Name Guerline P Josephcourse Mkt 315date 1252021instructor Ms ✓ Solved
Name: Guerline P. Joseph Course: MKT-315 Date: 1/25/2021 Instructor: Ms. Blair Marketing Plan Analysis and Presentation: Part 1 – Research Template Directions: Visit the website for the company you have selected and obtain a copy of the annual report. Locate three to five additional resources that will provide data and information related to the brand story; the company vision, mission, and marketing objectives; and strategies and tactics the company is currently using to meet the marketing objectives. You will also use this information to complete a SWOT analysis.
Apply your research findings when completing each item below. Company Name: Toyota Brand Story: Founded in 1917, Toyota Motor Corporation is a Japanese Company in the design, manufacture, and assembly. When the machine that changed the world was first published in 1990, Toyota was half the size of General Motors. Twenty years later Toyota passed GM as the world’s largest auto maker. This management classic was the first book to reveal Toyota’s lean production system that is the basis for its enduring success.
Toyota Motor corporation is the leading auto manufacturer and the eighth largest company in the world. It has reached the heights of success as a dynamic automotive and energy solutions organizations. Toyota believes in having as little space as possible so that face-to-face communication among workers is easier. James P Womack, Daniel T Jones, Daniel Roos Simon and Schuster, 2007 Company Vision: To be the most successful and respected car company in America. Company Mission: To attract and attain customers with high-valued products and services and the most satisfying ownership experience in America.
Company Marketing Objectives: Toyota to launch New companies for marketing and for creating mobility businesses. Company Marketing Strategies and Tactics: Marketing strategy defines priority markets, audiences and products. This is where segmentation, targeting and positioning fits. Tactics will involve devising the best way to communicate these to audiences by typically will not involve a strategic review of which are the best audiences or product/market fit. SWOT Analysis: This Toyota SWOT analysis reveals how one of the most innovative automotive companies used its competitive advantages to become the dominant player in the automotive industry.
It defines all the key strengths, weaknesses, opportunities, and threats that affects the company the most. SWOT is a framework that allows managers to synthesize insights obtained from an eternal analysis of the company’s strengths and weaknesses with those from an analysis of external opportunities and threats. Strengths · Strong focus on R&D. · Strong market position and brand recognition. · Extensive production and distribution network. Weaknesses · Products recalls could affect brand image. · Declining sales in key geographic segments. · Poor allocation of resources as compared to peers. Opportunities · Growth global automotive industry. · Toyota poised to benefit from growing partnership with BMW. · Strong outlook for the global new car market.
Threats · Intense competition. · Appreciating Japanese Yen a major concern. · Natural disasters could impact production structure. Citation of Sources: Provide APA citations for the company’s annual report and the other research sources utilized in completing the assignment. Name of Source Citation Information Toyota Motor Corporation (2018). Form 10-k for the Fiscal Year Ended March 31st, 2018. Accessed January 10, 2019 Tom Motor Corporation (2018) Forbes, “Toyota Eyes Big Growth Ahead in Emerging Markets,†accessed November 9, 2013, Forbes (2013) Toyota Industries: Financial Summary, FY 2013 Toyota Industry (2013) Toyota Motor Corporation (2018).
Award History. Available at: Toyota Motor Corporation (2018) © 2019. Grand Canyon University. All Rights Reserved. 2 Name: Guerline P.
Joseph Course: MKT-315 Date: 2/16/2021 Instructor: Ms. Blair Marketing Plan Analysis and Presentation: Part 2 – Research Template Directions: Using the company and research sources from the Topic 2 assignment as a starting point, conduct additional research to acquire information related to consumer behavior, product or service, and price associated with the company you selected. In the “Research Summary†section, discuss how the company could use these types of research findings to develop a marketing plan in order to meet the company marketing objectives and business needs. Information to be Researched Research Findings Resource Citation Information Describe the customer segments and target markets.
Segmentation is used as a tool for dividing the market into homogeneous groups. Market segmentation may be done through various customer demographics such as gender, income, age, and education. Toyota's market segmentation is based on the customers’ level of income. The company produces products for low-income earners, middle-income earners, and high-income earners. That ensures that all the market segments are satisfied effectively.
