Market Analysis of Toyota

Table of Contents
History………………………………………………………………………….……3
Vision………………………………………………………………………………...4
Mission………………………………………………………………………………..4
Values………………………………………………………………………………...4
Market Analysis …………………………………………………………………….5
STEEPLE Analysis………………………………………………………………….6
SWOT Analysis………………………………………………………………………9
Product Life Cycle………………………………………………………………..…11
Market Segmentation………………………………………………………………..12
Marketing Mix……………………………………………………………………….12
Future events…………………………………………………………………………16
References ………………………………………………………………………...….16

Toyota Journey from Home to International Market
Toyota was established in the Japanese spinning mills when Sakichi Toyoda developed the first
electric loom in the world, which was then set up in 1918 by the Toyoda Spinning and Weaving
Firm. His innovation minimized faults and improved returns since a platform ceased and after a
problem, it would not make defective material and use threads. Today's Toyota production
system remains vital to this concept of developing the machinery to dynamically intervene and
instantly turn attention to issues.
The loom so impressed a British company, the Platt Brothers, that they purchased manufacturing
and distribution rights for £100,000 in 1929. Sakichi offered his son, Kiichiro, the funds to
improve Toyoda automobile technology. The first passenger car the Company launched in 1936,
the AA Model, and the company Toyota Motor was built in 1937. Toyota automobile started
production in 1959 in Brazil. Toyota produces brand automobiles and component parts
worldwide, in addition to its own facilities, production subsidiaries and companies in Japan. It
has headquarters in Toyota City, Aichi and Tokyo. Toyota offers also economic facilities
through its Toyota Financial Services Division and also constructs robotics for various sectors
instead of automobiles. The Toyota Motor Corporation and the Toyota Industries together form
one of the largest corporations in the world and the backbone of the Toyota Company.
Toyota is a world renowned company because of its high quality produced vehicles, and Toyota
services, its manufacturing plants and its valuable loyal clients all over the world are rising very
well and very fast worldwide. Hybrid in Toyota cars' latest technology has given Toyota fresh
pride and regular sales of Toyota grow. Toyota was the number one automobile firm in the last
couple of years and was the first to market mostly its cars internationally.

Vision
Toyota will pursue the new community of travel, enhancing worldwide lifestyles by transferring
citizens the safest and most responsible path. Through our dedication towards quality, endless
creativity and love for the environment, we aspire for a smile that exceeds our standards. We will
achieve tough objectives by involving people who agree that there is always a better path to
creativity and enthusiasm. This vision implies market leadership, and the different values and
beliefs that the organization implements to maintain its automobile products' competitiveness.
Mission
The mission of Toyota is to create ever-better cars, create a better future in which everyone is
safe to travel. This mission statement incorporates the company's official statements on the
purpose of the organization: to 'create a better future in which everybody can move freely' and to
'create ever-better cars.'
 Making cars always better
 Build a comprehensive future
 Right to drive for everyone
Values
Our values act as a guideline and explain how we conduct ourselves in the world.
 Outstanding production quality
 Attaining the final target of full satisfaction of customers
 Be called the strongest employer
 Enhance the team spirit
 Ethical and transparent realistic inculcation
Market Analysis
In the car industry, Toyota Motor Corporation competes. For car makers, the past five years have
been turbulent. Fuel prices are increasing and environmental issues have changed the tastes of
customer people away from pick-up trucks for fuel to smaller, more fuel efficient vehicles. Some

automakers welcomed the transition by broadening their portfolios of small cars and diversifying
into hybrid electric vehicle manufacturing. Other automakers refused to change their attention
from large to small vehicles, anticipating that the price of fuel would inevitably contract, which
leads customers back to big-car fold. Owing to the financial recession that ripped the global
economy, gasoline prices dropped in the second half of 2009. This had a chain reaction across
the developed and developing countries and a depression for many western nations after the
USA. Overall, the significant decreases and improvement are estimated to lead to an industry-
average annual growth of 2.2% over the five to 2013 years. Expansion in the BRICs has helped
development over the last five years. Rising sales in these countries have resulted in increased
automobile sales. Furthermore, western automakers have relocated manufacturing sites to BRIC
to take advantage of these markets and the production of low cost. The developing nations will
seek to progress over the next five years and market for motor vehicles will rebound in the
western world. In the five years until 2018, industry market is expected to increase by 2.5
percent to an expected $2.7 trillion in total.
Internal Environment
According to Toyota's 2018l World Report, net sales exceeded 19.8 million US dollars, which
improved 8.1 percent to 16.2 million US dollars from 14.2 million US dollars in cash flow. It
raised 13.8 percent, despite exchange rates and the rise in reducing costs, significant variables
that influenced the operating profit.
In 2017, the brand's market share remained 9.2 percent and remained strong in the global market
share between other brands such as Honda and Nissan. In 2017 Toyota was also really good. In
passenger cars alone, 47615 units increased by 3029 units and the market share for passenger
cars also grew to 93% (2016, 8.7 percent ). It sold 21,877 units in the commercial truck, rising
2716 units and up 35.3 percent in the market share (2016, 29.2 percent ). Toyota has the highest
market share of heavy trucks.
Core competency
Toyota Motor Corporation's core competences are its potential to manufacture high quality cars
at best rates, giving consumers a value for the money. This central quality expertise can be linked
to its modern manufacturing practices. The quality factor of Toyota's products has revolutionized

