Introduction
Toyota is a focus to be reckoned with in the global automotive industry. The recent decades have seen the Japan-based company succeed not only in the local Japanese market but the global market as well. Through effective business planning, strategies, and positioning the company has claimed a niche in automotive manufacturing and distribution. The great success is, therefore, the fruits of effective marketing plan and strategies. Toyota’s well-planned marketing framework encompasses various elements of monopoly as well as oligopoly features. Through the years, Toyota has endeavored to better their brand by dependably improving the quality of its products and services. These strategies are evident through the company’s efforts to surpass it global competitors such as General Motors. The introduction of hybrid cars such as Prius is plausible indications of innovation at the company.
In his article, Rick Newman attributed Toyota’s success to five distinct pillars; longevity aspect of planning, speed, innovation, waste management, and humility (Newman, 2008). Additionally, there are numerous other notable elements that have made the organization successful and attain a global competitive advantage. Be that as it may, the business sector structure the organization works in cannot be succinctly defined. Some may consider it to be a monopolistic model given the domineering nature of the company in the automotive industry. Indeed, its differential system has made it appreciate a practically monopolistic nearness, particularly in the developing world. The underlying business sector structure can also be seen as an oligopoly with the presence of other key global players such as General Motors. Toyota is quick to see what these contenders are doing and ensure it responds to their activities in a way that will promise its business sector authority and competitive advantage.
Origin Story
Toyota was founded in 1933 as part of Toyoda Automatic LoomWorks as an initiative of Kiichiro Toyoda, who was the son of the founder. Kiichiro’s initiative was as a result of extensive research that he had carried out through Europe and the U.S. His research was mainly focused on gasoline-powered engines. Following the war with China, the Japanese government additionally urged the parent company to increase automobile vehicle. Successively, Toyota produces its primary type A engine in 1934. In 1937, Toyota Motor Co. Ltd. (TMC) was established as an isolated organization from the parent company. Amidst initial business hurdles, the company emanated on a plan to reach out to the world, spreading its operations. In the early 1970s, Toyota started manufacturing small size automobiles, making it renowned in the US and parts of Europe due to its pricing strategies. In 2009, Toyota recorded revenues of approximately $200 million, becoming the top global auto manufacturer. Headquartered in Toyota City Japan, the company prides itself in employing a workforce of approximately 320,000 employees and operating in over 160 countries across the world. Today, the global automobile giant is involved but not limited to the design, assembly, and sale of passenger cars, trucks, recreational, and accessories. It is also offers financing services to dealers who buy their products, adding up to its comprehensive business framework. Remarkably, the company was ranked eighth in Fortune 500 2007 organizations. In a bid to maintain this global image that it has created over the past years, Toyota is focused on the rule of equal opportunities by giving reasonable and impartial treatment to all people and candidates. Toyota tries to comply with the goal and additionally the letter of fitting enactment in these matters with its administration group being focused on the advancement and adherence to the equal opportunities policy.
Analysis
Marketing Plan and Strategies
According to Grewal & Levy (2013), Marketing, marketing plan, and development of marketing strategies encompasses a comprehensive, sequential process. A strategic marketing plan, therefore, includes three phases namely; planning, implementation, and control (Cooper, 2000). First, the planning phase should involve mission definition and situation analysis. Second, the implementation phase includes opportunities identification and evaluation and the implementation of marketing mix and resources. Third is the control phase that seeks to evaluate performance. Through its mission statement, it is evident that Toyota dependably tries to make a more prosperous society through automotive production (Toyota, 2016).
Mission Statement
Toyota strives to make the world a better place and propel the society through automobile production (Toyota, 2016). Subsequently, the company relentlessly endeavors to accomplish a steady long haul development in future. These efforts are influenced key variables the Toyota upholds; the environment, global economy, and all the stakeholders.
Company Objectives
The company dependably offers hybrid alternatives for all models available in the automobile market, setting a target of one million hybrid vehicles every year. Toyota is also conscious of the global climatic and energy changes, efforts that are mirrored in its manufacturing and distribution processes. The company also hold the fuel economy in high regard as well as reduction of carbon II oxide emissions.
Toyota is Competitive Advantage.
Toyota is working towards the accomplishment of a superior and more feasible economy by having a stable worldwide business sector with innovation at the heart of the company. The company is putting resources into different procedures that will empower it to meet its underlying objectives. The Company has also invested in research and development into innovative work over angles that will facilitate the administrative conveyance to its worldwide business sector. Additionally, Toyota has an extensive distribution framework. In this manner, the Company has been able to accomplish steady success over the past decades and will probably continue to do so in the future, hence a steady long haul growth pattern.
Market Planning and Segmentation.
Toyota’s target marketing and segmentation are based on the logic it accepts and that seeks to put the right automobile in the respective place as opposed to a ;one size fits all; approach (Dudovskiy, 2016). In so doing, the company has managed to employ demographic segmentation as well as psychographic segmentation, to focus on these business segments. For instance, Toyota has portioned every one of the nations across the world. While doing this, it has additionally recognized its engaged markets, such as the US, Canada, China, Indonesia, and so forth. Notwithstanding, US is one of the main markets where the company has up to 30% of its aggregate customers. Here, it has focused on its business sectors, from economy class to lower class.
The company manufactures luxurious vehicles such as the Lexus. Prius, another Toyota;s model, targets the ecologically conscious consumers. Indeed, the marketing plan, strategies and outcome all depend on its consumer considerations and the company;s ability to identify and satisfy consumer needs. Toyota;s ability to detect and meet these requirements is evident in its assortment of products and services for different global markets (Johannes, Bill, ; Plenert, 2000). In the primary fragment of demographic market segmentation, Toyota has focused on the family measure and in this section individuals of upper middle, the high-income gathering is kept in perspective. Land Cruiser and Prado are some of the key vehicles of this section.
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Toyota has also focused on the family estimate where individuals of the high class, with a sporty state of mind, are considered through manufacturing of cars like the Toyota Altis and Fortuner. In its market planning, Toyota has also incorporated environmental sensitivity, safety, and lower operation costs aspects. The company;s stand on safety is plausible given its extensive investment in safety measures in the manufacturing processes. In light of global concerns to protect the environment, Toyota has also endeavored to manufacture hybrid vehicles like the Prius.
