A Project Report Essay

This project is partial fulfillment of requirement of BBA 6th semester in GLOBAL COLLEGE OF BUSINESS MANAGEMENT &IT, HUBLI During the course of my studies, I got a detailed information about Shodha Toyota Motors pvt ltd. It was an opportunity to learn the practical aspects of Industries. I choose this topic concerned to company requirements. Shodha Toyota is market leader in four wheeler segment. I collected the information by a structured questionnaire that includes requirements of consumer behavior in automobile industry & the questionnaire is attached in the annexure. The aim of marketing is to meet and satisfy the needs and wants of the customers. India has long-term potential to become a significant vehicle market. It has huge population of nearly one billion people (of which 150-250 million are middle class), and a current vehicle population of 3. 5 million (equivalent to only 3. 4 cars per 1000 people). In spite of numerous market deterrents, the Indian automotive market has become the focus of attention as several major auto manufacturers have announced large capital investment plans to be carried out  in the near future. Prior to the early 90? s there were only four car companies manufacturing and selling cars in India. Foreign investment was effectively banned and foreign technology transfers were subject to government approvals. By 1993 the Indian government deli-censed the Indian car industry, which eased other foreign auto manufacture’s entry in to the market first under joint partnerships, then wholly owned subsidiaries. Currently, India is in the midst of an economic-recovery where vehicle sales rose 47 percent to 73,000units in March 2000, up from 49,410 units in March 1999. The Indian passenger car industry has grown more than ten times in the last ten years with sales increasing to more than 4lakh vehicle. The global automotive car market is growing at a rate of only 4% per annum. Fortunes of the automobile industry will continue to hinge on the large, price sensitive customer, who will take time to graduate to the higher end of the market. Unite then the small car will continue to drive demand. And that is the eventuality that most of the car-manufacturers are gearing up for. INTRODUCTION TO THE TOPIC: The automobile sector has today become one of the vital areas in markets. Various upcoming features have enhanced the global competition in today’s Automobile sector. Implementing new technologies, new features and considering the customers preference are the important factors for the company’s existence in the competitive market. So if the company wants to face the competition, it has to have the update knowledge of the consumer tastes and preference. Our research is undertaken to study the market potential for Toyota Etios car in Hubli City. INDIAN AUTOMOBILE HISTORY During the 1920s, cars exhibited design refinements such as balloon tires, pressed-steel wheels, and four-wheel brakes. The origin of automobile is not certain. In this section of automobile history, we will only discuss about the phases of automobile in the development and modernization process since the first car was shipped to India. We will start automotive history from this point of time. The automobile industry has changed the way people live and work. The earliest of modern cars was manufactured in the year 1895. Shortly the first appearance of the car followed in India. As the century turned, three cars were imported in Mumbai (India). Within decade there were total of  1025 cars in the city. The dawn of automobile actually goes back to 4000 years when the first wheel was used for transportation in India. In the beginning of 15th century Portuguese arrived in China and the interaction of the two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. By 1600ssmall steam-powered engine models was developed, but it took another century before afull-sized engine-powered vehicle was created. The actual horseless carriage was introduced in the year 1893 by brothers Charles and Frank Duryea. It was the first internal-combustion motor car of America, and it was followed by Henry Ford’s first experimental car that same year. AUTOMOBILE INDUSTRY IN INDIA The Automotive industry in India Is one of the largest in the world and one of the fastest growing globally. India’s passenger car and commercial vehicle manufacturing industry is the seventh largest in the world with an annual production of more than 3. 7million units in 2010. According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent sell around three million units in the course of 2011-12. In 2009, India emerged as Asia’s fourth largest exporter of  passenger car’s behind. Japan south  Korea and Thailand  As of 2010, India is home to 40 million passenger vehicles and more than 3. 7million automotive vehicles were produced in India in 2010 (an increase of 33. 9%),making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual car sales areprojected to increase up to 5 million vehicles by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611million vehicles on the nation’s roads Title of the project â€Å"A study on Market potential for Toyota Etios car in Hubli-dharwad city†Ã‚   Main objectives * To ascertain the awareness level about Toyota â€Å" Etios† * To know different factors which influences to buy Toyota â€Å"Etios†. Sub- objectives To study the importance of Brand name while purchasing a car. * Customer Satisfaction level with existing product (car). Sample Size selected 50 Sample area The people of the Hubli-Dharwad city. Limitation of the study * ? I faced difficulty in collecting data because of busy schedule of the respondents. * Because of the busy schedule respondents may not have answered properly which may not hold true i n case they would have been given lot of time to answer. * It was difficult to get information from the organization guide due to their busy schedule. Sample: Group of research subjects whose  characteristics  approximate those of the  population it is selected from. For this project both primary and secondary data are required, hence both types of data have been collected. The study method involves the following: * Framing the objectives of the study * Based on the objectives determine the means of data collection. * Framing of Questionnaire. * Analyzing the data. * From the analyzed data interpret the results. * From the results determine the satisfaction level. * Finally suggestion, conclusions and recommendations based on the interpreted results. Survey: It is a systematic gathering of information from the respondents for the purpose of understanding and or predicting some aspects of behavior of population of interest. It provides data on attitude, feeling beliefs, past and intended behavior, knowledge, ownership, personal characteristics and other descriptive items. Questionnaire: We use questionnaire as a research tool consisting of a series of questions and other prompts for the purpose of gathering information from respondents and statistical analysis of the responses were made later. It is comprised of closed-ended questions. In closed-ended questions respondent pick an answer from given options. Sampling Population: The people of the Hubli-Dharwad city. Sampling unit: Business people, Professionals, Employees of Hubli-Dharwad city. Sampling