Marketing Plan of Toyota

1. Executive succinct Toyota tug potbelly Australia (Toyota, Australia) which g bestrides with a broad(a) range of c open railway political machine parts has manufactured the Prius automobile in the self-propelling manufacture which is starness of the best crisscross synergy aim in today fear surround. And body forth a agonistic reinforcement to an first(a)(prenominal)wise business by achieving and surroundal amicable cable political machine and providing the best efficient render system. The report begins with the introduction of the ph aner where apprize background study on the family and discussion of the trade in which the Toyota hap confederacy operates is explained.A menstruation Situation analytic thinking is conducted which gives a part down in the mouthstanding of Toyota, its una deal products, competitors and contrary environss in which it operates. After considering the cozy and external surroundings a pulverization Analysis is conducted which tells us the strengths, weakness, opportunities and threats of the business environment. On the basis of these factors the vital issues be place and trade objectives and strategies possess been defined. Towards the end a recommendation of change and implementation jut has been developed to improve the product.The report contains diametrical graphs which show the current position of the come with and the performance of the product in the current market. 2. sidestep of Contents 1. Executive Summary2 2. Table of Contents3 3. Introduction4 4. Mission description5 5. Situation Analysis6 a. in frozen(p) environs6 i. Products6 ii. monetary and non-financial situation6 iii. Channels8 b. away Environment9 i. Markets9 ii. Competitive environment9 iii. stinting environment9 iv. demographic environment10 v. cordial and Cultural environment11 vi. Political and honorable environment11 vii.Technological environment12 c. dress up analysis13 d. Critical issues14 6. selling Objectives15 7. trade Strategies16 a. Target Markets16 b. Product strategies16 c. set strategies17 d. Promotion Strategies17 e. Distribution Strategies17 8. Recommendation for Change18 9. writ of execution blueprint19 10. References20 I. Bibliography20 A. Appendices23 3. Introduction Toyota go good deal Australia (Toyota Australia) is sensation and only(a) of the Toyota japans planetary manufacturing centimeres which deal with manufacturing fomites. It is the largest automotive companies of the world.It provides enormous term perpetration to the different domestic and export markets. Toyota Australia cutting edge finish upice and manufacturing activities atomic number 18 based in Melbourne. While the gross gross and marketing trading trading operations be based in Sydney. Toyota, Australia employees oer 4500 throng and more than thousands atomic number 18 employ for its providers and retailing networks. Toyota Australia loc whole(prenominal)y built c ars same(p) Camry and Aurion. And it imports a wide range of passenger, four-wheel adopt and commercial vehicles including Corolla, LandCruiser, Yaris, Tarago, Kluger, HiAce, RAV4, HiLux, Prado and the revolutionary crossbred shape Prius.In addition to this it withal distributes and sells the highlife Lexus brand of vehicles. Toyota is Australias largest vehicle exporter and in 2008 exported 101,668 cars to everywhere 20 countries worldwide. This hard export point contributed over $1. 9 cardinal dollars (including move and accessories) in revenue for Toyota Australia in 2008. Cited on Toyota Website at http//www. toyota. com. au/about/ fellowship Toyotas Australia p atomic number 18nt political party, Toyota travel sess (TMC) is Japans largest automotive companies in the world.It was established in 1937, Toyota Group manufactures different changes of automotives across 27 countries and regions throughout the world. And its vehicles be sell in more than 170 countrie s and region under different brand names resembling Toyota, Lexus, Daihatsu and Hino. Toyota Australia leads the automotive industry with respect to the environmental technologies with the success of the hybrid locomotive engineering science utilize in Prius. This report is going to reach out a situation analysis for Toyota Australia. It impart consider different elements want up commonwealth environment, external environment, SWOT analysis and critical issues.With the help of different marketing capabilities and increment process marketing plan military rank for Toyota Australia will obtaind. We will consider cut-ranking interrogation for Toyota, Australia for analysis. Different sources for the secondmentary research data which ar used for this marketing plan are as follows Text disc, meshing data (company website and different web resources) and ledger articles. 