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One may wonder why Toyota, a multibillion-dollar corporation, would even attempt to penetrate the Indian market. Afterall, the country has a significantly low number of drivers with only 16 cars per 1000 people. The answer: researchers have estimated the country’s car market will grow 10% per annum against the global rate of 5% . It’s time for Toyota to dominate an emerging market that remains untouched by their largest global competitors, GM and Volkswagen.
6Primary MarketToyota’s new primary market is rural India. The South Asian branch plans to sell 40% of its cars to the low-middle class rural market, a drastic change from their metropolitan focus . Toyota has aggres-sively begun expanding dealership operations in the countryside concentrating on selling the Etios and Liva, powerhouse family hatchbacks capable of withstanding inclement weather and tough rural condi-tions. Rural buyers demand cheap vehicles that promise longevity. In response, Toyota has lowered their initial prices and promised readily available spare parts during servicing . These methods will help the company capitalize on a price sensitive market.Secondary MarketThe organization’s secondary market remains its strongest to date: average Indian citizens with mid-dle-class incomes. Family-oriented passenger vehicles and workhorse-like utility vehicles are Toyota’s most widely produced and purchased models. The Innova, which targets parents between 35-40 years of age and adults with new, growing businesses, continues to be the country’s most preferred car . This branding strategy allows Toyota to effectively cover both family and work-oriented markets.Tertiary MarketThe increased purchasing power of the Indian middle-class has led to new opportunities for the Toyota Prius as well, a hybrid-electric car. India has one of the world’s fastest growing economies, which means thousands of citizens now have higher disposable incomes and are willing to purchase a quality vehicle like the Prius. The Indian government would also provide Toyota with substantial subsidies and tax benefits if they launched an environmentally friendly car. The State Bank of India decreased inter-est rates on automotive loans in 2009, further empowering consumers and allowing them access to the Prius .POINTS OF DIFFERENCEAffordability, reliability, and innovation are words Toyota Kirloskar Motor (TKM) strives to associate its Indian brand image with. In combination with spaciousness, comfort and superior energy-efficiency TKM has assembled the perfect ingredients to appeal to a wide range of Indian consumers.To accommodate their primary market, price-sensitive low-income rural families, Toyota crafted the Etios and Liva. These inexpensive family vehicles are equipped with dual front airbags and a clean engine designed to meet EURO 4 exhaust emission standards . This deftly handles two issues: safety and a growing sense of responsibility to avoid further polluting the Indian environment. Figure