Frame: The people who own the four wheeler cars. Sampling Method: Samples are going to be select on Non probability convenient sampling method. Data collection a)primary data: It refers to the systematic collection of information directly from respondents. This data is collected for the descriptive research. The primary data collected during the study includes the data collected through questionnaire and face-to-face interview with customer to know about the consumer behavior and their interest level. b) Secondary data: The first step in data collection approach is to look for secondary data. Usually it is the data developed for some purpose other than for helping to solve the problem at hand. Secondary data are collected through various magazines, internal experts, and website. Important findings: As Toyota is a leading automobile maker and has a good response from the Indian markets most of the respondents are aware of Toyota automobiles. Its seen that 100% of the respondents are aware of Toyota Etios. * 52% of respondents are giving main preference to Brand name while making buying decision. * 31% of respondents said Mileage is Most important while buying a car. * Out of 50 respondents customers are giving main preference to 26% Petrol engine and74% Diesel engine. * 13% of respondents give most important to price factor. * 10% of customers say Safety is most important. * 78% of customers are satisfied with their car, & 22% of customers are not satisfied. Suggestions: Price, Mileage, performance, safety & brand name are the main attributes which are going to grab the market share for Etios and hence this should be highlighted in advertisement & make them to know. * Also the Dealer should place attractive hoardings of the Toyota brands at Strategic locations in Hubli city. * Services after sales should be improved to overcome the service barriers. * Personal contact should be done to the potential customer so as to convenience the customers as there is lot of varieties of mid size cars in the market. Limitations: * I faced difficulty in collecting data because of busy schedule of the respondents. It was difficult to get information from the organization guide due to their busy schedule. Conclusion: It is a great privilege to me to study in the esteemed organization that has helped me to procure immense knowledge about the working of the organization. I would conclude that Shodha Toyota is one of the Best Organizations dealing in selling of the vehicle produced by the  world’s largest car manufacturing company. Based on the data analysis, I conclude that when consumer purchases a car: Price, Mileage, Safety and brand name of car influence him to buy a car, and also customers choose the well quality cars. The study helped me to gain valuable insights in Opportunity Analysis and Consumer Behavior, towards potential for Toyota Etios. This project titled has been acknowledge gaining experience for me. By interacting with the respondents and making visits to the customers, I have been able to understand that understanding customers is an art and it takes a very strong brand image for a company to retain itself in the market. Automotive industry in India The automotive industry in India is one of the larger markets in the world and had previously been one of the fastest growing globally, but is now seeing flat or negative growth rates. India’s passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3. 9 million units in 2011. According to recent reports, India overtook Brazil and became the sixth largest passenger vehicle producer in the world (beating such old and new auto makers as Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain, France, Brazil), grew 16 to 18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged as Asia’s fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. In 2010, India beat Thailand to become Asia’s third largest exporter of passenger cars. As of 2010, India is home to 40 million passenger vehicles. More than 3. 7 million automotive vehicles were produced in India in 2010 (an increase of 33. 9%), making the country the second (after China) fastest growing automobile market in the world in that year. According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 4 million by 2015, no longer 5 million as previously projected. The majority of India’s car manufacturing industry is based around three clusters in the south, west and north. The southern cluster consisting of Chennai is the biggest with 35% of the revenue share. The western hub near Mumbai and Pune contributes to 33% of the market and the northern cluster around the National Capital Region contributes 32%. Chennai, with the India operations of Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, and PSA Peugeot Citroen is about to begin their operations by 2014. Chennai accounts for 60% of the country’s automotive exports. Gurgaon and Manesar in Haryana form the northern cluster where the country’s largest car manufacturer, Maruti Suzuki, is based. The Chakan corridor near Pune, Maharashtra is the western cluster with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Jaguar Cars, Fiat and Force Motors having assembly plants in the area. Nashik has a major base of Mahindra & Mahindra with a UV assembly unit and an Engine assembly unit. Aurangabad with Audi, Skoda and Volkswagen also forms part of the western cluster. Another emerging cluster is in the state of Gujarat with manufacturing facility of General Motors in Halol and further planned for Tata Nano at their plant in Sanand. Ford, Maruti Suzuki and Peugeot-Citroen plants are also set to come up in Gujarat. Kolkata with Hindustan Motors, Noida with Honda and Bangalore with Toyota are some of the other automotive manufacturing regions around the country. Introduction The Indian automotive industry has emerged as a ‘sunrise sector’ in the Indian economy. India is emerging as one of the world’s fastest growing passenger car markets and second largest two wheeler manufacturer. It is also home for the largest motor cycle manufacturer and fifth largest commercial vehicle manufacturer. India is the largest base to export compact cars to Europe. Moreover, hybrid and electronic vehicles are new developments on the automobile canvas and India is one of the key markets for them. Global and Indian manufacturers are focussing their efforts to develop innovative products, technologies and supply chains. Key Statistics The amount of cumulative foreign direct investment (FDI) inflow into the automobile industry during April 2000 to July 2012 was worth US$ 6,992 million, amounting to 4 per cent of the total FDI inflows (in terms of US$), as per data provided by Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce. The Indian small and light commercial vehicle segment is expected to grow at 18. 5 per cent compound annual growth rate (CAGR) for the next five years, according to a report titled ‘Strategic Assesment of Small and Light Commercial Vehicles Market in India’ by Frost ;amp; Sullivan. According to the recent data released by the Society of Indian Automobile Manufacturers (SIAM): * The cumulative production for April-June 2012 registered a growth of 7. 65 per cent over April-June 2011, manufacturing 1,700,675 vehicles in June 2012 * Passenger vehicles segment grew at 9. 