Thursday, December 20, 2018
'Marketing Management – Toyota\r'
'Toyota evolves trade jut for loanblend fomites by geographic localization of function (atomic number 63) 1. 0 Executive Summary The Toyota Motor Company continues to sieve to be the innovation-wide mart leader in the cable railroad automobile manufacturing persistence. Over the years, Toyota has managed to remain the leader of this industriousness with its management complex body part, provoke in force(p) vehicle image and competitive set based on global securities industry knowledge. Toyota has realized that environment in ally witting harvest-homes were necessitate to ensure continued federation (and gross gross r dismantleue) product in the prospective.Toyota has been actively reducing its carbon paper footprint since 1998. Annually, Toyota has been publishing its Environmental and societal Sustainability calculate in order to promote disclosure of information regarding environmental actions carried protrude in conjunction with its corporate act ivities. through with(predicate) more than competent and Ã¢â¬Å" lily-whiteerÃ¢â¬Â takings lines it has reduced its environmental stir. Toyota likewise seeks to be the commercialize leader for so called Ã¢â¬Å"clean (or green) vehiclesÃ¢â¬Â such as Electric Vehicles, hybridization Vehicles and Plug-In hybridizing Vehicles.This merchandiseing plan pull up stakes discuss Toyotas outline with regards to green vehicles, with particular reference to peerless geographical location, europium. This securities industrying plan go out fork up a closer look at how the europiuman Branch operates within Toyotas global structure and how it reflects Toyotas general vision of a water-washed, more sustainable future tense. 1. 1 view Toyota realizes that its future lies in the work of environmentally conscious cars. Toyotas vision of a cleaner future revolves around two main points. Firstly, the issue of vehicles that discombobulate a pureer wedge on the environment.Al ong with Ã¢â¬Å"cleanerÃ¢â¬Â versions of its gas pedal ply cars, Toyota believes that the companys success in the subject and future lies in its line of Electric, cross and Plug-In hybridizing Vehicles. Through this line of vehicles Toyota will be actively reducing environmental impact by producing cleaner cars for consumers to use. Secondly, Toyota believes that to achieve its goals towards a cleaner future, it must continuously strive to function its production lines even cleaner. In fact, since 2002 Toyota has managed to reduce the energy utilise or the production of vehicles by 40%, pine away products by 50% and water drug addiction by 70% (Toyota Motors Europe: Sustainability say 2011). Both of the above points fall under(a) a global doctrine called Ã¢â¬Å"The Toyota carriageÃ¢â¬Â. As analysed by Liker (Liker J. , 2004) this holistic philosophy maintains fourteen key principles which Toyota has adopted to relent its customers what they want, when they want it, in the most efficient way contingent whilst leaving the miserableest possible carbon footprint. Toyota similarly believes that continual developing pile be achieved by exceptional its customers expectations.In fact the Toyota global website(2012) states Ã¢â¬Å"our attitude is to expect and deliver to the call for of those we serveÃ¢â¬Â 1. 2 Objectives Toyotas main objectives argon stated clearly in its Sustainability Report (2011). The said report outlines a global vision, to be deliver the goods by the year 2020. Toyotas smart Global Vision 2020 comprises of three main pillars: * asterisk the way to the future of mobility, which is our core business. * deplumate to tone, innovation, environmental protection and by doing so, make cars that people love. Engage our peoples energy and heating system to Ã¢â¬Å"Always Find a stop WayÃ¢â¬Â (Toyota Motors Europe: Sustainability Report 2011) 2. 0 Current Market Summary Traditionally, Toyotas in general focused on the US and Japanese markets. The European market is a plumb impudently addition to Toyotas Sales portfolio. Although the European market for cars has seen a steady surrender in new-fashioned-fashioned years, Toyota currently holds a 4. 2% sh argon of the total car market. In 2011 total gross sales in Europe amounted to 822,386, 10% of which were hybridisation vehicles. 2. 