The Marketing mix of Toyota analyses the 4Ps of Toyota, including the Product, Price, Place, and Promotions. The Toyota marketing mix pertains to the various marketing and business strategies adopted by the Toyota brand in the global automotive industry to understand local market conditions, identify Toyota’s target market, focus on consumer preferences, increase corporate clients, and ensure brand recall.
The Toyota marketing strategy has created a comprehensive framework for the marketing mix of Toyota that focuses on product strategy for Toyota automobiles and future vehicles, the brand’s hybrid product line, place and distribution strategy, value-based pricing strategies, not only sales volume but also the selling price of Toyota’s product mix, personal selling, direct selling, advertising strategy, and promotional mix to gain a competitive advantage in the target market. Direct selling initiatives by Toyota reflect its commitment to customer satisfaction, allowing for a more customized and direct purchase journey.
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Introduction: Toyota Motor Corporation
# Toyota Motor Corporation
- Origin Country: Japan
- Founder: Kiichiro Toyoda
- Founded: 1937
- Headquarters: Toyota City, Japan
- Employees in 2023: 372,817
- Annual Revenue in 2023: 279.278 billion USD
- Net Income in 2023: 25.366 billion USD
- Market Value in 2023: 237.73 billion USD
- Total Asset Size in 2023: 552.46 billion USD
- Market Cap in 2023: 233.30 billion USD
Toyota Motor Corporation is the largest automobile manufacturer in Japan and one of the largest in the global automotive industry, which is publicly traded in 4 stock exchanges Tokyo Stock Exchange, The New York Stock Exchange, Nagoya Stock Exchange, and the London Stock Exchange.
Toyota is a manufacturing company that produces commercial vehicles, passenger cars, and luxury vehicles. The brand offers leasing, car services, extended warranties (various mileage coverage options ranging very high), and finance insurance. It is known for its hybrid product line, especially the first car, Toyota Prius.
Toyota Company makes Toyota vehicles under the brand names Toyota, Lexus, Hino Motors, and Daihatsu. It has stakes in several technology and auto brands like Panasonic, Yamaha, Mazda, Subaru Corporation, Suzuki, etc.
Toyota Product Strategy
Toyota Motor Corporation is a market leader in sales volume, environmental technology development, and the Green Program. It was one of the first companies to develop fuel cell technology and a fuel-efficient hybrid product line.
The first hybrid car from the Toyota product mix was the Toyota Prius in 1997. Since then, the brand has sold nearly 40+ innovative hybrid car models with environmental technology globally.
The largest automobile manufacturer, Toyota, focuses on developing the hydrogen fuel-cell Toyota automobiles. The company signed a deal with the United Kingdom government to develop fuel-cell technology hydrogen-powered pick-up trucks.
By 2021, the Toyota brand was once again the most significant player in the automobile industry and announced a $70 billion investment in electric vehicles and the launch of 30 electric vehicle models by the year 2030 and set a sales target of 3.5 million electric cars in 2030.
Toyota Corolla cars have the distinction of being the all-time best-seller automobile in the world. Since 2021, the company has sold nearly 1.1 million Toyota Corolla cars globally.
The new Product Mix of Toyota in 2023 is as follows (Source).
- Passenger Cars: These include sedans, hatchbacks, and coupes. Popular models in this category include the Toyota Corolla, Camry, and the Yaris.
- SUVs and Crossovers: These vehicles are known for their versatility and include models like the RAV4, Highlander, 4Runner, and the Land Cruiser.
- Pickup Trucks: Toyota offers reliable and durable pickup trucks, most notably the Tacoma and Tundra.
- Hybrid and Electric Vehicles: Toyota is a pioneer in hybrid technology, with the Prius being one of the most recognized hybrid vehicles globally. They also have other hybrid models like the Corolla Hybrid, Camry Hybrid, RAV4 Hybrid, and are progressively entering the fully electric vehicle (EV) market.
- Luxury Vehicles: Under its luxury brand Lexus, Toyota offers a range of high-end cars and SUVs.
- Vans and Minivans: Toyota’s lineup includes practical and family-friendly minivans like the Sienna and commercial vans in some markets.
- Performance Cars: This includes sports cars like the Toyota Supra and the Toyota 86.
- Commercial Vehicles: In specific markets, Toyota also offers a range of commercial vehicles, including trucks and buses for business use.
Toyota Place Strategy
Toyota Motor Corporation is the largest company in Japan, the automobile industry with headquarters in Toyota City, and the 9th largest company globally based on revenues. The largest automobile manufacturer produces nearly 10 million Toyota vehicles annually.
Toyota is an influential brand whose manufacturing ethos, referred to as the “Toyota Production System,” and business approach are renowned worldwide. Toyota supports considerable investments in the R&D research center facilities. It has created 15 research centers spread across eight countries.
Toyota Research Center gathers data on consumer expectations. The brand has decided to invest nearly 22.2 million in the research center project by 2025.
Here’s the place strategy of Toyota.
- Global Manufacturing and Assembly Plants: Toyota has a vast network of manufacturing and assembly plants spread across various continents, including Asia, North America, Europe, and Africa. This global presence allows them to produce vehicles closer to their markets, reducing shipping costs and lead times.
- Extensive Dealership Network: Toyota boasts a widespread dealership network that facilitates sales, services, and customer support. This network plays a crucial role in maintaining Toyota’s market presence and ensuring accessibility to customers worldwide.
- Local Market Customization: Toyota adapts its vehicles to suit local market preferences and regulations. This approach includes modifying designs, features, and specifications to meet different regions’ unique demands and standards.
- Strategic Partnerships and Alliances: Toyota engages in strategic partnerships and alliances with local dealers, suppliers, and manufacturers. These collaborations help Toyota source local materials, understand regional markets better, and stay competitive.
