Executive Summary

The World is always change, the demand of market different day by day. Toyota Motor Corporation (TMC) has been developing sharply to meet the demands of their market.

With the information was collected from TMC, this report provide the company’s strategy, mission, vision, market that has been assisting TMC was be a success global organization.

The report also has developed the marketing tools for TMC’s business in the future involves:

Toyota’s new long and short term objectives;

Toyota Auris Hybrid new campaign for Euro market.

The details of these tools are listed within this report and if it was applied, I think company will be more successful to improve and maintain the business at highest positioning.

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Table of Contents

Executive Summary...............................................................................................1

Table of Contents...................................................................................................2

Introduction............................................................................................................4

1 Company Analysis.............................................................................................5

1.1 Company Overview:.....................................................................................5

1.2 Company Market:.........................................................................................5

1.3 Company Financial:......................................................................................6

1.4 Vision and Mission.......................................................................................7

1.5 Toyota’s Strategy..........................................................................................7

1.6 Toyota SWOT Analysis................................................................................8

1.7 Toyota’s Activities in past year and comments from management:...........10

2 Toyota’s New Objectives :..............................................................................10

2.1 Competitive advantage:..............................................................................11

2.2 Product Positioning:....................................................................................11

3 Toyota Auris Hybrid new campaign:............................................................12

3.1 Product:.......................................................................................................12

3.2 Place:...........................................................................................................13

3.3 Price:...........................................................................................................13

3.4 Promotion:...................................................................................................13

3.5 Weaknesses of product:..............................................................................14

3.6 Threats of product:......................................................................................14

Conclusion..............................................................................................................14

References..............................................................................................................15

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Introduction

The automobile can help people to travel and transport goods farther and faster, and has opened wider market areas for business and commerce. The number of vehicle in the world is increasing sharply in few nearly year. It is leading to occurring of many environment factors such as CO2 emission, transport traffic. Therefore, development and increase supplying the environment friendly and economic effective products is the main direction of automobile companies.

The purpose of this report is providing the main activities of Toyota Motor Corporation in the past few years and its future plan that shows how the company running its business to meet the demands of market in the past and in the future.

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Company Analysis

1.1 Company Overview:

Established on August 28th, 1937 in Japan, Toyota Motor Corporation (TMC) is one of the largest automotive manufacturers both by production and sales. Toyota manufactures, sells, leases, and repairs passenger cars, trucks, buses, and related parts worldwide. Besides its own 33 plants and manufacturing subsidiaries in Japan, Toyota has manufacturing facilities in 26 other locations, which produce Lexus- and Toyota-brand vehicles and components. Toyota's diversified operations include financial services, telecommunications, prefabricated housing and leisure boats, with the automotive business accounting for more than 90 % of the company's total sales. This company has grown to employ over 316,121employees worldwide.

1.2 Company Market:

Toyota has become a global company, with 51 manufacturing companies in 26 countries. Their vehicles are sold in more than 170 countries. Toyota’s primary markets are Japan, North America, Europe and Asia.

From April 2009 to March 2010 vehicle sale result in Japan is 2,163,000 units and oversea is 5,074,000 units. Vehicles sold by Daihatsu and Hino are included in the vehicle unit sales figures set forth below.

Toyota has high percentage of market share in their primary markets. In Japan, which is the center of its global operations, Toyota has maintained its position as the largest automobile manufacturer for more than 40 years. It held a domestic market share on a retail basis of 45.8% in fiscal 2007, 45.6% in fiscal 2008 and 46.0% in fiscal 2009. The Toyota’s market share is showed in the figures below:

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1.3 Company Financial:

The following table shows the company spends its time and money from 2006 to 2010:

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The total number of Toyota employees was 320,590 at March 31, 2010,320,808 at March 31, 2009 and 316,121 at March 31, 2008.

In 2009, with the bad economic climate Toyota has loss 436,937 million yen. However, in 2010 it has made profit by 209,456 million yen.

1.4 Vision and Mission

Mission of Toyota is to provide safe & sound journey. Toyota is developing various new technologies from the perspective of energy saving and diversifying energy sources. Environment has been first and most important issue in priorities of Toyota and working toward creating a prosperous society and clean world.

