1

Toyota Marketing Plan for 20162018 for Etios VX Petrol

Executive Summary

Toyota Motor Corporation is entering the Indian market with the Sedan version Etios VX
Petrol. Judging by the automobile industry in India and the pace of the automobile growth
rate in India it is necessary to devise a plan that will be efficient cost effective and yet have a
positive impact on the sales revenue for Toyota Motor Company. The market scenario in
India is that the growth rate is below 2% because of the increase in the prices of fuel, the
Indian mass population prefer small m more fuel efficient cars or they would rather goes for
diesel eco friendly cars. If vehicles are out of their budget the motorcycles are the next fastest
personal transportation that is used in India for communication and transportation.
The purpose of this study is to analyze the factors that affect the automobile sales in India and
to be able to create an effective strategic marketing plan for the India region only taking into
account the risks level and creating a contingency plan as well that will be used in case of the
risk probability being high in the India region for Toyota Motor Company.
The industry performance in India of the automobile sector as per statistics has been
encouraging but subdued. A total of 23, 366,246 vehicles of all types has been produced.
Over 2014 the growth rate has been8.68 percent
The sale of Passenger Vehicles was 3.90 percent in April-March 2015. Personal Cars and
Utility -Vehicles registered growth was by 4.99 percent and 5.30 percent.
The sale of vans was (-)10.19% respectively
The Commercial Vehicles segment registered de-growth of (-) 2.83%.
Medium & Heavy Commercial Vehicles growth rate was 16.02 percent
Light Commercial Vehicles sales dropped by (-) 11.57%
Due to price hike in fuel the Three Wheelers sales increased by 10.80 %.
The Two Wheelers , Scooters, Motorcycles and Mopeds saw a growth rate of 25.06 %,
2.50% and 4.51% respectively in 2015.

In view of the above figures the Sedan marketing plan has to be one that will not be just an
expenditure of a large amount but it will provide the expected impact in the Indian market for
the above mentioned model. For the period of 2014 to 2015, 141,887 vehicles and registered
a growth of 10.15% in the Indian market, it has yet to break into the Indian market with large
competitors like Maruti Suzuki, Hyundai and Honda. This is one of the main reasons why it
is necessary for Toyota Motor Company to provide a marketing plan to the Indian division
that will be increase not only the market share but also the registered growth in terms of sales
for the region. (Auto Car,2016)

Table of Contents
Executive Summary..................................................................................................... 2
1.

Introduction........................................................................................................ 5
1.1

2.

The Marketing Plan............................................................................................... 9

2.1

Competitor Analysis...................................................................................... 11

2.2

The Marketing Strategy.................................................................................. 12

2.2.1
3.

4Ps of Marketing...................................................................................13

Implementation Plan............................................................................................ 15
3.1

4.

Marketing Objectives...................................................................................... 9

Contingency Plan......................................................................................... 15

Conclusion........................................................................................................ 15

References.............................................................................................................. 16

1. Introduction

The illustration (1) is the image of a Toyota Etios VX Petrol sedan which is gaining in
popularity and registered a sales growth rate of 10.5% in India. The increase of the sales of
this sedan has been slow but steady.

Illustration (1) The Etios VX,Sourcel http://carzoom.in,2016

The details of the engine specifications are detailed below in illustration (2)The details of the
engine specifications are detailed below in illustration (2) The table shows the full details of
the engine specification of not only the petrol version but also the diesel version of the Toyota
Etios Sedan.
Toyota Etios Diesel
Engine Type:
Engine Size:
Max Power:
Max Torque:
Transmission:
Wheel-Drive

4-cyl, 16V, DOHC type Diesel engine

1496cc
88.77bhp@5600rpm
132nm@3000rpm
5 speed Manual (MT)
FWD

Toyota Etios Petrol

Engine Type:

4-cyl, 8V, SOHC D-4D type Petrol engine

Engine Size:
1364cc
Max Power:
67.07bhp@5600rpm
Max Torque:
170nm@1800-2400rpm
Transmission:
5 speed Manual (MT)
Wheel-Drive
FWD
Illustration (2) Engine Specifications, Source: Carzoom,2016
The maintenance charges of the Toyota Etios both diesel and petrol version is illustrated in
illustration (3). This is one of the key points that need to be highlighted in the marketing plan
for the sedan that will be created in the next section of the paper for Toyota Motor Company.
Toyota Etios Diesel Cars Maintenance Charges

