TOTO: Segmentation, Targeting, Differentiation and Positioning Strategy

This article discusses TOTO's background as a global manufacturer of luxury toilets and bidets. It then delves into their market segmentation strategy, target market, differentiation advantage, and positioning strategy. The target market for TOTO's products is the higher income group people who have a fine taste in furniture and everything they own. TOTO differentiates itself from competitors by providing luxurious toilet products of the best design and quality. Their positioning strategy is to be perceived as an environmentally friendly high-end toilet product that consumers can build at their homes.

TOTO
ASSESSMENT 2
MMK101 TRIMESTER 3
SEGMENTATION,
TARGETING,
DIFFERENTIATION AND
POSITIONING STRATEGY
Student Name:

Student Number:
Table of Contents
1.1. Background...........................................................................................................................3
1.2. Market Segmentation............................................................................................................3
1.3. Target Market.......................................................................................................................5
1.4. Differentiation and Positioning Strategy..............................................................................6
Reference List..................................................................................................................................7

1.1.Background
TOTO is a global manufacturer of luxury toilets and bidets. It was found in 1917 in
Japan. The name is an abbreviation for the Japanese words Toyo Toki that means Oriental
Ceramics. TOTO’s philosophy is to protect the environment while designing bathroom
furnishings and preserve the limited resources (Perreault Jr, Cannon and McCarthy 2013).
Although the product line of the firm includes all bathing solutions like bathtubs, showers, basins
and plumbing supplies, the company is best known for its high end innovative toilets. In 1980,
the brand integrated the wash-let bidet and has sold 33 million bidets since then throughout the
globe.
1.2.Market Segmentation
Market segmentation can be defined as the process of dividing a broad consumer market,
which consists of both existing and potential customers into different sub groups of customers,
which are segregated on some kind of shared characteristics. TOTO ` segmentation basis should
apply specific focus on the reasoning behind TOTO`s product and how TOTO seeks to capture a
portion of the market. The various segments include Demographic, Geographic, Psychographic
and Behavioral.
The demographic segment relates to segmentation based on the gender, race or income of
a group of people. Since, TOTO is a luxurious brand it offers high products, which cannot be
afforded by all, therefore by segmenting the market based on income TOTO, can target the right

group of people. TOTO can also segment market based on age, as there are various age groups in
the given market. Therefore, the company can segment accordingly.
Psychographic segment, which refers to the segmentation, based on the emotions and
personality of the people (Czinkota and Ronkainen 2013). Under the psychographic segment,
companies segment customers based on class and personalities. Behavioral aspect should be
selected based on how often the consumers will consume the product. TOTO should seek for a
luxury purchase due to the high price and quality of its products. TOTO can also segment on
geographic basis by targeting the urban areas.
Single Male Single Female Family
Demographic
Age >30 >30 <30
Income <60k$ $60k-$100k <60k$
Psychographic
Personality Classy Classy Comfort and
safety
Lifestyle Luxurious Luxurious Family oriented
Geographic
Location Urban city Urban city Urban city
Behavioral
Purchase occasion Yearly yearly yearly

1.3.Target Market
Consumer Profile
After the segmentation has been done, the companies then select a certain group to cater
to which is generally known as the target market.
Hence, from the segmentation it can be understood that the target market for the product
is clearly the higher income group people who have a fine taste in furniture and everything they
own. They can be either single male or female. These people have a class to maintain and
therefore they like to invest in goods, which are beneficial for their social status (De Mooij
2013). As these products are expensive, the target market will have a high-income range, which
makes the product affordable for them. The family cannot be chosen as a target market because
they believe in child friendly and safe products rather than stylish ones. The consumers will be
the residents of urban areas with high earning professions, which enable them to earn more.
Segment Target
The segment target market of TOTO tends to be smaller than its competitors because
other toilet brands tend to design their products in a way that it appeals to the mass market.
However, TOTO being a luxurious rand has to keep up with its brand name. Therefore, it can be
stated that the target market of TOTO is extremely small and combines of a certain percentage of
population (Hollensen 2015). The single male and female have been chosen as the target
segment. The company`s chosen basis for segmentation has been Behavioral, Physiographic and
Demographic.

1.4.Differentiation and Positioning Strategy
Differentiation Advantage
The main aspect of TOTO that differentiates it from its competitors is that TOTO is a
world famous brand, which provides luxurious toilet products, which are of best design and
quality. These products come with a specific class and aura that are difficult to match. This can
be referred to as the main differentiation strategy of the brand. The highly innovative,
environmental friendly and high-end toilets are the three differentiation characteristics chosen by
TOTO.
Positioning Strategy
TOTO wants to position itself as an environmental friendly high-end toilet product,
which the consumers can build at their homes. Earlier TOTO used to target the business segment
however, coming to the Australian market, TOTO wants to build itself as a luxurious but
affordable for a certain group of people brand (Hanlon 2013). It wants to be perceived as a
brand, which brought luxurious toilets to the homes.

TOTOP
R
I
C
E
DESIGN High
High
Low
Figure 1: Positioning Map of TOTO in the Australian Consumer Market.

Reference List
Czinkota, M.R. and Ronkainen, I.A., 2013. International marketing. Cengage Learning.
De Mooij, M., 2013. Global marketing and advertising: Understanding cultural paradoxes. Sage
Publications.
Hanlon, A., 2013. The Segmentation, Targeting and Positioning model. Luettavissa: http://www.
smartinsights. com/digital-marketing-strategy/customersegmentation-targeting/segmentation-
targeting-and-positioning/Luettu, 17, p.2015.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Jobber, D. and Ellis-Chadwick, F., 2012. Principles and practice of marketing (No. 7th).
McGraw-Hill Higher Education.
Perreault Jr, W., Cannon, J. and McCarthy, E.J., 2013. Basic marketing. McGraw-Hill Higher
Education.