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Toyota Corolla Hatchback

Group Presentation

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Background

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  • Started in Australia in 1963
  • Australia is a subsidiary of Toyota Motor Corporation
  • Toyota is based in Port Melbourne, with offices in Adelaide, Perth, Sydney, Queensland, and Darwin
  • Toyota Australia manufactured cars in Australia from 1963 until 2017.
  • Toyota Industries Corporation was founded in 1926 by Sakichi Toyoda, and is one the world’s largest vehicle manufacturers.
  • Founded by Kiichiro Toyoda in 1937, in Japan

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Company Vision

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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 our challenging goals by engaging the talent and passion of people, who believe there is always a better way.

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Create vehicles that are popular with consumers.”

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Mission

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  • Headcount total of 4,129 employees within the country

“Our aim is to make our transition to a sales and marketing business as smooth and respectful as possible for our people. We are working to maintain the engagement and motivation of all our employees, and continue to focus on safety with a goal of zero harm for employees and stakeholders.”

Employees

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  • Increase of 216,566 within 2016

  • 21st time in which Australia has lead with sales.

  • Market share of 20.1 percent

Market

“Best-selling automotive vehicle brand in Australia.”

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Demographics

  • Age: 18-60 Younger ages, usually have cars passed down to them
  • Income: Middle to upper middle, $50,000-100,000 a year
  • Occupation: mostly business-people, single young people, newlyweds

Psychographics

  • Social class: middle to upper class

  • Lifestyle: adventurous, business, working class people

Behavioural

  • Usage Rate: Most Toyota Corolla customers, want a reliable car that can be used for a long time, with little trouble maintaining the car.
  • User's: Customers who want a mid-high range (depending upon the additions to the car) vehicle, and less payment needed on petrol costs and parts.

Geographics

  • All weather vehicles used on all terrains
  • Urban, suburban areas
  • Great on petrol

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Toyota Corolla Hatchback 2019 Rollout

Currently, the Corolla is the second most popular car sold, next to the Hilux.

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The new hatchback is set to become the safest car on the road.

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Australia has accounted for 1.4 million Corollas, best selling car for the past five years.

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Why it’s the safest

In higher grade models, lane-tracing assist, to help with turning the vehicle on highways and heavy traffic. And intuitive assist, which identifies stop, give way, do not enter, and speed limit signs.

The new Corollas will come standard with Toyota Safety Sense 2, which has pre-collision system with pedestrian detection and autonomous emergency braking.

Adaptive cruise control and lane-departure alerts, steering assist and automatic high beam.

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Pricing

  • 2019 Corolla sedan is set to range from around $20,000 to $30,000
  • It’ll be offered in 3 variants, each offered with a new 2.0 litre petrol engine in manual or automatic.
  • Hybrid power unit will also be offered

https://www.motoring.com.au/2018-toyota-corolla-to-set-new-safety-benchmark-112067/

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  • Sydney especially inner Sydney, have needs for petrol efficient, small and easily maneuverable vehicles.

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  • 1 unit being sold per 15 seconds over 150 countries
  • 1.4 million of these sales within Australia.
  • 44.1 million+ Corolla;Hatchbacks have been sold globally.

Cost Structure

Automotive Industry Cost Structure Benchmark

  • Purchases (70.7%)
  • Wages (6.3%)
  • Depreciation (6.0%)
  • Rent & utilities (1.7%)
  • Other (10.4%)
  • Profit (4.9%)

(Percentages quoted during 2016-2018)

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Current Competitors

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Reliability- High on driving comfort

Consistent sales track record: One of the worlds most top selling cars

Simplicity: Simple design, and functional appeal

Brand Loyalty: Once a Toyota buyer, one generally stays a lifetime buyer, which also passes down to family members.

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Corolla has crossed another popular vehicle, Volkswagen Beetle in sales-32 million units, 2160 cars each day for the last 40 years.

Strengths

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Changing customer needs: Current trends require cars to have lots of features, high on safety and comfort, and customers are willing to pay for more higher quality vehicles; something that Toyota needs to focus on.

Recalls due to faulty airbags: affected brand reputation

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Weaknesses

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Market growth in the emerging countries.

Growth in demand for fuel efficient vehicles.

Green technology

Self driving technology

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Opportunities

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Increased competition in low cost vehicle segment.

Increasing manufacturing costs.

Fluctuation in oil prices.

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Threats

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PESTLE

Political Factors

Political stability in the market.

Free trade agreements

Governmental support for eco friendly products

Economic Factors

Weaker Yen vs. European markets

Closing factories in Australia

Rapid growth of developing countries

Social Factors

Increasing interest in hybrid cars

Increasing interest in electric cars

Widening the wealth gap

Technological Factors

Rising use of e-commerce

Mobile technology trend

Cybercrime

Ecological Factors

Climate change

Declining global oil reserves

Increasing emphasis on business sustainability

Legal Factors

Improving intellectual property laws

Increasingly complex environmental laws

Increasingly complex consumer laws

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  • Focus on Hybrid/electric cars, as this is the future, Globally
  • Sturdy, yet stylish vehicles provided
  • Enhance online buying experience as more and more sales each years are online
  • Provide customer incentives to stay with toyota as their models start to date. Example offer competitive trade in offers

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Recommendations

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Conclusion

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In conclusion here at Toyota we are doing all we can to provide customer satisfaction with our extensive warranties and cutting edge safety features. We will continue to strive to push the boundaries and grow with the industry.