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INTRODUCTION

Marketing can be both
evolutionary and revolutionary. Market keep growing with rise of demand, which
as we all know is unlimited. Demand single handedly cannot control the market
growth there are various other factors contributing. The tremendous growth of technology
which improved communication, distribution, supply chain, production all
together ends up creating the market we see today. Marketing has evolved since
the past decades the concepts, techniques; tools used are no longer the same as
before. Marketing is no longer just a form to communicate about the product or
to create interest. Marketing is now completely about customers, attaining new
ones and retaining the current ones. It is said that making a new customer is
way more expensive than maintaining the current ones. So now every company
concentrates on creating a long term relationship with the customer. Many a time’s
marketing is mistaken as just advertising, but the fact is advertising is just
a technique for marketing. For success of any company it is not only important
to know how to sell but mostly it should 
 focus more on what to make , so for
this it is necessary to know the customers their needs and wants. Marketing is
all about understanding in depth that customer satisfaction is very very very
very important and marketing gives various ways to channel the activities to
create strong customer relation. So what might be the factors influencing the
strategies of a company in marketing? What might be the tools used by companies
to comprehend their target market? Are they useful? so studying a company’s
marketing environment, its policies ,market plan can provide an insight about
such concepts. In this context to study on these areas Toyota Motor Corporation
has been chosen. A well known legend in the motor industry, which has built its
platform on customer satisfaction thus, a right choice to study on marketing
details. Starting off with company overview to critically analyzed new marketing
mix.

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COMPANY OVERVIEW

Toyota Motor Corporation
is the automobile leader and a well known, largest company in the world. it is a Japanese company
founded in 1937, Toyota
Motor Corporation engages in the design, manufacture, assembly, and sale of
passenger cars, minivans, commercial vehicles, and related parts and
accessories(Thembani Nkomo,2013). Toyota is well known for its quality
practices, the production system and customer loyalty. Toyota motors was founded
by Kiichiro Toyoda and has it’s headquarter in Aichi, Japan( Osama
Alshehri,2016).with more than 340 
employees all across the globe. 

Vision and philosophy-Toyota
follows certain guiding principle adding on to its image of innovative and
sustainable brand and believes in forces that power sustainable growth and strives
for improvement in the lives of customers and society(Toyoda,2017).President
and representative director Akio Toyoda is optimistic on the future of Toyota
and  he is ready  to face all the challenges. The vehicle list
consists of MPVs/vans, SUVs, commercial vehicles, hybrid vehicles, plug in
hybrid, fuel cell. Toyota keeps in mind that times changes so does the mode of transport,
they innovate products with high level of fun, flexibility and freedom of
travel. Toyota Motor Corporation is a pioneer in the automobile industry with
wide range of products at affordable cost. This company has been successful in
maintaining a consistent customer satisfaction rate.

External Environment
Analysis – Automobile Industry

For any strategy to be fruitful it is
necessary to have a complete knowledge about market scenario and new trends.
Automobile industry with immense opportunities as well as challenges .evolving
from past decades with many ups and downs .this industry depends on the fuel
prices ,per capita disposable income of consumers. This industry has seen a
tremendous growth with a global  sales of
90 million in 2016 and around 92 million in 2017(mike wall ihsmarkit,2017).for
the coming years this industry is found to revolve around the dilemma of digitalization
that is a fusion of automobile and digital world which quite challenging for
the companies. The changing consumer demands which now shows interests in
battery electric vehicles, autonomous & self driving cars, connectivity,
digitalization. so these key trends make it necessary to concentrate on both
technological& emerging connectivity and digitalization obsession of  the society. Customer expectation has always
been high for this industry which demands for different unique selling
proposition compared to other industries. There is a rich history of providing
improved products which acts as the backbone of the industry success .political
and economic instabilities are the other factors with are influential to growth
and survival .According to global automotive survey 2017 was a year of
political hell with free trade agreement changes, emission regulations, more
import restrictions that can have a major impact. Different parts of world pose
different challenges like production requirement in western Europe, innovation
in china, political changes in middle east which in turn create the demand for
new strategies. Export rate touched more than 3, 00,000 units in 2016 and it
increased by 8.8% in 2017 where around 3,29000 units were exported (ETAuto,
2017)..In such an evolving and challenging industry, Toyota group always
manages to be in successful podium for past years and there is a consistent
effort and innovation from the group to maintain it.

