Market Plan for Toyota Camry - Term Paper Example

Market Plan for Toyota Especially With Its Camry Table of Contents 0. Executive Summary 3 2.0. Situation Analysis 4 2 Market Summary 4 2.2.SWOT Analysis 4 2.3. Competition 7 2.4. Product Offerings 8 2.5. Distribution 9 3.0. Marketing Strategy 9 3.1. Objectives 9 3.2. Target Markets 10 3.3. Positioning 10 3.4. Strategies 11 3.5. Marketing Mix 12 3.6. Marketing Research 13 4.0. Financials 15 5.0. Controls 16 5.1. Implementation 16 5.2. Marketing Organization 16 6.0 Conclusion 16 References 18 1.0. Executive Summary Toyota Motor Corporation includes itself as one of the leading companies in the international automobile industry. With its vision to bring continuous development in the services provided by the company, it has been able to produce few of the most fashionable motor designs over the past years. One of its designs which were freshly launched by the company was its Camry Hybrid. The model comprises of various strengths and few limitations as well. Considering the flaws and strengths along with the market opportunities and weaknesses, developing appropriate marketing strategies will be quite beneficial for the organization to plan its further progression. The strategies will be focused on the improvement of the model’s competency and increase in the sales. To be specific, the prime objective of the strategic alliance will be to distinguish Camry Hybrid from the competitors and label it as a leading automobile engineering. 2.0. Situation Analysis 2.1. Market Summary Camry has been one of the most promising hybrid cars launched by Toyota in 2006. Over the past, it has targeted the market comprising of middle income group customers who also prefer environment friendly and innovative technologies (Toyota, 2011). Over the past five years, Camry has gained significant growth in terms of sales in Japan and overseas nations. The growth earned by the brand can be recognized as a steady progress considering importance of continuous improvement in terms of external design and engineering specialties (Fletcher, 2011). 2.2. SWOT Analysis Strengths 1. The product comprises the strength of innovative and fashionable technology i.e. hybrid technology which is considered as one of the uprising technological trends of the modern era (Toyota, 2011) 2. The price range of the product starts from $19,820 which can be afforded by a large group of people inclusive in the middle income group (Toyota, 2011) 3. Provides larger space and comfortable riding experiences to the customers along with the advantage of powerful engine and fuel efficiency which is lacked by most of the hybrid technology based cars (Toyota, 2011) Weaknesses 1. In comparison to other similar version of vehicles, the model is recognized as a mid-sized sedan (Fletcher, 2011) 2. It also comprises few deficiencies in terms of comfortability, e.g. the cruise control stalk is covered behind the wheels, which makes it uncomfortable to see and drive, the interior designing is considered as old-fashioned along with automatic functioning in the manual control for above 70km/hr (Fletcher, 2011) 3. The mid-sized hybrid vehicle was last modified in the early 2010 and has not been updated in the current year which sets it back from staying aligned with the current trends (MSN Autos, 2011). Opportunities 1. A promising market for the mid-sized cars targeted towards the middle income group with lower maintenance cost (Gopal, 2006) 2. Good prospects for the eco-friendly and fuel efficient technologies such as, the hybrid technology (Gopal, 2006) 3. The developing economies which have already been explored by Toyota is forecasted to be growing with immense rapidity (Gopal, 2006) Threats 1. According to the experts, the international automobile industry is most likely to face a challenge raised due to the shortage of raw materials and other components (Gomes, 2011) 2. The threat of competition in the international platform is also forecasted to hamper the operations of global automobile companies (Booz & Co., 2011) 3. The fluctuations in the international market is expected to force the global marketers to adopt cost cutting strategies which will in turn cause various issues in the internal environment of the organizations (Booz & Co., 2011) 2.3. Competition To be mentioned, the key competitors of Toyota Camry are the Hyundai Sonata, Chevrolet Malibu, Volkswagen Jetta and Ford Fusion. Hyundai Sonata The price range of the vehicle starts from a similar scale to that of the Toyota Camry. However, the vehicle offers a more efficient technology in terms