TOYOTA (SOUTH AFRICA) - Innovation Group

THE CLIENT
TOYOTA (SOUTH AFRICA)
CASE STUDY
For 24 consecutive years Toyota has been the largest producer of commercial vehicles in South Africa – the brand
continues to innovate in terms of product and functionality, introducing new ranges and vehicle models on an
ongoing basis.
THE BUSINESS NEED
Toyota South Africa's core business is the manufacture and sale of motor vehicles. Consequently, the brand had
little knowledge or expertise in the warranty arena. Toyota was seeking a valuable addition to its offering that would
ensure that client retention would be easier, and that ongoing sales of Toyota parts and labour would grow.
THE SOLUTION
Innovation Group initially entered into a business partnership with Toyota SA through its Corporate Warranty
Administrators (CWA) division, to provide warranties on its Automark used-vehicle products. Toyota warranties
carry the Automark brand name while CWA provides the warranty booklet (fully aligned with the Toyota brand
identity), the back-up administration service and product training for dealer staff.
From the initial call from the dealer to receive authority for repair by means of an order number, as well as
managing the repair process and then paying the dealer on receipt of invoice, Innovation Group is responsible for
ensuring that Toyota's reputation remains intact, and that customers are content. A similar process is followed on
the extended warranties that CWA provides on Toyota's new vehicles under the ToyotaCare brand.
THE INNOVATION
Innovation Group now administrates approximately 400 new extended warranties per month and some 300 usedvehicle
warranties per month on Toyota's behalf, and this number continues to climb. Through its Corporate
Maintenance Administrators (CMA division), Innovation Group also provides a Toyota-branded service and
maintenance plan for Toyota customers.
All new Toyota vehicles come with a standard 60 month / 90 000 km service plan – which can be upgraded at any
time. The maintenance plan can be purchased as an add-on product from the Toyota dealership. The plan assists
customers in managing vehicle costs and has become a very popular added value sale for Toyota dealers.
Services are arranged via the dealership, which also attains authority to go ahead with the work via a call to the
Innovation Group call centre. The dealer is paid once Innovation Group receives an invoice.
The Innovation Group telesales arm, Calldynamics, adds to the sales funnel on warranty, sales and maintenance
products by conducting outbound sales calls to a database of finance house-generated leads, with the customer
retaining the perception of dealing directly with the brand owner.
© INNOVATION GROUP 2009 1

Service and maintenance
At present, CMA is maintaining approximately 1800 Toyota units with respect to service and maintenance, with a
monthly growth projection of between 200 and 300 vehicles.
THE RETURN
• By outsourcing this area of its business, Toyota has avoided the cost of setting up the necessary systems,
infrastructure and expertise to run the management and administration of these programmes. Toyota has thus
realised savings from the outset.
• Revenue streams are further augmented by the joint (Innovation Group / Toyota) monitoring and management
of a healthy fund. Interest earned is shared, thus encouraging Toyota to be as vigilant about claims payments as
Innovation Group is.
• The Toyota-branded warranty, service or maintenance plans keep customers in the fold. By working with Toyota
dealers, the customer is committed to engaging with the brand for parts and services throughout the
relationship.
• Toyota is able to truly deliver on its brand promise with respect to the quality and longevity of the customer's
relationship with the brand – from the purchase of the vehicle to the end of its life cycle.
© INNOVATION GROUP 2009 2