Help-Emergency Service

International Business Student Collaboration Project

Team # __90___

Client (Company): ______Toyota Motor Corporation___________________________

Product/Service : ______Toyota@Help Service______________________

Team members:

Name CountryDid not Participate

(Please make note if this teammate did not participate during the project, has not

replied to emails, etc)

Jason Horbac USA Paricipated well & Team Player

Okyere-Tawiah Antwi Nana Ghana Responded only few times

Kristian Bachman Slovakia Worked excellent to get results

Nilay Patel USA Participated as a team Leader

Gilda Friend Ecuador Replied back just a day before report was due!

Victor Dercaci Romania Group Planner & initiator

Frank Orizawa Indonesia Participated to a certain extent

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Table of Contents

Number Content Page No

1 Service Description 2

2 Target Market 4

3 Production Site or Service Personnel 6

4 Entry Mode 7

5 Staffing 9

6 Marketing 11

7 Payment Arrangements 13

8Capital 14

9 Likely Challenges 14

10 Elective Summary 17

11 References 18

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Idea and Service Description

Toyota Motor Corporation is an automobile company established in 1937 by its

owner Sikachi Toyoda. Toyota has positioned itself as a reliable automobile company all over

the world. Toyota’s mission is to strive towards introducing innovative products and services.

But in recent times, Toyota has been facing safety issues due to the recent failures in the break

system of the cars; there has been increasing number of accidents all over the world. Toyota had

to recall about 420,000 cars in North America itself and about 550,000 cars all over the world

due to concerns of steering in the car. The company has not reported any major casualties due to

the mechanical issues in the car, but the brand image of the company is disturbed and questions

are being raised about the reliability of Toyota manufactured cars. In this project, we have

introduced an emergency technology system in the all the Toyota compatible cars. The system

would be named as Toyota@Help. The technology can be operated by a single touch of a button

placed on the rear mirror. The main purpose of the technology is to install the system at a

complete mass scale in all the Toyota cars (old and new). This strategy is to create Toyota as one

of the safest automobile company in the world.

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Benefits of Toyota@Help

Toyota@Help will provide six significant services to its customers:

1. Emergency crash response - The emergency crash system will be provided completely

free to all the customers. Special sensors will be installed in the engine pedal which will

be connected to every part of the car’s system. So, e.g. if the tires of the car turn more

than 45 degrees within a time span of 5 seconds, it will immediately call the emergency

system for help. The sensors can detect the jerk at any point of time.

2. Voluntary Emergency Help - The voluntary emergency option will provide customers for

medical emergency. The customer service representative will stay online until the help

arrives. It will also give an Amber support in case of missing child, or pregnancy

emergency.

3. Security Help- The security service will provide roadside assistance during an engine

breakdown and also provide security police assistance during a stolen vehicle

circumstances.

4. Navigation- The navigation will provide an excellent tool for direction help. The cars

having a GPS (Global Positioning system) navigation will automatically have the

Toyota@Help service synced. The cars without GPS navigation will have an audio

direction help. The service will provide directions to restaurants, hospitals or any kind of

government office just by voice recognition of the driver.

5. ConnectYou- If the customer does not prefer to use his/her cellphone, Toyota@Help will

provide the customer with service to make a phone call to the desired person. The option

may not be available in old cars without the Bluetooth system.

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6. Bluetooth - Bluetooth will provide a parallel option along with ConnectYou. It will

automatically sync your cell phone to the car system when the passenger starts his/her

car.

These six excellent options are completely intended to towards providing an overall safe and

friendly experience while driving a car. The system not only aims at protecting the vehicle, but

also adds a human protective element from the perspective of Toyota’s side.

Target Market

Starting with our team’s idea, we agreed that Toyota vehicles ranked low in safety

tests & none of their vehicles ranked in the top 10 in safety (especially in roof strength & crash

durability). Thus, by looking at that point we have decided to develop a technology that can

detect the crash and report to hospital and send an ambulance on the accident site. Through this

kind of idea we conclude our target market is the Toyota dealership supplier who will be able to

sell this technology to its new as well as existing customers. The service will be introduced in

two markets of Canada and India. The purpose of selecting one developed and one developing

country is to experiment the acceptance of the technology in different kind of markets. If the

service works very well only in developed countries, than the target market becomes more

focused and narrow. The same concept applies to developing countries. There are more chances

to generate profits in the growing developing countries where there are greater chances for

economic growth and less competition. We have a strong belief on the new technology that it

will shake the sales’ market of Toyota. Placing Toyota dealership suppliers as our first target

market depends on the implementation of our innovative product that may use to the vehicles.

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Since our product is about installing technology to improve vehicles safety in new cars as well as

old cars which does not have it installed, the hard part would be to adjust this new breakthrough

with dealership supplier agreement.

