Marketing Management – Toyota

Toyota Motors Marketing Plan for crisscross Vehicles by geographic location (atomic number 63) 1. 0 Executive drumhead The Toyota Motor Company hold opens to pass on to be the orbicular merchandise leader in the automobile manufacturing industry. over the years, Toyota has managed to re chief(prenominal) the leader of this industry by its circumspection structure, fuel good vehicle design and competitive pricing based on global merchandise knowledge. Toyota has realized that environmentally conscious products were posited to ensure proceed social club (and gross gross sales) growth in the proximo.Toyota has been actively reducing its carbon mark since 1998. Annually, Toyota has been publishing its Environmental and Social Sustainability address in order to conjure disclosure of information regarding environmental actions carried out in conjunction with its bodily activities. Through more court-effective and spic-and-span toil lines it has bring lowd its e nvironmental impact. Toyota besides seeks to be the commercialise leader for so called clean (or green) vehicles much(prenominal) as Electric Vehicles, crisscrossizing Vehicles and Plug-In mark Vehicles.This marketing plan bequeath discuss Toyotas strategy with regards to green vehicles, with event reference to ane geographical location, europium. This Marketing plan allow drive a closer human face at how the europiuman Branch operates within Toyotas global structure and how it reflects Toyotas overall vision of a cleaner, more sustainable incoming. 1. 1 quite a little Toyota realizes that its future lies in the production of environmentally conscious cars. Toyotas vision of a cleaner future revolves around two main points. Firstly, the production of vehicles that have a miniatureer impact on the environment.A colossal with cleaner versions of its gasoline powered cars, Toyota believes that the companys victor in the present and future lies in its line of Electri c, crossbreed and Plug-In Hybrid Vehicles. Through this line of vehicles Toyota volition be actively reducing environmental impact by producing cleaner cars for consumers to use. Secondly, Toyota believes that to achieve its goals towards a cleaner future, it mustiness continuously strive to make its production lines even cleaner. In fact, since 2002 Toyota has managed to reduce the energy utilize or the production of vehicles by 40%, violent products by 50% and water consumption by 70% (Toyota Motors Europe Sustainability Report 2011). Both of the above points fall under a global philosophy called The Toyota commission. As analysed by Liker (Liker J. , 2004) this holistic philosophy maintains 14 key principles which Toyota has ad chooseed to give its customers what they want, when they want it, in the most expeditious way possible whilst leaving the smallest possible carbon footprint. Toyota also believes that incessant growth can be achieved by exceeding its customers exp ectations.In fact the Toyota orbiculate website(2012) states our attitude is to anticipate and deliver to the needs of those we serve 1. 2 Objectives Toyotas main objectives argon stated clearly in its Sustainability Report (2011). The said report outlines a global vision, to be attained by the year 2020. Toyotas modern Global Vision 2020 comprises of three main pillars * Lead the way to the future of mobility, which is our core business. * Commit to quality, innovation, environmental protection and by doing so, make cars that mass love. Engage our great deals energy and passion to Always Find a remediate Way (Toyota Motors Europe Sustainability Report 2011) 2. 0 Current Market Summary Traditionally, Toyotas primarily focused on the US and Japanese markets. The European market is a fairly new addition to Toyotas Sales portfolio. Although the European market for cars has seen a steady decline in recent years, Toyota currently holds a 4. 2% sh ar of the total car market. In 2011 total sales in Europe amounted to 822,386, 10% of which were Hybrid vehicles. 2. 1 Market NeedsThrough guest Relationship Management and market research, Toyota has established a new placed of characteristics its vehicles need to satisfy in order to reach the Global Vision 2020. Toyota has de nameined its cars need to be * Of high quality and reliability therefrom requiring infrequent maintenance. * Widely ease upable, including increased affordability of Hybrid and Plug-in Hybrid vehicles. * Silent in a world which is progressively aware of noise pollution. * Easy to use, with particular reference to simplified user interfacing on new Hybrid and Plug-in Hybrid vehicles * Clean. compensate if in a traditional gasoline engine model emissions need to be kept to an absolute minimum. Whilst identifying the need for cleaner cars, Toyota