Marketing Report: Toyota Industries Corporation - Global Marketing

This report provides a comprehensive analysis of Toyota Industries Corporation's marketing strategies. It begins with a background of the company, highlighting its history, key products, and the evolution of its marketing efforts, including its early focus on the US market and subsequent global...Read More

Running Head: MARKETING
MARKETING
Name of the Student
Name of the University
Author Note

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Table of Contents
Answer to Question 1.................................................................................................................2
Answer to Question 2.................................................................................................................3
Answer to Question 3.................................................................................................................5
Answer to Question 4.................................................................................................................7
References..................................................................................................................................9

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Answer to Question 1
Toyota Industries Corporation
Toyota Industries is a Japanese automotive machine maker company which is
considered as largest manufacturer in terms of revenues. The company is involved in
producing textile machineries, electronic devices, automobiles and handling equipments. The
corporation was founded in the year 1926 and was focused on selling the automobiles. The
company first produced a car named as “Model AA sedan”. To gain competitiveness, the
marketing department researched in the American automobile manufacturer to own technical
& economic competency. In 1957, Toyota Motor Sales were established in USA, which
released a new brand known as Toyopet sedan. This model was first marketed in the states of
United Nation. This was the initial step taken for new development of the business. But the
demand was not so high. But, in the year 1958, the company redesigned this model and it was
known as Toyota Corona. This model was successful in the market of United States
(Encyclopedia Britannica. 2020). Then the company expanded at a greater rate during the
1960s and 1970s and became as one of the largest market in the foreign market. It gained
reputation due to low cost, more efficient fuel and manufacturing more reliable vehicles in
the year 1968. Then Toyota Motors Company merged with Toyota Sales. Then later on it
partnered with General Motors Corporation and started their production in the United States.
The company had experienced growth in producing various innovations in luxurious brand.
At present the company is focused on maintaining the quality and meet the changing
needs of the customers. The company is focused mainly on three things product quality,
management quality and improving the marketing quality. Market quality is related to
excellent sales & service in addition to safety of the product. They are focused on
strengthening the brand and improving the corporate image by fulfilling all the attributes
(Dillon 2019). The marketing department works with production department to capture the

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product requirement according to the marketing needs (Aoki and Wilhelm 2017). The
company educates all their employees and promotes on development of human resources for
getting engage in the company and get involved in doing innovations of the product so that
the marketing team and the sales team can convince the customers to buy the product. This
also means that the business is continuously making innovations to attract the customers to
buy their product. It identifies the new markets on the basis of what customer wants to
modify in the existing product. The marketing department is promoting the business on a
global scale. The company has customer-oriented sales expansion in order to receive larger
numbers of order from the customer. They initiate demonstration event in order to welcome
new customers (Toyota-industries.com. 2020). They also have direct sales plan in their
marketing activities. This is mainly done within the local sales. They also make proposals for
logistics solutions which is very much important for attracting the customers towards the
product.
Answer to Question 2
a. Marketing Strategies
The 4Ps marketing mix of the strategy for interacting the target market.

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 Product- the company has a diverse range of products. Lexus automobiles is the most
luxurious product of the company. Welcab series automobiles are developed for
disabilities. It also manufactures engines, spare parts and other accessories of
automobiles.
 Price- The price of the product vary depending on the model or product line. The
company uses market oriented and value oriented strategies for pricing the product.
Market oriented strategy is used to determine price based on market conditions and
competitions. Pricing oriented strategy is used based on the actual value of the
product. Value based is used in case of expensive products like Lexus cars and other.
The price mix strategy of the company shows the price based on customers
perceptions and market condition (Putra 2019).
 Place- Toyota is distributing the products through dealerships. They reach the
products to the customer’s location. Retailers also included in the distributing strategy
of the company (Hatta, Rachbini and Rahmawati 2018). Some retailers like auto
supply stores also distributes spare parts & other automobile accessories.
 Promotion- The Company communicates with the customers with the help of this
strategy. They uses personal selling, advertising, public relations, sales promotion and
direct selling as their promotion strategy. Personal selling is done through sales
personnel of the dealership (Panmore Institute. 2015). The sales personnel promotes
the product to buyers. Advertising is done through newspaper, TV and company
websites. Public relation creates a strong brand image. This part includes a strong
promoting strategy of the company.
b. Economic Scenario
The world economic market is continuously emerging and the economy is expected to
grow at 4.1-4.7 per cent in the coming year. There will be lot of investments done to maintain

