Toyota and Honda Case Study introduction, comparison , market Strategies, 4Ps , History etc

3. Introduction:
• Japanese Multinational Company
• Headquarters in Minato , Tokyo , Japan
• Primarily Known as manufacturer of automobiles
and motorcycles
HISTORY:
• Founder :- Soichiro Honda
• Founded:- September 24,1948
• The first production automobile :- T360 mini pick-
up truck

4. PRODUCTS:
•Fit
•Civic
•Accord
•Insight
•CR-V
•Ridgeline
•Pilot and Odyssey.

5. Price:
• Varies Car by Car
• In Pakistan:
The new models of Honda automobiles in Pakistan
range in minimum of 15 lacs
Place:
• In Pakistan:
• Head Office is in Lahore
• Many Large showrooms in big cities
i.e. Peshawar, Karachi, Islamabad, Multan
ACCORD: 4600000 Rs
CR-V : 4200000 Rs
CIVIC(AUTO): 1900000 Rs
CIVIC: 1820000 Rs
CITY: 1200000 Rs

6. Parts/ Service Promotions:
• Longer Life Tires
New Price Promotions:
• Honda Graduate Program
HONDA promotes its products through;
Ads, billboards, tv,
Sponsoring sports events
Customer service
Environment friendly automobiles
Through Websites

7. HONDA official slogan is
HONDA has never used its slogan to sell
its products but it was Mr. HONDA’s
belief that it will built products sell
themselves.

8. We see "The Power of Dreams" as a way of thinking
that guides us and pushes us forward. The strength of
our company comes from this philosophy — which is
based on the visionary principles of our
founder, Soichiro Honda.
We see the world not as it is, but as it could be.
We see the world through the eyes of dreamers. Because
we are a company founded by a dreamer. And we are a
company built on dreams.

9. HONDA has segmented its market in a
way that its:
ACCORD &CR-V is for elite class
HONDA CIVIC for upper middle class
HONDA CITY for only middle class

10. Honda always has targeted upper
class groups, upper middle class, and
middle class & have been very
successful in maintaining its target
market and providing with the products
of their needs.

11. HONDA HAS MAINTAINED A DISTINCTIVE
IMAGE DUE TO:
STRONG BRAND NAME
UNIQUE STYLE & DESIGN
COMFORT
SAFETY

13. Brand name image
Smoother drive as compared to competitors
Efficient performance
Quality – ISO Certification
Highly loyal, committed and motivated employees
Hardworking, experienced and qualified staff

14. Honda in Pakistan has a lower sales value than Suzuki
and Toyota.
Its Distribution Centers are less
People of Lower Class are unwilling to buy it because of
its image as high status car
Honda’s are expensive to buy and maintain then its
counterpart rivals.
It faces a long road in gaining trust and making ways to
remove the image that Honda’s are unreliable cars.

15. Customers realizing quality matters, as problems are
already cropping up in new entrants models
Initiatives and proposals in process for coping with
increased demand of bikes
Newer segments introduced with entry of new
models, design, which still have huge potential for growth
Karachi, a segment which has tremendous potential for
growth and profitability.

16. Crucial economic conditions of Pakistan can lead to the
decreased sales .
WTO (World trade Order) opening local markets for
global competition
Competitors launching newer models with stress on
reduced price for our price-sensitive economy proving
serious threat in near future
The biggest threat for HONDA is TOYOTA

18. Introduction:
Japanese Multinational Company
Headquarters in Toyota,Aichi,Japan.
Primarily Known as manufacturer of automobiles
Toyota Motor Corporation is Japan’s number one
carmaker.
HISTORY:
Founder :- Kiichiro Toyoda
Founded:- August 28, 1937
Launched their first car (SA model) in 1947

