The paper examines the marketing strategy of Toyota Motor Corporation in China and U k. Toyota is the leading car manufacturer, assembly, and distributor of motor vehicle and its products. The present company’s marketing strategy and competitive environment will be discussed and this will be followed by its competitive advantage, recommendation, and conclusion in the marketing strategy of the company.

2.0 Introduction

2.1 Company background

The Toyota motor corporation leads in the manufacture, assembly and distribution of cars in the whole world. Its excellent marketing strategy has been due to its unique managerial style. In addition to this, there are other dynamics that make the company attain the niche of market leaders. The market strategy that Toyota operates in can not be definitely stated. Since Toyota Motor Corporation is a leader in exporting cars to other countries, it is mainly viewed as a monopoly. In reality, the differentiation strategy used has made the company acquire more revenue from it sole control of the market more so for the third world countries of the world. However, its market strategy can be viewed as an oligopoly (Drummond & Ensor, 2005, 13). This is basically due to that there are other key players like General Motors who are providing a stiff competition. Nevertheless, Toyota Company is devoted to keep track on how these competitors are operating and make sure it responds to their proceedings in a way that will assure its market leadership especially in China and UK.

3.0 Current Situation

Toyota’s ability to manage its production can be based on its internal model. This shows that the production process is controlled by the company’s leaders who are skilled in it. This team takes control of the production process in an effective and efficient manner. Hence, to get a clear picture of the situation at Toyota Company, SWOT analysis will be used (Drummond & Ensor, 2005, 21). This analysis focusses on the strong, weakness, opportunities at the disposal of the company and the threats. Some aspects of organization strategy used in regard to the impacts brought about by the company include:

3.1 Mission Statement

Toyota Motor Company looks forward to creating a successful society through car manufacture (Hiroshu 2003, 23). Hence the Company aims to acquire a gradual growth that will last in the future. This has to be in association with the environment, economy, and the local people among other players.

3.2 Goals of Toyota Motor Corporation

The goals of the company lies in the creation of hybrid opportunities for each car bought. This makes it possible for the company to acquire huge sales of vehicles annually. This is to be met by 2012.

The Toyota Company has advanced its environmental focus through directing its focus to certain main areas of the environment: management, Energy and Climate, recycling and social involvement among others (Ferrel, 2010 p 76). Toyota is dedicated in managing air pollution through making sure that the environment is free of polluted air. To meet this, the company focusses fuel economy values.

3.3 Sole Ability and Sustainable Competitive Advantage

Toyota Motor Corporation is keen in acquiring a developed and effective financial system through the creation of a safe global market. Considering the advanced technology, Toyota Company is able to meet is goals in a set time period. The company has an improved modern network. This network has the objective of undertaking research and advancement of aspects that make it possible for the company sustain its top quality production (Borowski, 2010, 45). This network that spreads across the world has enabled the company to take part successful markets in the China and UK.

3.4 Consumption of Toyota products

Customers are able to purchase products from the company at any designated time. This is made possible due to Toyota selling its cars annually excluding the limited editions that are taken to factories. New crop of car buyers arise when they get to high schools where they are able to acquire a driver’s license. As for others, they get new cars when what they have gets old and worn out as well as preference for other models.

Most customers go for Toyota as it offers efficient products and their specialised operation. The company offers its clients products that meet the standards required. Its focus lies in setting and maintaining top quality products. Customers are given affordable choices of the same product from other manufacturers who charge highly (Borowski, 2010, 46). Additionally, Toyota directs its investments on safety cars. These cars are manufactured in a way that they will not harm the environment. This looks to be the future of the industry. This high value products enables clients to buy more from the Toyota Company.

3.5 Analysis of Toyota marketing strategy

Toyota Company is able to use its opportunities and strength to create a competitive and effective market for its products. A good example is its well differentiated products have made it possible for the company to acquire international presence. Additionally, Toyota Motors has gone steps ahead in terms of sustainability. The threat of depletion of fossil fuel in addition to global warming, market has presented itself for the company’s hybrid car. Similarly, it has the ability to sell its technology to other companies.

