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Running Head: MARKETING PLAN FOR TOYOTA MOTOR COMPANY Name: Professor: Institution: Course: Date: 1. 0 Company Description The Toyota Company is a leader in the car manufacture, assembly and distribution the world over. A very efficient management style that the company uses has been one of the reasons for the firm’s good performance. There are many other salient factors that have made the company achieve the niche of market leader.
The market structure the company operates in can not be definitely stated. Some may consider it to be a monopoly. This is due to the fact that the company is a dominant market player in car exportation. In fact, its differentiation strategy has made it enjoy an almost monopolistic presence especially in the developing nations of the world. On the other hand, the market structure can be seen as an oligopoly. This is due to the fact that there are other key players like GM who are peer competitors.
Toyota is keen to see what these competitors are doing and make sure it reacts to their actions in a way that will guarantee its market leadership. 2. 0 Strategic Focus and Plan There are three aspects of the existing corporate strategy that are developed in relation to their overall impacts caused to the marketing plan of Toyota Company. These are; 1 2. 1 Mission Statement of the Company. Toyota seeks to create a more prosperous society through automotive manufacturing (Hiroshu, 2003).
Therefore, the Company is aimed at achieving a stable and long-term growth in future, and this is supposed to be in synchronization with a number of factors: the significant environment, global economy, local communities served, and the Internal Environment of stakeholders 2. 2 The Company’s Goals The company has committed itself to offering of hybrid alternatives for every model that is sold in the market. This is aimed at enabling the Company to make a total sale of 1 million hybrid vehicles within a year, and this goal has been set to have been achieved by the year 2012.
Toyota Company has improved its 2011 Environmental Action Plan and it is committed in six different key areas, which are: the Environmental Management; changes in Energy and Climate; the Quality of Air; concerned Substances; the aspects of Recycling and Improved Resource utilization; and Societal Cooperation. The Company is committed to reduce carbon dioxide emission and it is believed to take combined actions of ensuring that the environment is kept clean all the time by observing the stated fuel economy values. 2 2. 3 Core Competency and Sustainable Competitive Advantage
Toyota Company is working towards the achievement of a better and more sustainable economy by having a stable global market. With advancement in new technology and other related matters, the Company is investing in various strategies that will enable it to realize its set goals and objectives over a period of time. The Company has a well developed and equipped network of expertise that are into research and development over aspects that are to keep the Company on top in product and service delivery to its global market.
Also it has a wide range of distribution network allover the world and this has enabled it to reach a portion of the market that is seeing it through to greater levels. 3. 0 Situation Analysis Toyota’s capacity to stay on top of productivity efficiency and quality rankings can be credited to its internal environment. This entails the way production process is managed by the top management who are famous for their competency. The production team has an insatiable obsession to improve the efficiency and effectiveness of its manufacturing operations.
Therefore, to fully understand the situation analysis of Toyota Company, a SWOT analysis is determined and it mainly consists of the Company’s strength, weaknesses, available opportunities, and finally the threats that the Company is experiencing or projected to go through. 3. 1 SWOT Analysis Strength and weaknesses are referred to as internal factors of the Company as their impact starts from within the Company, while opportunities and threats normally originates from outside of the Company, hence referred to as external factors.
