COMPARATIVE STUDY ON THE EFFECT OF MARKETING TECHNIQUES OF VOLKSWAGEN & TOYOTA

TEERTHANKAR MAHAVEER UNIVERSITY, MORADABAD

2012

SUBMITTED TO: Mr. Abhinav Srivastava

SUBMITTED BY: Ashutosh Singh TMU Roll no: R0912011061 Section: E

CERTIFICATE

Ashutosh Singh

This is to certify that Ms/Mr................................................................. is pursuing three year full time Bachelor of Business Administration (BBA) Course from Teerthanker Mahaveer University, Moradabad as regular student, in session (2009-2012).

In compliance with the provision/guidelines of Teethanker Mahaveer University, Moradabad, He/she has been assigner a market survey project. The market survey report work has been genuinely carried out by the student for the during specified by the university.

He/she has made sincere efforts in the completion of the market survey report.

Mr. Abhinav Srivastava

Project Guide

STUDENT DECLARATION

I Ashutosh Singh hereby declare that the research work presented in this market survey report entitled effect of marketing techniques for the fulfillment of the award of Bachelor of Business Administration from Teerthanker Mahaveer University; Moradabad is based on my market survey work with special reference to Volkswagen& Toyota. The market survey report embodies the result of original work and studies carried out by me and the contents of the report do not form the basis for the award of any other degree to me or to anybody else.

Ashutosh Singh BBA 5th Sem

ACKNOWLEDGEMENT It gives me immense pleasure and privilege to acknowledge my deepest sense of gratitude towards all those who helped me in the successful execution of this market survey report.

I would like to thanks Chancellor Sir, Shri Suresh Jain, Group Vice Chairman Mr. Manish Jain, for their able guidance. I also extend my gratitude towards the H.O.D. Mr. M.P. Singh and my course co-ordinator Mr. Abhinav Srivastava who entrusted me for the completion of this project. I am highly indebted to my project guide, Mr. Abhinav Srivastava whose constructive counseling and able guidance helped me immensely in bringing out this project in the present form. And lastly the entire faculty member and Mr. Sanjeev Singh (Librarian) & the entire Lab staff for providing me this opportunity and expose me to industrial culture. The acknowledgement would be incomplete without thanking my family and friend who were a big support throughout. Ashutosh Singh BBA 5th sem

ABSTRACT The Indian Automobile Industry is on overdrive. The rapid urbanization, coupled with an overwhelming growth in the middle class population, has created an Indian market that is extremely conducive for the automobile industry to flourish. Indian automobile industry recorded a growth of 16.07% in 2006-2007.Automobile industry contributes 4% of the national GDP and accounts for 5% of the industrial output in India. It is moreover, a major employment generator in the country. The Indian automobile industry provides employment to around 13 million people directly or indirectly at present, a number that is likely to double by 2016. The following report is a comparative study of two automobile giants tries to establish their respective brands of cars in the minds of the Indian Consumer. The Purpose of the study is effect of their marketing campaigns on the Indian consumer which tries to find value for their money. Volkswagen being who entered the Indian Market in the year 2005 with its brand Skoda had lot success in the recent years. Toyota has a partnership with Kirloskar and entered the Indian Market in the year 1997 and is able to establish their name in the Indian Market. As both of these companies have already launched their specialised cars for the Indian Consumer, it would be interesting to find which manufacturer is able to understand the Indian consumer completely.

Table of Contents Chapter No. Contents Page no. 1. Introduction.................................................. ............ 1.1 Introductory Paragraphs........................................... 1.1.1 State of Indian Economy........................................ 1.1.2 Current State of Indian Auto Market...................... 1.1.2.1 Small Vehicle Market........................................... 1.1.2.2 Indian Exports..................................................... 1.2 Statement of Problem................................................. 1.2.1 Market Strategy and Consumer Behaviour.............. 1.3 Objectives.................................................................... 1.4 Significance of the Study.............................................. 1.5 Hypothesis................................................................... 2. Background.................................................................. 2.1 Literature Review......................................................... 2.1.1 Volkswagen............................................................... 2.1.1.1 History of Volkswagen........................................... 2.1.2.1 Volkswagen in India............................................... 2.1.2.2 Volkswagen marketing India.................................. 2.2.1 Toyota....................................................................... 3. Methodology 3.1 Research and Design.................................................... 3.2 Research Process.......................................................... 3.3 Exploratory Research................................................... 3.3.1 Primary Data.............................................................. 3.3.2 Secondary Data.......................................................... 3.3.3 Data Collection........................................................... 3.2 Population and Sampling.............................................. 3.2.1 Sample Size................................................................ 3.3 Time Frame................................................................... 3.4 Validity and Reliability................................................. 3.4.1 Questionnaire error.................................................... 3.5 Assumptions................................................................. 4 Finding Interpretation and Conclusion 4.1 Conclusion.................................................................... 4.2 Hypothesis Testing........................................................ 5 Limitations and Recommendations.................................. Bibliography....................................................................... Annexure............................................................................

1.1 Introductory Paragraphs India ranks just behind China with the worlds second largest population at over 1 billion people. Less than 1 percent of the population currently owns automobiles, which is a much smaller proportion than the rest of the Southeast Asia region. For example, the regional average of ownership is 16.45 percent. Nonetheless, sales of passenger vehicles in India have more than doubled since 2001 to over 1.5 million units. India also has one of the fastest growing economies, and many U.S. companies view India as a potentially lucrative market. It is expected that the automotive industry will play an important role in helping the economy to continue this growth. Not only are domestic sales expected to grow dramatically, but India will play a significant role in the global automotive market. The worlds top manufacturers, General Motors, Ford, Toyota, Honda, and others, have a significant share of already established manufacturing bases. These manufacturers hope to not only capture an emerging market, but also to use these bases as export hubs to serve the region and the global market. Though not to the same extent as the telecom sector, the automobile and auto-component industry has also emerged as one of the recent success stories. As in all other countries, the Indian automobile industry is one of the key drivers of industrial growth and employment which will further gain in importance in the coming years. Its recent record of rapid output growth, productivity improvements and expanding share in global markets has perhaps not been so well documented. This study fills that gap. The study will help us understand how the industrys success is quite directly linked to the trade and industrial policy reforms initiated in the early 1990s. More importantly, the study will identify the critical constraints that prevent the industry from further expansion in the global share and emerge as one of the major production and export hubs in the coming years. This analysis is based on a comprehensive review of secondary literature and an extensive fieldwork which covered the major automobile assemblers and understanding of their marketing techniques across all the three tiers so as to cover the largest and the smallest component producers. This has allowed us to make some specific policy recommendations which have been discussed with the industry representatives more than once. These recommendations, if accepted and implemented, could contribute to Indias emergence as one of the major automobile producing economies in the world. Given our domestic demand and the entrepreneurial talent, this would be a natural outcome.

1.1.1 State of the Indian Economy Indias economy has experienced a continued high level of growth in recent years. Some predictions are that Indias rapidly expanding economy will soon be the worlds third largest. While growth is expected to slow this year, it is still expected that India will continue to be one of the fastest-expanding economies. Foreign direct investment (FDI) in India tripled from $4.7 billion to $15.7 billion from FY2005/06 (April 2005-March 2006) to FY2006/07(April 2006March 2007).The automotive industry is one of the leading industries in India for FDI, and the U.S. automakers have made considerable investments since the early-1990s. According to statistics from the Government of India, FDI in the transportation sector, the fourth largest sector in India, totalled $3.5 billion from August 1991 through December 2006.India embarked on this economic liberalization plan in 1991 in the hopes of spurring economic growth. These reforms included opening up India to FDI. In 2002, 100 percent foreign ownership was permitted. Growing at 8.7 percent for 2007-08, India has one of the fastest expanding economies in the world and the second fastest in Asia, and it has the potential for a sustained growth of 8-10 percent for the next several years. Indias GDP is $1.16 trillion, which equates to $4,139 per capita for 2007-08. With a population of over one billion people, India provides potentially lucrative opportunities for U.S. businesses in a number of fields, as reflected by the growth in U.S. investments. With a large and growing middle class estimated to be in the hundreds of millions, along with a small wealthy subpopulation, the Indian population provides a largely untapped opportunity for growth in the automotive sector 1.1.2 Current State of the Indian Auto Market The Indian auto market is currently small with potential for dramatic growth. While the regional average is for 16.45 percent of the population to own a car, less than 1 percent of the Indian population owns one. Given the large size of the middle class with increasing purchasing power and the youthful population (over half the population is less than 25 years of age and India has the highest proportion of population below 35), there is the potential to penetrate a largely untapped market. Also, given the availability of cheap, skilled labor, India has the potential to serve as a regional export hub for manufacturers in the AsiaPacific region.

1.1.2.1 Small Vehicle Market The Indian market is dominated by small, low-cost vehicles (two wheelers such as scooters and motorcycles make up about 75 percent of the market share). Approximately 75 percent of passenger car sales in India are small cars. Tata Motors has introduced the Nano, which is both fuel-efficient (about 50 miles per gallon) and cheap ($2,500). Tata is expecting to launch sales of the Nano in 2008.A number of other manufacturers have already announced plans to develop small cars in a similar price range in order to compete effectively in this market. 1.1.2.2 Indian Exports Currently, Asia and Africa are Indias largest export markets, but the European market has seen recent growth as well. Exports of passenger vehicles nearly tripled from 72,005 in 2002-03 to 198,478 units in 2006-07.According to the Society of Indian Automotive Manufacturers (SIAM), approximately 1.4 million passenger vehicles were sold in FY06/07. The top India manufacturers, in descending order, are Maruti Suzuki, Hyundai, Tata Motors, Honda, Ford, India, General Motors India, Hindustan Motors, Skoda Auto India, Toyota Kirloskar Motor, Volkswagen and Fiat India. Most of these manufacturers are already calculating how to further expand production and sales in India. For example, Maruti plans to produce 1 million cars annually by 2010. Nissan, in a joint venture with Renault and Mahindra & Mahindra, plans to open a plant in 2009 with a 400,000 unit production capacity. By the end of 2008, Honda will double its production capacity to 100,000 units, with a second factory set to open in 2009. Toyota has also announced plans to invest $340 million in a second production plant near Bangalore to produce small, affordable cars. Production at this new plant is scheduled to begin in 2010 with a production capacity of 100,000 units. With Indias goal to be a major regional export hub, coupled with manufacturers increased investments, it can be expected that the number of exports from India will continue to rise significantly. The competitive nature of the automobile industry has prompted the companies to take up new and innovative marketing strategies to thwart the competition. The B segment of cars is the segment which sees maximum competition as the consumer has a number of models to choose from and it's the volumes which drive the margins .All the companies as a part of their marketing strategy offers a range of vehicles in all the segment to make sure that the customer is driving one of their vehicles only .Advertisements on the Audio visual medium are a rage as it gives the car makers an opportunity to flaunt their cars. Flashy cars can be demonstrated on television but when it comes to the finger prints of the cars, print and online media comes to the rescue.

