease profit margins and create lowcompetition.

Enhanced environmental and energy Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 53

adjusting and fulfilling customers demand.Doing everything to take all the opportunitiesto increase sales and building better relationship with the customers through itsproducts. Toyota has been making innovativeand high tech cars for so many years, beingthe first from its competitors to see this kindof market demand.

The development of emerging marketssuch

as China, India, Brazil and developingcountries as Indonesia, Vietnam.sensitivity. C hanges in the laws, regulationsand government policies in the markets inwhich Toyota operates that affect itsautomotive operations, particularly laws,regulations and policies relating to vehiclesafety including recalls, trade, environmentalprotection, vehicle emissions and vehicle fueleconomy, as well as changes in laws,regulations and government policies thataffect Toyota¶s other operations, includingthe outcome of current and future litigationand other legal proceedings.Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 54

Toyota¶s Activities in past year and comments from management:³Without focusing on environmental, energy and safety measures there can be no futurefor motor vehicles´. This is a comment of Toyota¶s President Katsuaki Watanabe.Toyota¶s automobile ownership exceeds 1 billion vehicles in 2010 and will likely reach1.5billion vehicles in 2020. Toyota is very much aware of the tremendous impact this willhaveon the environment and human safety.For this purpose, Toyota is concentrating its efforts on improving fuel economy bymakingcars smaller and lighter, while enhancing power efficiency. Toyota announced abusinesspartnership with Tesla Motors for developing electric vehicle.



Chief Executive Officer Akio Toyoda said Toyota would try to be the world leader inbuilding environmentally conscious vehicles and touted the company's cooperation withTesla Motors Inc. Toyota is building a RAV4 electric car using Tesla battery technology.(Mike Ramsey, 2010)Toyota has been developing too many safety systems such as: ABS (anti-lock brake

system)VSC (Vehicle Stability Control) and VDIM (Vehicle Dynamics Integrated Management)systems Toyota¶s Pre-crash Safety System. Toyota also offers a training programthroughoutthe year at the TOYOTA Safety Education Center ³mobilitas´ completed in 2005 insideFujiSpeedway in Shizuoka Prefecture.Toyota is expanding its sustainable plant activities worldwide, beginning withmanufacturingfacilities in the United States, the United Kingdom, France and Thailand. In August2008,

The Ban Pho Plant of Toyota Motor Thailand Co., Ltd. conducted one of the largest-ever tree-planting events in Thailand with about 14,000 people planting 100,000 trees.Toyotas New Objectives Improvement:

With fuel price increasing, people are not buying large cars in the numbers they used to.Small cars consume much less fuel, and are better for the environment. For this reason,Toyota should develop new objectives for assisting to continue to do business in thisµnewenvironment´. The new objectives can be:Long term objectives:1) Sale Hybrid cars at all countries which Toyota doing business in 2020.


2) Promote the development of Toyota¶s eco-cars with fuel effective and safety.Short term objectives:1) Increase Hybrid cars sales 100% in 2011 by 2010.2) Increase 2 Hybrid production factories and 2 R&D centers in oversea.The new objectives are consistent with the forecasted needs of the business by itscompetitiveadvantage and positioning.Competitive advantage:TMC has been successful in launching and supplying the Hybrid car market. InDecember 1997, TMC launched the Toyota "Prius"²the world's first mass-produced hybridvehicle.The use of the Toyota hybrid system was subsequently expanded to such vehicles asminivans, SUVs and rear-wheel-drive sedans. In 2009, TMC broadened its range of hybridvehicles further with the launch of the third-generation Prius, as well as two other dedicated



� Reducing CO2 emissions;� Increase the local factories leading to reducing the traffic, emission caused bytransportation and logistics.� Increasing of jobs for local employees.TMC has enough financial to implement above subject. Toyota annually spends nearly

$9billion (more than $1 million an hour), on research and development to develop the carsandtechnologies of the future. Toyota spends more on R&D than any company in the world.(Toyota facts_3)Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 57

Toyota Auris Hybrid new campaign:

