Toyota Avanza

The Rollout

Syndicate 4:Rafael JosephRieke Rachmi Pramadona Yunus

Economic crisis, drop in consumer purchasing

power caused the price of vehicles far from affordable for the population.

The demand for low 4x2 segment, grow significantly between 2004-2005.

Toyota brand name had been known for its quality and durability.

The Issue

Product

No car had previously been as successful as Kijang (medium 4x2 vehicle) in Indonesia market before.

Toyota does not have the low 4x2 vehicle.

Status Quo Analysis

Company

Toyota has been known as in the market through various car models.

The merger of three company was improve efficiency, quality and effectively face current competition.

Status Quo Analysis

Market

In 2002 Toyota gained the most shares by 26.5%

Status Quo Analysis

Toyota; 26.5

Mit-subishi;

23.7

Suzuki; 20

Isuzu; 8.3

Dai-hatsu;

6.4 Honda; 4

Market

The impact of economic crisis leading to a higher price of an average car.

Fierce of competition in low 4x2 market with dominating old players like Suzuki.

In the year 2000 Toyota sold 90,148 units, increase of market share from 28.8% to 30.2%

Status Quo Analysis

Place

Toyota had networks of 5 main dealers operating 142 sales outlet and 101 after sales outlets.

Supported by 126 highly and modern equipped register repair stations which diverse throughout Indonesia.

Status Quo Analysis

The Challenge

The growth of the low 4x2 market had attracted the car makers to develop new products and win the market. A challenging opportunity for TAM and Toyota.

Indonesia

Young students : From wealthier family Depend on their parents Median of 23 years old

Main concerns and needs : Styling Road performance

Young professionals: Just started career Small business Median of 30 years old Young family

Main concerns and needs : Economic Styling Road performance

Older people : Worked as staff/manager Small business Median 43 years old Low education family

Main concerns and needs : Capacity Economic

targeting positioningsegmentation

Jakarta : 35% user. Out side jakarta : 65% (51,5% in Java)

Sumatera (7,4%) Kalimantan (1,7%) Sulawesi (2,5%) The biggest market is in

Jakarta, followed by West Java (29,4%) and East Java (14,2%)

Java is the center of the low 4x2 segment

Low = range 1000-1600cc Size and roominess Low cost maintenance Fuel economy best among all

competitors Engine : most efficient Advance and modern style Fun to drive and ride Multipurpose car Minivan body concept

Product

o To address the three segments we need different versions of the new Toyota Avanza

o First segment is young students :o Sport version to address the styling and road

performance needs

o Second segment is young professionals :o Segment can choose from the standard version, sport

version, or eco version depending on their attitude

o Third segment is older people :o Eco version to address the economic concern

Price

Standard Version Rp.100 million Eco Version Rp. 120 million Sport Version Rp. 150 million

Place

Use Five Main Dealers Auto 2000 PT New Ratna Motor NV Hadji Kalla Trd Co PT Hasjrat Abadi PT Agung Automall

Promotion

Advertising (TV, Magazine and Radio) Young Students : Sport Events and Social Media

Advertising, Road Show, Students Discount

Young Professionals : Promote Avanza as a car for business use, show car at a shopping malls, cheap credits

Older People : Family Events, Showroom and Promote Avanza Eco Version with gas voucher

Thank You !!!