19. PRODUCTS:
Camry
Corolla
4Runner
Land Cruiser
Sienna
Lexus
Yaris

20. Price:
Varies Car by Car Too
In Pakistan:
CARS:
Minimum 10 lacs to 20 lacs
SUVs:
Minimum 50 lacs to 2 Crore
Corolla 1.3L GLi Rs. 1,621,300
Corolla 1.3L XLi Rs. 1,491,300
Corolla 1.6 GLi A/T Rs. 1,786,300
Altis 1.6 M/T Rs. 1,859,500
Altis 1.6L M/T SR Rs. 1,949,500
Camry (Auto) Rs.7,999,000
Camry(Manual) Rs. 7,799,000
Land Cruiser Prado Rs.16,899,000

21. International Presence:
Over 170 countries worldwide
In Pakistan:
Many Large showrooms in big cities i.e.
Peshawar, Karachi, Lahore ,Islamabad,
Quetta,Multan,Faisalabad etc.

22. PARTS AND SERVICE PROMOTION:
EARLY BIRD SERVICE
60MINS SERVICE
SALES PROMOTION:
Toyota have excelled in public demand and mainly in price issues.
TOYOTA promotes its products through;
Ads, billboards, tv,
Sponsoring sports events
Customer service
Through their websites

23. TOYOTA official slogan is
This tagline embodies the spirit of constant
innovation on the part of Toyota. It lends the
associations of quality and technological
capability to the brand.

24. Our mission is to deliver to you, the
consumer, the level of service that mirrors the
quality and characteristics of our brand.
"To sustain profitable growth by providing the
best customer experience and dealer support.

25. Target Market contain
SCOIN and CAMRY for young adults
LEXUS and SUVs for elite class
Hybrid Car PRIUS for economy class
COROLLA and CORONA for upper middle class
CROWN for upper class

26. TOYOTA POSITIONED THEIR BRANDS IN:
Majestic
Quality
Commitment

29. A Motivated and extremely productive work force.
Low cost, high quality factory operations guided by just in time.
Long-term partnerships with suppliers.
Careful market research and short design to show room cycles so
as to keep models closely aligned with market demand.
Having outstanding labor relations.
Strong employment relationship.
Long-term relationship with supplier.

30. Customers not segmented
Production operation not very good as the product needs
to be reworked
Limited Research and Development done as compare to
competitors
High level of responsibility on employees shoulders
Lack of flexibility in the company
Continuous stress on employees due to Continuous
improvement.

31. Toyota now have a reputation for manufacturing
environmentally friendly vehicles.
Producing high quality, small and fuel efficient cars that can
attract the consumers.
The company has launched its new Aygo, which is targeted at the
streetwise youth market and captures (or attempts to) the nature
of dance and DJ culture in a very competitive segment. The vehicle
itself is a unique convertible, with models extending at their rear!
The narrow segment is notorious for it narrow margins and
difficulties for branding.

32. Rising gasoline prices triggered by decisions of the OPEC oil cartel to
hike crude oil prices substantially.
Continuing appreciation of the yen.
Expanding demand in the Japanese auto market.
Escalating competition in the low priced car market by the entrance of
several newly industrialized countries.
Increasing sales of imports.

34. 0
50
100
150
200
250
HONDA TOYOTA
RevenueREVENUE
Honda
107.82 Billion US $
Toyota
235.89 Billion US $

35. 5.2
5.4
5.6
5.8
6
6.2
6.4
6.6
6.8
7
HONDA TOYOTA
Operating IncomeOPERATING
INCOME
Honda
6.87 Billion US $
Toyota
5.82 Billion US $

36. 0
50
100
150
200
250
300
350
400
HONDA TOYOTA
Total AssetsTOTAL ASSETS
Honda
139.61 Billion US $
Toyota
370.3 Billion US $

37. 0
20
40
60
80
100
120
140
HONDA TOYOTA
Total EquityTOTAL EQUITY
Honda
53.69 Billion US $
Toyota
128.32 Billion US $

38. 0
50000
100000
150000
200000
250000
300000
350000
HONDA TOYOTA
EmployeesEMPLOYEES
Honda
178,960
Toyota
317,734

39. 0
1000
2000
3000
4000
5000
6000
HONDA TOYOTA
1998 PRODUCTION
COMPARISON CHART
1998
PRODUCTION
COMPARISON
CHART
Honda
2,300
Toyota
5,200