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  1. 1. Running Head: MARKETING PLAN FOR TOYOTA MOTOR COMPANY Name: Professor: Institution: Course: Date:
  2. 2. Marketing Plan For Toyota Motor Company 2 1.0 Company Description The Toyota Company is a leader in the car manufacture, assembly and distribution theworld over. A very efficient management style that the company uses has been one of the reasonsfor the firm’s good performance. There are many other salient factors that have made the companyachieve the niche of market leader. The market structure the company operates in can not bedefinitely stated. Some may consider it to be a monopoly. This is due to the fact that the company isa dominant market player in car exportation. In fact, its differentiation strategy has made it enjoy analmost 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 keyplayers like GM who are peer competitors. Toyota is keen to see what these competitors are doingand 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 totheir overall impacts caused to the marketing plan of Toyota Company. These are;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 infuture, and this is supposed to be in synchronization with a number of factors: the significantenvironment, global economy, local communities served, and the Internal Environment ofstakeholders2.2 The Company’s Goals The company has committed itself to offering of hybrid alternatives for every model thatis sold in the market. This is aimed at enabling the Company to make a total sale of 1 million
  3. 3. Marketing Plan For Toyota Motor Company 3hybrid 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 committedin six different key areas, which are: the Environmental Management; changes in Energy andClimate; the Quality of Air; concerned Substances; the aspects of Recycling and ImprovedResource utilization; and Societal Cooperation. The Company is committed to reduce carbondioxide emission and it is believed to take combined actions of ensuring that the environment iskept clean all the time by observing the stated fuel economy values.2.3 Core Competency and Sustainable Competitive Advantage Toyota Company is working towards the achievement of a better and more sustainableeconomy by having a stable global market. With advancement in new technology and otherrelated matters, the Company is investing in various strategies that will enable it to realize its setgoals and objectives over a period of time. The Company has a well developed and equippednetwork of expertise that are into research and development over aspects that are to keep theCompany on top in product and service delivery to its global market. Also it has a wide range ofdistribution network allover the world and this has enabled it to reach a portion of the market thatis seeing it through to greater levels. 3.0 Situation Analysis Toyota’s capacity to stay on top of productivity efficiency and quality rankings can becredited to its internal environment. This entails the way production process is managed by the topmanagement who are famous for their competency. The production team has an insatiable obsessionto improve the efficiency and effectiveness of its manufacturing operations. Therefore, to fullyunderstand the situation analysis of Toyota Company, a SWOT analysis is determined and it mainlyconsists of the Company’s strength, weaknesses, available opportunities, and finally the threats that
  4. 4. Marketing Plan For Toyota Motor Company 4the 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 theirimpact starts from within the Company, while opportunities and threats normally originates fromoutside of the Company, hence referred to as external factors.Figure 1: SWOT Analysis of Toyota Company (Internal Factors)Internal Factors Strengths WeaknessesManagement Having competent and Large size of management experienced management team team reduces chances of and board members moving fast into the targeted market, because of slow rate in decision makingOffering Hybrid products that are Expensive in proofing the customer friendly market that are right products for themMarketing Distribution of products into Expensive in establishing this the market through wide range distribution network of identified branchesPersonnel Have good skilled workforce The gap will be big if the who are relied upon employees left the CompanyFinance Improved revenues from sales Limited workforce and made in the global market material may slow down the growth of the Company in relation to competitorsManufacturing Main supplier of material Different supply interests ensure fast and quality among the Company suppliers
  5. 5. Marketing Plan For Toyota Motor Company 5 material and other competitors.R&D Quality of products delivered is enhanced through out the period of doing businessFigure 2: SWOT Analysis of Toyota Company (External Factors)External Factors Opportunities ThreatsConsumer/social Stability of the upcoming Low priced products may market is highly projected proof that the quality of the products is quite lowCompetitive Differentiated products and Products of high technology prices make the Company to are being introduced into the be quite distinctive in the market by other competitive market companiesTechnological Break-through in technological standings is a better course for the Company to improve on the quality of its productsEconomic Improved consumer income Individuals opting for other has made it convenient for the products since they have Company to get deep into the enough disposable income marketLegal/Regulatory Regulatory measures ensuring fairness in the market and avoid over-exploitation by other competitors
