Marketing Report: Toyota Land Cruiser Market Segmentation and Analysis

This report offers a comprehensive marketing analysis of the Toyota Land Cruiser, examining various aspects of its market positioning and consumer engagement. It begins with an executive summary and an introduction, followed by an in-depth environmental analysis, exploring both internal and external factors influencing the company. The report highlights key success factors, such as optimum capital utilization and effective cost controls, while also delving into market research, including consumer questions and data collection methods. It emphasizes the significance of market segmentation, particularly how Toyota divides its market based on income levels and consumer behavior, including purchasing patterns, benefits sought, usage rates, and user status. The report concludes by emphasizing the importance of adapting marketing strategies to meet consumer needs and expand business operations in the automotive industry. The report is based on research and analysis, and provides a thorough overview of the Toyota Land Cruiser’s marketing strategies, market segmentation and future prospects.

Fundamentals of Marketing
Student Name: Adetola Adeoye
Student ID: 6541666

Fundamentals of Marketing
Table of Contents
Executive Summary……………………………………………………………………………….3
Introduction……………………………………………………………………………………….4
Environment Analysis……………………………………………………………………………..
4
External and Internal Factors.......................................................................................................5
Success Factors............................................................................................................................6
Market Research..............................................................................................................................7
Market Segmentation.......................................................................................................................8
Conclusion.....................................................................................................................................10
Bibliography..................................................................................................................................11

Fundamentals of Marketing
Executive Summary
Purchasing a car is a dream for many people with the advancement of technology. There are
many companies which manufacture cars but this report will only focus on the Toyota car
manufacturer which produces different types of cars. Toyota Motors is a company which
designs, manufacture, assembly, and sale passenger cars, vans and commercial vehicles. It was
established in 1937 and its markets include Japan, North America. Europe and Asia. There are
several factors which influence the Toyota Motors company both positively and negatively. The
capital utilization is optimum. There is effective use of cost controls. The work practices in the
company are the most efficient ones. The company has established export markets. The
determination of expenditure is flexible. Market segmentation is the act of dividing a collective
product into different groups based on one or more criteria. The Toyota Company which is the
leading car manufacturer has its own market segmentation. Example the Toyota Land cruiser is
segmented for the middle-income earners while Toyota Fortune is segmented for high-income
earners. This segmentation enables the Toyota Company to serve its consumers more
effectively. The segmentation in this case involves dividing the people and the company into
groups according to their behavior toward the land cruiser. Segments in this case include;
purchasing behavior, benefits sought, usage rates and user status.

Fundamentals of Marketing
Introduction
Purchasing a car is a dream for many people with the advancement of technology. There are
many companies which manufacture cars but this report will only focus on the Toyota car
manufacturer which produces different types of cars. We will focus on the Land Cruiser type of
the car manufactured by the Toyota company (Monden,Y.,, 2011, p. 10). Land cruiser is a type
of car which is one of the best cars in the world because of its excellent features. It has multi-
terrain and craw control, 5.7LV8 engine, a stylish interior, 8-passenger seats and many other
excellent features.
Environmental Analysis
Toyota Motors is a company which designs, manufacture, assembly, and sale passenger cars,
vans and commercial vehicles. It was established in 1937 and its markets include Japan, North
America. Europe and Asia. Toyota Motor Company is the 8th largest automotive manufacturer in
the world. Toyota has a huge market in Japan which is the second-largest market for the Toyota
company (Liker,J.K.,& Franz,J.K., 2011, p. 66). The largest market for Toyota Motors in North
America where according to study the company sold 2.8 million vehicle units in North America.
Also, the company has markets in Asia and Europe. Industry overview in Toyota Motors is
conducted to analyse the external factors that affect the operations of the company. The
information is important because it reviews the current economic conditions in the market. Land
cruiser is a type of car which is one of the best cars in the world because of its excellent features.
It has multi-terrain and craw control, 5.7LV8 engine, a stylish interior, 8-passenger seats and
many other excellent features. The current market share of the Toyota Land cruiser is 8.4 out of

Fundamentals of Marketing
10. The car has an excellent off-roader, plenty of standard features and comfortable cabin. The
current challenges of the vehicle are poor gas mileage and unresponsive touch screen.
External and Internal Factors
There are several factors which influence the Toyota Motors company both positively and
negatively (Saleeshya,P.G.,Austin,D.,& Vamsi,N., 2013, p. 200). The factors are discussed
below;
Threat of new entry
The amount of capital required is large and there are few legal barriers protect the companies
from competitors. The products are differentiated where the governments protect the domestic
market by introducing high import taxes. The competitors easily access suppliers and distributors
and the company has developed a brand image and reputation.
Suppliers power
The number of suppliers is large but they don’t pose threats of forward integration. Materials are
widely accessible and the Toyota Motors use another type of material but only to some extent.
Buyer power
The buyers are many where most are individuals who only buy one car but governments
purchase fleets of cars hence bargaining for lower prices. The buyers are able to choose
alternative car brands and they are always price sensitive and they are mostly concerned about
the cost of the vehicle. The cost of switching to other brands and using other transport types is
not much.

