Analyze the Business Market of Toto

Topics: Marketing, Hotel, Hong Kong Pages: 8 (2801 words) Published: October 31, 2011
TOTO Ltd. was established in 1917 and is the market leader in toilet manufacturer market. Its missions are to develop products which can be used daily by people at any ages comfortably. TOTO Washlet is an innovative toilet seat that can jet water towards the user with a remote control.1The objective of the business to business marketing plan are promoting environmental friendly, extending market share, developing business market in hospital and hotel industry and meeting $5 million sales after six month.

Target Business Customer

We mainly target on companies that consume including hotels and private owned hospital. For hotels we target Kowloon and Island Shangri-La, Macro Polo Hotel HK Café. They were our existing client using our product as their toilet amenities and now we are going to propose them up-sell it. Adopt the smart washlet instead of the traditional one. To let them gain a competitive advantage as their competitors not yet adopted the smart washlet. For private owned hospital, we target on St. Teresa Hotel, HK Sanatorium &Hospital and Yan On Hospital. Since some patients may have difficulties to clean themselves after going toilet, the smart washlet allow cleaning in mild way instead of using toilet tissue. Apply in all wards. Strategic Situation Analysis

Bargaining power of customer
Our target customers have strong bargaining power because of different effectiveness. As our target customers are large companies in each industry, they always purchase large quantity. They can squeeze hard for price concession, effectively pressing out profit opportunities. Also, they can bargain on the delay payment term or return the product. Moreover, there are many substitutes for choosing which are including the product providers as the direct and indirect competitors. Especially three hotels are our current customers, which have more bargaining power. We need to keep the good relationship with those companies when up-selling of the washlet. We may be needed to provide more discounts to motivate them to purchase the washlet. Threat of substitutes

There are not only the same function product distributors in the business market, but also the indirect substitutes within the industry. No matter what effectiveness is indirectly or directly, both are our competitors. First, direct competitors provide the same functional product of us which are IZEN International Ltd2 and Archifeature Ltd3. Second, there are others substitutes as the indirect competitors, such as paper towel and shower filter for taking bath after excretes. Tempo as P&G 4 , is one of the paper towel providers. Our target customer are using those substitutes nowadays, it may hard to change them to use our product to replace the substitutes. We need to define the differential and benefit between our products to each substitute more unique and affective. It affects the opportunity of our business successful. Bargaining Power of suppliers

Premium ABS Plastic is the major material of TOTO’s washlet. There are many suppliers provide plastic raw material (ABS) 5. Therefore, TOTO has many different choice of supplier, the bargaining power of suppliers is quite weak. Hence, it is good for TOTO to negotiate the price and payment term with supplier. Threat of potential entrant

As washlet are commonly found in Japan and Korea, overseas companies may start to expand their overseas presence, like China and the United States. Hong Kong is a new market as people are more concerning hygiene section nowadays. But there is less threat of potential entrant to TOTO as TOTO is a market leader of washlet manufactures and there are just a few washlet manufactures such as Royal TOTO Co. Ltd6 and Colinda Group7 . Struggles between industry rival

In Hong Kong, there are only a few washlet manufactures such as IZEN International Ltd and DAEWON BIDET Co., Ltd. And TOTO is a market leader of washlet manufactures, it is using a unique washlet technology leads to a...
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