The target market indicates the market that is more profitable in a company. Toyota’s target market is the younger adults aged between 25 and 40. Most of such people are in the stage of buying a car for the first time in their life. Since Toyota charges low prices for their vehicles, such people constitute the largest market of the company. Andaleeb, S.
S. (2016). Market segmentation, targeting, and positioning. In Strategic Marketing Management in Asia . Emerald Group Publishing Limited. Describe characteristics of the target markets that will affect product/service and pricing decisions.
The target market of a company affects the company’s pricing decisions and its products and services. One of the characteristics of the target market that should be considered includes the customer demographics. That includes the age, level of income, age, and amount of education. Toyota’s target market is the younger adults. Such people are more likely to be in the low or middle-income categories.
Therefore, the pricing of the product should be low. That will make the products affordable to the target market. The target market Psychographics also determine the product pricing and the products and services that are provided by a company. That entails the people’s lifestyle choices. That had ensured that Toyota has produced vehicles that are cheaper, and they have various capacities to appeal to a person’s lifestyle.
They have big cars for families and small cars for individual people who just want a means of transport. The target market’s need for a product is also considered when Toyota is coming up with the pricing strategies and innovation of its products and services TARGET, D., MORE, M. I., & EVER, T. Defining your target market. Describe how the company differentiates its product and positions its brand.
Toyota differentiates its products from other automakers through its pricing strategy. That is promoted by the company’s brand positioning which is the production of affordable and reliable vehicles. Toyota produces affordable vehicles for all its market segments. It serves the low income, middle income, and high-income earners with affordable products. The company also produces quality and reliable products.
Toyota vehicles are well known for their fuel efficiency and the availability of their spare parts. That shows that the company has positioned its brand as affordable, reliable, and efficient. That has helped the company in its continuous growth making it the largest car manufacturer globally in terms of the number of sales and market capitalization. Li, Z. (2018). Business Network Positioning Analysis of Toyota.
American Journal of Industrial and Business Management , 8 (07), 1693. Describe a consumer buying behavior model for this company and brand. The customer buying behavior explains the actions taken by a customer before buying a product or service. It is also the study of how the customers buy, what they buy, and when they buy. The first action that the consumers take is identifying the need to buy a product or service.
The customers may buy a vehicle for personal use, official use, or family use. They may also need to buy a new vehicle or a used vehicle. After identifying the need, the customer searches for information about the vehicles. The next step is the evaluation of alternatives and lastly the purchase decision. Toyota consumers buy Toyota vehicles because of their efficiency and the availability of spare parts.
Toyota customers prefer to buy new or used Toyota vehicles. However, most of them prefer to buy new Toyota vehicles and for personal use. After that, since Toyota has numerous cars with similar specifications, they identify the most suitable vehicle or the vehicle that they like the most. Yallapragada, P., (2017), “A STUDY ON CONSUMER BUYING BEHAVIOR PATTERN FOR TOYOTA MOTORS IN UAEâ€, International Journal of Marketing & Financial Management, ISSN: 2348 –3954 (online) ISSN: 2349 –2546 (print), Volume 5,(Issue 4, Apr-2017), pp 01–21 Describe the product mix. The product mix shows the product assortment or the set of all the products that a company offers to its customers.
The product mix is explained using the product width, product depth, and product length. The product width shows the number of products in a product mix. The product length indicates the number of total products in a product mix. Lastly, the product depth shows the number of variants in a product line. Toyota offers a full line of cars.
They provide family cars, sports cars, minivans, trucks, and light commercial vehicles. The company’s product mix includes various types of cars such as coupes, sedans, hybrids, vans, SUVs, and trucks. That indicates that the car manufacturer has a substantial product width. The product length of Toyota includes several models in its product line such as Corolla, Tundra, Scion, Prius, Lexus, Camry, Avalon, among others. The product depth of Toyota can be explained through the various models of the different types of cars.
For instance, the Toyota Corolla has models such as Fielder, Axion, Allion, and Spacio. CORPORATION., T. M. (n.d.). Toyota brand. Toyota Motor Corporation Official Global Website.
