Toyota Etios's 'Q' Class Campaign: A Quality Marketing Strategy

Abstract:

This case discusses the marketing strategy of auto giant Toyota Motor Corporation's (TMC) Indian joint venture Toyota Kirloskar Motor Limited (TKM) for the Etios sedan and its hatchback sibling, the Etios Liva. Though TKM already had blockbuster products in India like the Innova and the Fortuner, these were niche products. TKM needed products meant for the mass market to generate volumes and get a sizeable share of emerging car markets like India that were waiting to explode. And it banked on the Etios line to deliver the goods in India.

For a full year before the official launch of the Etios line, TKM embarked on a series of brand building initiatives comprising teaser advertisements featuring the Etios sedan’s outline, showcasing the cars at the Delhi Auto Expo 2010, launching online advertisement campaigns for the Etios line through Facebook and Twitter, taking the Etios line of cars directly to prospective customers in 24 cities through the Toyota 'Q' World Shows, and launching the 'Q' Promise ad campaign across all media platforms. The underlying message of all these promotional activities, with their spotlight on 'Q Class', was that Toyota had designed the Etios cars specifically for the Indian market without compromising on its exacting quality standards. The hype generated by TKM through these promotional activities was such that within a week of the launch of the Etios sedan, it registered 8,100 bookings. However, there was some resentment among the customers once they received the delivery of their cars. There were quite a few complaints about TKM having compromised on the Etios's build quality, especially its interiors, to keep costs low. This proved detrimental to the sales of the Etios Liva which was launched subsequently. Did Toyota make an overkill of the quality aspect of the Etios line? How can Toyota grow the Etios line further in India? This case is meant for MBA students as a part of the Marketing Communication/ Product Management/Marketing Management/ International Marketing curriculum.

Issues:

The case will help the students:
» Understand the reasons for Toyota launching the Etios brand in India
» Discuss the issues and challenges in marketing a product on the quality plank
» Analyze the promotional strategies that new players should engage in, if they aim at getting a sizeable share of new markets inhabited by well-entrenched players
» Elucidate the prime expectations that consumers have from high-investment products, with specific emphasis on price versus performance
» Discuss the strategies that TKM should follow to salvage and eventually strengthen the sales of the Etios line of cars.

Contents:

Keywords:

Quality, Marketing Strategy, Promotional strategy, Brand building, Quality Revolution, Advertisements, Customer perception , Multi-channel, Distribution network, Service network , Online campaign, 'Q' Class Campaign, Indian car market. , Emerging markets , Toyota, Etios, Aspirational Marketing, Diffrentition, Competitive Advantage, Automobiles, Customer Loyalty, Brand Positioning, Global Local, Customer Involvement, Customer Focus, Social Marketing

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