Marketing Strategy of top 3 Automotive companies

Fight between 3 Automobile Giants – TOYOTA, VOLKSWAGEN and GENERAL MOTORS – at International

platform and Indian markets

Toyota will lead the way to the future of mobility, enriching lives around the world (3) with the safest and most responsible (6) ways of moving people (1). Through our commitment to quality, constant innovation (4, 7) and respect for the planet (8), we aim to exceed expectations and be rewarded with a smile. We will meet challenging goals (5) by engaging the talent and passion of people (9), who believe there is always a better way. (6)

Volkswagen Group doesn’t have an official mission statement. The closest statement that could be called VW Group’s mission is expressed as company’s goal:“The Group’s goal is to offer attractive, safe and environmentally sound vehicles which can compete in an increasingly tough market and set world standards in their respective class.”

“Making the world’s best vehicles can only happen with the world’s greatest employees. We take great pride in our work, and take great care to deliver exceptional cars and a positive ownership experience to our customers around the world.At the new GM, we make a strong commitment to our customers, employees, partners and other important stakeholders. We state proudly our five principles that guide us in everything we do:Safety and Quality FirstCreate Lifelong CustomersInnovateDeliver Long-Term Investment ValueMake a Positive Difference”

Mission Statement

Volkswagen brand vision is to become a Most innovative high volume manufacturer offering best quality in respective class

Powerful Vision, Powerful Strategy.At GM, we are focused on a single global vision: To design, build and sell the world’s best vehicles. This powers the development of world-class products that are winning in the marketplace, and is helping to transform our business and fortify our balance sheet.This business model also creates a self-sustaining cycle of reinvestment that drives continuous improvement in vehicle design, manufacturing discipline, brand strength, competitive pricing and margins.Here’s how we bring the insight, drive and vision of our business model to the market every day to yield positive results for our investors, employees and customers worldwide:DesignBuildSellReinvest

Toyota will lead the way to future of mobility, enriching lives around the world with the safest and most responsible ways of moving peopleThrough commitment to quality, constant innovation and respect for the planet, we aim to exceed expectations and to be rewarded with smileWe will meet our challenging goals by engaging talent and passion of people, who believe there is always a better way.

Vision statement

Company Background

Toyota Volkswagen General Motors

Industry: Automotive

Passenger cars, luxury cars, trucks and buses

Passenger cars Luxury cars, Motorcycles, trucks and buses

Passenger cars and luxury cars, MUVs

Cars sold (2013)

9,980,000 9,700,000 9,710,000

Headquarters Aichi Prefecture, Japan

Wolfsburg, Germany

Detroit and Wilmington, USA

Current CEO Akio Toyoda Martin Winterkorn Daniel Akerson

Revenue (2012)

¥18.583 trillion €192.7 billion $ 152.3 billion

Profit (2012) ¥283.55 billion €21.7 billion $ 4.9 billion

Employees (2012)

300,747 549,763 202,000

Founded: Parent (India)

August 1937 (1997)

May 1937 (2007) September 1908 (1996)

Competitors: Same for all in IndiaGeographic regions served: Worldwide

SubsidiariesToyota: Daihatsu, Hino Motors, Lexus, Scion, DENSO, Toyota Industries, Aisin Seiki, Fuji

Heavy IndustriesVolkswagen: Volkswagen Passenger Cars, Skoda, Audi, Porsche, Lamborghini, SEAT,

Scania, MAN, Bentley, Bugatti, DucatiGeneral Motors: Chevrolet, Opel, Daewoo, Cadillac, Buick, Pontiac, GMC,Holden, Saab,

Vauxhall

tagline

Competitors in India: Maruti Suzuki, Hyundai, Ford, TATA, Mahindra & Mahindra, Nissan, Renault, FIAT, Honda, Mitsubishi

Competitors Worldwide: Chrysler, Peugeot Citroen, Mazda, Daimler, Subaru, Isuzu, Daewoo, Ssangyong, KIA , Volvo, Saab, Mercedes Benz, BMW

Market share of Toyota, Volkswagen and General Motors in India

GM, Toyota, VW battle for #1

• The battle for the global sales crown will come down to General Motors and Toyota, with Volkswagen expected to finish a close third.

• The top three automakers are each projected to have sold more than nine million vehicles last year, meaning the three auto giants generated roughly a third of the industry's global sales.

• Annual Global Auto Sales 2013: 82.8 million 2012: 79.5 million 2011: 76.7 million 2010: 73.2 million

TOYOTA Latest News

Toyota booked global hybrid vehicle sales above 1 million units for a second time in 2013.

March 2014: Toyota crosses 1 million sales mark in India The Toyota workers and the company's management at two plants near

Bangalore have been negotiating the pay issues for 10 months and the production has fallen by half.

Toyota to launch Corolla Altis and Etios Cross in May 2014

Volkswagen Latest News

VW introduced 60 new and updated models in 2013.VW Group has appointed Michael Mayer as the brand head of Volkswagen

Passenger Cars India. German automaker Volkswagen’s Chakan manufacturing plant has completed five

years.Volkswagen AG, Europe's largest car maker, has applied to set up its first plant in

Thailand.Golf completes 40 years.Group is busy innovating a new revolutionary petrol engine technology that

involves “electro-mechanical assistance for forced induction” and “variable compression ratios”.

General Motors Latest News

General Motors recalled 824,000 more cars for possible problems with ignitions that have led to more than 30 accidents and 12 deaths. Last month, GM called back 1.6 million cars amid questions over why it took years to address a defect it knew about as early as 2001.

Over the weekend the House committee on energy and commerce released new details of its investigation into the events leading up to GM's recall of 2.6m vehicles for ignition-switch defects.

Regulators and GM executives will come under fire Tuesday as Congress pushes for answers on why the auto company failed to recall over a million cars despite evidence it knew of fatal flaws in their design.

G.M. Turns to Experienced Crisis Experts

http://timesofindia.indiatimes.com/topic/GM

http://docs.house.gov/meetings/IF/IF02/20140401/102033/HHRG-113-IF02-20140401-SD002.pdf


Innovative culture Global presence Global presenceBrand value over $30 billion

Strong brand portfolio

New mission and vision

Industry leader in production and sales

Synergy Strong brand portfolio

Strong brand portfolio

Strong presence in China

Strong presence in China

Leader in “green” cars development

Well performing brands

Knowledge of Home market4 well performing brands

Strengths


Positive attitude towards “green” vehicles

Changing customer needs


Increasing fuel prices Increasing fuel prices Increasing fuel prices




Growth through acquisition

Growth through acquisitions

Growth through acquisitions

Increasing global demand for buses

Opportunities


Large recalls Weak position in US car market

High cost structure

Weak presence in emerging markets

Most markets are not environmentally friendly

Brand dilution

Bureaucratic culture

Car recalls

Weakness


Fluctuating fuel prices

New emission standards


New Emission standards


New emission standards

Rising raw material prices



Intense competition

Exchange rates Intense competition

Natural disasters Exchange rates

Appreciating Yen exchange rate

Threats

Porter’s Five Forces Model for established Automobile brands

1) Threat of new entrants: LOW2) The bargaining power of buyers/customers: MODERATELY LOW3) There is a huge threat of substitute products: VERY HIGH4) Bargaining power of suppliers: LOW5) Amount of rivalry among competitors: HIGH

6) All parameters are almost same for Toyota, Volkswagen and General Motors 7) All parameters are almost same for Automobile companies in India and rest of

the world

Marketing Strategy of top 3 Automotive companies

Automotive

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