The online medium offers a greater flexibility to the car companies since they come with a lot of interactive features like demonstrating the interiors of the car with its salient features. The print medium on the other hand provides an opportunity to the car makers to explain the function of a car in detail. The use of conventional and unconventional marketing techniques has been regularly used by the car manufacturers from time to time. This report tries to a compare two automobile giants, i.e. Volkswagen and Toyota in terms of their marketing techniques and its effect in the Indian market. Volkswagen is a German automobile company which recently came into India and is able to set-up their roots in the Indian market in a very short period of time, on the other hand we have Toyota who has already established its name in the Indian market. Now , both of the companies are changing gears in order to attract the Indian Consumer, with a mindset of value delivery and cost orientation towards their products. Philip Kotler Quotes The most important thing is to forecast where customers and be in front of them. Driving the most luxurious car has been made possible by the stiff competition in the automobile industry in India, with overseas players gathering the same momentum as the domestic participants. Every other day, we have been hearing about some new launches, some low cost cars all customized in a manner such that the common man is not left behind. In 2012, the automobile industry is expected to see a growth rate of around 15%, with the disclaimer that the auto industry in India has been hit badly by the global financial crisis. As it has been predicted that India would be the 11 the biggest market by 2013. 1.2 Statement of Problem To understand the Indian Consumer psychology on cars as well as what to expect from big car manufacturers such as Toyota and Volkswagen in the near future, in order to impress the Indian Consumers. All of us are consumers. We consume things of daily use; we also consume and buy these products according to our needs, preferences and buying power. These can be consumable goods, durable goods, speciality goods or, industrial goods. What we buy, how we buy, where and when we buy, in how much quantity we buy depends on our perception, self concept, social and cultural background and our age and family cycle, our attitudes, beliefs values, motivation, personality, social class and many other factors that are both internal and external to us. While buying, we also consider whether to buy or not to buy and, from which source or seller to buy. In some societies there is a lot of affluence and, these societies can afford to buy in greater quantities and at shorter intervals. In poor societies, the consumer can barely meet his barest needs.

The marketers therefore try to understand the needs of different consumers and having understood his different behaviours which require an in-depth study of their internal and external environment, they formulate their plans for marketing. Consumer behaviour is a complex, dynamic, multidimensional process, and all marketing decisions are based on assumptions about consumer behaviour. Marketing strategy is the game plan which the firms must adhere to, in order to outdo the competitor or the plans to achieve the desired objective. In formulating the marketing strategy, to sell the product effectively, cost-benefit analysis must be undertaken. There can be many benefits of a product, for example, for owning a motor bike one can be looking for ease of transportation, status, pleasure, comfort and feeling of ownership. The difference between this total benefit and total cost constitutes the customer value. The idea is to provide superior customer value and this requires the formulation of a marketing strategy. The entire process consists of market analysis, which leads to target market selection, and then to the formulation of strategy by juggling the product, price, promotion and distribution, so that a total product (a set of entire characteristics) is offered. The total product creates an image in the mind of the consumer, who undergoes a decision process which leads to the outcome in terms of satisfaction or dissatisfaction, which reflect son the sales and image of the product or brand. The process of decision-making varies with the value of the product, the involvement of the buyer and the risk that is involved in deciding the product/service. Consumer is also influenced by the marketing activities and efforts of the marketer. All these factors lead to the formation of attitudes and needs of the consumer.

1.2.1Marketing Strategy and Consumer Behaviour (i) Marketing Analysis (a) Consume (b) Company (c) Competition (d) Condition (ii) Marketing Segmentation (e) Identify product related needs (f) Group customers with similar need sets (g) Describe each group (h) Select target market (iii) Marketing Strategy (i) Product (j) Price (k) Distribution (l) Communication (m) Service (iv) Consumer Decision Process (n) Problem recognition (o) Information searchinternal, external (p) Alternative evaluation (q) Purchase (r) Use (s) Evaluation (v) Outcomes (t) Customer satisfaction (u) Sales (v) Product/Brand image 1.3 Purpose/Objectives 1) To find out the consumer preference and reasons for buying a particular brand of Car. 2) To study the strategy behind Volkswagen and Toyota and consumers outlook towards that strategy.

1.4 Significance of the Study The significance of the study is the market analysis, of two automobile giants Toyota and Volkswagen. Market analysis requires an understanding of the 4-Cs which are consumer, conditions, competitor and the company. A study is undertaken to provide superior customer value, which is the main objective of the company. For providing better customer value we should learn the needs of the consumer, the offering of the company, vis-a-vis its competitors and the environment which is economic, physical, technological, etc... A consumer is anyone who engages himself in physical activities, of evaluating, acquiring, using or disposing of goods and services customer is one who actually purchases a product or service from a particular organisation or a shop. A customer is always defined in terms of a specific product or company. However, the term consumer is a broader term which emphasises not only the actual buyer or customer, but also its users, i.e. consumers. Sometimes a product is purchased by the head of the family and used by the whole family, i.e. a refrigerator or a car. There are some consumer behaviour roles which are played by different members of the family. 1.5 Hypothesis Toyota and Volkswagen made the right moves in the Indian Market and are able to establish their brand which is well recognised in India.

Chapter-2 Background 2.1 Literature Review 2.1.1 Volkswagen Type: Public Company Headquarters: Germany Industry: Automotive Products: Cars, Trucks Revenue: 113.8 billion (2008) Operating income: 6.61 billion (2008) Profit: 4.68 billion (2008) Employees: 369,928(2008) Vehicle brand companies Audi Bentley motors ltd. Bugatti automobile Subsidiaries: Lamborghini Skoda auto

INTRODUCTION TO VOLKSWAGEN Type: Subsidiary of Volkswagen group Founded: May 28, 1937 Founders: Ferdinand Porsche, Adolf Hitler Headquarters: Wolfsburg, Germany Area served: Worldwide Key people:

(Chairman of board of management) Martin Winterkorn

Christian kingler: (board of management of the Volkswagen passanger cars)

Worldwide location of various Volkswagen plants

In German, Volks pronounced as (folks), means people and Wagen means Car. Hence: Volkswagen means "people's car" in German, in which it is pronounced [fDlksvaDn].Its current tagline or slogan is Das Auto (in English The Car). Its previous German tagline was Aus Liebe zum Automobil, which translates to: Out of Love for the Car, or, For Love of the Automobile, as translated by VW in other languages. 2.1.1.1History of Volkswagen Adolf Hitler had a keen interest in cars even though he did not like to drive. In 1933,shortly after taking over as leader of Germany, he teamed up with Ferdinand Porsche to make changes to Porsche's original 1931 design to make it more suited for the working man. Hans Ledwinka discussed his ideas with Ferdinand Porsche, who used many Tatra design features in the 1938 "KdFWagen", later known as the VW Kferor Volkswagen Beetle. When Chrysler brought out the 1934 DeSoto Airflow coupe, its design enabled Mr. Porsche to finalize his design of the Beetle. On 22 June 1934, Dr. Ferdinand Porsche agreed to create the "People's Car" for Hitler's mother. After some time, they planned to change some features regarding various aspects. These changes

included better fuel efficiency, reliability, ease-of-use, and economically efficient repairs and parts. The intention was that ordinary Europeans would buy the car by means of a savings scheme ("Save five Marks a week, if you want to drive your own car"), which around 336,000 people eventually paid into. The VW car was just one of many KdF programmes which included things such as tours and outings. The prefix "Volks" ("People's") was not just applied to cars, but also to other products in Europe; the "Volksempfnger" radio receiver for instance. On 28 May 1937, the Gesellschaft zur Vorbereitung des Deutschen Volkswagens was established by the Deutsche Arbeitsfront. It was later renamed "Volkswagenwerk" on 16 September 1938.VW Type 82E Erwin Komenda, the longstanding Auto Union chief designer, developed the car body of the prototype, which was recognizably the Beetle we know today. It was one of the first to be evolved with the aid of a wind tunnel; unlike the Chrysler Airflow, it would be a success. New factory started The building of the new factory started 26 May 1938 in the new town of KdF-Stadt, now called Wolfsburg, which had been purposely built for the factory workers. This factory only produced a handful of cars by the time war started in 1939. None were actually delivered to any holder of the completed saving stamp books, though one Type 1 Cabriolet was presented to Hitler on 20 April 1938 (his 49th birthday).At the times of 1st world War, Volkswagen War meant production changed to military vehicles, the Type 82 Kbelwagen ("Bucket car") utility vehicle (VW's most common wartime model), and the amphibious Schwimmwagen which were used to equip the German forces. By 1946 the factory was producing 1,000 cars a month, a remarkable feat considering it was still in disrepair. Due to roof and window damage, rain stopped production and steel to make the cars had to be bartered for new vehicles. Volkswagens were first exhibited and sold in the United States in 1949, but only sold two units in America that first year. On its entry to the U.S. market, the VW was briefly sold as a "Victory Wagon". Volkswagen of America was formed in April 1955 to standardize sales and service in the United States. Production of the Type 1 Volkswagen Beetle increased dramatically over the years, the total reaching one million in 1955. Sales soared due in part to the famous advertising campaigns by New York advertising agency Doyle, Dane Bernbach. Led by art director Helmut Krone, and copywriters Julian Koenig and Bob Levinson, Volkswagen ads became as popular as the car, using crisp layouts and witty copy to lure the younger, sophisticated consumers with whom the car became associated. Despite the fact it was almost universally known as the Beetle (or the Bug), it was never officially labeled as such by the manufacturer, instead referred to as the Type 1. The first reference to the name Beetle occurred in U.S. advertising in 1968, but not until 1998 and the Golfbased New Beetle would the name be adopted by Volkswagen. Volkswagen was in serious trouble by 1973.