1 per cent during April-June 2012, while overall commercial vehicle segment registered an expansion of 6. 06 per cent year-on-year (y-o-y) * Two-wheelers sales registered a growth of 10. 51 per cent during April-June 2012 wherein mopeds, motorcycles and scooters grew by 6. 60 per cent, 6. 79 per cent and 29. 14 per cent, respectively Major Developments and Investments * Mercedes-Benz India plans to increase i ts investment to Rs 850 crore (US$ 158. 88 million) by 2014. The German car maker through its dealer partners has already invested over Rs 480 crore (US$ 89. 72 million) in India. The company has also announced the starting of its new, start-of-the-art paint shop that is capable of water-based painting * The Volkswagen Group aims to increase output by 10-15 per cent on a â‚ ¬100 million (US$ 126. 35 million) investment at its production facilities in Aurangabad and Chakan in Maharashtra * Nissan plans to introduce ten new passenger vehicles by the end of March 2016. Nissan India aims to double its vehicle sales in 2012-13 from 33,000 vehicles in 2011-12 * VE Commercial Vehicles (VECV), the joint venture (JV) between Volvo and Eicher, is readying a whole new range of trucks with new platforms, engines and cabins. VECV has already invested Rs 700 crore (US$ 130. 84 million) in the business * Toyota Kirloskar plans to increase capacity at its two plants in Bidadi, Karnataka, from 310,000 units to 400,000 units a year. Capacity at the first plant would rise from 90,000 units to 100,000 units, at a cost of Rs 70 crore (US$ 13. 08 million) and the second plant’s capacity is being increased from 120,000 units to 210,000 units, with an investment of Rs 830 crore (US$ 155. 14 million) * Blackstone Capital Partners (Singapore) has signed an agreement to acquire 12. per cent stake of International Tractors Ltd (ITL) in a structured transaction worth US$ 100 million * Mahindra Reva Electric Vehicles has inaugurated a new manufacturing facility in Bommasandra on the outskirts of Bangalore, Karnataka. The new manufacturing facility has an installed capacity to produce 30,000 vehicles annually * Mahindra & Mahindra Ltd has started a technical centre in Troy, Michigan, to leverage on the design a nd consulting service resources available in the region. The firm intends to use the centre to support company’s automotive and tractor engineering requirements in India * DC Design’s Avanti would be the first sports car to be designed and manufactured in India. The car’s prototype has been showcased at the 11th Auto Expo and has been priced at Rs 2. 5 million (US$ 46,728) * Yamaha Motor, Japan plans to use India as a key global hub for motorcycles and scooters. Yamaha will also use India as one of its four regional procurement bases to source parts for its global two-wheeler operations. The company also plans to expand its sales network across India in order to take its product closer to its customer base particularly in the tier II and tier III cities * Bajaj Auto Ltd has entered into an agreement with Kawasaki Heavy Industries, under which Bajaj motorcycles will be assembled and sold in Indonesia through Kawasaki’s distribution network as co-branded products * Hero Moto Corp Ltd has invested US$ 20 million in the US-based Erik Buell Racing (EBR). The investment will help EBR expand its Milwaukee production capacity and hire more people in its research and development (R&D) team INDUSTRY PROFILE Introduction to Toyota motors. Co: The Toyota motor Co. ltd was first established in 1937 as a spin-off from Toyota Automatic Looms works, one of the world’s leading manufacturer of weaving machinery. Japan’s â€Å"king of inventors† Saki chi Toyota headed by the Toyota Automatic looms works. The patent rights of one of the machine has been sold to Platt brothers (UK) and provided the seed money for the development and test building of Toyota’s first automobiles. August 1997 marked the 60th anniversary of TMC. The fledging company founded by Kiichiro Toyota, Saki chi’s son, has since blossomed into the leader that it is today. In 1950 the company experienced its one and only strike. Labor and management emerged from this stoppage firmly committed to the principles of mutual trust and dependence, and that corporate philosophy still guides our growth today. Production system were improved in the late 1950’s, culminating in the establishment of the â€Å"Toyota Production System†. It came to be known as TPS in 1970 but was established much earlier by Tahiti Ohno. Based on the principles of Judoka, Just- in- time and Kaizen, the system is the major factor in the reduction of the inventories and defects in the plants of Toyota and its suppliers, and it underpins all our operations across the world. Toyota launched its first small car (SA model) in 1947. Production of vehicles outside Japan in 1959 at a small plant in Brazil, and continued with a growing network of overseas plants. Toyota believes in localizing its operations to provide customers with the products they need them; this philosophy builds mutually beneficial in long-term relationships with local supplies and helps the company to fulfill its commitments to local labors. Over and above manufacturing, Toyota also has a Global network of design and â€Å"Research and development facilities embracing the three major car markets of Japan, North America and Europe. In every community in which the company operates, Toyota strives to be a responsible corporate citizen; close relation with the people and organizations in the local community are essential contributors to mutual prosperity. Across the world, Toyota participates enthusiastically in community activities ranging from the sponsorship of educational and cultural programmers to international exchange and research. Today, Toyota is the world’s third largest Japanese automotive manufacturer, producing more than 5. 5 million vehicles per year, equivalent to one every six seconds MISSION Mission is to design, manufacture and market, automobiles that offer global standards and quality that exceeds customer’s expectations and provides superior value and excellent after sales services. VISSION * Contribute to the Indian industry and economy through technology transfer, human resource development and vehicles that meet global standards at a competitive price. * Contribute to the well-being and stability of team member. * Contribute to the overall growth of its business associates and in the automobile industry. Toyota Motors General Information * World’s 2nd largest Automobile maker. Turnover: 16,578,033 Million Yen in 2003. * Profit after tax: 11, 62,098 Million Yen in 2003. * Profits of Toyota in 2003 are more than profits of GM, Ford and Chrysler put together. * No. of cars sold: 7. 54 Million in 2003. * 12 factories and 11 manufacturing subsidiaries in Japan. * 46 manufacturing bases in 26 countries and 168 marketing companies across 140 countries. * 8 Research and development facilities all over the world. * Total employees: 2,64,100. * Some of the most popular models include Camry, Corolla, Land cruiser Range, Crown, Avensis, * Celica, Hilux, Estima, Vios & Yaris. Made the first mass produced low emission Hybrid car in the world (Prius). * Pioneered the concept of Lean Manufacturing through â€Å"Just in time Concept† and also through the * â€Å"Kan Ban† method of Inventory Management. Strength of the Organization: The organization has strength of minimum 108 employees, which varies according to the requirement. Working hours of employment: In Shodha Toyota, the employees work for eight hours per day. Service9:00amTo6:00pm Sales9:30amTo6:30pm Admin & Finance10:00amTo7:00pm On Sundays- 10. 