4.

0 Product-Market Focus

In this section, the Company three year development projections is clearly

explained invarious categories, which are developing of a strategic focus;
marketing goals and objectives; targetmarket; and the Company position in the
market.

4.1 Developing a Strategic Focus

Toyota has already embraced product differentiation as a major strategy in

market penetration and the strategy is working well. It is determined to use a
pricing mechanism thatwill give it a competitive edge over its main competitors.
The cost of production of a unit for Toyota is projected to be large but due to
possible mass production plants, the overall cost willnot be a huge issue in this
case. This means the company will be able to sell its products at aneven lower
price yet still remain profitable. The company is taking an advantage of this and
using it to penetrate the markets of emerging economies with affordable
products.

4.2 Marketing Goals and Objectives

Toyota’s enormous size and capacity is a great advantage in meeting industry

growth.The number of clients in need of cars is constantly increasing, thus
creating a bigger market for Toyota and requiring more of their products. The
perceived importance of owning a car due toincreased travelling needs in today’s
largely corporate world is constantly increasing as well.Toyota’s great size will
enable them to successfully meet the needs of this growing population of
customers in need of cars (Dobni, 2002, p.41).The company keeps making quality
product and make it a rule not compromise on this,and not to give in to the
competitors’ pressure and rise their prices then clients will remain loyalto the
company (Armstrong & Kotler, 2002). Then, everyone has a chance to know the
realvalues behind Toyota’s past, current, and hopefully future existence
(Armstrong & Kotler, 2003).Toyota is in the process of engineering lesser
platforms to be used in the assembly of itsdifferent models. This is as a cost
cutting measure; they intended to compress their platformsfrom 20 to ten in the
ambitious exercise. This is especially important since their chief rivals; GMand
Ford have made notable improvements in their production process. Toyota is
also thinkingtwice about its bloated assembly points. It is thinking of best ways
to reduce them withouthindering its efficiency (Mullins, Walker & Boyd, 2010).
4.3

Target Market

Each of Toyota’s products is designed to target a specific market. The design

criteriarange from top speed, capacity and exterior appearance like color and
shape. There is a highspeed, small, two-seat model cars for the relatively younger
and single people who areadventurous to the big five-seat models for the family
set up. Demographically, they also target

The marketing activities of any business organisation play a key role in the
success of the organisation. The marketing activities are carried out depending
upon the micro and macro environmental factors. Moreover, the international
operations of the business organisations need specific marketing strategies for
specific geographic locations. If any business organisation operates
internationally, then it needs to adopt different marketing mix and different
marketing strategies to succeed in two different locations. This report analyses
the international operations of Toyota in UK and in Saudi Arabia, and the
different factors that influenced the marketing decisions in these two countries
are also analysed. Toyota devises the marketing mix in the countries of
operations based on the macro environmental factors, and the differences in the
marketing mix, and marketing strategies are analysed.

Marketing Mix:
The marketing mix is the mix of the marketing activities, which includes the
product, price, place and promotion. The right mix of these 4P’s is important in
ensuring that the operations of the business are successful. The appropriate
marketing mix can be helpful in devising effective marketing strategy for the
business.

Product:
The first and foremost component of marketing mix is the product. It includes
the product offerings of the business. Toyota offers wide range of products in
both the countries i.e., UK and Saudi Arabia. Although, Toyota offers same
products in different countries of operations, but at the same time, it also
manufactures specific products for different countries of operations. The product
offering is customised according to the taste and preferences of the customers in
the local region. The product offerings of Toyota in UK include more products as
compared to the products offered in Saudi Arabia. The products offered in UK
include iQ, AYGO, Yaris, Verso, Avensis, and various others, (Toyota UK, 2012).
On the other hand, Toyota offers few cars in Saudi Arabia, such as Yaris, Corolla,
Camry, etc., (Toyota SA, 2012). The different product offering is mainly due to
the demand in the market. In UK, Toyota also deals in used cars, which it
procures from the existing customers. Considering the market in UK for used
cars, Toyota offers the used cars for its customers, whereas, it doesn’t deal in
used cars in Saudi Arabia. In addition to this, Toyota also deals in spare parts
and accessories in UK and in Saudi Arabia.

