Marketing Strategy Toyota Essay Example

reputation. While Toast's strategy includes some focus on discounts, it primarily compares itself to reliability-focused companies like Honda.

Distinctive Competencies of Product

Toyota has three distinct competencies that attract consumers, build trust, and contribute to customer satisfaction. Firstly, Toyota is renowned for its "popular economy car" concept, which they have successfully sold to consumers. They are also proficient at segmenting, targeting, and positioning their market. Secondly, Toyota continually enhances their design, comfort, fuel efficiency, and technological advancements. Lastly, Toyota's cars are characterized by their low maintenance and operating costs.

The reason why consumers purchase Toyota is because of this.

Strategic Business

Toyota has recently launched a collection of environmentally friendly vehicles such as energy-efficient cars, Subs, Vans, hybrids, and trucks that prioritize safety and comfort. Toyota offers more than twenty diverse car models that are sold in over 20 countries worldwide, making them internationally acclaimed. With a dedication to research and development, Toyota aims to tackle environmental issues while promoting safety and energy efficiency. They demonstrate this commitment through the expansion of their hybrid car lineup.

Furthermore, Toyota is also adapting to the changing energy landscape. In 2007, Toyota introduced a flex fuel vehicle in the Brazilian market that can run on 100% bio-ethanol fuel. Toyota is committed to developing environmentally friendly technology and vehicles in response to infrastructure and customer demands. Additionally, Toyota has established production centers globally to share its manufacturing knowledge and skills with the rest of the world, keeping up with the rapid growth of overseas manufacturing.

Developing a Strategic Focus

Toyota has successfully implemented differentiation as a major strategy for market penetration, using a pricing mechanism that

gives them a competitive advantage. Despite high production costs, they offset it through mass production to ensure overall costs do not hinder them. This allows Toyota to offer products at lower prices while maintaining profitability. Toyota utilizes this advantage to enter emerging markets with affordable products. To better segment and target its market, Toyota follows the philosophy of providing the right car in the right place by employing both behavioral and cryptographic approaches to segmentation. While their market consists of all countries worldwide, they also identify specific focused markets such as the US, Canada, China, India, and Indonesia. Each product from Toyota is designed to meet the needs of a specific target market considering factors like speed, capacity, color and shape (Thomas, 2001).

Toyota focuses on their target market by considering factors such as income level, gender, life cycle stage, needs, and desires. They offer a range of product attributes to appeal to different age groups and professional groups. For instance, they have small, two-seat models for younger and single individuals who are adventurous, as well as big five-seat models for families. In addition, Toyota has introduced the environmentally friendly car - Pries - specifically aimed at environmentally conscious individuals. Therefore, Toyota tailors their products to cater to diverse customer preferences.

Toast's marketing strategy is built around segmentation, targeting, and positioning, which is driven by the product attributes and range of offers (Oil Meredith G. , Paul N. Bloom, 2004). Moreover, Toyota develops its market strategy by considering customer needs and desires at various global, regional, and national levels. All the cars produced by Toast prioritize comfort, kindness, and excitement. The key to successfully

designing segmentation and targeting lies in conducting analysis that takes into account market conditions, economic factors, purchasing power, and consumer preferences.

The target audience for Pries includes environmentally sensitive consumers, as well as those who prioritize gas efficiency and safety. In contrast, Toyota Lexus focuses on luxury users and individuals with a higher social status who value comfort. Toyota's analysis takes into account market conditions, the economy, purchasing power, and consumer preferences. Using these factors, Toyota has implemented a global modernization strategy with cutting-edge technology.

Toyota has employed an effective promotional strategy known as integrated market communication (MIMIC) tool. Additionally, Toast's blog has proven to be a successful advertising and promotion mechanism, as it emphasizes consumer feedback and responses to inquiries.

Portfolio

According to the Boston Matrix, Toast's market situation is considered "Healthy" as Campy, Pries, and Corolla all fit into the Star category. These three products have established a strong presence in the market, boasting high market share and experiencing significant growth. This exciting growth also presents various opportunities for future success.

Elements of Market Planning

Toast's ability to maintain productivity efficiency and good quality is attributed to its internal environment. The production team plays a crucial role in enhancing the efficiency and effectiveness of manufacturing operations. Strengths and weaknesses are internal factors of the organization, while opportunities and threats are external factors that impact or originate from outside the organization.

Strengths

Toyota has established a strong global reputation and brand image for quality.

Toyota is well-known for its environmental-friendly and customized range of vehicles, which instills consumer confidence in the brand. Additionally, Toyota's high financial strength enables them to

engage in various activities such as innovation and extensive research and development to produce better cars (Marketing Teacher, 2011). Furthermore, Toyota has implemented both the "Lean Manufacturing System" and the "Just In Time System (JIT)," which have contributed to its reputation as a significant player in the marketing field, studied worldwide.

