Marketing Plan of Toyota

1. Executive Summary Toyota Motor Corporation Australia (Toyota, Australia) which deals with a wide range of car segments has manufactured the Prius Car in the automotive industry which is one of the best hybrid synergy drive in today business environment. And provide a competitive advantage to other business by achieving and environmental friendly car and providing the best efficient fuel system. The report begins with the introduction of the company where brief background information on the company and discussion of the market in which the Toyota Company operates is explained.
A current Situation Analysis is conducted which gives a better understanding of Toyota, its different products, competitors and different environments in which it operates. After considering the internal and external environment a SWOT Analysis is conducted which tells us the strengths, weakness, opportunities and threats of the business environment. On the basis of these factors the critical issues are identified and marketing objectives and strategies have been defined. Towards the end a recommendation of change and implementation plan has been developed to improve the product.
The report contains different graphs which show the current position of the company and the performance of the product in the current market. 2. Table of Contents 1. Executive Summary2 2. Table of Contents3 3. Introduction4 4. Mission Statement5 5. Situation Analysis6 a. Internal Environment6 i. Products6 ii. Financial and non-financial situation6 iii. Channels8 b. External Environment9 i. Markets9 ii. Competitive environment9 iii. Economic environment9 iv. Demographic environment10 v. Social and Cultural environment11 vi. Political and legal environment11 vii.

Technological environment12 c. SWOT analysis13 d. Critical issues14 6. Marketing Objectives15 7. Marketing Strategies16 a. Target Markets16 b. Product strategies16 c. Pricing strategies17 d. Promotion Strategies17 e. Distribution Strategies17 8. Recommendation for Change18 9. Implementation Plan19 10. References20 I. Bibliography20 A. Appendices23 3. Introduction Toyota Motor Corporation Australia (Toyota Australia) is one of the Toyota Japan’s global manufacturing centres which deal with manufacturing vehicles. It is the largest automotive companies of the world.
It provides long term commitment to the different domestic and export markets. Toyota Australia head office and manufacturing activities are based in Melbourne. While the sales and marketing operations are based in Sydney. Toyota, Australia employees over 4500 people and more than thousands are employed for its suppliers and retailing networks. Toyota Australia locally built cars like Camry and Aurion. And it imports a wide range of passenger, 4WD and commercial vehicles including Corolla, LandCruiser, Yaris, Tarago, Kluger, HiAce, RAV4, HiLux, Prado and the revolutionary hybrid model Prius.
In addition to this it also distributes and sells the luxury Lexus brand of vehicles. ‘Toyota is Australia’s largest vehicle exporter and in 2008 exported 101,668 cars to over 20 countries worldwide. This strong export drive contributed over $1. 9 billion dollars (including parts and accessories) in revenue for Toyota Australia in 2008. Cited on Toyota Website at ; http://www. toyota. com. au/about/company; Toyota’s Australia parent company, Toyota Motor Corporation (TMC) is Japans largest automotive companies in the world.
It was established in 1937, Toyota Group manufactures different kinds of automotives across 27 countries and regions throughout the world. And its vehicles are sold in more than 170 countries and region under different brand names like Toyota, Lexus, Daihatsu and Hino. Toyota Australia leads the automotive industry with respect to the environmental technologies with the success of the hybrid technology used in Prius. This report is going to achieve a situation analysis for Toyota Australia. It will consider different elements like internal environment, external environment, SWOT analysis and critical issues.
With the help of different marketing capabilities and development process marketing plan evaluation for Toyota Australia will achieved. We will consider secondary research for Toyota, Australia for analysis. Different sources for the secondary research data which are used for this marketing plan are as follows: Textbook, Internet data (company website and different web resources) and Journal articles. 4. Mission Statement Toyota Mission Statement reads as follows: ‘We deliver outstanding automotive products and services to our customers, and enrich our community, partners and environment’.
The vision is to be the most respected and admired company. The four core values of Toyota, Australia are: * Customer first * Respect for people * International focus * Continuous improvement and innovation Cited on Toyota Website at Toyota Hybrid Synergy Drive Philosophy: ‘For Toyota, quality is not just a promise; it’s a way of life. ’ Toyota believes in ‘kaizen’ (continuous improvement). It has made a commitment to manufacturing, innovative technologies and social contribution that will enhance the quality of life. A better way of motoring has been developed using the Hybrid Synergy drive technology.
