It was created byToyota founder Sakichi Toyoda, his son Kiichiro Toyoda and Toyota chiefengineer Taiichi Ohno( Laquita Harris,2007).It deals managing thewaste while manufacturing the products. The waste are been categorized into varioussegments according to its nature. This system improves efficiency of theproduction hence contribute to company growth.
The various steps tomanage waste are:-Ø NoSurplus productionØ Reduce Excess inventoryØ Minimize DefectsØ Cutdown expensive equipments to simpler machinesØ Productsmade available at the proper time INTRODUCTIONMarketing can be bothevolutionary and revolutionary. Market keep growing with rise of demand, whichas we all know is unlimited. Demand single handedly cannot control the marketgrowth there are various other factors contributing. The tremendous growth of technologywhich improved communication, distribution, supply chain, production alltogether ends up creating the market we see today. Marketing has evolved sincethe past decades the concepts, techniques; tools used are no longer the same asbefore. Marketing is no longer just a form to communicate about the product orto create interest. Marketing is now completely about customers, attaining newones and retaining the current ones. It is said that making a new customer isway more expensive than maintaining the current ones.
So now every companyconcentrates on creating a long term relationship with the customer. Many a time’smarketing is mistaken as just advertising, but the fact is advertising is justa technique for marketing. For success of any company it is not only importantto know how to sell but mostly it should focus more on what to make , so forthis it is necessary to know the customers their needs and wants. Marketing isall about understanding in depth that customer satisfaction is very very veryvery important and marketing gives various ways to channel the activities tocreate strong customer relation. So what might be the factors influencing thestrategies of a company in marketing? What might be the tools used by companiesto comprehend their target market? Are they useful? so studying a company’smarketing environment, its policies ,market plan can provide an insight aboutsuch concepts. In this context to study on these areas Toyota Motor Corporationhas been chosen. A well known legend in the motor industry, which has built itsplatform on customer satisfaction thus, a right choice to study on marketingdetails.
Starting off with company overview to critically analyzed new marketingmix. COMPANY OVERVIEWToyota Motor Corporationis the automobile leader and a well known, largest company in the world. it is a Japanese companyfounded in 1937, ToyotaMotor Corporation engages in the design, manufacture, assembly, and sale ofpassenger cars, minivans, commercial vehicles, and related parts andaccessories(Thembani Nkomo,2013). Toyota is well known for its qualitypractices, the production system and customer loyalty. Toyota motors was foundedby Kiichiro Toyoda and has it’s headquarter in Aichi, Japan( OsamaAlshehri,2016).with more than 340 employees all across the globe. Vision and philosophy-Toyotafollows certain guiding principle adding on to its image of innovative andsustainable brand and believes in forces that power sustainable growth and strivesfor improvement in the lives of customers and society(Toyoda,2017).Presidentand representative director Akio Toyoda is optimistic on the future of Toyotaand he is ready to face all the challenges.
The vehicle listconsists of MPVs/vans, SUVs, commercial vehicles, hybrid vehicles, plug inhybrid, 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 oftravel. Toyota Motor Corporation is a pioneer in the automobile industry withwide range of products at affordable cost. This company has been successful inmaintaining a consistent customer satisfaction rate.External EnvironmentAnalysis – Automobile IndustryFor any strategy to be fruitful it isnecessary to have a complete knowledge about market scenario and new trends.Automobile industry with immense opportunities as well as challenges .evolvingfrom past decades with many ups and downs .
this industry depends on the fuelprices ,per capita disposable income of consumers. This industry has seen atremendous growth with a global sales of90 million in 2016 and around 92 million in 2017(mike wall ihsmarkit,2017).forthe coming years this industry is found to revolve around the dilemma of digitalizationthat is a fusion of automobile and digital world which quite challenging forthe companies. The changing consumer demands which now shows interests inbattery electric vehicles, autonomous & self driving cars, connectivity,digitalization.
so these key trends make it necessary to concentrate on bothtechnological& emerging connectivity and digitalization obsession of the society. Customer expectation has alwaysbeen high for this industry which demands for different unique sellingproposition compared to other industries( )There is a rich history of providing improvedproducts which acts as the backbone of the industry success .political andeconomic instabilities are the other factors with are influential to growth andsurvival .According to global automotive survey 2017 was a year of politicalhell with free trade agreement changes, emission regulations, more importrestrictions that can have a major impact.
