ricky toyota major project.doc

8/19/2019 ricky toyota major project.doc

1/83

INTRODUCTION TO ENTREPRENEURSHIP

Concept of Entrepreneur – Historical perspective

• ENTREPRENEUR - derived from French word ‘Entreprendre’ which

means ‘to undertake’ i.e. the person who undertakes the risk of new

enterprise.

• Earl !"th centur # those who undertook militar operations i.e. leaders

of militar e$peditions were referred to as ‘Entrepreneurs’.

• !%th centur # e$tended to cover civil en&ineerin& activities such as

construction and fortification i.e. architects and contractors.

• Earl !'th centur # R.(antillon) an *rishman livin& in France was the

first person to use the term ‘Entrepreneur’ as a person who +us factor

services at certain prices in order to produce a product) with a view to

sellin& it at uncertain prices.

• ,..a e$panded (antillon’s ideas and developed the concept of

• entrepreneur a little further. /ccordin& to a) an entrepreneur is one

who com+ines the land of one) la+or of another and the capital of et

another and thus produces a product. sellin& the product in the market)

he pas interest on capital) rent on land) wa&es to la+orers and what

remains is his profit. This concept of an entrepreneur survived for almost

two centuries.

• ,oseph /.chumpeter) in !012) assi&ned a crucial role of ‘innovation’ to

the Entrepreneur in his ma&num opus) ‘Theor of Economic

1


2/83

3evelopment’. /ccordin& to chumpeter) an entrepreneur is one who

innovates) raises mone) assem+les inputs) chooses mana&ers and sets the

or&ani4ation &oin& with his a+ilit to identif them.

ENTREPRENEUR -- DEFINITIONS

5The true Entrepreneur is one who is endowed with more than avera&e

capacities in the risk of or&ani4in& and coordinatin& the various other

factors of production6

Francis /.7alker

5/n Entrepreneur is one who alwas searches for chan&e) responds to it

and e$ploits it as an opportunit. *nnovation is the central tool of

entrepreneurs) the means + which the e$ploit chan&e as an opportunit

for different +usiness or service6.

Peter F.3rucker

ROLE OF ENTREPRENEUR IN ECONOIC DE!ELOPENT

!. ENTREPRENEUR8*P promotes capital formation + mo+ili4in& the

idle savin& of the pu+lic

9. *t provides emploment opportunities

1. *t promotes +alanced re&ional development

2. *t helps reduce concentration of economic power :. *t leads to e;uita+le redistri+ution of wealth and income

". *t encoura&es effective resource mo+ili4ation of capital and skill which

mi&ht otherwise remain unutili4ed

%. *t promotes countr’s e$port trade) an important in&redient of

economic development

2


3/83

"U#LITIES OF #N ENTREPRENEUR

$% Opportunit& E'plorer< /n entrepreneur looks for an opportunit and

takes appropriate actions when he identifies the opportunit. uccessful)

&rowth-minded entrepreneurs have a focus on opportunit. The start

with the opportunit and let their understandin& of it &uide other

important issues. The sei4e unusual opportunities to start a new

+usiness) o+tain financin&) land) work space or assistance.

ources of +usiness opportunities arise =ust from an entrepreneur +ein&

alert to possi+ilities. (onsumers) +usiness associates retailers)

wholesalers) manufacturers’ representatives are potential sources of

+usiness ideas. Technicall oriented individuals also identif +usiness

opportunities when workin& on other pro=ects.

(% Calculate) Ris* Ta*er< /n venture is su+=ect to some risk and the

entrepreneur needs to +e an intelli&ent risk taker. / risk situation occurswhen the potential outcome of an action is not known. /n entrepreneur

will face situations where he has to make a choice +etween two or more

alternatives) each with its own risk elements. The a+ilit to =ud&e risks)

evaluate them) take risk miti&ation measures as well as +ein& read for

course correction when the risk actuall occurs are ;ualities which he

should possess. / hi&her de&ree of risk taken has the potential of ieldin&hi&her returns or of resultin& in hi&her losses.

>ood entrepreneurs are not afraid of takin& risks) whereas a person

without an entrepreneurial +ent of mind will not take risks in order to

avoid failure. ut takin& moderate risks is almost alwas necessar for

achievin& success in an entrepreneurial venture. / &ood entrepreneur also

reali4es that a risk cannot +e taken when the outcome of an action is

3


4/83

entirel +ased on chance and not on effort. Takin& a risk which can +e

averted or minimi4ed + takin& actions in a planned manner and effort is

a challen&e which a &ood entrepreneur en=os.

+% Perseverance< This means the a+ilit to work hard without &ettin&

demotivated + intermediate set+acks) havin& patience to wait for the

result without +ein& impulsive or hast in &ivin& up or not &ivin&

ade;uate attention to his venture. Persistenc is re;uired in solvin&

pro+lems or o+stacles that are impedin& +usiness operation. /lthou&h

entrepreneurs are e$tremel persistent) the are realistic in reco&ni4in&

what the can and cannot do and where the can &et help in solvin&

difficult +ut unavoida+le tasks.

,% Counication a.ilit&< (ommunication encompasses +oth

communicator and communicate i.e. sender and receiver. *n effective

communication) the communicator and the receiver understand each other and are +ein& understood. /n entrepreneur communicates effectivel with

customers) emploees) suppliers) +ankers and creditors.

/% Fle'i.ilit&< Entrepreneurs are fle$i+le in adaptin& to chan&es when it

does not help to adopt conventional and routine was of doin& thin&s.

0% Innovator< Entrepreneurs are innovative in that the endeavor to

develop new products) processes or markets. *f there is alread a product

in the market) an entrepreneur succeeds in creatin& a differentiation in the

product to capture a market share.

1% otivator< uccess of an entrepreneurial venture also depends on the

activities carried out + the people deploed + the entrepreneur in his

4


5/83

+usiness venture. The entrepreneur therefore needs to keep them

motivated to &ive their +est. The term ‘motivation’ is derived from the

word ‘motive’ which means a need or an emotion that prompts an

individual into action. /s a motivator) the entrepreneur needs to keep the

motivation level of his emploees hi&h. /s a motivator) the entrepreneur

understands that apart from financial incentives like wa&es) non-financial

incentives like reco&nition of &ood work done) +etter workin& conditions)

=o+ securit etc. pla a role in motivatin& the workers.

2% Self confi)ence< / person has self confidence when his +elief in his

own a+ilit is hi&h and seldom wavers. Even durin& down periods) such

an individual maintains his confidence and lets people around him know

it. This helps the others sustain their own self confidence and optimism

necessar for efficient &roup effort. / successful entrepreneur has hi&h

self confidence.

3% Stress Ta*er< / person who succum+s to stress has a low tolerance

for failure. ut entrepreneurs use failure as a learnin& e$perience.

et+acks and disappointments are an inte&ral part of the learnin&

e$perience) and most effective entrepreneurs are realistic enou&h to

e$pect such difficulties. ?an of them +elieve that the learn more from

their earl failures than from their earl successes. ome of the methodsthe can adopt for copin& with stress are networkin& with other +usiness

owners for sharin& e$periences) takin& short holidas as an antidote to

immersion in +usiness) &ood communication with emploees) &ain new

perspectives on life apart from the adopted +usiness) dele&ate chosen

tasks to others to &ain time) phsical and e$ercises like walkin&)

meditation etc.

5


6/83

$4% Optiistic< Entrepreneurs approach the opportunit that the have

chosen with a hope of success and an optimistic attitude. The optimistic

attitude reflects the confidence to achieve success rather than the fear of

failure. @ptimism leads to positive thinkin& which can turn an adverse

situation into a favora+le situation. Even when failure occurs) an optimist

persists with a positive outlook.

$$% Usin5 Fee).ac* < Effective entrepreneurs also have a stron& desire to

know how well the are doin&) and how the mi&ht improve their

performance. *n makin& such a determination) the activel seek out and

use feed+ack. Feed+ack is also central to their learnin& from their

mistakes and set+acks.

$(% In)epen)ence< The desire for independence is a drivin& force +ehind

contemporar entrepreneurs. /n entrepreneur usuall tries to accomplish

tasks in his or her own wa instead of in a +ureaucratic wa) This is not tosa that entrepreneurs must make all the decisionsA however) the do not

want the authorit to make the important ones. This implies that the do

not &et controlled + others.

$+% Planner< Plannin& is a mana&erial function and is an essential ;ualit

for an entrepreneur. *t implies determinin& the course of action to +efollowed i.e. decidin& what to do) when to do) how to do and who will do

a particular task. *t is a process of lookin& ahead and is re;uired to +e

done prior to other mana&erial functions like or&ani4in&) staffin&)

directin&) coordinatin& and controllin&.

6


7/83

$,% #c6ieveent Oriente)< Entrepreneurs are self starters who appear

to others to +e internall driven + a stron& desire to compete) to e$cel

a&ainst self-imposed standards) and to pursue and attain challen&in&

&oals. The tr to accomplish challen&in& tasks. *n doin& so) the are

aware of their own stren&ths and weaknesses) the facilitatin& factors and

constraints in the environment and the resources needed to accomplish

their tasks.