Figure 1: SWOT Analysis of Toyota Company (Internal Factors) |Internal Factors |Strengths |Weaknesses | |Management |Having competent and experienced management |Large size of management team reduces chances | | |team and board members |of moving fast into the targeted market, | | | |because of slow rate in decision making | |Offering |Hybrid products that are customer friendly |Expensive in proofing the market that are right| | | |products for them | |Marketing |Distribution of products into the market |Expensive in establishing this distribution | | |through wide range of identified branches |network | |Personnel |Have good skilled workforce who are relied upon|The gap will be big if the employees left the | | | |Company | |Finance |Improved revenues from sales made in the global|Limited workforce nd material may slow down | | |market |the growth of the Company in relation to | | | |competitors | |Manufacturing |Main supplier of material ensure fast and |Different supply interests among the Company | | |quality material |suppliers and other competitors. | |R&D |Quality of products delivered is enhanced | | | |through out the period of doing business | |
Figure 2: SWOT Analysis of Toyota Company (External Factors) |External Factors |Opportunities |Threats | |Consumer/social |Stability of the upcoming market is highly |Low priced products may proof that the quality | | |projected |of the products is quite low | |Competitive |Differentiated products and prices make the |Products of high technology are being | | |Company to be quite distinctive in the market |introduced into the market by other competitive| | | |companies | |Technological |Break-through in technological standings is a | | | |better course for the Company to improve on the| | | |quality of its products | | |Economic |Improved consumer income has made it convenient|Individuals opting for other products since | | |for the Company to get deep into the market |they have enough disposable income | |Legal/Regulatory |Regulatory measures ensuring fairness in the | | | |market and avoid over-exploitation by other | | | |competitors | | Figure 3: The SWOT Analysis Matrix Strengths: |Opportunities: | | | | |???investment in new factories |???hybrid cars | |???diverse range of products |???selling technology | |???improved marketing techniques |???rising urban youth population | | | | |Weaknesses: |Threats: | | | | |???Maintaining client base |???Faulty products | |???Maintaining production |???Upcoming manufacturers | | | | 3. 2 Industry Analysis
Toyota Company is able to apply its strengths and opportunities it has to create a competitive edge in the industry. For instance, the widely differentiated product line is helping the company to have more global presence. This can also be achieved through entering new markets like China and Europe. Toyota has previously concentrated on the Japan and American markets and it needs to setup strategies to penetrate the other markets as well. Toyota has taken a good position as far as sustainable development is concerned. With the fear of depletion of the fossil fears coupled with the global warming effects, there is a ready market for the Toyota’s hybrid car.
The company can also use this opportunity t sell its technology to other firms 3. 3 Company analysis Toyota Company is one of the world’s leaders in car export and it appears to literally be living its mission, which is to be the world leader in the creation of automotives that are best in terms of value. The company is working towards the end of creating a society that is prosperous by providing their clientele with the best value for their money. They believe in giving the best prices for the client yet still deliver a vehicle that is at per with those being offered by their other major competitors. This could be the reason why their products are having a very good market in the developing nations.
The Company is also conscious about sustainable development, and this can be clearly seen in its different corporate social responsibilities as well its sustainable development initiatives aimed at reducing the pollution of the environment. 3. 4 Customer Analysis Toyota’s customers are very diverse and they range from the low income earners to the very rich. They are widespread around the world. Toyota has catered for all car needs that may arise for any individual with their wide range of motor vehicles. They range from small sports cars to big family vehicles and trucks as well as vans. The customers comprise a varied group of people, with differing ages, incomes, geographical locations, and social and cultural statuses. Customers go for Toyota products to satisfy different wants and needs.
Low income earners are provided with a basic mode of transportation that is both within their price range and efficient. Clients going for class and elegance are also catered for. Customers purchase Toyota products on individual basis according to their specific needs. In some cases we have organizations purchasing cars for their firm’s usage or for their employees. In such a case, the product buyer and purchaser is not actually the product user. Once individuals purchase the company’s product, there is an increased exposure to its other products. Product awareness is enhanced through advertisements, newsletters, website information, and other informational sources.
The opportunity for Toyota to generate income from complimentary products such as books and seminars by members is very big. Where do they Purchase? Most of Toyota’s products are sold through retail distributors located all over the world. Purchase can also be made directly from the factories, as is the case with limited edition models. The increase in the use of electronic commerce, Toyota as well, that is, purchasing products on-line. Majority of the advertising materials can be obtained in full, on-line view over the Internet. On-line publications diminish paper waste while giving existing and direct availability of the product to clients.
