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Table of Contents
Introduction ............................................................................................................................................ 4 Toyota Motor Corporation ................................................................................................................... 4 Designing the Logo............................................................................................................................... 5 Start of Commercial Production 1947 .................................................................................................. 5 Toyota the World Leader ......................................................................................................................... 6 JIT Just In Time .................................................................................................................................. 6 Lean Production ................................................................................................................................... 6 Toyota's Global Marketing Strategies....................................................................................................... 7 New Marketing Strategy ...................................................................................................................... 7 TOYOTA s Non Automotive Activities: ...................................................................................................... 8 Aerospace............................................................................................................................................ 8 Philanthropy ........................................................................................................................................ 8 Higher education ................................................................................................................................. 8 Robotics............................................................................................................................................... 8 Finance ................................................................................................................................................ 8 Agricultural biotechnology ................................................................................................................... 8 Automobile Sector in Pakistan ................................................................................................................. 9 TOYOTA INDUS MOTOR COMPANY LTD. .................................................................................................. 9 Vision and Mission: ............................................................................................................................ 10 Toyota as a Brand .................................................................................................................................. 11 Toyota Brand Positioning: .................................................................................................................. 11 Toyota Brand Image: .......................................................................................................................... 11 Toyota Brand success ......................................................................................................................... 11 Successful brand..................................................................................................................... 11 Innovation .............................................................................................................................. 11 Product Development ............................................................................................................ 12 Market Focused Strategy ........................................................................................................ 12 Iconic Brands .......................................................................................................................... 12 Brand Extensions .................................................................................................................... 12 Toyota Indus Product Portfolio .............................................................................................................. 12 Locally assembled .............................................................................................................................. 12

............ 15 BRAND PERSONALITY: .................................................................... 16 DAIHATSU COURE .. 14 BRAND POSITIONING AND IMAGE ... 16 BRAND IMAGE: ....................................................................... 18 Economic Threats: ......................... 18 Recommendation: ......................................................................... 18 Recent 2007 2010 financial crisis ..... 16 BRAND IMAGE: ................................................................................................................................................................................................................................................................................................................................................................................. 14 DAIHATSU COURE ............................................................................................................................................................................................................................................... 17 Threats to TOYOTA ............................................................................................................................................................. 15 TOYOTA COROLLA: ................................................................................................................................................................................................................................................................................................................................. 15 TOYOTA CAMRY ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 15 BRAND POSITIONING: ............... 17 Problems highlighted ............................ 15 BRAND IMAGE: .......................................Imported Vehicles...................................... 15 BRAND PERSONALITY: ................................................................ 12 BRAND ARCHITECTURE: ........................................................................ 16 BRAND PERSONALITY: ......... 14 TOYOTA CAMRY ........................................................................................................................... 15 BRAND POSITIONING: ....................................................................................................... 16 BRAND POSITIONING: ......................................................................................................................... 20 ....................................................................................................................................................................................................... 14 TOYOTA COROLLA .................................................................................................... 17 External and Internal Forces on TOYOTA INDUS: ......................................................................................................................

Toyota is one of the world's largest automobile manufacturers. TMC has now become undoubtedly the world's largest automobile manufacturer by sales and production. is a very renowned brand name. The story of Toyota Motor Corporation began in September 1933 when Toyoda Automatic Loom created a new division devoted to the production of automobiles. secret behind its success. But on the other hand. So this report talks about the real Toyota and also analyses it critically. Production of the model AA passenger started in 1936. Toyota Motor Corporation group companies are Toyota (including the Scion brand). The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles. in 1936. is a multinational corporation headquartered in Japan. which in turn was used for the production of the first Model A1 passenger in May 1935 and the G1 truck in August 1935. . In addition to manufacturing automobiles. Three years earlier. and. Lexus. A Top 10 Fortune Global 500* enterprise. the Toyota AA. while still a department of Toyota Industries. Toyota Motor Corporation is headquartered in Toyota City. (*As published in the new edition of Fortune magazine) Toyota Motor Corporation Toyota abbreviated as TMC. it created its first product. one of the largest conglomerates in the world. Aichi and in Tokyo. the division produced its first Type A Engine in 1934. TMC is part of the Toyota Group. along with several "nonautomotive" companies. Daihatsu and Hino Motors.Introduction Toyota. Quickly thereafter. selling over 9 million models in all five continents. Toyota has been shaped by a set of values and principles that have their roots in the company's formative years in Japan. in 1934. an achievement the company believes stems from its dedication to customer satisfaction. It would be very hard to imagine someone not being able to tell from the name what Toyota is about. Toyota ranks among the world's leading global corporations and is proud to be the most admired automaker. its first passenger car. from where and how it evolved. the Type A engine. Toyota provides financial services through its Toyota Financial Services division and also builds robots. there are few who know Toyota actually. which means an industrial city of Japan in southern Honshu.

