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Toyota Prius Marketing Strategy
Toyota Prius Marketing Strategy
Name
Institution affiliation
Introduction
To make a profit in any business one have to use efficient marketing strategies to ensure that they can outdo their competitors while not compromising on the quality of products they produce. Toyota was first developed in Japan in 1937 and later in the UK in 1965, it was later in the 80’s that it emerged in the production of cars where it has become globally known for its better production hence has been recognized as a selling brand. Toyota Prius is the latest Toyota model and has new designs leading to it being recognized as the famous hybrid car. The discussion below will focus on analyzing the marketing strategies by the company for the Toyota Prius, competition, legal, political, environmental, economic, technological and sociocultural will form out basis.
First will analyze the competitive environment of the Toyota car. To facilitate that the model will be able to compete with other brands the production produces a design that most people claimed that it carries a particular message with it. This car has gained a competitive advantage of all its competitors in their industries by ensuring that despite how the market is the product quality remains the same, this has been the reason that Toyota remains a competitive brand after over 50 years in the industry. Second is the pricing, while the initial price of the car has turned out to be a bit expensive it is maintainable in that its fuel consumption is great and its design is one that stands out. Lastly is the distinction with other products while other car brands are still developing great cars that focus on one that is environmental friendly had appealed to many buyers who want to feel comfortable while not damaging the surroundings (Afzal Ansari et al., 2019).
Secondly, the strategy in terms of economic factors where both the local and global economy play a role in the customer’s decisions in regards to purchasing and especially for the brand which tends to target people of high class. Just like in every other market, the people purchase increases during a boom and decrease during a recession and the inflation rate, exchange rates play a big part in how much revenue is generated for the brand. The brand had gone to the international level hence the different exchange rates are bound to play a big role n the economy and the varying labor laws in different countries determine the profitability level of the brand. The unstable inflation rates in India have affected the company since the state is one of Prius’ big markets and hence economic factors while in most cases are beyond the brands reach it is up to them to put measures in place in the event they occur so as not to incur losses.
In addition, political factors play a big role in the market of cars where countries that lack global relations make it impossible to market the products and make it available to consumers in such countries. Also, the countries that often have political unrest register low sales this is because for any business to run efficiently and make a profit it has to operate in a work-friendly environment. The different labor laws across different states also play a big role since where there are many labor protests they are hardly any work that is done hence affecting the revenues of the brand. For any business to operate in any country it has to adhere to the set legal and regulatory requirements. Unfortunately, in some countries these requirements fetch very high costs which discourage brands to set up shop in such states, also some states have very strict labor laws that may lead to the brand hardly making any profit while trying to adhere to such measures. In most cases, such practices have discouraged such brands from setting shop in such states making it expensive for consumers to access their products which eventually affects the brand’s market base.
Moreover, today most people are geared towards finding innovative ways to perform functions that have existed from the past. In regards to technological factors, it is up to the brand to ensure that they used innovative ways not only in the design but also in the car’s efficiency to address various problems that affect the automobile industries. In addition, with the advancement in technology, it has made it easier and faster to reach a wide customer base and make prompt responses to queries. Unfortunately, it is also a con that this technology can be prone to hacking which can impact the cars hence it is the brand’s role to ensure that it put measures in place to avoid this from happening (Madoh et al., 2019).
Lastly, on the socio-cultural factors, the culture and social factors play a very important part in the preference and sale of products. Currently, people have become aware of the causes of environmental degradation and why it is important to protect our planet, this is an opportunity for the brand since it produces eco-friendly cars that are geared to ensure that such results are minimal. In addition, the brand shifting to hybrid cars is a response to the continuous lifestyle changes by people, it can dwell on this to ensure that the cars not only suit the consumers’ needs but also are changing just like the times. Another social factor is aging, this has a big effect on the number of cars to be sold and the brand design should ensure that their cars can be used by people across different ages (Paul, 2018). Lastly, the brand should ensure that the design of its cars is satisfactory to the consumers’ change of attitudes and behaviors and as their goal is to make a profit the product should also meet the consumers’ expectations.
