A paper on the Digital Marketing Initiatives Undertaken by Toyota Motor

Corporation.
By :
Nkwelle Epie Ngome Junior,
ID: 202203029
Contemporary Technology University

Agenda
Executive summary
Company history
SWOT analysis
Product strategies
Pricing strategies
Promotion strategies
Distribution strategies
Digital marketing strategies
Sustainability practices

Executive Summary:
This paper is prepared to explore the digital marketing initiatives engaged by Toyota
Motor Corporation and to perform an analysis of the Strengths, Weaknesses,
Opportunities and Threats of the same. Also, we will take a look at the marketing mix
(4Ps) the company uses and some of the digital strategies practiced by the company.
Finally we will briefly view the sustainability practices that Toyota practices.
 • Company history:

Toyota Motor Corporation is a Japanese multinational automotive manufacturer

headquartered in Toyota City, Aichi, Japan. It was founded by Kiichiro Toyoda and
incorporated on August 28, 1937. In 2017, Toyota's corporate structure consisted of
364,445 employees worldwide and, as of September 2018, was the sixth-largest company
in the world by revenue. As of 2017, Toyota is the world's second-largest automotive
manufacturer. Toyota was the world's first automobile manufacturer to produce more
than 10 million vehicles per year which it has done since 2012, when it also reported the
production of its 200-millionth vehicle. As of July 2014, Toyota was the largest listed
company in Japan by market capitalization and by revenue.

Toyota is the world's market leader in sales of hybrid electric vehicles, and one of the
largest companies to encourage the mass-market adoption of hybrid vehicles across the
globe. Toyota is also a market leader in hydrogen fuel-cell vehicles. Cumulative global
sales of Toyota and Lexus hybrid passenger car models achieved the 10 million
milestones in January 2017. Its Prius family is the world's top selling hybrid nameplate
with over 6 million units sold worldwide as of January 2017.

Strategic Focus and Plan

There are three aspects of the existing corporate strategy that are developed in relation to
their overall impacts caused to the marketing plan of Toyota Company. These are:

1- Mission statement of the company.

Toyota tries to make a progressively prosperous society through car manufacturing.

Consequently, the Organization is gone for accomplishing a steady and long-haul
development in future, and this should be in synchronization with various variables: the
significant environment, worldwide economy, nearby networks served, and the Inward
Condition of partners

2- The company goals.

The Company has invested in offering of cross breed choices for each model that is sold
in the market. This is gone for empowering the Organization to make an absolute
closeout of 1 million.

Half and half vehicles inside a year, and this objective has been said to have been
accomplished constantly 2012. Toyota Organization has improved its 2011 Ecological
Activity Plan and it is committed in six distinctive key territories, which are: the Natural
Administration; changes in Vitality and Climate; the Nature of Air; concerned
Substances; the parts of Reusing and Improved Resource usage; and Societal
Collaboration. The Organization is resolved to decrease carbon dioxide emanation and it
is accepted to take consolidated activities of guaranteeing that nature is kept clean all the
time by watching the expressed mileage esteems

3- Core competency and sustainable competitive advantage.

Toyota Company is progressing in the direction of the accomplishment of a superior and

more sustainable economy by having a stable worldwide market. With progression in
new innovation and other related issues, the Organization is putting resources into
different procedures that will empower it to understand its set goals and destinations over
some undefined time frame. The Organization has an all-around created and equipped
network of skill that are into innovative work over viewpoints that are to keep the
Company on top in item and administration conveyance to its worldwide market.
Additionally, it has a wide scope of conveyance arrange all over the world and this has
empowered it to achieve a part of the market that is overseeing it to more prominent
dimensions.

