Translated from Russian to English - www.onlinedoctranslator.

com

Government of the Russian Federation

State educational budgetary institution

higher professional education

"Research University - Higher School of Economics"

Faculty of World Economy and World Politics

Department of International Business

FINAL QUALIFICATION WORK

On the topic:
Features of the marketing strategy of Toyota in the markets of
European countries

Group student #467

Berkovich Antonina Vadimovna

scientific adviser
Medvedev Denis Anatolievich
Senior Lecturer
Department of International Business

Reviewer
Karpova Natalia Stanislavovna
Associate Professor of the Department
International Business, Doctor of
Economics
 2

Moscow 2013
 3

Table of
contents………………………………………………………………………...2
Introduction…………………………………………………………………………
...…3
Chapter 1.International marketing strategies of the enterprise………6
1.1 The essence of the concept of marketing strategy and its
components…………..6
1.2 The essence of the concept of international marketing strategy and its
types……………………………………………………………………………
….9
Chapter 2Marketing strategies of automotive industry
enterprises…………………………………………………………………………..
13
2.1 The main trends in the development of the automotive market in
Europe………....13
2.2 Growth strategies of Japanese and European automakers…………17
2.3 Distinctive features and secrets of the success of the marketing behavior of
Japanese automakers…………………………………………………20
Chapter 3Features of the marketing strategy of Toyota in the European
markets………………………………………………………………………
…………………………………………………………………………………
…………………………………………………………………………………
…………………………………………………………………………………
……………………………………….
3.1 General economic performance of Toyota…………………27
3.2 SWOT analysis of Toyota Motor Europe…………………………….31
3.3 Marketing activities of Toyota in
Europe…………………………………………………………………………..3
8
 4

3.4 Recommendations for Toyota Capacity Development on the European

Continent………………………………………………………………………4
1

Conclusion…………………………………………………………………………4
7
List of used literature………………………………………..48
Applications………………………………………………………………………51

Introduction
The relevance of research.Today, transnational corporations are the
foundation of the economy of most developed countries, the leading force in their
development and efficiency improvement. One of the central roles in the world
economy and, in particular, in the economy of the European Union is played by the
automotive industry. A distinctive feature of the EU automotive market is, first of
all, a high degree of local competition between manufacturers, led by the largest
automotive giants Volkswagen AG and PSA (manufacturer of Peugeot and
Citroёn). Japanese corporations, which once conquered the markets of Asia and
North America, are now very cautiously making their way to the markets of
Europe. Meanwhile, Japan ranks second in the world in terms of the importance of
the automotive industry in the national economy (53%), second only to the United
States (89%).1Toyota Motor Corporation (hereinafter referred to as Toyota) is not
only the most successful automaker in its homeland, but also holds the position of
the world's largest automobile concern for the fifth year in a row. 2For more than 80

1
Konakhina, N.V. Integration trends in the automotive industry // Proceedings of the XII International Scientific and
Practical Conference. St. Petersburg: Publishing house of Politekhn. University, 2007. S. 200.
2
Dataofficial website of the business newspaper The Wall Street Journal http://online.wsj.com/
 5

years, the company has been successfully operating in 160 countries around the
world.3However, due to the relatively late entry into European markets, the
European division of Toyota (Toyota Motor Europe, TME) is still considered by
many experts as the "Achilles heel" of the corporation. It is this reason that
prompted the author to choose TME as the object of analysis. Overcoming the
consequences of recent geographic catastrophes, as well as the impact of the global
recession, the company is not satisfied with the market share allotted to it by local
competitors. The fact that the company has a strategic goal of expanding in the
region (especially in connection with the decision to enter the market through a
joint venture with one of its main competitors PSA) leads the author to dedicate
this paper to a critical analysis of the main strategic challenges and benefits
associated with Toyota's penetration into European markets. In view of the fact
Nature of research:practical, since the primary purpose of the study is to
study the current marketing strategy and specific marketing activities implemented
by Toyota Corporation in the European region.
The purpose of the final qualifying work isanalysis of the foundations for
the formation of the marketing strategy of Toyota Motor Europe Corporation and
the development of strategic recommendations for TME for the future.

Objectives of the course work:

1. To study the basics of the concepts of marketing strategy and the
international marketing strategy of an enterprise.
2. To study the main directions of development of the automotive market
in the European region.
3. Examine in detail the strengths, weaknesses, opportunities and
vulnerabilities of TME through a SWOT analysis.
4. Get acquainted with a number of marketing activities undertaken by
the company and identify the features of its marketing strategy;

3
Data from the official website of Toyota Motor Corporation http://www.toyota-global.com
 6

5. Formulate recommendations for further development in the region,

taking into account the identified opportunities and threats.
 7

Object of study:Toyota car company

Subject of study:marketing strategy of Toyota in European markets.
Theoretical and methodological basisfinal qualifying work served as the
works of economists on the basics of formation of the marketing strategy of the
automotive industry.
Practical significanceThe study consists in a detailed and consistent
approach to the study of Toyota's marketing strategy in the European region and
the development of specific recommended directions for its development.
Hypothesis:Despite the fact that Toyota Corporation faces serious
competition from experienced European automakers, the company is able to
profitably realize its potential in the European region thanks to the competent
formation of a marketing strategy.

1. International marketing strategies of the enterprise

1.1 The essence of the concept of marketing strategy and its components
 8

In the academic marketing literature, there is a common understanding that

all international companies, in an explicit or implicit form, perform the work of
developing strategic decisions at four known levels: 1) the company as a whole
(corporate strategy); 2) its divisions (division strategy); 3) types of business
(business strategy); 4) product groups (product/functional strategy). 4The decisive
role in strategic planning at any level is ultimately played by the marketing
strategy. It is important to note that this marketing strategy is an element of the
overall corporate strategy and determines how the company should use its limited
resources to achieve its strategic goals (such as maintaining and increasing the
share of the existing market, achieving leadership in a certain segment, entering
new markets, maximizing profit in the long run, etc.). Therefore, the marketing
strategy should be built in the same direction as the overall competitive strategy of
the enterprise and should not contradict it.5
Under the marketing strategy of an enterprise today it is customary to
understand a set of interrelated strategies at the operational level (decisions and
activities), through which the company seeks to achieve its marketing goals and
meet consumer expectations.6Traditionally, the process of developing a company's
marketing strategy includes the following steps:
 Analysis of the current state of the market;
 Analysis of competitors' policies and determination of the company's
competitiveness;
 Setting the goals of the marketing strategy;
 Market segmentation and identification of the target audience;
 Development of a positioning strategy;
 Preliminary economic assessment and methods for monitoring results.
Some stages of this plan require additional comments. As part of the formation
of a marketing strategy, managers will have to solve the issues of market

4
Kotler, F. Marketing management. SPb. Peter, 2009. P.156.
5
O'Shaughnessy, J. Competitive Marketing: A Strategic Approach. SPb. Peter, 2002. S. 57.
6
Stanley F. Marketing's Contribution to the Implementation of Business Strategy // Strategic Management Journal.
2007. No.11. P.1056.
 9

segmentation and identifying the target audience, develop a positioning strategy

based on the features of the product itself, its cost, possible sales channels
(distribution), as well as direct promotional activities.
The decision on the target audience (targeting) of the product is based on
extensive marketing research and the process following itmarket segmentation.
The main focus of market targeting is a commitment to meeting the needs of
specific consumer groups. The goal of the company in this case is the awareness of
target groups about the properties of the product that are of particular value to them
(value proposition), which can be achieved through the use of various elements of
the marketing mix.7
In classical terminology, the concept of the marketing mix includes 4 main
elements:
 Product;
 Product cost;
 Place where the product is offered;
 Product promotion policy.
The most important decision made by the company within the framework of the
first component is the scope of the product line. Should the range of offered
products be limited concentrated, or can cover models of different price categories
and consumer characteristics, include complementary products.
When forming a pricing policy, an enterprise is forced to take into account
many factors that can be divided into the following groups:
 Internal factors (corporate and marketing goals of the company, the
volume of the product line, the stage of the product life cycle, the
availability of substitute products and the degree of product uniqueness,
the availability of production resources, shipping costs, etc.);
 Market factors (competitive goals of the enterprise, elasticity of demand
for goods, the need to adapt the product, market structure and degree of