In conclusion, the success of any company just like Toyota is dependent not only on how great the products are but also the marketing strategy put in place to ensure the consumers who are the biggest players can access the products. While the Toyota Prius has to have already succeeded in winning in some areas caution is essential especially in regards to technology which the more advanced it is the easier it is prone to interference.
References
Afzal Ansari, A., Waqas Ameer, M., & Tabbassum, L. (2019). Strategies of Green Marketing as tool of Competitive Advantage [Ebook] (7th ed., pp. 257-265). Pakistan Journal of Humanities and Social Sciences. Retrieved 1 March 2020, from http://file:///C:/Users/HP/AppData/Local/Packages/Microsoft.MicrosoftEdge_8wekyb3d8bbwe/TempState/Downloads/25-Article%20Text-80-1-10-20200102%20(1).pdf.
Madoh, A., Alenazi, J., Alkhamees, L., & Panwar, A. (2019). Case Study on Market Mix Strategies of Toyota Motor Corporation. Asia Pacific Journal Of Management And Education, 2(3), 70-78. https://doi.org/10.32535/apjme.v2i3.630Paul, J. (2018). Toward a ‘masstige’ theory and strategy for marketing. European J. Of International Management, 12(5/6), 722. https://doi.org/10.1504/ejim.2018.094466
Toyota Motor Company System Thinking and Approaches revised-2
Toyota Motor Company System Thinking and ApproachesBackground Information SystemsThere automobile industries has many characteristics that handle the manufacturing and design aspects throughout the world. Lean manufacturing methods are the most commonly used. The most efficient and influential to all of these methods is the “Toyota Production System” (TPS). Toyota’s founding fathers invented the TPS in 1930 in Japan. The TPS continuously evolves making it a benchmark for the manufacturing, product development or any other sector of industry. It is wholly based on “Socio-Technical” systems in a continuously changing production environment.Toyota Company uses Lean Approach as holistic system thinking. Lean is ‘Pull’ approaches where all work items are prioritized and when one task is complete the team ‘pull’ the next one off the list. The model of systems thinking described here as derived from the Toyota production system (TPS). This system owes its existence to the long-serving CEO Taichi Ohno. The TPS is one of the best examples of a well articulated system that combines the best thought processes and modern operations (Ohno, 1978; Womack et al., 1990)Selection of SystemThinking about service organizations represents a paradigm shift in terms of thinking about design and management of the work, and as such, it represents an excellent level for improvements of service design. Toyota Motors aimed to eradicate waste and in this pursuit, they changed many pre-conceptions inherited from mass production traditions. They understand the immediate and delayed impacts of change as well as direct and indirect results of these changes thus they opted for Lean Approach system thinking for manufacturing. Lean evolved from the manufacturing philosophy called the Toyota Production System (TPS).Systems Objectives/PurposeToyota Motors primary aim of using lean manufacturing system thinking approach was to design a process to conduct the development of job competencies and use active learning strategies to boost production, thus the invention of Toyota Production Systems.Historically it has had four primary aims that are consistent with these values and objectives: The four goals are as follows:1. Provide excellent quality in terms of the consumer products.2. Improve each worker’s potential, using mutual respect and trust as guidelines.3. Through the elimination of waste, reduce costs and boost the profit margins
4. Adapt the production methods and standards to meet the most efficient and beneficial industry standards.The management realized that in order to achieve these objectives, there was a need to identify the sources of waste and mitigate the risks associated with that problem. Management identified these decisions as integral for the achievement of the main objectives necessary for the success of Toyota as both a lean company and enterprise.EnvironmentWithin the lean manufacturing philosophy of the TPS, the works of W. Edwards Demming and Henry Ford were heavily present In addition, the lean manufacturing philosophy was reinforced using other techniques associated with the development of efficiency within enterprises These included; Six Sigma, total quality management, and theory of constraints. Although these techniques have been integral in developing US business success stories since the 1980’s, they proved to be less than adequate for the case at hand. Therefore, lean management techniques were the best option.Sub-Systems Objectives/PurposeToyota is serious about long-term thinking and its sub-systems aims. The aim of the company has been to add value to its clients while at the same time achieving its objectives. This combination of factors forms the core objectives that surround the company’s aim of running a lean organization. In addition to lean operations and fiscal success, the company also strives to reduce the pollution footprint by employing environmentally friendly operating strategies.System RelationshipsToyota Motor Corporation since the physical embodiment, or indicates, to achieve these six requirements with the ultimate goal of expense reduction, developed the Toyota Output System. Once a stable lean system design was at place, elimination of waste would lead to cost reduction in manufacturing. These central features based in the two pillars connected with JIT and Jidoka plus the foundation of standardized operate and kaizen. JIT (Just-in-Time) means to make only what is required, when it is needed and within the quantity needed. Jidoka would be the practice of designing machines and processes to produce perfect quality through speedy recognition and solution connected with problems. Implicit in all of TPS, especially within standardized work and kaizen, is a deep problem for safe and ergonomic working conditions always.