Toyota Company is on the fore front in car export and operates in line with its mission. The company’s operations are based in the creation of a satisfied society through meeting their needs. To achieve this, the company offers its customers the best price for quality products compared to its competitors (Lee, 2011 p.70). This can be regarded as the reason for a successful market in the third world countries. The company is aware of sustainability, and this can be attributed to its extensive corporate social responsibility and sustainability operations that are focussed on controlling pollution. The consumer pool is wide spread and varies from the poor to the rich. Toyota Company is able to meet the needs of all of them with variety of cars available. The cars vary from sports cars for small families and trucks and family cars for big families. Similarly, the client pool comprises of people from varied ages, wages, countries and social attribution.

Consumer go for products that suit their needs. Those that earn low wages are accorded with a basic transportation mode that lies in their price range. Additionally, those that go for classy vehicle are able to get their products with ease (Lee, 2011 p.72).

Customers buy Toyota Company products on a personal basis with regard to their preference. In other instances, there are other companies that buy cars for certain companies while others for their staff. In this case, the customers do not buy it for themselves but for others. After the product is bought, the company’s exposure to other people is increased.

3.6 Financial data and Projections

Past years in Toyota has shown an increase in profit annually, excluding 2009 which was attributed to an economic decline and recalls. The graph below show a clear picture:

Figure1: Toyotas impressive performance in the last four years (Johnson, 2009)

With the rise in more advanced technologies and new markets, there is a probability of increase in profits in the future.

3.7 SWOT ANALYSIS

The SWOT analysis comprises of both internal and external factors. The strengths and weaknesses are known as the internal factors of the company. This is since they influence the inner structure of the company, while opportunities and threats are external factors as they arise from external influences.

3.7.1. SWOT ANALYSIS of internal factors

Internal Factors	Strengths	Weaknesses
Management	An all-inclusive and effective management team.	Huge management teams affect the pace at which decisions are made by slowing them down.
Offering	Hybrid products that meet the needs of the customers.	It is expensive to prove the right products for customers.
Marketing	The distribution of products to customers using available structures	It is expensive to set up a distribution network
Personnel	Availability of an effective and efficient team	In the rise that this staff leaves, a huge vacuum will be left.
Finance	There is improved cash inflow due to money acquired from the sales made	The unavailability of effective staff and raw products may affect the cash flow.
Manufacturing	The manufacturing process ensures the process is of high quality and timely.	There is a huge pool of suppliers and competitors of common interests.
R&D	The products produced are of high quality through extensive analysis.

3.7.2SWOT Analysis of External Factors

External Factors	Opportunities	Threats
Consumer/social	It shows the permanence of the emerging markets	Cheap products may reflect products of low quality
Competitive	Differentiated products and charges makes Toyota stand out from competitors.	Technology of high quality are introduced into the market by competitors.
Technological	The use of technologically advanced tools makes the company produce products of extraordinary quality.
Economic	Enhance customer wages makes the company to venture deep into the market.	Customers may desire to look for substitute goods that fits their needs.
Legal/Regulatory	Regulatory measures ensuring fairness in the market and avoid over-exploitation by other competitors

3.8 PESTEL analysis for Toyota

3.8.1 Political factors

In the background of the financial predicament, every nation government carried out the relating therapy policy to defend or stimulate each vital industry, including the annotative industry. For example in 2009 Toyota asked for a loan of $2 billion from the government (Muller, 2011, 23). These helped the corporation survive the tough situation caused by financial crisis.

3.8.2Economic factor

The automotive industry is showing the recovery evidence since the financial crisis (Muller, 2011, 23). The Asian automotive market has a bright point in the previous years. Therefore, existence of positive data in terms of profitability in china and UK will improve the confidence of investors and the rising market in Asia will attract Toyota Corporation.

3.8.3 Social factors

Due to the elevating price of oil, many people prefer small displacement engines due to it high efficiency (Kortam, et al 2003 p 452). These will drive manufacturers to produce small displacement engines and Toyota has launched such types of cars in china, UK and other regions. Consequently, the rising power of middle class in china, it has the largest growing market for cars all over the world. Consequently most luxury cars are preferred in UK and this proves to be a very potential market for china.