7
Kotler, F. Decree op. C.166.
 10

competition, features of distribution channels and, finally, the

expectations of the consumer himself);
 External factors (features of legislative regulation, fluctuations in
exchange rates, inflation rate, etc.).8
As part of the formation of a product marketing policy, a company, as a rule,
chooses between the so-called selective and intensive distribution systems. In the
event that the nature of the goods implies after-sales service or simply requires
serious expenses for storage and organization of presentation to the consumer,
preference is given to a selective sales system in individual salons (for example,
cars). Relatively less expensive and easy-to-maintain goods are sold through an
intensive marketing system (for example, household goods).
As for the company's promotional policy, experts identify two main areas:
advertising and personal sales.9The element of advertising plays a decisive role in
shaping the overall awareness of the client about the brand, generating interest in
the product. Personal selling becomes important when the consumer has expressed
a desire to get to know the product in more detail (which is especially important for
industries with high-tech and simply expensive products).

1.2 The essence of the concept of international marketing strategy and

its types
Under the international marketing strategy, experts propose to understand the
concept of the company's long-term goals and objectives, subordinate to the
company's mission, formed in the form of a set of marketing programs, which are
based on the offer of the company's goods in one or more foreign markets. An
international marketing strategy is a form of an enterprise's marketing strategy and
characterizes the goals of its global development.

8
Mathur, UC International marketing management. Los Angeles [etc.] SAGE Publications, 2008.p.123.
9
Kotler, F. Decree op. C.261.
 11

A review of a wide range of professional literature allows the author to identify

three different approaches to the classification of international marketing
strategies:
 standardization or adaptation;
 concentration or dispersion;
 integration or independence.10
The most traditional characteristic is the division of international marketing
strategies into standardization and adaptation. From this point of view, marketing
strategies are classified according to the degree of standardization of one or more
elements of the marketing mix (i.e., product design, price, promotional methods).
Thus, the standardization strategy is characterized, first of all, by the use of
homogeneous elements of the marketing mix in different markets. An adaptation
strategy, on the contrary, involves “linking” elements of the marketing mix with
the characteristics of each national market.11
The second approach to the classification of international marketing strategies is
the principle of concentration / dispersion. The approach to the division of
strategies from this side is most strongly based on the geographical presence of the
company in the region. The fundamental principle of this approach is the
following: having formed an optimal policy for the location of branches, the
company can achieve the maximum return on the realization of its competitive
advantages or emerging synergies.12In accordance with this principle, the strategy
of consolidation in a certain geographical region and the opposite strategy of
dispersal are distinguished.
The last approach discussed is the division of international marketing strategies
into integration and independent ones. The fundamental criterion here is the
attitude of an international corporation to its branches in different regions as
separate (independent) profit generating centers or as accountable structural units

10
Lim L. Development of archetypes of international marketing strategy // Journal of International Business Studies.
2006. No. 37. P.499.
11
Collect. author of Strategic international marketing. New York Palgrave Macmillan, 2012. p.133.
12
Bradley, F. International marketing strategy. Pearson Education, 2005. P.89.
 12

of a global company (integration model).13As part of this division, experts pay

attention to how closely the activities of various divisions of a global company are
interrelated, as well as to the degree of readiness to use the positive financial
results of one center to support and develop another.
Each of these approaches, of course, reflects the most important aspects of the
concept of international marketing strategy. Without denying the value of these
approaches, the author considers it necessary to point out the need to unify these
strategies. It would be advisable to consider international marketing strategies not
in a single, but in a multidimensional context, since in reality the strategies are a
symbiosis of the characteristics of each of the listed principles. A strategy that, to a
certain extent, has the parameters of standardization, concentration and integration
and should be considered a global marketing strategy for an international
enterprise.
According to the research of American experts, there are three well-established
types of international marketing strategies in the economy, which, in turn, are a
mixture of the above theoretical approaches.14
 Type Acharacterized by the most standardized offer policy.
Companies in this group demonstrate a commitment to standardizing
product creation, advertising patterns, and pricing policies. Group A
companies adhere to the principle of maximum concentration in
matters of distribution. Integration processes are particularly
noticeable here, management decisions are made through mutual
consultations of several departments. In view of this conservatism, we
will call this strategy “global marketing”.
 Type B companies still adhere to the standardization of product
distribution channels, however, to a moderate extent, they still adapt

13
Verbeke, A. International business strategy. Cambridge [etc.] Cambridge University Press, 2009. p.81.

14
Lim L. Op.Cit. P.508
For reference: Hierarchical cluster analysis was carried out according to the Ward method on the basis of statistical
data of 51 companies in various industries in order to group them according to the principle of homogeneity of
marketing behavior.
 13

their promotional policy and product design to each region of

presence. The issues of product creation and distribution are decided
by each production unit independently (independence policy).
 Type B companies tend to be more flexible and willing to tailor their
product creation process, advertising campaigns, and distribution
channels to suit a particular market. They are characterized by a policy
of dispersal and integration decision-making. We will call such a
policy a “strategy of tactical coordination”.
The only automaker included in the sample of the analysis was the Japanese
concern Toyota Motor Corporation. The authors of the study refer the company to
group B, which we will try to verify later by conducting our own study.
So, in this part of the analysis, the author considered the main known
approaches to the classification of international marketing strategies of an
enterprise and proposed to group them according to the principle of homogeneity
of marketing behavior. Based on the conclusions of experts, the author classifies
the object of this study (Toyota) as a class of companies pursuing a global strategy
for product standardization, but modifying the promotional policy for a specific
region of presence.
 14

2. Marketing strategies of automotive companies

2.1 The main trends in the development of the automotive market in

Europe
It must be said that, according to all the above indicators, expansion in the
European markets is both a difficult and promising undertaking for Japanese
companies. According to the charts below, Europe accounts for the largest share
(nearly 30%) of global passenger car production. Moreover, having survived the
recession of 2008-2010, production volumes in Europe are gaining momentum
again.15
Diagram #1.
World production of passenger cars, 2011

ЕС
4% 3% 1% 4% Китай
4%
26%
Япония
5%
НАФТА
7% Южная Корея
10% Индия
24% Бразилия
12%
Азия (прочее)
Россия
Европа (прочее)
Прочее

Source:
data from the official website of the European Association of Automobile
Manufacturershttp://www.acea.be/

15
Data from the official website of the European Association of Automobile Manufacturershttp://www.acea.be/
 15

Schedule #1.
Dynamics of production of passenger cars in the countries of the European
Union (thousand production units), 1990-2011

Source: data from the official website of the European Association of Automobile
Manufacturershttp://www.acea.be/
For reference: the dark color indicates the total production volumes in the young EU countries
(Czech Republic, Hungary, Poland, Romania, Slovenia, Slovakia).