Customers are able to order a product in stores and with a toll-free number directly from the company as well (Booz, 2007). This grants customers around the world access to the company’s products. When do they Purchase? Individuals can purchase the company’s products anytime that they like, at any time of the year. This is because Toyota sells its cars all year round, except for the limited editions which are purchased directly from the factories. New users often purchase cars after acquiring a driver’s licence in the case of some countries when going to high school or to college in others. Other users usually purchase a new car when the old one breaks or gets too old or when they want to trade in for a newer car or a different model. Why do they Purchase?
Customers select Toyota products over other manufacturers primarily because of their comprehensive, yet specialized, nature. Toyota offers a diverse range of cars that encompass all needs of the clients. They are focussed on building and maintaining high standards when it comes to the products. They offer cheaper alternatives to the clients for the same products from other manufacturers that are quite expensive. Toyota has also invested heavily on safety in their cars. As the globe goes green and clients call for an appropriate response from their car manufacturers, Toyota have responded by investing in hybrid cars, the Prius. This may be the future of the motor industry.
The high quality products make it all that easy for a customer to go back to the shop and purchase another Toyota product (Flanagan, 2007). Why Potential Customers Don’t Purchase As is the case for many large organizations, Toyota’s target market defines a much wider population than their customer base actually reflects. There are many car manufacturers who have come up and the motor industry is currently flooded with many products. Many of these products are similar, often differing due to one or two features that may or may not be significant. In this case, it comes down to personal like and dislike. The other reason is the issue of class and social status. Toyota products do not always give the implication of a high social standing.
A customer may choose to buy a car from a competitor and not from Toyota simply because of that, and yet the car is the same. 4. 0 Product-Market Focus In this section, the Company three year development projections is clearly explained in various categories, which are developing of a strategic focus; marketing goals and objectives; target market; and the Company position in the market. 4. 1 Developing a Strategic Focus Toyota has already embraced product differentiation as a major strategy in market penetration and the strategy is working well. It is determined to use a pricing mechanism that will give it a competitive edge over its main competitors.
The cost of production of a unit for Toyota is projected to be large but due to possible mass production plants, the overall cost will not be a huge issue in this case. This means the company will be able to sell its products at an even lower price yet still remain profitable. The company is taking an advantage of this and using it to penetrate the markets of emerging economies with affordable products. 4. 2 Marketing Goals and Objectives Toyota’s enormous size and capacity is a great advantage in meeting industry growth. The number of clients in need of cars is constantly increasing, thus creating a bigger market for Toyota and requiring more of their products.
The perceived importance of owning a car due to increased travelling needs in today’s largely corporate world is constantly increasing as well. Toyota’s great size will enable them to successfully meet the needs of this growing population of customers in need of cars (Dobni, 2002, p. 41). The company keeps making quality product and make it a rule not compromise on this, and not to give in to the competitors’ pressure and rise their prices then clients will remain loyal to the company (Armstrong & Kotler, 2002). Then, everyone has a chance to know the real values behind Toyota’s past, current, and hopefully future existence (Armstrong & Kotler, 2003). Toyota is in the process of engineering lesser platforms to be used in the assembly of its different models.
This is as a cost cutting measure; they intended to compress their platforms from 20 to ten in the ambitious exercise. This is especially important since their chief rivals; GM and Ford have made notable improvements in their production process. Toyota is also thinking twice about its bloated assembly points. It is thinking of best ways to reduce them without hindering its efficiency (Mullins, Walker & Boyd, 2010). 4. 3 Target Market Each of Toyota’s products is designed to target a specific market. The design criteria range from top speed, capacity and exterior appearance like color and shape. There is a high speed, small, two-seat model cars for the relatively younger and single people who are adventurous to the big five-seat models for the family set up.