SWOT analysis
Strengths
 Toyota is a big brand, and one of its biggest strengths is its great reputation.
 Due to the size of the company, it can invest a lot in research and development which
helps the company position itself strategically.
 The company can also attract a wide array of customers as compared to its
competitors.
 Toyota has many different car models which appeal to the different types of customers
according to their needs.
 New investment by Toyota in factories in the US and China saw 2005 profits rise,
against the worldwide motor industry trend. Net profits rose 0.8% to 1.17 trillion yen
($11 bn; £5.85bn), while sales were 7.3% higher at 18.55 trillion yen. Commentators
argue that this is because the company has the right mix of products for the markets
that it serves. This is an example of very focused segmentation, targeting and
positioning in a number of countries.
 In 2003 Toyota knocked its rivals Ford into third spot, to become the World's second
largest carmaker with 6.78 million units. The company is still behind rivals General
Motors with 8.59 million units in the same period. Its strong industry position is based
 upon a number of factors including a diversified product range, highly targeted
marketing and a commitment to lean manufacturing and quality. The company makes
a large range of vehicles for both private customers and commercial organizations,
from the small Yaris to large trucks. The company uses marketing techniques to
identify and satisfy customer needs. Its brand is a household name. The company also
maximizes profit through efficient manufacturing approaches (e.g. Total Quality
Management).
Weaknesses
 The biggest weakness of Toyota is its size. Being big has its own problems. 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. Toyota markets most of its
products in the US and in Japan. Therefore, it is exposed to fluctuating economic and
political conditions those markets may experience. Perhaps that is why the company is
beginning to shift its attentions to the emerging Chinese market. Movements in
exchange rates could see the already narrow margins in the car market being reduced.
 The company has many employees who make it difficult for them to manage and
coordinate any changes in plans to adjust to their competitors’ moves.
 The large number of models makes it difficult to appease all types of customers at the
same time.
 Toyota markets itself as a reliable brand, therefore, does not focus on price or luxury.
 High-end buyers are often unimpressed by the strategy pushing them to other
manufacturers.
 The company needs to keep producing cars in order to retain its operational efficiency.
Car plants represent a huge investment in expensive fixed costs, as well as the high
costs of training and retaining labor. So, if the car market experiences a down turn, the
company could see over capacity. If on the other hand the car market experiences an
upturn, then the company may miss out on potential sales due to under capacity that
is, it takes time to accommodate. This is a typical problem with high volume car
manufacturing.
Opportunities
 The main opportunity is that there has been an increased global market for affordable
and fuel-efficient vehicles.
 There has also been a growing market in developing countries. These regions have
grown rapidly over the past few decades creating a huge demand for automobiles.
 In the past few years, there has been an increase in demand for electronic
advancements in vehicles. Toyota can use this to gain advantage over competitors.
Lexus and Toyota now have a reputation for manufacturing environmentally friendly
vehicles. Lexus has RX 400h hybrid, and Toyota has its Prius. Both are based upon
advance technologies developed by the organization. Rocketing oil prices have seen
sales of the new hybrid vehicles increase. Toyota has also sold on its technology to
other motor manufacturers, for example Ford has bought into the technology for its
new Explorer SUV Hybrid. Such moves can only firm up Toyota's interest and
investment in hybrid R&D.
 Toyota can learn from the high-end manufacturers how to separate their various
models depending on the market they are targeting. Toyota wants to target the 'urban
youth' market. The company has launched its new Aygo, which is targeted at the
streetwise youth market and captures (or attempts to) the nature of dance and DJ
culture in a very competitive segment. The vehicle itself is a unique convertible, with
models extending at their rear! The narrow segment is notorious for it’s narrow
margins and difficulties for branding.
Threats
 The number of competitors in the global market has increased, meaning it is difficult
for Toyota to maintain the same share of the market as before. As with any car
manufacturer, Toyota faces tremendous competitive rivalry in the car market.
Competition is increasing almost daily, with new entrants coming into the market
from China, South Korea and new plants in Eastern Europe. The company is also
exposed to any movement in the price of raw materials such as rubber, steel and fuel.
The key economies in the Pacific, the US and Europe also experience slowdowns.
These economic factors are potential threats for Toyota.
 The costs of raw materials are at an all-time high. It results in a much expensive end
product leading to customers looking for cheaper alternatives elsewhere.
 Since the Yen is weaker as compared to other currencies, Toyota is facing a threat of
lower profits when the revenue is sent back to Japan.
 Toyota is often seen as an affordable and reliable brand which limits its ability to
diversify into other markets.
 Poor marketing campaigns might have led to this confusion.
 Product recalls are always a problem for vehicle manufacturers. In 2005 the company
had to recall 880,00 sports utility vehicles and pick-up trucks due to faulty front
suspension systems. Toyota did not give details of how much the recall would cost.
 The majority of affected vehicles were sold in the US, while the rest were sold in
Japan, Europe and Australia.
Product strategies
Toyota provides their customers with both tangible and intangible products ranging from
cars to warranties. A product of high quality is usually self-marketed, and this is what
makes Toyota vehicles so desirable. They have nineteen car models, which are further
broken down into different categories.
 Passenger – comprising of small, medium size, and large vehicles. Aurion, Yaris,
Camry, Tarago, Corolla and Rukus
 SUVs & 4WD– Kluger, Rav4, Parado and Landcruiser 200
 Hybrid – Prius and Camry
 Commercial – HiAce, Coaster, Landcruiser 70 and HiLux.
Toyota also offers vehicle parts such as gears and other parts. As far as the intangible
parts are considered, they offer financial services, warranties, road assistance, car
services and extended warranties. Their extended warranties have various mileage
coverage options ranging from 36,000 to 100,000 miles. Customer Interest tops the list of
priorities for Toyota, and hence, they have a research center totally dedicated to gathering
data on the consumer expectations from Toyota. By 2005, they had invested 22.2 million
in their research center. Toyota has put together the Hybrid product line to deal with the
increased prices of gas. The first Hybrid car was Toyota Prius Hybrid, which can drive up
to 48 miles to its gallon. The Hybrid model was first launched in Japan in 1997, and 2001
worldwide. Camry and Highlander were later introduced in their Hybrid product line.
Pricing strategies
Toyota became the second largest two-carmaker company in the year 2003. Due to their
innovative designs and heavy investments in promotional activities, they have enticed
customers all over the world. They built high quality vehicles and priced them
moderately.
The selling price of any product is usually determined by the cost price and the profit
taken together. Any increase in the cost of production is directly passed to the customers
in terms of selling price. However, Toyota has a different approach. Even though the
formula is same they use it slightly differently making a huge difference. Instead of
calculating the selling price, they calculate the profit. Thus, they go by selling price-cost