of external and interior designing and fuel efficiency (MSN Autos, 2011). Chevrolet Malibu The pricing of the vehicle is higher than the Toyota Camry which provides it a competitive advantage. However, the vehicle offers a superior fuel economy and fashionable genres which are quite competitive to affect the growth of Toyota Camry (MSN Autos, 2011). Volkswagen Jetta The vehicle offers a stylish and more comfortable driving experience to its users at a lower cost than Toyota Camry. But it apparently lacks in superior fuel efficiency (MSN Autos, 2011). Ford Fusion Ford Fusion also offers a hybrid technology with superior fuel efficiency and a stylish driving experience at a similar price range to that of Toyota Camry. Hence, it can be termed a challenging competitor of the company (MSN Autos, 2011). 2.4. Product Offerings The product offerings of Toyota Camry includes, Adjustable steering wheels with standard audio control systems Cruise control efficiency Engineered arm rests in the seat and door trim Rearview mirror with day/night settings Star ranked safety systems Sophisticated airbag systems in the front seat and others (Toyota, 2011). 2.5. Distribution Products manufactured by Toyota tend to be distributed through a common channel which comprises of showrooms, regional offices and private distributors. These distribution centers focus on the direct selling of the vehicles. The distribution channel also includes the online services which provide the potential customers with the benefit to judge the product in terms of pricing and also in terms of features and efficiency (Toyota, 2009). 3.0. Marketing Strategy 3.1. Objectives Toyota Camry first came in market in the year 2006. It provides “full hybrid” synergy drive and can run on gasoline as well as electric engine or combination of both. It generates less pollution compared to other gasoline cars. It was estimated that the sales of Toyota Camry will be 60000 in the first year. In the year 2007, Toyota Camry had made revenue of 76.6 billion USD. The sales were calculated as 17.5% more than 2006. 3.2. Target Markets The primary target market of Toyota Camry is the upper middle class people. Toyota Camry is for those customers who prefer to drive reliable car and understand new technology. The environmental friendly people also can have this car because the pollution and CO2 emission rate of Toyota Camry is less than other hybrid cars. The secondary target market of Toyota Camry is those customers who would graduate from college and prefer to buy their first car because Camry provides wide range of equipments and sporty looks. The objective of Toyota Camry is to become a leader in hybrid technology vehicle market. Toyota focuses on educating the young people to buy their first car and influence them to adopt hybrid technology (Sibbing & Et. Al., 2011). 3.3. Positioning By developing innovative product, Toyota Camry had positioned itself in hybrid vehicle market successfully. Toyota Camry possess all features that are suitable for every type of customer whether a cost sensitive or luxury. Toyota Camry focuses on design, capacity and durability for providing good customer service. 3.4. Strategies Product The Toyota Camry has standard 158 hp and 2.4 liter engine and next generation V–6 technology which makes the car quite a bigger leap in terms of power. Camry is fuel efficient car with an official range of 700 miles from 17.1 gallon fuel. It possess VSC stability control as standard equipment, seven airbags which also include ‘seat mounted side air bags’, side curtain bags and driver side knee airbag which can cause minimal damage in case of any uncertainties and reduce neck injuries. Besides it offers a 160 watt music system and eight channels of sound with input jack, Bluetooth telephony with voice dialing (Halvorson, 2006). Besides the new Camry provides TRD alloy wheel which can enhance the overall styling of vehicle by maintaining its performance and a Vehicle Intrusion Protection (VIP) which provides complete security system. The VIP system includes alarm with ‘glass breakage sensor’ as well as keyless entry system which are suitable for protection from theft (Toyota Motor Sales, 2011). Pricing Toyota strives to build vehicle to balance the interest of customers and accordingly offers many options for customers to choose from. Camry is available in many different pricing ranges according to type of customers. For example, the Toyota Camry XLE is available at USD 29470, for premium upper class customers who want luxurious cars. The Camry Hybrid is available at USD 26675 for middle