Toyota Marketing Mix
Marketing Mix of Toyota:
After being toppled from the first position by Volkswagen, Toyota is now the second biggest carmaker in the world. In 2016, the Japanese carmaker, sold more than 10.175 million vehicles globally. Toyota makes and sells motor vehicles and their parts. Not just vehicles, Toyota also provide financial services through its financial segment called Toyota Financial Services (TFS). In its Automotive segment the automaker designs, manufactures assembles and sells a vast range of vehicles. The car brand is also involved in the development of Intelligent Transport systems. Through its financial services segment, Toyota provides purchase and lease financing to the vehicle dealers and customers. There is also a third business segment that deals in all other business ventures of Toyota including designing and making prefabricated housing, IT related businesses, sales promotions etc. The company was founded on August 28, 1937 by Kiichiro Toyoda. It has its headquarters in Tokyo, Japan.
|Name of the company: Toyota Motors|
|Name of the CEO: Takeshi Uchiyamada|
|Number of employees: 33,765|
|Headquarters: Tokyo, Japan|
|Industry: Auto and Truck manufacturers|
Here is the Marketing Mix of Toyota including its four P’s Product, Place Price and Promotion.
Toyota makes a vast range of vehicles that includes cars of various makes and designs. Several of its vehicles are best sellers around the world and have gained immense popularity. Apart from their design and looks, the reason is fuel efficiency and technology. Once, the Japanese carmaker’s name was cited as a synonym for excellence in vehicles. The popular saying was that if it is not Jap, it’s crap. From Sedans to hatchbacks and Station wagons, Toyota makes and sells a vast range of popular and beautiful vehicles. A brief introduction to the Toyota’s product line is provided below:
Sedans: Century, Camry, Prius, Mark X, Corolla Axio
Station Wagons: Avensis, Succeed, Probox.
Hatchbacks: Corolla, Aqua, Ractis, Portze, Passo.
Minivans and Cab wagons: Estima, Isis, Wish, Alphard.
SUVs: J Cruiser, Land Cruiser, Land Cruiser Prado
Vans, trucks and buses: Hiace, Townace, Liteace.
Lexus: LS, GS, HS, IS.
Welcabs for the elderly and disabled: Crown Royal Saloon, Crown Comfort, Comfort.
Apart from these vehicles, the carmaker also produces spare parts, accessories and Marine products. It makes and sells spare parts like spark plugs, oil filters, engine oil, bumper, headlights etc. Toyota also offers financial services for its customers and car dealers.
Toyota with its headquarters in Japan is a global brand. It has a global distribution network of 172 distributors. This network of distributors acts as the main sales channel for Toyota. This network is divided into eight regions that include North America, Latin America, Asia, Europe, Africa, China, Middle East and Oceania. Toyota sells its products through its showrooms globally and provides maintenance services through its service centers. Its design and R& D centers are located globally from US to Belgium. It also has numerous assembly plants since it builds vehicles to suit the preferences of each individual market. It has built great knowledge centers for the public that include museums and plant tours. The Asian markets including India and China have been a significant part of its growth story. Toyota has focused on efficient supply chain management and developing a strong distribution network.
Toyota has used a market oriented pricing scheme to stay competitive in a highly competitive market. It makes a vast range of products that are priced differently from high priced premium cars to low priced ones. However, the prices are also based on the product’s value. The prices vary widely depending on the make and the model. In this way, Toyota serves all categories of customers from middle class to the upper class. Its sports vehicles and premium vehicles and made for the high end segment and priced higher. However, it has introduced several small cars in the Asian markets because of the high demand for the low priced alternatives.
Toyota spends heavily on the marketing and promotion of its brand and products. In US alone it has kept spending close to $2 Billion per year. This large spending goes to several channels including both traditional and digital channels. Apart from its sales force, the company also employs other methods of promotion and advertising including public relations and media publicity.
However, based on the company’s brand image and size, it already receives a lot of exposure in the media. Still, the brand spends on digital advertising, print and TV advertising as well as outdoor advertising. It has maintained the image of a responsible and technologically innovative company which also helps with the marketing and promotion of the brand. It has invested in several environmental initiatives which has helped it create a positive brand image.