The product offering in different countries of operations can differ due to various
macro environmental factors. The lower taxes in Saudi Arabia makes it viable for
Toyota to offer limited products with higher margins, whereas the taxes and
regulations are more in UK, therefore, it had to offer more number of products to
earn decent profits. Moreover, the incentives and benefits offered by the
government of Saudi Arabia for setting up manufacturing plants have also been
significant in its product offerings.

Price:
The pricing of the products is also an important part of the marketing mix. If the
products are priced too high, then the demand will decrease, and if the price is
low, then the business will find it difficult to survive. Therefore, it is important
that price of the products is competitive, so that marketing activities can be
successful. Toyota offers different prices for same products in UK and Saudi
Arabia. For example, the price of Yaris in UK starts from 10,000 pounds,
whereas, the price in Saudi Arabia starts from 50,000 SR, which indicates that the
prices are low in Saudi Arabia, and high in UK, (Toyota SA, 2012).

The different macro environmental factors that might have played an important
role in different prices for same products can be the exchange rates, interest rates,
taxes, and various other factors. The higher taxes and higher interest rates can
lead to higher prices in a country like UK. Therefore, it is important for Toyota to
price its products according to the country of operations. If same higher prices
are fixed for products in Saudi Arabia, then Toyota may not be able to compete.
The macro environmental factors like the government subsidies, taxes, inflation,
can also impacts the pricing of the products in UK and Saudi Arabia. The pricing
of the products Toyota needs to be competitive depending upon the market
environment of the geographic location. The pricing of the products in UK
includes finance offers, and various other benefits offered to customers, whereas,
these benefits are not offered to the customers in Saudi Arabia.

Place:
Place refers to the distribution network, or the place from where the products are
sold to the customers. It is an important part of the marketing mix, as it is
important for the business to reach out for the customers. If a business
organisations distribution network is wide spread, then it will be able to reach
out for large number of customers, (Kotler, 2001). The distribution network of
Toyota in UK is widespread as compared to the distribution network of Toyota
in Saudi Arabia. Toyota also provides information to the customers through its
websites, which are customised according to the requirements of the customers
in both the countries. The websites provides information specific to the
customers from a particular geographic region.

The place from which Toyota sells its products to the customers can also be
influenced by the macro environmental factors. If the distributors are interested
in selling Toyota cars in a particular country due to higher margins, or better
profits, then the distribution network in such countries will be widespread. On
the other hand, if it is not viable for the distributors, then Toyota will have to
depend on its own stores to carry out its operations. In addition to the
showrooms, it also has a wide spread authorised service centres in both the
countries of operations, which are useful in serving the customers, (Toyota UK,
2012).

Promotion:
The promotion of the products is an important aspect of marketing and forms an
important mix of the marketing mix, (Kotler, 2001). The promotional activities
include the promotional pricing, finance offers, discount offers, free car services,
these are the promotional tools that are used by Toyota to promote its products
in the market. The advertising of the product is also a method of promoting the
products. The promotional activities play an important role in increasing the
sales of the products. In UK, it also offers tax free sales, so as to promote the
products.

The promotional activities of Toyota differ in UK and in Saudi Arabia. The

advertising of products is done using various media of advertising, so as to
promote the products. The products in UK are promoted using the promotional
offers like financing of the vehicles, discounts on spare parts, etc. On the other
hand, the promotional activities of Toyota in Saudi Arabia are restricted to
advertising, and other promotional events. The various macro environmental
factors that can play a vital role in the promotional activities can be the
government policies, taxes, inflation, as higher operating costs will lead to lower
promotion costs, and therefore, the promotional activities of Toyota differ in UK
and Saudi Arabia.
Thus, it can be said that the marketing decisions are influenced due to various
macro environmental factors. The environmental factors like exchange rates,
interest rates, inflation, government policies, all play a key role in the marketing
decisions. Therefore, it is important that the marketing decisions are made
considering the macro environmental factors present in the geographic location
of operation, and similar marketing decisions pertaining to the marketing mix,
and marketing strategy may not be successful at all geographic locations.

