Marketing Strategies: Toyota
Student’s Name
Institution Affiliation
Course name
Instructor’s name
Date
Contents
Company Overview……………………………………………………………..2
Target Market…………………………………………………………………….3
Current Marketing Overview…………………………………………………….4
Brand Personality…………………………………………………………………5
Perceptual Map……………………………………………………………………6
Marketing Suggestions……………………………………………………………7
References…………………………………………………………………………8
- Company Overview (Page 2, 5 points)-Pending from Group
- Target Market-Pending from Group
- Current Marketing Overview (Page 4, 15 points)-Pending from Group
- Brand Personality (Page 5, 15 points) -Pending from Group
- Perceptual Map (Page 6, 20 points)-Pending from Group
Company Overview
Toyota is a multinational car and motor corporation with headquarters in Japan. The company has emerged to be a pioneer corporation in producing and manufacturing quality automobiles (Madoh et al. 2019). Its position in the automobile industry requires proper marketing strategies to sustain and improve its marketing performance at the local and global levels.
Marketing Strategies for Toyota
The Company Should Reform Its Cost and Business Structure (Cost-Benefit Analysis).
Reforming the cost and business strategy will enable the company to solidify its geographical management and respond quickly to market changes (Madoh et al. 2019). Specifically, the company can adopt a streamlined management structure by reducing fixed costs to enhance its existing businesses in developed countries.
There are some critical things about the automotive industry which are worth looking at. One example is Frames. There is an awful lot of investment in the facilities to manufacture the frames of automobiles. Frames are usually shared among multiple cars in a manufacturer’s lineup because they are expensive, and it’s an excellent way to economize. Electric vehicles have fundamentally different characteristics, which means that the reuse of existing frames leads to relatively sub-optimal outcomes in terms of performance and range. This means that a new framework must be designed and built from the ground up for electric vehicles. This clogs up the cost-benefit analysis spreadsheets of traditional automakers as they are comparing reuse of a frame for a new model of an electric car such as the Prius.
Body panels are another cost benefit that can be adjusted. Similar challenges exist for body panels, but this is a lesser concern overall. Body panels are essentially more cosmetic, and slightly more interchangeable than frames. However, a new model of an existing line of cars will reuse the vast majority of body panels. At the same time, an electric vehicle with its different space configurations typically gets a whole new set of body panels, or once again, crappy range and performance.
Suppliers can also help cut costs. Never underestimate the conservatism of large bureaucracies and supply chains. Electric cars have two orders of magnitude fewer moving parts and an order of magnitude fewer parts in general. Vast swathes of suppliers simply don’t build components that E.V.s require, and a lot fewer suppliers are needed. Executives of car companies and suppliers know one another well, the companies have business ties and finding new suppliers costs money and has risks.
Big chunks of manufacturers are devoted to the engines of ICE vehicles. Designing them, manufactured them, assembled them, shipping them, marketing them, and designing cars around their characteristics and requirements. If you change the engine to an electric motor, you pretty much rip the guts out of an automotive manufacturer, relegating executives, senior engineers, managers, and a big chunk of the organization obsolete. The inherent conservatism of ICE manufacturers is hard to overstate on this point.
The Company Should Focus On Strengthening Its Local Brand (Course Concept-Brand Awareness)
Lexus is becoming a valuable brand in the Chinese market. Prioritizing the Lexus brand will improve its brand competitiveness, especially in the luxury segment. By increasing its production across Asia, Toyota will have cheap delivery channels and draw closer to the emerging consumer market (Toma & Naruo, 2017). The company should also scrap its middle management to enable its engineers to gain authority to assess brand preferences in terms of new car models and designs.
The Company Should Invest in Emerging Markets (Course Concept – Market Segmentation)
The company has less marketing investments in emerging countries with a high preference for luxury cars. The company should explore these emerging markets by monitoring and assessing their market situation (Toma & Naruo, 2017). They can focus on specific regions that introduce automobile products that suit the characteristics of consumers’ needs in such areas (Madoh et al. 2019). Through this strategy, Toyota can optimize and expand its products and improve its delivery chain. It will also enhance its value chain in the global market.
