TOYOTA

Page 1

TOYOTA
No. Topic
INTRODUCTION

Page

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

3 3 3 3 4 6 8 9 12 13

VISION MISION HISTORY MACRO ENVIRONMENT ANALYSIS MICRO ENVIRONMENT ANALYSIS PORTERS FIVE FORCES MARKETING MIX FOR TOYOTA CONCLUSION AND RECOMMENDATIONS BIBLIOGRAPHY

TOYOTA

1.INTRODUCTION 1.1HISTORY
Toyota Motors Corporation is one of the leading Japanese automobiles manufacturing company established in 1937. It is a top10 fortune global 500 enterprise. The company is offering a wide range of products from mini vehicles to large trucks. Besides it own 12 plants and 11 manufacturing subsidiaries and affiliates in Japan, Toyota is operating truly as a global company with its manufacturing subsidiaries available all around the world. (Toyota Worldwide 2008)

1.2VISION Toyota aims to achieve long term, stable growth in harmony with the environment, the global economy, the local communities it serves, and its stakeholder. 1.3MISSION
Toyota seeks to create more prosperous society through automotive manufacturing. Before going to analyse the Toyota issues, first we need to study external and internal marketing environment for Toyota and the industry. Being a UK resident we have consider all the factors considering United Kingdom as a local country to make our assignment understandable.

TOYOTA

2. SITUATIONAL ANALYSIS

2.1 SWOT ANALYSIS

The Toyota Motors SWOT Analysis is as follows:
2.1.(1) STRENGTH.

Toyota Motor (Toyota) is the leading auto manufacturers in the world.The company have a sustained brand recognition all over the world which help them in charging premium price from its customers Toyota has a strong distribution network worldwide which ensures faster delivery of their cars to customers. 2.1.(2) WEAKNESS. Lapses in product quality have negatively hurt the companys product quality and image. Unfunded pension obligation are impact the cash flow adversely. 2.1.(3) OPPORTUNITIES. The company has put a lot of research in hybrid electric vehicles which promises to have a great demand in the future.
The company initiates to launch new products which will generate customer interest.

2.1(.4 )THERATES.

The company has tight competition in global automotive market from various companies
such as Ford Motors, Honda Motors etc The new tightening emissions of various countries have increased the production cost.

TOYOTA

3. MACRO ENVIRONMENT ANALYSIS

The companies Macro Environment analysis are as follows: 3.1 PEST ANALYSIS

3.1.(1) Political Factors: Britain comes in the European Union's agreement with countries free trade level between the EU, and most of the European automotive production and import of different area, so there is no import tax to different countries. There is still custom duty applied for car importing from other countries. Taxation and surcharges are high in UK comparing to other countries, as CO2 emission taxation is like higher the emission the higher the tax rate will be. Along with this High fuel taxes is amounting to 76% of fuel price. Value added tax (VAT) on car purchases is 17.5%. Moreover an additional vehicle duty (VED) is levied on all cars in use (World Market . Analysis 2008)

3.1.(2). Economic Factors: According the SMMT survey result about the forecast of the UK automobile industry, 62% of the respondents believe that the UK s manufacturing position will improve with respect to the other European countries and 40% feel that it will improve like US market and almost 10% believe that it will improve with respect to Asian-Pacific region (Keynotes 2008). To improve the profitability of the manufacturing, the company is continuously working to develop new products and keep focusing on international market.

3.1.(3). Social Factors: It is noted that vehicle manufacturers are trying to develop new improvements for the safety of vehicles, but there are still large gaps in improving road safety and the need for an integrated approach that includes not only companies but also government and people. There
P 5

TOYOTA
is observed to be a kind of desire among the people to have their own personal car for use and majority of people are struggling through getting out of it.

3.1.(4). Technological Factors: There is a high competition in automobile industry nowadays, and the competitors have innovations consecutively. UK is a place with highly technical development and most of the R&D labs of the automobile companies are based in here. Automotive industry reputation for creativity in design and technology is remarkable and is the major challenge for organizations. UK is the country with having a infrastructure regarding these kinds of developments, therefore it is becoming increasingly focus for companies activities.

4.

MICRO ENVIRONMENT ANALYSIS

Following are the micro level factors which affects the market size and the competition it is facing. 4.1 The Market:

UK automobile industry is playing an active part in the countrys economy of around 5% of GDP. It also accounts for more than 10% of the UK's visible imports (Key Notes 2008). Its a part of European Market with 80% of vehicles bought here being imported (Auto Industry 2008). UK automobile industry has been buoyant since 1990s, the industry enjoy the significant growth from this sector between1994 and 2005 with many positive factors including low interest rates, high consumer confidence and competitive prices(World Market Analysis 2008).