In 2010 TMC has introduced Toyota Auris Hybrid vehicle for sale outside Japan. Theadvantages and the µcharacter¶ of the product are represented of four elements:product, price,

place, promotion.Product:Toyota Auris Hybrid available in two grades ± T4and T Spirit with strengths of productare:� First full hybrid model in the European C-segment� Toyota Auris Hybrid: fuel economy starting from 3.8l/100 km� The Toyota Auris Hybrid emits at least 89g CO2/km� Zero-rated for UK road tax (Vehicle Excise Duty) (carsession,2010)Toyota Auris Hybrid has been designed specifically for the European market. With usinginthe new model go beyond exceptional fuel economy and low CO2 emissions. Therefore,

it isuser-friendly and delivers a quiet, comfortable and stress-free drive unlike anything elseinthe segment.Place:Styled in Europe, the Auris is a completely new model that replaces the long-runningCorollaand is built in the UK. European buyers like bold design, and aside from a chunkier,Yarisstylenose, the proportions and profile are barely changed from the Corolla's.With the stringent of environment protection regulations in European, Auris Hybrid isreallyto create as the leader of friendly product. TMC hope that Auris Hybrid will meetdemand of customers in this market who want to care their living environment more and more byusingthe green products.Auris Hybrid not only provides a service that will help reduce the city¶s carbonemissions, it



also helps the owner reduce their running cost by providing a fuel-efficienttransportationwith 3.8l/100km.With the µpull strategy¶, TMC get the product to customers; give them the perfect choosein

the economic downtown period in European.Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 58

Price:TMC has clear understanding of the situation of Euro economic climate and it key targetmarket (young people and other environment, economic effective and high technologycaringbuyers), and has decided pricing strategy and advertising campaign to push thecustomer buythis product with best address their needs and the positioning of Toyota Auris HybridThe vehicle has a starting price of EUR 22,150 (UK) and its running cost is low.

Promotion:Website and showroom are two good address which proving full information such asproductfeature, benefit, safety feature and getting customer¶s orders or feedbacks. Website isthecheapest tool and working 24 hours in 7 days per week.As the pull strategy, the interest in and demand for product even before it reaches thestoresare made possible because social medial. Using a one-page of spots magazine ad and30-second television ad to provides much importance information at 6 months before sales.Using the sales personnel and test-drive as effective tools to persuade the customersandprovide more information such as service after sales, sales assistance and toencourageorders.As the push strategy, TMC spent 5% amount of its marketing resource on maintainingrelationship with its distributors and provide the action plans to distributors such asdiscount20% service fees, expand warranty time more 6 months and reward the excellentdistributor of the year.The KPI of promotion is proving a new eco-product to Euro market, increasing sales to400,000 units in next year to assist the TMC achieves the sales objective.As the ethical and legal promotion, this campaign assists the number of green productuserswill increase, the reaffirming people¶s acceptance of hybrid technology worldwideWeaknesses of product:� High price.� New product so difficult to change customer¶s behavior.




TMC should promote advertising campaign to show the benefits of product and increasethecustomer¶s awareness about eco-Toyota Auris Hybrid.

Threats of product:� High competitive. (Nissan, Audi, Honda, Ford)� Economic downtown.Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 60

Chapter-3

Methodology

To understand the Indian consumer, a proper research methods need to be applied toget thecorrect results. A research process consists of stages or steps that guide the projectfrom its

conception through the final analysis, recommendations and ultimate actions. Theresearchprocess provides a systematic, planned approach to the research project and ensuresthat allaspects of the research project are consistent with each other. Research studies evolvethrough a series of steps, each representing the answer to a key question. This chapter aims tounderstand the research methodology establishing a framework of evaluation andrevaluationof primary and secondary research. The techniques and concepts used during primaryresearch in order to arrive at findings; which are also dealt with and lead to a logical

deduction towards the analysis and results. From the prescribed methodology followed,following would be obtained.3.1 Research Design

I propose to first conduct a intensive secondary research to understand the full impactandimplication of the industry, to review and critique the industry norms and reports, onwhich certain issues shall be selected, which I feel remain unanswered or liable tochange,this shall be further taken up in the next stage of exploratory research. This stage shallhelpme to restrict and select only the important question and issue, which inhabit growth

andsegmentation in the industry. The various tasks that I have undertaken in the researchdesignprocess are :

� Defining the information need� Design the exploratory, descriptive and causal research.