has also launched the Plug-in Hybrid Electric Vehicle (PHEV) demo project in 18 European countries. This project involves a limited production line of 200 PHEV vehicles which are being road tested by customers in 18 European countries till 2013. So far the project has already increased knowingness of PHEV cars and provided crucial data with regards to technical performance and customer satisfaction.This data will be used in the near future to launch a monolithic racing shell PHEV production line. Toyota realises the importance of its customers time. The increasing use of the internet, especially in the early stages of a purchase, has made the companys website an important asset. thusly an updated website will all models, colours, specifications and options is of vital importance. 2. 2 Market Growth Despite the afore mentioned spue in car sales in Europe, Toyota has managed to sustain a imperative growth within this market. Toyota aims to increase its European market share from 4. % to 4. 5% ( 835,000 vehicles sold) in 2012. In 2011 its Hybrid sales amounted to 10% of the total sales figure. Toyota seeks to increase this to 14% in 2012 and up to as much as 20% in 2013/14 (Reuters 5th March 2012). To do so, Toyota has re-designed most of its more popular models (Yaris and Auris) and has offered them in both traditional gasoline engines and Hybrid configuration. To besides maximise growth in the Hybrid and Plug-In sector, many of Toyotas European distributors have started offering very advantageous finance schemes on these models.This mover that a customer no longer needs to go through the bank to purchase a new car. 2. 3 Market Segmentations Toyotas European Market is vastly diverse and requires heavy divideation. Each market piece requires separate market research, a separate marketing strategy and a separate product offering all together. When segmenting the European market one has to take the following considerations * Age of the target consumer * Social Standing * concern and thus purchasing power * Educational background * Other heathenish and socio-economic factorsFor the purposes of this plan we shall conduct a socio-demographic segmentation. Market segments may include * preadolescent ,tr stamp outy people who opt for small, inexpensive, moth-eaten to run vehicles. this segment is also very environmentally conscious. * Young adults with higher spending power who opt for small saloon, small SUVs/mini-vans and 44 vehicles. This segment is also very environmentally conscious but less so than the young trendy people * Middle aged adults who are better off and can afford higher end vehicles such as large saloons and high end 44 vehicles.This segment is less environmentally conscious and whence less likely to invest in a Hybrid or PHEW vehicle unless these run short trendy to own. * Mature adults who are about to pull in ones horns or have retired from work. This segment looking for comfort and practicality while soothe maintaining style. Depending on their occupation and ability to save(throughout their career), their spending power will vary. This segment is th e least environmentally conscious. Other market segments include small, medium and large business organisations for which Toyota has developed a range of trucks and vans of various sizes and payload capacity. . 4 SWOT Analysis Strengths * Toyota has firmly placed itself as one of the preeminent car manufacturers in the world and is also steadily gaining ground in Europe. Toyotas re baffleation for quality and reliability has help to breach and gain a foothold in the European automobile market. * Toyota is on the mind of neat edge technology and is the leading manufacturer for Hybrid vehicles in Europe and aims to further increase sales of Hybrids and PHEV in the next 2 years. * The Toyota Way of management continues to advocate efficiency in the production, distribution and sales of Toyota vehicles.Toyotas continues tote towards efficiency has led to a reduction in cost of production/distribution/sales * Toyotas Sustainability Report informs partners, distributors, employees and customers of the companys commitment to a cleaner future. This further reinforces Toyotas Corporate Social Responsibility in the minds of all third parties. * The company has a highly skilled men * Wide distribution engagement through clearly marked Toyota stores and other authorised distributors allowing potential customers unprovoked access to the companys vehicles Weaknesses * Toyotas size as an organisation is in itself a failing.The scale of the company presents several(predicate) sets of challenges. The decision reservation process may be slower than in other organisations out-of-pocket to the sheer size of the management structure. * A wide distribution network requires a