A big benefactor of low-interest rates has been emerging markets. With near-zero interest rates, investors and companies are looking for yield, and emerging markets have provided that opportunity. A lot of capital has flowed into Emerging Market countries and securities over the past 10–15 years. There have been a few bumps along the way, but the amount of foreign investment going into E.M. has been tremendous. The classic “trade” has been borrowing money in the U.S. and investing in E.M. debt and making money on the spread. As long as interest rates are low, this has been lucrative, but now the game has changed in that the U.S. prices are tracking up. As yield goes up in the West, there is a potential for investors to sell their E.M. assets and bring money back west. A few years ago, when the Federal Reserve mused out loud about starting to increase interest rates, E.M. stocks got killed. So now we’re in that situation. Could this happen? That’s the question you need to figure out. If interest rates continue to track, what is the chain of events that could occur? If interest rates stay at current levels, what then? One of the things I have learned in my investing courses is mind mapping these scenarios and using them to plan out potential impacts on stock prices. In the end, investing is about making educated guesses. No one can predict the future.
Marketing Overview (Toyota’s Marketing Mix)
(Page 4, 15 points) What is the company currently doing for its marketing? What mediums does it use? Radio? Social media? What messaging and unique selling propositions does it apply to attract its target customers? It is acceptable in this section to include images and or examples of current marketing examples.
When it comes to Toyota’s marketing, they are a bit different from other companies, but the company is highly effective with their message. Kiichhiro Toyada was the gentleman who first discovered Toyota and viewed marketing as a critical tool to build a successful business. Shotaro Kamiya was the first president of Toyota Motor Sales Co., Ltd, in which he assisted Kiichhiro with implementing effective business techniques to speak to the consumer. Kamiya was so severe when it came to marketing that he stated throughout the company, “The priority in receiving benefits from automobile sales should be in the order of the customer, then the car dealer, and the maker. This attitude is the best approach to winning the trust of customers and dealers and ultimately brings growth to the manufacturer.”
Toyota, however, was not always been the largest spender when it came to advertisements. They have in recent years become one of the top ten biggest advertising spenders in the U.S. “The company spent 435 billion Japanese yen, or 1.6% of its revenues, on advertising and sales promotions during fiscal 2015. These advertising and sales promotion activities focus on traditional advertising channels, including print and electronic media, as well as outdoor advertising.” (Parashar, 2017).
See, the company Toyota is quite smart. Rather than being like other automakers such as General Motors, Fiat Chrysler (FCAU), and Ford Motor Company in dispersing their funds towards traditional advertising expenses, Toyota uses its racing team, Scuderia Ferrari, as a medium to promote its luxury brand. This is highly effective since a Ferrari will grab anyone’s attention even if they may not be huge into cars.
What’s interesting is after World War II, the majority of Japanese companies, including automakers, were facing challenges and struggling to survive. At the time, a sharp decline in auto demand and the high costs of production haunted automakers, including Toyota.
Toyota began to innovate their marketing techniques to increase their sales. The Just-in-Time (JIT) method was established in 1938, and Toyota was genuinely eager to examine and stretch the true potential of this strategy. According to Toyota, the Transaction Processing System (TPS) has evolved through many years of trial and error to improve efficiency based on the Just-in-Time concept developed by Kiichiro Toyoda, the founder of Toyota.” Additionally, a former Toyota vice president, Taiichi Ohno, is also associated with TPS. Ohno helped Toyota in creating the basic framework for the JIT method.