3.2 Research Process



The research process has four distinct yet interrelated steps for research analysis It hasalogical and hierarchical ordering:� Determination of information research problem.� Development of appropriate research design.�

Execution of research design.� Communication of results.Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 61

Each step is viewed as a separate process that includes a combination of task, step andspecific procedure. The steps undertake are logical, objective, systematic, reliable,valid,impersonal and ongoing.3.3 Exploratory Research

The method I used for exploratory research wasØ Primary Data

Ø Secondary data3.3.1 Primary Data

New data gathered to help solve the problem at hand. As compared to secondary datawhichis previously gathered data. An example is information gathered by a questionnaire.Qualitative or quantitative data that are newly collected in the course of research.In the report the primary data source are questionnaires filled by 100 respondents.3.3.2 Secondary Data

Information that already exists somewhere, having been collected for another purpose.Sources include census reports, trade publications, and subscription services. In myreport i

had many sources for secondary data. The data available on the websites of bothVolkswagenand Toyota were used as the secondary data , as well as brochures of the companyvery usefulfor the research. I also used information published in Times of India and The EconomicTimes. Before writing the report a thorough secondary data research was also done.3.3.3 Data Collection

Data collection took place with the help of filling of questionnaires. The questionnairemethod has come to the more widely used and economical means of data collection.Thecommon factor in all varieties of the questionnaire method is this reliance on verbal

responses to questions, written or oral. I found it essential to make sure thequestionnaire was easy to read and understand to all spectrums of people in thesample. It was also important as researcher to respect the samples time and energyhencethe questionnaire was designed in such a way, that its administration would not exceed4-5minutes. These questionnaires were personally administered. The first hand informationwas




collected by making the people fill the questionnaires. The primary data collected bydirectlyinteracting with the people.

3.2 Population and SamplingIt is a description of the characteristics of that group of people from whom a course is intended.Itattempts to describe them as they are rather than as the describer would like them to be. Alsocalledthe audience the audience to be served by our project includes key demographicinformation (i.e.; age, sex etc.).The specific population intended as beneficiaries of a program.Thetarget population is the population I want to make conclude an ideal situation; the samplingframes tomatches the target population. A specific resource set that is the object or target of investigation. The

audience defined in age, background, ability, and preferences, among other things, for which agivencourse of instruction is intended. I have selected the sample trough Simple random Sampling.

3.2.1 Sample Size

This involves figuring out how many samples one need. The numbers of samples youneedare affected by the following factors:� Project goals� How you plan to analyze your data� How variable your data are or are likely to be� How precisely you want to measure change or trend�

The number of years over which you want to detect a trend� How many times a year you will sample each point .I have targeted 100 people for the purpose of the research. The target populationinfluencesthe sample size. The target population represents Pune/Dellhi region. The people werefromdifferent professional backgrounds.3.3 Time Frame

The total research took 2 months to complete.Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 63

3.4 Validity and Reliability3.4.1 Questionnaire error

I have ensured that the questionnaire design was careful so that only required data isconcisely revealed and there is no redundant data generated. The questions arewordedcarefully so that the question are not loaded and does not lead to a bias in therespondentsmind.



3.5 Assumptions: There aren¶t any specific assumptions in the report.


Chapter 4

The following results are according to the questionnaire

Q1) What type of car do you prefer?Interpretation

People prefer luxury cars of brands Toyota and Volkswagen. This proves thatVolkswagenand Toyota are able set themselves as luxury car markers in India.Toyota are very inspirational brands in India, they are definitely able to make a mark intheluxury car segment in India, but after the launch of the Polo and the Etiosmanufacturers are eying a high stake in the small car segment.0%

5%

10%

15%

20%

25%

30%

35%

HatchbackMid

Segment

Finding Interpretation & Conclusion

filled by 100 respondents.Fig 4.1.1As Volkswagen and

nt these car urers MUV

SUV

Luxury

Car SegmentatationSegementation of Cars

Page 64


Q2) Which car makers you will prefer on the basis of reliability?Interpretation

European and Japanese cars are neckand Korean are least reliable. The reasons to be reliable on European and Japanesecarswould be both of these cars have a rangemarket with their new range of cars. Toyota is known for its quality and Volkswagen isknown for its German engineering; that is why European and Japanese cars areconsidered tobe most reliable.