In this part of the study, the author seeks to understand how Japanese
automakers balance between the need to adapt to the national characteristics of the
countries of their presence (i.e., differences in consumer preferences, market
structure, distribution channels, etc.) and forced integration (i.e., the need to
globally coordinate strategies to reduce costs and optimize investment).
The purpose of this part of the study is to test the differences in the strategies
used by Japanese automakers and their European competitors in the markets of
Western Europe. The author seeks to identify the relationship between the type of
marketing strategy and the occupied market share, for which he developed a
certain system for assessing the integration and adaptation of the marketing mix of
car manufacturers in the region. Within this framework, we will look at the three
main components of the marketing mix: product cost, advertising spend, and the
number of product models offered and how they are exposed.
Experts say that there are five main factors that force international companies to
adapt their strategies within each region: differences in consumer preferences,
differences in distribution channels, the number of substitute products, market
structure and regulatory features.16All these indicators take place in the considered

16
Grein A. Integration and Responsiveness: Marketing Strategies of Japanese and European Automobile
Manufacturers // Journal of International Marketing. 2009. No. 2. P.23.
 16

automotive industry, however, the author believes that it is the structure of the
market that has the greatest influence on marketing decisions. Adaptation to
consumer preferences is relegated to the background due to the need to achieve
economies of scale in the production of expensive durable goods (cars). To achieve
the overall productivity of the manufacturing process, companies rely on the
international commercial success of the product and cannot afford to tailor it to
each specific market. Moreover, the cost of bringing an existing product to a new
market is much lower than the cost of developing a new model to meet the
changing preferences of existing customers.17
In view of the foregoing, the author identifies three most relevant indicators that
have a significant impact on the level of prices set, the formation of advertising
costs and the range of models offered on the market:
 market concentration;
 market share of the company;
 market growth rate.
As for the need for global industrial integration, experts identify such motivational
factors as technological intensity, lower production costs, access to energy
resources and the need to address global environmental problems.18The last factor
in the European region is receiving more and more attention every year. Under
European law, automakers are required to reduce the average CO2 emissions of
new cars to 130g/km by 2015. In 2011, the average emissions were 141.5g/km,
already down from 144.2g/km in 2010.19The concept of environmentally friendly
cars is actively supported by the European population itself. As you can see from
the graph below, the demand for such cars is growing annually by 10% or more.

Schedule #2.
Demand in EU countries for cars emitting less than 120g. CO2/km (production
units), 1995-2011

17
Kotabe, M. Global marketing management. John Wiley & Sons (Asia), 2011. C117.
18
Grein A. Op.Cit. P.24.
19
Data from the official website of the electronic newspaper Marketing Week http://www.marketingweek.co.uk
 17

Source: data from the official website of the European Association of Automobile
Manufacturershttp://www.acea.be/

The author draws attention to the fact that the fleet of cars available to
Europeans has undergone a serious regrouping over the past ten years. As the
graph below shows, the most environmentally friendly car models are already in
use by a third of the population, although back in the early 2000s the concept was
not at all popular (about 8% of the car fleet).20

Schedule #3.
Number of cars in use in the EU countries by the amount of CO2 emitted/km,
%, 2011

Source: data from the official website of the European Association of Automobile
Manufacturershttp://www.acea.be/

20
Data from the official website of the European Association of Automobile Manufacturershttp://www.acea.be/
 18

2.2 Growth strategies of Japanese and European automakers

In view of the prospects for expanding the activities of Japanese companies in

the European market, the author considers it necessary to identify two alternative
strategies for international growth in the automotive industry. 21
One of the strategies (S1) is to consistently concentrate the company's activity
in moderate volumes and only in the most interesting markets. Then, once firmly
rooted in these markets, the company can move into less profitable regions. This
strategy is called the strategy of “growing geographic diversification”.
Another growth strategy, alternative to the first one, is to simultaneously cover
the maximum number of potential markets. Large-scale entry into the markets is
replaced by a period of consolidation of activity, during which the regions least
profitable for business are leaving. This strategy is called the strategy of "relative
concentration" in foreign markets.
In order to assess which strategies were used and are being used by various
automakers at the time of the development of new markets, the author relies on the
results of research by French experts conducted using the calculation of the
Herfindahl-Hirschman index.22
The index value can be interpreted in different ways. In this study of geographic
diversification of companies, we will define the Herfendahl-Hirschmann Index (H)
as the sum of the squares of a company's percentage of performance in each region
of presence.
n
H i ,t   pi2,t ,k ,
k 1

where Pi,t,kis the number of cars produced by company i in year t in country k, expressed as a percentage
of the total number of cars produced in foreign markets by company i.

The diversification minimum (concentration maximum) is reached at the value of

H=1, which means that all foreign projects of the corporation are concentrated in

21
Moulins J. Strategies for International Growth in the Automobile Industry // Journal of International Business.
2005. No. 11. P. 34.
22
Albaum, G. International marketing and export management. Pearson Education, 2011. P.97.
 19

the territory of one country (region). Theoretically, companies pursuing the first
expansion strategy will show negative changes in the concentration index H; for
companies following the S2 strategy, the index value, on the contrary, will
increase.23The table below shows the values of the concentration index for the
world's largest automakers in the period 1992-2005. In this study, which aims to
analyze Toyota's marketing strategy, the period covered is very revealing. As will
become clear from the following practical analysis, most of the European divisions
of Toyota Corporation were launched at this time.

Table number 1.
Values of the index of geographical concentration of production units of
automakers, 1992-2005.
Strategy Company name Concentration index Average annual
1992 2005 change in
concentration index
Peugeot 0.33 0.26 -2%
Citroën 0.41 0.30 -3%
bmw 0.62 0.37 -4%
Toyota 0.22 0.18 -one%
Nissan 0.78 0.21 -12%
Geographic
diversification Mazda 0.95 0.53 -7%
strategy
Honda 0.95 0.50 -24%
(S1)
Mitsubishi 0.50 0.31 -nine%
Ford Corp. 0.25 0.17 -3%
General Motors 0.27 0.25 -0.5%
Chrysler group 0.23 0.22 -0.4%

Renault 0.21 0.24 +1%

Geographic Volkswagen AG 0.27 0.37 +3%

concentration Mercedes 0.20 0.23 +1%
strategy
(S2) Alfa Romeo 0.36 0.36 +0%
fiat 0.24 0.28 +2%
Volvo 0.39 0.59 +5%

23
Moulins J. Op.Cit. P.37.
 20

Source: Moulins J. Strategies for International Growth in the Automobile Industry // Journal of
International Business. 2005. No. 11. P.37.

It is easy to see that all Japanese corporations in this classification fall into the
S1 group, pursuing a strategy of "growing geographic diversification." The
negative value of the concentration index confirms that, having conquered certain
markets, companies are gradually dispersing their production units in new regions.
Throughout the period under review, most of the group's companies showed a
moderate pace of increasing foreign production. This is primarily due to the fact
that their export operations are largely supported by national production. Toyota,
for example, produces 40% of its vehicles in Japan (or 60% at the end of the 2005
study).24

2.3 Distinctive features and success secrets of the marketing behavior of

Japanese automakers
The analysis carried out allows the author to identify several characteristics that
distinguish Japanese automakers. First of all, the Japanese have become famous for
their willingness to sacrifice profits for the sake of stable growth and increasing
market share. They implement the so-called “competitive cycle of the winner”:
they strive to grow at a rate exceeding the growth rates of competitors, stimulating
this growth by increasing investment; investments are directed to the improvement
of existing and the development of new products, the expansion of production
bases, advertising, and the search for opportunities to reduce the cost of
goods.25The increase in investment has a positive effect on the growth rates of
Japanese companies, which provides an opportunity to reduce prices (due to
economies of scale). Profits generated by making products available to more
consumers are reinvested and thus the circle of continuous development is

24
Data from the official website of Toyota Motor Corporationhttp://www.toyota-global.com. 2011
25
Rugman, A. M. Analysis of multinational strategic management. Cheltenham; Northampton Edward Elgar,
2005.p.261.
 21

completed. In this context, it is expedient for reference to provide data on the costs
of research and development of the world's leading automakers.

