Toyota Company - Research Paper Example

Without a doubt, the Toyota Company is a leader in manufacture, assembly and distribution nationwide. Hence, a very efficient marketing and management style is needed in order for the company to thrive in a fierce competitive environment. Toyota is also a lead executioner of a practice called as “JIT system.” JIT improves organization's return on investment, quality, and efficiency as cash flow are apparent along with a strong process inventory.One cannot acknowledge the beauty of Toyota’s success without understanding its marketing model.

Therefore, the core dynamics of Toyota’s marketing which consist of its supreme quality testing, innovation, and its supreme ability to attract a solid customer base. One of the main components of Toyota’s marketing strategy is to focus on supreme quality testing. A marketing strategy consists on a well-designed plan that makes a marketing plan highly effective. Marketing strategies serve as a foundation to fill market needs.  Plans and goals are usually tested for results. Toyota’s mission statement of the company is to achieve a stable and long-term growth in the future.

One way to ensure that is to test their vehicles again and again. Hence, testing and development becomes extremely critical at this stage. Research shows that Toyota is known for its testing as it would test its cars around million times, just to ensure the reliability. Although this is costly and maybe on the key factors that lead to downfall for Toyota; Toyota cannot leave its pride in quality satisfaction. It must continue to develop cars that are fuel efficient but are tested in their labs for months before moving it to the market.

In the past, Toyota has gone out of its way to put the customer first. In the case of the Tacoma, Toyota found this issue of rusting in the truck’s frame. These were trucks that were around a decade old. Toyota said it would give the owners of these trucks a certain amount of money back — in some case $10,000 or $15,000. That was an example of how Toyota dealt with these issues where it went above and beyond what was called for. But it cared about building a relationship with the customer.

It also offered free service check for 24 hours for its customers. Overall, Toyota did an excellent job of handling crisis. Another key marketing concept of Toyota that is essential for its success in innovation: Society’s zeal to move towards a “greener earth” will no doubt play a critical role towards Toyotas’ marketing strategy. Comprehensive research indicates that much of the credit can be given the dynamic internal environment. The production team continues to enhance the quality of its vehicles by many measures.

The manufacturing department ensures that fast and quality material are being delivered. The question remains; how did Toyota troubleshoot the recent recall with its marketing strategy. The company took some key steps to ensure their brand reputation. The company has no doubt committed itself not only to produce better autos but to serve its customers with hybrid alternatives. With gas prices continuing to woe customers, hybrid models from Toyota have been a key element for its success. This can be perfectly elaborated at the fact that the company has enhances its Environmental Plan is committed to a “greener environment.

” Thus, with the introduction of Prius and other hybrid vehicles, Toyota can really attack this market segment. Prior to this recall, Toyota was super cost effective. What Toyota needs to acknowledge is the fact that it can attract all market segments. So why not introduce more hybrid vehicles that can compete with big monsters such as Ford, Chevy, and GM? American automakers continue to redefine their strategy to combat against their competitor. Well-known for attracting every market segments, Toyota should be able to attract every market segment.

Toyota continues to attract its strong customer base by various methods. One of the key things it establishes is putting money back in investing. The company has a strong foundation of knowledge in research and development. The company has a vast array of network that can enable them to penetrate the market. Research and development continues to collaborate with marketing to deliver better results. For instance, the Prius and the Echo attract the lower-income market segments, while the Camry and Corolla are designed to for middle-income segments.

Hence, Toyota focused much of the attention. After the mass recall, Toyota has gained back the trust of its customers as it has established itself with superior brand equity. However, it can drastically improve its brand by adding enhancements to their warranty. For instance, expanding the annual years and mileage in a warranty will tremendously help its cause. In addition, Toyota should provide flexibility by giving that assurance to its customers that if their vehicle is broken down, they can take it to any service centers anywhere.

The main problem for the recall can be traced to the pedal and acceleration that Toyota was slow to respond to. However, now Toyota is coming back with a bang by hiring engineers that can address this issue right away. Just recently, Toyota has announced its new long term strategy plan to the public, which will allow it to penetrate in its markets. The head executive of Toyota’s long strategy plan insists that, “The main battles will be fought in Asia, where sales are set to grow the fastest in the years ahead.

Whoever wins in China and India will become the biggest in the world.” Therefore, Toyota has focused its attention to China and India. One of the major flaws in its previous marketing strategy was to focus in Japan. Although that was beneficial for some extent, it was a long-term obstacle for a huge company to be engaged in such a shrinking market. In Europe, Toyota fails to dominate with a measly 4.8% market share when it comes to luxurious European market. Clearly, Toyota’s marketing strategy is highly vital to its success and consists of supreme quality testing, innovation for a “greener planet,” and retaining its solid customer base.

Even with the recent drawbacks, the company has managed to bounce back on its feet. Toyota’s marketing strategy will continue to evolve as the push to hybrids will be the centric point in the future. The question remains; will Toyota enable to attract its customers with the current product line of cars it possesses? Toyota must keep focus on quality and not profits if it continues to be the car of the future. Works Cited Armstrong, G., & Kotler, P. (2002). Marketing: an introduction (International edition).

New Jersey: Prentice Hall. Retrieved October 7, 2010 from http://www.pearsonhighered.com/educator/product/Marketing-An-Introduction-7E/9780131424104.page "Toyota To Emerge With Emerging Market Strategy | The Truth About Cars." New Car Reviews, Ratings & Pricing, Auto News for New Models. N.p., n.d. Web. 19 July 2011. . Where Toyota’s Marketing Went Wrong | CoolMarketingStuff." Best Marketing Books, Best Marketing Blogs | Cool Marketing Stuff. N.p., n.d. Web. 19 July 2011. .