Service KM
Months Free/Paid
1
1000
1
Free
2
10000
12
Free
3
20000
24
Free
4
30000
36
Paid
5
40000
48
Paid
6
50000
60
Paid
7
60000
72
Paid
8
70000
84
Paid
9
80000
96
Paid
10
90000
108
Paid
Total maintenance cost in 9 years
Toyota Etios Petrol Car Maintenance Charges
Service KM
Months Free/Paid
1
1000
1
Free
2
10000
12
Free
3
20000
24
Free
4
30000
36
Paid
5
40000
48
Paid
6
50000
60
Paid
7
60000
72
Paid
8
70000
84
Paid
9
80000
96
Paid
10
90000
108
Paid
Total maintenance cost in 9 years

Price In Rs.
0
1,807
1,807
3,332
3,557
2,957
3,332
2,957
4,557
3,332
Total- 27638
Price In Rs.
0
1,580
1,580
3,130
4,330
2,730
3,130
2,730
4,330
3,130
Total- 26,670

Toyota Etios Petrol Car Maintenance Charges

Service KM
Months Free/Paid
1
1000
1
Free
2
10000
12
Free
3
20000
24
Free

Price In Rs.
0
1,580
1,580

4
30000
36
Paid
5
40000
48
Paid
6
50000
60
Paid
7
60000
72
Paid
8
70000
84
Paid
9
80000
96
Paid
10
90000
108
Paid
Total maintenance cost in 9 years

3,130
4,330
2,730
3,130
2,730
4,330
3,130
Total- 26,670

Illustration (3) Maintenance Charges of Both the Petrol and the Diesel Versions, Source:
Carzoom,2016
The price of the sedan is between Indian Rupees 6.03 to 8.45 lacs in Indian rupees. The key
feature of this sedan is the powerful engine of 1.5 l D-O-H-C developing a maximum output
of 88.77 /bph &132 Nm torque. The mileage per litre is only 16.78 which needs to be
improved as Hondas Amaze in the same price range has a mileage of 18.0 km/l.
The transmission of the car is efficient. The ride height is lower than Honda which makes it
Toyotas major competitor. ON highways the car is unbeatable but it needs to be modified for
Indian pot holes and badly maintained road and bumpy crooked rides. The boot space is very
large and spacious, it has the latest DN -2 music system and a premium appearance that is
perhaps more expensive than the price of the car. The colors in which the sedan is available in
India since it was launched in 2014 are silver, beige red black white and grey. The
transmission in the sedan is not automatic but manual, it has a 5 speed gearbox attached to it.
The measurement of the width of the tyres is:
In the Front: 185/60 R15 (Tubeless)
At the Rear End: 185/60 R15 (Tubeless)
The Front: McPherson Strut
The Rear: Torsion beam
The safety features of the car is another area that needs to be kept in mind for the marketing
strategy as it is the best model in Indian with the highest quality of safety features which is
more than its main competitor Amaze Honda. It has the driver and front passenger airbags,
Anti-lock braking system, buzzer warning for the seat belt, child safety lock, parking
sensors, Electronic braking distribution, the fog lamps, immobilizer for the engine, locking

that is remote and central, traction control system, door ajar warning system DiN audio
system that has Bluetooth, USB- Support, steering with mounted controls, power windows
with auto down, A/C with heater, clean air filter power steering wheel and front-rear map
pockets, front cabin lights, chrome accented gear knob, height adjustable drivers seat, 12V
charging socket, cooled glove box, two tone interiors, driver- passenger sun visor.
With all the above features the car is in a price range that is for the upper middle class
segment and the wealthy segment who do not wish to show money publicly but have a life
style and live I comfort. The price range of the care is a psychological factor that is
suggestive to the buyers in India that it is a better car than Honda, the technology and the
engineering is excellent but the sedan is not flashy and has the typical resemblance to the
image of the company which is a quiet dignified existence with a tough and powerful internal
environment. The above introduction of the car has been necessary to be able to build the
marketing plan for the sedan in the next section.(Snap Deal,2016)

1.1 Marketing Objectives

The objectives of the Toyota Marketing Plan are to be able to understand the marketing and
the competitive environment in which the sedan gas to be sold.