Major
companies in the industry

Toyota, Volkswagen, BMW, Honda group.

Internal Environment
Analysis-Toyota Group

The past statistics have shown how Toyota
group maintain its strong brand image with increased customer loyalty, revenue
and sales. Toyota held a valued  position
among the consumers in 2016 with reported revenue of around 28 million. This
success is entirely due to the skilled manufacturing system, healthy supplier
relationship, strong organizational structure, and efficient supply chain and
distribution system.

Resource
based view –Toyota
has a efficient manufacturing system which is well admired for its material and
inventory system .it’s well flourished value chain, relationship with suppliers
ensure that the inventory reaches the plant at proper time .Toyota makes more
profit than its competitors because of its strong linkage with suppliers.

 

 

 

MARKET POSITIONING

Toyota positions itself as cost effective brand
in the minds of consumers with innovative product development feature. Toyota
has something to cater every type of customer. Toyota is known for its
differentiation strategy with proper marketing and advertising back up .Toyota
comes with perfect taglines for each of its products  like Toyota GT86 with “grab the steering and
feel the excitement”, Toyota avanza with “smart in style’. Toyota is well recognized
for its supreme design and quality. Due to several competitive advantages
gained through features like hybrid vehicles Toyota have been successful in
creating strong brand.

Toyota is being positioned as a reliable
brand with impressive performance. it is called a reliable brand because
everyone can expect at least one product at their affordable level. Toyota
understands that fact that not everyone are blessed with a high disposable income,
so being a customer conscious brand Toyota make use of this fact and
manufactures variety of products that that can be in the list each automobile
love irrespective of being rich or middleclass. So this makes it possible that
every consumer can not only dream but can buy a Toyota car in real.

In this way Toyota owns a wide range of
products in the industry positioning it has a reliable affordable, supreme
quality brand and most importantly it never committed the mistake of over
positioning like many other automobile brands.

Target
market- Toyota targets
upper middle class and high income groups. Family size is a high priority while
designing products for middleclass. Sporty cars are designed for youngsters and
high income groups.

As Toyota focus on the consumer satisfaction
and buying traits it could said there is focus to demographic and psychographic
segmentation. Demographic traits being family size, age, income is taken for
mainly upper middle class. People with same demographic traits may have
different psychographic traits like lifestyle, tastes preferences etc which can
be influential for high income groups.

 

 

USP OF TOYOTA GROUP

The unique selling proposition revolves
around its high quality product with sustainable brand image which is
attributed by the lean manufacturing
system .this has given a competitive advantage and a market leadership.

Core
competence

these are set of characteristics that a
company should focus while creating products which makes it unique and hard to
copy by other organization thus adding to the competitive advantage (prahlad,
hamel, 1990).Toyota’s core competence lies in its ability to produce innovative
products according to need and trend of the market .one such example is TOYOTA
PRIUS a electric and hybrid car giving a tough competition to the rivals
including BMW. This fast fuel saving car with hybrid is a best-selling unique
product which is now being copied by the competitors.

Other than the TPS Toyota believes in the
benefits of moving forward due to which Toyota comes up with novel products,
keeping up with the advances in technology. customer service is another well
remarked policy increasing customer loyalty.