Different parts of world posedifferent challenges like production requirement in western Europe, innovationin china, political changes in middle east which in turn create the demand fornew strategies. Export rate touched more than 3, 00,000 units in 2016 and itincreased by 8.8% in 2017 where around 3,29000 units were exported (ETAuto,2017)..
In such an evolving and challenging industry, Toyota group alwaysmanages to be in successful podium for past years and there is a consistenteffort and innovation from the group to maintain it.Majorcompanies in the industryToyota, Volkswagen, BMW, Honda group.Internal EnvironmentAnalysis-Toyota GroupThe past statistics have shown how Toyotagroup maintain its strong brand image with increased customer loyalty, revenueand sales. Toyota held a valued positionamong the consumers in 2016 with reported revenue of around 28 million. Thissuccess is entirely due to the skilled manufacturing system, healthy supplierrelationship, strong organizational structure, and efficient supply chain anddistribution system.Resourcebased view –Toyotahas a efficient manufacturing system which is well admired for its material andinventory system .it’s well flourished value chain, relationship with suppliersensure that the inventory reaches the plant at proper time .Toyota makes moreprofit than its competitors because of its strong linkage with suppliers.
MARKET POSITIONINGToyota positions itself as cost effective brandin the minds of consumers with innovative product development feature. Toyotahas something to cater every type of customer. Toyota is known for itsdifferentiation strategy with proper marketing and advertising back up .Toyotacomes with perfect taglines for each of its products like Toyota GT86 with “grab the steering andfeel the excitement”, Toyota avanza with “smart in style’. Toyota is well recognizedfor its supreme design and quality.
Due to several competitive advantagesgained through features like hybrid vehicles Toyota have been successful increating strong brand.Toyota is being positioned as a reliablebrand with impressive performance. it is called a reliable brand becauseeveryone can expect at least one product at their affordable level. Toyotaunderstands that fact that not everyone are blessed with a high disposable income,so being a customer conscious brand Toyota make use of this fact andmanufactures variety of products that that can be in the list each automobilelove irrespective of being rich or middleclass.
So this makes it possible thatevery consumer can not only dream but can buy a Toyota car in real. In this way Toyota owns a wide range ofproducts in the industry positioning it has a reliable affordable, supremequality brand and most importantly it never committed the mistake of overpositioning like many other automobile brands. Targetmarket- Toyota targetsupper middle class and high income groups. Family size is a high priority whiledesigning products for middleclass. Sporty cars are designed for youngsters andhigh income groups.As Toyota focus on the consumer satisfactionand buying traits it could said there is focus to demographic and psychographicsegmentation.
Demographic traits being family size, age, income is taken formainly upper middle class. People with same demographic traits may havedifferent psychographic traits like lifestyle, tastes preferences etc which canbe influential for high income groups. USP OF TOYOTA GROUPThe unique selling proposition revolvesaround its high quality product with sustainable brand image which isattributed by the lean manufacturingsystem .this has given a competitive advantage and a market leadership.Corecompetencethese are set of characteristics that acompany should focus while creating products which makes it unique and hard tocopy by other organization thus adding to the competitive advantage (prahlad,hamel, 1990).
Toyota’s core competence lies in its ability to produce innovativeproducts according to need and trend of the market .one such example is TOYOTAPRIUS a electric and hybrid car giving a tough competition to the rivalsincluding BMW. This fast fuel saving car with hybrid is a best-selling uniqueproduct which is now being copied by the competitors.Other than the TPS Toyota believes in thebenefits of moving forward due to which Toyota comes up with novel products,keeping up with the advances in technology. customer service is another wellremarked policy increasing customer loyalty. MARKETING AUDITThe marketing audit is a systematic andperiodic examination of company’s, environment, objectives, strategies andactivities to determine the problem areas and opportunities.
It should startwith 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 implementingany strategies it is necessary to understand the strengths, weakness, threats andopportunities of the corporation Ø Cutdown unwanted transportThesesteps in Toyota production system (TPS) helped to improve the sales, beingsustainable.