4. Mission Statement Toyota Mission Statement reads as follows We deliver outstanding automotive p roducts and services to our customers, and enrich our community, partners and environment.The pile is to be the almost respected and respect company. The four core values of Toyota, Australia are * Customer cast downle * Respect for mint * International focalisation * nonstop re maneuver and re propagation Cited on Toyota Website at Toyota mark synergy r every last(predicate)y Philosophy For Toyota, lumber is not just a see to it its a bringive style of life. Toyota believes in kaizen (continuous improvement). It has made a commitment to manufacturing, innovative technologies and social contribution that will parent the musical note of life. A better way of motoring has been developed using the hybrid Synergy drive technology.It gives confidence to over 2 million drivers worldwide. The car which unitary drives is intentional and locomotiveered with the highest stocks of quality and reliability. Toyota is the worlds leading hybrid system in the automotive ind ustry. (Toyota 2009) 5. Situation Analysis a. national Environment i. Products Toyota Prius is a vehicle which is changing the world. It combines sumptuosity, technology and environment. Its a 1. 8 Petrol / Electric crossing Synergy revolt. This car is the worlds most advanced hybrid system. Cited on Toyota Website at It provides uncompromised performance.Its key features are Smart despatch &038 Smart, 6040 split retractable rear seats, Ecological plastic, LED headlamps, trey alternative driving modes, Superior hybrid synergy drive system, first unbelted Toyota engine, shift by wire, Solar public discussion form, Touch Tracer display, Head up display, Remote demeanor Conditioning System, Pre-collision preventive system, Dynamic radar cruise get over, collar pasture brake signal, Intelligent park assist, brake by wire, fomite stability control and traction control. Cited on Toyota Website at ii. fiscal and non-financial situationThe global frugal crisis in July 2008 had a major wedge on automotive markets. Toyota, Australia experienced a quick deterioration in vehicle gross revenue because of the downturn in the rescue. This in turn resulted in lower moolahability. Vehicle manufacturing and gross revenue During the year to 31st prove 2009, Toyota Australia manufacturing operations produced 130,228 Camry and Aurion vehicles for domestic and export markets. due to a si unexampledy changes performance for the first six months, the company was recognized in the Australian industry to achieve highest gross gross revenue record during the year 2008.In this arrest the domestic retail sales reached 238,983-2,336 units frontward on the previous year, and the sales majority represented a market consider of 23. 6 per cent. in that location was 19. 2 per cent decrease in Australian industry invigorated car sales from January to March 2009 as compared to the same quarter in 2008. Toyota Australia (including Lexus) change 16,498 fewer cars i n the first three months of 2009 as compared to the same consequence in 2008, which represented a 26. 6 per cent decrease in sale volume. During January 2009, the company implement a public scathe extend for some of its import vehicles due to a weaker Australian dollar. export Market Toyota Australia is the fields largest vehicle exporter. In 2008/2009 the company exported 94,955 Camry and Aurion vehicles to 20 countries which were nub East, newfound Zealand and Pacific Islands. This was down from 99,395 in 2007/ 2008, due to the decrease in essential from Middle East Markets following the start of the global financial crisis. withal for the schedule year, Toyota Australia exports reached 101,668 which was an all time record for the Australian automotive industry. The export program acquire $1. 9 billion in revenue over the same period.However for second half of the fiscal year, due to the global economicalal crisis impacted the intact business resulting in disdain o f sales in export and domestic markets. Global economic conditions will result in exports cosmos lower in the 2009/2010 period. Despite the snarled marketing conditions, the company continues to set unfermented sales record. On a stupefy basis, sales records were set for Corolla, Prius, Kluger, Yaris and HiLux. The 11,000th Prius Vehicle was s gray in Australia during the period and globally, the one-millionth Prius was sold in April 2008.The decline was due to the impact of the global economic downturn and changes to highlife political machine Tax implemented by the Federal regime in 2008 and increase competitor activity by companies like Honda. (Toyota 2009) iii. Channels Toyota automotives are available at different dealers over the world. It uses different desegregation web services to provide learning of the different vehicles online. It in like manner provides an option to book a test drive online on http//www. toyota. com. au/book-a-test-drive. Cited on Toyota Websi te at nonpareil can also get eBrochure and printed brochures and all the information for the vehicle on the Toyota Australia website (www. toyota. com. au). The briny headquarters are in Japan. b. outer Environment i. Markets The demand for cars has increased in recent times so the strategic aspect for the company is to get an take over market share in Australian market. The figure 1 is shown in Appendices which tells us the current market share of the company and Figure 2 shows that sales of the new motor cars in recent days has increased.As there is a refer for providing greener environment across the world, there exists an prospect for Toyota Australia to arrive at better can economy and diluted firings car which caters to the need of environment. Toyota Prius is one such hybrid synergy drive system vehicle which provides best combine greenhouse and air pollution rate of any vehicle sold in Australia. Prius is officially our greenest car. As cited on Toyota Website at ii. Competitive environment Toyota Australia strong competitors in every segment are Ford, GM, Honda, Mercedes, BMW and Volksw climb onn. Car Sales. com confine 2009) Toyota Prius main competitors inwardly the market are Honda Civic crossbred and Ford Fusion Hybrid car. Toyota Prius belongs to the lower/medium passenger car segment (C). Currently Toyota Prius provides maximum provide cogency as compared to other brands. It comes with a standard 1. 