Toyota Motor Corporation Marketing Strategies
1.0 Executive Summary
This is a paper which is aimed at analyzing the set marketing objectives of the Toyota Motor Company and creating recommendations of the viable ventures to take consideration of when operating the organisation. There was a detailed stating of the objectives of the strategies to be considered. The objectives highlighted would lead to an effective marketing plan and consequently lead to the marketing strategy. The company profile of the organisation gave an extensive and in depth look at the company’s history, statue at the world market, the executive structure, and the business standings. The global strategies gave the strategies or techniques applied in the attempt to maintain or improve its world statue. I later had an extensive view at the environmental factors that affect the Toyota Motor Company, both the internal and external environment. They may be governmental factors, climate change, social or cultural factors, technological trends. Later I looked at the company analysis and its competitive advantage alongside other parties in the world arena.
The target market is the most important aspect of an organisation that aims to advance itself; there are several instances of targets being looked at by the Toyota Motor Company; the women, the disabled, the youth among others. I finally ended by giving recommendations on the relevant areas to be considered for advancement of the company. The recommendations are made in reference to the analysis made in the strategies and the environmental factors looked at initially.
They intended to carry out an analysis of the market strategies applied by the Toyota Motor Company taking into consideration its undertakings in the market ability, its manufacturing processes, the executive background, the product itself or otherwise the vehicle quality. The areas found to have possibility of advancement to much better success opportunity are to be ultimately recommended. They were to take into consideration the market trend; the price of the products, the location of the organisation and the product itself. Developing a marketing strategy without a marketing plan is a blinded plan with no head way. The objectives created will help advance the marketing plan and hence the marketing strategy is brought to play.
The marketing strategy and analysis of the Toyota Motor Company is an important tool for the top-level company data and information. The company was established in 1937 in Japan. The Toyota became the best seller in the 70s in the US, in the 80s it began selling manufactured vehicles in the US, in 2006 it became the second biggest seller and third in the world. The success attributed to the Toyota Company is due to the exemplary market strategy applied (Thomas 2001). The Toyota Company makes believe the importance of a good marketing strategy for a stable and strong market leader.
3.0 Situation Analysis
The Toyota’s ability to be and remain as one of the world’s biggest car manufacturer and seller is attributed to a number of things in its internal environment. This may be expounded on as more importantly the able leadership it has acquired. The management team is one of the world’s best and it is what pushes a company to the top. The situation analysis of the Toyota Company is more effectively brought out clearly in the in-depth look at the SWOT is preferable. The SWOT mainly looks at the company’s relevantly strong areas, and then looks at its weakness as there is no company no matter its stature in the society that has no weak areas that try to drag down the company. The opportunities available to advance the company to greater and more profitable stature, the opportunities may be provided by the company itself, the competitors or even the location of the business. Finally, there are certain threats that aim to pull down the company to its knees and are what gives the company sleepless nights. The top leadership works out to evade the threats or reduce them but is rarely done away with completely.
Objectives for the marketing plans to be developed are to be aimed at solving several issues as stated here; to provide a clean and pollution free environment if not to reduce the carbon placed in the atmosphere by vehicles. Vehicles are known to pollute the air with the emissions attributed to it, measures to reduce it are hence important. There is also an aim to reduce the impact (distortion) caused to the vehicle or otherwise, the damaged attributed to the vehicle is considered for reduction to a minimum. Toyota, as the world’s leading car producer and seller also aims to train the users of its car with the sole aim to reduce accidents on the road.
3.2 Company Profile
Toyota Motor Corporation is company that is based in Japan mostly deals in automobile and financial business. It is the world’s largest automotive manufacturer or otherwise stated as “The biggest automobile-manufacturer” (Toyota-Global 2011). The designs and manufacture of diverse products vary from subcompacts to luxury and sport vehicles to SUVs, trucks, buses and minivans. The vehicles are manufactured by combustion or hybrid engines. The subsidiaries to this company do manufacture vehicles. The automotive parts for Toyota are made by Toyota itself in addition to sale to other customers. There are three segments that are applied in this company’s undertaking; they are the automobile segment, financial segment and other segments. The automobile segment is mainly involved in the design, manufacture and the sale of cars incorporation with passenger cars, minivans and trucks in addition to their accessories. The financial segment caters for the financial services of the company’s sale in the products in addition to the lease of vehicles and equipment. The other segment is committed to the design, manufacture and sale of housings in addition to information and communication business. There are several famous models: Camry, Corolla, Tundra truck, Land Cruiser and Lexus. Asia provides 40% of the total sales made by the company.
