Toyota's Public Relation Campaign - Case Study Example

Name: Professor: Institution: Course: Date: Organization background Toyota Company is one of the leading car manufacturing companies in the world. It assembles and distributes the cars and all its spare parts around the globe (Armstrong, & Kotler 2002). The firm’s good performance has been attributed to the efficient and effective management style that the company uses. Despite the fact that the company has efficient management style it also has other salient factors that contributes to its achievement in becoming the market leader (A Timeline of Toyota Recall Woes, 2010, February 11). The market structure that the company operates in is not yet defined, but some consider it to a monopoly structure; this is due to the fact that the company is a dominant market player in car manufacturing and exportation (Armstrong & Kotler, 2003). The company was faced with accelerator problem facing it to recall all its products back to the company (sticky pedal recall). 1. Goals The goal of the stick pedal recall is for Toyota public relations team to begin to think internationally how to improve its customer’s confidence and trust to its product after a denounced breakdown of faulty pedals ((Armstrong & Kotler, 2003). 2. Objectives Objectives for the stick pedals recall public relations program has both output and impact objectives. Impact objectives of the program include improving the confidence and trust of its consumers. The output objectives include organizing a new PR program, increasing press release submissions through all the PR media outlets and for the PR team participation in the new program (recall) (Toyota's President Getting Harsh PR Lesson, 2010). 3. Situation Analysis 3.1 Background In order to understand situational analysis of the company , it is important to undertake a SWOT analysis aimed at determining the Company’s available opportunities, threats, strengths as well as the weakness that the company experiences or is projected to experience in the near future (Chamberlin, 2009). 3.2 SWOT Analysis Weakness and strengths are termed to as internal factors of the company as the impacts or effects of these factors commence within the company, while the opportunities and the threats originate outside the company hence referred to as external factors. 4. Problem identification and solution Problem with the product warranty Toyota was able to extend warranties on its vehicles. This program was able to reassure Toyota consumers that the company will recall all its products if they are proved to be unsafe. The company ensure customer safety and compensation will also be honoured for a long time. PR campaign efforts problems After the recall Toyota faced diminishing sales as a result of power PR campaign efforts. However, the company was able to increase its PR campaign efforts so as increase client’s confidence on its products despite the stick pedals recall. 5. Message to Target Market Message to our target Market: Toyota is concerned and committed to international and national safety. The company is also dedicated to provide excellent services to its clients. Each of our products is designed to target specific market interests. Our design criteria range from capacity, exterior appearance (shape and color) and speed as well as the maintenance of the stick pedal that caused a lot of mayhem to our clients. Our clients will be offered with high speed, smalls as well as two and more sit model cars for single and multi-user individuals.With respect to demographics the company seeks to manufacture vehicles that can be sustain on smooth and rough tarmac roads as well as other road surfaces such as off road terrains. Toyota Company is ready to produce significant products and vehicles that are less expensive as well as easily available. This is a significant factor that will enable the company to have a major market boost as it is projecting to hold most markets, as it is going to place a number of strategies to reach its targeted market. Market Strategies This will consist of 4 PR campaign mix elements designed to fit the current market as well as the targeted market in terms of their ability and needs to access services and products. 5.1 Product Strategy The company has a perception from its competitors that it is moving with a mass production strategy that is enabled to have a vast sale in the market. Product strategy has included hybrid product strategy; aimed at doubling the amount of production from the arising needs of the targeted market (Thomas, 2001). 5.2 Price Strategy Raising form this strategy the company has improved its reputation from the production of high quality vehicles and products sold at reasonable prices (Kirrane, 1990). The company has also been implementing discreet pricing strategies through its price differentiation measures aimed at competing effectively with other automobile producers. 5.3 Location Strategy Being one of the leading producers of automobiles, Toyota has always positioned itself all over the globe giving it a clear cut within the external market. Within the next three years the company is working towards attaining 35% of market share as well as being the world top supplier of automobiles products. 