0%

10%

20%

30%

40%

50%

EuropeanJapanese

Fig 4.1.2to neck on the basis of reliability; whereas Amof luxury cars, and they are entering the Indianeir American

Korean

ReliabilityPage 65

hereas AmericanReliablity


Q3) What Attributes you expect from cars of Volkswagen and Toyota?Interpretation

The consumers expect good technology from cominterprets that the Indian consumer wants new technological development in theautomobilesector. Toyota and Volkswagen being one of the topIndian consumers expects good technological development as the market is preMaruti and Hyundai. Volkswagen with its Tagline ³German Engineering Made For India´and Toyota¶s ³Quality Revolution´ tagline compels t

rational for these brands.0%

10%

20%

30%

40%

50%

60%

70%

Technology Price

Fig 4.1.3companies of Toyota and Volkswagen. This

auto manufacturers in the India, thethe Indian Customers to be very aspEngine

Quality

Brand

Name

Others

Expectations



Expectations

Page 66

panies anufacturers pre- occupied byheProject Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 67

Volkswagen CentricQ) Do you know meaning of ³Das Auto´?Fig. 4.1.4Interpretation

Only 26% people knew the meaning of ³Das Auto´, which is the punch line of the car Manufacturer in India. Das auto is Volkswagen¶s Tagline in German which means thecar. Asonly 26% people know the meaning Volkswagen needs to inform the meaning of thistaglineto their prospect buyers.0%

10%

20%

30%

40%

50%

60%

70%

80%

Yes No

Meaning of " Das Auto"Project Report Symbiosis Centre For Management Studies (UG)

A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & ToyotaQ) Which car of Volkswagen you are planning to buy?Interpretation

Volkswagen Polo saw the maximum number of bookings, whereas phaeton had theleastnumber of bookings. This shows polo has stood up remarkable in the Hatchbackand the Indian consumer shifting from brands such as Hyundai and Maruti.star of the Volkswagen¶s entry in India has motivated Volkswagen to launch new carssuch asVento which is specially made for the Indian Market.market share at the end of 2018, Volkswagen is all set to target customers who

Maruti and Hyundai.Fig 4.1.5With company eyeing a 40% of the

Car BookingsSkoda Fabia

Skoda Octavia

Skoda Laura

Skoda Yeti



Skoda Superb

Volkswagen Polo

Vento

Jetta

Passat

Touareg

PhaetonBeetle

Page 68

segment,Polo being theare loyal toProject Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & ToyotaQ) Why you want to buy that car?

Inter pretation

According to the consumer Engineering. The rise of Indian middleunderstanding about the cars and considers that German engineering is one of the bestin theworld.0

1

2

3

4

5

6

7

8

9

Fig 4.1.6the prime reason for buying a Volkswagen car is Germanmiddle- class in last few years has developed

Reasons forBuying that Car Page 69

anFeedbacks


Q) Have you seen rallies organised by Volkswagen in order to promote Polo?

Fig 4.1.7Interpretation

Only 22% of respondents have seen the polo rally organised by Volkswagen and see itas apromotional strategy. Targeting middle ± class people to buy polo by organising rallies,had a



cold response. The rallies were organised to attract car lovers to show the presence of Polo inthe Indian Market.0%

20%

40%

60%

80%

100%

Yes No

Rallies of Volkswagen PoloRallies of Volkswagen Polo


Q) What do you know about after sales service of Volkswagen?.Interpretation70% people of respondents think Volkswagen¶s after sales service is expensive.

after its massive marketing campaign needs to make after competitors having after sales service very cheap, Volkswagen need to work on thisaspect.Q)From the following which of the marketing strategies of Volkswagen0% 20%

Expensive

Average

Cheap

Dont KnowMuch

Customers Response0

10 20

30

40

50

Price - Effectiveness

Fig 4.1.8± sales service cheap. Withaffect you the most?Fig 4.1.940% 60% 80%

Customers Response

Innovative Idea Others

StrategiesPage 71

VolkswagenProject Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 72

Interpretation:



The Indian consumer is appreciating innovative ideas, for development of cars. It isdefinitelya change in trend. The consumer also appreciates Volkswagens¶ entry into the Indianmarket.Q) How do you rate Volkswagen promotional strategies used by launching Vento?(