Vision is to be the most respected and successful enterprise, delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology.

1.5 Toyota’s Strategy

Toyota’s corporate goal is to achieve continuous growth and enhance its corporate value by contributing to society and gaining customers’ enduring trust through global operations and through products reflecting Toyota’s advanced technology that target the local demand in each market.

In order to achieve this corporate goal, Toyota strives to further enhance its technology, supply capability and marketing, supported by improvements in quality control, strengthening of cost-competitiveness and personnel development.

In particular, Toyota has been dedicated to addressing environmental issues, and as environmental awareness continues to grow in the market, Toyota strives to further improve technology, including its unique hybrid technology, in order to develop environmentally-friendly products.

Toyota current positioning strategy:

Toyota does business in more than 170 countries globally; that’s more countries than McDonald’s with restaurants in over 100 countries. (2009) (Toyota facts)

Toyota ranked 3rd on the “World’s Most Admired” list, behind only Apple and Berkshire Hathaway. (Feb. 27, 2009)

Toyota Motor Sales became the best-selling retail automaker in the U.S. (2009) (Toyota facts)

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Toyota has more hybrids on the road than all other automakers. (TMS news release on New Product Leadership, Sept. 21, 2009. Based on R.L. Polk & Co. U.S. Vehicles in Operation as of Jan. 1, 2009.) (Toyota facts)

Toyota was first in five of the 10 vehicle categories in Consumer Reports’ annual rankings, the most of any automaker: Toyota Highlander, Prius, RAV4 and Sienna, and Lexus LS 460. (April 2009) (Toyota facts)

Toyota has the highest owner loyalty of any automaker. Toyota ranked #1 by having the greatest percentage of households return to purchase or lease another Toyota vehicle. (R.L. Polk & Co., Jan. 13, 2010)

1.6 Toyota SWOT Analysis

  Strengths:

Strong Financial. The automotive operations segment is Toyota’s largest operating segment by net revenues. Net revenue for the automotive segment in 2009 is ¥5,612.6 billion.

Having high commitment and truly believe in their company. Toyota is known to be one of many companies that are committed to building a strong relationship with its employees. Everything is based on trust and commitment. The company believes that it grows as the employees grow. One way to make this happen is by giving education as a motivation to its employees.

Toyota is also known for its TPS (Toyota Production System) program. This program keeps the company to stand strong when it comes to efficiency compare to its competitors. After all these years, Toyota has done a really good job in eliminating waste and time in making its products.

The company has been doing well when it comes to building strong relationships with its customers. The company is known to satisfy its customers. Knowing the kind of demand that comes from the customers is another strength, which the company holds. By having

Weaknesses:

Toyota is a wholly owned overseas firm. Its CEO lives in Japan, who’s not yet completely knowledgeable about global business. He might be great when it comes to doing business in his own country, but he’s not as handy when it comes to ethics, marketing, management, etc abroad.

Loss control quality of product. It leads to the large numbers of recall vehicles.

The large numbers of product are made in Japan which place has high cost.

It is not successful in the European market. It can’t seem to provide what’s demanded by the European market which seeks smaller cars and high performance vehicles. Neither of which are Toyota’s forte.

Greatly affected by economic and political conditions of markets in the US and in Japan. Toyota markets most of its products in those markets. Perhaps that is why the company is beginning to shift its attentions to the emerging Chinese market.

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this information, the company is then able to create cars that can satisfy its customers.

The company holds three brands of cars, all manufactures by Toyota. These are Toyota itself, Scion and Lexus. All these brands are targeted for different social classes, which makes it possible for the company to offer great vehicles for all people.

The company holds environment friendly products: Hybrid, electric vehicles.

Exchange rates. Movements in exchange rates could see the already narrow margins in the car market being reduced.

Opportunities :

Lexus and Toyota now have a reputation for manufacturing environmentally friendly vehicles. Lexus has RX 400h hybrid, and Toyota has it Prius. Both are based upon advance technologies developed by the organization. Rocketing oil prices have seen sales of the new hybrid vehicles increase. Toyota has also sold on its technology to other motor manufacturers, for example Ford has bought into the technology for its new Explorer SUV Hybrid. Such moves can only firm up Toyota's interest and investment in hybrid R&D.

