Toyota Brand Management - Essay Example

? Brand Management Toyota is currently among the top global brands. In my view, the best approach Toyota can apply in branding a newcommodity is through integrated branding. Integrated branding involves setting up a brand team, conducting a brand environmental audit, developing brand environmental tools and finally applying the tools. Market analyst’s claim that if a company has a strong brands it has low employee turnover and a lower likelihood of losing its customers. The greatest strength of integrated branding is aligning the actions of the company with its strengths. This implies that the brand should reflect the company’s capabilities (Roll 2006, p.56). A second aspect of integrated branding that is beneficial to Toyota is customer preference. A brand driven company has the mechanisms to acquire knowledge about the customers needs. This information enables to produce in regards to the needs of the customer thus making them satisfied. Satisfied customers are loyal to a company, and this leads to significant sales. Brand environmental audit is essential in the branding process is various ways. The company intending to market a product will know the strengths and weaknesses of the target market. The company is also in a position to know the preferences of a market. With this knowledge, the branding manager strategizes on the branding process (Aggarwal 2008, p.129). The following is an analysis of the Asian Markets. The strength and the weakness of the Yen can produce strong implications on Toyota’s abilities to make sales. If the yen is strong, it gives citizens purchasing power in foreign commodities. This aspect is crippling to Toyota’s branding strategies as they experience reduced local demand. This is to show that the economic status of the region plays a critical role in determining market specificity. The brand a company intends to market, therefore, must pay attention to the economic situation. In this regard, a marketing manager will be careful not to launch an “expensive” product during an economic recession. The Economic situation in Asia is as a result of the political instabilities in the region. However, in recent times, the region has stabilized and there is a marked improvement in the economic sector (Bradley 2005, 71). Another implication on the Asian markets is the media. The positive or negative light shed by the media can make or build a brand. The Media has immense influence because most youth depend on the media for access to information. Globalization of the Media has wide spread roots in the Asian region. Chinese television programmes are a favourite in the region with more and more Asian countries paying attention to Cantonese pop music. There is also the internet whose advancement in the Asian region is rapid. People share information in chat rooms and social networking. The fun Vii is targets the youth, and Toyota has to ensure that the media gives positive criticism to this regard (Aaker 2011, p.33). The other aspect of the asian markets to consider is regionality. This can work for or against toyota in the sense that people can either prefer local brands or foreign brands. However, in the case of asia, locals, especially men prefer local brands to foreign brands. In comparison to U.S brands, Asia brands indicate the mother company of a product and the place of the assembly to his effect. Regionality may indicate the popularity of a product peoples acceptance of the product and the priority they give it. Toyota has already established itself in the region, so this is not a likely huddle for them to jump over (Cayla & Eckhardt 2007, p.217). Consumer attitudes are extremely influential in determining trends in the Asian markets. The asian markets are particularly keen on technological advancements. The deep rooted culture of innovation plays a prominent role in the branding techniques and the design of the product. The Asian markets, in view of embracing globalisation, focus on the future prospects and not on the current events. Asian innovations in this case reflect what the market wants to gain in five to ten years. The future of the markets is dependent on the youth despite the fact that most financial giants in the Asian markets are older persons. Secondly globalisation is about development in Asia’s own sense and not through adopting western products (Cayla & Eckhardt 2007, p.218 / 220). The asian culture is a “colourful” culture where they attribute beauty to colour, radiance, excellence in technology. In this regard, a “colourful” brand is likely to attract the asian population more than a reserved brand (Kurtz 2008, p.62). Brands tend to have symbolic attachment to them in the Asian markets (Cayla & Eckhardt 2007, p.225). In this case, the brand is responsible for collective social identity. Collective social identity is the way a group of individuals views themselves. In a scenario where a brand does not reflect this social identity, there is a possibility the market will not be receptive. However, there is another side to the social identity symbolism. Asian countries are striving to embrace modernity. A brand manager can use this concept of modernity to brand a product. For instance, this is how first food restaurants market their cuisine, serving up oriental dishes with a touch of modernness. It is crucial to not that this symbolism is subject to a brand promoters wishes. This is a strategy by marketing manager to influence a brands social identity thus making sales. Symbolism is, therefore, dependent on the media for its success (Kurtz 2008, p.63). The Asian markets in embracing modernity derive influence from western cultures. Though rigid, the Asian systems are turning to western marketing provisions to either improve their current shortcomings or as a way of spicing up the marketing arena. Despite the fact that most Asians prefer local brands to foreign ones, they appreciate foreign ones. Applying a western concept on a brand made in Asia can, therefore, improve the brands market reception. This is particularly true where the target market comprises of young individuals (Berry 2009, p.140). Brand Management in Hong Kong and Tokyo. The name of a brand is decidedly crucial to the customers. This is because the brand name alone is an implication of what to expect from the product. In my opinion, Toyota