Volkswagen has partnered with the TOI and The Hindu for a nationwide communicationstrategy wherein whenever the reader opens the newspaper, a voice speaks to himabout thecar manufacturer's latest variant in India. A light-sensitive chip is attached to the pageannouncing the arrival of a perfectly engineered car by Volkswagen).Fig 4.1.10Interpretation:

The respondents consider Volkswagen unconventional marketing techniques asexceptionaland will bring a new meaning of promotion through print media. This mass mediacampaign

was designed MUDRA communications. The strategy was to show Volkswagen¶s newsedanis ready to take on the Japanese Engineering and Vento is hard to let it go. Volkswagenalsoshowed how that car was crafted with so much passion for the Indian Customer. Itclearlyshows how Volkswagen wants to develop customer loyalty in India.0%

10%

20%

30%

40%

50% 60%

70%

80%

90%

100%

Outstanding Excellent Very Good Good Poor

Response of people on PromotionalStrategiesResponse of people on

Promotional Strategies


Q)What is your reaction to Roadblock done by Volkswagen?( roadblock refers to anadvertiser paying a premium to black out all other advertisers )Fig 4.1.11Interpretation

Road blocking strategy adopted by Volkswagen is being appreciated by the consumer,the



consumer were well aware about this strategy. In fact the consumers believe that theyweremade aware that Volkswagen has arrived in India. In the year 2007 Volkswagen took totimeto understand the Indian market with its brand Skoda, and eventually opened a

manufacturingplant in Chakan. Volkswagen spend about $5 million to block any other advertisers. Thisstrategy was early adopted by Hutch when it became Vodafone.0%

10%

20%

30%

40%

50%

60%

70%

80%

Outsatnding Very Good Good Poor

Roadblocking ResponseRoadblocking Response


Q) Where have u seen different advertisements of VolkswagenInterpretation:

The maximum number of advertisements was seen in the Newspapers, followedmagazines, TV and others. Times of India and the Hindu being the partner of Volkswhas resulted maximum number customers seeing the advertisements in newspapers.The auto

magazines are only made for people who want a better insight of thethis Volkswagen concentrated on showing its product and its specifications. They alsopaidpublishers extra premium to compare their cars with other brand of cars, and show howGerman engineering is made for India. This shows how Voldrive brand awareness rather than being purely sales driven.AutoMagazines

TV

25%

Volkswagen?Fig 4.1.12product; understandingVolkswagen marketing was meant toNewspapers

40%

30%

Others

5%

Marketing MeansPage 74



by autoVolkswagenkswagenProject Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota

Interpretation: Etios and corolla had the maximum number of bookings, whereaslandcruiser and camry had minimum number of bookings. This shows by a developing anew Qclass Toyota is been able establish itself inquality promise is also reason for a high demand of Toyota cars in the Indian marketToyota CentricCar Bookings

Fig 4.1.13the lower end sedan sector as well. The Toyota¶s

BookingsPage 75Qsector market.Toyota Etios

Toyota Innova

Corolla Altis

Fortuner

Prius

Camry

Land Cruiser


Interpretation: The maximum customers buy Toyota because of their QualityPromise.quality promise has been executed because of the principles of Kaizen andToyota Production System has also one of the reasons its growth in India and all aroundtheworld.0

1

2

3

4

5

6

7

8

9

Fig 4.1.14

Reasons forBuying that Car Page 76



TheKaikaku. TheFeedbacks


Q) What are the reasons of Toyota¶s rising Market Share?Fig 4.1.15Interpretation:

Value Delivery Network is considered one of the most important strategies of Toyota, tocapture the Indian market, according to the consumer. How does Toyota design a newvehiclemade up of thousands of component parts, manage the daily flow of orders andshipmentswith suppliers and assembly plants? Each business operation is different, but all of themshare one common trait: all are systems for creating customer value²value deliverysystems.