Beetle sales had started to decline rapidly in European and North American markets. The company knew that Beetle production had to end one day, but the conundrum of replacing it had been a never-ending nightmare. VW's ownership of Audi / Auto Union proved to be the key to the problem - with its expertise in front-wheel drive, and water-cooled engines which Volkswagen so desperately needed to produce a credible Beetle successor. Audi influences paved the way for this new generation of Volkswagens, known as the Polo, Golf and Passat. Volkswagen Golf, sold as the rabbits in USA While Volkswagen's range of cars soon became similar to that of other large European automakers, the Golf has been the mainstay of the Volkswagen line up since its introduction, and the mechanical basis for several other cars of the company. There have been six generations of the Volkswagen Golf, the first of which was produced from the summer of 1974 until the end of 1983 (sold as the Rabbit in the United States and Canada and as the Caribe in Latin America). It would be produced in the United States as the Rabbit until the spring of 1984. The second-generation Golf hatchback/Jetta sedan ran from late 1983 to late 1991, and a North American version produced in Penns 1985 model year.In the 1980s, Volkswagen's sales in the United States and Canada fell dramatically, despite the success of models like the Golf elsewhere. The Japanese and the Americans were able to compete with sim States were 293,595 in 1980, but by 1984 they were down to 177,709. Volkswagen had entered the super and spacious three-door hatchback designed by Germany and most of the rest of Western Europe, being one of the first foreign small cars to prove popular in Britain. The second generation model, launched in 1981 and sold as a hatchback and "coupe" (with the hatchback similar to a conventional hatchback), was an even greater success for Volkswagen. It was facelifted in 1990 and was still selling well after 15 years, when it was replaced by the third generation Polo in 1994. The Volkswagen New Beetle concept, especially in North America. In 1994, Volkswagen unveiled the with a resemblance to the original Beetle but based on the Polo platform. Its genesis was secret and in opposition to VW management, who felt it was too backward Management could not deny the positive pu green-light to its development as the Golf rather than the Polo, because the Polo frame was too small for the car to pass crash test Pennsylvania went on sale at the start of the similar products at lower prices. Sales in the United super-mini market in 1976 with the Volkswagen Polo Bertone. It was a strong seller in West hatchback resembling a small estate car and the coupe being J-mays-designed Concept One, a "retro" public response to the concept car and gave the New Beetle. The production car would be based on the standards in the U.S. It has been quite popular in the North America and is now gaining in the EU. Volkswagen group the Volkswagen Bora (the sedan, still called Jetta in the USA), New Beetle, SEAT Toledo, SEAT Len, Audi A3, Audi TT and Skoda Octavia. However, it was beaten into third place for the 1998 European Car of the Year award by the winning Alfa Romeo 156 and runner-up Audi A6.

In the late 90s Volkswagen acquired the three luxury brands Lamborghini (through Audi), Bentley and Bugatti which were mainly due to Ferdinand Piech and added to the group portfolio. Volkswagen in 2005, despite challenges, still maintained North American sales of 224,195a dramatic increase from the low in 1993 when US sales totaled only 49,533 vehicles.VW plans to close out the decade with the release on several new vehicles worldwide and a barrage of advertising. The Fifth-Generation Golf Volkswagen is recognized as one of the leading small diesel engine manufacturers, and is partnering with Mercedes and other companies to market BlueTec clean diesel technology, calling it Blue-Motion. Volkswagen has offered a number of its vehicles with a TDI (Turbocharged Direct Injection engine), which lends class-leading fuel economy to several models. According to the United States Environmental Protection Agency, four of the ten most fuel efficient vehicles available for sale in the U.S. in 2004 were powered by Volkswagen diesel engines Electric and alternative fuel vehicles: Clean diesel Blue Motion Volkswagen Polo Volkswagen has been selling clean diesel-powered engines for the European market since 2003. VW developed Turbocharged Direct Injection (TDI) technology for diesel engines, and it offers a wide array of TDI powertrains. As modern diesel fuel economy is 30 percent higher than gasoline engines, a proportional reduction of greenhouse gases emissions is achieved with clean diesel technology. Volkswagen is also developing hybrid technology for dieselelectric. A VW Golf turbo-diesel hybrid concept car was exhibited in the 2008 Geneva Motor Show, which has a fuel economy of 70 mpg (3.3 liters per 100 km). Electric vehicles: Volkswagen and Sanyo have teamed up to develop a hybrid vehicle battery system. Volkswagen boss Martin Winterkorn has confirmed the company plans to build compact hybrid vehicles. There will definitely be compact hybrid models, such as Polo and Golf, and without any great delay, with gasoline and diesel engines. Flexible-fuel vehicles The 2003 VW Gol 1.6 Total Flex was the first full flexible capable of running on any blend of gasoline and ethanol (E100).

Volkswagen Group owns Audi :

Automobili Lamborghini

Bentley Motors Limited

 Bugatti Automobiles

koda Auto

Volkswagen Passenger Cars

Current Volkswagen models Eos Fox Golf Mk6 Golf Plus Golf Variant Jetta Mk5 Multivan New Beetle New Beetle Convertible Passat Mk6 Passat CC Phaeton Polo Mk4F Scirocco Sharan Touran Tiguan Touareg

Achievements of Volkswagen In 1980, Volkswagen competed in the Paris-Dakar Rally with the Audideveloped Iltis, placing 1st, 2nd, 4th and 9th overall. Volkswagen enlists Dakar Champion Jutta Kleinschmidt, the first female to win the Dakar in 2001, to help design and compete a Dakar Racer. In 2003, VW replaced the ADAC Volkswagen Lupo Cup with the newly released Polo, to become the ADAC Volkswagen Polo Cup. In 2004, VW enters the newly developed Race-Touareg T2, finishing 6th overall and 2nd in the Diesel class. In 2005, an updated Race-Touareg with slightly more power is entered, with driver Bruno Saby, finishing in 3rd overall and 1st in the Diesel class! In 2006, Volkswagen released the most powerful Race-Touareg yet: the RaceTouareg 2. Five vehicles enter, with driver Giniel de Villers finishing in 2nd place overall, and 1st in the Diesel class. In 2009, Volkswagen won the 2009 Dakar Rally held in Argentina. VW's Touareg race models finished 1st and 2nd , Winner of numerous international awards and accolades worldwide.

2.1.2Volkswagen in India With its headquarters in Pune, Maharashtra (India), the Volkswagen Group is represented by three brands in India: Volkswagen, Audi and Skoda. The Volkswagen Group is completing 10 years of its India journey which began with the entry of the Skoda brand in 2001, Audi brand and Volkswagen brand in 2007. Each brand has its own character and operates as an independent entity in the market. Volkswagen Group India is a part of Volkswagen AG, which is globally represented by 9 brands- Audi, Bentley, Bugatti, Lamborghini, Scania, Seat, Skoda, Volkswagen Commercial Vehicles (Volkswagen Nutzfahrzeuge) and Volkswagen Passenger Cars. The product range extends from lowconsumption small cars to luxury class vehicles and trucks. The Group operates 60 production plants around the world. In total more than 370,000 employees produce more than 26,600 vehicles or are involved in vehicle-related services each working day.

The highest volume brand of the Group is Volkswagen. Europes most successful car brand has made successful inroads into the Indian market. Volkswagen presents itself in a variety of segments as a premium manufacturer of high-volume models. As a first step, the Volkswagen brand launched the globally successful Passat in 2007. To expand its portfolio and cater to the mid segment, Volkswagen launched one of the brands bestselling models, the Jetta, in India in July 2008. Both the sedans are being assembled locally. The iconic New Beetle and the high-end SUV Touareg were introduced in December 2009. Also available is the high-end automobile Phaeton. From December 12, 2009 the new Pune plant has started rolling-out the hatchback version of the Volkswagen Polo. The made-in-India Polo was presented to the general public for the very first time at the Auto Expo 2010. The launch of this premium hatchback in March, brought access to one of the Indian passenger car segments with the highest-volume unit sales. Skoda entered the Indian market in 2001. Its plant in Aurangabad, which assembles a total of eight models including the Audi A6 and Audi A4 as well as the Volkswagen Passat and Volkswagen Jetta, has been instrumental in this achievement. For Indian customers, the name of Skoda stands for high-quality, robust yet affordable cars in the compact, lower mid-size ranges. In terms of models, the Skoda product offering in India ranges from the Fabia through the Octavia, the Laura to the Superb. Skoda lifted the veil off its international bestseller SUV Yeti for the first time in India at the Auto Expo 2010. Audi offers high-end models of interest to Indian customers. With the A8 and the Q7, the A6, the A4 and not forgetting the R8, the TT and the recently introduced Q5, Audi offers topquality, technically brilliant cars with an exclusive flair in the relevant luxury segments. Audis positioning as a leading manufacturer of such high-class vehicles, both assembled in India and imported through Audi India, will be systematically pursued in future. At Auto Expo 2010, Audi also unveiled the Audi Sportback Concept a five-door model offering a glimpse into Audi's future design vocabulary. Recognizing the importance of an extensive dealer network towards scripting a long-term success story, the brands of the Volkswagen Group are setting up dealerships spanning the entire country with Volkswagen, Skoda and Audi having in total around 120 dealerships across the country today. They are not only laying the foundation for a substantial increase in sales but also doing the groundwork for offering a firstclass all-round service, taking customer satisfaction to the highest level. Keeping this in mind they launched their first Group Logistics Service facility recently that would help make their dealer network become more efficient and smoothen the entire process of service. In the period between January 2009 and December 2009, the three brands of the Volkswagen Group have together sold around 19,000 vehicles in India, an increase of 1.4% over 2008 in a year marked by recession in the auto industry.

