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Marketing Plan Of Toyota Essay

Executive Summary

A company of automobiles named Toyota Motor Corporation owned by Australia has a very vast range of cars. There is a part of manufacturing in the industry named as prius car is one of the best hybrid coactions drivers which are best drivers in the environment of today. It also creates a competitive atmosphere between other businesses due to the provision of best fuel system. In the beginning of the report about the introduction and the background of company is explained. There is a current analysis about the different products, environment and competition of Toyota’s operation. An analysis named as SWOT is conducted to tell about the strength, weakness, opportunities and threats of any business and its environment. The objectives and the strategies can be recognized on the bases of these important factors and complicated issues. For the improvement of the product quality, some plans are thought for the finishing of counsel. For the illustration of the position and the performance of any product, the presented report has different types of graph of company.


In the world ranking of car manufacturing, Toyota Company has a distinct position in manufacturing and distribution. Good performance and presentation of company is due to the well planned system of company. The company gain many alcove of market with the help of many notable features. One cannot explain the whole construction about the operation of the company. It is also considered as monopoly. This company is one biggest company of Car freighting in the world. Especially in DC, s, the strategies of differentiation presents this company as monopolist almost. Along with it, this system also has some features of oligopoly.

The presence of squint competitors like GM is also one of the reasons of this fact. Toyota is eager to see the performance of its rivals and want to confirm its leadership through their actions. Toyota Motor Corporation is also manufacturing minivans, passenger vans, diversion and sports automobiles throughout the world. There are 45 manufacturing companies and 12 foundry of Toyota officially attached in Japan. From the year of 2010, this corporation is doing work on its program of deliberately global vision. Policies like good’s recycling and posture of pro-environment are also illustrated by this program. It also has a new idea to give latest and new chances to the markets of Asia by giving them respect.

It also has a goal of getting 35% of automobiles by Spout of the newly established markets. In the markets of Asia, it’s the ides of the Toyota Company to give honor to the different people from different communities. And spout the newly developed markets to have almost 35% of automobiles. There is need of local production of the automobiles for local customization. Toyota has an honor of becoming the first manufacturing organization in the year of 1990. The main focus of Toyota Company for establishing local markets is on Europe, Asia and North America. On the bases of cost efficiencies, Toyota has responded very fast by pass through the regional and trade hurdles. Toyota laid more stress on its reputation and image. In America, the cost of Toyota products is not affordable.

But customer depends and trusts on the product of Toyota so it is completing its journey successfully. Toyota Company gain first rank in the year of 2007 as well as in the year of 2008 in the sailing of cars. There are two distinct duties on Toyota. Due to its hybrid products and items, Toyota is going ahead in competition. Although eco-friendly consumers are asking for newly established brands it is the aim of Toyota to produce new models with advance technology. Another opportunity of Toyota is to make unused market for youth. A motivating revolution is introduced by Scion. There are some indicators like product designing, product marketing and credit help will considered as a great chance in future. The large population of china has identified and the purchasing power and business of Toyota increased. In this way it’s easy for china to establish its main office in china. Due to the economic development in South America, it increases the purchase of full size Toyota’s trucks.

Full sized SUV of Toyota is demanded increasingly in Middle East. This is the result of appreciation of Toyota. According its efficient export system, Toyota is acting. Among the total 500 companies, Toyota is the 5th best company. In international strategies, Toyota is become successful. There is many strategies made by Toyota. There is a clear concept of production, marketing and supply. The important and compulsory key points of Toyota are its production as well as improvement system. The concepts which make the company strong are Kaizen and new themes of many areas. To establish the chain or link of supply, management of inventory, capabilities of production and planning method there is a system of TPS (Toyota production system).

For the domination of Toyota upon all around the Toyota industry TPS make it powerful. Basically, Toyota was firstly established in Japan and soon spread its root all around the world. There is no doubt about the domination of Toyota all around the world. There are some targets of Toyota like establishment of long term growth, for making the friendly relations with people, society and whole environment. Toyota is also providing the chances of employment in America. To achieve the higher place in international market, mostly common issues like social, economic and cultural give permission to place equity.

