Describe about the Integrated Marketing Communication Plan of Toyota .
Toyota has different range of products and its product lines in Canada include Toyota automobiles, lexus, Welcab, Marine, accessories, spare parts and engines. Automobiles of the company are deemed most popular. Toyota Company based in Canada focuses on two major consumer segmentations namely demographic and psychographic segmentations. Considering the demographic market segment of Toyota Company, it has been observed that the company has targeted families and within this segment the upper middle high-income group. To deal with increasing competition the Canadian market, the company differentiates its automobiles in consideration to cost, fuel efficiency, brand image style and several other competitive variables.
The brand positioning statement of Toyota indicates that the company manufactures superior quality cars with new technologies in an energy saving approach. Moreover, the company has positioned itself to be highly environment conscious that works hard in developing clean world and prosperous society. Based on its strong performance in the Canadian automobile market, Toyota Company is anticipated to experience increasing sales and the profit is also anticipated to increase by 27%. The company’s profits are anticipated to be increased by double amounts. Moreover, consolidated vehicle sales in the future years are anticipated to increase by 3% that indicates its high-income growth.
Integrated Marketing Communications serves as an expression of modern and traditional marketing strategies in order to increase the communication of regular promotional messages that is conveyed to the stakeholders of the company. Marketing communications within the global markets are needed to be conducted with care. IMC serves as the coordination and integration of all the marketing communications tools and sources within the organization within a seamless program that increases the impact on customers and several end users in decreased costs (Toyota Canada., 2016). Communication serves as a vital part of the export marketing activities and that can also be deemed necessary to offer information that buyers require to make purchasing decisions.
Toyota Canada operates its business as a dealer of new and uses Vehicles of Toyota. The company offers cars, SUV’s, pickup trucks, crossovers and hybrids. The company offers spare parts, roadside assistance, offers spare parts, collision repair along with several other service (Terpstra et al. 2012). The objective of the paper is to develop an international marketing communication plan for Toyota Company of Canada. The paper will conduct market and situation evaluation, market segmentation and customer evaluation, strategies and tactics of the company along with developing budgets and control plan for the company.
Economic Environment
Considering the financial crisis, Canadian government developed certain remedy policy in order to safeguard all the important industry including automobile industry. Moreover, the Canadian Federal Reserve Board developed quantitative easing policy that results in international asset price inflation in order to safeguard Canadian trade (Yeshin 2012). For this reason, such policies can help all the nations to protect their own automobile industries along with safeguarding other nation’s automobile company to gain increased market share in Canada. Toyota asked from some amount of loan from Canadian government and the loan policies of the country facilitates the automobile company to occupy increased market shares.
Toyota, Canada experiences the impacts of socio-cultural factors. The social factors those impact the company’s macro-environment are increasing interest of the consumers on hybrid cars and high demand for the electric cars those serve as a great opportunity (Percy 2014). On the other hand, increasing wealth gap can serve as a threat for the automobile company. The company has an increasing opportunity to manufacture more products that can satisfy increasing interest of consumers in the hybrid and electric cars.
Technical factors those influence Toyota in Canada, particularly as the company is involved in technological business are considered to included increased use of e-commerce and the trend of mobile technology as an opportunities for the company. Cybercrime serves threat for the company (Westwood 2013). Considering this, Toyota Company has increased opportunity in enhancing its e-commerce capabilities or gain advantage from third party e-commerce service offers for its some products sale like spare parts. Moreover, the company also has increased opportunity to advance its mobile applications for increasing consumer loyalty and engagement.
Toyota Company in Canada experienced an increased yearly sale record within the past 10 months. Toyota is recently most profitable and the largest automobile organization within Canada. The most competitive business rivals with which Toyota competes is with Ford and Hyundai to gain increased competitive advantage within the nation. The company operates within the automobile industry (Morgan et al. 2012). For the last five years, the automobile manufactures faced issues because of increasing fuel prices and boosting environmental concerns that shifted consumers’ preferences from increased fuel consuming cars to the fuel-efficient cars.
