Analysis of Toyota Motor in the UK - Case Study Example

MARKETING MARKETING PLAN FOR TOYOTA Introduction There has been competition especially in the motor industry in the recent past. Toyota Motors has not been on the exemption side. To be on the competitive advantage it has to develop appropriate strategies and marketing plan that will enable it to continue remaining a giant in this industry. The company was founded by Sakichi Toyoda in 1867.It has sold billion of volumes of vehicles since it was translated to Toyota motor in 1937.Since then the marketing plan and the strategies have changed significantly. (Anonymous, 2008) 2. Executive summary Toyota motors which started in 1867 have strategies that have enabled it to stand to stand out as a giant in the motor industries for many years. It uses opportunities of advancement in technology to be able to stand out in its competition. It has strengths of offering goods of high quality with low prices. This has increased its buyers power since many of them have perceived that the goods are of high quality is able to source vendors who offer the raw materials with low prices and this intern makes the company to offer quality products at a low price. (Anonymous, 2008). The company has also put in place the important programs that enable it be at competitive advantage. The company ensures that there is constant evaluation of their performance through the number of sales and the feedback from their customers. They also use poka yoke which is a mistake proofing mechanism to ensure that the goods that have been produced have no mistake and this ensures quality. 3. Situational Analysis This involves the SWOT analysis. This has been vital to reveal the strength, Weaknesses, opportunities and the threats of the company. The strength of Toyota Motor includes an established brand which has been present for many years. This brand is well known across the UK and many people have perceived the products to be durable and strong. This has enabled it to sell increasing its profitability significantly. Strength includes well established network across the globe. This enables it to sell many volumes due to the network. (Godin, 2010) The weakness of the company includes poor coordination on the research of customer’s demands and needs. Most customers prefer vehicles that are not fuel guzzler and the vehicles that use petrol rather than diesel. This ought to be implemented so as to raise the sales volume even much higher. (Godin, 2010) The company has also opportunities. With the advancement in technology, Toyota motor is using the technology so as to be in the competitive advantage. The company sets mechanism in some of their vehicle to sense if one is too drunk to drive. They also take the advantage of the application of renewable energy such as solar and befouls for their vehicles. The company has (Pol, 2007) The main threat that the company accrues include the competitors which include the Honda Motor Company and the Ford Motors who are also establishing their brands across the globe. They also tend to open the stores where Toyota has opened and this brings very tough competition. TOWS Analysis This matrix has identified the external opportunities and threats and compared them to a company’s internal strengths and weaknesses. Toyota Motors uses its strengths such as established brand and networks to capitalize the opportunity of the technology. This implies that established networks have created more markets and this makes the company use systems that will enable it to make fleet of vehicles to meet demand. This appropriate usage of the strengths has enabled it to be at competitive advantage avoiding the threats. With the advancement in technology which is an opportunity, the company is able to nullify the weakness of poor coordination with the customers. Customers can now be communicated to effectively. (Porter, 2008) The table below shows the tows matrix; TOWS MATRIX STRENGTHS -Established brand product -Durable products -Established networks WEAKNESS -Poor coordination in research -Poor customer relation OPPORTUNITIES -Technological systems -Sensor in vehicles -Renewable energy in vehicles SO strategy -customer focus -increased customer loyalty -increased marketing -expansion Increased units WO strategy -Communications systems -Investment in research THREATS -Competitors-Honda and Ford ST strategy -Quality goods -Low prices -More online sell -Most advertising WT strategy -Avoid customer ignorance The company is also affected by external forces in the course of the administration of its strategies. The company is also affected by the political moves. There is political challenge whether the company should be public or private. The tax policy has not favored the company since taxes have risen significantly. (Godin, 2010) The company is also affected by the economic factors such as the fluctuating exchange rates that often disadvantage the company. The disposable income of consumers has become low in the recent past. The company is instilling strategies to correct these factors. The company is also affected by social factors such as population growth and health consiquences.The population has risen significantly rising the costs of living. The marginal propensity to consume or to