Strategic Plan and focus

For the overall affects for the planning for Toyota, there are three main points for our focus. They are as follows, Mission Statement of the Company

Prosperous and developed society with the help of automobiles is the aim of Toyota Corporation. For this purpose, the company is struggling for a developed and growths for long period for harmonize with all the important aspects, the prominent atmosphere, international bargain, homegrown communities and international stake holders.

The Goals of the Company

The every model which is sold in the market, the company gives offer about the alternation of hybrid. In this way company achieve its goal of sailing 1 million of hybrid automobiles within a year. And company was succeeding by achieving this goal in the year of 2012. In the year of 2011, in six different fields, Toyota Company is improving its plans. The fields are like changes in energy and climate, air quality, substance concerned, resources utilization and recycling and social cooperation. In the decreasing carbon dioxide company is playing vital role. By seeing the values of fuel economy, the company believed in doing combine actions.

Core Competencies and Competitive Advantages

For getting a better economic sustainable position, company is working with the help of international market. Company is started to invest in different kinds of strategies so that the company can get its targets with the help of latest technology. Company is full with the experts so they do research on all the aspects which are the fact that keep this company on the top. There is a large network of its distributions which help it to reach on the top.

Situation Analysis

We can give the credit to internal environment which have the ability of high efficiency and ranking of quality. The companies which are famous in competition, it give them greater importance and top class management. For the understanding the whole position of company, we can use an analysis named SWOT which have the capacity of examine the advantages as well as disadvantages of company. And at last show the full situation of company.

SWOT Analysis of Toyota

We can refer advantages and disadvantages of any company as its internal factors because these have a large effect on company. On the other hand chances and threats are considered as outside aspects of company.

Basic Strengths of Toyota
Innovative culture
One of the best companies of innovation in the world is Toyota. It has a powerful custom about the innovations which are constant. Kanban, Kaizen, and TQM systems were firstly introduced in world market by Toyota this company also sell hybrid automobiles as well as famous for mass-production. Brand reputation which has the valued about $30 billion

The most valued and costly brand of automobile is Toyota. This brand is successful due to its friendly environmentally, durable and safe cars. These automobiles are wholesaled countries that number near about 170 of the world. Industry is considered as a leader in production and sales

Lean manufacturing and total quality management are such reforms which are firstly used by Toyota for the procedure of manufacture. For a shorter duration, company does practice and had a very low manufacturing as well as production cost throughout the world. Many companies try to replicate the system of manufacturing which is used by Toyota but Toyota is still most profitable company throughout the world. Portfolio of a Strong brand

Recently, 70 different models of car are sold by Toyota. This become the reason of awareness among people about this brand and also become a source of satisfaction for its clients. Prius and Corolla are the most important models of Toyota.

Toyota is the leading green cars development

It is the thinking of Toyota Company that today environmental friendly cars become need. In the terms of CO2 emissions and fuel-efficiency for a car consumer become well-aware. And a very few companies can compete with Toyota in sell of hybrid automobiles. In 170 countries of world, in global organization, it has a powerful international rank. In 1997 Toyota’s sells was 131,511 million yen and growth rate was 29.3%.

It has an effective image on the bases of quality, environmental friendly and customized range. It is leader of industry in terms of manufacturing and production. With the help of lean approaches of manufacturing like just-in-time manufacturing, quality management etc. In all strong markets like US, China and EMEA Toyota is become 2nd largest producing company of automobiles. It has a diversified range of production.

There are highly targeted markets.
Company is producing vehicles for public as well as private customers. For fulfilling the needs of clients, company s using different marketing techniques. It is the brand which is also said as household brand.

Weaknesses of Toyota

Large-scale recalls
For the last few decades, Toyota is a large-scale automobiles industry. In the years of 2009-2010 company sell 9 million cars and in the year of 2010 its sell reached at 7.43 million. Such recall may cause for affecting the company financially and also affect its brands.

Toyota has a low presence in the weak market
Toyota’s major markets are in US, Europe and Japan, and it also establishing it’s a branch in china and India. But there are small percentage total sales of Toyota in India and China. In China, Toyota finds it difficult to compete with General Motors because of the poor automobiles in China. GM has large shares.

Opportunities of Toyota

Positive attitude towards “green” vehicles.
Users of Toyota are well aware of the air contamination created by the cars. The carbon dioxide is emitted in large quantities which create intensity in the greenhouse which are causing all these kind of pollution. So consumer become conscious and wants to buy cars like hybrid and electric cars because these cars reduce CO2.