It gives confidence to over 2 million drivers worldwide. The car which one drives is designed and engineered with the highest standards of quality and reliability. Toyota is the world’s leading hybrid system in the automotive industry. (Toyota 2009) 5. Situation Analysis a. Internal Environment i. Products Toyota Prius is a vehicle which is changing the world. It combines luxury, technology and environment. It’s a 1. 8 Petrol / Electric Hybrid Synergy Drive. This car is the world’s most advanced hybrid system. Cited on Toyota Website at It provides uncompromised performance.
Its key features are Smart Entry & Smart, 60:40 split retractable rear seats, Ecological plastic, LED headlamps, Three alternative driving modes, Superior hybrid synergy drive system, first beltless Toyota engine, shift by wire, Solar Ventilation System, Touch Tracer display, Head up display, Remote Air Conditioning System, Pre-collision safety system, Dynamic radar cruise control, emergency brake signal, Intelligent park assist, brake by wire, Vehicle stability control and traction control. Cited on Toyota Website at ii. Financial and non-financial situation
The global economic crisis in July 2008 had a major impact on automotive markets. Toyota, Australia experienced a rapid deterioration in vehicle sales because of the downturn in the economy. This in turn resulted in lower profitability. Vehicle manufacturing and Sales: During the year to 31st March 2009, Toyota Australia manufacturing operations produced 130,228 Camry and Aurion vehicles for domestic and export markets. Due to a strong sales performance for the first six months, the company was recognized in the Australian industry to achieve highest sales record during the year 2008.
In this period the domestic retail sales reached 238,983-2,336 units ahead on the previous year, and the sales volume represented a market share of 23. 6 per cent. There was 19. 2 per cent decrease in Australian industry new car sales from January to March 2009 as compared to the same quarter in 2008. Toyota Australia (including Lexus) sold 16,498 fewer cars in the first three months of 2009 as compared to the same period in 2008, which represented a 26. 6 per cent decrease in sale volume. During January 2009, the company implemented a general price increase for some of its imported vehicles due to a weaker Australian dollar.
Export Market: Toyota Australia is the country’s largest vehicle exporter. In 2008/2009 the company exported 94,955 Camry and Aurion vehicles to 20 countries which were Middle East, New Zealand and Pacific Islands. This was down from 99,395 in 2007/ 2008, due to the decrease in demand from Middle East Markets following the start of the global financial crisis. However for the calendar year, Toyota Australia exports reached 101,668 which was an all time record for the Australian automotive industry. The export program earned $1. 9 billion in revenue over the same period.
However for second half of the fiscal year, due to the global economic crisis impacted the entire business resulting in decline of sales in export and domestic markets. Global economic conditions will result in exports being lower in the 2009/2010 period. Despite the tough marketing conditions, the company continues to set new sales record. On a model basis, sales records were set for Corolla, Prius, Kluger, Yaris and HiLux. The 11,000th Prius Vehicle was sold in Australia during the period and globally, the one-millionth Prius was sold in April 2008.
The decline was due to the impact of the global economic downturn and changes to Luxury Car Tax implemented by the Federal Government in 2008 and increased competitor activity by companies like Honda. (Toyota 2009) iii. Channels Toyota automotives are available at different dealers over the world. It uses different integrating web services to provide information of the different vehicles online. It also provides an option to book a test drive online on http://www. toyota. com. au/book-a-test-drive. Cited on Toyota Website at
One can also get eBrochure and printed brochures and all the information for the vehicle on the Toyota Australia website (www. toyota. com. au). The main headquarters are in Japan. b. External Environment i. Markets The demand for cars has increased in recent times so the important aspect for the company is to get an appropriate market share in Australian market. The figure 1 is shown in Appendices which tells us the current market share of the company and Figure 2 shows that sales of the new motor cars in recent years has increased.
