This document discusses strategies for expanding Toyota's sales into Germany and Saudi Arabia. It begins by reviewing the strategies of competitors like GM, Ford, and Volkswagen. It then proposes strategies for each new market: promoting Lexus in Germany through compact luxury vehicles and the Land Cruiser/Tundra in Saudi Arabia due to their large vehicles preference. Sales and management structures are outlined, including international training. Metrics are established to measure the goals of increased sales in key vehicle lines in each respective market.

1. Strategy and Tactics:
In order to understand our tactics and strategies it is important to look at the competitors’
methodologies. From this information we can began to devise a successful business strategy in
sales and marketing. First looking at GM as they own 6.9 % of the market. There 40k goal is
growing their luxury brand and making them affordable for more middleclass.
Goals and Strategies 30K for GM:
 With a 9-10% margin on an EBIT it helps them attain their goal of minimizing cost. They
are able to do this through a mixed body part processes and then marketing quality and
innovation.
 In 2015, 27% of GM’s global sales volume from new products. The company is focusing
on gaining sales through growing their luxury vehicle brands
o Growing Cadillac and beginning new marketing campaigns that focus on selling
these luxury brands to a more middleclass market. They have also added 6 new
brands.
 Continue Growing in China in order to lower manufacturing costs and develop better
supplier relationships.
o 14 Billion dollar investment is the 20k strategy as it is the actual amount
dedicated to the strategy.
While GM is focused on growing their luxury vehicle, Ford’s 40K is accelerating the
development of new products their customers want and value.
Ford’s 30K:
 Finance their plan and improve their balance sheet through vertical integration of
manufacturing practices.
o Global Brand Identity is already established and they plan on promoting the
identity to assist with global expansion.
o “Go Further” Plan (people serving people, ingenuity and attainability)
 5.6% of the market
Lastly, we wanted to focus on the biggest competitor we will be challenging by establishing
ourselves in Germany and need to find out what made them successful. Volkswagen is known
for its “German Engineering” and their main 40K deal with maintaining that sense of quality and
expand passenger vehicles due to the success they have accumulated in the past.
Volkswagen 30K:
 World Premier of the new Passat. The Passat was the most successful vehicle in Western
Europe last year. Therefore they developed a newer model and primarily focused on
quality.
 Outsourcing to China is established to lower manufacturing costs. They have currently
opened two new plants this year.
 Passenger Cars 7,075,013 cars which is (+5.7%) than last year which promises growth
due to the popularity of the smaller compact vehicles.
 Commercial vehicles are a declining market and decreased (-5.2%) from the previous
year.
o Examples: Audi (+10%), SKODA (+13%), Porsche (+13.5%)

2. o Overall increased share of passenger car market in Western Europe to assist with
the 40K strategy.
After looking at the competitors, the landscape and culture of Saudi Arabia needed to be
researched in order to be sure of a smooth movement into their automotive industry.
 Own 17% of the world’s petroleum reserve which indicates they do not have to worry
about MPG and can afford larger more luxurious vehicles.
 Market grew 337,000-773,000 from 2013 to 2014 as they want to become a king in the
global automotive industry.
 Largest importer of vehicles in the Middle East proving their enthusiasm
 Smaller, lower priced cars resulting from a burgeoning middle class which will also open
up the market for our popular models.
 Membership in the Gulf Cooperation Council (GCC) which allows discounts on tariffs
and can be useful for supplies integration.
 They want to expand the automotive market
o new factories, more domestic jobs
After examining these key elements to the environments and cultures we will be operating in and
therefore we need to find our core competencies and then adjust our practices to fit in the new
countries.
Toyota’s Strategies:
 The prices are based on the actual costs of the car; Toyota does not overprice.
 290 dealers employing 40,000 sales personnel
 Toyota owns 19 of these dealers
 Operating 4,800 sales/service outlets
 Suppliers into two tiers (levels of responsibility)
o 1st: Product Development
o 2nd: Individual parts
 “Market price minus” system, not “supplier cost plus” system
 Long term supplier relations

3. Integration into the New Markets:
Based on the information about Volkswagen’s strategies along with the major global competitors
the best strategies for advancing into Germany include:
 Revamping market strategy through luxury passenger vehicles. Based on the rise and
success of passenger vehicles in Western Europe and GM’s intense growth of luxury
vehicles (Cadillac) it makes sense to follow in this direction. This is evident through
Audi’s success.
 Therefore for the 30K we are going to promote the Lexus Brand with compact vehicles.
o We will measure through the amount of sales revenue of this specific brand. The
promotion will begin with intense commercials for Lexus and attempt to override
the German associated quality with Toyota’s Japan associated quality for the 20K
strategy.
When entering Saudi Arabia the fact that they do not have to worry about MPG, they want to be
the most iconic member of the automotive industry, and they have cheap manufacturing instilled
with vertical integration.
 Help them become an automotive king in the industry through promoting the Land
Cruiser and Tundra.
 Create domestic jobs and save money through manufacturing and labor due to the current
labor relations.
 We can sell vehicles they want because of oil, therefore this market will not have to
worry about cost and “affordable quality”
 Measure through Sales of these two Vehicles in the Middle East and based on the number
imported and distributed.
Structure:
We will be opening plants in each of the countries and will need a large enough sales force to
begin the promotion plans. I will need at least two different sales managers with 5 direct reports
each for each plant. This number will allow each team to learn and grow off of each other. The
chart will look accordingly:

