Toyota

INTRODUCTION

This report investigated Toyota Motor Corporation's international marketing strategies and shows differentiated approaches of the company. The report studied Toyota Motor Corporation's PR activities, its inventions such as JIT production system and new Hybrid technology. The aim of this report is to find out main ground of success that Toyota has achieved in last nearly 70 years. Because of the time limitation the researcher has decided to concentrate mostly on car manufacturing site than Toyota's other business branches.

Globalization has shaped with the interaction of innovations in technology. People all around the world are more connected to each other than ever before. The impacts of computers, Internet, advance-traveling vehicles, accuracy of information change all around the globe have presented globalization as a full of candy box. Goods and services produced in one country have become increasingly available in all parts of the world. And Toyota has become a part of world product.

Brief History

Second World War was finished and Japan did not only lose the war but also they lost their honour. Their infrastructure has collapsed, heavy industry destroyed, most of the young generation either died in the war or killed from sickness and diseases because of the effect of Hiroshima and Nagasaki atomic bombings. Also singing a peace constitution between US, which was forcing Japan a non militaristic production in the future; seemed it was the end of last emperor. However it was the significant effect on Japan that the industries concentrated on electronics, automotive and consumer products, which influenced their success and over come after the great loss. Toyota has the same faith as Japanese nation, it is established in 1937 and started to apply JIT (just in time) system in its early years. After the war and struggling years, Toyota Motor sales established in US in 1957. From early 80s Japan captured US not with military terms but by taking over their market by offering Japanese products along with Toyota, which was the beginning of new era.

Toyota Motor Corporation manufactures automobiles in 25 countries and regions throughout the world and sells them in more than 160 countries and regions under the Toyota, Lexus, Daihatsu and Hino brands. In addition to its 12 plants in Japan, Toyota Motor Corporation has 54 manufacturing companies in 27 countries, which produce Lexus and Toyota vehicles and components. A hybrid version of the popular Lexus RX 330 SUV entered the market in 2005. KDDI, the company's telecommunications enterprise, provides phone and Internet services in Japan and overseas. GAZOO provides a visual vehicle information network via the Internet, as well as e-commerce activities through multimedia kiosks. The company introduced Lexus in Japan in 2005. The firm's goal is to have a 15% global market share by 2010, up from about 10% in 2002. Toyota will emphasize its hybrid technology over the mid term, attempting to capitalize on growing desire among consumers for fuel efficient cars. Also, Toyota will capitalize on its extremely high ratings for quality as well as the terrific reputation of its luxury Lexus line. Building on its success in North America, Lexus has expanded to 49 countries around the world. (Toyota official website 2006)

The Emblem

The emblem refers to three ellipses depicting the heart of the customer, the heart of the product, and the ever-expanding technological advancements and boundless opportunities that lie ahead. In Japanese, 'Toyo' means an abundance of, and 'ta' is rice. I'm told that some Asian cultures believe that those blessed with an abundance of rice are blessed with great wealth. When the company was founded in 1937, the name 'Toyota' was used rather than the family name, 'Toyoda'. There were three reasons for this:

1. Signify the separation of the founders' work life from home life

2. Simplify the pronunciation

3. Give the company an auspicious beginning; eight is a lucky number and it takes eight strokes to write Toyota in Katakana, whereas it takes ten to write Toyoda

(History of Car Logos 2006)

Toyota's Global Marketing Strategies

Americans loves big houses and big cars and that's why main players in car making industry (US based) such as GM, Ford and Chrysler were manufacturing big cars with high fuel consumptions. On the other hand the Japanese automakers are doing fine with the boosting market share in US as climbing oil prices make fuel efficient models such as Toyota Corolla and Honda Civic increasingly attractive. With the lead of Toyota, Japanese companies started to provide economy cars with basic needs of the driver in order to reach firstly to middle class, because the middle class is the majority in the social hierarchy.

Today, Toyota is recognised not only from middle class, it has loyalty from every segments of the society in all around the world. One of the reason is, Toyota is offering products to all types of market. Lexus for luxury choice, Matrix for youngsters, Prius for family car, Trucks for mainly for US and 4 x 4 for adventurers and many more. The main similarity of these cars is reliability. Toyota have built up great loyalty with its customers by offering them moderate price cars with high tech developments such as ABS brake systems, side-impact and head-curtain air bags, anti-skid control; shortly any technological development that car manufacturers are offering also addition with fuel efficient motors. Toyota is likely to continue to get a big lift from the growing global interest in fuel efficiency. The sale of hybrid version of Camry is getting a lot of interest in US.

Briefly Toyota is aiming cost effective productions with JIT system, which has lately started in China and all around the world. Additionally the products which are offered are high tech developed with high reliability with moderate pricing than its counterparts.

JIT - Just In Time

Toyota is the benchmark in manufacturing and product development in automobile industry. The early adoption of JIT principles by Toyota seemed to have helped the company to achieve significant success. It helped the company respond quickly to changing customer needs and offer high quality products at low costs, thus increasing customer satisfaction. JIT system is Toyota's greatest asset in global market competition that other leading automakers like Mercedes-Benz,