1. Running Head: MARKETING PLAN FOR TOYOTA MOTOR COMPANY
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2. Marketing Plan For Toyota Motor Company 2
1.0 Company Description
The Toyota Company is a leader in the car manufacture, assembly and distribution the
world over. A very efficient management style that the company uses has been one of the reasons
for the firm’s good performance. There are many other salient factors that have made the company
achieve the niche of market leader. The market structure the company operates in can not be
definitely stated. Some may consider it to be a monopoly. This is due to the fact that the company is
a dominant market player in car exportation. In fact, its differentiation strategy has made it enjoy an
almost monopolistic presence especially in the developing nations of the world. On the other hand,
the market structure can be seen as an oligopoly. This is due to the fact that there are other key
players like GM who are peer competitors. Toyota is keen to see what these competitors are doing
and make sure it reacts to their actions in a way that will guarantee its market leadership.
2.0 Strategic Focus and Plan
There are three aspects of the existing corporate strategy that are developed in relation to
their overall impacts caused to the marketing plan of Toyota Company. These are;
2.1 Mission Statement of the Company.
Toyota seeks to create a more prosperous society through automotive manufacturing
(Hiroshu, 2003). Therefore, the Company is aimed at achieving a stable and long-term growth in
future, and this is supposed to be in synchronization with a number of factors: the significant
environment, global economy, local communities served, and the Internal Environment of
stakeholders
2.2 The Company’s Goals
The company has committed itself to offering of hybrid alternatives for every model that
is sold in the market. This is aimed at enabling the Company to make a total sale of 1 million

3. Marketing Plan For Toyota Motor Company 3
hybrid vehicles within a year, and this goal has been set to have been achieved by the year 2012.
Toyota Company has improved its 2011 Environmental Action Plan and it is committed
in six different key areas, which are: the Environmental Management; changes in Energy and
Climate; the Quality of Air; concerned Substances; the aspects of Recycling and Improved
Resource utilization; and Societal Cooperation. The Company is committed to reduce carbon
dioxide emission and it is believed to take combined actions of ensuring that the environment is
kept clean all the time by observing the stated fuel economy values.
2.3 Core Competency and Sustainable Competitive Advantage
Toyota Company is working towards the achievement of a better and more sustainable
economy by having a stable global market. With advancement in new technology and other
related matters, the Company is investing in various strategies that will enable it to realize its set
goals and objectives over a period of time. The Company has a well developed and equipped
network of expertise that are into research and development over aspects that are to keep the
Company on top in product and service delivery to its global market. Also it has a wide range of
distribution network allover the world and this has enabled it to reach a portion of the market that
is seeing it through to greater levels.
3.0 Situation Analysis
Toyota’s capacity to stay on top of productivity efficiency and quality rankings can be
credited to its internal environment. This entails the way production process is managed by the top
management who are famous for their competency. The production team has an insatiable obsession
to improve the efficiency and effectiveness of its manufacturing operations. Therefore, to fully
understand the situation analysis of Toyota Company, a SWOT analysis is determined and it mainly
consists of the Company’s strength, weaknesses, available opportunities, and finally the threats that

4. Marketing Plan For Toyota Motor Company 4
the Company is experiencing or projected to go through.
3.1 SWOT Analysis
Strength and weaknesses are referred to as internal factors of the Company as their
impact starts from within the Company, while opportunities and threats normally originates from
outside of the Company, hence referred to as external factors.
Figure 1: SWOT Analysis of Toyota Company (Internal Factors)
Internal Factors Strengths Weaknesses
Management Having competent and Large size of management
experienced management team team reduces chances of
and board members moving fast into the targeted
market, because of slow rate in
decision making
Offering Hybrid products that are Expensive in proofing the
customer friendly market that are right products
for them
Marketing Distribution of products into Expensive in establishing this
the market through wide range distribution network
of identified branches
Personnel Have good skilled workforce The gap will be big if the
who are relied upon employees left the Company
Finance Improved revenues from sales Limited workforce and
made in the global market material may slow down the
growth of the Company in
relation to competitors
Manufacturing Main supplier of material Different supply interests
ensure fast and quality among the Company suppliers