5.4 Promotion Strategy The company has the gats of using pricing strategies mechanisms which will give it a competitive advantage among its competitors. This is a mechanism aimed at PR campaign itself so that it can hold the market share. This is aimed at achieving the highest level of market index in the market. 6. Implementation Dealing with the consumers is one of the most important aspects of this PR campaign. The company should make sure that it works with motivated members of consumers as this results in positive impacts to its production both qualitatively and quantitatively (The Toyota Recall Crisis, 2010). Toyota will able to manage this by scheming up rewarding strategies like assisting the clients purchasing their own cars by subsidizing the car prices. The company will also make sure it trains its employees so that they can be equipped with latest automobile skills needed in the contemporary market (Hiroshu, 2003). 7. Tactical PR campaign Activities Toyota has taken a step in becoming one of the most sustainable Automobile developers in the world (Lascelles, 2006). This will call for advanced innovations that will call for expenditure to attain its goals or objectives. These are the activities that the company will embark on to attain its objectives and goals. 8. Evaluation There is going to be evaluation and monitoring teams that are intended to watch over all the progress of the company towards the realization of its strategic goals. The team will always watch the short term goals and the corrections made once the targets are missed since they are important is attaining long term goals (Hogan, Dave, 2010). Lately, the company has made clear steps towards production of hybrid vehicles; so far the market has been improving the terms of the overall receptions of hybrid brands. The other aspect being considered in this case is the overall consideration of the pricing mechanism program that has been introduced. The market has been caught unawares with the production of consumer friendly Toyota products. The company has been able to come up with differentiation programs for its products that have great market shares. It is projected to reach and improve the targeted market within 3 years and this will be determined by the total number of market reached as well as the growth rates (Akio Toyoda, 2010, June 25). 9. Recommendation The company should make sure that the external market has the best outlook concerning its products. For these to be possible it should makes sure that all the employees working in its production and assembly points get the best training regularly as every automobile changes occur. Before the company attains its expansion of market it should seek to determine the demand and the automobile culture of the people as it affects the purchasing power of vehicles. Appendix Press Release For Immediate Release September 30, 2013 Contact: TOYOTA ANNOUNCES A RECALL OF ITS CARS AND VEHICLES IN ORDER TO SLOVE THE PROBLEM OF STICK PEDELS This morning Toyota announces its plan to recall all its vehicles which have the problems with their pedals, benefiting its clients as well as reducing the high risks that the pedals have been causing to clients. “We at Toyota are pleased to announce the recall of all the vehicles from our clients,” said Mike Michels, the vice president of external communications. “The intention for the recall is to ensure that the safety of the people is placed first before the company’s interest”. We are also please to inform the general public and to our customers at large that the service will be free and that all the clients who wish to return their cars to do so. Our warranty period will also be increased so as to cushion our clients in the future. For more information on the recall please visit www.toyota.com References A Timeline of Toyota Recall Woes. (2010, February 11). CNN.com, Retrieved from http://www.cnn.com/2010/US/02/10/timeline.toyota/index.html?hpt=C2 Akio Toyoda. (2010, June 25). The New York Times, Retrieved from http://topics.nytimes.com/top/reference/timestopics/people/t/akio_toyoda/index.html Armstrong, G., & Kotler, P. (2002). PR campaign: an introduction (International edition). New Jersey: Prentice Hall. Retrieved October 7, 2010 from http://www.pearsonhighered.com/educator/product/PR campaign-An-Introduction-7E/9780131424104.page Armstrong, G., & Kotler, P. (2003). PR campaign: an introduction. New Jersey: Prentice Hall. Retrieved October 7, 2010 from Booz, A. (2007). Striving for growth: Best practices in retail banking sales and service channels. New Jersey: Prentice Hall. Retrieved October 7, 2010 from http://www.strategy-business.com/media/file/leading_ideas-20071127.pdf ember.html Hogan, Dave. (2010, February 24). Toyota's pr crisis offers lessons for other businesses. AbileneBiz, Retrieved from http://www.reporternews.com/news/2010/feb/24/toyotas- prcrisis-offers-lessons-other-businesses/ Reid, T.R. (1999). Confucius lives next door. New York: Random House, Inc. Toyota, Honda Lead Softer Car Sales in March . (2011, April 5). HeraldSun.com, Retrieved from http://www.heraldsun.com.au/news/breaking-news/toyota-honda-lead-softer-car-sales- inmarch/story-e6frf7ko-1226034037617 Toyota's President Getting Harsh PR Lesson. (2010, February 24). CBS.com, Retrieved from http://www.cbsnews.com/stories/2010/02/24/earlyshow/main6238458.shtml The Toyota Recall Crisis. (n.d.). MotorTrend.com, Retrieved from http://www.motortrend.com/features/auto_news/2010/112_1001_toyota_recall_crisis/nov ember.html Read More