3.8.4Technologic factors

Due to scarce energy resource, the demand for vehicles has driven other forms of energy. Companies are coming up with innovative technologies and hybrid systems in order to improve performance and reduce fuel consumption (Sayle, 1989, 45).

3.8.5Environmental factors

The gas emitted by vehicles has become a major issue in the recent years. The EUROPEAN UNION established policies where every automotive corporation has to be responsible for the emission performance of the vehicles while different countries have different emission standards. Therefore automotive manufacturers have to incur extra costs to meet these standards.

3.8.6 Legal factors

Every nation operates legal policies to protect their own automobile corporation benefit. For instance in china, preferential taxes has been abolished for small displacement cars so as to minimize the po0sition in large cities (Sayle, 1989, 47). Therefore, manufacturers such as Toyota has to adjust their strategy to meet ration legal policies in various countries.

3.9 STP FOR TOYOTA COMPANY

Segmentation targeting and positioning process of Toyota flows congruently with the mission and the vision statement. The selection of the target markets, and establishment of specific marketing mix and positioning goals for the products and services of the company is driven towards a value creation (Scott, 2008 p 287). Market segmentation has been an adaptive strategy for Toyota Company. It encompasses of partition of the market with the aim of selecting various market segments in China and UK in which the company may target via the development of particular marketing mixes that adapt specific needs in the market. Due to the increase of the middle class in China and UK, it’s clear that the market is very attractive in the two regions and targeting this market requires Toyota to establish various designs in order to meet the needs of its consumers. Finally, Toyota has to position its products within this target market so that consumers will have a vivid and distinct understanding of the product.

4.0 RECOMMENDATION

4.1Developing a Strategic Focus

Considering that Toyota has used product differentiation, it should put more emphasis on using a pricing mechanism. This will accord it a competitive advantage in China and UK which is a highly competitive environment .Consequently, the cost of production of a unit for Toyota is anticipated to be huge because of possible mass production centres, it is projected not to be expensive in this instance. This shows that the company can sell its products cheaply and still be profitable (Simkim, 2001 p. 612). Toyota is recommended to use this opportunity and get into the markets of the fast rising economies.

4.2Marketing Objectives

Toyota is a huge company which is effective in its operations making it acquire an advantage in acquiring development of the company in China. The customer base that need vehicles is fast rising hence offering a huge market base for Toyota and increased desire for manufacturer of more products. Car ownership comes with prestige that is currently rising. The size of the company offers it a good benchmark in meeting this growing need (Dobni 2002, p.41). Hence, Toyota has to maintain the product quality level and not go back on it through putting pressure on the competitors and increasing the prices. This will make the customers remain loyal (Armstrong & Kotler 2002, p. 92).

The engineering process should be minimised in assembly of the car models. This trims the cost as it aims to make its platform compact. This is necessary as the major competitors in China and UK have more enhanced production processes. Focus for a Toyota has to be directed to bloated assembly points. It has to focus on setting up the best way of carefully limiting them (Mullins, Walker, & Boyd 2010, 65).

4.3 Getting Prospective Consumers

Toyota’s target market presents a different picture of their population than what their client base shows. Motor vehicle manufacturers have in the past increased making the industry to overflow with products. Most of these products are similar though variation may arise due to certain small issues. Such a case may call for preference, class and social level (Mullins, Walker, & Boyd 2010, 67). The products produced by this company may not always give one a high social status this makes them to get cars from other rival companies. The customer numbers in Toyota can be increased through promotions, website details among other methods. Additionally, income by the company may rise due to complimentary products which is of great help.

4.4Target Market

Products by Toyota Company is aimed at a certain market. The design varies in speed, size and look as well as colour and other features. There is small, fast car that meets the preference by single adventurous people. In terms of the physical terrain like rough roads, strong cars are preferred (Thomas 2001, p. 113).

In the past, Toyota Company received complaints from American Markets of their products that lacked flair and design in comparison to GM and Ford. This made the company to be more focused on the American designers so as to meet their necessities. This called for the company to increase other products like the V8 pickup that began on this platform (Thomas 2001, p. 114). A good example is the hybrid model called Primus that has gone through several changes, it did not appeal to customers. After changes it was able to meet massive sales in volumes.