Increasing fuel prices.

Due to the high price of fuel, Toyota is shifting to efficient cars instead of hybrid cars. The needs of the people are changing
Toyota satisfies different changing needs and tastes of people by offering new models and have an access over a wide group of customers Acquisition and growth  In the past, Toyota has succeeded in acquiring other companies and has grown new assets skills and also had access to the new market.


It is the company which firstly produces marketable mass and hybrid gas electric vehicles such as Prius model. It is built on the R&D and innovative technologies. Due to rise in fuel prices, clients are looking for any other source for fewer prices and guzzling cars. New models of Toyota i.e. Aygo model by Toyota is for the aggressions of segmentation. Toyota doesn’t want to take a share in youth market. Production of fuel efficient cars is beneficial; they have fewer effects on environment. For producing new cars for social and institutional demands, the cars like electric cars and hybrid fuels have the impacts on setting. Toyota’s (Eco-VAS) becomes helpful in the procedure of construction, usage and discarding as well. In the fresh markets similar to India, Russia and china there is global increase continuously due to high population and demand.

Threats of Toyota

Falling fuel prices
Because of the mining of more shale gas, it is clearly seen that in future fuel prices will drop. This is the reason that there is less attraction of consumers towards fuel-efficient hybrid and electric cars. These are main group for Prius model of Toyota.

New standards for emission

Presented by govt. these innovative and latest emissions become clearer engine for investment we can say that if there is more investment then Toyota’s profit becomes less. Rising raw material prices. For any automobile company the rise in the raw material price is very essential for manufacturing of automobiles. Higher price leads to higher cost and less profit is the main ingredient for raw material of Toyota.

1. Intense competition.

In any type of business, competition always takes place. Same case is with Toyota. Volkswagen group and GM are always big rivals for Toyota.

2. Natural disasters.

 In Japan, Thailand, China and Indonesia there is the facility of manufacturing by Toyota. All the countries are the subjects for all types of natural calamities which can disturb the Toyota’s amount of sell.

3. Appreciating yen exchange rate.

Foreign countries are the big source of Toyota’s revenues. All the profit is converted in yen. And the profit of Toyota becomes less due to exchange rate of appreciating yen.

Car Industry Analysis

For creating a competitive environment in industry, company can put its advantages and chances. Usually, for the wide presence in international market, product line is really useful. By entering in the newly established markets like china and Europe, one can get it also. If we notice the previous history, Toyota took more attention on the markets such as Japan and America, but there is a need of making more plans. Sustainable development is achieved by Toyota cooperation. For the harmful effects of global warming and fossil fuels, Toyota has a market named as Toyota’s hybrid. This technology can also be helpful for company to sell it to other firms.

Toyota Company analysis

In the exportation of cars, in the creation of automobiles, best quality and achieving its target, Toyota Company is one of the best companies of world the company give the best return of people’s money in the form of best quality car and make the client luxurious .they always try to give the best value of the money of their clients instead of their rival companies. So, this is one of the big reason for Toyota as a good company in DC, s. This company always tries to achieve sustainable growth and decreasing the pollution from this earth.

Customer Analysis

Customers of Toyota are rich, poor and diverse. They lived all around the world. Toyota always tries to keep in mind the demands and range of all type of clients belongs to upper as well as lower class. They have all types of automobiles like small sport car, big family automobiles, trucks and vans also. Toyota has the customers from different age groups, areas, incomes, social as well as cultural class. For the satisfaction of their wants, people go to Toyota. There are also vehicles for low income people according to their range as well as size.

Independent and aloof people have also verity of cars accord to their need. Many organizations also want a vehicle for giving the facility of convene to their employees. So, this is the case in which the purchaser of the product is not the user of that product. There is enlargement in the exposure of a product when any person buys any product of company. Companies awake awareness among the people about the product through ads, newsletters, websites, and other sources of information. Books and seminars also provide the chance to Toyota for earn income.