Toyota’s promotion strategy covers all the tactics of marketing communications. This element of the marketing mix pertains to how the firm communicates with the target market. Toyota uses the following promotion activities, arranged according to significance:
- Personal selling
- Advertising
- Public relations
- Sales promotion
- Direct selling
Toyota demonstrates personal selling with their dealerships, which is advocated through its sales personnel. “The company also uses advertising on various media, such as T.V., Besides, and websites. In addition, the firm promotes its products through public relations, such as the Toyota Together Green program that supports environmental initiatives, and the Meal Per Hour program that donates food to Food Bank. These public relations activities create a positive brand image for occasional the other hand; infrequent sales promotion is used through special deals. Also, the company sometimes uses direct selling for corporate clients. This part of Toyota’s marketing mix indicates that the company has a comprehensive strategy for promoting its business and products.” (Rowland, 2015).
Perceptual Map
Toyota Motor Cooperation
Toyota can produce cars with efficiency and cost. This is possible due to its production system that has helped the company to achieve this. Even though automakers must minimize the costs, it is also essential that automakers pay attention to the marketing strategy to meet the expectations of their clients.
Toyota Marketing Strategy
since the company was established the founder, viewed marketing as one of the essential tools in the success of the business’ stated that the priority that benefits from the automobiles should be It is received should be in the order of the customer than to the car dealer and then to the dealer. It is due to this attitude that the trust of the customer is one of the best approaches. As a result, the manufacturer has growth.
Toyota Pricing Strategy
Toyota has been able to main not only quality but also prices that are affordable in all of its vehicles. The low interest on its customers and also making profit through credit payments. Its marketing strategy is usually based on competition, demand, and strategy. The changing marketing conditions also affect the price. Profits which Toyota get is due to its pricing and features
Dealers Network
Toyota network is composed of 280 dealers operating services and sales in the outlets of Japan. Out of the two hundred and eighty dealers, the company owns fifteen dealerships in which the others are independent. The company can maintain a large dealership in Japan, which consists of four channels of sale, which include Netz, Corolla, Toyopet, and Toyota. The vast network has made the company more popular in the industry. The company uses the dealership outlets for its product’s distribution, which enables them to reach the maximum customers in the market. For distribution purposes, the company organizes special events, exhibition centers, and showrooms, which are also used for marketing the brand. The staffs used in the sales outlets are highly skilled in financing, order taking, data collection, product information, and sales.
Toyota Promotion and Advertising
The Toyota company has also invested much of its revenues on advertising and the sales promotion of their products. Among the other products i.e., the automakers, Toyota Motors has spent a significant budget on traditional advertising methods. The company also puts more of its focus on marketing communication to increase the volume of sales. Their strategy of promotion in the marketing mix is to maintain and reach out to the brand’s extensive and broad reach. Their advertising involves personal selling where the staff promotes their products by advertising by use of televisions, radio, billboards, social media platforms, and newspapers. Toyota company use slogans that are catchy for its brands and may also use celebrities brand ambassadors to create a recall of brand for its customers. They also organize for a contest for dream car awards for children holding musicians, motorsports, and sports sponsorship, among others all over the world. They also conduct motor shows.
References
Madoh, A., Alenazi, J., Alkhamees, L., & Panwar, A. (2019). Case Study on Market Mix Strategies of Toyota Motor Corporation. Asia Pacific Journal of Management and Education, 2(3), 70-78.
Parashar, J. (2016, May 27). Understanding Toyota’s Marketing Strategy – Market Realist. Market Realist. https://marketrealist.com/2016/05/understanding-toyotas-marketing-strategy/(N.d.).
Rowland, C. (2015, September 25). Toyota’s Marketing Mix (4Ps) Analysis – Panmore Institute. Panmore Institute. http://panmore.com/toyota-marketing-mix-4ps-analysis#:~:text=Toyota%20uses%20personal%20selling%20through,TV%2C%20newspapers%2C%20and%20websites. (N.d.).
Toma, S. G., & Naruo, S. (2017). Total quality management and business excellence: the best practices at Toyota Motor Corporation. Amfiteatru Economic Journal, 19(45), 566-580.