A REPORT ON SHORT TERM PROJECT AT AL FUTTAIM- TOYOTA (Marketing & Finance)

Submitted By: Rahul Jain 12DCP-087 IMT DUBAI

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CERTIFICATION

This is to certify that Mr. RAHUL JAIN student of IMT, Dubai has successfully completed a short term project in Marketing & Finance at Al Futtaim Toyota, Dubai under the guidance of Mr. GAURAV SHARMA from 15 Feb 2013 to 10 March 2013.

Under The Guidance Of:

Mr. GAURAV SHARMA (Manager, Finance)

Contents
a) Al Futtaim Toyota Company Profile......4 b) Various Countries Exporting to Al Futtaim.5 c) Toyota Showrooms in UAE6 d) Toyotas Product Line in UAE..7 e) Various Banks offering Car loans in UAE10 f) SWOT analysis ..11 g) Web Analysis.12 h) Use of Social Media as a promotion tool..16

Company Profile
Al-Futtaim Motors is a member of Al-Futtaim Group, the leading UAE business conglomerate. It operates the Toyota franchise in the United Arab Emirates since almost 6 decades. The company started its operation in 1955 with the arrival of the first shipment of 28 Land Cruisers and Toyopets from Japan. It then became the largest distributor of automobiles and automotive products in the UAE. Since then, the company has gone from strength to strength, and has expanded its presence through a network of high profile Toyota showrooms and service centers providing convenient touch points for motorists in every corner of the UAE. Al-Futtaim Motors offers a comprehensive choice of Toyota models ranging from compact, sedan, SUV, MPV and LCV options. Al-Futtaim is the largest distributor of cars in the UAE and Toyota is the biggest gainer for the company. UAE has a market for cars. The cars range from luxury cars to simple cars. There is huge competition in the market but Toyota is the leader in terms of sales and customer service. Every fourth car in UAE is Toyota despite the fact that there is great demand for luxury cars. The Parts Distribution Centre in Ramool, Dubai, is a perfect example of the company's after-sales service support, stocking over 100,000 line items and capable of ensuring spare parts delivery to any other outlet in the country within 2 hours of an enquiry. They have an excellent customer satisfaction programme helps in fostering customer relationships by providing high service levels right from workshops to the showrooms.

Various countries exporting cars to Al Futtaim Toyota

1. Camry : Australia The Toyota Camry is a series of mid-size (originally compact) automobiles manufactured by Toyota since 1982, and is sold in majority of automotive markets throughout the world. 2. Corolla : Thailand The Toyota Corolla is one line of a subcompact and compact cars which has become very popular throughout the world since the nameplate was first introduced in 1966. 3. Land Cruiser: Japan The Toyota Land Cruiser is a series of four-wheel drive vehicles manufactured by Toyota. It is the longest running series in Toyota history. 4. Prado: Japan It is a mid-size four-wheel drive vehicle in the Toyota Land Cruiser range. Prado is one of the smallest vehicles in the range. 5. Fortuner: Indonesia The Toyota Fortuner is a medium sized SUV based on the Toyota Hilux. Originally assembled in Thailand but later also in Indonesia and other countries.

Al Futtaim Toyota Showrooms in UAE

There are 14 Toyota showrooms spread across all the emirates in the UAE. All the showrooms are well located in most prime locations .11 of these showrooms have service workshops and part sales centers which is known as 3S facility (Sales, Service and Spare Parts). Following are the number of Toyota showrooms in various Emirates: 1. 2. 3. 4. 5. 6. 7. Dubai Four Abu Dhabi- Three Ajman Two Sharjah Two Fujairah- One Ras al-Khaimah- One Umm al Quwain One

Advantages of 3S Facility:
1. It helps in strengthening customer base as it provides a one stop location for all the services needed by the customer. 2. Close proximity of the Part Sales center with the Service workshops helps reduce the transportation cost and also the service time. Disadvantages of 3S Facility: 1. A large piece of land is needed to setup a 3S Facility as ample space is required to install the service bays and to hold the spare parts inventory. 2. Since it serves a large customer base, this facility cannot be setup in remote areas and thus customer residing in these areas need to travel a large distance to reach the service centers for repairs and maintenance.

Toyotas Product Line in UAE

CARS

SUVs

1. LCVs

MPVs

LCVs

Various Banks offering Car Loans in UAE

BANK Starting Interest (%) 2.99 2.25 2.35* 2.99 3.74 3.75 3.75 3.75 3.99** 4.34 NonIslamic Finance YES YES YES NO NO YES YES YES YES NO Salary Transfer Required YES YES NO NO NO YES NO NO NO NO Maximum Loan Amount (AED) 350,000 918,000 500,000 1,000,000 500,000 500,000 500,000 400,000 250,000 500,000

National Bank of Abu Dhabi (NBAD) HSBC Mashreq Bank Dubai Islamic Bank Sharjah Islamic Bank United Arab Bank Standard Chartered Bank Noor Islamic Bank RAKBANK EMIRATES Islamic Bank

*For loans upto 200,000 AED **For banking customers only

HIGHLIGHTS: 1. Minimum 20% down payment is required by all the banks. 2. Maximum repayment period is 60 months. 3. Early settlement charges are 1% across all the banks in the UAE.

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Loan Repayment- Reducing Balance Method Let us assume AED 42000 be the principal amount to be paid in 5 years at an interest rate of 8% p.a.

