Toyota International Marketing

Only available on StudyMode
  • Download(s) : 128
  • Published : July 11, 2012
Open Document
Text Preview
Table of contents
1.Executive Summary1
2.Introduction2
3. Internationalization2
3.1Proactive Motivations3
3.2Reactive Motivations4
4.Foreign Market segmentation and targeting5
5. Environmental SWOT Analysis8
5.1 Strengths8
5.2 Weaknesses9
5.3 Opportunities11
5.4 Threats12
6. International Marketing Objectives13
7. Foreign Market Entry Strategy14
7.1 Entry Mode Choice Framework14
7.2Desired Mode Characteristics15
8. Product/ Service Mix Preparation17
8.1 Toyota’s Adaptation Strategy17
8.2 Toyota’s Standardisation Strategy18
8.3 Service Mix18
8.4 Branding19
8.5 Country-of-Origin Effects19
9. Conclusion20

1. Executive Summary
This report focuses on the possible market expansion strategy of the Toyota Prius in China’s Automobile market. Since its entry to China as a 50-50 joint venture with Tianjin Auto in 1994, Toyota has done just as well as it has done in other countries globally. Its reputation for good quality and affordable vehicles were the reason for this success. It was therefore uncharacteristic that the Prius lacked this appeal in the Chinese market despite being a hit in most developed countries, especially the USA. To get to the bottom of this, a series of steps and analysis were conducted. First of all, market selection was done using the appropriate foreign market segmentation and targeting techniques. This required a series of segmentation criteria to be fulfilled, developing appropriate segments, and screening of the segments, micro-segmentation and finally, market entry. China was selected for some reasons, the prominent one being it is currently the worlds most polluted country and is thus, looking for ways to cut back, especially in tailpipe carbon emission. Next a SWOT analysis was conducted for a better understanding of the selected market environment. The strengths of Toyota lie in its reputation high quality, low cost vehicles. Its weakness was minimal attention paid to its Chinese customers as compared to those in the more developed countries in terms of vehicle recall and lack of localized R&D facilities. A big opportunity is Government’s recent policies and regulations that support the shift to new energy vehicles. Threats were in the form of strong competition for the Prius from independent local brands, international joint venture brands and lack of customer enthusiasm for hybrid cars. The marketing objectives for the Prius are therefore to enhance its current position in the Chinese market as an environmentally friendly vehicle. Toyota like most other Japanese multinationals, implements sequential entry through foreign direct investment in China. We suggest that the same pre-clusterization technique should be used for the Prius by localizing R&D facilities, component manufacturers and suppliers in China. This will in turn reduce transportation costs, eliminate import tariffs and significantly lower the price per unit of the Prius. Standardization and adaptation techniques should be implemented according so that the international brand image remains the same while at the same time special consideration is given to what suits the Chinese customers best. As far as the services provided, Toyota should differentiate itself from its competitors to gain more customer enthusiasm and loyalty. It is advisable that in the future, Toyota should spend more time analyzing and understanding its intended markets so that the reception it receives is positive. 2. Introduction

Prius is the first full hybrid electric mid-size car manufactured by Toyota, Japan in 1997. It began to seize the world market from 2001 and sold in over 40 countries and regions. Due to the fact that people are increasingly concerned about environmental protection, the Prius is revolutionary in reducing vehicle fuel usage and exhaust emissions. Its epoch-making meaning and advanced characteristics have been highly praised worldwide. This report focuses on Toyota’s intention to...
tracking img