large workforce dedicated to logistics and distribution which can be quite expensive. * A weakness can also be identified in the supply chemical chain for hybrid vehicles in Europe. Even though hybrid Yaris and Auris models are produced in Britain (and as of April 2012, also in France) almost all of the separate used to make these vehicles have to be imported.This will increase the overall cost per unit, thus reducing competitiveness. (Reuters 5th March 2012) * Toyota owns and runs 8 manufacturing plants, 14 separate centres and 9 vehicle logistic centres in Europe. These plants and centres have high wintry cost. With an expected 5% decrease in the demand for cars in Europe, these plants resolute cost may become a long term preventive on Toyota Europe and may decrease profitability. Opportunities * Being on the forefront of hybrid and PHEV technology, Toyota is an ideal position to strengthen its hold on this market segment and increase overall sales in Europe.In fact sales targets for 2013/14 for hybrid vehicles are initially set at 14% and 20% at a later stage. Various governments are terrific lower licensing fees on hybrid vehicles thus providing the perfect incentive for consumers to opt for a Toyota hybrid model * Soaring fuel prices are cause consumers to look for a lternative modes of transport. Toyotas hybrid and PHEV vehicles are very fuel efficient thus providing Toyota with the perfect opportunity to increase its market share. * Toyota plans to start manufacturing parts for hybrid and PHEV in Europe once sales reach 150,000 hybrid vehicles per year.At present, these parts are imported from Asia and the US. The production of parts in Europe would bring significant savings in transport and logistical costs which would bring a lower cost per unit and in term allow Toyota to be even more competitive with its prices. This would also put Toyota in a position to offer maintenance services to its customers at a lower price. Threats * In recent years Toyota has had to recall millions of vehicles ascribable to defective brakes, suspensions and accelerator units. Recalls have cost Toyota millions of dollars in the past and they continue to be a costly problem in the present and foreseeable future.Recalls can also have a negative effect on brand equi ty and effect sales growth in the long term. * New brands could increase competition and erode Toyotas sales. New entrants from Korea, China and India are providing various market offerings, at different levels of quality and at increasingly competitive prices. * Soaring fuel prices and raw material prices could have a negative impact on costs of production and distribution therefore further reducing profitability. * Economic factors such as the global deferral in the last 3/4 years and the lack of consumer say-so in banking institutions will have a negative effect on sales.In recent years, unemployment rates have risen in Europe making selling expensive commodities, such as cars, even harder. 2. 5 contestation The Automobile industry is in itself a fiercely competitive industry. Even more so in the European market place due to the numerous European car manufacturers. Toyota faces stiff competition from most European car makers as they market and sell the bulk of their products i n Europe. Therefore when it comes to purchasing a car, the European consumer has many more product offerings to chose from. closely of the European car makers have developed entire fleets of cars to outfite different budgets, demographics and astes. In Europe, specifications such as miles per gallon, design features and retail price, have become battle grounds for car manufacturers. Toyota also faces a socio-cultural challenge European car manufacturers take pride in the fact that their cars are designed and built in Europe for Europeans. This, in a way, can splay to be an advantage for brands such as BMW, Mercedes-Benz and Volkswagen. These brands can give the knowledge of being able to understand the European consumers needs better than their Asiatic and American counterparts. Toyota also faces stiff competition from other Asian manufacturers such as Kia, Hyundai and Honda.These manufacturers have also realised the importance of maximising fuel efficiency (with particular emp hasis to small urban/city cars). Asia manufacturers have also been able to compete when it comes to retail price. Labour is relatively cheap in certain parts of Asia, thus allowing Asian manufacturers to keep costs of production low and passing on the savings to its customers. Competition has also risen due to new entrants into the European market. American giant full general Motors launched Chevrolet Europe in 2005. Chevrolet have redesigned product offerings and created new product offerings to suit the European market.