proficient engineering. the company name was changed to: y y y Signify the separation of the founders' work life from life Simplify the pronunciation. Toyota introduced a new worldwide logo in 1989 in conjunction with and to differentiate it from the newly released luxury Lexus brand. and Give the company an auspicious beginning. To remedy this. Toyota offers one of the largest ranges of vehicles of any manufacturer and amongst its more predictable high-volume models produces a number of exciting sports cars: the Celica.Designing the Logo Toyota Motor Co. and value. . where eight-stroke count in the Japanese language was associated with wealth and good fortune. there were no guidelines for the use of the brand name. "TOYOTA". the latter which was discontinued in 1998 for export and in 2002 in Japan altogether. and the Supra. The company is immensely profitable. selling under the Hino brand. There are three ovals in the new logo that combine to form the letter "T". was established (which lasted until July 1982). It has a small division. The overlapping of the two perpendicular ovals inside the larger oval represent the mutually beneficial relationship and trust that is placed between the customer and the company while the larger oval that surrounds both of these inner ovals represent the "global expansion of Toyota's technology and unlimited potential for the future. Toyota's vehicles are generally highly regarded for their quality. In 1950 a separate sales company Toyota Motor Sales Co. but their designs are often viewed as visually bland and lacking the flair seen in cars from certain smaller manufacturers. which was used throughout most of the world. the MR2. Today Toyota is one of the top manufacturers with large market shares in both the US and Europe. which led to inconsistencies in its worldwide marketing campaigns. and its massive reserves dwarf those of many countries. In April 1956 the Toyota dealer chain was established. was established as an independent company in 1937. Although the founding family name is Toyoda." Start of Commercial Production 1947 Commercial passenger production started in 1947 with the model SA. The original logo no longer is found on its vehicles but remains the corporate emblem used in Japan. Toyota is considered luckier than Toyoda in Japan. Toyota is Japan's biggest company and the second largest in the world (the larger being General Motors). which stands for Toyota. selling under the Daihatsu brand as well as a heavy vehicle division. Still.

Toyota created a value chain of linked suppliers. productivity and quality. they did not match Toyota in efficiency. which has lately started in China and all around the world. Rather than reworking individual cars. no other automaker in the world had been able to make their production systems and processes as efficient as Toyota had done. JIT system is Toyota's greatest asset in global market competition that other leading automakers like Mercedes-Benz. The key principles include cutting waste in all parts of the value chain and giving every worker the right to stop the production line when he or she finds a mistake. The early adoption of JIT principles by Toyota seemed to have helped the company to achieve significant success. This system was referred to as Just-in-Time (JIT) within the Toyota Group. The beginning of the system goes to late 30`s when Kiichiro Toyoda (the founder of Toyota) devised a system wherein each process in the assembly line of production would produce only the number of parts needed at the next step on the production line. Despite imitating Toyota's JIT for many years. . supplier relations and distribution.Toyota the World Leader Toyota is aiming cost effective productions with JIT system. all of whom have a clear stake in making the company more successful and they all continue to enjoy the rewards of the greater efficiencies brought about by Lean production system. which made logistics management easier as material was procured according to consumption.' Lean Production The famous Lean production techniques were originally developed by Toyota as a route to costeffective mass-customisation. It helped the company respond quickly to changing customer needs and offer high quality products at low costs. JIT was used not only in manufacturing but also in product development. Honda and Chrysler excelled in advanced engineering techniques. Additionally the products which are offered are high tech developed with high reliability with moderate pricing than its counterparts. thereby increasing productivity. JIT Just In Time Toyota is the benchmark in manufacturing and product development in automobile industry. engine technology and styling. The JIT production was defined as 'producing only necessary units in a necessary quantity at a necessary time resulting in decreased excess inventories and excess workforce. thus increasing customer satisfaction. Toyota workers are allowed to stop production and work together to fix the underlying problem.