The company has an able executive platform consisting of chairman and representative director, vice chairman, president, an executive vice president, senior managing directors, directors, corporate auditors and managing officers.
3.2.1 Business Results
TM Company Name Price Change
7203 Toyota Motor Corporation (ADR) 77.64 -0.24
NSANY Nissan Motor Co., Ltd… 3,240 -30
F Ford Motor Company 17 0
HMC HONDA MOTOR CO., LTD 14.71 -0.10
GM General Motors Company 35.96 0.70
DDAIF Daimler AG (USA) 30.24 -0.34
TSLAT Tesla Motors Inc. 71.59 -1.08
3.2.2. Sales Results
TM Company Name Price Change
7203 Toyota Motor Corporation (ADR) 77.64 -0.24
NSANY Nissan Motor Co., Ltd… 3,240 -30
F Ford Motor Company 17 0
HMC HONDA MOTOR CO., LTD 14.71 -0.10
The Toyota Company has a group called the Toyota group which incorporates several companies that were established in different years and perform different activities an example is; the Toyota industries corporation that manufactures and sells spinning and weaving machines, the Aichi Steel Corporation that handles steel products, the Aisin Seiki Co., Ltd which handles auto parts and household appliances among several others.
The company has a wide range of design and R&D which is located abroad from the U.S.A to Belgium. There is the Japanese production site which has the manufacturing plants which is located in the Toyota city. There is also the plant tour & Toyota Kaikan Museum which do provide touring opportunities. There are also worldwide operations performing the manufacturing activities in their various countries. Among several other manufacturing opportunities.
Due to the 2007 financial crisis, the Toyota Motor Company is no longer the leading motor company in the sales there have been several recalls made to the products and the unreliability of the products produced, but otherwise steps have been made to try and return the company back to its initial statue as a force worth looking at as a threat to competitors and reliable for customers.
3.3 Environmental factors impacting the organisation
3.3.1 Internal Environment
The internal environment of a company focuses more on the components within the organisation. It involves areas like the structure of the company, prevailing culture, policies advanced on the human basis with the processes, the skills and experiences of the employees among others.
3.3.2 External Environment
On the external environment issues of considerations are the customers who are the main users and promoters of the product produced. Competitors are also the part of the external environment who keeps the company on toes with the continued development of its products to be able to challenge the competing companies. The economy also has a bearing on the company in that with its decline, customers lack the resources to purchase the products produced hence leads to a decline in the commodities purchased, otherwise a loss incurred in a stable economy, customers or users of the products have enough money to be able to purchase the products leading to the advancement of the company profit wise. Technological wise is the key to the success of the company as it is and helps to maintain the standards of the company or even better elevating the standards of the organisation to world standard statue. There are several technologies that are advanced to try and uphold the operations of the company.
Technology is a critical tool in the Toyota Corporation. It is a supporting and enables the procedures involved in the business. Technology in the Toyota Company helps to do away with waste and otherwise elevate the production of the vehicles. Behind the technology are information systems; Just-in-time which is a quite complex supply chain system used by suppliers to ensure timely arrival of the parts. An example is when there is a departure of a car from the paint shop, the system sends to the supplier an electronic message giving the specification of the seats needed and in the manner wanted, such instructions are availed by the Toyota’s proprietary Assembly Line Control System (ALCS) software.
Still on technology there is the Jidoka, as the production process continues, there are times when there is a stoppage to try and correct any errors. Such stages can be manual or otherwise be softwares with alert operators to problems detected. Kaizen is a tool used for the continuous development of the product it is aimed at adding value to the product. It aims at to evade the wastage of time by workers going to get the tool and correct the state. Andon is a visual tool normally used by the managers to tell him whether the process of car production is moving on smoothly or there are issues to be addressed, hence acted upon on occurrence, such tools any include; plasma screens, electronic dashboards and overhead displays. The Poka Yoke is cheap device that one depend on to help detect defects in the operations of the product, it may be applied to use as a tool holder with a sensor or otherwise a light signal which is send to a computer whenever there is an interruption detected which is send to the computer or an interruption in the stream used to send the light signal. Toyota applies the use of SQL server, Oracle, Dell servers and Citrix for remote access in addition to Blackberry for messaging and Weblogic from the BEA Systems.