  6. 6. Marketing Plan For Toyota Motor Company 6Figure 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 manufacturers3.2 Industry Analysis Toyota Company is able to apply its strengths and opportunities it has to create acompetitive edge in the industry. For instance, the widely differentiated product line is helpingthe company to have more global presence. This can also be achieved through entering newmarkets like China and Europe. Toyota has previously concentrated on the Japan and Americanmarkets 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. Withthe fear of depletion of the fossil fears coupled with the global warming effects, there is a readymarket for the Toyota’s hybrid car. The company can also use this opportunity t sell itstechnology to other firms3.3 Company analysis Toyota Company is one of the world’s leaders in car export and it appears to literally beliving its mission, which is to be the world leader in the creation of automotives that are best in
  7. 7. Marketing Plan For Toyota Motor Company 7terms of value. The company is working towards the end of creating a society that is prosperous byproviding their clientele with the best value for their money. They believe in giving the best pricesfor the client yet still deliver a vehicle that is at per with those being offered by their other majorcompetitors. This could be the reason why their products are having a very good market in thedeveloping nations. The Company is also conscious about sustainable development, and this can beclearly seen in its different corporate social responsibilities as well its sustainable developmentinitiatives 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 veryrich. They are widespread around the world. Toyota has catered for all car needs that may arise forany individual with their wide range of motor vehicles. They range from small sports cars to bigfamily vehicles and trucks as well as vans. The customers comprise a varied group of people, withdiffering ages, incomes, geographical locations, and social and cultural statuses. Customers go forToyota products to satisfy different wants and needs. Low income earners are provided with a basicmode of transportation that is both within their price range and efficient. Clients going for class andelegance 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 individualspurchase the company’s product, there is an increased exposure to its other products. Productawareness is enhanced through advertisements, newsletters, website information, and otherinformational sources. The opportunity for Toyota to generate income from complimentaryproducts such as books and seminars by members is very big.
  8. 8. Marketing Plan For Toyota Motor Company 8Where 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-linepublications diminish paper waste while giving existing and direct availability of the product toclients. Customers are able to order a product in stores and with a toll-free number directly from thecompany as well (Booz, 2007). This grants customers around the world access to the company’sproducts.When do they Purchase? Individuals can purchase the company’s products anytime that they like, at any time of theyear. This is because Toyota sells its cars all year round, except for the limited editions which arepurchased directly from the factories. New users often purchase cars after acquiring a driver’slicence in the case of some countries when going to high school or to college in others. Other usersusually purchase a new car when the old one breaks or gets too old or when they want to trade in fora newer car or a different model.Why do they Purchase? Customers select Toyota products over other manufacturers primarily because of theircomprehensive, yet specialized, nature. Toyota offers a diverse range of cars that encompass allneeds of the clients. They are focussed on building and maintaining high standards when it comes tothe products. They offer cheaper alternatives to the clients for the same products from othermanufacturers that are quite expensive. Toyota has also invested heavily on safety in their cars. Asthe globe goes green and clients call for an appropriate response from their car manufacturers,
  9. 9. Marketing Plan For Toyota Motor Company 9Toyota have responded by investing in hybrid cars, the Prius. This may be the future of the motorindustry. The high quality products make it all that easy for a customer to go back to the shop andpurchase 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 widerpopulation than their customer base actually reflects. There are many car manufacturers who havecome up and the motor industry is currently flooded with many products. Many of these productsare similar, often differing due to one or two features that may or may not be significant. In thiscase, it comes down to personal like and dislike. The other reason is the issue of class and socialstatus. Toyota products do not always give the implication of a high social standing. A customermay choose to buy a car from a competitor and not from Toyota simply because of that, and yet thecar is the same. 4.0 Product-Market Focus In this section, the Company three year development projections is clearly explained invarious categories, which are developing of a strategic focus; marketing goals and objectives; targetmarket; and the Company position in the market. 4.1 Developing a Strategic Focus Toyota has already embraced product differentiation as a major strategy in marketpenetration and the strategy is working well. It is determined to use a pricing mechanism thatwill give it a competitive edge over its main competitors. The cost of production of a unit forToyota is projected to be large but due to possible mass production plants, the overall cost willnot be a huge issue in this case. This means the company will be able to sell its products at aneven lower price yet still remain profitable. The company is taking an advantage of this and