cars in the past and most car manufacturers have sought to improve the quality of their products.
It is a vital part of the company's cost control plan.
SWOT Analysis
Strengths
 Great market reputation and brand name validation: In numerous places around the
world, Toyota has a leading market position. The company had a market penetration
(excluding mini-vehicles) in Japan of 45% in the 2012 FY for Toyota and Lexus brands.
Likewise, Toyota's market share is 12.2% in North America, 13.4% in Asia (not
including China and Japan), and 4.3% in Europe. The business also has a 7 percent share
of the Chinese market and an important market share in the Middle East, Oceania, South
and Central America regions. This strong presence on the market helps the business to
gain comparative benefit and also to grow into global markets. Toyota also has a large
branding strategy in the automobile sector.
 Enormous variety of manufacture and distribution: Toyota has a broad production
and distribution network. Over 50 construction firms in 27 countries and territories,
Toyota and its subsidiaries manufacture vehicles and associated parts and accessories in
addition to Japan. Over the fiscal year 2012, the firm manufactured 7,435.781
automobiles in all other production regions and particularly 3,940,000 vehicles in Japan
and 3,495,000. Toyota also has a wide distribution network. Although the geo-wide
distribution base of the Group diversifies market risks, its massive distribution network
offers broader scope and thus boosts incomes.
Weaknesses
 In recent years, Toyota has conducted many reminder items, which might influence the
company's brand image and general revenues. For example, Toyota recalled, in 2011,
111,000 Toyota and Lexus model brands due to damage to substrate components and a
possible hybrid system shutdown. In addition, Toyota registered 181,000 automobiles in
Japan for unusual sound and oil leaks that could have been due to the loose bolts in the
subtraction and the variable of the back axle during the year. The organization also took

part in government studies on product returns. For example, in February 2012, a
preliminary report on a possible defective power window control module in driver-side
doors in 2007, began by the National Highway Transportation Safety Administration in
vehicles Camry and RAV4. This could also contribute to substantial fines that could
impact operating margins.
Opportunities
 In 2008 and 2009, the international auto industry has been severely impacted by the
recession. Revenues have declined. In 2011, however, a major recovery proceeded in
2012. In 2018, the global car manufacturing industry expanded 8.9% to $1.563.9 billion,
according to Market Line. Thus Toyota has been able to retrieve the global automotive
market to attract more consumers and to boost sales.
 In the 2008-2018 period, the emerging international car market saw steady increase.
However, estimates show that it will expand in the periods 2018-2021 to significant
double dip recession. The company therefore has good expectations for the global new
car market combined with new product introduction.
Threats
 The global car industry is incredibly demanding. In its different markets, Toyota is faced
with heavy competition from car producers. In the face of continued globalization and
restructuring in the global automotive industry, competitively between different auto
players is likely to increase. Product quality and characteristics, time needed to invent
and to grow, pricing, durability, protection, fuel saving, customer service and financial
terms are all factors that affect competition. Increased competition will lead to decreased
sales of vehicles and high inventories, which may create lower price stress and thus have
an impact on the financial situation and performance of the company's performance.
 Toyota is vulnerable to currency movements and primarily subjected to fluctuations in
exchange rates of the Japanese Yen, the US dollar and the euro.
VIRO Analysis
Valuable:

Yeah, because production costs have been shown to be low
Rare:
Yeah, just-in-time development is an industry-wide common technique for businesses, but
Toyota's approach is rare.
Inimitable:
Yeah, several businesses tried to restore the infrastructure, but no one could do it so efficiently.
Organization:
Yes, since the 1960s Toyota has been and is developing this method. This provides a continuous
competitive advantage
External Environment
The external market climate is normally strong in its impact, which can affect an entire sector
and indeed, an entire economy. Changes in the external world will produce opportunities or
challenges to Toyota's market place. The popularity and reception of Toyota products on the
market are highly affected by changes in the economy, evolving customers, and demographic
trends.
Porter’s Five Forces Model
Threats of New Entry (Weak):
 Large capital requirements
 High retaliation for new entrants could be introduced to the industry by existing
companies
 Few legal hurdles defend existing businesses against potential entrants
 Brand image and reputation have been developed by all car businesses
 Design and engineering quality primarily distinguishes goods
 New suppliers and distributors could access easily
 Small businesses have very difficulty in making economies of scale
 Governments also safeguard their domestic markets with high import taxes
Bargaining Power of Suppliers (Weak):

