It its policies ,market plan can provide an

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It was created by
Toyota founder Sakichi Toyoda, his son Kiichiro Toyoda and Toyota chief
engineer Taiichi Ohno( Laquita Harris,2007).

It deals managing the
waste while manufacturing the products. The waste are been categorized into various
segments according to its nature. This system improves efficiency of the
production hence contribute to company growth.

The various steps to
manage waste are:-

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Ø  No
Surplus production

Ø   Reduce Excess inventory

Ø   Minimize Defects

Ø  Cut
down expensive equipments to simpler machines

Ø  Products
made available at the proper time 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTRODUCTION

Marketing can be both
evolutionary and revolutionary. Market keep growing with rise of demand, which
as we all know is unlimited. Demand single handedly cannot control the market
growth there are various other factors contributing. The tremendous growth of technology
which improved communication, distribution, supply chain, production all
together ends up creating the market we see today. Marketing has evolved since
the past decades the concepts, techniques; tools used are no longer the same as
before. Marketing is no longer just a form to communicate about the product or
to create interest. Marketing is now completely about customers, attaining new
ones and retaining the current ones. It is said that making a new customer is
way more expensive than maintaining the current ones. So now every company
concentrates on creating a long term relationship with the customer. Many a time’s
marketing is mistaken as just advertising, but the fact is advertising is just
a technique for marketing. For success of any company it is not only important
to know how to sell but mostly it should 
 focus more on what to make , so for
this it is necessary to know the customers their needs and wants. Marketing is
all about understanding in depth that customer satisfaction is very very very
very important and marketing gives various ways to channel the activities to
create strong customer relation. So what might be the factors influencing the
strategies of a company in marketing? What might be the tools used by companies
to comprehend their target market? Are they useful? so studying a company’s
marketing environment, its policies ,market plan can provide an insight about
such concepts. In this context to study on these areas Toyota Motor Corporation
has been chosen. A well known legend in the motor industry, which has built its
platform on customer satisfaction thus, a right choice to study on marketing
details. Starting off with company overview to critically analyzed new marketing
mix.

 

 

 

 

 

 

 

 

 

 

COMPANY OVERVIEW

Toyota Motor Corporation
is the automobile leader and a well known, largest company in the world. it is a Japanese company
founded in 1937, Toyota
Motor Corporation engages in the design, manufacture, assembly, and sale of
passenger cars, minivans, commercial vehicles, and related parts and
accessories(Thembani Nkomo,2013). Toyota is well known for its quality
practices, the production system and customer loyalty. Toyota motors was founded
by Kiichiro Toyoda and has it’s headquarter in Aichi, Japan( Osama
Alshehri,2016).with more than 340 
employees all across the globe. 

Vision and philosophy-Toyota
follows certain guiding principle adding on to its image of innovative and
sustainable brand and believes in forces that power sustainable growth and strives
for improvement in the lives of customers and society(Toyoda,2017).President
and representative director Akio Toyoda is optimistic on the future of Toyota
and  he is ready  to face all the challenges. The vehicle list
consists of MPVs/vans, SUVs, commercial vehicles, hybrid vehicles, plug in
hybrid, fuel cell. Toyota keeps in mind that times changes so does the mode of transport,
they innovate products with high level of fun, flexibility and freedom of
travel. Toyota Motor Corporation is a pioneer in the automobile industry with
wide range of products at affordable cost. This company has been successful in
maintaining a consistent customer satisfaction rate.

External Environment
Analysis – Automobile Industry

For any strategy to be fruitful it is
necessary to have a complete knowledge about market scenario and new trends.
Automobile industry with immense opportunities as well as challenges .evolving
from past decades with many ups and downs .this industry depends on the fuel
prices ,per capita disposable income of consumers. This industry has seen a
tremendous growth with a global  sales of
90 million in 2016 and around 92 million in 2017(mike wall ihsmarkit,2017).for
the coming years this industry is found to revolve around the dilemma of digitalization
that is a fusion of automobile and digital world which quite challenging for
the companies. The changing consumer demands which now shows interests in
battery electric vehicles, autonomous & self driving cars, connectivity,
digitalization. so these key trends make it necessary to concentrate on both
technological& emerging connectivity and digitalization obsession of  the society. Customer expectation has always
been high for this industry which demands for different unique selling
proposition compared to other  industries
(                    )

There is a rich history of providing improved
products which acts as the backbone of the industry success .political and
economic instabilities are the other factors with are influential to growth and
survival .According to global automotive survey 2017 was a year of political
hell with free trade agreement changes, emission regulations, more import
restrictions that can have a major impact. Different parts of world pose
different challenges like production requirement in western Europe, innovation
in china, political changes in middle east which in turn create the demand for
new strategies. Export rate touched more than 3, 00,000 units in 2016 and it
increased by 8.8% in 2017 where around 3,29000 units were exported (ETAuto,
2017)..In such an evolving and challenging industry, Toyota group always
manages to be in successful podium for past years and there is a consistent
effort and innovation from the group to maintain it.