$/% Huan relation a.ilit&< ?aintainin& &ood relations with customers)

emploees) suppliers) and creditors is an essential ;ualit for

entrepreneurial success.

FUNCTIONS OF ENTREPRENEUR

Entrepreneur performs various primar functions from the sta&e of

startin& an enterprise to its success level.

PL#NNIN7 - Plannin& process involves the followin& steps<aB cannin& of the +est suita+le idea

+B election of product line

cB 3etermination of tpe of +usiness or&ani4ation C*ndividual or

Partnership or (orporateB

dB Estimation of capital needed

eB election of capital resourcesfB election of raw materials

&B tudin& the &ovt. rules) re&ulations and policies

hB tud of availa+ilit of la+or force

iB tud of market and market strate& to +e adopted

7


8/83

OR7#NI8#TION - /n entrepreneur assem+les) coordinates and

supervises land) la+our and capital durin& the promotion sta&e and at the

performance sta&e for optimum utili4ation of resources. Efficient

e$pansion and &rowth depends on or&ani4ational network emploed and

monitored + the entrepreneurs.

DECISION #9IN7 -

aB 3etermination of the +usiness o+=ectives of the enterprise

+B 3ecision re&ardin& procurement of machine) material) la+our and

mone

cB 3ecision re&ardin& development of a market for the product

dB ?aintenance of &ood relations with pu+lic authorities and with

societ at lar&e

#N#7EENT # refers to the workin& of the venture and also

mana&in& da to da pro+lems. *t includes future e$pansion) direction of men) material) mone etc.

INNO!#TION #

aB Daunchin& a new product

+B *ntroduction of new technolo&

cB (reation of new marketdB 3iscover of new and +etter source of raw materials

eB (reation of monopol or +reakin& up of monopol

RIS9 :E#RIN7 # /n entrepreneur undertakes the responsi+ilit for

loss that ma arise due to unforeseen contin&encies in future.

8


9/83

UNCERT#INT; :E#RIN7 # refers to uncertain trends in the market

@ther functions include diversification) e$pansion) maintainin& cordial

relations) tacklin& la+our pro+lems etc.

CL#SSIFIC#TION OF ENTREPRENEURS

Entrepreneurs can +e classified accordin& to

T&pes of .usiness –

:usiness entrepreneurs are those individuals who opt for a new product

or service and then translate the same into +usiness realitA tap +oth

production and marketin& resources to develop a new +usiness

opportunitA set up a +i& esta+lishment or small unit e.&. printin& press)

te$tile processin& house) advertisin& a&enc) readmade &arments)

confectionar etc. *n ma=orit of cases) entrepreneurs are found in small

tradin& and manufacturin& +usiness. Entrepreneurship flourishes when

the si4e of +usiness is small.

In)ustrial entrepreneurs are essentiall a manufacturer who identifies

potential needs of customers and products or service to meet the

marketin& needs. 8e should have the a+ilit to convert economic

resources and technolo& into a profita+le venture.

Corporate entrepreneur is an individual who demonstrates his

innovative skill in or&ani4in& and mana&in& a corporate undertakin&. 8e plans) develops and mana&es a corporate +od.

#5ricultural entrepreneurs are the ones who undertake a&ricultural

activities such as raisin& and marketin& of crops) fertili4ers and other

inputs of a&riculture. The are motivated to improve a&riculture throu&h

mechani4ation) irri&ation and application of technolo&ies for dr land

a&ricultural products.

9


10/83

Use of professional s*ill.

Tec6nical entrepreneur is one who is essentiall a craftsman. 8e

develops improved ;ualit of &oods +ecause of his craftsmanship. 8e

concentrates more on production than on marketin&. 8e demonstrates his

innovative capa+ilities in the matter of production of &oods and renderin&

of services.

Non-tec6nical entrepreneurs are those who are not concerned with the

technical aspects of the product in which the deal. The are concerned

mainl with alternative marketin& and distri+ution strate&ies to promote

their +usiness.

Professional entrepreneur is interested in esta+lishin& a +usiness +ut

does not have interest in mana&in& or operatin& it once it is esta+lished.

8e sells out the runnin& +usiness and starts another venture with the sales

proceeds.

otivation.

Pure entrepreneur is an individual who is motivated + pscholo&ical

and economic rewards. 8e undertakes entrepreneurial activit for his

personal satisfaction in work) e&o and status.

In)uce) entrepreneur is one who is induced to take up an

entrepreneurial task due to polic measures of the &overnment that

provides assistance) incentives) and concessions and other facilities tostart a venture) enter +usiness due to financial) technical and other

facilities provided to them + the state a&encies to promote

entrepreneurship.

otivate) entrepreneurs come into +ein& entrepreneurs +ecause of the

challen&e involved in developin& and marketin& a new product for the

satisfaction of consumers. *f the product succeeds) the entrepreneur isfurther motivated for launchin& of newer products.

10


11/83

7ro


12/83

entrepreneurs in underdeveloped countries. The are alwas creative and

+rin& in innovation in their work.

Iitative entrepreneurs are read to adopt and are more fle$i+le in

imitatin& techni;ues developed + others. The e$ploit opportunities as

the come and are mostl on a small scale. 8e is more of an or&ani4er of

factors of production than a creator. *n the conte$t of a poor countr) he is

definitel a chan&e a&ent and hence he is important in underdeveloped

countries.

Fa.ian entrepreneurs are ver cautious and skeptical while practicin&

an chan&e. The do not take risks and =ust follow predecessors. Their

entrepreneurial decision is determined + custom) reli&ion) tradition and

past practices. The imitate onl in situations when it +ecomes

a+solutel necessar.

Drone entrepreneurs are those who never allow an chan&e in their

production and stle of functionin&. The never e$plore anthin&. The

are la&&ards and &et pushed out of the market when product loses itsmarketa+ilit.

Situation .ase) entrepreneur

Nee) .ase) entrepreneur is a person who starts his venture with the

thou&ht process of survivin& i.e. to earn a livin& e.&. street vendors.Opportunit& .ase) entrepreneur is a person who starts his venture

with the thou&ht process of e$pansion or one with the 4eal to create a

niche for himself.

7en)er .ase) entrepreneur. >overnment of *ndia has classified women

entrepreneurs + definin& them as part of an enterprise owned and

controlled + women or a woman havin& a minimum financial interest of :! of the capital in the enterprise.

12


13/83

Social entrepreneur. The /shoka *nternational @r&ani4ation defines

social entrepreneurs as individuals with innovative solutions to societ’s

most pressin& social pro+lems. ill 3raton) (E@ and founder of /shoka

sas 5ocial entrepreneurs are not content =ust to &ive fish) or teach how

to fish. The will not rest until the have revolutioni4ed the fishin&

industr6. Rather than leavin& societal needs to the &overnment or

+usiness sectors) social entrepreneurs find what is not workin& and solve

the pro+lem + chan&in& the sstem) spreadin& the solution and

persuadin& entire societies to take new leaps. ocial entrepreneurs

identif resources where people onl see pro+lems. The view the

villa&ers as the solution) not the passive +eneficiar. The reco&ni4e

when a part of societ is stuck and provide new was to &et it unstuck.

Unless traditional +usiness entrepreneurs) social entrepreneurs primaril

seek to &enerate 5social value6 rather than profits. E$amples are

3r.er&hese Gurian) who set up the /nand model of cooperative

development and made *ndia the lar&est milk producer in the world. 8is

model was adopted + the >ovt. of *ndia in settin& up the N33

CNational 3air 3evelopment oard which replicated the model on a

nationwide +asis. ino+ha have conceived the idea of the land-&ift

movement) which came to +e known as 5hoodan6. 8e made inspirin&

appeals in several villa&es to prosperous people to donate land) and +

!0:2) he and his co-workers had collected 9.: million acres) far e$ceedin& an land reform achieved + the &overnment for land to +e

&iven to poor farmers. The ,aipur foot is another famous *ndian invention

which has &iven life to thousands of amputees and is the +est prosthetic

feet for conditions in developin& countries.

Serial Entrepreneur. / serial entrepreneur is one who continuousl

comes up with new ideas and invests in new +usinesses. 7hile some

13


14/83

+elieve that a more vi+rant and mature venture capital eco-sstem in

*ndia is contri+utin& to the trend) others sa interestin& +usiness models

that have developed over time has made the difference. *nternet is one

such area that has seen a spurt in activit from entrepreneurs to repeat

their success. erial entrepreneurs are repeat +usiness starters who in the

past have sold or closed down a +usiness which the at least partl ran

and owned and who currentl run another) possi+l new +usiness which

the at least partl own. Estimates of the scale of serial entrepreneurship

are relativel scant. *n *ndia) a well known e$ample of (apt. >opinath

can +e cited) who started and ran the low cost airline /ir 3eccan) then

sold his +usiness to Gin&fisher and later started 3eccan 1"H)which is a

lo&istics compan aimed at commentin& !% airports and 92 cities in *ndia.