This intended idea is to create new services of Toyota vehicles itself that is why we

placed dealership suppliers as our primary or main target that will confirm or exactly need our

product to complete vehicles optimization safety. Objectively our segmented customer will be

concentrated more in developing country that has low rating in terms of safety. The death rate of

vehicles accident in developing countries is bigger than in developed countries.

Segmenting

Specifically this technology can be segmented through Toyota dealership suppliers who

are present all over the world. Toyota dealership suppliers can have the authority to install the

technology before, during or after the sale process of any Toyota car. The suppliers may also be

capable to sell this technology as the spare part of Toyota’s car production. The service can also

be installed in any car by customer’s direct request. The customer can choose to order the system

online or go to the nearest Toyota dealership to get it installed.

Targeting

Targeting of our services specifically will be more focused on the developing country.

Toyota’s dealership suppliers in developing country will be our priority to apply this new

technology. Because the accident data has shown us how the developing country has higher

number of car accident than developed country, especially Toyota’s car.

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Positioning

This technology will be placed as the safest system in cars. Within full services up to

24/7, our customers will not need to worry about accident anymore. Therefore, accidents can be

solved as fast as it is possible without waiting for a long period. Decreasing number of car’s

accident will also bring more welfare and security of our daily driving. No more fear while

driving every day.

Production Site or service personnel location

Currently Toyota is known as one of the leading automobile manufacturers throughout

the world. Their name is very recognizable throughout the world and the company employs

many individuals. The company employs over 317,716 people. Toyota sells vehicles in over

one-hundred and seventy countries. They have presence throughout the world but have distinct

popularity in Japan, North America, Europe and Asia. Toyota’s main headquarters is in Toyota

City, Japan. The company even has a city named after it in there! (Business Source)

In the United States alone Toyota has ten plants and where nine models of vehicles are

built. Throughout the world the company has a large amount of Research and Design Centers. In

the United States these centers are located in Arizona, Washington, DC, California and

Michigan. The company specializes in product planning, vehicle engineering and evaluation of

basic research. In Japan, where the company began, the centers also specialize in product

planning development but also vehicle testing and new tech research. In Japan they do a lot of

research on all parts of the car and the vehicle testing is particularly important especially due to

the safety issues the company has faced in the previous years. The country also has a huge

number of production sites.

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In Europe, Toyota specializes in product planning and vehicle engineering evaluation.

France, which is different than other countries, specializes in exterior and interior color design.

Finally, other centers could be found in Asia Pacific- Australia and Thailand. These centers

evaluate vehicles and focus on engineering planning. (Facilities)

It is very beneficial that Toyota has a huge global presence. It is important that the

company manufacturers quality products to all of its customers throughout the world. In each

country and in each Research and Design Center enhanced steps should be taken to make sure

that quality and safety measures are met. Because our service focuses on quality and maintaining

the strong brand name I think that it is justified to have our service be present and familiar at all

locations.

Toyota’s global presence:

(http://car2all.blogspot.com/2010/10/6-global-presence-for-toyota.html)

Entry Mode

Our team has selected two markets to introduce the service. The service would be introduced in

Canada and India. The main reason to select these two countries is to understand the progress of

Toyota@Help in a developed and developing economy. These two countries are selected due to

the country’s reliability and stability in economy. The charts below explain the sales and

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production in both the countries. If the service is a huge success, Toyota can introduce the

service in bigger developing country like China and other developed countries in North America

and Europe.

Figure 1 shows the sales and production data of Toyota in Canada. Canada has a consistent

market potential of over 1 million cars per year. As a developed country, the sales of Canada

from 2006 to 2011 are also consistent on an average of about 200,000 cars per year. Toyota is

established as a wholly owned subsidiary in Canada. Thus, the risk factor to introduce the service

in well-known brand would not be too difficult. Promotion of the service on a mass scale through

integrated marketing would become easier in Canada and may increase the sales by at least 5%.

Toyota@Help will have a direct competition with OnStar in Canada which provides a similar

service to a generic target market. So, Toyota@Help would enter in Canada as a new service in

existing market.

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Figure 1: Country Profile Canada

Figure 2 shows the country profile of India. India has one of biggest automobile growing market.

Since 2006, India has a tremendous demand for automobiles. The rising middle class with

sufficient reserves demands more cars and vehicles. The country has a GDP growth rate of 8%

per annum. The demand for cars is increasing at an alarming rate of 20%. The sales for 2010 had

approximate sales of around 75,000 cars which is almost 100% more than 2006. The Indian

automobile market has a potential of about 3 million cars a year. Thus, Toyota has a great chance

to grow in the developing market. Toyota@Help could be introduced at a cheaper price since the

manufacturing cost is less in India. Toyota has a Joint Venture with Kirloskar Motor Private

Limited. Toyota@Help can be introduced as a new service in new market.

