1. Executive Summary
Toyota Motor Corporation entered India in 1997 in a joint venture with the Kirloskar Group. Toyota Kirloskar Motor Private Limited is a subsidiary of Toyota Motor Corporation of Japan, for the manufacture and sales of Toyota cars in India.
The company Toyota Kirloskar Motor Private Limited (TKMPL) according to its mission statement aims to play a major role in the development of the automotive industry and the creation of employment opportunities, not only through its dealer network, but also through ancillary industries with a business philosophy of "Putting Customer First".
TKMPL's have plants at Bidadi and Bangalore with capacity of 80,000 and 70,000 vehicles per annum respectively. Both plants have a combined capacity of 150,000 vehicles per annum. On 16 March 2011, it announced that it was increasing production to 210,000 vehicles per annum due to increase in demand for its models especially the Etios and Fortuner.
With effect from June 1, 2012, Toyota Kirloskar Motor increased the prices of Etios diesel and Innova by 1 per cent and Fortuner and Etios Liva diesel by 0.5 per cent. The price hike is on account of the weakening of Rupee. Toyota is boosting its production as plans to hike the production capacity of its Etios series models by 75%.
Toyota Kirloskar Motor has launched its Waku Doki Q Service Campaign from July 16- September 15, 2012. The campaign provides free check-ups and custom offers on Toyota cars across Toyota dealerships in the country.
2. Situation Analysis
2.1 Market Summary
2.1.1 Market Demographics:
As population is growing rapidly, lead to significant increase in the demand for automobile and the consumers are more likely to evaluate the differences and improvement in various automobile before they made their choice. Thus at the beginning, Toyota concentrate first both the techies and the early adopter who are willing to take risks and are attracted by the advanced technology of the Prius. Due to the swift growing in concerning about the environment, Toyota focused their targets on the environmentally conscious customers plus the customers who were desired for more fuel efficiency.
2.1.2 Market Needs:
Finally, the products are distributed among various dealers. Dealers place an order with the company in advance as they receive it from the customer. They are given a due date at which the goods would be delivered to them. As soon as they receive it, it is the dealer’s responsibility to hand it over to the end customer. Toyota’s dealers are such that high percentage of the vehicles is delivered from a few dealers itself.
This is how the supply chain of Toyota works.
In order for the supply chain to run smoothly and efficiently, Toyota has various...