it is trying to create a strong brand image by doing reality show "The Contender" rather than just lending support during commercial breaks. The sale of hybrid version of Camry is getting a lot of interest in US. Toyota is recognised not only from middle class. "whose brand value rose 10%. On the other hand the Japanese automakers are doing fine with the boosting market share in US as climbing oil prices make fuel efficient models such as Toyota Corolla and Honda Civic increasingly attractive.Toyota's Global Marketing Strategies Americans loves big houses and big cars and that's why main players in car making industry (US based) such as GM. it has loyalty from every segments of the society in all around the world. One of the reason is. The main similarity of these cars is reliability. The grand prize: a million dollars and a Toyota truck." On the other hand rival Nissan has increased its sales up 13% by parking Titan pickups in front of houses in hit ABC show Desperate Housewives. Aston Martin and Omega in James Bond. Today. shortly any technological development that car manufacturers are offering also addition with fuel efficient motors. Toyota is likely to continue to get a big lift from the growing global interest in fuel efficiency. . which have worked for its purpose. These approaches have seen in the past. antiskid control. Toyota have built up great loyalty with its customers by offering them moderate price cars with high tech developments such as ABS brake systems. Ford and Chrysler were manufacturing big cars with high fuel consumptions. According to Global Brands 2005. With the lead of Toyota. side-impact and head-curtain air bags. because the middle class is the majority in the social hierarchy. Coca Cola and Mc Donald's in World Cup football competitions and many more appeared in special events or occasions in order to increase public awareness about their products." (Global Brands 2005) For instance. about small-time boxers competing for a nationally televised bout. Matrix for youngsters. Toyota. Toyota is offering products to all types of market. Lexus for luxury choice. Japanese companies started to provide economy cars with basic needs of the driver in order to reach firstly to middle class. New Marketing Strategy "Some marketers have worked to make their brand messages so enjoyable that consumers might see them as entertainment instead of an intrusion. Prius for family car. Toyota is not spending its budget for dull and bulk advertisements on TV in order to persuade its target market. paid $16 million to have its vehicles be part of the storyline on NBC reality show The Contender. Trucks for mainly for US and 4 x 4 for adventurers and many more.

the TAA-1 in 2002. Toyota has been developing multitask robots destined for elderly care. A specific example of Toyota's involvement in robotics for the elderly is the Brain Machine Interface. Toyota has also studied participation in the general aviation market and contracted with Scaled Composites to produce a proof-of-concept aircraft. Designed for use with wheelchairs. Toyota Technological Institute founded the Toyota Technological Institute at Chicago in 2003. Toyota showcased its trumpet-playing robot.TOYOTA s Non Automotive Activities: Aerospace Toyota is a minority shareholder in Mitsubishi Aircraft Corporation. and entertainment. "United States Hispanic Chamber of Commerce Internship Program." "Toyota TAPESTRY. and others. Indiana. Toyota is supporter of the "Toyota Driving Expectations Program. right and forward with a delay between thought and movement of just 125 milliseconds." "Toyota International Teacher Program." "Toyota Community Scholars" (scholarship for high school students). National Underground Railroad Freedom Center (US$1 million) among others. Philanthropy The Toyota Municipal Museum of Art in Aichi.2 million in the new venture which will produce the Mitsubishi Regional Jet. helping low-income community members for education. Toyota is supporter of the Toyota Family Literacy Program along with National Center for Family Literacy." and "Toyota Funded Scholarship. Toyota created the Toyota USA Foundation. Robotics In 2004. slated for first deliveries in 2013. United Negro College Fund (40 annual scholarships). manufacturing. The thought controls allow the wheelchair to go left. as Sakichi Toyoda had planned to establish a university as soon as he and Toyota became successful." It has contributed to a number of local education and scholarship programs for the University of Kentucky. Finance Toyota Financial Services Corporation provides financing to Toyota customers." "Toyota Youth for Understanding Summer Exchange Scholarship Program. Higher education Toyota established the Toyota Technological Institute in 1981. Agricultural biotechnology Toyota invests in several small start-up businesses and partnerships in biotechnology . having invested US$67. almost in realtime". with his mind. sponsored by the manufacturer. it "allows a person to control an electric wheelchair accurately.

