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Market Segmentation, Targeting and Positioning over Toyota
Course: Principles of Marketing (101) Section-2 Summer 2011
Prepared For: KASHFIA AHMED
Senior Lecturer Department of Business Administration East West University Prepared By:
Md. Touhidul Islam ID: 2010-2-13-073 Md. Mozammel Haque ID: 2011-1-10-178 Nyma Ferdous ID: 2011-1-10-398 Ayaz Yasin ID: 2011-1-10-427 Sharif Shihab Hossain ID: 2011-1-10-288
Date of Submission: 3rd August, 2011
Acknowledgement On behalf of our group we would like to show utmost gratitude and respect to hour honorable faculty. all the credit goes to our fellow group members. without whom this assignment wouldn’t have been possible to make. Department of business Administration. We would also like to thanks those who have given us valuable suggestions regarding the assignment such as our fellow class mate’s . we would have been stumbling spontaneously and for that we give our heartfelt thanking once again. . We get everything for herself. we thank them as well. Finally. She is superb at her subject matter. Madam Kashfia Ahmed.Also many thanks go to the dealers of the Toyota motors residing in Bangladesh with their support and valuable information. East-west University for her valuable advice and firm guidance through the whole assignment. Now the less the website providing profound and correct information about Toyota. From each and every single member of the group. Without her enlightenment throughout the assignment. Senior Lecturer. we thank every individual for their hard work and utmost support.
Table of Content .
Executive Summary Of ‘TOYOTA’ .
 In addition to manufacturing automobiles.Introduction of TOYOTA Toyota started in 1933 as a division of Toyoda Automatic Loom Works devoted to the production of automobiles under the direction of the founder's son. In 2008. Lexus. while still a department of Toyota Industries. it created its first product. Kiichiro Toyoda. along with several "non-automotive" companies. Daihatsu and Hino Motors. its first passenger car. The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles. the Toyota AA. Toyota provides financial services through its Toyota Financial Services division and also builds robots. one of the largest conglomerates in the world. making Toyota number one in the world. the Type A engine. in 1934. Three years earlier. Toyota Motor Co. TMC is part of the Toyota Group. was established as an independent company in 1937. . Aichi and in Tokyo. Toyota Motor Corporation is headquartered in Toyota City. in 1936. Its first vehicles were the A1 passenger car and the G1 in 1935. Toyota's sales surpassed General Motors. and. Toyota Motor Corporation group companies are Toyota (including the Scion brand).
Japan Phone: (0565) 28-2121 1-4-18 Koraku.997. Nakamura-ku.492 shares 397. Japan Phone: (052) 552-2111 August 28.447. Aichi Prefecture 4718571. Tokyo 112-8701. Nagoya City. Japan Phone: (03) 3817-7111 4-7-1 Meieki. Aichi Prefecture 450-8711.05 billion yen (as of March 31. 1937/Number of shares issued 3. Toyota City. Bunkyo-ku.Toyota company profile Company Name President and Representative Director Toyota Motor Corporation Akio Toyoda Head Office 1 Toyota-Cho.922 shareholders From April 1 to March 31 of the following year Motor Vehicle Production and Sales Tokyo Head Office Nagoya Office Date founded Capital Shareholders Fiscal Year Main Business Activities . 2010) 660.
590 Market Offering .Business Sites http://www.toyota-global.com Number of employees (Total in affiliated companies) 320.
35000$+ Occupation Generation Businessman. . Cold Demographic Age Family Size 18-50+ Single. Middle. Suburban Dry & Hot. others. Employer. 2members. transporter Third generation. Formal. Next Generation Psychographic Social Class Lifestyle Higher. Asia. Adventurers. 25000-35000$. Luxurious. Europe. farmers. Countries Density Climate Urban. North America.Market Segmentation for Toyota Geographic Segmentation World Region or Japan. Official. 4+ members Income(per year) Under 25000$. 2-4 members. Upper Middle.
. Europe. In 2002. Toyota initiated the "Innovative International Multi-purpose vehicle" project (IMV) to optimize global manufacturing and supply systems for pickup trucks and multipurpose vehicles. Fuel efficiency None. IMV called for diesel engines to be made in Thailand. others. Asia. Oceania. the Fortuner. Africa. Indonesia. and the Toyota Innova. Medium. SUV cars are specially customized for running on snow covered area or on a desert. Europe. Also the dry & hot. North America. and to satisfy market demand in more than 140 countries worldwide.Behavioral Benefits Loyalty Status Durability. gasoline engines in Indonesia and manual transmissions in India and the Philippines. Argentina and South Africa. Absolute Geographic Segmentation Toyota operates many geographical areas. Power. for supply to the countries charged with vehicle production. Latin America and the Middle East with three IMV vehicles: The Toyota Hilux (Vigo). They segment their market on the basis of world region. cold climate has effects on their production. For vehicle assembly. Strong. So they segments their cars for cold & snow covered area & also for dry & hot area as well. These four main IMV production and export bases supply Asia. Toyota would use plants in Thailand. but pay attention to geographical needs & wants. They produce their cars on the basis of urban & suburban density of these region & countries. For example. density of population & Climate. On the world region they segments their market for Japan.
