Toyota Target Market and Positioning Strategy
Learning Team A
Dan Black, Amy Giordando, Lisa Haug, Juana Hunsberger, Aundrika Wheeler MKT575 - Strategic Marketing
March 16, 2015
Bernie Cerasaro, Instructor
Toyota Target Market and Positioning Strategy Analysis
Toyota is the largest global automotive manufacturer and has been successful targeting select markets. For success in the future, they have hired consultants to review its success. The experts will evaluate Toyota’s target market and market positioning in the global automotive industry. Target market will identify demographics, and geographics where they are successful and what changes can be implemented to achieve growth. Market positioning strategy will determine consumer buying behaviors, innovative product life cycle recommendations, and necessary strategic alliances. Branding strategy will also be evaluated to determine if target segments are responding to Toyota's initiatives. Target Market
Toyota is operating worldwide in the largest developed and developing countries. Each of these represents a different market that requires specific brands targeting. In North America, Toyota is targeting the younger market, large-truck owners, and the luxury SUV (Lexus) market, and has captured 11.2% of the U.S. market (Cravens & Piercy, 2009). The U.S. is Toyota’s largest geographical region (based on sales), and a strong economic recovery is strengthening its market share and enhancing their financial position (Toyota Motor Corporation SWOT Analysis, 2014). The second largest market for Toyota is their native country Japan, and they enjoy a 40%+ share of the market. In Europe, the market demands compact, fuel-efficient, and cleaner diesel engines, and Toyota is lagging the competition in the market with only 4.4% share. Because of economic volatility in South America, Toyota sales revenues are falling. The South American buyer requires affordable and dependable autos, and Toyota’s recall history has damaged its image. Toyota has several opportunities in the target markets where they are failing to capture the market. In Europe for example, the Lexus brand has not done as well as it has in the U.S. where it overtook the German rivals Mercedes and BMW (Cravens & Piercy, 2009). Today, Lexus is sold side-by-side with economy brands in Europe such as Corolla and Yaris – this cheapens the Lexus brand. In order to appeal to the same target market in Europe, it is recommended that Toyota make Lexus a separate brand. The European buyer wants a luxury shopping experience when they purchase a luxury vehicle; therefore, the dealerships need to focus on these buyers. Another recent opportunity for Toyota is the growing partnership with BMW (Toyota Motor Corporation SWOT Analysis, 2014). This partnership will enable Toyota to increase their technological capabilities and may result in new product innovation, in addition to strengthening their brand image in Europe (Toyota Motor Corporation SWOT Analysis, 2014). Toyota needs to focus on its operations in emerging markets, such as Africa and Southeast Asia. “Low car ownership combined with rising disposable incomes bode well for the auto market demand in these countries in the long term” (Trefis Team, 2013, April 04). This market’s consumer wants a dependable, no-frills, good value for the money kind of auto, and Toyota has several brands that can win this market over. In Indonesia alone, car sales overall jumped 25%, and it is now the largest automotive market in Southeast Asia - and Toyota has 37% of the market share (Trefis Team, 2013, April 04). Toyota can enhance their market presence and increase their top line performance by focusing intensely on these emerging markets (Toyota Motor Corporation SWOT Analysis, 2014). Buyer Behavior
Market Positioning Strategy
“Positioning strategy is the combination of marketing program strategies used to portray the positioning desired by management to the targeted...
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