buy the vehicle has reduced because most families consider caring for families than having these luxuries. The company technological factors have enabled it to effectively communicate its brands to its segment. New ways have been formed to distribute its products across UK.The new networks of communication across UK has facilitated the access of the product. (Porter, 2008) The environmental factors have also affected the progress of the company. This includes the carbon foot print, target set by the government. In the recent past the company has also found it difficult to source the raw materials. They are challenges in terms of the legal requirement. This includes the need for minimal noise by the government for the sake of health and safety for its citizens. The prices and the service quality of the company differ and Toyota seems to on the competitive advantage in terms of price and service (Mike, 2009) Brand Type Price Service Toyota Toyota yaris Toyota camry Toyota prius Toyota venza $ 17620 $22907 $28005 $30790 After sales service, faster 5 years warrant Honda Honda ridgeline Honda pilot Honda odyssey Honda insight $29575 $39670 $38825 $30575 No after sale service, slower 3yrs max warrant Ford Ford Cmax energy Ford E-150 Ford explorer Ford F-250 $31635 $30230 $30015 $30035 No after sake service, slower service,3 yrs max warrant Table 1 The five sources that enhance its competition include: (Godin, 2010) I. Supplier power. This company has supplies of different parts of vehicles from china, Singapore, USA and Germany. The company has set that there is easy switching of different suppliers which is often caused by the price and quality of raw material. This is to enable them remain in the competitive advantage. II. Buyer power. Due to the established brand across the UK, the company has many customers make suggestion of the prices through feedback. This has enabled it to beat many in the competition. III. Competitive rivary.There are few competitors offering undifferentiated products in the markets. Honda and Ford Company brands have not been established that much and therefore Toyota continues to dominate in its market share. IV. Threat of substitution. There is a threat of substitution, some of the saloon vehicles made by Honda and Toyota looks similar. It has taken customers to make close observation to note the brand difference. Toyota Company has set the brand so that it is easy to identify. The company is using longer warrants to enable it to be different V. Threats of new entry. There has been threat of new entry to the market. Honda Company and Ford have threatened to enter into the profitable segments that have been accrued by the company. These company strategies to open more branches in the segments to remain at the competitive advantage. Value chain Toyota Company has been on the move to create value for its customers. The activities that have been used are performed in a way to determine costs and affects profits. (Porter, 2008) I. The inbound logistics which involves supplier relationship is important for the company. The company chooses supplies that provides raw material at a low price so that the company may value its products at a competitive price. II. The operation systems of Toyota are made in such a way to involve Poka Yoke (mistake proofing) so as to increase the value of the products. III. Outbound logistics. The company distribution networks are spread across the globe. The company has chosen to offer after sales service in its marketing and sales. This is to enable it to beat its competitors. IV. The company has also strategized to source for the vendors who have best prices of raw materials so that it would create value of their products. V. The company also uses the Toyota Production System to ensure that the company produces the vehicles that are high quality and meets the customers demand. Market Analysis The market that Toyota is operating in is a perfect competition market where there are many competitors who enter and leave. The company is strategizing to produce quality vehicles at lower cost of production which will enable it to offer lower costs to be on the competitive advantage over Honda and Ford. (Godin, 2010). The company has strategized in such a way that it enables it to be on the competitive advantage. The company uses a higher number years for its warrants. This is to ensure that the quality of the products is always high and free from defects. The company has opened its stores across the globe so as to meet the customers demand in every corner. 4. Segment, Target and position The market segment of Toyota motors is undergoing entry threats. This segments that are considered to be more profitable in terms of sales volume. The company has strategized to beat competition through opening of more braches upon the places to ensure that are at a competitive advantage. There is completive rivalry in terms of target in the market. More competition is presents and Honda and Ford tend to target the same market that Toyota is targeting. Toyota has strategized by increasing the brand name and setting an affordable price. Toyota Motors have positioned their products to influence the buyer power. Many costumers have the perception that Toyota products are the best and this has enabled it to beat its competitors. The warrant is favorably to customers. (Pol, 2007) Analysis Toyota Motors unique selling point spans from having lowest costs in the market. These costs are affordable by many consumers. The quality is high with the affordable price and this makes it to stand in the competition. (Porter, 2008) The core competency of the product involves products which are durable with low prices so as to increase the affordability of the customers. 