  10. 10. Marketing Plan For Toyota Motor Company 10using 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 forToyota and requiring more of their products. The perceived importance of owning a car due toincreased 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 ofcustomers 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 loyalto the company (Armstrong & Kotler, 2002). Then, everyone has a chance to know the realvalues 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 itsdifferent models. This is as a cost cutting measure; they intended to compress their platformsfrom 20 to ten in the ambitious exercise. This is especially important since their chief rivals; GMand Ford have made notable improvements in their production process. Toyota is also thinkingtwice about its bloated assembly points. It is thinking of best ways to reduce them withouthindering its efficiency (Mullins, Walker & Boyd, 2010).4.3 Target Market Each of Toyota’s products is designed to target a specific market. The design criteriarange from top speed, capacity and exterior appearance like color and shape. There is a highspeed, small, two-seat model cars for the relatively younger and single people who areadventurous to the big five-seat models for the family set up. Demographically, they also target
  11. 11. Marketing Plan For Toyota Motor Company 11situations 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 arelacking in flair and design unlike those of GM and Ford. This has led the company to be moreattentive to its American designers to make sure this needs are met. The V8 pickup which waslaunched recently was as a result of this ambitious. The hybrid model, Primus, has also beentransformed since at its inception, it didn’t hit the American market. When they made it lookmore futuristic, it resulted in big volumes of sales. Overly, the Toyota Company is giving its competitors a hard time. Even though it hasexperienced challenges like the recent recalls, it is still notable in market leadership position. Ifthe current impressive results and global positioning of the company is anything to go by, thenthis 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 notexpensive and readily available. This has been a significant factor that has enabled the Company tohave 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 termsof 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 hasenabled it to sell widely in the global market. It has also included the strategy of hybrid product,
  12. 12. Marketing Plan For Toyota Motor Company 12where 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 thatcan be bought at a reasonable price. The Company has also been using tactful pricing strategiesthrough 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, ToyotaCompany has positioned itself all over the world giving it a clear cut within the market. Withinthree 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 competitiveedge over its main competitors. This is a mechanism that it is using to market itself so that it canget hold of market share that will see it better in achieving the highest level in the market. 6.0 Marketing Implementation Analysis Toyotas main focus will be in reaching the new markets of China and Europe. It will alsobe concerned about the competition from other firms like Ford and GM. An advantage thecompany has is the widely differentiated product range. Establishing new factories in these newmarkets as well as opening up new franchises will help the company in getting an ease ofpenetrating the new markets Human resource is one of the most important aspects in this plan. The company shouldalways make sure they have highly motivated staff as this is directly proportional to goodproduction both in the qualitative and quantitative aspects. Toyota can do this by coming up with
  13. 13. Marketing Plan For Toyota Motor Company 13 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) 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 Yenyear 2009 2010 2011 2012 2013
  14. 14. Marketing Plan For Toyota Motor Company 14 1,243,445 1,455,650 1,900,340 1,957,879 2,000,534 Net Sales Operating income 54,120 65,023 89,954 98,0530 99,760 Ordinary Income 70,912 80.636 108,484 125,444 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 Person/Department Required Completion Specific Tactical Activities Responsible Budget millions Date of yenProduct Activities Production 30.45 20111.Car air conditioning compressor engineers and2.DC-DC converters for fuel efficiency Product3.Low Exhaust Emission Engine managementPricing Activities Operations 15.25 20121.New Technologies management2.Compression of Production platforms3.Merger of Assembly pointsDistribution Activities Logistics 21.40 20101. Opening up of new factory in America and managementchina
