Comprehensive Marketing Strategy Analysis of Toyota in the UK Market

This report provides a comprehensive analysis of Toyota's marketing strategy, specifically focusing on its operations within the United Kingdom. It begins with an executive summary and introduction, followed by a situational analysis that includes a SWOT analysis to evaluate strengths, weaknesses, opportunities, and threats, as well as a PESTLE analysis to assess political, economic, social, technological, environmental, and legal factors. The report delves into Toyota's competitive advantages, current marketing strategies, market share, growth, and profitability. It also examines segmentation, targeting, and positioning within the UK market, concluding with recommended objectives, goals, and marketing strategies. The report emphasizes Toyota's use of the Toyota Production System (TPS) and lean manufacturing, and it highlights the importance of innovation and customer focus. The report's aim is to provide a thorough understanding of how Toyota can maintain and improve its market share and product image in the UK's competitive automobile market.

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MARKETING STRATEGY
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Executive summary
The report chose one of the automobile industries. The report originates with a brief account
about the corporation, its latest innovation, and the marketplace in which it is operating. The
report narrows down on the company orientation towards the market. The drive of the study is
also to search the marketing strategic of Toyota especially in the UK market. The secondary facts
are used to acquire on the intuitions about the market share, growth rate, and profitability index.
The paper also emphasise on the segmentation, targeting and positioning of its products in a very
competitive UK automobile market. The investigation concludes with a comprehending and
commendation of how Toyota’s market mix can attract a considerable market share and product
image for its inventive technology in the UK. The report recommends the company to use
different segmentation strategies so as to capture young generation in UK who love fancy car
model and women who prefer the product with arrays of the colour.
Keywords: customer, marketing mix, strategy, innovation

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Table of contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................5
Situational analysis..........................................................................................................................7
SWOT analysis............................................................................................................................7
Strengths...................................................................................................................................7
Weaknesses..............................................................................................................................8
Opportunities..........................................................................................................................10
Threats:...................................................................................................................................11
Pestle analysis............................................................................................................................12
Political...................................................................................................................................12
Economic................................................................................................................................12
Social-cultural........................................................................................................................12
Technology.............................................................................................................................13
Environmental........................................................................................................................13
Legal.......................................................................................................................................13
Competitive advantage..................................................................................................................13
Evaluation of the current marketing strategy.................................................................................15
Market share, growth and profitability......................................................................................16
Segmentation, targeting and positioning of UK market................................................................17

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Recommended objectives and goals..............................................................................................20
Recommended marketing strategies..............................................................................................20
Conclusion.....................................................................................................................................21
Bibliography..................................................................................................................................23
Appendix........................................................................................................................................27

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Introduction
No policymaking need convincing that Toyota Company has become one of the largest
firms because of the TPS. The unconventional trade system assists the Japanese automobile to
makes the planet the best automobile at the low rate and to grow novel merchandise fast. Not
only have the closet opponents such as Ford, Chrysler, Daimler, General Motors and Honda
advanced TPS-like System, but also postal and hospital services have embraced its underlying
tools, rules and conventions to become more efficient1.
The Toyota corporation company was established in 1937 through the creativity of
Kiichiro Toyoda2. Toyoda established the firm after attaining experience from his father’s firm.
Its headquarters are located in Japan and its processes are extensive across the globe. The
company specialises in the planning and building different merchandises. The company
assembles cars with one of the following elements; hybrid engines and combustions.
Additionally, the corporation produces spare parts. The typical mode of Toyota is Camry,
Corolla and Land cruiser. Apart from the above brand, the company creates luxury Lexus and
the Tundra automobile. By 2009, the company had 71,116 outlets in various sections across the
globe3. According to the statista (2016), the company’s stake in the UK from 2014 to 2016 has
1 Conway, A. Beijing Auto Trade Show - Toyota Unveil its new Concept. [online] Auto-
Types.com. Available at: http://www.auto-types.com/autonews/beijing-auto-trade-show-toyota-
unveil-its-new-concept-8598.html, (2015).
2 Toyota annual report. Reward with a smile by exceeding your expectations. [Accessed on 22
May 2018]. [Online]. Available at: www.toyota-global.com/investors/ir_library, (2011).