Study the competitors marketing strategies

Increase the market share of the sedan
Create a high level of brand awareness and brand image
Maintain excellent standards in after sales services and customer relationships

Illustration (2) The value Dimensions of the Marketing objectives, Source: ACG, 2015

2. The Marketing Plan

The purpose of the marketing plan is to increase Toyotas market share and sales growth for
the sedan. The purpose of the objectives as mentioned above is that the customer is the end
user of the sedan, what needs to be taken into account is the cultural dimensions of the Indian
automobile environment, and the types of personalities that would buy the sedan. Under both
the cultural dimensions and the personality what will be taken into account are the attributes,
the benefits and the values.
After taking the above into account, finally the sedan will be repositioned in the market so
that the brand of the sedan can fit into the culture of the Indian environment, the position in
the Indian market is one that will increase the sales growth from 10.8% in 2015, provide
value as per the changing economic environment in India and yet be able to compete with its
strongest competitors in India.(Siam,2016)
Market Form: The Toyota market has competition from Maruti Suzuki, Hyundai and most
of all from Honda from its Honda Amaze sedan. With Honda it is a case of perfect market
form which Toyota has to try and superseded with the marketing plan.
Structure Conditions: Toyota as a company is aware is of the perfect market form of Honda
who is the main competition in the Indian environment. Due to this structure it is necessary

10

for Toyota to convert customers to its price range and the new Etios sedan as all the
competitors are targeting the same customer segment for their auto sales ion 2016 -2018.

Illustration (3) Global Structure Condition of the Competitors of Toyota Motor Company,
Source: Damadi, 2015

2.1 Competitor Analysis

The analysis of the competitors of Toyota is illustrated below. The purpose for providing the
competitor analysis in this marketing plan is to understand the exact position of Toyota Motor
Company in the India auto market and clarify the reason for the type of marketing strategies
that have been developed for this marketing plan.
Graph (1) shows that the global position of Toyota in motor sports and motor cycles is (1)
while the Honda Motor Company which is its main competitor in auto sales in India is (+).
Graph (2) shoes that in automobile products and autos of different types Toyota lags behind
both Yamaha and Honda and the graphs is (-).

11

Graph (3) below shows that in service,maintenance and in resale value of its cars Toyota is
the same as Honda this is a positive point for Toyota Motor Company as the only two types
of automobiles that have a resale value in Indian market as per the global market leaders is
Toyota and Honda. Graph (3) shows only Toyota and Honda as (+).

Graph 1: Motor Sports and Motor cycles Position of Toyota globally

Graph (2) Toyotas Position in Global Auto market and Automobile Products

12

2.2 The Marketing Strategy

The 4 Ps of marketing will also be used in the mixed marketing strategy that is best suited for
the Indian auto market and auto consumers. The details of the marketing strategy are
provided below and the tactics will be based on the strategy. The marketing strategy that will
be followed is one of a marketing mix strategy that will target the middle level economy and
the upscale economy in the India.

Graph (3) Toyotas Global Position in Maintenance and Resale Value

The purpose is to penetrate the young urban professional consumer market that have the
means to buy a sedan and since most of the urban professionals get married as soon as they
are employed in India a Sedan is what they need for the family. Secondly it is an investment
for the young urban professionals in India as the sedan has resale value.(WSU,2016)
2.2.1

4Ps of Marketing

Price: Since the launch in 2014 the price of the sedan has been fixed and there has been no
change. The target obviously has been Honda which is the only one that has a sedan of a
similar design in the same price range and a little lower. Some of the costs of distribution,
production and maintenance need to be reviewed and lowered so that when there is a choice