Table number 2.

Expenses on R & D of the largest automotive TNCs (billion dollars),

2010-2012

Company A 2010 2011 2012

country
one Volkswagen AG Germany 6.9 7.2 8.9
2 Toyota Motor Japan 7.3 7.6 7.8
3 General Motors USA 6.9 8.1 7.4
4 Ford motor USA 5.5 5.3 5.0
five Nissan Japan 4.0 4.3 4.8
6 Honda motor Japan 3.8 3.9 4.2
7 PSA Peugeot Citroën26 France 2.5 2.6 2.8

Source: Global R&D Report 2012. P.16; data of Schonfield & Associates, R&D Magazine.

As can be seen from the data in the table, Japanese automakers are constantly
increasing their investment in research and development, and are among the world
leaders in this statistics. The largest European competitors of Japanese corporations
and, first of all, the most ambitious of them, Toyota Motor, are the automotive
giants Volkswagen AG andPSA Peugeot Citroën. This is confirmed by other
statistical indicators shown in Diagram 1.
Diagram #2. Volkswagen
PSA
2% 2% 2% 20,9%
Share of 2% 2% Ford
2%
5% GM
Renault
automotive 5% Fiat
12,6%
Toyota
companies 6% BMW in
Daimler
European 8% Honda
Nissan
26
Hyundai
Provided for reference for further analysis of the joint venture between PSA10,5%
and Toyota Motor Europe
Suzuki
9%
Kia
Mazda
11%
 22

markets, 2012

A source:Data from the annual report of Volkswagen AG “Driving ideas”, 2012

Interestingly, Japanese corporationscations occupy leading positions in the

ranking of the largest advertisers. Toyota Motor occupies the fifth position,
spending $3.2 billion in 2012. for various advertising campaigns. The company is
only ahead of the American automaker General Motors, which spent $3.6 billion.
The leaders are followed by Ford Motor with an indicator of 2.4 billion dollars,
Volkswagen AG, which spent 2.3 billion dollars. and the Japanese concerns Honda
Motor and Nissan Motor, with expenses of $2.2 billion. and 1.7 billion dollars.
respectively. A more detailed picture of the study will help to draw up a statistical
table in Appendix 1.
Statistics confirm that Japanese automakers rely on the recognition of their
brands, as well as the quality of their products. The Japanese conquer new markets
with relatively low prices and the highest quality. Affordable pricing is made
possible by the fact that the markets of different countries are not considered by
companies as separate centers of profit generation, but, on the contrary, as an
opportunity to achieve global efficiency. Their priority is technological innovation,
product standardization, new model development, as well as business expansion
and market share.27

27
Porter ME Gompetition in Global Industries: A Conceptual Framework, in Competition in Global Industries, ME
Porter, ed. Boston: Harvard Business School Press. 1990. P30.
 23

Focusing on the possibility of lower prices, Japanese automakers pay

relatively little attention to product differentiation or product line expansion. 28This
is clearly in line with the global standardization strategy, where adaptation to the
characteristics of specific markets is sacrificed for a loyal pricing policy. The
model range available to European consumers is still limited by the need to carry
out deliveries over long distances, since the production capacities of European
factories are not yet able to fully satisfy demand. For example, according to the
annual report of Toyota Motor Corporation (see Table 2), the number of
manufacturing enterprises of the company in the region is almost 4 times less than
the number of distributors of cars of this brand. The reverse situation is observed
only in North America, where the company was able to successfully enter the
market with economical cars back in the early 1970s (during the first energy
crisis), and in its native Asia.29

Table number 3.

Distribution of manufacturing plants and distributors of Toyota in the regions of

the world, 2012

Number of manufacturing Number of

Region enterprises distributors
North America eleven five
Latin America 4 42
Europe eight thirty
Africa 3 45
Asia (except Japan) 22 16
Oceania one fourteen
Near East one 16
Total (foreign trade) fifty 168

Source: Toyota Motor Corporation Annual Report, “Worldwide Operations”, 2012.

Experts note another secret of the success of Japanese automobile concerns.

They are more able to combine integration and specialization (adaptation)

28
Grein A. Op.Cit.. P.25.
29
Toyota Motor Corporation official website http://www.toyota-global.com
 24

strategies than European competitors by creating a number of models on the same

technical platform. The famous Japanese system of lean production (lean
production techniques) gives companies the opportunity to produce more models
on the basis of one production center. Following the standardization strategy in this
case is to generate demand for a universal product that nevertheless meets the basic
requirements of a particular market. Compliance with the requirements of the
European market is achieved here through the continuous improvement of existing
models.So, for example, the Toyota concern improves the characteristics of its
product every two years, and every four years it turns a car model into a new one.
By adhering to this development strategy, Toyota has been successful in product
lifecycle management (introducing the product and keeping it in the growing stage,
preventing it from maturing and declining).

Schedule No. 4.
Import of cars to European countries (manufactured units), 2011

Source: data from the official website of the European Association of Automobile
Manufacturershttp://www.acea.be/
As can be seen from the graph above, Japan is today the leading importer of
passenger cars in the countries of the European region. Illogical, at first glance,
seems to be the presence of Turkey in the top three.30The fact is that today six
automotive giants (Toyota, Honda, Hyundai, Fiat, Ford and Renault) have
launched their factories in the country for the manufacture of individual models of
30
Collect. author of Handbook of research in international marketing. Cheltenham; Northampton Edward Elgar,
2011.p.319.
 25

the product line, and some (Audi, Mercedes) produce component parts for to their
cars.31
Speaking about the structure of Japanese imports to the territory of the
European region, it is worth noting that the nature of demand is not uniform
everywhere.32According to the statistics table of the Japan Automobile
Association, Germany and the United Kingdom are the largest importers of cars
from Japan. However, these imports are mostly standard-size cars. Mini cars are
nowhere as popular as in France. In 2011, 6,815 Japanese-made mini-cars were
delivered to the country (the rest of the demand is met by the production of
factories in the EU). The nearest, 10 times inferior to the French, the value of the
indicator was demonstrated by Germany. Simply compact mid-sized cars are also
popular in Germany, Great Britain, Italy and Austria. The largest importer of
Japanese cars in the European region is Russia. In 2011, 352,689 Japanese cars
were delivered to our country,33The general nature of European demand for
passenger cars of different sizes is shown in the graph below.

Schedule number 5.
Sales of cars by category in the territory of the European Union
(manufactured units), 1994-2011

31
Data from the official website of the electronic newspaper Marketing Week http://www.marketingweek.co.uk
32
See Appendix 3.
33
Data from the official website of the Japan Automobile Manufacturers Associationhttp://www.jama.org/
 26

Source: data from the official website of the European Association of Automobile
Manufacturershttp://www.acea.be/

According to the graph, the demand for small cars (Class A and B), which is the
crown jewel of the Toyota range, accounted for 34% of the total number of cars
sold in Europe in 2011. This suggests that small cars are on average 1.5 times more
popular than their larger C class counterparts.34
Summarizing what has been said in this part of the study, the author concludes
that Japanese automakers win over their consumers, first of all, with a moderate
pricing policy (which becomes possible thanks to a lean production strategy) and
first-class quality of their cars. Following the global strategy of model
standardization, the companies, nevertheless, are sensitive to the peculiarities of
the European market and are constantly improving the classic models, adapting
them to the main market trends.
In this part of the study, we also analyzed the main trends in the development of
the European automotive market, and identified a trend in the growth of demand
for environmentally friendly cars.

