UK Car Manufacturing Market: Factors Impacting Toyota UK Operations

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Introduction to Marketing
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Table of Contents
Introduction.....................................................................................3
UK Car Manufacturing Market........................................................3
Factors Impacting Toyota UK Operations......................................5
SWOT Analysis............................................................................................5
PESTLE Analysis.........................................................................................7
Segmentation, Positioning, and Targeting....................................................8
Marketing Mix...............................................................................................9
Marketing Performance and Strategy..........................................10
Conclusion and Recommendations.............................................10
Bibliography..................................................................................11

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Introduction
Globally, the automotive industry is the largest on the basis of capital, annual
turnover, volume, and employees. Several organizations have struggled their way in
obtaining their own provision in the automotive industry. Among them, is Toyota which
tells a story of challenges faced as well as the hurdles overcome to get an Asian
product into the global market. GM and Ford are the leading automotive companies,
with Toyota coming third. Toyota has effectively gone against odds to break the
traditional narrow marketing framework. Despite Toyota being the third car
manufacturer globally, its UK’s market share is not lucrative. Probably, this can be
attributed to the customers’ loyalty to local and international manufacturers. Toyota’s
operation in the United Kingdom is given the name Toyota GB plc. The corporation has
established its production plants in the United Kingdom near Derby. The plant located
near Derby manufacturers approximately 1.4-1.6 and 1.8-liter petrol engines as well as
2.0-liter diesel engines that are designed for vehicles made in Burnaston plant.
Nonetheless, the UK plant also manufactures engine parts that are used to assemble
vehicles at the French and Turkish plants. The plant has manufactured over 2 million
engines since its establishment. The United Kingdom has got a mature car market that
is almost completely dominated by foreign-owned companies. Different car
manufacturers have established their production in the United Kingdom’s market. The
common manufacturer is Ford which leads in terms of market share. However, since the
EU import quotas were lifted in 2000, Japanese manufacturers such as Toyota are
having a gradual increase in their market share. The report provides an overview of the
UK car manufacturing market, using micro and macro tools to analyze the factors that
impact Toyota’s operations, as well as analyzing the company’s marketing performance
and strategy.
UK Car Manufacturing Market
Market characteristics: The United Kingdom’s car market is a market that is
continuously developing. By itself, the small car market is at the pinnacle of this
developing business sector. As a result of the different car models, the UK’s car

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segment is classified into two main segments. Most of the models are found in the
city/mini/supermini segment while others are in the lower medium/small family. Even at
instances where the driving expenses are high as a result of taxation, along with
overcrowded charges and so forth, these two segments’ market share dominates UK’s
car industry (Bailey and De Propris, 2014, pp.382). The supermini segment
demonstrates a vast increment in deals making it the pioneer in the market.
Market potential: As of August 2018, according to SMMT data, the United
Kingdom’s car market obtained an impressive growth rate of 23.1%. The United
Kingdom’s growing range for the hybrid, plug-in hybrid, as well as pure electric cars, has
continually attracted buyers (Kingsnorth, 2019, n.d.). The demand for cars as of 2018
surged by approximately 88.7%, with the car sector accounting for around 8% of the
market, - the highest ever level- as billion dollar manufacturer investment assists in
delivering more ultra-low as well as zero emission models to the European market.
Customer analysis: As a result of new technology, the superminis have thrived,
enabling the manufacturers to incorporate features that were in the past reserved for the
larger, luxury market, while maintaining maneuverability and fuel efficiency benefits.
Currently, the customers may trade in as their income increases (Bakker, van Lente and
Meeus, 2012, pp.879). Additionally, they are also likely to upgrade to other smaller
vehicles that have got better features. The UK has and is still experiencing growth in the
number of drivers, which in effect has led to an increased number of car registrations.
Competitors: In the UK car manufacturing market, there are many competitors.
Among these competitors include; BMW, Audi, Nissan, Toyota, Honda, Ford, Peugeot,
Mercedes Benz, Vauxhall, Land Rover, Mazda, and Fiat among others.
Distribution analysis: Franchised dealership is the primary distribution channel
applicable for small new cars. At the moment, most of these franchises are usually
exclusively dedicated to selling the items of a specific car maker. There has been a
decline in leadership numbers has a result of the steady decrease in the number of
franchised outlets used by the car manufacturers (Dvir and Strasser, 2018, pp.142).
There is a steady increase in the number of car dealers, trade via the internet, along