PREMIER UNIVERSITY
TERM PAPER
Title:- The International Distribution Channel of Toyota
Submitted For:-
Mrs. Sultana Razia Chowdhury
Assistant Professor
Faculty of Business Studies
Premier University, Chittagong.
Submitted By:-
Name:- Shuvodip Chowdhury
Programm:- BBA Major:- Marketing
Student ID:-0613111465
Submission Date:- 18-10-2011
PREMIER UNIVERSITY
TERM PAPER
Title:- The International Distribution Channel of Toyota
Submitted For:-
Mrs. Sultana Razia Chowdhury
Assistant Professor
Faculty of Business Studies
Premier University, Chittagong.
Submitted By:-
Name:- Shuvodip Chowdhury
Programm:- BBA
Major:- Marketing Student ID:-0613111465
Submission Date:- 18-10-2011
LETTER OF TRANSMITTAL
To
The Supervisor,
Faculty of Business Studies
Premier University, Chittagong.
Sub:- Prayer for accepting term paper.
Madam,
I beg to state that I am a student of business faculty of premier
university, chittagong. My major was Marketing. and my ID is:-
0613111465. Recently you give us term paper topics. My Term paper
topic is “ The international Distribution channel of Toyota”. I try my
level best to collect information as much as I can.
I hope that you would be kind enough to accept my term paper and
oblize there by.
I remain
Madam
Date:- 18-10-2011 Your most obedient pupil
Shuvodip Chowdhury
Programm:- BBA
Student ID: 0613111465
ACKNOWLEDGEMENT
At the beginning of the term paper, I am grateful to the Almighty God
to help me to complete my term paper successfully and within a time.
Without his blessings, it is not possible for me to complete my term
paper within just time. Then I would like to give thanks to my
supervisor “ Mrs. Sultana Razia Chowdhury, Honourable Assistant
professor of marketing department of Premier University” who give me
this type of exciting topic. At the time of collecting information, I learn
many things about Toyota. Finally I also like to thanks Mr, Nasimul
Gani, Mr, Sayed Irshad Raihan, the honourable Deputy manager of
Chittagong sales office of Toyota motors who provide me information
as much as they know. Other staffs also provide information. I also
thankful to the Mr. Atiqur Rahman Sazib who provide me many
information.
TABLE OF CONTENTS
Chapter:- A ***** Introductory Aspects:-
A.1 Introduction
A.2 Objectives
A.3 Methodology A.4 Scope
A.5 Limitations
Chapter:- B
****** Theoratical Aspects
Chapter:- C
****** Practical Aspects:-
C.1 Sample enterprise at a glance
C.2 Findings
C.3 SWOT Analysis
C.4 Summarized View
Chapter:- D
***** Concluding Aspects:-
D.1 Conclusion D.2 Recommendations
D.3 References
D.4 Appendixes
Statement of Problem
**** Topic Name:-
The International Distribution Channel of Toyota.
**** Reason For Selecting Topic:-
Toyota Car is famous in world wide. In Brand position, it is now in
11th position within the other brand. But I did not have enough
Knowledge about Toyota Car. From that perspective, I select this
Topic to know something new about the Toyota Company and their
Car.
OBJECTIVES
To Find out the information regarding international distribution
Channel of Toyota. It was primary target. I also try to cover Toyota Car Designing, Raw Material Sourcing, Toyota Car
Manufacturing process.
METHODOLOGY
**** Way of Collecting Information:-
For collecting information at first I made up a MCQ type
Questionnaire for the Corporate officials who directly related
With the sales of Chittagong. I also collect information from the
Dhaka office. I took three persons interview. They provide me
Information as much as they know. They also advice me to visit
Global website of Toyota, for collecting information.
**** Technique Used:-
==== Questionniare.
==== Interview.
Address of Website:- www. Toyota-global.com
SCOPE
**** Organization Name:-
Toyota Motor Corporation
**** Covering Area of Organization:-
I mainly emphasized on the Toyota Car Designing, Raw
Material supplier of Toyota Car, Manufacturing process of
Toyota Car, and finally my topic international distribution
channel of Toyota. I collect information from the Dhaka and
chittagong sales office of Toyota Car. In Bangladesh, Toyota Car
distribution work is control by the Navana Limited.
**** Address of Chittagong Office:-
Quadery Chamber ( ground floor), 37 Agrabad C/A, Chittagong.
**** Address of Dhaka Office:-
125/A Motijheel C/A, Dhaka-1000, Bangladesh.
