Analysis of Toyota's Marketing Strategies in the Canadian Market

This report provides an analysis of Toyota's marketing strategies in the Canadian market. It examines how Toyota segments the market based on lifestyle, social class, and vehicle type, including luxurious, fuel-efficient, high-performance, and environmentally friendly cars. The report outlines the tar...Read More

Running Head: MARKETING
Marketing
Names
Institutional Affiliations

MARKETING 2
Toyota Motor Corporation is one of the leading car manufacture in Canada and across
the world. Canadians are showing great demand for vehicles as time goes on (Mathieson,
2010). In order to meet its marketing objectives, the company has segmented the Canadian
market according to various characteristics of the consumer. The purpose of market
segmentation is to split the general market needs into smaller defined groups. In this country,
it has segmented its market according to life style and social class.
In Canadian market, Toyota has segmented its passer cars based on four major
categories namely fuel efficient car, luxurious car, high performance car and high tech-
environmentally friendly (Bose, 2012). Based on these segments, the company is able to
serve every consumer to satisfaction irrespective of their differences in terms of needs and
preferences.
The luxurious cars are bought by high class and people who like being associated
with expensive things. Some of the luxury cars comprise of Lexus, 4runner and Sequoia.
Such vehicles are also commonly used for transporting VIPs (pauwels, 2015). One of the
characteristics which define cars under this category is that they are expensive and costly to
maintain. Most of vehicles under this category are big or designed with unique features
which define high class. Under this category, are also purchased by families with between 4-5
members and those who have high levels of income.
The fuel efficient cars are sold to mid-low level income category with family of
between 2 to 5 members. Some of the cars under this segmentation comprise of Camry, Prius,
Yaris sedan, corolla, Yaris Hatchback, and among others. Under this category, the company
provides the consumers with broad range of prices. One of the reasons which made Toyota to
use this type of segmentation is because cars are expensive and costly to maintain depending
on their model.

MARKETING 3
The other segment which this company has in Canada is high performance cars
(pauwels, 2015). Cars under this category are bout by people who need unique features.
Example of vehicle under this category comprise of those which can perform better in tough
terrains and sport cars. Some of the models which can operate better in tough terrains
comprise of four wheel drive vehicles like Hilux, 4runner among others. Sport cars comprise
of Toyota Atlis sports model, Fortuner among others. People who purchase cars under this
category are those who like sports, adventure and those who travel in areas associated with
tough terrain, dense pools and other features where other type of vehicles can’t operate.
As environmental pollution has become a major concern in Canada. There are people
who feel they should always play a roles in ensuring pollution is minimized. As a result of
this, Toyota Canada has innovated various types of vehicles which meet these demand (Bose,
2012). Under its major segments, it has high-tech environmentally friendly vehicles which
are characterised with less carbon emission. Cars under this category also have other unique
characteristics like air filtration systems, emission sensors, LED lights, inflatable real safety
belts, and Lighter weight among others. People who purchase vehicles under this category are
those who want to drive but consider.
The four segmentations considers families of between 2 to 5 members and individuals
who like to experience driving their own vehicles (Mathieson, 2010). These segments are
meant to serve consumers of various needs and levels of income. They are also meant to
solve different needs which consumers have. For example, high performance category serve
consumers who experience challenges of tough terrain and those who like sports, luxury
serves those who like luxury products, high-tech environmentally vehicles serve those who
like to preserve environment and finally fuel efficient serve low-middle level income
consumers who like incurring less costs.

MARKETING 4
Part I Segmentation
Category: passenger cars
Company: Toyota
Segment Primary Need
Addressed
Key
demographic
variables
Key
Psychographic
variables
Key
Behavioral
variables
Brand
example
Luxurious Luxury needs Families
comprising
of 2-7
members
Lifestyle:
family- related
activities, VIP
activities like
carrying
senior
government
officials.
Key
characteristics:
expensive,
powerful
engines and
high fuel
consumption
Toyota
Lexus
Fuel efficient
cars
Economic
friendly needs
Families
comprising
2-7 members
Life style:
Adventures
Fuel efficient
and less
maintained
costs
Camry,
Prius V,
and 86,
Yaris
sedan,
corolla
Target Market Profile

MARKETING 5
High
performance
Tough terrain,
dense pools
and
Sporting
needs
Families
comprising
of 2-7
members
and
languages
Life styles:
travelling off
road and in
areas with
tough terrain
and slippery
roads.
Key
characteristics;
high
performance
features like
powerful
engines, four
wheel drive
and high
speed.
Fortuner,
Hilux and
Toyota
atlas sport
model
High-tech
environmentally
friendly
vehicles
Environmenta
l conservation
Families
comprising
of 2-7
members
Life styles:
people who
like driving
but mind
preserving
environment
Key
characteristics:
less carbon
emission
sensors,
lighter weight,
LED lights,
hybrid
engines, air
filtration
systems
Toyoyta
Prius two
eco

MARKETING 6
Targeting
According to Luther (2013), targeting is defined as the process of evaluating the
selected market segments to determine their effectiveness so as to choose one or more to
enter. For example, in terms of social class, the company has decided to enter into two
segments in the Canadian market namely luxury and low-middle class category.
According to Donald (2015), there are three targeting strategies which a company can
use: undifferentiating, differentiating and concentrated. Toyota cannot use undifferentiating
in Canada because the company is not willing to convey same message to very person. The
company can only prosper by using either differentiated or concentration targeting technique.
Based on these targeting strategies, the company target each consumer with its own
marketing mix in order to meet the desires of each consumer. Comparing the two, Toyota
mostly uses concentration, also known as niche targeting strategy. The major reason why it
has chosen to use this targeting strategy in this country is because it enables it to serve a well-
defined group of consumers.
For different products, the company uses consideration differentiation strategy.
Toyota offers different products of different value and for different market segments (Irina,
2013). For example in the sport utility vehicle class alone, it has developed a variety of
vehicles which meet the needs of consumers who belong to this category in Canada. Some of
these vehicles comprise of 4runner, sequoia, and land cruiser among others. Each of this
vehicles is tailored to different price ranges in order to accommodate people with different
buying preferences.

MARKETING 7
References
Bose, T. K. (2012). Market Segmentation and Customer Focus Strategies and Their
Contribution towards Effective Value Chain Management. International Journal of
Marketing Studies, 4(), 201-223
Donald, B. (2015). Essentials of International Marketing. London: Routledge.
Irina, P. (2013). Product Innovation Strategies on Emerging Markets: Bringing Theory and
Practice Together. European Journal of Interdisciplinary Studies, 5(2), 58-90.
Luther, W. (2011). The Marketing Plan: How to Prepare and Implement It. New York:
AMACOM.
Mathieson, R. (2010). The On-Demand Brand: 10 Rules for Digital Marketing Success in an
Anytime, Everywhere World. New York: AMACOM.
Pauwels, K. (2014). It’s not the Size of the Data—It's How You Use It: Smarter Marketing
with Analytics and Dashboards. New York: American Management Associations.