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the demand of the customers and make the product durable in the advanced market
economies. The households will be willing to spend more on their needs. United States
economy is expected to grow at a rate of 2.6 per cent in the upcoming year. Japan’s economy
will also be growing at a rate of 0.9 percent in the upcoming year. The GDP of these
countries will increased and there will be a large contribution of exports. Toyota industries is
continuously getting its support from the consumers (Jakhria et al. 2019). The rapid
technology advancements will help the company to gain a competitive advantage in the world
economic market. The company is focused on providing all the necessities by making
innovation & brand differentiation. Hence. This will meet the consumer demand. Since,
technology will connect the whole world. Toyota technology will connect the whole world
and gets benefited from the world’s economy. Toyota are also planning to manufacture
electric vehicles will connects with the customer beliefs. This will benefit the company in
following the environmental standard and advance their technology in the competitive world.
Since, Toyota has established a strong brand both in United States and Japan. The growth in
country’s GDP will also benefit the company in expanding their business (Gautam et al
2017). Hence, Toyota will combine the technology with design as a strategy for attaining the
competitive advantage.
Answer to Question 3
a. Toyota Industries will face challenges in building social networks while emerging its
business. Toyota has faced problem in social media platforms related to safety defects
in the vehicles. The reaction from customers has accused the financial market of the
company. The company can face challenges due to this negative reports form social
media platforms like facebook and twitter (Ito 2019). The news have spread to most
of the countries like Europe, China and other parts of the world. Toyota may face
challenges and may damage its reputation if the company doesnot reacts well and

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handle the consequences. Toyota has to protect this social consequences in order to
create an enormous brand value in the global market. Toyota can also face cultural
challenges in order to establish its business into new locations. Then company will be
unfamiliar with the culture of people in the new locations. There can be also shortage
of human resources. There may be misinterpreted communicated within the
employees and other workforce in the company (Betancourt, Mooney and Ross 2018).
The company may not be able to understand the cultural needs of customers in terms
of automobile machines. They may face challenges in making a proper target
segmentation that is targeting of social class with lower cost, developing
modification’s based on the customer requirements. If the company faces this
challenge then it can adapt and emerge its business into the new regions.
b. Toyota manufactures is efficient die to its highly commendable service quality of the
business. The company has a good reputation in terms of innovation and brand
growth. It advances its technology according to the changes in the external
environment. Globalisation has enabled a rapid advancement in technology and
market. For successfully achieving this; the company needs an efficient information
system that communicates every single important information to the departments. The
information related to product designing should transparently reached to the
manufacturers, sales operations departments of the company (Maikola 2017). In order
to invest in new technology and innovations, the company requires work efficiency.
For this the data should be organised in a crucial manner. The employees and
management should manage the information and execute in business process.
Keeping records will easily help the organisation to track their current data and
compare it with the previous data of the company. This will help the company to
forecast the future trends of the business in the international market. Information will

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help Toyota to do research on its competitors and design its product in a way that is
more advanced than the competitor in terms of quality and price. Then according to
the information, they can strategies their future business. Therefore, a good
management of the information will help the organisation in planning, storing,
collecting and circulate the data to each and every manager of the department for
further decision-making process. Hence, good information is very important for
Toyota to reach abroad.
Answer to Question 4
a. Toyota has a strong brand image among the automobile companies. They have great
capability of doing innovations and maintaining a strong supply chain. But it has
weakness in its organisational culture and structure. This can affect the business. In
order to beat the competition in the market. The company must position its brand
according to the minds of the customer. They should continue proceed with producing
sustainable & green product innovations (Van Riemsdijk et al. 2017). They must
strategies fuel efficient product. Most importantly it must be safety for the customers.
They should also make innovations in developing prestigious product in addition to
the quality. The product should be reliable and luxurious according to the brand need.
Toyota should target the customers according to the family needs of the new
locations. They should be aware of the environmental standards and requirements. Market
segments must also be identified on the basis of customers for whom quality matters and also
for the disability needs. They should mostly focus on providing cars for the family needs.
This includes the demographic segmentation of family with children for household purpose.
This customer group requires a larger and more comfortable car for greater experiences and
move their family for their basic needs (Pooja and Rajesh 2016). Toyota can benefit the
family needs of larger seats and providing entertainment units. In addition to this, safety and