4. Austin Fouts
Vice President of
Sales and
Marketing
Manager #
Sales
Manager
(Germany
District)
Manager #
Sales Manager
(Germany
District)
Manager #
Sales Manager
(Saudi Arabia
District)
Manager #
Sales Manager
(Saudi Arabia
District)
Employee #
Sales
Rep
Employee #
Sales
Rep
Employee #
Sales
Rep
Employee #
Sales
Rep
Employee #
Sales
Rep
Employee #
Sales
Rep
Employee #
Sales
Rep
Employee #
Sales
Rep
Employee #
Sales
Rep
Employee #
Sales
Rep
Employee #
Sales
Rep
Employee #
Sales
Rep
Employee #
Sales
Rep
Employee #
Sales
Rep
Employee #
Sales
Rep
Employee #
Sales
Rep
Employee #
Sales
Rep
Employee #
Sales
Rep
Employee #
Sales
Rep
Employee #
Sales
Rep
International Training Needs Analysis:
All of these employees listed above will be current employees that we will initiate longer
training in order to better suit themselves for their new countries. Saudi Arabia will be the most
difficult, as their culture is very different than the “American way”. They tend to stand close to
each other and be quick and to the point, but with respect. Therefore, we will have the two Sales
Managers go through a two week leadership and cultural understanding conference in Reno and
will cost about $5000 per manager. The employees will need constant training and will attend a
monthly leadership/cultural management course provided by a private contractor. This will cost
around $1000 per employee per month. Although it may seem expensive, it is important to stay
on top of their performance and continue to enhance their skills. Also, they will be extensively
trained with the Tundra and the Land Cruiser as they will be our primary products sold.
As for the training in Germany, it will be more focused on integrating with German business
practices and understanding their way of management. German business tends to be
collaborative and teamwork oriented. The Managers will also go to a seminar in Reno for two
weeks, costing about $5000 per person. After also observing in Germany for a week, the
managers will train their employees along with a monthly follow up class taught by a private

5. contractor ($1000 per employee). Germany is more align with the United States businesses
practices and will be easier to adapt because their culture is also similar. These employees will
focus their attention on the Lexus brand and product knowledge.
Metrics:
Current Performance 2014:
 Lexus sets best-ever, any month
sales record
 Combined TMS light truck sales set
December record
 SUVs, RAV4 and Highlander set
December records
 4Runner posts best month of 2014
 Corolla sales top 30,000, up 33.5
percent
 Camry sales of 31,618 up nearly 5.5
percent
 Lexus RX sales of more than 13,500
up 3.5 percent
 Highlander sets new one-year sales
record
 Lexus sales top 300,000 for the first
time since 2007
 Lexus IS sets new one-year sales
record, up 46.7 percent
 RX top Lexus seller and exceeds
100,000 for second straight year
 Lexus GX sales up 87 percent for the
year
Realistic Goals:
 Increase Sales of Lexus by 5%
 Increase Tundra Sales 6.3%
 Exceed previous year growth
rate (2.9%)
 Tundra and Land Cruiser
highest imported vehicle in the
Middle East
 Lexus GX Sales increase 50%
 Lexus Sales top 400,000 by the
end of the fiscal year
 Each product in the Lexus brand
to increase sales by at least 10%
from previous year.

6. International Matrix Management:
Vice President of Sales
and Marketing
Production Sales FinanceResearch
VP Germany
VP Saudi Arabia
VP North America
Women in International Management:
When it comes to deciding the gender of the management figures for Saudi Arabia the decision
to make them men is obvious based on the culture that is instilled in the country. Women are
objectified and not supposed to show skin, drive, or many other activities. They are seen as
nurturers and caregivers for the children and the husband. If we were to bring a women into
management the company would be looked as inferior and pushing the limits of their traditions
and beliefs.
As for Germany, they are more progressed and have an increasing number of women in the
workforce and management positions. In this scenario it would be beneficial to have a woman in
management as the company will look progressive. However, as an international company we do
business with less accepting cultures like the one mentioned above. Therefore it would be more
logical to have a man in management to ensure the global business aspect does not become
affected.