System: Between each connected with its Sub-Systems
There are two primary pillars in the system. The first and quite a few famous pillar of the device is
Just In Occasion (JIT). The JIT concept aims to make and deliver the appropriate parts, in the appropriate amount, at the right time with all the minimum necessary resources. This system reduces inventory, and strives in order to avoid both early and over production. Producing in some sort of JIT fashion exposes problems quickly. With fewer inventories inside a system, the complex processes expose production that’s disrupting flow.
Most companies shy aside problems and use inventory to hide these problem and avoid potential disruptions. In Toyota, however opposite logic is utilized. By reducing inventory, you expose the actual problems in a manufacturing process quickly and focus requirement for improvement. This notion of surfacing problems and abnormalities is a critical concept in TPS. Obviously, unless you can solve the problem that you expose there exists a danger to this tactic.
There are several critical components to TPS: tact time, flow production, brings via kanban, and Ranking up (heijunka). There are a couple parts to Judoka –
1) Building in quality in the process and
2) Enabling separation of man coming from machine in work situations.
Jidoka is a Japanese people word that ordinarily indicates automatic or automation. Nonetheless, Toyota puts a specific twist on this word by adding what is known as a “radical” in depicting kanji heroes. The radical added to the left of one of your kanji characters in Jidoka indicates “human”.
The basis in the Toyota Production System is usually absolute elimination of squander. The two pillars that this is dependant on are just-in-time and autonomation. In just-in-time production, a later process goes to an earlier process within the operation flow and withdraws only how many parts needed, when they are needed. Autonomation refers to automating a task to include inspection. Human attention is important only when a deficiency is detected (the machine will minimize and not continue until the issue is solved)
In other words TPS aspires for processes that are equipped for making intelligent decisions and shutting down automatically in the first sign of an abnormal condition say for example a defect, or other issue. The goal is not to ever run continuously but quite simply to stop running automatically when trouble arises. This specific automatic stops function facilitates stop defects from avoiding downstream, prevents injury, boundaries machine damage, and enables a better consider the current condition whenever there exists a problem.Problem/Challenge IdentificationIn case there is a technical glitch with one part of the assembly line; the whole system shuts down automatically. In terms of manufacturing efficiency, this is not a good system. While this is not a good system in terms of operational efficiency, it is very instrumental in developing teamwork among the workers because they have to think together to resume operations (Morgan James and Liker J.K., 2006). The team had a chance to experience this phenomenon first hand in the weld shop at the Toyota Motor Manufacturing Texas (TMMTX) at San Antonio plant.In September 2010, one of the lifter robots was put to the test by intentionally dropping it. The one tone tool caused the entire system to shut down which affected the plant’s output considerably. Surprisingly, instead of anyone pointing fingers, the entire team got underway trying to identify the problem using multiple point analysis and trouble shooting. Within three hours, the faulty robot was identified, repaired and the plant’s operations resumed. The main issue worth consideration here is how Toyota instructs its workers to act together under the shadow of the problem and emerge with a viable solution that not only fixes the issue, but trains them to act in unison. In essence, the team benefit from each problem.
