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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.
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.
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.
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
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%
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.
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.
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
Product o To address the three segments we need different versions of the new Toyota Avanzao First segment is young students : o Sport version to address the styling and road performance needso Second segment is young professionals : o Segment can choose from the standard version, sport version, or eco version depending on their attitudeo Third segment is older people : o Eco version to address the economic concern
Price Standard Version Rp.100 million Eco Version Rp. 120 million Sport Version Rp. 150 million
Place Use Five Main Dealers Auto 2000 PT New Ratna Motor NV Hadji Kalla Trd Co PT Hasjrat Abadi PT Agung Automall
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