For the people who has the income under 25000$ per year.Demographic Segmentation Demographic factors are the most popular basis of the segmentation for the Toyota. For example Noah & Voxy for 6+ members. Yaris for 3+ members. corolla for employers. Corolla. For example people of age 18-30 purchase Toyota Supra.Toyota is basically producing their cars for the third generation. Toyota offers D class cars like Allion.Avalon. Normal Sedan cars like Yaris. For 25000-35000$ per year. Camry hybrid.Toyota has some business class cars like MarkII & Crown for businessmen. They also producing some Hybrid cars for the next generations like. Income.Prius. Some pickup trucks like Tacoma & Thundra for farmers & working class people. Premio etc. People among these ages have different choices over the models of Toyota. occupation and generations. Celica and aging above purchase four door Sedans like. • • • • • Age: Toyota produce their car from the age range 18-50+. For single & a family with 2 person they produce Supra. Venza. Generation. celica etc.Alion. income. they offer some exotic cars like Lexus series. Matrix. Toyota segments their products on the basis of age. . Family Size: Toyota also produces cars on the basis of family size. Occupation. family size. RAV4. amry. Prius. For 35000$+. Corolla.
Toyota segments their market on the basis of Benefits and loyalty status. • . • BehavioralDepending on the behavior of the customers. So this segmentation is highly profitable for Toyota. That’s why Toyota offers three kinds of benefits to their consumers. Benefits: Different consumer’s wants different sort of benefits from their products.. • Loyalty status: Consumers. That’s why Toyota segments their market on the basis of three social classes: Higher class. Life Style: Toyota offers highlander and FJ Cruiser to the adventurous people and cars like Avalon and Sequoia. power and fuel efficient. • Social class: People of different classes has different choices. who are highly loyal to the products of Toyota has a special place in Toyota’s segmentation. For example people of Asia are highly loyal to the products of Toyota.Psychographic People in the same demographic group can have very different psychographic make ups. That’s why Toyota also segments their market on the basis of psychographic factors like Social class and Lifestyle. They are durability. Upper Middle class and middle class.
they know which consumer wants what product. purchasing power and profiles of the targeted segments. They don’t choose segments which are out of their capability. As a result they have clear measurement about size. These ways helps Toyota to have a clear overview of the segmentations done by them. The effective measurements that they choose for their segmentation are: • • • • • Measurable: Segmentation done by Toyota is thoroughly researched and analyzed. So Toyota differentiates their consumer on their choices and creates effective segmentation for them. Accessible: Toyota can easily reach into the core of their segments and have a profound access because of their vast knowledge and ability over these segments. Actionable: Toyota does their segmentation on the basis of their resources and serves each and every one of them efficiently. .Effective Segmentation of Toyota Toyota chooses their segments on effective ways. Differentiable: Since Toyota has a clear knowledge over their segmented market. Substantial: Toyota chooses segments in the market that are highly profitable for the company.
Toyota has offer some exotic cars like Lexus series some specific groups Not possible Followed by Toyota Concentrated Marketing Ignore by Toyota Micromarketing . .TOYOTA’s Market Targeting Evaluating Toyota Market Segmentation: • Segment size and growth Segment structural attractiveness • Company objective and resources • Selecting Toyota’s Target Market Segmentation: Type of marketing Undifferentiated marketing(mass marketing) Differentiated marketing Remarks Ignore by Toyota Followed by Toyota Explanation The company basically does not follows the mass marketing strategy. Lexus. Toyota offer different model of car for different segments like Corolla.
Because it is impossible to full-fill individual and local consumer demand for Toyota. Differentiated marketing It is the most important way for Toyota to target the segment market. Micromarketing Toyota automobile ignore targeting this type of market segment. . Toyota offer different model of car for different segments like ‘Corolla’ for middle class. ‘Lexus’ for upper class. • And ‘Corolla’ series for middle class. Concentrated Marketing • Toyota offer ‘Lexus’ series for luxuries consumers.Undifferentiated Marketing Toyota totally ignores undifferentiated Marketing.
“How far will you go to save the planet?” it asks to the consumers to make a great position on their mind and to think about the environment as Toyota believes their product is eco-friendly. .Positioning Toyota works strategically to establish a firm position on the mind of their consumer. One of the stronger sides of Toyota is that they offers better car in affordable price comparing to the other car industries. Their main motto is “moving forward” and “Pursuit of perfection”. On this basis they produce highly affordable cars for the people of higher middle and middle class creating a better positioning on their mind.Prius as high tech solution to the energy shortage. With these mottos on their mind Toyota tries to develop their product up the quality of the consumer’s choice. Toyota positions its fuel efficient hybrid car.
Positioning map BMW GM Toyota TAT A .
• Performance higher than Tata but lower than General motors and BMW Tata: • Price lower than BMW. Toyota. Toyota. General Motors and Toyota. • Performance lowers than BMW but higher than Toyota and Tata. Performance higher than General Motors. General Motors: • Price lower than BMW but higher than Toyota and Tata. Toyota: • Price higher than Tata but lower than BMW and General Motors. General Motors and Toyota.BMW: • • Price higher than General Motors. Tata. Tata. . • Performance lower than BMW. This positioning map revels the position of the Toyota Car on the consumer mind on the basis of price and performance comparing to the other Competitors.
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