A crucial element of the Volkswagens strategy is to establish a long-term presence in India is the Groups production facility near Pune in the Chakan Industrial Park. The investment with a total sum of around INR 3,800 crore (580 million Euros) is the biggest investment of a German company realized in India so far. The plant, one of the most modern in the Volkswagen Group has a high level of vertical integration not least attributable to the high share of local suppliers. The recruitment is of some 2,500 employees at the end of 2010, primarily from the region itself. With the investment, the vertical integration of suppliers and the employment of people Volkswagen will thus demonstrate its commitment to the new site. Simultaneously Volkswagen contributes to a positive development of the economy of the region and of Maharashtra at the same time. The new plant was inaugurated by The Honourable Governor of Maharashtra, His Excellency Shri. S. C. Jamir, and Prof. Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen Aktiengesellschaft with responsibility for Group Production end of March 2009 and has begun building the Skoda Fabia compact car in May 2009. The launch of Polo, the hatchback car, is a visible testimony to Volkswagens vision of Mobility Made in India. By mid of 2010 the hatchback version will be followed by a sedan, also based on the new generation of the Polo but entirely different to the hatch.In recognition of its efforts in India, Volkswagen India won the coveted Automotive Company of the Year 2010 award at the Inaugural Golden Steering Wheel Awards India presented by the leading automotive magazine, Auto Bild India. 2.1.2.1Volkswagen Marketing India Volkswagen, who? That's the common question the bosses at the world's third largest car maker faced every time they made a marketing pitch in India .While its two sister brands -Audi and Skoda Auto -- had a high recall value, very few were aware of the VW brand name here. Not anymore. Look at the long queue for the German car maker's latest offering Polo launched in India just two months back. Consumers are willing to wait three to four for the hatchback priced at Rs 4,55,000 (exMumbai), although cheaper models of other manufacturers are being offered off-the-shelf. VW claims it has confirmed orders for about 6,500 units for Polo, while 500 have been delivered already. Neeraj Garg, director, Volkswagen Passenger Cars, Volkswagen Group Sales India, says VW indeed had a very low brand recall in India. To correct that, Garg says, "The Company opted for a continuous activity in the market because brand awareness always has a shelf life. We need to improve our brand awareness; we need to improve our reach. The fact that we have been successful in being different from others in the market is what is going to work for us". VW is taking the 'continuous activity' part quite seriously. Polo was the latest in a chain of six models ranging from

compact cars to big sedans to giant sports utility vehicles launched in the last two years. The company produces/assembles the Polo, Jetta and Passat in India while it imports the Phaeton, Touareg and Beetle. While Polo is manufactured in the company's 110,000 units per year capacity Chakan plant, the Passat and Jetta are assembled at Skoda's Aurangabad plant. And there's more to come. VW is gearing up to launch a sedan in the mass market segment later this year. The new car in the mid-level category will compete against models such as Maruti's SX4, Fiat's Linea, Hyundai's Verna and Ford's Fiesta. It is also working on a car that would replace Polo in the entry-level segment. VW hopes this will generate almost double the volumes compared to Polo, which will remain its flagship premium, yet volume generating car. All these initiatives are expected to increase the VW group's share in India from the current 1 per cent to 10 per cent in the next five years. What makes VW's game plan in India all the more interesting is its decision in December last year to pick a significant minority stake in Suzuki. Though the details are sketchy, there has been intense speculation in industry circles that the tie-up will lead to joint development activities in India -- a country where Maruti makes one in two cars sold. With so much at stake in India, VW figured out that it needed to make a huge noise about its challenger status in India. So when it launched Touareg and the New Beetle Sedan late last year, VW did the most expensive print advertising campaign in India with a multi-crore roadblock campaign across all editions of The Times of India. Roadblock refers to an advertiser paying a premium to black out all other advertisers. Mumbaikars also saw other initiatives such as a giant banner in the sky displaying the new Beetle and the VW logo -- a first such campaign for any automobile manufacturer. The company is now looking at more innovative ways for taking its brand forward in a tough market, which is controlled by only three manufacturers -- Maruti Suzuki, Hyundai Motors and Tata Motors with combined sales of well over 1.4 million units (as of March 31, 2010). Lutz Kothe, chief general manager, marketing and public relations, Volkswagen Group Sales India, says innovation is the way to go. "Our cars carry innovation and so our marketing campaign should also carry innovation. We had to do something which could make India talk about us. We had a significant double digit jump in sales after the campaign," Kothe says. But will good cars and innovative campaigns be enough for a late entrant like VW to take on the established leaders in areas of technology, distribution and reach? The jury is out on this. While many point to the uphill task that a late entrant like VW has in building its brand in India, VW executives are confident. "The loyalty factor for auto brands", says Kothe, "is quite low in India compared to other markets. This means customers are looking for newer things in their cars. We do not see a situation where we have to pull customers, they are and will readily come to us".

2.1.2.3 SWOT Analysis Volkswagen Table 2.5.1 Internal Strengths: Internal Weaknesses: 1. Strong R & D and Engineering 2. Heavy Reliance on One Product Volkswagen Matrix 3.Strong Sales and Service Network (Although Several Less Successful) 4.Efficient Production/Automation Models were Introduced) 5.Rising Costs in India External Opportunities: SO: WO: (Also Consider Risks) 1. Develop and Produce Multiproduct 2. Develop Compatible Models for 3.Growing Affluent Market Demands Line with Many Options, Different Price External Threats: ST: WT: 1. Exchange Rate: 2. Reduce Effect of Exchange Rate byA. Overcome Weaknesses by Making Devaluation of Dollar in Relation to Building a Plant in the U.S. (T1T2S1S3) Them Strengths (Move Toward OS Deutshe Mark (DM) B.Meet Competition with Advanced Strategy)

2.2.1 Toyota History Sakichi Toyoda, a prolific inventor, created the Toyoda Automatic Loom company based on his ground breaking designs, one of which was licensed to a British concern for 1 million yen; this money was used to help found Toyota Motor Company, which was supported by the Japanese government partly because of the military applications. The Japanese relied on foreign trucks in the war in Manchuria, but with the Depression, money was scarce. Domestic production would reduce costs, provide jobs, and make the country more independent. By 1936, just after the first successful Toyoda vehicles were produced, Japan demanded that any automakers selling in the country needed to have a majority of stockholders from Japan, along with all officers, and stopped nearly all imports. Toyoda's car operations were placed in the hands of Kiichiro Toyoda, Sakichi Toyodas son; they started experimenting with two cylinder engines at first, but ended up copying the Chevrolet 65-horsepower straight-six, using the same chassis and gearbox with styling copied from the Chrysler Airflow. The first engine was produced in 1934 (the Type A), the first car and truck in 1935 (the Model A1 and G1, respectively), and its second car design in 1936 (the model AA). In 1937, Toyota Motor Company was split off. From 1936 to 1943, only 1,7,57 cars were made 1,404 sedans and 353 phaetons (model AB), but Toyoda found more success building trucks and busses. (Some of these early details are The Toyota KB, a 4x4 produced starting in 1941, was a two-ton truck similar to the prewar KC; it had a loading capacity of 1.5 tons and could run up to about 43 mph. The GB was based on the peacetime, 1.5 ton G1 truck, which in turn was based on the Model A1 cars. The first Toyoda truck was roughly a one-ton to one and a half-ton design, conventional in nature, using (after 1936) an overhead valve six-cylinder engine that appears to have been a clone of the Chevrolet engine of the time: indeed, a large number of parts were interchangeable, and Toyoda trucks captured in the war were serviced by the Allies with Chevrolet components. There was also a forty-horsepower four cylinder model, very similar to the six cylinder in design but rather underpowered for a truck with a full ton of capacity.

An era of rapid expansion: post-war Toyota history

In December 1945, Toyota was given permission by the United States military to start-up up peacetime production. Toyota Motor Corporation had learned from the American War Departments industrial training program, which worked on process improvement and employee development; the program, abandoned in 1945 by the United States, lived on in Japan as Taiichi Ohno built kaizen and lean manufacturing around it. After World War II, Toyota was kept busy making trucks, but by 1947 it began making the Model SA, called the Toyopet, a name to stay with Toyota for decades, albeit attached to different cars. The Toyopet was not powerful and had a low top speed 55 mph from a 27 horsepower engine but it was designed to be cheap, and to handle the rough roads of post-war Japan. In the five years the SA Toyopet was made, 215 were made. The SD may have been more successful; this taxi version saw 194 copies in just two years. The SF Toyopet was the first truly popular Toyota car, with a modified engine (still putting out 27 horsepower) and a taxi version. An RH model with a 48 horsepower engine came out shortly after By 1955, Toyota was making 8,400 cars per year; by 1965, 600,000 cars per year. In addition to all these cars, Toyota started producing a civilian truck named the Land Cruiser. Styled like Jeeps, the original Land Cruisers were, according to Schreier, based heavily on the legendary Dodge half-ton weapons carrier as well as the Bantam (predecessor of the Jeep) They used a bigger engine than the Jeep (their Chevrolet-clone six) and a size and configuration more like the Dodge weapons carrier, whose capacity it shares (one half ton).