The *nformation Technolo& area in the U. cites a num+er of serial

entrepreneurs.

TO;OT# INDUSTRI#L :#C97ROUND

ehicles were ori&inall sold under the name ITootaI) from the famil

name of the companJs founder) GiichirK Tooda. *n eptem+er !01") the

compan ran a pu+lic competition to desi&n a new lo&o. @ut of 9%)HHH

entries the winnin& entr was the three ,apanese katakana letters for

IToodaI in a circle. ut Risa+urK Tooda) who had married into the

famil and was not +orn with that name) preferred ITootaI +ecause ittook ei&ht +rush strokes Ca fortuitous num+erB to write in ,apanese) was

visuall simpler Cleavin& off the diacritic at the endB and with a voiceless

consonant instead of a voiced one Cvoiced consonants are considered to

have a ImurkI or ImuddI sound compared to voiceless consonants)

which are IclearIB. ince IToodaI literall means Ifertile rice paddiesI)

chan&in& the name also prevented the compan +ein& associated with

14

http://en.wikipedia.org/wiki/Kiichiro_Toyodahttp://en.wikipedia.org/wiki/Katakanahttp://en.wikipedia.org/w/index.php?title=Risabur%C5%8D_Toyoda&action=edit&redlink=1http://en.wikipedia.org/wiki/Dakutenhttp://en.wikipedia.org/wiki/Voicelesshttp://en.wikipedia.org/wiki/Voicelesshttp://en.wikipedia.org/wiki/Voice_(phonetics)http://en.wikipedia.org/wiki/Katakanahttp://en.wikipedia.org/w/index.php?title=Risabur%C5%8D_Toyoda&action=edit&redlink=1http://en.wikipedia.org/wiki/Dakutenhttp://en.wikipedia.org/wiki/Voicelesshttp://en.wikipedia.org/wiki/Voicelesshttp://en.wikipedia.org/wiki/Voice_(phonetics)http://en.wikipedia.org/wiki/Kiichiro_Toyoda


15/83

old-fashioned farmin&. The newl formed word was trademarked and the

compan was re&istered in /u&ust !01% as the IToota ?otor (ompanI.

From eptem+er !02%) TootaJs small-si4ed vehicles were sold under the

name IToopetI. The first vehicle sold under this name was the Toopet

/ +ut it also included vehicles such as the Toopet li&ht truck)

Toopet tout li&ht truck) Toopet (rown and the Toopet (orona.

8owever) when Toota eventuall entered the /merican market in !0:%

with the (rown) the name was not well received due to connotations of

tos and pets. The name was soon dropped for the /merican market +ut

continued in other markets until the mid !0"Hs.

The Toota ?otor (ompan received its first ,apanese Lualit (ontrol

/ward at the start of the !0'Hs and +e&an participatin& in a wide variet

of motorsports. 3ue to the !0%1 oil crisis) consumers in the lucrative U

market +e&an turnin& to small cars with +etter fuel econom. /merican

car manufacturers had considered small econom cars to +e an Ientr

levelI product) and their small vehicles emploed a low level of ;ualit inorder to keep the price low.

*n the !00Hs) Toota +e&an to +ranch out from producin& mostl compact

cars + addin& man lar&er and more lu$urious vehicles to its lineup)

includin& a full-si4ed pickup) the T!HH Cand later the TundraBA several

lines of UsA a sport version of the (amr) known as the (amr olaraA

and the cion +rand) a &roup of several afforda+le) et sport)automo+iles tar&eted specificall to oun& adults. Toota also +e&an

production of the worldJs +est-sellin& h+rid car) the Prius) in !00%.

*n 9HH!) TootaJs Too Trust and ankin& mer&ed with two other +anks

to form UF, ank ) which was accused of corruption + the ,apanJs

&overnment for makin& +ad loans to alle&ed Maku4a crime sndicates

with e$ecutives accused of +lockin& Financial ervice /&enc

inspections. The UF, was listed amon& Fortune Magazine's lar&est

15

http://en.wikipedia.org/wiki/Toyota_SBhttp://en.wikipedia.org/wiki/Toyota_Stouthttp://en.wikipedia.org/wiki/Toyota_Crownhttp://en.wikipedia.org/wiki/Toyota_Coronahttp://en.wikipedia.org/wiki/Toyota_Motor_Corporation#Motorsport_historyhttp://en.wikipedia.org/wiki/1973_oil_crisishttp://en.wikipedia.org/wiki/Toyota_T100http://en.wikipedia.org/wiki/Toyota_Tundrahttp://en.wikipedia.org/wiki/Toyota_Camryhttp://en.wikipedia.org/wiki/Toyota_Solarahttp://en.wikipedia.org/wiki/Scion_(car)http://en.wikipedia.org/wiki/Toyota_Priushttp://en.wikipedia.org/wiki/Toyo_Trust_and_Bankinghttp://en.wikipedia.org/wiki/UFJ_Bankhttp://en.wikipedia.org/wiki/Yakuzahttp://en.wikipedia.org/wiki/Toyota_SBhttp://en.wikipedia.org/wiki/Toyota_Stouthttp://en.wikipedia.org/wiki/Toyota_Crownhttp://en.wikipedia.org/wiki/Toyota_Coronahttp://en.wikipedia.org/wiki/Toyota_Motor_Corporation#Motorsport_historyhttp://en.wikipedia.org/wiki/1973_oil_crisishttp://en.wikipedia.org/wiki/Toyota_T100http://en.wikipedia.org/wiki/Toyota_Tundrahttp://en.wikipedia.org/wiki/Toyota_Camryhttp://en.wikipedia.org/wiki/Toyota_Solarahttp://en.wikipedia.org/wiki/Scion_(car)http://en.wikipedia.org/wiki/Toyota_Priushttp://en.wikipedia.org/wiki/Toyo_Trust_and_Bankinghttp://en.wikipedia.org/wiki/UFJ_Bankhttp://en.wikipedia.org/wiki/Yakuza


16/83

mone-losin& corporations in the world) with TootaJs chairman servin&

as a director. /t the time) the UF, was one of the lar&est shareholders of

Toota. /s a result of ,apanJs +ankin& crisis) UF, mer&ed with the ank

of Toko-?itsu+ishi to +ecome the ?itsu+ishi UF, Financial >roup.

*n 9HH9) Toota mana&ed to enter a Formula @ne works team and

esta+lish =oint ventures with French motorin& companies (itron and

Peu&eot a ear after Toota started producin& cars in France.

Toota ranked ei&hth on For+es 9HHH list of the worldJs leadin&

companies for the ear 9HH:. The compan was num+er one in &lo+al

automo+ile sales for the first ;uarter of 9HH'.

INTRODUCTION

#R9ET

The term market is derived from the Datin word ‘?arcatus’ which means

trade) merchandise or plan of +usiness. *t means interaction of the +uersand sellers in person or throu&h telephone) tele&raph) mail etc. *t is an

arran&ement that allows +uers and sellers to e$chan&e thin&s. ?arkets

var in si4e) ran&e) &eo&raphic scale) location) tpes and variet of human

communities) as well as the tpes of &oods and services traded.

#R9ETIN7?arketin& is a comprehensive term. *t is not a mere e$chan&e of &oods

and services. *t includes all those activities connected with the process of

identifin& the needs of the customer and then or&ani4in& the +usiness

accordin&l to meet the needs of the consumer.

16

http://en.wikipedia.org/wiki/Mitsubishi_UFJ_Financial_Grouphttp://en.wikipedia.org/wiki/Formula_Onehttp://en.wikipedia.org/wiki/Citro%C3%ABnhttp://en.wikipedia.org/wiki/Peugeothttp://en.wikipedia.org/wiki/Forbes_2000http://en.wikipedia.org/wiki/Buyershttp://en.wikipedia.org/wiki/Sellershttp://en.wikipedia.org/wiki/Mitsubishi_UFJ_Financial_Grouphttp://en.wikipedia.org/wiki/Formula_Onehttp://en.wikipedia.org/wiki/Citro%C3%ABnhttp://en.wikipedia.org/wiki/Peugeothttp://en.wikipedia.org/wiki/Forbes_2000http://en.wikipedia.org/wiki/Buyershttp://en.wikipedia.org/wiki/Sellers


17/83

DEFINITION OF #R9ETIN7

5?arketin& is a social and mana&erial process + which individuals and

&roup o+tain what the need and want throu&h creatin&) offerin& and

e$chan&in& products of value with others6.

P6ilip 9otler%

5?arketin& is the total sstem of interactin& +usiness activities desi&ned

to plan) price) promote) and distri+ute wants satisfin& products and

service) to present and potential customers6.

Professor =illia Stanton%

CONSUER :EH#!IOUR

The stud of consumer +ehavior helps or&ani4ations deliver the ri&ht

products at the ri&ht prices in order to achieve customer satisfaction.

