Establishing and adjusting the marketing mix

Establishing and adjusting the marketing mix Toyota Australia is the leading car manufacturer in Australia having a market share of 21% beating it competitors. The company has grown and developed from its establishment from Japan in 1937. Toyota Australia marketing mix followed the 4Ps in establishing a brand that is renowned for its quality, innovation and services. They offered a wide range of vehicles which targeted the 30s to 40s age bracket and attempting to break into the gen y market. There price reflected the services and quality of manufacturing the vehicles, and the also offered consumers choice to add features. They mainly promote their brand through television, newspapers and by being a sponsor of reality shows and sporting events. They are internationally recognised and have made their mark in the marketplace Introduction Scope The following is a marketing mix review and recommendations report on the worlds largest car manufacturer Toyota. The report will outline the fundamental elements of Toyotas marketing mix, and also recommendations will be made on how to improve on each marketing mix element of the organisation. Background Toyota Motor Corporation established in 1937, is the biggest car manufacturers in the world, with its factories spanning over various countries. It is one of the worlds most successful and most profitable car manufacturers. Australia has one of the smallest and oldest car industries in the world and has played an important role in the success and development of Toyota over the past 50 years. The first Toyota vehicles where imported to Australia in 1958 by a mining, construction and services company called Thiess, who imported 13 Landcruisers a model of 4WD, which they used for the Snowy Mountains Hydro-electric scheme. They also began to sell the Landcruiser vehicles in 1959. In 1963 an assembling factory in Melbourne called Australian Motor Industries was established and produce the first lot of Toyota corolla and corona cars. They began to be commercially available in 1971 through Thiess Toyota who became commercial leaders in 1979. Then in 1988 the two companies merged to create the Toyota Motor Corporation Australia, which began a global competiveness and established an important export market. In 1994 the Toyota Altona Assembly Plant is opened and the Toyota corolla is the first car to be built in the plant. Vision Toyotas vision is to become the most respected and admired company, in the car industry Mission Their mission is to deliver high quality automotive products and services to their customers, and being actively involved with the community, partners and environment. Methodology Various methods were used to conduct the review of Toyotas marketing mix. One of the methods used was conducting a survey, to find out what the public had in mind when it came to Toyota. These were handed out to random people passing by, and were asked to complete the survey anonymously. They were basic questions that required a bit of thinking from each individual as how they perceive Toyota as a brand. The survey contained a perceptual map which each person was ask to plot where they think a certain car brand fits. The other methods that were used to gather research, was using online resources such as the Toyota website to get a better understanding of the companys direction and the range of products that they offered. The website was very insightful and was clear and easy to navigate, and was very informative. Also the Australian Bureau of Statistics was used to gather information on sales and market share of all the major car companies in comparison to Toyota. This provided factual statistics and information that was very relevant in determining how Toyota fits in to Australias car industry and market. Results Findings Untitled.jpg . Perceptual Map of Car brands comparisons on Reliability vs. Durability The sample result from the survey shows the perceptual map of how consumers compared Toyota and other brand of cars when it came to reliability and durability. The outcome of where Toyota is placed in the map is very high on its reliability and durability. Toyotas market strategy is to sell a top quality product that lasts. This grabs the consumers attention when their looking to buy a car that is reliable and durable. Marketplace Toyota Motor Corporation is the largest vehicle manufacturer in the world. Toyota co-operates with 51 manufacturing companies in 26 nations, and sells its vehicles in over 170 countries under the Toyota, Lexus, Hino and Daihatsu brands. Toyota leads the automotive industry in environmental technologies with their new innovative hybrid technology in their Prius and Hybrid Camry vehicles. They are also looking into the development of Fuel cell technology for future vehicles. Toyota has in recent years dominant the Australian car market, with a market share around 21 percent (Fig.2) and is steadily rising with predictions that it might reach 25 percent by 2012. Toyota Australia has remained the number one brand for selling more vehicles than any other single car