Assignment - Analysis huge success of Toyota case.pptx

Toyota case

1. Group 1: Toyota Case Nguyen Duc Anh Minh – Do Thi Khanh Huyen I. Introduction II. Summary of case study III. Discuss The huge success of Toyota in the car industry A car brand for everyone - right or wrong? IV. Conclusion V. References

2. Introduction - At the heart of a great brand is a great product. To achieve market leadership, company must offer products of superior quality that provide unsurpassed customer value (Kotler, P., & Keller, K, L., 2016). - In recent decades, Toyota has conquered the global car market with a relentless focus on develop product. - The purpose of this report is to analyzing the success of Toyota through setting their product strategy.

3. Summary of case study 1. Toyota’s evelopment history - Founded on 1937 in Toyota, Aichi, Japan, Toyota rapidly become the leading firm in the automaker industry. - C hallenges : + F inancial crisis in 1950 + T he 1973 oil crisis => Still survived by respon ses to consumers ’ desire : offer smaller , more fuel-efficient automobiles such as Toyota Corona, Toyota Corolla and Cressida - a fuel-efficient car but space and amenities like air conditioning and AM-FM radio.

4. During the 1980s and 1990s , Toyota gradually added more different models in price, size, and features such as Camry - a four door mid-sized car that offered more space than the Corona and acting much like a pickup truck. Nowadays, Toyota introduced a full size pickup truck - Tundra and several sporty and affordable cars for young adults .

5. In 1989, Toyota launched a luxury division car - Lexus, starting with white-glove treatment at the dealership. U nderst anding that each country has different definitions of the luxury , Toyota varied its advertising campaign based on each country and culture. Specifically, + In the United States, it means comfort, size and dependability + I n EU , meanwhile it pays more attention in detail and brand heritage.

6. In 1997, Toyota launched the first mass - produced hybrid car named the Prius - the combin ation between the Corolla and the Camry making a clean-energy car . Before the second-generation Prius hit showrooms in 2002, dealers had already received 10,000 orders.

7. Toyota created special kinds of vehicle for specific target groups such as Scion for young adults. Understanding that market now prefer personalization, the company decides to build the car mono-spec at the factory, with just one well-equipped trim level . Toyota marketed the Scion at music events and established showrooms which is not only a place where young people go seeing a car , but it is also a comfortable place to hang out .

8. "If there's a market or market segment where they are not present, they go there" Toyota has integrated its assembly plants around the world into a single giant network that can customize cars for local markets and shift production quickly . Toyota is thus able to fill market niches inexpensively, without building whole new assembly operations.

9. Toyota automobiles have consistently ranked high in quality and reliability over the years. In 2009 and 2010, however, the company recalled more than 8 million cars for several problems ranging from sticking accelerator pedals to sudden acceleration to software glitches in the braking system. This affected to the Lexus, Prius, Camry, Corolla and Tundra brands. Next , coping with an earthquake and tsunami in Japan in 2011, Toyota lost billions of dollars due to the destruction of Toyota's plants and suppliers. Thanks to such challenges, they have learned valuable lessons about maintaining sustainable growth (Akio Toyoda, 2013).

10. The strong focus on hybrid vehicles has been profitable and helped the company rebound. B eliev ing that "there are many more gains we can achieve with hybrids" , Toyota sold its 4 millionth unit in 2012 and plans to continue to innovate hybrids, Today , Toyota offers a full line of cars for the global market, from family sedans and sport utility vehicles to trucks and minivans. In 2016, Toyota earned more than 28 trillion yen and sold 8,681 million vehicles (Toyota, 2017), hoding the position as the world's largest carmaker .

11. Discuss Toyota has built a huge manufacturing capacity that can produce millions of cars each year for a wide variety of consumers. It become s so much bigger than any other auto manufacturer for FIVE REASONS: N ew product line with tangible characteristics and intangible characteristics A ct based on preference of the customer market segment A mixed strategy including both standardization and customization C ontinuous research and improvement to make cars better C ompetitive guarantee policy

12. Reason1 : Toyota develops international competitiveness by new product line with tangible characteristics and intangible characteristics (images, setting, guarantee and warrantee...). They really meet with the customers’ wants and in the international market : - When customers wanted smaller, more fuel-efficient automobiles, Toyota offered fuel-efficient cars. - When teenagers want more personalization, the company builds the car mono-spec at the factory, with just one well-equipped trim level, letting customers choose from dozens of customization elements at dealerships.

13. Reason 2 : Toyota acts based on preference of the customer market segment: - O ffer ing a full line of cars for the global market, from luxury, family sedans and sports utility vehicles to trucks and minivans . - L aunch ing more model ranging in price, size and features. V ehicles are produced either with combustion or hybrid engines. C reating special kinds of vehicles for specific target groups such as Scion for young adults.

14. Reason 3 : Toyota chose a mixed strategy including both standardization and customization. They have standardized their business commitment to produce high-quality, trustworthy cars and maintain the prestige of the Toyota brand. Also they customize the mix of products and their products to meet local needs as well as different customer segments. With luxury cars, Toyota understood that each country defines luxury differently. In the United States, it mean s comfort, size and dependability , while in EU, it pays more attention to detail and brand heritage. As a result, they varied its advertising depending on the country and culture. With cars for young adults, Toyota marketed it at music events and has showrooms where young people feel comfortable hanging out and not a place where they just go stare at a car.

15. Reason 4: Toyota always strives for continuous research and improvement to make cars better. In particular, Toyota’s plants can make eight models at the same time which brings a great productivity and market responsiveness. Also Toyota can relentlessly innovate, in particular, a typical Toyota assembly line makes thousands of operational changes in a year. Employees see their purpose as threefold: making cars, making cars better and teaching everyone how to make cars better. Besides, Toyota encourages problem solving and always looking to improve the process by which it improves all other processes

16. Reason 5: Toyota have a competitive guarantee policy : P rovid ing guaranteed auto protection service to all types of the automobile. T ailor ing Toyota’s country-specific warranty policies based on competitors' policies.

17. Reason 1 By listening to consumers , analyz ing what customer s want and respond ing to customer need s , Toyota is now manufacturing a car brand for everyone. - O ffer ing a full line of cars for the global market, from luxury Lexus line, family sedans and sports utility vehicles to trucks and minivans . - D ivid ing t he market segment and launch ing more model ranging in price, size and features. - Creating different car lines for different customers. Discuss Toyota has done the right thing by manufacturing a car brand for everyone

18. Reason 2 Toyota acts based on what customer s want. + Trying to develop the auto according to the customer perception + S atisfy ing each customer through listening and understanding + P roduc ing and distribut ing its automobile around the world + Acting according to individuals’ perfection at each country E.g: Toyota sell s right-hand cars in Japan, Australia, South Africa and the United Kingdom, but sell s left-hand drive cars in the continental United States.

19. Conclusion While p roduct is the first and the most importan t element of the marketing mix, product performance is the key to brand success (Kotler, P. and Keller, K. 2016). Great companies make great products as evident by Toyota. By product strategy, Toyota has buil t a huge manufacturing capacity that can produce millions of cars each year for a wide variety of consumers. Toyota was able to become so much bigger than other auto manufacturer s. It can be said that Toyota has done the right thing by manufacturing a car brand for everyone .

20. References Kotler , P. and Keller, K. (2016). Marketing management. 15th ed. Harlow: Pearson Education Limited. Toyota (2017), Annual Report Sustainable Management Report 2016, ttp :// www.toyotaglobal.com /sustainability/common/viewer /?file=/sustainability/report/ arsmr /pdf/ su stainable_management_report16_fie.pdf