Staffing

The staffing is one of the most important factors for providing a successful system to our

customers. To make staffing as good as possible, we need effective administrators in each

country. This person responsible for emergency support system in his country must be skilled in

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Figure 2: Country Profile India

management and able to accomplish our goals with new emergency support system. There are

changing circumstances in the market, so we need a person, who is flexible in his/her approach

to solutions, who can work with people and with resources to complete our objectives.

The company need to appoint a responsible person for every dealership in each country .

The Security Support System (SSS) Manager should coordinate the deployment, the operation,

the control and solve the possible problems of the system. First we should train the SSS

managers for the new service we are going to provide. So we have to organize an introduction of

training with all details of the service. They have to know everything about the system to sell it

effectively. We should make this training in accordance with Toyota’s principles, which are

valid for this service also:

o to base management decisions on a philosophical sense of purpose.

o the services exist not just for the very sake of it, but to fulfil deeper emotional and

psychological needs of the customers.

o to fulfill long term goals.

o to base the decisions on a long term philosophy, even at the expense of short-term

financial goals.

o to have a process for solving problems.

o the right process will produce the right results.

o to add value to the organization by developing its people.

o we need leaders who thoroughly understand the work, live the philosophy and teach it

to others.

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o the managers have to strive to respect the network of partners and dealerships by

challenging them and helping them to improve.

o to recognize that continuously solving of root problems drives organizational learning

After training all of the leaders for the service we need to compile a training booklet for

both the countries in all languages for each dealership. This booklet should contain the details

and operation of the system and the benefits of the new service for the customers. It is important

to inform all the dealership salesperson about the system by the booklet and also practiced and

taught by the dealership leaders verbally.

The manager of every region should organize a regional meeting for dealership leaders to

let them know the most important details of the system and help them understand the system.The

meeting should also discuss the feedback after the introduction of the service in the market.

The comprehensive marketing support helps to recognize the system by the costumers, but they

will need more information to accept it, to like it and to know this service is necessary for them.

So the staffing of the Emergency Support System should be solved by appointing

responsible managers of the service, who will coordinate the system. They will also control it

and make reports of the sale and the possible operation problems. We need to have leaders for

each country separately because of the different terms and conditions for example in health

system, which is connected with our system by ambulance service.

Marketing

Toyota is known for their wide range of automobiles. The Insurance Institute for

Highway and Safety Control has favorably rated Toyota’s vehicles according to how safe they

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are. Their models include the Avalon which was a top safety pick for large cars, the Corolla

which was a top safety pick for small cars, the Highlander which is a top safety pick for midsize

SUV’s, the Sienna which is a top safety pick for minivans, the Venza which is another top pick

for midsize SUV’s, the Prius which is another top safety pick for small cars and the Tundra

which is a top safety pick for large pickups. (Toyota safety)

It is very beneficial that the company makes vehicles which can virtually fit any type of

consumers need. It produces electric cars for those who are green-friendly, small cars, minivans

and trucks for families, trucks for those interested in the outdoors or need a truck for work. For

this reason I believe that they should market to everyone in the market because they make

vehicles that would be suitable for any customer. The one thing that doesn’t vary about all of the

different types of customers that Toyota has is that they are all interested in safety. Whether you

have a family, are single, etc. you want a vehicle with a high safety rating and one that is

reliable. That’s why reinforcing the fact that Toyota cars are ranked high in safety is important,

especially in marketing.

In 2009, Toyota unfortunately became known for its “unsafe” vehicles. People began to

say that they were of bad quality because of the acceleration and also because the gas pedal was

sticking on a lot of models. The company was under a lot of scrutiny and people were made

because they felt the company was trying to hide these problems. Eventually Toyota had to recall

and stop making eleven million models worldwide and faced fines around $48.8 millon. (Toyota

Motor Corporation)

Toyota should market to those customers who they lost at that time. It is instilling the fact

that the automobiles are ranked at the top in the industry through TV, internet, radio and social

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media (face book, twitter, etc.) people would begin to gain trust in the company again. Also,

Toyota should give away free or complimentary trails of the service to allow consumers to

experience how good it is first hand. There is no better way to advertise than through a happy

customer. I believe that through customer experience and satisfaction the service and the

company will get the recognition that it deserves.