13

for the consumer between a Toyota Sedan and a competitors sedan, the consumer will choose
the Toyota as it has investment value.
Promotion: Toyota must take care that the promotional events of the sedan should start at
universities and professional training centres where the first job itself will enable the
customer to afford a sedan. The second area is that the Toyota promotional events should be
upscale events and not mass promotions as the car cannot be afforded by the masses. The tie
ups with financial institutions should be such that the financial institutions give a lower rate
of interest to the customers who buy a Toyota sedan.
Even a small difference will increase the sale by leaps and bounds as compared to the sales of
other automobiles of competitors. The advertising should be unique and unusual like the
Toyota service advertisement that has been launched in India. The tactics for the marketing
strategy should be simple like unusual world class advertisements, engaging the customers on
social media, online advertising and event promotions.
Competitions should be held where it becomes possible to win a Toyota sedan as a prize both
physically and in online competitions with a trip to Japan, Toyota headquarters with paid
tickets, travel money and shopping all paid for by Toyota Motor Company. There is every
chance that with his unusual promotion the Toyota sedan sales will beat all other car sales in
Indian in 2016.
Place: The above marketing strategy will be sued in the Indian region ply, and the business
partners of Toyota will be inspected to see that the showroom are in places where it is
convenient for the customers to visit and to take a decision about buying the sedan, the
ambience of the places that sell Toyota Etios in India should be such that it is possible to
engage the customer in the showroom long enough to make the customer take a positive
decision, the accessories of the Toyota sedan should be so displayed that with the sedan the
accessories will be considered must have items which tie customer will buy simultaneously.
The place of sale in every city that the Toyota Etios will be sold must reflect the quire t
elegance and dignity of Toyota Motor Corporation in a uniform manner to send out the
message to the consumers that the after sales service and maintenance is uniform all over
Indian no matter where a customer buys the sedan.
Product: The product must contain eh variables that are essential to hood the attention of the
customer long enough to make a sale. The sedan reflects the image of Toyota and the heavy

14

weight of Toyota Motor Corporation, but the way to actually sell the product is to educate the
masses about the reason why a Toyota sedan should be bought this is because there are many
wealthy and upscale Indian s who have money but hunger for special status and a name
which people will know and recognize.
The sedan should be portrayed as a sign of not just successes but known success. The levels
of brand insistence must be encouraged among the customers so that all customers loyal to
Toyota sedan brand will also find obstacles being removed from daily life in the professional
sphere, A review of this tactic can be done every 3 months to modify the tactics.
(Mondal,2015)

3. Implementation Plan

The plan will be put in action in all the cities at the same time, a team will be formed that will
go to every centre to train the business partner teams and to okay the type of employees that
have been selected. The team for Toyota H.Q. will oversee the entire marketing plan strategy.
It should be monitored on a weekly basis across the country. The Toyota marketing plan
should be implemented within 60 days to gain benefit of the New Years in April when the
Indians buy assets to ring in the New Year.
3.1 Contingency Plan

Illustration (4) Contingency Plan, Source: Wayne State University,2016

15

4. Conclusion

The marketing plan will therefore be one that will take into account the stiff competition that
Toyota faces from the well established Japanese company like it self- Honda, it also faces
competition with Hyundai and the giant in India which is Maruti Suzuki that has registered
the highest sales of automobiles in India for 2015. The marketing plan will have to be able to
cope with the existing Honda marketing strategy and the Maruti marketing strategy even
though it is in a different price range, with Honda the competition is neck to neck therefore a
close study of the Honda marketing strategy has to be focus on, to create a sales growth
though product and price differentiation, the strong point of the marketing strategy is the after
sales service and the maintenance of the sedan

References

Auto Car (2016) India Sales Analysis: March 2015,www.autocar.pro.in, retrieved on January
12th 2016
Car Zoom (2016) Toyota Etios Users Asked Questions, Car Zoom, www.carzoom.in, .,
retrieved on January 12th 2016
Damadi, E.(2015) Honda Marketing, Magister Management,pp:1-16,pdf., retrieved on
January 12th 2016
Mondal, D. (2015). "Going Native", Business Today. www.business today.com, retrieved on
January 12th 2016
Snap Deal (2016) Toyota Etios- Petrol, www.snapdeal.com, retrieved on January 12th 2016
Siam (2016) Overview: Industry Performance in 2014- 2015, www.siamindia.com, retrieved
on January 12th 2016

16

WSU (2016) Automotive and Defense Analytics, Contingency, Wayne State University,
www.engineering.wayne.edu, retrieved on January 12th 2016