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Repositioning Product in Europe

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Background Timeline Goal Toyota in Europe

Toyota Motor Company

established Entered into Germany, Austria, Ireland, Iceland



entered into Europe
in Scandinavian countries, Belgium, Switzerland

Mid -1970
TMC Brussels was established, then

renamed TMME
(Toyota Motor Marketing Europe)

Timeline until Millennium

entered into Canada and U.S, develop first plant in US announced New International Business Plan



Entered into Italy, Poland, Hungry

Toyota embraced Challenge 2000

Products Portfolio

Land Cruiser Hi-Ace



Comp Cars

Sports car



Toyotas 7 Guiding Principles

Honor the language and spirit of the law of every nation and undertake open and fair business activities to be a good corporate citizen of the world.

Respect the culture and customs of every nation and contribute to economic and social development through corporate activities in their respective communities.
Dedicate our business to providing clean and safe products and to enhancing the quality of life everywhere through all of our activities. Create and develop advanced technologies and provide outstanding products and services that fulfill the needs of customers worldwide. Foster a corporate culture that enhances both individual creativity and the value of teamwork, while honoring mutual trust and respect between labor and management. Pursue growth through harmony with the global community via innovative management. Work with business partners in research and manufacture to achieve stable, long-term growth and mutual benefits, while keeping ourselves open to new partnerships.

The expansion was led by a set of criteria that Toyota employees reffered to internally

market share in Western Europe (1998) only 3% its goal to raise to 5% by the year 2005 different positioning and perception as a main obstacle to growth need to reposition the brand

Competition Analysis
Fuji-Subaru 5% Isuzu Imports 0% 6% Mazda 6% Daihatsu 7%

Sales in Japan in 1998

Toyota 28%

Suzuki 9% Mitsubishi 8%

Honda 14%

Nissan 17%

Japanese car manufacturers facing new realities

Europe Market Share

3% 2% 4% 6% 12% 12% 18% Volswagen GM PSA Fiat Renault Ford

BMW 10%
11% 11% 11% Mercedes-Benz Volvo Japanese Korea

Ford & GMs market share declined VW able to increase its share

Required carmakers to be responsive to the market

Japanese Manufacturers Positioning in Europe

Lower income segments Perceived as offering value for money Lack distinctive brand images

Objective of TMME
To oversee and coordinate Toyota's sales and parts distribution as well as product planning activities Mission:
Supplying the range of vehicles, parts, accessories and services to meet the requirements of the South African and export markets that it services Ensuring that products are of outstanding quality, value for money and instill pride of ownership

Toyota will lead the way to the future of mobility, enriching lives around the world with the safest and most responsible ways of moving people

Challenge 2000
Cost of Ownership How to further reduce the cost of owning a Toyota Customer Delight How to improve customer satisfaction

Network Development
How to improve operational efficiency and profit margins of dealers Brand Management

Build Toyota into more desirable brand Developing communicating strategies for repositioning

1998, The company had topped Nissan's sales in Europe for the first time ever, but was still a weak spot only 3%, whereas had secured over 10% in other international markets (USA) the market was mature and still dominated by local players. different positioning and perception of the Toyota brand across Europe as a main obstacle to growth.

What explains Toyota s disappointing market share in Europe?

Below average sales of Toyota dealers compared with other manufacturers Lack of unique, distinct image. Lack of brand personality Lack of Production capacity in Europe Intangible brand is cold, secretive, introvert, not customer focus Domestic law for distributor Trade Restriction Lack of a strong dealership network in Europe European has strong nationalism on brand


brand management s role

PROMOTE that Toyota is a brand that symbolizes
sustainable development and brands which are infused with the latest cutting edge technology.
low emission technology with reduction in ownership costs and high residual values. brand that ensures safety and quality.

CREATE an image that it is environment friendly and the COMMUNICATE that the company packaged as a

SUCCESSFULLY communicate these qualities to

customer so it would create brand association and perspective about Toyotas performance, thus, increase sales.

Market research revealed that Europeans were not very aware of Japan and Japanese culture fall prey to "Foreign Protectionism. would not help Toyota to gain marketing advantage to build a manufacturing in Europe and investing in the European Union. this would give its competitors plentiful opportunity to stereotype Toyota brand that does not belong in Europe. Learn from FORD. Fords success can be attributed to the platform built upon domestic brand and not an American brand.

European brand
Europeans are very different from the rest of the world in regards to needs and desires as because of advance economies The biggest area of concern was Toyota's tangible brand identity low pride and weak design appeal.

Need to identify specific market segments and then be in sync with these segments.

Global or International Brand

Japanese Market Share
30.00% 25.00% 20.00% 15.00% 10.00%

Problem: Not the best strategy Every European country has its own preferences and have their own national champions Success in 1 country cant be apply in another market sophisticated and prefer automobile which can fulfilled their needs.

0.00% Germany Italy UK France Spain Switzerland Sweden Portugal Greece

Japanese Brand European Brand

International Brand

European Strategy
from Ex. 10 it can be seen that European awareness of Toyota is very low with a very low brand preference. The Europeans like their car to be strong, dynamic, friendly and basic. However, Toyota is identified as a car manufacturer that is modern and intelligent.

Brand Perception in European Market

Ford Citroen Mercedes Nissan Peugeot Toyota BMW Honda Audi

European Preferences

5% 7% 5.50% 5% 4% 3% 3% 2% 1% 9%
14% 12% 10%

European Consideration

6% 4% 4% 3% 1%

European Awareness
8% 25% 22%


50% 50%

60% 58% 55%

Market Overview Belgium (98)

Value for money 4 Ownership Appeal 3 2 1 0 Quality Technology Ford Toyota Volkswagen Style



Market Overview Germany (98)

Value for money 5 Ownership Appeal 4 3 2 1 0 Quality Technology Ford Style




Market Overview U.K (98)

Value for money 5 4 Ownership Appeal 3 2 1 0 Style Ford Toyota Volkswagen





Brand Equity
Brand Awareness
Promotion Advertising Create good image Increase distribution channel, effectiveness

Brand Loyalty
1 on 1 relationship CRM Advertising

Brand Association
Associate each country to associate with what customer want and need.

Perceived Quality
Distribution channel Eco-friendly Intelligent Safety modern

Proprietary Asset
Production line efficiency Strong domestic market

More Desirable Brand



Match the segment market Effective advertising, promotion, and public relation Fix cold, introvert, and old fashion image

Create strong attachment Centralized distribution 1-1 relationship CRM


Environment Friendly Car Hydrogen fuel, Solar efficacy, other alt. fuel Unique

Problem Solving
Should abandon its traditional segment of value seekers, move into higher income segments Should standardize its advertising approach starting with the newest model, Yaris. Should introduce new positioning

Possible Implementation
Product development & production system Adding features Repositioning prices