In conclusion, Toyota has additional strengths in customer service, which include online booking for test drives, safety alerts, and customer relationship management (Marketing Teacher, 2011).

Weaknesses

Toast's primary image is that of a Japanese car manufacturer. Despite having production plants in Thailand, it is often perceived as a foreign importer. The company has faced criticism for a significant recall in 2005, which was triggered by quality issues. Moreover, Toyota primarily targets the US and Japan markets, making it vulnerable to economic and political fluctuations in these two regions.

Toyota must continue producing cars to maintain its operational efficiency. This requires investing more in fixed costs and expensive labor training and retention. However, this may result in overcapacity if the market experiences a downturn. Additionally, Toyota faces capacity weaknesses compared to its competitors who strategically produce cars worldwide and benefit from global efficiency gains (Anton', 2011).

Opportunities

Toyota has implemented three crucial aspects in its market planning: green practices, safety measures, and low operating costs.

Toyota has successfully seized the market opportunity by focusing on three key factors. With the advancement of technology, the company has built a reputation for manufacturing eco-friendly vehicles like the Pries to meet the market demand. Toyota's innovative hybrid and fuel-efficient cars not only contribute to society but also help protect the environment, especially with increasing petrol prices.

Additionally, Toyota also generates job opportunities through their auto recycling system (Anton', 2011).

Toyota's advantage in the market is a result of their exceptional product features and advanced technology, which sets them apart from their rivals. Despite declining performance by other companies, Toyota has managed to expand their market share significantly. A crucial element that has contributed to their success is being the pioneer in introducing hybrid vehicles, which has greatly boosted the demand for their hybrid cars among consumers.

Competitor's hybrid products are unsuccessful.

Treats

Toyota, like other car manufacturers, faces the possibility of product recalls. The company also deals with competition in the automobile market from emerging players in China and South Korea, as well as new plants in Eastern Europe. Additionally, Toyota is affected by rising costs of raw materials such as rubber, steel, and fuel, leading to increased prices for their finished products. Consequently, this may make it difficult for consumers to afford the higher prices (Marketing Teacher, 2011).

According to environmentalists, the green movement is often seen as a temporary trend because environmentally friendly products can be costly. This is due to technological advancements and product development. Nonetheless, there are consumers who are willing to pay more for these products in order to demonstrate their support for the environment. Toyota is currently encountering various obstacles such as environmental regulations, worries about carbon emissions, and worldwide focus on protecting the environment (Toyota Motor Corporation, 2011).

Market Program

Product Strategy

Toyota is known for its strategy of mass production, which has allowed it to establish a strong presence in the global market.

Furthermore, Toyota is also concerned with the

strategy of hybrid products. If the demand for hybrid products in the market increases, Toyota can double its production of hybrid products to meet the growing need.

Price Strategy

Toyota has established a solid brand and reputation through manufacturing affordable, high-quality vehicles. They differentiate themselves from rivals by implementing intelligent pricing methods such as price differentiation. The effectiveness of this pricing strategy has been demonstrated.

Toyota firmly believes that the act of purchasing is essential for guaranteeing the continuous manufacturing of top-notch products at the most affordable price, all while upholding speed and efficiency.

Location Strategy

Toyota is a global leader in manufacturing and supplying automobiles and components. They aim to achieve a market share of approximately 35% in the next three years, aspiring to be the top supplier of automobile products worldwide.

Toyota's marketing strategy focuses on maintaining customer connectivity and overcoming distance barriers. They also aim to improve product availability and gain a competitive advantage over their main competitors through strategic pricing. Ultimately, Toyota aims to capture market share and establish themselves as a top player in the market.

Toyota is also capitalizing on technological advancements by promoting them through various methods such as emails, web banners, and high-end internet sites.

PART 2

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Toyota, the world's leading automobile manufacturer, has the following objectives and goals (SMART). In order to benefit the organization, Toyota should consider the following recommendations: taking advantage of their large size to effectively meet the demands of the growing consumer population in need of cars.

Toyota's goal should be to fulfill and satisfy customer needs, positioning their brand as the preferred choice for consumers. The

considerable capacity of Toyota proves advantageous for the company as it serves the expanding industry and addresses the ever-growing demand for cars. Consequently, this generates a broader market for Toyota. Furthermore, customers acknowledge the significance of owning a car due to their escalating travel requirements (Dobbin, 2002, p. 41). To ensure ongoing consumer loyalty, Toyota must consistently enhance product quality and prioritize it over mere price increases.

