The research focuses on the marketing plan for the Toyota company, which is a global leader in motor vehicle production. Toyota applies the best marketing plan to gain its market share and competitive advantage. The company produces vehicles of different kinds to meet the demand of every consumer. The paper identifies the strengths and weaknesses, as well as opportunities and threats of the firm through SWOT analysis. The research also recognizes the primary goals of marketing for the company and how the set strategies enhance the functionality of the company. Additionally, the research establishes that the company focuses on improving its profit through pricing strategies and product differentiation. The company believes in offering reasonable prices to its consumers, as well as in delivering vehicles that are of more value than those of its peer competitors such as Ford, General Motors, and Hyundai companies. The research also explores details regarding control and evaluation that ensure proper check and balance within the company.
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Marketing plans are essential for any business to succeed in the global markets which have become more competitive over the years. While some companies have a well-established marketing plan, others still lag behind in adopting modern techniques for making higher sales. In larger industries such as automobile production, companies need to maintain focus on establishing marketing plans to remain at the top. Toyota company is one of the automobile industries that have established a good strategic marketing plan. This paper aims to explore the marketing plan for Toyota company, underlining its competitiveness in the market based on sound strategies of operation.
Toyota company is a worldwide leader in the motor vehicle industry dealing in the manufacturing, assemblage, and distribution of cars all over the globe. The company is agued to perform well because of its efficient management style. Sohiduzzaman (2019) noted that the company has also attained success caused by many other significant factors. Toyota operates a marketing structure that is outstanding and well organized in comparison to its rivals. In some cases, the company is considered a monopoly business because it is a dominant market player in the exportation of motor vehicles (Sohiduzzaman, 2019). Additionally, Toyota’s differentiation technique has made the firm enjoy a nearly monopolistic presence, particularly in developing countries. On the other side, the marketing structure might also be considered an oligopoly because there are other primary players such as General Motors, Hyundai, Volkswagen Group, and others that are peer competitors. However, Toyota company is always keen to watch the performance of the primary competitors to ensure it responds in a manner that will assure market leadership.
Strategic Plan and Focus
The Mission of the Company
The company has a well-established mission statement, goals, and core sustainable competitive advantage. Toyota’s mission statement focuses on creating a more successful society by manufacturing automotive products. Accordingly, the company aims at attaining long-term growth tipped to place it above any other competitor in the sector.
Goals of the Company
The goal of the company is to offer hybrid options for every model sold in the market. Considering this goal, the company aims at selling a total of about one million hybrid vehicles every year. Additionally, Toyota is devoted to environmental management, societal cooperation, and resource utilization, which emphasizes its place in observing corporate social responsibility.
Competitive Advantage of the Company
The company possesses a sustainable competitive advantage by working to achieve a long-term economy and a stable international market. Applying technological advancements, Toyota invests in different techniques that enable it to achieve its goals. Toyota has a well-equipped and developed network of professionals that are continuously carrying out research and development regarding what needs to make the company remain a leader in the global market.
The internal environment of the company makes its quality ranking and productivity efficiency continue being excellent. At Toyota, the manufacturing team has a limitless obsession to enhance the effectiveness and efficiency of the production operations. Thus, to completely gain an insight into the company’s situation analysis, it is essential to look at SWOT analysis to identify the strengths, weaknesses, opportunities, and threats of Toyota. Overall, Toyota company’s strengths and opportunities outweigh the existing challenges and threats, thus giving it a considerable competitive advantage in the industry.
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SWOT Analysis for Toyota
Factors in the Internal Environment
|Company’s management||Toyota has an experienced and competent managerial team, as well as board members.||The broad management team in the company decreases the chances for Toyota to move fast into the target and new markets. The reason is because of the slow rate that the broad team uses to make decisions|
|The products offered by the company||The company focuses on manufacturing hybrid motor vehicles that are friendly to customers.||The hybrid products are expensive when it comes to proofing that the products are right for the existing markets.|
|Marketing strategies||The company distributes its motor vehicles across the market through a broad range of identified franchises.||It is very expensive to establish distribution networks for the company across the world.|
|Employed staff||Toyota ensures hiring of experienced and skilled personnel that could be dependent on upon||The company might experience a big gap if an employee leaves the firm.|
|Company’s finances||The company gains by having better returns from deals made in the international market||Reduced materials and labor might limit the company’s growth concerning its peer competitors.|
|Production||The company obtains its raw materials from reliable suppliers ensuring fast as well as quality production.||There are various supply interests among the suppliers of the company and those of the peer competitors.|
Factors in the External Environment
|Social factors and consumers||The company highly projects the stability of the future market.||Pricing strategies offering low prices for products might show that the commodities are of low quality.|
|Competition||The company has diversified its products as well as prices making the firm to be quite different in the market.||Other competitors are busy introducing products that are of high technology.|
|Technology||The company has adopted the modern technological advancements making the firm to be in a position of improving its products’ quality.||Every peer competitor is focusing on applying the best technological approaches.|
|Economic considerations||The company depends on improved consumer income making it convenient for the firms to penetrate new markets.||Some people are choosing to go for other products because of having an adequate disposable salary|
|Legal considerations||The company considers policy measures to promote fairness across the global markets and to avoid exploitations by various rivals.||Every company has its rules and regulations.|
Analysis of the Industry
Toyota can apply its strengths, as well as opportunities to generate a competitive advantage in the motor vehicle industry. For example, the broadly differentiated products and service lines of the firm assist it to gain a global presence. The company also attains a global presence by entering new markets such as Europe and China. In the past, Toyota had only concentrated on American and Japanese as the targeted market segments. However, with the contemporary changes, the company realized that it needs to focus on penetrating other markets.
