Question

Toyota:

1. History (background), and ownership (private, public, government, or mixed)
2. Country or countries where the business operates
3. Stock exchange identifier and listing
4. Description of the products and services (4 P’s) offered and where sold
5. SWOT analysis

Answer 1

Toyota Motor Corporation

Introduction

Toyota is founded on August 28, 1937. The company is based in Japan. Toyota is presence in most parts of the world and it is currently 2^nd largest Automobile Manufacturing company in the world. Toyota in ranked 1^st in top Automobile Brands in world. The brand is also known for 1^st automobile brand to produce more than 10 million vehicles in a year (2012). Toyota is a market leader in sales of hybrid electrical vehicles and also in hydrogen fuel-cell vehicles.

Ownership

Toyota is publicly traded on stock exchanges of Tokyo, Osaka, Nagoya, Fukuoka and Sapporo under the company code TYO: 7203. It is also listed on The New York stock exchange under NYSE: TM and on London Stock Exchange under LSE: TYT

History

It is founded by Kiichiro Toyoda. Three year earlier to its official founded date in 1934 Toyota Industries (It became Toyota Motor Corporation in 1937) creates its first product, the Type A engine and in 1936 creates its 1^st passenger named as Model AA.

Earlier the company was name after the last of its founder Toyoda which literally means ‘fertile rice paddies’ but later it change to Toyota Motor company to prevent the company’s association with old fashion farming. Toyota entered in US market in 1957 with crown but did not receive well.

In early 1960s US had placed 25% tax on imported vehicles so in response to that Toyota began building plants in the US by early 1980s.

By 1980s Toyota Corolla was one of the most popular and best-selling cars in the world. In 1984 Toyota entered into joint venture with GM to called New United Motor Manufacturing, Inc (NUMMI). At the end of 1980s the company focused on starting new brand, then Lexus a luxury division of Toyota launched in 1989.

In 1990s company decided to produce larger and luxuries vehicles in their line up by adding Tundra, Camry Solara, MR2, Celica and Supra. In the same era the company very well established itself in the European market and set up its base in the United Kingdom

Subsidiaries under Toyota Motor Corporation

It produces Vehicles under 5 brands

• The Toyota
• Hino
• Lexus
• Ranz
• Daihastu

The Presence in the World

• Australia – from 1983
• Bangladesh – from 1974
• Europe – from 1960s
• India – from 1970
• Indonesia – from 1984
• Japan – Home of Toyota
• Malaysia
• Philippines
• Singapore
• South Africa – in early 1970s
• South Korea
• Thailand
• United States – 1950s

Revenue (US$)

265.398 Billion (2018)

33.3% increase over 16.906 Billion (2017)

4Ps of Toyota

Product Mix

It has a diverse set of products, product line of Toyota are as follows;

• Toyota Automobiles
• Lexus Automobiles
• Welcab Series
• Marine Products
• Spare parts and Accessories
• Engines

Place Mix

• Dealership
• Retailers

The assembled car is send to dealership and then to retailers to sold those to final costumers

                Promotion Mix

• Personal Selling
• Advertising
• Public relations
• Sales promotion
• Direct Selling

Toyota uses personal selling through dealerships’ sales personnel, who personally promote products to potential buyers. The company also uses advertising on various media, such as TV, newspapers, and websites. In addition, the firm promotes its products through public relations, such as the Toyota Together Green program that supports environmental initiatives, and the Meal Per Hour program that donates food to Food Bank. These public relations activities create a positive brand image for Toyota. On the other hand, infrequent sales promotion is used through special deals. Also, the company sometimes uses direct selling for corporate clients. This part of Toyota’s marketing mix indicates that the company has a comprehensive strategy for promoting its business and products.

Pricing Mix

• Market-Oriented Pricing
• Value-Based Pricing

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

SWOT Analysis.

Strengths

1. Strong R&D- Toyota is known for its famous innovative culture
2. Known for leading the Top 10 Automobile brands in the world.
3. Advance Technology – Toyota is consider as innovative brand in car manufacture.
4. Strong Diversified Portfolio Large and diversified products among globe

Weakness

1. Dependent of suppliers – to increase sale the company had dependency on suppliers.
2. Negative Publicity – In history Toyota has recall large number of vehicles.
3. Poor Brand Recognition – Toyota and Lexus are recognised but other like Hino, Daihatsu are not.

Opportunity

1. Green Vehicle Technology – Toyota is among the 1^st to develop and promote it,
2. Developing Nations’ growth – countries are developing which can market for Toyota.

Threats

1. Number of Competitors – Tuff and Number of Competitors are increasing
2. Labour Cost – Labour cost is increasing which will increased the ultimate price of product
3. Higher-priced Raw materials – Raw Material costing is being the major threats for many companies as it been continuously increasing these days.