LIMITATIONS
At the time of collecting information, I did not face any big
problem as I imagine before. But inexperience problem was a little
bit problem for me. If I studied one course “ Marketing Research”
before, it was most likely easy for me doing this research work
comfortably.
THEORATICAL ASPECTS
SUPPLIER
A firm or individual that provides the resources needed by a company
And its competitors to produce goods and services.
DEALER An individual or firm willing to buy or sell securities for their own
Account. He purchases goods and services for resale to consumers.
DISTRIBUTION CHANNEL
A path through which goods and services flow in one direction (from
Vendor to consumer) and the payments generated by them that flow
In the opposite direction ( from consumer to the vendor).
SAMPLE ENTERPRISE AT A GLANCE
PARENT COMPANY:-
Toyota Group
MAIN COMPANY NAME:-
Toyota Motor Corporation (TMC)
Main Head Quarter of Toyota in Japan
LOCATION OF HEADQUARTER
**** Aichi Prefecture in Toyota City.
**** Tokyo office is in Bunkyo, Tokyo.
**** One office located in Nakamura-ku, Nagoya.
ESTABLISHMENT YEAR
In January, 1937
FOUNDER OF THE COMPANY
Sakichi Toyoda
OTHER BUSINESS
****Established Power Plant in Japan.
**** Established Educational Institution related with
Technology.
VISION
“ Rewarded with a smile by exceeding your expectations.”
---- Toyota will lead the way to the future of mobility, enriching lives
Around the world with the safest and most responsible ways of
Moving people.
----- Through our commitment to quality, constant innovation and
Respect for the planet, we aim to exceed expectations and be rewarded
With a smile.
------ We will meet challenging goals by engaging the talent and
Passion of people, who believe there is always a better way.
PHILOSOPHY
**** Always be faithful to your duties, thereby contributing to the
Company and to the overall good.
**** Always be studious and creative, striving to stay ahead of the
Times.
**** Always be practical and avoid frivolousness.
**** Always strive to build a homelike atmosphere at work that is
warm and friendly.
**** Always have respect for spiritual matters and remember to
Be grateful at all times.
MARKET AREA
Toyota is a multinational company. It has large markets in all
over the world.
FINDINGS
When I started to collect information, my misconceptions about
Toyota are being removed. I try to collect information on the
Following matters:-
**** Toyota Car Design
**** Raw Material Sourcing
**** Toyota Car Manufacturing
****** Toyota Car Distribution
I describe those matters one by one:-
TOYOTA CAR DESIGN
Toyota Car designing are not limited within japan. Some designing
Work have done in japan, but some are designed outside the
Japan.
IN JAPAN
**** Head office of Toyota Design- Toyota City, Aichi
**** Tokyo Design Research and Laboratory- Hachioji city, Tokyo
OUT SIDE JAPAN
**** Calty Design Research Inc.- Newport Beach, California.
**** Toyota Europe Design Development- one in Brussels, one in
France.
**** Shanghai Design office – Shanghai Design Department
Toyota Motor Technical Center (china) co. Ltd.
TOYOTA CAR DESIGNING STEPS
At the time of designing, following steps are followed:-
CONCEPT MAKING
The car design process begins with a design concept. Having been
briefed on the development goal, the target customer profile, and other
aspects of the vehicle development plan, the design team first thinks
about the car design concept. The designers research their own market
and, bearing in mind the latest trends and other factors, explore what
themes meet the customers needs. There follows exhaustive discussions
until designers are satisfied with a shared vehicle image as the concept.
**** Idea Sketch- Freehand
The first step in giving expression to the image in the
designer's head is to make a freehand idea sketch. Taking into account
the concept adopted, and the various conditions set at the concept-
making stage, the designer begins a series of sketches. At this stage the
sketch is about giving a sense of the design goal, the potential for its
future development.
SECOND STAGE
IDEA DEVELOPMENT
**** Idea Sketch- Computer
Pencils, pastels, markers and the other sketching tools used by designers
have changed with the times. Nowadays, personal computers play an
important role as drawing tools for designers. Computers allow the
designer to examine design ideas, sophisticated expressions, and visual
images in a short time. Personal computers are thus a valuable tool for
designers that offer them a way for expressing the image they want to
convey.
Idea Sketch- Digital Design
A digital modeler takes the designer's sketch and gives the idea a
three-dimensional shape. A vehicle that no one has yet seen is given
concrete form in virtual space. To give the drawing a three-dimensional
shape, a large amount of information has to be gathered. Moreover, the
appeal and distinctive features of the idea and the image conceived by
the designer must be respected as the sketch is translated into lines and
surfaces. This conversion process requires creativity and makes the
greatest demands on the digital modeler's talents.