A company¶s performance is the direct consequence of how effective the system ismanaged.Companies that operate more efficiently and responsively than their competitors havebetter Managed value delivery systems. Toyota has understood the delivery network in Indiaand iscapitalising on this. According to the Toyota Customer is the most important thing for them.40%

20%

12%

28%

40%

StrategiesValue Delivery NetworkMarket Positioned Pricing Strategy

More For Same Value Great USP


Q) What do you know about Toyota¶s after sale service?Inter pretation:According to respondents the after sales service of Toyota is priced at aTherefore in order to establish,believes that supplying a vehicle only represents a small part of the relationship

betweenthem and the customer. For this reason, Toyota is happy to respond to any problemswhichmay occur after the vehicle has arrived at its end destination and take great pride in thelevelof satisfaction which many of their customers have shown as a result of their efforts.0

Expensive



Average

Cheap

Dont KnowMuch

Fig 4.1.16

ore after sales services are the most important criteria.r 5 10 15 20

Customers ResponseCustomers Response

Page 78

an average level.ToyotaProject Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota

Interpretation: A lot respondentproducts, Q- class development is considered to be a prime reason that the Indianconsumers

are interested in buying Etios.it¶s a great example of multi- channel market0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Price Effectiveness

Marketing TechniquesFig 4.1.17think that Innovation is Toyota¶s backbone for marketing itThe launch of Etios has been a success story for Toyota itself,marketing.Innovation Q-Class Development Customer

Page 79

kbone -Oriented


Q) How was your experience at the Toyota Dealership?Experience of People at Toyota Dealership Fig 4.1.18Inter pretation: The respondents experience at the Toyota dealership was very goodbecauseof their Value delivery network .Apart from their sales Toyota believes in creating valueof



their product and for their customers. Considering customer as the most importantperson, thecustomer believes that Toyota has the right product for them.Q) How do you rate Toyota promotional strategies used by launching Etios?( Creationof all

new Q class for Indian Customers. The new Toyota hatchback is said to have beendesignedfor the mass volume segment of the Indian market and will compete in the Rs.3-5 lakhpriceband. Toyota is committed to give their customers a Q-Class experience through asales andservice network that will be expanded to 150 dealerships by the end of this year.)

Response of CustomersOutstanding

Very Good

Good

PoorNever Been to One


Interpretation:

75% of respondents that the launch of car like etios is outstanding andattract a new breed of customers;of Q-class has also impacted people as this car is specially made for Indiapunch line of Etios is ³My first, India¶s First´.´Q Promise´ a campaign focused at demonstrating and placing Toyota as a Qualitydrivenorganizations. This was followed by an all India Tour ³Q Woconcept. The choice of cities was very unique here«Chandigarh, Lucknow, Mumbai,Ahmedabad, Pune, Cochin, Chennai, Bangalore, Calicut, Goa, Hyderabad, Vijaywada,Coimbatore, Bangalore, Bhubaneshwar, Kolkata, Siliguri, Guwahati, VJalandhar, Indore, Surat. At first glance one can make out that this is just not a randomselection of cities, these are cities that hold lot of potential and are slowly turning out tobebiggest markets after the metros. This event ende2010«symbolic gesture to project that the ETIOS is for India.0%

10%

20%

30% 40%

50%

60%

70%

80%

Outstanding

Excellent



Etios PromotionalQ11, In the Questionnaire)Fig 4.1.19Toyota will able to

Customers who want value for their money. The CreationToyota¶s campaign is really a success story .World Caravan´ with the ETIOSended at Surat on the 15in the mean time the socialGood

Poor

-Customers Response ( Refer Etios Promotiona

Response ( Refer Q11, In the

Questionnaire)

Page 81

Indian people. Therld Varanasi, Ludhiana,d 15th Augustn -Customers


channels were very effectively used to drive the concept and the research that wentbehindcreating this car. Social channel is the only channel that has the strength and merit of creatinga 2 way communication. Toyota rightly used this to create a community that can discusstheCar and provide feedback and reactions to the ongoing campaigns. Exemplary uses of socialchannel to inform, listens, and respond. I am not sure but I believe; these channels alsoenjoyed some exclusivity in terms of information. The exact launch date was firstcommunicated here followed by a press release.End of September the New ETIOS website was launched. Facebook and Twitter userswerethe first to know. The website provided information on the ETIOS concept and hadgames,quizzes (all focused towards INDIA First concept). Winners were awarded with some

ETIOSbranded stuff. Website used as a teaser and to further strengthen the India Firstmessage. Thelaunch of the vehicle was live on this website. One will be surprised to note that thecontentof the website changed the minute the vehicle was officially launched @Bangalore.Suchmeticulous planning and exemplary execution.