BEGIN. YEAR BALANCE

1 2 3 4 5 42000 34,840.83 27,108.93 18,758.47 9,739.98

TOTAL PAYMENT
10,519.17 10,519.17 10,519.17 10,519.17 10,519.17

INTEREST
3360 2787.2664 2168.714112 1500.677641 779.1982522

PRINCIPAL PAYMENT
7,159.17 7,731.90 8,350.46 9,018.49 9,739.97 34,840.83 27,108.93 18,758.47 9,739.98 0.01

SWOT Analysis:
Strengths: Al Futtaim is a brand name in the Middle East. It is one of the best companies to be working with and building a career. The company has a cultural divert which it has being maintaining professionally. Toyota is a brand which everyone is willing to buy. Al Futtaim offers a number of financial supports for the process of purchasing Toyota cars and SUVs along with other companys vehicles. Weakness: Al Futtaim is a company lead by a single owner. And has most of the local population as the higher management. Hence the conflict of interest may arise. At recent times, there were some quality issues with Toyota vehicles and company had to recall some of them. It is a difficult task to rebuild the trust that the people have in the Toyota cars. Opportunities: The Economic trend has not affected the purchasing power of the resident of UAE but since the end of 2013 and the coming years the economic conditions are said to improve and hence this may increase the demand in the market for Toyota vehicles

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Given the weather conditions in the UAE, Most of the cars fail to keep up in the harsh conditions. The only Automobile that sustains is the Toyota. Hence this can be used to gain more of the market share in UAE. Added to this Toyota has a number of Light vehicle cars and SUVs which are budget oriented and the purchase process is very much easier. Threats: The near competitors for Toyota are Honda, BMW, GM, KIA, etc in the UAE. Their market share is growing at a very slow pace but this cannot be neglected. New automobile component technologies (more electronic and less mechanical) should have led to new quality systems and far more careful attention to drivers experiences than Toyota provided. Toyota is a brand name that has sustained in the market for years but slowly due to the problems in their quality and technology failure is raising a question to their loyal customers who have been using Toyota cars for generations now.

Web Analysis
1. TOYOTA a) Structure:

HOMEPAGE

GET QUOTE

BOOK A TEST DRIVE

REQUEST BROCHURE

FINANCE

CUSTOMER
CARE

OUR LOCATIONS

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b) Analysis:
1. The webpage design is very attractive and there are no broken links on the website 2. There is no search engine on the website as a result of which visitor cannot look for a specific keyword on the website. 3. It is easy to navigate through the website but there are some oversized pictures that slow down the navigation.

c) Recommendation(s):
1. The Special offers webpage should be more informative and contain all the crucial information about any particular offer or promotional scheme

2. MITSUBISHI a) Structure:

HOMPAGE

COMPANY

FINANCE

SERVICE

PARTS

CONTACT US

LOCATIONS

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b) Analysis:
1. The web design is amazing with good use of fonts. 2. There is a separate column for special offers and promotions. 3. A search engine is present on the homepage where any specific keyword can be entered.

c) Recommendation(s):
1. Search engine should also work on pressing enter apart from a mouse click. 2. Better search results can improve the reliability of the searches made through the search engine.

3. NISSAN a) Structure:

HOMEPAGE

VEHICLES

BUYING

OWNING

CORPORATE INFO

b) Analysis:
1. The web design is not very attractive. 2. The vehicles section is not properly categorized. 3. There is no virtual tour for the cars and some pages take very long to load. 4. The website is not very informative.

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c) Recommendation(s):
1. The web design can be improved and made more attractive. 2. 360 degree view or virtual tour may be introduced in the website.

4. KIA a) Structure:

HOMEPAGE

MODELS

ABOUT KIA

EXPERIENCE KIA

KIA MAGAZINE

SERVICES

b) Analysis:
1. The homepage contains large pictures of various car models.

2. Car wallpapers and screensavers can be download. 3. Local language (Arabic) has also been used in some pictures. 4. KIA Magazine is a unique feature.

c) Recommendation(s):
1. More font colours on the webpages can be used to make it more appealing. 2. Virtual tour can be added to the website.

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Use of Social Media as a promotion tool

1. TOYOTA
a) Facebook: Toyota uses Facebook as a major online promotion tool. Toyota UAE official Facebook page has more than 36,000 likes. There are a lot of online contests in which the fans can participate and win cool prizes and also new offers are also informed through this page. b) Twitter: Toyota UAE is pretty active on this social media as well with more than 1200 tweets and 950 followers. c) You tube: There is an official Toyota UAE channel on You tube with 36 videos, mainly the video commercials.

2. MITSUBISHI
a) Facebook: Mitsubishi UAE is not much active on Facebook and there are only a few fans on this platform. b) Twitter: Mitsubishi UAE is not active on Twitter. c) You tube: There is no official channel of Mitsubishi UAE on You tube.

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3. NISSAN
a) Facebook: There are more than 17,000 likes on the official page and there are commercial videos uploaded on the page which can be watched by the fans. Also, this page maintains a good level of people engagement by asking them about their reviews and opinions on a particular product. Customers complaints can also be lodged through this page which serves as an alternative to the conventional customer care call centers. b) Twitter: It is not much active on Twitter as there are only 670 tweets and 600 followers. c) You tube: There is no official channel for Nissan UAE on You tube.

4. KIA
a) Facebook: The official page on Facebook has more than 197,000 likes. The main theme of the fan page is celebrating Dubai with use of Arabic language along with English so as to focus on the local UAE population. There are not many contests and offers posted on this page but the high quality wallpapers uploaded on this page grab fans attention. b) Twitter: KIA Motors UAE is moderately active on Twitter with 960 tweets and 1100 followers.

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c) You tube: There is an official channel of KIA motors UAE on You tube but it has only 6 videos posted on it.

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