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Toyota Corolla

Toyota Corolla. Terry Brewer Diane Buckner Ted Buckner John Fernandez Tim Harclerode. Notes on Toyota. Largest carmaker in Japan Number 4 in the world (behind GM, Ford, and Chrysler) Producer of cars, trucks, and SUVs. Toyota Corolla. Introduced in 1968 Over 20 million sold worldwide

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Toyota Corolla

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  1. ToyotaCorolla • Terry Brewer • Diane Buckner • Ted Buckner • John Fernandez • Tim Harclerode EMBA/CM02 BADM 423

  2. Notes on Toyota • Largest carmaker in Japan • Number 4 in the world (behind GM, Ford, and Chrysler) • Producer of cars, trucks, and SUVs EMBA/CM02 BADM 423

  3. Toyota Corolla • Introduced in 1968 • Over 20 million sold worldwide • Over 10 million sold in the US EMBA/CM02 BADM 423

  4. The Corolla Line • Base • DX • Wagon (introduced Yr3/Q2) EMBA/CM02 BADM 423

  5. The Press Says: “Corolla is one of the world’s best little sedans and a clear BEST BUY. It’s not the cheapest sub-compact around, but resale values are high, and Toyota’s reliability record is unsurpassed.” ’99 Consumer Guide EMBA/CM02 BADM 423

  6. Customers • Commuters • New Families • Traditionals EMBA/CM02 BADM 423

  7. Decision #1 for Y2/Q2 • Production 52,200 units • Projected Sales 57,200 units • Finance Rate 7.9% • Dealer Incentive 250 EMBA/CM02 BADM 423

  8. Results Y2/Q2 • Actual Sales 56,190 units • Unit Share 8.8% • Net Contribution $122.7 million EMBA/CM02 BADM 423

  9. Decision #2 for Y2/Q3 • Introduced Safety Upgrade • Production 53,000 units • Projected Sales 61,000 units • Finance Rate 1.9% or Rebate $25 EMBA/CM02 BADM 423

  10. Results Y2/Q3 • Actual Sales 68,320 units • Unit Share 10.8% • Net Contribution $206.7 million EMBA/CM02 BADM 423

  11. Decision #3 for Y2/Q4 • Production 53,000 units • Projected Sales 58,000 units • Finance Rate 1.9% or Rebate $25 EMBA/CM02 BADM 423

  12. Results Y2/Q4 • Actual Sales 49,600 units • Unit Share 8.0% • Net Contribution $43 million EMBA/CM02 BADM 423

  13. Decision #4 for Y3/Q1 • Production 48,000 units • Projected Sales 56,000 units • Finance Rate 1.9% or Rebate $1,250 (on Base) $ 25 (on DX) EMBA/CM02 BADM 423

  14. Results Y3/Q1 • Actual Sales 56,369 units • Unit Share 9.1% • Net Contribution $135.4 million EMBA/CM02 BADM 423

  15. Decision #5 for Y3/Q2 • Introduced Wagon • Production 59,000 units • Projected Sales 62,000 units • Finance Rate 1.9% or Rebate $ 750 (on Base) $ 25 (on DX) $1500 (on Wagon) EMBA/CM02 BADM 423

  16. Results Y3/Q2 • Actual Sales 53,261 units • Unit Share 8.8% • Net Contribution $102.6 million EMBA/CM02 BADM 423

  17. Cumulative Results Y2/Q2 - Y3/Q2 • Unit Sales 283,740 • Net Contribution $610.4 million EMBA/CM02 BADM 423

  18. Contribution EMBA/CM02 BADM 423

  19. Economic Indicators EMBA/CM02 BADM 423

  20. Net Contribution vs. Total Small Car Sales EMBA/CM02 BADM 423

  21. Lessons Learned • Be conservative with regard to economic forecasts • Try to distinguish yourself from the competition • Never lose track of your target customers • Be first with an innovation or be better • A small return on sales is better than lost sales EMBA/CM02 BADM 423

  22. Lessons Learned (cont.) Unless you put yourself completely out of business, there’s always next quarter! EMBA/CM02 BADM 423

  23. Thank You Questions? EMBA/CM02 BADM 423

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