THIRD STAGE
COLOR DEVELOPMENT
**** Exterior Color Development:-
Color design. That means not just applying color but giving
individuality to a vehicle. Color design, just like exterior and interior
design, is an important element in determining the character of a
vehicle. Total color coordination is critical. Analysis is undertaken of a
whole range of data including what colors are in vogue in the fields of
fashion and interior design around the world, to decide on the best color
for the vehicle and also to bring out its individuality.
**** Interior Color Development
Colors must be chosen but be coordinated. Instrument panel and
steering wheel, seat fabric, ceiling, carpet and other interior fittings are
made of a wide range of materials. Because of this, the interior colors
are studied repeatedly from a variety of perspectives. This creates a
space that pleases all five senses. Careful attention to individual colors
and materials is the key to creating a total impression.
FOURTH STAGE
MOCK-UP
***** Clay Modeling:-
In the creation of a three-dimensional clay model, the clay modeler
works together with the designer to ensure an understanding of the
original intention, using eyes and hands to check the actual finished
lines and surfaces as the model takes shape. In forming a shared idea of
the design goal, image and themes, a satisfactory result will not be
possible unless the modeler and the designer can achieve a united
approach. The work involves molding and chiseling then molding and
chiseling again. By repeating this process, which may seem simple to an
outsider, the shape of the vehicle is tested and refined down to the finest
line
**** Interior Mock-UP:-
When exploring the interior design, a mock-up that is as close as
possible to the real object is used. The wood modeler uses not just wood
but plastics, metal, fabrics and a wide range of other materials to create
a full-size model of the designer's idea. The designer can then check not
only the spaciousness and feel of the cabin but also the cabin
accessibility, ensuring visibility, the visual "friendliness" of the meters
and the operability of the controls at a full-size scale. Toyota's wood
modelers include professionals who have won first prize in the
international technical skills contest known as the World Skills
Competition.
**** Skill and Tool:-
The modeler's world is one of skilled workmanship. This skill and
process of improvement have all the features of a craft. The skills
involved in modeling can be taught, but the rest of it has to be learned
alone. Understanding the designer's intentions and responding with the
appropriate modeling skills, judgment, and appreciation of the physical
mass of the vehicle — an expert feeling for this kind of task is acquired
through practice and careful thought on the job.
FINAL STAGE
DECISION HALL
Roof Closed
Roof Open
In a final design process, customer's angle is needed. The Decision Hall
has a roof that opens and closes. When the roof is opened, the design of
the model, which is placed on a turntable, can be studied under natural
light from every direction despite the indoor location. The facility also
has special lighting that allows the model to be viewed in conditions
close to natural light on rainy days and at night.
The facility also has virtual display capabilities. On the screen, an image
of the actual vehicle is projected. This makes it possible to study the
design of a number of vehicles at the same time.
Viewing vehicles in natural light. Viewing vehicles digitally. Regardless
of the method used, the most important thing is to see things from the
customer's viewpoint.
PROBLEM
A design may be approved after 3-4 years from the time of
Designing, because it faces competition. Designing work mainly
controlled by the Japan, America and Europe etc. In those regions,
a design face global competition. It requires approval, but approval
not given in a easy way.
RAW MATERIAL SOURCING
Toyota Motors collect raw materials from various places of
Japan. But it is difficult to find out the exact number of suppliers
Within the japan. Approximately, 620 primary suppliers around
japan who provide necessary raw materials to the TMC directly.
But there is also one layer followed , that is tier suppliers.
TMC having tier suppliers included ( first, second, third, fourth,
fifth ). But which supplier within japan are included in which tier
it is not only difficult to find out but also one type of impossible
task.
OUT SIDE OF JAPAN
Japan not dependent on their country suppliers for providing raw
Materials. Japan import raw materials from the following countries
Mainly:-
INDIA
## karan Exports:- Piston, Ringsets, Cyl liners
## Tynor Orthotics Pvt. Ltd:- Body belts and braces, Cervical Aids
Fracture Aids.
## Pushpak Products India Pvt. Ltd:- Furniture and Furnishings
### J. D. Products:- Engine Cylinder Liners, Cylinder Liners.
### J. R. Industries:- Fabrication of sheet metal, turning
components of iron steel.
### Saini Exports:- Automotive Brake.
### Jhalani Exim Inc:- General Mechanical Components.
PAKISTAN
Malik Auto and Agricultural Industries Pvt. Ltd:- Auto Filter
CHINA
*** Dongguan Prospect Optoelectronic technology Co. Ltd:-
LED Display Screen, LED Street light, LED high bay light.
