Degree

Master of Business Administration

Faculty / School

School of Business Studies (SBS)

Advisor

Ms. Rakhshanda Mustafa, Scholar in Residence, Department of Marketing

Client

Indus Motor Company (IMC)

Committee Member 1

Ms Rakhshanda Mustafa

Committee Member 2

Dr. Muhammad Shafique

Project Type

MBA Research Project

Keywords

Toyota Corolla Cross, Hybrid Electrical Vehicle (HEVs), SUV Market Segment, Consumer Perception & Adaptation, Pakistan's automobile sector, HEVs Competitive Benchmarking, HEVs Transportation- Sustainable Option

Abstract / Summary

The project is a deep dive into Toyota’s latest launch in the Hybrid Electric Vehicle (HEV) market, the Corolla Cross. The Cross is a line extension of Toyota’s legacy brand Corolla - which has been part of the Pakistan automotive industry for decades. The Cross marks Toyota’s entry to the HEV market space at a very opportune time – where government has released policies conducive to the use of electric vehicles and demand for fuel efficient and sustainable transport continues to rise. The hybrid SUV segment has aspirational demand and is also looked at from its status appeal perspective in Pakistan. However, despite being one of the strongest automobile players in the country, Toyota is experiencing challenges in capturing market share. The report primarily aims to understand the factors that hinder Corolla Cross’s success and gives strategic recommendations on actions the company can take to build long term brand equity. The report sheds light on the overall automobile industry globally and in Pakistan, followed by a thorough literature review from sources across the world on the adoption of HEV technology and its benefits. The research methodology focuses on both quantitative and qualitative factors – where qualitative information is obtained through in-depth interviews, market feedback through websites like PakWheels. These sources are used to understand customer psychographics and behaviour. Quantitative research includes the use of regression analysis and Anova which is interpreted in conjunction with the qualitative analysis. The analytical frameworks also include models like SWOT, competitor benchmarking and thematic analysis of customer perceptions. A detailed overview of major competitors in this segment and comparison in terms of features and pricing is conducted to understand how the market is evolving especially with players coming up with innovative features and technology like the Haval H6 and BYD Atto 3.

Results and analysis of qualitative and quantitative research is discussed and in light of the insights from multiple data sources, the project team has highlighted strategic recommendations for the Cross in terms of product, pricing and marketing strategy. Toyota must plan ahead to introduce more high-tech features in Cross to keep with market trends and competitors as well as improve its value proposition. Alternatively, pricing can be adjusted, however Toyota must be careful in not losing brand equity that it aims to build. Marketing strategy recommendations focus on leveraging the brand equity of the Corolla series and targeting high income professionals and building an emotional connect. High visibility through displays in malls and exhibitions will support customer awareness and test drives must be increased to allow consumers to experience the product and also support in clearing customer queries. While the launch of Corolla Cross comes at a strategically important time where focus on HEVs is rising, the entry of multiple competitors means that consumer variety is increased and both pricing and specifications must be adequately matched to build value for consumer.

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