It is crucial to emphasize that offering affordable high-quality products can incentivize consumers to repeatedly buy Toyota products. This will allow consumers to comprehend the genuine significance of Toast's historical, current, and future presence (Armstrong & Kettle, 2003). At present, Toyota is focusing on developing fewer platforms for assembling their different models. This cost-saving initiative aims to decrease the number of platforms from 20 to ten in a bold endeavor. This becomes especially noteworthy when considering the progress made by GM and Ford, Toyota's primary competitors, in terms of reducing costs.

Toyota is considering reducing its bloated assembly points to improve efficiency (Mullions, walker ; Boyd, 2010). In terms of sales, the authors recommend that Toyota should clearly communicate their societal care and concern, such as by disclosing the amount they contribute to donations and charity from their profits. This strategy could attract consumers who are socially conscious and passionate about philanthropy, making Toyota their top choice when purchasing a car.

The Author proposes that Toyota should offer their hybrid fuel-saving vehicle in multiple versions, each with unique characteristics and prices, to accommodate consumers of all income levels. It is crucial to acknowledge that there are individuals who are interested in Toyota products but unable to

afford them due to financial limitations. Although Toyota has already made strides towards environmental preservation by launching the hybrid car - Toyota Prius - in late April, its cost remains prohibitive for numerous potential customers.

To engage more users and drive Toyota's product, it may be necessary for Toyota to consider offering lower-priced car models.

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Toyota must address the issue of cultural differences between Western and Asian companies as they expand worldwide. To tackle this challenge, the author suggests providing training to American executives at Toyota, which is a high-context company like Japan. This training will help them grasp the cultural discrepancies between the two countries and gain a deeper understanding of Japan's collective culture and other Asian cultures.

Toyota's global business presence has led to varying perspectives on design and manufacturing processes at different Toyota subsidiaries. Effective communication among executives from these different locations is crucial for the organization's success. To address this issue, Toyota can conduct electronic meetings to facilitate discussion and idea sharing, ultimately arriving at the best possible solutions. Another approach could involve sending managers and engineers to each subsidiary or promoting interchange between them, ensuring familiarity with design and incorporating necessary changes to maintain consistency across the organization.

The Author suggests that Toyota should consider entering new markets in Asia, such as China and Europe, by establishing manufacturing plants. Presently, Toyota primarily focuses on the Japanese and American markets and it is essential to develop strategies to expand into other markets. This approach would also help to decrease operating costs in Asian countries. Toyota utilizes its strengths and opportunities to gain a competitive advantage in the automobile

industry. They currently employ a differentiated product line to enhance their global presence.

Toyota should enhance its competitive advantage by utilizing advanced technology in response to the rising fuel prices. When consumers buy a new car, they are always concerned about fuel efficiency, emissions, recyclability, and the cost reduction of hybrid vehicles and next-generation fuel cells. The author recommends that Toyota should invest in and improve hybrid technology in all models of Toyota cars. Toyota's marketing strategy primarily emphasizes reliability rather than discounts, promotions, or pricing strategies.

The author recommends that Toyota should increase its promotion and sales activities during festival or celebration periods, similar to what their competitors do. Additionally, Toyota should focus on providing a basic mode of transportation that is affordable and efficient for lower income groups. According to Toyota (2011), human resources play a crucial role in Toyota's strategies, and the company should consistently maintain highly motivated staff to ensure good production.

Toyota can motivate staff by implementing rewarding schemes such as offering subsidized car ownership. Additionally, the company should prioritize technical expertise among its personnel and regularly provide training opportunities. Toyota should also address inconsistencies in pricing strategies, specifically in different regions. For example, the price of Toyota Yards differs significantly between Ireland and Germany, with the German market offering a 3000 euro discount compared to Ireland.

The difference in purchasing power between Germany and Ireland is clearly noticeable. Germany, a prominent country in the European Union and globally, has high purchasing power for its consumers. However, Ireland's consumers are not at the same level as their German counterparts due to an ongoing economic crisis. Similarly, South Africa experiences a

comparable situation but to a greater extent. The cost of the Toyota Yards is 7000 euros more expensive in South Africa than in Germany, which makes it too costly for most South Africans to afford. Consequently, Toyota is focusing its sales efforts on attracting a wealthy minority for car purchases.

Despite lacking a distinctive brand image, this weakness of Toast is expected to be resolved over time through the success of Lexus. As Toast expands into new markets, it should prioritize quality control in its localization efforts. While the organization cannot control macro factors that may impact it at any time, as a large organization, Toyota is anticipated to have sufficient reserves to handle any such situation. The implementation of Toast's hybrid technology has required a significant investment from the company. Now it is crucial for them to capitalize on this expense.