Marketing Report: Toyota's Strategy and Recommendations in Singapore

This report, prepared from the perspective of a marketing consultant, analyzes Toyota Motor Corporation's marketing strategy in Singapore. It begins with an executive summary and business background, detailing Toyota's history, product range, and global market position. The report then examines the macro-environmental forces impacting the automobile industry in Singapore, including political, technological, and socio-cultural factors. It identifies potential bases for market segmentation, including demographic, psychographic, and behavioral segments, and recommends primary research techniques such as surveys and observational research. A detailed analysis of the marketing mix (product, pricing, promotion, and place) is provided, along with strategies for improving competitiveness, including leveraging hybrid vehicles. The report concludes with recommendations for Toyota to enhance its marketing effectiveness and performance in the Singapore market, focusing on the needs of identified customer segments.

Marketing for managers

Running Head: Report
Executive Summary
Toyota Motor Corporation is a Japanese multinational organisation manufacturing
automobiles. This report is prepared from the perspective of a marketing consultant appointed
for Toyota Motor Corporation in Singapore. It presents a detailed analysis of the marketing
strategy of the organisation adopted at present and make recommendations on the basis of it
to make the marketing processes more effective and to improve the performance of the
organisation in this market. The current strategy followed for the promotion and marketing of
the vehicles by Toyota Motor Corporation is good but there are certain changes required in
the approach of the company that can be implemented after collecting primary data with the
help of survey research and observational study. This will allow your organisation to
understand and gain perspective about what their current and their potential customers expect
from the vehicles and from the brand and build on their internal stress while identifying the
inherent weaknesses that they need to work on. Toyota is one of the most profitable
automobile organisations in the world and manufacturers more than 10 million vehicles in a
year. The organisation needs to now focus on the three customer segments highlighted in the
study classified on the basis of their demographic, psychographic and behavioural features.
The organisation can also improve its competitive by promoting the hybrid vehicle product
line and Toyota Harrier specifically as it fits the needs and expectations of the target
customer segments.
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Running Head: Report
Contents
Executive Summary...............................................................................................................................1
Business Background............................................................................................................................3
Macro environment forces impacting the automobile industry in Singapore.........................................4
Political forces...................................................................................................................................5
Technological forces..........................................................................................................................5
Socio-cultural forces..........................................................................................................................6
Possible basis of segmentation for Toyota in Singapore........................................................................7
Demographic segment.......................................................................................................................7
Psychographic segment.....................................................................................................................7
Behavioural segment.........................................................................................................................8
Recommended primary research techniques..........................................................................................9
Survey research.................................................................................................................................9
Observational research....................................................................................................................10
Marketing strategy analysis.................................................................................................................11
Marketing mix strategies.................................................................................................................11
Product............................................................................................................................................11
Pricing.............................................................................................................................................11
Promotion........................................................................................................................................11
Place................................................................................................................................................12
Improving competitiveness..............................................................................................................13
3 types of Services used in marketing strategies..................................................................................14
People..............................................................................................................................................14
Processes.........................................................................................................................................16
Physical evidence............................................................................................................................16
Conclusion & recommendations..........................................................................................................17
References...........................................................................................................................................18
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Running Head: Report
Business Background
Toyota Motor Corporation is a Japanese multinational organisation manufacturing
automobiles. Founded on 28 August 1937 by Kiichiro Toyoda, it is one of the largest
automotive organisations in the world. The headquarters of the organisation is located at
Toyota, Aichi, Japan and the organisation has a global workforce of more than 370,000
employees. Toyota Motor Corporation has five distinct divisions under which they
manufacture the vehicles namely Toyota, Lexus, Daihatsu, Ranz and Hino. Along with this,
the organisation has stakes in various other automobile organisations and operates in a joint
venture with the organisations in India, China and the Czech Republic (Toyota, 2015).
Producing more than 10 million units annually, Toyota Corolla is the oldest and the largest
selling vehicle of the company, having sold more than 40 million units in July 2013. Toyota
Corolla is a subcompact car that was first produced in the year 1966. Although the vehicle
has gone through major -redesigning over the years, it became the bestselling car throughout
the world in the year 1974 and has maintained that position ever since. Toyota Motor
corporation carries out designing, manufacturing, assembly and sale of passenger cars,
commercial vehicles, minimax and their related parts and accessories. The major areas of
operation for the organisation are Japan, North America, Asia and Europe (Nkomo, 2017).