*** Zhejiang Jilong Electronic Co. Ltd:- Pvc wire, Electric wire,
Power cable.
*** Dongguan Sunge Filter Co. Ltd:- Filter, Auto Filter, Car
Filter.
*** Zhuji city wufeny pipe industry Co. Ltd:- Brake Hose, Power
Steering, PE Pipe.
*** Watsun Filters( shenzen) Co. Ltd:- Filters, Oil Filter, Fuel
Filter.
*** A A Top Trading Co. Ltd:- Windshield, Bulletproof glass, temp-
ered glass.
VIETNAM
Vinatexmat Jsc:- Textile and leather products, Coton Fabric.
SINGAPORE
Energy Systems Transnational Pte Ltd:- Traction Batteries, Deep
Cycle Batteries, Car Batteries.
HONG KONG
Good luck Asia Ltd:- Chemical Raw Materials and automobile
spare parts.
TAIWAN
Asia Cooperation International Co:- Crude oil, Fuel oil, Iron ore.
SOUTH AFRICA
Roan Chemicals (pty) Ltd:- Organic and inorganic chemicals, Auto
motive components.
TURKEY
Maysat A.S. and Polyfil:- Air Filters, Cabin air filters, ecological
oil filters.
Done Trade Agency:- Wool Fabric, Pes Fabric.
PHILIPPINES
Precision Crestec Inc:- Printing, Packaging, Small boxes, Paper
Box, Product label, product stiker.
SENDING SYSTEM
This are the countries directly export from their country to the
Toyota Motor Corporation (TMC).
TOYOTA CAR MANUFACTURING
Toyota Car Manufacturing Plant are not limited within japan.
Almost 24 countries are engaged with the manufacturing process.
MANUFATURING PROCESS
By Following ten steps a Toyota Car has been made. Those steps
are:-
*** Welding Body
*** Coloring Body
*** Various parts are joined from the various sections of the
manufacturing plant.
*** Setting engine and chesis
*** Electric Wearing
*** Setting Charing and Transmission
*** Setting Tier and Loyering
*** Setting light, electrical connection, AC, Steering, audio system
etc.
*** Setting Windsheild glass.
*** Setting Window glass and door.
TOYOTA MANUFACTURING FACILITIES
JAPAN
Twelve factories located is in Toyota City. Three factories is in
Kyushu, Hokkaido, Northern Honshu.
Indonesia
PT Toyota Motor Manufacturing, Indonesia
THAILAND
** Toyota Gateway Plant:- Chachoengsao
** Toyota Samrong Plant:- Samrong
** Toyota Banpho Plant:- Chachoengsao
AUSTRALIA
Single factory located in Altona, Victoria.
UNITED KINGDOM
*** Toyota Manufacturing Uk, Banaston, Derbyshire and Deeside
North wales.
UNITED STATES OF AMERICA
*** Toyota Motor Manufacturing Mississippi Inc. :- Tupelo,
Mississippi.
***Toyota Motor Manufacturing Kentucky Inc.:- Georgetown.
*** Toyota Motor Manufacturing Texas Inc.:- San Antonia
*** Toyota Motor Manufacturing Indiana:- located in halfway
between Princeton and fort branch.
*** Toyota Motor Manufacturing Albama Inc.:- Huntsville
*** Toyota Motor Manufacturing west Virginia Inc:- Buffalo
BELGIUM
Single factory located in Brussels.
CANADA
Factory located in Cambridge, Ontario. Also one in Woodstock
ontario.
FRANCE
Toyota Motor Manufacturing France:- onnaing.
MEXICO
Toyota Motor Manufacturing:- Baja California.
PHILIPPINES
Toyota Motor Philippines Corporation:- Santa Rosa, Province of
Laguna.
PORTUGAL
Toyota Caetano Portugal, S.A, Portugal.
RUSSIAN FEDERATION
Toyota Motor Manufacturing Russia:- Saint Petersburg.
TURKEY
Toyota Motor Manufacturing Turkey:- Arifiye, sakarya province.
BRAZIL
Single office located in Indaiatuba, Sao Paulo.
ARGENTINA
Single office located in Zarate, Buenos Aires Province.
Licensed, Joint Venture and Cotract Facilities:-
India:- Toyota Kirloskar Motor private limited, Bangalore.
Pakistan:- Indus Motor Company limited, joint venture with House of
Habib.
China:- Manufacturing Plant located in Tianjin Faw and Guangzhou.