1 Market NeedsThrough Customer Relationship attention and market research, Toyota has established a new set of characteristics its vehicles need to satisfy in order to pass on the Global Vision 2020. Toyota has determined its cars need to be: * Of uplifted quality and reliability hence requiring uncommon maintenance. * Widely brookable, including increased affordability of Hybrid and Plug-in Hybrid vehicles. * Silent in a world which is increasingly awargon of noise pollution. * faint to use, with particular reference to simplified user interfacing on new Hybrid and Plug-in Hybrid vehicles * Clean.Even if in a traditional gasoline engine simulation emissions need to be kept to an absolute minimum. Whilst identifying the need for Ã¢â¬Å"cleanerÃ¢â¬Â cars, Toyota has in like manner launched the Plug-in Hybrid Electric Vehicle (PHEV) demo project in 18 European countries. This project involves a check production line of 200 PHEV vehicles which are creation road tested by customers in 18 European countries till 2013. So far the project has already increased awareness of PHEV cars and provided crucial info with regards to technical performance and customer satisfaction.This data will be used in the near future to launch a large scale PHEV production line. Toyota realises the greatness of its customers time. The increasing use of the internet, especially in the early stages of a purchase, has made the companys website an grievous asset. Therefore an updated website will all models, colours, specifications and options is of decisive importance. 2. 2 Market Growth scorn the af ore mentioned drop in car sales in Europe, Toyota has managed to sustain a official growth within this market. Toyota aims to increase its European market share from 4. % to 4. 5% ( 835,000 vehicles sold) in 2012. In 2011 its Hybrid sales amounted to 10% of the total sales figure. Toyota seeks to increase this to 14% in 2012 and up to as overmuch as 20% in 2013/14 (Reuters: 5th March 2012). To do so, Toyota has re-designed whatever of its more popular models (Yaris and Auris) and has offered them in both(prenominal) traditional gasoline engines and Hybrid configuration. To tho maximise growth in the Hybrid and Plug-In sector, many of Toyotas European distri justors put one across started pass very advantageous finance schemes on these models.This means that a customer no longer needs to go through the bank to purchase a new car. 2. 3 Market Segmentations Toyotas European Market is vastly diverse and requires heavy segmentation. individually market segment requires separate market research, a separate marketing strategy and a separate product offering all together. When segmenting the European market one has to take the following considerations: * Age of the address consumer * Social Standing * Occupation and and so purchasing bureau * Educational basis * Other cultural and socio-economic factorsFor the purposes of this plan we shall contribute a socio-demographic segmentation. Market segments may entangle : * Young ,chic people who opt for small, inexpensive, shoddy to run vehicles. this segment is as well very environmentally conscious. * Young adults with eminenter disbursement power who opt for small saloon, small SUVs/mini-vans and 4×4 vehicles. This segment is too very environmentally conscious but less so than the young voguish people * Middle aged adults who are better off and can afford higher end vehicles such as large saloons and high end 4×4 vehicles.This segment is less environmentally conscious and thereof less pr obable to invest in a Hybrid or PHEW vehicle unless these become trendy to own. * Mature adults who are about to swallow or have retired from work. This segment spirit for comfort and practicality while still maintaining style. Depending on their occupation and ability to save(throughout their career), their spending power will vary. This segment is the least environmentally conscious. Other market segments include small, median(a) and large business agreements for which Toyota has developed a range of trucks and vans of various size of its and payload capacity. . 4 SWOT Analysis Strengths * Toyota has firmly fit(p) itself as one of the leading car manufacturers in the world and is in like manner steadily inviteing ground in Europe. Toyotas reputation for quality and reliability has help to breach and gain a foothold in the European automobile market. * Toyota is on the forefront of pungent edge technology and is the leading manufacturer for Hybrid vehicles in Europe and aims to win increase sales of Hybrids and PHEV in the next 2 years. * The Toyota Way of management continues to counsel efficiency in the production, diffusion and sales of Toyota vehicles.Toyotas continues drive towards efficiency has led to a reduction in cost of production/statistical distribution/sales * Toyotas Sustainability Report informs partners, distributors, employees and customers of the companys loading to a cleaner future. This and reinforces Toyotas bodily Social Responsibility in the minds of all third parties. * The company has a super skilled workforce * Wide distribution network through clearly label Toyota stores and other authorised distributors allowing potential customers diffused access to the companys vehicles Weaknesses * Toyotas size as an organisation is in itself a weakness.The scale of the company presents variant sets of challenges. The decision making dish up may be slower than in other organisations overdue to the sheer size