Describe the product lines. A product line is a group of related products that are all marketed under a single brand name that is sold by the same company. Toyota has various product lines. Toyota sells its vehicles under five brands which are Hino, Lexus, Ranz, Daihatsu, and Toyota. The company's product line includes electric vehicles, cars, buses, and pleasure boats.
The vehicles that fall under the product line electric vehicles include hybrid electric vehicles, plug-in hybrids, hydrogen fuel-cell vehicles, and all-electric vehicles. The vehicles under the car's product line include SUVs and crossovers, luxury-type vehicles, and pick-up trucks. CORPORATION., T. M. (n.d.). Mobility.
Toyota Motor Corporation Official Global Website. Describe the service processes. Toyota has expanded globally. To increase its sales, the company implemented localization of markets. That ensures that the company has operations in all its major operating regions.
That reduces the costs of operations and increases its productivity. The company has company-owned vehicle showrooms where the customers may go to purchase new vehicles. The company also trains its employees to equip them with the necessary skills and knowledge to promote the success of the company. That describes why the company provides quality services to all its customers. Nkomo, T. (2019).
Analysis of Toyota Motor Corporation. Discuss physical evidence of service, service scape, and ambiance. The physical evidence indicates the environment in which a service is delivered and where the firm and the customer interact and any commodities that facilitate the performance of the commodities. On the other hand, the service scape indicates the physical facility the service is produced and/or delivered. For Toyota, the physical evidence of its services includes the exterior and interior designs of its vehicles.
It also includes the different features that have been fitted in the vehicles. When interacting with the customers, the physical evidence entails the billing statements and the showrooms. In this case, the service scape may be described as the showrooms where the vehicles are sold and the manufacturing plants where the vehicles are assembled. The ambiance is made up of the decor, air temperature, music, and lighting. Therefore, in this case, the specific features of a vehicle make up with the ambiance of the company.
Nkomo, T. (2019). Analysis of Toyota Motor Corporation. Discuss the roles of company employees in service delivery. The employees at Toyota are essential in service delivery. The company has trained its employees to promote the productivity of the company.
The company has employed over 300,00 employees who work in different departments. Thus, the employees help in the assembling of the vehicles, marketing and sales of the vehicles, innovation among other roles. Teamwork and collaboration among various employees as well as training and development of employees have increased the productivity and effectiveness of the company. Nkomo, T. (2019). Analysis of Toyota Motor Corporation.
Define the company’s pricing objectives and discuss whether the objectives are profit- or sales-oriented. The company’s pricing objectives include the provision of affordable products to its target customers. The company also uses value-based pricing for its luxury vehicles. The company’s price objectives are sales-oriented. That is because the company charges low prices to gain a bigger market share.
It operates on the economies of sales by making very little profits and a lot of sales. Hoque, I., Faruque, M. O., Shahid, E. M., Pasha, S. H.
A., & Rahman, S. O. (2013). Analysis of Toyota’s marketing strategy in the UK market. European Journal of Business and Management , 5 (20), 1-7. Provide an example of current company pricing strategies.
The company has two pricing strategies. It used market-oriented pricing strategies and value-based pricing strategies. The market-based pricing strategy entails identifying the prices of the company’s competitors. That enables them to make their products cheaper thus, making them more affordable to its target market. The company uses value-based pricing strategies for its luxury vehicles.
However, they are still affordable compared to other car manufacturers’ luxury vehicles. Hoque, I., Faruque, M. O., Shahid, E. M., Pasha, S. H.
A., & Rahman, S. O. (2013). Analysis of Toyota’s marketing strategy in the UK market. European Journal of Business and Management , 5 (20), 1-7. Describe pricing tactics (discounts, etc.) that are used to drive short-term demand The company uses several pricing tactics to increase its short-term demand.
One of the pricing tactics that is used is the issuance of discounts. That enables the customers to buy the vehicles at a cheaper price thus increasing the company’s sales. The company also allows credit payments for some of its vehicles at low-interest rates. That ensures that a customer can buy a car and pay in installments. That increases the company’s short-term demand.
Hoque, I., Faruque, M. O., Shahid, E. M., Pasha, S. H. A., & Rahman, S.
