A Smart Glocalization on Medium Suv Segment in Indonesia

TOYOTA – DAIHATSU Collaboration

“A Smart Glocalization on Medium SUV Segment in Indonesia”

Program Studi Magister Manajemen

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Harindityo Bimo Susanto

NIM. : 0253701408 / 14 / 374470 / PEK / 19741

FAKULTAS EKONOMIKA DAN BISNIS

UNIVERSITAS GADJAH MADA

2014

TOYOTA – DAIHATSU Collaboration on SUV car in Indonesia

“A Smart Glocalization on an Empty Segment”

by : Harindityo Bimo Susanto

Indonesia has a unique culture comparing with other countries. Heterogen culture and many types of road give big influences on automotive design.

Family culture is very strong and this will be big consideration on purchasing a car even in small family. The Indonesian people slogan “Mangan ora mangan sing penting kumpul” is trully affect on their habits. People tend to prepare an accommodation for their family and friends in any situation and occasion.

Indonesia with mostly Muslim people also gives big influences to automotive development in Indonesia. When “Lebaran holiday”, people tends to travel to their village with family. This will be mass travel with long journey to their village. They will passing a lot of road condition such as bumpy, uphill, decline, dirt, and etc.

Flood also become their consideration especially when rain season. Mostly, in rain season, a lot of areas meet a flood season. Even it just 4 years seasonal, customer tends to avoid to have car with low ground clearance. They prefer a higher ground clearance cause of flood and may bad road when rain comes.

The biggest customer segment is in 100-200 mio IDR. This segment is middle low class segment in Indonesia with monthly revenue around 5 – 15 million IDR. This is customer with budget barrier and all their consideration will be converted in money, so they will prefer on efficient fuel consumption and can accommodate subsidize gasoline in Indonesia (Ron 88).

Even though Indonesia customer is categorized on budget customer, their pride is high. They want a car that can take them to “party” and can take them in higher level of social life status. So material should be in low cost but design should be in nice looks.

With above consideration, to win in Indonesia market, Toyota as automaker in Indonesia needs to accommodate their customer needs. Even Toyota has a global car types but it should be adjust trough glocalization to accommodate Indonesian customer needs and culture. Toyota face a barrier on this segment, Toyota didn’t have a model to accommodate this low price segment. To implement this glocalization, Toyota engage Daihatsu (as Toyota sister brand) to create a collaboration model for this segment. The result is, Toyota-Daihatsu collaboration can generate Rush – Terios (a Baby Fortuner) model at December 2006. This Rush – Terios model can accommodate Indonesian customer’s needs trough: