Marketing Strategy and Plan for Toyota Automobile

This study evaluates the marketing strategies of Toyota Automobile, including STP analysis, 4P marketing mix strategies, and assessment of current trends and market environment. It also provides an internal and external environment analysis of the company.

Marketing Strategy and Plan
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Table of Contents
Introduction......................................................................................................................................3
Organizational Background.........................................................................................................3
Discussion........................................................................................................................................4
Evaluate the Application of Marketing strategies.......................................................................4
STP Analysis of Toyota...........................................................................................................4
4P Marketing Mix Strategies...................................................................................................5
Assess the Current Trends and Overall Market Environment.....................................................6
Internal Environment Analysis................................................................................................6
External Environment Analysis...............................................................................................8
Conclusion.....................................................................................................................................10
Appendix........................................................................................................................................11
References......................................................................................................................................13
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Introduction
In present days marketing is essential for every organisation to trigger the sales volume for
further growth. The companies are now focused on digital marketing to provide information with
a view to new product launch, the specification of existing products to grab the attention of huge
customers (Ottman, 2017). All the business organisations are using various promotional
strategies such as word of mouth promotion, social media promotion to improve the overall
financial position of the company. The company needs to research the whole market and also
needs to recognise own ability before implementation of marketing strategies (Tuten and
Solomon, 2017). Effective market research also helps management to gather data about the
competitive market. This particular study mainly focused on the marketing practices of the
Toyota Automobile. Identify the environment of Automobile industry also helps this
organisation in improving its products leads to increase customer satisfaction as well as sales
volume.
Organizational Background
Toyota is one of the largest automobile manufacturing companies all over the world. The
headquarter of this company is in Aichi, Japan and more than three lakh sixty-nine thousand
employees are currently working in this organisation. According to secondary data, it has been
identified that in the financial year 2018, revenue of this company is $261 billion and the net
income of the organisation is also high that means the current financial position is high enough to
expand the business in other emerging market. Current the senior management is focusing on
Hybrid electric cars due to the negative environmental impact of fueled vehicles (Toyota Motor
Corporation, 2018). This organisation also used various marketing strategies through social
media and digital media you improve the brand image more. The management of this
organisation takes a long-term decision based on market research. Identify the market
environment also provided this organization with huge competitive advantages in operating
market (Olhager and Feldmann, 2018). The senior management of Toyota needs to take further
marketing strategies according to fulfil the demand of customers, and that will help the
organisation to improve its sales volume further leads to enhance financial profitability.
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Discussion
Evaluate the Application of Marketing strategies
Marketing strategy is vital for all the business organisations to improve sales as well as increase
organisational financial position (Ottman, 2017). Advancement of digital media also enhanced
the overall marketing system so that company can use paid advertising, relationship marketing,
word of mouth marketing, internet marketing, and diversity marketing, transactional marketing
etc. to attract more customers toward the brand. Apart from that, use of 4P’s strategy, STP
analyses also helps the company to enhance the overall company position effectively (Refer to
Appendix-2).
STP Analysis of Toyota
Segmentation
This organisation also provides the right car in the right places. This company has segmented in
various countries of the world. This organisation also made various car models for different
customer segments such as based on income, lifestyle, and other requirements (Banerjee, 2017).
Effective design of the vehicles also attracts all customer segments. The use of behavioural
approach and identify the psychology of customers also helps this company to maintain a huge
number of loyal customers. Apart from that, this organisation is now focusing on the hybrid
electric card to fulfil the demand of customers that will create a less negative impact on the
environment.
Target
Based on Price, design and specification of cars it also targets the customers. Toyota also
manufactured some high-performance car models for the high-income people, and it also
produced economic class vehicles for the medium class people (Bitondo, 2017). Company
launches high performance vehicles in high economy markets of developed countries and also
launches the economy class vehicles for emerging countries. Not only personal cars or supercars
but this organisation also produced the passenger cars and trucks, and it supplies its passenger
vehicles in various public and private sectors of different countries.
Positioning
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This Automotive organisation follows both low-cost strategy and differentiation strategy to gain
more competitive advantages from operating market. The scope of this organisation is vast in the
market for that reason the organisation has a variety of customers (Toyota Motor Corporation,
2018). It’s different types of vehicles such as SUV models; Sedan class general grabs the
attention of many customers. Development of products is essential to maintain a good market
position so that this company also spends a huge amount on research development works leads to
increase in sales volume. According to research, it has been identified that both the brand power
and brand value of Toyota is very high in comparison to other automobile organizations (Refer
to Appendix- 1). So that, the brand position of this company is higher than other automobile
companies.
4P Marketing Mix Strategies
Use of an effective marketing mix strategy is important to increase the number of loyal
customers as well as sales volume. Selection of proper price, place, product and promotion will
also provide the organisation huge competitive advantages. The elements of Marketing mix
strategy are described below (Refer to Appendix-3).
Product
Products are the main focus of all the organisations because the general public generally reviews
the product quality before buying it (Khan, 2017). Due to the advancement of digital technology
the product specification are easily available on the websites so that all the business organisation
needs to provide their level best to grab the attention of more customers. High quality and
performance vehicle can attach the customer psychologically with the rand, and good service
generally helps to retain the customers. For that reason, management needs to take feedbacks
from potential customers, and that helps the organisation in improving product quality according
to customer requirements.
Price
Product price is another major factor for all business organisations in maintaining the sales
volume efficiently. Most of the people want high-quality products in affordable rate so that
proper pricing strategy according to demographic characteristics of people will provide the
company huge advantages (Nagle and Müller, 2017). This organisation also needs to focus on
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both value-based pricing and market-based pricing strategies to maintain its profit merging
efficiently. The organisation can use the value-based pricing for supercars and luxury cars and
also can use market-based pricing to fulfil the demand of middle-class people. This strategy will
increase the sales volume as well as the financial profitability of Toyota.