5. Industry life cycle The Toyota Company is at stabilization/maturity phase after undergoing through the pioneering, growth and mature growth phases. The company has strategized through low prizes and quality products to meet significant competition and also the deceleration phase. (Anonymous, 2008) 6. Objectives I. Sales Target. The company has strategized to offer low price product/vehicle of high quality. The marketing of products have created perception too many customers that it is the best. II. Logistics. The company finds suppliers who are able to offer low prices so that the company may have low manufacturing costs. The inventory costs are also reduced as the company ensures that vehicles are delivers to their branches after manufacturing. This enables the company to offer low costs to their products. (Anonymous, 2008) III. Advertisement agency. The company has also online purchases and produces regular journals for the products to be advertised. The products are advertised through the media and websites. Marketing programes Toyota Motors have marketing programes that are designed to meet the 7ps. (Godin, 2010) I. The products are branded with a unique sign to identify that the product has been made by Toyota Motors. II. The prices of the products are low and there is the price list of the products on the net The price has been positioned. To have discounts and also credit offers. III. Promotions are done through the branding of the product, sales promotions and marketing communication through the media and journals. IV. The places where the company is set include the segmented channels, trade channels and sales support. All this enables the company to effectively market its products. V. People. There are individuals that have been placed on the marketing activities and others have also been placed on the customers contacts. Marketing is key for the company to reach the customers and therefore Toyota has strategized by delegating tasks to individual. VI. Process of the company will basically include the customer focus. The company has also endowed in research and development to identify the needs of the customers. This research is key to note the specific needs of the needs of the company. VII. There is physical evidence from the sales contact experience where the company is able to get feedback of its sales.The contact persons are essential in the company to retain the customers. Due to the competition in the market. There is usually the need to retain the customers. 8. Control and Evaluation The company’s duty is to ensure that goods are produced with high quality and that the price is low. This is controlled through ensuring that they get vendors who give raw materials at a low price. This will enable the company to offer the products at the low price. (Anonymous, 2008)The company ensures that their is effective measurement of their progress. This is usually confirmed through the number of sales. When the number of sales is high, the company will note that the price is comfortable for its customers.Ordinarilly,when there is shift in price, the sales usually lowers and this will pose an indication to the company. The number of feedbacks that the company receives also acts as a control to the company that it is doing well. The poka yoke mechanisms acts as a mistake proof to nullify all the possible mistakes that may happen in the course of construction of the vehicles. This ensures that the goods are of high quality. Objective Measurement Low price Number of sales Customers satisfaction-feedback Quality product Number of sales Poka yoke Customers satisfaction-feedbacks 9. Conclusion In conclusion Toyota Motors will continue to remain a giant since it is working on its strengths of low prices and also produces the goods of high quality. This is because most customers have the behavior of going for quality products but with low prices. This is due to their nature of saving. The company has understood this trend and is taking advantage over other companies. This has enabled it to remain always at the competitive advantage since it is practicing the mechanisms of retaining the tactics. This has been vital in the progress of the company. (Mike, 2009) Works Cited Anonymous. (2008). Toyota-always a better way. Retrieved December 2014, from http://www.toyota.co.uk/ Godin, S. (2010). Marketing: Trasforming business. Mc Gill Hall. Michael, P. (2010). Competitive Advatage. Mc-Gill Hall. Mike, P. (2009). Motor trend. Retrieved 2014, from http://www.motortrend.com/new_cars/01/ford/ Pol, M. (2007). Understanding how value is created within the organisation. Retrieved December 2014, from http://www.mindtools.com/pages/article/newSTR_66.htm Porter, M. (2008). Competitive Strategy: Techniques for Analyzing Industries and Competitors . Mc-Gill Hall. Read More