The development of new innovative products as well as increasing technologies which can be used to create different models to suit the changes in consumer tastes.

The company seems to be doing well in adjusting and fulfilling customers demand. Doing everything to take all the opportunities to increase sales and building better relationship with the customers through its products. Toyota has been making innovative and high tech cars for so many years, being the first from its competitors to see this kind of market demand.

The development of emerging markets such as China, India, Brazil and developing countries as Indonesia, Vietnam.

Threats:

Product recalls are always a problem for vehicle manufacturers. In 2009, Toyota issued a recall affecting 3.8 million Toyota and Lexus vehicles.

The developing of competitors: Honda, Nissan, GM, Hyundai. Moreover, soon Toyota will also have to compete with China, which has announced that it will begin exporting vehicles in 2010. Surely, China is known to be able to produce cheaper products. Hence, this will come to a threat in price competition, which Toyota has to face in the near future.

Increasing raw material prices leading to decrease profit margins and create low competition.

Enhanced environmental and energy sensitivity. Changes in the laws, regulations and government policies in the markets in which Toyota operates that affect its automotive operations, particularly laws, regulations and policies relating to vehicle safety including recalls, trade, environmental protection, vehicle emissions and vehicle fuel economy, as well as changes in laws, regulations and government policies that affect Toyota’s other operations, including the outcome of current and future litigation and other legal proceedings.

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1.7 Toyota’s Activities in past year and comments from management:

“Without focusing on environmental, energy and safety measures there can be no future for motor vehicles”. This is a comment of Toyota’s President Katsuaki Watanabe.

Toyota’s automobile ownership exceeds 1 billion vehicles in 2010 and will likely reach 1.5 billion vehicles in 2020. Toyota is very much aware of the tremendous impact this will have on the environment and human safety.

For this purpose, Toyota is concentrating its efforts on improving fuel economy by making cars smaller and lighter, while enhancing power efficiency. Toyota announced a business partnership with Tesla Motors for developing electric vehicle.

Chief Executive Officer Akio Toyoda said Toyota would try to be the world leader in building environmentally conscious vehicles and touted the company's cooperation with Tesla Motors Inc. Toyota is building a RAV4 electric car using Tesla battery technology. (Mike Ramsey, 2010)

Toyota has been developing too many safety systems such as: ABS (anti-lock brake system) VSC (Vehicle Stability Control) and VDIM (Vehicle Dynamics Integrated Management) systems Toyota’s Pre-crash Safety System. Toyota also offers a training program throughout the year at the TOYOTA Safety Education Center “mobilitas” completed in 2005 inside Fuji Speedway in Shizuoka Prefecture.

Toyota is expanding its sustainable plant activities worldwide, beginning with manufacturing facilities in the United States, the United Kingdom, France and Thailand. In August 2008, The Ban Pho Plant of Toyota Motor Thailand Co., Ltd. conducted one of the largest-ever tree-planting events in Thailand with about 14,000 people planting 100,000 trees.

2 Toyota’s New Objectives Improvement:

With fuel price increasing, people are not buying large cars in the numbers they used to. Small cars consume much less fuel, and are better for the environment. For this reason, Toyota should develop new objectives for assisting to continue to do business in this ‘new environment”. The new objectives can be:

Long term objectives:

1) Sale Hybrid cars at all countries which Toyota doing business in 2020.

2) Promote the development of Toyota’s eco-cars with fuel effective and safety.

Short term objectives:

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1) Increase Hybrid cars sales 100% in 2011 by 2010.

2) Increase 2 Hybrid production factories and 2 R&D centers in oversea.

The new objectives are consistent with the forecasted needs of the business by its competitive advantage and positioning.