 Large selection of suppliers
 Some suppliers are large, but most are very small
 Commonly accessible materials
 There is no danger to potential integration from suppliers
Bargaining Power of Buyers (Strong):
 Many buyers are available
 The majority of customers are people who purchase a vehicle, but corporations or
governments typically make huge vehicles and may negotiate at lower rates
 It does not charge buyers much to move to another vehicle brand or to begin using
another transportation type.
 Purchasers can easily select brand of alternative cars
 Buyers are price sensitive and frequently decide how much a car costs
 Buyers are not threatening reverse incorporation
Threats of Substitutes (Weak):
 There are also other modes of travel, such as walking, motorcycling, trains, buses or
aircraft
 Substitutes will seldom provide the same comfort
 Alternative transport types are almost always less and are often environmentally friendly.
Competitive Rivalry (Very Strong):
 Low competitor number
 If a company tries to leave the market, it will suffer massive losses so that it either fails or
remains in the car business for lifetime.
 Competitive firms differ in scale but typically operate in various market segments.
 Customers faithful to their brands
 There is a moderate chance that a competitor will acquire.
STEEPLE Analysis
Social Factors

Toyota will offer more vehicles that meet the growing interest of consumers in hybrid and
electric vehicles. The business must therefore take note of the rising wealth gap that is a threat,
as it correlates to a decreased middle class. The middle class is Toyota's largest income stream.
Technological Factors
Toyota has the potential to develop its e-commerce resources or to leverage third-party e-
commerce network operators for sales of some of its goods, including such spare components.
Also, Toyota has the potential to improve its mobile applications to boost customer experience
and retention. The organization must however, counter cybercrime risks, particularly business
cyber spy.
Economic Factors
On the basis of the instability of the Japanese Yen, Toyota is able to increase its Exports from
Japan. Toyota also has the chance to expand in the U.S., the second-largest market of the

company in Japan. Moreover the quick development of emerging economies gives the business
the chance to boost sales based on those markets.
Environmental Factors
Toyota introduces several ecologically sustainable vehicles such as hybrid vehicles or fuel
efficient cars. The organization also has the chance to improve its sustainability success by
improving the quality of the business process.
Political Factors
Toyota will develop with limited political unrest because of its political instability in the major
marketplaces. Free trade deals concerning Japan and other Toyota nations also provide potential
to further dominate the industry. Government funding for green goods also provides the industry
with the ability to develop its products and services to meet or surpass environmental standards.
Legal Factors
Toyota has the potential to extend its efforts to improve copyright infringement security, and
there are few worries about infringements of its intellectual property rights. Toyota also provides
the chance to sell premium goods that meet or exceed environmental criteria. Furthermore the
company will take advantage of delivering safer and more appropriate goods to comply or satisfy
consumer regulations.
Ethical Factors
As one of the world's biggest automobile firms, Toyota has a great deal of moral tension. The
organization was engaged in racial discrimination, incorrect market testing, manipulation of
profits and disruption of long-term contractual agreements with distributors.
Product Life Cycle
In the event of a new product or service before the customer, i.e. in the long run, all the existing
services and products are gone. - Replace Ford Sierra by Ford Cortina, substitute the Ford
Mondeo sierra and the Mondeo Old by the Mondeo New in 2001, for example. Therefore each

substance evolves, develops, progresses and expires. In a phase known as the Product Life Cycle,
goods and services for the consumer market are then manufacturing, introduced and withdrawn.
A business should be involved in the commodity life span of its market in order to trade its goods
efficiently. The typical period of lifetime of the item is typically five phases: layout, launch,
development and decrease. Toyota is established, primarily because a broad and dedicated
community of reliable consumers exists.
Standard costing, product diversification and advertisement have also become increasingly
important as sluggish decline in sales is key to productivity.
Marketing Objectives
The target is the marketing plan's beginning. The objectives of the targets include:

