NAME- MUSKAAN CHHABRA

COURSE- BBA 3C

BATCH- 2020-2023
ENROLMENT NUMBER- A1810420022
SUBJECT-PRINCIPLES OF MARKETING-
II
TOPIC- CHANNEL DISTRIBUTION OF
FORD AND TOYOTA
SUBMITTED TO:
MR. ADITYA KUMAR GUPTA
Distribution Channel of
Toyota and Ford

Toyota
One of the successful automobile organizations that have viably utilized its
distribution channels is 'Toyota.' Toyota chiefly depends on its dealership for
the sales of its products. A Toyota dealer depends upon the parent association
to layout the vehicle plans as per the necessities of the consumers. Accordingly,
Toyota depends upon the dealer to pull in clients, impact them to buy Toyota
vehicles, and service vehicles after the arrangement has been made.
Undoubtedly, the achievement of individual Toyota dealer depends upon how
well the entire Toyota distribution channel battles with the channels of other
automobile makers.
Taking a gander at the overall automobile market, Toyota has figured out how
to acquire the standing of being the world's greatest automaker both as a
brand and furthermore regarding the quantity of vehicles sold. As referenced
before, the primary spots for the distribution of Toyota's products are
authorised Dealerships and retailers. These are where clients can get to
Toyota's products. For an automobile industry player like Toyota, distribution
channels are restricted. But, it uses an extensive production and distribution
network system. Toyota and its affiliates produce automobiles and related
parts and components through more than 50 manufacturing companies in 27
countries and regions besides Japan. The company’s geographically well spread
production base provides a wider reach, thus boosting revenues. The firm
depends on either the dealerships or retailers. The dealerships see lion's share
of sales exchanges be it vehicles, spare parts, frill or overhauling.
How well Toyota deals with this distribution divert in a joint effort with
advertising channels is the way in to Toyota's prosperity.
 Ford
Ford use exclusive distribution which is it uses only one outlet in a relatively
large geographical area.
Ford has become the first car manufacturer to sell their cars directly to the
customer online: encompassing the ‘Place’ element of the ‘Marketing Mix’.
Although one would expect this to have happened first in Japan – given their
high-tech reputation and hugely successful car manufacturing industry –
through Ford Online British customers can request a car, have it delivered to a
wholly owned dealership and sign-and-drive away the car. It seems simple
enough; almost anything can be purchased online now-a-days anyway. But,
there is less customer interaction with the product. Yes, the chosen car may be
perfectly fine during the test drive; but choosing the car to test becomes a
whole lot harder when using their website, especially given high cost of the
product. But, Ford has interviewed their customers to come to this change in
distribution – and the change could actually present a number of benefits. In
addition to a straight forward PR competitive advantage, it is more cost-
efficient to hold cars centrally – as there is more potential for less
intermediaries and more stock control - and allows greater consumer
customization of the car. Likewise, by distributing to only 12 regional delivery
centres, as well as promoting exclusivity, there is no simultaneous need to
promote a ‘Channel Value Proposition’ to the various intermediaries, which
means that sales-people will not be too aggressive, as they are monitored
under quality-control programs. There is also a greater scope for online
advertising, where already many consumers look online before visiting a
dealership to select a car. Ford knows that they are not going to revolutionize
(again) the way people buy their cars nor gain huge volumes of sales that
would boost their market share.

The difference between both the distribution channels is that

Toyota sells its cars through authorised dealerships and retailers and on the
other hand Ford uses dealerships, auto parts store and Ford Online to sell it’s
cars. Also, Toyota used extensive distribution system while Ford uses exclusive
distribution system.