has already picked a name compatible with their intended purpose for the product, fun. The name also suggests that Toyota is targeting a certain market. Studies show that the youth are more interested in smart phone technology than they are in cars. Making a smart phone car is a convenient way to make them interested in both smart phones and cars. The Fun Vii is inclusive of interactive internet, virtual co-driver, gaming capabilities, touch screen doors, ability to change colour depending on mood and a slick exterior design. Since Toyota is the only company currently with this idea, the young people will, therefore, be interested in Toyota cars (Gesteland 2003, p.41). China (Hong Kong) is a particularly crucial market for the Toyota Company. There have been recent crisis in regard to the strength of Toyota’s hold on this market. This is due to the recent crisis in relation to production that caused a global recall of some of Toyota’s brands. Toyoda, the CEO of Toyota attributed these errors to rapid company expansion. This did not seat well with the Chinese. Again the influence of the media in this issue is immensely strong. The attention the media gave this issue caused national uproar in china. However, Toyota can redeem itself. There are still some strategies to apply in order to reclaim its position in the Chinese market. The first step is using its regional power to influence market receptivity. In the studies conducted show that regional positioning is crucial in the Asian market. More Asian nationals have started viewing products as coming from Asia, conveniently ignoring the country of origin. Toyota enjoys popularity in a big percentage of Asian markets with most locals preferring to purchase brands that are closer home (Berry 2009, p.146). Toyota can also apply the transnational branding strategy. This requires creation of a brand that surpasses national boundaries. Transnational branding involves providing for the needs of customers across a wide range of nations. To achieve this, branding managers, need to synchronize all cultures in the region. Their brands have a little of each of the Asian cultures to achieve synchrony. Alternatively, they can use the similar aspect of the different cultures in the region to promote a brand. The idea is to use transnational branding to create proximity within the between the Asian nationals. With time, cultures will embrace their differences with the view that they have more in common. At this point, the issue of brands as symbols takes effect. The brand manager ensures that the brand is a symbol of the region rather than of a country. People in the Asian region like in the rest of the world appreciate brands that do not limit them to a period or a cultural theme (Chan 2000, p.2) Chinese nationals are hostile towards Japan and its products. This hostility is derives from the fact that Japan colonised china at some point in history (Cayla & Eckhardt 2007, p.218). The colonisation period is a painful memory because of Japanese brutality. Marketing Japanese products to this generation can prove to be treacherous for marketing manager. This animosity led to minimal cultural integration in Asia as compared to America and Europe. The new generation, however, is more receptive due to the existence of regional dynamics. Regional dynamics is the regrouping of the Asian nations to act as an entity besides their differences. This is a positive aspect of the Asian market for Toyota considering the New Asia brand they are marketing targets the younger generation (Yip 2000, p.3). In recent times, Hong Kong has been a buzz with luxury items. Most Hong Kong shoppers prefer to delve in luxurious items mostly exotic and expensive. This is a loophole Toyota can use to brand the fun vii. Marketing in Hong Kong should, therefore, focus on the fun side of the car rather than the technical aspects. If Toyota produces the car in the year “20xx” the unforeseen future, it is will be appealing to the Hong Kong market. There is also the aspect of most customers favouring small, economic, fuel efficient cars. This model meets these specifications apart from the economic aspect. Analysts are not sure the car will be a cheap one because of the advanced technology it will require (Chadha & Husband 2006, p.8). The other approach Toyota can apply is the scientific models of branding and marketing. This method is applicable to both Tokyo and Hong Kong markets. The Tokyo motor show has proven that Toyota is capable of doing this exceedingly well. Brand positioning theory has proved lucrative in the modern markets. This theory gives guidelines on approaches used to cut out a spot for a product in the market. The aim is to put the brand in the spotlight for potential customers, competitors and even critics. However, there are guidelines that come with following this approach. The first guideline is the theory of strategic balance. In strategic balancing, the company focuses on prototype approach. In this case, the car Toyota is pioneering is the ultimate example and, therefore, consumer option in that category. This approach ensures that there is no competition against that brand. Toyota has done well in this sector. For instance, Toyota can produce sports cars that are relatively cheap fuel-efficient, and reliable in comparison to other companies such as Subaru and Mitsubishi (Glynn 2009, p.323) For the above to be possible, Toyota needs to employ authenticity. The car in regard to technological leadership should be unmatched and specialist authenticated. Toyota can also apply the differentiation approach to achieve this; differentiation involves the company having a brand that stands out despite the similarities in the market. The idea is to use the customer’s psychology to achieve this. When most people go shopping they have only two to three brands of cars in their mind. In view of this Toyota can ensure that it has pervasive presence in the market through advertising, differentiation and technological leadership. This strategy will ensure that out of the three options the customer is out to explore, Toyota is at the top of the list (Franzen & Moriarty 2008 p.170). Implications of the New Asia Brand. In the year 2001, Toyota adopted two principles to act as guidelines for its employees. These principles together form the ‘Toyota way’. The 1st principle is that of treating