Czech Republic:- Toyota Peugeot citroen automobile Czech, joint
venture with PSA Peugeot citroen, kolin, Czech republic.
USA:- Subaru of Indiana Automotive Inc. (contract facility)
Lafayette, Indiana.
Vietnam:- Toyota Motor Vietnam, vinch phuc, on the outskirts of
Hanoi.
Zimbabwe:- Toyota Kirloskar Motor private limited, Harare.
Ghana:- Toyota Industries, Accra (contract facility).
MANUFACTURING SYSTEM
At the time of manufacturing, two techniques are used. These are:-
JUST-IN- TIME
The concept of JIT is to make and deliver the part at the exact time it
is needed, pulling the products from the supply rather than pushing
them. This ultimately reduces waste, wait times and establishes a cont-
inuous flow. Thus, people have coined this production strategy:
“Lean”.
JIDOKA
The Term Jidoka is used in the TPS can be defined as automation
With a human touch. This word “ Zidoka” invented by the Sakichi
Toyoda, Founder of the Toyota Group. Jidoka covers four
fundamental concepts. These are:-
*** Detect the abnormality or defect.
*** Stop doing what you are doing when something is wrong.
*** Fix the issue.
*** Investigate the cause and insure that it does not happen again.
The Toyota Production System is a large reason for all of Toyota’s
success, and without these lean principles in production, Toyota would
not be the efficient company in it is today.
OTHER TECHNIQUE
KAIZEN (CONTINUOUS IMPROVEMENT)
Kaizen is a Japanese word. It means improve business operations
continuously, always driving for innovation and evaluation.
*** Kaizen mind and innovative thinking:-
## Relentless efforts for continuous improvement.
## Soui Kufu (individual creativity and innovation/ Benchmarking).
## Search for breakthroughs/ Elimination of Taboos
*** Building Lean System and Structure:-
### Pursuit of profit based on cost reduction.
### Elimination of Muda, Mura, Muri (Beyond capability, no value
added, unevenness)
### Regard for next processes/ just-in-time
### Revealing problems
*** Promoting Organizational Learning:-
### Shared understandings of conditions.
### Learning from mistakes
### Standardization, yokoten (leveraged transfer) and established of
Success.
TOYOTA CAR DISTRIBUTION
Toyota Motor Corporation offers more than sixty models around the
world. For distributing car in world wide, TMC makes contract with
dealers in all over the world. The dealers are served as distributor and
service network for Toyota. TMC use following channel system:-
Producer--------- Dealer--------- Consumer
To spread the distribution work in world wide, TMC divided
countries in to eight regions. The countries which achieve the
dealership from Toyota their name are given below:-
WHOLE ASIA
BANGLADESH
Navana Limited:- Dhaka and Chittagong Show room.
INDIA
Exact name find out hard task because in India there more than 150
dealers.
PAKISTAN
Indus Motor Company Limited
SRILANKA
Toyota Lanka Private Ltd:- Toyota Plaza No-337, Negombo road,
wattala.
BHUTAN
State Trading Corporation of Bhutan Ltd:- Post Box No-76,
phuentsholing.
NEPAL
Unitied Traders Syndicate Private Ltd:- Volth Complex, Sinamangal,
Kathmandu.
THAILAND
Toyota Motor Thailand Co. Ltd.
SINGAPORE
Approximately, 150 dealers in within the Singapore.
PHILIPPINES
Toyota Motor Philippines Co. Ltd.
HONG KONG
Crown Motors Limited.
MALAYSIA
UMW Toyota Motor Sdn. Bhd.:- 2 persiaran Raja Muda, Seksyen
15, 40200 shah Alam, Selangor.
VIETNAM
Toyota Motor Vietnam Co. Ltd.
CAMBODIA
Toyota Cambodia Co. Ltd.
MIDDLE EAST
SAUDI ARABIA
Abdul Latif Jamel Group.
KUWAIT
AL Sayer Group:- Kuwait Free Trade Zone, shuwaikh port(beside
Movinpick Hotel)
BAHRAIN
Toyota Bahrain Co. Ltd:- 99, Road 1104, Block 611 Alhamriya, Sh.
Jaber Al Subah Highway, Sitra.
QATAR
AAB Group.
OMAN
Saud Bahwan Group.
### Al- Futtaim Motors Ltd is the only dealer in UAE, Abu Dhabi, Al
Ain, Ajman, Dubai, Fujairah, Khorfokkan, Ras Al Khaimah.
YEMEN
Automotive and Machinery Trading Center.
BRUNEI DARUSSALAM
North Borneo Trading Ltd.