Starting in 1955, Toyota produced its first luxury car, the Crown, powered by a four cylinder, 1.5-liter engine with a three-speed column shift, followed by the 1-liter Corona; only 700 cars per month were made in 1955, but this rose to 11,750 in 1958, and 50,000 per month in 1964. The start of Toyota's international sales Toyota set up a headquarters in Hollywood in 1957; the first Toyota car registered in the United States was a 1958 Toyopet, sold in 1958; the California license plate was installed by Toyota Motor Sales (USA) president Shotaro Kamiya himself, in front of the California DMV. Two vehicles were imported, the Land Cruiser and Toyopet. Neither sold well; the Toyopet was withdrawn while Toyota designed a car specifically modified for the American market a strategy which later gave us the Avalon and Camry. Alan wrote: I am the grandson of the first Toyota dealer in the US. It all started in Larkspur California (San Francisco Bay area). Only two vehicles were available, the Toyopet sedan and the Land. San Francisco was where the first distribution centre was set up. The highlight of my grandfather's pioneer Toyota dealership was a personal visit to his home and showroom from Mr Toyoda, the president of the company. His visit was to thank him for his being the first dealer in the US. He presented my grandfather with two Seiko watches which I still possess. I still have all the original ads, dealer licence plate frames, and many photos of the dealership. The dealership came to a close in 1968 with the passing of my grandfather. In addition to being the first dealer he also possessed the largest classic car collection west of the Mississippi. He had over 100 classics including Hup mobiles, Packards, Reos, Dodges, Franklins, Marlots, Plymouths, Grahams, etc. In 1959, the company opened its first plant outside Japan - in Brazil. From that point on, Toyota maintained a philosophy of localizing both production and design of its products (that is, adapting vehicles to the places they will be used, as well as building them there). This builds long-term relationships with local suppliers and local labour. Part of this also means that Toyota does not merely build vehicles overseas, but also designs them there, with a network of both design and R&D facilities in North America and Europe. The first Americanized Toyota the Tiara, otherwise known as the Toyota Corona PT20 came out in 1964. The six-passenger car had a 90 grosshorsepower engine (probably about 60-70 bhp net); it could reach 90 miles per hour, and was comfortable inside.

One year later, the Corona was added at under $2,000; it offered an automatic and factory air as options, very unusual in imported small cars at the time (as was the engine's horsepower rating). Sales hit 6,400 in 1965, and reached 71,000 by 1968, nearly doubling each year until by 1971 Toyota was selling over 300,000 vehicles per year, a far cry from 1964's 2,000. Toyota itself was very small in the late 1950s by world standards, and in 1963 was the 93rd largest non- American corporation in the world but in 1966 was already 47th (in that time it went from being the 9th largest Japanese corporation to the 6th largest, and for that matter the tenth largest auto manufacturer in the world it would steadily move up to the #3 position and will soon challenge Ford for #2). In 1967, the Corona sold for a reasonable $1,760 - a little below the smallest Big Three sedans with a good balance of performance, gas mileage, and comfort. By 1967, Toyota had become well established in the United States, albeit as a niche player. The Corona four-door sedan was seen as competing mainly against the Volkswagen Beetle, though this was hardly fair to the modern Corona, with its relatively large interior space and relatively comfortable ride. The Corona was known from its early days for quality as well as a low price, though rust was a serious problem until the late 1970s, causing more than one Corona to simply rust in half before it became old enough to have mechanical problems. Toyota introduced another new car to the US in 1967: the Crown, available as a wagon or a sedan. The semi-luxury car boasted a brand new 137 cubic inch in-line six-cylinder engine delivering 115 horsepower (gross) at 5,200 rpm; that is a bit more than the biggest Plymouth slant six but less than the smallest American V8. The engine was small but had seven main bearings, tuned induction, semi-hemispherical heads, and was built with lightweight alloys. The Crown came with a four-speed manual (at the time three speeds were normal) or a twospeed automatic (though most Americans were used to three speed automatics). One unusual feature was standard three-point seat belts, not to mention reclining bucket seats. The Crown was never a big seller but it certainly did better than many foreign cars in the segment; the sedan sold for $2,635, the wagon for $2,785. (Torque was 127 lb-ft at 3,600 rpm, bore and stroke 2.95 x 3.35, 8.8:1 compression, single two-barrel carburettor. The Plymouth slant six started at 170 cubic inches by comparison, and delivered 115 hp with 155 lb-ft of torque; the 225 cubic inch slant six put out 145 hp, 215 lbft.) The Crown was noted for its road manners, smooth ride, and quiet interior. Soon, Toyota brought to the US the famous but rare 2000GT, which resembled a British sports car with a massive hood and nearly no cabin trunk. The car had set 16 world speed and endurance records by 1966, with a dual overhead cam

six-cylinder engine (150 hp, 121 cid) and five-speed manual transmission. A specially made convertible version was featured in You only live twice. The 2000 GT had surprisingly slow 0-60 times of over 10 seconds, but cornering apparently made up for it, and the quartermile went by in a decent enough 15.9 seconds (about the same as a 1995 Neon). Not quite a muscle car, but it probably handled better than the best Detroit had to offer. Toyota also had a variety of trucks for sale in the late 1960s, as detailed in our various truck pages The Corolla, to be Americas favourite small car, was first imported in 1969, two years after its first Japanese production, followed by small pickups that earned a strong reputation for reliability and durability. It was the first Toyota built in the United States, starting in 1985, at the New United Motor Manufacturing (NUMMI) facility in Fremont, California a joint venture with General Motors. Lexus luxury cars join the Toyota stable While Toyota built good near-luxury cars, sales of the Cressida and Crown were not especially strong, especially given the brisk trade in Corollas and Camrys. In the 1980s, when Toyota seriously looked at its lagging luxury sales, Lincoln and Cadillac had both fallen from grace; Lincoln was relegated to the limousine and car-service trade, and Cadillac had destroyed its reputation with the 4-6-8 engine and the barely-disguised Cavalier clone, the Cimarron. Chrysler had started to plunge downmarket in the 1970s, and Lee Iaccoca was already erasing any prestige the brand had by making thinly disguised Chrysler versions of entry-level Plymouths. Mercedes' quality was fairly low, Audi was suffering from the "unintended acceleration" debacle, and, in short, the competition was in tatters. It was time for Toyota to create both a luxury car and a luxury brand to sell it with the luxury brand mainly because Americans had become accustomed to brands with relatively narrow ranges (GM had no less than five brands to reach different markets; Ford and Chrysler both had three.) In the early 1980s, the F1 Project and assigned to an engineering team of 1,400 engineers, 2,300 technicians, 60 designers, and 220 support people under the leadership of Shoiji Jimbo and Ichiro Suzuki. Market research for the Lexus name in the United States started in 1985, with Shoiji Jimbo attending focus groups and interviewing dealers. The first running prototype appeared in July 1985, with an astounding 450 running prototypes built as Lexus spared no expense to beat Mercedes and other luxury marques - which it did, decisively. In 1986, tests were conducted on public roads in the US and Germany. Finally, in 1987, the final design was approved after eight presentations to management. The LS400, the first Lexus, finally appeared in 1989. It was an immediate hit thanks to its high levels of luxury and reliability, at a lower cost than Mercedes' far less reliable and luxurious models; the low ebb of the competition also

helped Lexus to make a splash. Lexus would remain the leader in passenger car comfort and reliability through to the 21st century, though sales of other models - particularly the IS - lagged. Modern times Toyota instituted a three year, 36,000 mile bumper to bumper warranty starting in 1988, the same year the first Toyota-owned American factory started producing Camrys in Kentucky, to join the Corollas built in California. In 1999, Toyota Motor Corporation started listing its shares under the symbol TM on the New York Stock Exchange. Scion was begin in the early 2000s, starting with three cars based off the platform of the old Echo (but brought up to date and refined), with two engines - a small one for the xA and xB, and a 2.4 with an added 50 or so horsepower for the sporty tC. Scion sales were immediately strong in the early-introduction states, leading to a nationwide (United States) launch that, with very little advertising, was still remarkably successful. Like most cars aimed at younger people, the Scions did not attract the younger buyers Toyota was hoping for, at least not in as large numbers as they wanted; but it still brought in a more youthful mix than Toyota or Lexus. Analysts suggested that Scion was brought in mainly because Toyota buyers were growing older, on average, with new Toyotas meant to attract younger audiences (MR2, Celica, Matrix) largely failing to achieve the goal of transforming Toyota's image as a vendor of dull but reliable and comfortable Camrys and Corollas. Today, Toyota is one of the world's largest manufacturers of automobiles in both unit sales and in net sales. In the United States, Toyota has roughly double the sales of Honda and is battling GM and Ford for #1. It produces over 5.5 million vehicles per year, equivalent to one every six seconds. Toyota has tried, partly through sponsorship of numerous events, participation in many racing venues (including NASCAR), public relations around non union and Southern) American assembly plants, and other means, to position itself as just another American company, though no Americans appear to participate in serious decision making at the Japan headquarters. While German automakers tend to use symbols and numbers, and Americans tend to throw away names frequently, Toyota sticks by a name as long as a car is successful, and doesn't toss names onto cars that don't fit them. The Land Cruiser started in 1950; the Corolla in 1966; the Celica in 1970; the Camry in 1983; the 4Runner in 1984. Notable "dropped" names include the Corona (with its tendency to die from severe rust), Cressida (dropped for the introduction of Lexus in the US), unpopular pickups (T100, HiLux, Compact Pickup), and minivans (Van, Previa).

