Marketing may be construed to be one of the most success-critical aspects of the business operations and strategic marketing, therefore, plays one of the most significant parts of the studies of business management. The foremost principle behind an effective strategic marketing plan is to fit a business’ on a precise module in marketing. The present study aims to evaluate the current performance of Toyota Motor Corporation in the context of the Australian market.
In the beginning of the paper, the researcher attempts to provide a synopsis of the background and overall performance of the firm. As per the consideration of Chernev (2018), objectives of marketing usually ally with wider business objectives. For example, a new firm seeking to grow in a competitive market frequently has a strategic marketing map that focuses on policies to enhance customer base. Therefore, the subsequent parts of the study focus on the analysis of a company’s marketing strategies and market position in the backdrop of the theoretical framework of SWOT and BCG Matrix. Finally, the study also focuses on customer value creation by the brand and determine the co-creation model. The researcher concludes the paper with the help of recommendatory note.
Company Background
Toyota is a Japanese multinational automotive manufacturer founded in 1937 by Kiichiro Toyoda. The brand has been headquartered in Japan (Toyota-global.com, 2018). Toyota has been recognised as the world’s market leader in terms of sales of the hybrid electric motors and also regarded as one of the largest business to support the mass-market acceptance of hybrid vehicles crossways the world. It has been assessed that the brand has also been a market leader in the segment of hydrogen fuel-cell vehicles. The collective international sales of Toyota and Lexus hybrid vehicle models attained around 10 million milestones in the year 2017 (us and Policy, 2018). Toyota’s most famous segment Prius family has been top selling hybrid nameplate all over the world’s crossing more than 6 million units sold globally in the year 2017. The brand also focuses effectively on zero CO2 emission (Toyota-global.com, 2018). It collects 80% of the thermal energy that is generated through electrical production in its F-grid to use in the heating greenhouse, installing air conditions in factories and painting automobiles.
Current Performance
As far as overall performance is concerned, it may be noted that the Toyota Motor Corporation Australia Limited has been a Public listed company in the Australian market, that is ranked in 39 positions out of the top 2000 firms in the same market (Ibisworld.com.au., 2018). The emerging sales of latest cars have assisted the motor vehicle dealers and wholesalers, however, the service agents have been facilitated from the enhancing figures of registered motor cars on the Australian roads (Ibisworld.com.au., 2018). Nevertheless, domestic motor vehicle producers have mostly exited the Australian market, since consumer demands have shifted from locally produced large vehicles to imported ones. Toyota brand managed to generate its maximum income from the Motor Vehicle Parts Retailing segment and Motor Vehicle in the Australian automobile industry. In the year 2018, the brand has generated a total revenue of $8,930,798,000 involving its sales and other revenues.
Strength
The strong based on human resource or manpower has been one of the major strengths of Toyota. As per Prasad et al. (2018), when it comes to superior operating system and well-designed strategies, Toyota has always remained at the top amongst all other market leaders. Ranging from extensively practised administration system to lean production plans, Toyota has always set different examples for the future and as well as existing companies to conduct operation ethically and creatively. Moreover, it maintains huge product diversity with varieties starting from electric vehicles to hybrid cars. The brand has managed to spread its wings with its diversified product lines all over the Australian market.
Weakness
The major weakness of the brand is its total dependency on the suppliers, which makes its production a bit of sloth in the Australian market. Sometimes the brand has failed using the right assemble features in its latest car models, which can be one of its weakness. For example, in its C-HR model, the brand has used an automatic gearbox, which took slower progress to meet the sudden demand of the consumers (WhichCar, 2018). Sometimes, the brand also faced negative publicity due to its large vehicle recalls. Any kinds of vehicle withdrawal affect the overall brand reputation and Toyota has been no exception (Prasad et al. 2018). It has been identified that recall rates are considerably higher in Toyota, which relatively affects its goodwill.
Opportunity
The governmental support can be one of the opportunities for Toyota in the Australian market. It has been assessed that the Australian Government is understanding the fact it has been a tricky time for the several workers those are employed in the car-manufacturing and in associated sectors. Toyota has been acknowledged by the Australian government in the context of the changing the Australian automotive environment. Similarly, the brand would be supported by the legal authorities to bring further changes in the market and show its more innovative product lines. The figure below shows different types of innovation that a firm may adopt.
Figure 1: Different Types of Innovation
Prasad et al. (2018) mentioned that Australians are innovative, smart and creative and is creating space of brands that have the competence of coming up with creative and eco-friendly car models to transform the market. This has been a great opportunity for Toyota to improve its negative brand impression and astonish Australian population with its more innovations.
Threat
It has been identified that Toyota is being competed with huge brands in the Australian market, for example, Ford, Mitsubishi, Volkswagen and Hyundai. As per Prasad et al. (2018), it is extremely difficult to create a strong presence and to uphold the leading position in the competitive market. Since, the price of raw materials is enhanced, which is simultaneously uprising the expense of the final product. Moreover, the incessant threat of exchange rates has always existed. The moment revenues are sent to Japan in Yen currency it becomes quite lower in profit margin as compared to other nations’ currencies. These also impose a severe threat on the overall profit margin of Toyota.