brand in the industry for more than 14 years. Toyotas Market Share Toyota has dealerships across Australia that sells their range of vehicles from cars, SUVs, trucks and hybrids. They have established a well know brand that people associated thing such as quality, durability, reliability, innovation, safety, and sustainability. There brand revolves around keeping a high standard to ensure that the customer receive the highest quality product and service which keep them loyal to the brand. Toyotas four core values: Customer first Respect for people International focus Continuous improvement and innovation. Target Audience Toyota covers a wide market sector that caters for families with its range of sedans to other vehicles such as four wheel drives, sports cars, luxury vehicles and small hatchbacks and buses. The age demographic that Toyota mainly targets are early 30s to mid 50 year old consumers. Toyota aims to target all possible sectors and just recently cracked into the large car market with their Toyota Aurion sedan. This was marketed to large families and was proved successful after taking the title of best large car of the year in 2009 by Australian consumers. Toyotas latest marketing attempt was to target the generation y sector with a new small car called Rukus, which Toyota calmed that it will appeal to the young consumers. Its boxy shape and edgy urban styling are anything but boring, so youll never blend in. As described in the Toyota website, claiming that to be different is an important factor when it comes to marketing to the gen y consumers. They are also targeting the environmental conscious consumers, who want to do their part in reducing their impact on the environment by limiting CO2 emissions. Toyota developed an advance hybrid technology which it has implemented in two of its vehicles the Prius and Camry. The hybrid technology combines fuel and electricity to power the engine. Toyota strives to become the leader in innovation of new vehicle technologies. Toyotas Marketing Mix Elements 4 Ps Toyotas marketing mix consists of the 4 Ps which make up the basis of Toyotas overall market strategy. The 4 Ps stand for; Product Price Promotion Place Product A good product can be self marketed when it benefits the consumer demand. When marketing a product, it must differentiate to what a competitor is offering by features, design packaging, services, warranties, safety and environmental impact. Toyota offers a wide range of products that meet the demands of the consumer while being different to the other car brands on the market. There product range is segmented into four areas each meeting the needs of what a consumer is looking for in a vehicle. Toyotas product market contains the following Passenger consisting of small, mid size, and large cars. Aurion, Camry, Corolla, Rukus, Tarago, Yaris. 4WD SUVs Kluger, Landcruiser 200, Prado, Rav4 Commercial Coaster, HiAce, HiLux, Landcruiser 70 Hybrid Camry, Prius Toyota offers with its products after sales services, such as Toyota Service Advantage which includes capped price servicing, specialist technicians, and genuine parts. They also offer financing at a low rate so that consumers are able to have the product sooner. Price The prices set for products plays a major role in its marketability. The pricing of vehicles in Toyota depends on what the consumer wants to include in their vehicle. They set a base price which then increases if a consumer wants to modify or add options such as metallic paint, wheels, body kits or extended service warranty. This gives the consumer more choice and flexibility as to how they want their vehicle to be when they purchase it. The price of vehicles in the range can start from $18,990 to a more premium price of $80,000 or more dependent on the make, model and add options. The pricing of Toyota vehicles are higher in some areas in comparison to its competitors, but its main selling point is that they sell you a top quality product with great service and parts, that is also reliable and has the highest safety standards. Promotion Promotion is way of communicate to consumers and grabbing their attention to make a sale. This usually involves three ways of effective promoting through advertising, public relations, and sales promotion. Toyota uses various methods when it comes to promotion, advertising through television, radio, internet, newspapers, billboards, yellow pages, flyers, brochures and word of mouth. They keep reiterating that they are a car company that provide quality, durability, reliability, innovation, safety, and sustainability. Toyota over the years uses catchy slogans to draw attention to their brand. When a person hears oh what a feeling! they directly associate it to the Toyota brand, and recall the television ad of a person jumping and freezing in mid air. This is the most recognised slogan in advertising which they have used since the 1980s in Australia. Toyota teamed up with a renovation show called The Block in promoting their new model Yaris. This is seen as a smart promotional strategy as they are sponsoring a popular show; in turn this extends