Mergers and acquisitions In 1966, Toyota acquired Hino, which built trucks; commercial trucks from Toyota still carry the Hino name. Hino is currently gaining in popularity in Europe, and is the sales leader for medium and heavy-duty diesel trucks in Japan. After building its first truck as far back as 1913 (when it was part of Tokyo Gas), what had been the truck division of Tokyo Gas (and which was now called Diesel Motor Industry Company) split off its commercial truck and diesel engine division into Hino; the remaining part of the company would become Isuzu. Hino did build standard cars for a time, using designs licensed from Renault, but stopped in 1967 to concentrate on heavy trucks (and avoid competing with the rest of Toyota). Hino currently makes a wide variety of heavy trucks and buses, and was involved in designing and/or producing the Tacoma, T100, 4Runner (HiLux Surf), Sequoia, and Tundra. In 1967, Toyota took control of Daihatsu (founded in 1907 as Hatsudoki Seizo Co., Ltd), but Toyota did not actually buy the whole company until 1999. Daihatsu sold cars in the US from 1988 to 1992, with their Charade and Rocky making almost no impact; when Toyota bought into the company, it made a three-wheeled car and military four-wheel-drive vehicles. Daihatsu sold vehicles based on Toyotas, along, possibly, with its own designs; their small cars and four wheel drive vehicles have a following. Daihatsu supplies vehicles and major components to other automakers, and appears to be popular in South America. Denso was not acquired, but was simply spun off of Toyota after World War II; it was once Toyotas electrical component division. It currently is a roughly $26 billion business with over 100,000 employees and over 170 subsidiaries, selling parts to many major automakers including American companies.

Toyota Motor Corporation today In April 2002, Toyota adopted the 2010 Global Vision, a vision for meeting mobility needs in a way that respects the environment and all people. Four key themes based on trends seen as developing from 2020 to around 2030 are: Toward a recycle-oriented society Toward the age of IT and ubiquitous networks Toward a mature society (the decline of nationalism and war) Toward motorization on a global scale (societies with little private transport gaining more) Who runs Toyota now? In 2009, Akio Toyoda took control of Toyota as President. Son of Shoichiro Toyoda, Akio Toyoda helped to get Toyota out of a Chinese joint venture gone bad and into a deal with China FAW Group; started a Web-based retailing venture in Japan; and is currently executive vice president in charge of purchasing, quality, product management, IT, and transport. Akio, born in 1957, had talked about taking the company beyond its Japanese roots, and emphasized styling and performance in the companys vehicles, before the 2008-09 downturn. Since then, he has emphasized returning to Toyotas roots and giving up its drive for market share. In 2007: Hiroshi Okuda, Chairman. Born in 1933 - about the same time as Toyota itself - Hiroshi Okuda has been a member of the Board of Toyota Motor Corporation since 1982, and has been the Chairman of the Board since 1999. Mr. Okuda was the president of Toyota from 1995 to 1999, and is also a director of KDDI Corporation. Project Report Hiroshi Okuda joined Toyota in 1955, at about the time of the company's entrance to the United States market. He mainly worked in Toyota's international operations, and oversaw preparation of manufacturing plants in North America. He graduated from Hitostubashi University with a degree in business, and has a black belt in judo.

 Fujio Cho, President. Born in 1937 - not long after Toyota itself - Fujio Cho helped to speed Toyota's decision-making but cutting the number of board members in half, appointing three non-Japanese managing officers, and generally streamlining the management structure. He graduated from the University of Tokyo in 1960 and became a production specialist, mentored by none other than Taiichi Ohno. He opened the first Toyota-owned factory in America in 1988. He is a third dan in kendo. It is worth noting the martial arts experience of the two top Toyota leaders. Martial arts require discipline, patience, and study; American leaders tend to be lawyers and accountants with experience in obfuscation and pennywatching. Some past leaders: Eiji Toyoda (president, 1967-1982), who kept Toyota on a low profile even as the company rapidly expanded and dramatically increased its quality and its rustproofing capabilities Shoichiro Toyoda (president, 1982-1992), who spread Toyota's manufacturing plants through the world and brought Toyotas technology to the forefront, surpassing Honda and just about every other automaker, while increasing reliability even further History of Toyota City Toyota City sprung from Koromo Town, a thriving silkworm center in the late 1800s and early 1900s. As the demand for raw silk fell, the city declined, until in 1934 it invited the newly formed Toyota to center there. The name was changed from Koromo to Toyota in 1959. The population is now 25 times its 1930 level, at 350,000. Toyota and the environment Toyota is fairly well known for having the best-designed hybrid-electric car, the Prius, which former Chrysler engineer Evan Boberg claimed in 2004 was the only car that actually saved fuel because of its hybrid design rather than coincidental features (such as lighter weight efficient tires, and such). But Toyota's commitment goes much further. Their Australian unit's Earth Charter notes four principles:

 Contribution towards a prosperous 21st century: Aim for growth that is in harmony with the environment, and to challenge achievement of zero emissions throughout all areas of business activities and set as a challenge the achievement of zero emissions throughout all areas of business activity. Pursuit of environmental technologies: Pursue all possible environmental technologies, developing and establishing new technologies to enable the environment and economy to coexist harmoniously. Voluntary actions: Develop a voluntary improvement plan, not only based on thorough preventative measures and compliance laws, but one that addresses environmental issues on the global, national and regional scales, and promotes continuous implementation. Working in co-operation with society: Build close and cooperative relationships with a spectrum of individuals and organizations involved in environmental preservation including governments, local municipalities as well as with related companies and industries. No environmental statement is meaningful unless it is actually followed - which is one reason why many are so angry at Ford, which made many promises, yet continued to push gas mileage downwards and fought even slight changes in fuel economy requirements. In Australia, Toyota has a balanced scorecard which notes specific outcomes and measures of environmental action, and uses a plan-do-check-act cycle to carry them out. Toyota India was engendered in October 1997. The initial capital investment was of Rs seven billion. The Toyota Motor Company of Japan has 89% of equity shares and the Kirloskar Group of India has 11% equity shares in their JV called "Toyota Kirloskar Motor (TKM)." Toyota Motor Company A Japanese Multinational Company, Toyota Motor Company second in the list of largest manufacturer of the world. A manufacturing behemoth, Toyota can potentially challenge to challenge the American counterparts-Honda Motor and Nissan.

2.2.1Toyota Kirloskar Motor The Toyota Kirloskar Motor (TKM) is of the opinion that they would contribute to the growth of the Indian economy by contributing in the automobile sector, technological up gradation and human resource management. They want to manufacture and sale automobiles in India and make India an export hub as well. They also want to maintain their global standards here with the help of as many as Toyota centres in India. The most important policy of TKM has been the implementation of the Philosophy of "Putting Customer First". Another very important policy of TKM is to motivate their employees to achieve perfection. They believe that employees are the backbone of the organization and to achieve perfection, the employees must be motivated to work and improve continuously. That is why they maintain corporate culture and ensures maximum stability for their employees. The TKM is also into social service, as they understand their responsibility towards society very well. They are also continuously trying to ensure the betterment of their products and services. As they believe that, the path to their success is by providing better services and goods. One of their main aims is to help the Indian economy develop by creating employment opportunities. 2.2.2Toyota Cars in India Toyota Etios Toyota Corolla Altis Toyota Innova Toyota Fortuner Toyota Land Cruiser Toyota Camry Toyota Liva

Marketing and Strategy Toyota has become a global company, with 51 manufacturing companies in 26 countries. Their vehicles are sold in more than 170 countries. Toyotas primary markets are Japan, North America, Europe and Asia. From April 2009 to March 2010 vehicle sale result in Japan is 2,163,000 units a 5,074,000 units. Vehicles sold by Daihatsu and Hino are included in the vehicle unit sales figures set forth below. Toyota has high percentage of market share in their primary markets. In Japan, which is the center of its global operations, manufacturer for more than 40 years. It held a domestic market share on a retail basis of 45.8% in fiscal 2007, 45.6% in fiscal 2008 and 46.0% in fiscal 2009. The Toyotas market share is showed in the figures below: Toyota has maintained its position as the largest automobile. Company Financial: The following table shows the company spends its time and money from 2006 to 2010: The total number of Toyota employees was 320,590 at March 31, 2010,320,808 at March 31, 2009 and 316,121 at March 31, 2008. In 2009, with the bad economic climate Toyota has loss 436,937 million yen. However, in 2010 it has made profit by 209,456 million yen. Vision and Mission Mission of Toyota is to provide safe & sound journey. Toyota is developing various new technologies from the perspective of energy saving and diversifying energy sources. Environment has been first and most important issue in priorities of Toyota and working toward creating a prosperous society and clean world. Vision is to be the most respected and successful enterprise, delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology.\

Toyotas Strategy Toyotas corporate goal is to achieve continuous growth and enhance its corporate value by contributing to society and gaining customers enduring trust through global operations and through products reflecting Toyotas advanced technology that target the local demand in each market. In order to achieve this corporate goal, Toyota strives to further enhance its technology, supply capability and marketing, supported by improvements in quality control, strengthening of cost-competitiveness and personnel development. In particular, Toyota has been dedicated to addressing environmental issues, and as environmental awareness continues to grow in the market, Toyota strives to further improve technology, including its unique hybrid technology, in order to develop environmentally friendly products. Toyota current positioning strategy: Toyota does business in more than 170 countries globally; thats more countries than McDonalds with restaurants in over 100 countries. (2009) (Toyota facts) Toyota ranked 3rd on the Worlds Most Admired list, behind only Apple and Berkshire Hathaway. (Feb. 27, 2009) Toyota Motor Sales became the best-selling retail automaker in the U.S. (2009) (Toyota facts) Toyota has more hybrids on the road than all other automakers. (TMS news release on New Product Leadership, Sept. 21, 2009. Based on R.L. Polk & Co. U.S. Vehicles in Operation as of Jan. 1, 2009.) (Toyota facts) Toyota was first in five of the 10 vehicle categories in Consumer Reports annual rankings, the most of any automaker: Toyota Highlander, Prius, RAV4 and Sienna, and Lexus LS 460. (April 2009) (Toyota facts) Toyota has the highest owner loyalty of any automaker. Toyota ranked #1 by having the greatest percentage of households return to purchase or lease another Toyota vehicle. (R.L. Polk & Co., Jan. 13, 2010)

Toyota SWOT Analysis Strengths: Strong Financial. The automotive operations segment is Toyotas largest operating segment by net revenues. Net revenue for the automotive segment in 2009 is 5,612.6 billion. Having high commitment and truly believe in their company. Toyota is known to be one of many companies that are committed to building a strong relationship with its employees. Everything is based on trust and commitment. The company believes that it grows as the employees grow. One way to make this happen is by giving education as a motivation to its employees. Toyota is also known for its TPS (Toyota Production System) program. This program keeps the company to stand strong when it comes to efficiency compare to its competitors. After all these years, Toyota has done a really good job in eliminating waste and time in making its products. The company has been doing well when it comes to building strong relationships with its customers. The company is known to satisfy its customers. Knowing the kind of demand that comes from the customers is another strength, which the company holds. Weaknesses: Toyota is a wholly owned overseas firm. Its CEO lives in Japan, whos not yet completely knowledgeable about global business. He might be great when it comes to doing business in his own country, but hes not as handy when it comes to ethics, marketing, management, etc abroad. Loss control quality of product. It leads to the large numbers of recall vehicles. The large numbers of product are made in Japan which place has high cost. It is not successful in the European market. It cant seem to provide whats demanded by the European market which seeks smaller cars and high performance vehicles. Neither of which are Toyotas forte. Greatly affected by economic and political conditions of markets in the US and in Japan. Toyota markets most of its products in those markets. Perhaps that is why the company is beginning to shift its attentions to the emerging Chinese market. Exchange rates. Movements in exchange rates could see the already narrow margins in the car market being reduced. By having this information, the company is then able to create cars that can satisfy its customers.