JORDAN
Toyota Central Trade and Auto company, Jordan.
LEBANON
Boustany United Mechineries Co. Ltd.
SYRIA
Al Saddy Group.
NORTH AMERICA
*** Canada:- In whole Canada, there is almost 86 dealers. They
are appointed in different province. Some are regional dealers, some
are individual dealer.
### Hawaii Island:- There is nine dealer.
UNITED STATES OF AMERICA
Toyota Motor Sales USA Inc.
SOUTH AMERICA
BELIZE
Belize Diesel and Equipment Company Ltd.
BERMUDA
Bermuda Motors Ltd.
FRENCH GUIANA
NCCIE Group, Occasioiog.
GUYANA
Beharry Automotive Ltd.
SURINAME
Suroto N.V.
EUROPE REGION
UNITED KINGDOM
### Approximately, in whole UK there almost 250 dealers. But this
Figure may be bigger than approximate figure.
CYPRUS
Dickran Ouzounian Co. Ltd.
GIBRALTER
Toyota Gibralter Stockholdings Ltd.
IRELAND
There is almost 54 dealers in whole Ireland.
MALTA
Michael Debono Ltd.
OCENIA
AUSTRALIA
There are almost 317 dealers in whole Australia.
AMERICAN SAMOA
Toyota Tsusho(American Samoa) Inc.
FIJI
Toyota Tsusho(south sea) Ltd, Trading as Asco Motors.
GUAM
Atkins Kroll Inc.
KIRIBATI
Tarawa Motors, A division of Bairiki holdings Ltd.
MICRONESIA
Atkins Kroll Inc.
NEW ZEALAND
Approximately, around 5oo dealers in new Zealand north island, and
South island.
PAPUA NEW GUINEA
Toyota Tsusho(PNG) Ltd, Trading as Ela Motors.
SAIPAN
Microl Corporation
SAMOA
Toyota Tsusho(Samoa) Ltd, Trading as Asco Motors.
SOLOMN ISLAND
Toyota Tsusho(S.I.) Ltd, Trading as Ela Motors.
TAHITI
Nippon Automoto.
TONGA
Toyota Tsusho(Tonga) Ltd, Trading as Asco Motors.
VANUATU
Toyota Tsusho(vanuatu) Ltd, Trading as Asco Motors.
THE CARIBBEAN
BARBADOES
Nassco Ltd.
JAMAICA
Toyota Jamaica Ltd.
ST. LUCIA
Beachcomber Ltd.
TRINIDAD AND TOBAGO
Toyota Trinidad and Tobago Ltd.
ARUBA
Garage Cordia Aruba N.V.
CURACAO
Garage Cordia
AFRICA REGION
ANGOLA
Toyota De Angola, S.A.
BENIN
Crafo Motors, Benin.
BURKINA FASO
Crafo Motors, Burkina.
BURUNDI
Toyota Burundi S.P. R.L
CAMEROON
Crafo Motors, Cameroon.
CENTRAL AFRICAN REPUBLIC
Crafo Motors, Centrafrique.
CHAD
Crafo Motors, Chad.
COMOROS
MMC Distribution
CONGO
Crafo Motors, Congo.
IVOIRE COAST
Crafo Motors, Ivoire Coast.
ERITREA
Anberbeb Share Company.
ETHIOPIA
Moenco Ethiopia Ltd.
GABON
Sogafric Group.
DISTRIBUTION POLICY
Distribution Policy is differ from country to country. Toyota Motor
Corporation (TMC) give international distributors enough freedom
for making their own distribution policy.
DISTRIBUTION WORK
OFFER LETTER
At first dealers give offer letter to the prospective buyer. In that
offer letter, vehicle model, their specifications, terms and conditions,
Payments time, and LC opening address are given. LC is made for
the producer. Customer if open LC, then other steps will started.
TOTAL WORK
Producers receive order from the customer. Then they accumulate
necessary raw materials for car manufacturing. Collecting raw
materials depends on what type of car is given for order to make.
Approximately, within 2-2.5 months cars are manufactured. Then it
kept in warehouse until export related documents are prepared. After
making documents, cars are send to the sea port. Almost 24 countries
are directly or indirectly are engaged with the manufacturing work,
so it is difficult to say that which sea ports they use specifically for
distribution work. At the time of shipping, one thing is consider very
seriously that is where cars will go?
For the distribution work, approximately 4-5 ships are used. Their
carrying capacity almost 600+ cars. For the some country, ships went
on directly but most cases does not directly are coming to the importes
directly. In that case, another ship is used for bring the cars in main
customer country.