@ne official definition of consumer +ehavior is 5The stud of individuals

&roups) or or&ani4ations and the processes the use to select) secure) use)dispose of products) services e$periences or idea to satisf needs and the

impacts that these processes have on the consumer and societ.6 This

definition +rin&s up some useful points.

• ehavior occurs either for the individual) or in the conte$t of a &roup

Ce.&.) friend’s influence what kinds of clothes person wearsB or anor&ani4ation Cpeople on the =o+ make decisions as to which products

the firm should useB.

• (onsumer +ehavior involves the use and disposal of products as well

as the stud of how the are purchased. Product use is often of &reat

interest to the marketer) +ecause this ma influence how a product is

+est positioned or how we can encoura&e increased consumption.ince man environmental pro+lems result from product disposal

17


18/83

Ce.&.) motor oil +ein& sent to sewa&e sstems to save the recclin& fee)

or &ar+a&e pilin& up at landfillB this is also an area of interest.

• (ustomer +ehavior involves services and ideas as well as tan&i+le

products.

• The impact of consumer +ehavior on societ is also of relevance. For

e$ample) a&&ressive marketin& of hi&h fat foods or a&&ressive

marketin& of eas credit ma +e serious repercussions for the national

health and econom.

There are several units in the market that can +e anal4ed. The main trust

in this course is the consumer. 8owever we will also need to anal4e our

own firm’s stren&ths and weaknesses and those of competin& firms.

Finall) we need to assess the marketin& environment althou&h we ma

have developed a product that offers &reat appeal for consumers a

recession ma cut demand dramaticall.

F#CTORS =HICH INFLUENCE CONSUER :EH#!IOR

• CULTURE

(ulture is part of the e$ternal influence that impacts the consumer.

(ulture represents influence that is imposed on the consumer + other

individuals.

(ulture refers to 5that comple$ whole which includes knowled&e) +elief)

art morals) customs and an other capa+ilities and ha+its ac;uired + man

or person as a mem+er of societ6.

18


19/83

Culture 6as several iportant c6aracteristics

(ulture is comprehensive.

(ulture is learned rather than +ein& somethin& we are +orn with.

(ulture is manifested within +oundaries of accepta+le +ehavior.

Dan&ua&e is an important element of culture. *t should +e reali4ed that

re&ional differences ma +e su+tle. u+ culture refers to a culture within a

culture) u+ culture is often cate&ori4ed on the +asis of demo&raphics.

(% DEO7R#PHICS

3emo&raphics are clearl tied to su+ culture and se&mentation. 8ere)

however we shift our focus from anal4in& specific su+ culture to trin&

to understand the implication from entire populations.

+% SOCI#L STR#TIFIC#TION

ocial class is a somewhat ne+ulous su+=ect that involves stratifin&

people into &roups with various amounts of presti&e) power) and

privile&e. *n certain other cultures however) stratification is more clear-

cut. /lthou&h the caste sstem in *ndia is now ille&al) it still maintains a

tremendous influence on that societ.

,% F#IL; LIFE C;CLE

*ndividuals and families tend to &o throu&h a 5Dife (cle6. The life ccle

&oes from childOteena&er oun& sin&leoun& couplefull

nestempt nest widow CerrB. For purpose of this discussion) a

5couple6 ma either +e married or merel involve livin& to&ether. /s a

person &ets older) he or she tends to advance in his or her career and tends

to &et &reater income.

19


20/83

/% F#IL; DECISION #9IN7

*ndividual mem+ers of families often serve different roles in decision that

ultimatel draw on share famil resources. ome individuals are

information on &atherersOholders who seek out information a+out

products of relevance. The decision makerCsB have the power to

determine issues such as<

whether to +u

7hich product to +u

7hich +rand to +u

7here to +u it) and

7hen to +u

*t should +e noted that famil decisions are often su+=ect to a &reat deal of

conflict. ome famil mem+ers ma resort to various strate&ies to &et

their wa.

0% 7ROUP INFLUENCES

/ useful framework of analsis of &roup influence on the individual is the

so called reference &roup. The term comes a+out +ecause an individual

uses a relevant &roup as a standard of reference a&ainst which one self is

compare. Reference &roups come in several different forms.

The inspirational reference &roup refers to those others a&ainst whom one

would like to compare one self. For e$ample co-workers) nei&h+ors or

mem+ers of churches) clu+s and or&ani4ations.

20


21/83

1% DIFFUSION OF INNO!#TION

The diffusion of *nnovation refers to the tendenc of new products)

practices or ideas to spread amon& people. (umulative adoptions are

reflected + -shaped curve. The saturation point is to the ma$imum

proportion of consumer likel to adopt a product. Dower priced products

often spread more ;uickl and the e$tent to which the product is trial

ena+led influence the speed of diffusion.

2% SELF-CONCEPT

The consumer faces several possi+le selves. The actual self reflects how

the individual actuall is) althou&h the consumer ma not +e aware of that

in realit. *n contrast ideal-self reflects a self that a person would like to

have +ut does not in fact have. *ndividuals will often seek to au&ment and

enhance their self-concepts and it ma +e possi+le to market products that

help them in the achievement of this &oal.

3% LIFEST;LE

elf-concept often translates into a person’s life stle) on the wa that he

or she lives his or her life. /ttempts have +een made to classif consumer

into various se&ments +ased on their life stle.

$4% SITU#TION INFLUENCESpecific circumstances often influence consumer +ehavior consumer

whose attention is demanded elsewhere are likel to disre&ard

commercial messa&es.

21


22/83

$$% CONSUER DECISION #9IN7

(onsumer decision makin& comes a+out as an attempt do solve consumer

pro+lems. / pro+lem refers to 5a discrepanc +etween a desired state and

an ideal state which is sufficient to arouse and activate a decision process.

$(% CONSUER PRO:LES RECO7NITION

(onsumer often note pro+lems + comparin& their current or actual

situation e$plicitl) or implicitl) to some desired situation creatin&

pro+lems for consumer is a wa to increase sales. There are two main

approaches to search. *nternal searches are +ased on what consumers

alread know. Thus it ma +e important for certain firms to advertise to

consumers +efore the actuall need the product. E$ternal searches &et

the people to either speak to others or use other sources.

=HO IS THE CUSTOER>

The word is derived from Icustom)I meanin& Iha+itIA a customer was

someone who fre;uented a particular shop) who made it a ha+it to

purchase &oods of the sort the shop sold there rather than elsewhere) and

with whom the shopkeeper had to maintain a relationship to keep his or

her Icustom)I meanin& e$pected purchases in the future. Ever person

who enters the +usiness is a potential customer. Even thou&h the ma

not purchase somethin& toda) the ma purchase somethin& tomorrow

the are individuals in their own ri&ht.

• / customer is the most important person in our +usiness.

• / customer is a person who comes to us with needs and wants and

it is our =o+ to handle them in a manner that is profita+le to himOher and

ourselves.

22


23/83

• / customer is not a cold statisticA heOshe is a human +ein& with

feelin&s and deserves to +e treated with respect.

• / customer is not an interruption to our work - he is the purpose of

it. 7e are not doin& him a favour + servin& himA he is doin& us a favour

+ &ivin& us the opportunit to do so.

• / customer deserves the most courteous attention we can &ive.

(ustomers are not dependent on us) we are dependent on them /

(ustomer is anone who receives the work ou do

CUSTOER S#TISF#CTION

?COP#RISON OF E@PECT#TIONS !ERSUS PERCEPTION OF

E@PERIENCE%A

IatisfactionI itself can refer to a num+er of different facts of the

relationship with a customer. For e$ample) it can refer to an or all of the

followin&<

• atisfaction with the ;ualit of a particular product or service

• atisfaction with an on&oin& +usiness relationship

• atisfaction with the price-performance ratio of a product or

service

• atisfaction +ecause a productOservice met or e$ceeded the

customerJs e$pectations

Custoer satisfaction) in a +usiness term is a measure of how products

and services supplied + a compan meet or surpass customer

e$pectation. *t is seen as a ke performance indicator within +usiness.

(ustomer satisfaction is tied directl to profita+ilit. *f customers are

happ) the tend to +e loal. /nd if the’re loal the not onl +u more)

the refer other customers.

23


24/83

(ustomer satisfaction with a purchase depends on how well the product

performance corresponds with the customer’s e$pectations. (ustomer

satisfaction is a ke factor of future +uin& +ehavior. / compan must +e

careful to set the ri&ht level of e$pectations. *f the set e$pectations too

low) the ma fail to attract enou&h +uers. *f the raise e$pectations too

hi&h) +uers will +e disappointed. (ustomer satisfaction is one of the ke

+locks for +uildin& customer relationships.

7innin& customersJ hearts and minds is increasin&l important to

customer ac;uisition and customer retention./s competitive advanta&e

and differentiation is achieved throu&h product innovation and service

performance it is vital to monitor and mana&e customer satisfaction

levels.