The company holds three brands of cars, all manufactures by Toyota. These are Toyota itself, Scion and Lexus. All these brands are targeted for different social classes, which makes it possible for the company to offer great vehicles for all people. The company holds environment friendly products: Hybrid, electric vehicles. Opportunities: Lexus and Toyota now have a reputation for manufacturing environmentally friendly vehicles. Lexus has RX 400h hybrid, and Toyota has it Prius. Both are based upon advance technologies developed by the organization. Rocketing oil prices have seen sales of the new hybrid vehicles increase. Toyota has also sold on its technology to other motor manufacturers, for example Ford has bought into the technology for its new Explorer SUV Hybrid. Such moves can only firm up Toyota's interest and investment in hybrid R&D. The development of new innovative products as well as increasing technologies which can be used to create different models to suit the changes in consumer tastes. The company seems to be doing well in Threats: Product recalls are always a problem for vehicle manufacturers. In 2009, Toyota issued a recall affecting 3.8 million Toyota and Lexus vehicles. The developing of competitors: Honda, Nissan, GM, Hyundai. Moreover, soon Toyota will also have to compete with China, which has announced that it will begin exporting vehicles in 2010. Surely, China is known to be able to produce cheaper products. Hence, this will come to a threat in price competition, which Toyota has to face in the near future. Increasing raw material prices leading to decrease profit margins and create low competition. Enhanced environmental and energy adjusting and fulfilling customers demand. Doing everything to take all the opportunities to increase sales and building better relationship with the customers through its products. Toyota has been making innovative and high tech cars for so many years, being the first from its competitors to see this kind of market demand. The development of emerging markets such as China, India, Brazil and developing countries as Indonesia, Vietnam. sensitivity. Changes in the laws, regulations and government policies in the markets in which Toyota operates that affect its automotive operations, particularly laws, regulations and policies relating to vehicle safety including recalls, trade, environmental protection, vehicle emissions and vehicle fuel economy, as well as changes in laws, regulations and government policies that affect Toyotas other operations, including the outcome of current and future litigation and other legal proceedings.

Toyotas Activities in past year and comments from management: Without focusing on environmental, energy and safety measures there can be no future for motor vehicles. This is a comment of Toyotas President Katsuaki Watanabe. Toyotas automobile ownership exceeds 1 billion vehicles in 2010 and will likely reach 1.5 billion vehicles in 2020. Toyota is very much aware of the tremendous impact this will have on the environment and human safety. For this purpose, Toyota is concentrating its efforts on improving fuel economy by making cars smaller and lighter, while enhancing power efficiency. Toyota announced a business partnership with Tesla Motors for developing electric vehicle. Chief Executive Officer Akio Toyoda said Toyota would try to be the world leader in building environmentally conscious vehicles and touted the company's cooperation with Tesla Motors Inc. Toyota is building a RAV4 electric car using Tesla battery technology. (Mike Ramsey, 2010) Toyota has been developing too many safety systems such as: ABS (anti-lock brake system) VSC (Vehicle Stability Control) and VDIM (Vehicle Dynamics Integrated Management) systems Toyotas Pre-crash Safety System. Toyota also offers a training program throughout the year at the TOYOTA Safety Education Center mobilitas completed in 2005 inside Fuji Speedway in Shizuoka Prefecture. Toyota is expanding its sustainable plant activities worldwide, beginning with manufacturing facilities in the United States, the United Kingdom, France and Thailand. In August 2008, The Ban Pho Plant of Toyota Motor Thailand Co., Ltd. conducted one of the largest-ever tree-planting events in Thailand with about 14,000 people planting 100,000 trees. Toyotas New Objectives Improvement: With fuel price increasing, people are not buying large cars in the numbers they used to. Small cars consume much less fuel, and are better for the environment. For this reason, Toyota should develop new objectives for assisting to continue to do business in this new environment. The new objectives can be: Long term objectives: 1) Sale Hybrid cars at all countries which Toyota doing business in 2020. 2) Promote the development of Toyotas eco-cars with fuel effective and safety.

Short term objectives: 1) Increase Hybrid cars sales 100% in 2011 by 2010. 2) Increase 2 Hybrid production factories and 2 R&D centers in oversea. The new objectives are consistent with the forecasted needs of the business by its competitive advantage and positioning. Competitive advantage: TMC has been successful in launching and supplying the Hybrid car market. In December 1997, TMC launched the Toyota "Prius"the world's first massproduced hybrid vehicle. The use of the Toyota hybrid system was subsequently expanded to such vehicles as minivans, SUVs and rear-wheel-drive sedans. In 2009, TMC broadened its range of hybrid vehicles further with the launch of the third-generation Prius, as well as two other dedicated hybrid vehicles, the Lexus "HS250h" and the Toyota "Sai". Currently, nine TMC-produced hybrid passenger vehicle models and three hybrid commercial vehicle models are sold in Japan. (Toyota, 2010) Outside Japan, TMC has eight hybrid passenger vehicle models are sold in approximately 80 countries and regions, with cumulative overseas sales having topped 1.68 million units. TMC is committed to augmenting this lineup even further and increasing the number of countries and regions in which it sells hybrid vehicles. (Toyota, 2010) With new type of Hybrid vehicles, TMC has survey with 267 new Prius owners. Its result is: Completely satisfied buyers on exterior styling: 52%. Completely satisfied buyers on interior styling: 62%, roominess 73%. Satisfaction is very high on environmental friendliness with 91% of buyers completely satisfied. Completely satisfied buyers on fuel economy with 64%, quietness when driving with 67%, body workmanship & finish with 71%, no squeaks and rattles with 67%. (Toyota-euro)

Price: TMC has clear understanding of the situation of Euro economic climate and it key target market (young people and other environment, economic effective and high technology caring buyers), and has decided pricing strategy and advertising campaign to push the customer buy this product with best address their needs and the positioning of Toyota Auris Hybrid The vehicle has a starting price of EUR 22,150 (UK) and its running cost is low. Promotion: Website and showroom are two good address which proving full information such as product feature, benefit, safety feature and getting customers orders or feedbacks. Website is the cheapest tool and working 24 hours in 7 days per week. As the pull strategy, the interest in and demand for product even before it reaches the stores are made possible because social medial. Using a one-page of spots magazine ad and 30- second television ad to provides much importance information at 6 months before sales. Using the sales personnel and test-drive as effective tools to persuade the customers and provide more information such as service after sales, sales assistance and to encourage orders. As the push strategy, TMC spent 5% amount of its marketing resource on maintaining relationship with its distributors and provide the action plans to distributors such as discount 20% service fees, expand warranty time more 6 months and reward the excellent distributor of the year. The KPI of promotion is proving a new eco-product to Euro market, increasing sales to 400,000 units in next year to assist the TMC achieves the sales objective. As the ethical and legal promotion, this campaign assists the number of green product users will increase, the reaffirming peoples acceptance of hybrid technology worldwide Weaknesses of product: High price. New product so difficult to change customers behavior. TMC should promote advertising campaign to show the benefits of product and increase the customers awareness about eco-Toyota Auris Hybrid.

Chapter-3 Methodology To understand the Indian consumer, a proper research methods need to be applied to get the correct results. A research process consists of stages or steps that guide the project from its conception through the final analysis, recommendations and ultimate actions. The research process provides a systematic, planned approach to the research project and ensures that all aspects of the research project are consistent with each other. Research studies evolve through a series of steps, each representing the answer to a key question. This chapter aims to understand the research methodology establishing a framework of evaluation and revaluation of primary and secondary research. The techniques and concepts used during primary research in order to arrive at findings; which are also dealt with and lead to a logical deduction towards the analysis and results. From the prescribed methodology followed, following would be obtained. 3.1 Research Design I propose to first conduct a intensive secondary research to understand the full impact and implication of the industry, to review and critique the industry norms and reports, on which certain issues shall be selected, which I feel remain unanswered or liable to change, this shall be further taken up in the next stage of exploratory research. This stage shall help me to restrict and select only the important question and issue, which inhabit growth and segmentation in the industry. The various tasks that I have undertaken in the research design process are : Defining the information need Design the exploratory, descriptive and causal research.