8L l4, 16 values engine. (ANDiDAS. com 2003) Comparison As cited on Yahoo Website at iii. Economic environment Australia is a stable, democratic country with a strong warlike economy. Australia has one of the most outstanding economies of the world with good workforce.There is a flexible repel market, an efficient government arena and a very competitive business sector within the country. The Australian economy is one of the fast growing within the world. Australia investiture in ICT as a helping of realise Domestic Product is the trey highest of Organisation for Economic Co-operation and growing countries. Australia is strong in Information and communication technology (ICT), innovation systems, business environment and human being resource development. (Australian Department of immaterial personal matters Trade 2009). gross domestic product for Australia expanded to 0. 0% over the last 4 quarters. The Australia Gross Domestic Product is worth 1015 billion dollars or 1. 64% of the world economy, as mentioned by the World Bank. Australias economy is booked by its services sector, yet its economic success is based on oodles of agri heathenish and mineral resources. Australias relative advantage in the export of primary products is a indication of the natural wealth of the Australian continent and its small domestic market. The country is a major regional financial centre and a fundamental component of the global financial system.Figure 3 in Appendices shows the Australian GDP offshoot Rate. (Tra dingEconomics 2009). Due to the increase in discharge prices, consumers will realise the value to the quality and services the car provides, rather than price. The Toyota Prius car with the hybrid system which provides can competency and reduce emissions will definitely take in a long way as its environment friendly. iv. Demographic environment The estimated muckle growth rate in 2009 for Australia was 1. 195%. The total world estimated was 21,262,641 out of which 18. 6% of the existence was surrounded by the age assembly of 0-14 long time , 67. % of the population was between the age convocation of 15-64 long time and 13. 5% of the population was between the age gathering of 65 years and over. The target customers for Toyota Australia would parentage into these two age meetings ranging from 15 64 years and 65 years and over. The age structure is equivalent to that of New Zealand and the USA. (Kotler, 2007). These are the potency customers and Toyota necessitate to focus on them as they fall into the potential market for buying cars. In Australia 99% of male and female population are literate. The statistic show that 78. % of people chat position, 2. 5% of people say Chinese, 1. 6% of people call Italian, 1. 3% of people speak Greek, 1. 2% of people speak Arabic, 1% of people speak Vietnamese , 8. 2% of people speak other language and 5. 7% of people speak unspecified language ( As per 2006 Census). There are different ethnic group like White, Asian, Aboriginal and others. Different pietism like Catholic, Anglican, Uniting Church, Presbyterian and Reformed, Eastern Orthodox, other Christian, Buddhist, Muslim and others exist. (Central acquaintance Agency 2009). v.Social and Cultural environment Australia has a multi cultural environment. It has different cultural group from all over the globe. Its diverse culture reflects at large(p) democratic traditions and social and cultural influences of the millions of migrants who assimilate settled in Australia since World contend II. Australias original inhabitants, the Aboriginals and Torres Strait Islanders peoples, run through been living in Australia for at least(prenominal) up to 40,000 years. The rest of Australias people are migrants or descendants of migrants who have arrived in Australia from about 200 countries.The specify feature of todays Australia is the cultural diversity of its people, and the way they are joined to each other. Australian has the right to express their culture and beliefs and to participate freely in national life. (Australian Department of alien personal business Trade 2009). Toyota Australia involve to define an world(prenominal) standard which caters to the different cultural group so they can target the potential buyers within the market. vi. Political and sound environment The governmental system in Australia consists of a federal official parliamentary democracy. There are 6 states and 2 territories in Australia.The inte lligent system is based on English common law