(ustomer satisfaction is not =ust a+out service levels or product attri+utes.*t can +e seen as a function of two main components<

• perceptions of product and service levels received

• e$pectation of product and service levels

IPORT#NCE OF CUSTOER S#TISF#CTIONB

To ma$imi4e profits and productivit) a +usiness must reco&ni4e five

facts<

!. ?an senior mana&ers onl know a+out the tip of the ice+er&) a

small fraction of all the pro+lems that customers encounter.

9. ervices offered to customers can +e a ma=or marketin& tool--

convertin& pro+lem situations into incremental revenue.

24


25/83

1. (ustomer pro+lems can cost an +usiness not onl an immediate

lost sale) +ut also future purchases + that customer and + other

customers as a result of ne&ative word-of-mouth +ehavior.

2. / +usiness can and must ;uantif the e$pected pa+ack from

service andOor ;ualit improvements that is +rou&ht throu&h

customer satisfaction.

:. The market transaction CsaleB often is not the ke point of customer

pain and lost revenue. @ften) +oth the product offerin& Cproduct

itself) how it is offered) and fulfillmentB and customer e$pectations

are ma=or contri+utors to pro+lems) even thou&h the pro+lem

surfaces in the customer service area.

CUSTOER S#TISF#CTION RESE#RCH DELI!ERS 9E;

:ENEFITSB

• Understandin& the underlin& drivers of satisfaction

• *dentification of tri&&er points where satisfaction mana&ement is most

needed

• Prioriti4ation of action areas Cminimum input for ma$imum returnB

• *dentification of customer-supplier interactions) internal processes and

departments most likel to cause satisfactionOdissatisfaction.

• *mpact on loalt and propensit to recommendA a vital +ottom line

measurement

• (ontinuous improvement of all ac;uisition) production) and deliver

processes.

• (ompanOcustomer participation

E#SURIN7 CUSTOER S#TISF#CTION

25


26/83

There are several was to &ather input from customers. The simplest wa

to find out how customers feel and what the want is to ask them. *f we

have onl 9H customers) we can talk to each one personall. The

advanta&e of this approach is that weJll &et a personal IfeelI for each

customer. The disadvanta&e is that we will &ather different information

from each customer dependin& on how the conversation &oes. (ustomer

surves with standardi4ed surve ;uestions insure that we will collect the

same information from everone. Few of the customers will +e interested

in Ifillin& out a ;uestionnaireI. *tJs work for them without much reward.

launchin& a customer surve as an attempt to find out Ihow we can

serve ou +etterI -- our customers will feel less put upon.

8ere are a few of the possi+le dimensions we could measure<

• Lualit of service

• peed of service

• Pricin&

• (omplaints or pro+lems

• Trust in the emploees of the +usiness

• The closeness of the relationship with contacts in the firm

• Tpes of other services needed

• The positionin& of the +usiness in clientsJ minds

26


27/83

RESE#RCH DESI7N

TITLE OF THE STUDY:

The title of the pro=ect is 5/ TU3M @N (UT@?ER /T*F/(T*@N

T@7/R3 T@M@T/ (/R /T N/N3* T@M@T/6

STATEMENT OF PROBLEM B

Find out views and perceptions towards various +rands of cars availa+le

in the automo+ile industr) what is that particular aspect that drives the

customer to end his purchase decision in T@M@T/ motors and also what

e$pectations the customer carries with him when he enters a showroom to

make a purchase) whether it’s is related to price) +enefits provided) +rand

consciousness) features of cars etc.

SCOPE OF THE RESEARCH:

!. Findin& out the stren&th and weakness of attri+uted of the Toota cars)

where it can correct its facult facts.

9. Findin& the num+er of future purchases.

1. Findin& the market potential and awareness of the cars.

2. Findin& the position of the vehicle amon& the competitors.

:. Findin& the perception of consumers a+out the vehicle

O:ECTI!ESB

!. rand preference of one over the other)9. Perception of the customer and how and wh it chan&es)1. 7hat induces the final purchase decision)2. To understand the market potential for Toota cars):. Understandin& the underlin& drivers of satisfaction

RESE#RCH ETHODOLO7;B

27


28/83

ETHODOLO7; OF STUD;

Sources of )ata

PRI#R; D#T#

SECOND#R; D#T#

PRI#R; D#T#

Primar data was collected throu&h a ;uestionnaire which was

administered to the customers.

SECOND#R; D#T#

*t includes +oth e$ternal and internal data. *nternal data were compan

manuals) annual reports) +rochures etc. E$ternal data are current

information re&ardin& the compan su+=ect is o+tained from online

sources) ma&a4ines etc.

S#PLIN7 DESI7N

Saplin5 et6o)s

(onvenient samplin& was adopted to select the samples.

Saple sie

The sample si4e for the pro=ect is !HH respondents

FIELD =OR9

For the collection of the data a structured ;uestionnaire was used. The

;uestionnaire was desi&ned to &ain insi&hts from the respondents.

28


29/83

PL#N OF #N#L;SIS

The data collected from ;uestionnaires were processed ta+ulated and

anal4ed. To avoid wron& inference certain factors like incomplete and

dishonest answers were eliminated.

TOOLS FOR #N#L;SIS

For the purpose of knowin& the level of customer satisfaction the data

collected is anal4ed usin& various statistical tools like< The surve is

classified application which is a device summari4in& data and presentin&

them in ta+les. This is used for showin& relevant sect oral classification.

LIIT#TION OF STUD;

/ll the studies to +e made have their own parameters and it is difficult to

make a stud on assumption despite all possi+le efforts to make this

analsis comprehensive) scientific and accurate. Thus there is +ound to +e

some limitations.

• 3ue to time constraints and shorta&e of other resources such as

mone) onl hundred respondents were selected

• The sample si4e was chosen keepin& in view the tpe of product.

• /s the scope of the stud was limited to an&alore cit limits the

area factor also emer&es as one of the limitation.

• The accurac of the report depends upon how honestl or sincerel

the respondents have answered.

CH#PTER SCHEE

29


30/83

C6apter IB >eneral introduction deals with the industrial +ack&round)

Theoretical literature and current issues.

C6apter IIB *ntroduction to the pro+lem which includes statement of

pro+lem) *mportance of the stud) @+=ectives) cope of the stud.

C6apter IIIB *t deals with Research methodolo& which include

Research 3esi&n) Research methods) Plan of /nalsis) Dimitations of the

stud) amplin&) chapter scheme) Field work.

C6apter I!B *t deals with the industr and compan profile.

C6apter !B *t deals with the analsis and interpretation.

C6apter !IB *t deals with the Findin&s.

C6apter !IIB *t deals with Recommendations and conclusions.

#nne'ure

:i.lio5rap6&

30


31/83

COP#N; PROFILE

To&ota - T6e Histor&

The Toota >roup is one of the lar&est and most respected corporations in

the world. From a local spinnin& and weavin& compan) Toota &raduall

developed into a world plaer comprised of !1 +usiness units.

*n !0!') foundin& father akichi Tooda formed the Tooda pinnin& and

7eavin& (ompan.

8is automatic power loom revolutioni4ed the ,apanese te$tile industr. /

few ears later) his son Giichiro Tooda invested in the automotive sector

and founded the Toota ?otor (orporation. ?an other ma=or technical

and +usiness achievements followed over the succeedin& decades formin&

the >roup now encompassin& !1 +usiness areas. Renowned namesinclude 3enso) Toota Tsusho) and /ichi teel.

The >roup emplos over :HH)HHH people worldwide. Ever individual

contri+utes to safe&uard the enormous le&ac of e$perience and character

that make up the diverse

31


32/83

/fter the econd 7orld 7ar) ,apan e$perienced e$treme economic

difficult. (ommercial passen&er car production started in !02% with the

model /. The compan was on the +rink of +ankruptc + the end of

!020. The compan eventuall o+tained a loan from a consortium of

+anks which stipulated an independent sales operation and elimination of

Ie$cess manpowerI.

*n ,une !0:H) the compan produced onl 1HH trucks and was on the

ver&e of &oin& out of +usiness. The mana&ement announced laoffs and

wa&e reductions) and in response the union went on a strike that lasted

two months. The strike was resolved + an a&reement that included

laoffs and pa reductions +ut also the resi&nation of the president at the

time) Giichiro Tooda. Giichiro was succeeded + Tai4o *shida) who was

the chief e$ecutive of Tooda /utomatic Doom.2 The first months of

the Gorean 7ar resulted in an order of over :)HHH vehicles from the U

militar) and the compan was revived. *shida was cred for his focus oninvestment in e;uipment.