2.1 Competitive advantage:

TMC has been successful in launching and supplying the Hybrid car market. In December 1997, TMC launched the Toyota "Prius"—the world's first mass-produced hybrid vehicle.  The use of the Toyota hybrid system was subsequently expanded to such vehicles as minivans, SUVs and rear-wheel-drive sedans.  In 2009, TMC broadened its range of hybrid vehicles further with the launch of the third-generation Prius, as well as two other dedicated hybrid vehicles, the Lexus "HS250h" and the Toyota "Sai".  Currently, nine TMC-produced hybrid passenger vehicle models and three hybrid commercial vehicle models are sold in Japan. (Toyota, 2010)

Outside Japan, TMC has eight hybrid passenger vehicle models are sold in approximately 80 countries and regions, with cumulative overseas sales having topped 1.68 million units.  TMC is committed to augmenting this lineup even further and increasing the number of countries and regions in which it sells hybrid vehicles. (Toyota, 2010)

With new type of Hybrid vehicles, TMC has survey with 267 new Prius owners. Its result is:

Completely satisfied buyers on exterior styling: 52%.

Completely satisfied buyers on interior styling: 62%, roominess 73%.

Satisfaction is very high on environmental friendliness with 91% of buyers completely satisfied.

Completely satisfied buyers on fuel economy with 64%, quietness when driving with 67%, body workmanship & finish with 71%, no squeaks and rattles with 67%. (Toyota-euro)

2.2 Product Positioning:

Hybrid cars are the future of the auto industry globally, and the TMC has achieved the 1 million car milestone of hybrid vehicles in Japan in 2010, which makes up a large proportion of the global figure of 2.88 million.

Toyota Motor Corp. is No. 1 among automakers for patent applications and awards in alternative power technology. Toyota now holds 16% of all patents and applications in the field globally. (Automotive News, Nov. 2, 2009)

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TMC, the industry leader in hybrid vehicles with 13 years on the road, keeps a sharp focus on conventional engine for obvious reasons: the more efficient the gasoline-powered component of the hybrid, the more efficient the hybrid. (COLLEEN BARRY and GREG KELLER (AP) – Oct 1, 2010)

With the new technology of air flow for better efficiency, Toyota Prius just spends 89 g/km compare with Fiat’ 92 grams of carbon emissions per kilometer and the Fiesta with Ford's Econetic technology produces 98 g/km. (COLLEEN BARRY and GREG KELLER (AP) – Oct 1, 2010)

These objectives also are ethical and legal by reasons:

Increasing environment friendly product;

Reducing CO2 emissions;

Increase the local factories leading to reducing the traffic, emission caused by transportation and logistics.

Increasing of jobs for local employees.

TMC has enough financial to implement above subject. Toyota annually spends nearly $9 billion

(more than $1 million an hour), on research and development to develop the cars and technologies of the future. Toyota spends more on R&D than any company in the world. (Toyota facts_3)

3 Toyota Auris Hybrid new campaign:

In 2010 TMC has introduced Toyota Auris Hybrid vehicle for sale outside Japan. The advantages and the ‘character’ of the product are represented of four elements: product, price, place, promotion.

3.1 Product:

Toyota Auris Hybrid available in two grades – T4and T Spirit with strengths of product are:

First full hybrid model in the European C-segment

Toyota Auris Hybrid: fuel economy starting from 3.8l/100 km

The Toyota Auris Hybrid emits at least 89g CO2/km

Zero-rated for UK road tax (Vehicle Excise Duty) (carsession,2010)

Toyota Auris Hybrid has been designed specifically for the European market. With using in the new model go beyond exceptional fuel economy and low CO2 emissions. Therefore, it is user-friendly and delivers a quiet, comfortable and stress-free drive unlike anything else in the segment.

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3.2 Place:

Styled in Europe, the Auris is a completely new model that replaces the long-running Corolla and is built in the UK. European buyers like bold design, and aside from a chunkier, Yaris-style nose, the proportions and profile are barely changed from the Corolla's.

With the stringent of environment protection regulations in European, Auris Hybrid is really to create as the leader of friendly product. TMC hope that Auris Hybrid will meet demand of customers in this market who want to care their living environment more and more by using the green products.

Auris Hybrid not only provides a service that will help reduce the city’s carbon emissions, it also helps the owner reduce their running cost by providing a fuel-efficient transportation with 3.8l/100km.

With the ‘pull strategy’, TMC get the product to customers; give them the perfect choose in the economic downtown period in European.