Analysis of the Company
Toyota is one of the global leaders in exporting motor vehicles and it appears the company is living to its target expectations. The company targets to be a global leader in manufacturing motor vehicles that are of value. The firm is operating towards transforming society to be a prosperous community with valued motor vehicle products and services. The company believes in offering the best prices for the customers and also supplying vehicles that offer stiff competition to those provided by other primary rivals. For that reason, the company has become very good in the market especially in developing countries.
Analysis of the Customer
Toyota company has very diverse customers ranging from the lowly paid to the upper-class individuals. These customers are widespread across the globe, which gives the company a worldwide outlook in terms of marketing. Toyota company has taken care of motor vehicle needs that might emerge for all customers with their diverse range of cars. The motor vehicles vary from small sports cars to big family vehicles, as well as trucks and vans. The company’s clients are also made up of a varied group of individuals with different geographical locations, incomes, ages, and cultural and social statuses. These customers choose Toyota products and services to satisfy their different needs and wants. People receiving low incomes could obtain basic means of transport that are within their price range. The customers in the upper class and those that need elegance are also provided with motor vehicles of their choice.
Additionally, Toyota consumers buy the company’s products on an individual basis depending on their certain needs. In some instances, the company has organizations that purchase its cars for their clients and workers. In such cases, the buyer of the product is not the one that uses the vehicle. Once individuals buy Toyota’s products, there is more exposure to the company’s other products. The company improves product awareness by advertising its vehicles through website information, newsletters, and other informational sources. The company also has a huge opportunity to generate income from complementary products such as seminars by members and books.
Source of Toyota Products for its Customers
Toyota customers obtain the company’s products from retail distributors positioned across the world. Buying might also be made directly from the manufacturing points as part of the physical product distribution. The company has also adopted an increased use of electronic commerce systems where customers buy products online. Therefore, customers could obtain many of the advertising materials from online platforms by viewing them through the internet. Toyota customers are also allowed to order products in stores using a toll-free telephone number directly from the firm.
Time of Purchasing Toyota Products
Customers could buy the company’s products at any time of the year based on their choices and needs. The reason is that the company sells its motor vehicles all year round, except for the restricted edition that is bought directly from the factory. Additionally, new consumers regularly obtain company cars after getting a driving license in some nations or when going to college or high school in others. Some consumers primarily buy new Toyota cars when the old vehicles are no longer reliable or when the customers feel to trade-in for a newer model.
Company’s Strategic Focus
The company focuses on product differentiation as a primary strategy for penetrating new markets. Toyota is devoted to using pricing techniques that will give it a competitive advantage over its peers. The production cost per unit for the company is projected to be large. However, the firm does not experience the cost issue since it has possible mass production plants. For this reason, Toyota can offer its products at a reduced price yet remain profitable. Therefore, Toyota is taking the advantage of the pricing strategy to enter the markets of the upcoming economies with reasonably priced cars.
Marketing Goals and Objectives
Toyota has an immense capacity and size, giving it an eminent advantage in achieving its growth goals. The number of consumers who are in demand of Toyota products is constantly on the rise. Therefore, the trend creates a bigger market for the company’s products and increased the need for its cars. The perceived significance of owning a vehicle because of increased transportation needs in the contemporary world is also increasing constantly. Accordingly, the company’s great size allows it to successfully achieve the requirements of the increasing population of consumers in need of vehicles. Additionally, the firm keeps manufacturing quality cars and makes it a policy not to give in to the peer competitors’ pressure. The company ensures customer loyalty by making consumers know the real worth of purchasing Toyota’s past, present, and upcoming products.