00 am to 2. 00pm (OT will be given) Toyota Kirloskar Motors Ltd Year of Establishment | October 6, 1997| Country| Japan| Joint Venture| Toyota Motor Corporation| Shareholders| Toyota Motor Corporation (89% equity)Kirloskar Group (11% equity)| Paid-in capital| Rs. 7. Billion. | Liaison Offices| New DelhiGth floor, Meridian Commercial Tower8 Windson Place, New Delhi- 110 001 BangaloreSana Plaza, 21/14A, MG RoadBangalore – 560 001| International Office | 1, Toyota-cho, Toyota CityAichi prefecture 471-8571, Japan| Chairman| Mr. Ryoichi Sasaki. | Vice Chairman| Mr. Vikram. S. Kirloskar| Managing Director| Mr. H. Nakagawa. | Deputy MD’s| Mr. Sandeep SinghMr. S. Tomonaga. | DMD, Commercial| Mr. Shekar Vishwanthan| Website| www. toyotabharat. com| Global Website| www. toyota. co. jp| Toyota Kirloskar Motor ltf. (TKML) was incorporated in 1997, as a joint venture between Toyota Motor Corporation, Japan and the Kirloskar Group, wide. Toyota Motor Corporation is the third largest auto manufacturer in the world. The TKML is practicing Toyota Production System at their plant at Bidadi, Bangalore. The Toyota Production System was born out of need. The two pillars that this system is based on are Just-in-time and automation The Toyota Production system relies on absolute elimination of waste of essentials. Toyota is by far the largest Japanese automotive manufacturer, producing more than 4. 5 million vehicles per year, equivalent to one car manufactured every six seconds. Toyota’s plant in India is situated at Bidadi, Karnataka, which is green belt Toyota’s commitment to preserving environment is very high. Toyota all over the world provides a wide selection of innovative, reasonable priced and high quality products through an exclusive dealer’s network with the best sales and after sales service at global Toyota standards. Timely customer feedback through the service network also allows the company to respond to emerging customer needs and introduce new product tailored to the Indian market. Toyota kirloskar Motor Ltd Plot No 1, Bidadi Industrial Area, Ramnagar Taluka Bangalore (Rural) District, Karnataka-562109 The vision of Toyota Kirloskar Motor is to: 1. Delight our customers through innovative products, by utilizing advanced technologies and services. 2. Ensure growth to become a major player in the Indian auto industry and contribute to the Indian economy by involving all stakeholders. 3. Become the most admired and respected company in India by following the Toyota Way. 4. Be a core company in global Toyota operation Mission: 1. Practice ethics and transparency in all our business operations. 2. Touch the heart of our customers by providing products and services of superior quality at a competitive price. 3. Cultivate a lean and flexible business model 4. throughout the value chain by continuous improvement. 5. Lead the Toyota global operations for the emerging mass market 6. Create a challenging workplace which promotes sense of pride, ownership, mutual trust and teamwork. . Create an eco-friendly company in harmony with nature and society. Technology transfer Toyota Production Technology Growing together System transfer Guided by the principle of â€Å"growing together†, Toyota Group companies have contributed to the growth of the automotive industry in each country they operate in, through strong partnership based on high level of localization and technolog y transfer. Along with manufacturing and sales activities, Toyota Group companies provide extensive know-how related to product development, manufacturing and sales through technological transfers to their affiliated companies. In this manner, manufacturing and sales level will be steadily improved on a broad basis. Toyota products made in India have become increasingly competitive as a result of continual, comprehensive improvements made ill operations. The introduction of the world-famous Toyota production system and cutting-edge technology has advanced industrial innovation. There professionals in manufacturing and sales contribution to higher competitiveness and the growth of Indian industries in this new century Toyota’s Lexus and Toyota branded vehicles rank annually among the world’s highest-quality cars in third party survey of customer satisfaction. Environment Sound workplace & Environmental Responsibility Toyota Techno Park India A global first for Toyota, Toyota Techno Park India (TTPI), in Bbidadi near TKM, is a non-profit infrastructure company conceived around the new Toyota Kirloskar motor automobile plant. TTPI’s objective is to foster ancillary industries in India, to help promote local industries through technological transfer and expand employment opportunities. First joint ventures have already been established with Toyota Group companies in TTPI’s involving TG Kirloskar Automotive Ltd. , Stanzen Toyotas India Pvt. Ltd. , Sona Koyo Steering System ltd. , steel and Logistics Center Pvt. Ltd. , and Tran System Logistics International Pvt Ltd . Environment, Technology and Employment Toyota is committed to manufacture technically advanced and environment friendly products. The plant at Bidadi surrounded by a green belt meets high environmental standards and has also obtained ISO 14001 on 26th April 2001. Toyota has always believed that the best way to serve society is providing automobiles that will not only make people happy, but will also be environment friendly. Waste water at TKM is collected and purified to a level that can be used for fish pond and rice fields. To realize high quality vehicle production at reasonable price, Toyota seeks the best balance between human resources and advanced robot technology. Accumulated Domestic Production of 100 million Vehicles By October 1999, Toyota had reached a domestic production of more than 100 million vehicles and worldwide cumulative production about 112 million vehicles, since its founding. This world-class record is proof of our continuing efforts to satisfy customer expectations. Researches and development has made possible technological advancements in quality manufacturing safety efficiency and environmental preservation, all of which contribute to enhancing customer satisfaction. Toyota Motor Corporation Global vision Toyota Puts Forth â€Å"2010 Global Vision† TOKYA- TOYOTA MOTOR CORPORATION (TMC) has established the basic concept for â€Å"2010 Global Vision†- a company –wide management outlook that sets the direction for long term management. TMC President Fujiio Cho announced the details of this vision within the company today, calling on all to â€Å"take on the challenges of innovation with complete passion and dedication†. ‘2010 Global Vision† evolved from the course outlined in ‘2005 Vision†, which TMC set in 1996. Since then Toyota has positioned the early part of the 21st century as its â€Å"Second founding period† and has been engaged in efforts to realize harmonious growth. But current conditions have convinced Toyota that it is now time to: new dreams for future growth; determine the direction in which to proceed; and carry