Demographically, they also target situations on the smooth tarmac road as well as the rough and rugged off road terrain (Thomas, 2001). Toyota has been previously blamed by the American Markets that their products are lacking in flair and design unlike those of GM and Ford. This has led the company to be more attentive to its American designers to make sure this needs are met. The V8 pickup which was launched recently was as a result of this ambitious. The hybrid model, Primus, has also been transformed since at its inception, it didn’t hit the American market. When they made it look more futuristic, it resulted in big volumes of sales. Overly, the Toyota Company is giving its competitors a hard time.
Even though it has experienced challenges like the recent recalls, it is still notable in market leadership position. If the current impressive results and global positioning of the company is anything to go by, then this is a position Toyota is not likely to lose any time soon. 4. 4 Company Position in the Market Toyota Company has been producing vehicles and significant products that are not expensive and readily available. This has been a significant factor that has enabled the Company to have a major cut in the market , and it is projecting to have most of the market by the end of 2013, as it has put a cross a number of strategies to enable it reach the set target. 5. 0 Market Program
This consists of the four marketing mix elements that are designed to fit the market in terms of their needs and ability to access such products and services. 5. 1 Product Strategy The Company is believed to be moving with a strategy of mass production of which it has enabled it to sell widely in the global market. It has also included the strategy of hybrid product, where it can double the amount of production for the arising needs in the market. 5. 2 Price Strategy The reputation of the Company has been developed by producing high quality vehicles that can be bought at a reasonable price. The Company has also been using tactful pricing strategies through price differentiation so that they are different from other automobile producers. 5. 3 Location Strategy
Being a global producer and supplier of Toyota automobiles and their components, Toyota Company has positioned itself all over the world giving it a clear cut within the market. Within three years to come, it is working towards the achievement of about 35 percent of the market share, and this will make it to be best and top supplier of automobile products. 5. 4 Promotion Strategy The Company is determined to use a pricing mechanism that will give it a competitive edge over its main competitors. This is a mechanism that it is using to market itself so that it can get hold of market share that will see it better in achieving the highest level in the market. 6. Marketing Implementation Analysis Toyotas main focus will be in reaching the new markets of China and Europe. It will also be concerned about the competition from other firms like Ford and GM. An advantage the company has is the widely differentiated product range. Establishing new factories in these new markets as well as opening up new franchises will help the company in getting an ease of penetrating the new markets Human resource is one of the most important aspects in this plan. The company should always make sure they have highly motivated staff as this is directly proportional to good production both in the qualitative and quantitative aspects.
Toyota can do this by coming up with schemes of rewarding their employees like helping them own cars subsidized rates. The company should also make sure the personnel are the best in terms of technical know-how. The company needs to carry out frequent training towards this end. 7. 0 Financial data and Projections The previous years have seen Toyota’s profit grows each year with an exception of 2009 due to the economic downturn as well as the recalls. The figures below illustrate this Figure1: Toyotas impressive performance in the last four years (Johnson, 2009) [pic] With the advent of more efficient production technologies coupled with the entrance into the new markets, it is expected that the increase in profits will continue for the next five years.
Below are the projections for the next five year period Figure2: Projected Financial returns for the next five years (Johnson, 2009) |Sales Forecast |Millions of Yen | |year |2009 |2010 |2011 |2012 |2013 | |Net Sales |1,243,445 |1,455,650 |1,900,340 |1,957,879 |2,000,534 | |Operating income |54,120 |65,023 |89,954 |98,0530 |99,760 | |Ordinary Income |70,912 |80. 36 |108,484 |125,444 |14,343 | |Net Income |46,123 |47,999 |60,231 |81,234 |57,576 | |Research |30,051 |32,051 |30,051 |20,051 |30,051 | |Divindends/yen |32 |44 |50 |60 |78 | 7. 1 Tactical Marketing Activities Toyota has taken a bold step in being a leader in sustainable development. This position will need some innovations which translate to expenditure. They are however necessary as a way of staying ahead of competition. The activities the company will embark on are given in figure 3 Figure 3: Tactical Marketing activities Specific Tactical Activities |Person/Department |Required |Completion | | |Responsible |Budget millions of yen |Date | |Product Activities |Production engineers and |30. 45 |2011 | |1. Car air conditioning compressor |Product management | | | |2. DC-DC converters for fuel efficiency | | | | |3.