O. (2013). Analysis of Toyota’s marketing strategy in the UK market. European Journal of Business and Management , 5 (20), 1-7. Research Summary The company may use the research findings that have been identified above to meet its marketing objectives and business needs. The research findings provide data about various departments and segments of the company.
Therefore, the data may be harnessed to come up with effective marketing strategies and to meet the business needs and objectives. To begin with, the research findings that have been identified are crucial in the determination of the target market of the company. The target market influences the promotion and marketing strategies that may be used. The marketing strategies should align with the target market. For instance, it was identified that the target market for Toyota vehicles varies according to the market segmentation.
Thus, the marketing strategies should be carried out in reference to the target market in each market segment. The company has three market segments namely the low income, middle income, and high-income earners. The target group includes young adults between the age of 25 and the age of 40, who are buying cars for their first time. In such a case, the company should implement social media advertising, television adverts, and billboards. The business need of the company is to provide affordable, reliable, and efficient vehicles to its target market.
The information that has been identified in the business research may be used to ensure that the business achieves its needs. For instance, one of the strategies that may be used is the pricing strategy. To satisfy its business needs, Toyota should use a penetrative pricing strategy. The pricing strategy involves charging low prices for quality products. That will ensure that the company fulfills its target market adequately.
References Andaleeb, S. S. (2016). Market segmentation, targeting, and positioning. In Strategic Marketing Management in Asia . Emerald Group Publishing Limited.
CORPORATION., T. M. (n.d.). Mobility. Toyota Motor Corporation Official Global Website. CORPORATION., T.
M. (n.d.). Toyota brand. Toyota Motor Corporation Official Global Website. Hoque, I., Faruque, M. O., Shahid, E.
M., Pasha, S. H. A., & Rahman, S. O. (2013). Analysis of Toyota’s marketing strategy in the UK market.
European Journal of Business and Management , 5 (20), 1-7. Li, Z. (2018). Business Network Positioning Analysis of Toyota. American Journal of Industrial and Business Management , 8 (07), 1693. MOTORS IN UAEâ€, International Journal of Marketing & Financial Management, ISSN: 2348 –3954 (online) ISSN: 2349 –2546 (print), Volume 5,(Issue 4, Apr-2017), pp 01–21 Nkomo, T. (2019).
Analysis of Toyota Motor Corporation. TARGET, D., MORE, M. I., & EVER, T. Defining your target market. Yallapragada, P., (2017), “A STUDY ON CONSUMER BUYING BEHAVIOR PATTERN FOR TOYOTA © 2019.
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Paper for above instructions
Company Overview
Company Name: Toyota Motor Corporation
Founded: 1917
Industry: Automotive Manufacturing
Brand Story:
Toyota Motor Corporation initially started as a division of Toyota Automatic Loom Works, primarily focused on producing textile machinery. However, it emerged as a global automotive giant, passing General Motors in 2008 to become the world's largest automaker. The company is well-acclaimed for its innovative approach to automotive manufacturing, emphasizing lean production systems known as "Toyota Production System" (Womack et al., 2007).
Company Vision:
To be the most successful and respected car company in America.
Company Mission:
To attract and retain customers with high-value products and services, ensuring the most satisfying ownership experience.
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Market Research Summary
Consumer Segmentation:
Toyota implements market segmentation based on customer demographics, including income levels and lifestyles. Their strategy appeals to a diverse target market: low-income earners seek affordable vehicles, while high-income individuals look for premium products from brands like Lexus (Andaleeb, 2016). Specifically, they target younger adults aged 25 to 40 who are typically first-time car buyers.
Target Market Characteristics:
Toyota’s pricing decisions are influenced by its target market's demographic characteristics. Younger adults, often budgeting for their first vehicle, tend to favor lower to mid-range pricing. The company effectively offers products that meet the lifestyle needs of these consumers while remaining competitive in pricing (TARGET et al.).
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Product and Pricing Strategies
Product Differentiation and Brand Positioning:
Toyota differentiates its products through affordability and reliability, underpinned by value-based pricing for its premium models. This positioning strategy allows Toyota to maintain a competitive edge in the automotive sector by appealing to various income groups (Li, 2018).