  15. 15. Marketing Plan For Toyota Motor Company 152. Machine handling3.Logistical operationsIMC (Promotion) Activities Marketing manager 9.20 20121.Concerts2.Volunteer3Youth 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 Cumulative Targeted Markets (millions) Markets (millions) Today (2010) Working towards 250 250 hybrid products st 1 Year (2011) Introduction of pricing 320 600 mechanism and price differentiation strategies. nd 2 Year (2012) Enhancing hybrid 370 970 products by use of new technologies 3rd Year (2013) Product differentiation 420 1320 to meet the needs of the market 9.0 Evaluation and Control
  16. 16. Marketing Plan For Toyota Motor Company 16 There is a monitoring and evaluation team that will be set to watch over the progress of thecompany in realizing the strategic goals. The short term goals will be clearly watched andcorrections put in place where targets are missed for they are the keys to fulfilling the long termgoals. Currently, the Company has made a clear step forward in ensuring that hybrid vehicles arebeing produced, and so far the market has started improving in terms of overall reception of thesebrands of vehicles. Another aspect that is supposed to be considered here is the speed of the roll-outprogram of pricing mechanism introduced. Currently, it has taken the market by surprise as most ofToyota products are found to be customer friendly. The Company has been able to come up with adifferentiation program for its products and this has helped it to have a huge market share. It isprojects to improve and reach the target within three years and this will be determined by the rate ofgrowth and the total number of market reached. ReferencesArmstrong, G., & Kotler, P. (2002). Marketing: an introduction (International edition). New Jersey: Prentice Hall. Retrieved October 7, 2010 from http://www.pearsonhighered.com/educator/product/Marketing-An- Introduction-7E/9780131424104.pageArmstrong, 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/
  17. 17. Marketing Plan For Toyota Motor Company 17Booz, 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.pdfChamberlin, P. (2009). Customer service complaint handling. New York: The Gurdian. Retrieved October 7, 2010 from http://www.impactfactory.com/p/customer_service_skills_training_development/issues_9 36-2103-87287.htmlDobni, B. (2002). A model for implementing service excellence in the financial services. Journal of financial services marketing , 40-42. Retrieved October 7, 2010 from http://www.palgrave-journals.com/fsm/journal/v7/n1/abs/4770071a.htmlDrummond, G., & Ensor, J. (2005). Introduction to marketing concepts. Oxford, UK: Elsevier. Retrieved October 7, 2010 from http://books.google.co.ke/books? id=Th54pUFEo6EC&dq=Introduction+to+marketing+concepts.+Oxford,+UK: +Elsevier.&source=gbs_navlinks_sFlanagan, N. (2007). How to provide exceptional customer service. New York. Retrieved October 7, 2010 from http://ezinearticles.com/?How-to-Provide-Exceptional-Customer- Service&id=2726818Johannes, 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/9780471352648Johnson, J. M. (2009). Five pillars of sustaining exceptinal service. Chicago: 3 Palms Publishing Group, LLC. Retrieved October 7, 2010 from
  18. 18. Marketing Plan For Toyota Motor Company 18 http://www.communicoltd.com/pages/166_five_pillars_of_sustaining_exceptional_servic e.cfmHiroshu O. (2003). Chairman’s message. Retrieved September 30th 2010, from the Toyota company website. http://www.toyota.co.jp/en/ir/library/annual/pdf/2003/chairmans_message_e.pdfKirrane, D. E. (1990). Managing values: A systematic approach to business ethics. Training and development journal , 53-60.Lancaster, G., & Reynolds, P. (2005). Management of marketing. Oxford: Elsevier. Retrieved October 7, 2010 from http://books.google.co.ke/books? id=T6qHIr_hGYsC&dq=Management+of+marketing.&source=gbs_navlinks_sLascelles, D. (2006). Tell us the truth. Financial world , 37-39.Levitt, T. (1975). Marketing myopia. Harvard business review , 26-40. Retrieved October 7, 2010 from http://www.casadogalo.com/marketingmyopia.pdfMullins, J., Walker, J. O., & Boyd, H. W. (2010). Marketing management: a strategic decision making approach. Boston: A McGraw-Hill Irwin. http://books.google.co.ke/books? id=u_UJAQAAMAAJ&q=Marketing+management: +a+strategic+decision+making+approach.+Boston:+A+McGraw- Hill+Irwin.&dq=Marketing+management:+a+strategic+decision+making+approach. +Boston:+A+McGraw- Hill+Irwin.&hl=en&ei=YZ2tTJD_JoOUOoLovc0F&sa=X&oi=book_result&ct=result&r esnum=1&ved=0CDAQ6AEwAAPorter, M. (1985). Competitive advantage. New York: The Free Press. Retrieved October 7, 2010 from http://www.12manage.com/methods_porter_competitive_advantage.html
  19. 19. Marketing Plan For Toyota Motor Company 19Porter, M. (1996). What is strayegy? Harvad business review , 61-69. Retrieved October 7, 2010 from http://www.ipocongress.ru/download/guide/article/what_is_strategy.pdfShaffer, J. (2003). Communicating for business results: how to choose and execute communication projects that dramatically help company. Journal of employee communication management , 34-36.Thomas, J. G. (2001). Business planning: long range and strategic management. Dublin: Black Hall Publishers Ltd. Retrieved October 7, 2010 from http://books.google.co.ke/books? id=MiR2ls7Uyo8C&dq=Business+planning:&source=gbs_navlinks_s