3. Features of the marketing strategy of Toyota in the markets of

European countries

3.1 Toyota General Economic Performance

34
Data from the official website of the European Association of Automobile Manufacturershttp://www.acea.be/
 27

Numerous enterprises with great potential have failed due to their indecision
to follow an expansion strategy. The numerous risks associated with expanding
into new geographic territories (among them: lack of awareness of the prevailing
customer preferences, the nature of competition, traditional forms of distribution in
the market) make this fear very justified. However, there are certain cases where
geographic expansion strategies are not just a possibility, but a necessity. This
statement applies, first of all, to those industries where multinational entities
operate. An illustrative example of this scenario is Toyota's decision to expand its
presence on the European continent.
Today Toyota operates in 160 countries and is once again recognized as the
world's largest automaker. In total, the company owns 50 production units outside
of Japan. The table below shows how Toyota plants are distributed across the
European continent, and which car models are produced in the regions.

Table number 4.
Toyota production units in Europe, 2012
A country Company name and founding Main products Number of
year employees
Czech Republic Toyota Peugeot Citroën Aygo 3.030
Automobile Czech, 2005
France Toyota Motor Manufacturing Yaris (Vitz) 4,430
France, 2001
Poland Toyota Motor Manufacturing Engines and transmissions
Poland, 2002 1,900

Europe Toyota Motor Industries Engines 880

Poland, 2005
Portugal Toyota Caetano Portugal, 1968 Dyna 214
 28

Turkey Toyota Motor Manufacturing Verso, Auris 2.563

Turkey Inc., 1994
Great Britain Toyota Motor Manufacturing Avensis, Auris, Auris Hybrid 3.748
(UK) Ltd., 1992
Engines
Russia Limited Liability Company Camry 1.301
Toyota Motor Manufacturing
Russia, 2007
Source: Data from the official website of Toyota Motor Corporationhttp://www.toyota-global.com

When segmenting the market and identifying the target audience, Toyota is
guided by its famous philosophy of “the right car in the right place”. Considering
the market of each country separately, the company, nevertheless, identifies several
global centers of concentration of its activity. The US market is an absolute
priority for the company. This is due to the fact that the United States consumes
25% of all manufactured products, that is, almost the same as in Japan itself.35
The European market remains the most unknown for the company and, at
the same time, the most promising. As shown in the diagram below, the company
sells only 11% of its total production in Europe.

Diagram #3.
Toyota car sales by region, 2012

Япония

18% Северная
28% Америка
Европа
18%
Азия

11% 25% Прочее

Source:
Toyota Motor Corporation Annual Report, “Worldwide Operations”, 2012.

35
Toyota Motor Corporation official website datahttp://www.toyota-global.com
 29

Toyota has developed its market strategy at different levels - global level,
regional level, and national level based on customer needs assessment. One of the
key factors for designing a Toyota segmentation, targeting and positioning strategy
is always an analysis of the state of the market, the economy, the purchasing power
of the target audience and its consumer preferences.
The fundamental elements and at the same time the benchmarks of Toyota
marketing planning, which allowed the company to win the trust of customers, are
the following indicators:36
 Environmentally friendly product
 Product safety
 Low operating cost product
 Quality after-sales service

In 2010, the company set itself the ambitious goal of growing 15% of its global
market share by 2015.37In this regard, the European market is of particular strategic
importance. Sales in Europe are quite sensitive to the external circumstances of the
economic environment and almost doubled before falling to the level of 9 years
ago. These fluctuations are shown in the graph below.
Schedule number 6.
Sales and production volumes of Toyota cars in European countries, 2003-
2012

36
Bhandari S. Analysis of Toyota Marketing Strategy// Journal of International Marketing. 2008. No. 6. P.41.
37
Data from the official website of the Reuters news agencyhttp://www.reuters.com/
 30

1400

1200

Количество, тыс.ед.
1000

800
Производство
600
Продажи
400

200

Source: Data from the official website of Toyota Motor Corporationhttp://www.toyota-

global.com

The global economic crisis that began in 2008 hit Toyota hard. As a result,
the company is focusing its marketing efforts on economical vehicles and
aggressively marketing small cars such as the Aygo, the new Auris hybrid, the
Yaris, the iQ and others.

3.2 Toyota Motor Europe SWOT Analysis

In order to analyze in more detail the features of the company's activities in

the markets of European countries and form recommendatory conclusions on the
directions for further work, the author considers it appropriate to conduct a SWOT
analysis of Toyota Motor Europe. SWOT analysis is one of the most important
stages of marketing planning and consists inidentifying the strengths and
weaknesses of the company, potential external threats and opportunities for the
company and their assessment relative to strategically important
competitors.SWOT analysis can be carried out both for the activities of the
company as a whole, and for certain products, market segments, geographical
 31

areas.SWOT-analysis allows you to determine the reasons for the effective or

inefficient work of the company in the market and is a concise analysis of
marketing information, on the basis of which a conclusion is made about the
direction in which the organization should develop its business. The company's
subsequent marketing strategy should be designed to maximize its strengths, as
well as emerging market opportunities, and compensate for weaknesses while
avoiding the negative impact of threats.

The table below is a summary of the author's findings from a SWOT

analysis of Toyota Motor Europe.38

Table number 5.

SWOT analysis of Toyota Motor Europe

Strengths Weaknesses

 An established brand whose name  Lack of experience in the

is synonymous with the highest
quality and continuous
improvement;
 Toyota Production System (TPS):
- First-class culture of personnel
management, with the ability to
critically assess the factors
necessary to maintain excellence;
- Complete elimination of losses
in production thanks to the Just-
In-Time (JIT) system,
European segment of mini-cars
compared to the experience of
aggressive local competitors;
 Lack of experience in working
with consumers of generation X
(born 1965-1980), who have
established preferences within the
framework of the products of
European automakers;
 Concentration of the main
production capacities in Japan

38
Compiled by the author.
 32

- First-class internal information and the USA, which hinders the

system and dealer coordination effect of “economy of scale” in
system; European countries;
 Numerous capital reserves that
provide the company with the
funds to invest in R&D, as well as
the ability to finance a strategy
for expanding the business into
new markets with high potential;
 Competitive advantage, which
consists in innovative
technological development (the
first automaker in the world to
launch mass production of cars
with a hybrid engine);
 Moderate pricing policy;
 Creativity of advertising
campaigns and other aspects of
the marketing strategy;
 Social responsibility;
 Contribution to environmental
protection;
Opportunities Threats

 Tough competition in the

 The most successful opportunity
strategically important European
to increase market share for small car market;
Toyota is a decline in the
 Aging population in Europe;
production of European
 Decreased demand for large
competitors (Eurozone crisis);
vehicles due to a drop in the
 Consequences of the global
number of large families, global
financial crisis
demand mainly for compact
(and the subsequent Eurozone
models of the product line;
crisis) contribute to the
 Failures in the production system
redistribution of preferences of
(TPS), recall of batches of cars;
Europeans towards hybrid and
 Fluctuations in energy prices.
simply small-sized cars, which
they see as an economical
 33

solution;
 The positive experience of the
Aygo and Jaris models in Europe
can be used to promote these
vehicles in other markets;
 Fluctuations in energy prices.

