Toyota Marketing Mix (4Ps) Strategy

Published by MBA Skool Team, Last Updated: April 19, 2020

Marketing Mix of Toyota analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the Toyota marketing strategy. There are several marketing strategies like product/service innovation, marketing investment, customer experience etc. which have helped the brand grow.

Marketing strategy helps companies achieve business goals & objectives, and marketing mix (4Ps) is the widely used framework to define the strategies. This article elaborates the product, pricing, advertising & distribution strategies used by Toyota.

Let us start the Toyota Marketing Mix & Strategy:

Toyota Product Strategy:

The product strategy and mix in Toyota marketing strategy can be explained as follows:

Toyota has a diverse set of products ranging from cars to warranties. Toyota has 43 car models which are further broken down into different categories:

• Toyota Passenger Cars : 86, Aygo, Yaris Sedan, Yaris, Vios, Avalon, Avanza, Platinum Etios, Etios Liva, Etios Cross, Aurion, Corolla Altis, Crown, ZELAS, Camry, Auris, Etios, Avensis, Lexus, iQ

• ToyotaMPVs/Vans : Vellfire, Verso, Verso –S ( Ractis), Fortuner, Alphard, Innova, Sienna, Previa, Landcruiser, Landcruiser Prado, RAV 4, Proace, Sequoia

• Toyota Commercials: Dyna 200, Dyna, Coaster, Hiace

• Toyota Hybrids: Prius +, Prius C, Camry

• Plug-in Hybrid: Prius Plug-in Hybrid

• Fuel Cell: Mirai

• Toyota Sports Coupe: GT86

• 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, 00 miles, road assistance and car services. As customers are their priority they invested 22.2 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. This covers the products in the marketing mix of Toyota.

Image: pixabay

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. 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 Place & Distribution Strategy:

Following is the distribution strategy of Toyota:

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 2300 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 in 2013 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 mix.

About Toyota:

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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