4.5 Company Position in the Market

The Toyota Company has focused on the manufacturer of vehicles and major products that are affordable and accessible. This will make it possible for Toyota to acquire a major stake in the Chinese market as it looks to acquire by the end of 2013. This calls for major strategies to be put to play to meet this goal (Thomas 2001, p. 114).

4.6 Increasing market share

Considering that most of the products sold in the retail businesses, the company looks to increase the number of retail distributors. Customers are able to buy from the factories. Hence the company is forced to elevate the application of electronic commerce and marketing over the internet. Most of the products used can be acquired over the internet. Undertaking publications over the internet limits waste papers and is accessible to several people. The customers are hence, able to order the product easily (Booz 2007, p.43). This offers the customers with access to Toyota’s products.

4.7 Market Program

This comprises of the market mix elements modelled to fit the market aspects and access to goods and services.

4.7.1 Product Strategy

Toyota Company ought to be keen in mass production as it will make it possible to distribute its motors to all countries better (Booz 2007, p.44). It has to elevate the strategies of hybrid production so as to elevate the size of production to meet the needs of the customers.

4.7.2 Price Strategy

The status of Toyota Company has been based on the production of quality products at affordable price. The company has focus more on skilful pricing methods by use of price differentiation. This offer contrast from other competitors.

4.7.3 Location Strategy

Considering Toyota is a global manufacturer and distributor of motor products, it has placed itself on the international stage with a vast market pool. In the future, it looks to acquire a 35% share in the market making it a leader in the industry.

4.7.4 Promotion Strategy

Toyota Company has to focus on skillful use of its pricing mechanism which accords it competitive benefit over others (Booz 2007, p.46). This makes it market itself to meet the market share that enhance it further.

4.8 Marketing Implementation Analysis

Toyota Company has to consider growing its distribution and get to new markets located in China and UK. This will be met through use of penetrating strategies as it did in Japanese and America. Additionally, the company has to focus on the competition from major competitors like Ford and GM, considering it has an advantage of them, it ought to focus on setting up new firms. This will be useful in easing penetration.

Human resource is a vital element in this strategy. The company has to make sure that the staff is up to the task in delivery of quality products (Harvey, 2010 p 52). This can be achieved through modes of rewarding them like subsidizing the rates of cars for them. Additionally their skills should be of the required level through constant training.

4.9 Evaluations and Control

Toyota Company should focus on setting up a team that will be charged with monitoring and evaluation of how the company aligns with its goals. The short term objectives have to be well defined (Harvey, 2010 p 53).

Currently, Toyota Company has come up with hybrid motors that has been well received in the market. Another aspect of focus is the pace at which the company roll outs its programs of pricing. In the present case, it has entered the market strongly with products that align with customer’s needs.

5.0 Conclusion

Generally, Toyota Company is operating and growing successfully. Taking into consideration that it has faced a number of challenges, it has gone to thrive and lead the market. The pace at which the company has looks not to be taken away from it by any other competitor in the market. This is attributed to the increasing level of middle class in China and UK, there is a guaranteed improved market for its products as long as it comes up with an effective market strategy. Toyota has been capable of create a differentiation program that accords it a huge range of market ownership. It looks to improve and meet its goals in three years. This will be rated by the rate of growth and market acquired by the company.

6.0 References

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Borowski, A.2010. Report on the Toyota Company. GRIN Verlag: Munich.

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Sayle, L.R.1989. Leadership Managing in Real Organizations. McGraw-Hill. New York

Kortam, W et al. 2003. “Understanding the new bases for global market segmentation”, Journal of Consumer Marketing, Vol. 20 Iss: 5, pp.446 – 462

Scott, C.J. 2008. A Clusterwise Bilinear Multidimensional Scaling Methodology for Simultaneous Segmentation and Positioning Analyses. Journal of Marketing Research: June 2008, Vol. 45, No. 3, pp. 280-292

Simkim, L. 2001. Market Segmentation: Diagnosing and Treating the Barriers. Journal of Industrial Marketing Management. 30(8) 609-625.

Thomas, JG 2001, Business planning: long range and strategic management. Black Hall Publishers, Dublin.

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