IMC is engaged in sole distributorship of Toyota and Daihatsu Motor Company Ltd. The shares of company are quoted on the stock exchanges of Pakistan. Toyota also have a wide range of imported vehicles.000 units per annum in just 4 years. IMC's production facilities are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres. IMC's Product line includes 6 variants of the newly introduced Toyota Corolla.org. The company was incorporated in Pakistan as a public limited company in December 1989 and started commercial production in May 1993. As the industry's growing. Throughout the 90's the annual automobile production remained constant around 45. Toyota Hilux Single Cabin 4x2 and 4 versions of Daihatsu Cuore. (www.Automobile Sector in Pakistan Automobile sector is one of the fastest growing sectors in Pakistan. Just in Time spirit implies two opposing forces of providing fast and flexible response to customers. yet building efficient mechanisms and systems that are efficient and waste-free.pk) TOYOTA INDUS MOTOR COMPANY LTD. progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01. To ensure highest level of productivity world-renowned Toyota Production Systems are implemented.23 billion to the national exchequer in the year 2003-04. . Employment. 1990. and Toyota Tsusho Corporation Japan (TTC) for assembling. Investment and much more. in the right amount. The concept is to provide the right product and information. Toyota Motor Corporation and Toyota Tsusho Corporation have 25 % stake in the company equity. vehicles in Pakistan through its dealership network. Toyota Motor Corporation Japan (TMC) .000 but due to consistent policies and positive macro economic conditions the industry boomed to over 120. It contributes towards the nation s economy in the form of Technology Transfer. Indus Motor Company (IMC) is a joint venture between the House of Habib . Indus Motor Company s plant is the only manufacturing site in the world where both Toyota and Daihatsu brands are being manufactured. Automobile sector contributed over Rs.pama. so are the Automobile companies. The majority shareholder is the House of Habib. at the right time. Heavy investment was made to build its production facilities based on state of art technologies. Every manufacturer is in the process of increasing production capacity to meet customer demands.

y y y y y y The most respected. Wide range of products. Toyota have to practice this contradictory idea in our daily activities. while maintaining high standards of efficiency and cost control. The best technology.in the right manner. Toyota is developing various new technologies from the perspective of energy saving and diversifying energy sources. The best people. ³Action Commitment Teamwork for becoming # 1 in Pakistan´ Means a committed team to make Indus # 1 in: y y y y y y Respect and Corporate Image Customer Satisfaction Quantity in Production & Sales Quality Profitability Best Employer . Mission of Toyota is to provide safe & sound journey. delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology". Delighting customers. The most successful. Vision and Mission: "IMC s Vision is to be the most respected and successful enterprise. Environment has been first and most important issue in priorities of Toyota and working toward creating a prosperous society and clean world.

more efficient process which leads to less waste compared to the traditional batch and queue method of manufacturing. Toyota s Brand Communication talks about Moving Forward This tagline embodies the spirit of constant innovation on the part of Toyota. It also applied JIT (Just in Time manufacturing) and smart automation.Toyota as a Brand The positioning of a brand is done keeping in mind where the company wants the people to see the brand and where exactly do they want the brand to go. Toyota has moved to a global manufacturing model.Toyota has developed a trusted brand based on quality. It successfully localizes the production to cut costs. good performance and for being environmentally friendly.Toyota is at the forefront of car manufacturing innovation. It lends the associations of quality and technological capability to the brand. The positioning is an important part of the Global Vision of the company. It was the first car manufacturer to embrace lean manufacturing (known as Toyota Production System) which is a faster. In Pakistan Toyota has a tagline Quality Revolution which signifies unmatched quality. Toyota Brand Positioning: Majestic Quality Commitment to improving society Innovation in Technology Toyota Brand Image: People associate Toyota with: Quality Value for money Ecofriendly Toyota Brand success The reasons for its success could be attributed to the following factors: Successful brand . Innovation . .