Place
Use of dealership is the main place of Toyota for distributing its products (Hult and Ketchen,
2017). It generally indicates the places where the customer can better access the organisational
products. The retailers and the dealers are the main distribution places of Toyota. This
organisation also offers the dealership in high economy places to increase product sales for more
financial profits. Some retailers also sales genuine parts and accessories that are urgent for
effective service.
Promotion
Promotion refers to the publicity of products to grab the attention of more customers. Effective
promotion is urgent for a new product launch and helps the company to compete with other rival
organisations (Srijumpa, 2017). The improvement of technology also changes the trend of
promotion so that the organisations are now focused on digital media promotion, social media
promotion rather than word of mouth promotional strategy. Social media also helps Toyota to
promote their product globally, and it also provides the customer product review. Product review
about a specific product generally provides the customer psychological support and that also
increase the chances of product selling.
Assess the Current Trends and Overall Market Environment
Environmental analysis is vital for Toyota because it generally helps managers in identifying the
current organisational strength and weakness (Fozer et al., 2017). Apart from that, the external
environment analysis also indicates various factors such as social factors, legal factors, political
factors, economic factors etc. can influence the overall operation of an organisation.
Internal Environment Analysis
Internal environment analysis mainly signifies the strength and weakness of the organisation
leads to more effective marketing leads to enhance the financial performance of the organisation.
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Strength
The high brand image is one of the vital
strength of an organisation.
The financial position of this organisation is
good enough to implement new changes in the
organisation (Dangelico and Vocalelli, 2017).
At the same time, strong research development
team also helps this organisation to make
innovative products leads to an increase in
sales volume.
Proper supply chain and availability of
resources are also the major strength of Toyota.
Weakness
Hierarchical organisation structure and lack of
proper communication are one of the major
strength of this company.
Poor organisational culture generally reduces
employee satisfaction so that it can hamper the
overall operation of this company leads to
reduce sales and profitability (Barron, Pereda
and Stacey, 2017).
The product recalls and lack of proper time
management are another major weakness of
this company.
Opportunities
The overall financial position of Toyota is
good for that reason this company can easily
expand its business in other emerging market.
Expand in other organisation will increase
organisational profitability further.
Recruitment of efficient and experienced
employee will help to make successful
organisational change for effective operation
and services.
The introduction of the hybrid electric vehicle
can attract the customer in future, and it also
helps to reduce the level of pollution level
leads to grab the attention of more customers.
Threats
Increase the price of fuels can reduce the
organisational sales volume.
Apart from that, the entrance of other
organisation with a quality product and
affordable rate can attract loyal customers of
Toyota (Dangelico and Vocalelli, 2017).
Changes in currency rate can hamper the
overall profitability of this organisation.
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External Environment Analysis
External analysis generally indicates some environmental factors that can influence the overall
organisational performance. PESTLE analysis helps management in identifying those factors
effectively.
Factors Description
Political Factors There are different political factors such as the
poor relationship between the countries and
countries fiscal policy generally increases the
overall expenses of an organisation lead to a
huge financial loss (Racz et al., 2018). For
example, the poor relation between Japan and
China also affect Toyota negatively, and it also
has reduced the revenue of Toyota.
In the financial year 2014, political battle with
Australia also hampers the business of Toyota.
Economic Factors Various economic factors such as inflation rate
change the rate of the currency, the
macroeconomic climate of the host country can
reduce the overall sales and profitability of the
organisation (Fozer et al., 2017). For example,
the high inflation rate in India in the financial
year 2014 also declines the 9 per cent sales of
this organisation. At the same time, tax rate,
labour cost also influences the overall financial
profitability.
Social Factors The global technological improvement also
changed the trends and buying behaviours of
customers. The car selection of the young
generation and the older generation are very
different (Racz et al., 2018). The people are
now focusing on electric cars due to the high
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fuel price. For that reason Toyota needs to
research the whole market carefully before
takes any organisational decision to develop its
product for huge customer response.
Technological Factors Technology is important for the automotive
industry and the use of unique technology is
essential for this organisation to grab the
attention of more customers (Ehsani et al.,
2018). At the same time experienced technical
staffs are also required to manage the day to
day operation proficiently. Toyota is using
world-class technology in its cars so that it will
provide the company with huge upcoming
opportunities. Apart from that advance IT
technology also helps the managers of Toyota
to manage the overall operations effectively.
Legal Factors Al the business organisation needs to follow
the rules and regulations of the government to
avoid legal obligations (Fozer et al., 2017).
Different regulations such as labour act,
environmental policies, safety policies etc. can
hamper the overall organisational operation so
that management needs to focus on this factor
to continue its operation globally.
Environmental Factors Environment and pollution are one of the
burning issues are recent days, and the
organisation needs to reduce the emission of
carbon particles (Racz et al., 2018). Toyota
also has taken the challenges of zero carbon
emission by 2050. The focus in Hybrid
vehicles and electric vehicles will provide the
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organisation huge advantages in maintaining
environmental policies.
Conclusion
From the above study, it has been recognised that marketing is essential for all the business
organisation in improving the number of product sales as well as financial position. The senior
management of Toyota needs to evaluate its internal and external environment before strategic
implementation. Selection of different strategies such as Product, Pricing and Promotional
strategy will increase the number of loyal customers. At the same time identification of current
strength and weakness of this organisation helps management to identify the upcoming
opportunities and threats of Toyota.
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Appendix
1. Position of Toyota
(Source: Toyota Motor Corporation, 2018)
2. STP Analysis
(Source: Smart Insights, 2018)
3. Element of Marketing Mix
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(Source: Bbamantra, 2018)
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