Marketing Report: Analysis of Toyota Fortuner in the Malaysian Market

This marketing report provides a comprehensive analysis of the Toyota Fortuner SUV within the Malaysian automobile market. It begins with an overview of the market size and segments, highlighting the significance of the SUV category. The report then delves into Toyota's history, its marketing strategy for the SUV category, and its performance in the Malaysian market. A detailed PESTEL analysis examines the political, economic, social, technological, environmental, and legal factors influencing the market. The competitive environment is assessed, focusing on key success factors and a competitive analysis of the Fortuner. The role of marketing research is explored, with proposed research and expected findings. Finally, a proposed marketing strategy for the Fortuner is presented, encompassing objectives, target market, value proposition, promotion, and strategic control. The report concludes with a summary of findings and recommendations for Toyota's marketing efforts in Malaysia.

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Marketing Management
By (Name)
Name of the Course
Title of the Instructor
Institutional Affiliation
City and Date
The final date of Submission

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Table of Contents
1.0 THE PURPOSE OF THE REPORT..........................................................................................4
2.0 AUTOMOBILE MARKET IN MALAYSIA.................................................................................5
2.1 Size of the market and market segments................................................................................5
2.3 The SUV market segments.....................................................................................................6
3.0 THE TOYOTA FACTOR............................................................................................................6
3.1 Brief History of Toyota Motors..............................................................................................6
3.2 Toyota’s marketing strategy for the SUV category in delivering value to customers...........7
3.3 Toyota’s Performance...........................................................................................................7
3.4 Toyota’s performance in the SUV segment...........................................................................7
4.0 THE MALAYSIAN AUTOMOBILE MARKETING ENVIRONMENT........................................9
4.1 PESTEL Analysis...................................................................................................................9
4.2 The social and cultural factors impacts...............................................................................11
4.3 The economic Factors Impact.............................................................................................11
4.4 Technological factor impact................................................................................................12
4.5 Environmental factors impact..............................................................................................12
4.5 The overall conclusion of the Analysis together with its impact on the Toyota brand........12
5.0 THE COMPETITIVE ENVIRONMENT FOR THE SUV SEGMENT......................................12
5.6 The overall conclusion from the Analysis and its impact of the entire Toyota Company...13
6.0 ANALYSIS OF THE KSF FACTOR IN THE SUV MARKET..................................................14

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6.1 Identification of the KSF’s...................................................................................................14
6.2 How does the fortune score in the KSF test?.......................................................................14
6.3 The conclusion from the analysis........................................................................................15
7.0 COMPETITIVE ANALYSIS OF THE FORTUNER.................................................................15
7.1 The competitive analysis..........................................................................................................15
7.2 The conclusion from the analysis............................................................................................16
8.0 ROLE OF MARKETING RESEARCH.....................................................................................16
8.1 Proposed marketing research..............................................................................................16
8.2 Expected findings.................................................................................................................16
9.0 PROPOSED MARKETING STRATEGY FOR THE FORTUNER...........................................17
9.1 A summary of the SUV marketing environment...................................................................17
9.2 Objectives for 2019 and 2020..............................................................................................17
9.3 Target market segment........................................................................................................17
9.4 Profile of the target consumer.............................................................................................17
9.5 Packing value proposition...................................................................................................17
9.6 Promotion of the fortune......................................................................................................18
9.7 Service factor..................................................................................................................18
9.8 The place factor...................................................................................................................18
9.9 People factor........................................................................................................................18
10.0 STRATEGIC CONTROL........................................................................................................19

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11.0 CONCLUSION......................................................................................................................19
References......................................................................................................................................21
APPENDICES................................................................................................................................26
Appendix 1: Automobile market in Malaysia............................................................................26
Appendix 2: Toyota history........................................................................................................26
Appendix 3: Marketing environment for the Malaysian automobile.........................................26
Appendix 4: The competitive environment................................................................................27
Appendix 5: Key success factors................................................................................................27
1.0 THE PURPOSE OF THE REPORT
The primary purpose of the story mainly aims towards focusing on the evaluation of the market
opportunity implementation that is entirely concerned with launching the new 2020 version of
the Toyota within the Company's portfolio that is set to take place within the boundaries of
Malaysia (Battram et al. 2016). This will, therefore, bring an adequate and reasonable
understanding of what is taking place in the current situation together with what is likely to take
place in the coming future.

