Toyota
1- Introduction:
Toyota Motor Corp. is the biggest car manufacturer in Japan and one of the biggest corporations
globally. founded in 1933 as a branch of Toyoda Automatic Loom Works, Ltd. and became
Toyota Motor Co., Ltd. upon incorporation in 1937. Later, Toyota founded other associated
businesses, such as Toyota Auto Body, Ltd. (1945) and Toyoda Machine Works, Ltd. (1941). The
business grew quickly in the 1960s and 1970s, shipping a significant quantity of cars to outside
markets. In 1982, after a number of its business segments were consolidated, the corporation
changed its name to Toyota Motor Corp. Brands include Toyota and Lexus.
The reason behind choosing Toyota for this research is mainly due to the fact that Toyota is
known for its in-depth Marketing analysis and research. Toyota has maintained the number one
spot in the automotive market for a very long time and that is due to their very effective
production line and Marketing strategies. At Toyota North America, a marketing position is
expected to make $116,271 annually as a total compensation. This shows how much Toyota is
willing to pay in order to maintain a competitive advantage over the other companies. Toyota
understands that marketing is the key factor to sustain that competitive edge.
From drivers in their early 20s to boomers. Drivers of all age groups make up Toyota's target
market. The target market for Toyota is global in scope. Toyota enjoys great popularity in its
native Japan, but the majority of its customers are in North America.
Dealerships are the primary locations where Toyota products are distributed. There are few
distribution channels available to a major player in the auto industry like Toyota. The dealerships
or the retailers are what the company depends on. The majority of sales transactions of Toyotas
Products ranging from the cars to the accessories take place at dealerships. The secret to Toyota's
success lies in how well the distribution channel is handled in co-occurrence with marketing
channels.
As reported by Nikkei Asia Toyota’s future plans are exciting. Toyota Motor intends to triple its
target for producing electric vehicles by 2025, 600,000 units is the goal. As it gets ready to
implement its electrification plans, Toyota has set a production goal of 190,000 battery-powered
vehicles for 2024.
2- Marketing strategy analysis
A mission is mainly the core goal or purpose of an organization or a company. “To make ever-
better cars, to build a future where everyone has the freedom to move”. Is Toyota’s mission
statement. The main elements of Toyota’s corporate mission statement include Creating ever-
better cars, making the future more inclusive and for everyone to have unrestricted mobility
(freedom to move).
What Toyota hopes to become in the future is covered in great detail in its vision statement. For
instance, the company says it wants to be a pioneer in the field of mobility in the future. Toyota's
corporate vision includes details about the company's principles, its desired organizational
structure, and its capacity to make a positive impact on society worldwide.
The four essential components of a marketing strategy are product, promotion, place, and price.
These are adverted to as the marketing mix, or the four Ps of marketing. A company can increase
the probability that a product will be recognized and purchased by customers basically by
focusing on the four marketing elements.
Toyota’s Product Mix:
This marketing mix component identifies organizational outputs for the target audience, in this
case, for drivers or car buyers. The product lines and families are made to meet the demands and
preferences of consumers in terms of transportation solutions. Automobiles, spare parts and
engines are the main components of Toyota’s production mix.
Toyota’s Prices and Pricing strategies:
The product line, product type, and car model all affect the company's pricing. This part of the
marketing mix describes how the company determines the cost of its goods. Toyota basically
uses a mix of the upcoming pricing techniques which include Premium pricing and Market-
oriented pricing strategies.
Distribution/Place in Toyota’s marketing mix:
The main locations for Toyota’s product distribution are dealerships. This part of the marketing
mix establishes the locations in which customers are eligible to buy the company's goods or
products. The key locations in Toyota's distribution strategy are Retailers and dealerships.
Toyota’s promotional mix:
The marketing communication tactics are all part of Toyota’s promotion strategy. The way the
business corresponds to with the target market is covered by this 4P element. The following
promotional activities are used by Toyota to ensure a promotional mix that will help sustain the
company’s success and growth. Personal selling, Advertising, public relations, direct selling
and sales promotion.
Toyota’s PESTEL Analysis:
A marketing technique that many businesses use to evaluate the environment in which they
operate in is called a PESTEL analysis. When a company introduces a new project or product the
management’s focus is evaluating and figuring out the project's future using a PESTEL. PESTEL
mainly stands for the Political, Economic, Technological, Environmental, and Legal elements.
3- Target audience and buying behavior
Toyota a leader in its market obliges it to have a broad and distinct target market that involves
individuals from various socioeconomic backgrounds, geographic locations, and demographics.
Toyota serves a wide spectrum of customers that want dependable, high-quality, reasonably
priced cars.
Demographically, Toyota's target market involves both men and women of all ages, with a focus
on young adults between the ages of 18 and 35. This group is mainly drawn to Toyota because of
its innovative style and advanced technology. Toyota also tries to focus on customers that are
environmentally conscious.
Geographically, Toyota focuses on two different markets which include developed markets and
emerging markets. For the developed markets which basically include North America, Europe
and Japan in which Toyota cater comfortable cars that include high end luxurious ones. As for
the emerging markets like India, Toyota caters cars that are practical and reasonably priced.
As market leaders Toyota is always obliged to satisfy customers to the highest standard as they
are supposed to. As for Toyota they are doing a very good job in that leading to happy consumers
after a purchase. In that case the buying behavior of consumers buying the products of Toyota is
positive.
4- Market and customer focus
Market type:
Toyota's Market Structure is widely considered to have an oligopolistic market structure.
Oligopoly is a type of imperfectly competitive market in which a few large sellers control a large
portion of the industry
An oligopoly is a market structure composed of a small number of firms that have significant
influence over a specific industry or market. While the group has significant market power, no
single company has enough clout to undermine or steal market share from the others.
Companies increase their profits while producing fewer goods by raising the price. Collusive
oligopolies, on the other hand, are risky because the most efficient firms will break ranks by
lowering their prices. These companies violate the agreement primarily to increase their market
share.
