Toyota 1x211b

Toyota Market Segmentation, Targeting and Positioning

Market Segmentation, Targeting and Positioning over Toyota Course: Principles of Marketing (101) Section-2 Summer 2011

Prepared For: KASHFIA AHMED Senior Lecturer Department of Business istration East West University Prepared By: Md. Touhidul Islam ID: 2010-2-13-073 Md. Mozammel Haque ID: 2011-1-10-178 Nyma Ferdous ID: 2011-1-10-398 Ayaz Yasin ID: 2011-1-10-427 Sharif Shihab Hossain ID: 2011-1-10-288

Date of Submission: 3rd August, 2011

Acknowledgement On behalf of our group we would like to show utmost gratitude and respect to hour honorable faculty, Madam Kashfia Ahmed, Senior Lecturer, Department of business istration, East-west University for her valuable advice and firm guidance through the whole assignment. She is superb at her subject matter. We get everything for herself. Without her enlightenment throughout the assignment, we would have been stumbling spontaneously and for that we give our heartfelt thanking once again. We would also like to thanks those who have given us valuable suggestions regarding the assignment such as our fellow class mate’s .Also many thanks go to the dealers of the Toyota motors residing in Bangladesh with their and valuable information. Now the less the website providing profound and correct information about Toyota, we thank them as well. Finally, all the credit goes to our fellow group , without whom this assignment wouldn’t have been possible to make. From each and every single member of the group, we thank every individual for their hard work and utmost .

Table of Content

Executive Summary Of ‘TOYOTA’

Introduction of TOYOTA Toyota started in 1933 as a division of Toyoda Automatic Loom Works devoted to the production of automobiles under the direction of the founder's son, Kiichiro Toyoda.[107] Its first vehicles were the A1 enger car and the G1 in 1935. Toyota Motor Co. was established as an independent company in 1937. In 2008, Toyota's sales sured General Motors, making Toyota number one in the world. The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota Industries, it created its first product, the Type A engine, and, in 1936, its first enger car, the Toyota AA. Toyota Motor Corporation group companies are Toyota (including the Scion brand), Lexus, Daihatsu and Hino Motors,[8] along with several "non-automotive" companies.[9] TMC is part of the Toyota Group, one of the largest conglomerates in the world. Toyota Motor Corporation is headquartered in Toyota City, Aichi and in Tokyo.[10] In addition to manufacturing automobiles, Toyota provides financial services through its Toyota Financial Services division and also builds robots.

Toyota company profile

Company Name President and Representative Director

Head Office

Tokyo Head Office

Toyota Motor Corporation

Akio Toyoda

1 Toyota-Cho, Toyota City, Aichi Prefecture 4718571, Japan Phone: (0565) 28-2121 1-4-18 Koraku, Bunkyo-ku, Tokyo 112-8701, Japan Phone: (03) 3817-7111

Nagoya Office

4-7-1 Meieki, Nakamura-ku, Nagoya City, Aichi Prefecture 450-8711, Japan Phone: (052) 552-2111

Date founded

August 28, 1937/Number of shares issued 3,447,997,492 shares

Capital

397.05 billion yen (as of March 31, 2010)

Shareholders Fiscal Year Main Business Activities

660,922 shareholders From April 1 to March 31 of the following year Motor Vehicle Production and Sales

Business Sites

Number of employees (Total in d companies)

http://www.toyota-global.com

320,590

Market Offering

Market Segmentation for Toyota Geographic Segmentation World Region or Japan, North America, Europe, Asia, others. Countries Density

Urban, Suburban

Climate

Dry & Hot, Cold Demographic

Age Family Size

18-50+ Single, 2, 2-4 , 4+

Income(per year) Under 25000$, 25000-35000$, 35000$+

Occupation Generation

Businessman, Employer, farmers, Official, transporter Third generation, Next Generation Psychographic

Social Class Lifestyle

Higher, Upper Middle, Middle, Adventurers, Luxurious, Formal,

Behavioral Benefits

Durability, Power, Fuel efficiency

Loyalty Status

None, Medium, Strong, Absolute

Geographic Segmentation Toyota operates many geographical areas, but pay attention to geographical needs & wants. They segment their market on the basis of world region, density of population & Climate. On the world region they segments their market for Japan, North America, Europe, Asia, others. In 2002, Toyota initiated the "Innovative International Multi-purpose vehicle" project (IMV) to optimize global manufacturing and supply systems for pickup trucks and multipurpose vehicles, and to satisfy market demand in more than 140 countries worldwide. IMV called for diesel engines to be made in Thailand, gasoline engines in Indonesia and manual transmissions in India and the Philippines, for supply to the countries charged with vehicle production. For vehicle assembly, Toyota would use plants in Thailand, Indonesia, Argentina and South Africa. These four main IMV production and export bases supply Asia, Europe, Africa, Oceania, Latin America and the Middle East with three IMV vehicles: The Toyota Hilux (Vigo), the Fortuner, and the Toyota Innova. They produce their cars on the basis of urban & suburban density of these region & countries. Also the dry & hot, cold climate has effects on their production. So they segments their cars for cold & snow covered area & also for dry & hot area as well. For example, SUV cars are specially customized for running on snow covered area or on a desert.

