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Market Segmentation, Targeting and Positioning Over Toyota

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Market Segmentation, Targeting and Positioning Over Toyota 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 Administration 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 Administration, 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 support 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 members, 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 support. 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 passenger car and the G1 in 1935. Toyota Motor Co. was established as an independent company in 1937. In 2008, Toyota's sales surpassed 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 passenger 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 Toyota Motor Corporation President and Representative Akio Toyoda Director 1 Toyota-Cho, Toyota City, Aichi Prefecture 471- Head Office 8571, Japan Phone: (0565) 28-2121 1-4-18 Koraku, Bunkyo-ku, Tokyo 112-8701, Japan Tokyo Head Office Phone: (03) 3817-7111 4-7-1 Meieki, Nakamura-ku, Nagoya City, Aichi Nagoya Office Prefecture 450-8711, Japan Phone: (052) 552-2111 August 28, 1937/Number of shares issued Date founded 3,447,997,492 shares Capital 397.05 billion yen (as of March 31, 2010) Shareholders 660,922 shareholders Fiscal Year From April 1 to March 31 of the following year Main Business Activities Motor Vehicle Production and Sales Business Sites http://www.toyota-global.com Number of employees (Total in 320,590 affiliated companies) 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 18-50+ Family Size Single, 2members, 2-4 members, 4+ members Income(per year) Under 25000$, 25000-35000$, 35000$+ Occupation Businessman, Employer, farmers, Official, transporter Generation Third generation, Next Generation Psychographic Social Class Higher, Upper Middle, Middle, Lifestyle 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. • 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+ members. Corolla, Yaris for 3+ members. 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. • Life Style: Toyota offers highlander and FJ Cruiser to the adventurous people and cars like Avalon and Sequoia. Behavioral- Depending 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: • 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 Ignore by Toyota The company basically does marketing(mass marketing) not follows the mass marketing strategy. Differentiated marketing
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