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The global market shares of Toyota Motor Corporation for the year 2018 was 9.46% what's
the highest among all the brands and automotive organisations. The closest competitors to
Toyota when it comes to the global automobile market are Volkswagen, Ford, Nissan, Honda
and Hyundai.
Macro environment forces impacting the automobile industry in Singapore
The macro environmental factors are the factors related to the external environment of the
industry that impacts its operations and profitability. The macro environment comprises of
the demographic, economic, technological, political and socio-cultural forces that shape the
industry, buying behaviour of the customers and their expectations. The three most
significant macro environmental forces influencing the automobile industry in Singapore are
discussed in this section (Barter, 2015).
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Political forces
Singapore is one of the most expensive places in the world for owning a vehicle. The
Government of Singapore has put in place various regulatory measures in the form of the
Certificate of Entitlement (COE), Electronic Road Pricing (ERP) and the custom duties for
keeping a check on the number of vehicles running on the road. The COE is the most
significant factor that influences the sales of the automobiles the people of Singapore have to
place bits in an open with uniform price auction for attending the legal right for registering,
owning and using a vehicle in the country for the next 10 years (Commin, 2018). This has been
in place in Singapore since 1990 to limit the number of vehicles and to provide better
management of the transport network of roads by restricting the vehicle ownership by the
people. Along with this, the Government of Singapore has also imposed the congestion tax in
the form of ERP for improving traffic management and to maintain a sustainable quality of
life across the region (Mohr, et al., 2016).
Technological forces
The digitisation and changes in the business models have brought about numerous changes in
the automotive industry of Singapore. The electrification of the vehicles, diverse mobility,
and autonomous driving adjust few trends that resulted in the disruption of the trends that are
currently being followed in the industry. Technology plays a significant role in changing the
course of businesses and as the latest technology diffuses across Singapore, the performance
the different brands operating in the automotive industry and their profitability will be
impacted (Cleanair Asia, 2016). Because of the increasing competition and changes filled by the
latest technological advancements, do organisations have to simultaneously compete with one
another and with the Other industries on multiple fronts in order to target the right customer
segments and still target the segments that are economically attractive (Ferguson, 2017).
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Socio-cultural forces
The socio-cultural trends of focusing on sustainability and reducing emissions have made the
business organisations come up with ways to adopt the practices that reduce their carbon
footprint and also contribute to environmental sustainability (NEA, 2011). There is
unprecedented scrutiny by the regulators, customers and shareholders requiring adherence to
the environmental norms by the vehicles produced throughout the world. Along with this, the
trend like corporate social responsibility also shapes the global value chain of the automobile
industry and the same holds true for Singapore as well. The national regulators in Singapore
are constantly increasing the pressure on the automobile industry to embrace compliance,
transparency and good corporate governance influencing the way these organisations operate
and carry out their business (Zong & Qun, 2017).
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Possible basis of segmentation for Toyota in Singapore
The market segmentation for the automobile industry in Singapore is focused on the group of
customers and their needs and expectations from the vehicles. Segmentation of the customers
and correct targeting it is important for the success of the business organisation. If your
wishes to maximize the customer satisfaction level for their customers in Singapore, it is
important that the organisation correctly identifies the various segments of the consumer
market and select the segments to be targeted on the basis of their needs from the brand. This
part of the report presents the three possible bases of segmentation that can be used by Toyota
for targeting the right customers and maximizing their profitability in Singapore.
Demographic segment
The demographic segmentation of automobile customers in Singapore can be done on the
basis of their income and family size. The customers falling in the lower and medium income
category are not the ones that Toyota should target as the cost of owning a vehicle in
Singapore is very high. Therefore, the organisation should only target the high income group
customers who can afford to purchase and corporate a car in the country. Another
demographic segment that the organisation needs to focus on is the established families that
have children in the household. This customer segment requires a larger and more
comfortable medium for moving around and therefore, they are more likely to purchase a car
instead of depending on public transport or rented vehicles (Anable & Schuitema, 2011).
Psychographic segment
The psychographic segmentation recommended for Toyota is on the basis of the social class
and lifestyle of the people. This requires the division of the entire market into segments on
the basis of the personality traits, values and attitudes of the consumers. The psychographic
profiling of automobile customers in Singapore can allow Toyota to target the right
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Running Head: Report
customers. The people war inherently ambitious and aim to be upwardly mobile in their
approach to transport are more likely to purchase a vehicle for improving their lifestyle.