Each and every product from the company is designed to target a particular market. The criteria the company uses for designing range from external appearances such as shape and color, capacity, and top speed. Consequently, there are top-speed small cars that are two-seater models specifically manufactured for single-use or younger people that are adventurous; the big types are made for huge families. Demographically, the firm also targets conditions on the smooth tarmac roads and rugged or rough terrains.
Toyota’s Position in the Market
The company has been manufacturing motor vehicles and considerable products which are instantly obtainable at cheaper prices. Consequently, the strategy has become a significant factor that makes Toyota have significant competitiveness in the market. Additionally, the firm is projecting to have most of its markets in the new economies in every subsequent year.
Marketing Strategies for Toyota
Toyota is known to be moving with the mass production strategy, enabling it to sell broadly in the international markets. Additionally, Toyota has incorporated the strategy of hybrid cars by doubling the amount of production for the increasing demands in the market. By producing a variety of brands and in large quantities, Toyota company is likely to establish a reputable customer base in the global market.
As an international manufacturer and supplier, Toyota company has positioned itself across the globe, thereby offering it a competitive advantage in the marketplace. The company might achieve and maintain a bigger percentage of the market share in the next few years. Essentially, the company will make the best and become a top distributor of vehicles across the world.
The company produces high-quality products that are purchased at reasonable prices. The reasonable price helps the firm to build its reputation in the market. Additionally, Toyota is using a tactful pricing technique through price differentiation to give the company considerable uniqueness relative to its competitors.
The firm is devoted to applying a pricing strategy that will make it gain a competitive advantage over its peer competitors. In specific, Toyota targets to use promotion strategies to establish prices that make it gain market share and advantage that will help it in achieving the top level. The best strategies to exploit include direct selling, public relations, advertising, personal selling and sales promotion.
Analysis of the Marketing Strategy
The company focuses on penetrating new markets especially those in Europe and China. The company is also keen on considering its competitors such as General Motors and Ford. Hence, Toyota has widely diversified its products to a wider variety to meet the needs of broad customer groups. One important technique is that Toyota has established new factories in the new markets, as well as starting fresh franchises that help the firm in penetrating new markets in an easy way (Sohiduzzaman, 2019). Significantly, Toyota considers human resources as an important aspect of its marketing plan. The company focuses on having highly motivated staff to increase both production and quality. Toyota is equally known to reward its workers by helping them to own subsidized vehicles. The company also employs workers who possess competent technical skills, thus has considerable advantage related to increased innovation and productivity.
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Financial Analysis and Projections
In the contemporary world of efficient technology that supports production, entrance into new markets is highly expected, which is predicted to earn the company more profits over the years. Specifically, Toyota targets to increase its profits in every subsequent quarter to promote its growth into the future. According to Sohiduzzaman (2019), the company showed an anticipated growth since the year 2014. This growth has made Toyota gain a larger market share in comparison to its rivals in the sector.
The company is always working towards manufacturing hybrid products and introducing purchase costs using pricing techniques and product differentiation that favor all customers. In specific, the company targets to manufacture products that meet the demands of every client in the market. According to Sohiduzzaman (2019), Toyota works on identifying customers’ perceptions, as well as comments to assess its performance. If the previously established goals are not achieved, the company realigns with the recent market trends and adjusts new design elements such as external color, size, and components for re-launching at beginning of the upcoming quarter. For instance, the company planned to launch a full model change of Toyota RAV4 at the beginning of 2017 (Sohiduzzaman, 2019). Accordingly, the company works to ensure that every strategy planned is successful to warrant a high competitive advantage in the market.
Evaluation and Control within the Company
The firm employs a monitoring and evaluation team whose mandate is to watch over the progress of the organization in achieving its strategic objectives. Short-term goals are one of the watched things and any issue noticed is corrected before it becomes late. At present, Toyota has made a clear step to ensure the production of hybrid vehicles. Another important feature is that Toyota considers the speed of the roll-out program of introduced pricing strategies. In the meantime, the company has taken the global sector by surprise as many of its manufactured automobiles are known to be consumer-friendly. Toyota has been capable of coming up with a unique plan for manufactured products to help it have a large market share.
Indeed, Toyota is one of the largest motor vehicle companies supplying cars across the world. The report on Toyota’s marketing plan has successfully a brief company background, marketing environment, and analysis, as well as financial analysis. This marketing plan for Toyota could be adopted by any other company with the desire to succeed in the sector’s global market.
Sohiduzzaman, M. (2019). Research on marketing plan (Toyota RAV4). A Research piece on Strategic Marketing Planning. The University of the Sunshine Coast. Web.