SWOT ANALYSIS
Strength Side
A) New investment by Toyota in factories in the US and China saw
2005 profits rise, against the worldwide motor industry trend. Net
profits rose 0.8% to 1.17 trillion yen ($11bn; £5.85bn), while sales
were 7.3% higher at 18.55 trillion yen. Commentators argue that
this is because the company has the right mix of products for the
markets that it serves. This is an example of very focused
segmentation, targeting and positioning in a number of countries.
B) In 2003 Toyota knocked its rivals Ford into third spot, to become
the World's second largest carmaker with 6.78 million units. The
company is still behind rivals General Motors with 8.59 million
units in the same period. Its strong industry position is based upon
a number of factors including a diversified product range, highly
targeted marketing and a commitment to lean manufacturing and
quality. The company makes a large range of vehicles for both
private customers and commercial organizations, from the small
Yaris to large trucks. The company uses marketing techniques to
identify and satisfy customer needs. Its brand is a household name.
The company also maximizes profit through efficient
manufacturing approaches (e.g. Total Quality Management).
WEAK SIDE
## Being big has its own problems. The World market for cars is in a
condition of over supply and so car manufacturers need to make sure
that it is their models that consumers want. Toyota markets most of
its products in the US and in Japan. Therefore it is exposed to
fluctuating economic and political conditions those markets. Perhaps
that is why the company is beginning to shift its attentions to the
emerging Chinese market. Movements in exchange rates could see
the already narrow margins in the car market being reduced.
## The company needs to keep producing cars in order to retain its
operational efficiency. Car plants represent a huge investment in
expensive fixed costs, as well as the high costs of training and retaining
labour. So if the car market experiences a down turn, the company
could see over capapacity. If on the other hand the car market
experiences an upturn, then the company may miss out on potential
sales due to under capacity i.e. it takes time to accommodate. This is a
typical problem with high volume car manufacturing.
OPPORTUNITY SIDE
### Lexus and Toyota now have a reputation for manufacturing
environmentally friendly vehicles. Lexus has RX 400h hybrid, and
Toyota has it Prius. Both are based upon advance technologies
developed by the organization. Rocketing oil prices have seen sales of
the new hybrid vehicles increase. Toyota has also sold on its
technology to other motor manufacturers, for example Ford has
bought into the technology for its new Explorer SUV Hybrid. Such
moves can only firm up Toyota's interest and investment in hybrid
R&D.
### Toyota is to target the 'urban youth' market. 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.
THREAT SIDE
###Product recalls are always a problem for vehicle manufacturers. In
2005 the company had to recall 880,00 sports utility vehicles and pick
up trucks due to faulty front suspension systems. Toyota did not give
details of how much the recall would cost. The majority of affected
vehicles were sold in the US, while the rest were sold in Japan, Europe
and Australia.
### As with any car manufacturer, Toyota faces tremendous
competitive rivalry in the car market. Competition is increasing
almost daily, with new entrants coming into the market from China,
South Korea and new plants in Eastern Europe. The company is also
exposed to any movement in the price of raw materials such as
rubber, steel and fuel. The key economies in the Pacific, the US and
Europe also experience slow downs. These economic factors are
potential threats for Toyota.
SUMMARIZED VIEW
My Term Paper is completely based on The International Distribution
Channel of Toyota. My objective was to find out the distribution
Information as much as I can. To make this term paper, I had to
collect information. For collecting information, I made a questionnaire
and made interview with some people. They provide me information as
much as they know. I try to cover here Toyota Car Designing, Raw
Material Sourcing, Manufacturing and Distribution. Toyota Car
design work are not limited within japan but occurred in some other
countries too. Raw Material Sourcing information collection was not
very easy for me, I try to collect information about it. But not much
information I can gather because that related information not given
clearly any where. Toyota Car Manufacturing are not limited within
japan, in world 24 countries directly or indirectly are engaged with the
manufacturing process. For Distribution work, Toyota makes appoints
dealers in whole world. They segment the countries into eight regions.
Toyota already expands its markets in whole world. To compete in
world competitor, they makes new investment in new plant. But they
need to localize the manufacturing plant so that cost can be reduced.
Now a days Toyota and Lexus jointly work to provide us branded new
car. Toyota also work for the youth people. They need to done more
work. Some years ago product recalls had been made from the Toyota.
If product recalls happen regularly, then Toyota image will be down.
So, Toyota Authority should monitor the manufacturing steps are
carefully. Finally for the some extent Toyota should change their overall
Strategy because competitors are increasing, they are threat for Toyota.