out concrete reforms. These conditions include global political, economic and social trends, as well trends towards next-generation technologies, such as environmental and information technologies, and various changes in the management environment. Centered on the basic theme â€Å"innovation into the Future†, the core objective of â€Å"2010 global vision† is to set a course for a more prosperous society based on making things and technological innovation. It proposes the corporate image for which all of Toyota should strive and the paradigm change Toyota should undergo with consideration towards what society is expected to be like in the 2010s. Since its foundation, Toyota has sought to contribute to society by â€Å"making things† and â€Å"making automobiles†. Toyota plans to break down the contents of this paradigm change for easier linkage to an internal reform movement that aspires to create a global corporation where each employee is passionate about future growth and about building a prosperous society in the new century. Four innovations for the Future (concerning what TMC envisions society to be like in the first half of 21st century and the corporate image TMC wants to project) 1. Towards a Recycling –based society As we move toward a â€Å"recycling society† on a global scale, demands are rising that we move away from the era of large-scale production and large-volume consumption and disposal towards a recycling based society that promotes conservation of resources, reusing and recycling. Toyota will Endeavour to become a leader of global regeneration through its outstanding environmental technologies. 2. Towards the age of ITS and ubiquitous Networks Information and telecommunications technologies are advancing, the use of IT in automobiles is progressing, mobile information services are improving dramatically, and transport infrastructure and infrastructure respondent preventive safety are developing. Against this backdrop, Toyota will aim to be a leader in creating vehicles and motorized society in which people can live safely, securely and comfortably. 3. Towards development of motorization on a global scale Motorization is advancing in China and other emerging markets and people around the world are enjoying the high degree of mobility afforded by automobiles. In order to promote this, Toyota will expand the appeal of automobiles throughout the world and largely increase the number of fans of Toyota, resulting Toyota being able to include in its view a global share of about 15% early on in the 2010s. 4. Towards a matured society As nationalism steadily declines and respect for all peoples expands throughout the world, global companies are shifting towards societies where people of a variety of nationalities and ethnicities can engage in lively exchanges of ideas. Toyota seeks to become a truly global enterprise that is respected by all peoples around the world. Paradigm change To become the corporation of our future vision, Toyota will boldly undertake a worldwide review of existing corporate structures, frameworks and methods and implement a paradigm change in order to address issues such as development of a wide range of cutting-edge technologies, construction of corporate structures that can be successful in global cost competition, global expansion of business, product development that responds sensitively to the immediate market, establishment of efficient local management and construction of sales structures suitable for individual markets. Technology and product development Innovation in R & D structures and development of innovative production technologies. * Toyota will accelerate technological reform on a global scale by actively engaging in development of basic technologies in such fields as the environment, safety and information and by actively pursuing advances in nano technology, materials and others. * To accomplish this, Toyota will consider systems for making optimum use of world experts and industrial, governmental and academic alliances. To strengthen the competitiveness of core technologies concerning such items as engines and platforms for ensuring efficient development, Toyota will review its approach to global tie-ups, including international sharing and distribution of functions. In addition, it will promote strategic technical alliances (including mergers and acquisitions), as needed. * Toyota will actively pursue the construction of global, IT-based development and production preparations system s, as well as the development of innovative production technology that can be implemented around the world. Innovations in product manufacturing structures For developing new technologies and new products from the viewpoint that â€Å"the customer always comes first†, not only will Toyota surpass its previous efforts to use its managerial resources to the fullest and to strengthen its processes, it will also promote the manufacture of products for the next generation based on proposals that incorporate Toyota’s ideas and dreams and excite and inspire customers Management Innovations in global management structures TMC will clarify responsibilities and authority to create optimal and independent local entities in each region. Toyota will also actively make contributions to local societies. TMC will monitor and support local entities from the perspective of overall optimization and will consider the formation of a global management functions. Innovations in-Group structures Toyota will select the concentrate on business areas and technology fields, and alliances (including mergers and acquisitions) to reform structures from the perspective of promoting development of next generation technology, reinforcing global cost competitiveness, and developing global products and business to create efficient consolidated and group structures. Teamwork featuring various types of talent Toyota will promote the creation of environments featuring people from around the world with various skills and values who are given the opportunity to experience self-realization as individuals . Ideally, these people will be able to: * Have pride in contributing the society through Toyota * Bring out the most in their specialty and creativity * Develop themselves and increase their value by working for Toyota * Work under various terms of employment and attractive incentives Profit structures Innovations to form balanced structures with effective hedging of global risks. Toyota will shift to a structure to a structure supported by three profit bases-Japan, North America and Europe. Efforts such as re-strengthening the sales structure to keep it in step with the market and enhancing competitiveness in domestic production will be carried out in Japan, Toyota’s home base, to reform the structure of management for increasing the ability to improve earnings. Also for this, management resources will be redistributed for optimization on a global scale. Management that places importance on all stakeholders in co-existence with management that emphasizes efficient use of assets Toyota will continue to reinforce management that emphasizes the efficient use of assets, as well as build strong and good relationships with all stakeholders to become a respected global corporation over the long-term by peoples and regional societies around the world. Figures