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2.0
AUTOMOBILE MARKET IN MALAYSIA
2.1 Size of the market and market segments
The market segment for cars in Malaysia is significantly large with many large and small
players vying for the top spot. The Malaysian Automobile industry has a sales volume of 580000
motor vehicles annually. The country approximately has 30 million inhabitants. The automobile
industry of the country however is growing at a slower pace. In the ASEAN zone the country is
ranked third. In the last year around 380,000 cars were sold in the country. There was the sale of
73,000 MPVs and 61,000 SUVs. It can be said that the market of vehicles in the country is not
moving at a fast rate but stable. There is significant scope for growth in the market despite the
lower growth figures in the present times. The revenue that was generated by the car market
sector of the company was around 28.6 Billion in Malaysian Ringgit. The export value of
manufactured vehicles in Malaysia is estimated at RM 7.46 Billion.
2.2 Key players together with their respective market share
Rank Brand Market Share
2017
Market Share
2018
+/-
1 Perodua 35% 38% 10%
2 Honda 19% 17% -6.6%
3 Toyota 12.1% 10.9% -5.7%
4 Proton 12.3% 10.8% -8%
2.3 The SUV market segments
The market segment that is attached to the SUV tries to cover various customers known to be
residing in different locations (Gupta 2016). Government organizations appear to be one of the
significant SUV market segments which is known to be purchasing this brand of Toyota in large

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quantities. Moreover, several other organizations including the non-governmental organizations
also play an essential role when it comes to acting as one of the significant market segment that
is attached to the SUV. 3.0 THE TOYOTA FACTOR
3.1 Brief History of Toyota Motors
The Toyota Motors in Malaysia was founded as the Sejati Motor in 1982. In the year 1987, the
company became the UMW Toyota Motors. The company was a joint venture company between
the United Motor Works and the Toyota Motor Corporation. Additionally, Toyota Tsusho of
Japan was also a part of this joint venture. In the 1960s the vehicles of Toyota were imported
first to Malaysia. The first unit however was imported much before in the 1956 and was the Land
Cruiser. The 1970s was the time of the economic boom in Malaysia. The Japanese companies
like Toyota were able to consolidate their position in the market. In 1980, the company set up an
office in Kuala Lumpur. In the 1982 the Sejati Motors were established. Vehicle production for
Toyota in Malaysia became cumulatively 1 million in 2011.
3.2 Toyota’s marketing strategy for the SUV category in delivering value to
customers
The major factor of differentiation of the Toyota products in Malaysia are the relatively
lower costs for the SUV in terms of the quality that is being delivered. The Toyota cars in the
country are constant with the standards of production that the Company is Famous for. However,
at the same time the company provides higher value for cost. The Rush is one of the premier cars

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in the country for Toyota in the SUV segment. The other important SUV are Hilux, Fortuner and
Innova. The company faces competition from the Perodua models. The company focuses greatly
on providing quality for money value. The SUV models of Toyata are lesser in number than
many of the competitors. However, the value of quality is important in making the products
differentiated.
3.3 Toyota’s Performance
Passenger vehicles
Year Units sold Market share
2016 44,586 7%
2017 47615 9.3%
2018 43446 8.1%
Commercial vehicles
Year Units Sold Market Share
2016 19,171 29.2%
2017 21,877 35.3%
2018 22,105 33.7%
(Source- Lye et al. 2019)
3.4 Toyota’s performance in the SUV segment
As far as the SUV segment is concerned, the production of the Toyota model has been currently
increasing at a higher rate within the automobile market platform. This has further increased its
performance in the SUV segment to greater heights and even going as far as attracting the
attention of multiple personalities (Ye and Wu 2016).
Year Unit Sold Percentage

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2016 12,000 1.1%
2017 11496 2%
2018 12546 2%
4.0 THE MALAYSIAN AUTOMOBILE MARKETING ENVIRONMENT
4.1,PESTEL Analysis
Situation Impact on Industry Threat or opportunity
Political The political conditions in
Malaysia are stable. The
government policies are
focused on improving trade
and business in the region.
GST removal by the
government would ensure
that the production processes
would not incur more tax
costs hence, it becomes
important that the same is
used as an advantage by
automobile companies
(Malaysia.gov.my 2019).
Foreign investment is
not restricted in the
country and this can
boost the automobile
sector as well. The
opportunity is good
as the stable political
system can help to
garner much
important
consolidated position
in an industry that is
greatly supported by
the government.
The factors such as
resource utilization
and production will
be enhanced.
However, there is a
threat in in future the
government may
actually be voted out
of power causing a
shift in the outlook of
the administration.
Economic The GDP of the country are
on an upwards momentum
with predictions of it
reaching further growth in
the new year. However,
Malaysia relies much on
external trade and this can
affect the economy of the
country (Young and
Wilkinson 2016).
A good GDP means
that the prospects of
the automobile
industry will also be
good.
However, there is a
threat that the
automobile industry
might face due to
lower growth rate.
The economy can be
utilized for better
gains. However,
external trade
economic risks can
cause the company to
be affected by
production cost issues
in the future.
Socio-Cultural The active working age
population of Malaysia is
projected to grow by around
1.6%. Moreover, a literacy
rate of over 95% ensures that
The youth population
of the country is
growing. As this is a
major target area of
the automobile
The young population
can be utilized to
create better
marketing
opportunities

