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Toyota Automobile Corporation

Autor:   •  November 6, 2018  •  1,980 Words (8 Pages)  •  185 Views

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will be development in technology stages.

Every business revolves around customers. The success of any business depends on the identifications of its customer groups, their needs, tastes, etc and also by providing high levels of customer service. Companies should segment their customer markets and supply those goods that best suits the segment of customers identified (Jain et al. 2006).

Customers are anyone who buys or rents from the company. Customer are the most important micro environmental factor that affect company as they survive on meeting the wants and needs of the customer and failure to do so will result in the company failing. Toyota study their customers and saw that they wanted a car with better fuel consumption and as a result Toyota decided to make the Prius, their first hybrid car.

Toyota dealt with their customers by setting up website to educate the customers about the Toyota Prius. They took advantage of Earth Day to send out green seed cards shaped like Toyota’s logo to prospective buyers and they also gave away some green Prius at Earth Day events. However, Toyota did not recognize that consumers normally don’t buy cars for the saving in the long-run so "fuel savings are not going to be the key it convincing people to purchase the Prius" [principles of marketing]. As a result of this Toyota have asked governments to give tax cuts to cars with better fuel consumption.

Organizations have to modify and adjust their activities based on actions and reactions of its competitors. In order to have competitive edge, organizations need to understand the strategies formed by their competitors and respond timely by modifying their strategies to be the leader (Jain et al. 2006). If we analyze Toyota’s method in competition, we can see that it succeeded in preservation its competitive edge. While, opponents like Citroen have vehicles that also as efficient as Prius (Toyota). However, Toyota is still leader in this component. They have reached this reputation because of marketing strategy, they have grabbed imaginations of people by being the first Hybrid Car and better using advertisement. It means Toyota’s key point of interest was to be better ready to focus the needs and cravings of buyers before they really express them. Toyota, maybe in view of its initial disappointments in the US’s commercial center, led exploration to perceive the administrative, natural and authoritative business drivers that would being the end decipher into future obtaining variables for shoppers. This deftness gave Toyota a rivalry edge in a business environment determined by changes in business patterns and government obligations.

Media can mean printed, televised or online media. When Toyota had problems with its accelerators, two things happened. First, it highlighted a quality problem that was inherent in the Toyota Production System: TPS relied on a single supplier for the part. The supplier’s errors affected the overall quality of the vehicle. Second, a media firestorm ensued when the quality errors caused consumer deaths. In the end, the buck stopped with Toyota. The lesson every small business should take from this is that poor quality, even if it originates with those who supply your small business with parts, can become your problem.

Toyota has ran a masterful marketing campaign so far. It has become the "environmentally concerned" car manufacturer and the technology leader in the hybrid car market. It has targeted "techies" and early adopters by educating consumers about the new car.

Toyota have used the power of the internet to promote the Prius. The first thing they did was educate consumers about the Prius. They launched a website to distribute the information and sent 40000 e-brochures to likely buyers. It worked. The Prius "flew out of dealer’s showrooms" and they even had difficulty "keeping up with demand". They also ran print ads with tag lines such as "when it sees red it charges", an emotional reference, and they ran television ads as well. By using these marketing tools to great effect the company was firmly established as a caring brand in the consumer’s mind. The new "environmentally concerned" Toyota is clearly a hit with customers as it sold 400000 hybrids in 2006 alone. It has even succeeded in making being green cool as a host of Hollywood celebrities like Cameron Diaz and even Arnold Schwarzenegger has one to park, ironically, beside his giant hummer.

Another effective strategy was to become the market leader in a new technology. It was risky to jump into the market that soon as it could have cost the company a lot of money if it didn’t work out. Toyota always subtly stresses the technology aspect of the car in its advertising. Surprisingly hybrids aren’t all that efficient. The Citroen CZ, C1 and C3 all have better fuel consumption than the Prius, but it doesn’t matter as Toyota "have captured people’s minds". It’s marketing campaigns have won over the environmentally conscious companies like IKEA, who are switching their car fleet to hybrids. Toyota’s efforts have left other car makers "racing to catch up".

Marketing segmentation was used to great effect by Toyota. It set out very early on to target the "techies" and the "early adapters" through emails and the online website. "Many Prius owners are immersed in technology", they even have their own website called "Priusenvy.com". It really has taken off with the "techies". They were able to make changes such as "cruise control" and a "sniffer" to the car without the help of a qualified mechanic or engineer. This success can be attributed to the narrow targeting of the cars.

Toyota could improve its strategy by appealing more to the general market for cars. Today the cost of a Prius is significantly lower than it was when it first came out. Perhaps it’s time to focus on what a great small family car it would make or how it might suit a professional, like a teacher for example. There are many environmentally conscious people among the ranks of the middle class families of Ireland. By honing in on the small family market Toyota could bring an alternative to the Ford Mondeo and the Volkswagon Passet.

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