The following strategy was a great example of multi-channel marketing. Following werethefeatures :Analyze this information and one will find some best practices for Multi ChannelMarketing:

1. Use the channel as per its Merit2. Each Channel needs to have its unique message but with a single objective3. Distribute the three key functions of Marketing( Inform, Engage and Listen) acrosschannels4. Create an ecosystem to provide seamless experience to the customers5. Continuously monitor and study the channel effectiveness6. See if channels can be provided some exclusivityWe are not sure of the sales figures that ETIOS will have in future, but for the time beingthemarketing team has exactly delivered what they would have envisioned 10 Monthsback.


Q) Where have you seen different advertisements of Toyota?Interpretation:

Marketing campaign of Toyota is mainly through television and through auto magazines.Toyota is such well known brand in the Indian market its market¶s itself onlywith a new product. The rest of the marketing of Toyota is done with hoardings installedinurban cities and with promotional campaigns.Newspapers

Fig 4.1.2022%

35% 28%

15%

Marketing MeansAutoMagazines TV Others

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when it is outProject Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 84

4.1 Conclusion:

The Indian car market has transformed drastically over the years with more and moreglobalcar-makers hitting Indian streets aggressively. Volkswagen is a late entrant. Whileentering anew market it is extremely crucial for a company to understand the business viability, tounderstand the environment it plans to conduct business in and most importantly tounderstand its customers. For Volkswagen this is the right time since the automobilemarket



dealerships and ensure that manufacturing takes place in India only On the other handToyotais an old player in the Indian; the company understands the needs and aspirations of theconsumer. Toyota needs to advertise as well as market their product little more with

competition increased by the entry of Volkswagen in India.5.2 Limitations:

The research study suffers from following limitations:� The Pune market was too vast and it was not possible to cover each and everycustomer in the available short span of time.� Generally, the respondents were busy in their work and were not interested inresponding.� Respondents were reluctant to disclose complete and correct information aboutthemselves and their organization.� Most respondents were reluctant to provide exact information as in why theypreferred particular company¶s car.�

The research was conducted in present prevailing conditions. There can be somefluctuations in the market, which can offset the findings.� The project is carried out for the period of 3 months only.� Measurement of customer satisfaction is complex subjects, which uses non-objectivesmethod, which is not reliable.� The sample unit were only 100 respondents.Project Report Symbiosis Centre For Management Studies (UG)A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 86

Bibliography

Journals

1. Marketing Application Project: Volkswagen New Beetle

2. Consumer Behaviour in Indian Car Market3. Determinants of Competitiveness of the Indian Auto Industry4. Indian Auto Industry An Overview: ACMA5. Sify Automobile Industry Analysis6. Volkswagen Power train Strategy .7. 4ps Toyota8. Economic Times9. Auto Car India5.2.2 Websites

1. http://www.wikipedia.org/2. http://www.google.co.in/

3. http://www.overdrive.in/4.http://www.acmainfo.com/docmgr/Status_of_Auto_Industry/Status_Indian_Auto_Industry.pdf 5.http://www.angelfire.com/electronic2/nichole_thurm/images/New%20Beetle%20Market%20Analysis.pdf 6. http://www.viewsline.com/Interview.jsp?id=27801&/__LUTZ_KOTHE,_HEAD_-



_MARKETING,_VOLKSWAGEN_GROUP_SALES_INDIA/__Innovation_is_the_Backbone_of_VW's_Marketing_Strategy.html7.http://www.4psbusinessandmarketing.com/21102010/storyd.asp?sid=4096&pageno=18. http://economictimes.indiatimes.com/news/news-byindustry/

auto/automobiles/Volkswagens-Polo-drive-hit-by-partsshortage/articleshow/6249760.cms9. http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/marutisuzuki-to-supply-a-star-to-volkswagen/articleshow/7553049.cms10. http://economictimes.indiatimes.com/news/international-business/Volkswagen-to-crack-7-mn-global-sales-in-2010/articleshow/6976668.cms11. http://www.autocarindia.com/


AnnexureQuestionnaire- VolkswagenQuestionnaireResearch ProjectA comparative study of effect of Marketing Techniques of Volkswagen and Toyota

Under the Able Guidance of Mrs. Ahuti Mishra

Name: Contact No.:Occupation: Organisation:

Place: Date:

Annual Income:

Questions

Q1) What type of car do you prefer?