These people are materialistic and often purchase things for symbolising success and
achievement in life. The organisation can target this customer segment by advertising the
vehicles as a luxury that is only owned by the successful people (Garling, 2018).
Behavioural segment
Toyota is fairly active in its approach to going green and is developing hybrid vehicles that
run on alternate sources of energy. The customer segment of the people who are
environmentally conscious should be targeted by the organisation by promoting vehicles that
are low on emissions and are developed on the eco-sensitive technology by providing the best
design. In Singapore, Toyota has launched the Toyota Prius hybrid which is targeted at the
luxury hybrid car segment providing superior performance while reducing the negative
impact of the traditional vehicles on the environment. The organisation can target the
environmentally conscious customer segment through this line of vehicles that is extremely
efficient and answers the needs of this customer segment effectively (Larsen, 2010).
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Recommended primary research techniques
The business organisations require the collection and analysis of primary data is it provides
them with the original perspective on the needs of the customers and also provides them with
a chance to gather the information that is relevant for their specific problem. The primary
data collected by the business organisations provide them with accurate and updated
information that can be analysed to get reliable results assessing the effectiveness of business
activities and the results obtained from them. In order to operate successfully in Singapore, it
is suggested that Toyota Motor Corporation makes use of techniques for primary data
collection for gathering information related to customer satisfaction and for taking steps to
improve their practices for enhancing it. The suggested primary research techniques for
Toyota Motor Corporation in Singapore are presented in this section.
Survey research
Survey research easy to develop and allows the organisation together a lot of information
conveniently through the online and offline medium. It is suggested that Toyota Motor
Corporation should make use of online surveys that can be circulated to their target customer
groups to understand their expectations from the vehicles and bring about the necessary
changes in their cars. Along with this, the organisation can also make use of this technique
forgetting feedback from their existing customers by asking them questions about their
current satisfaction level and any suggested changes that will help the organisation in
improving the vehicles and their operations in the country. This technique is suggested for
Toyota Motor Corporation as it reduces geographical dependence and allows the organisation
to collect data from a large number of people in a cost-effective manner (Rahman, 2016). This
also provides them with an opportunity to collect a broad range of data and the survey
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Running Head: Report
questionnaires can be standardized or customised on the basis of the customer segment from
which the information is to be obtained.
Observational research
The observational research technique is another effective method for data collection for the
Toyota Motor Corporation. The organisation can observe the buying behaviour of the
customers by conducting field research of the organic behaviour demonstrated by the
customers in the natural environment to understand how they react to the marketing
initiatives of Toyota Motor Corporation and how satisfied they are with the vehicles and
options offered to them. The organisation can make use of observational research to gain
significant insights about their behaviour and identify any conscious or subconscious bias that
they may hold towards the brand for their vehicles. Observational research also provides
Toyota Motor Corporation with a real-world perspective by getting a description of the
consumer behaviour instead of taking the decisions based on hypothetical facts and figures or
assumptions made by organisational leaders. Observational research technique is a more
reliable measurement of the actual behaviour demonstrated by the customers as compared to
any other metrics adopted by the company (Toyota Motor Corporation, 2019).
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Marketing strategy analysis
Marketing mix strategies
The marketing mix strategy of an organisation comprises of the four elements of product,
pricing, promotion and place. Analysing the marketing mix for Toyota in Singapore:
Product
Toyota offers a wide variety of cars in Singapore specific to the needs of the different
customer segments. The organisation has which variety of sedans, SUVs, MPV and
hatchbacks that the customers can choose from along with the automobile parts and
accessories. The organisation has specifically put together the hybrid product line for catering
the changing technology and the expectations of the customers who are environmentally
conscious. Toyota Prius was the first Hybrid Car that was developed by the organisation in
the year 1987 and launched in Singapore in the year 2001. The models Camry and
Highlander are the latest addition to the hybrid product line of Toyota in Singapore
(Arachchige, 2012).
Pricing
Toyota is known to keep the customers first and the worldwide success of the organisation
can be attributed to the excellent quality of the vehicles and the moderate pricing. However,
in Singapore, Toyota is positioned as a premium brand offering the latest and top quality
vehicles that are priced higher than and the competitors.
Promotion
The promotional strategies adopted by tomorrow in simple extremely innovative and they
make use of both electronic and non-electronic mediums for communicating with their
customers. Toyota uses catchy slogans that help the organisation to draw the attention of its
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