mentioned in this document constitute one part of the basic concept described above based on judgements and assumptions derived from information currently available. In light of the possibility of changed as a result of the uncertainty inherent in such judgment and assumptions and changes in internal and external circumstances, actual results may differ considerable COMPANY PROFIL About Shodha Motors Shodha Toyota consists of the following Board of Directors: Group CEO : Mr. R G Kulkarni Managing Director : Mr. Prasad Deshpande Director : Mrs. Meghana Deshpande. Director : Mrs. Kalpana Nayak Shodha Toyota is engaged in Sales and Service of Toyota Vehicles. Shodha Toyota covers 12 district of Northern Karnataka. Mr. Prasad Deshpande and Mr. P. R. Nayak promote this dealership. Shodha Toyota is situated on Poona- Bangalore NH, 11Kms from Hubli. Hubli is a business center and is well connected by road, rail and air. The customer base includes Industrial houses, Businessmen, Government Departments and others. The Principal, M/ s Toyota for development of competence of their employees. They have implemented Quality Management System in accordance with ISO- 9001: 2000 and they are in the process of obtaining the desired result. Shodha Toyota, Hubli, is the latest to join the network of exclusive Toyota ‘3S’ dealership. ‘3S’, which signifies Sales, Service & Spare parts under one roof, is Toyota’s unique approach to customer care and service. The Sales, Service and Spare Parts officers in the Dealership, have been given extensive training by Toyota Shodha Toyota is one of the first of its kind in Hubli, similar to other Toyota Dealerships in India, meeting Toyota International Standards. It is fully equipped with state-of-the-art tools ;amp; equipment and necessary spare parts, from the day of commencement of its operations. Mr. S. Yamazaki Managing Director, Toyota Kirloskar Motor Ltd. , in presence of the Honorable Minister for Large ;amp; Medium Industries, Govt. of Karnataka, Mr. R. V. Deshpande, the Deputy Managing Director of TKML, Mr. K. K. Swamy, and Director of Marketing – TKML, Mr. S. Aoki, inaugurated the facility on 29th April 2001. Quails, launched as a premium MPV a year ago, conforms to the global Toyota Standard. Toyota Quails is poised in a category all to itself, having set new benchmarks for Quality, Reliability and Perfom1ance. It is powered with most efficient 2. L diesel engine and comes in different variants, and conforms to Euro n standards by wide margins. Toyota Quails’ launched in January 2000, has 35% market share in the MPV segment, selling 21,785 Quail (domestic sales) in its first year of operation itself, exceeding its yearly target of 20,000 units. 2001 saw a demand for Qualis on the rise, with record sales of 3,010 units in March alone. THE MAP OF THE ORGAN ISATION: Showroom Service reception Service parts warehouseEvents Toyota has a unique kind of infrastructure for all of its authorized dealers. As you enter from first door of the organization, you will find a receptionist on the right side. As you move few steps straight, you will get in touch with the sales department wherein you can meet Sales manager (separate Cabin), showroom sales officers, and assistant Sales manager. Crossing sales department, you will find other sales cabin where in all sales work is done. Front to that cabin, you find upstairs and two separate wash rooms meant for gents and ladies. If you let your move to the upstairs, you find another toilet room to the left side. Continue to walk, first you will come across General Manager Cabin, then Finance Manager Cabin, next to it you find a meeting room and a room in which you can meet accounts officer, EDP officer and Human resource officer. Attached to that cabin, you can get a storeroom wherein you find various files, things kept. You will also find a Xerox machine in store room. The meeting room is not only meant for meetings but also conduct interviews whenever a candidate is called for the respective post. O. K. , come back with the same route to near receptionist. Now move to the left side from room entrance, you find service department. There you can find service manager cabin, service advisors, warranty clerk, accessories In-charge. A well-organized customer lounge can be found near to the service counter. If you move inside the service counter, you will find parts and accessories warehouse along with its In-charge and his assistants, a job controller cabin. The job controller cabin is such that he can observe all the service activities from his place. If you again come to the service counter, you find a way to work shop and canteen. In workshop, you find chief technicians, Technicians and electricians. On the upstairs of workshops, you come across a toilet room, resting room for technicians, a training room and lastly canteen room. The left side of exit door of workshop you find an open area of vehicles standing. Move your path to it; you find a room meant for denting and painting of vehicles. You will also find a building construction near to it, which is nothing but a new canteen that is under process. Organation study Functions of Managing Director Managing Director in co- ordination with General Manager has defined following quality function for Shodha Toyota. * To understand and define customer vehicle requirements clearly and executing the order as per the sales process so as to achieve 100% customer satisfaction. * To procure spare spare parts and materials from approved suppliers and keep optimum stock levels so that customer requirements are fulfilled. * To understand and define customer service needs clearly and executing them as per service process so as to achieve 100% customer satisfaction. To allocate work to competent personnel and improve their competence through effective training. * To improve process continuously at every opportunity. * To maintain pressure free environment, hygienic facilities and clean, atmosphere with an aim serve people and society. * To meet the requirements all interested parties, viz suppliers, directors, employees, Toyota Kirloskar Motors Ltd, suppliers, statutory and regulatory bodies w ith an aim to enhance stake holders’ satisfaction. SALES DEPARTMENT FUNCTION : Sales Manager| Asst. Sales Manager| Team Leader| | Team Leader| Showroom sales officer | Field sales officer| Documentation officer| Marketing officer| Data entry operator| Test drive co-ordinator| Tele caller operator| It is an important part of the Shodha Toyota, Hubli it mainly comprises of sale of utility Vehicle and passenger cars namely Qualis, Corolla and Camry. The Toyota Sales Process has six modules, which follow the steps in Toyota sales Process. These modules include: 1. Preliminary Activities 2. Approach and Qualifying 3. Presentation and Demonstration 4. Negotiation and Closing 5. Delivery 6. Follow Up . Preliminary Activities: Preliminary Activities include collection of all databases of the customers and generation of the yearly sales target activity takes place. The general Manager and the Sales Manager plan this activity. Sales target are set for that particular year. Further it also includes monthly sales planning which depends on the ability of the sales officer and the potential area of the monthly sales targets will be alloc ated to each sales officers. 