ECONOMICS

PRATHAM TOLANI

HFBAMMC123
TOYOTA
Toyota Motor Corporation,
Japanese Toyota Jidōsha KK,
Japanese parent company of
the Toyota Group. It became
the
largest automobile manufactur
er in the world for the first time
in 2008, surpassing General
Motors. Many of its about 1,000
subsidiary companies
and affiliates are involved in
the production of automobiles,
automobile parts, and
commercial and industrial
vehicles. Headquarters are in
Toyota City, an industrial city
east of Nagoya, Japan. In 1933
Toyoda Kiichiro founded what
later became the Toyota Motor
Corporation as a division of the
Toyoda Automatic Loom
Works, Ltd. (later Toyota
Industries Corporation, now a
subsidiary), a Japanese
manufacturer founded by his
father, Toyoda Sakichi. Its first
production car, the Model AA
sedan, was released in 1936. The
following year the division was
incorporated as the Toyota
Motor Company, Ltd., headed
by Kiichiro. (The company’s
name was changed to Toyota,
which has a more pleasing
sound in Japanese.) Toyota
subsequently established
several related companies,
including Toyoda Machine
Works, Ltd. (1941), and Toyota
Auto Body, Ltd. (1945). During
World War II the company
suspended production of
passenger cars and
concentrated on trucks. Faced
with wrecked facilities and a
chaotic economy in the
aftermath of World War II, the
company did not resume
making passenger cars until
1947 with the introduction of the
Model SA. By the 1950s Toyota’s
automobile production
factories were back in full
operation, and to gain
competitiveness the company
began a careful study of
American automobile
manufacturers, owing to
perceived U.S. technical and
economic superiority. Toyota
executives toured the
production facilities of
corporations, including the Ford
Motor Company, to observe the
latest
automobile manufacturing tech
nology and in
turn implemented it in their
own facilities, yielding a nearly
immediate increase
in efficiency. In 1957 Toyota
Motor Sales, U.S.A., Inc., was
established, and the following
year the company released
the Toyopet sedan, its first
model to be marketed in the
United States; it was poorly
received because of its high
price and lack of horsepower.
The Land Cruiser, a 4 × 4 utility
vehicle released in 1958, was
more successful. In 1965 the
Toyopet, completely
redesigned for American
drivers, was re-released as
the Toyota Corona, marking the
company’s first major success
in the United States.
Marketing strategy applied by

TOYOTA
Toyota is currently one of the
largest automobile manufacturers
in the World. It produces around
10million vehicles every year. It has
implemented some of the best
marketing mix strategies and
found success in them.
Thus this makes it curious to know
about the marketing mix of
Toyota. In this blog, we will cover
the successful marketing mix of the
company.
Before we start with its marketing
mix let us know a bit about it as a
company.
About Toyota:
Marketing mix of Toyota
1. Toyota’s Products Strategy (Product Mix)
2. Toyota’s Place/Distribution Strategy (Place Mix)
3. Toyota’s Promotion Strategy(Promotional Mix)
4. Toyota’s Price Strategy (Price Mix)
Marketing mix of Toyota
The marketing mix is the technique used by a
company to promote its products. It is
categorized into 4p’s which are price, product,
promotion, and place.
Toyota uses its marketing mix to interact with
its target customers. It has a wide range of
markets to target in terms of consumer
preferences, regional and local market
conditions. It has adapted its marketing mix to
these different customer preferences in the
market.
Its continuous growing success shows how well
the company has implemented its marketing
mix.
Let us start with its marketing mix by first
looking at the product strategy of Toyota.
1 . Toyota’s Products Strategy (Product Mix)
With the market diversified demand for
different preferences, Toyota has a
diverse set of products to serve all types
of customers. These are some of the
products that the company provides:
1. Toyota automobiles
2. Lexus automobiles
3. Welcab series
4. Marine products
5. Spare parts and accessories
6. Engines
There is a variety of products for
different people for example- Lexus
automobiles are luxury products,
whereas the Welcab series are
automobiles specially modified for the
elderly and people with disabilities. It
also manufactures yachts, engines, spare
parts, accessories for automobiles and
marine products.
Now let us see the Place strategy of
Toyota.

2. Toyota’s Place/Distribution
Strategy (Place Mix)
Product mix determines the place where
the products are made available for the
customers to access them. Making
products available for customers is an
important part of a business. Toyota has
two main distribution strategies:
1. Dealerships
2. Retailers
Most of its transactions happen with its
dealerships. However, there are retailers
like auto supple stored also who sell its
products like spare parts and
accessories. On these facts, we can see
that the company depends more on
dealerships to sell its products.
Let us now see the Promotional strategy
of Toyota.

3. Toyota’s Promotion
Strategy(Promotional Mix)
Toyota has covered all the promotional
tactics in their promotional strategy. They
market their products byways of
billboards, newspapers, T.V, social media
platforms(Youtube, Twitter, Instagram,
etc), and websites.
These are some of the promotion
activities used by Toyota :
1. Personal selling
2. Advertising
3. Public relations
 4. Sales promotion
5. Direct selling
They use personal relationships to
promote their products like Green
Program for environmental initiatives, an
initiative to reduce greenhouse gas
emissions, etc.
Toyota uses catchy slogans for the brand
and endorses celebrities as brand
ambassadors creating a brand recall for
customers. The current brand
ambassador of the company
is Ayushmann Khurrana.
It uses personal selling by sales
personnel, they personally promote their
products to potential buyers.
Lastly, we will see the Pricing Strategy of
Toyota.

4. Toyota’s Price Strategy

(Price Mix)
Toyota has been providing affordable
price vehicles to its customers. They allow
credits to their customers on low-interest
rates to make more profit.
Its price strategy depends on the
competition, segment, geography, and
demand. They have a flexible pricing
strategy depending on the change in
market conditions, and competitors.
They use two pricing strategies which
are:
1. Market-oriented pricing
2. Value-based pricing
However, the firm also uses the value-
based pricing strategy, which sets prices
based on the actual and perceived value
of the product. The company uses value-
based pricing for high-end or more
expensive products, such as the Prius and
Lexus cars.
Conclusion :
Toyota is a company that gives
some of the best value products to
its customers in terms of its pricing
and quality. It has different
products for the different
requirements of its customers from
value-based pricing to luxury
products.
It has a wide range of products for
its customers to choose from they
have made their products
available for all types of
preferences.
They make their products
available for the customers in all
possible ways. May it be dealers
or personal selling they have it
covered.
They have been using all types of
product promotion techniques in
the market and adapted to the
new digital world by digitally
promoting their products.