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Toyota and Honda Case Study

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Toyota and Honda Case Study introduction, comparison , market Strategies, 4Ps , History etc

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Toyota and Honda Case Study

  1. 1. Introduction: • Japanese Multinational Company • Headquarters in Minato , Tokyo , Japan • Primarily Known as manufacturer of automobiles and motorcycles HISTORY: • Founder :- Soichiro Honda • Founded:- September 24,1948 • The first production automobile :- T360 mini pick- up truck
  2. 2. PRODUCTS: •Fit •Civic •Accord •Insight •CR-V •Ridgeline •Pilot and Odyssey.
  3. 3. Price: • Varies Car by Car • In Pakistan: The new models of Honda automobiles in Pakistan range in minimum of 15 lacs Place: • In Pakistan: • Head Office is in Lahore • Many Large showrooms in big cities i.e. Peshawar, Karachi, Islamabad, Multan ACCORD: 4600000 Rs CR-V : 4200000 Rs CIVIC(AUTO): 1900000 Rs CIVIC: 1820000 Rs CITY: 1200000 Rs
  4. 4. Parts/ Service Promotions: • Longer Life Tires New Price Promotions: • Honda Graduate Program HONDA promotes its products through; Ads, billboards, tv, Sponsoring sports events Customer service Environment friendly automobiles Through Websites
  5. 5. HONDA official slogan is HONDA has never used its slogan to sell its products but it was Mr. HONDA’s belief that it will built products sell themselves.
  6. 6. We see "The Power of Dreams" as a way of thinking that guides us and pushes us forward. The strength of our company comes from this philosophy — which is based on the visionary principles of our founder, Soichiro Honda. We see the world not as it is, but as it could be. We see the world through the eyes of dreamers. Because we are a company founded by a dreamer. And we are a company built on dreams.
  7. 7. HONDA has segmented its market in a way that its: ACCORD &CR-V is for elite class HONDA CIVIC for upper middle class HONDA CITY for only middle class
  8. 8. Honda always has targeted upper class groups, upper middle class, and middle class & have been very successful in maintaining its target market and providing with the products of their needs.
  10. 10. Brand name image Smoother drive as compared to competitors Efficient performance Quality – ISO Certification Highly loyal, committed and motivated employees Hardworking, experienced and qualified staff
  11. 11. Honda in Pakistan has a lower sales value than Suzuki and Toyota. Its Distribution Centers are less People of Lower Class are unwilling to buy it because of its image as high status car Honda’s are expensive to buy and maintain then its counterpart rivals. It faces a long road in gaining trust and making ways to remove the image that Honda’s are unreliable cars.
  12. 12. Customers realizing quality matters, as problems are already cropping up in new entrants models Initiatives and proposals in process for coping with increased demand of bikes Newer segments introduced with entry of new models, design, which still have huge potential for growth Karachi, a segment which has tremendous potential for growth and profitability.
  13. 13. Crucial economic conditions of Pakistan can lead to the decreased sales . WTO (World trade Order) opening local markets for global competition Competitors launching newer models with stress on reduced price for our price-sensitive economy proving serious threat in near future The biggest threat for HONDA is TOYOTA
  14. 14. Introduction: Japanese Multinational Company Headquarters in Toyota,Aichi,Japan. Primarily Known as manufacturer of automobiles Toyota Motor Corporation is Japan’s number one carmaker. HISTORY: Founder :- Kiichiro Toyoda Founded:- August 28, 1937 Launched their first car (SA model) in 1947
  15. 15. PRODUCTS: Camry Corolla 4Runner Land Cruiser Sienna Lexus Yaris
