The Marketing Plan of Toyota Motor Corporation
Customers are the backbone of any business success. The modern business environment has become complex and demands unique strategies like customer attraction and retention for organizations to thrive. This is where the value of marketing emerges. Effective marketing not only attracts but also retains customers. A marketing plan governs an organization’s growth and survival in the competitive and volatile environment. It is therefore important for organizations to develop a marketing plan. A marketing plan is a business document that contains descriptive details of a company’s advertising and marketing efforts for the following year (Info Entrepreneurs, n.d.). It features segments like marketing situation, target markets, company positioning and marketing strategies. An effective marketing plan helps a business to reach its customers and subsequently boost the customer base. Business analysts imply that today’s customers are complicated; they buy basing on subjectivity and not objectivity as it used to be (Info Entrepreneurs, n.d.). A good marketing plan can help the target audience to understand why an organization’s products or services are superior to the competitor’s. Toyota Motor Corporation is one of the companies capitalizing on marketing management to attract and retain a huge customer base. The company’s marketing plans have seen it sore to greater heights in the automotive industry. This section of Toyota’s marketing plan discusses the goals and objectives as well as its target customers and implementation tactics.
Goals and Objectives
A mission statement states the purpose of the company i.e. its reason for existence. This statement spells out the organization’s overall goal as it guides the rest of the actions in the business. Toyota’s mission is “To provide safety and sound journey. Toyota is developing new technologies from the perspective of energy and diversifying energy sources. Environment has been first and most important issue in priorities of Toyota and working towards creating a prosperous society and clean world.” (Toyota, 2018). This mission is complemented by the company’s vision of “being the most successful and respected car company in America.” The company’s mission aims to attract customers by providing quality and safe products.
In line with the Toyota’s mission are its objectives. The following are the company’s objectives.
- To manufacture, sell, repair and lease both motor and industrial vehicles, aircraft, ships and other transportation machines
- To manufacture, sell, lease and repair industrial and electrical machinery and apparatus
- To manufacture, sell, lease and repair measuring and medical machinery and apparatus
- To manufacture and sell products of synthetic resins and ceramics
- To manufacture, sell, and repair construction materials, fixtures and furnishings for residential buildings.
- Planning, designing, execution, and supervision of construction works, land development, engineering works, regional development, and urban development
- To sell, buy, lease, brokerage and manage real estate
- To process and disseminate information as well as developing, selling and leasing software
- To design and develop product sales systems
- To provide inland, marine and air transportation as well as tourism services and warehousing
- To advertise, print, publish, and dispatch workers and security
- Offer financial services like credit card operations, investment consultation, and purchase and sell of securities.
- To operate and manage various facilities including educational facilities, showrooms, medical care facilities, lodgings, and restaurants.
- To offer both life and non-life insurance services
- Biotechnological production, processing, and sale of agricultural products such as trees
- To sell products related to mineral oil (Toyota, 2018).
With the above company objectives, Toyota has established effective marketing objectives to meet the demands of their diverse client base. As the demand for mobility increases, Toyota’s market continues to grow. Toyota understands the needs of their consumers. The company strives to deliver quality products and offer affordable prices to attract more customers and retain the existing ones. For instance, the Toyota Camry Hybrid is a safe, reliable, and affordable family sedan that has an impressive combination of Toyota’s world-class hybrid technology including the features, style, and performance. The company’s marketing objectives for the Toyota Camry Hybrid are stated below.
- To maintain leadership of the Toyota Camry Hybrid in the field of mid-sized cars and grow the brand sales to $20,000,000 and above, towards the end of the next fiscal year (Toyota, 2018)
- To grow the Camry Hybrid brand by achieving the 30% target of all Camry models sold by the end of the next fiscal year
- To grow the sales of the Camry Hybrid by 50% in Canada by the end of the next fiscal year
- To focus on developing the Camry Hybrid brand through implementation of market campaigns to convince consumers to buy the product
- To maintain the current prices of the Toyota Camry Hybrid while creating consumer awareness on the available discounts and cash incentives
- To continue the sale of the Toyota Camry at local branches while establishing specialized sales department and personnel for the product in major markets
- To enhance online capabilities for buying the Toyota Camry Hybrid
- To create interest in hybrid vehicles among primary target market and shift buyer attitudes and perceptions of the hybrid technology
- To encourage trial usage, positive testimonies, and persuade buyers (Toyota, 2018)
Each of Toyota’s products is designed for specific audience. The design criteria range from color, size, capacity, exterior appearance and top speed. Generally, the company targets the younger audience with features like high speed, small size, or the two-seat model cars while the big five-seat models target people with families. TMC customers come from all walks of life including low income earners to wealthy ones. Toyota tailors products to fit unique needs of its customers basing on various factors such as age, geographic location, social status, and cultural status. For low income earners, the global automaker provides them basic modes of transportation which also provide efficiency. Since Toyota is a global company, clients are located all over the world. They buy products from local retail distributors while others prefer to order directly from the company. Due to the prevalence of electronic commerce, customers are increasing ordering and purchasing their products online.
The Toyota 2018 Camry sedan targets millenials. For the past 15 years, the major consumers of the Toyota Camry were baby boomers. According to the company’s Communication Manager on the East Coast, Corey Proffitt, the average age of buyers of the previous Toyota Camry (2017) was 52. The Toyota Camry Hybrid is therefore targeting younger people ranging from 25 years to 45 years old. The new model targets 53% of men, customers who likely have post-secondary education, own a home, full-time employed with an HH income of over $50,000 and married with children between age 12 and 18 (Toyota, 2018).
Strategies to Implement a Marketing Plan
- Develop the right expectations
Marketing is like a marathon, not a sprint. It therefore takes an average of 6-12 months for an organization to start realizing the fruits of its marketing efforts. It is important to set realistic expectations.
- Establish the team and secure required resources
It is important to have a dedicated and talented marketing team for effective marketing. To avoid major mishaps, one should carefully choose members of the marketing team, which will include the marketing, sales and customer service personnel. Required resources should be secured in time too.
- Communicate the marketing plan
Once the marketing team is developed, it is vital to inform them about the marketing plan so that they understand the goals. Each team member should be assigned goals and communicate the importance of the roles towards the success of the marketing plan.
- Create timeline and tasks
The marketing plan should have a detailed timeline where smaller tasks are each assigned deadlines. This process of assigning tasks and deadlines can be enhanced by project management software.
- Regular monitoring
To ensure smooth running of all processes, it is important to do regular monitoring like monthly check-ins to determine what is working and what is failing. Besides regular monitoring, one should also meet with the marketing team often to revise the progress and give a clear picture of the entire process. This helps members to understand which areas they are supposed to work on to achieve success of the marketing plan (Info Entrepreneurs, n.d.).
Other tactics of implementing a marketing plan include willingness to adapt, creating a dashboard to track success and communicating success.
Toyota. (2018). Business Objectives. Management. Retrieved from https://www.toyota-global.com/company/history_of_toyota/75years/data/company_information/management_and_finances/management/business_objectives.html
Info Entrepreneurs. (n.d.). Write a Marketing Plan. http://www.infoentrepreneurs.org/en/guides/write-a-marketing-plan/