Toyotas reach to their audience. They also offer a chance to win a new car which also makes the consumer want the product more by enticing them that they have a chance of winning. Place Distribution or place is a very crucial element of the marketing mix as the main thing that must be addressed is how we reach the consumers. Toyota sells its vehicles through its dealerships across Australia. Sales are mainly made to public consumers on a one on one basis with their selling staff. Toyota has also established distribution channels overseas with more than half the vehicle manufactured in Australia being export to regions such as the Middle East. The availability of Toyota vehicles has become very easy to all consumers in Australia and overseas. The internet has also opened a major channel as consumers are able to inspect, enquiry and purchase a vehicle without leaving their home. SWOT Analysis Strength Weakness Market leader with 21% market share Strong brand image Customer loyalty Car manufacturing leader Quality issues (due to recalls) Production capacity Pricing Opportunities Threats Producing more environmentally friendly vehicles Targeting the younger demographic Product recalls Rising oil prices Production costs Downturn in economy Limitations The report presented many limitations, which interrupt some of the methods such as the collection of data and research. The follow issues where faced while doing the report Information when it can to investigating Toyotas marketing strategies as a whole the information was limited and inaccessible. Interpretations had to be made based upon the limited information that was provided, and observation. Survey Surveys proved to be a challenge as people were not interested or willing to take part in the survey. Analysis as there was lack of marketing information available about Toyota, secondary sources of information had to be used which could prove to be inaccurate Recommendations The recommendations that Toyota may apply to improve their marketing mix can be drawn upon in the follow; Product When it comes to Toyotas product range they are missing key markets that other car brands have successfully achieved, such as introducing a wider range of large cars for large families, also target young consumers who are able to afford a Toyota vehicle they should start with mid 20s then work their way down the age bracket as teens might not find Toyota affordable which puts then off the brand. Toyota should also expand their hybrid technology to the smaller cars which has not been done yet. Price when it comes to affordability Toyota misses the mark, even though it thrives on quality and services the price seems to be inflated and is further inflated when a consumer wants to add a certain feature. I recommend that they offer a bundle or package deal such as free insurance for a year or free fuel to make the purchase seem worth it. Promotion Toyota should start advertising on social networks if it is to target the young age bracket. Also making ads that will appeal to the young generation but without losing all identity of Toyota. Coming up with a new catchy slogan to get the consumers involved. Offering more sales, discounts and offers that benefit the consumer, starting a loyalty program for the customers, keeping them informed. Place Toyota has positioned its self in the number one spot, to continue being a market leader they must improve their distribution channels such as the dealerships which are located in areas of low income earners, and retirees which decreases sales. Conclusion Drawing upon all the research and results, Toyota has built an industry which people associated quality, durability, reliability, innovation, safety, and sustainability. They have established themself as Australias leading car brand with their wide range of vehicles that suit any consumer. There pricing is somewhat high but its a reflection of the quality and service they provide. Toyota has become an internationally recognised brand that thrives on customer satisfaction and loyalty. The further development of becoming a sustainable car manufacturer, appeals to the public as they are showing their commitment in sustaining the global environment. They are yet to develop a successful marketing strategy when it comes to appealing to the younger consumers. Appendix Survey Structure Toyota Australia Survey Age: Gender: For each item identified below, circle the number to the right that best fits your judgment of its quality. Use the scale above to select the quality number. Description/Identification of Survey Item Scale Strongly Agree Neither Strongly Disagree Toyota is a brand that you can trust 1 2 3 4 Toyota is a brand that is reliable 1 2 3 4 Toyota is seen as innovative 1 2 3 4 Toyota products are affordable 1 2 3 4 Toyota cares about the environment (sustainability) 1 2 3 4 The offer a large range of vehicles 1 2 3 4 Easily identified from other brand 1 2 3 4 is appealing, fresh and vibrant 1 2 3 4 fulfils the consumers needs 1 2 3 4 makes you want to own a vehicle 1 2 3 4 offer flexibility and options 1 2 3 4 Toyota is customer focused 1 2 3 4