class people and Camry 2.5 L4 costs USD 19820, which is suitable for those customers who had just completed their graduations (Toyota Motor Sales, 2011). Distribution Toyota uses two logistical methods for distribution of their products which are ‘regional bases’ and ‘dock – based operations’. Though Toyota is a Japanese company its bases are spread throughout world. Within the bases Toyota established multiple distribution centers to allocate their products in various regional locations. In multiple regional headquarters Toyota can pinpoint the customer needs and requirements and accordingly make product available. Toyota also uses the port facilities to obtain and supply vehicle that have been made abroad. Toyota performs inspection and quality control operations at port locations. By using port facility Toyota distribute their cars to the regional dealers (Bruner & Et. Al., n.d.). 3.5. Marketing Mix For promoting their products Toyota use many sales promotion campaigns with an aim to build and sustain good relationship with customers. Toyota provides free check up and service to customers and financial support from bank to help customers purchase car easily. Toyota targets its customer by running advertising campaign on various automotive websites. Toyota had developed java–based advertising in the ‘Annual Nationwide Clearance Event’ in the year 2002. The online advertising video had enhanced the customer experience and influenced customers to visit the local dealer of Toyota (Zedo, 2002). Recommendation to Improve Marketing Mix Strategy For improving marketing mix Toyota should always provide value to each customer which can help in maintain good quality products to meet customers need. Toyota should maintain a balance between nature and industry and simultaneously innovate and develop technology to cope up with the other competitors. Toyota should consider various ideas of their employees and try to find the best product for people throughout the world. 3.6. Marketing Research Marketing research helps Toyota to analyze the target market and the needs and requirements of customers. The results from marketing research help to achieve the company objectives and increase sales. Toyota made their car to be more fuel efficient, environmentally friendly and better quality to compete with other competitors such as American cars. By proper marketing research, Toyota developed Camry to target the younger and upper middle class customers who want innovative products. The good brand awareness helps Toyota to provide good satisfaction and capture large market share. Challenges Faced By Toyota One of the most vital challenges faced by Toyota was choices of 3PL supplier and the related transport platform. Toyota faces difficulties in gaining insight about price of 3PL provider and thus the company faces difficulties in negotiation process (Sorensen & Schittekat, 2010). Toyota faced problems related to the acceleration of the vehicle in their many models and there were also certain breaking problems in Toyota Hybrid Model. Toyota had faced certain serious challenges while implementing the JIT (Just-in-Time) which include redesigning every part of vehicle to remove unnecessary parts which are not needed in assembly line, availability of multi–skilled employees to operate multiple machines and delivery on time according to demand (Nayab, 2010). 4.0. Financials The sales revenue earned by the company in the USA, Argentina, Canada, Europe, Mexico, Venezuela, Indonesia, Pakistan and other economies have been dipping from the past few consecutive years. On the contrary, the sales figure can be observed to rise in the emerging markets, i.e. Brazil, India, China, Philippines and others (Toyota, 2011). With this concern, the company has adapted certain measures to invest in the marketing and sales strategies. For instance, better emphasis will be provided to the research & development aspects along with the development of safety and quality measures. The company is also concentrated on the instigation of more technical offices to support the product development operations (Toyota, 2010). 5.0. Controls 5.1. Implementation The implementation over the next few years include instigation of sophisticated monitoring functions in order to improve the product quality, developing comprehensive communication systems and emphasizing on 100% local procurement (Toyota, 2010). 