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reliability is also important for this demographic segmentation. They should also concern on
customers who purchase on the basis of environmental factors. For this they can also produce
hybrid cars with lower fuel consumption.
b. Since, Toyota sets price according to market value therefore, this strategy should be
adopted to set the price of the product. The price to be set according to the current
market conditions on the basis of competition, demand and customer requirements.
Price should be set and negotiated between the dealers to maintain the profitability. In
case of newer technology introduced in the market, Toyota can use Price Skimming
strategy in their business (Coursehero.com. 2020). This strategy includes a high price
initially when the product is launched and then reinvesting the amount into another
product designing process. For-example, introduction of cell phones is a type of price
skimming strategy. This will also be helpful in time when the economy of a country is
not doing well, then the company can lower the price of product to adjust the price
according to dynamic environment.
Toyota to go international, should go with publicity strategy of product
promotion. New customers will not be knowing more about the product, hence they can
go for publicity strategy. This includes doing public relation events to demonstrate the
product in front of the customers. They can demonstrate it any kind sports events or
business events to increase the customer base (Ma and Koutsopoulos 2019). This strategy
will help the business to easily communicate with the product information with the
customers.

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References
Aoki, K. and Wilhelm, M., 2017. The role of ambidexterity in managing buyer–supplier
relationships: The Toyota case. Organization Science, 28(6), pp.1080-1097.
Betancourt, P., Mooney, J. and Ross, J.W., 2018. Digital Innovation at Toyota Motor North
America: Revamping the Role of IT.
Coursehero.com. (2020). 4 Pricing Strategy Fords main goal when setting prices is
that they are . [online] Available at: https://www.coursehero.com/file/p2esrok/4-
Pricing-Strategy-Fords-main-goal-when-setting-prices-is-that-they-are/ [Accessed 3
Apr. 2020].
Dillon, A.P. ed., 2019. A study of the Toyota production system: From an Industrial
Engineering Viewpoint. Routledge.
Encyclopedia Britannica. (2020). Toyota Motor Corporation | History & Facts. [online]
Available at: https://www.britannica.com/topic/Toyota-Motor-Corporation [Accessed 2
Apr. 2020].
Gautam, A., Chamoli, S., Kumar, A. and Singh, S., 2017. A review on technical
improvements, economic feasibility and world scenario of solar water heating system.
Renewable and Sustainable Energy Reviews, 68, pp.541-562.
Hatta, I.H., Rachbini, W. and Rahmawati, E., 2018. Marketing Mix Analysis, Purchase
Decisions, And Customer Loyalty Of Toyota Yaris In Jakarta, Indonesia.
Ito, H., 2019. Analyzing Toyota City’s eco-policy through strategic marketing tools. Asian
Social Science, 15(4), pp.23-36.

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Jakhria, P., Frankland, R., Sharp, S., Smith, A., Rowe, A. and Wilkins, T., 2019. Evolution of
economic scenario generators: a report by the Extreme Events Working Party members.
British Actuarial Journal, 24.
Ma, Z. and Koutsopoulos, H.N., 2019. Optimal design of promotion based demand
management strategies in urban rail systems. Transportation Research Part C: Emerging
Technologies, 109, pp.155-173.
Maikola, M., 2017. Entering the Swedish market: Entry mode strategy suggestion for
Company X.
Panmore Institute. (2015). Toyota’s Marketing Mix (4Ps) Analysis - Panmore Institute.
[online] Available at: http://panmore.com/toyota-marketing-mix-4ps-analysis
[Accessed 2 Apr. 2020].
Pooja, K.M. and Rajesh, R., 2016. Image Segmentation: A Survey. In Recent Advances in
Mathematics, Statistics and Computer Science (pp. 521-527).
Putra, A.H.P.K., 2019. Quantitative Series: Linking Marketing Mix and Increasing Product
Sales of Toyota Type Avanza.
Toyota-industries.com. (2020). [online] Available at: https://www.toyota-
industries.com/investors/items/p35e-p50e.pdf [Accessed 2 Apr. 2020].
Van Riemsdijk, L., Ingenbleek, P., Van Trijp, H. and Van der Veen, G., 2017. Marketing
animal-friendly products: Addressing the consumer social dilemma with reinforcement
positioning strategies. Animals, 7(12), p.98.