Toyota Marketing Analysis
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Trident University International
MKT 501
Module 1-5 SLP
Cumulative
Dr. D. Jaffke
Susan Geubtner
May 25, 2012
For this module it is asked that we chose a branded product to evaluate for marketing purposes. The Toyota Corolla will be the subject for this evaluation. My family and I have owned Corollas over the years and have found that all have proven to be dependable, with low maintenance and cost to drive. These are the qualities that the Toyota Company report for the Corolla.
Corporate Background
Corolla is built by the Toyota Motor Company which is a multinational corporation with headquarters in Japan. They are currently the worlds largest automaker and per Fortune Magazine rank as the Worlds fifth largest publicly traded company. Toyota was founded by Kiichiro Toyoda in 1937. The vehicles were originally sold under the name Toyoda; however this was later changed to Toyota. Risaburo Toyoda suggested the name change for two reasons. The name Toyoda means fertile rice paddies and she felt that the company should move away from the old fashioned farming industry. The second reason that she chose Toyota is because it took eight brush strokes to write in Japanese and the number eight is regarded as lucky. The company originally supplied trucks for the Japanese army during WWII and in 1947 they began producing commercial passenger cars. The “Crown” was the first car that was exported to the United States in 1957. Toyota kept with the crown name inspiration for their sedans. Corolla is Latin for “small crown of flowers”, the Camry a phonetic transcription of the Japanese word kanmuri meaning crown, and Corona also Latin for crown (Toyota Vehicle Heritage, 2012).
The Toyota mission statement is “to attract and attain customers with high valued products and services and the most satisfying ownership experience in America” (Toyota, n.d.) Per Toyoda, this mission is driven by the Toyota values and principles:
Always be faithful to your duties, thereby contributing to the company and to the overall good.
Always be studious and creative, striving to stay ahead of the times.
Always be practical and avoid frivolousness.
Always strive to build a homelike atmosphere at work that is warm and friendly.
Always have respect for spiritual matters, and remember to be grateful at all times.
As an ISO 14001 Company, they report that as an organization they promote:
* Open, honest communication
* Customer satisfaction
* Social responsiveness
* Quality in everything it does
* Respect for people and property
* Recognition and reward for effort
* Teamwork
* Fair and equal opportunities
Found in Superbrands (2012).
Toyota currently produces Passenger Cars including the Corolla, Yaris, Auris, Camry, and Prius; Multi-purpose vehicles and Sport Utility Vehicles that include Avanza, Corolla Versa, Land Cruiser, RAD 4 and pickups to include the Tacoma and Tundra.
Rueters (2012) reports that Toyota has faced many several crises over the past three years with a recall that removed 10 million cars from the road and a devastating earthquake and tsunami. At stake is the Toyota ability to manufacture three million vehicles per year in Japan which is about three times that of Nissan and Honda Motors. The VP Atsushi Niimi said that in spite of the disasters the thing that hurts most is knowing that the current losses were self inflicted. Because Toyota was focusing on adding factories to meet the booming demands they failed to achieve any innovations in production engineering. Reuters (2012) reports that Toyota has introduced a very aggressive product offensive and changes in cost structure which should push operating profits well over last year; which is projected to push them to half their profit before the economic downturn. Their current gross profit margin is 17.6% with net revenues of 18,583.6 billion yen, a decrease of 2.2% from last year. (Forbes Financials, 2012) Toyota controls 15% of the US car sales market, and around 10% of the world sales.
Product/Brand Analyzed- Identify and describe key features, sales, profit margin, market share, cost structure (primarily fixed or variable)
The Corolla is the number one best-selling car in the world, earning it the “Global Standard Vehicle of the 21st Century”. (Toyota Heritage, 2012) Corolla is sold in more than 140 markets with a total production of over 39 million vehicles to date per Toyota Heritage (2012).
The father of the Corolla was Tatsuo Hasegawa in 1966 first exported to the United States in 1968. The Corolla was designed as a family car. Hasegawa demanded that this car satisfy its customers in terms of performance, comfort, feel, and dependability. Per Toyota Heritage (2012) Hasegawa demanded that every facet of this vehicle score 80 points or higher for every part; “not even one failing score is allowed” or the hearts of the general public could not be captured. He led the motto that customers and families would “utilize the Corolla for happiness and well-being of everyone on Earth” and being the “right vehicle for the right place”.
Competitors and Comparison
Toyota Corolla was a top pick for safety by the Insurance Institute for Highway Safety. Tests conducted on the Toyota Corolla included frontal offset, side impact, roof strength and rear crash protection. According to the Insurance Institute for Highway Safety, the Toyota Corolla scored exceptionally in front, side, rollover and rear protection tests, as well as standard electronic stability control. The 2012 Toyota Corolla is the best car for you are looking for a conservative driving experience The 2012 Toyota Corolla is newly available with a navigation system and adds such new-age essentials as a USB iPod interface and Bluetooth hands-free mobile-phone