Toyota Company deals with strong force of competition. In case of Toyota, the following external factors sere as the major contributors to the increased force of competitive rivalry within the industry environment such as increased aggressiveness of companies and increased variety and the company differentiation. Moreover, it has decreased number of large companies. Automobile companies in Canada are deemed to remain aggressive against each other in consideration to the factors of marketing and innovation (West et al. 2015). To deal with increasing competition the Canadian market, the company differentiates its automobiles in consideration to cost, fuel efficiency, brand image style and several other competitive variables.
Table 1: SWOT Analysis of Toyota
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Strengths · Positioned itself as world’s largest car manufacturer and among the top car manufacturer in Canada · Superior quality and reliable image · “Just-in-Time” manufacturing · Corolla served as best selling cars · Several other renowned brands |
Weaknesses · Week understanding of Canadian market · Effective distribution network · Low market share in Canada in comparison to Europe |
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Opportunities · Online activities and buying · Development of new models · Superior hybrid technology |
Threats · Increasing number of competitors in Canada such as Ford, BMW and Honda · Increasing taxation · Increase in fuel prices
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(Source: Mcdonald 2016)
Market Segmentation
Toyota Company based in Canada focuses on two major consumer segmentations namely demographic and psychographic segmentations. Considering the demographic market segment of Toyota Company, it has been observed that the company has targeted families and within this segment the upper middle high income group (Parento & Strausbaugh-Hutchinson 2014). Parado and Camry are some of the company’s cars of the segment those are designed for the ones those have buying power to acquire the cars of the company.
Another consumer market segment is psychographic segments, Toyota has targeted the family size and along with this within this segment people of the high class. The company has also targeted high-income group those have a sporty attitude is considered by the Toyota in manufacturing Toyota Atias sports model as well as Toyota Fortuner. These sports cars facilitate in enhancing and increasing their sense and sports passion. Considering the demand of this target consumer segment the company has decides to manufactured SUV’s, MUV’s and Sedan (Berthon et al. 2012).
Toyota Company in Canada has increased focus on Canadian consumers as private sector growth decreases its dependence on the government business. The Japanese automaker has increased presence in 54 nations and in Canada. In the Canadian market, it has been observed that consumer marketing is deemed increasingly important in consideration to the fact that in the Canadian states, Toyota deals with the government (Tasiyana Kahuni & Rowley 2013). Within the Canadian market, the company is observed to deal with increased competition from other business rivals such as Ford. These competitors are observed to have increase experience in developing and marketing cars in several developing markets.
Mission Statement
The mission statement of Toyota Canada could be summarised as follows:
The business objectives of Toyota Canada are briefly identified as follows:
Toyota has been purchasing and acquiring all the modern and advanced technologies to improve the production process, which, in turn, improve the quality of its vehicles. The organisation has formed Departmental Bureaus to improve its staff productivity. As a result, it has helped in improving quality of services. The company has recruited experienced and professional staffs in order to facilitate better communication with the customers from the entry into the shops until exit. The excellent follow-up services has further attributed to the satisfaction level of the consumers.
In order to maintain the leading market position, Toyota appoints market research agencies from time to time in Canada to know about the changing trends and demands of the customers. Finally, the use of fuel-efficient machineries in the form of introduction of combined heat and power initiative has helped Toyota in minimising 600,000 tonnes of carbon dioxide emissions (Toyota Canada, 2016).
Pricing Strategy
Pricing strategy for Toyota Company is developed based on the company’s business goals, needs of the target audience, market competition and substitutes presented by the competitors. The business objective of the company is to increase its profitability, tap new consumer segment and to gain larger market share. Though the pricing strategy, Toyota Company intends keep its operational costs low that will help in gaining high profits. As the company produces highly differentiated cars those are of high value premium pricing strategy is deemed suitable for the company’s offerings. Value based premium pricing strategy is to be developed as the target consumers belong to high income group and tend to prefer cars having new technology and offers great value. The three major competitors of the company are Ford, Hyundai and Chrysler. These competitors of the company are observed to follow value based pricing as they intend to grab consumer base by understanding their willingness to pay and developing products a pr their needs. Considering the pricing strategy of its competitors, Toyota Company intends to follow value based premium pricing strategy that will make its target consumers aware of the superior value offered by the company’s cars.
