Discuss about the Evaluating International Marketing Opportunities.
Toyota is one of the most competitive global automotive firms. Its market is diverse in terms of o and global market conditions and consumer preferences. Because of this, the company’s, market matrix is designed to the many variations. Toyota Corporation was founded in 1973, and since then, it has grown firm a local business to a global firm. Today, it has operations most regions of the world, except a few parts of African and the Middle East and Mongolia. The company’s global success demonstrates that is has developed and implements and effective marketing mix.
Toyota’s strengths have enabled it to remain competitive in the marketplace. This global company is a well-known brand with an outstandingly strong reputation. As result of this, it has a large market share, and customers prefer to associate with most of its products. Toyota also relies on modern technology to manufacture vehicles. Other than the advantage of a strong brand, its vehicles are efficient, affordable, and faster. A variety of vehicles that Toyota produces meets different needs of different classes of customers. Additionally, it manufactures fuel efficient vehicles and implements lean manufacturing approaches (Sako 2006).
Toyota has weak organizational structures. This weakness makes it difficult for the organization to make the right decisions at the right time. The ultimate effect of this is low profitability.
The automobile industry faces a lot of problems due to the instability of prices. Toyota has difficulty handling these factors. At present, it has no ability to keep the balance between fluctuations between price and demand. Additionally, Toyota has a problem managing the international network of its subsidiaries as well as franchises. Due to an increase in competition, the corporation is experiencing a decline in the overall sale, and this has led to a significant amount of debt (Sako 2006).
Toyota also has several opportunities that it can exploit to become more efficient and productive. It can invest in R&D so as to introduce environmentally friendly vehicles. In the automotive industry, firms are on the lookout for better opportunities to enhance their processes. Since initiating most innovative processes is costly, most firms fear to invest fully in it. This offers Toyota a great opportunity for success given that it has a substantial amount of capital (Wells 2015).
Other opportunities are the ability to introduce solar power vehicles and introduce ecology-friendly cards. These opportunities make it possible to enhance the company’s brand image. Due to globalizations, it has a significant opportunity to penetrate larger markets. Besides, the company can continue to expand to new segments and new markets and retain its outstanding competitiveness (Theisen 2010; Barabba 2007).
The 2009 economic meltdown shoot all big world economies. While the economic environment has improved since then, most world economies are performing below expectation. The automobile industry is facing the crisis of constantly increasing oil prices. Competition is also increasing, and firms with the capacity to withstand cutthroat competitions are ailing finically and are on the verge of closure (Theisen 2010).
Additionally, the continued economic meltdown has brought about many negative changes. The prices of manufacturing materials continue to escalate. Interest rates are also highly volatile. The government and international bodies have responded to these factors by tightening emission regulations and standards (Theisen 2010).
For Toyota to be able to market its products, it should segment its market. The company’s new products are selected based on the desire of its customers to go green, core requirements of customers such as efficiency, affordability, and reliability. Other criteria are the requirements of the government of eco-friendly vehicles as well as the key government regulations and standards. As an executive marketing manager of Toyota, I consider it appropriate for the company to manufacture more vehicles that have hybrid features and meet the above requirements. Toyota’s new product that meets these criteria is “Toyota Prius” (Baker 2014).
For Toyota, market segmentation matrix is effective for defining the segments for hybrid owners. These segment groups are the United Kingdom, Opportunists or “Green’ lovers,” pioneers, income, and environment. Pioneers followed by “Green” lovers are the most suitable segments for the new product, ‘Toyota Prius.’ There should be a strategy for targeting these two behavioral segments (Baker 2014; Barabba 2007).
Targeting is the process of evaluating the attractiveness of each market segment and choosing at least one segment to enter. Some of the most common targeting strategies are undifferentiating, concentrated, and differentiated. Toyota cannot adopt undifferentiated strategy since the company does not need to convey the same message to everyone. Toyota can, however, use either differentiated or concentration targeting strategy. When using the differentiating strategy, the company can decide to target each of its segments with its marketing mix so as to meet the desires of its clients. The concentration targeting strategy can be the best option for Toyota as it enables the company to target distinct groups of customers (Science TQM, New Quality Management Principle 2012).
The key positioning objectives for “Green” lovers and pioneers are developed depending on the criteria that are set to serve the new hybrid vehicle. The main strategic objective for pioneers is to offer innovative products to increase its market share for hybrid vehicles. The main goals for “Green” lovers are to provide products that meet the standards of the environment so as to be able to expand the market share of this segment (Ayers 2004).
