Published by MBA Skool Team, Last Updated: September 02, 2021
Marketing Strategy of Toyota analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Toyota marketing mix, help the brand succeed in the market.
Toyota marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Toyota Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Toyota marketing strategy can be explained as follows:
Toyota is one the world's leading automobile manufacturers in the world. Toyota has a diverse set of products ranging from cars to warranties. Toyota has more than 40 car models which are further broken down into different categories:
Prius +, Prius C, Camry & Plug-in Hybrid: Prius Plug-in Hybrid
The other products include Fuel Cells like Mirai, Toyota Sports Coupe GT86 and C-HR. Toyota also offers gears and other car parts. Besides these they provide e-Toyota, biotechnology, marine, financial services, warranties that have various mileage coverage options ranging from 36,000 to 1,00,000 miles, road assistance and car services. As customers are their priority they invested $20 million+ towards a research center that was dedicated to gather data about customer expectations from Toyota. In this way they built customer relationships and loyalty. Also, to deal with rising prices of gas Toyota came up with the Hybrid product line. The first hybrid car was the Toyota Prius Model introduced in Japan in 1997 and later worldwide. Apart from car manufacturing, the company has also invested in aero-space, robotics, higher education, boats, biotechnology etc. This covers the products in the marketing mix of Toyota.
Toyota Price/Pricing Strategy:
Below is the pricing strategy in Toyota marketing strategy:
Toyota has always maintained quality and affordable prices for their vehicles.
Their main objective is to make profit by allowing credit payments to their customers at low interest. The pricing strategy in the marketing mix of Toyota is based on competition, segment, geography and demand. Toyota cars price range starts at $20,000 and premium models can go up to $100,000. Their prices are flexible to changing market conditions and prices of competitors thus affecting their selling prices. The price range of their cars changes according to the model, add options and make. Toyota’s profits mainly increase because of the pricing and features offered with their products. They have always stood by the company’s mission of satisfying customers’ needs and wants by producing high quality automobiles at affordable prices. Such affordable prices also help the brand in their marketing.
Toyota Marketing Strategy comprises of not only its Marketing Mix, but also segmentation, targeting, positoning, competition and analysis like SWOT. Also read Toyota SWOT Analysis, STP & Competitors
Toyota Place & Distribution Strategy:
Following is the distribution strategy in the Toyota marketing mix:
Toyota makes use of a number of retailers and dealership outlets for distribution of their products so as to reach maximum customers. For distribution Toyota use showrooms, exhibition centers or even special events, which also adds to the marketing of the brand. There are a few retailers that also provide only Toyota spare parts and accessories. The company relies heavily on dealerships to sell their products to potential customers. Toyota vehicles in Japan are sold through four main channels namely Toyota for Luxury Brand of vehicles, Toyopet for medium market, Corolla for compact vehicles and Netz for targeting customers with new values in the 21st century. Toyota has around 170 distributors in all the countries and regions worldwide that they are based in. Toyota distribute Lexus brand vehicles through a network of approximately 170 sales outlets and Daihatsu through approximately 2000+ sales outlets. The sales staff at each of these outlets are highly skilled in not only sales but also product information, data collection, finance and order taking.
Owing to their quality and reliability, Toyota have maintained these networks over the years.
Toyota Promotion & Advertising Strategy:
The promotional and advertising strategy in the Toyota marketing strategy is as follows:
Toyota focuses a lot on marketing communication to increase their sales volume. Their promotional strategy in the marketing mix is to be aggressive and have a wide & comprehensive brand reach. They involve in personal selling at sales outlets where sales staff promote their products, advertising through newspapers, billboards, T.V, radio, social media (Facebook, twitter, YouTube), flyers. Promotions through public relations such as Toyota Together Green program for environmental initiatives, initiatives to reduce greenhouse gas emissions, Meal per Hour program for the sandy superstorm victims in New York thus creating a positive image for the company. Toyota use catchy slogans for the brand and endorse celebrities as brand ambassadors creating a brand recall for customers. They also have direct selling for corporate clients. Besides these they conduct a Toyota Dream Car award contest for children every year for the past 10 years, ‘Feeling the Street’ for the talented street musicians to shine on world stage, sponsor various sports, athletics and motor sports events all over the world and also conduct motor shows. This covers the entire Toyota marketing strategy & mix.
In the year 1937, Kiichiro Toyoda founded Toyota in Toyota, Aichi, Japan as a Japanese automotive firm manufacturer. Toyota Motor Corporation products include Automobiles, Luxury Vehicles, Commercial Vehicles and Engines under five brands including the Toyota Brand, Hino, Lexus, Ranz and Daihatsu. Owing to their innovative hybrid and environmental technology, they are the leaders in the automotive industry.
They are trying to develop fuel cell technology to incorporate it in their future vehicles. Toyota brand is associated with quality, durability, safety, innovation, reliability and sustainability.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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