*n predominantl (hinese-speakin& countries or re&ions usin& traditional

(hinese characters) e.&. 8on& Gon& and Taiwan) Toota is known as *n

predominantl (hinese speakin& countries usin& simplified (hinese

characters Ce.&. (hinaB). These are the same characters as the foundin&familJs name IToodaI in ,apanese) which translate to Ifertile rice

paddiesI in the (hinese lan&ua&e as well. From eptem+er !02%) TootaJs

small-si4ed vehicles were sold under the name IToopetI The first

vehicle sold under this name was the Toopet / +ut it also included

vehicles such as the Toopet li&ht truck) Toopet tout li&ht truck)

Toopet (rown and the Toopet (orona. 8owever) when Toota

eventuall entered the /merican market in !0:% with the (rown) the

32

http://en.wikipedia.org/wiki/Toyota_SAhttp://en.wikipedia.org/wiki/Kiichiro_Toyodahttp://en.wikipedia.org/wiki/History_of_Toyota#cite_note-DNA-3http://en.wikipedia.org/wiki/Korean_Warhttp://en.wikipedia.org/wiki/Toyota_SAhttp://en.wikipedia.org/wiki/Kiichiro_Toyodahttp://en.wikipedia.org/wiki/History_of_Toyota#cite_note-DNA-3http://en.wikipedia.org/wiki/Korean_War


33/83

name was not well received due to connotations of tos and pets. The

name was soon dropped for the /merican market +ut continued in other

markets until the mid !0"Hs.

7ith over 1H million sold) the (orolla is one of the most popular and +est

sellin& cars in the world.

The Toota ?otor (ompan received its first ,apanese Lualit (ontrol

/ward at the start of the !0'Hs and +e&an participatin& in a wide variet

of motorsports. 3ue to the !0%1 oil crisis) consumers in the lucrative U

market +e&an turnin& to small cars with +etter fuel econom. /merican

car manufacturers had considered small econom cars to +e an Ientr

levelI product) and their small vehicles emploed a low level of ;ualit in

order to keep the price low.

the earl si$ties) the U had +e&un placin& stiff import tariffs oncertain vehicles. The (hicken ta$ of !0"2 placed a 9: ta$ on imported

li&ht trucks. *n response to the tariff) Toota) Nissan ?otor (o. and

8onda ?otor (o. +e&an +uildin& plants in the U + the earl ei&hties.

*n !0'9) the Toota ?otor (ompan and Toota ?otor ales mer&ed into

one compan) the Toota ?otor (orporation. Two ears later) Toota

entered into a =oint venture with >eneral ?otors called NU??*) the NewUnited ?otor ?anufacturin&) *nc) operatin& an automo+ile-

manufacturin& plant in Fremont) (alifornia. The factor was an old

>eneral ?otors plant that had +een closed for two ears. Toota then

started to esta+lish new +rands at the end of the !0'Hs) with the launch of

their lu$ur division De$us in !0'0.

33


34/83

*n the !00Hs) Toota +e&an to +ranch out from producin& mostl compact

cars + addin& man lar&er and more lu$urious vehicles to its lineup)

includin& a full-si4ed pickup) the T!HH Cand later the TundraBA several

lines of UsA a sport version of the (amr) known as the (amr olara)

and the cion +rand) a &roup of several afforda+le) et sport)

automo+iles tar&eted specificall to oun& adults. Toota also +e&an

production of the worldJs +est-sellin& h+rid car) the Prius) in !00%.

/s of 9HH') all Toota and cion models have either standard or availa+le

Q? radio kits. ?a=or De$us dealerships have +een offerin& satellite radio

kits for De$us vehicles since 9HH:) in addition to factor-e;uipped

satellite radio models.

*n 9HH%) Toota released an update of its full si4e truck) the Tundra)

produced in two /merican factories) one in Te$as and one in *ndiana.

I?otor TrendI named the Tundra ITruck of the Mear)I and the 9HH%

Toota (amr I(ar of the MearI for 9HH%. *t also +e&an the constructionof two new factories) one to +uild the R/2 in 7oodstock) @ntario)

(anada and the other to +uild the Toota Prius in lue prin&s)

?ississippi) U/. This plant was ori&inall intended to +uild the Toota

8i&hlander) +ut Toota decided to use the plant in Princeton) *ndiana)

U/) instead. The compan has also found recent success with its

smaller modelsthe (orolla and Marisas &as prices have risen rapidlin the last few ears.

T6e To&ota =a&

TootaJs mana&ement philosoph has evolved from the companJs ori&ins

and has +een reflected in the terms IDean ?anufacturin&I and ,ust *n

Time Production) which it was instrumental in developin&.1H TootaJs

34

http://en.wikipedia.org/wiki/The_Toyota_Wayhttp://en.wikipedia.org/wiki/Lean_Manufacturinghttp://en.wikipedia.org/wiki/Just_In_Time_(business)http://en.wikipedia.org/wiki/Just_In_Time_(business)http://en.wikipedia.org/wiki/Toyota#cite_note-29http://en.wikipedia.org/wiki/The_Toyota_Wayhttp://en.wikipedia.org/wiki/Lean_Manufacturinghttp://en.wikipedia.org/wiki/Just_In_Time_(business)http://en.wikipedia.org/wiki/Just_In_Time_(business)http://en.wikipedia.org/wiki/Toyota#cite_note-29


35/83

mana&erial values and +usiness methods are known collectivel as the

Toota 7a.

*n /pril 9HH! the Toota ?otor (orporation adopted the IToota 7a

9HH!)I an e$pression of values and conduct &uidelines that all Toota

emploees should em+race. Under the two headin&s Respect for

People and Continuous Iproveent Toota summari4es its values

and conduct &uidelines with the followin& five principles

• (hallen&e

• Gai4en CimprovementB

• >enchi >en+utsu C&o and seeB

• Respect

• Teamwork

/ccordin& to e$ternal o+servers) the Toota 7a has four components< 19

!. Don&-term thinkin& as a +asis for mana&ement decisions.

9. / process for pro+lem-solvin&.

1. /ddin& value to the or&ani4ation + developin& its people.

2. Reco&ni4in& that continuousl solvin& root pro+lems drives

or&ani4ational learnin&.

The Toota 7a incorporates the Toota Production stem.

Operations

To&ota Pro)uction S&ste

Toota has lon& +een reco&ni4ed as an industr leader in manufacturin&

and production. Three stories of its ori&in have +een found one that the

studied Pi&&l-7i&&lJs =ust-in-time distri+ution sstem) one that the

35

http://en.wikipedia.org/wiki/Toyota#cite_note-The_Toyota_Way-31http://en.wikipedia.org/wiki/Toyota_Production_Systemhttp://en.wikipedia.org/wiki/Toyota_Production_Systemhttp://en.wikipedia.org/wiki/Piggly-Wigglyhttp://en.wikipedia.org/wiki/Just-in-time_(business)http://en.wikipedia.org/wiki/Toyota#cite_note-The_Toyota_Way-31http://en.wikipedia.org/wiki/Toyota_Production_Systemhttp://en.wikipedia.org/wiki/Toyota_Production_Systemhttp://en.wikipedia.org/wiki/Piggly-Wigglyhttp://en.wikipedia.org/wiki/Just-in-time_(business)


36/83

followed the writin&s of 7. Edwards 3emin&) and one that the were

&iven the principles from a 77** U &overnment trainin& pro&ram.

/s descri+ed + e$ternal o+servers of Toota) the principles of the Toota

7a are<

!. ase our mana&ement decisions on a lon&-term philosoph) even at

the e$pense of short-term &oals

9. (reate continuous process flow to +rin& pro+lems to the surface

1. Use IpullI sstems to avoid overproduction

2. Devel out the workload

:. uild a culture of stoppin& to fi$ pro+lems) to &et ;ualit ri&ht the first

time

". tandardi4ed tasks are the foundation for continuous improvement and

emploee empowerment

%. Use visual control so no pro+lems are hidden

'. Use onl relia+le) thorou&hl tested technolo& that serves our

people and processes0. >row leaders who thorou&hl understand the work) live the

philosoph) and teach it to others

!H.3evelop e$ceptional people and teams who follow our compan’s

philosoph

!!.Respect our e$tended network of partners and suppliers +

challen&in& them and helpin& them improve!9.>o and see for ourself to thorou&hl understand the situation

C&enchi&en+utsuB

!1.?ake decisions slowl + consensus) thorou&hl considerin& all

optionsA implement decisions rapidl

!2.ecome a learnin& or&ani4ation throu&h relentless reflection and

continuous improvement

36

http://en.wikipedia.org/wiki/W._Edwards_Deminghttp://en.wikipedia.org/wiki/W._Edwards_Deming