Toyota produces the diverse set of products. They include Marine products, engines, welcab series, Toyota automobiles, Lexus automobiles, and spare parts and accessories. The most popular products in this list is Toyota automobiles. The luxury product is Lexus automobiles.
Place Mix
Toyota’s main place for distribution is dealerships. However, it also distributes its products such as accessories and spare parts to retailers.
Toyota uses a promotion strategy that targets all its key markets. It uses personal selling and individuals who personally market the items to potential buyers. Also, it use advertising through platforms like websites, TV, and newspapers. Toyota also uses public relations to promote its products. Sales promotion and direct selling are other approaches that Toyota uses. Sometimes, it carries out infrequent sales promotion through special deals. For corporate clients, it uses direct selling.
Toyota uses different pricing strategies fir different product lines and models. It uses the market-oriented strategy to establish prices based on various market conditions and the influence of competitors. This pricing strategy applies in most of Toyota’s products, including trucks and saddens. Since this strategy cannot meet all its needs, Toyota uses valued-based pricing as well. Using this strategy involves fixing prices depending on the actual and perceived value of the product. The value-based strategy applies best in Prius and other high-end and more expensive products.
Toyota should choose the right marketing strategies at each product life cycle stage. The product life cycle offers a helpful structure for crafting a strategy for products promptly. Toyota needs to evaluate all these stages of planning today and for the future. At the introduction stage, the company can implement generic strategies so as to grow and maintain a competitive advantage. For Toyota to be successful, it can adopt product differentiating, heavy advertising using the Internet, newspapers, and TV, and price penetration (The Toyota Way and the Toyota Production System (TPS), 2013).
Additionally, Toyota should adopt the right growth stage strategies. For the company to achieve its goals, it should focus on expanding its market share rapidly. The appropriate tool for doing this is porter’s cost leadership strategy.
At the maturity stage, Toyota should focus on increasing its market share. Since the Toyota brand is strong in the UK, it is the right market to focus on. However, Toyota has less market share in this market as compared with other firms. The main reason behind this shortage is the lack of product differentiation. Toyota being a global company, it has been focusing on both market segmentation and cost leadership.
While this strategy has helped to make Toyota be one the biggest global automotive firms, it does not help the company to expand in the UK. In this region, Toyota should use a product differentiation strategy. At the decline stage, Toyota needs to invest in new and emerging markets, segmentation strategy, value adding or value chain strategy, and cost cutting strategy.
For Toyota to compete effectively in the UK market it can use the differentiation strategy for Additionally, Toyota should carry out several R&D activities so as to know all the needs of its customers.
Conclusion
From the above analysis, it is apparent that Toyota is the market leader in manufacturing Hybrid products. However, due to many business reasons, it is facing weak profitability. For Toyota’s new product, “Toyota Prius,” it should target and position “green” lovers and pioneers in all the levels of PLC using communication channels like electronic media and the Internet. It should embrace marketing strategies such as price penetration and heavy advertisement. Finally, Toyota needs to adopt differentiation strategy so as to compete in the UK marketplace more efficiently.
References
Ayers, C 2004, Evaluation of 2004 Toyota Prius Hybrid Electric Drive System Interim Report, doi:10.2172/885776
Baker, M, J 2014, Marketing and Corporate Strategy, Marketing Strategy and Management, 25-59. doi:10.1007/978-1-137-34213-3_2
Barabba, V, P 2007, The Toyota innovation model, Strategy & Leadership, 35(4). doi:10.1108/sl.2007.26135dae.002
Sako, M 2006, Strategy and Structure at Toyota Group, Shifting Boundaries of the Firm, 92-126. doi:10.1093/acprof:oso/9780199268160.003.0005
Science TQM, New Quality Management Principle: The Quality Management Strategy of Toyota, 2012, doi:10.2174/97816080528201120101
The Toyota Way and the Toyota Production System (TPS), 2013, The Objective is Quality, 295-328. doi:10.1201/b16067-11
Theisen, T 2010, Natural gas for power generation and the automotive market, Handbook of Fuel Cells, doi:10.1002/9780470974001.f301002
Wells, P 2015, The market for new cars, The Global Automotive Industry, 19-28. doi:10.1002/9781118802366.ch3
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