Toyota has different range of products and its product lines in Canada include Toyota automobiles, lexus, Welcab, Marine, accessories, spare parts and engines. Automobiles of the company are deemed most popular. Moreover, lexus range of the company has luxurious automobiles and the company manufactures engines, spare parts, accessories and marine products (Schlegelmilch 2016).
Toyota Company’s promotion strategy in Canada encompasses all the strategies of the marketing communications. The company employs the following promotional activities such as personal selling, public relations, advertising, direct selling and sales promotion. The company in Canada employs personal selling by means of dealerships sales personnel those personally promotes products to certain public relations like “Toyota Together Green Program” which supports environment initiatives for gaining huge consumer attention (Castronovo & Huang 2012).
Dealerships serve as Toyota Company’s major places for its product distribution. The following are the main places within Toyota Company’s distribution strategy such as retailers and dealerships. The dealerships of the company are where most of the transactions take place. In contrast, some other retailers such as auto supply stores also offer their company with several spare parts and accessories (Shimp & Andrews 2012).
Toyota Company follows the strategy of “respect for people” serves as the major aspect of the business philosophy. The company follows the “The Toyota Way” strategy ensued that the company’s managers showed respect for people (Ferrell & Hartline 2012). The management is also focused on effectively controlling the workforce by considering individual metrics. The management collectively worked with the company’s employees to develop standard work for all tasks. Moreover, the company has developed visual control with the status boards so that all individuals can carry on with their work.
Toyota Company’s production system is a manner of “making things” that is considered as “lean manufacturing system” and “just-in-time” system. This has turned out to be well known (Ferrell & Hartline 2012). Such production control system has been established relied on years of regular improvements with an intention of making the vehicles highly demanded by consumers in the quickest and efficient manner for offering vehicles in the market as fast as possible.
The responsibilities of the company include setting goals and accessing the progress of the key performance indicators set by the company. The corporate responsibilities of Toyota Company are to contribute to the sustainable development of the community in which it operates its business (Ferrell & Hartline 2012). The priority of Toyota’s top management is to enhance the shareholders value steadily over an extended term.
The marketing, expense and marketing budgets have been prepared for Toyota in accordance with the proposed marketing strategy (Refer to Appendices, Appendix 1, Appendix 2 and Appendix 3).
The major risks, which confront the business operations of Toyota in Canada is the weaker distribution channels of network. Due to such drawback, the organisation has failed to capture the mass market of the nation. In order to minimise such risk, a market research agency could be appointed to seek information about the available channels. Accordingly, the selection of channels could be made to increase its presence in the nation. The lack of promotional tools to generate the awareness of the Canadian customers is another major risk, which has resulted in low market share of Toyota. In order to deal with such risk, the promotional strategy has been proposed to increase the same.
The global rise in fuel prices has increased the expenditures for Toyota. Accordingly, a slight increase in the selling price has been made in the sales budget to adjust with the rising expenditures. Finally, the competition risk could be minimised by product diversification and change in the long-term strategic plan.
Conclusion:
The objective of the paper is to develop an international marketing communication plan for Toyota Company of Canada. The paper will conduct market and situation evaluation, market segmentation and customer evaluation, strategies and tactics of the company along with developing budgets and control plan for the company. The report revealed that Canadian Federal Reserve Board developed quantitative easing policy that results in international asset price inflation in order to safeguard Canadian trade. Increasing wealth gap can serve as a threat for the automobile company. The company has an increasing opportunity to manufacture more products that can satisfy increasing interest of consumers in the hybrid and electric cars.
The company has targeted high-income group those have a sporty attitude is considered by the Toyota in manufacturing Toyota Atias sports model as well as Toyota Fortuner. Toyota uses market-oriented pricing strategy for determining prices relied on market conditions. The pricing strategy of Toyota for its high-end cars follows value based pricing, as they are premium products. Toyota Company’s promotion strategy in Canada encompasses all the strategies of the marketing communications. The company employs the following promotional activities such as personal selling, public relations, advertising, direct selling and sales promotion.
References
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