37/83

Toota Pavilion at the E$po in /ichi

Toota has &rown to a lar&e multinational corporation from where it

started and e$panded to different worldwide markets and countries. *t

displaced >? and +ecame the worldJs lar&est automo+ile maker for the

ear 9HH'. *t held the title of the most profita+le automo+ile maker

CUS!! +illion in 9HH"B alon& with increasin& sales in) amon& other

countries) the United tates. The world head;uarters of Toota are

located in its home countr in Toota) /ichi) ,apan. *ts su+sidiar) Toota

Financial ervices sells financin& and participates in other lines of +usiness. Toota +rands include cion and De$us and the corporation is

part of the Toota >roup. Toota also owns :! of 3aihatsu) and !".%

of Fu=i 8eav *ndustries) which manufactures u+aru vehicles. The also

ac;uired :.0 of *su4u ?otors Dtd. on Novem+er %) 9HH" and will +e

introducin& *su4u diesel technolo& into their product

Toota has introduced new technolo&ies includin& one of the first mass-

produced h+rid &asoline-electric vehicles) of which it sas it has sold 9

million &lo+all as of 9H!H) /dvanced Parkin& >uidance

stem Cautomatic parkin&B) a four-speed electronicall controlled

automatic with +uttons for power and econom shiftin&) and an ei&ht-

speed automatic transmission. Toota) and Toota

produced De$us and cion automo+iles) consistentl rank near the top in

37

http://en.wikipedia.org/wiki/Headquarterhttp://en.wikipedia.org/wiki/Toyota,_Aichihttp://en.wikipedia.org/wiki/Toyota_Financial_Serviceshttp://en.wikipedia.org/wiki/Toyota_Financial_Serviceshttp://en.wikipedia.org/wiki/Scion_(car)http://en.wikipedia.org/wiki/Lexushttp://en.wikipedia.org/wiki/Toyota_Grouphttp://en.wikipedia.org/wiki/Daihatsuhttp://en.wikipedia.org/wiki/Fuji_Heavy_Industrieshttp://en.wikipedia.org/wiki/Isuzuhttp://en.wikipedia.org/wiki/Hybrid_electric_vehiclehttp://en.wikipedia.org/wiki/Advanced_Parking_Guidance_Systemhttp://en.wikipedia.org/wiki/Advanced_Parking_Guidance_Systemhttp://en.wikipedia.org/wiki/Lexushttp://en.wikipedia.org/wiki/Scion_(car)http://en.wikipedia.org/wiki/File:Toyota_Group_Pavilion.jpghttp://en.wikipedia.org/wiki/Headquarterhttp://en.wikipedia.org/wiki/Toyota,_Aichihttp://en.wikipedia.org/wiki/Toyota_Financial_Serviceshttp://en.wikipedia.org/wiki/Toyota_Financial_Serviceshttp://en.wikipedia.org/wiki/Scion_(car)http://en.wikipedia.org/wiki/Lexushttp://en.wikipedia.org/wiki/Toyota_Grouphttp://en.wikipedia.org/wiki/Daihatsuhttp://en.wikipedia.org/wiki/Fuji_Heavy_Industrieshttp://en.wikipedia.org/wiki/Isuzuhttp://en.wikipedia.org/wiki/Hybrid_electric_vehiclehttp://en.wikipedia.org/wiki/Advanced_Parking_Guidance_Systemhttp://en.wikipedia.org/wiki/Advanced_Parking_Guidance_Systemhttp://en.wikipedia.org/wiki/Lexushttp://en.wikipedia.org/wiki/Scion_(car)


38/83

certain ;ualit and relia+ilit surves) primaril ,.3. Power

and (onsumer Reports althou&h the led in automo+ile recalls for the

first time in 9HH0.

*n 9HH:) Toota) com+ined with its half-owned su+sidiar 3aihatsu

?otor (ompan) produced '.:2 million vehicles) a+out :HH)HHH fewer

than the num+er produced + >? that ear. Toota has a lar&e market

share in the United tates) +ut a small market share in Europe. *ts also

sells vehicles in /frica and is a market leader in /ustralia. 3ue to

its 3aihatsu su+sidiar it has si&nificant market shares in several fast-

&rowin& outheast /sian countries.

/ccordin& to the 9HH' Fortune >lo+al :HH) Toota ?otor is the fifth

lar&est compan in the world. ince the recession of 9HH!) it has &ained

market share in the United tates. TootaJs market share stru&&les in

Europe where its De$us +rand has three tenths of one percent marketshare) compared to nearl two percent market share as the U lu$ur

se&ment leader.

*n the first three months of 9HH%) Toota to&ether with its half-owned

su+sidiar 3aihatsu reported num+er one sales of 9.12' million units.

TootaJs +rand sales had risen 0.9 lar&el on demand for (orolla and(amr sedans. The difference in performance was lar&el attri+uted to

sur&in& demand for fuel-efficient vehicles. *n Novem+er 9HH") Toota

?otor ?anufacturin& Te$as added a facilit in an /ntonio. Toota has

e$perienced ;ualit pro+lems and was reprimanded + the &overnment in

,apan for its recall practices. Toota currentl maintains over !" of the

U market share and is listed second onl to >? in terms of volume.

38

http://en.wikipedia.org/wiki/Quality_(business)http://en.wikipedia.org/wiki/Consumer_Reportshttp://en.wikipedia.org/wiki/Daihatsu_Motor_Companyhttp://en.wikipedia.org/wiki/Daihatsu_Motor_Companyhttp://en.wikipedia.org/wiki/Daihatsuhttp://en.wikipedia.org/wiki/Southeast_Asiahttp://en.wikipedia.org/wiki/Fortune_Global_500http://en.wikipedia.org/wiki/Daihatsuhttp://en.wikipedia.org/wiki/Toyota_Motor_Manufacturing_Texashttp://en.wikipedia.org/wiki/Toyota_Motor_Manufacturing_Texashttp://en.wikipedia.org/wiki/San_Antonio,_Texashttp://en.wikipedia.org/wiki/Quality_(business)http://en.wikipedia.org/wiki/Consumer_Reportshttp://en.wikipedia.org/wiki/Daihatsu_Motor_Companyhttp://en.wikipedia.org/wiki/Daihatsu_Motor_Companyhttp://en.wikipedia.org/wiki/Daihatsuhttp://en.wikipedia.org/wiki/Southeast_Asiahttp://en.wikipedia.org/wiki/Fortune_Global_500http://en.wikipedia.org/wiki/Daihatsuhttp://en.wikipedia.org/wiki/Toyota_Motor_Manufacturing_Texashttp://en.wikipedia.org/wiki/Toyota_Motor_Manufacturing_Texashttp://en.wikipedia.org/wiki/San_Antonio,_Texas


39/83

Toota (entur Roal is the official state car of the ,apanese) namel for

the current Emperor of ,apan.

Toota was hit + the &lo+al financial crisis of 9HH' as it was forced in

3ecem+er 9HH' to forecast its first annual loss in %H ears. *n ,anuar

9HH0 it announced the closure of all of its ,apanese plants for !! das to

reduce output and stocks of unsold vehicles.

/kio Tooda +ecame the new president and (E@ of the compan on ,une

91) 9HH0 + replacin& Gatsuaki 7atana+e who +ecame the new vice +

replacin& Gatsuhiro Naka&awa.

39

http://en.wikipedia.org/wiki/Toyota_Century_Royalhttp://en.wikipedia.org/wiki/Official_state_carhttp://en.wikipedia.org/wiki/Emperor_of_Japanhttp://en.wikipedia.org/wiki/Global_financial_crisis_of_2008http://en.wikipedia.org/wiki/Katsuhiro_Nakagawahttp://en.wikipedia.org/wiki/Toyota_Century_Royalhttp://en.wikipedia.org/wiki/Official_state_carhttp://en.wikipedia.org/wiki/Emperor_of_Japanhttp://en.wikipedia.org/wiki/Global_financial_crisis_of_2008http://en.wikipedia.org/wiki/Katsuhiro_Nakagawa


40/83

40


41/83

N#NDI TO;OT#

(ustomer atisfaction is our hi&hest priorit. @ur aim is to offer ou the

est E$perience of vehicle purchase service at our dealership +

maintainin& hi&h standards in (ustomer ervice to enhance the ;ualit of

Toota rand. Placin& customer satisfaction first) *nte&ratin& sales with

service and service parts in a sin&le convenient location) we contri+ute to

speed and efficient service) allowin& customers to e$perience the

convince and pleasure of ownin& Toota automo+ile.

*nte&ratin& sales) after-sales service and service parts stora&e in asin&le convenient location) 1 dealers contri+ute to the 8i&h level of

;ualit associated with Toota throu&hout the 7orld.

Nandi Toota isa full owned su+sidiar of Toota ?otor (orporation

with state of the art infrastructure and an *@ 0HH!eo&raphicall located in an&alore) we at Nandi Toota

+elieve in &ivin& ou the +est in terms of ervice Lualit (ustomer

e$perience. 7ith 1 showrooms 9 workshops) we provide our valued

41


42/83

customers a wide choice of cars ran&in& from a small car to a Difestle

vehicle includin& (U imports.

?akin& the ri&ht choice is crucial to +uin& a new car. E$plore our

we+site to help ou with a wise car +uin& decision Ri&ht from selectin&

the car) takin& a test drive and all related information a+out makin& our

choice for accessories) insurance) e$tended warrant) we will &uide ou

throu&h the complete car +uin& process. Takin& forward our relationship

with our customers) we e$tend the +est after sales service and we

continuall strive for customer satisfaction. 7e also assist ou in

e$chan&in& our old car at the +est price and up&radin& to a new car. Mou

ma now ask for a test drive) &et a ;uote for a car or do a +ookin& for a

service schedule online and &ive us our valua+le feed+ack on the same.