with the launch of Prius model.oil continues to rise) through the development of hybrid fuels. Whereas. The European Market. Toyota has sought to meet government requirements (for reducing the impact on the environment). new product launches have been key as innovation is a motivating factor for people to buy products and for the company to stay ahead of its competition. which stimulate demand and loyalty to the Toyota brand. Market Focused Strategy . Locally assembled    Corolla Coure Hilux Imported Vehicles       Camry Land Cruiser Prado Fortuner Avanza Terios . Iconic Brands . on the other hand is heavily dependent on Integrated Manufacturing and Marketing. ahead of competitors. Toyota was the first car manufacturer to market hybrid (gas and electric) fuel.Product Development . Camry and Land Cruiser. and of good performance. it relies on affordable cars and Multi Utility vehicles. Brand Extensions . in a market like North America.It has also created successful brand extensions such as Lexus in order to widen its portfolio Toyota Indus Product Portfolio Toyota currently product offerings which Toyota has in Pakistan fall in two types of categories locally assembled vehicles and imported vehicles. The major portion of the Pakistan automobile sector is dominated by the locally assembled vehicles. economic changes (as prices of fuel . more fuel efficient.It successfully created iconic independent brands such as the Corolla. Toyota has reputation for producing cars that are greener.Toyota has different strategies for different markets Eg: In the developing Asian markets. and innovated them in order to maintain their brand equity.Key to the success in the car market is new models.

. it is clear that Toyota has the most competition in segment 3. 5-7 lakhs) Entry level small car TOYOTA Daihatsu Coure COMPETITORS Suzuki Mehran Suzuki Alto Segment 2 (Rs 7-10 lakhs) Premium hatchbacks No offering Suzuki Swift Suzuki Cultus Segment 3 (Rs 10-18 lakhs) Compact sedans Toyota Corolla Honda Civic Chevrolet Optra Mitsubishi Lancer Nissan Sunny Honda City Suzuki Liana Segment 4(Rs 20 above lakhs) Executive sedans Segment 5(Rs 10-15 lakhs) Multi Purpose Vehicle Segment 6(Rs 20 lakhs plus): SUV/ Pick up truck Toyota Camry Honda Accord No offerings Suzuki APV Toyota Hilux Toyota Prado Toyota Landcruiser Mitsubishi Pajero Honda CR-V From the above table. This is the segment in which corolla has proven itself unbeatable. which is compact Sedans segment.SEGMENT Segment1 ( Rs.

TOYOTA COROLLA Toyota Corolla follows Endorser Brand Architecture. Toyota Camry is having Individual Product Branding as we see the rear side of the vehicle. so Toyota has kept Daihatsu as a spate entity so that it does not coincides with the overall image of Toyota and both run smoothly in perfect synchronization. corporate. but Daihatsu Coure falls in the small car category. Hence. one another. by allowing a firm to position its brands differently. it separate identity is kept this way (by the name of Daihatsu) to create a differentiation between Toyota and Daihatsu image. and how the sub-brands reflect or reinforce the core purpose of the corporate brand to which they belong. It is the way in which the brands within a company s portfolio are related to. Mother Brand is on level with Daughter Brand i. is the marketing strategy of giving each product in a portfolio its own unique brand name.e. and differentiated from. TOYOTA CAMRY Individual branding. Endorsement Brand Strategy is best suitable for Corolla. DAIHATSU COURE Daihatsu is a subsidiary of Toyota Motor Corporation. Now it can be easily communicated that Toyota wishes to endorse this Brand as its reputation gets transferred to Brand Corolla.BRAND ARCHITECTURE: Brand architecture is the structure of brands within an organizational entity. Corolla. So by keeping Daihatsu s identity alive Toyota has targeting a huge small car market in Pakistan with a very healthy effect over the brand as a whole. Individual Product Branding is best in case of Camry. Toyota is known for quality and has established this reputation all across globe. As Corolla is positioned as a family Sedan and comes in a large category which is endorsed directly to the name of TOYOTA. how the corporate brand and sub-brands relate to and support each other. also called individual product branding or multi-branding. and umbrella branding in which the products in a product line are given a single overarching brand name. we will find Camry written on the left hand side. where as the mother brand Toyota is not there. Camry comes under Luxury Brand and having its own brand Identity. Hence. The architecture should define the different leagues of branding within the organization. The advantage of individual branding is that each product has an image and identity that is unique. This contrasts with branding. . here by looking at the rear view of the vehicle. This facilitates the positioning of each product.