3.3.4 Governmental Regulations
There are also the governmental operations that affect the operations of the production process. The situations where there are changes in the laws, regulations and governmental policies have a bearing in the operations of the company, more so the laws or regulations that relate to the trade industry, protection of the environment, emissions of the automobile, fuel economy and the car safety in addition to the laws and regulations affecting the litigation results and other legal matters (Toyota-Global 2011). Any form of political instability has a huge bearing on the outcome of the market industry. Its instability tends to make customers to shy away from such places and go for other more stable countries leading to a loss on the part of the company and the country too.
3.3.5 Social and cultural changes
Toyota has most definitely created a brand equity and name since its creation, its marketing strategies and aspects are based on the mission statement of the corporate: “Stable long-term growth, while striving for harmony with people, society and the environment”. The reason why Toyota Company has put forth its several manufacturing companies all over the world in its target market makes the locals feel that they are not buying a foreign product. An American buying a Chevrolet does not feel more un-American from buying this product. Toyota’s cultural awareness in relation to social, political, economic and environmental matters has made it rise above brand equity and made the global marketing of the products to be profitable and a success. Business done in a community also strengthens the communities and leads to the enrichment of the community members.
The Toyota Corporate has established several aspects that are aimed at reducing its impact to the environment. Several operations have been taken to reduce the effect on the climatic change and biodiversity. Toyota Company aims to coexist with the environment considering that it is the emission, which is carbon in nature, which is produced by the vehicles that have adverse effect to the environment; plants die, and spread the same poisonous gas to the aquatic plants.
3.3.7 Business Partners
Business partners may be considered as the agencies or sectors that help to advance the Toyota Company. They are create benefits to the Company itself as they help to gain from the measures to be taken as the issuance of equipments, loans or professional advice. Such partners are the suppliers of the various components or spare parts and dealers. They create a sense of mutual trust and relationship. Partners are carefully selected as they can lead to the development or the destruction of a business. Competitors may also be considered as business partners in a different way in that they help to keep a company on its toes. Any form of weakness in a company is carefully evaluated on how to create an advantage out of the situation. Competitors even though not liked they create a healthy competition in the quality of the product.
3.4 SWOT Analysis
The strength of the Toyota Company is in its reputation for quality. The quality of products created by the Toyota Corporation is of high quality, customers as a result continue to purchase the products as it is reliable, and dependable. The money which would otherwise be used on repairing the vehicle creates an important investment for customers. In 2007, Toyota was the leading car maker in the world with a market share index of 16% which continued to advance in 2008. “In the year through March 2008, Toyota sold 8.9 million vehicles, an increase of 32% over five years, while its net profits rose 53%, to $17 billion,” (Kranish).
The weakness associated with Toyota is that it does not have a strong identity considering its identity just as a blogger stated that Toyota is not a brand builder but a bland builder (Leikanger). The only consideration given to the product is the issuance of the product to the customers but none is given to the intrinsic value attributed to the vehicles. The release of the Scion by the Toyota put forth a key issue whereby there was criticism considering the advancement of a brand that is not of any benefit. The beneficial is advanced by the advancement of a strong culture.
In the consideration of opportunities there are two aspects considered. It has a hybrid which was advanced way ahead of the competitors. Toyota was able to develop its brand in a new business environment where the customers of the products are eco-friendly ever since there has been a continued development of the models to a much better and effective brand. The Toyota Company Limited has continuously been involved in advancing its design and technology creating bar for the other vehicle manufacturing companies. Another opportunity is based on the numerous unused resources in the youth. This is effectively done through marketing, credit assistance and the design of the product. Scion aims to develop itself from the low level otherwise known as grassroots where majority of them are located. Taking a look at the competitors, none of them have a product that is customizable and cheaper. Another form of opportunity for the Toyota Motor Company is the location in the different types of countries. It has set up its headquarters far and wide creating a strong economy in the countries in which it is located. A look at South America, there has been an increase in demand and economy as a result of the trucks, while in the Middle East the Toyota SUVs have gained a trust and hence more so required or otherwise have gained a high demand.