4.2

Competition:

Toyota Motors Corporation as being a second largest automobile manufactures which over took Ford in 2003.While the latest analysis as a negative growth in the small car market of

TOYOTA
luxury and upper medium cars that shows positive growth last year, but there is a demand for small cars in UK industry.(World Market Analysis 2008)

5.

MARKETING MIX FOR TOYOTA

After analyzing the overall situations including the external, internal environmental analysis, following are the marketing mix elements which allow us to understand the current position for Toyota. 5.1 Product

As UK market is highly competitive, there are large range of car models available for consumers from the company. Most cars are imported from another part of the EU without duties that has great effect on car prices. There are only two brand name cars being manufactured by Toyota Manufacturing United Kingdom which are as follows:

Table: Range of locally manufactured car models offered by Toyota Motors UK

Toyota Motors is not only manufacturing these two brands for UK market but also exporting a large portion of it to other EU countries.

5.2

Price
P 7

TOYOTA

Toyota offers a wide range of models with different prices covering almost every segment of people according to their availability. Each model contains some basic prices and customers have to pay more additional values he embraces. The prices are basically set up to take care of the competitions, product prices and extra values the company gives customers to meet their needs to their satisfaction. 5.3 Place

The company has nearly 220 independent dealers nationwide, some of which are sole traders, and some are small groups and other PLCs. The other vehicles that were imported came to this country through Portbury, Bristol; the imported and locally manufactured vehicles are then able to reach customers through trade networks across the country 5.4 Promotion

Toyota(UK) internal system Mall Marketing company that provides all information of the dealers and outlets and other management staff to run campaigns for business promotion. This all results in having an integrated marketing approach, so that each employee of the company could deliver the same image of the company. In addition to this there are information centres and call centres for services; it is a way of communication by the company to its audience. Most of the money is spent in advertising of products through television, radio, print media and web media.

6.

CONCLUSION AND RECOMMENDATIONS

Automotive industry today is among that industry that is in the interest of almost every person of every age. Those who cannot buy a car there are some dreams for their cars in their
P 8

TOYOTA
heads. As cars to be most attractive products and customers consider it is part of the family after buying it, the car makers are very sensitive to produce a product that can best fit customer requirements. There are different strategies taken by different companies for the benefit of customers to have their best cars.

Any company that has decided to rebrand its name has to consider many aspects of this process. It is usually very expensive and requires a lot of preparation. Toyota should be prepared to use significant amounts of resources: people, time and money. That makes Toyota temporarily more vulnerable to the dangers of the business world.

Toyota has to use the knowledge of integrity, professionalism and scale of business for his benefit, for example, by emphasizing the internationalization of new high brand or communicating the purpose of re-branding process is not only a change of identity, but also to increase professionalism and honesty of the company and its offer. Of course, empty promises will only harm the business reputation, so keeping them is also essential to ensure customer satisfaction.

The rebranding process can also provide a good opportunity to meet the anticipated customer needs. The customers, to support the change, need to perceive some real benefits, which would be valuable to them, and not necessarily for Toyota. This type of access in Toyota is used to reduce the resistance to the change process and increase overall customer satisfaction. The final recommendation is very simple, and virtually applicable to any business process. Nevertheless, it is essential. For rebranding to be successful and for customers to be satisfied, the process must be preceded by the thorough research and effective planning. Since it requires huge amounts of various resources and at the same time poses significant risks, there is no room for mistakes. When customers feel excited about the change, and not betrayed or angry, only then can a company celebrate its success.

7.
y

BIBLIOGRAPHY
http://www.toyota.com.cy/experience/the_company/index.aspx
P 9

TOYOTA
y y y y

http://www.samples-help.org.uk/mission-statements/toyota-missionstatement.htm Documentum 2008; www.emc.com/domains/documentum/index.htm http://www.toyota.co.uk/cgi-bin/toyota/bv/frame_start.jsp?id=Sitemap_TOD http://www.toyota.co.uk/cgibin/toyota/bv/generic_editorial.jsp?navRoot=toyota_1024_root&nodiv=true&fullwidth =true&noLeftMenu=true&forceText=%3cnone%3e&edname=as_ServiceMaintenance &catname=%2ftoyota_1024_root%2fmain_nav%2fTOD&menuid=323790&zone=Zon e+Ownership&id=AfterSalesService

y y

http://www2.toyota.co.jp/en/news/10/04/0428_2.html Keynotes 2008: http://www.keynote.co.uk/marketintelligence/reports/category/transport-%26-motor-goods

y y y

Toyota Mobility: http://www.toyotamobility.com/index.html Toyota World Wide, 2008; http://www2.toyota.co.jp/en/news/10/05/0511_5.html World Market Analysis, 2008: http://www.marketresearch.com/product/display.asp?productid=801249

YIN, R. K. (2002) Case Study Research: Design and Methods. Thousand Oaks: Sage Publications, Inc.

10