Demographic Segmentation Demographic factors are the most popular basis of the segmentation for the Toyota. Toyota segments their products on the basis of age, income, family size, occupation and generations. •

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Age: Toyota produce their car from the age range 18-50+. People among these ages have different choices over the models of Toyota. For example people of age 18-30 purchase Toyota Supra. Celica and aging above purchase four door Sedans like- Alion, Premio etc. Family Size: Toyota also produces cars on the basis of family size. For example Noah & Voxy for 6+ . Corolla, Yaris for 3+ . For single & a family with 2 person they produce Supra, celica etc. Income- For the people who has the income under 25000$ per year, Toyota offers D class cars like Allion, Corolla, Matrix, amry, Prius. For 25000-35000$ per year- Avalon, RAV4, Venza. For 35000$+, they offer some exotic cars like Lexus series. Occupation- Toyota has some business class cars like MarkII & Crown for businessmen. Normal Sedan cars like Yaris, corolla for employers. Some pickup trucks like Tacoma & Thundra for farmers & working class people. Generation- Toyota is basically producing their cars for the third generation. They also producing some Hybrid cars for the next generations like- Prius, Camry hybrid.

Psychographic People in the same demographic group can have very different psychographic make ups. That’s why Toyota also segments their market on the basis of psychographic factors like Social class and Lifestyle. •

Social class: People of different classes has different choices. That’s why Toyota segments their market on the basis of three social classes: Higher class, Upper Middle class and middle class.

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Life Style: Toyota offers highlander and FJ Cruiser to the adventurous people and cars like Avalon and Sequoia.

BehavioralDepending on the behavior of the customers, Toyota segments their market on the basis of Benefits and loyalty status. Benefits: Different consumer’s wants different sort of benefits from their products. That’s why Toyota offers three kinds of benefits to their consumers. They are durability, power and fuel efficient. • Loyalty status: Consumers, who are highly loyal to the products of Toyota has a special place in Toyota’s segmentation. For example people of Asia are highly loyal to the products of Toyota. So this segmentation is highly profitable for Toyota.. •

Effective Segmentation of Toyota

Toyota chooses their segments on effective ways. These ways helps Toyota to have a clear overview of the segmentations done by them. The effective measurements that they choose for their segmentation are: •

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Measurable: Segmentation done by Toyota is thoroughly researched and analyzed. As a result they have clear measurement about size, purchasing power and profiles of the targeted segments. Accessible: Toyota can easily reach into the core of their segments and have a profound access because of their vast knowledge and ability over these segments. Substantial: Toyota chooses segments in the market that are highly profitable for the company. Differentiable: Since Toyota has a clear knowledge over their segmented market, they know which consumer wants what product. So Toyota differentiates their consumer on their choices and creates effective segmentation for them. Actionable: Toyota does their segmentation on the basis of their resources and serves each and every one of them efficiently. They don’t choose segments which are out of their capability.

TOYOTA’s Market Targeting Evaluating Toyota Market Segmentation: • Segment size and growth Segment structural attractiveness • Company objective and resources •

Selecting Toyota’s Target Market Segmentation: Type of marketing

Remarks

Explanation

Undifferentiated marketing(mass marketing)

Ignore by Toyota

Differentiated marketing

Followed by Toyota

The company basically does not follows the mass marketing strategy. Toyota offer different model of car for different segments like Corolla, Lexus. . Toyota has offer some exotic cars like Lexus series some specific groups Not possible

Followed by Toyota Concentrated Marketing Ignore by Toyota Micromarketing

Undifferentiated Marketing Toyota totally ignores undifferentiated Marketing. Differentiated marketing It is the most important way for Toyota to target the segment market. Toyota offer different model of car for different segments like ‘Corolla’ for middle class, ‘Lexus’ for upper class.

Concentrated Marketing • Toyota offer ‘Lexus’ series for luxuries consumers. • And ‘Corolla’ series for middle class.

Micromarketing Toyota automobile ignore targeting this type of market segment. Because it is impossible to full-fill individual and local consumer demand for Toyota.

Positioning Toyota works strategically to establish a firm position on the mind of their consumer. Their main motto is “moving forward” and “Pursuit of perfection”. With these mottos on their mind Toyota tries to develop their product up the quality of the consumer’s choice. Toyota positions its fuel efficient hybrid car- Prius as high tech solution to the energy shortage. “How far will you go to save the planet?” it asks to the consumers to make a great position on their mind and to think about the environment as Toyota believes their product is eco-friendly. One of the stronger sides of Toyota is that they offers better car in affordable price comparing to the other car industries. On this basis they produce highly affordable cars for the people of higher middle and middle class creating a better positioning on their mind.

Positioning map

BMW

GM

Toyota

TAT A

BMW: • •

Price higher than General Motors, Toyota, Tata. Performance higher than General Motors, Toyota, Tata.

General Motors: • Price lower than BMW but higher than Toyota and Tata. • Performance lowers than BMW but higher than Toyota and Tata. Toyota: • Price higher than Tata but lower than BMW and General Motors. • Performance higher than Tata but lower than General motors and BMW Tata: • Price lower than BMW, General Motors and Toyota. • Performance lower than BMW, General Motors and Toyota. This positioning map revels the position of the Toyota Car on the consumer mind on the basis of price and performance comparing to the other Competitors.