2. Approach and Qualifying: Sales territory of Shodha Toyota is distributed within 12 districts. Each district has one Assistant sales Manager who collects the information of the customers and informs the sales Manager. Here then the sales Manager sends direct mail advertising about the vehicle of the customer. * Sales letter * Circulars * Price list * Catalogs * Leaflets * Pamphlets * Broacher * Postal Qualifying includes whether the customer is a potential buyer. People may be targeted according to their standard of living, designation and their ability to pay. 3. Presentation and demonstration: Once the customer approach the showroom the presentation and demonstration activity is carried out. This activity includes display of the vehicle and features such as safety and security, style and design, interiors, information regarding the engine are brought into light. 4. Negotiation and closing: Once the customer decides to buy the vehicle the sales manager negotiates with him and further documentation takes place. Once the customer is satisfied the deal is closed. He will be given some other special benefits like financial options, free one-year insurance and other such schemes. 5. Delivery: After the execution of the above – mentioned activities Delivery of the vehicles takes place. . Follow Up: Responsibilities of the showroom extent not only after the sales of the vehicle but there is an extend courtesy which includes a phone call from the sales Department on the 3rd day, followed by a â€Å"thank you† Letter along with a phone call by the sales Manager and a photograph taken on the date of the delivery of the owner. RESPONSIBILITIES OF SALES MANAGER 1. To Pl an set target and sales of vehicles. 2. Monitoring daily targets of all sales officers. 3. Conducting sales meeting regularly 4. Monitoring daily customer / weekly reports enquires. 5. Ensuring effective territory coverage by sales officers. 6. Achievements of sales target. 7. Identifying the inventory and provide inventory to sales officers. 8. Interaction for event / promotional activities with TKM 9. Coordinating Customer Relationship Management 10. Motivating sales officers, their performance review and periodic appraisal. 11. Co-ordinating training program. 12. To ensure show room housekeeping, perfect condition of display vehicles and test –drive vehicles. 13. To attend management review meeting and indicating corrective and preventive actions. ADMINISTRATION DEPARTMENT: Administration Officer Maintenance Officer Gardner Cleaner Office boy H. R DEPARTMENT H. R DEPARTMENT H. R Manager H. R Officer RESPONSIBILITIES OF H. R DEPARTMENT 1. To identify competence and skill levels required for personnel for carrying out the activities in QMS. 2. To recruit the personnel based on minimum education, experience and skills required to perform the activities, in consistency with top management. 3. To identify the training needs for personnel to satisfy the competence requirement. 4. To identify training needs and conduct/organize training. 5. To perform evaluation of training imparted iand they’re by to judge improvement in competence and skill of employee. 6. To maintain records of education, experience and training of all employees. SERVICE DEPARTMENT FUNCTIONS : SERVICE DEPARTMENT Head Customer Service, heads workshop or servicing departments, he is assisted by a service Manager. 3 Service Advisors, a job Controller and a Part in charge then assist the service Manager. When a vehicle is brought for servicing, then service Manager refers it to any of the advisors, who then prepares a job card, jots down the problems, what the customer’s complaints are about? He then gives advises for repairs, replacements and then further process of repairs and general check up starts that is when the responsibility is handed over to the Chief Technicians who carry on the work on the work and after all mechanical work is completed, the vehicle is sent to washing where the outer body is given the water wash and the interiors are given air blow. In the same way accident cases are dealt with and the procedures for repairs goes hand in hand with the insurance agent who inspects the vehicle and then gives orders for further repairs. On an average 15 vehicles are serviced in a day. RESPONSIBILTIES OF SERVICE MANAGER The service Manager is the leader of the dealer service workshop He is responsible to: 1. Plan, lead, Organize and control the service department. 2. Analyze and ensure customer satisfaction. 3. Direct Staff towards Customer oriented thinking. 4. Oriented Dealer organization in accordance with customer needs. 5. Co-ordinate service and warehouse operation 6. Observe dealership Guidelines and fulfill manufacture’s priority tasks. 7. Generate profit for the dealership, monitor cost effectiveness, analyze major service indicators and develop market for dealership. . Manage service shop infrastructure, environmental and safety issues. ADMINISTRATION DEPARTMENT Administration Departments looks about the financial aspects of the company. The accounts department at Shodha Toyota is fully computerized and Finance/ Administrator heads it. The other persons under the Finance / Administrator are human Resource Officer, Accounts Officer, Electronic Data Processing Officer, Cashier, Receptionist and Housekeeping supervisor. All the information regarding the financial aspects is maintained in the computers. Strength of the Organization: Toyota believes that an organization gets its strength from its employees. We cultivate a corporate culture that truly reflects the qualities of  Ã¢â‚¬ËœContinuous Improvement’ and ‘Respect for People’ in all our activities, collective and individual. We not only encourage employees to give their suggestions on improving our products, practices and work environment, but also reward them for their  valuable inputs. Total employees = 173 as per Aug 2011. Working hours of employment: In Shodha Toyota, the employees work for eight hours per day. Service 9:00am  To  6:00pm Sales 9:30am  To  6:30pm Admin & Finance 9:30am  To  6:30pm On Sundays 10. 00 am to 2. 00pm (OT will be given) Attendance Maintenance: The presence of an employee can be verified by the attendance register, whereineach employee has to sign it twice (morning and after launch) as a day is divided in twoparts (1sthalf day and second half day). Canteen Facility: The employees as well as customers can enjoy the food in organization it. ShodhaToyota has a canteen facility where in the employee gets subsidized food where ascustomers get the same thing at a cheaper rate. Advantages: 1. Toyota Motor Corporation (TMC) is the world? s largest vehicle manufacturer by production and sales. 2. Toyota Motor Corporation is the part of â€Å"Toyota Group† one of the biggest conglomerates in the globe. 3. Toyota is best known for environmentally safe, Quality, durability, reliability, and value for money and convenient. 4. In 1997, Toyota began manufacturing of the globe? s best-selling hybrid car, the Prius. 5. The principles and beliefs based on Continuous Improvement and Respect for People. 6. Toyota has very strong presence in Europe due to the accomplishment of Toyota Team Europe. 7. It presently maintains more than 16 percent of the US market. 8. For the year 2005, Toyota ranked 8 on Forbes 2000 directory of the world’s leading companies. 