As there is a concern for providing greener environment across the world, there exists an opportunity for Toyota Australia to create better fuel economy and reduced emissions car which caters to the need of environment. Toyota Prius is one such hybrid synergy drive system vehicle which provides best combined greenhouse and air pollution rating of any vehicle sold in Australia. ‘Prius is officially our greenest car’. As cited on Toyota Website at ii. Competitive environment Toyota Australia strong competitors in every segment are Ford, GM, Honda, Mercedes, BMW and Volkswagen. Car Sales. com Limited 2009) Toyota Prius main competitors within the market are Honda Civic Hybrid and Ford Fusion Hybrid car. Toyota Prius belongs to the lower/medium passenger car segment (C). Currently Toyota Prius provides maximum fuel efficiency as compared to other brands. It comes with a standard 1. 8L l4, 16 values engine. (ANDiDAS. com 2003) Comparison As cited on Yahoo Website at iii. Economic environment Australia is a stable, democratic country with a strong competitive economy. Australia has one of the most outstanding economies of the world with skilled workforce.
There is a flexible labour market, an efficient government sector and a very competitive business sector within the country. The Australian economy is one of the fast growing within the world. Australia investment in ICT as a percentage of Gross Domestic Product is the third highest of Organisation for Economic Co-operation and Development countries. Australia is strong in Information and communication technology (ICT), innovation systems, business environment and human resource development. (Australian Department of Foreign Affairs Trade 2009). GDP for Australia expanded to 0. 0% over the last 4 quarters. The Australia Gross Domestic Product is worth 1015 billion dollars or 1. 64% of the world economy, as mentioned by the World Bank. Australia’s economy is occupied by its services sector, yet its economic success is based on lots of agricultural and mineral resources. Australia’s relative advantage in the export of primary products is a indication of the natural wealth of the Australian continent and its small domestic market. The country is a major regional financial centre and a fundamental component of the global financial system.
Figure 3 in Appendices shows the Australian GDP Growth Rate. (TradingEconomics 2009). Due to the increase in fuel prices, consumers will realise the value to the quality and services the car provides, rather than price. The Toyota Prius car with the hybrid system which provides fuel efficiency and reduce emissions will definitely run a long way as its environment friendly. iv. Demographic environment The estimated population growth rate in 2009 for Australia was 1. 195%. The total population estimated was 21,262,641 out of which 18. 6% of the population was between the age group of 0-14 years , 67. % of the population was between the age group of 15-64 years and 13. 5% of the population was between the age group of 65 years and over. The target customers for Toyota Australia would fall into these two age groups ranging from 15 – 64 years and 65 years and over. The age structure is similar to that of New Zealand and the USA. (Kotler, 2007). These are the potential customers and Toyota needs to focus on them as they fall into the potential market for buying cars. In Australia 99% of male and female population are literate. The statistic show that 78. % of people speak English, 2. 5% of people speak Chinese, 1. 6% of people speak Italian, 1. 3% of people speak Greek, 1. 2% of people speak Arabic, 1% of people speak Vietnamese , 8. 2% of people speak other language and 5. 7% of people speak unspecified language ( As per 2006 Census). There are different ethnic group like White, Asian, Aboriginal and others. Different religion like Catholic, Anglican, Uniting Church, Presbyterian and Reformed, Eastern Orthodox, other Christian, Buddhist, Muslim and others exist. (Central Intelligence Agency 2009). v.
Social and Cultural environment Australia has a multi cultural environment. It has different cultural group from all over the globe. Its diverse culture reflects liberal democratic traditions and social and cultural influences of the millions of migrants who have settled in Australia since World War II. Australia’s original inhabitants, the Aboriginals and Torres Strait Islanders peoples, have been living in Australia for at least up to 40,000 years. The rest of Australia’s people are migrants or descendants of migrants who have arrived in Australia from about 200 countries.
The defining feature of today’s Australia is the cultural diversity of its people, and the way they are united to each other. Australian has the right to express their culture and beliefs and to participate freely in national life. (Australian Department of Foreign Affairs Trade 2009). Toyota Australia needs to define an international standard which caters to the different cultural group so they can target the potential buyers within the market. vi. Political and legal environment The political system in Australia consists of a federal parliamentary democracy. There are 6 states and 2 territories in Australia.