people with respect. The company has since set out to treat people with respect by meeting their demands. The Fun Vii is a superb example of Toyota’s commitment to this principle and how far Toyoda and Toyota are willing to go to fulfil it. In the recent past, Toyota has produced reserved models of cars. This is an indication that Toyota does not meet the needs of a section of the market. Perhaps following up the Fun Vii idea will make another section of the Toyota customers satisfied. This market includes outgoing, fun loving people. The second principle is continuous improvement in regard to technological advancement and customer care. The Fun Vii has met this recommendation. Toyota already has manufactured electric cars, adding smart phone features is a marked improvement to the previous designs (Foundation 2001 p.50). Another reason why the New Asia Brand will sit well with the company’s Global activities is because of Toyota’s managerial strategies. This new brand is a future prospect in the sense that Toyota has not set a production timeline. Future prospecting is a guideline to the company’s strategy of long term thinking. It is this strategy that has kept Toyota ahead of most car manufacturing companies. The second approach is to admit to errors and continuously engaging in problem solving so as to beat the shortcomings caused by these errors. Toyoda in his apology to the China Republic for call back of Toyota brands due to their safety problems clearly emphasised their commitment to problem solving. How does this principle reflect on the Fun Vii? For starters, the Fun Vii requires large amounts of power to run its many processes. Though a challenge, this will be an excellent way for the company to prove its competencies in problem solving skills. Setting up control parameters is essential for the branding thus acceptance of the New Asian brand into the market (Wimmer 2011, 13). The other possible implication of producing the New Asian brand is international acclamation and financial gain. Toyota is keen on its position in the world market in relation to opinion and financial status. In the event that the production of this model is a success, Toyota will elevate the bar of car production. Competing companies have a challenge to beat Toyota at their own game. As mentioned earlier, the manufacture of this car is likely to cost a lot of money; therefore, selling it will also require that it is expensive. The profits Toyota will make form this project are unimaginable, but this is all dependent on whether Toyota will carry it out to completion (Kapferer 2005, p.23). However, Toyota is currently under pressure from international stakeholders and customers. This is due to their current manufacture of brands that do not the safety standards leading to accidents and even deaths in other parts such as in America. In the event, that Toyota does decide to build the New Asia Brand, meeting the safety recommendations will be a challenge owing to the technological complications associated to the model. The other aspect that may proof to be a challenge will be the financial implications related to the manufacture of this model. To highlight these financial implications, the New Asian model is highly market specific. If the new model falls short of the expectations of that market, then there will be a tremendous loss in terms of sales and profit (Holt 2011, p.32). The following are SMART Recommendations for the New Asian Brand. It seems Toyota is keen on living up to its culture of outdoing others. In regards to the Fun Vii brand, one can see that they have taken car manufacturing to the other level. Though they have borrowed most of their concepts from the smart phone, I believe Toyota can do even more. The first recommendation is setting up anti-theft technologies. These technologies already exist so all Toyota has to do is integrate them into the new model. I suggest voice recognition such that only the owner of the car can activate smart phone function. Seeing as the car already has a GPRS tracking device, I recommend that the voice recognition further recognize distress or emotion and send signals to relevant persons such as the police or doctors in cases where there is an emergency. Another possible SMART strategy Toyota can apply in regard to theft mitigation is retina scan and finger print reading technology (Cronin 2010, p.27). Clearly Toyota is targeting young people with this new make. There are speculations that this car will bring more harm than benefits in regards to causing accidents. Since the car is automatic, the company can take the automation a step further. I recommend that the voice distress sensor mentioned above is includes a programme to switch the car into automatic mode. Also, there should be an alcohol breath sensor that will turn the car into automatic mode in case the driver is too drunk (Cronin 2010, p.28). There is a possibility that a young parent is a Fun Vii enthusiast. This means that the manufacturer adopts measures to improve the cars safety for the sake of babies and young children. I recommend automatic strap on seat belts. Sometimes, drivers forget to strap up the child while driving in which case the car will do it for them. Automated car lock when the car receives confused or haphazard instructions, which a child is likely to do. The car can also be custom made for children by installing shock proof seats for use in the event of an accident (Cronin 2010, p.29). Bibliography: Aaker, D. A., 2011, Building Strong Brands, New York: Free Press. Aggarwal, S., 2008, Brand Management: A Theoretical & Practical Approach, Mumbai: Global India Publications. Berry, C., 2009, Cultural Studies and Cultural Industries in Northeast Asia: What a Difference a Region Make, Hong Kong: Hong Kong University Press. Bradley, F., 2005, International Marketing Strategy, New Jersey : Prentice Hall. Chadha, R., Husband P., 2006, The cult of the luxury brand: inside Asia's love affair with luxury, London: Nicholas Brealey Publications. Chan, T.-S., 2000, Consumer Behavior in Asia: Issues and Marketing Practice, New York: Routledge. Cayla, J. & Eckhardt, G. 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Wimmer, E., 2011, Motoring the Future: VW and Toyota Vying for Pole Position, New York : Palgrave Macmillan. Yip, G., 2000, Asian Advantage, New York : Basic Books. Read More