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there is a significant level of
higher to middle income
group (Suki and Salleh
2016).
industry, this is
bound to work in the
favor of car
manufacturers.
Technological E-commerce is booming in
the country. The car
manufacturing technology is
also witnessing significant
growth along with the latest
software in car designing
including the increased use
of 3d printers (Yi et al.
2018).
This would boost the
technology usage in
cars. There is scope
for optimal growth.
In future the
technology can be
utilized to make
better and more
effective vehicles.
Environmenta
l
Environmental concerns are
significant in Malaysia. Cars
usually produce pollution
causing effluents. Hence, the
automobile industry has to
function in accordance with
the regulations for
controlling pollution.
This is a significant
issue and the car
manufacturers in the
country will have to
provide much
importance to this.
The environmental
aspects needs to be
judiciously
considered. There is a
threat of stricter laws
being imposed in the
future.
Legal The Companies act of
Malaysia came into force in
2017 (Malaysia.gov.my
2019). It applies to all
Malaysian companies. The
laws are focused towards
reducing cost for doing
business.
The automobile
industry of the
country can greatly
benefit from the
same. The
opportunities can
mean greater effort to
the given on the other
operational aspects of
the manufacturing
process and
marketing functions.
However, the law can
change in the future
and result in lesser
benefits for the
company.
4.2 The social and cultural factors impacts
Both the social and cultural factors are known to have impacted on the Malaysian Automobile
marketing platform where various personalities have been able to interact with people from

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different regions thus exchanging various ideas regarding their perceptions on the issues taking
place within the automobile marketing platform (Machová, Huszárik and Šimonová 2016).
4.3 The economic Factors Impact
The nature of the Malaysian economy has been able to impact significantly on the Malaysian
automobile marketing environment through a variety of ways. Tough economic times within the
country have ended up causing an increase in the price of various automobile-related products
and services (Karahan et al. 2016).
4.4 Technological factor impact
The implementation of various form of technology within the Malaysian marketing environment
has made it much easier to carry out the distribution of multiple products and services to
different customers who are known to be situated in various locations.
4.5 Environmental factors impact
Quite several ecological factors have been able to impact on the Malaysian automobile
marketing environment thus affecting the rate at which various products and services are being
distributed to several other locations.
4.5 The overall conclusion of the Analysis together with its impact on the Toyota
brand
There is the need to adequately implement various laws and policies within the marketing
sector of the entire automobile industry since this is one of the best ways of ensuring that
multiple operations are appropriately performed in a more reasonable and orderly manner.

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(Godiwalla 2016) .On the other hand, the analysis is capable of adequately impacting on Toyota
as a company by making it change the way it implements a good number of its strategies
(Fernández, Mogollón and Cerro 2016). It can be said that Toyota needs to bank on the
commercial vehicle segment in order to improve their performance results. The brand Toyota is
rising in the country but at a slower rate than any of the other top companies. Toyota needs to
tread more cautiously in. the market
5.0 THE COMPETITIVE ENVIRONMENT FOR THE SUV SEGMENT
Porter’s Force Impact on the industry in Malaysia
Bargaining Power of the
Suppliers
In the SUV car oriented automobile sector is Malaysia a large
number of suppliers from various types. The suppliers in
Malaysia are large due to the relatively large number of
players operating within the car market of the country.
Bargaining power of the
customers
The bargaining power that has been encountered as a result of
multiple buyers has ended up reducing the rate of profits
received from the segment. The Malaysian SUV segment is
full of options such as Mazda, Perodua, Honda and even Audi
and Fiat.
Competition There are significant Rivalry in the Malaysian SUV market.
For example- Toyota has not been able to provide great
challenge to the SUV models of Perodua that controls a large
part of the market.
Threat of new Entrants New entrants like Audi are causing significant effects in the
SUV market of Malaysia. However, in general the threat of
new entrants are moderate. There are greater threats from the
existing companies that can significantly damage the SUV
segment market potential for the other companies.
Threat of Substitutes The motorbike and other forms of urban transportation markets
are improving in Malaysia. The streets are much crowded and
people are looking for more convenient options like samaller
vehicles and bikes. This is true even in case of travel and
family outings. Hence, the threat of substitutes are significant.

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5.6 The overall conclusion from the Analysis and its impact of the entire Toyota
Company
In case of Toyota, the Porter’s five forces reveals that there are significant threat of suppliers,
competitors and substitute products. The organization will do better to consider the threat from
the new entrants as well. It is important that Toyota focuses on achieving better relationships
with the suppliers if they want to improve their market performance.
However, he impact on Toyota Company still enables the organization to fully concentrate on
developing adequate and reliable strategies that can be used to overcome the threats.
6.0 ANALYSIS OF THE KSF FACTOR IN THE SUV MARKET
6.1 Identification of the KSF’s
Consumer Want Industry Response Key Success Factor
Comfort Comfort is very
important for the
customer in the SUV
industry of Malaysia.
The industry is
responding greatly to
the demands of the
consumers. Some of
the lesser players are
producing award
winning SUVs like
the Ford Fiesta,
Volkswagen
Vento,etc. Perodua
and Honda however
are best in meeting
customer
expectations.
Larger inside spaces,
Air Conditioning,
ventilation, leg space
and seating
arrangements are
essential.
Price Price is a significant
factor. Customer look
for cars between
price range of 90,000
RM to 300,000 RM
Some of the best
vehicles available
within this range are
Honda BRV, Honda
CRV, Isuzu, Mazda
Cx-3.
Medium price, low
post sale expense,
low maintenance
expense.
Good Quality Quality is significant Quality SUVs are Better Mileage, good