5. Marketing Plan For Toyota Motor Company 5
material and other competitors.
R&D Quality of products delivered
is enhanced through out the
period of doing business
Figure 2: SWOT Analysis of Toyota Company (External Factors)
External Factors Opportunities Threats
Consumer/social Stability of the upcoming Low priced products may
market is highly projected proof that the quality of the
products is quite low
Competitive Differentiated products and Products of high technology
prices make the Company to are being introduced into the
be quite distinctive in the market by other competitive
market companies
Technological Break-through in
technological standings is a
better course for the Company
to improve on the quality of its
products
Economic Improved consumer income Individuals opting for other
has made it convenient for the products since they have
Company to get deep into the enough disposable income
market
Legal/Regulatory Regulatory measures ensuring
fairness in the market and
avoid over-exploitation by
other competitors

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Figure 3: The SWOT Analysis Matrix
Strengths: Opportunities:
•investment in new factories •hybrid cars
•diverse range of products •selling technology
•improved marketing techniques •rising urban youth population
Weaknesses: Threats:
•Maintaining client base •Faulty products
•Maintaining production •Upcoming manufacturers
3.2 Industry Analysis
Toyota Company is able to apply its strengths and opportunities it has to create a
competitive edge in the industry. For instance, the widely differentiated product line is helping
the company to have more global presence. This can also be achieved through entering new
markets like China and Europe. Toyota has previously concentrated on the Japan and American
markets and it needs to setup strategies to penetrate the other markets as well.
Toyota has taken a good position as far as sustainable development is concerned. With
the fear of depletion of the fossil fears coupled with the global warming effects, there is a ready
market for the Toyota’s hybrid car. The company can also use this opportunity t sell its
technology to other firms
3.3 Company analysis
Toyota Company is one of the world’s leaders in car export and it appears to literally be
living its mission, which is to be the world leader in the creation of automotives that are best in

7. Marketing Plan For Toyota Motor Company 7
terms of value. The company is working towards the end of creating a society that is prosperous by
providing their clientele with the best value for their money. They believe in giving the best prices
for the client yet still deliver a vehicle that is at per with those being offered by their other major
competitors. This could be the reason why their products are having a very good market in the
developing nations. The Company is also conscious about sustainable development, and this can be
clearly seen in its different corporate social responsibilities as well its sustainable development
initiatives aimed at reducing the pollution of the environment.
3.4 Customer Analysis
Toyota’s customers are very diverse and they range from the low income earners to the very
rich. They are widespread around the world. Toyota has catered for all car needs that may arise for
any individual with their wide range of motor vehicles. They range from small sports cars to big
family vehicles and trucks as well as vans. The customers comprise a varied group of people, with
differing ages, incomes, geographical locations, and social and cultural statuses. Customers go for
Toyota products to satisfy different wants and needs. Low income earners are provided with a basic
mode of transportation that is both within their price range and efficient. Clients going for class and
elegance are also catered for.
Customers purchase Toyota products on individual basis according to their specific needs.
In some cases we have organizations purchasing cars for their firm’s usage or for their employees.
In such a case, the product buyer and purchaser is not actually the product user. Once individuals
purchase the company’s product, there is an increased exposure to its other products. Product
awareness is enhanced through advertisements, newsletters, website information, and other
informational sources. The opportunity for Toyota to generate income from complimentary
products such as books and seminars by members is very big.

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Where do they Purchase?
Most of Toyota’s products are sold through retail distributors located all over the world.
Purchase can also be made directly from the factories, as is the case with limited edition models.
The increase in the use of electronic commerce, Toyota as well, that is, purchasing products on-line.
Majority of the advertising materials can be obtained in full, on-line view over the Internet. On-line
publications diminish paper waste while giving existing and direct availability of the product to
clients. Customers are able to order a product in stores and with a toll-free number directly from the
company as well (Booz, 2007). This grants customers around the world access to the company’s
products.
When do they Purchase?
Individuals can purchase the company’s products anytime that they like, at any time of the
year. This is because Toyota sells its cars all year round, except for the limited editions which are
purchased directly from the factories. New users often purchase cars after acquiring a driver’s
licence in the case of some countries when going to high school or to college in others. Other users
usually purchase a new car when the old one breaks or gets too old or when they want to trade in for
a newer car or a different model.
Why do they Purchase?
Customers select Toyota products over other manufacturers primarily because of their
comprehensive, yet specialized, nature. Toyota offers a diverse range of cars that encompass all
needs of the clients. They are focussed on building and maintaining high standards when it comes to
the products. They offer cheaper alternatives to the clients for the same products from other
manufacturers that are quite expensive. Toyota has also invested heavily on safety in their cars. As
the globe goes green and clients call for an appropriate response from their car manufacturers,

