Major Segmentation Variables for the Consumers Market - Assignment Example

Running head: TOYOTA COMPANY 17th June Table of Contents Introduction 3 Major segmentation variables for the consumers market 4 Geographic 4 Demographic 4 Psycho graphics 5 Behavioral 5 Advertising 5 The commercials 6 Conclusion 6 Introduction Toyota Company is a Japanese manufacturer of automotives products where it is ranked as fourteenth largest company in the world in terms of the revenue. The company has more than 333,498 employees worldwide. Toyota Company is known for the effort of producing more than 10 million vehicles per year making it possible to generate revenue and thus gaining a lot of profit due to the high sales made. In late 1950s, Toyota company created and began Toyopet Crown which was a start for a future brands that would be competitive in the market. The market target for the Toyopet Crown was the American families and it was touted as the world’s greatest automotive value. But due to be too slow and too heavy in the American’s highways, the product did not yield high profit and thus the brand had to be taken back to Japan. In my own opinion, the Japanese considered American as the market target because at that time the World War II had just ended and thus they considered that the vehicle would be used in transport and other commercial assignments. The new brand of Toyopet which the company considered to be accepted in the market was because the car could carry a few passengers and more baggage than any other brand during 1950s. The target market in terms of demographics was in consideration of the family size since the product was manufactured as small brand that would not encourage a lot of passengers. The model considered psycho-graphics, the social class and lifestyle since the model was seen as a personal social class of individuals who did not like to use it for transportation purposes. The company, after manufacturing Toyopet Crown then stated that it was the start and new models like Toyota Prius and lexus RX 450h were coming in the future. According to my research after going through the history of Toyopet and the target market, the consumers behavior changed towards the model because the product did not offer 0-to 60- mph performance as an American car and thus meaning that as the company was manufacturing the model they did not consider the environment in which it was going to operate in and thus concluded that the car was not engineered for the united states. The low income earners were the target market for the product since the product was small size automobile that was designed for low cost purchase and operations. Toyopet model resembled the British Ford Consul and Zephyr which were designed for a settled family with young family that needed their first car. Major segmentation variables for the consumers market Geographic Market target for the Toyopet Crown in terms of geographic consideration was California and West Coast though the model only managed to get 45 dealers. The model was an economic car that did not have a lot of features though it was facing a lot of competition from the British, French, and German imports. Demographic Since the product was developed as an economic car and the size again was small, the car was particular for a settled family with a small family size. The car could be used by any person of any gender since the main purpose was to have a car that meet the low income earners needs. Psycho graphics Since the product was designed to be small sized the model was used by many as a social class status for individuals, additionally the product meet the personality status since many individuals used the model as a lifestyle car and thus meeting the consumer wants. Behavioral Toyopet Crown received stiff competition in United States where it did not last longer and it was criticized until it was out of the market since they classified the car as a toy and pet and thus lend to conclusion that the car was not engineered for the United States and could not perform well in the region. Advertising During the period 1950s, Japan was stable and thus the emergence of television and other household appliances made it possible for the individual who had settled to be aware of the different products that were in the market. The use of television as a media to promote motorization made daily living enjoyable. The dream of individuals owning a car due to television advertisement of different model made it a reality. In 1950s – 1960s Japan economy was stable and thus made the Toyota Company to start promotional campaigns by opening driving schools thereby increasing the number of license holders. During this time Toyota worked hard for the mission of providing automobiles that are affordable to everyone thus making it possible for the company to be accepted in the market. During this period the use of television and promotional events that made increments of license holders made it possible for the company to believe this target market was the one to be considered when buying the product. This is because many were aware about the Toyopet and promotion given in the driving schools under Toyota Company made it possible for the company products to be publically known in the market thus targeting the low income earners and thus people with small families. I recommend Toyota Company to diversify its current marketing activities by also using billboards in the highways in Brazil during this time of 2014 FIFA World Cup. In this way, it will attract the attention of significant number of potential consumers. For a new commercial that I recommend they would be better for a new market target like the high income earners and models like artists the company, can develop the use of internet advertising where all the different brands in the market can be posted in the internet ready for the consumers to view. Additionally creativity and innovation is used in Toyota Company where different models have been manufactured and thus through the use of internet the high income earners can have a chance to get their dream car (Ferrara, 2012). For the 2014, commercials that can be used for a new target market is the use of online advertising where online business can be conducted without involving the middle men. The commercials Toyopet Crown http://www.youtube.com/watch?v=RejCmlN7l64 Toyopet corona 1500 delux ad 2 in http://www.youtube.com/watch?v=yYG2II_z4sY Conclusion Toyopet received a lot of competition in United States and other features like being too heavy and low speed in the Americans highways was an advantage to the product which resulted to elimination of the product from the market. The use of advertising tools like televisions, promotion events and the use of internet including you tube is a major key contributor of products awareness in the market that leads to high sales thus obtaining profit through out the entire period of the product in the market. References Ferrara, M. (2012). Innovation Masters History Best Examples of Business Transformation. Detroit: Cengage Learning. Read More