By creating more innovative car design and spending billions dollars in advertisement a year, Toyota has appeared in the eyes of many auto consumers worldwide. By producing high quality vehicles at affordable prices, Toyota has built its reputation globally.
Since it entered to American car market inToyota has developed a diverse business portfolio with its existing line of cars as well as brands such as Lexus and Scion.
It became a successful car manufacturer by having an effective marketing process that allowed it to attract customers and expand its product range to other market segments.
When Toyota and other Japanese carmakers entered the American market, they were not considered a threat to the American auto industry because it was believed their cars had no appeal to American consumers. However, in the s, due to problems such as the Oil Embargo, environmental regulations, and quality control issues with American cars Ford Pintoa good number of American car owners began searching for alternatives to their gas guzzling, poorly made American cars.
In response to these changes, Toyota and other Japanese carmakers aggressively marketed their cars to Americans as being fuel-efficient, environmentally friendly, and having better build quality than American cars. After successfully gaining a sizable market share in the US, Toyota decided to create the Lexus brand in to target the luxury-car market segment, which was dominated by Mercedes-Benz and BMW.
They decided to create a new brand because of their reputation at the time for being a company that only offered fun and fuel-efficient compact cars and because the introduction of luxury models into their existing lineup would dilute the Toyota brand.
Therefore, Toyota marketing strategy was to market Lexus as a separate company with almost no references to Toyota, a heavy emphasis towards quality customer service and it had a separate dealership network from Toyota. This marketing strategy has allowed Lexus to become one of the best selling luxury cars in the US by and it encouraged Nissan to sell luxury cars with the Infiniti brand.
Despite the successes of both Toyota and Lexus, it began to face a new problem: In response to their aging customer base, Toyota formed a study group called Project Genesis to develop a marketing campaign to attract younger buyers to Toyota.
Although Project Genesis proved to be a failure, Toyota made another attempt to capture the youth market by creating a third brand called Scion in Scion currently has three cars in its lineup: In addition, Toyota focuses mainly on the youth market by advertising through youth-oriented media Rolling Stone, MTV, late-night programmingcreating a flashy website to highlight their brand philosophy, and sponsoring live concerts.
Not only does it specifically target the young buyers, but they also simplified their sales tactics by offering no-haggle pricing, which means that Scion dealers will not be allowed to negotiate prices or pressure a potential customer into buying, and giving their customers a high degree of vehicle customization.
Because of these marketing tactics, Toyota was not only able to bring in younger customers but it also encouraged Honda and Nissan to consider introducing youth-oriented cars into their lineup. First, they achieved greater market penetration by marketing their cars as fuel-efficient, well-built alternatives to the gas-guzzling, problem-prone American cars, which eventually allowed them and other Japanese companies to take a sizable market share away from the Big Three carmakers.
Second, Toyota was also able to identify new opportunities for market development and spent time on product development to tap into these markets.
Third, in spite of their successes in capturing new markets and achieving greater market penetration, Toyota occasionally downsizes their products such as the Celica and MR2. To sum up, Toyota is a great case study on how a company should develop, identify, and evaluate market opportunities and how to develop the right products and marketing tactics to capture such markets.Vacuum Technology & Coating Weblog.
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As the smartphone industry itself reaches a plateau, it is the perfect time for Apple to bring to market a . The consideration of consumers needs by company demonstrate that Toyota’s all marketing strategies are the result of effective planning and customer needs analysis.
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By creating more innovative car design and spending billions dollars in advertisement a year, Toyota has appeared in the eyes of many auto consumers worldwide.