9. Toyota’s sales had risen 9. 2 percent mostly on demand for Camry sedans and Corolla 10. It has initiated new technologies including first bulk-produced hybrid gasoline-electric automobile which had two million sales worldwide in 2010. 11. For the first quarter of 2008, Toyota was number one in worldwide vehicles sales. Disadvantages: 1. The financial Meltdown resulted in liquidity deficit in the U. S banking system which ultimately decreased consumer wealth. 2. Industry is facing adverse impact of fluctuations in foreign currency conversion rates. 3. Increased competition, market saturation, forceful marketing campaigns and rising competitive pressures. 4. Increasing maintenance costs of vehicles, rising fuel price and changing customer preference are challenging threats. PRODUCTS OF TOYOTA TOYOTA COMPETITORS International National Toyota awards Overview of Toyota Etios Toyota Etios- An outstanding combination of compact size and avant-garde technology. Toyota Motor Corporation the 3rd largest auto manufacturer in the world has launched its highly awaited sedan, Toyota Etios on Dec 1st 2010. This is the first ever and the last (as per the company) low cost sedan from Toyota stable. Toyota Etios is available in 6 colors Comes with 5 variants namely Toyota Etios J, Toyota Etios G, Toyota Etios G safety, Toyota Etios V and Toyota Etios VX, from Rs 4. 96 lakhs to 6. 86 lakhs. Toyota Etios is targeted at masses in India. As per the company, to develop this people’s car, over 2,000 engineers were engaged to give it small size without compromising on the eye-catching interior, Power, Performance and Higher fuel economy. The exterior of the car is sporty and sharp. Front face of the Toyota Etios looks like a smiling face of human with dimples at cheek (headlamps). Toyota has promised to provide world class technology and quality with the Toyota Etios. The design concept for the car is Bold Simplicity which is referred to affordable luxury and functionality in one machine. This will compete with the Tata Indigo CS, Maruti Swift Dzire, Tata Indigo Manza, Chevrolet Aveo and the Ford Fiesta. Toyota holds a tremendous brand recognition and reputation in India. This new innovation of Toyota, Etios sedan comes equipped with 1. 5 litre petrol engine. The Toyota Etios engine will produce 90 PS of peak power at 5600 rpm. The engine generates maximum torque of 132 Nm at 3000 rpm. This simply indicates huge power hidden in this vehicle. 52 TOYOTA ETIOS Toyota Etios is available in 5 variants namely: * Toyota Etios J * Toyota Etios G * Toyota Etios G safety * Toyota Etios V Toyota Etios VX Toyota Etios Q Class – Sedan (Available now only in Petrol, Diesel will be launched in September 2011). Toyota Etios is available in 6 different colors: FEATURES OF TOYOTA ETIOS: Comfort ;amp; Convenience * Air conditioner with Heater ;amp; Clean Air Filter * Power Windows * Electric Power Steering * Central Locking * Cooled Glove Box * Front Cabin Lights * Front Power Ou tlet (12V) * Sporty Front Headrest * Pillow Type Rear Headrest * Tilt Steering * Digital Tripmeter * Speakers 4 Interior Features * Internally Adjustable ORVM * Luggage Room Lamp 7 Bottle Holders (1 Litre) * Front Door Pockets * Rear Door Pockets * Day/Night Inside Rear View Mirror * Driver – Side Sunvisor * Remote Fuel Lid Opener * Remote Tailgate Opener * Assist Grip with Coat Hook Exterior Features * Body Coloured Bumpers * Side Protection Moulding Chrome Insert * Intermittent Wiper * Tubeless Tyres * Full Wheel Caps * Chrome Garnish on Boot * Front Grille Chrome Ornament * 12 Spoke Sporty Alloy Wheels Safety Features * Immobilizer * Keyless Entry * Door Ajar Warning * ABS (Anti-Lock Braking System) * EBD (Electronic Brake Distribution) * SRS Airbags57 Advantages: Good Performance * Reliability * Value for money * Good mileage * High power and torque for high speeds and great pickup. Disadvantage: * Long waiting for delivery. RESEARCH METHODOLOGY Title of the project †Å"A study on Market potential for Toyota Etios car in Hubli city† Main objectives * To ascertain the awareness level about Toyota â€Å" Etios† * To know different factors which influences to buy Toyota â€Å"Etios†. Sample Size selected 50 Sample area The people of the Hubli-Dharwad city. Limitation of the study * ? I faced difficulty in collecting data because of busy schedule of the respondents. Because of the busy schedule respondents may not have answered properly which may not hold true in case they would have been given lot of time to answer. * It was difficult to get information from the organization guide due to their busy schedule. Sample: Group of research subjects whose  characteristics  approximate those of the  population it is selected from. For this project both primary and secondary data are required, hence both types of data have been collected. The study method involves the following: * Framing the objectives of the study * Based on the o bjectives determine the means of data collection. Framing of Questionnaire. * Analyzing the data. * From the analyzed data interpret the results. * From the results determine the satisfaction level. * Finally suggestion, conclusions and recommendations based on the interpreted results. Survey: It is a systematic gathering of information from the respondents for the purpose of understanding and or predicting some aspects of behavior of population of interest. It provides data on attitude, feeling beliefs, past and intended behavior, knowledge, ownership, personal characteristics and other descriptive items. Questionnaire: We use questionnaire as a research tool consisting of a series of questions and other prompts for the purpose of gathering information from respondents and statistical analysis of the responses were made later. It is comprised of closed-ended questions. In closed-ended questions respondent pick an answer from given options. Sampling Population: The people of the Hubli-Dharwad city. Sampling unit: Business people, Professionals, Employees of Hubli-Dharwad city. Sample Size: 50 Sampling Frame: The people who own the four wheeler cars. Sampling Method: Samples are going to be select on Non probability convenient sampling method. Data collection a)primary data: It refers to the systematic collection of information directly from respondents. This data is collected for the descriptive research. The primary data collected during the study includes the data collected through questionnaire and face-to-face interview with customer to know about the consumer behavior and their interest level. b) Secondary data: The first step in data collection approach is to look for secondary data. Usually it is the data developed for some purpose other than for helping to solve the problem at hand. Secondary data are collected through various magazines, internal experts, and website. TOOLS ANALYSIS: * Tables * Graphs ANALYSIS TABLE SHOWING THE OCCUPATION OF THE RESPONDENTS SLNO| Occupation| NO OF USERS| Percentage %| a| Private employee| 8| 16| b| Businessman| 29| 58| c| Government employee| 6| 12| d| Politician| 7| 14| Total| 50| 100| Interpretation: From 50 respondents surveyed, 58% of the respondents are business man, 16% of the people are private employees, 12% are Government employee and 14% are Politician by this we come to know that we have potential of selling Etios in the existing market.