Problem ContextToyota managers or engineers do not have to do a cost analysis every time they want toImplement something which improves the flow. Cost is obviously a factor, but the bias is to create flow. This way the focus is strategically on reducing inventories over time to improve flow. In fact, inventory buffers in the right place can allow for better overall flow across the enterprise. (Kennedy M.N., 2003)Stakeholder expectations Prosperous lean implementation is approached at a strategic perspective and companies seek to reach certain goals with slender initiatives. As creating a slender workplace requires changing the organization culture a robust change management strategy is required. Such abrupt Policy changes need a top-down approach to decision-making. Mader in his book emphasizes the requirement for strong top management leadership in the implementation process. Carefully determined Kaizen events should service the organization’s strategy as well as vision.
Only seeing lean like a quick fix, may give some workers the impression that Lean may well not work in certain surroundings, i. e. in low volume operations. Spear (2004) says which at Toyota managers represent enablers and in which sense coach co-workers in solving problems instead of just fixing them.Strong leadership is crucial for the success with this initiative.
Selection of Program Methodology
To understand Toyota’s achievements, you have to unravel the paradox – you need to see that the firm. Specification is the very thing that produces the flexibility and ingenuity possible. That’s what we came to realize after an intensive, four-year study of this Toyota Production System by which we examined the inner workings greater than 40 plants in the states, Europe, and Japan, some operating according to the system, some not.
Your Toyota Production system utilizes the hard system technique. Hard systems approaches programs analysis, structured methods, programs engineering and operations investigation.Objective reality of systems in the world–Well-defined problem-solving includes;–Technical factors foremost–Scientific approach to problem solving–An ideal solutionApplication of System MethodologyBrief description of the systems methodologyHard systems – rigorous techniques and procedures to produce unambiguous solutions to help well defined info and processing troubles, focused on computer system implementations.
In order to maximise production efficiency, thoroughly analyze along with improve process before seeking to improve operations. You can find four distinct process elements in the flow of raw materials into products.
(i) Processing – a physical change towards the material or its quality
(ii) Inspection – comparison having an established standard
(iii) Transportation – the movements of material as well as products; a transform in its placement.(iv) Delay – a period during which no processing, inspection or transport occursThere are two types of delay:(a) Process delay – an entire lot waits while the previous lot is processed, inspected or moved.(b) Lot delay – while one piece is processed, the others wait. They wait either to be processed or for the rest of the lot to be doneImplementation IssuesImplementation on the Toyota Production System in a dynamic lean manufacturing viewpoint,
Supported by systems along with tools, requires consistent effort and education. In order to remain to compete in the particular global automotive component market and gives for the needs of customers, employees and buyers, it is essential that every employees become experts from the principles of the TPS Technique thinking and approach.TPS is that people are the most important asset and forthat reason management must have a shop floor focus in order to identify non-value addingtasks. As lean transformation is a profound change in business culture (Womack, Jones, Ross, 1990), implementation processes fail due to various reasons and it has to be said, that both Ohno (1988, p.156) do rarely mention the change process itself.In order to shed light on the additional critical success factors of successful TPS and lean implementation the Henley transformational framework was used to classify the relevant criteria mentioned by various authors. In the following part of the literature review this model was used as a frame of reference as the authors dealing with Lean and TPS mainly only provide bullet points but no holistic approach or scheme
Conclusion
In order to maintain a reliable organization, Toyota encouraged all its stakeholders on the need to act in unison in the face of problem. Using philosophies such as lean operations and JIT, Toyota has succeeded in making sure that the company releases high quality products, in a timely manner, and handles any issues that arise in a systematic manner.
The results of the organization would most likely be an equitable return on the investors’ equity. In addition, the employees would benefit from equitable wages and competitive bonus on their activities. Based on thorough theoretical analysis and personal observations from Toyota sales offices, the company sticks with its philosophy. These claims are backed up by the results of the Toyota Company and its partners in the global motor vehicle manufacturing industry where it as won numerous awards. Based on the survey work done by J.D Powers and Associates on Toyota and Lexus seem to suggest that the company remains on the top in the global motoring sector.