There are several threats in which the Toyota Motor Company should take keen consideration in; the threats are more so lie in the economy. The recent financial crisis which took place in 2007 brought the Company to its knees as the products produced by the Toyota Motor Company were considered defective and hence sent back for further check. Customers all over the world lost the desired trust and reliability to the products manufactured by the Company. Several Manufacturing Companies which have the headquarters located in several parts of the world were hence closed down and there was subsequent loss incurred. There has also been a weakening of the dollar which has been due to ripple effect to the similarly deteriorating yen as well as other global currencies. This has led to potential customers to choose other alternatives to buying vehicle. The little money got by the customers saved for a much more important and pressing need, they consequently prefer other more pressing needs to the purchase of a car. Other people consider more preferable the failure of the bailout. It is however considered of adverse effect if the suppliers were to experience bankruptcy if the bigger companies were to close resulting to poor results for the foreign automakers.
4.0 Global Strategies
Toyota considered as a force to reckon with, has experienced much success in its hands. The Company’s potential to evaluate the global agenda is crystal when it comes to the analysis of the distribution media, marketing, production and supply chain principles of Toyota. Kaizen and the Toyota Production System are important components and the core of the organization’s worldwide strategy. Kaizen, which is a continued improvement concept, is placed in high on a company’s agenda as it is always placed as a fundamental factor for every company or organisation no matter how successful it is.
An organisation that keeps at par with its Kaizen will automatically be ahead market wise and gain customer acknowledgement (Hitt, et al 2009). The TPS is method used to link important principles of the manufacturer of the products. This is more useful in the establishment and organisation of the supply chain, distribution media, inventory management, planning ways and production abilities. The two, TPS and Kaizen, have been effective in the advancement of a successful strategy that has ultimately brought success to the Toyota Motor Company in respect to the processing market industry.
Looking at the price of the different manufactured products by the Toyota Motor Company, there is a varied form of pricing ranging from the type of vehicle manufactured to the company manufacturing that vehicle. The table below shows the prices of the vehicles alongside the company names, there is also the change in price along a period of time.
TM Company Name Price Change Chg.% Mkt Cap
7203 Toyota Motor Corporation (ADR) 77.64 -0.24 -0.31% 133.85B
NSANY Nissan Motor Co., Ltd… 3,240 -30.00 -0.92% 11.17T
F Ford Motor Company 17.37 -0.02 -0.12% 39.26B
HMC HONDA MOTOR CO., LTD 14.71 -0.10 -0.68% 55.85B
GM General Motors Company 35.96 0.70 1.99% 65.14B
DDAIF Daimler AG (USA) 30.24 -0.34 -1.11% 47.20B
TSLAT Tesla Motors Inc. 71.59 -1.08 -1.49% 76.29B
TTM Tata Motors Limited 25.58 0.44 1.75% 2.44B
VLKAY Volkswagen AG (ADR) 27.68 -0.40 -1.42% 17.52B
Toyota Motor Corporation Toyota Motor Corporation (Pa 30.19 -0.15 -0.49% 70.22B
4.1 Competitor Analysis and Competitive Advantage
There are several competitors located all over the world who compete with the Toyota Corporation. In the event of the financial crisis in the year 2007, where several of the products were brought back to the Toyota Motor Company due to their faulty nature. Customers all over the world complained of products of poor quality, as a result there was a huge loss suffered by the company. Several companies that compete with the Toyota Motor Company experienced a dramatic increase in their sales as result of the fall. Their products were considered stronger and fairly affordable to the customers. The Toyota Motor Company has a strong marketing considering the huge customer following of its product reliability, trust acquired and the effectiveness of the product. The Toyota Motor Company is involved in investing in areas considered to be key areas in profit making and its advancement. The youth are a key as they are energetic and more willing and ready to advance the present technology to a more efficient device for market accountability. The well spread locations of the Toyota Company creates a wider and effective network in the whole world, this is important to establishing a closer coherence with the locals customers of the far and wide customers, it brings closer the products to the potential customers. Toyota Motor Company has a strong marketing background considering its exemplary performance; it has reliable products of high quality and easily accessible. Even with the financial recession in year 2007, which had an adverse effect on the market share index of Company, the company was able to gradually come back to its feet and steadily gain the trust of its customers.