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Threat of substitutes
In the automotive industry, there are many alternative transportation types like buses, planes,
trains or bicycles and all these don’t offer the same convenience. These substitutes are less costly
and environmental friendly.
Competitive rivalry
The number of competitors in Toyota Motors is moderate and the threat of being acquired by the
competitor is also moderate. The customers of the company are very loyal to their brands where
the rivals compete for different consumer segments. The Toyota company is large and if it would
leave the industry, it would incur a lot of losses hence it chooses to stay in the automotive
industry.
Some of the success factors in Toyota Motors company are listed below;
The capital utilization is optimum.
There is effective use of cost controls.
The work practices in the company are the most efficient ones.
The company has established export markets.
The company uses the advanced technology and techniques in its operations.
The determination of expenditure is flexible.

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Market Research
The consumers of the Toyota Land cruiser have had many questions concerning this product so
as to gain knowledge and skills in buying the car. The questions that the manager of the Toyota
Motors should try to answer the consumers are listed below;
1.Is the Toyota Land cruiser a good SUV?
The consumers would like to know if the Land cruiser is a good SUV because they are looking
for a capable off-road SUV and they would be more pleased with the land cruiser.
2.Should we buy the Toyota Land cruiser?
This is important for the consumers because they would like to know what features the land
cruiser has for them to purchase it.
3.Should we buy a new or used Toyota Land cruiser?
The consumers would like to know both the pros and cons of buying both the new and used
Toyota Land cruiser.
To be able to gather information for the questions, some important steps are followed
(Onwuegbuzie,A.J.,Leech, N.L., &Collins ,K.M., 2010, p. 44).
i). First, I would identify all those questions that the consumers of the Toyota Land cruiser would
like answered by the management of the company. I would use a quantitative research method
where I would carry out a survey by asking the consumers some questions about the company
and the brands they purchase. The method is faster and cost effective, the researcher is able to

Fundamentals of Marketing
test hypothesis and the statistical nature allows for generalization. On the other hand, in using the
method one is not able to achieve specific details that are achieved by qualitative method.
ii). I would then select one key question so as to gather information and set my goals and
objectives to find the answers to the question.
iii). The next stop I will be able to plan an approach and methods I will use in the information
gathering by deciding who to survey especially the manager of Toyota company, and how I will
be able to collect the information.
iv). I would then carry out the information collection where I will be able to gather all the
information I need to provide answers to the consumers of Toyota Land Cruiser.
v). I would then do the analyzing and interpretation of the information have gathered using
quantitative research method (Waltman et al., 2012). The type of research I would use is a
descriptive research which is varied, relatable, applicable and potentially subjective.
vi). After analyzing and interpreting my information, I would then act on the results. I would
decide either to collect more information or modify the one I already have.
By carrying out all these steps, I will be able to come up with answers to the questions of the
consumers of Toyota Land cruiser (Leeining,M.J.,Kavousi,M.,Heeringa,J.,Van
Roiji,F.J.,Verkroost-van Heemst,J.,Deckers,J.W.,& Witteman,J.C, 2012, p. 101).
Market segmentation.
Market segmentation is the act of dividing a collective product into different groups based on
one or more criteria. The Toyota Company which is the leading car manufacturer has its own

Fundamentals of Marketing
market segmentation. Example the Toyota Land cruiser is segmented for the middle-income
earners while Toyota Fortune is segmented for high-income earners. This segmentation enables
the Toyota Company to serve its consumers more effectively. Some of the characteristics which
make the Toyota Land cruiser to be different from the other cars include; a leather-trimmed,
heated steering wheel; ventilated and heated seats; instrumental panel; four-zone automatic
climate control; rear-seat DVD entertainment system. These characteristics are behavioral and
they are useful for the Toyota land cruiser because they show the benefits consumers get from
the brand, how the brand is used, the usage situation and the customers’ loyalty to the brand.
The segmentation in this case involves dividing the people and the company into groups
according to their behavior toward the land cruiser. Segments in this case include; purchasing
behavior, benefits sought, usage rates and user status. The purchasing behavior deals with both
the product and the consumers. By looking at how they two are related, the moments in which
the consumer is likely to buy the land cruiser is determined. In the benefits sought, the Toyota
company should understand what the customers expect to receive from using the Toyota land
cruiser. In the usage rates, the company should know how often the consumers will use the
vehicles. They should be categorized in usage users, middle-level users and light users. In the
user status, the consumers should be categorized into non-users, prospects, first-time buyers,
regular users and defectors.

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Conclusion.
This task was about the purchase of a Land Cruiser which is manufactured by the Toyota
company. We have looked at the environmental analysis of the Toyota company, its success
factors and the micro environment factors. The task has also described a market research which
contains information that consumers of the Toyota Land cruiser require. Lastly, the task has
viewed the market segmentation, targeting and positioning of the Toyota Land Cruiser. The
Toyota company should continue undertaking the efforts so as to strengthen the management
platform and to expand the business by looking at the marketing conditions in its different
markets. The company should aim at supporting the industries and social infrastructures in the
world by supplying more automotive products and services to meet the needs of their consumers
all over the world.

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