The legal system is based on English common law; accepts compulsory ICJ jurisdiction with reservations. There are no political pressures from the group leaders hence the company can start the business in Australia. (Central Intelligence Agency 2009). The only problem here was when the Luxury Car tax was implemented by the Federal Government in 2008, Toyota Australia experienced a decline in sales on their luxury car segment range. Also environmental and safety measures needs to be implemented within the car with respect to the legal requirement for Australian standards. (Toyota 2009). vii.
Technological environment In Australia the technological environment changes rapidly. Some of the technologies related to automotive industry are as follows: Environmental Technology like hybrid synergy drive, Safety Technology, IT Based Approach, Fuel Cell Technology, Personal Mobility and Robot Technology which are used in the modern cars. Such features increase the sales figures of the company. For Example: In Toyota Prius the hybrid synergy drive which gives a better fuel efficiency and reduces emissions is one of the key features which gave the opportunity to increase the sales figure of the company.
Toyota was the innovator for this hybrid synergy drive car and it captured the market using this technology. However these features also increased the cost of manufacturing the car. So Toyota needs to keep up with the pace, as the technological environment keeps changing rapidly and the competitors might come up with a better enhanced version of this technology. (Toyota Japan 2009). c. SWOT analysis Toyota Prius Car, Australia SWOT analysis done within the Australian market: Internal Environment| Strength| Weaknesses| * Toyota Australia is the country’s largest vehicle exporter. Its reliable and Eco- environment friendly. * Continuous Improvement and Innovation * ‘Just in Time’ approach to Production pioneered by Toyota. * Lexus, Corolla and other strong brands| * Need to Understand the Australian Culture * Expensive Price * Costly to manufacture * New Technology can cause potential problems| External Environment| Opportunities| Threats| * Hybrid Synergy Drive Technology * Due to the recent economic crisis the petrol price has increased enhance it gives an opportunity for Toyota Prius to enter into the market as it works to maximize fuel efficiency. Due to the Australian government regulation in concern with the environment, Toyota Prius will be suitable for the market as it will reduces emissions and is environmental friendly. | * Strong Competition within the market. Example : Honda, Ford, and General Motors * Petrol fuel Price Increase * Availability of Public Transports in Australia Example: Train, tram, bus and cab. * Luxury Car Tax implemented by the federal govt in 2008. | d. Critical issues The demand might decrease for Toyota Prius as it does not focus on some actors which are as follows : * The cost structure of Toyota Prius needs to be rectified. The profits is reduced due to the cost structure. * Enhance the development of hybrid and compact vehicles which would be the key to the future growth. * Implement a more effective cost structure in the areas of production and sales operation. (vBulletin 2009) * The company needs to rectify the problems which are there in the current version of the car. Problems which relate to electrical, engine, interior accessories and fuel delivery system. (CarComplaints. om 2009) * Toyota needs to keep investing in the Research and Development of Prius Car for new innovation. As it already possesses expertise in producing hybrid cars. So it is essential for Toyota Prius to keep investing in the Research and Development of the car engine to increase the fuel efficiency and provide a competitive advantage in the market. * Expand the scope of the emergency value analysis to achieve cost reduction and reduce fixed cost by 10%. (vBulletin 2009) These are some of the critical factors which if not considered might cause problem in towards competitive business environment.
Which in turn will affect the sales of the Toyota Prius Car. 6. Marketing Objectives * Increase the sales for the coming year and regain the loss which occurred during the economic crisis. * To increase the market share of the company. * To attract new buyers for the car and retain the loyal old customers. * To maintain the brand and standard within the market. 7. Marketing Strategies a. Target Markets The Toyota Prius has targeted this car at all levels of consumers. However the drivers ranging in an age group of 40 to 80 year old drive this car as they are environment conscious.