5.0. Target Market
The products manufactured by the Toyota Motor are destined for a specific market group. Toyota targets the disabled people, according to March 2003; Toyota created employment opportunities to more than 800 disabled persons who occupied the various positions in the U.S. it is part of the companies rule to put into consideration the freedom of the disabled persons in the work place. Toyota also targets women with children by the provision of a dynamic working environment; this is by the creation of child-care appliances in the location of the business. March 2003, saw the establishment of a child-care facility, Bubu Land, giving women with children the opportunity to go on working while still taking care of their children, women account for 9% of the total work force. Scion, which is Toyota’s component targets mainly the young and energetic youth. According to Scion Vice President Jack Hollis, “[Scion] has the youngest median age in the automotive industry, 31, and nearly 72 percent of owners are new to the Toyota family,” considering the design there is a range from top speed, capacity and the appearance color as well as its shape. Demographical aspect there is a target to tarmac road which is smooth in addition to rough terrain (Thomas 2001). Target markets are located in countries which are potential grounds for the Toyota Motor Company also it is in this target market that the Toyota Motor Company creates its headquarters for a manufacturing.
The recommendations suggested to be advanced for a successful company in its marketing plan and consequently the marketing strategies developed are stated: to create a clean environment by reducing emissions from the vehicles, this can be advanced by the use of battery power, which is an alternative to the fuels, this aims to create an eco-friendly vehicles. This is among the latest technologies and innovations being advanced by the company. Another objective it to create a design that is friendly to the customers; the customer should feel comfortable while using the vehicle. The j-factor and the vibrant clarity are concepts used and advanced in the desire to create an energizing and dynamic feeling for all the individuals who use the vehicles at the same time keeping the ingenious and rational nature. The design is aimed at pursuing the sensitivity of customers in the view of the world as whole. The design marches through the mock-ups and the decision hall as the processes applied.
Another objective forever desired is the need to advance a technology that aims to hinder and reduce the distortion of the vehicle in the case of an accident. Expounding on this is a look at what causes accidents, measures advanced to reduce them or even prevent them. The “Integrated Safety Management Concept” is a concept being applied by the Toyota Company to reduce the damage caused on the vehicles. This is done by advancing traffic safety lessons for the drivers who use the Toyota. The “Hands-on Traffic Safety Events” and the “Toyota Traffic Safety Campaign” are the measures applied to educate the population in safe ways to handle traffic. This may as well be educated to young ones. This is more strongly achievable with the help of the government. With the ever present traffic accidents, congestion and environmental problems due to the emissions do exist. This has led to the application of several measures to help cater for these issues; the Intelligent Transport System (ITS) is an electrical innovation applied. This method is known to offer safety peace of mind and comfort to the users this in addition to solving the transportation problems. Information Transport System has been developed to a navigation system and ETC which have already been commercialized.
The choice of location is quite vital for the success of an organization (Kotler & Armstrong 2008). The location of the Toyota Motor Company has to bring the organisation to the people that are taking the business closer to the potential customers. Potential customers are the people are the people who have the ability and desire to buy the vehicles, creating a location close to people not interested in the product being produced would automatically lead to loss of the business. The main aim of creating headquarter in a varied number of countries is to make it easier to the potential customers to purchase the product and the creation of a feeling of ownership of the vehicles manufactured. Since the Toyota Motor Company manufactures a number of vehicles ranging from Chevrolet, SUVs, Ford among other, each and every headquarter is to only manufacture the vehicles that are of marketability in the area it is situated, this is to prevent loss of the products in the market. In situations where there is change of interest and preference there is a possibility of transferring it to another location where it is more profitable.
The Toyota Motor Company is a reknown successful company, the marketing strategies applied are considered to be the most successful as they are handled by the highly experienced managers or otherwise executive in the world. The machines used in the manufacturing process are expensive and technologically complex, not many companies are able to march the standards set by the Toyota Motor Company. However, there are situations that strive to bring the company down due to the ground; this may be due to poor planning formulas, missed steps in the strategic planning, rogue executive members, faulty materials due to poor choices and loss of interest by the targeted market. There should therefore be a continued change of strategy made in an attempt to attract and maintain the potential customers and the willing customers as well. The recommendations given have gone through key analysis and possess a strong background for them to chosen as relevant for application in the Toyota Motor Company undertaking. I have taken into consideration several factors among them, the theoretical statements, business platform and relevant literature.
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