Major
companies in the industry

Toyota, Volkswagen, BMW, Honda group.

Internal Environment
Analysis-Toyota Group

The past statistics have shown how Toyota
group maintain its strong brand image with increased customer loyalty, revenue
and sales. Toyota held a valued  position
among the consumers in 2016 with reported revenue of around 28 million. This
success is entirely due to the skilled manufacturing system, healthy supplier
relationship, strong organizational structure, and efficient supply chain and
distribution system.

Resource
based view –Toyota
has a efficient manufacturing system which is well admired for its material and
inventory system .it’s well flourished value chain, relationship with suppliers
ensure that the inventory reaches the plant at proper time .Toyota makes more
profit than its competitors because of its strong linkage with suppliers.

 

 

MARKET POSITIONING

Toyota positions itself as cost effective brand
in the minds of consumers with innovative product development feature. Toyota
has something to cater every type of customer. Toyota is known for its
differentiation strategy with proper marketing and advertising back up .Toyota
comes with perfect taglines for each of its products  like Toyota GT86 with “grab the steering and
feel the excitement”, Toyota avanza with “smart in style’. Toyota is well recognized
for its supreme design and quality. Due to several competitive advantages
gained through features like hybrid vehicles Toyota have been successful in
creating strong brand.

Toyota is being positioned as a reliable
brand with impressive performance. it is called a reliable brand because
everyone can expect at least one product at their affordable level. Toyota
understands that fact that not everyone are blessed with a high disposable income,
so being a customer conscious brand Toyota make use of this fact and
manufactures variety of products that that can be in the list each automobile
love irrespective of being rich or middleclass. So this makes it possible that
every consumer can not only dream but can buy a Toyota car in real.

In this way Toyota owns a wide range of
products in the industry positioning it has a reliable affordable, supreme
quality brand and most importantly it never committed the mistake of over
positioning like many other automobile brands.

Target
market- Toyota targets
upper middle class and high income groups. Family size is a high priority while
designing products for middleclass. Sporty cars are designed for youngsters and
high income groups.

As Toyota focus on the consumer satisfaction
and buying traits it could said there is focus to demographic and psychographic
segmentation. Demographic traits being family size, age, income is taken for
mainly upper middle class. People with same demographic traits may have
different psychographic traits like lifestyle, tastes preferences etc which can
be influential for high income groups.

 

 

USP OF TOYOTA GROUP

The unique selling proposition revolves
around its high quality product with sustainable brand image which is
attributed by the lean manufacturing
system .this has given a competitive advantage and a market leadership.

Core
competence

these are set of characteristics that a
company should focus while creating products which makes it unique and hard to
copy by other organization thus adding to the competitive advantage (prahlad,
hamel, 1990).Toyota’s core competence lies in its ability to produce innovative
products according to need and trend of the market .one such example is TOYOTA
PRIUS a electric and hybrid car giving a tough competition to the rivals
including BMW. This fast fuel saving car with hybrid is a best-selling unique
product which is now being copied by the competitors.

Other than the TPS Toyota believes in the
benefits of moving forward due to which Toyota comes up with novel products,
keeping up with the advances in technology. customer service is another well
remarked policy increasing customer loyalty.

 

 

 

 

MARKETING AUDIT

The marketing audit is a systematic and
periodic examination of company’s, environment, objectives, strategies and
activities to determine the problem areas and opportunities. It should start
with the strategic imperatives, policies and elements of strategies (Philip kotler,
1999). The marketing audit of Toyota is going to open up the marketing environment,
marketing strategies, action plans are the soul part of this company. Before implementing
any strategies it is necessary to understand the strengths, weakness, threats and
opportunities of the corporation

 

 

 

Ø  Cut
down unwanted transport

These
steps in Toyota production system (TPS) helped to improve the sales, being
sustainable.

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