The Corolla is currently in its 10th generation. it is positioned as a safe. BRAND PERSONALITY: The key behavioral traits that define the Corolla s personality are: Safe Dependable Elegant BRAND POSITIONING: The Corolla is positioned as the best compact sedan.BRAND POSITIONING AND IMAGE TOYOTA COROLLA: The Corolla is a line of compact/ sub compact cars manufactured by Toyota. with over 35 million sold as of 2007. For the Pakistani market. powerful and luxurious one over the generations. In 1997. its brand image was found to be: A very reliable car that is an all rounder A low maintenance and it for a hassle free owner experience A value for money with its sufficient power and decent looks It is image is that of being a bit unexciting and plain TOYOTA CAMRY Toyota Camry as a brand has been around for more than 28 years and has undergone six generation changes. It has grown from a basic family car into a more sporty. It has become very popular throughout the world since the nameplate was first introduced in 1966. advanced and spacious car with a superior driving experience. In the Pakistani market. the Corolla became the best selling nameplate in the world. it is positioned in the B+/ C segment. It is the largest selling sedan in the US and it retains its unique proposition of technological innovation along with affordable luxury. The series has undergone several major redesigns. BRAND PERSONALITY: The key behavioral traits that define the Camry s personality are: . Over the past 40 years. BRAND IMAGE: In the dipstick study that we conducted. one Corolla car has been sold on average every 40 seconds.

BRAND PERSONALITY: The key behavioral traits that define the Coure s personality are: Versatile Economical Trendy BRAND POSITIONING: The basic positioning of Coure is as a getaway vehicle that is compact in its small car category. It s positioning in the luxury segment has a good value proposition wherein it is priced much below competitors like Mercedes and BMW in the same segment and on par with models from Honda and Ford. we see that the brand positioning and image match to a great extent. powerful and stylish luxury sedan in the Pakistani market. its brand image was found to be: Performance Luxury sedan Style statement Technology packed Here.Stylish Powerful Sophisticated Plush BRAND POSITIONING: The Toyota Camry as a brand is positioned as a technologically advanced. Using superior Japanese technology and designed with the needs of drivers in mind. DAIHATSU COURE From the world of Toyota comes a quality product Daihatsu Cuore. It is positioned as a vehicle for all purposes. the Daihatsu Cuore offers unmatched performance. trendy and up market. specially for driving with in . driving comfort and safety. BRAND IMAGE: In the dipstick study that we conducted. Coure is positioned specially to target the small car segment in Pakistan. consistent reliability.

its brand image was found to be: Economical and sturdy vehicle Car level comfort and refinement Practical and affordable Multipurpose within city Here we see that the brand image matches the positioning in three aspects. The World market for cars is in a condition of oversupply and so car manufacturers need to make sure that it is their models that consumers want. Coure give the maximum value to the costumers in its category than any other car in the Pakistani automobile market. Perhaps that is why the company is beginning to shift its attentions to the emerging new markets. BRAND IMAGE: In the dipstick study that we conducted. Even the Toyota automobiles which are being assembled in Pakistan are prone to these exchange rates. stretching the affordability of the local people till its last limit. Therefore it is exposed to fluctuating economic and political conditions those markets. So if the car market experiences a down turn. Toyota produces most of its cars in Japan whereas competitors may be more strategically located worldwide to take advantage of global efficiency gains. External and Internal Forces on TOYOTA INDUS: Problems highlighted (Internationally & locally)    Being big has its own problems. The company needs to keep producing cars in order to retain its operational efficiency. rupee is continuously devaluing against the Japanese Yen and US dollar.the city with a comfortable and economical ride The brand uses the tagline All you desire and the ads are also catchy. Movements in exchange rates could see the already narrow margins in the car market being reduced. And its puts coure in the small car category in such a way that you can get more or less all the benefits that you get from a large car or sedan car category. as well as the high costs of training and retaining labor. If on the other hand the car market experiences an . the company could see over capacity. This makes the end price to rise. Car plants represent a huge investment in expensive fixed costs.