Toyota targeted the car which was affordable from middle to lower income groups. It fuel efficiency and less emission is very attractive to this kind of age group. (Sheila Wilson 2005). Toyota is also designed to be used by people who are working in the in the city , because it features include switching of the engine whenever the Prius is stopped at a red light and give an extraordinarily good fuel consumption and excellent usable performance. Therefore Toyota Prius segments the market only by combining two demographic values which is income and age group and hence it targets these two segments of the market. WebPublication Pty Limited 2008). The campaign of Toyota Prius says “Harmony between Man, Nature and Machine”, which means the car, has been absolutely designed for the use of the environment and everyday life. This car belongs to the lower/medium passenger car segment (C). Hence the competition is against the entire (C) car segment. So the company needs to be innovative in a manner. (High Gear Media 2009). b. Product strategies The Toyota Prius has re-engineered the car and launch the third generation version.
The market in Australia is huge and profitable; so Toyota needs to launch the re-engineering project quickly and create new innovation to be a competitive leader within the consumer market. However on the company website it say it plans to launch an urban commuter battery electric vehicle by 2012. To improve the environment the new generation Prius has a 1. 8- litre four cylinder petrol engine which replaces the 1. 5- litre engine previous model. It has technology such as the solar ventilation system and remote air-conditioning system. It has features such as pre-collision safety system and intelligent parking assist.
It the ‘greenest’ car ever sold in Australia, thus it provides the lowest pollution emission and low fuel consumption. So Toyota Company can satisfy the customers and earn profit from the Australian Market. (Toyota 2009). c. Pricing strategies In view of target consumers, Toyota Company uses excellent technologies for the Prius cars. It is cogent to maintain the original price-positioning strategy. Most of the buyers don’t bother about the price. Toyota Prius car uses the Price Skimming Strategy. In this strategy the company will set a relatively high price in the beginning and then reduce the price over time.
As they are able to get consumers at every price point. Toyota Prius car is based on the innovation of hybrid synergy drive hence this innovation helps the company to use this pricing strategy. Competing with price will not support effective development. However, for the company to increase their profit the basic objective is to reduce the prospective cost (sunk cost). So it needs to use the price skimming strategy and capture the market before other competitors enter the potential market. And Toyota Company has always been an early innovator to do that. (Aisha Jones Scheffel 2008) d.
Promotion Strategies The different promotion strategy which were used by the Toyota Company for the Prius car were as follows: Television and print advertisements highlighted the evolutionary aspect of hybrid technology and freedom from depending on oil. Toyota has created online e-brochures with video clips which were sent to different people. Toyota also benefited from various celebrity endorsements that attracted attention to the new Prius car. Toyota also promotes motor show exhibitions. Example : The Melbourne Motor Show was the first public outing to display new Prius Cars.
Toyota has one unique characteristic which is to provide a greener environment friendly car as it produces low emissions. Recently they promoted in an advertisement saying ‘Harmony between Man, Nature and Machine’. (Ann Rodriguez and Chris Page 2004) e. Distribution Strategies Toyota Company has distribution centres in Australia. In 1999, Victorian Park Distribution Centre was opened at Altona. It uses the unique distribution methodology the Internet. One can find the dealer on the Toyota. com. au website. Dealers are classified with General Sales, Prius Sales, General Services, Prius Services and All Parts.