3.2 Research Process The research process has four distinct yet interrelated steps for research analysis It has a logical and hierarchical ordering: Determination of information research problem. Development of appropriate research design. Execution of research design. Communication of results. Each step is viewed as a separate process that includes a combination of task, step and specific procedure. The steps undertake are logical, objective, systematic, reliable, valid, impersonal and ongoing. 3.3 Exploratory Research The method I used for exploratory research was Primary Data Secondary data 3.3.1 Primary Data New data gathered to help solve the problem at hand. As compared to secondary data which is previously gathered data. An example is information gathered by a questionnaire. Qualitative or quantitative data that are newly collected in the course of research. In the report the primary data source are questionnaires filled by 100 respondents. 3.3.2 Secondary Data Information that already exists somewhere, having been collected for another purpose. Sources include census reports, trade publications, and subscription services. In my report i had many sources for secondary data. The data available on the websites of both Volkswagen and Toyota were used as the secondary data , as well as brochures of the company very useful for the research. I also used information published in Times of India and The Economic Times. Before writing the report a thorough secondary data research was also done.

3.3.3 Data Collection Data collection took place with the help of filling of questionnaires. The questionnaire method has come to the more widely used and economical means of data collection. The common factor in all varieties of the questionnaire method is this reliance on verbal responses to questions, written or oral. I found it essential to make sure the questionnaire was easy to read and understand to all spectrums of people in the sample. It was also important as researcher to respect the samples time and energy hence the questionnaire was designed in such a way, that its administration would not exceed 4-5 minutes. These questionnaires were personally administered. The first hand information was collected by making the people fill the questionnaires. The primary data collected by directly interacting with the people. 3.2 Population and Sampling It is a description of the characteristics of that group of people from whom a course is intended. It attempts to describe them as they are rather than as the describer would like them to be. Also called the audience the audience to be served by our project includes key demographic information (i.e.; age, sex etc.).The specific population intended as beneficiaries of a program. The target population is the population I want to make conclude an ideal situation; the sampling frames to matches the target population. A specific resource set that is the object or target of investigation. The audience defined in age, background, ability, and preferences, among other things, for which a given course of instruction is intended. I have selected the sample trough Simple random Sampling.

3.2.1 Sample Size This involves figuring out how many samples one need. The numbers of samples you need are affected by the following factors: Project goals How you plan to analyze your data How variable your data are or are likely to be How precisely you want to measure change or trend The number of years over which you want to detect a trend How many times a year you will sample each point . I have targeted 100 people for the purpose of the research. The target population influences the sample size. The target population represents Pune/Dellhi region. The people were from different professional backgrounds. 3.3 Time Frame The total research took 2 months to complete. 3.4 Validity and Reliability 3.4.1 Questionnaire error I have ensured that the questionnaire design was careful so that only required data is concisely revealed and there is no redundant data generated. The questions are worded carefully so that the question are not loaded and does not lead to a bias in the respondents mind. 3.5 Assumptions: There arent any specific assumptions in the report.

Chapter 4 The following results are according to the questionnaire Q1) What type of car do you prefer? Small Car (Hatchback) (45% ) Mid Segment MUV (multi utility Vehicle) (15% ) SUV (Sports Utility Vehicle) (20% ) Luxury (20% )

20% 20% 15%

45%

Small Car (Hatchback)

MUV (multi utility Vehicle)

SUV (Sports Utility Vehicle) Luxury

INTERPERTAION- Most of people prefer hatchback because it is not costly as another segment & also gave great mileage.

Q2) Which car makers you will prefer? .Volkswagen (65%) Toyota (35%)

35% 65% Volkswagen Toyota

INTERPERTAION- Mostly consumer go for Volkswagen because it is new in design.

Q3) Which car makers you will prefer on reliability? European (12%) Japanese (25%) American (08%) Indian (40%) German (15%)

15% 12%

25%

European Japanese American 8% Indian German

87%

INTERPERTAION- Indian Consumer always go for Indian brand like Maruti.

Q4) What attributes you expect from cars of Volkswagen and Toyota? Price Brand Name Quality Technology Engine Others (52%) (21%) (19%) (04%) (03%) (01%)

4% 3% 1% Price 19% 52% 21% Brand Name Quality Technology Engine others

INTERPERTAION- 52% customer expect good price from company.

Q5)Do you own a Volkswagen Car? Yes No Planning to Buy (26%) (53%) (21%)

15%

25% YES NO

60%

Planning to Buy

INTERPERTAION- only 26% people said they own Volkswagen and 21% said they are planning to buy.

Q6)Do you own a Toyota Car? Yes (40%) No (45%) Planning to Buy (15%)

15%

40%

yes
45% No Planning to Buy

INTERPERTAION- only 40% people said they own Toyota and 15% said they are planning to buy.

Q7) Do you know the Meaning of DAS AUTO? Yes (19%) No (81%)

20% Yes 80% No

INTERPERTAION- Only 19% people know the meaning of DAS AUTO (The Car)

Q8) In your opinion is Volkswagen able to capture a little market-share pre-occupied by Maruti, Hyundai and Toyota?

Yes(30% ) No ( 70%)

30% Yes 70% NO

INTERPERTAION- 30% said Volkswagen can capture & 70% said no.

Q9) In your opinion is Toyota able to capture a little market-share preoccupied by Maruti, Hyundai and Tata?

Yes(20% ) No ( 80%)

20% YES 80% NO

INTERPERTAION- 20% said Toyota can capture & 80% said no

4.1

CONCLUSION

The Indian car market has transformed drastically over the years with more and more global car-makers hitting Indian streets aggressively. Volkswagen is a late entrant. While entering a new market it is extremely crucial for a company to understand the business viability, to understand the environment it plans to conduct business in and most importantly to understand its customers. For Volkswagen this is the right time since the automobile market here is now growing at a fast pace and it is expected to touch 2 million by 2014. According to the report Volkswagen has the right products to satiate the Indian consumers and to take advantage of this growth in the country. According to the response Volkswagen is an inspirational brand in a country like India. Volkswagen proactively addresses the cost of ownership and the cost of acquisition for its growing customer family using these two communication measures thereby enabling quicker purchase decision. The brand has always been a desirable one worldwide. In a competitive market like India these small measures make Volkswagen products more desirable as it does not revolve around a superbly engineered car only, but the promise of what it stands for, that is a great car means a great deal. At the company Volkswagen has have clear brand values and all communication underlines these values and positioning. A German engineered car stands for things like innovative technology, safety, stability and sturdiness. Volkswagen biggest differentiation is that they make this technology accessible across all products thereby ensuring it touches our customers in every segment. Volkswagen also eyes a 40% market share by the end of 2018.On the other hand Toyota has based itself on the quality strategy. The customers are very happy with launch of etios and the development of Q- class. Toyota marketing hasnt been mass as Volkswagen but their products and their Quality Promise results developing new customers every day. 4.3 Hypothesis Testing The hypothesis stated earlier Toyota and Volkswagen made the right moves in the Indian Market and are able to establish their brand which is well recognised in India is proved positive or true according to my report.

Chapter 5 5.1 Recommendations: Volkswagen and Toyota are both doing well in marketing their products. Volkswagen which is fairly new in Indian has tried to develop themselves as an inspirational brand for the Indian consumer. With their mass marketing campaign they are only concentrating on the urban sector in India. In order to increase sales Volkswagen needs open more service centres and dealerships and ensure that manufacturing takes place in India only On the other hand Toyota is an old player in the Indian; the company understands the needs and aspirations of the consumer. Toyota needs to advertise as well as market their product little more with competition increased by the entry of Volkswagen in India. 5.2 Limitations: The research study suffers from following limitations: The Lucknow market was too vast and it was not possible to cover each and every customer in the available short span of time. Generally, the respondents were busy in their work and were not interested in responding. Respondents were reluctant to disclose complete and correct information about themselves and their organization. Most respondents were reluctant to provide exact information as in why they preferred particular companys car. The research was conducted in present prevailing conditions. There can be some fluctuations in the market, which can offset the findings. The project is carried out for the period of 3 months only. Measurement of customer satisfaction is complex subjects, which uses nonobjectives method, which is not reliable. The sample unit were only 100 respondents.

Bibliography Journals 1. Marketing Application Project: Volkswagen New Beetle 2. Consumer Behaviour in Indian Car Market 3. Determinants of Competitiveness of the Indian Auto Industry 4. Indian Auto Industry An Overview: ACMA 5. Sify Automobile Industry Analysis 6. Volkswagen Power train Strategy . 7. 4ps Toyota 8. Economic Times 9. Auto Car India 5.2.2 Websites 1. http://www.wikipedia.org/ 2. http://www.google.co.in/ 3. http://www.overdrive.in/ 4.http://www.angelfire.com/electronic2/nichole_thurm/images/New%20Beetl %20Market% 20Analysis.pdf 5.http://www.viewsline.com/Interview.jsp?id=27801&/__LUTZ_KOTHE,_HE AD_MARKETING,_VOLKSWAGEN_GROUP_SALES_INDIA/__Innovation _is_the_Backbo ne_of_VW's_Marketing_Strategy.html

ANNEXURE Questionnaire- Volkswagen & Toyota Questionnaire Research Project A comparative study of effect of Marketing Techniques of Volkswagen and Toyota, Under the Able Guidance of Mr. Abhinav Srivastava Name: Contact No.: Occupation: Organisation: Place: Date: Annual Income: Questions Q1) What type of car do you prefer? Small Car (Hatchback) Mid Segment MUV (multi utility Vehicle) SUV (Sports Utility Vehicle) Luxury Q2) Which car makers you will prefer? .Volkswagen Toyota Q3) Which car makers you will prefer on reliability? European Japanese American Indian German

Q4) What attributes you expect from cars of Volkswagen and Toyota? Price Brand Name Quality Technology Engine Others

Q5)Do you own a Volkswagen Car? Yes No Planning to Buy Q6)Do you own a Toyota Car? Yes No Planning to Buy Q7) Do you know the Meaning of DAS AUTO? Yes No Q8) In your opinion is Volkswagen able to capture a little market-share pre-occupied by Maruti, Hyundai and Toyota?

Yes(30% ) No ( 70%) Q9) In your opinion is Toyota able to capture a little market-share preoccupied by Maruti, Hyundai and Tata?

Yes No

RESPONDENT PROFILE Name Age Address