Toyota is an automobile company which is recognized for its market appeal, innovation and quality. The company has been in the motor industry for a long time and has continued to perfect its production process over the years. Despite the stiff competition in the automobile industry, Toyota has managed to stay ahead of the competition by delivering quality to the consumer, but there are still numerous opportunities in the industry that the company can exploit to increase its market share further.
Brand History and Background
Toyota motor company became established in 1937 .Toyota first started out as a division of the Toyota Loom Works in 1933. The company proceeded to establish various related companies during the 1940’s but had to suspend operations following the World War II. The company resumed operation in the 1950’s.
Toyoda Kiichiro later took charge of the Toyota Automobile Company. Kiichiro was son to Toyoda Sakichi who was the founder of the Toyota Loom Works.
Toyota’s mission; ‘To create vehicles that are popular with consumers.’
The company is mostly concerned with the manufacture and sales of automobiles globally.
Brands
1. Toyota
2. Hino
3. Lexus
4. Daihatsu
5. BMW
Lexus is my favorite brand. The Lexus is economical and offers comfort at its best. The vehicle offers a comfortable ride, and its engine is powerful and smooth making it economical, not to mention the high-end features of the car . The car has an upscale look which is appealing. The car has harsh angles giving it a modern and sharper look.
Daihatsu is my least favorite brand. This is primarily because most of the brand’s model are not appealing in terms of design, from a personal point of view. Other brands under Toyota have most of their models having elegant interior and exterior designs. Additionally, the array of models under this brand do not cater for the mass market.
The company should make more efforts to penetrate the US market. General Motors has continued to dominate the US market over the years. This is due to the branding of the company as a Japanese company. Toyota needs to put more efforts into the rebranding of the company as an American brand which will enable the company to penetrate the US market . This can be achieved through research and development into cheaper cars which are more acceptable for the Americans.
Toyota’s innovativeness enable the company to manufacture vehicles which are of the best quality, and yet they offer these vehicles to consumers at the best possible prices. The company’s innovative production practices have kept the company at the top of the automobile industry over the years . The company’s production process is famously referred as the TPS and is the company’s key competence.
During the launch of the Toyota Lexus, which is a luxury car in New York, the company advert won the prize for the best advert. In the advertisement, the company demonstrated the various parking options for the model. The advert won for its ability to create memorability, appeal and brand communication for individuals between the age of 25 and 54 .
One of the major competitors is the Volkswagen. Toyota possesses 10.2 percent of the automobile industry market share, while Volkswagen takes 9.6 percent of the market share .
Volkswagen achieves this by branding itself as more than a car manufacturer. The company perceives its customers as part of their family and proceeds to offer them exceptional after sale services .
Toyota should consider making the Lexus model a priority in the Chinese market. Being a luxury car, Lexus is highly acceptable in the Chinese market and making it a priority in China will increase the company’s sales . Toyota has branded itself over the years as a Japanese company which is associated with ingenuity and persistence. The company is associated with quality, loyalty and precision. Consumers associates Toyota with quality.
The one change that the company can make to its visual assets would be altering its logo to make the central T more obvious while maintaining its uniqueness.
The company has recently experienced numerous recalls of its products which could have a negative impact on the company’s brand and image. In 2011, 181,000 vehicles were recalled in Japan due to abnormal noises and oil leakages .
In conclusion, Toyota's production processes have put the company in a leading position in the automobile industry and consumers associate the company with quality, and the company can expand its market share further by exploiting the available opportunities. The Japanese branded company is associated with persistence and genuine products which have earned the company loyalty from its consumers. The industry has stiff competition with the company owning only a tenth of the market share, and competition is still striving to get more of its market share. The company is yet to exploit the US market and the Chinese market fully, opportunities which can continue to improve the company's position in the market.
Works cited
Bhandhari, Surendra. An Analysis of Toyota's Marketing Strategy. 2007. Web. 9 June 2016. <http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1624068>.
Das Auto. Volkswagen Service Corporate Design Manual. July 2012. Web. 9 June 2016. <https://apps.vw.co.za/app/webroot/dealerCI/_assets/_services/CI%20Manual.pdf>.
DeMuro, Doug. 2014 Toyota Avalon vs. 2014 Lexus ES; What's the Difference. September 2014. Web. 9 June 2016. <http://www.autotrader.com/car-reviews/2014-toyota-avalon-vs-2014-lexus-es-whats-the-difference-229780>.
Halliday, Jean. "Who's got the most effetive Auto ads; Toyota." Adage 4 April 2007. Web. <http://adage.com/article/news/effective-auto-ads-toyota/115902/>.
Nkomo, Thembani. Analysis of Toyota Motor Corporation. n.d. Web. 9 June 2016. <http://scholar.harvard.edu/files/tnkomo/files/analysis_of_toyota.pdf>.