REFERENCES
Jackson, Michael C. (2004) Systems Thinking: Creative Holism for Managers, John
Wiley & Sons, Chichester, West Essex.
Cavaleri, Steven & Obloj, Krzysztof (1993) Management Systems: A Global Perspective, Wadsworth, Belmont, CA.
Pair reported missing in upper Kern – Kern Valley Sun: News. (n.d.). Retrieved from http://www.kernvalleysun.com/news/article_8d163c36-80bf-5973-80fc-aca5d964ac27.html
Rationalizing the Design of the Toyota Production System: A … (n.d.). Retrieved from http://systemdesignllc.com/pdf/paper15.pdf
Demystifying: Agile, Lean, TOC, Systems Thinking & 6-Sigma (Pt2). (n.d.). Retrieved from http://www.ambitiousmanager.com/demystifying-change-agile-lean-toc-systems-thinking-6-sigma-part-ii/_br Demystifying: Agile, Lean, TOC, Systems Thinking & 6-Sigma (Pt2). (n.d.). Retrieved from http://www.ambitiousmanager.com/demystifying-change-agile-lean-toc-systems-thinking-6-sigma-part-ii/_br
Five Examples Of Simple Systems In Healthcare Free Essays. (n.d.). Retrieved from http://www.studymode.com/subjects/five-examples-of-simple-systems-in-healthcare-page1.html_br Five Examples Of Simple Systems In Healthcare Free Essays. (n.d.). Retrieved from http://www.studymode.com/subjects/five-examples-of-simple-systems-in-healthcare-page1.html_br
Toyota Global Company
Toyota Global Company
Student’s Name
Institution Name
Toyota Global
Marketing Plan
Introduction
Toyota Global is a company which was started in 2007. It is based in Boston and has a total asset value of US$ 2 million. In the 2011/12 fiscal year, it had a net income of US$ 1 million. It is the major producer of Toyota Corolla cars. Since its establishment, it has expanded to be one of the leading auto mobile companies in the United States of America (USA). Therefore, it has plans to establish new branches in Europe, Asia and Africa. This will not only enable it to become be a multinational, but also enable it to accomplish its mission: to be the leading automobile manufacturer in the 21st century. In order to achieve this goal, there is a need to have a good plan. This will be executed as discussed herein:
Marketing Mix
Marketing mix refers to a business tool which is used for determining the promotion of a commodity introduced or already existing in the market. It is a very important strategy which can help in determining the brand and uniqueness of a particular commodity in terms of promotion, price and product. In order to ensure that the company realizes huge volumes of sales for its products, it is paramount for the management to acknowledge the crucial contribution of consumers, costs, convenience and communication (Kieso, D. E. et al., 2007). They are great factors which must be considered when making marketing decisions.
Toyota Global Company will focus on promotion as the marketing mix of choice. It is in line with the company’s policies of creating awareness about its products. Sales promotion is the only way through which the company can inform clients and persuade them to buy its products. Sales promotion should be done by advertising the commodity in all the available media. However, this should only come after conducting an extensive marketing research. It can enable the Marketing Department to acclimatize itself with the prevailing conditions in the market before coming up with the right decision regarding the most appropriate medium to adopt. Marketing research can help the management to understand the level of competition and consumer demands. It becomes easier for it to manufacture a commodity which best suits their need.
In order to benefit from sales promotion, the company should understand its target audience. This will help in coming up with the most appropriate medium which they can access. For instance, if the if financial and educational statuses are focused, the management will come up with the most appropriate medium to ensure that they are reached. If it is found out that most of them can access broadcast or print media, the management should use radio, television, newspapers or magazines appropriately. This is the only way through which it will reach its target audience. As a result, they will get to know about the company and its products.
