TOYOTA CASE STUDY

ANSWER 1.
Toyota has been very successful in maintaining the Quality and reliability of its Cars and has
been consistent over years. It has evolved to be a bigger brand than any other auto
manufacturer because of the following reasons:

1. It manufactures cars for each of its consumer segments with varying budgets.
2. Its adoption of the Postponement strategy thus using a single giant network to
provide customised cars for local markets has acted as a masterstroke to meet the
market demand surge.
3. It manufactures cars for every demographic segment with varying customized
requirements.
4. They are continuously working towards the up-gradation of their high-quality designs
and innovating in their technologies to make their cars more efficient and thus are also
setting up a benchmark for its competitors.
5. It provides cars for specific target groups who want more personalization and the car
‘mono-spec’ is built at the factory while customers can choose their preferred custom
elements at the car dealerships.

ANSWER 2.
No, Toyota has not done the right thing in manufacturing a car brand for everyone, because
of the following reasons:
1. By catering for all segments, it has lost its uniqueness as an exclusive brand
because even if it makes luxury cars people still want to look different in terms of
brand identity so they refrain from buying a Toyota just because it is a common
brand.
2. Market segmentation might occasionally end up being an expensive endeavour.
Because the company must create unique marketing mixes for various categories,
a marketer faces significant challenges.
3. Mass production is far less expensive than producing a range of goods.
4. Managing inventory becomes costly due to SKU proliferation increases and
profitability erodes.
5. Promotional expenses increases as each segment need different promotions
strategies