- Investment in Emerging Markets: Toyota actively invests in emerging markets, recognizing their growth potential. They tailor their product offerings and marketing strategies to tap into the growing middle-class population in these regions, often introducing more affordable and region-specific models.
Toyota Pricing Strategy
The Toyota marketing mix ensures that the company’s pricing strategies are relevant to the products as well as the willingness of a consumer to spend the amount on a vehicle. The company considers all its costs and market conditions and then sets the selling price based on the actual supply chain costs and perceived product value.
The value-based pricing strategy used in Toyota’s marketing mix differs for its product lines. The luxury line of products is of high range, whereas the low-cost vehicles are affordable with value-based pricing to attract the common masses.
As a leading player in the global automotive industry, Toyota’s pricing strategy is a sophisticated blend of market-driven dynamics and value-based positioning. Here’s an in-depth look at how Toyota effectively sets its prices:
- Market Penetration and Competitive Pricing: Toyota employs a market penetration pricing strategy in highly competitive segments, particularly in markets with intense rivalry. This involves setting prices comparatively lower than competitors or the market average to capture a significant market share. It’s a strategic move to establish a foothold in emerging markets or in segments where they’re introducing new models.
- Value-Based Pricing: Toyota is adept at aligning the price of its vehicles with the perceived value in the eyes of the consumers. This strategy sees the pricing of cars like the Prius or Lexus line, where the advanced technology, luxury features, and brand prestige command a premium price. This approach justifies the higher price point and reinforces the brand’s value proposition.
- Cost-Plus Pricing for Innovations: Toyota often employs a cost-plus pricing strategy for its technologically advanced and innovative products, such as hybrid or electric vehicles. This ensures that the research and development costs are covered while securing a profit margin. This approach is typical in sectors where Toyota is a pioneer, allowing them to set a price standard for new technology.
- Dynamic Pricing Strategy: Toyota’s pricing is dynamic and varies with market conditions, customer demand, and competitor strategies. This flexibility ensures they remain competitive and can respond to market fluctuations, such as economic downturns or shifts in consumer preferences.
- Segmented Pricing Strategy: Recognizing the diverse needs of its global customer base, Toyota employs a segmented pricing strategy. This means they offer different model versions at different price points to cater to various market segments. For instance, the Corolla is available in multiple trims, each with its price, allowing customers to choose based on their budget and preference.
Toyota Promotion Strategy
The marketing mix of Toyota company has adopted an aggressive promotional strategy to maintain its hold in the market. The company believes in directly selling its products across most parts of the globe and has ensured that it uses all the promotional strategy tools to enhance brand recall.
The brand image of Toyota is that of a value-based pricing company that sells affordable vehicles for the masses. Toyota’s marketing mix has kept the promotional mix advertising and market-oriented pricing strategy customer-friendly, encouraging consumers to buy the products. In the luxury segment of Toyota’s marketing mix, the success of Lexus cars underlines Toyota’s versatile marketing mix, catering not only to the mass market but also to the high-end consumer segment, establishing a testament to the brand’s commitment to quality, innovation, and superior driving experience.
As part of its promotional strategies under the Toyota marketing strategy, the brand has launched a specialized marketing company with micro-influencer marketing, owned media, and social media promotions to connect and relay their messages directly to target customers.
The various promotional strategy tools adopted by the Toyota marketing mix are as follows-
Traditional Media
Toyota’s marketing mix has created an advertising strategy where its commercials are shown through traditional digital and print media channels like television, newspapers, magazines, billboards, and hoardings.
Personal Selling
Toyota’s marketing mix uses a personal selling strategy where sales personnel in the showrooms help in the direct personal selling of the products.
Sales Promotion
Toyota’s marketing strategy uses infrequent sales promotion activities like cash back and rebates that can be used during a down payment. These are part of Toyota’s marketing mix and its advertising strategy to promote the brand and its products.
Brand Ambassadors
Brand ambassadors creating brand awareness and visibility is quite common nowadays. Over the years, Toyota’s marketing mix has appointed several brand ambassadors, like Virat Kohli and Ayushmann Khurrana.
Environmental Initiatives and Green Program
Toyota’s marketing strategy and promotional mix have taken decisive steps to boost its image as an eco-conscious company. Environmental initiatives include the Toyota Environmental Challenge 2050, a sustainability program launched in 2015. The company is committed to reducing CO2 emissions in its vehicles by at least 90% and supports net-zero emissions for a positive brand image as a green company.
Philanthropy
Toyota’s marketing mix ensures that the brand actively participates in philanthropic activities like disaster relief, safety, conservation, and education. Toyota has worked with the National Center for Family Literacy and American Red Cross. The Toyota USA Foundation supports mathematics, engineering, technology, and science education.
Social Media Marketing
The Kaizen Strategy used in manufacturing and social media marketing optimization has succeeded in making small, continuous changes for steady improvement. Toyota’s marketing strategy realizes the importance of social media marketing and, hence, has incorporated several steps in its marketing mix to remain in the limelight. Toyota’s Facebook global and USA pages have 21 million and 4.3 million followers, respectively, with Toyota’s Instagram account having 4.6 million followers.
Sponsorships, Collaborations, and Celebrity Endorsements
The promotional strategy in Toyota’s marketing mix puts a lot of focus on motorsports sponsorships, collaborations, marketing communications, and celebrity advertisements. The brand is known for its annual Super Bowl Commercial that features celebrity collaborations. It sponsors motorsports contests like Toyota Gazoo Racing Europe and the FIA World Endurance Championship.
Some Recent Video ads and Print ads for Toyota are:
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Thank you very much for this information ,it was quite helpful …one day i’ll own a company with high standars as Toyota .Thank you once again .