Some of the characteristics highlighted by the author in the table, of course,

require explanation.In addition to the brand impact and strong financial
performance required to succeed in new markets, Toyota has the most advanced
Toyota Production System (TPS) to date, which allows it to not only stand out
from the competition, but also optimize and synchronize its operations with
account of the most important element of TPS - the system "just in time" (Just in
Time, JIT). At the heart of this legendary system is the total elimination of waste in
production (seven types: waste from overproduction, waste from waiting / idle
equipment, waste from transporting work in progress, waste from overwork, waste
from excess inventory, waste from possible defects in production, waste from
incomplete realization of the creative potential of employees). Just-in-time system
according to which the production of a car is started only after the receipt of an
order form for it from the dealer, allows minimizing the volume of overproduction
and stocks of the enterprise. But the main element of success is still the reverent
and respectful attitude of the plant's employees to each other, which makes them
constantly improve the production process, not being indifferent to the
performance of their part of the work.
Many experts believe that Toyota owes its market share growth, which other
Japanese automakers have not achieved in Europe, to this particular production
system, which is almost impossible to copy. However, with the creation of a
European joint venture withPSA Peugeot Citroën will partially offset the effect of
owning a unique production system.
 34

The joint venture between Toyota and PSA can be taken as proof that the
company is serious about developing its production in the European market and is
ready to make a local transition from its global standardization strategy.
The concept of a joint venture is an agreement between two or more
companiesfrom different countriesabout the exchange of capital and resources, as
well as about the risks and benefits in the formation of a newjointly managedlegal
entity. The launch of a joint venture between Toyota and PSA in the Czech city of
Kolin in 2005 caused serious concern among experts, mainly due to the fact that
both creators are direct competitors to each other, and cars coming off the
assembly line are direct substitutes.
However, it is clear that it was economic efficiency that prompted Toyota to
join forces with PSA, as this strategic approach allowed the company to enter
European markets without the need for financial leverage. The newly created
enterprise is also designed to protect Toyota from threats caused by political
factors and the oligopolistic nature of the European automotive industry. In
addition, this joint venture will not only provide Toyota with the necessary know-
how to operate in Europe, but will also strengthen distribution channels and
increase dealer learning (that is, increase Toyota's competitiveness in areas where
PSA maintains its reputation as a leader).
Thus, one of the main reasons for the success of the project is the fact that
both companies managed to successfully synchronize their interests. However,
scholars argue that in a joint venture, one side always benefits more than the other.
The winning party in this case should be considered PSA due to the fact that the
joint venture was built in accordance with Toyota's operating schemes. This means
that PSA has gained a basic understanding of the essence of the most competitive
advantage of one of its greatest rivals, the TPS system. In an effort to establish
itself as an environmentally responsible manufacturer, Peugeot is already stepping
on the heels of its Toyota counterparts with the launch of its first hybrid vehicle in
the fall of 2010. Model 3008 HYbrid4 producing only 99g. CO 2/km, and the
previously launched and very reminiscent of Toyota iQ Peugeot iOn, which
 35

Peugeot claims are the first 100% electric cars on the market, will be the French
brand's two flagship models. According to experts, these Peugeot models are a
"strikeback" against the Toyota Prius hybrid car, which has become the benchmark
for eco-cars.
The launch of the serial production of the Toyota Aygo mini-model at the
plant in the Czech Republic, although it came at a period of growth, presented
many challenges for the company. The mini-car segment (especially hybrids) is
very price sensitive, so production costs had to be kept under tight control. It was
in this connection that Toyota decided to organize a joint venture with PSA. This
decision shows that cost reduction was a fundamental criterion for Toyota. I must
say that the decision was justified. The data of the comparative table presented
below demonstrate that despite the economic challenges of a relatively unfamiliar
European region for a Japanese corporation,

Table number 6.
The cost of small cars Toyota Motor Europe and PSA Peugeot Citroën in
the markets of the European Union, 2013.

Toyota Motor Europe PSA Peugeot Citroën

Model Quantity Price range, Model Quantity Price range,
g.CO2/km thousand g.CO2/km thousand
dollars dollars
Prius Hybrid 49 - 101 29.0 - 47.0 3008 88 36.0 - 46.0
 36

Auris Hybrid 85-139 18.7 - 31.6 Hybrid4

Yaris 121 16.5 - 26.0 P208 99 13.4 - 30.0
Yaris Hybrid 79 19.7 - 28.0
Aygo 99 10.5 - 18.0 P107 99 11.8 - 17.4
iQ 99 14.0 - 47.0 on 0 34.0 - 42.7

Source: compiled by the author based on data from the official websites of automakers
For reference: the amount of CO emissions2and cost vary depending on the configuration of the
model.

In the table, the author singled out several cars of the model range of
companies, which, in his opinion, are most appropriate to compare due to the
maximum homogeneity of technical characteristics. The data obtained, of course,
speak of a slight, but still the superiority of the pricing policy of the Japanese
concern. The brand's legendary Prius Hybrid and Auris Hybrid remain more
accessible to Europeans than the new Peugeot 3008 Hybrid4, while also
maintaining technical excellence in passenger safety. In a pair of Yaris / P208, the
companies act on equal terms (the Peugeot model is even more available in the
basic configuration), but the French concern does not yet have a hybrid analogue
of such a small-sized model. The Aygo and P107 models are put in line by the
author due to the practical identity of their consumer properties, which is reflected
in the pricing policy of enterprises. Models iQ and iOn are almost indistinguishable
from the outside, but thanks to the latter, the French concern managed to win the
attention of the most environmentally responsible customers. Toyota today has no
analogue with a fully electric engine. However, a mini-car worth from 34 thousand
dollars. not everyone can afford. With less than 100gCO2/km of travel, Toyota's
mini model remains equally appealing, especially to the younger generation, which
the company now calls its target audience. However, a mini-car worth from 34
thousand dollars. not everyone can afford. With less than 100gCO2/km of travel,
Toyota's mini model remains equally appealing, especially to the younger
generation, which the company now calls its target audience. However, a mini-car
worth from 34 thousand dollars. not everyone can afford. With less than
100gCO2/km of travel, Toyota's mini model remains equally appealing, especially
to the younger generation, which the company now calls its target audience.
 37

3.3 Marketing activities of Toyota in Europe

So, Toyota sees young customers as its target audience in Europe and seeks
to reduce the average age of consumers.It must be remembered that the process of
product promotion necessarily includes marketing activities that are aimed at
reaching contact with the target audience. Marketing activities are a set of
measures to attract customers and increase sales. Promotions form the basis of
marketing activities.
To this end, the company actively invests in expanding its presence on the
Internet, organizes sponsorship of relevant cultural and sports events. In 2010,
Toyota made its largest investment in online advertising to date with the launch of
two branding campaigns:
 in support of the new Auris Hybrid
 in support of the brand as a whole.
Toyota's total expenses amounted to about $20 million, 14% of which went to
support the brand on the Internet.39According to Toyota's UK brand development
manager, the company has increased its spending on its online presence because
the web is the perfect medium to promote the Auris model. The fact is that the
technically complex and unfamiliar concept of hybrid cars is difficult to express
within the framework of one television commercial or poster. Therefore, the
placement of information via the Internet is considered as the best approach.40
The next challenge for the company was that in 2010 the perception of the
Toyota brand was severely undermined by a forced product recall that affected 7.4
million vehicles worldwide. In Europe, the company was forced to recall 1.4
million RAV4, Yaris, Auris and Corolla models due to the risk of fire due to faulty
electric window switches.41
In an attempt to rebuild its reputation for car quality, the Japanese automaker
has announced a new global strategy and corporate philosophy: "Your Toyota, My
39
Data from the official website of the electronic newspaper Marketing Week http://www.marketingweek.co.uk
40
Data from the official website of the international marketing agency JD Powerhttp://www.jdpower.com
41
There.
 38