price=profit. They believe that it’s the market mechanisms and the consumers who
determine the selling price. They also give utmost attention to waste elimination. The
profit of the company has increased over time due to the high quality and low-cost
vehicles.
According to a report in 2007, Toyota units sold increased heavily to 2,281,000 units
worldwide. They offer vehicles of all price ranges. The price range of their cars starts
from $18,990 and goes up to $80,000 according to the model, add options and make.
They use low cost and differentiation to have a competitive edge in the automotive
industry. They differentiate their product on the basis on quality, technology and superior
design.
Promotion strategies
Toyota uses different promotional strategies to increase their sales volume. They
advertise themselves through radio, newspapers, television, yellow pages, flyers,
billboards, Internet, word of mouth and brochures. They use catchy slogans to draw
attention to their brand. It has been ‘Moving Forward’ since 2004; however, they have
come with a new tagline in the US market – “Let’s Go Places”. In 2012, they announced
Virat Kohli as their brand ambassador in India.
In addition to this they started with a cash back offer. These offers are given by the
Toyota corporate to dealer and the consumers revive it as an instant rebate. Such offers
especially attract the non-cash buyers.
Some of the promotional schemes also allow the customers to use rebate as a down
payment. To promote their new model Yaris, they come with a show called “The Block”.
By promoting shows they are able to reach a wider audience. In the show, they try to
entice customers by offering them a chance to win a new Toyota car.
Distribution strategies
Toyota always keeps its customer first and knows the importance of making its product
available to the target audience. They sell their vehicles through dealerships and sales are
made to customers by the selling staff on one-to-one basis. The sales staff in all these
dealerships work together in teams of seven or eight similar to their teams in the
assembly plants. The staff is highly skilled with not only sales but also product
information, data collection, finance insurance and order taking. Toyota focuses on the
‘pull’ strategy and make cars that the customer demands. Apart from this, Toyota has
sales representative going from door to door in Japan.
The company relies heavily on dealerships to sell their products to potential customers.
Toyota vehicles in Japan are sold through four main channels namely Toyota for Luxury
Brand of vehicles, Toyopet for medium market, Corolla for compact vehicles and Netz
for targeting customers with new values in the 21st century. Toyota has around 170
distributors in all the countries and regions worldwide that they are based in. Toyota
distribute Lexus brand vehicles through a network of approximately 170 sales outlets and
Daihatsu through approximately 2300 sales outlets. A typical dealership of Toyota is
similar to the western dealership. They try to minimize supply chain costs and keep a
reasonable service level along with having high quality products. They have organized
suppliers into different tiers where the first level suppliers work in a product development
team. The second-tier suppliers make individual parts. This enables cross sharing of the
personnel as Toyota sends their staff to the suppliers in case there is a work overload.
Digital marketing strategies
As the internet has become more accessible in the last decades, social media and digital
campaigns have gained great importance. Toyota, as an innovative company, shares
attractive content on its social networks and creates digital campaigns contributing to
enlarge its customer base by engaging more people to convert them as their customers.
Toyota’s digital marketing strategy includes the focusing on creativity and imagination,
audience engagement through social media, an eco-friendly approach, and attractive
commercial films.
- Focus on Creativity and Imagination
Embracing social media as the core of its digital marketing strategy, Toyota shares
spectacular images and videos to connect with the target audience. Currently, Toyota’s
official Facebook account has over 17.5 million followers and over 2 million people
follow its official Instagram account. Through its catchy slogans and creative posts,
Toyota aims to promote the imagination of its followers and inspire them to follow their
dreams to come true as desired. For example, the commercial titled “Start Your
Impossible”, retrieved from its official YouTube channel promoting Toyota’s social
media strategy; presenting the story of a young boy traveling around Tokyo and bringing
to life a new way to move through Toyota’s mobility products. The striking slogan of the
commercial is “When you are free to move, anything is possible”.
https://www.youtube.com/watch?v=asTFtXaX1BQ
Another example is one of the best Toyota digital campaigns announcing an art contest
about dream cars. The motto of the contest is “inspire the world with your dreams”
targeting playful and creative children to visualize the car of their dreams.
This is a way to let children’s imagination run free and inspire others to dream and draw
their own dream car. This campaign had thousands of participants from several countries
and became a trend organization for children.
- Audience Engagement through Social Media
Toyota’s social media posts follow the current trends in many respects. To increase the
trust and engagement with its customers, the company attempts to develop emotional
appeals for its vehicles through its approach focused on who to reach and how to. Rather
than only sharing the pictures of their cars and trucks, Toyota social media strategy is
based on interaction with followers by asking open-ended questions and talking about
their experiences with Toyota. The more you interact with customers, the more feedback
you get to boost your performance and customer retention. Toyota highlights the
expectations and needs of its target audience through creative social media posts making
the brand more approachable without being advertisement-like. Toyota’s Pinterest
account has over 10 million monthly viewers and helps the company improve brand
appeal through this platform. The concept of mobility through short videos repositions
the brand in the marketplace. People have an opportunity to observe the exclusive Toyota
experience and decide what they desire when they get a car or truck.
- An Eco-Friendly Approach
The latest fashion of the automobile marketplace is the concept of sustainable
development through environmentally friendly solutions. The demand for energy-
efficient, greener, and safer vehicles prompts the companies to find out the best possible
use of our natural resources and lower the operating costs. Being in a prominent position
as a global green brand, Toyota is a company with patent and acknowledged efforts in
sustainability and the use of green marketing. This is a powerful reason why most people
prefer Toyota vehicles. Toyota team emphasizes that there is only one planet with life,
Earth, and which is why Toyota developed a line of vehicles by ensuring Toyota’s
facilities optimize efficiency while minimizing waste and energy use.
- Effective Commercial Films
Toyota ads and commercials introducing new Toyota models steal the hearts of many
people with entertaining and striking scenarios. Here is an example: 2016 Toyota Prius
commercial titled “The Longest Chase” released during the Super Bowl 50. A group of
bank robbers becomes folk heroes when they succeed to escape from the police officers
thanks to Toyota Prius as a getaway car. Then, police officers understand that the only
way to catch the robbers is driving Toyota Prius again. The main theme of the
commercial is that Toyota has no competitors to be compared with.
With the right strategies on social media and commercials, Toyota has a prominent place
in the market. By operating creative content inspiring people, engaging more people
through social media, being an eco-friendly brand, and attractive commercials, Toyota
will definitely continue being one of the most preferred automotive companies.