Where People Purchase

There is a vast network of retailers throughout the world and Toyota sale its products with the help of it. There are some specific models of automobiles which a customer can buy directly from the Toyota factories. Toyota also gives the facility to its customers by giving them opportunity of online shopping. Most of the advertising activities are also done online. Online shopping and ads keep the papers away from wasting and client can easily buy any automobile easily. There is also a toll-free number of Toyota for direct contact. So customers from all across the world can easily access to the all kind of production of company.

When People Purchase

Anyone can buy the company’s product in the whole year. Except some models, all the other cars are available on Toyota company whole year. Driving licence is compulsory for buying a car in many countries. Some people want to buy a new car as old one is not able to use or want to try a new model.

Why do People Purchase?

Due to unique and special nature of Toyota, customer prefers it on other companies. Cars meet all the needs of the clients offered by Toyota. Company want to maintain its standard. The company offer fewer amounts than others. Toyota also takes great care about the safety of driver. When green light turned on, there is a distinct call to driver to alert him .new hybrid product also have the facility of buying and changing the car.

Why Potential Customers Don’t Purchase

According to the census of Toyota there is large amount of potential people who don’t want to buy a car. Company is filled like the people like this. Nowadays there is a large amount of automobile industries. Some people reject the car for no significant reason. This is due to the reason of class, social status, like and dislike .there is no high requirements of Toyota. So the clients are free to buy car from rivals.

Business environment

Business environment is made by two words i.e. business and environment. In economic view, all the actions or activities done by the person for earning profit, buying of goods are known as business. Surrounding of us is known as environment. So, we come to know that the conditions of nature, which one cannot control like famines, floods, and economic, social and natural affects, are known as business environment. There are two parts of business environment which are internal and external environment.

Internal environment

This type of environment based upon the company’s basic elements. Important and vital requirements of internal structure are skilled staff, policies and relations with humans. We can have the example of Toyota. There is strong relationship, skilled staff; experienced specialists show the internal environment.

External environment

All the actions about trade are taken under the external environment. Technological, political and legal factors affect it. there are also two sub division of the external environment. They are macro and micro.

Micro environment: the successfulness of any market depends upon tit communication and transportation with its clients. Top level of managing, departments of finance, research, and channel partners are the forces which have the ability to affect the company.

Macro environment: -in 2000 company of Toyota felt the changes occurred by the macro environment. The company Toyota takes full benefits of producing the first hybrid vehicle named Toyota Prius.

Five Forces Analysis

In the operating industry, there are five Porter’s forces which are organized for forcing the company. The business will not be attractive if profit becomes low. New entrant’s threats, rival’s threats and substitute products threats are the three such forces which affect our analysis. Toyota also started its business in US market.

When Toyota Company started business in US it has 95% shares and produces only three types of cars. Japanese market was 100 times smaller than the market of US. There is strong and high position of US in market. Toyota, Honda and Nissan are three different types of automobiles of Japanese company. These companies took 4 decades for establishing themselves in the international market.

Bargaining power of suppliers
Weak buyers can make problems regarding the product. In US and Japan the company is doing hard work for establishment. And want to start business of automobile here. The supply of class material is supplied from a big network. In the term of company it explores the weakness of customers. Due to labor and raw material, the company is earning profit.


There are many hurdles like economic, financial, social and governmental. After World War 2, the laws about the ministry and trade were not in favor of Toyota. At that time there were no hurdles for US in exporting. The low business was an open advantage for Japanese companies. For efficient sale, new entry of shares is required.

Buyers’ Bargaining Power

The manufacturing companies in US have the ability of vertical integration as they were enjoying the power of it. The supply companies are companies of manufacturing. We take the example of molar. That is supplying parts of motors. But in Japan companies which supply parts of motors has a share in the administration. It is totally different from US. The dealers were fragment in both countries. Toyota purchase large amount from parts companies. By the right of information from internet, user bargain.

Substitute products threats

In U.S. and Japan, there is transportation system. The value of special amount is high due to its close substitute.


Competition between rivals in the production of car is very complex. Although the output of the market was very low but it was enlarging day by day. From the year of 1970, there is tough competition between rival companies there is rivalry on price as well as on other things. In price competition the price of product included and in non-price competition there is marginal as well as fixed cost are added. Competition call also is increased through differentiation opportunity. One basic thing of increasing rivalry between all the companies is the manufacturing of cars, truck, and SUV’s.

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