Marketing Strategy of Toyota:

Marketing strategy is the course of action that the organisation intends to take, so
as to be able to achieve the marketing objectives, (Lowe, Doole, 2008). The
marketing strategy of Toyota differs according to the market requirements in
different geographic locations. The Marketing strategy of Toyota is the
differentiation strategy, as it aims at differentiating its products from the
competitors’ products. The competitors like Ford are trying to acquire market
share by using same global marketing strategy, whereas Toyota adopts specific
marketing strategy for each market. Ford manufactures one type of car at a time,
and markets it globally, whereas Toyota manufactures products to be sold
globally, as well as products to be sold in specific country of operations. The
products are manufactured keeping in mind the requirements of the local
customers. In a country like Saudi Arabia, some of the global models may not be
effective, due to difference in climate and environment. Therefore, Toyota aims
to satisfy its customers by providing them with specific products that suits their
customers, (Toyota SA, 2012).

The differentiation strategy adopted by Toyota helps it in manufacturing

products which are different from the competitors’ products. The differentiation
strategy allows Toyota to price its products according to its own wish, as its
products are different from the competitors’ products. The marketing strategy of
Toyota has been successful in acquiring the market share, as it has been able to
provide products according to the needs of the customers. The marketing
objectives of Toyota in UK as well as Saudi Arabia are achieved due to different
marketing strategies adopted in different countries, (Toyota, 2012). On the other
hand, it is also seen that the marketing strategy of Ford to sell same product
globally has resulted in failure, as it incurred losses, (Ford, 2012). This
emphasises that the marketing strategy of any company should be set according
to the local market, and one strategy cannot fit all the geographic locations. Thus,
it can be said that the marketing strategy plays a vital role in the success of
Toyota, as it adopts different strategies in different countries of operations. The
differentiation strategy adopted by Toyota is helpful in increasing the sales, and
achieving the marketing objectives.
Further Improvement:
The marketing strategy of Toyota can be further improved by entering into
different segments. Toyota can target premium segment customers by
manufacturing premium priced cars for the elite group of customers. The
demand for premium cars in UK and in Saudi Arabia is high, and the marketing
strategy to target such a market segment could be highly beneficial. The
improved marketing strategy can be helpful in bringing diversification in the
product portfolio, as well as in increasing the customer base of Toyota.
Moreover, the profit margins are also high in case of premium market segment.

The performance of Toyota in the past has been impressive, and in future, it
needs to adopt innovative marketing strategies, so as to be able to attract large
number of customers and compete in the highly competitive market. Moreover,
Toyota should make its marketing decisions by focusing solely on the local
market, rather than implementing a global marketing strategy. In order to satisfy
local customers, the marketing strategy should also be devised according to the
needs of the customers, (Lowe, Doole, 2008). The fierce competition in the
automobile industry in UK as well as in Saudi Arabia requires that the marketing
strategy adopted is innovative, and it should offer competitive advantage over
the competitors.

 
Conclusion
The marketing activities of any business organisation play a key role in the
success of the organisation. The marketing activities are carried out depending
upon the micro and macro environmental factors. The product offering in
different countries of operations can differ due to various macro environmental
factors. The lower taxes in Saudi Arabia makes it viable for Toyota to offer
limited products with higher margins, whereas the taxes and regulations are
more in UK, therefore, it had to offer more number of products to earn decent
profits.

The pricing of the products is also an important part of the marketing mix. If the
products are priced too high, then the demand will decrease, and if the price is
low, then the business will find it difficult to survive. Place refers to the place
from where the products are sold to the customers. It is an important part of the
marketing mix, as it is important for the business to reach out for the customers.
The promotion of the products is an important aspect of marketing and forms an
important mix of the marketing mix.
 The marketing strategy of Toyota differs according to the market requirements in
different geographic locations. The Marketing strategy of Toyota is the
differentiation strategy, as it aims at differentiating its products from the
competitors’ products. The differentiation strategy adopted by Toyota helps it in
manufacturing products which are different from the competitors’ products. It
can be said that the marketing strategy plays a vital role in the success of Toyota,
as it adopts different strategies in different countries of operations. The
differentiation strategy adopted by Toyota is helpful in increasing the sales, and
achieving the marketing objectives.