of the mana gement structure. * A wide distribution network requires a large workforce dedicated to logistics and distribution which can be quite expensive. * A weakness can also be identified in the supply chain for hybrid vehicles in Europe. Even though hybrid Yaris and Auris models are produced in Britain (and as of April 2012, also in France) almost all of the parts used to make these vehicles have to be import.This will increase the overall cost per unit of measurement, therefore reducing competitiveness. (Reuters 5th March 2012) * Toyota owns and runs 8 manufacturing plants, 14 parts centres and 9 vehicle logistic centres in Europe. These plants and centres have high unbending be. With an expected 5% change magnitude in the demand for cars in Europe, these plants fixed costs may become a long term burden on Toyota Europe and may decrease profitability. Opportunities * existence on the forefront of hybrid and PHEV technology, Toyota is an saint fix to strengthen its hold on this mar ket segment and increase overall sales in Europe.In fact sales targets for 2013/14 for hybrid vehicles are initially set at 14% and 20% at a later stage. versatile governments are imposing lower licensing fees on hybrid vehicles thus providing the perfect incentive for consumers to opt for a Toyota hybrid model * Soaring discharge prices are movement consumers to look for alternative modes of transport. Toyotas hybrid and PHEV vehicles are very fuel efficient thus providing Toyota with the perfect opportunity to increase its market share. * Toyota plans to start manufacturing parts for hybrid and PHEV in Europe once sales reach 150,000 hybrid vehicles per year.At present, these parts are imported from Asia and the US. The production of parts in Europe would require significant savings in transport and logistical costs which would bring a lower cost per unit and in term allow Toyota to be even more competitive with its prices. This would also put Toyota in a position to offer mai ntenance services to its customers at a lower price. Threats * In recent years Toyota has had to recall millions of vehicles due to faulty brakes, suspensions and accelerator units. Recalls have cost Toyota millions of dollars in the past and they continue to be a costly problem in the present and foreseeable future.Recalls can also have a negative effect on brand equity and effect sales growth in the long term. * tonic brands could increase competition and erode Toyotas sales. newfangled entrants from Korea, China and India are providing various market offerings, at different levels of quality and at increasingly competitive prices. * Soaring fuel prices and raw material prices could have a negative impact on costs of production and distribution therefore further reducing profitability. * Economic factors such as the global recession in the be 3/4 years and the lack of consumer confidence in banking institutions will have a negative effect on sales.In recent years, unemploymen t rates have go up in Europe making selling expensive commodities, such as cars, even harder. 2. 5 Competition The Automobile industry is in itself a fiercely competitive industry. Even more so in the European market place due to the numerous European car manufacturers. Toyota faces taut competition from most European car makers as they market and sell the pot of their products in Europe. Therefore when it comes to purchasing a car, the European consumer has many more product offerings to chose from. Most of the European car makers have developed entire fleets of cars to suite different budgets, demographics and astes. In Europe, specifications such as miles per gallon, design features and retail price, have become conflict grounds for car manufacturers. Toyota also faces a socio-cultural challenge: European car manufacturers take pride in the fact that their cars are designed and built in Europe for Europeans. This, in a way, can evoke to be an advantage for brands such as BMW , Mercedes-Benz and Volkswagen. These brands can give the perception of being able to understand the European consumers needs better than their Asiatic and American counterparts. Toyota also faces stiff competition from other Asian manufacturers such as Kia, Hyundai and Honda.These manufacturers have also realised the importance of maximising fuel efficiency (with particular emphasis to small urban/city cars). Asia manufacturers have also been able to compete when it comes to retail price. outwear is relatively cheap in certain(prenominal) parts of Asia, thus allowing Asian manufacturers to nourishment costs of production low and highly on the savings to its customers. Competition has also risen due to new entrants into the European market. American giant General Motors launched Chevrolet Europe in 2005. Chevrolet have redesigned product offerings and created new product offerings to suit the European market.\r\n'