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High Relative Market Share |
Low Relative Market Share |
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High Market Growth |
Question Mark This section is especially popular amongst the youth segment in the chosen market. Moreover, the hybrid cars like Corolla and Camry are also penetrating well in the market and creating its presence. Moreover, SUVs and MPVs the fortuners can be placed under the question market category (Toma and Naruo, 2017). Lastly, its biofuel, solar powered and hydrogen gas vehicles can be positioned therein. |
Star As per the previous year’s records, HiLux has been the top-selling car of Toyota in the Australian automobile market (motoring.com.au., 2018). Moreover, the models like Lexus-luxury Seda, Land Cruiser SUV and Prius hybrid are still found to be categorised in this segment. |
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Low Market Growth |
Cash Cow In this segment, the products places generate low market growth rate but bring a high market share (Farr, 2017. It has been recognised that the brands like Camry, Corolla Sedns, Innova, Venza-MPV and the small cares like Daihatsu can be placed under the cash cow category. All of these mentioned products help the brand with lower market growth but high shares. |
Dog In this category, the models like Celica, MR2 for youth segment, Camry / Corolla, the hybrid models can be found. Both are models are not doing well in the market and are found in the state of exiting. Furthermore, its petrol-based cars and Tundra, the pickup car is also positioned in the same category. |
Customer Value Creation
Toyota Australia has always been in the front position when it comes to innovation. It looks for smart, cost-effective and reliable solutions that add genuine value to the business. In its recreation of constantly high market share, Toyota produced the TUNE application as its single, nationwide point of contact for its customers and also to provide adequate support to its dealers (Nec.com.au., 2018). The figure below shows the customer value creation framework.
Figure 2: Customer Value Creation Framework
It has been determined that through the TUNE application, Toyota in the Australian market offers online assistance and training programs to its dealers to enhance profitability and sales. It has been also incorporated to maximise employee efficiency for improving customer retention ratio and fulfilment. In this context, the reference to customer value creation mix may also be relevant.
Figure 3: Customer Value Creation Mix
The mix suggests what is the potential choices of the future customers. In the given case, the firm’s marketing strategy involves superiority awards, security awareness and environmentally accountable practices for its potential dealers to create a goodwill before loyal Australian customers.
Co-Creation Model
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Dialogue Toyota tends to maintain a proper communication with its customers, suppliers and dealers. The brand introduces necessary applications through which stakeholders are notified about recent updates (Paley, 2017). This helps the brand to maintain a proper engagement with its customers and other dealers. |
Access The brand has been effective is accessing the right tools and methods as per emerging market requirements. For example, its lean operation system helps Toyota to conduct proper waste management of the left out stocks from production and recycle it as per necessary. |
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Risk Assessment The brand has a strong Research and Development unit who consistently conduct a survey on the market to assess its upcoming risks. Based on which the team also seek for suitable solutions to impose in the system to avoid threats uncertainties. |
Transparency Toyota tries to maintain utmost transparency with its customers and believes in complete customer satisfaction (Kumar et al. 2017). Therefore, the brand thoroughly tests its new as well as released models. And if issues found, it requests customers for a product recall. |
Conclusion
From the previous reading of the paper, it may be established that the project underscores Toyota to be in much a secured and leading position in the Australian market. It is true that market threats and emerging preferences of customers are imposing unavoidable challenges towards automobile brands. Yet, Toyota is far efficient with its innovation to meet the changing market dynamics. Finally, it may be concluded that a suitably designed and effective strategic marketing plan may significantly contribute towards the success of the business in terms of achievement of its long-term sustainability.
References:
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Farr, M., 2017. An Analysis of Car Ownership Costs: Determining Optimal Three Year Ownership Period.
Ibisworld.com.au (2018). Automotive Industry – Australia Industry Research Reports | IBISWorld. [online] Ibisworld.com.au. Available at: https://www.ibisworld.com.au/industry-trends/market-research-reports/thematic-reports/automotive-industry.html [Accessed 24 Aug. 2018].
Ibisworld.com.au (2018). Toyota Motor Corporation Australia Limited – Retail. [online] Ibisworld.com.au. Available at: https://www.ibisworld.com.au/australian-company-research-reports/retail-trade/toyota-motor-corporation-australia-limited-company.html [Accessed 24 Aug. 2018].
Kumar, V., Sharma, A. and Gupta, S., 2017. Accessing the influence of strategic marketing research on generating impact: moderating roles of models, journals, and estimation approaches. Journal of the Academy of Marketing Science, 45(2), pp.164-185.
motoring.com.au (2018). Toyota Australia profits up – motoring.com.au. [online] motoring.com.au. Available at: https://www.motoring.com.au/toyota-australia-profits-up-113245 [Accessed 24 Aug. 2018].
Nec.com.au (2018). [online] Nec.com.au. Available at: https://nec.com.au/solutions/application/files/2314/9930/8988/nec-case-study_toyota-australia.pdf [Accessed 24 Aug. 2018].
Paley, N., 2017. How to Develop a Strategic Marketing Plan: A step-by-step guide. Routledge.
Prasad, S., Khanduja, D. and Sharma, S.K., 2018. Integration of SWOT analysis with hybrid modified TOPSIS for the lean strategy evaluation. Proceedings of the Institution of Mechanical Engineers, Part B: Journal of Engineering Manufacture, 232(7), pp.1295-1309.
Toma, S.G. and Naruo, S., 2017. Total Quality Management and Business Excellence: The Best Practices at Toyota Motor Corporation. Amfiteatru Economic Journal, 19(45), pp.566-580.
Toyota-global.com (2018). [online] Available at: https://www.toyota-global.com/). [Accessed 24 Aug. 2018].
us, C. and Policy, P. (2018). Worldwide Sales of Toyota Hybrids Surpass 10 Million Units. [online] Worldwide Sales of Toyota Hybrids Surpass 10 Million Units. Available at: https://newsroom.toyota.eu/global-sales-of-toyota-hybrids-reach-10-million/ [Accessed 24 Aug. 2018].
WhichCar (2018). 2017 Toyota C-HR Quick Review | Strengths & Weaknesses. [online] WhichCar. Available at: https://www.whichcar.com.au/car-reviews/2017-toyota-c-hr-quick-review-1 [Accessed 24 Aug. 2018].
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