3.3 Price:

TMC has clear understanding of the situation of Euro economic climate and it key target market (young people and other environment, economic effective and high technology caring buyers), and has decided pricing strategy and advertising campaign to push the customer buy this product with best address their needs and the positioning of Toyota Auris Hybrid

The vehicle has a starting price of EUR 22,150 (UK) and its running cost is low.

3.4 Promotion:

Website and showroom are two good address which proving full information such as product feature, benefit, safety feature and getting customer’s orders or feedbacks. Website is the cheapest tool and working 24 hours in 7 days per week.

As the pull strategy, the interest in and demand for product even before it reaches the stores are made possible because social medial. Using a one-page of spots magazine ad and 30-second television ad to provides much importance information at 6 months before sales.

Using the sales personnel and test-drive as effective tools to persuade the customers and provide more information such as service after sales, sales assistance and to encourage orders.

As the push strategy, TMC spent 5% amount of its marketing resource on maintaining relationship with its distributors and provide the action plans to distributors such as discount 20% service fees, expand warranty time more 6 months and reward the excellent distributor of the year.

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The KPI of promotion is proving a new eco-product to Euro market, increasing sales to 400,000 units in next year to assist the TMC achieves the sales objective.

As the ethical and legal promotion, this campaign assists the number of green product users will increase, the reaffirming people’s acceptance of hybrid technology worldwide

3.5 Weaknesses of product:

High price.

New product so difficult to change customer’s behavior.

TMC should promote advertising campaign to show the benefits of product and increase the customer’s awareness about eco-Toyota Auris Hybrid.

3.6 Threats of product:

High competitive. (Nissan, Audi, Honda, Ford)

Economic downtown.

TMC should put in its best efforts to manufacture quality cars designed for its customers.

Conclusion

TMC has created a new dimension in the field of automobile business that Toyota so cares about their customer and quality, that's why Toyota is very famous, and made its brand name. Toyota always research and develop to improve quality, enhance efficiency, minimize cost and increase productivity.

With new objectives and activities plan above, TMC believe that they really to meet the market demand by supplying the new type of eco-product at the moment and improvement to expand number of green cars will be available in the years ahead.

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References

Toyota, 2010. Annual report 2010. Available from: http://www.toyota.co.jp/en/ir/library/sec/image/20-F_201003_final.pdf. [Accessed: October 6, 2010]

Toyota, 2010. Financial highlights, [Online]. Availible from: http://www.toyota.co.jp/en/ir/financial/high-light.html. [Accessed: October 6, 2010]

Toyota-euro.2110. Sales & Marketing /After Sales, [Online]. Availible from: www. toyota - europe.com/images/Chapter_6.pdf. [Accessed: October 6, 2010]

Toyota, August 25, 2010. Sales in Japan of TMC Hybrids Top 1 Million Units, [Online]. Availible from: http://www2.toyota.co.jp/en/news/10/08/0805.html. [Accessed: October 6, 2010]

Toyota, 2010. Toyota facts _3, [Online]. Availible from: http://assets.clickmotive.com/Networks/G/GSTWebsites/Content/Newsroom/pdf/Toyota%20Facts.pdf. [Accessed: October 1, 2010]

COLLEEN BARRY and GREG KELLER (AP) – Oct 1, 2010. At Paris, conventional engines still going strong. [Online]. Availible from: http://www.google.com/hostednews/ap/article/ALeqM5i7Staie8CTYR6nHcdZCUrqnADWHwD9IIUU980?docId=D9IIUU980. [Accessed: October 8, 2010]

Autoexpress, 2010. Toyota auris. [Online]. Availible from: http://www.autoexpress.co.uk/carreviews/newreviews/207275/toyota_auris.html#ixzz11ywijj4p. [Accessed: October 8, 2010].

Marketingteacher, 2010. Toyota swot analysis. [Online]. Availible from: http://www.marketingteacher.com/swot/toyota-swot.html. [Accessed: October 1, 2010].

Toyota, 2010. Sustainability report 2010. [Online]. Availible from: http://www.toyota.co.jp/en/csr/report/10/index.html. [Accessed: October 1, 2010].

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