The other important thing to do is to be dynamic. When carrying out sales promotion, it is suggested that the company should be flexible in the choice of its medium. Since it plans to operate beyond the company’s borders, it is essential for it to ensure that it reaches all its targeted clients wherever they are located. The best way to achieve this is to adopt online marketing. Meaning, it should post its adverts in the internet. When doing this, it should select some popular sites such as Face book, Tweeter and MySpace. They are some of the most popular social sites which have lots of clients. This is the only way through which Toyota Global Company will extend its geographical coverage. A part from sensitizing the public, it can use the adverts to correct any image which might have been injured by its competitors.
Pricing
Pricing is a very significant aspect in business. It is the value at which a commodity exchanges in the market. There are very many factors determining the prices of goods and services in the market. In order for this company to achieve its long and short term goals, it must come up with the best marketing policies. Since automobile is a highly competitive industry, it is necessary for the management of Toyota Global Company to come up with attractive prices which can appeal to its clients. While conducting marketing plan, it is recommended that the management carries out a market research to understand government regulations, costs of production and consumer income. It can be instrumental in determining the price appropriate for the commodity.
It is only possible for the company to have a high rate of stock turn over if it adopts friendly prices. In other words, if it charges highly, it will discourage clients from purchasing its products. Otherwise, it can coax many clients to consider it as the best alternative in the market. This implies that the company can only attract more customers than its rivals if it charges lower prices as compared to them. Although lower pricing is recommended, the company should be careful not to charge extremely lower prices which can make it run at a loss. The major aim of any business is to make the maximum possible profit.
Product Modification
As already highlighted, automobile industry has become so competitive. In order for any company to survive, it must come up with viable strategies. For it to outdo all its rivals, it must manufacture high quality vehicles. Meaning, it should embrace modern technology and be creative in its production. Moreover, it should manufacture highly modified products which can meet the demands of its diverse clients. Each of them has a distinct taste and preference which must be satisfied. It should manufacture unique brads which can appeal to a large number of clients.
Channels of Distribution
It is so challenging to operating a multinational. First and foremost, it has a wide geographical coverage. Besides, it serves a lot of customers from diverse socio-cultural backgrounds. However, all of them should be served without any discrimination (Koichi, S., 2004).
For Toyota Global Company to access all of these clients, it has to adopt a multi-distribution strategy. Meaning, It should have a lot of chain stores located it each of its branches. At the same time, it should adopt the use of sales agents to be in charge of distributing its commodities. Finally, it should adopt online marketing. This requires the establishment of an online support department which should communicate with clients and direct them on how to place orders and make shipments.
Market Indicators
The activities of this company will be affected by internal and external forces. Since it does not operate in a vacuum, it must be affected by external pressures. This may operate in its favor or against it. It is essential for to carry out analysis to enable it determine whether it declines or advances its indices. The major indicators to be used in determining the strength of this company include Absolute Breadth Index, Advance/Decline Index, McClellan Oscillator and Arms Index (McCarthy, J.E., 2006).
Financial Overview
Financial analysis is necessary to be performed as part of the marketing plan because it will help in assessing the profitability, stability and viability of the company. The information gathered from the financial statements can enable the Board of Directors to make the most important decisions regarding this project. The following are some of the financial overviews for Toyota Global Company:
Toyota Global Company
Income Statement
YEAR INCOME (US$)
2007 700,000
2008 800,000
2009 812,000
2010 800,000
2011 890,000
2012 1,000,000
Ford Automobile Inc.
Income Statement
YEAR INCOME (US$)
2007 700,000
2008 770,000
2009 800,000
2010 860,000
2011 860,000
2012 940,000
Toyota Global Company
Budget
ITEM COST (US$)
Salaries and Wages 10,000
Transportation 1,000
Marketing 1,000
Production 10,000
Assets 20,000
Raw Materials 50,000
Tax 10,000
Others 2,000
TOTAL 104,000
References
McCarthy, J.E. Basic Marketing: A managerial approach. Homewood: Richard D. Irwin Inc.
2006. Print.
Kieso, D. E. et al. Intermediate accounting (12th Ed.). Hoboken: John Wiley & Sons. 2007.
P.1320. Print.
Koichi, S. Symbiotic marketing strategy. Tokyo: Souseisha Book Company. 2004. Print.