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Toyota have responded by investing in hybrid cars, the Prius. This may be the future of the motor
industry. The high quality products make it all that easy for a customer to go back to the shop and
purchase another Toyota product (Flanagan, 2007).
Why Potential Customers Don’t Purchase
As is the case for many large organizations, Toyota’s target market defines a much wider
population than their customer base actually reflects. There are many car manufacturers who have
come up and the motor industry is currently flooded with many products. Many of these products
are similar, often differing due to one or two features that may or may not be significant. In this
case, it comes down to personal like and dislike. The other reason is the issue of class and social
status. Toyota products do not always give the implication of a high social standing. A customer
may choose to buy a car from a competitor and not from Toyota simply because of that, and yet the
car is the same.
4.0 Product-Market Focus
In this section, the Company three year development projections is clearly explained in
various categories, which are developing of a strategic focus; marketing goals and objectives; target
market; and the Company position in the market.
4.1 Developing a Strategic Focus
Toyota has already embraced product differentiation as a major strategy in market
penetration and the strategy is working well. It is determined to use a pricing mechanism that
will give it a competitive edge over its main competitors. The cost of production of a unit for
Toyota is projected to be large but due to possible mass production plants, the overall cost will
not be a huge issue in this case. This means the company will be able to sell its products at an
even lower price yet still remain profitable. The company is taking an advantage of this and

10. Marketing Plan For Toyota Motor Company 10
using it to penetrate the markets of emerging economies with affordable products.
4.2 Marketing Goals and Objectives
Toyota’s enormous size and capacity is a great advantage in meeting industry growth.
The number of clients in need of cars is constantly increasing, thus creating a bigger market for
Toyota and requiring more of their products. The perceived importance of owning a car due to
increased travelling needs in today’s largely corporate world is constantly increasing as well.
Toyota’s great size will enable them to successfully meet the needs of this growing population of
customers in need of cars (Dobni, 2002, p.41).
The company keeps making quality product and make it a rule not compromise on this,
and not to give in to the competitors’ pressure and rise their prices then clients will remain loyal
to the company (Armstrong & Kotler, 2002). Then, everyone has a chance to know the real
values behind Toyota’s past, current, and hopefully future existence (Armstrong & Kotler, 2003).
Toyota is in the process of engineering lesser platforms to be used in the assembly of its
different models. This is as a cost cutting measure; they intended to compress their platforms
from 20 to ten in the ambitious exercise. This is especially important since their chief rivals; GM
and Ford have made notable improvements in their production process. Toyota is also thinking
twice about its bloated assembly points. It is thinking of best ways to reduce them without
hindering its efficiency (Mullins, Walker & Boyd, 2010).
4.3 Target Market
Each of Toyota’s products is designed to target a specific market. The design criteria
range from top speed, capacity and exterior appearance like color and shape. There is a high
speed, small, two-seat model cars for the relatively younger and single people who are
adventurous to the big five-seat models for the family set up. Demographically, they also target

11. Marketing Plan For Toyota Motor Company 11
situations on the smooth tarmac road as well as the rough and rugged off road terrain (Thomas,
2001).
Toyota has been previously blamed by the American Markets that their products are
lacking in flair and design unlike those of GM and Ford. This has led the company to be more
attentive to its American designers to make sure this needs are met. The V8 pickup which was
launched recently was as a result of this ambitious. The hybrid model, Primus, has also been
transformed since at its inception, it didn’t hit the American market. When they made it look
more futuristic, it resulted in big volumes of sales.
Overly, the Toyota Company is giving its competitors a hard time. Even though it has
experienced challenges like the recent recalls, it is still notable in market leadership position. If
the current impressive results and global positioning of the company is anything to go by, then
this is a position Toyota is not likely to lose any time soon.
4.4 Company Position in the Market
Toyota Company has been producing vehicles and significant products that are not
expensive and readily available. This has been a significant factor that has enabled the Company to
have a major cut in the market , and it is projecting to have most of the market by the end of 2013,
as it has put a cross a number of strategies to enable it reach the set target.
5.0 Market Program
This consists of the four marketing mix elements that are designed to fit the market in terms
of their needs and ability to access such products and services.
5.1 Product Strategy
The Company is believed to be moving with a strategy of mass production of which it has
enabled it to sell widely in the global market. It has also included the strategy of hybrid product,