 to allow a company to manage its marketing strategy.
 Helping people and teams to achieve a shared purpose.
 to have a cohesive, agreed emphasis for all organizational functions.
Market Segmentation
Target Market
Toyota has certain liability to represent the entire sector of society as a founder and a leader in
the car industry. However the typical goal is to concentrate primarily on the retail sector which is
very lucrative and efficient and to reduce or exclude other sectors. Who and where are two
primary considerations in the target market. There are two significant considerations to take into
account when it comes to success and business performance.
Marketing Mix
Perhaps the most important factor for designing a marketing strategy is the market segmentation.
Marketing is calculated here for each product. In this marketing mix are merged four dimensions
(price, promotion, product, location) which constitute the core of a marketing campaign. The
marketing mix must be designed to meet the needs and priorities of target audiences in this phase
of marketing planning. Based on internally and extrinsic influences and the international

business climate, the effective companies constantly monitor and adjust marketing mix to
enhance their elements.
Product
The most common cars in this product mix are Toyota. Lexus cars are the company's luxurious
vehicles. The Welcab series, on the other hand, is Toyota-modified cars for the elderly and
disabled. Yachts, engines and spare parts and components are also made for vehicles and marine
goods. This segment of the marketing mix reveals that Toyota maintains a larger market and
eliminates market risks by means of a various product mix.
Positioning
Toyota's major distribution centers for its commodities are distributors. This portion of the
marketing mix decides where consumers can access the goods of the business. In the Toyota
distribution plan, the following are the key positions:
Contributors
Retailers
The bulk of sales transactions take place in Toyota dealerships. Some retailers, however, such as
automotive supply stores, are still offering items like replacements and accessories. The part that
Toyota sells its goods into the target market indicates that it depends heavily on dealers.
Price
In deciding prices based on business dynamics and competitive prices, Toyota uses a market
driven pricing strategy. The vast majority of Toyota goods including sedans and trucks are
noticeable for this pricing policy. Nevertheless the company also uses the pricing approach based
on value, which defines costs based on real and perceived commodity value. For high-end goods
or more costly products like private and Lexus vehicles, the company uses value-added pricing.
This aspect of the marketing mix of Toyota illustrates that the organization sets price levels
determined by market environment and the expectations of consumers.

Promotion
Toyota uses personal sales to market goods directly for prospective customers by means of sales
staff from dealerships. The business uses ads on different channels like television, newspapers
and websites. In addition, the organization promotes the commodity in public relations, including
the environmentally-friendly Toyota Together Green initiative and the food-per-hour meal-
donation program. These public relations efforts give the Toyota brand a positive image. On the
other hand, uncommon promotion of sales is used through special agreements. In addition, the
company also uses direct sales to business customers. This part of Toyota's marketing strategy
demonstrates that the company has a large strategy to promote its corporation and its goods
Future events
In the time between 2010 and 2018, Toyota's sales in the developing market have dramatically
improved from 18.6% to 45%. Demand in developing markets will soon overtake its sales in
established markets by Toyota if this trend persists. Toyota has effectively met the needs of the
growing middle class in developing economies and adapted to them. Toyota designs and
manufactures in these countries, through localization programs, cars to meet the specific needs of
these customers.
References
ABBASI, H. (2017). Marketing Strategies Of Coke: An Overview. Kaav International Journal of
Economics, Commerce & Business Management, 4, 194-199.
Afeni, T. O. (2017). An investigation of the organizational culture of enterprise, on the example of the
"Coca-Cola Company (Doctoral dissertation).
Amati, J. (2019). Strategic performance analysis trough Financial Statement and Stock Market Data. The
Coca-Cola cases.
Brownlee, E. R., Dmytriyev, S., & Elias, A. (2017). Integrative Stakeholder Engagement: Stakeholder-
Oriented Partnership Between the Coca-Cola Company and World Wildlife Fund. In Stakeholder
engagement: Clinical research cases (pp. 339-367). Springer, Cham.
Brondoni, S. M. (2019). Shareowners, Stakeholders & the Global Oversize Economy. The Coca-Cola
Company Case. Symphony. Emerging Issues in Management, (1), 16-27.
Ling, X. (2017). Customer Relationship Management: Case study Coca-Cola Company.

Renz, F., & Vogel, J. (2016). Analysis of The Coca-Cola Company.
Serôdio, P. M., McKee, M., & Stuckler, D. (2018). Coca-Cola–a model of transparency in research
partnerships? A network analysis of Coca-Cola’s research funding (2008–2016). Public health
nutrition, 21(9), 1594-1607.
Serodio, P., Ruskin, G., McKee, M., & Stuckler, D. (2020). Evaluating Coca-Cola’s attempts to influence
public health ‘in their own words’: Analysis of Coca-Cola emails with public health academics leading the
Global Energy Balance Network. Public health nutrition, 23(14), 2647-2653.
Steele, S., Ruskin, G., McKee, M., & Stuckler, D. (2019). “Always read the small print”: a case study of
commercial research funding, disclosure and agreements with Coca-Cola. Journal of public health
policy, 40(3), 273-285.