Assignment MKX9550 Marketing and International Consumer - Monash

1. INTRODUCING
NEW PRODUCT
AND SERVICE
Hongsheng Zhang
25370197

2. BACKGROUND
Found in 1933
2000
World First
Hybrid Car
Prius
Launch Scions
in Nth American
for Gen Y
2002
Launch Luxury Brand
Lexus for Nth American
Market
1989
Full Line of Cars
for U.S Market
1982
Launch Mid-Price
Camry

3. 2006
World’s Largest
Car Maker
2009
Massive Recall
for over 8 Million
Offer Incentive
2 yrs free mantenance
zero-percent finance
2010
2011
World’s 3rd
Car Maker (OICA)
1.GM
2.VW
3.Toyota
Back to World’s
Largest Car Maker (WSJ)
Late 2012
Future
Toyota Concept Car

5. Make or Buy?
NEW PRODUCT
OPTIONS
Acquisition - 1998 (small off-road vehicles)
Development - Toyota
Type of New Product
Minor improvements or revisions of existing product
Camry
New-to-the-world Prius (World First Hybrid Car)
Prius

6. CAMRY
1980s 1990s 2000s
2013

7. CHALLENGES IN
NEW PRODUCT
DEVELOPMENT
Innovation Prius
- Willing to risk to entre new market
Competition GM
- Announce to enter hybrid market
Execution 2009 Recall
- Over speed development
Opportunity Scion
- Young people, personalization, cheap car
“We pursued growth over the speed at
which we were able to develop our people
and our organization. ”
-- Akio Toyota President

8. ORGANISATIONAL
ARRANGEMENTS
Customer driven engineering
Scion
Sion FR-S

9. ORGANISATIONAL
ARRANGEMENTS
Brand Management
Lexus - Luxury Brand
Toyota - Generic Brand
Scion - Budget Brand
Lexus
Budgeting
Spends more than $1 million every
hour of every day on research and
development. (Toyota Australia,2009)

10. Organizing Development
Cross-Function Team (Venture Team)
Susha - chief engineer - run the specific development program
Bucho - department manager - runs each of the various functional teams
(power train, electronics, chassis, and the like. )
not assign to specific project
ORGANISATIONAL
ARRANGEMENTS
Multiple project ongoing at same time
Manufacturing
8 models at same time
Thousands of operational changes in a year

11. Thank You

12. REFERENCE
Dawson, C. (2013, 28/01/2013). Toyota Again World's Largest Auto Maker, The
Wall Street Journal Retrieved from
http://online.wsj.com/article/SB10001424127887323375204578269181060493
750.html
Kotler, P, & Keller, Kevin L. (2012). Marketing Management (14 ed.). Essex,
England: Pearson Education Limited.
Loehr, J, & Dehoff, K. (2007). Innovation Agility. Strategy+Business, Summer
2007(47).
Toyota Australia. (2009, 09/12/2009). $1.1 Million an hour: Toyota is the
world's top R&D spender. Retrieved 16/09, 2013, from
http://www.toyota.com.au/news/toyota-the-worlds-top-r-d-spender
International Directory of Company Histories. (2001). Toyota Motor
Corporation History. Retrieved 16/09, 2013, from
http://www.fundinguniverse.com/company-histories/toyota-motor-corporatio
n-history/