 
References
Bradley F, 2004, ‘International Marketing Strategy (5th Edition)’, Publisher:
Financial Times/ Prentice Hall; 5 edition (9 Dec 2004).

Kotler P, 2001, ‘Kotler on Marketing’, Publisher: Free Press; New edition (28
April 2001).

Lowe R, Doole I, 2008, ‘International Marketing Strategy’, Publisher: Thomson

Learning; Fifth Edition (25 Jan 2008)

Ford, 2012, Ford Website, [Online] Available at www.ford.co.uk Last Accessed on

21.12.2012
Toyota UK, 2012, Toyota UK Website, [Online] Available
at http://www.toyota.co.ukLast Accessed 21.12.2012
Toyota SA, 2012, Toyota SA Website, [Online] Available
at http://www.toyota.com.sa/en/modelsprices.asp?model_id=2Last Accessed
21.12.2012

Toyota’s Products (Product Mix)

Toyota has a diverse set of products. This element of the marketing mix identifies
organizational outputs for the target customers. The following are the product lines in
Toyota’s product mix:

1. Toyota automobiles
2. Lexus automobiles
3. Welcab series
4. Marine products
5. Spare parts and accessories
6. Engines
 Toyota automobiles are the most popular in this product mix. Lexus automobiles are
luxury products from the company. On the other hand, the Welcab series are Toyota
automobiles modified for the elderly and people with disabilities. The company also
manufactures yachts, engines, and spare parts and accessories for automobiles and
marine products. This part of the marketing mix shows that Toyota reaches a wider
market and reduces market-based risks through a diverse product mix.

Place/Distribution in Toyota’s Marketing Mix

Dealerships are Toyota’s main places for distributing its products. This element of the
marketing mix determines the venues where customers can access the firm’s products.
The following are the main places in Toyota’s distribution strategy:

1. Dealerships
2. Retailers

Toyota dealerships are where most sales transactions occur. However, some retailers
like auto supply stores also sell the company’s products, such as spare parts and
accessories. This part of the marketing mix shows that Toyota relies heavily on
dealerships to sell its products to the target market.

Toyota’s Promotion (Promotional Mix)

Toyota’s promotion strategy covers all the tactics of marketing communications. This
element of the marketing mix pertains to how the firm communicates with the target
market. Toyota uses the following promotion activities, arranged according to
significance:

1. Personal selling
2. Advertising
3. Public relations
4. Sales promotion
5. Direct selling

Toyota uses personal selling through dealerships’ sales personnel, who personally
promote products to potential buyers. The company also uses advertising on various
media, such as TV, newspapers, and websites. In addition, the firm promotes its
products through public relations, such as the Toyota TogetherGreen program that
supports environmental initiatives, and the Meal Per Hour program that donates food to
Food Bank. These public relations activities create a positive brand image for Toyota.
On the other hand, infrequent sales promotion is used through special deals. Also, the
company sometimes uses direct selling for corporate clients. This part of Toyota’s
marketing mix indicates that the company has a comprehensive strategy for promoting
its business and products.
 Toyota’s Prices and Pricing Strategy
Toyota’s prices vary widely, depending on the product line and the product type or
model. This element of the marketing mix identifies how the firm sets the prices of its
products. Toyota uses a combination of the following pricing strategies:

1. Market-oriented pricing
2. Value-based pricing

Toyota uses the market-oriented pricing strategy to determine prices based on market
conditions and the prices of competitors. This pricing strategy is notable in the vast
majority of Toyota products, such as sedans and trucks. However, the firm also uses
the value-based pricing strategy, which sets prices based on the actual and perceived
value of the product. The company uses value-based pricing for high-end or more
expensive products, such as the Prius and Lexus cars. This part of Toyota’s marketing
mix shows that the company determines price levels based on market conditions and
customers’ perceptions.