Small Car (Hatchback)Mid SegmentMUV (multi utility Vehicle) SUV (Sports Utility

Vehicle) Luxury

Q2)Which car makers you will prefer on reliability?

European Japanese American Indian Korean

Q3) What attributes you expect from cars of Volkswagen and Toyota?

Technology Price Engine Quality Brand Name Others

Volkswagen Centric

Q4)Do you own a Volkswagen Car?

Yes No Planning to Buy One

Q5) Do you know theMeaning of DAS AUTO?

Yes No

Q6)Which car of Volkswagen you are planning to buy?Skoda Fabia Skoda Octavia Skoda Laura Skoda Yeti Skoda Superb

Volkswagen Polo Vento Jetta Passat Touareg Phaeton

Beetle


Q6) Why you want to buy that car?

Q7) Have you seen rallies organised by Volkswagen in Chennai in order to promote Polo?



Annual Income:

Questions

Q1) What type of car do you prefer?

Small Car (Hatchback)Mid SegmentMUV (multi utility Vehicle) SUV (Sports Utility

Vehicle) Luxury

Q2)On the Basis of reliability which of the following you will prefer?

European Japanese American Indian Korean

Q3)Volkswagen and Toyota are known for their :

Technology Price Engine Quality Brand Name Others

Toyota CentricQ4)Do you own a Toyota Car?

Yes No Planning to Buy One

Q5)From the following which car of Toyota you are planning or want to buy?

Toyota Etios Toyota Innova Toyota Corolla Altis Toyota Fortuner

Toyota Camry Toyota Prius Toyota Land Cruiser

Q6) Why you want to buy that car?

Project Report Symbiosis Centre For Management Studies (UG)

A Comparative Study On The Effect Of Marketing Techniques of Volkswagen & Toyota Page 91Q7) In your opinion, what would be the primary reason for Toyotas rising marketing share in India?

Value Delivery NetworkMarket Positioned Pricing StrategyMore for the same- value

proposition GreatUSP

Q8) What do you know about Toyotas after sales service?

Q9)From the following which of the marketing strategies of Toyota affect you the most?

Price Effectiveness Innovation Q-class development Customer oriented

Q10) How was your experience at the Toyota Dealership?

Outstanding Very good Good Poor Never Been to one

Q11) How do you rate Toyota promotional strategies used by launching Etios?( Creation of all new Q

class for Indian Customers. The new Toyota hatchback is said to have been designed for the mass

volume segment of the Indian market and will compete in theR

s.3-5 lakh price band. Toyota iscommitted to give their customers a Q-Class experience through a sales and servicenetwork that will be expanded to 150 dealerships by the end of this year.)


Q12)How do you rate use of BLu-fi technology in CCD? (Toyota promoted Etios that people would

get exclusive offers in CCD if they switch on their Bluetooth upon accepting, they were delivered an

exclusive coffee offer from Toyota that urged them to visit the nearest CCD outlet to avail the same.)


Q13) Where have you seen different advertisements of Toyota?

Newspapers Auto magazines TV Others

Q14)What do think of Toyotas Customer First Philosophy.

Outstanding Very good Good Very Good

Q15)In your opinion has Toyota been able to establish a brand name by using unconventionalmarketing techniques?

Yes No Cant Say

Q16) In your opinion has Toyota been able to capture market-share pre-occupied byMaruti,

Hyundai and Tata?

Yes No Cant Say

Q17) Are you a loyal customer of some other Brand?

Yes No




Q18)What are your expectations from the company in the near future?

Q19)From the following promotional strategies you like the most:

� Toyota enabled interested customers to visit a special website about Prius development as

early as two years before the introduction of the product. Toyota used focus groups and

Clinics with target consumers to evaluate different aspects of the Prius.

� AR Rahman as the brand ambassador of Toyota Etios

� Targeting professionals who prefer comfort in the city by launching Corolla Altis

� Launching Fortuner with its bold looks and price less than other SUVs

.

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