5.2. Marketing Organization Fujio Cho is the Chairman of the Board and the ultimate decision-making power regarding any major strategies are jointly adopted by him with consultation to the Vice Chairman of the Board and the company President. There are 6 executive vice presidents, 16 senior managing directors and 2 directors in the management team of the organization who are also recognized as the members of the board (Toyota, 2010). 6.0 Conclusion Toyota Camry is one of the innovative hybrid vehicles of Toyota which brings excellent benefits to the company. Though Toyota faces many challenges in their business but they successfully tackles the challenges through good marketing research and strategy. Toyota uses all possible efforts to make Camry as well as other products to become successful in vehicle industry. It always tries to make certain creative design and use modern technology in their vehicle to influence potential customers to buy their products and make products by considering the needs and preferences of customers. References Booz & Co., (2011). 2011 Automotive Industry Perspective. End of Year Letter 2011 Automotive. Retrieved Online on April 26, 2011 from http://www.booz.com/media/uploads/End_of_Year_Letter_2011_automotive.pdf Bruner, K. & Et. Al., (No Date). Toyota Motor Corporation. Pacific Lutheran University. Retrieved Online on April 26, 2011 from http://www.plu.edu/~brunerkm/Final%20report-toyota.pdf Fletcher, G., (2011). Camry a Steady Sedan in a Changing World. Roomy Toyota Retains Its Cavernous Rear Seat. Retrieved Online on April 26, 2011 from http://www.edmontonjournal.com/cars/Camry+steady+sedan+changing+world/4673587/story.html Gomes, C., (2011). Global Auto Report. Global Economic Research. Retrieved Online on April 26, 2011 from http://www.scotiacapital.com/English/bns_econ/bns_auto.pdf Gopal, C., (2006). Global Automobile Industry: Changing with Times. KPO. Retrieved Online on April 26, 2011 from http://www.outsource2india.com/kpo/site/includes/Global_Automobile_Industry11.pdf Halvorson, B., (2006). 2007 Toyota Camry. Review. Retrieved Online on April 26, 2011 from http://www.thecarconnection.com/review/1008544_preview-2007-toyota-camry MSN Autos, (2011). 2011 Toyota Camry. Overview. Retrieved Online on April 26, 2011 from http://autos.msn.com/research/vip/overview.aspx?year=2011&make=Toyota&model=Camry&trimid=-1 MSN Autos, (2011). 2011 Hyundai Sonata. Overview. Retrieved Online on April 26, 2011 from http://autos.msn.com/research/vip/overview.aspx?year=2011&make=Hyundai&model=Sonata MSN Autos, (2011). 2011 Chevrolet Malibu. Overview. Retrieved Online on April 26, 2011 from http://autos.msn.com/research/vip/overview.aspx?year=2011&make=Chevrolet&model=Malibu MSN Autos, (2011). 2011 Volkswagen Jetta. Overview. Retrieved Online on April 26, 2011 from http://autos.msn.com/research/vip/overview.aspx?year=2011&make=Volkswagen&model=Jetta MSN Autos, (2011). 2011 Ford Fusion. Overview. Retrieved Online on April 26, 2011 from http://autos.msn.com/research/vip/overview.aspx?year=2011&make=Ford&model=Fusion Nayab, N., (2010). How Toyota Implemented Just in Time: Autonomation. Toyota and JIT Manufacturing. Retrieved Online on April 26, 2011 from http://www.brighthub.com/office/project-management/articles/72086.aspx?p=2 Sibbing, E. & Et. Al., (2011). The Age of Sage. Synchronic Communications. Retrieved Online on April 26, 2011 from http://www.slideshare.net/lollie85/toyota-camry-hybrid Sorensen, K. & Schittekat, P., (2010). Redesigning Toyotas spare Parts Supply Chain Using Tabu Search. University of Antwerp. Retrieved Online on April 26, 2011 from http://leeds-faculty.colorado.edu/glover/TS%20-%20vignettes%20-%20loc-routdecsupport%20Sorensen.pdf Toyota Motor Sales, (2011). Camry 11. Toyota Moving Forward. Retrieved Online on April 26, 2011 from http://www.toyota.com/camry/features.html?trim=2513 Toyota, (2009). Toyota Motor Sales, U.S.A., Inc. (TMS). Sales. Retrieved Online on April 26, 2011 from http://www.toyota.com/about/our_business/sales/ Toyota, (2010). Annual Report 2010. Toyota Motor Corporation. Retrieved Online on April 26, 2011 from http://www.toyota-global.com/investors/ir_library/annual/pdf/2010/pdf/ar10_e.pdf Toyota, (2011). Camry 11. Camry. Retrieved Online on April 26, 2011 from http://www.toyota.com/camry/specs.html Toyota, (2011). Market / Toyota Sales and Production. Figures. Retrieved Online on April 26, 2011 from http://www.toyota-global.com/company/profile/figures/ Toyota Motor Sales, (2011). Accessories. Camry 11. Retrieved Online on April 26, 2011 from http://www.toyota.com/camry/accessories.html Zedo, (2002). Campaigns to Watch: Toyota; Harry Potter. Internet Advertising News. Retrieved Online on April 26, 2011 from http://www.imediaconnection.com/content/842.asp Read More