One can get the relevant information of the dealer which would contain the address, Telephone, fax Phone and email address. 8. Recommendation for Change * Lower the fixed cost of the whole process. * Improving the procedure of the Research and Development. * Build good relationship with other automotive companies in order to increase profits. * Supporting supplier development by funding the on-site process improvement and cost reduction activities. * Supporting dealers to apply Toyota Production System to improve customer service reduce costs and increase productivity. Producing Hybrid cars at the manufacturing plant within Australia. (Toyota 2009) 9. Implementation Plan * The main problem was maintaining a long life of the battery of the car. This is one of the biggest problems of the Prius car and the company should overcome this problem to increase the sales. (ConsumerAffair. com 2009) * The passenger side headlight goes off intermittently. This should be rectified by the company. It is a common problem found in most of the cars. (Howard A. Gutman 2009) * Vehicle’s engine shutting off, at a speed of 35 miles per hour (mph) and 65 (mph). Launching advertisement campaign for Green Environment friendly vehicle. * Providing great offers during festival like Christmas and Easter. * Advertising the new features of the third generation car like Remote Air Conditioning System, Pre-collision Safety System, Intelligent Park Assist and Solar Ventilation System. (The Gale group 2009) 10. References * Kotler, Brown, Adam , Burton, ed. (2007), Marketing, Frenchs Forest: Pearson Education Australia. I. Bibliography * Toyota 2009, Toyota Motor Corporation Australia Limited, Australia, viewed 9th November, 2009, ; http://www. toyota. com. u/about/company; * Toyota 2009, Toyota Motor Corporation Australia Limited, Australia, viewed 9th November, 2009, * Toyota 2009, Toyota Motor Corporation Australia Limited, Australia, viewed 9th November, 2009, * Toyota 2009, Toyota Motor Corporation Australia Limited, Australia, viewed 9th November, 2009, * Toyota 2009, Toyota Motor Corporation Australia Limited, Australia, viewed 9th November, 2009, * Toyota 2009, Toyota Motor Corporation Australia Limited 2009 Sustainability Report, Toyota, Australia viewed 10th November, 2009 * Toyota 2009, Toyota Motor Corporation Australia Limited, Australia, viewed 10th November, 2009, * Toyota 2009, Toyota Motor Corporation Australia Limited, Australia, viewed 10th November, 2009, * Car Sales. com Limited 2009, Toyota Prius (2003-) (October 2003), Car Sales. com Limited 2009, Australia, viewed 10th November, 2009, * ANDiDAS. com,2003, Toyota Prius; Marketing Communication Plan, ANDiDAS. com, UK, viewed 10th November, 2009, * Yahoo 2009,Yahoo Autos, Australia, viewed on 10th November, 2009, * Australian Department of
Foreign Affairs Trade 2009, Australia Today – Australia Now, Australian Department of Foreign Affairs, Australia, viewed 10th November, 2009, * TradingEconomics 2009,Australia GDP Growth Rate,Trading Economics, viewed 11th November, 2009 * Central Intelligence Agency 2009, The World FactBook, Central Intelligence Agency, Australia, viewed 11th November, 2009, * Australian Department of Foreign Affairs Trade 2009, People, culture and lifestyle, Australian Department of Foreign Affairs, Australia, viewed 11th November, 2009, * Toyota Japan 2009, Technology, Toyota Motor Corporation, Japan, viewed 11th November, 2009, * vBulletin 2009, PriusChat Forums, PRIUSChat, Australia, viewed 11th November, 2009, * CarComplaints. com 2009, 2008 Toyota Prius , AutoBeef carcomplaints. com, Australia, viewed 11th November, 2009, ; http://www. carcomplaints. om/Toyota/Prius/2008/; * WebPublication Pty Limited 2008, Toyota Prius : Across a Continent , Autoweb, Australia, viewed 11th November, 2009, * Sheila Wilson 2005, Team : Toyota and Prius Marketing Strategies, Wilson Marketing, United States, viewed 11th November, 2009, * High Gear Media 2009, 2010 Toyota Prius Marketing Theme : Harmony Between Man, Nature And Machine, AllAboutPrius, Australia, viewed 11th November, 2009, * Toyota 2009, Hybrid Synergy Drive News, Toyota, Australia viewed 12th November, 2009 * Toyota 2009, The New Prius Uses an Improved Hybrid System and New Engine, Toyota, Australia viewed 12th November, 2009 * Toyota 2009, Experience Prius, Toyota, Australia viewed 12th November, 2009 * Aisha Jones Scheffel 2008, The Right Pricing Strategy… priceless! ,ArticleBase. com, Australia, viewed 12th November, 2009 ; http://www. articlesbase. om/business-articles/the-right-pricing-strategypriceless-631704. html; * Ann Rodriguez and Chris Page 2004, A Comparison of Toyota and Honda Hybrid Vehicle Marketing Strategies, Rocky Mountain Institute, Australia viewed 12th November, 2009 * Toyota 2009, Toyota Motor Corporation Australia Limited 2009 Sustainability Report – President Message, Toyota, Australia viewed 10th November, 2009 * ConsumerAffair. com 2009 , Toyota Prius Battery Problem , Consumer Affair . com – Knowledge is Power , Australia, viewed 13th November, 2009, * Howard A. Gutman 2009 , Toyota Prius Headlight Defect , Law Offices of Howard A. Gutman, New Jersey viewed 13th November , 2009, * The Gale

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