Toyota." Launched in 2010, the advertising campaign informed customers about

the introduction of a new quality standard for the company's vehicles: all vehicles
purchased after June 1, 2010 are covered by a 5-year/100-mile manufacturer's
warranty.42With this, the company tried to restore consumer confidence in the
legendary quality of Toyota. In addition to its five-year warranty, the company
launched a pan-European advertising campaign in which employees of Toyota
factories promised on television to fix the smallest imperfections in every car that
passed through their hands.
Despite millions of vehicle recalls due to safety concerns, Toyota has been
named the world's largest automaker for the fifth year in a row. Toyota remains the
world's largest automaker, surpassing American giant General Motors, which held
the position for 80 years. In 2012, Toyota's sales rose to 9.75 million vehicles
(versus 9.29 million for General Motors).43
Not losing its position as a technological innovator, the Japanese automaker
has invested $12 million. in a new joint venture with Microsoft to develop
multimedia technology in car interiors. Digital technology is already available in
Toyota hybrid models launched in 2012 and could be deployed globally by 2015.44
In 2011, Toyota Motor Corporation and BMW AG decided to collaborate on
the development of aithium-ionicbatteries, which traditionally find their way as a
power source in electric vehicles, in an attempt to combat increased emissions of
greenhouse gases into the atmosphere. From 2014, BMW will also supply 1.6 and
2.0 liter diesel engines to Toyota in Europe.45
By the end of 2013, Toyota expects to achieve a global profit of 12.1 billion
dollars. and increase its profitability to 5% (compared to 2.9% return on every
dollar invested at the beginning of the year).46
In this regard, the company plans to gradually add 10 more hybrid, fuel cell
and electric vehicles by 2015 in an attempt to focus on models that minimize

42
There.
43
Dataofficial website of the business newspaper The Wall Street Journal http://online.wsj.com/
44
Data from the official website of the electronic newspaper Marketing Week http://www.marketingweek.co.uk
45
Data from the official website of the Reuters news agency http://www.reuters.com/
46
Data from the official website of the electronic newspaper Marketing Week http://www.marketingweek.co.uk
 39

environmental impact.47 Toyota will also focus on further promoting its most
successful models, the Aygo and Yaris, which, according to a survey by
international marketing agency JD Power, are top ranked small cars (City car) in
Europe.48

3.4 Recommendations for developing the potential of Toyota on the European

continent.
Having studied all the circumstances of the company's work in the European
region, the author prepared several recommendations regarding possible directions
for further development.
In view of the fiercely competitive market environment in the European
Union, the Japanese corporation could generate additional income by creating new
production bases and maintaining existing distribution channels in the less
developed regions of the European continent. In addition to the global economic
downturn, which has left countries such as Spain, Italy, Greece and Portugal
unable to generate the previously significant demand for Toyota's famous small
cars, the company has to contend with another global trend in the European region
- an aging population. It is widely known that the so-called generation X (that is,
citizens born in the period 1965-1980) shows little interest in the mini-car
segment.49Therefore, it makes sense for Toyota to strengthen distribution channels
in transition countries in Europe with an exponentially growing number of young
people (generation Y), such as Albania, Kosovo, Croatia, as well as in the “young”
states of the European Union (Bulgaria, Slovakia, Slovenia, Romania and the
Baltic countries). ).50Moreover, the company could pay more attention to the

47
There.
48
Data from the official website of the international marketing agency JD Power http://www.jdpower.com
49
Selimi A. Academic analysis of Toyota Motor Europe Strategic Position in the European Continent. // Journal of
International Marketing. 2010. №3. P.13.
50
Ibidem P. 14.
 40

markets of developing countries such as Pakistan, India and Sri Lanka, where
demand for economical cars is especially high.
By strengthening distribution channels in these countries, Toyota will
largely avoid the fierce competition that is not concentrated in these regions. The
company will also have the opportunity to establish itself as a traditional brand
whose cars will be purchased for many generations of the same family. This
becomes possible due to the fact that the listed regions are emotionally less
attached to European brands. The chart below just reflects the current trend of
Japanese automakers to increase supplies to countries on the European continent
that are not members of the EU. In 2011, European Union members accounted for
only half of European passenger car imports from Japan.
Diagram no.
Cumulative export of cars from Japan by regions of the world, %, 2002-
2011

Source: data from the official website of the Japan Automobile Manufacturers
Associationhttp://www.jama.org/

However, simply strengthening distribution channels will not be enough. To

win (poach) customers, Toyota will have to demonstrate a high level of social
responsibility. Market research shows that young people in Eastern Europe have a
preference for more established global brands, which in turn are interested in
 41

investing in their own countries.51Thus, it would be extremely promising for

Toyota to sponsor scientific projects based on European universities in order to
improve its own technology. In addition, the company may support scholarship
funds to provide educational opportunities for talented students. This will not only
provide Toyota with promising personnel, but also increase the awareness of
European customers about the company, and will help create a positive image of a
foreign, but socially responsible corporation in the region.
Another direction of development proposed by Toyota Motor Europe is the
implementation of a strategy of differentiation in the field of technology, namely
the development of the direction of engineering consulting. During the global
economic crisis, Toyota management, like the management of many other
conglomerates, was forced to lay off a significant part of its employees around the
world. This phenomenon undermined Toyota's reputation as a socially responsible
enterprise. Mass layoffs also go against the unique system of “just in time” or JIT
(Just In Time Production), where “respect for people” is a fundamental
principle.52However, this difficult situation can be seen as an opportunity. Toyota
could use its non-traditional workforce to launch a consulting business that will
train other manufacturing and engineering companies to achieve cost-effectiveness
through a unique just-in-time system. In numerous European countries in the
development period, infrastructure improvements (especially in the Eastern
European region) for Toyota there is great potential. Thanks to relatively weak
competition and its reputation as a technologically successful company, Toyota
may become a leader in the region in a short time.
The third recommendation for Toyota is related to the formation of an
advertising campaign. Marketing research shows that customer loyalty to Toyota
vehicles is lower than the effect caused by the advertising campaigns of the main
European competitors. In its advertising strategy, Toyota emphasizes sci-fi,

51
Selimi A. Op.Cit. P.16.
Amasaka K. Applying New JIT – Toyota's Global Production Strategy // Robotics and Computer-Integrated
52

Manufacturing. No. 23. 2007. P.286

 42

computer-generated effects, while other brands appeal more to the feelings and
moods of customers, invite famous people to participate in product promotion.
Given the heightened sensitivity of European consumers to the need to pay
for parking spaces, and even the sometimes complete refusal to own a car, Toyota
makes sense to pursue a sales promotion strategy by contracting with private
parking space owners in major European cities. The meaning of such contracts
may be as follows: by offering the buyer to purchase a Toyota mini car, the
company will also provide him with a discount on parking fees in a specific
parking building with which Toyota has entered into an agreement.
In conclusion of the list of recommendations, the author considers it
necessary to point out the importance of developing the company's actions after the
end of the life cycle of the popular Aygo. Given the fact that women are the main
buyers of mini cars, after the end of the Aygo's life cycle, Toyota can be
recommended to transform Aygo into a special car series for women. Exemplary
from this point of view is the strategy of the Italian automaker Fiat, which, as part
of maintaining the life cycle of the Fiat500, launched the production of a designer
model developed jointly with a domestic fashion brand.53The limited edition of this
model in 2011 was officially dedicated to the 150th anniversary of the unification
of Italy, but is still popular today.54Changes for the women's Aygo should also
affect the appearance (color palette, upholstery materials) and interior design of the
car (special boxes, etc.).

53
For reference: according to Diagram No. 1, the company holds 8% of the European market and is only one
position ahead of Toyota.
54
Fiat SpA official websitehttp://www.fiatspa.com/
 43

Conclusion
As a result of the study, it can be concluded that Toyota implements all the
necessary key factors in order to succeed in the European mini-car segment.
However, in order to do so, TME needs to be wary of aggressive competition from
European automakers and continue to implement a strategy that will focus on
adapting the brand's products to emerging market trends. The economic downturn
in major consumer markets, as well as an aging population in Europe, should push
Toyota to invest in the so-called transition countries of Europe. In addition, layoffs
due to the recession can be seen as an advantage, using part of the workforce to
diversify activities and launch the TME consulting brand. Finally,
 44

In conclusion, it must be added that TME's success in Europe depends

primarily on the company's ability to think in long-term terms. Despite the fact that
Toyota Corporation faces serious competition from experienced European
automakers, the company is able to profitably realize its potential in the European
region thanks to the competent formation of a marketing strategy.