 

 

 

 

MARKETING AUDIT

The marketing audit is a gives well defined
description and examination of company’s, overall attributes contributing to
both positive and negatives sides of the firm, it includes all strategies,
action plans, problems in both internal and external environment.(Philip kotler,
1999). The marketing audit of Toyota is going to open up the marketing environment,
marketing strategies, action plans are the soul part of this company. Before implementing
any strategies it is necessary to understand the strengths, weakness, threats and
opportunities of the corporation. Various methods could be used to analyze the above
parameters there is SWOT analysis. This rate critically about factors relevant to
understand about the overall growth problems faced, goals achieved new limits
to be set, other opportunities left unexplored. Having a thoroughly analyzed SWOT
plan can aggregates all information regarding the success of various strategies
which can be further used in future for modifications to the firm. A large
company like Toyota requires a well sorted SWOT analysis.

 

STRENGTH

Ø  Strong brand image
Ø  High reputation
Ø  A wide array  of products
Ø  Lean manufacturing system
Ø  Customer loyalty
Ø  High brand equity
Ø  World class equipments
Ø  High employee rate
Ø  Efficient supply chain
Ø  Linkages with suppliers

WEAKNESS
 
 
 
 
OPPORTUNITIES

Ø  increasing
competition
Ø  new
challenges in the industry like digitalization in automobile industry
Ø  product
recall
Ø  need
for rapid innovation
Ø  increasing
demand for fuel efficient vehicles
Ø  hybrid
engines
Ø  increasing
income of upper middleclass
Ø  growth
in global market like Japan
 

THREATS

Ø  changing
consumer behavior
Ø  low
cost manufacturing
Ø  economic
instability in various markets

 

It is an internal strategic attribute. These factors included in
strength are entirely dependent on internal environment. As mentioned before Toyota
has a very strong well maintained internal structure that helps it to gain all
the mentioned factors. This proves the capability of the firm to consistently perform
well in market. The firm should always work in order increase the strength. In
a very competitive market this will help in order to sustain. There is always
another side for the coin we also is of importance so the weakness are natural
but are not to be ignored a company like Toyota comes up with various action
plans in order to overcome all weakness. Even a simple unnoticed error can be
highly expensive because customers will easily get persuaded by these weakness
to go for other brands so weaknesses are 
to be rectified with shorter lead time.

Markets always open up with new opportunities that can be completely
exploited by a company like Toyota. A leading manufacturer like Toyota can easily
make use such opportunities. Increasing demand of hybrid cars and fuel
efficient vehicles are a smooth sea to be sailed on for Toyota more than competitors
because of the technical support, high class engineering which are some of the
strengths of Toyota. As the target group includes the upper middleclass people
the increase their disposable income can thus bring new colors to product
portfolio and sales. Threats mainly are the ones that are being faced globally
by the automobile corporations. Consumers without any doubt will evolve their
needs change wants increase, economic, political situations in various markets
are also not predictable still by experiences from past decades it will  to better to be prepared for such a  adverse situations. There are competitive
firms like Honda group, BMW in race with competitive advantages.

 

PEST ANALYSIS

The external environment is mainly the source of threats which make it
necessary to study about the external forces affecting the company it can be
both positive and negative. This makes up the macro environment of the company.
As a pioneer in the global market it is important to strategize according to various
changes in different domestic market.

In each factors some
are opportunities whereas others being threats, as mentioned earlier automobile
industry is both a hostile and friendly industry to dwell. So political
stability can be a opportunity but not all markets provide such perks.  Improved and easy markets with no political
tension can actually stimulate growth of the market as well as the company so
such market should identified in each financial year like Japan’s improved
reforms through free trade agreement can help in focusing on the market
penetration. Export and import trends of the company can be highly influenced
by the economic fluctuations in the markets. Developing countries emerge with
new opportunities at the same time both developing and developed countries
being the extremes of economy requires different strategic plan. So while
planning and implementing the economic differences and instabilities are of
major importance. The era of digitalization demands differ from the typical
ones of the industry, but the technological advances provide backup commerce
advances are also a opportunity to which saves manual power, space, fast communication.
Improving the mobile apps can open a set of opportunities for Toyota Corporation.
All these factors contribute to the external environment of Toyota. Until now Toyota
has taken care of all the factors efficiently.

 

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