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Toyota Precepts
‘Endless creativity and inquisitiveness’
Marketing Analysis Report
EXECUTIVE SUMMARY
This paper aims in bringing out the general aspects of the automobile industry in Asia. Special attention has been given to the brand Toyota in Malaysia. As the company is in recent news the company has been identified and proved that the marketing strategies and the other attributes relating to the production are updated often based on the need of the customer. The company can save itself from any bad brand images, if the company is able to correct them even before it comes to the notice to the customers. Thus if this auto correction strategy is adopted, then that brand can remain king in the minds of the customers. If a company is not addressing the customer’s complaints in a efficient way then customer will be annoyed and nobody can save the brand. The report throws some light in these regards and has tried to tap all the potentials and the problems of Toyota Motors Company in Malaysia. The report also covers various marketing strategies, SWOT and value added services of Toyota. Toyota percepts lead to their business success worldwide. Their percept on ‘Innovation and Creativity’ paved way for adopting right business tactics and strategies to capture the market and to sustain leadership.
TABLE OF CONTENTS
    SNO
    CONTENTS
    PG NO.
    1.
    INTRODUCTION
    
    2
    METHODOLOGY
    
    3.
    SITUATIONAL ANALYSIS
    
    4.
    SEGMENTATION, TARGETING AND POSITIONING
    
    5.
    SWOT ANALYSIS
    
    6.
    RECOMMENDED OBJECTIVES AND GOALS
    
    7.
    RECOMMENDED MARKETING STRATEGIES
    
    8.
    CONCLUSION
    
    9.
    BIBLIOGRAPHY
    
INTRODUCTION
“Be ahead of the times through endless creativity, inquisitiveness and pursuit of improvement”
Malaysia is a large market for automobile industry. With the onset of growth in various industries like telecommunication, IT, manufacture, service, etc. The conversion rate from two- wheeler and four-wheeler has seen a sudden growth. The purchasing power of the people in Malaysia has also increased with many youths after professional degrees get into good jobs with a high pay and immediately they start investing in car. There is a 45% increase in sales of the 4 wheeler when compared to the sales of the four wheelers last year. There came into market various cars affordable by even a middle class family. This is supported by a survey done in Asia by IIM. But this is a general theory applied for low range of cars.
But our study of concern is TOYOTA with regard to the Malaysian market. TOYOTA serves the niche market. In this paper we are going to study how TOYOTA grew up to a giant corporation, its performance, its future path and changes required in business strategies
Toyota’s journey started in the year 1918. It has completed 75 years of its existence, but has gone through various stages towards its growth. In the initial stage Saki chi Toyoda invented something for the textile industry in Japan, which then made a great change in the automobile industry. It was a power loom which he had designed. It was Kiichiro who started the Toyota Motor Corporation in the year 1937. He was the person who introduced the Just-in-time concept. This was the first automobile industry who also applied the Kaizen methodology. It was in the late 1950’s Toyota started to concentrate into foreign markets. The first country for these Japanese to concentrate is USA. They made a great hit in US market. The quality of the engine was amazing. They also used the concept of eco friendly engine.
They were the first company to be awarded with Deming application prize for application of quality control. Their pricing in Malaysian market starts with RM 243,015 in the car range for the car Toyota 86, and the maximum being RM 72,417. In the hybrid range the minimum starts with RM 97,313 and the higher model is priced at RM 139,915. The SUVs and 4WD starts at RM 88,491 and the higher range is at RM 76,305 for the model Hilux. The van model is priced at RM 97,136. The MPVs starts at RM 65,888 for the model Avanza and the higher range of pricing is made at RM 97,734 for the model Innova. The marketing strategy used by Toyota also varies as the market segment varies for customers from Toyota Etios to Toyota Land Cruiser.
While throughout the world last year there was a dip in the sales of Toyota, USA being at the top but in Asia, there reported to be an increase in sales by 24%. In Japan also there was a dip in the sales for Toyota last year. When considering why such a thing has occurred is there registered many complaints against the brakes and the accelerator of the cars manufactured by the company and this is leading to many road mishaps which had also lead to many of the death cases. In Malaysia, the vehicles do not speed as they do in other European and American countries. This might be one of the reasons for the increase in sales only in Asia.
The other reason could be people in Asia may be becoming environment concern. The youth segment has started to do things in such a way as to save the Universe. One example has been quoted in the Marketing Management Text Book By Kotler Keller that the Toyota Prius in Asia was hybrid version of gas and electric engine. This was introduced to the market in the year 2001. It was expected that the sales would reach up to 300000 cars within five years of launch of the product. But it was found in the year 2004 that there were waiting list orders which could be completed in a period of six months. Even though this was priced high the people are ready to shell out extra money for using an eco friendly gadget.
METHODOLOGY
The Research methodology used in this study is descriptive. The data used in this study are secondary data taken from various sources like websites, official website of Toyota, Textbooks, etc.
SITUATIONAL ANALYSIS – CURRENT STRATEGIES
With the current problem arised with the hybrid varieties of Toyota, the machines which were rolled out during years 2001 to 2009 are facing problems with the accelerators and the brakes. This is leading to many accidents around the globe and they have stopped the manufacturing of...