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been rotating around 2.73% and 4.17%4. Therefore, it shows that it has steadily controlled a
considerable unit of the United Kingdom vehicles marketplace. In the 2015, the corporation was
among the best selling cars5. UK automotive industry can be deliberated as a backbone of the UK
economy and generally produced around the 50 billion euro yearly income, generating about 10
billion Euro in net value-added to the economy. The UK automotive sectors hires nearly
730,000 workers in manufacturing, retail and aftermarket sectors with approximately 154,000
personnel directed enrolled in manufacturing.
3 Seymour, R., Haddon, E. and Brownlee, S. Hot looks and Cool Connections with New Toyota
Aygo Fire and Ice - UK Media Site. [online] Media.toyota.co.uk. Available
at: http://media.toyota.co.uk/2012/02/hot-looks-and-cool-connections-with-new-toyota-aygo-
fire-and-ice/, (2012).
4Statista(2016). Toyota UK market share 2014-2016 | Statistic. Available at:
https://www.statista.com/statistics/300465/toyota-car-market-share-in-the-united-kingdom/,
(2016).
5 Autocar. The UK car market winners and losers of 2015 | Autocar. Accessed on 25 May 2018,
Available at: https://www.autocar.co.uk/car-news/industry/uk-car-market-winners-and-losers-
2015 (2016).

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Situational analysis
SWOT analysis
Strengths
Robust market point and brand awareness: Toyota has a resilient marketplace rank in
various topographies across the globe. The firm’s market share in Japan was 45.5% in FY 2012.
Additionally, firm has market share of 13.4% in Asia, 12.2% in North America and 4.3% in
Europe6. Similarly, the corporation holds a 7% part of the Chinese market and a considerable
market stake in Central and South America, Middle East, Africa and Oceania areas. Such a
robust and resilient market situation permits the firm to gain competitive gain and also expands
into the global markets. Additionally, Toyota embraces a collection of strong trademarks in the
automotive business. Therefore, the firm’s sturdy marketplace position gives it substantial
competitive benefit and assists it to record higher sales progress in international and domestics
marketplaces.
Robust emphasis on the R&D: Toyota has a strong attention on R&D to enlarge its
assortment and expand the functionality, class, environmental and safety of its merchandise. The
firms R&D exertions are steered at emerging novel merchandises, processes and refining the
abilities of present produces7. The corporation conducts its R&D processes at the facility
6 Forbes. Toyota Motors. [Online]. [Accessed on 22 April 2018], Available at:
<https://www.forbes.com/companies/toyota-motor/>, 2014.
7 Sharif Ullah, A. M. M., & Tamaki, J. I. Analysis of Kanoâ€modelâ€based customer needs for
product development. Systems Engineering, 14(2), (2011). pp. 154-172.

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globally8. Strong emphasis on R&D has assisted the firm in integrating newer structures to its
current variety of products and also in conveying out newest technologies in the diverse zones.
The firm’s strong emphasis on R&D permits it to sustain the technological governance in most
of its products parts. It also facilitates Toyota to improve inventive merchandise leading to
robust transactions.
Widespread production and delivery web: the company has a broad distribution and
production web. The firm and its associates produces vehicles and linked fragments through
more than 50 manufacturing firm in 227 nations and areas besides. During the FY 2012, the firm
produced 7,435,781 automobiles across all the manufacturing places9. Additionally, Toyota has a
widespread distribution net. Geographically, the business has a well spread manufacture base
diversification business perils, and its extensive supply networks offer a broader reach, thus
backing the returns.
Weaknesses
Production recall could influence the brand image: the company has steered a number of
merchandise recalls in the past which would impact the brand appearance and general sales of
the business. For example, in 2012, Toyota recalled 111,000 simulations of Lexus and Toyota
brand due to the defect to components of the substrate and possible halt of the hybrid structure10.
8 Kotabe, M. and Helsen, K. Global marketing management, 2014, pp.31-39.
9 Global, T. Toyota Global. [online] YouTube. [Accessed on 22 May 2018], Available
at: https://www.youtube.com/user/TOYOTAglobal, (2015).
10 Andrews, A. P., Simon, J., Tian, F., & Zhao, J. (2011). The Toyota crisis: an economic,
operational and strategic analysis of the massive recall.Management Research Review, 34(10),

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In addition, the company evoked 181, 00 cars in Japan in connection to anomalous noises and oil
leak that may have stemmed from the loose of bolts in the sub transmission and the rear wheel
gap11. In additional, the firm was involved in regime investigation connected to products
recalls12.
Deteriorating sales in key topographical locations: the company experienced a drop in its
sales in key geographical parts. In FY2012, the firm saw a reduction in trades across Europe,
Asia and North America13
Poor distribution of resources as equated to the opponents: the business return on assets
and low return on equity equaled to rival firms. The firm’s players such as Nissan motors and
Honda have more ROE when matched to the Toyota. Honda motors were 4.4%, while Nissan
motors was 8% in FY 2012. Contrary, Toyota ROE was 2.7% in FY2012. Therefore, ROA and
ROE linked to its peers signposts that the firm is not using the stakeholders cash effectively and
that it is not building the high return for its stakeholders.
1064-1077.
11 Toyota Global. Com., Toyota production system. [Accessed on 22 May 2018], [Online].
Available at:
<https://www.toyota-global.com/company/vision_philosophy/toyota_production_system/> 2014.
12 Ibid, 1068.
13 Thompson, A. Toyota External Analysis: Opportunities & Threats - Panmore Institute.
Panmore Institute. Available from: https://panmore.com/toyota-external-analysis-opportunities-
threats, (2015).