  16. 16. Price: Varies Car by Car Too In Pakistan: CARS: Minimum 10 lacs to 20 lacs SUVs: Minimum 50 lacs to 2 Crore Corolla 1.3L GLi Rs. 1,621,300 Corolla 1.3L XLi Rs. 1,491,300 Corolla 1.6 GLi A/T Rs. 1,786,300 Altis 1.6 M/T Rs. 1,859,500 Altis 1.6L M/T SR Rs. 1,949,500 Camry (Auto) Rs.7,999,000 Camry(Manual) Rs. 7,799,000 Land Cruiser Prado Rs.16,899,000
  17. 17. International Presence: Over 170 countries worldwide In Pakistan: Many Large showrooms in big cities i.e. Peshawar, Karachi, Lahore ,Islamabad, Quetta,Multan,Faisalabad etc.
  18. 18. PARTS AND SERVICE PROMOTION: EARLY BIRD SERVICE 60MINS SERVICE SALES PROMOTION: Toyota have excelled in public demand and mainly in price issues. TOYOTA promotes its products through; Ads, billboards, tv, Sponsoring sports events Customer service Through their websites
  19. 19. TOYOTA official slogan is This tagline embodies the spirit of constant innovation on the part of Toyota. It lends the associations of quality and technological capability to the brand.
  20. 20. Our mission is to deliver to you, the consumer, the level of service that mirrors the quality and characteristics of our brand. "To sustain profitable growth by providing the best customer experience and dealer support.
  21. 21. Target Market contain SCOIN and CAMRY for young adults LEXUS and SUVs for elite class Hybrid Car PRIUS for economy class COROLLA and CORONA for upper middle class CROWN for upper class
  22. 22. TOYOTA POSITIONED THEIR BRANDS IN: Majestic Quality Commitment
  23. 23. A Motivated and extremely productive work force. Low cost, high quality factory operations guided by just in time. Long-term partnerships with suppliers. Careful market research and short design to show room cycles so as to keep models closely aligned with market demand. Having outstanding labor relations. Strong employment relationship. Long-term relationship with supplier.
  24. 24. Customers not segmented Production operation not very good as the product needs to be reworked Limited Research and Development done as compare to competitors High level of responsibility on employees shoulders Lack of flexibility in the company Continuous stress on employees due to Continuous improvement.
  25. 25. Toyota now have a reputation for manufacturing environmentally friendly vehicles. Producing high quality, small and fuel efficient cars that can attract the consumers. The company has launched its new Aygo, which is targeted at the streetwise youth market and captures (or attempts to) the nature of dance and DJ culture in a very competitive segment. The vehicle itself is a unique convertible, with models extending at their rear! The narrow segment is notorious for it narrow margins and difficulties for branding.
  26. 26. Rising gasoline prices triggered by decisions of the OPEC oil cartel to hike crude oil prices substantially. Continuing appreciation of the yen. Expanding demand in the Japanese auto market. Escalating competition in the low priced car market by the entrance of several newly industrialized countries. Increasing sales of imports.
  27. 27. 0 50 100 150 200 250 HONDA TOYOTA RevenueREVENUE Honda 107.82 Billion US $ Toyota 235.89 Billion US $
  28. 28. 5.2 5.4 5.6 5.8 6 6.2 6.4 6.6 6.8 7 HONDA TOYOTA Operating IncomeOPERATING INCOME Honda 6.87 Billion US $ Toyota 5.82 Billion US $
  29. 29. 0 50 100 150 200 250 300 350 400 HONDA TOYOTA Total AssetsTOTAL ASSETS Honda 139.61 Billion US $ Toyota 370.3 Billion US $
  30. 30. 0 20 40 60 80 100 120 140 HONDA TOYOTA Total EquityTOTAL EQUITY Honda 53.69 Billion US $ Toyota 128.32 Billion US $
  31. 31. 0 50000 100000 150000 200000 250000 300000 350000 HONDA TOYOTA EmployeesEMPLOYEES Honda 178,960 Toyota 317,734
  32. 32. 0 1000 2000 3000 4000 5000 6000 HONDA TOYOTA 1998 PRODUCTION COMPARISON CHART 1998 PRODUCTION COMPARISON CHART Honda 2,300 Toyota 5,200