Sustainability practices
Toyota aims at globally "establishing a low-carbon society," "establishing a recycling-
based society," and "environmental protection and establishing a society in harmony with
nature" to contribute to sustainable growth of society and the planet based on the Fifth
Toyota Environmental Action Plan. To realize those aims, we reduce the environmental
impact at all stages of vehicle life cycle from development and design, procurement,
production and logistics, sales to waste and recycling, and promote environmental
management.
In order to contribute to the sustainable development of society and the earth, Toyota is
committed to proactively making social contributions in areas such as environmental
education, support for environmental action, conservation of biological diversity, and
afforestation. In its pursuit of being a company that contributes to measures designed to
achieve global regeneration, Toyota has been conducting the Grant Program to support
environmental activities implemented by NPOs and other non-profit private groups under
the theme of "Environmental Technology and Human Resource Development
Contributing to Environmental Revitalization and Conservation."
Toyota uses its manufacturing expertise to hold programs that promote the advancement
of science and technology and supports the implementation of educational programs
worldwide that will develop future leaders.
In order for automobiles to develop as a means of transportation that continue to provide
the convenience of mobility in the future, it is important to minimize the negative effects
of environmental impact, traffic accidents and traffic congestion. With the aim of
achieving an affluent mobile society, Toyota has for some time positioned the response to
this social task as an extremely important issue and has been actively involved in
addressing it.
In terms of safety, Toyota is aiming for the complete elimination of traffic deaths and
injuries and is advancing initiatives for traffic safety by viewing people, vehicles and the
traffic environment as an integrated whole. In addition to making safe vehicles, they are
taking a comprehensive approach with initiatives such as educating people, including
drivers and pedestrians and making proposals toward the creation of a safe traffic
environment.

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