Consumer Behavior Model:
Toyota adopts an awareness-knowledge-evaluation-purchase model in understanding consumer behavior. First, consumers identify their transportation needs, leading to an information search about various cars, followed by the evaluation of alternatives before the final purchase decision (Yallapragada, 2017).
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Product Mix and Lines
Product Mix:
Toyota has an extensive product mix, providing a full line of vehicles, including:
- Family Vehicles: Minivans, SUVs
- Compact Cars: Sedans, Coupes
- Luxury: Lexus
- Commercial Vehicles: Trucks and buses
This mix caters to various consumer needs and preferences, ensuring that Toyota is well-positioned in multiple market segments (CORPORATION., T. M.).
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Service Processes and Employee Roles
Service Processes:
To enhance service delivery, Toyota implements localization strategies across its global sites, optimizing production and minimizing operational costs (Nkomo, 2019). They also emphasize employee training, ensuring a skilled workforce capable of fostering the company’s ethos of quality and innovation.
Roles of Employees:
Employees play a pivotal role in delivering quality service and maintaining productivity. Over 300,000 employees are involved in various aspects ranging from production to sales, underscoring the importance of teamwork and collaboration in achieving Toyota’s business objectives (Nkomo, 2019).
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Pricing Objectives and Current Strategies
Pricing Objectives:
Toyota’s primary pricing objective is to deliver affordable yet reliable vehicles to its customers, thereby ensuring a larger market share (Hoque et al., 2013). Their strategies may be characterized as sales-oriented, as they aim for increased sales volume instead of high-profit margins.
Current Pricing Strategies:
Toyota employs a mix of market-oriented and value-based pricing, effectively balancing affordability with quality. Seasonal promotions, discounts, and financing options, such as low-interest loans, also play a crucial role in stimulating short-term demand (Hoque et al., 2013).
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Research Summary and Future Directions
The collected data reveals essential insights into Toyota's market segmentation, consumer behavior, pricing strategies, and service processes. The company can leverage this research to refine its marketing strategies by emphasizing their value appeal to target segments, particularly younger, first-time buyers. To maintain relevance, Toyota should enhance digital marketing efforts targeting this demographic, utilizing social media and online platforms to promote affordability and innovation.
With competitive forces constantly evolving, Toyota must embrace emerging automotive trends such as electric and autonomous vehicles. Such advancements can align with the company’s objective of sustainable mobility, opening new markets while addressing global concerns regarding environmental sustainability.
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References
1. Andaleeb, S. S. (2016). Market segmentation, targeting, and positioning. In Strategic Marketing Management in Asia. Emerald Group Publishing Limited.
2. CORPORATION., T. M. (n.d.). Mobility. Toyota Motor Corporation Official Global Website. Retrieved from [Toyota Official Website](https://www.toyota-global.com/)
3. CORPORATION., T. M. (n.d.). Toyota brand. Toyota Motor Corporation Official Global Website. Retrieved from [Toyota Official Website](https://www.toyota-global.com/)
4. Hoque, I., Faruque, M. O., Shahid, E. M., Pasha, S. H. A., & Rahman, S. O. (2013). Analysis of Toyota’s marketing strategy in the UK market. European Journal of Business and Management, 5(20), 1-7.
5. Li, Z. (2018). Business Network Positioning Analysis of Toyota. American Journal of Industrial and Business Management, 8(07), 1693.
6. Nkomo, T. (2019). Analysis of Toyota Motor Corporation.
7. TARGET, D., MORE, M. I., & EVER, T. Defining your target market.
8. Womack, J. P., Jones, D. T., & Roos, D. (2007). Lean Thinking: Banish Waste and Create Wealth in Your Corporation. Simon and Schuster.
9. Yallapragada, P. (2017). A study on consumer buying behavior pattern for Toyota Motors in UAE. International Journal of Marketing & Financial Management, 5(4), 1–21.
10. Toyota Motor Corporation (2018). Form 10-K report for the fiscal year ended March 31, 2018.
This template provides a comprehensive analysis of Toyota’s marketing strategy and consumer behavior, which can guide future marketing plans and objectives, ensuring the company remains a leader in the automotive industry while adapting to changing market conditions and consumer preferences.