created by syndicate 4, MBA ITB 46A

1. The Rollout

2. The Issue

 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.

3. Status Quo Analysis

 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.

4. 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.

5. Status Quo Analysis

 Market
 In 2002 Toyota gained the most shares by 26.5%
Daihatsu, 6 Honda, 4
.4
Isuzu, 8.3 Toyota, 26.
5
Suzuki, 20
Mitsubishi,
23.7

6. Status Quo Analysis

 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%

7. 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.

8. 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.

9. segmentation targeting positioning


Indonesia
Young students :
 From wealthier family

 Jakarta : 35% user.
Out side jakarta : 65%
(51,5% in Java)



Low = range 1000-1600cc
Size and roominess
Low cost maintenance
 Depend on their parents
 Median of 23 years old  Sumatera (7,4%)  Fuel economy best among all
 Main concerns and needs : competitors
 Styling  Kalimantan (1,7%)  Engine : most efficient
 Road performance
 Sulawesi (2,5%)  Advance and modern style
 Young professionals:  The biggest market is in  Fun to drive and ride
 Just started career
 Small business Jakarta, followed by West  Multipurpose car
 Median of 30 years old Java (29,4%) and East Java
 Young family  Minivan body concept
 Main concerns and needs : (14,2%)
 Economic
 Styling  Java is the center of the low
 Road performance 4x2 segment
 Older people :
 Worked as staff/manager
 Small business
 Median 43 years old
 Low education
 family
 Main concerns and needs :
 Capacity
 Economic

10. 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

11. Price

 Standard Version
Rp.100 million
 Eco Version
Rp. 120 million
 Sport Version
Rp. 150 million

12. Place

 Use Five Main Dealers
Auto 2000
PT New Ratna Motor
NV Hadji Kalla Trd Co
PT Hasjrat Abadi
PT Agung Automall

13. 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

14. Thank You !!!