7e wish ou a wholesome car +uin& e$perience at Nandi Toota ?otor

7orld Dtd ,oin our famil of ! lakh plus customers

42


43/83

D#T# #N#L;SIS #ND INTERPRET#TION

Ta.le No% $ S6o


44/83

7rap6 $B S6o


45/83


46/83

7rap6 (B S6o


47/83

Ta.le No% + S6o


48/83

7rap6 +B S6o


49/83

Ta.le No% , S6o


50/83

7rap6 ,B S6o


51/83

Ta.le /B s6o


52/83

7rap6 /B s6o


53/83

Ta.le 0B S6o


54/83

7rap6 0B S6o


55/83

Ta.le 1B s6o


56/83

7rap6 1B S6o


57/83

Ta.le 2B s6o


58/83

7rap6 2B S6o


59/83

Ta.le 3B s6o


60/83

7rap6 3B s6o


61/83

Ta.le $4B S6o


62/83

7rap6 $4B S6o


63/83

Ta.le $$B S6o


64/83

7rap6 $$B s6o


65/83

Ta.le $(B S6o


66/83


67/83

Ta.le $+B S6o


68/83

7rap6 $+B S6o


69/83

Ta.le $,B S6o


70/83


71/83

Ta.le $/B S6oood '" '"

atisfactor 2 2

Not atisfactor H H

TOT#L $44 $44

Cample i4e< !HHnosB

Interpretation

The a+ove ta+le shows that out of !HH samples '" respondents sa that

the after sales service is &ood. !H respondents re&arded as e$cellent. 2

respondents sa that the after sales service is satisfactor.

71


72/83

7rap6 $/B S6o


73/83

Ta.le $0B S6o


74/83

7rap6 $0B S6o


75/83


76/83

e;uall stle and self-esteem also pla an important roll in

choosin& T@M@T/.

!H.The stud shows that most of the respondents own onl T@M@T/

C": B.

!!. C9H B of them own ?aruti alon& with Toota.

!9. ?a=orit of respondent C'H B have a &ood opinion a+out Toota

when asked to compare with other cars. C9HB of them sa that

Toota is e$cellent compared to other +rands.

!1. ?ost of the respondent C1%B sas that the like everthin& a+out

their cars like power) performance) *nteriors) Fuel econom and

low maintenance.

!2.The stud shows that mostl of the respondent C0HB are satisfied

with Toota whereas C!H B of them are hi&hl satisfied with their

cars.

!:.The stud shows that ma=orit of the respondent prefer +lack color

for their cars) it ma +e +ecause of the fashion or the roal look.!".The stud shows that most of the respondents C'" B are satisfied

with the after sales service and sa it is &ood. C!HB of them sa it

is e$cellent. 7hereas some of them C2 B sa it is =ust satisfactor.

!%.The surve shows that all the respondents C!HHB are satisfied with

T@M@T/ and that the will su&&est their friends to +u a Toota

car.

76


77/83

SU77ESTIONSB

!. Research should +e done to come up with more car safet and comfort

features.

9. Toota should come up with vehicle with +etter milea&e considerin& the

*ndian roads and the poor traffic.

1. Toota should aim at hi&h ;ualit service) speed work relia+le servicin&

and sincere attitude to the customer in order to achieve customer

satisfaction.

2. To&ota hould have a +etter and professional approach towards each

customer.

:. To&ota should or&ani4e fairs.

". Nan)i To&ota should put up service camps around the cit of an&alore

to insure +etter customer satisfaction.

%. Nan)i To&ota should pass on information to Toota re&ardin& the ever

chan&in& customer re;uirements and e$pectations.'. To&ota should come up with a vehicle for students which are afforda+le

and trend.

Hi56 ualit& service can +e represented + speed work) relia+le

servicin& and sincere attitude to the customers. /ll these can +e achieved

+<

•

Trainin& service staff workin& in a well e;uippedwork shop.

• Trainin& can +e provided to the technicians with

latest updates.

3ealers service centers to provide su&&estions to its customers for +etter

maintenance of their car and a+out various technical pro+lem that the

owner mi&ht face.

77


78/83

CONCLUSIONB

Toda in the customer driven econom) all firms are en&a&ed in arat race

to attract customers and +uild a lon& term relationship with their loal

customer. The ke to customer loalt is throu&h customer satisfaction. /

satisfied customer will act as a spokes person of the compan’s product)

and +rin& in more +uers. o marketers have to ensure customers value

satisfaction. For this the have to ensure

• Products are developed to meet customer re;uirements.

• rands are positioned so as to conve ‘distinctiveness’.

• 3eliver to reinforce the promptness in makin& availa+le to the

consumers a ‘value added’ product.

• Relationships are +uilt to offer lifetime customer value to ena+le

the consumer to e$perience ‘value satisfaction’.

• The satisfaction level of all the respondents are hi&h +ut still *

would like to recommend the followin&.

• There are three ke elements that effect the satisfaction level of

customer the are

• Lualit of the product

• (ustomer satisfaction oriented service operation

• 8i&h ;ualit service

• Toota motor compan should tr to improve on the ;ualit of

product

/ll the efforts of the marketers at trin& to understand +uin& motives)

+uin& +ehavior and workin& out suita+le promotional strate& to suit the

consumer +ehavior are to ensure consumer satisfaction. *n toda’scompetitive environment) where companies are adoptin& various methods

78


79/83

to woo the prospective consumers) marketers have to make all efforts to

understand all the comple$ities which &o into the +uin& +ehavior.

From the stud it is found that sales of Toota has taken a ma=or leap in

the auto world in the recent ears. The hi&h satisfactor level of the

customers have proved this.

79


80/83

#NNE@UREB

"UESTIONN#IRE

5 / TU3M @N (UT@?ER /T*F/(T*@N T@7/R3 T@M@T/

(/R6

!./&e &roup

a. 9!-1Hrs +. 1H-2Hrs

c.2H-:Hrs d. /+ove :Hrs

9. >ender

a. ?ale +. Female

1.@ccupation

usiness man Emploed En&ineer

3octor 8ousewife tudents

@thers

2. /nnual income/+ove 9HHHHH 9HHHHH-9:HHHH

9:HHHH-1HHHHH 1HHHHH /+ove

:. .8ave ou seen the advertisements of Toota

Mes No

80


81/83

". ?edia in which ou have seen Toota

Television Newspaper

8oardin& ?a&a4ine

%. 7hich vehicle do ou own

*nnova (orolla (amr

Fortuner Prado Dand cruiser Prius

'.7hat is the duration of our ownership

H-! !-9 9-1

1-2 2-:

0. 7hat are the factors ou consider while choosin& Toota cars

Need rand name afet

elf esteem /vaila+ilit tle

!H.3o ou own an car. *f so which

?aruti Ford Toota

Tata @thers

81


82/83

!!.8ow do ou rate the ;ualit of Toota cars

E$cellent >ood

atisfactor Not atisfactor

!9.7hat are the aspects ou like in Toota car

Dow ?aintenance Power Performance

*nteriors Fuel Econom /ll the /+ove

!1.Rate our satisfaction level towards Toota cars

8i&hl atisfied atisfied

8i&hl Unsatisfied Unsatisfied

!2.7hich colour do ou prefer to +u

ilver lack 7hite

8usk lue @thers

!:.7hat is our opinion re&ardin& the after sales service

E$cellent >ood

atisfactor Not atisfactor

!".7ill ou su&&est Toota cars to our friends

Mes No

82


83/83

:I:LIO7R#PH;

Reference :oo*s

• P6ilip 9otler 5?/RGET*N> ?/N/>E?ENT6 ) Prentice 8all)

*ndia Edition 9HHH.

• SuJa R Nair 5(@NU?ER E8/*@UR6) 8P8 Edition 9HH1.

• Naa*un)a)i Raas ?/N/>E?ENT6)1rd

Edition 9HH9.

• 9uar #run an) eenaa*s6i ??/RGET*N> ?/N/>E?ENT6)

Edition 9HH".

• 8i*un) an) #nico ?#R9ETIN7 ?/N/>E?ENT6) %T8

Edition 9HH1.

• Peter Paul % #ND aes % Donnell ?#R9ETIN7

?/N/>E?ENT6) %th Edition 9HH2.

• Re))& #ppannaia6 #n) Raanat6 5?/RGET*N>

?/N/>E?ENT6) 8imalaa pu+lication 2th Edition 9HH'.

• S6erle*ar S%# 5?/RGET*N> ?/N/>E?ENT 5) 8imalaa

pu+lication Edition 9HH:.

• Stanton =illia an) ic6ael Etel 5FUN3/?ENT/D @F

?/RGET*N>6) ?( >R/-8*DD PUD*(/T*@N !002.

=E:SITESB

Date post:	08-Jul-2018
Category:	Documents
Upload:	goku
View:	217 times
Download:	0 times

ricky toyota major project.doc

Documents