accepts compulsory ICJ jurisdiction with reservations. There are no political pressures from the group leaders thence the company can start the business in Australia. (Central erudition Agency 2009). The only bother here was when the Luxury Car levy was implemented by the Federal Government in 2008, Toyota Australia experienced a decline in sales on their luxury car segment range. Also environmental and safety measures ineluctably to be implemented within the car with respect to the legal requirement for Australian standards. (Toyota 2009). vii.Technological environment In Australia the proficient environment changes rapidly. or so of the technologies related to automotive industry are as follows Environmental engineering like hybrid synergy drive, Safety Technology, IT establish Approach, Fuel Cell Technology, Personal Mobility and golem Technology which are used in the modern cars. Such features increase the sales figures of th e company. For drill In Toyota Prius the hybrid synergy drive which gives a better fuel efficiency and reduces emissions is one of the key features which gave the fortune to increase the sales figure of the company.Toyota was the trailblazer for this hybrid synergy drive car and it taked the market using this technology. However these features also increased the terms of manufacturing the car. So Toyota involve to keep up with the pace, as the technological environment keeps changing rapidly and the competitors expertness come up with a better liftd fluctuation of this technology. (Toyota Japan 2009). c. SWOT analysis Toyota Prius Car, Australia SWOT analysis make within the Australian market Internal Environment Strength Weaknesses * Toyota Australia is the countrys largest vehicle exporter. Its reliable and Eco- environment friendly. * Continuous Improvement and Innovation * Just in Time approach to Production pioneered by Toyota. * Lexus, Corolla and other strong brands * Need to actualize the Australian Culture * Expensive equipment casualty * Costly to manufacture * New Technology can cause potential problems External Environment Opportunities Threats * Hybrid Synergy Drive Technology * Due to the recent economic crisis the petrol price has increased enhance it gives an opportunity for Toyota Prius to code into the market as it works to maximize fuel efficiency. Due to the Australian government regulation in concern with the environment, Toyota Prius will be suited for the market as it will reduces emissions and is environmental friendly. * Strong Competition within the market. Example Honda, Ford, and cosmopolitan Motors * Petrol fuel scathe outgrowth * Availability of Public Transports in Australia Example Train, tram, bus and cab. * Luxury Car Tax implemented by the federal govt in 2008. d. Critical issues The demand capa city decrease for Toyota Prius as it does not focus on some actors which are as follows * The make up structu re of Toyota Prius needs to be rectified. The put ons is reduced due to the cost structure. * Enhance the development of hybrid and dense vehicles which would be the key to the future growth. * apply a more effective cost structure in the areas of production and sales operation. (vBulletin 2009) * The company needs to rectify the problems which are there in the current version of the car. puzzles which relate to electric caral, engine, interior accessories and fuel preservation system. (CarComplaints. om 2009) * Toyota needs to keep investing in the Research and Development of Prius Car for new innovation. As it already possesses expertise in producing hybrid cars. So it is essential for Toyota Prius to keep investing in the Research and Development of the car engine to increase the fuel efficiency and provide a competitive advantage in the market. * Expand the chain of the emergency value analysis to achieve cost reduction and reduce fixed cost by 10%. (vBulletin 2009) Thes e are some of the critical factors which if not considered qualification cause problem in towards competitive business environment.Which in turn will affect the sales of the Toyota Prius Car. 6. trade Objectives * Increase the sales for the coming year and acquire the loss which occurred during the economic crisis. * To increase the market share of the company. * To attract new buyers for the car and retain the loyal old customers. * To nurture the brand and standard within the market. 7. marketing Strategies a. Target Markets The Toyota Prius has targeted this car at all levels of consumers. However the drivers ranging in an age group of 40 to 80 year old drive this car as they are environment conscious.Toyota targeted the car which was affordable from mall to lower income groups. It fuel efficiency and s ignition emission is very attractive to this kind of age group. (Sheila Wilson 2005). Toyota is also designed to be used by people who are working in the in the city , beca use it features include switching of the engine whenever the Prius is stop at a red light and give an extraordinarily good fuel consumption and excellent usable performance. therefore Toyota Prius segments the market only by feature two demographic values which is income and age group and hence it targets these two segments of the market. WebPublication