CONCLUSION
At the end of the Term Paper, I can say that Toyota did not achieve its
reputation just in a single day. They had to work hard to achieve
their today’s position. Japan diversify their work in whole world like
design, raw material sourcing, manufacturing and distribution. Their
strategy is excellent. They lower dependency from them, minimize cost,
and diversify their business in world wide. In emergency situation,
they provide necessary instructions to the designer, supplier,
manufacturer and distributor. They also take advice from their world
representator.
RECOMMENDATION
**** Recommendation on Weak Side:-
### Toyota should spread their manufacturing plant outside of
japan and US. As result, cost will decrease and manufacturing plant
will be localized and diversified.
## Toyota can decrease excess fixed cost. If manufacturing plant are
located outside of Japan and US, then some extent employee training
and retaining labor cost will be decrease.
**** Recommendation on Opportunity Side:-
### Lexus and Toyota should work together to surprise us by
providing new branded cars.
### Toyota should laungh more cars for the urban youth market.
**** Recommendation on Threat Side:-
### Toyota Authority should monitor the manufacturing work
So carefully that it does not need any type of product recalling.
### Toyota can change their overall strategy in procurement,
Manufacturing, distribution and other related departments.
REFERENCES
*** WWW.Toyota-Global.com/ showroom/ vehicle Design/ Toyota
Design/ Design works.
*** WWW.Toyota-Global.com/ select region.
*** WWW.Toyota-Global.com/ global network.
*** WWW. Marketingteacher.com/ Toyota SWOT
Theoretical definitions are taken from Oxford Dictionary.
Information regarding Toyota Manufacturing facilities are collect
from the encyclopedia of manufacturing facilities.
APPENDIXES
In Appendix Section, I enclosed the questionnaire which I used
to collect information, based on these questionnaire I made interview
with the officials. They Provide information as much as they actually
know.
MAIN QUESTIONNIARE
(USED ONLY FOR OFFICIALS)
Interviewer Name:-
Designation :-
Location of Office:-
DESIGNING
## Is Toyota Car Designing work are limited within Japan?
a) Yes b) No (If No, then where designing woks done)
*** Inside Japan
*** outside Japan
*** Regional Offices
### How many steps are followed while designing works done?
a) Two Steps
b) Three Steps
c) Five Steps
### Which personnel are responsible for designing work?
a) Designer
b) Modeler
c) Researcher and Modeler both
### How designing work performed?
a) People manually done it.
b) Most up to date computer used.
c) Both manually and most up to date computer used.
RAW MATERIAL SOURCING
## From which Personnel Toyota Motor Corporation Collect raw
material?
a) from own country suppliers
b) from outside suppliers
c) both own country and outside suppliers.
### Did they ranking their suppliers?
a) Yes (if yes, How many ranks are used) ----------------------------
b) No
### Did TMC prefer any region for collecting raw material?
a) Yes b) No
### Did they import raw materials?
a) Yes (if yes, from which countries)
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
----------------------------------------------------------------- b) No.
MANUFCATURING
### Where Toyota Car Manufacturing work has been done?
a) in only japan
b) outside japan
c) Both inside and outside japan.
### How many steps are followed while a car has been made?
a) five
b) ten
c) no comment.
### Approximately, how many countries are engaged with the
manufacturing work?
a) No in any country
b) Five
c) Ten
d) Fifteen
e) Approximately twenty four
### How manufacturing process has been done?
a) only manually
b) robot used.
c) Both manually and robot are used.
### How many techniques are used in the manufacturing system?
a) one
b) three
c) Five
d) Two
DISTRIBUTION
### For the distribution work, TMC use which channel system?
a) Producer----------------Customer.
b) Producer--------------Dealer------------------Customer.
c) Producer----------- Broker--------------------- Customer.
### For the distribution work, TMC appoints how many
distributors?
a) Approximately, 1 lakh people
b) Approximately, 2 lakh people.
c) Right figure difficult to imagine
### Did TMC followed any strategy?
a) Yes b) No
### Did TMC segment the countries into any regions?
a) No b) Yes (if yes, then how many regions):-
----- no regions
------- only one region
-------- almost nine regions
### Approximately, how many countries receive dealership from the
TMC?
a) Almost 50 countries
b) Almost 100 countries
c) Specific figure are unknown.
### Is distribution policy differ from country to country?
a) Yes b) No
### How many seaports are used for the distribution work?
a) two
b) five
c) difficult to find out the right figure.
### How much cars a ship can carry?
a) only twenty
b) almost 100 cars
c) More than 100
d) Approximately, 500+ cars.
