This report will give an analysis of the marketing strategy and environmental concerns associated with Toyota’s energy saving car models in the UK market. The report will firstly consider a definition of the energy saving car before going on to consider Toyota’s current marketing strategy…
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Toyota Auris – The Auris represents the second model of energy saving vehicle to be introduced to the UK market by Toyota. Like its predecessor, the Toyota Prius the car makes use of hybrid engine technology to deliver a vehicle with low running costs and other financial benefits such as low tax duties. However, the marketing mix and target audience for the Auris model are slightly different to that of the Prius. Where the Toyota Prius clearly targeted the practical family market, the Auris is a smaller vehicle and targets the compact car market. Despite the fact that the car is a smaller offering than the Toyota Prius, the vehicle is still aimed at the premium end of the segment with models still costing in excess of ?20,000 at the entry level. Like Prius the car targets those who are either environmentally conscious or who are looking for long term low cost motoring. One of the key selling features of the model is the low fuel consumption with a reported MPG of 74.3. When both of Toyota’s offerings in the energy saving vehicle market within the UK are considered, the message may ultimately be seen as a similar one. Both cars target those who are environmentally conscious or who are looking for low cost motoring in the long term. However, high initial costs and premium based pricing strategy (Brassington and Pettitt, 2006) ensure that Toyota has maintained its reputation as a supplier of high value premium cars in the UK market. The following tools give a situation analysis with regards to the external environment which may affect the performance of Toyota’s energy saving vehicles in the UK. PESTLE Analysis Political On the whole political changes have been...
This essay stresses that despite Toyota’s premium based pricing strategy, the researcher considers that economic performance is likely to worsen in the coming years which may see a greater level of growth in the budget sector. As such, it is recommended that Toyota in the coming years adapt its pricing strategy to one based around a cost leadership model in relation to the environmentally friendly car sector. Here the company should take advantage of the falling costs of technology in its existing models to assist the development of a budget range of cars using exiting hybrid technology. This may give Toyota a significant cost based advantage in comparison to other companies who are still in the expensive R&D stage of the development of energy saving vehicles.
This paper makes a conclusion that one of the major advantages seen in the marketing of the Toyota Prius has been the high level of association between the product and role models within society such as Hollywood celebrities. However, as yet Toyota has yet to make official use of such marketing techniques. As such, one recommendation of the report is that Toyota should adapt the promotional element of the marketing mix to make use of celebrity endorsements and other associations which may help to lift sales of both existing and new models. Here the researcher recommends that such changes to the promotional element of the marketing mix should be linked to a web marketing strategy including the use of viral methods and online social networks.
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Importance of Path Dependence in Management.
Path dependence has been described in different ways by different authors and researchers in the social sciences and economics. This has given a broad application of the concept to either imply that history matters, or that predictable amplifications which happen today or occurred in the past may become disproportionate causes of circumstances yet to be encountered.
The exploration done in the case allows the reader to derive several important lessons pertaining to leadership and management, crisis management and public relations for large corporations. It is noteworthy that the crisis the company went through did not do damage which the company was not able to recover from eventually.
Despite the ever increasing competition in global automobile market, the three companies are still significant and very competitive. However, in spite of their dominance in global market, Toyota Company’s global marketing and production strategies have to a great extent posed very serious threat to the US automakers.
The author states that before performing analysis of Toyota’s business strategy, it is important to examine Toyota’s organizational culture. Toyota has a highly mechanistic organizational structure with considerably stable environment in the middle and lower management i.e. upper management is going through conflicts due to family.
In the past decade and especially in 2009-2010, the company had faced serious crisis situation with its quality problems regarding sticking gas pedal and uncontrollable acceleration that had led to human casualties and severe dent to its market reputation.
Nadler and Tushman (1980) present the concept stating that one way of viewing an organisation is to consider that organisations are made of structures and other hard elements referred to as “hard systems” (Senior and Fleming, 2006, Schein, 2004) however, Nadler and Tushman in their article present the open systems model of an organisation as one in which the emphasis is placed upon the way in which an organisation interacts with the relevant factors within the external environment, as well as considering the traditional internal interactions within an organisation.
The monolithic approach is characterized by many sub-brands all being linked to one single corporate brand. The firm has other major brands, which are principally Lexus, Prius and Scion. While these lesser brands themselves
This study delves into the application of marketing strategy in a crisis situation within a competitive environment. Focus is drawn on the plight of Toyota Motors Corporation, whose brand of automobiles and trucks has for decades been associated with quality, reliability, and cost efficiency.
Many firms enter foreign markets in order to diversify geographically, to obtain raw materials for their industries, to follow overseas customers, to bypass protectionist regulations, to protect their local market as well as to attack the competitor’s market thus forcing the competitor to utilize more resources at home.
Crisis management is the process which needs to be institutionalised by a leader. A leader’s qualities lie in foreseeing and preparing for the crisis that may occur in the near future. An effective leadership involvement and support is very essential for the crisis management method.
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