Pty especial(a) 2008). The campaign of Toyota Prius says Harmony between Man, record and mould, which means the car, has been absolutely designed for the use of the environment and everyday life. This car belongs to the lower/medium passenger car segment (C). Hence the competition is against the entire (C) car segment. So the company needs to be innovative in a manner. (High Gear Media 2009). b. Product strategies The Toyota Prius has re-engineered the car and pitch the third generation version.The market in Australia is huge and profitable so Toyota needs to launch the re-engineering project quickly and create new innovation t o be a competitive leader within the consumer market. However on the company website it say it plans to launch an urban commuter battery electric vehicle by 2012. To improve the environment the new generation Prius has a 1. 8- l four cylinder petrol engine which replaces the 1. 5- litre engine previous model. It has technology such as the solar internal respiration system and remote air-conditioning system. It has features such as pre-collision safety system and intelligent park assist.It the greenest car ever sold in Australia, thus it provides the lowest pollution emission and low fuel consumption. So Toyota ships company can satisfy the customers and earn profit from the Australian Market. (Toyota 2009). c. Pricing strategies In eyeshot of target consumers, Toyota Company uses excellent technologies for the Prius cars. It is heavy to maintain the original price-positioning dodge. Most of the buyers take for grantedt bother about the price. Toyota Prius car uses the Price Ski mming system. In this strategy the company will set a relatively high price in the beginning and then reduce the price over time.As they are able to get consumers at every price point. Toyota Prius car is based on the innovation of hybrid synergy drive hence this innovation helps the company to use this determine strategy. Competing with price will not support effective development. However, for the company to increase their profit the basic objective is to reduce the potential cost (sunk cost). So it needs to use the price skimming strategy and capture the market before other competitors enter the potential market. And Toyota Company has always been an early innovator to do that. (Aisha Jones Scheffel 2008) d.Promotion Strategies The different promotion strategy which were used by the Toyota Company for the Prius car were as follows telly and print advertisements highlighted the evolutionary aspect of hybrid technology and freedom from depending on oil. Toyota has created onlin e e-brochures with photograph clips which were sent to different people. Toyota also benefited from variant celebrity endorsements that attracted attention to the new Prius car. Toyota also promotes motor show exhibitions. Example The Melbourne Motor Show was the first public junket to display new Prius Cars.Toyota has one unequaled characteristic which is to provide a greener environment friendly car as it produces low emissions. Recently they promoted in an advertisement state Harmony between Man, constitution and Machine. (Ann Rodriguez and Chris summon 2004) e. Distribution Strategies Toyota Company has distribution centres in Australia. In 1999, Victorian lay Distribution Centre was opened at Altona. It uses the unique distribution methodology the Internet. one(a) can find the dealer on the Toyota. com. au website. Dealers are classified with General Sales, Prius Sales, General Services, Prius Services and All Parts. hotshot can get the relevant information of the de aler which would contain the address, Telephone, fax send for and email address. 8. Recommendation for Change * land the fixed cost of the whole process. * up the procedure of the Research and Development. * Build good relationship with other automotive companies in order to increase profits. * Supporting supplier development by funding the on-the-scene(prenominal) process improvement and cost reduction activities. * Supporting dealers to apply Toyota Production System to improve customer service reduce costs and increase productivity. Producing Hybrid cars at the manufacturing plant within Australia. (Toyota 2009) 9. Implementation Plan * The main problem was maintaining a long life of the battery of the car. This is one of the biggest problems of the Prius car and the company should overcome this problem to increase the sales. (ConsumerAffair. com 2009) * The passenger side headlight goes off intermittently. This should be rectified by the company. It is a common problem found in most of the cars. (Howard A. Gutman 2009) * Vehicles engine shutting off, at a swiftness of 35 miles per hour (mph) and 65 (mph). creation advertisement campaign for Green Environment friendly vehicle. * Providing great offers during festival like Christmas and Easter. * Advertising the new features of the third generation car like Remote Air Conditioning System, Pre-collision Safety System, Intelligent viridity Assist and Solar Ventilation System. (The Gale group 2009) 10. References * Kotler, Brown, Adam , Burton, ed. (2007), Marketing, Frenchs Forest Pearson Education Australia. I. 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