2. Introduction
•Executive summary
•Description of business
•Financials
•Market Analysis
•Explore political and economic risks
•Marketing Strategy and solutions
Toyota

3. Executive Summary
•“Since Toyota’s founding we adhered to the core
principle of contributing to society through the
practice of manufacturing high-quality products and
services. Our business practices and activities based
on this core principle created values, beliefs and
business methods that over the years have become
a source of competitive advantage. These are the
managerial values and business methods that are
known collectively as the Toyota Way” (The fourteen
principles of the Toyota Way, 2003).”
Toyota

4. Description of business
•Toyota Motor Corporation designs,
manufactures, assembles, and sells passenger
cars, minivans, commercial vehicles, and
accessories in Japan, North America, Europe,
Asia, and globally.
•mini-sized cars, passenger vehicles, commercial
vehicles, and auto parts under the Toyota brand
name; mid-size cars
Toyota

5. FinancialsToyota
2010
2011
2012
2013
2014
209
408
283
962
1800
TOYOTA’S FINANCIALS IN BILLIONS
2010 2011 2012 2013 2014

6. Market Analysis
•Target Brazil
•Economic infrastructure
•GDP 2.253 trillion
•Consistent economic growth, relatively low inflation
rates and improvements in overall living conditions
•Vast amount of resources
•Rise of the middle class
Toyota

7. -
0.50
1.00
1.50
2.00
2.50
3.00
3.50
2010 2011 2012 2013 2014 2015
Toyota Sales
Japan North America Europe Asia Central and South America, Oceania, Africa, The Middle East
Market AnalysisToyota

8. Poverty and Regional Growth
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
2014 2015 2016
Projected Regional Growth
Projected Regional Growth
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
2007 2008 2009 2010 2012
Poverty decline
Toyota

9. Systematical approach
•Utilizing a systematical approach by defining and
solving the following:
• Economical risks
• Political risks
• Limits Toyota will face with expansion in Brazil
Toyota

10. Define
•Marketing vision: To increase sales and
productivity
•Target Market: Brazil
•Ideal customer: Middle Class
•Product: Compact automobiles which exceed
100mpg
Toyota

11. Political Risks
•Defined
•High costs due to labor laws(CLT)
• 16,000 labor unions
• Working hours may not exceed 48 hours a week
• Every employee is entitled to 30 days PTO every 12
months; If dismissed must pay back 1/3 of vacation
earned
• Annual bonus equal to one months salary
• 120 days of leave for pregnant women
• Transportation and meals
Toyota

12. Political Risks
•Tax Rates
•Tariffs
0
10
20
30
40
50
60
70
1
68.3
38.7
36.5
47.3 46.3
Total tax rate % of profit
Brazil Europe Asia Mexico United States
Toyota

13. Economical Risks
•Inflation continues to rise
•Interest rates on the rise
•Foreign exchange and capital inflows
•Fiscal policies
Toyota

14. Specific Limitations
•Threats
•Cultural differences
• Values and norms
• Social structure
• Groups
• Religious and ethical systems
• Language
• Education
Toyota

15. Success
Benefits
Size of Economy
Economy Growth
Costs
Corruption
Advertising
Legal Costs
Overall
Success
Risks
Political risks
Economic risks
Cultural risks
Toyota

16. Strategies and Solutions
•Localization strategy
• Introducing affordable fuel economy cars
• Will stabilize the costs
• Will create a demand due to lower fuel costs
• Continue to reduce labor and material costs will help
fight economic and political risks
• This strategy will help fight continued inflation rates
Toyota

17. Localized Production
•Opening factories throughout Brazil will help
create:
• Trust
• Loyalty
• Build rapport
• Create jobs and better cost of living
Toyota

18. Strategic Alliances
•Unions
•Political
•Competition
Unions
Politics
Honda
Ford
Chevy
Toyota
Success
Toyota

19. Cultural Strategy
•Hiring managers and executives within the culture
•Giving back to the community by
• Fixing roads and housing
• Setting up committees to feed the poor
• Implementing tuition reimbursement for employees
going to college within the community
• Only buying products from Brazil for manufacturing
Toyota

20. ConclusionToyota
Profit
BrazilToyota

21. References
2014 Index of Economic Freedom, Brazil. (2014, July 13). Retrieved from
The Heritage Foundation: http://www.heritage.org/index/country/brazil
Brazil. (2014, August 8). Retrieved from The World Bank:
http://data.worldbank.org/country/brazil
Brazil's surging auto industry tries to keep up with demand.
(2012, January 27). Retrieved from Cars Direct:
http://www.carsdirect.com/automotive-news/brazils-surging-auto-
industry-tries-to-keep-up-with-demand
De Sainte Croix, S. (2012, March 23). Middle Class Growth in Brazil: Daily.
Retrieved from The Rio Times: http://riotimesonline.com/brazil-news/rio-
business/middle-class-growth-in-brazil/
Toyota

22. References
Jordan, L. (2012, September 21). Brazil says over 50% in Middle Class:
Daily. Retrieved from The Rio Times:
http://riotimesonline.com/brazil-news/rio-politics/brazil-says-over-
50-in-middle-class/#
Malinowski, M. (2009, August 13). Tax Laws discourage firms from
outsourcing abroad. Retrieved from Business insights in Latin
America:
http://www.bnamericas.com/news/technology/Tax_laws_discourag
Menghani, J. (2013). Marketing Strategies and Plans of Toyota Motors.
Vile Parle: M.L. Dahanukar College of Commerce.
Toyota

23. References
Muller, J. (2012, October 22). Why The World's Automakers Love Brazil.
Retrieved from Forbes:
http://www.forbes.com/sites/joannmuller/2012/10/05/why-the-
worlds-automakers-are-loving-brazil/
Paying taxes. (2014, August 9). Retrieved from The World Bank:
http://www.doingbusiness.org/data/exploretopics/paying-taxes
Toyota