Low Exhaust Emission Engine | | | | |Pricing Activities |Operations management |15. 25 |2012 | |1. New Technologies | | | | |2. Compression of Production platforms | | | | |3. Merger of Assembly points | | | | |Distribution Activities |Logistics management |21. 0 |2010 | |1. Opening up of new factory in America and china | | | | |2. Machine handling | | | | |3. Logistical operations | | | | |IMC (Promotion) Activities |Marketing manager |9. 20 |2012 | |1.
Concerts | | | | |2. Volunteer | | | | |3Youth Invention club | | | | 8. 0 Implementation Plan There are a number of activities that have been projected within a life span of three years and the following representation shows the aspects that have been targeted and within what strategic period of time. Year |To be Achieved |New Targeted Markets (millions) |Cumulative Targeted Markets | | | | |(millions) | |Today (2010) |Working towards hybrid products |250 |250 | |1st Year (2011) |Introduction of pricing mechanism |320 |600 | | |and price differentiation | | | | |strategies. | | |2nd Year (2012) |Enhancing hybrid products by use of|370 |970 | | |new technologies | | | |3rd Year (2013) |Product differentiation to meet the|420 |1320 | | |needs of the market | | | 9. 0 Evaluation and Control There is a monitoring and evaluation team that will be set to watch over the progress of the company in realizing the strategic goals. The short term goals will be clearly watched and corrections put in place where targets are missed for they are the keys to fulfilling the long term goals. Currently, the Company has made a clear step forward in ensuring that hybrid vehicles are being produced, and so far the market has started improving in terms of overall reception of these brands of vehicles.
Another aspect that is supposed to be considered here is the speed of the roll-out program of pricing mechanism introduced. Currently, it has taken the market by surprise as most of Toyota products are found to be customer friendly. The Company has been able to come up with a differentiation program for its products and this has helped it to have a huge market share. It is projects to improve and reach the target within three years and this will be determined by the rate of growth and the total number of market reached. References Armstrong, G. , & Kotler, P. (2002). Marketing: an introduction (International edition). New Jersey: Prentice Hall. Retrieved October 7, 2010 from http://www. pearsonhighered. om/educator/product/Marketing-An-Introduction-7E/9780131424104. page Armstrong, G. , & Kotler, P. (2003). Marketing: an introduction. New Jersey: Prentice Hall. Retrieved October 7, 2010 from http://html-pdf-converter. com/en/convert? u=search-pdf-books. com/philip-kotler,-and-gary-armstrong. -marketing-management. -prentice-hall,-2003-download-pdf-free-pdf/ Booz, A. (2007). Striving for growth: Best practices in retail banking sales and service channels. New Jersey: Prentice Hall. Retrieved October 7, 2010 from http://www. strategy-business. com/media/file/leading_ideas-20071127. pdf Chamberlin, P. (2009). Customer service complaint handling. New York: The Gurdian.
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How to provide exceptional customer service. New York. Retrieved October 7, 2010 from http://ezinearticles. com/? How-to-Provide-Exceptional-Customer-Service=2726818 Johannes, G. , Bill, K. , & Plenert. (2000). Finite capacity scheduling: management selection and implementation. New York: John wiley & sons Inc. Retrieved October 7, 2010 from http://search. barnesandnoble. com/Finite-Capacity-Scheduling/Gerhard-Plenert/e/9780471352648 Johnson, J. M. (2009). Five pillars of sustaining exceptinal service. Chicago: 3 Palms Publishing Group, LLC. Retrieved October 7, 2010 from http://www. communicoltd. com/pages/166_five_pillars_of_sustaining_exceptional_