12. Marketing Plan For Toyota Motor Company 12
where it can double the amount of production for the arising needs in the market.
5.2 Price Strategy
The reputation of the Company has been developed by producing high quality vehicles that
can be bought at a reasonable price. The Company has also been using tactful pricing strategies
through price differentiation so that they are different from other automobile producers.
5.3 Location Strategy
Being a global producer and supplier of Toyota automobiles and their components, Toyota
Company has positioned itself all over the world giving it a clear cut within the market. Within
three years to come, it is working towards the achievement of about 35 percent of the market share,
and this will make it to be best and top supplier of automobile products.
5.4 Promotion Strategy
The Company is determined to use a pricing mechanism that will give it a competitive
edge over its main competitors. This is a mechanism that it is using to market itself so that it can
get hold of market share that will see it better in achieving the highest level in the market.
6.0 Marketing Implementation Analysis
Toyotas main focus will be in reaching the new markets of China and Europe. It will also
be concerned about the competition from other firms like Ford and GM. An advantage the
company has is the widely differentiated product range. Establishing new factories in these new
markets as well as opening up new franchises will help the company in getting an ease of
penetrating the new markets
Human resource is one of the most important aspects in this plan. The company should
always make sure they have highly motivated staff as this is directly proportional to good
production both in the qualitative and quantitative aspects. Toyota can do this by coming up with

13. Marketing Plan For Toyota Motor Company 13
schemes of rewarding their employees like helping them own cars subsidized rates. The
company should also make sure the personnel are the best in terms of technical know-how. The
company needs to carry out frequent training towards this end.
7.0 Financial data and Projections
The previous years have seen Toyota’s profit grows each year with an exception of 2009
due to the economic downturn as well as the recalls. The figures below illustrate this
Figure1: Toyotas impressive performance in the last four years (Johnson, 2009)
With the advent of more efficient production technologies coupled with the entrance into the new
markets, it is expected that the increase in profits will continue for the next five years. Below are
the projections for the next five year period
Figure2: Projected Financial returns for the next five years (Johnson, 2009)
Sales Forecast Millions of Yen
year 2009 2010 2011 2012 2013

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1,243,445 1,455,650 1,900,340 1,957,879 2,000,534
Net Sales
Operating income
54,120 65,023 89,954 98,0530 99,760
Ordinary Income
70,912 80.636 108,484 125,444 14,343
Net Income
46,123 47,999 60,231 81,234 57,576
Research
30,051 32,051 30,051 20,051 30,051
Divindends/yen
32 44 50 60 78
7.1 Tactical Marketing Activities
Toyota has taken a bold step in being a leader in sustainable development. This position
will need some innovations which translate to expenditure. They are however necessary as a way
of staying ahead of competition. The activities the company will embark on are given in figure 3
Figure 3: Tactical Marketing activities
Person/Department Required Completion
Specific Tactical Activities Responsible Budget millions Date
of yen
Product Activities Production 30.45 2011
1.Car air conditioning compressor engineers and
2.DC-DC converters for fuel efficiency Product
3.Low Exhaust Emission Engine management
Pricing Activities Operations 15.25 2012
1.New Technologies management
2.Compression of Production platforms
3.Merger of Assembly points
Distribution Activities Logistics 21.40 2010
1. Opening up of new factory in America and management
china

15. Marketing Plan For Toyota Motor Company 15
2. Machine handling
3.Logistical operations
IMC (Promotion) Activities Marketing manager 9.20 2012
1.Concerts
2.Volunteer
3Youth Invention club
8.0 Implementation Plan
There are a number of activities that have been projected within a life span of three years
and the following representation shows the aspects that have been targeted and within what strategic
period of time.
Year To be Achieved New Targeted Cumulative Targeted
Markets (millions) Markets (millions)
Today (2010) Working towards 250 250
hybrid products
st
1 Year (2011) Introduction of pricing 320 600
mechanism and price
differentiation
strategies.
nd
2 Year (2012) Enhancing hybrid 370 970
products by use of new
technologies
3rd Year (2013) Product differentiation 420 1320
to meet the needs of
the market
9.0 Evaluation and Control

16. Marketing Plan For Toyota Motor Company 16
There is a monitoring and evaluation team that will be set to watch over the progress of the
company in realizing the strategic goals. The short term goals will be clearly watched and
corrections put in place where targets are missed for they are the keys to fulfilling the long term
goals. Currently, the Company has made a clear step forward in ensuring that hybrid vehicles are
being produced, and so far the market has started improving in terms of overall reception of these
brands of vehicles. Another aspect that is supposed to be considered here is the speed of the roll-out
program of pricing mechanism introduced. Currently, it has taken the market by surprise as most of
Toyota products are found to be customer friendly. The Company has been able to come up with a
differentiation program for its products and this has helped it to have a huge market share. It is
projects to improve and reach the target within three years and this will be determined by the rate of
growth and the total number of market reached.
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