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Opportunities
Rising international automotive sector: the global automotive sector was extremely
influenced by the economic slump, with a weakening in returns noted in 2008 and 2009. In
2001, the company saw a resilient recover which has persisted up to 201214. The salvage of the
international automotive business offers Toyota an opportunity to advance more users and
upsurge revenues.
Toyota poised to gain from the developing collaboration with BMW. Toyota and BMW
assigned a memorandum of understanding meant at long-term planned partnership on
technological arena15. Thus, the two businesses will partners for the dual growth of the
architecture, improvement of a fuel cell system, constituents for sport cars, research and
development on lightweight tools and collaboration on power-train electrification. The joint
effort will result in substantial cost saving, interactions and also boost the operative margins.
Robust viewpoint for the international novel car market: the international novel vehicles
have encountered comparative growth. But, estimates advocate this will increase to a solid
double digit growth, thus the resilient viewpoint for the international new vehicles joined with
the firm’s novel produces launches offers an advancement chance.
Threats:
Extreme rivalry: the international automotive marketplace is greatly competitive in
nature. The Toyota faces a robust competition from automotive producers in its diverse market.
The aspects impacting the rivalry comprise products feature and quality, the amount of time
14 ibid
15 Toyota Cars. 2010 Toyota Corolla Consumer Reviews. Cars.com. Available at:
https://www.cars.com/toyota/corolla/2010/consumer-reviews/, (2016).

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needed for the innovative and advancement, reliability, fuel economy, pricing, financial terms
and customer services. Improved rivalry may also lead to lower vehicles unit sales and huge
portfolio which leads in downwards rating force, thus, influencing the financial status and the
results of operation of the firm.
Appreciation of Japanese Yen a main challenge: the strengthening of the Japanese’s Yen
against the US dollar and fluctuation in foreign exchange rates would have a material impact on
the company’s operations results, which impact the company’s valuation.
Natural disasters could influence the production configuration: the business is subject to
the distraction of production due to natural calamities such as floods and earth quakes. In 2011,
the company witnessed shocking volcanic activity in the past years which adversely upset the
economy. In the same year, floods happened in Thailand in Thailand which stopped its processes
and manufacture of about 150,000 Toyota cars16.
Pestle analysis
Political
The political firmness of main markets is a prospect for Toyota to advance with
insignificant political stress. The free trade agreement encompassing Japan and other nations
present chances for the imported market penetration. Additionally, the government support from
the ecofriendly merchandise is an opportunity for the business to advances its product to satiate
the ecological expectation.
16 The Guardian Inc. Toyota holds the top spot as world's number one carmaker. The Guardian.
Co.uk, Monday 24 January 2011. [Accessed on22 April 2018]. [Online]. Available at:
http://www.guardian.co.uk/business/2011/jan/24/toyota-world-number-one-caremaker, (2011).

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Economic
Toyota has the prospect to advance from Japan grounded on the weakness of the Japanese
Yen. Additionally, it has a chance to raise its trade in the US which is the company second
largest market after Japan17. Similarly, the rapid development of economies presents the prospect
for the company to progress revenues centered on this market.
Social-cultural
The company has the opportunity to offer more produces that fulfill the user ever
escalating attention in electric and hybrid cars. But, the corporation ought to contemplate the
widening wealth gap, which appears to be a threat because of decreasing middle class. Therefore,
in this aspect of Toyota pestle analysis, the social external element of the broadening wealth gap
is a major challenge.
Technology
Toyota Corporation has a prospect to advance its e-commerce abilities or to exploit third
party e-commerce services provider for the transactions of some of its merchandise such as spare
part. Also, the company has a chance to improve its mobile app to upsurge user engagement and
devotion. But, the firm must communicate the risk of the cybercrime, counting the corporate
cyber-espionage.
17 Toyota. TOYOTA IN THE WORLD 2010. Available at:
https://www.toyota-global.com/pages/contents/company/profile/in_the_world/pdf/
databook_en_2010.pdf, (2016).