List of used literature

Monographs, scientific publications, collections

1. Bagiev, G. L. International marketing. SPb. Peter, 2009. - 688 p.

2. Kotler, F. Marketing management. SPb. Peter, 2009. - 814 p.
3. Kotler, F. Marketing in the third millennium. M. AST, 2000. - 272 p.
4. Collect. author of Kanban and Just-in-Time at Toyota. M. Alpina Business
Books, 2008. - 217 p.
5. Konakhina, N.V. Integration trends in the automotive industry //
Proceedings of the XII International Scientific and Practical Conference. St.
Petersburg: Publishing house of Politekhn. University, 2007. - 215 p.
6. Briefly, I. G. International business. M. INFRA-M, 2001. - 272 p.
7. Liker, J. K. Tao of Toyota. M. Alpina Business Books, 2007. - 399 p.
8. O'Shaughnessy, J. Competitive Marketing: A Strategic Approach. SPb.
Peter, 2002. - 857 p.

Foreign literature
 45

1. Albaum, G. International marketing and export management. Pearson

Education, 2011. - 990 p.
2. Bennett, R. International marketing. New York Kogan Page, 2002. - 362 p.
3. Doole, I. International marketing strategy. London International Thomson
Business Press, 1997. - 508 p.
4. Bradley, F. International marketing strategy. Pearson Education, 2005. - 408
p.
5. Jain, SC International marketing cases. Cincinnati South-Western, 2001. -
192 p.
6. Kleindl, B. International marketing. Thomson South-Western, 2007. - 328 p.
7. Kotabe, M. Global marketing management. John Wiley & Sons (Asia),
2011. - 717 p.
8. Mathur, UC International marketing management. Los Angeles [etc.] SAGE
Publications, 2008. - 583 p.
9. Morrison, J. The international business environment. New York
PALGRAVE, 2002. - 414 p.
10. Rugman, A. M. Analysis of multinational strategic management.
Cheltenham; Northampton Edward Elgar, 2005. - 461 p.
11. Verbeke, A. International business strategy. Cambridge [etc.] Cambridge
University Press, 2009. - 481 pp.
12. Collect. author of Handbook of research in international marketing.
Cheltenham; Northampton Edward Elgar, 2011. - 417 p.
13. Collect. author of Strategic international marketing. New York Palgrave
Macmillan, 2012. - 303 p.

Periodical articles
 46

1. Amasaka K. Applying New JIT–Toyota's Global Production

Strategy//Robotics and Computer-Integrated Manufacturing. No. 23. 2007.
R.285-293.
2. Bhandari S. Analysis of Toyota Marketing Strategy // Journal of
International Marketing. 2008. No. 6. P.34-52.
3. Grein A. Integration and Responsiveness: Marketing Strategies of Japanese
and European Automobile Manufacturers // Jounal of International
Marketing. 2009. No. 2. P.19-50.
4. Lim L. Development of archetypes of international marketing strategy //
Journal of International Business Studies. 2006. No. 37. P.499-524.
5. Moulins J. Strategies for International Growth in the Automobile Industry //
Journal of International Business. 2005. No. 11. P. 34-51.
6. Porter ME Gompetition in Global Industries: A Conceptual Framework, in
Competition in Global Industries, ME Porter, ed. Boston: Harvard Business
School Press. 1990. P15-60.
7. Selimi A. An academic analysis of Toyota Motor Europe Strategic Position
in the European Continent. // Journal of International Business Studies.
2011. No. 67. P.306-329.
8. Stanley F. Marketing's Contribution to the Implementation of Business
Strategy // Strategic Management Journal. 2007. No.11. P.1055-1067.

Internet
1. Official website of the European Association of Automobile Manufacturers
http://www.acea.be/
2. Official siteToyota Motor Corporation
http://www.toyota-global.com
3. Official siteJapan Automobile Manufacturers Association
http://www.jama.org/
4. Official website of the Fiat SpA group of companieshttp://www.fiatspa.com/
5. The official website of the business newspaper The Wall Street Journal
 47

http://online.wsj.com/
6. Official website of the electronic newspaper Marketing
Weekhttp://www.marketingweek.co.uk
7. Official website of Reuters news agencyhttp://www.reuters.com/
8. Official website of the international marketing agency
JD Powerhttp://www.jdpower.com

APPENDIX 1.
Automakers in the rating of “TOP-100 advertisers”,
2011-2012

Global media
Position in the advertising spend, Region,
ranking (million dollars) 2012
2012

2011

Advertiser 2012 2011 Europe

one one Procter & Gamble Co. 9.731 9.732 3.551

4 4 General Motors Co. 3.674 3.485 969
five five Toyota Motor Corp. 3.203 3.308 750
eight 6 Ford Motor Co. 2.448 2,846 1.029
eleven 12 Volkswagen AG 2.309 2 1.709
12 10 Honda Motor Co. 2.22 2.121 269
nineteen 16 Nissan Motor Co. 1.716 1.9 350
24 25 PSA Peugeot Citroen 1.513 1.422 1.359
34 39 Renault 1.225 990 1.141
38 36 Hyundai Motor Co. 993 1.038 211
42 26 Chrysler Group 960 1.406 137
46 47 Daimler 924 790 558
52 58 fiat 770 646 620
Mitsubishi Motors
56 fifty Corp. 710 739 71
60 65 Kia Motor Corp. 643 565 242
 48

61 61 Mazda Motor Corp. 633 618 174

63 59 bmw 619 636 429
64 57 Suzuki Motor Co. 615 653 210

A source:Advertising Age datacenter estimates, http://adage.com/article?article_id=113350

APPENDIX 2

Import of cars to European countries, 2006-2011 (million dollars)

Source: data from the official website of the European Association of Automobile
Manufacturershttp://www.acea.be/
 49

APPENDIX 3
Export of passenger cars from Japan by regions of destination (manufactured
units), 2011

Destination passenger cars

Standard small Mini Total
EU Sweden 15.969 2.343 13 18.325
Denmark 4.273 2.277 84 6.634
Great Britain 56.367 21.228 87 77.682
Netherlands 33.262 9.398 36 42.696
Belgium 12.070 5.875 73 18.018
France 49.368 12.020 6.815 68.203
Germany 85.851 29.769 647 116.267
Spain 28.632 2.116 37 30.785
Italy 35.896 18.668 41 54.605
Europe
Finland 8.747 2.297 7 11.051
Poland 12.613 991 22 13.626
Austria 15.290 6.571 75 21.936
Greece 2.541 1.745 0 4.286
Other 20.651 2.474 132 23.257
Total 381.530 117.772 8.069 507.371
Norway 17.291 4.125 1.072 22.488
Switzerland 18.887 9.492 117 28.486
 50

Russia 317.168 30.708 106 347.982

Turkey 5.708 21.038 2 26.748
Ukraine 23.433 3.151 0 26.584
Other 2,560 365 one 2.926
Total 766.567 186.651 9.367 962.585

Source: Data from the official website of the Japan Automobile Manufacturers
Associationhttp://www.jama.org/

APPENDIX 4
Prayer row of Toyota Motor Corporation in various regions of the world, 2012.
 51

Model range of Toyota in the regions of the world (except Japan)

North
America

Latin
America

Europe

Africa

Asia

Oceania

Near East

Source: Data from the official website of Toyota Motor Corporationhttp://www.toyota-global.com