Home deliveries. Toyota recalled more than 8 million (accounts differ) cars and trucks worldwide in several recall campaigns. making it the latest automobile maker to be severely affected by the 2007 2010 financial crises. number of large families is declining. Governments encouraging alternative forms of transport . Increase in families who have chosen not to own a car.families using the car less for taking children to schools.   Economic Threats: These economic factors are potential threats for Toyota:    Saturation and increased competition. Undermining the demand for large family cars. recession. then the company may miss out on potential sales due to under capacity i.upturn.cycling and incentives to use public transport across Europe. Changing usage . As household budgets tighten .g. South Korea and new plants in Eastern Europe. with new entrants coming into the market from China. will affect car purchases (especially new cars).restricting business travel (tele-conferencing). Businesses .e. . and briefly halted production and sales.this could lead a decline in new car sales and possible rationalization of dealerships. From November 2009 through the first quarter of 2010. Toyota faces tremendous competitive rivalry in the car market. This is a typical problem with high volume car manufacturing. The company is also exposed to any movement in the price of raw materials such as rubber. Competition is increasing almost daily. 2009.00 sports utility vehicles and pick up trucks due to faulty front suspension systems. it takes time to accommodate. Changing demographics e.2 billion. Threats to TOYOTA  Product recalls are always a problem for vehicle manufacturers. In 2005 the company had to recall 880. steel and fuel.    Recent 2007 2010 financial crisis On May 8.g. Toyota did not give details of how much the recall would cost. Shifts in the exchange rates affecting profits and cost of raw materials. Rising oil prices (fuel costs) and the costs of maintaining cars. Toyota reported a record annual net loss of US$4. As with any car manufacturer. or decided to use their car less. intense marketing campaigns increasing competitive pressures. Predictions of a downturn in the economy e.

as a result of recent recalls.375 million from Toyota for its delayed response in notifying the National Highway Traffic Safety Administration regarding the defective accelerator pedals On 18 May 2010. Toyota CEO Akio Toyoda testified before the House Committee on Oversight and Government Reform. . The US government is regulatory body and part owner of two major competitors. The record fine and the high profile hearings caused accusations of conflict of interest. 2010. On February 24. James Lentz. General Motors and Chrysler. Senior managing director Takahiko Ijichi said that recall-related costs in the financial year that ended March 2010 totaled US$1.The US Sales Chief. On 6 April 2010.93 billion (¥180 billion). was questioned by the United States Congress committees on Oversight and Investigations on February 23. 2010. Toyota paid the fine without an admission of wrongdoing. The US government sought a record penalty of US$16.

g. becaue it faces the problem of over and under capacity in case of upturn and downturn of the market  Advertising the new system Training user with new skills and knowledge Achieving Global reach Monopoly issue  The shape of car as customer perceive need to be changed by the Toyota because people believe that every new model of Toyota is like the old one. as a huge market is waiting for an effort like this To expand more aggressively into new segments of the market. Based on advanced technologies and R&D activity. Toyota should adopt an offensive marketing strategy for entering in the small car segment.Recommendation:  As TOYOTA are the first to develop commercial mass-produced hybrid gas-electric vehicles (gas and electric). With oil prices at an all time high . Toyota must plan out an ideal marketing producing capacity.this investment and widening of product portfolio fits consumers looking to alternative sources of fuels away from gas guzzling cars. Interior of the car of Toyota. which mostly people of Pakistan do not much like. e. Toyota should continue its global expansion . Toyota must at the moment carry out a feasibility study for launching a vehicle in the domestic market where it has models like the Innova and Camry amongst others.especially in the emerging markets            Toyota should adopt the defensive marketing strategy because as being the second largest car producer in the international market. Prius model. Toyota should conduct market survey in Pakistan market for quails in order to know the perception of Pakistani consumers. The launch of Aygo model by Toyota is intended to take market share in youth market. This market is dominated by Suzuki Mehran and Alto in the Pakistani domestic auto market. have greater performance and less impact on the environment. needed to be changed  . So they can introduce Prius model in Pakistan. This could be a profitable launch in the Asian market including Pakistan To produce cars which are more fuel efficient.