Both charts from : http://www.toyotaforklift.com/pages/about-us/toyota-philosophy/safety-focus/safety-study.aspx

Payment Arrangements

Toyota@Help will be provided to the customers at a very generous price. A new

emergency support system will be sold at a price of $200 US Dollars and $75 for installation

charges to a new customer. The installation charges will only be charged in Canada. In India, the

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system itself will cost to about ₨20,000 (approximately, US $400). The installation charges would be

covered in the final price for Indian customers. The payment would be taken in advance from the

dealership suppliers before the cars are dispatched from the Toyota manufacturing plants. The new cars

will have the systems installed when they are delivered to the dealership locations. The online model of

selling the system is primarily focused on existing customers who would like to install the system in their

cars. They would ony be charged for the system, no installation charges. The payment online could be

made through credit card, debit card or automatic debit payment from bank accounts. Apart from that,

Toyota@Help will also provide a communcation option at a fair price of $18.99 per month to make calls

anywhere in the country. The network merger will be done with the communication network provider of

Airtel. Airtel has well-established cellular network in Canada and India.

Capital

The initial investing capital will be generated from a new public offer of shares in the stock

market. The shares would be available in all the major stock markets of the world depending

upon the accessibility of each country’s rules and regulations. Toyota@help will operating has a

separate entity . Thus, the initial public offer will be done in NASDAQ, Sensex BSE30,

NIKKEI,Shanghai Composite &FTSE. The Share price would be set as $25 US Dollars per

share.

Likely challenges

It is difficult to make reputation for a completely new service like the Toyota@Help

Support System. What is most important factor for customer? Is it the result? or the relationship?

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The changing customer needs makes it difficult to provide a service in automotive industry.

The security and the safety in case of emergency are the most important factors for buyers, but

the complicated economic situation in the large part of the world in background plays an

important role in families’ life. So the first challenge is to set the price of the service on an

appropriate level which is acceptable by customers. In case of too high price the selling of

service will decline.

On the other side we need to analize the country-specified risks:

there are different terms and conditions in ambulance service and the costs of this

services of course

different economic situation

different level of development

culture

preferences

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Different conditions in ambulance service

Security Support System

Economic situation

Culture

DevelopmentPreferences

This all factors can influence the prosperity of the service. A cumulative impact is also

possible. We can see the most dramatic changes in customer preferences in automotive in last

few years, and in the near future it will be the same. Attitudes altered by the recession will

continue to evolve in mature market. We need to profitably and flexibly meet customer

requirements. It is necessary to pay attention to regional differences in mentioned factors. As

technologies evolve, safety remains a primary customer need across all markets. The system we

have developed meets consumer demand in most of the ways.

It is very important to provide the service spotlessly, and the consumers will reward us

because we make best use of advanced service which guarantees the safety in our vehicles.

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Electivity Summary

Toyota@Help is an innovative technology which provides an instant emergency support system

to all the existing and new customers of Toyota cars. The main purpose of this strategy is to

reduce the safety concerns of Toyota cars. The emergency service will help drivers with any

medical, navigational and communication wireless services. The target market would be the

Toyota Dealership suppliers who will have the authority to install and sell the portable system to

the customers. The customer can also order the system at a little cheaper price online and get it

installed at the nearest Toyota dealership. The country where Toyota would introduce would be

Canada and India. The reason to introduce this service in one developed country and one

developing country is to understand different markets suitable for this service. It would help the

company to become more focused and narrow in terms of target market. Canada and India are

stable markets which would provide an excellent platform to introduce the service. The company

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will put emphasis on staffing by providing a proper detailed understanding for selling the service

to customers by regional managers, dealership leaders and salesperson. The best results will

come out as all these factors are performed well to make it a company’s success and society’s

prosperity.

References

1. Toyota Safety. (n.d.). Retrieved from http://www.toyota.com/safety/awards.html

2. Toyota Motor Corporation. (n.d.). Retrieved from http://topics.nytimes.com/top/

news/business/companies/toyota_motor_corporation/index.html

3. Facilities. (n.d.). Retrieved from http://www.toyota-global.com/company/profile/

facilities/

4. Business Source: Toyota Motor Corporation. (n.d.). Retrieved from

http://bluehawk.monmouth.edu:2055/bsi/

companyinfo?sid=779c0c09-e684-4b9a-b56d-c539b3fe815e%40sessionmgr110&vid=4&hid=12

7&bdata=JnNpdGU9YnNpLWxpdmU%3d#db=buh&authdb=dmhco&AN=2A89F017-6903-477A-

A94B-628 576B59972

5. Vehicle Production, Sales and Exports by Region. (2010). Retrieved November 25, 2011, from

Toyota-Global: http://money.cnn.com/data/world_markets/americas/

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6. Corporation, C. F. (2011, October 15). FAW Group. Retrieved November 28, 2011, from

Wikepedia: http://en.wikipedia.org/wiki/China_FAW_Group_Corporation

7. Valdes-Dapena, P. (2011, November 9). CNN Personal Finance. Retrieved November 27, 2011,

from www.CNN.com: http://money.cnn.com/2011/11/09/autos/toyota_lexus_recall/index.htm

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